phenomenal panel today thank you everybody. >> thank you. great to see you have a great day everybody. "varney & company," charles is in for stuart take it away. >> i'm charles charles stuart will be back tomorrow but we have a ton of big stories we're following for you including tedly wildfires that continue to rage in california at least 31 dead. more than 200 unaccounted for. and thousands of home destroyed we'll have the latest throughout the program there. and your money, oil and focus right now bare market territory despite gains this morning. it is dropped ten days in a row ands gas well gas lean has come down with it peck is considering production cuts and stocks are flat but profits have been strong this quarter. and this week we got some from those big box retailers

reporting, of course, that is the pulse of the consumer. and how about alibaba more than 30 billion sales on single day surpassing amazon prime day in just ten minutes. plenty to cover for you we've got three hours to do it. "varney & company" starts right now. ♪ >> let's start with those deadly california wildfires. what's the latest, ash? the latest was winds dropped for a brief period yesterday morning but they're back unfortunately back up gusting between 30 and 50 miles per hour so this is not over three major fire. one in northern california, the camp fire, 25% contained over 109,000 oak percent charred and 27,000 that town is essentially wiped off the map. as you said earlier charles at least 31 confirmed deaths. some 220 people unaccounted for.

overall by the way, 6700 structures have been destroyed we have two major fires in southern california. the woolsey fire being worst of those 196,000 acres total and a the cost to california for all of this insurance included about 19 billion dollars. and we're not out of the fire season by any means so low ts i mean low humidity high temperatures strong winds, that is the recipe for disaster. and having a hard time reigning these in. 19 billion in damage at least 13 dead that number could climb. >> thanks a lot ash. let's check oil off this low since march 8th joining me now shell oil president. john the question everybody asks is how low is it going to go? >> i hope we're at the bottom. charles. this is -- i come as an operator not a trader or investor as an operator prices are getting to point where we start seeing people pull in their drilling

rigs and simply not put more money especially into deep water. so i don't think we can really sustain this low price and i think we won't. in fact, you know we can understand why it fell. because of the relief on the iranian sanctions, with waivers to eight countries with the increase from saudi arabia because of trump's requests and, of course, our own basin keeps pumping it out and we're at all time record highs in u.s. production so it's it shall understandable that we've had a temporary -- >> although the job -- jump in there because -- yeah, it's understandable to a degree but it wasn't long ago when we were talking about these iran sanctions in lack of supply taking us west texas through 75 next step 100. why is it down this precipitously? >> i think it has to do with iranian sanctions people were trading up that price i should say on the expectation that one

if not two million barrels would come off the. market that's not going to happen based upon waivers so suddenly you have this expectation of shortage that has gone away. and so for a short period of time here, there's some relief from that. and i think it will depends what the trump administration does with respect to the waivers going forward. they did suggest that they were all temporary so maybe they will slowly come off in the meantime i think count oil well last week, where is equal to your point industry adjust quickly and too cheap they stop drilling too expensive you know the -- demand starts ting away. where is equilibrium? >> with shale formations it is still a struggle to have positive cash at this number between 60 and 70. i think equilibrium is in 80

range and plus 80 dollars will give some certainty to offshore developments that i think we need over time. so i'm in the camp of 80 plus. from an operator's point of view and then i think we'll be sailing smoothly. american will have a good supply world will have a good supply and i don't think the price at the pump will be out of range. >> all right john always great to get your expertise on this. appreciate it. thank you. >> let's get become to your money take a look at stock futures you can see we've been under pressure all among long i want to bring in market watcher with clear advisor so far s&p certainings i don't think most know this up almost 29%. right come into the earnings period we with heard 22% of people were like man that's a lot. 29% and yet the market is really been struggling. >> and with the market struggling you've taken evalkaition down to a pretty attractive level look you don't have conditions for a bare

market. credit markets are still in good condition you have a growing economy, you have growing revenue you have growing profit, buybacks you have merges and acquisition oarngd you have more difficult earnings comparisons next year. you're seeing a slight deceleration in number of companies that are beating expectations. you're starting to see a little bit of profit margin pressure you have tightening liquidity and atmosphere in washington could be pretty nasty. so ting that you're in a -- sort of a standoff with the odds are that the positives will prevail but it is going to be a strug m prvelg feels like conversation i had with hofmeister respect with oil maybe it found a bottom. big question to your point you just made what could be the catalyst we just had amazing jobs report that wasn't necessarily the catalyst all etho last week it was not a bad week for the market. but you know, the sort of catalyst regain -- that equilibrium and what role will these big growths because you take amazon, you take apple,

netflix google those sort of name and they're large percentage of their respective s&p sectors. >> what had it would take would be feeling that you have a civil -- differences of opinion. but a civil atmosphere in washington. and a feeling from the fed that, that they know what they're doing. and they're not going to raise rates until something breaks that they're going to be -- they're going to be premeditated in terms of the market, you're seeing a shift in leadership away with from the thing high growth -- >> do you like that ?irvetle prefer to go to the medium growth, the microsofts, the visa, mastercards, the united health care in other words -- good growth lower growth but lower pe's i think what market is saying is that, we want to stay in but we want to stay in with a little bit more of our -- our back coverage. >> and less volatile. >> so you take out volatility when staples started being leaders you know market is anxious right, so --

then how do you feel going into the rest of the year because there will it sounds like a political war down in d.c. instead of instead of this sort of thing we saw with with reagan and "tip" o'neill with clinton and newt gingrich doesn't feel like both will work to achieving to legislation instead all hands on deck. >> in particularly with the whole attorney general issue and what's going to happen. it could be a poisonous atmosphere. oarngd it is a very seasonably positive period people tend it look at the glass is half had full. the fourth quarter should be a very good quarter in terms of earnings. so if washington could just get their act together, market should close higher than -- >> jim you look good may man. must have had a great weekend. thank you for stopping in. plf blowout numbers on singles ash how was it? >> i don't know if we're doing it with justice blowout. 38 billion 30.8 billion dollars in sales.

11th of november single day become such a big deal. by the way that blows away previous record which was just in 2017 which was 25.3 billion. perhaps more interesting this year is jack more in of the television show, before everyone goes online. he wasn't so much a part of that. he's pulling back he's, of course, going to handle reigns but chief executive that had maria carrie and miranda kerr they go out what's interesting is perhaps a little frightening is only consumption in china online is just 20%. so there's plenty of room to grow. on top of this -- >> jim let me ask you this because stock is not acting that great. it was down 4 bucks on friday now 15% year to date now 22% over last year. i think that problem is the rate of growth despite these big numbers flowed 26.9% year over year last year 29% and 2015, i

think the street is looking at that and sees yellow flag. >> and i think the street is also concerned about china, and the middle class consumer in china. going forward as their economy seems to slow as this trade issued doesn't get solved. >> don't you think that issue is beyond trade into the year that debt issue, the flight of big money out of the country. j all of the issues vowpgding chinese economy, and just throw the tariffs on top of it. i don't think it is a tariff only effect is people concerned about what's going on in china. and they thought this might have been the last hurrah this november. >> thank you. okay check on futures right now. dow -- actually all of the major inked cease been under pressure all among long nothing catastrophic but certainly they've got work to do to crawl out of the red column as we get closer to the opening bell. meanwhile charles schumer democrats might tie support for stinging tbil to legislation that would protect robert mueller. they playing chicken we're going

to get into that with fox news contradict tore lisa booth oil dropped ten days in a row enwill prices continue to go down and ask a oil services in that question and all eye on florida as reare count is now underway. it's closely watched -- races to senate and governor race and president trump even weighing in and tell you exactly what he said right after the break.

brands outperform for market perform over at wells fargo remember that l. brands is victoria's secret and bath and body works and cannabis revenues almost quadrupled a favorite of cannabis buyers at canadian company roangt lie listed here in america stocks up 3%. well we counts on florida underway and president trump tweet about it. smg here's what president had to say about all of this. the florida election should be cold in favor of rick scott and ron desantis in that large

number of new ballots showed up out of nowhere and many ballots are missing all forged honest vote count is no longer possible. ballots massively infected. must go with election night as we know governor rick scott incumbent bill nelson in a huge very very tight race in senate and andrew gillum in governor race all 67 counties in florida now having to do a recount. not to mention that rick scott is already filed suit against brenda snipes who is the supervisor of electionses in broward county basically wanting to cease all of the voting machines. bottom line is memory of 2,000 come flooding back, but it is a mess. let's be honest they have a thursday deadline to do all of this and doubt now that that deadline is due. j should be counted but system should work. yeah. we've got a little practice at this. thanks a lot ash well now this one they take over the house in january. adam shift will be new chairl of the house intelligence committee, listen to what he says hen --

he plans to do roll tape. >> secretly meeting with post master to raise postal rates on amazon this is fort by president to use striments of state power to punish jeff bezos and washington post. >> all rise judge andrew napolitano is here. so is this legitimate oversight or is this beginning -- >> i'll give you both argumentses one argument is narrower argument that congress can investigate that which is apparently criminal or impeachable, and even if what even if the president did what congressman shift is just accused him of doing in that clip it is neither criminal or impeachable. other argument is that congress has the power to investigate anything about the executive branch that thinks that executive branch is hiding from public that congress thinks that public would want to know. now, when congress and the president are on opposite parties congress thinks the

public wants to know everything that president is doing and when congress and president of the sail parties like now, congress usually backs president up so it wot surprise me if congressman shift is correct. and that if this along with you were talking during the break about same with 85. potential investigations it would surprised me if 85 start. dana a colleague reports that when the democrats took congress away from the republicans in '06 president george w. bush almost overnight doubled size of the white house legal staff. i would suggest that president trump be subpoenas are coming fast and furious. >> i thought it was interesting and nancy pelosi told me about mueller investigation that -- that it might not be indictable but it could be impeachable so you know -- it feels like to your point everything is open season. and i don't know if there's a political and legal to that.

>> i've been arguing for the past couple of days that the democrats should legislate and this is an opportunity to show what they can do to find common ground with the president and that will help democrats in 2020 but apparent lier they poll telling them such animosity that a lot of them in house believe they were elected in order to drive them crazy. to torment him and to expose whatever they think he's been doing with these investigations. it could very well explode in their face. they did succeed with their -- their had usual discipline and not mentioning impeachment during the campaign. >> real quick let me ask you about role of courts because beyond dems in the house, if the legal system gets involved. >> so if you were to say a subpoena we give it to our lawyer first lawyer will do if he can't talk subpoenas out of it go to court to get it squashed. courts will not quash a

congressional subpoena to the president under principles of comity. two are are equals and the court should not get involved. and if one goes after the other let political aspect of it resolve it. >> judge, so this stuff is going to go on for two years. >> great. >> thank you. judge thanks a lot. appreciate it folks another look at futures before market opens here. getting a little bit better. you get a sense that there will be at least one or two rally attempts sometimes during a session but investors looking for that catalyst not sure if it is there today wildfire in the meantime they continue to rage out of control in california. the situation only getting worse. we're going to talk to the mayor near one of the areas that is seeing a lot of damage. next. (indistinguishable muttering)

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>> let's get become to the california wildfires and focus on the fire in northern california called the camp fire joining us by phone is mayor chicco, california shawn morgan, for an updates on the fire. mayor thanks for joining us. >> good morning fella it is thanks for having me. >> can you fill us in on damage assessment at this point. >> you know, it's hard to grasp. 110,000 acres over 50,000 people

have been evacuated. we have 4500 firefighters up here. 12 helicopters over 500 engines at this sheer number of evacuees 50,000 evacuees just unbelievable. >> last i 29 dead and calling this most destructive fire in the state's history. >> yeah we were at fema, california office emergency services saturday, they said this was the biggest disaster since the 1906 earthquake and that 29 dead is also the number i have, i do know that there's -- teams from california state university chicco and university nevada reno helping sheriff and coroner office looking for remaining body because there's still over 200 people missing. >> wow. when it's all said and done and early but we know this is going to be extraordinarily expensive but talk about how to prevent and mitigate this we tip our hats to first responders and

ideas that 50,000 have been evacuated. and really remarkable, what are your thoughts on the future after this -- after this fire is contained? >> first reason first responders so good in northern california is they have practice with oroville dam disaster and his crew was ready to go everybody responded to him in his direction and got a lot of people out. as far as the future, you know fema is here. emergency security is here and people have to decide on their own it is weeks before they can get out there and start clearing everything out. as you guys mentioned cleanup is going to -- just going to be as a no, ma'am call and huge and take years to build anything become in the meantime. our city is city of poco added another 27,000 residents and we already had -- [inaudible conversations] >> our prayers and blessings are you we've got what they call a hard break but thank you for taking the time and we will

certainly come back to check in on you, and the other towns affected. >> thank you very much. >> we appreciate it. thank you. >> got it. hey folks market is beginning to be open in about five minutes. dow jones industrial average and other major indices under a fair amount of pressure.

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here, and in about 16 seconds remember last week was a pretty good week, in fact, last couple of weeks first back to back gains for some of these other major indices but watching investors rattled if you will shaken over that a really doozy on walgreens how market can get become to the way it was trading in the good old day. like a month ago -- [laughter] hey folks. let's check on the big board because we're get our first trades in popular lathing up 32 points the big loser, though, so far apple a lot of concerns for or particularly with action to some of their suppliers and word about early selling on new iphone in the meantime l chevron higher exxonmobil higher remember chevron had a very good earnings report before that last leg down in crude oil. verizon jp morgan rounding out and s&p 500 here, a broader index here. just down fractionally, and now a check on the nasdaq, the home

of all of those big high flying names city the best performer of the year. but certainly one heck of a wild ride rear endly down 41 points. joining us now, jeff shah gilani ashley webster let's start with earning season record card so far s&p 500 companies earnings get this, they're up 29% just about from a year ago. shah, i mean does that kind of set us up for holiday rally we were looking at 22% we thought that was a lot. >> best earnings third qeashed of 2010 so spectacular for this quarter. does this set us up for rally? i would like to think so. it should because earnings i don't it will turn arranged and earnings will drop off at third quarter and fourth will be spectacular a question will market read that into it and maybe it is discounting that already and i think that's some of the pullback we've seen so we should see a rally. >> jeff. >> i mean, i do believe that earnings were great, but i think one of the major concerns now is

that -- and what people are talking about have earnings peaked here and if earnings have peaked here, then you're going to start to see a lot of people take money off the table because keep in mind, you have a lot of people who will starve out of the bond market bought stocks and might look to take profits. so i don't have my expectations. >> but there's a distinct difference between earnings peaking and rate of growth peaking. right? earnings can still increase next year and they probably will. but maybe not by -- >> but not this year. despite the fact that tariffs seem to be off a -- seem to be a little bit put to the side you still have the tariff issue. and then you have the overriding issue with the fed that does, in fact, want to the raise rates and how quickly remains to be seen. >> i think that dollar is a biggest headwind face this market. i really do i looked at earnings reports in almost eve -- and i didn't see one problem that cross every single area of the market. and day to or dollars breaking out 2018 run are.

>> because of the rest are of the global economy is struggling right now. the dollar is where it's at. >> i agree with him expectation for earnings in terms of beets is now the bloom is off the rose. 60% of companies beat their revenue estimate ises this quarter 237 that's a long-term average, for the past prier four quarters it was a 73% beat so come town 17% in one quarter so i think market it looking forward to some of that. is the rose and bloom off the rose have we reached peak earnings? >> when you have expectation as high as they are you can do little but does appoint that's why i think we're at the. j sings then market readjusted a rough october and ford s&p right now, that is lower than a five-year average so you can argue that stocks are cheap, and expectations pendulum swung to other way. everyone bring it is up all of you are cautious. no one is exuberant about where

we're going right now. earnings are pe by about 15.4 and not here so i'm not getting buzz sod this is -- a trend, so this is market and not expensive. >> let's talk about crude oil for a moment folks an right now are national average for regular gasoline 269 cents down 33 days in a row. that's really remarkable maybe if this happened -- a month before the election we might -- this used to be number one with election issue. cheap gasoline. but how much lower do you think it will go? >> i think it is probably temporarily bottomed out. you know, there's some talk coming out of opec coming out of the iran, coming out of prospect for flooding the market being over. and i think that is right what we saw was pump a lot of oil in order for it to look better on international circles and now as of this weekend they're talking about cutting become a million dollars a day.

>> no big deal because of the exemptions plus -- u.s. producers are -- >> trump say they're temporary so we'll see if that come off one by one maybe a change had of the mental dynamics. but it is a -- the debate is supply and demand it feel like to me it is about oversupply also. j right. >> tons of rigs onis line in the century we have a lot of supply inventories are built and not so much -- >> it is just a great thing of a glut of oil that means that, iran is not as significant as a lot of people believed. a lot of people were really afraid of these sanctions. the fear right now is gone. which is great thing. but i agree with shah, i think we're going to have a leveling off here. i think o'speck going to pull back on supply a lot and we'll see some prices stabilize. >> let's talk blowout numbers for alibaba singles day. what do you read into it -- shah with respect to the economy. i do want to point out even though number was robust, the growth year over year was 26.9%

last year it was 39.4%. 2015 grew 91%. i think despite the big number overall number it might suggest that chinese consumer is fatigue or running out of gas. >> i think that speaks to the stock and opposed to the economy i think if you look at the economy i think consumers are still spending maybe not that at the same rate that they were spending but, obviously, this is a record number for alibaba and i think that stock is reflect the fact that the growth is trending down. it is still is positive. but -- >> when you go from 90% to 5 to 26, that looks like a tumble. >> that's what numbers are, though, and also on friday we learned that oact autosales in china were fractionally lower that this could be first year ever to say became a major buyer of over over year buyer and automobile purchases so seeing whether louis vuitton or slower single day sales that maybe they have economic issues. >> and wees grasp at saws with so little coming out of china that gives us a realistic look at to what's happening.

i think a lot of people have been blown away by the 30 billion dollar number, considering our cyberholiday was $5 billion they look at this and say wow they must be doing -- they own the market in china. 100% of the market alibaba owns a massive market. i wouldn't touch the stock right here right now. i wouldn't. >> stock is now 22% in last year down 50% year to day. date, and it was down 4 on friday fractionally lower. let's check on big board trading for 37 -- 7 minutes rather netflix is big name under pressure here recently nowments to sign up more people to test lower. testing this sort of lower price plan and some markets. apple also below 200 again, that's, you know, today so far the biggest on dow jones industrial. an bis company reported earnings this morning revenue quad droop les jeff are you buying cannabis stocks? >> this i've looking at for a

while i don't own that. at this point, they're getting a lot of their earnings they're showing from their -- investment in private and other publican bis cannabis companies these earnings make little sense to e me but they are showing that the market is growing exponentially i wouldn't touch the stock. i think there's a lot of -- i think you have to -- actually to buy this, you have to really consider the fact that this market is going to -- is going to find its place and i think it's going to come back to reality soon and i don't to be owning one of these. >> it seem to have come down a lot in last couple of week, shah. >> on that basis this stock looks fabulous if you want to take a run at it long-termon physical i would be holding that and see through the haze here just really to justify the numbers. >> that would. >> everybody that i talked to all of the family offices i talked to ultrahigh net worth they all talk about cannabis

making cannabis investment this is a major, major factor now where at first i juiced to laugh about it -- >> look canada legalized pot while october the 17th been a mess the the supply chain issues people supposed to be licensed and not get their licenses. right now it is building 800 square foot growing facility in western canada once they get that all sorted out there's a huge pipeline to make a lot of profits. >> okay. you have the growing potential -- >> thank you guy. you know, it's interesting, though, ultimately you can grant winners in that state. let's take a look at g.e. down about 59% from 52-week high i remember shah when it got arranged 20 talk was hey this is the bottom. i don't know a lot of guess, and at 1312 new ceo this is the bomb now crack ten and some people are now still bottom fishing on this. >> i don't think i would hold ge on long-term basis and dinosaur in materials of the business and size of the businesses that they

have in the areas that they're in. they're too big and it is hard for them to grow their potential earnings, and profitability in those companies but how they -- >> to have cash, not enough. and they've sold their best they're in a process of selling or sold their better assets yeah. and they have of to a huge pile of debt and i'm worried now i think a lot of folks are worried about analysts are worried about earns are they able to pay off debt that's to service their debt. >> exactly. yeah. and i'm looking at it. i would date this stock i would not marry it. ii mean they've sold off best stuff and they've held on to things that aren't working. i mean, you go back to the bad decisions that he made, that now they're reaping the seeds from the -- they're sewing seed from what he's done, this is problematic this is probably going to end new a -- >> dating not kind kind of inted

go with the analogy. >> i mean also i think this should be a great case study on poor management, poor boards, i mean, jeff inherit haded most valuable company a long time ago. jeff, shah thank you both very much. check on board we're slipping selling now we're down 145 points meanwhile, though, economy is booming. but there's that one part that housing market. it is still struggling we're going -- what i want to know is we'll talk is why so we're going to talk to national association for home builders about all of that plus joins us to talk about strong winds that are fueling the california fires. and much more alibaba our market watcher -- he made a bold prediction about singles day on this program just last week and he was right. and he's back. right after this. nah. not gonna happen.

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checking big board now pressure to downside dow off 156 point right now. and watch out test what, volkswagen is gearing up for a less expensive electric vehicle. i want to go to lauren, and simonetti find out exactly what's going on it shall lauren. >> hey charles good morning. so volkswagen is looking to undercut tesla with its own electric car likely a self-driving electric car. selling that for $23,000 with undercuts to tesla by about 12,000 dollars this according to several reports those reports also say that volkswagen toming up with battery cell maker sk innovation to forward electric car with a big push across europe to switch nor green technology. but at the same time, volkswagen

because of their scale and their size in europe they have to protect their jobs. they expect to lose some 14,000 jobs because of green technology electric cars. so they're going to use three current german factories to make this new car so message to e.g. lon mufng charles is get that model y out soon before volkswagen comes for you. >> appreciate it. great message become to alibaba singles day here's market watcher, ray wong prediction from last week. >> i think they're going to hit 28 billion this is the olympics powerball and oscars of china all rolled up into one. it is bigger than black friday and cybermonday combined. >> well ray joins us again alibaba even beat your prediction race on -- but what's happening because the stock is not necessarily reacting the way one might have thought. >> yeah, you know the big thing and hi chals big thing is fact

that it's -- they showed slowing growth right that's slowing growth they hit a billion in one minute and 25 seconds and that is slowing growth. they're at 27% growth year over year instead of 36 and that's actually spooking some of the investors but when you think about the magnitude what have they did, that is still a massive accomplishment. >> it is if you think about how many people in china still don't even have access to internet, longer term you've got to believe their well positioned for one amazing ride once they turn arranged but ray what some are concerned about is this or war of this chinese government on a lot of internet names at the center of this storm. but it feels like all of the name have been caught in this. >> yeah you know with jack stepping down with a little issue with the gd.com folks -- with what's going on at ten cent there's been a crackdown and it has a political crackdown against the folks, and so there's a little war between xi and old side that's going on with trade war is actually leaving a lot of issues on hand.

plus i think we just sent ships into thai straight so interesting to watch. >> i have another one for you sap we have to buy before they ipo this is one the big unicorn a big deal biggest ever for sments.a.p. you think this is a big deal why do you like this so much? >> second largest deal in cloud history largest was net oracle 9.some bill but it is a brand new cord called experience management that is about employees, customers, brand and product every tim you fly you get that survey that how did you feel about that. that's a survey on back end so there's a lot of opportunity for s.a.p. that got into about 9500 customers. s.a.p. can cross sell into and they see a land grab for cloud properties especially in new

categories. >> you're right probably to red hat should have done it a year or two ago but what about idea more and more we saw in the last year the so-called unicorns opghting to be acquire rather than deal with process of going possible is that an indictment about being a publicly traded company these days? >> there is. right, you know going public means that regulations come into play you're stuck with all pflt filing requirements. suddenly you become a rgt tay. so a lot of this folks actually feels better be brought into a large hadder company. they can actually remain independent for two to three years keep culture as it is, of course, focus on growth instead of focus on pure ebada before i let you go how are you feeling about market overall here we've opened under pressures feels like we're grappling for some sort of kat list if you will. >> post midterm i think part of it is really folks trying to see how do we do past thanksgiving

aen rebalance by december and more importantly i think what's happening is less momentum really to switch out of tech stock. well you get 40 to 50% growth so it is interesting to see how people figure out kiewrl like mcdonald's and proct and gamble win out or tech stocks i think we see rebalancing act tod of the year. >> they move into mcco myc thanks a lot and congratulations on that great call. >> thanks had a lot. >> let's checks on markets here because selling is picking up a little bit of momentum to downside off 172 points although they have a fair am of winners on board a all big drag goldman sachs financials a big disappointment this year. hey get had -- we spend more than 60 billion dollars year on pets i'm talking we me and my house in my household alone just kidding. now -- actually investment in tracking pet stocks all in one. we're going get into that, next. i am a family man.

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checking big board dow off 180 points apple is now below 200 buck again and that is by far your biggest drag on the dow jones industrial average. now for something completely different.

americans spend mrns 60 billion dollars year on their pets now well you can invest in a fund that tracks pet stocks. simon and tell us about this new etf i think symbol pawz. for pet carry tf. you know we see these stocks whether it is pet shorn's, pet food, pet retailers from time to time i see them shoot up like crazy and seems like a no-brainer we love our pets so much and we are doing everything for them. >> i think that's right. you know, first just looking at the industry i mean 7 out of ten u.s. households have pets that's up from a little over 50% of generation ago. and there's consistent growth, so this isn't just sort of a high flowing thing. double the percentage gdp growth since 2007 growing straight through the great recession so there's growth and king the city. >> interesting i read an article now today city dwellers can take pets upstate or have them up

state to run like like if you feel guilty that department all day. yeah what are stocks in this, in this -- what are some of the names that dry -- >> like pet med, and true but like colgate massive businesses. sfntle there a way to buy market cap. >> weight sod we make sure that the pure play companies that biggest piece of portfolio but that we're also repghting some of the with big businesses and things like that and it is tricky to put together with a lot of a pieces of the puzzle. but we thought the opportunity was so compelling that it was important to bring out the first pet carry -- >> you own two dogs. 60 billion totally buy into it they say good-bye to me in the morning one gets a paw up to get a tickle and then off to work he goes. >> 95% of pet owners say their pets are part of the family. >> my god yeah. >> of course you don't own a

pet -- [laughter] >> i'm only person left an i'm getting pressured to buy a -- >> i don't know if you can talk about pawz i don't get emotions from you. gi to my brother-in-law's house. >> i appreciate it. migrant caravans all of them now well now left mexico city headed to our southern border we're going to talk to the border and commerce sector security counsel chair, about how they're preparing for all of this more varney right after this.

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charles: ge down the past the 12 . j.p. morgan cutting price target. 2$6 a share. meanwhile alibaba, at the time a record for singles stay. so that is where we're going to start, right now with keith fitz

gerald. stock is down a lot. down year-to-date over the last year. would you buy the stock here, keith? >> no problems recommending alibaba at these levels. doubts china, doubts purchasing power of that nation would need to look at alibaba, $38.8 trillion. 24 hours, that is a monster number, monster indicator how much consumer power. charles: what about the pressure stock is under. 22% over the last 52 weeks. down another two bucks a day? what is going on, that the stock is falling apart despite all the accolades you gave it? >> global institutional trading community. it is liquid stock. institutional traders are trying to make heads or tails. this is par for the course.

this is people coming to terms with china against backdrop of a trade war. against uncertainty. a lot of people don't know china. they have never been. there they don't understand it. it is an enigma. charles: president xi has gone to war with at least some of the videogame makers. fallout hurts any company that does business online there? >> it has, ask yourself if that is the case, why most of our major financial institutions applying to increase the exposure, to increase investment capacity over there? if you look behind the scenes wall street is going to china, not a way from it. if you follow the money, that is where it winds up. charles: apple suppliers cutting their forecast, biggest drag on the dow. are you still a buy on apple? >> we're cautiously a buy on apple. this is matter of perspective. apple has not been a device company for a long time.

market is psychologically adjusting to the fact that apple isn't about devices. there will be 165, 1 is 85. then the buyers come back in. this too is a large liquid stock. i think there will be adjustment there. charles: you could say the same for apple, amazon google. they tried to articulate we have other areas of growth that could be absolutely phenomenal, but investors seem to grapple with the idea, yeah, that is good for the future but right now we're concerned about the core business. are you saying investors should look beyond that? >> oh, absolutely. i don't think the core business of tomorrow is what the core business was that got them here today. apple in particular, but google has eight or 10 businesses, everything from artificial intelligence to big data, to cloud services well beyond its initial start as a search engine. charles: keith, talk about

washington, d.c. after the election the dow exploded. that they declared war that the democrats will level against president trump once they take the house. what is good for the market? maybe sort of relationship between ronald reagan and tip o'neill, newt gingrich and clinton there was compromise or nothing gets done where we spend all our time reading about another indictments or attempt at indictments? >> you would think all one side for the markets would be better but history tells us very different. 1958, when you have gridlock, average return is 18 1/2%. it is better to have gridlock. that means wall street can concentrate what it does best which is make money. charles: is it really gridlock

when it gets done. ronald reagan raised taxes seven times. he didn't want to. he read the political tea leaves. bill clinton did welfare reform with newt beginning rich. they listen to the voters and make adjustments? i don't know if that is necessarily historically gridlock compared to what we might see come january. >> you have a valid point. how we interpret that, i don't know the answer to that yet, but my take, based on how wall street reacted during the elections, uncertainty may return. that is a good thing especially with the market cheap as it is with earnings, shrill slowing are darn good. charles: keith, you're darn good. thanks, buddy, appreciate it. >> thanks, charles. charles: democrat led house could mean reversal of the tax cuts. want to bring in brad blakeman, former deputy assistant to president george w. bush.

they said they will play ball on infrastructure but want to make adjustments to the tax bill. >> president was receptive to democrats passing middle class tax cut. whether trimming corporate tax or high tax rate on individuals, the president said i'm willing to listen. it will not be reversal of tax cuts no stretch of the imagination t may be an adjustment to help the middle class more than the first round of tax cuts. we know historically one round the tax cuts usually doesn't cut it. you need to follow it up as you see tax cuts work. charles: there is even talk of attaching some protection for robert mueller to budget spending or infrastructure. how farfetched is that. >> that ain't happening. if the house does it, they're wasting their time. they know it wouldn't pass the senate. certainly president wouldn't sign it. they couldn't overcome a veto.

more a dog-and-pony show. i don't think the american people like that kind of business. they want congress to get down to business. charles: brad, you can see perhaps some of the elders in the democratic party a little leery about the sort of war, "axios" saying there are 85 different cases they will go after potentially, but the young guard and some of the core grassroots voters, seem like they want democrats to take on president trump. should they try to legislate or just go to war with president trump for the next two years from their perspective. >> we have had the most transactional president in modern times. that's a good thing. he is not stock on ideology. if you want a make a fair deal you have a deal-maker in the white house. you miss a tremendous opportunity not dealing with this president. president understands how things need to be done with divided government. i think he is reseparate is tiff

to them but if you want to ache advantage, not happening. charles: brad, recount in florida and governor's race. your piece, florida election recount fight is like the battle of lawyers in bush v. gore. here we go again. how similar is it? >> it is very similar. the numbers are different. bush won with 537 votes initially. after the mechanical recount, it dwindled to 300 votes. they are not able to make up the browned. we're talking about thousands of votes. tactics is the same, incompetence. lack of security. commingling ballots. seems in 67 counties in florida, the same two culprit, broward and palm beach county can't it right. it is either intentional or incompetence. neither one is acceptable. charles: how do these people keep their job.

everyone talks about how sacred a responsibility this is, how great this was for americans. one of the great privileges we have to live in this country. for them to be able to muck this up every single time or for so long, it is just baffles the average person. >> it is unbelievable. many of these positions are not appointed. they're elected at the local level. they should be removed. there should be procedures followed in place to get rid of these people. we found the courts in this case ruling in favor of governor scott. there is violation of the constitution. there is violation of laws in the procedures. this is not america. charles: brad blakeman, thank you very much. appreciate it. >> pleasure. charles: much more coming up on this monday. 6500 migrants about to embark on the longest and most dangerous part of their journey north. we'll talk to the head of the border and commerce security council. he says the border will be well equipped by the time they arrive.

jim mattis, secretary of state mike pompeo, meeting with their chinese counterparts. i want to know if we're any closer to a deal. oil is in a bear market. opec, they're considering production cuts. looks like oil could keep going down. it is at a pivotal place where it must hold. more on that with more "varney" next. ♪

charles: checking the big board. these are the lows of the session. down 232, 33 points right now. eastman kodak selling the graphic division for 390 million. that stock is up 12% on the session. check netflix. piper jaffray says the company is in position to raise prices. shares are under a lot of

pressure. suntrust lowering price target on the stock for yelp. yelp got smacked pretty good after missing earnings on friday. caravan of migrants headed to our southern border. they left mexico city, starting the longest, most dangerous part of the trip. i want to bring in nelson, commerce security council chairman. nelson, so what's next? what are you bracing for? what is your organization bracing for? >> we're helping private sector really look at ways they can work with the government, border patrol, customs, so forth to get those technologies to the border, insure not only ready for the caravan, are we ready for the future of anyone trying to cross the border. if you think about it, what happened is, this migrant caravan of 4 to 6,000 people arriving in mexico, left for the most dangerous part of their

journey but i think they're heading towards tijuana, mexico, what all indications are looking at. most of these folks going there don't understand what they will hit when they get to the border. they will not necessarily make a run for it. most people on the caravan are folks that are looking for asylum. so they may just get in line or simply turn themselves in to the border patrol. over the weekend we arrested over 1000 people in the rio grande valley, folks turning themselves in. my question is, do we have mini caravans coming all over the southern border at any one time? this is more people coming in a mass. why are they coming in mass? they're looking for protection, because you have cartels, government corruption, sexual assaults, going in mass, going together they will be protected from some of these things. nobody crosses the border illegally without paying the cartel toll. charles: you made a lot of great

points. let's go back. >> sure. charles: you say this is the most dangerous part of the trip. why? >> this is a lot of desert area. a lot is desolate. they have to be prepared, they have to have food, water. there are still hundreds of miles away. what will help them get to the border? sure they will get help along the way, folks that will give humanitarian aid. that is pretty dangerous because there is less population. charles: you mentioned heading perhaps to tijuana. a lot of speculation maybe the caravan is being told to try to cross in california, a sanctuary state. does that play a role in this calculus here? >> absolutely it does. it certainly does. they're welcoming there, not necessarily anything other than that. because it's a longer journey. certainly if they wait until the rio grande valley, hundreds of miles shorter. they would be stop and different treatment in the sense, whether it's a catch-and-release.

because that is the issue is that are they looking for catch-and-release? i don't think you will see a lot of border runners, as folks that turn themselves in to seek asylum. charles: you mentioned the asylum part. if you look back at the asylum data, when you talk about four or six thousand people. we don't get that many asylum-seekers on an average year from central america. does this speak to some perhaps some greater organization here? do you think someone misrepresented to the people what they should expect when they get to america? >> absolutely. we have done a terrible job working with in gos, or governments to inform these people before they leave their home countries what to expect. they're fueled by cartels, innuendo, rumors, simply fantasy. we need to do a better job as u.s. government to inform the folks. therefore they will never leave

if they know what to expect. charles: thank you, nelson. our understanding is much better. thank you very much. >> anytime. thank you. charles: there is this. cannabis company aurora reported revenues. revenues nearly quadrupled. ashley: they did. revenue up 260% from the year before. we should mention cannabis became legalized in canada october 17th, which was after this quarter that we're talking about. this is up until september. it is an interesting snapshot if you like where the companies are. aurora earnings overseas considerably higher compared to the previous year but we have three other canadian-based weed growers, who will be reporting this week. the stocks are remarkably, remarkably volatile as we know. a growing number of people, i say that tongue-in-cheek, growing number of people with the legalization which has been a bit messy to be honest, rollout in canada, once they get it sorted out, there will be,

these companies will be well-placed to make decent money. charles: it seems that way. ashley: it does seem that way. charles: now there is this. actor gerard butler sharing picture of the rubble where his home used to be in malibu. one of many celebrities had to evacuate. we'll head to the weather center. the santa ana winds are preparing to ramp up. check on the big board. dow jones industrial average off the lows of the session. off 240 points. more "varney" after this. ♪ welcome to the place where people go

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charles: quick check of the big board. we came back 25 points during commercial break. we'll take it at this point.

want to go to california where you have two massive wildfires burning. at least 31 people are dead. the winds are expected to get worse throughout the day. janice dean joins us. janice, tell us about these winds. >> charles, they are the santa ana winds and they have been experiencing these winds for hundreds of years across california. here is the setup. we have high pressure across the great basin. the winds flow through the canyons, and warm up and speed up and unfortunately that is the scenario we have today. especially across southern california. over the weekend much of california was under red flag warnings. some of those expired which is great news. the real threat today will be southern california. l.a., san diego, malibu, santa barbara where the winds are going to be compressed in towards the southern california area, and winds could gust in excess of 50 to 70 mile-per-hour. that is like hurricane-force

winds coming through these passes and valleys. so the last 12 hours you can see we have zero rain in the forecast. we have not had rain. we're into a deficit across california. so the drought is extreme here and the winds will kick up later this afternoon, oh night into tuesday. they will relax a little bit. hopefully we get rain in next week. right now, prayers for firefighters out there trying to save lives and protect homes. quickly make mention, i wish i could donate rainfall moving across the gulf coast and southeast. this is an incredible winter storm across the southern plains, record snowfall and record cold temperatures. this is going throughout the afternoon as well. a couple things we're watching. we're watching wildfires, charles, this afternoon things will kick up with ferocious winds. overnight tonight as well. hopefully things will settle down later on this week, a chance of moisture getting in

there next week. charles: we'll share prayers for firefighters. thank you so much. >> absolutely, my friend. charles: later this hour we'll hear from a commander from the salvation army leading efforts in paradise, in northern california, the town was destroyed. he served 17,000 meals so far. i want to know the size and scope of people affected. consumer confidence at decades high. strong labor market. but one area that continues to struggle, housing. i want to flow if that continues. more "varney" next. at fidelity, our online u.s. equity trades are just $4.95. so no matter what you trade, or where you trade, you'll only pay $4.95. fidelity. open an account today.

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♪ charles: all right. always have a little bit of stuart varney in the show whether he is here or not. just check on the big board here. we've been under pressure all day long. i guess the largest decline was down 245. we're holding here. but obviously investors grappling again for something. big tech leading the way, down s&p technology sector, that is your biggest loser, dragged down by the names we talk about all the time and looked invincible all the way up. look at ge. that was inches vincible for a couple decades no longer. it fell below $8 a share. that is the first time since 2009. marc chandler, what is the name of your firm. >> bonnik global. charles: you think we're in wild rides? volatility is here in the market.

>> trade tensions, with problems having in europe. volatility we should expect after the year-end. charles: so the volatility, does that mean all financial instruments? is there a safe haven? is there someplace you go to ride out this volatility. >> volatility in the stock market, but i think the safe place is the u.s. t-bill market, demand for dollars. first time in the u.s. cash is actually paying. t-bills give a yield, unlike year-and-a-half ago, two years ago. cash, dollar cash is a place to hang out while you have this volatility. charles: speaking of the dollar, i think the dollar is the biggest head wind for the market. i think the biggest risk is the fed and their ability to derail the economy, their history of derailing economies, but i think the biggest head wind is the dollar, 16, 17-month high. >> that is what they want to us believe? charles: multinationals want us to believe that. >> many are concerned that earnings growth is peaked that

we had incredible earnings growth. we had nine year bull market. charles: we had that in the first quarter. remember early on the coo of caterpillar said something about the high-water mark. that was concern for the first quarter. certain for the second quarter, a concern for the third quarter. we are talking about the top line impacted severely by the strong dollar even though 28% aggregate growth on earnings. >> the corporations get tax advantages for properly hedging their currency risk. we expect our corporations to manage their risk. interest rate rick, currency risk. i think we'll find for the best thing for u.s. corporates and multinationals is strong world economy. china is slowing down. japan will report q3 gdp later this week. maybe they're expanding. what is hurting u.s. multinationals, weaker demand, much more than a stronger dollar. charles: a lot are talking about weaker demand particularly in

emerging growth countries. beyond that, if the slowing economy and u.s. moat, maybe i don't know if you agree getting smaller why, are central banks taking away accommodation? >> i'm not so sure they are taking away accommodation. charles: 50 billion by the fed. >> by the fed. charles: not including rate hikes. to your point maybe the european central bank hasn't begun but they have stopped with everything else. >> almost anybody who be would qualified to be federal reserve chair, anybody who we've seen from volcker, greenspan, yellen, i think all of them would be raising interest rates in environment. we saw a big jump in ppi end the last week. week before that we saw big jump in earnings growth. charles: big jumps in ppi without jumps in cpi. you talked about corporate earnings pressure, right. you want the fed to react to ppi prices knot being passed on to consumers, that will be a double-whammy for the corporations. there is something to the wealth effect the fed always said they like to do.

if we have a freefalling stock market, that doesn't get them to the wealth effect. >> you make a good point. to the fed's point of view, asset prices stock market is elevated, very rich. i don't think the idea of this powell put. i think it is a powell put. federal reserve has to be concerned about financial conditions broadly. i don't think we're anywhere close to the federal reserve -- remember after february, 12% in the stock market. fed still raised interest rates. the economy grew 4.2% in q2. charles: i think they have to be careful after the october 3rd comments from jay powell the i think people are still jittery. hopefully the next fomc press conference we'll get better insight. consumer confidence is strong. we know the labor market is super-duper strong. everyone is wondering about the housing market. it is under a fair amount of pressure. what is going on there? >> one of the sectors that would demonstrate your point the federal reserve is aggressive on

interest rates, because this is housing starts new home sales, permits, people, mortgage applications, people are signing up to buy a house, all these are multiyear lows, two to five-year lows. we should expect further weakness. charles: how does that happen though? >> partly nine years into the recovery of housing market. cost of house has gone up. mortgage rates are gone up. so less affordable. squeezing some demand, and a supply is coming online, we have to make an adjustment. this is part of the late economic cycle behavior beginning to accumulate i don't think is here kite yet. i think it will be here palatable way by the middle of next year. charles: is there a way circling back to the fed, they should not only take this into account, let us know, hey, we do see there is some fragility? some parts of this economy, employment to population ratio. 3.1% wage growth highest in a decade, juggernauts, there is

fragility laced in there, including homes. i agree with you, probably home prices grew too fast. by the same token getting back to the wealth effect, nothing makes us feel richer that homes going up in value. that will get us out to the malls and invest to start businesses. i don't know that the fed wants to risk that free-falling much more? >> i agree. the fed is in awkward position. can't help prepare rate hike in december to say we have weaknesses. they pout out weaknesses in the latest fomc statement. talk about business investment. fed says we'll approach neutrality and, approach neutrality and pause. my guess is -- charles: they don't know what neutrality is. >> the market is telling us one or two more rate hikes away. charles: that wouldn't be too bad. we could live with that if that ends up being the case. we covered a lot. want to say thank you. you're really great. come back and we'll take the discussion up again.

>> thank you. charles: president trump just tweeting, quote, the prospect of presidential harrassment by dems is causing the stock market the stock market big headaches. the dow off 260 points. to that, want to come back to the wildfires in california right now. joining us on the phone sacramento's mayor, ivan wild, salvation divisional commander major. you have been leading efforts in northern california. we want to get an idea from you the size and scope of people affected so far. >> currently the salvation army is serving about six sites. served about 13,000 meals to those in need. it is just, it is really devastating what has really gone up there, the whole city of paradise has been evacuated and misplaced. quite traumatic but salvation army is there currently serving, offering hope and compassion.

charles: major, we're hearing that you know, these fires are getting worse and worse and worse. i know that feels like first-responders are prepared. they have got a lot of practice. the salvation army, how prepared are you for this and how are your supplies holding up? >> we prepare all year-round. we do have local salvation army units in most cities. so when a disaster happens they're able to deploy really quickly. we start serving, helping first-responders and serving them as well as anyone that evacuated. all year long we're in training. we have volunteers and groups training with us. we just try to do the best we can to prepare and, generosity of the community starts kicking into gear. we're able to put those into good use for those in need. charles: are your supplies holding up right now? no way you could have, no one could have seen this degree of carnage in such a short period

of time. >> we do, obviously resources start to run thin. so obviously monetary donations to the salvation army is very, very helpful. the community is gracious and difficult people are giving, in kind donations, we're able to continue to stocks all the sites we're feeding people three meals a day. it is just amazing the generosity of those that are willing to give to help the salvation army. charles: major ivan wild, salvation army divisional commander. thank you for the work you're doing. thank you for taking time with us. we appreciate it. >> thank you. charles: we'll stay on the wildfires throughout the program. more than six thousand homes have been destroyed. i want to know what it will take to rebuild. we'll ask the president of the national association of homebuilders next hour. first, ba be bob reporting blowout numbers from the singles day. we're hearing about the slow down in china. if so, how do you explain $38.4 billion in 24 hours?

♪

♪ ashley: in the last hour market watcher jim awad told us despite some negatives, most signs point to a strong market next year. take a listen. >> we don't have conditions for a bear market. the credit markets are still in good condition. you have growing economy. growing revenues.

growing profits. buybacks, you have mergers and acquisitions, on the other hand you will have more difficult earnings comparisons next year. you're seeing a slight diesel is race of number of companies beating expectations. you're starting to see a little bit of profit margin pressure. tightening liquidity as interest rates go up. the atmosphere in washington could be pretty nasty. you're in sort of a standoff. the odds are that the positives will prevail but it will be a struggle. ♪ ♪ ♪ ♪ ♪

comfort. what we deliver by delivering.

charles: check the big board. now off 268 points. we're near the lows of the session. meanwhile president trump just tweeted the market is down quote, on prospect of presidential harrassment by the democrats. we hit a new low right after that. apple is the biggest doing after suppliers cut their forecast. now this alibaba singles' day brought in record $38.4 billion in just 24 hours. we have michael pillsbury, author of, the 100 year marathon. michael, what does it tell you about the chinese economy? >> i think people think it is good news that the chinese economy is stronger than we thought. the chinese economy of all stresses they're getting ready

to make an offer to president trump. they meet in just 17 days in buenos aires. the offer hasn't come yet. they're acting like they're dealing with a position of strength, charles. that surprises me today. they have a number of messengers coming. they met with henry kissinger a couple days ago. they have the billionaires summit what they call knit singapore. those people coming back with messages. it is messages of the strong economy in china. we will make an offer, but we may not make it until the last minute just before buenos aires begins, the g20 begins. charles: the alibaba number is impressive but the rate of growth at 27%, well below last year, 39% in 2015. they grew at 91%. on friday overnight we heard the auto sales were down for october. this could be the first year ever their auto sales are down. >> right. charles: we know some other things, they're forcing banks to

buy corporate debt so they have got some serious issues, no doubt about that they cannot avoid those serious issues, can they? >> as you know, charles, they have the power to conceal the really bad news. so some of these statistics from my point of view are suspicious. what they are trying to do in terms of president trump is project the image of strength. whether that is really true is hard to know. you things you cite are quite important. i think their foreign exchange reserves, however what they're banking on. if they have something like 3 trillion in foreign exchange reserves, this gives them a huge cushion that frankly most economies of the world don't have. charles: let's point out they had 4 trillion two years ago. spent a trillion propping up their currency. >> that is exactly right. charles: the idea it would be going down would be kind of crazy after spending a trillion dollars.

i wonder why i was only one thought this was a olive branch. friday morning, china allowed american express, gave them okay 50/50 joint partner to build a network. this was promised in 2012. all of sudden they do this with american express. i thought that was a olive branch. a small sign if you will going into the g20 summit. >> this new number about how many services they're going import over the next five years. charles, i think you heard this number, it is 2.5 trillion. if you're goldman axe or want to do mergers and acquisitions in china, 2.5 trillion in services how much of that will go to the japanese or the europeans? americans want a bigger that of that? that is one of their numbers. they have dangled some other numbers recently that imply a state-owned enterprise reform. they're now saying stop 13 state

owned enterprises will form new partnerships with foreign companies to try to make more cooperative agreements around the world. charles: right. >> they have a series of these things we're seeing today, that americans are coming back from these conferences. there is one in beijing a big one in shanghai. another big one in singapore. everybody is bringing back these carrots that please, president trump, don't put the tariffs on next year because look what american companies are going to have waiting for them. but as you imply, this may be a trick. we don't know if they're really going to do this. charles: i got to go just real quick, michael, do you think we'll get a deal or at least the major steps towards a deal at the g20 summit or is it too early to know? >> will depend how tough president trump is and how seriously he takes his promises to his base. that is what is going to come down to. charles: goldman sachs and wall street interests are not

the same as his base. >> exactly. thanks, charles. charles. oil in bear market territory. opec says they're considering production cuts. sure looks like oil, if something doesn't happen it will keep going lower. i will ask the ceo of a oil field services company what he is preparing for. ♪ cancer is relentless, but i'm relentless too. mbc doesn't take a day off, and neither will i. and i treat my mbc with new everyday verzenio- the only one of its kind that can be taken every day. in fact, verzenio is a cdk4 & 6 inhibitor for postmenopausal women with hr+, her2- metastatic breast cancer, approved, with hormonal therapy, as an everyday treatment for a relentless disease. verzenio + an ai is proven to help women have significantly more time without disease progression,

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charles: check on the big board there. dow at the lows of the session, down 319 points under a fair amount of pressure obviously. also oil, want to get back to that now because it is fractionally higher today but it is in bear market territory. we hear opec is considering production cuts. i want to bring in dan eberhardt. can oil keep going down from here? >> i think it can keep going down. i think we have a supply gut. but opec and russia are rapidly trying to put a floor under the price. charles: what happened? because the story was, the conventional wisdom maybe five weeks ago that when iran went off-line crude, west texas intermediate would break through 75, 100 was right there, it was

going to happen. wall street loaded up. all the smart guys were in the oil stocks. seemed like it was inevitable. libya production is shaky. venezuela can't pump oil because the machinery is bogged down. only thing was slammed was price of oil. >> everybody got dressed up for a party that didn't quite happen. in fact the opposite. russia, u.s., added million barrels a day to production last 90 days. two million barrels in production last two months. it is too much oil. everyone thought iranian sanctions would come to zero and tricked opec and came out with eight waivers, looking only production down 300, 400,000 barrels a day. way less than the market expected. so we have supply glut. a wet blanket on world economic growth and trade war, that kind of stuff. a recipe for a bear market that came out of nowhere. charles: so, oil self corrects

all the time. one of these commodities when it gets too low, it cost as certain amount of money to produce it. are we getting to the point where it becomes too expensive to produce at least for some american producers? >> i think we are. we'll still see, the last week, the baker hughes rig count went up by 12. production in the u.s. and production in the u.s. is surging. for me the really interesting thing opec has to decide do they cede market share to u.s. shale and trim production? charles: is that their choice? feels like we've taken control of this. i call oil a great american story now. >> there is a shale shocker right now, it shocked the world but i think opec has to decide if they want to cede market share to shale or want to cut production and try to put a floor under the price. charles: what do you think? >> i think ultimately saudi arabia will try to put a floor under the price. what my contacts are telling me the rest of opec is furious at saudi arabia and blames them for the supply glut that is

happening right now. charles: khashoggi incident had something to do with that, didn't it? dan, thanks a lot. appreciate it. >> thank you. charles: next hour, honoring our vets. applebee's serving one million vets meals. i will talk to zane tankel. he owns dozens of applebee's. it is a wonderful thing. the company also had a blowout quarter. the third hour of "varney & company" straight ahead. ♪

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charles: at 11:00 a.m. on the east coast, 8:00 a.m. on the west coast airtime charles payne and here is what we are watching. money in politics. first her money. dow jones industrial average up 325 points. apple the big drag right now. several suppliers cutting their forecast down as apple shares. oil also in focus. a bear market right now despite

gains this morning dropping 10 days in a row to gasoline has come down with it and opec is considering production cuts. politics that democrats might tie their support to the spending bill to legislation that would attacked robert mueller appeared in california deadly wildfires continue to rage on. we'll have the latest threat to program their starting with the mayor of paradise. all of that and much more. the third hour of "varney" just getting started. ♪ charles: first, check your money. you can see the dow just a handful of stocks that appear goldman sachs now the biggest loser the stocks overall the nixon triple digit loss. joining us now, fox news contributor scott martin. i'm saying the federal reserve is the biggest risk to the market into the economy right now. what do you think?

>> you're pretty close, charles. federal reserve may be public stock enemy number one but there are some others and is frankly the markets move really. the fact that psychologically the market is not in good shape and this goes back to i think maybe early november when you had some of those nasty reactions to good tech earnings. netflix adobe come to mind with america's team to take the news well. to your point tommy mixon a fed that is i believe going to be at least 10 have to say the data is coming out are the data is getting hotter. inflation data picking up a bit on the wages and so forth. that's another player in the market seems to be affecting psychology. charles: we had a pretty good week last week with the dow. nice bounce back and it felt like we were getting some equilibria. what exactly what the market need to see to sort of resume the upward climb?

>> i hate to say this and being a traitor like myself and money manager, the market needs time. it needs time to recover a bit from a lot of the explosive event that it happened. look at this. a couple of recounts going on. last week was a big way. the market ran up really fast and kind of fell back early fast. maybe i've wrestle little bit. i think some time to just digested maybe just at least that allowed us to where we are, and where we are in the charts. you know is a list i do, and the s&p is a pretty big level to watch. the market is to take a breath or two and figure out where we are and where wants to go. charles: do think we have to test recent lows to confirm the worst is over? the retesting among the lot over lead to more downside and it also, scott committee on the charts, looking at goldman sachs i cannot understand why the

financials have been such underperformers and i wonder if there's some canary in the coal mine with the entire economy. >> there could be peered financials is a great point. how many times, not so much you and me, but how many times have we heard on other media outlets or other experts talk about this is the year for financials. this is a appeared rates are going up in financials will make it happen. i just don't see it. the settling for nevada's financials having carried the market for years though not totally sure this marketing financials to start carrying it although i think the market -- charles: i'm glad you brought that up. if tech doesn't need a come at the big names that carry communication services, consumer discretionary and tact, those names falter. what can carry this market? >> unlucky not to areas that we started adding to people in the cut for a long time which is health care. that's been pretty strong in industrial spirit at some point industrial sector perk up whether it is china trade deal

or just on a valuation basis looking at say cat and deer and some of the names for ourselves and clients picking up on the lows. those names have to start perking up here the problem is that some of these industrials and multinationals even pointing out all morning to dollar, the u.s. dollar is so darn strong. a lot of revenues for companies companies i just mentioned are reversed or use them and they get repatriated to blasted because of the current day. that is another head when that's perked up the last couple months. charles: technology down to 20%. s&p tech sector and it finds there, juniper networks, paychecks, these are necessarily household names at apple the biggest name in over 20% of the index. you brought up the point that we need time. this feels like a market that's not going to just drift. it is moving violently even to the upside or downside.

that the fear, not. if nothing intercedes here, new lows to get new lows, but at the pace were going, we are talking about at some point major panic. >> i don't know for going to see panic i do think you're right. usually selling begets more selling as finding out more buying a set the right way to say that last wednesday after the midterm elections. here's the thing to consider if you're playing at home. coming up to a thanksgiving holiday week. some of the volume has not been impressive. that's probably sellers, whoever pushing it down a weak volume market which is easy to do and something that means there's no conviction in the move. however if you look at next week the volume will not be strong either. see how it pans out between thanksgiving and christmas is key able to the volume come back and that's when you have to have conviction one way or another upside down.

charles: thank you. always appreciated. senator charles zimmer said they may tie their support for the next spending bill to legislation that would protect robert mueller. fox news contributor lisa boot. looks like they're playing a game of chicken here. >> and we'll see how it goes. look, democrats are going to try to leverage their new majority next congress to try to get some extractions particularly in some of these ending type in the question will be whether republicans willing to give considering the fact they have majority in the senate and the white house that that's the question on what to watch. i would remind people in january when president trump refused to cave to demands that chuck schumer emigration. we do have a different president in the white house he might say fine, shut it down and play that game. that will be interesting to see how all this stuff plays out. charles: the dems did link and chuck schumer got a lot of lame.

what about this whole notion that the democrats are ready to go to battle with president trump? there's a reportedly citified trump investigation targets. nancy pelosi singing with respect to mueller might not be an indictment that the work that is working on. it seems like they're really eager to fight president trump rather than legislating get things done. >> i would love to have a positive outlook on what is going to happen over the next two years under a democrat controlled house. but i think i'd be lying to people if i said that. it's going to be a complete disaster. you'll have maxine waters going after his tax return. business dealings, elijah cummings had oversight which really has broad authority to look at everything. jerry nadler at the judiciary committee are mollie hemingway reported she overheard him talking about impeachment of justice, not as well as president trump.

you know, it is going to be a war over the next couple of years heading into the 2020 election and they're going to leverage the house majority especially various committees to do an about edition after investigation it's going to be a mess. sorry. happy monday, everyone. see you later. great seeing you. thanks a lot probably said. an official recount is underway in the governor's race between republican ron desantis and andrew kill him. desantis has a lead of less than half a percentage point. the senate race even closer. rick scott has a 0.14 percentage point lead over democrat incumbent l. nelson. nelson and scott have both filed lawsuits. got his and also trying to commit fraud to win the election. county election. county saves a thursday deadline to complete the recounts. individual stocks will take a look at alibaba brought in nearly $31 billion on their

single state that beats amazon prime day. in fact, they be given 10 minutes. aurora said its revenues went up nearly 400% in the last quarter. stock was higher to open. though her right now. we've got to check ge down about 60% from its 52 week high. the most valuable stock in the world. three wildfires burning in california right now. the most destructive one is the campfire in northern california devastating the town of paradise. up next we'll talk to the mayor of paradise. a seven-year high. applications fall to a four-year low. the housing market seems to be one serious area in the market. the economy continues to struggle. my current caravans have left mexico city and has grown to more than 6000 people headed to our seven border. we do have an update on that coming right out. today, "varney & company" would like to take a special moment to

thank our veterans for their service. stay with us. much more "varney" ahead. ♪ every investor should ask questions. is our money in the right place? what am i really being charged? and is it eating into my returns? is my advisor a fiduciary? is he always a fiduciary? a good place to start is with an independent registered investment advisor. as fiduciaries, they live by a simple rule: always act in the best interests of their clients. that's why charles schwab is proud to support more independent financial advisors and their clients than anyone else. visit findyourindependentadvisor.com

charles: three wildfires burning in california right now to the most instructive one called the campfire in northern cal of finance devastating account of paradise. 31 people have been killed in these fires, most of them from this campfire. thousands have been forced to evacuate about 200 people unaccounted for. jodi jones, the mayor of paradise. thanks for taking out the time. >> you're welcome. good to talk to you this morning. charles: can you bring us us

up-to-date how everything how everything is progressing at this point? >> well, in paradise it sells, working with other first responders at cleaning up kind of the mess that is there. there's a lot of trees down, a lot of debris. i know they have snow plows and front loaders up there and they are just trying to make it safe so hopefully in the near future we can let people go back in to view their properties if their houses burned down or to get some things out of their homes if they are still standing. charles: we understand that the town has for the most part been destroyed. just devastated. california unfortunately is dealing with these fires more and more these days. this certainly, i'm sure you've never seen anything like this. >> i never have seen anything like this.

i do want to say we are not totally destroyed. i would say 90% of the home were burned, but her business is maybe 50%. we still have all the police department, fire department, library, hospital, high school, grocery stores, hardware store, starbucks also there. charles: and you still have a mayor. we appreciate you coming on. jodi jones. we will reach back in touch base with you to check on you. thank you for spending the time this morning. >> you're welcome. have a good day. charles: let's stay on the fires in california. jerry howard is in the national home builders association. the question of course is these fires obviously going to require a tremendous amount of rebuilding. how expensive is that going to be? >> you're looking right now first of all the biggest expense is time. and by the way, obviously like everyone else our hearts and prayers go out to everyone.

it is going to take time. once fires are contained in overweight there has to be a lot of investigation that goes on from a gubernatorial or government level and then it goes down from there to the insurance inspectors. every individual homeowner has individual insurance policy. they have to come in, be inspected in the money has to be given out. once the money is given up a contract with a contractor paid the contractor has to then hire laborers, get building materials. it's a long-term process and it's very, very expensive. the expense of common labor shortages. the expense and building materials are higher than they've been in now mortgage rates are going back to. it's a triple whammy for these poor people. charles: let's talk about the overall housing market conservatives market rate. elected the housing market were showing signs of vulnerability before the rates are not. certainly since they've gone up. i guess there was a school of thought that the fence sitters

at the vet and leap into but that hasn't happened. applications are down to our rates are up in the housing market seems to be in a lot of trouble. >> i won't go so far as to say it's in a lot of trouble. i will say we've revised our forecast down a little bit. we don't think will make 900,000 units this year. we need to be making a million to 1,000,002 in a normal year. we are getting hit at both ends regulatory burdens, and cause, the issue of labor shortage building material costs. the fragment of the pipeline and now you're going to charge consumers more at the backend. it's a very, very touchy time and unfortunately we expect the fed will raise rates again twice next year. >> i wanted to bring up real quick the dow is off 404 points. i've been talking about the fed and the speech that was made on a sober third that i think triggered this massive amount of selling the stock market.

how much of the fed be listening to the stock markets? what kind of? should they be taken on what's happening in your industry? >> that's a great point and we meet with them periodically and hope they listen to us right now. we are treading in dangerous water right now. we look at the impact on the housing markets in the overall economy before raising rates again. >> it's always great talking to you. thank you very much. the dow jones industrial average a moment ago was 405 points. the low of the session. checking on the price of gold hanging in there, still above 1200. of course you also have to take a look at bitcoin holding about 6300 right now. and then there's oil. checking on the price of oil. opec is considering production cuts. that's a little bit of support under the price there.

meanwhile, gas prices continue to go down. national averages $2.69 a gallon. and now there is this. one school has booted harvard as the nation's best business school. harvard is now third in fact. take a guess at what school is now ranked number one for business. we will have the answer for you next. ♪ [ phone rings ] what?!

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charles: before we went to right, top business school in the morning. they booted out of the top spot. looking at factors like job placement after college, lunch premiership and networking opportunities. university of pennsylvania wharton school, president trump's alma mater number to harvard, number three followed by columbia come m.i.t. school of management rounding out your top five there. police are training officers to use but the department got this one for free to use it for training.

it can cruise at a maximum speed of 60 miles per hour. the biggest screw ship made its american debut. royal caribbean symphony of disease. the $1.35 billion ship has 18 decks, 22 restaurants, can hold 6700 passengers. the ship is now in the middle of a four night voyage to mexico. and now bears. we often talk about the restaurant industry as an economic indicator. if you're eating out obviously you've got a little bit of extra pocket change. listen to this. appleby is coming off its best quarter in more than a dozen years. is this a sign that consumers back? runs a few dozen of these applebee's in the new york metro area. we also talk about oil here drop down 10 days in a row. i want to know will be as prices continue to go down. the markets are down right now near low the session up 402 points. stay with us.

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charles: check in the big boards goldman has replaced those financials are getting waxed in a not quite sure why. the s&p 500 addict rednecks. the upside down to .7% leading the way on the downside. mike murphy joining us by phone. when you think is behind the selloff? >> it's really interesting. kind of picked have been here recently. apple definitely guarded it today but there's been some uneasiness creeping back into the market. after the big rally late last week people are finding another reason to sell again. a lot of uneasiness out there right now. charles: apple momentum was one of their suppliers and

iphone's. but there's other things out here in financials are goldman down merrill lynch and morgan stanley is down. bank of america is down. i don't quite understand why these financials which have been underperformers seem to be collapsing right now. not a good sign. >> completely agree. if you take goldman out of the picture, i wouldn't call it a collapse. morgan stanley down almost 4%. bake for -- bank of america, jpmorgan known two, 2.5%. he pointed out financials have not been the growth area so far year-to-date. the selloff we see today creates a buying opportunity but i wouldn't be jumping into the financials yet. i'd be looking at something like apple. apple down here is really interesting. will be buying the stock today. charles: we always appreciate someone who comes on and gives it to us straight. countercyclical you give us the name michael and we appreciate

it. thank you. >> buy low, sell high. >> i've heard that one before. appleby is coming off the best quarter in more than a dozen years. sales up 8% for the period july to september. our next guest runs a bunch of applebee's in the new york area. ceo of apple metro joins us now. first of all, congratulations. is this a good proxy for the american consumer? >> i'm not sure i think applebee's is in it done based within the restaurant space and we were so bad. we were so terrible about a year ago, two years ago but any kind of turnaround over the comps is a big deal. what we learned was you've got to go back to what made you great. you always leave the dance with the girl you brought. we took a marketing strategy trying to attract the millennial, smaller appetizers,

anti-woodfired stakes in the strategy was all flawed. it was wrong. appleby has continued to figure out how to throw money at it instead of what is plan b. charles: plan b ended up being original plan a. >> they fired everybody that have a strategy. charles: but there is something to be said of raw when americans are to go out. it's not only an economic sign. it's a sign of confidence. >> clearly a barometer. it drills down bigger than that whether they ordered an appetizer, entrée, et cetera, et cetera. you can really pull this stuff apart and figure out where the economy is going. charles: you're also an oilman. crude getting crashed. >> canine. charles: we are hanging on. >> i think it goes the other way. there's a lot of reasons. i went to wharton with the president. not with the president.

i wasn't as smart. charles: you agree. a little ahead of the president you look great. in any case, the reality is i was starting to say wharton put five economists in a room. and maybe you one. the oil business if we had a few hours i could tell you more about it. the president put a lot of pressure to pump oil. they've now announced as you probably know they will cut oil starting this next month of december by a half-million barrels. then there's libya, which is in total disarray. as we are talking now in palermo meeting about china to get this country that's fractured together. let me ask you again for the global economy.

i want to get this in with you. as a proxy for global economies. should we see this as a red flag? thank you for it much. charles: back to the wildfires in california. one northern california, to an southern california. could be days before they're fully contained a strong wind continued to fuel the fires. claudia cowan is live in paradise, california. what is the latest from where you are? >> you know, charles, the name used to be fading but not paradise looks more how virtually every angled building here on the main drag has burned to the ground with the grim recovery effort underway as officials tried a locate more than 200 people listed as unaccounted for in the butte county sheriff says the death toll which stands at 29 could very well rise.

when you see what is left in some neighborhoods here in paradise you get a better idea of why there have been so many problems identifying the victims. some bodies are burned beyond recognition. authorities have called in a mobile dna lab and a team of anthropologists is in some cases the only remains our bones and bone fragments. authorities may be asking relatives to provide a dna sample to help identify the dead. a massive fire fight being waged by more than 4000 cruise battling the flames from the air in on the ground at 113,000 acres are the campfire is bigger than the city of wichita, kansas. with the massive spiral that grew by thousand acres overnight and is now 25% contained and no new evacuation orders have been issued that is an indication the firefighters are keeping the leading edge of this fire away from populated areas. still a red flag warning has been extended today and there may be deaths of between 30 and

40 miles per hour. very dangerous extreme fire conditions remain, charles. this is not over yet. charles: thank you very much. really appreciate it. back to your money our next guest is big in the real estate world. he's not worried about gridlock in d.c. disrupting the economy. our fundamentals are strong. bob, chairman of investment sales such aol. you say the commercial real estate industry is still in pretty good shape? it is, charles really is. the underlying traction has been great for the underlying fundamentals of real estate whether it's gdp growth, job growth, wage growth, consumer spending, consumer sentiments are all things that really enhance and exert upward pressure on the underlying fundamentals in our industry. charles: it feels like in certain cities, commercial real estate under a fair amount of pressure. new york looks vulnerable to me. going back to the bank of ozarks

are earning support i know they were like the third-largest mortgage provider this year. something like seven or $8 billion. a huge miss but their provision for loan loss went up 400%. they are bracing for something ugly. do you see any problems, any cracks in this at all? >> a majority of the long bank of the ozarks were made were in the construction space yet their loan-to-value are very conservative so i'm surprised to hear that analysis of them. generally i think the real estate and is heard is very location driven. certain cities have different dynamics than others. i feel good about where we are. in the end estimates sales space we are 30 months into a correction or volumes of sales have been falling for four years in a row. value is down slightly but not nearly the way it was down in the great recession. so the fundamentals are very

good. charles: the second play, i remember the recession it was real estate. that never came so that was the good news. i want to shift a little bit because you also watch the market and we know amazon, google goes looking for major expansions in new york city bring in thousands of jobs. but why? why would they choose a high-tech city like new york russian markets at only about the talent or something else? >> there's a reason why some people pay $200 for a bottle of wine and some people pay 10. it's very expensive to do business here. taxes are among the highest in the country they get there so many benefits of new york and the lifelong new yorker and very pro-new york obviously. so many different reasons to be here. the human capital is extraordinary. health care system is very broad. the cultural benefit -- new york

has over 26 years i ran a business here. i was shocked every year the overwhelming majority of the resumes we got were from people outside the new york area that wanted to come live and work here. as long as that continues new york is a great place to be. charles: bob, thank you very much. the dow was up 443 points right now. there is a bright spot. if you still own the stock is it that flexographic packaging for 390 million bucks. netflix. the position to raise its prices not helping the stock today but it is intriguing. yelp down after they lowered the price target on the stock to 35 and 51. of course it was crushed on friday. more in california. a big housing crisis and governor elect gavin newsom pledging 3.5 million homes in that state by 2025. up next, our voice of reason

from the golden state, the one and only, larry elder here in new york. my great caravans while they've left mexico city and i've grown to 6000 people and are headed to our southern border. an update on that in 90 seconds. we want to take a moment to honor our veterans and paint them for their service. more "varney" after this. ♪ hey there people eligible for medicare.

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and when you travel, your plan will go with you - anywhere in the country. whew! call or go online and find out more. ashley: now an update on the migrant crisis through the caravan made up about 6000 people attended to her southern border. earlier we spoke to the chair of the border commerce security council. roll tape. they might this migrant caravan of 46,000 people and left this morning for the most dangerous part of their journey. i think they are heading towards tijuana, mexico is what all indications are looking at. most of these folks that are going there unfortunately don't understand what they're going to have to make it to the border. they are not going to necessarily make a run for it. most the people in this caravan are folks that are looking for a silent. they may just get in line or

turn themselves into the border patrol. over the weekend we arrested over a thousand people in the rio grande valley of folks turning themselves in. some. not necessarily wrapped with paper and bows, but gifts of kind deeds, hard work and cold toes. there's magic in the air, on this day, at this time. the world's very much alive at 11:59.

charles: check the big words. stocks down more than 400 points this morning. scott shellady on the phone with us this morning. >> i don't think there's any new news out there.

we've got a holiday in our hands. apple's demand issue. i still say this. the first reason we sold off a few weeks ago i think you're right he was part of it. there hasn't been any new news, so understand this, we might see the technicians try to take control today. not the fundamentalists. technicians will shoot to numbers on the downside is i wouldn't be surprised if you saw us go a little bit further. charles: that means retesting recent lows. >> yeah, we have the nasdaq down for some levels but the dow and s&p were little bit lacquer is when it came to how low they got. that's kind of the top there might be some work to do with those other two industries before we can call this healthy and get back to business as normal. charles: good to hear you're not too concerned right now. >> not at all, not at all. charles: things are hopping on the phone, scott. appreciate it.

back to the fires in california. nationally syndicated talkshow host. these things seem to be happening so frequently, like almost every year. >> that is the question, why are they happening so often and why are they so severe? donald trump is hammered by the firefighters for suggesting there was poor land management. but he's not wrong. a former california lawmaker in july and predicted this is going to happen. because the regulation, those in the obama administration there are fewer people in the forrester business. more trees, thicker, dead trees not been cleared away in providing a lot of combustible material for these fires. >> some of the land owned by the federal government. a hands-on approach, perhaps even taking an action as well.

>> is getting worse every single time. why is the fed in every other state. why don't we have a selloff and so the federal land to the private sector and use that to pay down our debt. for more federal land you have the more mismanagement there is. donald trump is not right when he argues bad forest policy and mismanagement are caught in some of this. charles: we want to ask about california. governor elect gavin newsom pledging to build 3.5 billion by 2025, but some say it's an impossible goal. >> not only as an impossible comments about goal. when we look at the homelessness problem in l.a., almost half the people there, those living in hollywood in the website come from other places. you provide 3.5 million homes to people who are homeless. a whole bunch of people coming in from other states in

california. the problem with homelessness is a lot of people are mentally ill, how drug and substance abuse problems. they need treatment and there is an sufficient money for the treatment. >> 3.5 million homes has to have money. a lot of them are also veterans. >> i would rather be spent for treatment of mentally ill people rather than building homes. the idea is to give them a position so they can become dependent and get their own homes. it's a real problem. nobody knows the answer to it other than the more you make it easy for homeless is to occur, the more homelessness to get. >> now the election is over. i was looking into a lot of these tax initiatives around the country and i was shocked how many were shot down. state after state they know thanks to higher taxes. state after state say no thanks to renewable energy. only one day standing up like we need them, baby key. give us these high taxes.

he's got a believe this income inequality crisis in your state is only going to get worse as they continue to have a tax regime that really means you have to be very poor to live in california are pretty well off. >> absolute right. i spoke to an economist who did a paper on the housing crisis and he said the rules and regulations, zoning ordinance at 50% to the cost of house. that is substantial. he says it's all because of left leg politics. gavin newsom wants to have a single-payer system. i've got a two-step solution. keep the illegal aliens, support the democrats. >> no wonder your most excellent in over 300 markets. thank you very much. appreciate it. up next, joined by the man who represents the biggest tech companies in the world. we're talking amazon, google,

facebook. these companies want federal regulations and privacy. it is true. he is next. ♪ at upmc, living-donor transplants put you first. so you don't die waiting. upmc does more living-donor liver transplants than any other center in the nation. find out more and get out of line today.

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trantor next guests represent the biggest tech companies in the world and we're talking google, amazon, facebook. he says these companies want a new federal regulation and privacy. michael beckerman, president and ceo of the internet association. michael, what kind of privacy are they talking about because it's hard for most of our viewers to believe particularly with some of the arrogance on display, washington d.c. caused it big and they donate then bother to show out. >> or companies at the world leaders in protecting individual privacy is. people trust and value platforms and it's important we in the united states have state-of-the-art world leading privacy laws that protects all people both online and offline. when you look at the internet today, lot of trans errancy control the platforms offer and we want to have that expanded in control and how people offline

as well and had the united states be a leader not only in technology but in privacy protection for people. charles: can you give us examples on how the new privacy regulation would've looked like? >> absolutely. make sure people have control over data, that there's trans errancy on who has your information, how it is that the news coming should be loaded delete information between services, but ultimately people be in control and you should not be surprised who is using your information both online or in the physical offline world. charles: people who have controlled this data also maybe get a piece of the action. >> i don't know what you mean by piece of the action. charles: if you're selling my data or leveraging data for billions of dollars, can i get 1%? >> we want to have business models and so when you look at services used online today, some of them are subscription-based.

some of them are free services that serve advertisements. and so you want to have any kind of business model people have an individual should be able to choose. a lot of companies are not aware of like data brokers are reporting agencies using information and selling it and you have no idea about that and you should be back in control like you are with the online platforms to represent. charles: before i let you go, will your organization submitted a formal request with the specific items to congress and this administration? >> absolutely. vivaldi released detailed principles and are working every day with the white house and leaders in congress to make sure this gets done. we are serious about making sure protections are put in place and signed by the president. charles: we appreciate your efforts and appreciate you coming on the show. thank you. folks, more "varney" right after

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charles: dow jones industrial average is off 400 points. biggest s&p loser is technology sector. ashley, financials are getting hammered. goldman sachs. here is headline out of europe. italy budget crisis. rome dismisses brussels ultimatum, warns eu, expecting the same plan. we're looking at a showdown. >> italians are looking to back off. they have until tomorrow to resubmit a revised budget. italians said good luck, we're not changing it. that could add uneasiness to the multinational banks. goldman sachs is getting hurt.

apple set the tone early in the day. all this adding, mike murphy put it earlier, a lot of uneasiness back into the market. charles: the market under a lot of pressure. neil cavuto, we have a lot of factors here. it is all yours. neil: you just jumped on blaming the italians. you and ashley. forget about apple. forget about technology. it is the italians. ba-da-bing. thank you, guys, very, very much the italians are having a play in this but not nearly as much as apple, a key component down near bear market territory, with this selloff down 16% from highs month ago on october 3rd. whether apple's reporting slowing business, not as robust business is weighing on technology and maybe a preview of coming attractions for retailers, consumers, whether they will be as busy bees as we thought they would be for holiday season.