in. come a long way, haven't we. ashley: open invitation. put it that way. stuart: there is an open invitation, that is a fact. all right, everyone, my time is up. we'll see you tomorrow at 9:00 from the white house. neil it is yours. neil: so you're going to be at the white house tomorrow? this is the first i'm hearing of it. where are you going to be? where are you going to be? stuart: i can't hear you. i missed it. i know it was a gem. neil: live from the white house. what he can't hear we're live from red lobster. take a look where we stand right now. no selling where we are right now. a lot buoyed by the strong earnings, people were hoping and waiting for, a host of them, unexpectedly good news on the job front. job openings, eclipsing 7.13 million in the month of august, far stronger than most people thought.

a lot of people are putting this together, maybe, maybe, it was an overreaction last week. not necessarily jumping that conclusion but we're following it the same. "after the bell" co-host on weekdays on this fine network, connell mcshane. what is going on here? >> we have a perfect recipe for a bounceback day. we had to have the selloff which we had last week. now the bounceback is driven first by the earnings. there were strong reports that came out this morning even before that piece of economic data you referenced was released at 10:00 in the morning, likes of johnson & johnson, goldman, driving stocks higher good for triple digits for themselves on the dow. that being said, this is broad-baseds. look at s&p 500 and health care and technology are leading the way but all 10 major sector groups within the s&p are up today. a broad-based bounce back day. to add to all that, the jobs

report, use the acronym it is known for the jolt that was needed at 10:00 in the morning because 7.14 million is some number when you look at number of job openings in the country. in fact it is the highest number we've ever seen. the labor department is only tracking this since december of 2000. this is the highest number of job openings they have ever seen. six month in a row the number of job openings outpaceed the unemployed. we'll talk about what the federal reserve will do with the situation, whether or not they raise interest rates more aggressively. is that a positive or negative for stocks. at least now lunchtime in new york it is all positive for stocks, and a lot of that you would think, neil, what we saw last week, the big-time selloff and as a final point i say some of the technical aplifts are looking at the technicals in the market that the s&p 500 held the 200-day moving average and above it right now as another positive sign. we'll see how we close.

netflix after the bell is a big number as well as ibm. neil: no doubt you will be covering. >> maybe why i mentioned it. neil: are you coming from the white house? >> when was the last time varney did a remote, something from the field, do you remember that? neil: a live show from international house of pancakes. it was memorable. no, it should be fun. thank you, buddy. congratulations on the nee show. >> thanks, neil. neil: secretary of state mike pompeo is in saudi arabia as we speak. trying to seek answers apparently talking to the king and his son the prince and whether he got answers from apparent death and disappearance of "washington post" columnist. blake burman with who more on t. reporter: two developments as it relates to disappearance of "washington post" columnist, jamal khashoggi. the they are citing a high level

turkish official when they went in the saudi consulate inside of istanbul they found evidence in that search that jamal khashoggi was killed inside of that consulate. "the washington post" columnist hasn't been seen since the surveillance video showed him walking into the consulate two full weeks ago on october 2nd. he met with king salman and the crown prince, mohammed bin salman in saudi arabia. according to reports, saudi arabia is admitting that khashoggi died as a result of a botched interrogation inside the consulate. president trump said after he had a 20-minute phone call with king salman, that the king denied any knowledge whatsoever. in washington feel saudi arabia opened itself up to potential sanctions. here the strong word from senator lindsey graham. >> what i would do, i'm going to

do, sanction the hell out of saudi arabia. we deal bad people all the time this is in our face. i feel personally offended. i why would you put a man like me and president in a box? saudi arabia there are a lot of good people you could choose but mbs tainted your country and tainted himself. reporter: mbs meaning mohammed bin salman who the secretary of state met with earlier today. new reaction as well from the khashoggi family. they say they are traumatized for everything that is happening. they're calling for an independent investigation. they say quote, the strong moral and legal responsibility which our father instilled in us obliges us for us to call establishment after independent and impartial international commission to indesire the circumstances into his death. neil? neil: thank you very much, blake burman. let's keep track of all the business and related interest groups that are not attending this big financial confab going

down in saudi arabia this week. the final day to send your regrets or you are going is on saturday. so far treasury secretary steve mnuchin is planning to attend but a host of others are not including ford and uber and credit suisse and viacom and mastercard and jpmorgan chase and blackrock and blackstone. we've got standard charter and a host of others. these are some of the big names and financial giants of the world saying we're not too keen being in this part of the world. could it boomerang on them and on the region? we have former state department officer morgan ortega and joe durant. begin with you, joe, impact on folks saying we'll not be there, we'll cool this out, is there hell to pay for them? joe? >> asking me, neil? >> yes, i am. >> i think for people opting out, no. i think the markets are a little

bit nervous about what is the reaction of the u.s. going to be. if we take lindsey graham's position and sanction we don't want to get into another tariff war or trade war or putting sanctions on another country. they provide 9%. our oil. they own a lot of our debt and it is a battle that i think the u.s. would not rather get involved it with right now. i do not approve the actions but are the consequences getting into battle with another nation on trade or tariffs or sanctions worth the cost? i think there will be a very interesting debate within the administration as to the consequences of what that might mean, taking on another battle right now. neil: we can't pick and choose the leaders with whom we're dealing with, morgan, right? whatever you think of the crown prince mohammed bin salman, i will not call him mbs, i think it makes him sound like a car but leaving that aside what is

lindsey graham's point to say we would target him, we're not going to deal with you as if we can choose? >> to ace agree with joe slightly i think that what we're talking about here is a lot more nuanced with the situation with saudi than say it is with iran or north korea. when senator graham was talking about sanctions on "fox & friends" i believe he was referring to global magnitsky sanctions. it started before and it will continue long after his reign. what the president and pompeo are talking about finding true responsibility for these actions. we will continue -- i lived in saudi arabia as you know for a year-and-a-half working closely with the saudis as treasury attache to cush financial flows from al qaeda and other terrorist organizations. we worked with them on intelligence perspective, worked with them on oil, certainly worked with the sanctions against iran which will be reimplemented in just three

weeks. they continue to be a partner. we're not talking about a trade war with saudi. we're not talking about massive statewide sanctions on saudi. we're talking about holding individuals responsible potentially with global magnitsky sanctions and that is different from what we're talking about with iran and north korea. neil: let's talk a little bit about that. a lot of folks, inlindsey graham included don't want to deal with the crown prince but he is the guy. you have warn out than welcome, you have to scoot down the bench but easier said than dones right? >> in our view it is geopolitical issue less than a market issue. saudi is less relevant trading partner with the u.s., and not even in the top 20 in terms of global trade. in terms of trade and markets we think it is know noise. we appreciate morgan's comments about geopolitical. saudis are very important party for geopolitical security. neil: morgan, go back to you

real fast. a point others raised, hypocrisy of many, that we embraced the iranians to dismantle the nuclear threat and they are far more heinous character in the region than saudi arabia is or ever would be it would appear but judging this, not to minimize the potential of a royal family member targeting a journalist in the united states for execution but it does seem like a double standard, to me. >> well, listen we deal with terrible actors around the world every day. neil: you're right. >> look what the chinese are doing with internment camps for muslims. i this they should be sanctioned for that. look what the russians do with their political foes. we see it in latin america elections and mexico, there was report of 100 people killed leading up to the presidential election. what the united states has to do not just in rhetoric, democrats talk about this in rhetoric, but

in word and deeds we need to stand up to human rights. neil: morgan, what does that mean? what does that mean? human rights, does that mean cutting off financial ties risking that or what? >> private sector is doing that look at number of ceos pull out of imf. neil: they're pulling out of the conference, with the exception of richard branson they're not pulling out money. >> there are reports that their biggest lobbyists in d.c. dropped them as clients, two in d.c. there are companies that are no longer taking investment. so again i want to continue a close partnership with saudi arabia. i think it is vitally important but it is important for the administration to hold whoever approved this accountable. there is difference between going after individuals and trying to sour the whole relationship. i don't think the administration is dying to do that. neil: let's see what happens as weeks and months go forward, joe durant. and whatever it is the saudis promised to respond to whatever aggressive action we take

against them. presumably some people thought that could mean holding off on oil supplies, cutting back production, shipments in the united states. that could obviously hurt them as well but another idea being bandied about they buy fewer of our treasury securities at a time our debt is growing and they start selling en masse but they will not let this go unaddressed. do you worry about the impact of that? >> of course you have to be concerned about it. again, i can't man that there is a lot to gain by being, putting broad sanctions on and so, again i think the administration will be careful about what they do because again, we need their help in some other ways as the case among the nations we work with. neil: i know what you, diplomatic fine line what is being careful here? to you, joe, is it just a little bit of sanctions here, a little bit of projessing a conference not being part of it? they can look at it, say, we'll go to see if china wants to participate or russia wants to participate.

you heard the drill. what is a focused response to this? >> well the first thing is you do it privately. the one thing you can't do any response at all done in a public way gives them no face-saving exit. first thing, do it quietly. don't make a big noise bit. target the people actually involved in it. don't make it a national man tate, make it a personal mandate and third require an investigation. neil: part of the world's richest family on the planet. >> sure. neil: throw out one or try to focus on one you have a large brood of other characters and sultans who are going to fill that gap. >> it's a quagmire and maybe you start by saying let's make sure with have an open investigation, which of course will probably go nowhere but we'll calm things down for a while. reality very little is likely to actually occur and i suspect there will be a lot of noise but there is just too much on the other side we need from them to make this, that region is just,

we need their help candidly. neil: ben phillips, let me ask you a little bit about your thought then where we go from here because there is a long history of this crown prince, mohammed bin salman where he isn't known what he purports to be. he has been known to jail dissidents and jail family members. they're usually held at posh hotels, not like attica, but they are held up to the same. praised at renaissance actionss letting women drive and all of that, when in fact there might not be a there there, that the guy is a big ol' phony. >> that is the risk. from the markets perspective i don't think markets care about mbs or mohammed bin salman with respect of markets. that is a geopolitical risk. that can escalate and start impacting markets. i don't think it is a destablizing factor in the region. we'll look through this at this point and look for results of an investigation but i don't think

it's a big change for -- neil: would it be a big change to save face all of sudden king salman said, look, mohamed, you have to go but i have any one of a dozen number of sons and nephews who could fill this role in the interim so the imprint really hasn't changed but just another character making empty promises what do you think of that? >> that's right. i think mohamed gets the pr message is important for saudi arabia. we're liberalizing, modernizing and more in tune with global economy and social standards. it will most likely be a younger individual who would take that seat if mbs is forced out for some reason. >> morgan, i'm thinking we're grateful for the movements. we're going to finally allow to drive and go out in public but we'll accept the other stuff? if you're doing all this other stuff behind the scenes how do we deal with that? >> i think it was joe who

pointed out it is really important to have a very good relationship with these countries so whenever these sorts of things happen you can talk to them, you have a relationship, you can hold their feet to the fire on certain things. i will say the travesty of this whole situation someone who lived there, i've seen, not only women being able to drive, but women being able to work, educated. so many advances the past year since the crown prince took over with his father i think are important for saudi but i hate to see -- neil: is the reap -- reason for that. if all of sudden send mohammed bin salman is out of there could someone continue reform without murdering? >> his father, the king is in charge of this. as a young buy he hasn't aggressively pushed the reforms but could someone like the crown prince before mbs could he come back? there are 10,000 royals in saudi arabia. they could find someone else.

i don't think even as senator graham said this morning that is i don't think what president and pompeo is pushing for, we don't go to countries to demand who should be in power and who shouldn't be. make no mistake this is serious moment of reckoning for whoever was in charge. we do need an open investigation and otherwise businesses will continue to feel uncomfortable doing business with the kingdom. maybe this is some sort of a golden opportunity we can stop this blockade of qatar, bring the countries together. saudi and turkey look like they're actually working together on this. maybe a little pollyanna of me, neil, i'm hoping this may open a dialogue with discussion with turkey and qatar and others in the region. we need to focus on the pressure campaign against iran and focus on this peace deal jared kushner is working on with the israelis and palestinians that saudis are helping with behind the scenes. neil: he is active player in that and close ally of the

prince. thank you all, very, very much. they must have reassured the markets here there was a threat all the latest developments and revelations that the saudi king might have been behind the disappearance and murder of this journalist. markets are unaffected thinking cooler heads will prevail, the prince might go, but relationship with one of the most vibrant economies in the region, but hope springs eternal and we're a long way from there after this. i am an independent financial advisor. when i meet a new client, i start by asking questions like: did you understand all the fees you were paying? was your broker a fiduciary? were you satisfied with the attention you were getting? then i explain that being independent gives our firm the freedom to give our clients the attention they deserve. we can put a plan together that makes sense for them. independence lets us do that. charles schwab is proud to support more independent

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neil: everyone is watching saudi arabia an convinced cooler heads will prevail or it won't be the end of the world even if it means the crown prince mohammed bin salman is scooted down the bench. there are as my guests pointed out a lot thousands of royals connected in a weird way goes back centuries. there are a lot of back up leaders an apparent charges from turkey and the rest, that he might have been behind the killing of this "washington post" journalist raised concerns, then what happens? we're getting details and intelligence out of the turks who claim they have evidence from what they can tell, jamal khashoggi was murdered at this, at this embassy in istanbul, the saudi embassy in istanbul.

how they ascertain that, the proof of that, i don't know. they are the sources of that. there is not independent verifications of that. i only posit that because the turks and saudis have a very chilly relationship, so you have to be very careful who is providing that information, whether you can believe it all together. let's go to former navy seal team six commander dave sears, what we're looking at and whether there is something to what the turks are saying. having what i said, dave, should we believe the turks? do they have a vested gripe here? >> i don't know, the turks are also -- president erdogan is guilty of jailing, killing journalists, teachers. neil: absolutely. >> his track record is not really great, that is a known fact. do we believe them? right now a lot of things are lining up against saudi arabia, at least some element. it is not implausible they did this. let's wait to see what happens.

neil: lindsey graham was saying earlier on our air, fox news air, the well, the crown prince has to go, but there are other princes, other family members, there are thousands of backups this is a royal family, extended as it is that has done a lot of nefarious things. a lot of americans remember 9/11, 15 of the hijackers were from saudi arabia. you always wonder getting rid of one questionable player when it comes to that, is everything hunky-dory? >> sure. there are interesting dynamics with the crown prince because normally what's happened in the past the king passed on to a brother. that's been the lineage that has gone on. so you would rule, the next ruler would rule next 10 or 15 years or so the crown prince, at 33 years, he will rule 50 years

or so. this is first time we've seen that in a long, long time. neil: can the king tell him, this ain't happening, can he be essentially replaced? >> absolutely, the king can do anything there but i think the crown prince also anticipated some of these things happening, why you saw the purge last year. why he jailed a lot of people. why he is getting rid of the opposition. it is really "game of thrones" over there to some extent. it's crazy. neil: good comparison. without making it look like a black helicopter crowd theory, certainly the crown prince would know in doing this he, you know, he would have the world on him. you go after journalists you will get the world's journalists on you. you will imperil the kingdom nance you have had, all the progress you have had getting rid of your relatives and threats, that would be washed out. he certainly would know that. which feeds this other narrative out there that he might not have

anything to do with it. what do you think? >> or it was unintentional it went too far. maybe they wanted to get him, he had a heart attack and they covered him up. i don't think it was intentional to do this. but there is cover-up a mistake is made, he realizes how bad this will look for him. there are other factors at play, you just turned down, the crown prince/defense minister as well, turned down the lockheed martin deal. so is the u.s. using this as leverage as saudi arabia looks at getting the s-400 system from russia, already talked about sanctions a couple days ago. senator graham is upset. lockheed martin is in his corner. that is a bailiwick there. they turned down a 15 billion-dollar deal with the fab system. there is a lot of pieces of play here why we're casting so much attention on this. neil: david, a cynical view you hear from people that don't worry about this, given fact the market is holding up on this,

where do the saudis go, where else do the saudis go, we're in bed with each other, with very to do business with each other, what do you think of that? >> we do. we used to have a saying in middle east or afghanistan we use, there are good bad guys, bad good guys and bad bad guys. there are three players there. they're all bad to some extent. saudi arabia happens to be one of our bad nice. they will do bad things. it is their system of governance and how the kingdom works. they are an autocracy, authoritarian regime, it held the power through repression. where do they go? they will start to look a little bit at russia, china, of course. they will not just let a vacuum sit there so there will be other players come into the space where we have to compete. neil: dave, thank you. the "game of thrones" analogy is a winner. you always have them. >> thank you. neil: former navy seal commander. as a point of reference, you

hear about mbs, i hate that, he has a name, mohammed bin salman. there is 9,000, 10,000 royal family extended members. there are about 180 who could qualify at any moment to take over. so it is a lot like, let's say a car line-up, back to the mbs theme, that if one model doesn't suit you there are other models. now the question is, will that model be enough to keep those who are writing some nasty things about you at bay? not all the time. after this.

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>> welcome back to "cavuto: coast to coast." i'm nicole petallides live on new york stock exchange. this is earnings optimism keeping this afloat as dow is up 356 points. one bank particular came under pressure, that is blackrock. we've seen blackrock to the downside, hitting a new low

after seeing net outflow. but goldman sachs and morgan stanley and have been real winners after quarterly numbers. profit beat handily on both. helped by growth and equity trading and underwriting. goldman sachs up 1.3%. morgan stanley has been to the upside after its quarterly report after it beat on all three, equities investment banking and fixed income. if you look at broader market, up arrows across the board. with only verizon in the red today. the optimism is here, neil. as i'm speaking to different traders i heard all kind of phrases, the bottom is in. earnings optimism, long term projected growth, economic growth. only one actually said pulling out some money putting some cash on the sidelines but the rest seemed very optimistic, particularly on the banks in this higher rate environment but they do seem optimistic overall as i have been speaking to each of them, neil. so you can see today we're

having our best rally in a couple of months. the dow is up 380 points at its highest point. neil. neil: nicole, thank you very much. back to politics and effect much elizabeth warren and that dna test shows some native-americannism in her blood, dating back a few generations t was meant to put to bed the president's attack line on pocahontas, it revved it up again among democrats who question why she did it, whether it really proved anything. former bush presidential 43 writer ned ryun and democratic strategist, robin biro. others say it shows an act of desperation, do you think the senator overreached? >> neil, she overplayed her hand for sure on this, and definitely coming back to bite her. this didn't go at all the way she had hoped.

it is not a good look right before the midterms but at the end of the day i'm firm believer all politics is local. i don't think this will make a hill of beans difference among the midterms. doesn't look good for her and certainly doesn't look for her in bid 2020 we all know now is coming. neil: ned, it is pretty clear she did this to sort of get this out of the way before, not only midterm put the issue to rest and 2020 campaign looks all but certain now. did it backfire? >> 100%. it was a mitigated disaster, neil and complete debacle. i'm not sure who thought this was a good idea of releasing dn tests of 1/64 or 1/1024 percent cherokee and get publicly rebuked by the cherokee nation, this means nothing to us. they pointed out, neil, the dna doesn't prove if you're indigenous to north america or south america.

i really look at it, she has 2020 aspirations, reminded me of the howard dean scream, this guy is legit. the scream happened, all of sudden people are asking her entire origin story turns out to be fake. i think that really calls into question. i think she is far too left for the country. at the same time what she proved yesterday definitely beyond a doubt, she is a complete fraud. neil: others will debate that but, robin, i do wonder where the passion of the party lies right now, whole native-american issue notwithstanding. she had been very, very popular on the stump an key crowd pleaser for democrats, do you know from folks you talked to, they're moving on and looking sampling bernie sanders and joe biden? i know he is a little bit more moderate but what is happening behind the scenes? >> behind the scenes, neil, people are interested, the party loyalists really are liking the potential candidates that are holding donald trump to task

like kamala harris for example, and really elizabeth warren had done a good job but i really think -- neil: kamala harris benefits from california moving up on primary schedule, right? >> she does. the intrigue with her, she doesn't carry baggage a lot of the other potential candidates do, because she hasn't been in politics that long. she is really holding donald trump to task. neil: when you look at it all, ned, how much of market craziness will play at least in the midterms? we'll address all the fund-raising and how busy democrats doing that going into this race and 2020 but what do you think? >> i don't think the market volatility looks like it is stablizing to some level. i don't think that will be as big of a factor. people are looking at other economic factors. multiple 4% gdp quarters. obviously job numbers, wages are

creeping up, said it to you before, say it again, the next big effect is the kavanaugh effect. people really saw something that really horrified them a few weeks ago, it is inspired. i think i will send a christmas card to the left, thank you so much, merry christmas for doing what you did to kavanaugh because you woke up the base. the republican base is on steroids. you see it reflected in the polls. i think the senate is gone for democrats, i think the house is lot more after coin toss. some generic polls say double-digit numbers. you have to suspend disbelief. i think it is real close race for the house and republicans can keep it. neil: robin? >> the kavanaugh effect is a real thing and something i warned democrats b i was hoping that it wouldn't get as ugly as it did. >> they overplayed their hand. >> did themselves in disservice, in all honesty, yes we did.

in all honesty. neil: thank you very. the number you're following up on, coverage going on in saudi arabia, one saudi arabian expert says you are wrong, there are not 10,000 royal family members or influencers in the kingdom, it is about 10,800. all right. more after this.

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to your goals and needs. some only call when they have something to sell. fisher calls regularly so you stay informed. and while some advisors are happy to earn commissions whether you do well or not. fisher investments fees are structured so we do better when you do better. maybe that's why most of our clients come from other money managers. fisher investments. clearly better money management. neil: all right, charlie gasparino here with breaking news on saudi arabia, these increasing tensions. what have you got, bud? >> i think what the administration wants to do, come to sort of conclusion or give the public indication where the investigation into the khashoggi kill something going and essentially clear the way for mnuchin, treasury secretary steve mnuchin to attend the davos in the desert conference next week. we understand this, this is preliminary, it hasn't been decided yet, getting out of the white house, from sources inside of the white house is that the

trump administration is considering holding some sort of a press conferences, as early as today, may come tomorrow as early as today on the killing of the journalist khashoggi. the press conference will likely involve secretary of state mike pompeo and possibly saudi officials, jointly present the evidence. the evidence way it has been described to me from white house officials, that is one side of the story, and this isn't set in stone just yet is likely to basically provide some information to the public that will determine the culpability of the royal family, mbs, the royal family itself in the killing of the journal it khashoggi. so it looks like what they want -- i don't have all the information here. looks like they have an investigation. they have details in the investigation. you know, when you go to a crime scene the police chief gets up there starts explaining it and you will get something like that, if this press conference happens and i hear they're trying to shooting for today.

but again as everything within the trump administration, believe it when you see it. i want to see this to believe it but you know -- neil: how would they coordinate that with -- >> pompeo is over there, right. >> assuming they do it over there and do it jointly, that is the assumption here. neil: who is doing it jointly? >> pompeo and saudi officials. neil: is the president involved in anything back here. >> i don't think directly involved. he is on trish's show tonight. he might have information he may provide to fox business. that is what i'm hearing from the white house. obviously this is a crime investigation. this is fraught with politics. companies are boycotting this event. journalists are boycotting it. we should point out fox business is still, as of now attending in davos in the desert next week but the situation is getting to the point where it is getting really bad. the political heat is getting really bad on the saudi royal family, on mohammed bin salem,

the crown prince, this press conference i understand address not just the crime scene but the political aspect of this. it is coming to the point they want to come out and say, it ain't us and this was some sort of a rogue operation as the president said. neil: right. >> i will say this again, getting this from inside the white house, there is nothing scheduled i understand on this press conference. they're talking about it clearly. i know that for a fact. i'm getting this from senior white house officials. we shall see if they do it. it would be a pretty quick turnaround to provide crime scene details now -- neil: from the turks, presumably. >> or their own internal stuff, right? considering they fessed up to it a couple days ago. remember at first they weren't quite fessing up to it. now they just fessed up. i believe it when i see it. that is what people are saying and this story is developing. neil: thank you, buddy, very much, charlie gasparino. if the market is worried about

this, sounds like an old sot, they have funny way of showing it. virtually all dow 30 stocks are up. minus verizon is fractionally down. impact of all this after this. you'll only pay $4.95. fidelity. open an account today.

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neil: all right.

walmart making some news but not the kind that shareholders like to hear. deirdre bolton with the latest on that. hey, deirdre. >> neil, it is investors day, retailer trimmed earnings for the year by a quarter. because of a few acquisitions, most notably back in may walmart agreeing to buy the indian e-commerce company flipkart and accounting for other small purchases, jet.com, bear necessities, and a retailer that sells plus size clothes. you see from price reaction walmart telegraphed this. this was known to investors. we'll show you the numbers, all the same. 2019 earnings will be between 4.65 to 4.80 a share. the previous guidance was between 4.90 and $5.05 a share. this flipkart purchase is a pretty big gamble. this is the biggest walmart ever made. $16 billion was the purchase

price. walmart had to elbow out amazon.com. sells consumer goods, smartphones. india, average age, 28. sparse smartphones, 300 million smartphone users. flipkart had 40% of the market in india. as we know with retailers, we'll show you walmart versus amazon. this is really what the muscular fight is all about. this is advanced auto parts. walmart, advanced auto parts making a deal, basically you get auto parts on walmart.com. this is last year. you you can see amazon's is down, very much beating the market. that is what it is coming down to to, neil, amazon versus everybody else trying to keep up. neil: it is openly a day after the sears news and walmart was supposed to be a beneficiary, amazon a beneficiary.

this might show brick-and-mortar problems in the brick-and-mortar world. >> brick-and-mortar, why analysts like walmart why the stock is after the announcement, a, it has telegraphed. walmart has done a fantastic job modernizing walmart.com. a lot of analysts say don't count out walmart. we think of it is as brick-and-mortar, it is on amazon's heels. neil: these tariffs are real for people, we'll feel them, feel it going into the holiday shopping season. is that a big factor or something different? >> as far as china, we heard them make comments. seems we're still spending, neil, look at close to record unemployment, right? the wayne growth in theory, 2.8, 2.9% we've seen for everybody, seems we're all willing to spend. neil: we do have the propensity for that. thank you very, very much, deirdre bolton. the dow again, it is worried about this stuff, not showing it, up session highs.

up 414 points northward. a lot of catalysts are better-than-expected economic news, great earnings news. many people are saying late last week when the market was in that free fall, but that would be the salve for the markets, and we're seeing that come again and again in the likes of goldman sachs and johnson & johnson. so that trend continues. much more after this. think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income. bring amlp into the game. before investing, consider the fund's investment objectives, risks, charges, and expenses. read the prospectus carefully at alpsfunds.com/amlp

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inflationary in some aspects. the dow at session highs, in and out of the 400 point gain area. we have market watchers following it closely. what's going on here? >> good economic news without interest rates going higher. that was really what was scaring investors in recent weeks, particularly last week. the ten-year interest rate, the benchmark, it's been coming down. ever since it started coming back down, the stock market stopped crashing and because there is a strong economy, and it's not inflationary, as is the bond market so far this week, it's very good for stocks. neil: it wasn't quite a week ago the selloff ensued and the fears that interest rates would go higher and higher, they didn't know where they would stop. we are still below where we got last week at our highs but they are going to go higher. that does seem to be the consensus. you buy that? >> look, it's good if they go higher slowly, for the right reasons. but if they go fast for the wrong reasons, that's a

disaster. we can handle maybe 5% mortgage rates, maybe 6% if wages go up because of good job reports but it can't happen in three weeks or a month. that was what was looking like was happening, where investors were scared to be in bonds and if we went to 7% mortgages in six months, it would be a very good situation. housing prices both for commercial and residential are too high to handle 7% mortgages overnight. again, you want a strong economy, you want things to go up. you just don't want things to radically change in a very short period of time. that's what led to past crises, when interest rates went up fast in a short period of time. neil: what do you make, switching to saudi arabia quickly, all these business leaders who are opting out of attending this financial summit the saudis are planning for the end of next week. we got ford and uber, credit suisse, mastercard, richard branson, blackrock, jpmorgan chase, on and on. what do you think? >> politically they have no choice right now, but longer

term, a lot of the countries they want to do business in, you know, china has more problems than saudi arabia in some ways. russia's got its own. they report it all the time and don't even say they have nothing to do with it which is what seems to be going on with saudi arabia which is probably why their stocks are going back up today. they are just trying to make sure they don't get a backlash, or they don't care about what's going on there, all they care about is the money, so they have to act this way now. investors seem to be thinking over the next few months this is going to blow over. neil: if it doesn't blow over, it escalates or all of a sudden people start thinking, you know, we've got a real problem with the royal kingdom way beyond what we thought, then what? >> well, it's more problem for them, i would say in some ways. sort of like china. they have been doing a p.r. thing for several years now to seem more like a modern economy. that sets them back, way back, at this point. that said, is it going to

escala escalate, with their stopping oil exports to us? no one thinks it will go that way. neil: that would be self-destructive, too, right? >> right. they are in some ways trying to transition out of being an oil economy. they aren't going to transition out of that without doing deals with businesses that are not an oil business. they kind of have to, but again, they are in a region we can barely understand. they are our best partner in some ways in a very bad area with worse countries we need them on our side for. that's why we have a relationship with them and probably have to have a relationship with them one way or the other, but this was definitely a major stumble for them obviously more than us at this point. neil: so far. thank you very much. let's go to former white house press secretary to bush 43, a arifleischer. the saudis obviously want to put

this behind them but aren't people going to call for punishment if khashoggi was target targeted? >> well, they will. if we have intercepts, if there's evidence he personally ordered the attack and then participated in the initial lie about what took place when he said he walked out the back door, nobody saw him, then it really is a problem. neil, this is a terrible clash between our nation's morality which we must always fight for and represent abroad, and the reality of the dirty middle east and our problems with iran. what i want to try to find the middle line on here is how to represent our morality without doing anything that's going to benefit iran, which carries out far more attacks and murders and despotic acts throughout the middle east than saudi arabia does. we've got to figure out how to walk that middle line. neil: there are a lot of people who embrace that iranian deal

and knowing full well the country we were dealing with, then our fingering this one so it is a little odd, but it is what it is. i'm wondering when you worked with president bush and obviously you had to weigh those who were going to participate and help us in the war in iraq and elsewhere, how do you balance that out between countries whose leaders you can't choose anyway, you can't pick and choose your friends and enemies, for that matter, and looking the other way? >> sure. i think you saw it more pronounced in the obama era when egypt went through its spring revolution and they threw out the former military dictator of egypt, mubarak, and replaced him with the muslim brotherhood. did anybody end up better in that deal? the answer is no. finally, there was another military coup against the muslim brotherhood and now you have general sisi, an american ally. this is the complication of dealing in a messy area where, if we hold our morality and

american standards to be what must be applied everywhere, anywhere around the world, we should bring home our ambassadors and stop doing relations with russia, with china, with egypt, with saudi arabia, half the middle east. i could go on and name other nations around the world. that's why i want to try to figure out what the middle line is here. i suspect it's going to come down to individually sanctioning the 15 people who were sent to turkey to carry out this attack. some type of economic sanction against saudi arabia and then we'll see where the future lies from there. again, if we take severe action against saudi arabia and it gives iran the upper hand in the middle east power struggle, we will all be worse off for it, particularly we americans. neil: we are getting an administration official saying the u.s. has an important relationship with saudi arabia, but that does not mean it is ignoring other issues with the saudis, presumably this one. i'm wondering, it comes on the same day marco rubio has said it

is worth blowing up a relationship over this. is it? >> it's not. the consequences of blowing things up with saudi arabia is if the saudi arabian leadership were to fall, if all of a sudden we have instability on the saudi peninsula, it enhances iran's role which they are deeply involved in yemen, which is a choke point for the persian gulf. do you really want to give iran the upper hand in all things middle east? you have to be cognizant of the broader ramifications of any step you take, and that's why i support something that's an intermediate sanction that is a proper measurement of our morality that doesn't put the saudis into any greater danger than enhances the iranians. neil: you can tell from the comments coming out of the white house, including now the vice president, that they are sort of between a rock and a hard place on this. it's saying today, this is vice president, they will be speaking to secretary of state pompeo later today. the president has already said we are going to get to the

bottom of what's important and the world knows the truth and the facts, if he was murdered, referring to khashoggi, the "washington post" journalist, to know who's responsible, even more important that he was a member of a free and independent press, an act of violence should be condemned. also a member of the press, we are going to demand answers the world deserves. the world deserves answers. like a little string-on sentence there, but obviously the administration is trying to get ahead of this. what is at risk in responding too soon? how do you handle that? >> well, i thought the president handled this well, frankly. i thought his initial reaction saying that he has severe punishment, he was very upset about it, was the right tone to take, and you do have to let some information come -- the facts and the truth to develop. i'm not sure i would take everything turkey says at face value. turkey is a despotic nation and ally with iran in many ways. they have their own anti-american interests. we remember when turkey beat up protesters in an american park.

the president of turkey, erdogan, sent his own thugs to beat up protesters on our soil. so turkey is a little suspect, too. we have intelligence capabilities. we will be able to sort out whatever we can sort out, listen to what the saudis and the turks say. that's why the president should allow facts to develop as fully as facts can ever be developed in a convoluted middle east, and make the right action after that. but also note, it's in large part because khashoggi was a journalist that it's created such ire, such moral ire among the american press corps, properly so. but the american press corps does not demonstrate similar ire when you see north korea engage in the behavior it's behaved in around the world. iran, the murders that iran has committed against protesters in iran. so this is also being forced because of press pressure and any government needs to be able to make a right long-term decision for our national interests, not just in response to press pressure. neil: well put. you're right. everyone embraced a deal with

iran to denuclearize and all of that. iran of course, a country guilty of far, far greater heinous acts. no one can debate that. that doesn't justify what could potentially have happened here but it is good perspective nevertheless. ari, thank you very, very, very much. as ari was speaking, want to update you on the response that some of the countries are saying. france's foreign minister is warning saudi arabia of consequences if it doesn't act fully and faithfully to address this. we are ghaerng frhearing from c gasparino the administration might have a coordinated response of its own that would involve the secretary of state, perhaps, perhaps speaking with members of the royal kingdom, maybe the king himself. way too soon to say whether that would be coordinated with the president here on this side of the globe. anyone's guess. but again, it is not rattling markets. that's one interesting, telling development. don't know if it means anything. but you have that.

neil: i want you to take a look at defense stocks, the same ones that had been selling off on news that things are getting tense between ourselves and riyadh in light of this journalist's disappearance and now likely murder, but it looks like they are stabilizing and coming back on the belief here

that we are going to remain friends. what happens to the crown prince mohammad bin salman is anyone's guess. there's talk of a joint press conference that might involve secretary of state pompeo and saudi officials. hard to say. this much is certain, that the markets are getting ahead of this. or are they? to retired u.s. army colonel danny dave'is. what do you make of this talk we've got a handle on this or at least this acknowledgment on the part of the saudis that they are prepared to say this might have been an interrogation gone bad? what do you make of all that? >> well, i actually agree with some of the stuff ari just said. we have to take care of american interests first. i think one of the important things to recognize in the middle east, there's not good guys and bad guys and black and white, but just guys, i think, and what needs to be the driver is we need to look at our interests, whether that's iran

or whether that's with a friend of saudi arabia. i think our morals are such that they deserve to be defended and i think probably pompeo is there saying hey, look, we are going to condemn this in the strongest terms, but we are going to continue to look after the best interests of the united states. however that needs to be taken care of. neil: i'm just wondering because lindsay graham was on fox news a little bit earlier saying this guy, referring to bin salman, that's the problem, he should be the target. marco rubio saying it would be worth blowing up this relationship over this. i don't know whether he was talking about our relationship with the prince or the whole kingdom. what do you make of that? >> yeah, i saw lindsay graham this morning. he's going to sanction the hell out of them i think was the word he used. we have to be real careful how easily we toss that around. sanctions are a blunt instrument that rarely accomplish what we want. if we are looking for actual leverage to actually promote american interests, we need to take a look at our support for saudi arabia in the yemen war,

because that does nothing for our interests and frankly doesn't even prevent iran from doing anything because there are so many poor people there and it's just not affecting our interests. i think that's the place we should look to put a little leverage. neil: i just wonder, you know this region so much better than i. i wonder whether they are just playing us. that is, that they feel in the end the united states won't turn their backs on us, they need us a lot, they need us for the stability we can help provide or the cover we can provide in the middle east. they don't have too many friends, that is the united states, in this region. we can go ahead and do crazy stuff even if this is true, going out of our way to kill an american journalist. what do you think of that? >> yeah, i think there's some plausibility there. they don't seem to be very concerned about it and they need to be a little more concerned about it, because that is not american values. that's not anything we should just turn a blind eye to. but as i said, we can't push too hard that it actually larharms

own interests. we need to make very clear we are not just a blank check that will do whatever they want to do for their own national security or their own preferences. again, i go back to this situation with the yemen war. that would be a good place to start imposing our own needs in the situation where we're not some rubber check for what they're doing. neil: we have a long history of this sort of weird relationship, particularly with the royal family, and i do remember on 9/11, 15 of the hijackers coming from saudi arabia. there was that. the friction right now that they have played in certainly the financial markets over the years, sticking it to us on not one, but two oil crises. if these are friends, they have a funny way of showing it sometimes. >> well, they do. frankly, our leverage is improving over that, because back in the '70s we were very much dependent on saudi arabian oil and throughout the middle east in general, and right now because of our domestic production and the current levels, we're not anywhere near as vulnerable to that. in fact, most of saudi arabia oil goes elsewhere besides the united states.

so many policy makers in the u.s. are still kind of locked into the 1970s mentality that we need them, and maybe we don't need them as much, especially if it costs us supporting things that our national interests don't support. neil: all right. colonel, thank you very, very much. good chatting. >> always my pleasure. neil: the dow up 409 points and interest rates holding stable. when all this is said and done, earnings are off the charts for health care companies, retail concerns, financial concerns. that is the driving force. that was what a lot of bulls were saying last week, late last week in the middle of that fall-off. that is what is happening today. they are falling back on the fundamentals which for corporate america are good. more after this. (guard) what i've witnessed...

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neil: the government is proposing regulations to force drug makers to disclose the

prices of those drugs in television ads along with all the other warnings, be careful if you take this, it might cause blah, blah, blah. just add prices to that. the drug industry greeting that with a mixed reaction on drug stocks. that's in a second. netflix is reporting after the bell. this is one where they focus not so much on the earnings, whether they meet estimates, that's important and all, but subscriber growth. in other words, are more people hooking up to netflix. let's get the read from our analy analyst extraordinaire. >> i think the biggest concern for them is competition. in the very near future they will have a ton of competition they didn't have a minute ago from disney, from warner, all these places are going to be sending subscribers to different locations. when you look at subscriber growth, a lot of subscriber as e going to say i'm not paying for six different services, i will do two and maybe one is not netflix. neil: netflix has grown to have everything under one roof

including its own programming, it's competing with hulu and some others. it used to have this almost to itself. now there are a lot of other characters playing including disney with some of the fox acquisition properties. what do you think? >> yeah. 100%. disney has the ability to like throw, you know, marvel and thor up on the screen and get everyone's attention. netflix has done a good job creating their original series, stuff like that, but it's not marvel, it's not the biggest movie properties on the planet. that's really what they are up against. neil: let me switch gears, if i can address apple with you right now. there's a report out saying it sees slowing demand, maybe rapidly slowing demand, in china. what would be the impact there? what are they looking at? >> 100%. it's a major problem for apple, something they have always needed to focus on. i think they have been a little less cavalier in terms of pushing the chinese manufacturers and now i think they are going to really have to

start, because this is kind of a middle year for apple. they haven't like revolutionized their hardware and that won't come for another year. they need to find ways in these gap years to get that level of attention, and really, reach this chinese audience they have always sort of had a tough time doing. neil: now, will the chinese hold a grudge? i always wonder, if we ever resolve our differences on trade, i'm told that the country has sort of rallies around xi jinping for the hard stance he's taken, they don't like the way the chinese has been handled in the global press and may take it out on american manufacturers, on apple. what do you think? >> i honestly think consumers focus on whatever the best product is, and so long as that's affordable, has the best technology, i don't think this stuff sticks around in terms of grudges among the consumer base. but if apple is, you know, coming up against phones that are equally as good, has the best features, so on and so

forth, you know, that's going to be the problem for them. it's not so much a grudge as it is you got to have the best product. neil: i know you are more a tech analyst than wall street analyst which makes you very reliable so let me ask on the tech side. the nasdaq 100 and some of the technology names that have come well off their highs, is it overdone, the sentiment these were darlings little more than a couple of weeks ago, now not so much? they're the same companies making the same products. what do you think? >> i don't think it's a long-term situation with them. i don't know that we will ever reach the rocketing highs we have seen the last couple years, but the fact of the matter is, this whole segment is about competition. we are seeing new competition for all these companies that previously didn't really have any. so that's going to be the future for them is whether they can fend off these companies or buy them outright. neil: all right. you are an encyclopedia, young man. thank you again. you might have heard in the middle of everything going on here that a judge has approved that settlement between elon

musk and the securities and exchange commission. now the question going forward is what happens? after this. i landed.

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neil: all right. dow started off the day about 4%, then rallied by day's end. lot of people thought the worst was over for saudi arabia, regarding this whole incident about the journalist that disappeared, whether he was killed or had any connection to the royal kingdom. defense stocks much more favorable today certainly than yesterday. take a look right now at oil which again is stable. much more so than yesterday. so where are we going with all of this? to solution funds group cio. larry, what do you think? >> it's really good to see them and the impact. obviously, oil is the number one thing everybody looks at. they export seven million barrels a day, we consume 19 million barrels a day and only produce nine so we need that oil

and it could be catastrophic. but beyond that, you look at saudi arabia has been the angel investor to the world with the saudi arabia public investment fund. unheard of investments in uber, $3.5 billion, tesla, $1 billion. sorry, $2 billion there. also, even virgin galactic, $1 billion. not to mention a $45 billion commitment to softbank vision. any kind of tension that goes is really going to hurt that. we also have to remember defense spending. saudi arabia is the second largest importer of arms, 61% of that goes to the united states. neil: none of that has been really felt today. >> that's right. neil: the markets seem to be saying it's not going to be an issue. others say if it becomes one, it becomes a bigger issue for us than china. do you agree with that? >> i definitely agree with that.

they are a major player. the implications are far-reaching. it's part of the reason the market has been so fragile. the market right now is saying it looks like everything's good, the coast is clear for now so rally we go. neil: how are you looking at this market? i know it wasn't even a week ago when the selloff ensued here. of course, we remember how wednesday and thursday, turning things around on friday, but what is your sense of what's real, what's happening now or what happened a couple of days last week? >> i think both are true but more to the latter. like what's happening right now. i think it shook out a lot of long short equity, hedge funds, cta investing, got that all out of the way and right now, i think the average institutional and retail investor is going to wait a week or two into earnings season to see if the quality of the earnings are good going forward, because right now, the value proposition of $178 a share for next year, that's

pretty compelling, 15 1/2, 16 times earnings, that's pretty decent considering where we have been the last five, ten years. neil: real quick on saudi arabia, the crown prince mohammad bin salman remains in power and remains the titular leader. i know the king is the formal leader. the crown prince is the guy running the show. now, if he is still in that job, would you be nervous about the markets and certainly saudi arabia? >> no, not personally. i think mbs as he's known -- neil: that's ridiculous. go ahead. >> i know. i know. he's committed to direct foreign investment as opposed to just government spending, making social reforms. i think it's a good positive for the market, at least from my view, what i have seen so far. neil: larry, thank you very much. charlie gasparino back with us. what he was just saying, the

potential issue. >> yeah. we should get some clarification soon from the white house as to what went down there. the indication we are getting now is from the white house, just so you know, is that unlikely today any joint press conference, but clearly, inside the white house, they were also telling me this has been in the works, they want to -- listen, the white house has a lot riding on clearing the royal family from some direct, you know, hit on a journalist. even though it's a journalist who is a saudi citizen, even though he resided in the u.s., he was a journalist, a columnist, and -- neil: they are feeling the pressure from marco rubio and lindsay graham, got to do something. they might get in front of the president. >> the business community has bailed on this conference, and most journalists, we should point out, we are still scheduled to go but so is secretary of state mnuchin.

the reason -- neil: yes. >> the reason i got on this story about the press conference is because i started calling my sources in the lobbying community in the white house about mnuchin, is he still going to go. apparently as of now, he's still committed to going. what they were saying is he's going to go but there's going to be some clarification of the royal family's role in this thing at some point as part of a press conference. you know, we need to see some more facts, i guess, before we figure out -- neil: tesla and this judge writing off, what does that mean? >> it means that mr. musk should probably just keep his mouth shut for awhile and focus on cars. he's got a black eye but not an existential black eye from the s.e.c. they approved the settlement. he has to find a chairman, has to find some independent directors. neil: he doesn't have to step down as ceo. >> no, and chairman, he can help pick. this is really -- he paid a

nominal fine. so did the company. the real question for tesla is the numbers. do the numbers add up. depends on who you speak to. the numbers do and don't add up. i think there's value in the company. i don't know how -- the short thesis on this is that this company is worth almost next to nothing. i don't know how you get that when everybody i know that drives one of these things, i'm not saying the company is a perfect company, but they kind of like it. it rides well. neil: good-looking car. >> it's beautiful. you know, is it worth its current market cap, $50 billion, or is it worth ten? neil: when all is said and done, is it to assign the company's future to the guy who created it? >> the problem is he sounds unhinged sometimes. he takes wild pot shots on twitter about the guy who rescued the kids in thailand, he goes after the s.e.c. stupidly. he just crafted a settlement with them.

even though it wasn't signed, why even tempt them. you still have an outstanding s.e.c. investigation into your public pronouncements about the progress of the model 3 so why even go there. when you got a ceo that does stupid stuff like that, shareholders react. we should point out this is a company, shares are largely owned by musk. he owns 20% of the company. and a couple of big institutions. it's interesting how much twitter jockeying goes on among day traders which -- who control very little of the float. it's an interesting stock. there's so much commentary, trading commentary among people who trade very little of the stock. neil: your take on this market today, which is real, today or last week? >> i think they are both real. what you get right now in these markets, because of technology and algorithms, is very quick reactions and digestion of news. last week's news was higher

interest rates, unwinding the fed balance sheet, not good for long term. and maybe even bigger deficits. we got a bigger deficit number which came in today which again, could lead to higher long term interest rates. you know, then there's the notion that we're not going to go to battle with saudi arabia, we're not going to -- trade is a secondary issue and corporate earnings are starting to look good. then you trade up. markets are imperfect short-term, they are considered perfect over the long run. that's what you are seeing here. now, if you are going to say do i buy this market, you think that donald trump is not going to get into a trade war, if you think that the stimulus through the massive corporate tax cuts will not -- will create decent economic growth and won't blow out the deficit to something like 4% of gdp, it's something around 3.7% right now, then that's a good recipe. you think stocks are going to -- corporate profits are going to be decent, that's a good reason to buy stocks. those are the factors you have

to use to determine whether you buy stocks. neil: well put. thanks, charlie gasparino. you were seeing as we were rifling through sectors, the ten-year note holding its own. the highs last thursday, 3.26. very, very different feeling right now. as charlie said, both are indicative of this market and both are accurately reflecting both the fear and greed in this market. more after this. six in the morning. she thought it was a fire. it was worse. a sinkhole opened up under our museum. eight priceless corvettes had plunged into it. chubb was there within hours. they helped make sure it was safe. we had everyone we needed to get our museum

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neil: all right. it's all about the earnings and less about saudi arabia, less about china, less about any worries and more on the fact that corporate america is delivering the goods, and the big uptick in activity that has produced some boffo earnings that are going well north of 20% year over year. it's still early in the go-round of how corporate america is doing for the third quarter, but remember the estimate was for s&p 500 earnings to average about 19% to 20%. we are well north of that on average right now but again, it is still early in the process. what's interesting here is virtually all sectors are going

along for the ride, better than expected earnings at the likes of united health, goldman sachs, johnson & johnson. some encouraging news even on the manufacturing side. u.s. industrial production with its fourth monthly gain, little more than expected but it slowed down in the quarter which is welcome news for those of you in the bond market because we are growing but not too fast. it was perfect for the bond market and has the yields holding steady. last week it had its high of 3.26% yield. right now people are confident it is the best of both worlds. now, here's the flipside. we've got a deficit to worry about, and a big one, at that, north of $769 billion. some are expressing relief that at least it's not $1 trillion. i should stress, not $1 trillion yet. it is up from the prior year and expected to top a trillion next year. that's exasperating this next fellow, the tea party patriots

cofounder. mark, in the middle of this strong economy, and the good news we are getting from corporate america and all, you would think that would translate into more revenue coming in and again, record tax revenue this year, but then washington spends it and then some. what do you think of all this? >> well, it's just the history of government in america. every administration since washington has spent more than the previous administration. there's only one administration that was an exception to that throughout history. so this is what politicians in d.c. do. at some point we will have to pay the piper. i worry that it's going to be sooner rather than later. neil: what's interesting about that is the conventional wisdom, the tax cuts were to blame for the growing deficit but we did have a record number in terms of tax revenues, period. unfortunately, we also had a record amount of spending. ronald reagan found out back in the '80s if you are spending all that money and then some, you will have deficits. under republican stewardship,

under democratic stewardship, i think the one president you are alluding to is bill clinton, that was not the case. is your sense this train is out of control? >> the train is out of control. it's actually coolidge that cut spending. we had a balanced budget in the clinton years. the problem is politicians in washington, d.c. have no spine so they get elected, get elected on promises of getting government under control, but they love spending. this is where their power comes from, this is where their prestige comes from. we will have to force that on them. they won't do it on their own. neil: that's tough love, right? lot of people said you cut everything, just don't cut what i like. that invariably leads to this dilemma, where neither party wants to step forward for fear of getting killed at the ballot box. >> yeah. so i would say that's a cliche but not a truism. the reality is if you look at when senator coburn was in the senate, he showed over $400 billion a year in waste, fraud and abuse. this isn't individual spending, these are not programs people are worried about. this is actually admitted waste,

fraud and abuse by both parties. they still wouldn't cut it. neil: even for large programs, any type of program, you just slow their growth, say you have some growing at a 4%, 5% clip and you know, you see this with paul ryan trying to do it, to slow medicare's growth to maybe 3.5%, 4%. you would think he was throwing granny off the cliff. there were ads to that effect. the appetite wasn't there then, it's even there less now. so what happened? >> look, the appetite is not there in congress, but we have two choices. we are either going to deal with this problem or the problem is going to force us to deal with it. we will have ultimately hyper inflation, we will end up out of control in the bond market. you alluded to the health of the bond markets right now. that won't necessarily last forever. eventually people are going to see this as an upside down situation. we are either going to force it by we, i mean the people, are going to force this kind of discipline on congress or the markets are ultimately going to enforce it. neil: are you surprised with all

the growth we have been seeing that it hasn't helped on the deficit side, that we're not seeing it? >> i'm not surprised at all, because i mean, that's just the nature of politics in washington, d.c. nobody wants to be the guy cutting. they all love to be the guy spending. there's no popularity in cutting. tom coburn was elected and re-elected, he was popular in his own state but not within the body itself because nobody wants their particular pet program cut in washington, d.c. neil: thank you, mark. good catching up with you. >> thank you. neil: when we come back, have you had your flu shot yet? the kids had their flu shot? a warning about the flu shot, if you don't get it. a death to report after this. fact is, there have been twenty-six in the last decade. allstate is adapting. with drones to assess home damage sooner. and if a flying object damages your car, you can snap a photo and get your claim processed in hours,

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neil: a real quick look at the dow before i get to this flu stuff. there is a connection, if you will bear with me. it is at session highs, 465 points northward and united health group is among the biggest contributors, up better than $10.50 right now, $271 a share. the belief being that these stocks were getting hammered too much, but all this comes at a time we had a child dying in florida, a child who never took the flu vaccine. some people are saying had that child taken the flu vaccine, this wouldn't have been the concern that it was and her situation wouldn't have escalated the way it did. hard to say. a lot of people are reexamining the whole vaccine thing.

with us is dr. jeannette. we don't know much about this girl. do you? >> our heart goes out to her family, but it's so unpredictable on how the flu can affect different people differently. one thing we do know is she was unvaccinated. this is exactly why the cdc recommends that everyone get their flu shot, try to get it no later than october of each year. it is a yearly vaccine. last year, 80,000 people died from the flu and 80% of them were not vaccinated. ages six months of age and older, it is recommended to get your flu shot. it's definitely the number one way to prevent getting the flu. neil: did you find any correlation between those who didn't get vaccinated and those that had problems otherwise, because people are afraid to get vaccinations for fear it's a bad batch or it doesn't do the trick or they get the flu anyway. >> so most people that got vaccinated either did not get the flu or even if they did

catch the flu, their symptoms were less severe. some people, you can develop, for example, respiratory distress, pneumonia, difficulty breathing, so even if you got the flu shot and it was not as effective for example as it wasn't last year, it could still help minimize the symptoms, which is very important because there can be some people who are at high risk, for example, if you have asthma or diabetes or heart disease or if you are pregnant, you are at a higher risk. also those people who are below age 5 or over age 65, again, high risk. but definitely, the numbers that we see with the complication and deaths are with those who have not been vaccinated. neil: they always worry about different strands of this. there was a virulent strand last year, i think two years prior to that. anything like that this year? >> so there's a strain this year, the reason why we have different strains each year is because the genes in the viruses

change and mutate. the cdc is working very hard every year to try to predict, we can't predict, but to try to do their research to develop vaccines targeted against these viruses. usually it's strains of influenza a and influenza b. this year the vaccine is targeting strains of influenza a and influenza b. i can tell you this. compared to last year this time, i'm not seeing as many cases as i did last year this time. but it's unpredictable how each year will result as far as who gets the flu, how many deaths. hopefully this year will not be as bad as last year. the number one way to prevent the flu, get your flu shot in addition to, of course, keeping your hands washed and clean, staying warm, staying hydrated and staying home if you're sick, because you can make other people sick and you can get worse. neil: all good points. doctor, thank you very, very much. good seeing you. >> good to see you, too.

neil: this might make you feel better. take a look at the corner of wall and broad. stocks up appreciably. on the phone with us, scott martin. scott, what's going on lehere? >> it's interesting. i am feeling better thanks to this market. i had the sniffles yesterday and today i feel like a new man. here's the real secret thing going on today, my friend. bonds. bond interest rates are not moving at all today. you've got the ten-year solidly parked at 3.15%, 3.16%. when the market was falling earlier this week and certainly last week, bond rates were up at 3.25% plus on the ten-year treasury. to me, the kind of secret little sauce here today is the fact that even though we are getting a big market rally, bonds are not selling off, therefore rates are not going up. that's helping the growth stocks recover. neil: rates are still going to go up, right? i know there was an improvement in the home builder sentiment in october, maybe as lumber prices fell, maybe as their belief that interest rates stabilized, i don't know what's going on there, but it's

. >> well, they're not supposed to but still the market knows little more than maybe the fed is telling us how the rates are going to behave. to me that was the big scare over the last couple weeks, the fact that the federal reserve will kick another rate hike into the barrel in december and maybe couple more next year. all of sudden the market got itself excited to we have to boost the rates up to get ahead of the fed. i'm not sure what the fed told us so far, the fact they have at least i guess kind of hinted they will listen to the market data and follow the economic fundamentals. rate hikes to me are not a guaranteed thing and i think you see 10-year rates so calm on the fact that maybe the fed is done in december. neil: i notice a lot of communicationses companies, not all of the technology companies are coming back. you know, you have been richly rewarded diving back into these issues when they have a correction or worse, but do you agree now is the time or go

slow? >> i think going slow is probably best order of business for now, just because of your astute point earlier that rates are higher than they have been in the last several years and they're not that high and markets are frequenting out about them. some companies are coming out warning about some of these tariff impacts. but we're seeing good data earnings thus far. there are outlyers talking about many so. stress the tariff wars put on them the earnings visibility from some companies are good but not solid. i think taking it slow is the best medicine. i don't think this is over. look how the interest rates are behaving, volatility index is down big and but hasn't retraced all it was up the last few days. to me there is another pitfall ahead that you can take advantage of. neil: what about the saudi thing. one analyst was on and said that

is bigger worry than china. we don't know how it sorts out, maybe not, but how do you look at that? >> not good. certainly you mentioned china, very large emerging market has a stock down 20%. any stress beyond from the tariff wars and trade wars and tariff talk is certainly something putting a lot of volatility in the markets so we're actually avoiding a lot of international exposure here and keeping equity exposure here in the u.s. neil: real quickly, we're now beginning to mimic on the international markets we defied, today notwithstanding what do you make of that? >> you know it is interesting, it is about time they probably bled over. see how globalized trade is these days, how global the economy and how the economic effects kind of ripple throughout the world wherever they occur so to me it makes sense that's happening but something to keep in mind is the u.s. is the major growth engine

in the world so as far as parking your money somewhere where the u.s. is still the best place in the world. neil: you're the best. >> thank you, neil. neil: there is still time for charles payne to destroy it. >> so much to go through, neil. earnings, a lot we'll try to hash out through the next hour. neil: awesome. charles: i will try not to blow it. good afternoon, everyone, i'm charles payne, this is "making money." that jobs report, mind-boggling, smashing all records, we're talking the jolts report and it gave a jolt to the market. we have a huge rally on our hands. also more major headlines coming out of saudi arabia. looks like the world looking for answers on this missing columnist. maybe we'll get them. meanwhile companies are all about the public relations aspect of this, pulling out of a conference but just about everyone of them still