and the s&p -- nasdaq is down just over 2%, coming back a little. what a program. our thanks to all of the people who appeared with us today. of the susan earns thanks very much for stepping in like that. all good stuff. my time is up. thanks to you brian. connell mcshane. take it sir. connell: we stay on top of all the breaking news on all angles, coming in to "cavuto: coast to coast." i'm connell mcshane filling in for neil. we're looking at picktures of the east room of the white house a suspect in the bomb package case has been arrested in florida. we're expecting couple things next couple hours. justice department holds a press conference 2 en:30 eastern time. we suspect we'll hear more about the particular suspect at that news conference.

any minute from now we'll hear from the president of the united states on the arrest. he is appearing at an event, 2018 young black leadership summit. the president himself said on twitter he will address the arrest. blake burman on the north lawn of the white house. we'll work from there. blake, what is the latest from where you are. reporter: latest guidance we got at 11:52 the president is nine minutes away. he is here for an event, young black leadership summit as you mentioned. the president tweeted he will address this arrest at the top of his remarks. we heard the white house and president the past few days flat-out condemn as prominent democrats were targeted. the president, white house calling for civility as well. you should expect that kind of message today, along with i presume congratulate law

enforcement since this arrest. one official told me today that the full weight of the united states government was trying to figure out whoever, which person or persons might behind this you're talking about the fbi, the department of justice, the department of homeland security, united states secret service, to give you a handful of the agencies trying to track down this individual or this group. the leads ended them, ended up in the south florida area, a area which has a massive fbi presence to begin with. that very clearly paid dividend on this day. we await to hear from the president here at the white house connell, quite literally any minute. connell: blake we'll come to you after the remarks are wrapped up. the story we're following throughout the day is a selloff in the stock market. the dow jones industrial average had been down more than it is right now earlier, down 500 plus points, down 323 as we speak. the s&p 500 dipped into what is known as correction territory, 10% off its high earlier, since

come back as well. talk about some of the reasons why, we await the president, quick comments from former fbi special agent chad jenkins who is with us on the telephone now. thanks for calling in again, we appreciate it. wee been told at fox this is a man in his 50s from florida. also no connection to international terrorism. from what you know, what you've been hearing today, what is the big takeaway on this arrest? >> the takeaway, thank goodness the threat is eliminated from fbi and federal agencies working together to thwart the threat and get the individual arrested and now fbi can do a thorough investigation to find out what the motive was. got to remember, there were two packages found just this morning. so before that individual can be mirandized i would imagine to cover public safety you don't have to mirandize the individual

and tell, because of the exigent circumstances if there are other devices circulating through the mailing system. so remember that, we have to eliminate that threat completely. make sure all of them are accounted for. then go into the interrogation of the individual. connell: as chad speaks there, i should explain our split screen shows the white house east room on the right side of the screen as we await the president. the plantation, florida shot from wsvn on other side of your screen, we saw the white van that was surrounded by authorities and quickly covered in a blue tarp and now is being moved on the florida highway system out of where the arrest was made. or where the van was found is probably the best way to put it. chad, you mentioned motive. yes i'm sure there obviously will be questions asked about that by if the initial reports

are correct, someone working on his own, not connected with a terrorist group or wider organizations does motive become less important than if he had been connected to a wider organization or some sort of a plot? >> under the rule of law here in the united states. we're a nation of laws, definitely the motive plays a factor and what was motivating him to conduct this horrendous act and set terror throughout the united states, throughout our, everyone, you know, not just the political figures but it is our way of life. so i think motive does play a factor. then determining what, if it is mental health, what slew of other information led them to conduct these behaviors that are abhorrent and not of what the united states stands for as a society. connell: chad, we'll come back to you. thanks for calling in again today, we appreciate it. chad jenkins with his expertise. we have panel in the studio as the president will be speaking any minute now.

i mentioned the stock market. charlie gasparino is here. gary kaltbaum is here in person. gerri willis is here as well. you know, we were going, gary, i start with you, to talk about the macrofactors influencing the market today and there are many of them. there were earnings last night. let me start with the news of the arrest. we are down than what we were. is this knee-jerk emotion? >> big money are sellers right now. it is very tough to stop them. this is great news. we found this guy. near term you get a little blips but the big picture from me we're in bearish market. >> i made a bunch much calls before i came on to traders. this had nothing to do with the buying. connell: what did then? more technical? >> technical, oversold market. telling people to put real money to work, to attribute, catching a bombing suspect to better,

people feeling better about the markets is kind of like way out there. connell: right. >> generally markets have not traded off on terrorism stuff unless it is big-time, 9/11. so i think really there is a lot of fundamental fears in the market. if you look at the gdp report, not bad but you know, business investment was way off, wages remain lousy. connell: some of the trade issues. >> that is looking back. connell: right. >> you have to throw it out forward, if businesses are not investing despite a massive tax cut, you have some earnings problems. maybe you have a slowdown in the economy coming. connell: you're well sourced in the law enforcement community. before we talk about the it, market, we have plenty time to talk about the market, we await the president, they did move quickly, that was everybody was telling us they would be able to move quickly -- >> with the type of scrutiny, media scrutiny on this, this was a big thing. i can't believe there were reporters and personalities even

at this network that tried to downplay this. this was, think about it. people, some guy went out and tried to kill people. they were rudimentary, whatever. this was not hoax. >> not just people. two ex-presidents of the united states. connell: two former presidents at their homes. >> people around here were talking about hoaxes, that is insane. connell: now, but the point they got the guy quickly. they moved, left a treasure trove of evidence. >> i'm sure the guy, this is not the weather under ground. this guy was not one of smartest people on planet and obviously a very disturbed guy. even the best bombers leave some sort of trail right? unabomber was essentially caught at some point. connell: hopefully, this is a one-person operation. that is all indications we have. gerri you spent a lot of time on the floor. >> i saw it last night, what happened as we were leaving future fell right off the table.

connell: the earnings reports weren't horrible but sales numbers that amazon, alphabet came out with, guidance from amazon, where people started to get worked up, and we built up the reports heading into the night. this will be telling in terms how the market trades here and we were set up for a disappointment as it turned out i guess? >> part of it is whole foods. we're starting to see year on year comparisons. that was a disappointment. we'll see about christmas. in the gdp report, we saw good news on consumers, up 4%. that was a nice number to come in. consumer sentiment trending down a little bit but i wouldn't write off christmas yet. the whole world is not amazon and google. connell: right. >> those are two companies. when you look at market overall, what you find, charlie brady is saying this all week, 70% of s&p 500 companies were in correction or bear market coming into this. connell: i want to get to one reporter. make it quick, gary. we'll come back to it.

what were you going to say? >> make a small point we harp on amazon and google, international paper down 40%. wynn resorts 50, whirlpool 45%, dupont 35, blackrock 32. century aluminum 35. connell: crazy. >> that is every industry. connell: get to bryan llenas. i will squeeze bryan's report before the president comes out with latest on investigation. remember we have a just tis department news conference later on. bryan. reporter: hey, connell. yes i'm in front of the post office on 52nd between 8th and 9th avenue. a couple hours this morning at 8:15 a postal worker working in this post office noticed a suspicious package like ones seen on tv. it was addressed to former national intelligence director james clapper. they called police. police showed up. they moved the suspicious package with the potential

explosive device up to rodman's neck, in the total containment vehicle, which is the bomb vehicle we've been seeing on tv this is what we now know, the latest before the president speaks a 56-year-old white male has been arrested in plantation. he is living, he was living in aventura, florida. plantation is just west of fort lauderdale. this white male, 56 years old, was arrested prior record for making past tariffsic threats to an individual or to a group, we do not know yet. he is a former new yorker. that is significant in the sense that four of those packages, now five of those packages were delivered here in the new york city area and not just that 11th package we're talking about here at the post office. there was also another package that was stopped, that was directed to cory booker, who is the senator from new jersey. we have the suspect that's arrested. the van was covered with a blue tarp that belonged to this individual. has been moved on the highway in

florida to the fbi so they can further do tests. that van had pro-trump bumper sticks all over the van. it is believed to belong to this 56-year-old suspect. that is the latest that we have on that arrest. here in new york, it was the vigilant work of these workers here at the post office and all over the city that they are now on the lookout for these packages. just because they arrested a suspect it does not mean that there are still not more packages out there. they are telling everybody to remain vigilant, connell, as this continues. connell: bryan thanks. bryan llenas in new york. we still have gary, charlie, gerri in the studio. the president has not come out yet in the east room. there isn't any significance to that. times always get floated. we expected him half an hour or so ago. we were told as blake mentioned earlier in the most recent guidance it would be close to the top of the hour.

we do know he will speak about the arrest. we'll take at least the top of his remarks live. he said as much on twitter. couple things on investigation, get back to charlie for a second, not sure what you can add to it, gary is from the area. >> he is from north miami beach. i lived in north miami beach. my friends tell me is our high school and graduate ad year later. i do not know him. connell: we're not going with the name yet. >> "new york post." connell: we'll wait for two sources. tell me in my ear if we do have the two sources to. we do. so the name is out there with now two law enforcement sources confirming it as man6 years old, caesar sayoc. born in 1962. >> ring a bell? >> no. connell: that is from that area

chris made an interesting point. if this indeed is one single person who, you know for whatever reason did this, motive maybe doesn't matter as much that he is off the streets as opposed to -- >> you live in types feel temperature politically is rising to some crazy level. >> you think? >> we have the left, peggy noonan wrote a nice column the journal. the left talking about resistance, almost armed. you have the president of the united states, you know, extolling a lawmaker who body slammed a reporter, saying that is really good stuff. i mean, you know, adults in the

room, you would say take it down a notch, particularly the president. you know, i know i will get some tweets, you are picking on him so much. he is the president. he is the guy, he does have the bully pulpit more than maxine waters? >> you know what? i am amazed that the president and pelosi and schumer and all of them have not gotten together in a room and said enough's enough. we have 300 million people in this country, we're supposed to be doing something right and all we're doing is beating each other up and look at some of the outcomes that are coming right now. hopefully somewhere along the line they get they're supposed to be leadership of this country. seriously not showing any. >> on other hand if this is one person, this could be just one very crazy person. >> a psychopath. >> and not pelosi, not the president, nobody is responsible for -- >> psychopaths -- psychopaths are incite what they read and

temperature. psychopaths, if everything was calm they wouldn't come out. >> i don't blame any of them for a moron like this. he will go to jail for a long time. what i'm just saying is, look what is going on, look what we have to deal with on a daily basis. it is time somebody starts thinking differently. connell: another former fbi special agent tom baker called in now. we're awaiting, tom, to see what the president says about this arrest, but what we know about it, is this 56-year-old man from florida, former new yorker, has been arrested for you know, sending out, as allegation goes these suspicious packages which were far more than suspicious. they were bombs that didn't explode. what is your big, your big takeaway today, tom? >> there is several. number one, the fbi and their law enforcement partners done what they do best. they have investigated. they come up with a apprehension in a record amount of time compared to other unknown subject bombing cases we know

over the past decades. they did a really great job. connell: they did. the speed mattered, when you think about it. who knows, people brought this up today, there is still concern before he was caught the guy could have sent out more of these packages, but more days went on for obvious reasons, the risk would go up. they worked quickly. what is the most important thing getting this done quickly? >> well motive is a very important thing. there were a lot of forensics on the one hand. there were a lot of forensics, talked about on this program or others. but on the other hand back in fbi headquarters, other locals, people sitting in a room with command writing down, who had motives, the means to do this. it may still turn out, looks most likely, the most likely often the case, this was an individual, perhaps mentally deranged individual but that we cannot lose sight of the fact that behind a lot of things

today we have the russians trying to sow discord in this country and they're succeeding in doing it. they have us fighting each other. connell: right. but the thing, this goes to all these other they're are out there, we have, there is no, there is nothing that has been out there that would lead us down that road, yet? there is no evidence of it? >> not exactly. just one week ago the fbi and the deputy attorney general issued a statement on the charging of a woman, a russian woman, who was engaged in all kinds of disruptive, disinformation campaigns and they state clearly in here, her motivation was not to favor one party or the other. it was to sow discord and distrust in our political system. connell: i understand all that. that and earth indictments came out of the special counsel's office, this guy, with this one individual, there is nothing leads us from a to b. we tried to avoid all of this

stuff, whether it is our theories or this one. we know what we know, right? >> obvious thing is, the most obvious is going it turn out he is one deranged individual. connell: right. >> but what we can't lose sight of the fact that this is classic russian thing, sent people in england, ukraine, other people did similar things. connell: what were you saying, charlie? >> i would be really careful, attributing geopolitical sort of mischief on the part of russians to this guy. >> or a guy in a van in north miami beach. >> it is also possible. connell: a, anything is possible. not forensic to what we know. >> if you want to say russians, does russian disinformation on twitter and facebook, does that have any impact on forcing a guy to do something crazy? i guess maybe you could make a theoretical case -- >> this sounds like it is just some nut.

connell: that is what it sounds like. >> charlie, there is other approaches to it too. the fact that in all these bombings, attempted bombings in all these locations no bomb went off. that is what russians would want. they wouldn't want to commit an act of war. >> do russians want to get caught. >> no, they don't want to get caught. connell: we're going out on a place, wrap for two reince. i understand what you're saying. i have to wrap for a couple reasons. >> don't dismiss it. connell: we'll not really dismiss anything. i'm trying to focus what we know right now. >> what we know is they did an excellent -- connell: terrific job, they got him very, very quickly. we're going to hear from the president. i would say in about one minute, about you know, probably about that, we got two-minute warning while charlie was speaking. about one minute from now we'll hear from the president. gives me a recap what we know right now, a 5-year-old man living in florida, has ties to new york. apparently lived in new york at one time, 56-year-old named

caesar sayoc, in connection with all packages sent around the country. the van was identified earlier and had pro-trump stickers for lack of a better term, decals, what have you, all over the van. was quickly covered up by law enforcement authorities in blue tarp. it is now being moved, that is earlier picture, on the highway in florida to a different location as that part of the investigation continues. east room of the white house president said on a twitter he will speak about this arrest. we will hear him speak live about this arrest. as we wait for him to walk out, the stock market, the dow is don'tly down, i use the word only, down 500 plus point earlier, by 222 points now, once we get through the president's remarks and talk more about this arrest we can get into some of the reasons why weave seen this, intraday chart bounce back in the markets and whether or not we kind of flushed out all the news from last night and gotten

some levels where buyers are coming back. how are we going to close, all that kind of thing. quick word, gary or before, president walks out in two minute time frame, i wonder how we close with markets and significance of that is on friday? >> i have no clue how we will close. pretty much most important levels have been taken out. when you get stretched and extended either to upside or downside you will get violent moves you're up 500 or finish flat. down 500 and flynn ish up 100. connell: you think it is significant if we traded higher into close? >> that tells you for the near term you have a washout. i got to tell i think last couple weeks you had day like that, next day we were down 600. i wouldn't take too much -- major trend, big picture is negative right now. it will not change so quickly. >> globally so good. >> worse. much worse globally. connell: we have to sell into

that. we've been guess of bunch. >> we're playing catch up, what is going on not only globally but what internally in our market. it's a who's of industry down 50% while the dow and s&p were hanging up there. finally first week of october they came after everything. thus the weakness. >> you talk to traders. nobody is surprised by the selloff? >> really. >> they wanted to see it come. the people i'm talking to are not surprised. >> most i know are in a bar drinking heavily right now. connell: probably. >> their attention was focused yesterday, that is for sure, the day he have -- before. they wanted vuong performance yesterday and we had that happen but here we are to the downside. connell: gdp report, charlie can talk about that a little later, term 3 1/2%, strong number. >> i thought it would be stronger. connell: the drag i thought from

trade was at least worst talking about, when you look at net exports of goods and services the drag from that particular component was 1.78%. >> also remember -- connell: if it wasn't for that, if trade was like neutral or platinum per you could have 5% plus gdp right now. >> that is what scares me about this report. backward looking as we know. >> was. >> was is the word. trend extrapolate going forward, pretty bad business investment. that blew me away. lack of wage growth, decent wage growth. you have very low unemployment, lack of decent wage growth. that tells you something. connell: wonder what the fed does. >> they would cut, they would not cut, they would hold if trump didn't jawbone them. >> 1/3 of s&p companies that have reported in the conference calls are mentioning tariffs. >> yeah. >> i'm not talking about ones using it as excuse, they are really bringing it up.

specific companies gave specific answers. we know about harley, 3m, united technology, so different industry is getting affected. higher costs because of tariffs affect earnings which affect margins and affect stock prices. connell: other thing currency adjustment. we talked about the last few days. the strong dollar comes up in a lot of these conference calls. >> it is true. a lot of negatives out there as i said before. consumer spending in the gdp report, 4% growth coming from consumers which bodes well for christmas which will be important, for sales there. everybody is worried about amazon. revenue wasn't what we expected but i have to tell you look at the earnings, it is funny one of those cases where the same set of facts read postively and negatively depending on sentiment generally. >> amazon, overloved, overleveraged, basically priced to perfection, you come out with guidance was markedly lower than

expectations this is what we're seeing. amazon is down 20% from the highs. up 80% from last year. it is still way up there. connell: are you seeing this as phase, nine 1/2 year bull market we needed something like this, we're closer to the end than to the beginning of a much larger phase. >> i think a lot of areas topped out for the bull market, a lot of areas. i'm not so sure about the main four indices right now. they're down, what, 10, 11, 12%. that is, the jury is still out. >> the tariff situation is worth keeping an eye on. i've been looking at ford, some of the auto motives, covering tesla so much, they're not doing so well. why are they not doing so well? commodity prices and having a harder time overseas. connell: ford, i had the ceo on other night, add up all the components, billion dollar hit. cfo told me that. about a billion dollar hit when you add up all the components,

despite that they had a good number. i'm sorry, gerri. >> they're trying to transition out of sedans to what consumers love. they're behind the curve. >> bottom line costs are going up dramatically and impacting bottom line. you can extrapolate that to other industries. here is what we never had before, massive tax increase and anti-growth trade policy. i don't know who will win out. >> massive tax decrease. >> massive tax decrease. massive supplyside push, deflating, detracking economy. it doesn't make sense. >> best news i can give you, powell he said, investors know we have their back. trump is probably on the phone to him right now, if you raise rates, we're bringing bernanke back or something like that.

connell: not on the phone -- >> he has to raise rates. connell: what is effect. gary, take it first, charlie brought it up and president's comments and tweets, jawboning on federal reserve? there is had argument that president needs to hike rates that he needs independence. >> they're not listening to him. if a market that is fragile, the fed raises rates and president tweets how po'd he is about that. could stoke confusion, in a fragile market, sell first, ask questions later. that is something to watch closely in november, december. i guess they will not raise in november. but december will be quite -- >> i think there was stuff in this report he could have justified not raising rates. >> i don't think they're going to. >> he will. >> i don't think they are in december. connell: one more voice in this. we still don't have the

president, for whatever reason to speak about this arrest in florida of the mail bombing. we were told any minute for president number of minutes ago, the other point bring in jonas max ferris with gary and charlie. talking about the market, well off the lows today. interesting how it closes, but can you pick up on the federal reserve conversation and what you think of the effect of the president's kind of pressuring of the fed will be, given, what we found out on gdp this morning and everything else? >> there are a lot of straws, all guests were talking about weighing on camel and interest rate and rate levels are number one thing here. what triggered the whole panic, 10 year went through 3.25% fast. that rate of change was scaring people. trump started to weigh in on the fed. investors are on his side. they think federal reserve might

be raising rates too high. this economy is still very leveraged. we don't really know what happened to all the loans refinanced. all the buildings propped up because interest rates got lower and lower. how quickly rates go up ahead of rents? we're seeing stress in the real estate market. every time the 10-year cops back off that level, the market recovers, that sort of happened this week, you saw a lot of zigzaging, what is turning around the stock market, interest rates got back 3% on 10-year. i think is very relevant ratio. tech companies are borrowing money. uber is borrowing money. how much are earnings growth is from borrowing, tesla, convertible bond offerings that, rates go up a lot, are they going to be able to keep growing? which is other problem with the market, top line revenue growth of these tech companies, have we reached, are they so big growing slow like walmart.

connell: charles payne was talking about this morning the chart it from october 3rd, jonas, comments were made. full screen, that van, we're going back and forth between the two breaking stories, we're waiting for the president to speak about the arrest made of a 56-year-old bombing suspect in state of florida. the van covered in blue tarp has been moved, moved live from a parking lot, i believe located in the town of plantation, florida, being taken to another facility as the investigation continues. back to all of the comments in a moment. the president of the united states just entered the east room. this event officially is the 2018 young black leadership summit. the president is greeted by those there for this event, cell phones up, everything else. we're told he will speak about the arrest at the top of his remarks. let's go live to the white house. here is the president. [cheering] >> thank you very much. what a group.

what a group. [cheering] what a great honor to have you here. it's a great, great honor to have you here in the white house. thank you very. [shouting] >> i call this, as you know, this is young black leadership and it is the summit and to have you here is truly, my privilege and we're going to have a lot of fun. we're going to talk. we're going to meet. [cheering] before i do, i would like to begin, and you are leaders, you're real leaders. i would like to begin today's remarks providing an update on the packages and devices that have been mailed to high-profile figures throughout our country and a media organization. i am fleeced to inform -- pleased to inform you, that law

enforcement has apprehended the suspect and taken him into custody. [cheering] incredible job by law enforcement. we have carried out a far-reaching federal, state, local investigation, to find the person or persons responsible for these events. these terrorizing acts are despicable and have no place in our country. no place. i've instructed authorities to spare no resource or expense in finding those responsible and bringing them to swift and certain justice. [applause] we will prosecute them, him, her, whoever it may be to the fullest extent of the law. [cheering] we must never allow political

violence to take root in america. cannot let it happen. and i'm committed to doing everything in my power as president to stop it. and to stop it now. stop it now. [applause] i have just concluded with a briefing with the department of justice following the apprehension of the suspect. i want to applied the fbi, secret service, the department of justice, the u.s. attorney's office for the southern district of new york, the nypd, and all law enforcement throughout the entire country, incredible partners, these people have worked so hard, to have done it so quickly. it is looking like, you're looking, it is a needle in a haystack how do you do this so quickly? they have done an incredible, incredible job. i want to congratulate them. [cheers and applause] but the bottom line is that americans must unify, we must

show the world that we have united together in peace and love and harmony as fellow american citizens. there is no country like our country, and every day we are showing the world just how truly great we are. so you are really very special people. i wanted to say that before our little talk. and i appreciate the time you've given me and, boy, one day, one of you is going to be standing, could be three or four of you actually but you're going to be standing right here. [cheering] you're going to be standing right here. i have no doubt, i have no doubt. who in this room, who in this room wants to be president some day? [cheering] connell: president of the united states in the east room of the white house making his first comments since a man was arrested in the state of florida connected we're told to the packages that had been mailed to

as the president put it prominent figures around the country. that included the home of two former presidents, obama and clinton. blake burman on the north lawn with a recap what is going on at the white house today as this arrest has been made in florida. blake? reporter: as we expected there from president trump in the east room the president congratulating law enforcement, thanking law enforcement for their efforts. he described it as needle and haystack, how quickly they arrested suspect. calling that americans must unify and talked about coming together in peace and in harmony. one thing i found interesting, president, referred to apprehend the suspect, he did so twice, potentially there just might be one designed this incident but the president also said at one point, they will prosecute him

them, her, to the fullest extent of the law, leaving open the possibility that this investigation might not be over. i don't want to jump to that point at this point. we should talk about what we know at this point. one person has been apprehended, taken into custody by fbi in the south florida area. the president was 45 minutes or so late to this event. not unusual for this president or any president to show up late to an event. i suspect, connell, one of the reasons why the president was getting a full download on what was taking place in the south florida area. connell: he talked about the department of justice briefing. we read into that ran into the timing of this event. like you, blake, i picked out that comment, prosecute him, her, whoever it may be to the fullest extent of the law. our reporting, from rick leventhal, everyone from

fox news, every indication so far it is one guy, one person. that is all we know. reporter: so far at least. it has been a fairly long investigation in the sense trying to get to this point. lawlaw enforcement will tell you when you get to this point you have to put all the tentacles might have helped this person whether knowingly or unknowingly. that is the phase the law enforcement is going through. connell: blake burman from the white house. robert strang joins us from new york, former terrorist tack force co-chair. thank you for patience watching this story develop. pick up from the blake's questions we don't have answered following from the president's comments. >> when you make an arrest like this, you have to quickly go out, you have to take a look at

phones, any personal data, do complete search warrant, take all that information and allocate all the resources in the field, develop, if a conspiracy exists who else was involved. that is exactly what is going on now. remember, this is one of the biggest investigations in the country over the past two years. the past two days so much is going on, every state, local, federal law enforcement age sy is working together. now those efforts are going into this defendant what is happening there. connell: you caught yourself, two years, two days, brings up a larger point how quickly law enforcement was able to move. we were told but number of experts that would be the case. i guess the guy left behind so much evidence, right? sometimes easier than it is. they did a great job. what do you think was the key? >> the dna, that is helping law enforcement in tremendous way. when commissioner o'neill said he was confident we would get

this individual, i knew they were tracking it closely. dna is a key to lot of success in law enforcement. connell: that vehicle, we're looking at our screen, it's a white van, earlier pictures of it showed signs all over, stickers, decals, that would be supportive of president trump. what about that idea of motive? how important is it? i brought this up a few times during the show today, the idea what motivated this guy, especially if it is one person is less important because it is one person or something we want to look very, very closely at? >> you know, connell, i think from the, from security perspective, from law enforcement perspective, motive is a key issue, right? when you're working with the secret service or fbi, even in private security, we share information back and forth. you try to narrow it down through intelligence and information you gathered over time through current information. so motive is part of police

investigation. and here, you know, in addition to motive, we have a lot of evidence. we have forensics on the actual device itself. we have the stamps and envelopes was very clear. so the police were really focusing in on what they had in hand on all of these different devices and envelopes, dna. you need a motive. start to collect your intelligence from all the state and local and federal agencies. this is what happens, a success story like this. we don't know yet, whether this individual, i'm sure as we speak, they're doing search warrants and, usually in a case like this, we don't know the details of the arrest, usually in a case like this, a search warrant is being executed, they're allocating all their resources to all the electronic data. we'll find out soon whether or not this was an individual or group of people. connell: pipe bombs mailed to prominent officials or pipe bomb-like devices that never

exploded, robert, which is another thing many officials pointed out last couple days. there were divergent views what meaning of this was if anything. what is yours? >> new york city, john miller said yesterday they were treating it, who is the head of terrorism in new york city, they were treating this as active explosives. these are things that could detonate. this is very serious matter. they wanted to be certain, they didn't know how many other envelopes are out around the country targeting certain individuals. that is one of the reasons they put this message out, if you do have an envelope like this with stamps in the corner, fields like this, certainly you have to call the police because it could detonate. they're for real. connell: anything we learned, do you think from this process can be applied in the future after we went through the horror of 9/11 for example, which obviously isn't comparable but it changed the way we go into a

building in a big city, changed the way we travel, a scare like this changes the way mail should be handled or screened? former presidents have their mail screened off site, not all of us have that as an option. is there anything to be done differently we think, that we learned from this scare as it was? >> yes. one of the main things that we learned is you have to always be prepared for the unexpected. sometimes it can be a simple thing. we see more vehicles involved in attacks today. now we're seeing u.s. postal service. now, so, we may be very sophisticated how we think about the next attack on the united states t could be something very simple. connell: that's right. >> the intelligence information, the information that secret service and fbi gather day-to-day to put these kinds of indexes together with potential suspects, that is proven here to be very valuable. connell: right.

this person was known as we understand it to law enforcement. that i'm sure helped in the investigation. robert, thanks for your expert tease. we appreciate you coming on. we'll talk to you again, robert strang. as we've been reporting on this 56-year-old man from florida, caesar sayoc arrested in connection with packages around the country, we're watching stock market quite a story in of itself. remember we were down 500 points on the dow today? we're down only 153. as we get closer to the 1:00 our where we get to before 4:00 this afternoon. there is more in a moment.

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connell: so much breaking news. this has been an interesting day in the market, to say the least. look at nasdaq now coming all the way back. if you were with us earlier, these huge declines after amazon and alphabet earnings, boy, we have had some claw back.

let's go to the exchange to talk about the day a little bit more, nicole petallides is there for us with more. hey, nicole. >> connell, the traders rejoice when they see the volatility. i know regular investors have a hard time with volatility and swings but the traders think it is healthy because they can pick up stocks they like, at better, more attractive levels. that being said we had had incredibly tough month of october. nasdaq is down 1% here, on pace for the worst month of november 2018. you can see the dow, s&p which also have been hit, off the lows of the day. want to look at some tech stocks. we had a slew of earnings in this area. amazon, alphabet were hit hard after misses here. amazon in particular down 6 1/2%. microsoft was a win. it is higher and goes to the number two spot in market cap value, getting close to trillion dollar mark, surpasses amazon

facebook to the downside. those "fang" stocks, i have to note over the last since 2014 as a group annually, brought in 37% gains. this pullback here, what are traders saying? moving it more defensive. calling it tough environment, lack of leadership, moving to cash, other things. the fear is coming back, but they're buying on the dips. another told me watch levels of 2620 on s&p 500, that in fact held. back to you. connell: s&p correction earlier. now we really clawed back. see how we close. nicole, thank you very much. go to president trump one more time on the other breaking story. this arrest made in florida as he moments ago and you saw it live talked about the suspect who had been arrested among other things saying this. >> i have instructed authorities to spare no resource or expense in finding those responsible and bringing them to swift and

certain justice. [cheering] we will prosecute them, him, her, whoever it may be to the fullest extent of the law. connell: go to brad blakeman on this, former bush 43 deputy assistance, do you read into that particular comment at all, brad, he said himself there is one suspect, all of our reporting indicate one suspect, a 56-year-old man in florida originally from new york but what about the comment the way he phrased things? >> the president said fourth, if investigation includes more than one person involved, that person responsible, aided, abetted would be brought to justice. the fact our law enforcement worked brilliantly, postal service, secret service, fbi, local justice in florida, the

system worked and coordinated beautifully. if the person is a suspect he has been taken off the street in record time. the good news is, nobody has been hurt. connell: sometimes the most obvious story gets lost in the weeds here, we start talking about theories and motivations and what else might be out there and what may have happened but, you're right, did happen is. allegations, matter of few days. all the law enforcement agencies to the together and found him and he is of the streets. anymore new information that changes this, this story, this part of this story, is over. we can put it behind us, let's hope, right? >> unless people try to politicize it. they're starting with type of stickers on his car. i can assure you any political motivation this man might have had or others or suspected does

not speak for our country. does not speak for any particular group in our country. >> even motivation on the side, it looks like now versus the other side, to me, i said this a number of types this hour, it would matter more morning, chris wallace said would matter more if he connected with another group and somehow working with someone. if that is fine, that would be investigation you have to pursue, if he is not, just one guy, just one crazy person off the street. >> exactly. our nation has to hang together because an attack on one is an attack on all, regardless of political persuasion. connell: the president did have a tweet this morning, i don't know before or after the arrest was known to him or the briefing had been given to him, it was a political tweet, when he talked about the turnout at the polls in the midterms and connected it to this particular investigation saying republicans are doing so

well in the early voting at the polls, and now this quote, bomb stuff. i say quote, the word bomb was in quotes. this bomb stuff happens and momentum greatly slows, news, not talking politics. very unfortunate and urged republicans to get out and vote. what was your impression of that? >> i think the president's right. we have, we cannot be swayed, cowered, we cannot be influenced by the act of one person or a group of people to try to influence our election, whether it is internal or external. the president's right. we have to now double down and make sure our democracy works for everyone. nobody should be afraid to vote. nobody should be influenced to vote a certain way. i think that was the president's message. connell: you took that as, hey, let's move beyond this rather than the president sort of downplaying it by putting the word bomb in quotes, you didn't think he was doing that? >> right. what the president was saying was at least nobody was hurt. none of these devices went off

to to. we're very fortunate for that. i think that is what the president was getting at. connell: always good to get your take on things. brad blakeman, with us. as we're talking, really fascinating to watch the stock market trade today, people watching it earlier, i don't know where the bottom is. stuart's show, down 400, 500, you said this might be quote, unquote capitulation people talk about you will at time, but then we started to claw our way back. some buyers came back into the market and the chart you see on the screen shows the dow coming all the way back from leaves more than 500 points. the s&p 500 is a broader gauge of the market. that is what people were watching when it broke through a correction level. down 10% from a recent high, when it was down over 70 points on the average. now it is down 22 points. if it closes 67 or more points lower it would be in the

correction territory. at moment it escaped that, what does that all mean, how are people interpreting last nights earnings and this morning's economic reports we have much more when we come back, "cavuto: coast to coast." on a busy, busy friday. we're back in a moment. worse. 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 back up and running, and we opened the next day.

connell: we continue to cover the breaking news as we move into hour number two. i'm connell mcshane filling in for neil. we heard from the president in

our last hour, hour number one, saying that the plan is to prosecute the suspect or suspects that were behind the packages that were mailed around the country to the fullest extent of the law, but the president and our reporting making clear that as of now, we have identified one suspect. a 56-year-old male named cesar sayoc arrested earlier today in the state of florida. at this hour, we are essentially awaiting a couple of things. we will have more on this investigation, we are awaiting a justice department news conference, and we will continue to follow this fascinating trade in the stock market. we talked about it all day, up and down. looked like it was going to be just a terrible, terrible day after last night's earnings. all the sentiment that's been out there. the dow, after being down more than 500 points, at this hour, the 1:00 hour eastern time, is down 140. more on that in a moment. first to blake burman on the north lawn of the white house. we heard from the president. now we will hear from the department of justice, right? reporter: there will be a news conference from the department

of justice in the 2:00 hour, so maybe by then we should get more details on not only this individual, but potentially what led them to him and what might lead them from here on out as to what they are looking for, maybe if, a big if, they are looking for anyone else, et cetera. but we could get more information from the department of justice in about an hour and a half or so from now. we did hear from the president in the last hour here, connell. coincidentally the president was scheduled to speak already in the east room for an event that is ongoing here at the white house, and he topped his remarks by thanking law enforcement for the speed in which they were able to apprehend this individual. the president saying essentially it was kind of like a needle in a haystack. and the president also went on to preach unity. watch here. >> we've carried out a far-reaching federal, state and local investigation to find the person or persons responsible for these events. these terrorizing acts are despicable and have no place in

our country. reporter: the president also saying at one point the bottom line is americans must unify and we must show the world that we are united together. it remains to be seen, though, connell, where we go from here as it relates to political unity, especially with 11 days to go until the midterms. keep in mind, this is a president who just earlier this month cheered on a congressman who was accused and convicted of or at least copped a plea deal of assaulting a reporter. the president earlier this month cheered on the congressman for doing that and when he was asked the very next day if he regretted that, he did not say that he did. and then on the other side of the coin, we have seen democrats be criticized, hillary clinton, eric holder, just to name a couple, for things that they have said that were not unifying at all. where we go from here remains to be seen. connell: yeah. to put it mildly, you're right about that.

blake burman at the white house. we do have, as the breaking news continues to come in to us, the mug shot of this suspect. there he is. 56-year-old cesar sayoc, a resident of florida, who had lived for some time in the state of new york as well. that is the mug shot of the suspect that has just been released by authorities. fbi and counter terrorism official terry church dey joinss with more perspective, coming to us from boise, idaho. correct me if i'm wrong, but you were involved in the unabomber investigation, is that correct, years and years ago, so what have you taken away given your experience of this, from this particular investigation? >> well, thanks, connell. i'm very proud of all the people that have been working night and day since all of this began, and as i look at it, and think about it, it looks to me like it's going to end up, we will find out in about an hour or whenever the doj tells us, looks to me like what usually happens has

happened here, that kind of a combination of science and shoe leather come together, and they have been collecting a lot of information, doing everything as they should and everything right the last few days, then you get that big break. it could be in the form of science, it could be in the form of a dna report from the fbi lab. it could be a person calling, following the news and knowing something or this guy might have said something to them, or it could be the postal inspection service. we don't talk much about them, and they don't have a big glaring presence in the news but let me tell you, they are tremendously powerful and competent agency when it comes to tracking down all kinds of things about the mail and where these kinds of bombs could be placed in the mail stream. one of the things i will never forget about the unabomber task force is the relationships we had with the postal inspection service, the atf, and you see all the skill levels of all these different agencies. when you combine them and you put them together, it's pretty

hard to stay out there long and stay unidentified when you are a guy that's committed a crime. connell: really interesting. give me an example of how that would work, because you know, you have the president using, for example, used the phrase needle in a haystack. however, many experts we had on this week have told us this guy left behind, i keep using or keep hearing the phrase treasure trove in terms of evidence. so how are the dots connected, especially with the use of the postal inspection service you talked about? where do they start, how do they connect those dots, in a general sense, obviously, not knowing all the details of how they worked in this particular case? frmen >> sure. the postal service can tell a great deal from the package just from looking at the front of it. they can tell you probably where it might have originated. they will help you trace back to where it definitely was placed in the mail stream. they can look at different, i won't get into specifics but they can look at different things on the envelope. by the time you are all done, they can give you not only where

it was mailed, but just about to the hour where it was placed in the mail stream. what you do then is go back and find witnesses, find people who handled the package. it's gotten better. during unabomb we didn't have cameras everywhere. we didn't even have a camera system invented that you could put outside where it would be protected from the weather. now there are cameras everywhere, so when you are an investigator and you are looking back and trying to recreate all of these things, particularly on package bombs, once you find the origin, you stand in the middle of the street and look around and you will probably find five cameras. people cannot forever cover their tracks and they cannot, even though we are talking about these things, people commit these crimes just cannot cover everything conceivably when they try to hide what they're doing or conceal what they're doing. connell: great work by those law enforcement officials involved in this, and you're right about the cameras. i'm sure we will hear more about that, or i suspect we will, in this department of justice news conference later on this

afternoon. terry, thank you for coming on. >> you're welcome. connell: boy, we were talking earlier about a day on wall street that looked like it might be one of those scary days and who knows. i don't want to speak too soon. we haven't closed the market for the day. how it will end up. jack mcintyre is with us and veronica dagger from "the journal" and liz claman. it's a big market day if we get liz claman on before we close it up at 3:00. you are paying attention to this story or something else today and you say the dow is down 88. >> i think the bulls' hooves are bleeding after trying to catch up with the bears. they look like they are about to overtake them. i think that that is certainly indicative of what you have just been talking about, the news flow, the situation with the bomber. it appears they obviously may have somebody that they really feel could have been part of this. that takes out one major question mark. the markets hate uncertainty, you guys know that. but on top of it, you really have to ask yourself has tech suddenly gone to hell in a hand

basket? absolutely not. tech has been dominant. okay, so amazon and google had a tough earnings quarter. microsoft the day before looked really strong. so you cannot just sit there and judge from one thing. that said, you stretch out the week and it's been very volatile. connell: to put it mildly. what a week. jack, what do you think of this comeback, though? these buyers that have come into this market and is there any kind of message that we should be receiving? >> it's not surprising. you made a lot of money if you have been patient waiting for pullbacks in equities, these kind of corrections over the last ten years. i think we are going to see more volatile markets. it makes sense. we had a relief rally because the uncertainty with the arrest of the bombing suspect, that's a good thing. but there's a lot of headwinds out there. i'm going to -- i think we will see a lot of volatility, the market will churn without having any big kind of directional move. connell: we were talking about it last hour. gasparino was in here and we were talking about that idea, kind of assigning any kind of market movement to, you know, a

completely outside the markets event like this arrest. i understand there's emotion involved, there's a knee-jerk reaction. i wonder also, veronica, if it's just as simple as some levels were breached appear we were able to hold some and bounce off them. so much of this is algorithmic and computer based. what do you think is going on? >> there are so many different factors going on. if you look at some of the risk out there, i think tariffs are weighing or the risk of future tariffs are actually weighing on corporate earnings. >> we have seen that. the companies said as much. >> we have seen that and also see it in the business investment numbers. companies aren't investing as much as we expected them to, so there's some pressure coming from that. consumers are still feeling really good. sentiment is still up. not as good as it has been in the past. they are still spending but we saw in the amazon numbers some future predictions of maybe that revenue isn't going to be as strong as some of the analysts have expected for fourth quarter. there's concerns, too, how strong is this consumer in the long run going into 2019. connell: that's the thing.

we always talk about the stock market as kind of looking ahead for us and being able to see the future, maybe before some of the economic trends do, but we know we are in a strong domestic economy. the gdp number kind of proved it this morning. to veronica's point, i think i brought this up earlier, trade was a drag. 1.78 percentage points so you can make an argument great number, 3.5%, but if it wasn't for trade, easy to say, but if it wasn't for these trade policies that are in place right now, maybe we are talking 5%. >> who among us has looked at a cake and said oh, that looks good, then you slice it and say i don't like chocolate. i like yellow cake. you have to dig a little bit deeper. what was in this gdp number was business investment pulled back. was that a canary in a coal mine? who knows. when you're talking about a ferrari, which this economy has certainly turned into, and you are gunning the engine, the gas tank runs out eventually and you have to refill it. at some point it will peter out

a little bit, and that's maybe what we're seeing. the question becomes is the cloud we saw this morning that blocked the sun just a single cloud in a blue skies market, or is it a sign of a very serious storm that is on the horizon that will blacken out a lot of the sky. connell: pick up on that. >> i was going to say, right, growth has probably slowed down. i think we are at short peak growth. that was the last quarter. then you have to bring into play the fed, because the fed has been pretty hawkish and that is kind of upsetting the market. any time you have growth or slowdown and the fed is sounding more hawkish you will get volatility. connell: there might be a bit, we have seen interest rates kind of back up in the market-based rates todayen and maybe that mit be one of the reasons the buyers came back. we bounced off of the lows. this idea that i wonder what the fed will do with the information they received this morning. everybody keeps bringing up the fact the president has been so critical of the fed and will that influence their decision

but what about the data we had this morning? >> so gdp is backwards-looking. so we know we have had this good growth environment. i don't think the gdp report is going to derail the fed from their tightening. the one point i did like in the gdp report was inflation is still tame. you need to shift towards, i hate to say it because it's goldilocks environment, growth without inflation because the heed if is going to pull back, they will go maybe twice next year and not the three times they are telling us. that would be a great environment. connell: do you buy into the fact that maybe all of that is true and that the fed in ordinary times would do exactly that, but i don't think this is a conspiracy theory as much as a theory of hey, we are human beings like everybody else, and we have to prove our independence and keep raising interest rates because of the president's criticism of the federal reserve? is that a factor? >> if that's the motivation for making decisions -- connell: it's not good.

>> answering something the president said in an article or on twitter, yeah, that's not the most responsible way of proceeding. i think they are looking at things on a broader perspective, but again, inflation isn't ticking up like we would expect it to, and so i think that's going to keep them in check in terms of what they're going to do. i think from an investor's point of view, looking at this whole week in general, it's been very, very difficult. if you are looking at your 401(k), one thing i suggest to do, stop looking. every day if you are opening that account balance, you will get sick so stop. >> same with the 529 college plans. we know our viewers look at their pensions and 401(k)s and of course, their portfolios but the fact is, we got great durable goods numbers. these are big ticket items that last anywhere from three to five or hopefully beyond years, and the data still look really good. the question is, yes, there are some trades that are peaking at the moment and you know, you've

got people like mike novogratz -- connell: i wanted to give you a chance to talk about your show today. a big name in the hedge fund world from fortress and a lot of people associated with the world of bitcoin will talk about the show. >> and novogratz is a guy the market listens to. i just talked to him on the phone, he said liz, we have to talk about the hot trades that have been hot and are peaking but what do they shift into? there's always a trade. you know that from all the market time. connell: i just wonder, would we almost rather see everything get flushed out one time and get it over with, or you like the way the market's acting here which is to your point earlier, that it will remain volatile if we see a day like this, we're not through whatever this is yet. >> no, i think in aggregate, the u.s. market is catching up to the volatility we see in emerging markets earlier this

year. i would rather invest in equities that have already priced in a lot of negative news. i think the u.s. equity market is still pricing a little too much positive news. connell: fair enough. >> does it surprise you the green on the screen is in the home builders? that's why i'm excited about a a asha hovnanian. why is that? >> we try to promote that as much as possible. we need a good lead-in at 4:00. >> see you at 4:00. connell: thank you for coming on. we will move on, on a breaking news friday, getting a first look at the mail bomb suspect, ces cesar sayoc. more in a moment.

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so that's 2:30 eastern time. former nypd lieutenant is on the phone with us right now. thank you, sir, for coming on. what do you think we still would like to know there when this doj event begins in terms of this suspect? what are the big questions out there for you? >> well, thanks for having me on. what we really want to look for, we want to look at the subject's cell phone records and we also have to take into consideration, although we have a suspect in custody, that doesn't mean we have more than one suspect. this is still an active and live investigation. there can still be packages in flight. therefore, it's important that the public maintain a level of vigilance moving forward because we can still have more packages prevalent in this society. what the doj and the local police are going to look at is several things. the first as i mentioned, they will get up on his cell phone. in addition to that, they will go on to his computer.

they will look to map out what his movements have been over the last 30 days, and that's going to give us a better assessment as to what's going to happen moving forward. i mean, there's a good chance that the individual we have in custody could be working in concert with other individuals. we don't know. oftentimes when we have these types of instances, one of the first things that the suspect will do is lawyer up. not fulfill his miranda obligations, not answer any questions. therefore, this is like a steeplechase to cut this off at the pass as quick as possible. i think law enforcement has done a valiant effort in taking this person in. connell: they moved very quickly to do so. how quickly can they move on that next stage you described, which is electronic, essentially? you're right, that's important to get ahold of cell phone records, see who he's texting, see who especiallihe's calling the computer records, maybe

e-mails or anything that's on his computer, the hard drive. has that slowed down in terms of warrants and whathave you or can they move pretty quickly on that, do you think? >> well, under normal circumstances, the fourth amendment allows, requires a warrant to be -- to come into play, search warrant, so to speak. however, the emergency exception applies. with the emergency exception, law enforcement is going to have the capability to go directly into his records and get all of the information that they're looking for. so the emergency exception is what we are going to apply, so the warrants are something that go out the window at this point because this is clearly a case of saving lives or public safety itself. connell: to that point, you are looking for what? looking to see if any other packages had been planned or maybe would be mailed in the future, and who he may or may not have coordinated with, because so far we don't have any

information that he acted with anyone other than himself. i guess that's the most important question? >> absolutely. co-conspirators are germane. it doesn't appear we have any at this point but in addition to that, like i mentioned earlier, the packages that are in flight. we also want to look at his credit card information. what did he order. a lot of these, when we look at a lot of these pipe bombs that have been constructed earlier, we see pvc and we see black powder, meaning gun powder, so to speak. we want to see where he was acquiring these materials. they have taken his van into custody but we want to look at the staging facility, where these items were constructed, and that's going to be a tell-tale sign of evidence as to how many of these have been built. i believe so far, 12 have been built out. but we don't know if there are more than that. but his credit card statements

are going to prove to be a very germane component moving forward in the investigation. connell: great to have your experience. thank you very much for coming on today. we truly appreciate it. darren porcher, former nypd lieutenant. the nypd very involved in this over the last few days. back to our other breaking story of the day, the stock market selloff and rebound from that selloff. the nasdaq is what we are watching most closely. back in a moment. vo: old and even inaccurate search results can

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connell: breaking news related to the stock market now. we have been going back and forth between two big breaking stories, the florida arrest and the comeback, as it is, the dow jones industrial average from down more than 500 to down 148. a more global view of things, though, remember it's still been a brutal week. technology stocks here, but for stocks in general around the world, the asia markets for the week, the nikkei 225 in japan, off 6% this week. hong kong's markets off three.

south korean markets down six as well. in china, this week, only down two but the chinese market, bottom of the screen, has really been getting hammered in the midst of this trade dispute. let's bring in scott martin, get his take on all things market. good to see you, my friend. maybe you have some sort of big picture message to share with us. what a week. >> yeah. don't call it a comeback. i have been here for years. one thing i will tell you, i definitely did pick the wrong week to quit drinking, because this is definitely not the week. here's the thing. we will come back today. i think this market will probably turn green this afternoon. the volume is drying up a little bit. some of the selling volume was really, really heavy this morning. there was a little bit of a washout. we talked about this, not to name drop, but on "varney" earlier about how some of these days are just fraught with just

the absolute indiscriminate selling, for investors, institutions and the like. when you have these what i like to call barf bottoms, they do rocket back fast. connell: is that what that was? that was kind of the debate. is that what that was this morning? because you can make the argument that's good, we got it out of our system and now we can come back, or would you rather see that all the way into, say, a close on friday? i don't know. i'm just asking. what would be the best way in terms of the healthiest way for the market to flush all this out? >> yeah, usually those are done intraday because at the close, usually there's that rush to get the sellers in that sometimes frankly don't all get filled and they bleed over into monday or the next day. getting it when we did, today, was very good. now, will it last forever or for the next three weeks? who knows but it could last for a couple days. i think today was an interesting setup, too, because you had good data and bad data mixed in. you had the amazon and google data which wasn't that great but

not terrible, and then the gdp data which you talked about with your previous panel which was absolutely right, which was good data and growth numbers amongst very little inflation concerns. so there's a lot to be happy about here and the fact the market got down to these levels i think finally found some buyers and i think it will at least have staying power for awhile. connell: one thing you talked about, i don't think with that panel but we may have mentioned it earlier, the effect, kind of the big picture with companies, we mentioned trade and have heard from a number of companies that the trade war especially with china, is having an impact, certainly having an impact on how they see the future. we didn't talk as much there a few minutes ago about currencies which kind of leads into this discussion about the federal reserve, how it handles interest rates, what the effect is on our u.s. dollar and how that kind of correlates to how much money companies are making around the world. where do you think we go from here? that's one thing in addition to trade we have heard on a lot of these conference calls, we are

getting hit by this dollar. now what does the fed do, do you think? >> yeah. the currency is a major concern. that could still be kind of the canary in the coal mine that's singing loudly because you're right, connell, look, the u.s. dollar give or take one of the days this week is at year to date highs. the major s&p companies you are talking about, whether pp & g or pepsi, caterpillar, deere, they get about 50% of their earnings overseas now. connell: getting hammered. we got to get in a break. before we do that, you are kind of bullish on this? you think today's a good sign buyers have come back? >> i think today's a good sign. we also do on the u.s. dollar is a hedge. don't hesitate to buy some dollar currencies just to hedge out some international stock positions as well. connell: all right. have a good weekend, i guess. thanks for coming on. what other choice do we have? scott martin out of chicago. florida in a moment with this suspect that was known to

authorities. that's what we have been told. 56-year-old cesar sayoc. he was arrested in connection to these packages mailed around the country. a report from the "florida sun sentinel" said he had been arrested in the year 2002 for what the newspaper describes as a bomb threat. our own fox news reporting said he did have prior arrests for making terroristic threats. "sun sentinel" says at least one prior arrest came back in 2002. more next. ok for when you trade? i want free access to research. yep, td ameritrade's got that. free access to every platform. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade.

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arrest. there are a number of previous crimes that this man had been charged and/or convicted with or of. i will go back to 1992, july of 1992, petty larceny and theft. he served a year of probation for that particular arrest. that's what the court docket tells us. then to what i previously mentioned, 2002, a bomb threat in 2002. there was another arrest, unclear what the charge was, in the year 2014. now today, of course, this is the suspect as we understand it, cesar sayoc, jr., in these packages that had been mailed with explosives attached to them around the country earlier in the week. more from the department of justice in under an hour. they are expected to discuss all of this. a former cia chief of staff joins us. thank you, larry. we appreciate you coming on with us. we have been trying to -- we keep together everything we know and try not to get too far beyond that but we know this is

a guy the authorities were familiar with, and as far as we know so far, it's the only guy. anything that you have heard so far that surprised you or stood out? >> no, nothing really has surprised me at this point in time. my expectation was that this was going to be something being driven by a troubled individual, perhaps somebody with a long criminal rap sheet, which you just reported this individual had. i would be very surprised at this point if this individual turns out to be part of some larger either domestic or foreign conspiracy. connell: is there a sense of, i don't know if relief is the right word, but a sense of okay, we got the guy and as far as we know, it's one guy? it would obviously be much worse if it was something other than that. what should people be thinking of beyond today? should we just put this whole episode in our rear view mirrors? >> well, i would offer a few points. number one, i think we should be

very proud as a people of our law enforcement organizations, including the fbi, the nypd, atf and others, the postal inspectors. they did a phenomenal job getting this investigation to this point so rapidly. secondly, i think we need to be very careful to avoid too much speculation and allow the investigators to do their work to bring this case to some kind of a conclusion. when we head off into partisan corners and start throwing accusations around regarding the event, i think all we're doing is feeding into that which our enemy would like, which is chaos and division in our country. connell: you're right about that. it doesn't really help us, right. and maybe if he was connected to something, it might be a more pertinent question, but in this case, just leave it as it is, someone who is clearly a disturbed person or has a criminal history and has been

caught. i guess that's what i meant, can we just move on now, do you think? >> well, i think we need to let the investigators continue to do their job. investigations sometimes do produce surprises. we will obviously hear a little more in an hour or so when doj gives their initial briefing. should we just move on and ignore it, i guess i would of r offer -- my response would be that we should use this as a lesson to remain vigilant as a people. when we talk about see something, say something, we mean it. there is still unfortunately a concern about foreign terrorist threats inside the nation, there are concerns about individuals being radicalized by both foreign actors as well as domestic actors, so we need to remain vigilant as people. connell: larry, good to see you. thanks for the analysis. sober analysis, which we can all use. appreciate you coming on with that. that arrest record i read to you earlier was from miami-dade

county. there's another one i was just looking at what larry was wrapping up his remarks from broward county. there are a number of other arrests included there. the bottom line and take-away for cesar sayoc, jr., 56 years old, is he had an extensive criminal history. he was known to authorities. now he's under arrest. the justice department will tell us more about where the investigation goes from here in the next hour. we will tell you more about where maybe the stock market goes from here after this next break. we know tech's been struggling. maybe microsoft is the one to watch in terms of the next trillion dollar company. one thing that came out today, microsoft is bigger than amazon at least in terms of market cap. that happened earlier today. we will come back and talk about tech, microsoft in particular, in just a moment.

connell: more breaking news. this alert is from nbc. nbc has confirmed that it indeed is canceling megyn kelly today. that program is off of nbc. it's the 9:00 hour of the "today" show. the news release that they put out at nbc says her program will be replaced by current "today" show anchors. so megyn kelly is out officially and the program is canceled. the show is off the schedule at nbc. the dow is down 200 points

right now. it had been down 500 points earlier in the trading session. microsoft is certainly an individual stock we have been keeping a close eye on this week. it's down 1% today. the other night in the midst of everything else, it reported some strong earnings, maybe getting lost in the shuffle a little with all of the focus today on amazon and alphabet and all the rest. we will be back and talk about microsoft, where it goes from here and in terms of market cap, how it compares to amazon after this. this is a tomato you can track from farm, to pot, to jar, to table. and serve with confidence that it's safe. this is a diamond you can follow from mine to finger, and trust it never fell into the wrong hands. ♪ ♪ this is a shipment transferred two hundred times, transparently tracked from port to port. this is the ibm blockchain, built for smarter business. built to run on the ibm cloud.

connell: get to that discussion on microsoft and whether or not it's the next trillion dollar company in market cap. we had that talk about apple right there, $819 billion plus. the story today is that microsoft actually passed intraday, amazon a larger company in terms of market cap than amazon. adam lishinsky joins us now. always good to have you from out in san francisco there, adam. i would ask you, is this a microsoft story or an amazon story but sometimes we forget to talk about huge companies like microsoft, we are so focused on the others. there it is, microsoft, a little bigger in terms of market cap than amazon today. what's the take-away? >> well, they are both important. i think the microsoft story absolutely [ inaudible ]. furthermore i think it's one of the greatest [ inaudible ]

stories, you know, in over a century, not just technology companies but any company. really, only the apple reinvention would be a better and more important story. this is a company that obviously led a generation of computing for about ten years. it kept making money during that time and now is firing on all cylinders which is extraordinary. connell: i will ask you one more question about this because you are probably on your cell phone and we were trying to get you on camera, we were having little issues. it's not the best connection we ever had. >> understood. connell: i need to ask you one more question. what's been the key to the turnaround? we just don't talk about microsoft like we used to. what's the key for you? >> the key was they got their heads out of the sand and said we're going to stop pretending like only our technology, only our way of doing things is the right way and we are going to do it the way everybody else is doing it, so they took their office product which we all use and didn't need to buy very often and put them online. that's related to the cloud and

that was where it started taking off. connell: take off, it has, on a relative basis and maybe it will start to get the attention that's deserved. all right, buddy, talk to you again soon, adam. let's get to gasparino, who is back with us right now. we were talking earlier, charlie, about the market, the market came back and the comeback, and we haven't talked a ton about politics today. just general midterms and everything, not only how they relate to the markets, but the president's hitting the road. he will be in north carolina for some rallies. i wonder, these are the candidates, by the way, he's supporting. mark harris on the right-hand side of the screen, the republican who is in a very, very close race. that is in one of the big districts in north carolina. and the second race that he's following in north carolina is another very close house race, the candidate there, ted budd, that he's trying to support. so they are desperate now, the republicans, to try to keep this house of representatives.

a month or so ago you would give them no chance. but now? >> i think the kavanaugh hearings energized both the republican base and you know, the key i guess swing voter in this election were suburban white women. connell: so they tell us. >> so they tell us. they were trending to the democrats a lot. that's why people thought maybe even the senate was in play. it was weird. after kavanaugh, those polls show that suburban white women started inching back into the gop corner. they literally, i mean, listen, i could just tell you anecdotally when i speak to suburban white women, i have a house in the suburbs in new york and women that are republican generally leaning, they do not want their son to be put through what kavanaugh was put through based on what he put -- connell: it added energy to the republican base. >> do you want your son treated, you want his high school yearbook becoming an issue in

some sort of a job -- connell: those people might not ordinarily, they might not have been the big pro trump republicans. >> they're not. i actually think a lot of these women despise trump's rhetoric and coarseness. they think he's disgusting in many ways. connell: if they show up to vote -- >> the other half of the coin isn't so great, either. they are questioning that. i will say this. it looks like the president is worried about markets as he's attacking powell, that that may somehow hurt gop chances. it looks like he's worried about obviously the mom issue. you know, he quoted bomb stuff the other day. connell: he put the word bomb in quotes this morning -- >> i think he said bomb stuff. connell: i believe you're correct. in terms of the relationship between kind of midterms and markets, i know larry kudlow brought it up -- >> i don't care. connell: i haven't heard it from anyone in the investment community. i have heard it from a lot of

political people. >> larry is a good friend of mine, smart dude, but he's in a political role right now. i think if you were looking at the polls, you would say that it's going to show gridlock. republicans likely to keep the senate, could probably lose the house but could make a run at it, and you have a republican presidency. that is called gridlock. markets generally like that. i don't think he could make the case that the markets are reacting to -- connell: also it was a known event -- not known, expected event. democratic house is something we have expected for months. >> by the way, the fact you have gridlock and a check with the republican senate is a good thing, the markets say. now, i think what the markets are trading off of are tariff fears, that's going to impact corporate earnings, higher interest rates. i still don't like this gdp report. it wasn't enough bang for the buck. connell: internals. >> yes. by the way, if they don't sustain decent gdp growth, if we don't do that, we are going to

get higher deficits, okay. if we get higher deficits we got to issue more debt. issue more debt, interest rates go up. this is what people are trading off of. still corporate earnings are decent. remember, that's where the debate goes. will they remain decent, are they enough to make profit margins high enough to reflect these levels of the market, and that's what the market is trading off of. they are not trading off of -- connell: it's not only earnings. >> not the dems are going to win the house. connell: we brought this up earlier not only on the profit side but on the sale side. that's one thing you can't play around with as much, right? >> yes, absolutely. here's the other thing that's interesting. you do have a global slowdown. you look at the global economy. as much as you want to say this is fortress america, that will impact corporate earnings, too. so all this is being debated. connell: you talk about a slowdown in china, everyone brings it up and sometimes it gets brought up in the wrong context. at least i think it's the wrong context. like china is slowing down, it's almost overly simplistic, we win, they lose. what about all the u.s.

companies doing business in china and rely on -- >> we ship stuff. they buy a lot of our stuff. they buy a lot of agricultural products. connell: of course. >> i mean, it's not a good thing for them to slow down. they also buy a lot of or treasury debt. remember, them slowing down is not a good thing, necessarily. you know, maybe it will lead the a better trade pact. that's one of the things -- look at the intangibles. if trump can do a trade deal with china, markets will like that. i'm just saying -- connell: we are nowhere close to that point. no one thinks we are. every indication we get, whether it's a "wall street journal" story earlier in the week or anecdotal -- >> i'm telling you, ford, say what you want about ford not doing, going to a different type, vehicle type, i'm not an expert at the auto market but i do know that their margins are being impacted by higher tariffs. connell: like i said earlier, i interviewed the cfo. he said as much. they put up a good number despite that which was really the story of the fourth quarter. they were able to fight through. i thought the texas instruments report this week, even though think said there's no direct

impact from tariffs, was telling because the slowdown in demand, where is that coming from? >> by the way, if we are dealing with individual stocks, two names to look at next week will be interesting. both are reporting earnings. it's tuesday and wednesday, i can't remember which is tuesday and which is wednesday. i believe ford is tuesday -- no, ge is tuesday and isn't ford wednesday? connell: we just got the ford report. >> i would just say this with ge. watch where they cut the dividend. we reported that they were considering it. it took the stock down. they have a new ceo in there. he doesn't burn any bridges. it's not on his watch. and it makes every bit of sense to cut it because of his cash flow situation. connell: got to run. 30 seconds. what's the biggest thing you hear from people when you talk to them? tariffs, the dollar, global economy? >> tariffs and interest rates. connell: rates. >> impacting the market. jonas said it earlier. connell: he did. he's a genius. where do we get it from?

the larger question is where do we connell: charles payne joins me now whatever gasparino would say next. you cut him off. kind of a fascinating market day, charles. charles: will be fascinating, we might even go to the plus column that would be remarkable. this is coming up. connell's point. selloff by big growth names once seemed invincible. waiting justice department news conference today, on the male suspect arrest. meanwhile this is still a goldilocks economy, a consumer driven third quarter gdp. beat everyone's expectations. 3.5%. all that and more on "making money." so the markets sell off, way off the, way off the lows of the se