$1100 a share. look also at amazon. they report at 4:00 this afternoon. right now amazon is up $92 per share, 1756. big stuff coming down the pike at 4:00. watch fox business to catch everything that there is going. connell mcshane in. connell: what time would you like people to watch fox business? 4:00 eastern time. thank you for that, stuart varney. good to see you i'm connell mcshane in for neil. 80% plus of s&p 500 beating earnings per share estimates.

you have question marks being raised whether or not we have had peak earnings. that is in the news here last couple weeks. investors get their first read tomorrow on third quarter gdp. tonight we have all the earnings guys are talking about. so on this question of bottoming out and at least in the near term, go to third seven capital managing director, michael block, and walter wealth management president, rebecca walter. rebecca, let me start with you, where are we? not physically today, but where are we in this market movement? have we reached some sort of a near term bottom? or are you one of those people worried, you know, a downward trend that lasts for a longer time? nice bounceback today. >> connell, i think we'll have eventually a inflection point. i don't believe we're there yet. yesterday's earnings report,

amazon that was incredible. microsoft really great numbers. connell: michael, i wonder if tonight is big night? we overdo it. when amazon report, google, alphabet, that is somehow a big message where the investment community is. do you like tonight as a big night earningswise? >> it is absolutely big. big tech is getting hit on down days quite a bit. we had texas which did not have good earnings, bad guidance, softness going forward. texans and markets are in the semiconductor space. amazon coming up, amazon notorious are having wide guidance.

alphabet, had great numbers last quarter. if we remember thetas far. tech is, used as atm. people -- nasdaq down 4.3%. that tells me couple things. number one that is not healthy when that happens. if you break your leg, even if you're feeling good you don't run out next week to kick a 70-yard field goal. takes time for damage to get done. date is not coming to stand still. go to the tech, health care, look at names like microsoft last night, amazon, alphabet. this is a big, important night. in terms of sector leadership i'm looking for the growth sectors to take the reins again even though it will be choppy. connell: talk about that a little bit, rebecca. the stocks michael was speaking, we had a bunch on the screen, ones we're showing now in particular amazons, alphabets are ahead of their numbers. given macro environment, i will

buy facebook, i will buy apple, i will buy amazon, especially amazon before it reports, does that make sense to you? >> facebook is in its own category. we have insight into amazon, how much after -- of azure has market share. connell: that is the cloud business. >> exactly the cloud business. it has more market share versus amazon aws from last year. we do see that i think amazon is going to beat. i think we'll be fine with alphabet. i do like alphabet, google take a page from maria and help united states rather than china. connell: do you think, by the way as follow-up on some of that, rebecca, that stuff matters to companies in terms

whether people buy and sell their stocks, how they're viewed essentially? >> that is such a great point and you have people who do make investments based on their priorities socially. however, what i will say, is that, you know, google, silicon valley, tend to skew left. investor don't care. money is green. but what people do care about, when we start to have, you know, sort of this potentially, you know, speech being a problem, you know, half the country doesn't agree necessarily with all the leftist policies. i think that could eventually affect bottom lines, absolutely. connell: i haven't brought up politics, michael as a driver of the markets. larry kudlow did the other day. neil was skeptical of his comments. i quite frankly was as well. how do you see midterm elections influencing things if at all? are you much more focused what we're talking about already in terms of what drives the market?

>> i love the focus on fundamentals, earnings, macro data. that is not how this works, connell. we both know that. look at politics. for the record i don't think it is healthy that president trump is blaming the fed for everything. in terms of larry kudlow's comments yesterday, i think the market settled into that baseline scenario where the republicans keep the house, the senate. republicans keep the senate and the democrats retake the house and then we move on. connell: we've been there, my point we've been there for a while. >> we've been there for a while. getting this out of the way, confirming that, even if democrats take the house, i don't think everyone will freak out and sell stocks. i think that is the baseline, relief, overhang, this event will be out of the way. it is no longer an unknown. it becomes a known known. the word out of china, after the midterms, china will extend the olive branch all the more.

they're already trying to do it. let's see if president trump takes that back and we get back to that. that would also be huge positive. hearing nothing positive on that now. hearing slightest bit of positivity would help right the markets. connell: i don't know if it would happen. it would be great if we saw any progress on the trade front. we appreciate it. rebecca, mentioned that larry ellison, oracle cofounder was on with maria. he did make comments on president trump's economic policies. listen to this. >> in terms of assessing the trump administration i think there is style and there is substance. i am not going to comment on style but i'm very happy that the united states economy is doing well. i'm very happy we're at record low unemployment rates. there are a lot of good things that have happened. people want to assign some of the credit to barack obama, some donald trump. that's their, everyone has their own opinion. i just think it is wonderful to

see the u.s. economy growing again. connell: let's kind of use that, to the extent we can to have wider discussion whether president trump, maybe is on to something with his economic and global policies, even if style, on his side leaves something to be desired. from "the wall street journal" chief economics commentator greg ip joins us from d.c. good to see you. your column most recently was kind of along those lines, not exactly what larry ellison is talking about, but the whole idea that president trump can say something, you kind of get lost in it a little bit. you don't realize, hey, maybe he is on to something even if i don't like the way he is saying it. you were talking about trade to some extent, the idea, hey, he goes after china, even if you're kind of a free trader, he is making some good points and some of the global rules don't make sense, right? >> sure. but let es see why united states is part of some international treaties. we've done it since the end of world war ii. we've done it for a couple

reasons. we've done it to support our allies in europe and asia. and we determined that the global interest is in the u.s. best interest. if we have trade that is good for our partners and good for us. that doesn't mean everything carte blanche is good for the united states. united states historically made concessions at the sake of itself for the global good. trump says chinas are not needing our help any longer, they are not poor or more in sense of rivals. let's see if the pacts need to be fixed. a good example i wrote about, obscure treaty that governs international mail delivery. the rates are fixed in such a fashion, they're essentially to subsidy importing stuff from chinese e-commerce merchants. that hurts u.s. post office and hurts americans. this isn't nefarious on china's part, hey, there is loophole in this treaty let's exploit it. the trump administration says that will not work for us.

fix it or we're leaving. connell: i thought, by the way, i don't think i'm alone in this, i didn't know a heck of a lot about the universal postal union before i read about it in your column. i'm sure a lot of people didn't really know how all of this really works i guess that is part of a larger point. the other thing, you brought this up a second ago, when you start to say, hey, china you're a developing country, hey, china, versus you're the second largest economy in the world those two things are different. how should we, that seems to be a baseline in all of this. how should we look at chinese when it comes to discussions about trade? where are they of the who are they right now? >> they're still a developing country, in a sense much poorer than the united states. much poorer than u.s. traditional trading partners like canada, europe and they are trading economy and advanced and have long term focused plan to become a wealthy country and a lot of elements in that plan are essentially in conflict what the

u.s. considers protrade. two countries have very different visions how the world trading system should progress. the united states is simply saying, look that is not acceptable to the way we see it any longer. you must change. as you problem bely know, there is basically impasse right now between the united states and china. one. reasons as follows. the united states says to china, a lot of things about your system are unacceptable to us, like forced technology transfer. the chinese respond, what are you talking about? we're not forcing you guys to transfer technology. your private companies are entering voluntary agreements with our companies. he responds that your companies are part and parcel of your government. there is basically dichotomy of systems and world views. that is one of the reasons why we're not headed for early resolution to the tensions. connell: good article about it in the journal today, about where we are in this, and to your point the larger point we're not making progress because we can't even get started. i, it is always the case with negotiations when you're like this, you can't picture

something getting started if there is nothing impetus for either side togy in. this one especially, i don't know that we're anywhere close to kind of getting real negotiation on the table. are you in that same boat, this thing will drag on a real long time with the u.s. and china? >> that is the way it kind of looks, connell. my colleagues have a great article that i would recommend, everybody watching the show read today, about the breakdown in negotiations. the u.s. presented a very long list of demands. the chinese divided into three categories. category yes, we can deliver. category three, this is off the table. they never told the americans what are in the different categories. the americans are not still not sure what exactly the chinese are trying to do. this is not a trump administration thing. obama administration, bush, clinton administration, face the same problem, chinese say the right thing, make the right gestures, drag out the process. look at the problem with steel. the u.s. joined all the other g20 countries in 2016 is

including china a forum to deal with global excess capacity. here we are two years later virtually no progress made on that. i want to add an important point here. being frustrated with china and saying system is not work something one thing. blowing up the system is not necessarily the way you deal with it. even if you agree the trump administration has legitimate complaints about some aspects of the system you could argue it is going about it for the wrong way. hard to see what most observers see what he accomplished by imposing import tariffs on steel and aluminum like close allies, japan, korea, canada, when the problem is china. connell: a lot of people, as you know feel the same way on that. greg, good to see you. thank you for coming. >> thanks for having me. connell: all of that said, these are long term concerns, we're seeing a nice rally in the market which we'll get back to. but we also have two packages addressed to former vice president joe biden. all of that is in the news with the suspicious packages. we have an update on it next.

we'll get into the caravan heading to the border, with the president sending troops, active u.s. military to the border, sparking concerns of a clash. there are more details coming in on that. we'll have them straight ahead.

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connell: we do have some

breaking news from the newly-minted federal reserve vice-chair speaking in washington, and for the first time-sharing views on the economy. that is why we're alerting some of those headlines. he did say moments ago or headlines crossed the tape, further grad all interest rates hikes are appropriate. i heard that before, obviously from the chairman of the federal reserve, jay powell. this seems to be pretty much in line what we would hear from the chairman, the entire federal open market committee came under criticism from president trump for the way they're going about raising interest rates. that has been something investors and others have been thinking about. he talked about wage growth picking up, whether the fed would keep hiking. our basic read on this, this is not one of the hawks on the fomc we saw in the fed minutes when they were revealed. this is in richard clarida says further graduate all rate hikes are warranted.

stock market was up a little more, whether there is cause and effect, the market was up 300 plus before the headlines hit the tape. we're up 267, a nice gain, a nice bounce back from yesterday. a little bit off the highs. move on to another big subject with the fbi sayings more suspicious packages may be out there, a second package was discovered, sent to actor robert de niro intended for mr. de niro in the tribeca neighborhood. that is where we find fox news correspondent bryan llenas. reporter: connell i'm standing in front of the tribeca film center, co-founded by robert de niro and standing next to the tribeca cafe co-owned by mr. de niro. nypd got a call from personnel

here at the center, suspicious package addressed to mr. de niro. the nypd arrived. they. h x-rayed the package. they found some sort of a package inside. they moved the package inside after containment vehicle that looks like a cement truck and moved the package to the rodman's neck. where the cnn package from yesterday was also sent for further examination. sources say that obviously den near hoe has been outspoken critic of the president. this package looked eye didn't call to the nine others sent to prominent democratic officials the last few days. new york mayor bill de blasio, he spoke about this just moments ago. >> this is clearly an effort to terrorize people politically, to choose people for political purposes and attack them because of their beliefs. that is the kind of thing we have seen before in this city

and we reject it and we will not be intimidated by it. reporter: also this morning two suspicious packages were addressed to former vice president joe biden. they were intercepted at mailing centers. yesterday two others were intercepted. they were addressed to congresswoman maxine waters of california. they were stopped in washington, d.c. at a mailing center. this is a photo of the package that was addressed to biden. it matches images that were released by fbi. a heavy yellow manila envelope. six american postage stamps and device inside. the packages addressed to biden were located in delaware. connell, what will be key is surveillance video. they're looking a surveillance video in front of cnn time warner building and out in front much here to see if they spot anything. connell: we'll pick up on that. bryan llenas live from new york city. we have 10 packages found over two days in terms of looking for person behind this, bring in

retired nypd detective pat brosnan. you see on the map for those watching that, where the packages went. pat, thank you for your time today. brian said a couple things in his extensive report that outlined what we've been dealing with here. you see the word identical, i noticed a couple times. that is what authorities are telling him and others. we're seeing a lot of similarities here. we talk about video we're under surveillance all the time, this city. >> absolutely. point out yet again bad guys underestimated the amazing new york finest detectives. they're the greatest bloodhound on earth. they always get their man and the commonality in the content, the commonality in the structure and delivery packaging on these bombs will provide information. there will be a treasure trove of clues in there for these detectives to parse together, to cobble together the facts to get this coward in leg irons where

he belongs. connell: what is the most important factor you would be dealing with here? i would suspect, i could be wrong, you're the expert on this, authorities may already have all the information they need, right? so what is the most important kind of factors to put together, establish a timeline and get to this person or persons? >> well, speed, number one. okay? because you don't want this to continue, because even though the bombs haven't detonated, and i have some of my own theories what this is all about. this has never happened before, by the way, 10 bombs, synchronized in this way, none of them detonating. i'm confident that detectives and fbi put together a fact pattern, moving in a very, very concentrated and focused message in terms of getting toward the bad guy or guys who are responsible. so, you -- connell: people are reading into that, pat, that the idea that the bombs haven't detonated. there are all kinds of theories

being tossed out. i think it is probably best to avoid some of those for now because we just don't know enough and i wonder if the authorities do as well. does that matter to them the bombs didn't detonate or they follow the information they have on the packaging on the bombs, just try to let that lead them to the person at this point? >> great question. they do not. what they do, deal strictly with the cold irrenewable facts. connell: right. >> the fact that they didn't detonate is neither here nor there. it doesn't play into identifying perpetrator or perpetrators. they will divorce that out of the equation. bring them back in focus. reality they deal with facts. connell: might tell us more about motive. maybe it won't. might tell us more about after than before, is that what you're saying? >> correct, 100%. it may identify such a broader plan if such a thing occurs. is this a message, not simply a message, symbolic effort on some

part. none of them detonated. with very to keep that in mind. we can't be that lucky. no way we're that lucky they all failed, given statistical probability of it all. you have to look beyond that. that is precisely what they're doing as they identify means, opportunity and ability to be available to commit this crime. connell: let's hope they move quickly as you suggest they might be able to, just in case there is more out there, pat. good to see you. thanks for coming on today. pat brosnan. stocks, we're off the highs. i mentioned a moment ago after the clarida. down more than 600 on the dow. huge earnings tonight. we'll cover it all, whether it is clairda saying grad out all hikes are appropriate the or profit at the bell tonight. back in a moment.

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connell: interesting stories developing in the media industry. first of all, a number of stocks related to media, broadly speak having been under pressure. you have a lot of competition. you have a lot to do with turning out content. susan li is in the newsroom. she is taking a closer look at all this. hey, susan. >> connell, all in focus because we have con cast numbers. they beat top and bottom line. but also told us cord-cutting reality is gaining speed and momentum. comcast lost 100,000 subscribers in the quarter. that brings the total of 342,000 in 2018, a day after at&t confirming that they lost 300,000 tv subscribers so far in 2018. so this goes to show that the world and future is going online and going to streaming. in order to create content and bulk up, they have been spending a lot of debt. in fact they are incurring a lot

of debt. those two names, comcast, at&t, both in 100 billion-dollar debt club. some of the highest, most indebted financial companies on the planet, along with verizon. where are they spending their money on? content of course. going online streaming, that is battle of giants and netflix and hulu and such. also talk about what else is happening with netflix because we know they have been arming up, they have been spending a lot, raising $2 billion in more debt. their balance sheet also laden with debt as well. that is 8 billion. total like $10 billion of debt on their balance sheets. that is almost twice the amount they had a year ago. this goes to show, connell in order to get eyeballs, they're no longer buying their cable subscriptions you have to arm up in this new future race in media connell: interesting, susan. we're talking more about debt in a second. good story today, when i say we will talk more about debt, we'll

talk about tesla. last night we had numbers. surprised a lot of people with the profit numbers. the idea that tesla had a profit is one thing. the idea it blew past expectations was another. interesting to see the stock not maybe up as much as you might think today, up sizable. 7% gain. i'm sure they will take it, with recent troubles. charlie gasparino joins us right now, with the latest on tesla. >> go back to that we should point out cable companies incur debt, mainly not buying content to compete against netflix. i am, thought that is what she said. mainly because they have cable operations which are, you know, which are labor intensive and infrastructure. it's a huge infrastructure thing. the one thing about comcast that is interesting is that they don't have an over the top service to compete against netflix. the talk around is that they will try to make a run at hulu. who owns hulu right now? after the digs any fox deals, disney will own 60% of it. disney has already over the top services they're trying to

combine. connell: so they're they have -- >> the theory is comcast make a bid for human law, desperately over the air service to compete with netflix. they have content already, nbc universal is the big content. connell: everybody, first of all, the earnings were, to lack of a better term great compared to what we expected, right? now this is the day after story. what are people talking about today? >> it is story we did yesterday, that people are talking about today. did this on claman's show. take a look, everybody is focused on the stock. look at debt, long dated bonds. connell: right. >> they were trading significantly under 100 cents on the dollar. something like 80 cents on the dollar. connell: when was this? >> last couple months. but we started seeing whispers about better earnings, better cash flow came out, that the bond prices started to rise. why do they rise? because it's a better chance of bondholders getting repaid.

if you look at it now, i made on calls to traders, tesla bond are trading 90 cents on the dollar. remember 100 cents on the dollar is full value, right? connell: right. >> what you have right now a bet in the market. i'm not saying it is right by the way, they kneecap tall. they have a huge -- need capital. they have another payment due in march or november, all told a billion dollars, they still need money i think, a lot of other people think, right now immediately you hear from investors is the short-term cash flow problem is not there, when you're pricing debt at almost -- connell: even gene munster, highly respected analyst on technology, for example. first sign when he saw the report last night the company is moving to sustained profitability. maybe getting -- >> maybe. connell: maybe is big. people are feeling better about it. >> there is a bear case. i just gave you the bull case.

look at bond market, interesting to look at, it does predict whether a troubled company makes it. it was predicting might not make it. now predicting likely to make it. bear case, third quarter earnings were supposed to be this good. sustained profitability will be very hard. profit margins if you're lowering the price of model 3 which they're trying to do will shrink. does that produce enough cash flow to sustain the business? connell: sustainability is a whole problem. >> i believe, unless something changed, jim chanos, the big short is not reversing his position on the third quarter. he basically knew, a lot of the shorts knew, not talking about trolls on twitter, einhorn, children knows, they always thought third quarter would be good. the question, is it sustained? charlie grant of the journal brought up a good point last night on his heard on the street column, they should raise money. i think it's a mistake --

connell: timingwise. ever see tesla move updates for earnings, we'll report earlier? that is probably a good sign. >> one other thing since we're on media, megyn kelly out at nbc. connell: saw the reports. >> according to the "new york post" definite, our old colleague. connell: charlie, talk to you, thank you. we'll be right back. thank you. back in a moment. making my dreams a reality

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♪ connell: all right, let's get to the caravan story as we come back here. we heard from u.s. officials that hundreds of troops will be sent to the border as this migrant caravan approaches. edward lawrence on the story. edward is at the white house, he joins us from the north lawn. what is the latest? reporter: connell, pentagon officials say, orders came down, 800 active military sent to u.s. border should the migrant campaign reach the u.s. border. they are support personnel. they will join 2100 national

guards men helping the department of homeland security. the numbers in caravan dwindled, sickness, harrassment, bad weather down there. some have taken government offer of a bus. others claim asylum and 4,000 push on. president trump said democrat-inspired laws make it tough for us to stop people at the border. must be changed. i am bringing out the military for the national emergency. they will be stopped. representative michael mccaul chairs the house home land security commission, house homeland security kit me, believes the migrants should apply for asylum in mexico. >> we should work out a agreement with mexico in my judgment, they would claim asylum in mexico because after all they're away from any fear of persecution in mexico.

reporter: one other piece of news. cia director again that has pell is at the -- again that has pell -- gina haspel, that. connell: reports that she heard audio of that. thank you, edward, from that briefing. on that story, saudi arabia crown prince mohammed bin salman at the davos in the desert conference that almost everybody pulled out, he is going forward with the plan to diversify the saudi economy away from oil. scott shellady joins with us a little bit more on that. we'll use it as transition, scott to talk about oil action since, good to see you, by the way, since all of this started. what do you think of the recent action in the market given all the geopolitical tensions of saudi arabia and what have you? >> it's a crazy one.

four to six weeks ago we were talking about oil between 80 and 100 bucks a barrel. there were crazy calls for high as $400 a barrel. we're in the low, mid to upper 60s. good news, bad news. good news up 15% year-to-date. bad news, it is headed for its worst month in over two years. here is what i think, right? we get something overexcited like we had done six weeks ago. the u.s. is still doing very, very well. the worry is the middle east. could affect prices at least wti spread. benchmark in europe and benchmark in the states. we're doing well. our economy is doing well. i don't see oil, it will struggle because of all the other things out there. we're not seeing commodities rally period, or at least as much as we like to see them. we want inflation. i am not worried about running away from us anytime soon. connell: you mentioned calls from people saying this whole thing went off the rails whatever, we would be 100, 200,

there was mention of that before. whole theory was based on relationship between the united states and saudi arabia because of the khashoggi killing, just basically being destroyed. you know, since then the saudis basically came out and said, lissen well pump extra oil as counterbalance to iran. that is the rear view mirror, that near concern? >> they will try to buy our friendship. maybe they can, right, at the end of the day? there are reports from multiple different sources maybe the king will have to get rid of the crown prince over this. maybe that is their way out. the crown prince is in there with grand ideas. he is trying to revamp the way everybody looks at saudi arabia around the world. connell: on that note, like i said, mohammed bin salman has been talking about getting away from oil, right? whole idea, they don't want to be as dependent, on it, whole theory behind the davos in the

desert conference. how is he locked by market participants, if he was ousted hypothetically, would that be a price, kind of moving event in the oil market? >> it might be something that happens sooner rather than later. i'm not just saying that because of what we're reading as of late. there is lot of research. maybe six to 12 months ago, saying that you know what? i'm the, on level looks like he is trying to get something done, diversify saudi arabia from just that oil. remember he took a lot of wealthiest families, locked them into a hotel until they paid more ransom money. he is saying right things and letting everybody know, in davos in the desert this is what we like to do, it might albert idea to let the king start over. maybe that is how it plays out. connell: we'll go back to look

at dow winners, with market making up lost ground. microsoft, intel, pfizer. we have earnings tonight as well. we'll be right back here, "cavuto: coast to coast". 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 financial advisors and their clients than anyone else. visit findyourindependentadvisor.com

connell: you see a lot of map work on here on "cavuto: coast to coast," during election night. i will be with neil on that night, going over with the what if possibilities. a big story developing this week, that is on voter enthusiasm, as we look at early voting numbers that have come in. what we've been seeing, looking at party affiliation, republicans in many states, arizona, florida, georgia, indiana, all examples with likes of montana, tennessee, texas, republicans are out numbering the democrats in terms of the voting in all of these states. the only state that is an exception to the rule here on this is state of nevada. so if we get into what if scenarios, we still have nevada red, maybe that one turns blue. either way it will be very close in the senate. if that enthusiasm translates into votes in florida or doesn't in north dakota, in map which is advantageous to republicans

start looking more so. that is 53-47, maybe overly optimistic for republicans but that kind of thing could happen. the bigger question is the house of representatives. you need plus 23 with the democrats to take over balance of power wise in the house of representativesps. there are 27, according to fox analysis right now, toss-up states as we see it. now in order to get to the magic number, the republicans can do it, right? all they really have to do in in scenario, remember, there is a lot, suggest near term enthusiasm on their side, basically win half of these undecided or toss-up states. if they do that, yeah, republicans get to the magic 218. the fear still on republican side, you hear this from insiders on republican party they won't be able to do that, at end of the day undecideds generally data shows not as

favorable to the republican party, not favorable to the president and may go to democrats, and democrats get 53%, that gets them over the hump. if they outperform what hillary clinton did, democrats could be in much better case. we're so unsure for the house. could be a great night for the democrats, getting up to democrats. republicans near term momentum, win half races, to make the larger point, they can get to 218. if you hear people saying they know what will happen election night. it is not clear by any means. let's get to our guests to talk more about this. another thing developed, you have republican money pouring into races where normally republicans might do pretty well. especially house races. that is interesting given what he said, americans for prosperity, president tim phillips is with us, and also democratic strategist, andrew feldman. thank you for coming out. we appreciate it. tim, let me to to you first, look at some of the states where republicans might ordinarily do

well, if the near-term momentum as i tried to illustrate with them, why are they spending as "politico" outlined so much money in races in florida, georgia, north carolina, virginia, that have been republican districts for so long? what is going on there? >> the party in washington, d.c. struggles, has challenges in midterm elections. in 2010, barack obama lost 63 seats in the house and majority. in 2006, george w. bush lost 30 seats, nancy pelosi became speaker. going back to clinton in '94, he lost 54 seats. they're smart to do that. challenging environment for the party in power. that is what is happening this year. they face an electorate that doesn't like or trust washington. they have a healthy skepticism. get this, five of the last section federal elections have been change elections. we haven't seen that in a long time. they're smart to do that.

connell: so they're trying to save that majority any way they can. now flip side, andrew, what about enthusiasm issue? we were having conversation a couple months ago, would be obvious enthusiasm is on the democrats side. still probably is by a smaller margin though, since kavanaugh hearings, this caravan story, the president pointed to. very well may be right as kind of driving republican enthusiasm. do you sense a shift in late cycle enthusiasm here? if so, what does it mean? >> no, i don't think' grew with that, connell. good to be with you. it has been a while. look at new "usa today poll" out today, likely voters are voting 51-43 in favor of democrats in house districts. i think that our momentum and president knows, that his accomplishments are not something he can campaign on, that is why he is been campaigning on this message of fear and xenophobia that we

heard a lot about recently. connell: so you think undecideds still break democrat? >> absolutely. especially in these districts where you're seeing republicans put late money because democrats are raising money like they have never raised before. and we're competing in districts all over the country. you look at district that was once held by, once held by eric cantor in virginia, spamberger versus bratt, we out raised bratt by three times money. i think we're in good position in the house. republicans are in peril there. connell: take that tim, before we go. the question we have the states. senate side is far smaller. senate map favors republicans. if we're right on foxx, 27 toss-ups states, undecideds whichever way they break, is andrew right, late cycle enthusiasm for republicans

undecideds might still break for the dems? >> two important points. one, without a doubt, in every poll across the country, on left and right, during the kavanaugh hearings it energized the republicans, conservative base at higher level than it had been which brought down the enthusiasm gap. there is no question about that. connell: second point? >> you can always cherry-pick one poll. the second., small number of swing voters in these districts. the terrain in the red states, they have gotten probably a little redder over the last two weeks. the blue states, absolutelily i think democrats have an advantage. >> can i jump in there. look a suburban women. connell: know he. we will. i don't mean to be rude. we have to cut you off, to get back with top stories at top of the hour. good discussion guys. back in a moment.

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connell: here we go into our number two of cavuto coast to coast character to be with you. i'm connell mcshane filling in for neil. ronstadt day for the markets. plenty of volatility. the dow on pace wordsworth and since when 50 and even at the 300 plus point advantage seen today. i stirred the reserve made some comments in the last hour. further gradual interest rate hikes are perpetrators which is picked up. some big winners today, type, microsoft, terrific report to make.

intel, pfizer all up today. market watchers are looking for some big numbers tonight. not only intel but the big ones amazon and also that come in the parent company of google. surely rejoins us come as otis smith. the great gerri willis is manning the fort and the new york stock exchange in terms of where the market is headed your let me start with you on the bounce back that we've seen today because we are trying to figure out where we are in all of this meaning the recent selloff. it's been a terrible month for stocks and you have a lot of theory about this. this is just the start of it. others say that they be requested by nissan started a near-term point where we stabilize, get some decent earnings from big tax and more back off to the races. what do you think? >> on all, great to see you again. right off the bat i think a lot of what we're seeing now is reactionary. in the short-term this market controlled by emotion, algorithm and headline. a lot of the stuff we are seeing

starts off by the nature. just people taking some profits ahead of the midterm election. but then there is an actuality. in other words, as listing follows through researcher breaks down through technical barriers like the moving average to 200. people start to rethink things. is this for real? is this something i need to be concerned with? get back to address us in the long term and that is earnings, economic growth and from an earnings are just stripping out all of the noise, it looks pretty good right now. again, from a tech perspective some of the names you mentioned look at the fire. i want to hear from some of the big names we've got on deck. i think moving forward again the attention to what is really happening here and what are the results of the midterm elections. i do think that's still a stumbling block here at connell: i talk about that. jerry's done some reporting. let me bring in craig first on the front. all week and last week we heard

this at peak earnings. this is the best it's going to be. the bass behind us. we're not going to sustain that. now we've seen since then some more numbers. some very, very impressive with numbers last night. we'll see what happens tonight. what do you think of corporations are right now? have a kind of popped out in terms of their growth or you confident we can sustain some of the growth rates we've seen going into the future. it should be what drives markets, right? >> i'm so glad jerry hit on something that very few people are talking about. that is the algorithm trading. the computer trading is really affect d&d settings dramatically in both directions. i know one program for example called you to know jack that's making a ton of money in the markets right now. that's the name of the program. you don't know jack or the circus has come to town is another one. the point is, connell, we have a

different world today than just two years ago. let me just take two seconds. we now have an agreement with mexico. we now have agreements in theory with the european union, with japan, which are many. this president has basically built a trade coalition that says the two largest economies in the world, japan and china will no longer have an uneven playing field. we open up our markets. you're going to open up your markets are our markets and i think that's got them around america thing we can take this much higher. we can make a whole lot more money. connell: the question on that is you're getting at china. the question is not an it doesn't look like we are. >> not even close. that gives you a little pause. that's what gives you a little pause in that theory. it's great we have these other agreements but we've got a long way to go. >> but i think you could win, connell. that's the point. get the chinese to do what he

wants. connell: i'm just talking about timetable. you're right, he might. i do want to talk about midterms for a second. jerry brought up a second ago. in the last few days i think larry kudlow got some people worked up the other day in the white house driveway talking about the idea that he found when the market was down you could make this argument on the republican side as well. just because they're worried about the dems take in the house. of 300 points. i was a little skeptical about about how because months ago i thought the democrats retake the house. i didn't know what it changed. you've done some reporting, talking to people about this. what are you hearing on the front and how midterms affect elections? >> for a baseline here, this particular election are concerned about it down here. i do have traders telling me they're worried about the election because to the degree the democrats do while they're worried about the agenda.

what happens to tax policy particularly corporate tax policy. what happens to the regulatory framework or the president and super successful employment with the regulatory framework. this idea that america's open for business starts and ends with triumph. it really comes from him. to the degree they make inroads up another point. we are all obsessed with congress on capitol hill, right? there's 36 races for governor seats as well and these folks in the midwest, michigan, illinois, david tooted new policies for taxes, lower taxes, lower corporate taxes. that could be a mistake as well. there's a lot at stake in this election. it's not all baked in the cake. related questions about the governor's race. connell: fair point. we probably don't talk as much as we shed about a tax levels because that leads into all the stories of why so-and-so going.

sometimes we're talking about national races. whether or not the dems take in that house every time someone started up it's not just kudlow. the momentum if anything look like this last hour and enthusiasm numbers and now you have people talking about the fact they were six months ago. how is that interacted with markets in your view, jarod? >> i've been overlaying a lot of polling results if you will with market behavior. and it's interesting again, remember, if slightly tied together. i do believe if dems gain control of the house, trump does have certain things he can use to execute his plan. obviously it becomes much

harder. i think there's a direct correlation there. the bigger thing here -- connell: what we already assume he not? that's what i was asking. >> i think a lot of that went away. there's more of a chance if you look at probability. i think republicans have gained some ground. connell: the republicans are better now. why now are we suddenly worried? why now as opposed to back then when the probabilities were better. that's my point. that's why i don't know how much is starting markets. >> and again, that's a fair argument. the not forget interest rates being part of this equation and talking about trade. the strong u.s. dollar if it continues on this we can have the greatest trade in the world. if europeans can afford to buy her stuff, nations can afford to buy our stuff. >> the trade agreement does very little. but you're right. that is the fairpoint because you're the one who brought up trade.

a lot of companies -- they have x amount of impact. i know we heard that from caterpillar and 3m and interview the ford cfo last night to some degree they are. texas instruments kind of hitting out at without saying direct impact. but on the dollar, that strong dollar if your big international company that's an issue. >> absolutely it's an issue. keep in mind, connell, this is not like we reverse the trend. since 1971 the u.s. dollar has been in a long-term bear market. yes, it's screaming right now and jerry this right. it could increase trade dramatically. what happens when a research to pinpoint when the dollar so strong people can afford to buy our goods and services could have a real impact on the market. connell: last point. make whatever point you're going to make. >> basically talking to traders today which is basically all it did during the past two days here. but they won to see tonight if were going to break out of this if they want to see a strong

performance because we sold off after the close for days now. they don't want to just the 100-point gain. they don't want to see 150-point gain. he won a stay at least a 250-point game tonight to really feel like we've turned a corner. connell: will have the numbers tonight for the big ones, amazon, google and also that. and then how did the stock straight tomorrow. that'll be really interesting. >> are getting rewarded today for having good numbers. microsoft, tesla, twitter. all of them getting rewarded so i believe that's good news. connell: it is because netflix didn't hurt it recorded. anyway, thanks to all three of you. very good discussion on this crazy world were living in. in the meantime, one thing factored into all this is a story started breaking yesterday and there are more suspicious packages may end up surfacing. where can i keep talking about

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former vice president joe biden, one to robert deniro the actor discovered overnight as well and then a couple new headlines coming out at the reuters service at this hour and kind of interesting. first of all, investigators now are said to believe all of the packages, all of the suspicious packages that were sent went through the united states postal service. so that's the first thing. the second thing is they are really focused on the state of florida. this is coming through the reuters news writer. the focus is on florida. the congresswoman been a return address on either most or possibly all of these packages. doj joins us. charles marino does as well. what do you make of that? there's a lot of clues left behind whoever's behind it and maybe it's one of those clues.

>> certainly. the jay tts is going to take advantage of the ample supply of evidence here, you know, of these 10 devices so i'm sure the alcohol tobacco and firearms are going to look at that and draw clues together very quickly. also when i put that in itself a bad time here now. we know what these packages look like. now let's make sure the very near term that there is no more packages that get through and risk getting to their destinations and those that take advantage to make sure the american public is staying vigilant. and if there's anything suspicious that they take action and report back to local authorities. >> absolutely. we'll see something say something. can you talk about how these cases are put together in terms of how once you have the evidence put together it's a case because it kind of speaks

to those headlines that i mentioned. the focus apparently is on the state of florida even though the packages were mailed from others dates possibly from there. >> it's a really good question. i think federal law in force in has been under attack and has been questioned for the last few years. not just because of the president trump investigation, but also by the russian investigation hillary clinton investigation. this is a real chance for the fbi, secret service, one person and to show the reforms going on are working. connell: such as? when you say reforms. >> getting rid of politicized managers and supervisors, trying to refocus the fbi on the core mission of protecting the country enforcing federal law and this is a perfect opportunity to for them to do that. what's going to happen here is a

series of federal laws potentially violated using the mail to try to kill people, politicians and national leaders. there's going to be a lot of forensic evidence is mr. marino said. a lot of clues. a real chance for federal law enforcement to work with justice department prosecution and show they can really perform their core function, core mission which is one person that rather than getting wrapped up in politics like they have in the last two years. connell: you want to be careful to john's point to make sure you get this right and maybe there's a larger point to be made to help investigate this. however, is this the type of investigation or what you heard so far that could be and maybe even should be wrapped up relatively quickly, but there were a lot of clues left behind. i don't know enough about to say maybe this person is amateurish in the approach. maybe that's going too far. the idea that enough forensics and evidence was left behind

authorities could move pretty quickly on this? >> i think there's no doubt now that federal investigators as john mentioned are out there kind of pounding the pavement and people are being spoken to surveillance but it's been like that and they are hoping to wrap this up rather quickly. it certainly is not a problem of investigative resources i can tell you that. based on those targeted by these devices. there certainly could wrap this up for a quickly. like any investigation politics aside, investigators will keep their eyes wide open. guess politics, you know, the political possible leanings of one, but it is certainly not going to be a focus of the investigation and these men and women, professionals know to do so would be a detriment to the investigation. they are going to go with to go in with eyes wide open, follow the facts and evidence for it takes them and what shall see in typical fashion is you're going to see this net start to tighten

on this person or group. >> lets hope it happens quickly. as i said earlier for the simplest reason of all if there are more packages out there, let's hope that they can move quickly. thanks to both of you, charles and john. good analysis today for what it's worth we appreciate that. another story were going to follow. troops heading to the border here in at least 800 active-duty military heading to the southern border of the united states and with this caravan moving closer to becoming a bigger and bigger news story, reaction analysis from the judge. andrew napolitano after a quick break. - as the original host of wheel of fortune,

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connell: all right, as we move on to this migrant caravan story, we've been told at least 800 active-duty military are heading to the southern border now with the caravan migrants continuing its trek north. we are bringing the judge, fox

news judicial analyst judge andrew napolitano with us. good to see you. >> good to see you. >> of the president of the military will follow along and we presume they will come of the military folks he sends there can only provide support to the border patrol. doctors, lawyers, carpenters, engineers, police officers. they cannot enforce the mystical using the force of law. they can go in the streets with weapons because federal law prohibits that. connell: for this is more for show. show of force. >> yes and no. the presence there will be showing that they will believe the border patrol of sort of a few will pay back off of things the border patrol has to do thereby providing more border patrol personnel to receive these people when they come. the law is very clear and it is not in donald trump's behavior and i don't blame him for his

frustration. dream to write. >> of the migrant so much as the tip of his shoe or her shoe on american soil in southern claiming asylum, that person is in. there is no limitation. connell: for lack of a better way there's no way around that. train to correct. the only way a person can be arrested as if they sneak in, if they don't go through portal. if they go through portal and came asylum is no limitation on the number. the asylum trial will happen six, eight, 10 months from now. the obama hears those people were set free. have showed up for asylum, have disappeared into the general population. the trump administration detain them and separated from their children. the separation of children from parents federal judges have ruled is not. the president has confronted huge numbers of people the federal government must address. connell: let me bring a little new information to the

discussion and this comes from our colleague, jennifer griffin reporting on the side. the urgent request for assistance from dhs last night, homeland security but a least a hundred troops should be at the border is by october 30th. that is early next week we be dealing with something like this. the pentagon is drawing up plans. talks are underway with lawyers and betting request before secretary jim mattis would sign off on this if it's expected later today. >> very hopeful from jennifer. the conversation is like what we're talking about now. it's an old law but it's still in force. the military and the united states of america may not be used to enforce domestic law. law that applies in the country. connell: it would not eat infantry combat troops. it would be a combination of reserves inactive duty working

in engineers, lawyers and medical. >> there you go. if the president does it that way he will not be violating the law. he will not have u.s. army standing there with m-16s in their enhancing train challenge me. they can go into mexico. they have to stay in the united states died of the border and it will free up border patrol, many whom are bilingual, most of whom are familiar with these issues in all of whom are there to process these people. connell: you started this by saying maybe they could be there ina, quote, supporting role. the only weapons they would be armed with are for self-defense and they would be there in a supporting role in lethal and nonlethal ways to aim ways to amy's troops much is being told. they are considering all of this. >> i know from sources they are discussing this as we speak. he's getting all kinds of advice from having them show up with

tanks and automatic weapons to this kind of thing. automatic weapons i don't think he wants that imagery because you can't use deadly force on unarmed people. the weapons would just be for show. connell: there's tons of politics involved. we are talking about this right before my midterm election. >> the president promises and is pretty good at that, there's the image of this and there's the midterms. how interesting the troops are arriving one week to the day before the mid-term speared connell: what are the odds. this is very interesting and exactly as jennifer was sending out some of this reporting that it's complicated and they realize how complicated it is moc by next monday or tuesday how the whole thing plays out. thank you, judge. in a moment back to the market. unfazed today by anything we been talking about in the last two minutes.

by the reports we talked about earlier, china trade negotiations going nowhere. an article in the journal about that. today is all about bouncing back from the losses we had yesterday in samarra to miss them creeping about earnings with it tonight. we'll see. we'll be right back. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job. call for a strategy gut check with td ameritrade. ♪

connell: i mentioned china a moment ago. if you look at the indications are getting about trade talks between the united states and chinese, every indication it seems we are getting is that they're going nowhere fast. step three is all over this and she joins us from washington with the latest. reporter: there's actually one thing they do agree on right now and that is that they're not going to have a meeting on trade good why's that? united states won a few agreements on specific rings. trade deficit, curbing giving new tech companies then this is

an example, the best of ip. the trade talks don't just seem to be progressing. however a meeting is still scheduled that the president and president xi jinping at the g20 summit in buenos aires at the end of november. early this morning a reporter asked pastor could carry sara sanders at the white house about the fate of the meeting. the cement. >> is the president still meeting with president? >> will keep you guys posted. reporter: so not really an answer there. i'm going talks going and forth for quite some time. in may they were supposedly a scheduled agreement. then you have the united states pulled out. china essentially right now feels cheated. because last year there was an agreed trade agreement with commerce secretary wilbur ross but the president vetoed it.

two situations are the president has vetoed any type of trade agreement. they're not on the same page either. according to a recent report from "the wall street journal," china doesn't want to put an offer on the table for two reasons. one they don't want to give negotiation tactics out just yet and today are concerned the president might be tweeting out to the public in a conversation between both parties. there's a big concern, lack of trust between both sides and you also have the president of the united states threatening going for that is going to increase the tariff and $200 billion for the chinese goods entering the united states. that will go up to 25% by january 1st. at this moment trade talks are not progressing between both parties however there still scheduled to meet g20. connell: we think. although the answer from sarah wasn't 100% clear. but the chinese don't put their cards on the table so you know what, we don't want to resume

talks at all. kristina, good to see you. thank you very much. the other thing the market considering, by the way, great bounce back trade despite all of this. further gradual interest rate hikes are appropriate as wages pick up. said as much about an hour ago. but that of course is still under a lot of pressure and from that pressure coming from the white house. keith fitzgerald and tim cook now. the print we are seeing on the screen in front of us now up almost 400 points today on the dow jones industrial average. yes we know we were down over 600 yesterday. , what he think of the back-and-forth of the federal reserve. the reason we point out her readers, and since he took over as voice chair. with all the criticism, much of it from president trump it's even more likely than ever to

keep raising interest rates because it has to prove its independence from the white house. what do you think? >> that is absolutely the heart of the issue. they are in so deep that they can't back off now because doing so would be a de facto admission that them on. the most responsible thing for the fed today would be be borrow the fed commentary from the media and let the market sort this out. raising rates is very, very risky and irresponsible. connell: by some measures i think the dow, which we don't have as been the most volatile of the averages i think is the most volatile in terms of price movement in like 100 years or something like that. the indexes have been done 600 yesterday, up 400 today. how much of a factor as the rate conversation been for you? >> well, it's been part of it. i think back several weeks ago when the comment was made that

the fed, you know, may have a long way to go raising rates until it gets to a neutral gray. that really started the markets off. and so, the markets are probably overreacted. but that was the catalyst to begin with has been a really rough couple weeks. other things happening with the market, too. some areas getting pretty expensive. priced for good continued good news and steady numbers coming in. bush is not realistic. that language from the fed coming out really kind of cute doctors. we are in. connell: let me follow up. rb close to the end of this pullback in the beginning of it and even today the balance were saying, any significance from where you sit -- and mark

>> i think we probably are closer to the end. we probably have 10% corrections. about once a year. we've now had two this year. once in february and now. or about on pace so i would guess for the market to fall further we would need to see some really poor numbers coming out of the broad economy and it just doesn't look like that's going to happen. my guess is we are closer to the end. >> what you think, keith? >> respectfully i would love to believe that but i'm going to disagree. emotions are running high in his additional traders are so skittish. the buy-in you are seeing today is a good time because it means there's an orderly process and they realize they've got to them at the earnings but there's still an awful lot of hedging going on. volatility is still up the charts. traders i talk to are still nervous. connell: what are they so nervous about, keith? if the geopolitical event, the

peak earnings. common is that midterm elections? what is providing the most coming in now, source of anxiety. what is the source? >> it varies by the type of trader quantitative, political, geo. the key here is the narrative. not the numbers that matter when they showed, when they're still pretty darn good. but everybody's worried about 2019 and the impact that they have no control over. that's the uncertainty that's disturbing the flow. connell: sometimes it isn't the numbers, but how the company's stock price reacts to those numbers and maybe buy some people are urged of the microsoft trade up as much as it is after last night's numbers for netflix reported one up a lot in the after-hours in the next couple days gave back two games. amazon is up a lot. 5%, a-alpha bad for .3% ahead of it numbers. both of those coming out

tonight. we don't know what the numbers are yet, but you wonder how would those stocks react to good news if we get it tonight. >> yeah, well i think, you know, the earnings are a big part of that. this year we had a great number of earnings mostly from the tax bill. next year the expected numbers around 10%. that the question on the market thinking is what is that growth rate going to be? i think it's healthy for us to kind of take a pause where we are now and let the fundamentals come all at the earnings catch up to the price appreciating we've seen over the last couple years. and so, if the market continues to see steady growth without surprisingly weak numbers coming out of the broad economy, that should bode well for her recovery later this year. drink you will see we talked about corrections in healthy. the dow and s&p and nasdaq

correction was the story yesterday moving 10% off high. eggs, guys. we appreciate it. we move on here today. saudi arabia, the stories changed so many times. the killing was premeditated. a lot of people thought that already. now the saudis are saying now. new details after the break. i did a lot of research into dna tests. most can tell the continent or country that your ancestors are from, but ancestrydna showed me the specific places they called home. connecting 20 million members to a deeper family story. order your kit at ancestry.com.

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connell: so the cia there do not have to follow briefing president trump after reports surfaced that when she was in turkey she heard audio of jamal khashoggi's killing. all comes as saudi arabia changes its story once again suggesting out the death of khashoggi may have been premeditated. former bush 43 deputies to stand up and talk with terry peter brookes on all this. the premeditation part which surprised a grand total of no one. in the briefing of the president, i wonder if that is the conversation, if that is the briefing that drives the u.s. response to all this especially purports in the "washington post" and reuters ensure she heard audio. >> well, we don't know what she heard on the audio but i think you're right.

she'll be briefing the president on this. it could be very closely held. this is between intelligence services, cia and turkish intelligence services. i think everybody is pretty a comfortable with the uncomfortable fact this was premeditated on the side of saudi security forces. the big question is where do we go from here. connell: first on the premeditation part it's almost not worth it having a conversation about it. if the reports are accurate, someone how to balance out where there were 15 nations there. anybody could've figured out that would've been premeditated and now the saudis figured out themselves they have to at least acknowledge that much. where we go from here we had a conversation about this yesterday. secretary of state mike pompeo came out the other day and said they're starting to identify some of the people responsible

and will take some action and he talked about revoking visas. some say and it was suggested on the show that maybe that doesn't go far enough and we should talk about other punishments. what do you say? >> bayboro to revoke visas to those identified. the u.s. government feels comfortable with the names that came out of turkey. i understand there's interagency talk about economic sanctions against these individuals and perhaps others. many of these folks may have bank accounts in the united states come against the u.s. banking system. there would be another step. europeans are talking about suspending arms sales. the saudis not only by u.s. arms but also european and canadian arms. there is some impact in parliament but said they may actually do that. what everybody's doing at least on the american site is

gathering what we know. director haspel is briefing the president. they will evaluate the information, continue to collect their own information and decide how to move forward on this horrible event. connell: a couple things happened while you were speaking. the price of oil pop up first of all. any time we talk about this story and a bunch of the defense companies popped up on the screen as well looking up their stock prices. so how do you view the risks? some people have said we have to be really careful because of the relationship with saudi arabia i heard the opposite for people say listen, our moral standards supersede that. we have to impose the proper punishment and the risks aren't as big as you think and we'll all get over it on the line. do you have a viewer to come out on the side of that? >> there's a lot at stake let's lay that out first of all.

saudi's are an important partner of the united states for a lot of reasons. their leader in the muslim world, leader in the arab world. rumpled and bulwark against iranian expansionism and that includes the terrible war in yemen that is going on. they also are an energy giant as you just mentioned. they are important economic customer of the united states on a number of issues. they're also an important counterterrorism partner. think about that. we haven't been talking much about isis earl qaeda. this is a very important relationship. >> of all this is true you still go to punish them. >> there needs to be some sort of accountability. no question about that. i'll have to figure out how to do that. the first thing you need to do is gather the information so the punishment is just. connell: peter, always good to see you. peter brookes. in a few moments we are waiting for the president trumpet around

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. . . connell: all right, couple minutes on tech here. tesla stock rocketing higher today. that was some number last night. most profitable quarter ever, which is to say the company doesn't often report a profit but it did last night, took people off-guard. not deirdre bolton. she is never taken off-guard. >> one quarter, third quarter ever, i should say that it is

profitable. so all the people who were betting on the erratic founder, they're making some money today. longer term, the question in the analyst community is about sustainability. this was a amazing quarter. so hopefully it's a page turn for people who own the stock. that is really the question. connell: charlie earlier, gene munster the analyst came out and said this is december -- decent. maybe they're on the path to making money. >> best third quarter in three years. if they can continue. a what a lot of people, gene munster included obviously is another quarter that looks like this one, followed by another quarter that looks like this one. then people will say, okay, maybe elon musk is getting used toe growing pains. sort itself out a little bit with the jokes. conference call was drama free, great for him. connell: that is terrific. >> he kept the q&a pretty short and sweet. and questions that were asked.

remember the first quarter he was telling analysts they were boneheaded. the questions were boring. connell: even if accurate sometimes you're not supposed to say it on conference calls. >> you're not allowed to say the truth out loud. the other effect on the company is effect of trade situation with china. some of these products for model x and model x -- connell: didn't they put a number of 50 million? >> yes. compartively a blow to gross profit, that 50 million is manageable. if it grows higher and longer that is when the x-factors kick in. connell: tesla, there is a lot of things to talk about, there is a lot of good stories but i'm not sure -- >> average person. connell: this is a tesla story. market bouncing back a little bit.

easy to see how companies trade off at they report. i wonder if we turned some sort of a corner. it will be interesting to v. tonight, as they. after 600 point drop for the dow. today was solid earnings for a company that has been executing fliesly for a couple quarters. not so much of a surprise. we will hear from alphabet google. i keep calling it alphabet google. i feel like if i say alphabet people go, what? connell: google is fine. amazon is a big one. they're both big ones. if both companies surprise to the upside, both with very strong reports. i do feel like tomorrow is kind of a big day at least in the near term for the markets. >> one thing in common people look for both sets of results from google and amazon is cloud computing. that is something they're competing for. amazon so far is ahead.

google is working to catch up, it is making progress. that is it one area of revenue growth. i think we'll be talking about these stocks later. connell: you cover at least one on "after the bell" for us. we'll go to you on the google numbers. we'll cover amazon as soon as it comes out as well. stocks reaction after a good number. remember netflix. >> it crashed. that is the risk, talking about the theme about peak earnings. for amazon, for example, 30% revenue growth is what is expected quarter on quarter, which for almost any other company you would think is best set of results ever. i'm sure if they do 30, to 32% to your point, you could see all of sudden. it is good, but not as good as expected, or larger question, can companies continue to grow at this pace? connell: we'll see. about sustainability. isn't that what you started with. reason we have you on. love having you on, really promote the show at 4:00.

that makes sense, right? deirdre will cover earnings for us. will cover the earnings when they come out. you know, melissa and i will try to provide some sort of analysis. >> as you will. connell: it will be interesting night. we'll see how the big companies will do. we have couple hours of market action between now and then. charles, you will not be able to take ton of credit for a up market but we're already up 373. charles: we're riding it down, 373 but if we finish hour up 500 i take credit. connell: what if we finish hour at 320? charles: absolutely i will take responsibility. connell we look forward to see youing after the close. good afternoon, everyone, i'm charles payne, and this is "making money" and today we mean it.