>> all right. stuart: so you're wrong. >> i'm not. adding to the slight optimism. that is what we're saying. stuart: apple is coming back a view. that is leaving the market back up a bit. only a little. can we compromise on that? connell mcshane is in for neil connell: thank you, ashley. i'm connell mcshane in for neil cavuto. larry kudlow, the economic advisor said the president, president trump, and chinese president, xi xinping will at the g20 talk trade. here he is. >> we are now communicating at all levels. it is pretty clear now that at

the g20 meeting in argentina there will be talks between of to leaders. trade will be included. connell: where that goes from lear is the big question. so far has been another volatile day. up and down in the markets. we have jim awad, ryan payne, fox news contributor liz peek all here in the studio to help us sort out where we are. jim, any little headline on trade will move this market. i think the kudlow comments helped to bring us back from being lower. >> one of the two catalysts that can reverse the market to take us higher. companies desperately want a trade deal but they want one with a little bit of teeth particularly in the area of intellectual property. i would say the chinese want to deal. their economy is weakening as we speak. trump likes to declare victory, go to the edge on negotiation, declare victory. he would like the stock market up, optimism reemerge. the stock market welcomes

kudlow. connell: that is the interesting component, liz, how it might play out. dan clifton wrote an interesting piece this morning about a trade. he had a view that he says is against consensus. kudlow maybe spoke about this a little bit. something actually might come out of the g20 on trade. going in, everyone's expectations is very low. >> sure. connell: the president senses that, is open to cutting a deal, what do you think? >> the white house is driving the expectations down. they don't want the chinese to think this is a done deal. that he is ready to cave to their reluctance or resistance. everybody wants a deal. we have heard more and more companies coming out and saying guess what? this is really hurting our supply chain. we've benefited enormously from the tax cuts, from lighter regulation. you are undoing all that good feeling and optimism and forward progress through the trade deal. connell: that was the point

clifton, ryan was making in his note. in the third quarter we saw, could you see it in the numbers, capital expenditures, growth is not what it was. subpoenas are not planning to spend as much money next year as they did this year. that is trade related. the question if you're the white house, what is to jim's point that victory you can declare to cut the deal if you want to go in that direction? >> i think the markets are shallow so i think any sort of deal that gets made, you could always poke holes in any deal made, even the revision of nafta. connell: yes. >> you can always find something wrong with the deals, as long as both sides can claim victory the market looks strong here. connell: the market looks strong here? i caught liz's face. what market are you talking about. >> not yesterday. >> let me reiterate. the economy is strong and earnings look, very, very good moving forward, i think for all

those reasons. >> we need to get past the headwind, like jim said. connell: how we get there will be really interesting to watch. the other thing happened this morning, larry kudlow in an interview, he did an interview on cnbc before he spoke in the white house driveway he really threw peter navarro under the bus. to market pap pants is important. navarro came out made comments on wall street bankers and the like, since he made the comments the market sold off even more than it had. people are worried saying is he in charge of the negotiations? after today you're thinking maybe he is not. >> that had to come directly from trump. connell: he will say it had to have approval. >> trump will go as far as he can go without jumping over the edge. navarro would have him jump over the edge. this is early stage cancer creeping through our economy in terms of costs and margin pressures. if you can stop it now we'll be just fine. you don't want uncertainty to go

on longer. businessmen will defer spending. defer hiring. connell: right. >> that will slow the economy which is against trump's re-election. connell: who has the best idea what saving face looks like from a u.s. perspective? we always hear from the perspective of the chinese because it is important to them culturally. the chinese when they go into a negotiation have to save face. we have to too especially with this president in the white house. he will not walk out and say, hey, you guys win here. what is the win for the u.s.? >> i think it comes down to intellectual property. the forced turnover of intellectual property in terms of having to have a 50/50 joint vent you are with local partners that has been a huge giveaway to chinese partners. they basically replicate what you're doing down the road. we know that happened a gazillion times. that is the number one thing. they have backed off on that a little bit. also opening their market to new, particularly the financial services area, the amex deal last week where amex is the first company allowed to come in

to set up a credit card operation. things like that would be a win. i think the tariffs, ours are lower than china's for sure. that is a little bit of a marginal issue. i think china could consider a win there, not being having to give up some of those tariff advantages if you will. i think that is less important to the u.s. connell: kind of interesting. we might have a bigger g20 story than we thought at the meeting, at least what kudlow is hinting at. talk about another big story in the market in addition to stocks and volatility. oil, oil is down 12 days in a row which has never happened. when we were on yesterday when it closed we said it was down for 11 days in a row and that had never happened. it continues. we're at 57.52 now. today is a big decline percent annwise. 4%? down $2.42 on a barrel of oil. let's bring larry shover into the conversation out at the cme in chicago. boy, talk about today, and the he isoff we're seeing today,

larry. what's happening? >> what is happening a giant washout. i think a lot of it is people are surprised, opec is surprised by the developing surplus given most it came from them and they were producing at pre-2016 levels. adding on top of that a lot of stabilization come out of libya. that helped the price. let's keep in mind october 3rd we grazed a four-year high. right now we're, oil price is now where it was towards the beginning of the year. that was a workable price where it is still profitable for the united states to develop oil, produce oil and make up for some of that spare production. connell: this is another issue, guys, jim, that the president obviously got involved, been involved in, just about everything, got involved in this yesterday with that tweet. he is trying to talk down the price of oil. it is interesting to see what the saudi arabia do next? what does opec do next? >> right. i think what you're going to see

is some reduction in out put but not one that is so dramatic as to be disruptive to the relationship with the united states. but here is the important point. connell: yep. >> declining oil is positives and negatives. connell: sure. >> you want to watch is the junk bonds, low-rated oil companies that have debt outstanding. if the spreads start to widen, price goes down so much. people start to worry about the viability of the lylely leveraged low quality oil companies in area of rising rates that could ripple through the credit washing net. connell: we're not seeing that yet. >> we're not seeing that yet. one of the things that could hurt, derail the economy and markets, if you get deterioration with the credit environment with fed raising rights. you have not seen it yet. important you don't see it. stabilization on oil prices at these levels would be very helpful. connell: you take, larry, that point about the pros and cons of oil, from a economic point of view being as low or dropping as much as it has.

obviously the president thinks it's a good thing and it helps consumers and gas prices are low and all the rest and others say this isn't a good economic sign. larry, where do you come down on that? >> no, i think it's a good and great thing. i definitely support the president in this. the oil doesn't need to be $75 a barrel. the question mark is, what is the long term strategy for opec is where it gets confusing? i think they're traders. i think they based the meeting, december 6th, coming up based on where the price is today, not where the price will be a year from now. something to watch out for. >> you have kind of two things going on now. you have a short-term expectations problem. remember before this 12-day remarkable selloff you had an increase in oil prices because sanctions on iran were expected to cut production. then we offered seven countries i this it was exemptions from that. those can be changed by the way. that could change the market overnight, right? so i think that's a problem. then you have these long-term discussions like the iea came out talking about how cars

weren't going to need gas down the road. these were long-term views, that oil demand over time will not be as robust as we think it is. look, i've been following this industry over 30 years it is a self-correcting mechanism. basically if oil prices go down much more you will see a cutback in production in the u.s. connell: brian? >> i think made made a good point there, liz. it is very volatile asset class. we're still over 30% over last year with 25% correction. oil is up significantly. going back to china, we get a deal with china is really weighing on commodity prices right now. if some deal gets made at the g20 summit i think that also could push oil prices up. i think opec will cut, that is another reason why the oil will bottom here. connell: iaea put comments to numbers we already knew, the united states is a bigger and bigger player in the production of oil and gas.

the u.s. is expected to produce half the global gas and oil put out by the year 2025. larry what about that perspective? national security people brought it up. also the reason it is happening all the fracking going on in places like texas, for example, in west texas. you know, those guys that are in the fracking business, they need a price that doesn't fall too much, right, in terms of profit margins in order to make money? so there is a balance here. you don't want the bottom to fall out, do you? >> no, you don't but also lower prices do help with ingenuity about getting out of the ground cheaper, better. but to your point about producing half the demand growth in the world that's an admirable goal by 2025. i just don't think we'll see it by 2025 and i hope i'm wrong. connell: right. >> but that, yeah, that said, i think we're a long way off. connell: all right, guys. good discussion to start us off. i think the dow is higher,

right? only jim awad knows what it will do at the end of the day. >> oh, at the end of the day? i wouldn't be so, i have no idea but my guess is, my guess is the long-term trend remains moderately positive but if there are risks, it is to the downside. connell: that said -- >> i'm not trying to hedge. but i also know what i don't know. connell: how important is that? people should -- thanks, guys. we'll move on. there are other things to cover beside what we've been talking about in the markets and these devastating fires out west are certainly one of those things. this, one of the fires is the worst in the history of california which is obviously saying something. we'll continue to cover that. the destruction that is going on in the state of california, a live update from there coming your way next. we'll be right back. alerts -- wouldn't you like one from the market

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connell: we have an update from california. the camp fire is the most destructive in the state's history. estimated $19 billion in damage and 40 dead so far. we have another large wildfire we're monitoring in the southern part of the state. captain tony aprenda from the los angeles county fire department joins us now. so-called woolsey fire we've been trying to keep people

updated on. captain, give us the update where you are today in terms of progress being made or lack thereof. >> we made some significant progress. we had a very severe wind event, you guys know, was broken up into two parts. the first one kind of rolled into the area on friday, came through the weekend. we had it calm down for about a 24 hour period. it really picked up again over the last 48 hours. so moving into the next day, it should start to die down a little bit. that is the primary issue we're dealing with, wind driven fires are difficult to control. we can't get out in front of them to stop them per se. what we do, we try to utilize tactics like utilizing terrain features. dropping phos-check and trying to direct the fire into areas where we can have the best chance of controlling where it goes. connell: right. i saw a figure, i believe it was last night on thattic r -- that

particular fire containment was around 30% s that correct? is that updated? have you made more progress? >> that is correct as of last night but right now, we're, we got aircraft out there mapping the fire and we're going to be having a press conference at 11:00 a.m. we should have some updated containment numbers at that time. the forward progress of the fire has been pretty much stopped at this point. we are really in the process of putting in containment lines for the next one or two days. connell: that will be 2:00 p.m. eastern time, under two hours from now. hopefully those numbers, as you say are improving. describe, take me through the next few days. you're saying patterns are changing, wind patterns are changing. what do you expect? today's tuesday. so wednesday, thursday, friday, what are we looking at in terms of progress you guys might be able to make? >> right now the santa ana wind

which is very dry, hot, offshore wind that is very typical for this region, in the fall, it comes in cycles. usually last a few days. this cycle has been a little longer. it is in a diminishing phase. as we move into wednesday, we expect the offshore flow to start to diminish. we get more typical to california which is onshore flow. it has a lot of moisture from the ocean, it brings onshore. really give us a lot of help in, you know, containing the fire and getting the hot spots controlled so that it doesn't jump outside of our containment line. that is the big issue. when you have a fire like this, you have a lot of hot, smoldering debris that is trapped under the duff, we call it, all type of brush and debris that burned. the hot embers are contained under that duff, we get a high wind below, take hot burning debris and embers throw it outside of the containment line

into unburnt fuel and we can have a fire move into forward progress type of phase. that is the big thing we're trying to avoid right now. this is nothing new for us. you know, city of los angeles, los angeles county fire, this is what we do. we're national leaders in wild land firefighting. this particular incident has been a very destructive one. it came in. it rolled, it pushed fire right into the neighborhood. we had evacuations that were enormous. we had to evacuate areas 20 miles across. connell: unbelievable. >> presented a huge amount of problems. connell: keep us up to date. we'll look for the news conference in about an hour 1/2. tony, thank you very much. los angeles county fire department. that is the woolsey fire, the camp fire, in the northern part of the state, deadliest in california state history. okay, we're going to talk coming up about amazon. i mean there has been so much speculation, you know for months about the hq2 and then we've

known for a while they were going to split it up between the new york area and the d.c. area and now new details on the specifics of that, and we'll talk about jobs, and tax breaks and all the rest of it. amazon's stock is up by about 1%. we'll be right back. welcome to the place where people go to learn about their medicare options... before they're on medicare. come on in. you're turning 65 soon? yep. and you're retiring at 67? that's the plan!

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>> one high-ranking boeing official said the company decided against disclosing more details to cockpit crews due to concerns about inundating average pilots with too much information. was that a decision now thaw regret? >> no. again we insure we provide all the information that is needed to safely fly our airplanes. >> it was a new system wasn't disclosed to the pilot? >> there are new systems on the airplanes designed to take advantage of the capabilities of airplane and provide control capability in high angle of attack systems and those systems operate properly. connell: that is boeing ceo dennis muilenburg, responding to

a report from maria bartiromo on fox business, on a report it withheld information about the new boeing737. the takeaway the dow would be up for 83 points if it weren't for boeing. back to boeing a little later on, to amazon, the announcement of a new headquarters here in the new york city area. also in the washington, d.c. area. so they're splitting it. just across the river from man had tan, in long island city which is in queens. also, in northern virginia which is close to the pentagon. on that side of it, edward lawrence reporting today, could be a i guess a 10 billion-dollar reason for that, right, edward? reporter: connell that is just across the river from on the potomac from washington, d.c. with the new operations center also in nashville, tennessee. the new headquarters will

appoint 25,000 people in each location that amazon picked. arlington, about nine miles from where i'm sitting right now because from the new site employees could walk to metro stations as well as reagan national airport. this location also makes amazon the neighbor to the pentagon, playing a role in the selection might be a 10 billion-dollar prize pentagon contract. for the joint enterprise defense infrastructure project or jedi, as it is known. the project internally some developers at google announced displeasure working with the department of defense, amazon hopes becoming the department's neighbor, the company will score the contract. amazon will get from virginia, performance-based direct incentives of $573 million. now that includes 550 million-dollar cash grant over the next 12 years. in addition the city of arlington will consider cash grant of $23 million over next

20 years. they picked long island city in new york because they will get 1.5 billion in direct incentives over 10 years from the state of the new york. that includes a cash grant from the empire state development company. 325 million for the square footage it occupies in buildings in queens. both head quarters, amazon says the average salary per worker will be $150,000 per year, begging the question, how do you apply. connell. connell: you're leaving us edward, so soon? it is, there are some elements to the story. thank you, by the way, for that report in hour number two of "cavuto: coast to coast." amazon hq2, hq3, no matter how you want to split it up. another big story, apple, you seen the stock price since the recent high, still off by 16%. there are investor concerns over

the iphone sales. one of the reasons the market sold off yesterday, really accelerated. the bottom fell off at the end, 600 points at downside. keith fitz-gerald joins us about apple. at the moment, are people saying now is the time to buy apple again or what? >> i think that's a good, logical conclusion. the company hasn't been about the iphone for a long time. it is about the non-intrinsic stuff, subscriptions, apple pay, the music. those are the things that will derive revenues. you talk about install base 1.3 billion devices, give or take 100 million. connell: you say it hasn't been about the iphone for a long time but regular people still associate apple with iphone and iphone sales. there is still some sort of an open question whether apple under tim cook will able to successfully in this economy, everything going on, make that transition you talk about. do you think they are? >> well you know, i worried

about that for a long time. they used to under steve jobs watch ooze innovation. now they ooze mbas. you have to seesay this is logical assumption on tim cook's part. i think he knows what he doing. it took me a long time to figure that out. i think apple has lower to go maybe, 175 range, maybe a little lower, but you will see a lot of buying people will recognize from the withdrawal from the iphone centric model he built will take them into the future. connell: other thing maybe they will recognize maybe we shouldn't talk about all these companies together to begin with. we were talking about amazon with edward lawrence. if you throw in the other so-called fang names, the acronym, facebook, amazon, netflix and google now under the parent company alphabet is there a separation how investors or maybe has been for sometime view those companies? seems to me especially now in this environment they're so

different and especially the challenges they make and maybe they shouldn't be grouped together so much? >> that is very astute point that i agree with. to me the strongest players are going to be amazon and alphabet. connell: okay, why? >> well, amazon is certainly for all the reasons you just pointed out. it is a behemoth. it is amazon versus everybody else. it is not just about retail but big data. this is another area where investors have to shift their attention. amazon is the same thing, talking about multiple streams of business not one which is accurately valued by the market right now f you're a long term investor, the withdrawal because of october volatility is the great opportunity for the right perspective. connell: you see challenges for the others netbook, facebook, even for apple? that was the question yesterday when the market sold off so much, we see tech down, now they're bouncing back a bit as if we're in the transition after new phase of leadership in the market, if so where re with

transitioning to? >> i think the psychology right now is key. this is not about the fundamentals. this is not about any of the double-digit growth we're seeing in those names. this is about people trying to get ahead of a perceived global trade war against tax reform, against democrats going after the president. so they're really trying to make a second-guessing decision which never works out well. if you focus on facebook, mark zuckerberg, he has tremendous legal challenges. if you look at apple, you have got to have this transition psychologically in the investor base. then it will be back. facebook, i'm not so certain about. connell: facebook has a whole different set of issues i guess for facebook. keith, before we let you go, we'll talk about it in a minute in more detail, trade. we were having this conversation at the top of the hour, it seems that if you read into larry kudlow comments, that white house has trade on the agenda the at g20, they will talk about, have a meeting internally as well, they will talk about it. is that a good sign? do you expect the president to cut some sort of a deal now with china, rather than keep a

hard-line, rather peter navarroesque stance? >> you know that is something i thought a lot about. i spent a lot of time on the ground in china over the years and one thank that is really important to the chinese is not losing face. i do think there will be logic when it comes to the in front of this. i think they're maining a hard-line, rightly so, behind the scenes. if it comes to a agreement it will be with china not losing face. they have to sell it to their own people. connell: with the president as well deciding to cut a deal. thanks for coming on. keith fitz-gerald. more on trade in a moment. internal meeting happening at the white house today. the dow is up 70 points. a bit of self-promotion, catch me along with the great melissa francis on "after the bell" today at 4:00 p.m. eastern time. we'll cover all of these things, more on the amazon headquarters and everything else that is going on. we're up 68 right now on the dow. we're coming back on "cavuto: coast to coast." don't go away.

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connell: talk more about trade now. there is a big meeting we understand at the white house. by the way the dow is only up 38. we're fading again. be that as it may, president trump meeting with senior advises from what we understand will talk trade today. blake burman is joining us at the white house. auto tariffs? is that on the agenda here? reporter: this is all coming together on trade, connell, potentially the next few weeks at least right now. the president is meeting with senior advisors here at white house on trade. one of the topics i'm told the president and his advisors will discuss is the potential for auto tariffs. the president made the threat for many months as it relates to the european union and potential tariffs on auto imports, 20%, maybe 25%. this comes as one of the president's top trade reps, the top trade representative for the eu are set to meet here in

washington later this week. you should also keep an eye what is coming down within the next couple weeks and that is the big meeting between president trump and xi xinping of china at the g20. it is probable that will come up during the trade meeting with the president and his advisors. larry kudlow speaking with us on the north lawn earlier this morning, seemed, seemed to like where the direction of all of this is going with china. listen here. >> we are now communicating at allselves. we're working as i say, on background material and preparation. we're waiting for china to come back with some thoughts and the process is on going. reporter: by the way connell, secretary mnuchin's chinese counterpart is coming to washington as well in the near future we're told for discussions. you can see how this is starting to shape up, not just the coming days but coming weeks with the big meeting coming up. connell: trying to change the

conversation around trade a little bit. thank you, blake. we saw that from kudlow. more on that to come. debate over the republican economic agenda following the senate seat loss in the state of arizona. then we also have the uncertainty out there over the recount in the state of florida. so let's bring in, from "real clear politics," tom bevin, the cofounder, what the gop can do with this majority that they have. that is the issue right, tom? they do have a majority. it, on the screen behind me shows 51. i think more likely scenario is that we get to 53, right? that it gets from 51 to 53. let's assume for the sake of our arguments, boy making myself nervous, that that it's a 53-7. what is the difference or is there a difference between 51 and 53 the way the senate operates and the issues we expect to come up? >> sure. it gives the republicans a little bit of breathing room.

democrats control the house. the legislation coming over is different but if you think back, the republican plan to repeal and replace obamacare failed by one vote in the senate, one vote. if they had 53, that is something would have gotten done. the other thing confirmmations. in the senate, federal bench, judges, if there is another supreme court nominee in the next two years. lybut also it for cabinet members. we're hearing about a potential shake-up in the trump administration. he will need to nominate cabinet members confirmed by the senate. to the extent republicans have the two extra republican members. that will give them a little bit of breathing room to get president trump's nominees through the senate and confirmation process. connell: explain why likely to be 53, not done deal by any means, florida stays red, the recount doesn't overturn the result, mississippi as expected in the runoff on the 27th of november, stays in the red column as well. those are the seats that are up there as undecided now that

arizona has gone to the democrat. on the same kind of topic, tom, does it matter it is not even more after majority? would the republicans have significantly bigger advantage had the number was 55? or do you think they're satisfied moving from 51 to 53 here in terms of their agenda? >> i think they're satisfied moving it in a positive direction in terms of the numbers. obviously the more you have, the better off you're going to be. to the extent you get closer to the 60 number which is the number you need to break a filibuster, that is sort of, democrats had that when obama first into office elected in 2008 and 2009. that makes things a lot easier. especially it if you have control of the house. republicans don't have that. they're happy having more republican members in the senate than less, or even staying where they were as of this election cycle. connell: talk about the economic agenda. that is what we focus on here. what you think is realistic

possibility for consideration. tax cuts 2.0, it came up before the election. we knew at the time it wasn't something would be considered before the election. the president was bringing it up before the midterms. trying to get it into the conversation. post midterms. forget about the lame-duck session of congress for a moment. once we get into the new session, is that realistic that can get through both houses of congress? is there enough wiggle room in the horse-trading they can get something done on taxes? or is that too farfetched? >> it seems a little farfetched. but trump indicated at his press conference, that he would be potentially open to raising corporate rates to afford a middle class tax cut. he signaled that he was open to working with democrats. if that is the case. if that truly works out to be the case, trump you never know, might be willing to trade some horses and on the next day he might not. so we'll have to wait to see how that plays out. what will be interesting, if he is willing to make a deal with democrats and comes out of the

house, gets over to the senate, then it gets really interesting to find out he is willing to go, how far republicans are willing to go. how many democrats will be willing to get on board for that. possible, doesn't seem likely at this point. with trump you never really know. connell: you never really know. isn't that the lesson of the last few years? tom, good to see you as always. good analysis. a breaking alert. the dow has given up most of its gains. starbucks, the stock is down 15 cents, it came out and said the company plans to lay off 5% of its workforce. so 5% of the global workforce for starbucks will be laid off. the stock at 67.76. we'll be right back. what if numbers tell only half the story?

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connell: one more update now from california. this time to northern california. the most destructive deadliest fire in the history of the state rages on there. claudia cowan from fox news on the ground in paradise, california. what is the latest, claudia? reporter: connell with each evening update from the butte

count sheriff, the death toll rises. remains of 13 more victims have been recovered. the grim search continues for more. in burned-out neighborhoods dozen search and recovery teams are combing through ashes. when they see multiple cars in the driveway, it could mean the remains got trapped and their remains are in the rubble. they will use cadaverrer dogs and. they will bring in more portable units on loan from the military. while escaping from the flame, 90 of the towns first-responders lost their own homes. paradise fire chief david hawks says the inferno was like a snow blizzard of embers, pelleting homes and sending one after another on fire. >> it is just absolutely heart breaking to drive through paradise to see the level of destruction. my family lost their home in the

fire. my parents did. my grandmother did. reporter: many of the 52,000 people evacuated still don't know if their loved ones survived or what is left of their home. before evacuation orders can be lifted, the area needs to be safely secured and power restored. we're a long way from that. this fire has grown to 125,000-acres, bigger in area than the city of colorado springs. more than 5000 firefighters are working the lines and flying planes and helicopters. thanks to calmer winds the crews are holding containment lines. they're keeping the leading edge of the fire from advancing south and east towards the city of or aville, home to 19,000 people. connell? connell: worst they have ever seen, deadliest in california history which is obviously saying something. claudia, thanks. the justice department is looking more closely at antitrust allegations, talking about comcast once again today. there is the stock. it is down 16 cents.

charlie gasparino broke a story about comcast yesterday. >> from the american cable association urging the justice department to launch a civil or investigation into comcast's antitrust what they said, allegations of antitrust allegations of the essentially comcast which is a massive distributor of content, right? connell: yep. >> using its content in anti-competitive way, forcing rival cable operators, you want nbc universal or hulu from us you have to pay up. connell: right. >> justice department received the letter. what our sources are saying they reviewed the letter. they're taking it very seriously. they told us they haven't launched formal investigation yet. but they could launch one. what they say they're reviewing allegations from what aca said but other allegations. there is other complaints about comcast over the years, particularly as it was merged with nbc universal. agreed to certain conditions of

that merger back i think five years ago. those conditions lapsed i believe in september. but these, these are during that condition period, there were a lot of complaints about comcast. they're looking at some of those complaints as well. i think the best could you say right now, the justice department is investigating whether they should launch an investigation into comcast. connell: okay. >> we have that pretty cold from people inside of the justice department. connell: no formal investigation? >> not yet. but they're investigating, i think interesting thing here, i think the stock traded off on my initial tweet on this around 9:50ish or so. connell: okay. >> interesting thing they are, they're taking this seriously. now if you notice on your report yesterday about this donald trump, tweeted it out are. tweeted out, didn't retweet my tweet. some. commentary. connell: comments you made about the story. that brings up the larger point the trump justice department, its relationship in particular with media companies on

antitrust, how much is specific to this justice department under this president versus issues that -- >> because of donald trump's public comments about nbc, about cnn, which they're also challenging the at&t time warner merger which brought cnn inside the at&t distribution framework. connell: critics are saying he is going after -- >> it detracts from what is a fairly interesting antitrust rational by the justice department. he runs the anti-trust division. if you get massive distribution and integrate a content provider which is known as vertical integration, that could lead to anti-competitive pressure because, that distribute could use content it has, if it has must-see content argues lot of people say at&t has must-see content through cnn.

nbc with must-see content with "saturday night live." connell: i looking at the beginning of at&t trial, is it quote, must-see? >> a lot of people think it is. you could use it as leverage to see higher prices and justice department on the at&t case that is violation of the antitrust laws. connell: a new angle though historically. >> that is known as vertical integration. connell: which never came up in antitrust. >> yeah it did. connell: not as much. >> you shouldn't say never. it wasn't prevailing. when we talk to our sources close to the justice department on this, they said there are two-ways to go about this, a civil case a civil investigation if they go there, and a possible -- you can do criminal cases so it is not totally out of the realm if they think there is a gross violation. likelihood it will be civil, if they go there, i say if they're going there. i'm not saying they're going there. connell: is a percentage on that? >> i don't know. there is a lot of reasons i can tell you they're going to go

there. the fact at that donald trump tweets stuff out it is very nice that he mentions us but -- let me make this point, he makes the case a little more difficult for his own peoplep then they will say it is be prodded by the president. connell: i was going to ask from your sources are people inside the justice department telling you they're getting pressure from the white house? >> not at all. just his tweets kind of create an impression. i will tell you that they do have an interesting legal rationale about the notion of massive distribution and content in vertical integration. that could lead to antitrust behavior. they, a lot of people blew it off, a lot of conservatives blew it off. i'm a free market guy. i initially blew it off an until i read the briefs. there is rationale there, you can see how it might happen. remember at&t went dark last i heard on dish, remember? connell: yeah. >> you can't get the at&t

content on dish anymore because they're fighting over pricing. so it is, there is some anecdotal evidence that justice department has a rationale and a case here. connell: all right. we'll come to it obviously. i've been all over it. obviously the stock moved again today. thank you, charlie. stocks generally have been all over the place today. we're down again 33 points on the dow. we'll talk more about that, this fall in oil prices is something else. 12 days in a row, down four 1/2 plus%. we'll talk about it more. when we come back, silver lining, lower gas prices for you guys out there. we'll be right back. 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

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connell: welcome back as we move into our number two on cavuto coast to coast. i thought i won for the markets. economic adviser larry, with some comments earlier about china come the two sides coming eyes ached in china are on speaking terms again. they seem to help stocks a little bit. other factors there has been hurting them. natalie go appeared kristina partsinevelos at the stock exchange. >> that's exactly the way to describe it. the united states and china appeared you had larry kudlow communicating on all novels and trade will be included. dad did e. some investors fear. the fact you have negotiations coming through with brexit, a

preliminary deal at the moment. finally taking it upwards. the dow over the past week or so you seem to fall quite a bit. yesterday i did drag with goldman sachs as well as apple continuing concerns about apple. let's move on to boeing. boeing is still a big story. "wall street journal" broke their spirit you can see now priced at $351 down from almost $6. the reason being the company failed to disclose there was an issue with the flight control center and this has been. it is about these issues before the plane went down in indonesia, a deadly crash and now "the wall street journal" is reporting boeing has said they are working on software to fix the issue. nonetheless to see the repercussions in the market. moving onto apple come a big drag on the dow over the past 24 hours. hovering a little bit better than it was yesterday. the reason being is you have a lot of analysts including goldman sachs they predict a

iphone sales will continue to fall. you had a major supplier yesterday say that they are seeing lower shipments going forward. the concern is iphone saturation demand is decreased. goldman sachs predicted in iphone's will decrease sales in next quarter by 6%. jpmorgan who last but not least to have home depot with their earnings. some results coming out they did have same-store sales open for more than a year. cnet flat at the moment. however, showing people are renovating their homes despite this choppy, domestic or u.s. home market as well. there you have it for all the markets. we'll be back with you later on today. connell: interesting. 602-point decline. thanks. one thing that's continued as the oil price drop with a drag on the dow today. the price of oil has hit yet another 2018 low. jeff flock live in chicago on

the floor of the cme. you wonder where this all ends. >> i don't know. this is historic. it's never happened. if it closes down again today which almost certainly it will know we are down on a session lows, but almost $3 a barrel, down almost earlier in the session down below $57. now just a bit above. certainly oil is to close as a loser today. again, he would be the 12th consecutive loss for oil already. that's never happened before in history oil futures trading here at the cme in chicago. we started back in the early 80s. take a look at that. that's a major hit good as you point out, having a negative impact on oil stocks. that is the stocks of oil companies, all of them throughout the day today. the u.s. stock market back and forth. oil has been now more, last amended down all day.

one positive in the energy market i would point out in addition to the fact that gas prices also down as a result of the drop in oil prices. natural gas is a two-day rally in big-time up over 5% i think by my last look. that is because it may not be cold in new york yet, but it's coming. get your code out. 25 degrees as we speak this morning in chicago. it will be there tomorrow or the next day. connell: my watch tells me where a 40 degrees right now. that's a weather report from jeff and connell. this is something, this fall in oil. a picture whether it's a good thing from a bad thing, what does it mean for the economy and consumers in all about. larry glazer joins us to talk about a little bit. it's always good to see you. we don't know when this drop is going to stop. i just sat, who would've thought a few days ago we would've ever seen the future is go down much in consecutive session.

what's your overall deal? the president thinks it's a good thing. you read into his street from yesterday. >> is a good thing because methane affects the consumer more than a decline in energy prices after the holidays. the holidays is so critical for retail in this country. that is the silver lining. that is a good incur the charge becomes a decline in energy prices could be sent an ominous signal about global week as thin as investors on edge. the weakness of volatility in october as the blades into november we see new issues pop up. oil really is a new concern. the potential change in leadership away from technology as a new concern. oils in a bear market do so is amazon yesterday. this is where the market is

really starting to recalibrate and think through. oil can be a metric for global risk. what's really critical to remember here is to compare oil to natural gas and they are both a reflection of demand. oil may be more an indication of excess of supply the necessary domestic weakness. >> that's what i want to talk to you about. they're supplying and there's demand. everything we hear about on the oil side as we are spending globally in oil. there are challenges that have come up with that in terms of pipeline infrastructure and getting it out of the places it's been produced. even oversees the hint was from the saudi is and we think opec is a larger conversation they will cut production because they're so much oil. the president says don't do that, but that the issue. or are you starting to see any concerns developing around demand. >> there's a different picture outside of the u.s.

natural gas gives you a clear picture of the picture of u.s. consumers spend in good shape. the u.s. as a whole has been in good shape. internationally that's a different story. the weakness in the chinese stock market in overseas particularly the emerging market the picture starts to draw the distinction. oil is telling you things are not strong outside the u.s. they need a trade deal in china quickly. connell: it's a good point because sometimes people wonder how did these stories interconnect with each other and one of them is trade. larry kudlow comes out today and get the hint that maybe we are ready, at least ready to start talking again and markets take that as good news and now giving back some of those gains. your point in the earlier gascoyne as well if we cut this deal, maybe that is when you start to see the oil price decline stopped if we have a hand there might be some sort of a deal. china needs to cut one at some

point. >> geopolitical considerations affect the global oil market. you have iran sanctions coming change in house leadership committees. all of those are considerations affecting the price of oil right now. most importantly the consumer in the u.s. is two thirds of the economy. the stock market doesn't like the decline in oil prices. exxon, chevron, major stock market holdings. it will hit the market average in as much to do with the way people in next to the and how indexing has changed as proportion has changed is proportioned and a lot of the responsible allocation of money here. we are not in a recession in the united states, but oil is sending a scary signal investors have trouble looking passat. what's also important to consider is the market is not just rest on, risk off, but china trade talks and if we can get through china and the balance of the year, we have a much more favorable environment. gridlock is good for the stock

market provided we get a little tailwind from other considerations. >> every headline on trade. that's why it's so important because it all connects. good to see you. thanks a lot. >> my pleasure, thank you. congress back in town and back to work. all the uncertainty with the recount down there. we'll talk about all that is what happens to the economic agenda for the white house that the gop majority shrinks at all. right now looking from the republican perspective 5347, the most likely senate breakdown. then there's amazon. amazon with the hq to decisions splitting net to northern virginia. remember from the white house he works at amazon where he's an executive coming up to the way in the company's logic.

connell: shares of apple still little dolor today and well off their highs as you see there down 16.5% from the recent highs. goldman sachs cutting some iphone for test. "the wall street journal"'s conference. laguna beach. hey, suzanne. >> it's a tough job. somebody has to do it. here we are at "the wall street

journal." talking all things tagged here that include a lot of government regulation, innovation and partnerships for the future appeared upon the minds of the ceos. they did take a look at the stock market yesterday. losses of 600 points and i caught up with this ceo steve balmer, billionaire owner of the l.a. clippers and asked if investors or if he was concerned about the stock fell down. >> do i expect things to go completely, you know, race down? i don't expect that. on the other hand, things have been pretty frothy and the market overall. interest rates in the direction we could expect it. check out a little adjusting to do in my humble opinion. depending what happens with interest rate there may be a better buying opportunity if we continue to go up, which i might expect and think they should. >> ballmer was a headliner

yesterday. we also had randall stephenson of at&t and also heard from her for a google this morning. names like lugar was the opener along with wayne mel which has self driving car technology. a lot of the question here has been talked about liberal bias in silicon valley as well. i also asked this question as well. take a listen. >> you can look at pac donations and dry conclusion where the preponderance of support is. do i think people are entitled to their point of view as long as they are respectful and done properly? of course. >> we have more names later on today. gwyneth paltrow, also kevin hart in the instagram cofounder. each could be interesting here. >> i will be interesting. we have had mine underneath. as a general question, is that

the way they feel like their industries under a lot of pressure. >> that is probably the overarching theme is how we work together with the administration in the white house right now. how do we get the message across that maybe were not too big and we don't have too many pockets to control. the main talking point right now is the administration and future regulations. >> regulation and antitrust concerns as well. we are going to move on and talk more about the political landscape. republicans did lose the arizona senate he can now more of a focus certainly on florida and the recount they are to be decided from the daily collar. new york city council minority whip job or riley on maybe what a limited majority of this might mean for president trump's

agenda. the republicans are in pretty good shape in the senate. if they get to 5347, which looks like the most likely outcome. i'm sure they would've preferred 54 or 55 seats. a little more wiggle room. >> every vote counts. while the president is not going to house the house of representatives or much of anything, it will have the senate. and it comes to the senate there's so much the president can do, i.e. nominate judges or have been confirmed by the senate. they have a very important job in all of this. the further he can grow that support in the senate, the more likely it is to get it through. you have some senators who are not always going to side with the president. lisa murkowski, susan collins, dead last. so he's going to want every senator he can get on the side. >> cabinet level officials could be a more and more important issue heading to the end of a

first term when he ordinarily would expect more and more people to leave the now more stories suggesting people might be leaving any need to get new people confirmed. that's the case for attorney general. what about legislation? there was some suggestion right after the election that we should look for infrastructure because it's popular among democrats in the house and you wonder what happens in the senate. tax cuts to plano. another thing up for debate. if you had to pick something that could get done in its next congress, what could it be? >> infrastructure would stand out as the one thing you can give both sides at least in theory to agree on. what's more interesting to see play out is how the new house majority decides to work out whether or not it brings to about so many more controversial issues that promised its voters the last few years. think of something like abolishing eyes. this is a talking point of democrats during the mid-terms. they won the offices.

now they have to come to the realization this might not hold while well for the rural and suburban districts they just tried so hard to win. train to the to make a call. do they want to get stuff past. they go down the road that joe is talking about. those are issues that would die on the senate side would you want to make political points. for the point of view of what we look at what markets that's when you get to the conversation of gridlock. his gridlock good? you're going to have true gridlock versus the actual deal cutting. >> you will. democrats on the house i decide they want to pass things like abolishing eyes, they can be overplayed their hand. going into the election this could be political suicide and they could be hijacked by the children of their party. the people screaming crazy in the backseat while nancy pelosi is trying to keep her hands on the wheel. the reality of democrats don't take this too far.

we will see a forthcoming. >> hands on the wheel. how firmly or nancy pelosi's hands on that wheel? doesn't seem there is an unless you think i'm missing something and someone took and becomes the speaker. >> i don't think that the possibility that she doesn't become the majority, the speaker rather. we are in a brave new world when we have members of the incoming class out there defiantly saying health will not vote for her. probably the highest profile member of the freshman class outside of her office right now protesting. i think she's going to be the speaker for lack of a challenge. connell: you're talking about alexandria ocasio-cortez. i saw that. she was leading a protest of young people at pelosi's office. that's all been resolved today. we do have to run. your staten island, right, joe? amazon didn't choose staten island.

did you notice that? they went to queens. i tried to tell ralph or producer. no one ever choose a staten island. >> ralph and i do. connell: long island, no love for staten island. good to see you. we'll talk about that amazon deal in a few minutes. officials in the meantime estimated more than $19 billion in damages now as a result of wired fires in california. former california governor gray davis will weigh in on what can be done to prevent something like this from getting as bad as it is in the future. edward jones came to manage a trillion dollars in assets under care by focusing our mind on whatever's on yours.

connell: another business alert on general electric ge shares are bouncing back today after this nine-year low. yesterday was below a buck that the close yesterday which was quite a sight to see largely a see largely on the exclusive reporting of charlie gasparino joins us now for the news room.

charlie: ge is up today basically the best day in three years and it doing now because as we report it is now continuing the latest asset in the baker hughes subsidiary. announce that today. not that long after our story said they were basically doing a fiery guard sale of assets to pare down the company amid really investor concern, not just whether it's worth $8 a share. it is more along the lines isn't a viable entity. if you see the trading in its credit default swaps, insurance contracts on its debt has gone up. that means people are betting increasingly that it could default on its debt. not meaning it will, but it could. when that happens, and prices of credit default swaps go up and they've gone up dramatically on ge right now. this is a company in crisis. current management under the ceo and as they reported to have at

least two major investment banks, goldman sachs and jpmorgan lacuna selling additional assets. here is what we don't know, connell. whether this is a company double pared down to a couple small companies or whether we will not see ge access as a coherent entity whether they sell off the major units in two separate companies they fell off other businesses. that is on the table i'm told here doesn't mean it will happen. connell: there are valuable parts here. >> here is the thing and i'll say this because i've cover ge for many years. i did not get to know john flannery for a year before he was replaced about six weeks ago by larry culp. in the past ge was known as a conglomerate for the hole was worth more than the sum of its parts. the talk inside ge now is not the case. and can you keep a company

together coherently when the sum of the parts are worth more and analysts question valuations. massive amounts of debt on this company. dirty billion dollars or so unfunded pension liability. $115 billion in long-term debt. they're on the verge. >> in just getting started with this process and how it plays out is still an open question. ge goes away as an option could really quite remarkable when you stop to think about it. i'm not sure, but the goal is just to have a smaller, more efficient. >> i'll tell you i can't get a good read on monaco when i took when i talk to investment bankers seen everything on the table. we have a full writeup on this on fox business.com. there are various scenarios the investment banks are developing with ge and call pass to make the call. one scenario is blow it up yet another scenario is getting down to some keypad is ge.

i don't know where it's going. the stock is up but it's still trading below. connell: that shows you where it's been. 799 at the close yesterday. great reporting. shifting gears back to california and the wildfires out there. the one in northern california now the deadliest in the history of that state. 42 people dead as a result of the camp fire in northern california. gray davis joins us now and obviously you dealt with many of these fires when you're in office, but to hear that it's really something else. the deadliest fire in california history. what's your impression of what different this time around? >> well, the weather is largely conducive to wildfires. it is bone dry. there's been very little rain and it's just terrible. i actually had, rather, i had

two relatives of there. my sister and my house was burned down in charlie and the sisters needs. the good news is they are safe. i've been to paradise and like the name it's a beautiful place, but it looks like they're in a world of hurt now. i pray god takes care of them and all the first responders keep doing a great job. connell: in the er by the way. one of the fire officials last hour doing a great job by any account. it's always difficult in the middle of the disaster situation and talk about what comes next. people are wondering about what we can do differently obviously to prevent something like this from happening. it sometimes gets political but a debate on one hand between how things are managed versus what is outside of our control via climate change or just the dry conditions that came with this particular year. what are we learning right now do you think? >> the good news is to academics from you see san diego and the

university of nevada have come up with an infrared camera that operates when there's a fire with smoke. that is fully incorporated in san diego are the worst that's happened in 14 months. no loss of life. less than 5000 acres burned. i brought back to the attention of the disinviting 160 cameras and the governor elect, gavin newsom asked pg&e they will make a substantial announcement. that will take about a year. these fires -- these cameras are so great that it's plugged in on the fire chiefs. there is a real trick to get on it quickly. if you know how robust the flames are you know how many tracks to center the fire fire in san diego was put out within an hour or two. >> how does the technology work? >> first of all the cameras were during the fire. the cellphone cameras we have do not. they do not appear to have her her play cell phone with

infrared. seven firefighters were infrared cameras as bodycare most of the technology is absolutely proven. the proof is in the pudding. the insurance industry raised the other two utility rates in california an average of 170% in san diego only 30%. the market is saint infrared cameras actually work. connell: that would obviously be it already is. that is more widespread, hopefully something that can help in the future. governor davis, thank you for your time today. we always appreciate it. as we move on, we'll continue to cover what's happening in california. moving onto president trump. emanuel macron has been the subject of much discussion. apparently things are not exactly going as smooth as you might hope for there. if you look at the twitter feed, what happened? looks like they were best friends for a while. we'll talk about that when we continue here on cavuto coast to coast. later melissa will join me for "after the bell."

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connell: this is getting interesting, has been interesting for a while. president trump continuing to hit emanuel macron in france over just about everything, trade and nato. ashley webster is here covering this forever. to talk about it over the weekend. the landing gear. charlie: when macron is talking about his own e.u. army has the president arrives, and he kind of just went after him. it was a huge insult. donald trump does the donald trump does. he answers strongly in the whole

notion that nationalism is a terrible thing. they miss the point. he made this point very well. if you're sane america first, make america great again, are elected by the american people in your first responsibility that's what you've been a lot to do. who use beholden to some global entity where those people have not been beholden. there was a big mistake. you can program nationalism. connell: one of them is macron's approval rating which we can talk about in a moment. it's been very high. on the issue -- very good. on the issue of the european army i was talking to michael o'hanlon of working and he said he thought it was more of a misunderstanding than anything else that he thought the french and europeans are trying to say hey, we'll do some of the song around. we will try to help you out a

little bit so you keep telling us we have to pay our fair share, do our best with nato that this is all part of it. >> part of the anti-trump, anti-u.s. construct. you can hear the beeping sounds as their backing out. you have coming up, mrs. merkel of the european parliament backing up saying she got heckled by some of those people. pay your fair share for nato. the world were to construct we've been operating on for years and years. things have changed. populism done, it's all over the place. macron is paying for it. the approval rating today. he's in the 20s.

as much as he talks this way come you have to realize that home that kind of talk apparently -- >> lattimer pruden who's on the economy is crumbling that'll take on the united states with all this bravado. nothing but a distraction. his popularity and 20%. its unemployment rate in france is close to 10%. the economy is going nowhere fast. it's time to get involved in grander issues as opposed to focusing on those who are you struggling mindfully. look at what's been going. breadstick, we may have finally got a deal. whether coaster will see you. the italians continue to snub their nose at brussels. the e.u. is under a lot of pressure. those cracks are getting wider and wider. >> interesting. there's hardly any political figure right now that's popular that supports kind of the negative connotation word is globalism, but what used to be

called kind of a free-trade internationalist approach. i can't think of a popular politician. >> because people have found out the best way is to have a say over your own future. 28 countries together in europe trying to come up with a single idea they will agree upon was failed from the very beginning. that is what ultimately and you can say what you say about donald trump. when he says make america great and america first there's nothing wrong with that. that is what he was elected to do. other countries as we've seen in central america are saying we should look out for ourselves first in a runoff after. connell: we've got a run. may sweep aside and make france great again. >> you've got a love it. connell: this is a breaking story. i've been told in my ear we get to continue talking. how long have you been on the air for together. >> 11 years, connell. connell: in all of those years not once have a producer said u.n. ashley can keep talking.

we're going to have a guest year talk about amazon. ashley and i get to keep talking. look at the market for a second. i think it's been a really interesting day because we were down 602 points yesterday. i heard you and for any going you and bernie going back and forth about what led us back. i've got to say i thought kudlow's comments on trade -- connell: there's a lot going on. the tech sector trying to stop the bleeding coming back in little bit today with apple. more constructive talk about trade with china. they're talking at all levels. that's all very encouraging. this is kind of at the entire month of october was like for these markets. up-and-down one headline from a one headline, 11 headline, one shift one way and everything goes out the window. i thought we had stabilized but clearly we have been. >> some people would like to see it's always funny to hear this, but some would like to see a huge selloff. we thought we had it a couple times. down 600 yesterday.

but then you come back right after that. you buy the dips and it becomes this drip, drip, drip. and now we are kind of selling. ashley: gets very technical. they look at the s&p 500 down to 2600 hear that the real flaw. we were to get that in bounce back nicely. if its it's fundamental trading or just technical, you know, computer algorithms. either way they're still a believe let's flush out the system, get it all out and start rebuilding again. connell: if we are rebuilding, again you may disagree, but a lot of it comes down to a constructive headline on trade that always seems to help markets. if there's any kind of negative vibe about it they selloff. the big question from here on out from the president's point of view, does he look at it. we know what his inner thoughts are. he probably sighed more with the peter navarro site on it the way he looks at it. but is there a practical side to

the president now that says that they want to get reelect them in 2020, let me think about adding some sort of a deal with china that will help the stock. ashley: the markets and all does have begun to expect to shoot high and what were asking for and accept something in the middle. that has been his strategy. the belief on wall street but eventually something will be done with china on trade. and you're right, all of this is very positive. >> i'm going to wrap this up because i had a couple options. we could have taken some calls. is mr. macron on the line? >> is going to switch to soccer that with us everyone. ashley: we are still there. connell: have a good one. ashley webster. nobody sells a time like ashley. i've been down all of the place of 14 on the dow, but the financial after its weakness

yesterday about tobacco little bit. citigroup is up, jpmorgan up, bank of america is out. that is where the leadership is, in the broader market in the s&p. we will be right back. fact is, every insurance company hopes you drive safely. but allstate helps you. with drivewise. feedback that helps you drive safer. and that can lower your cost now that you know the truth... are you in good hands? moving? that's harder now because of psoriatic arthritis. but you're still moved by moments like this. don't let psoriatic arthritis take them away. taltz reduces joint pain and stiffness and helps stop the progression of joint damage. for people with moderate to severe psoriasis, 90% saw significant improvement. taltz even gives you a chance at completely clear skin. don't use if you're allergic to taltz.

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connell: back in town, the house republican leadership such as it is had 16 legislative days left as the majority in the house of representatives. utah republican congressman chris stuart with us now. we always hear about lame duck session and people want to move on and talk about finesse congress, and is there anything significant accomplished in this particular lame duck session of congress? >> 16 days, were used to doing this in 16 hours. the one thing we have to do obviously is the cr expires on december 7th. and we have to find our federal government. as a member of the appropriations committee as well as drives me mad that we go from crtc are threatening shutdown. it's an absurd way to lurch as

we try to find her government. i think it's very, very low. i really do. i think we will see something whether it's one kind of a minibus or break it into two or three different pieces of legislation. one way or another we will get this and probably by the december 7 deadline. connell: the other issues of course the president talked about in the campaign whether it's the funding of the border wall. anything dare we can? >> that is the one pivotal event or concern on this and that as many of us who think it is again something i said earlier it's not that we haven't put sufficient funding towards our border security. everyone talks about the border wall. i don't think he means a physical wall. i don't think he is demanding we have a 30-foot concrete barrier along our southern border, but just to secure it so we know the century in our country. how could someone not support

funding not? the president has insisted $5 billion. a relatively small amount of money. it's a good down payment, but i hope he holds to his guns on that is something we should do before we go home in december. connell: once congress does go home and comes back to the new session, how radically have things changed? the president's tweet yesterday most investors on wall street did not think that's why the stock market was selling off yesterday as a point. be that as it may come in the larger issue of democrat taking control of the house, having subpoena power and all the west, how large-scale are the changes going to be in what people say? >> for the house and members of the house of legislation coming out of the house it is going to be dramatically different. i don't think we can never know how much the selloff is due to that. but i do think part of it was because they say were going to have a more restrictive congress

are more legislation that is more regulatory, that is less business friendly and i think that probably has an impact. to your primary question, once again from the house it will be very different. intel is a great example. instead of traveling to different locations we need to do in that work, staying here and talking about subpoenaing to moscow. connell: investigation after investigation. that's the thinking. >> no question about it. when you look at things they are suggesting come you shake ahead and say are you serious about this. we are not the keystone cops. we want to be serious. some of the allegations they want to subpoena and investigate, no one takes them seriously. we couldn't seriously investigate them. i don't know, i hope they recognize us. by the way, i hope they recognize us to overreach on this and doesn't serve the democratic party, doesn't serve america. the rhetoric right now is more

heated than what i hope they actually end up doing. because if they do what they threaten to do, it is going to be completely wasted over the next two years. connell: some people think they should learn a lesson from your part in the 1990s. when the republicans won the thinking is now in retrospect looking back there was some overreach and if anything else that helped president clinton. >> no doubt about it. we apply that lesson because there were some things he did. we sincerely felt that was unconstitutional. he doesn't have the authority to do that. we have learned that lesson. it was a good thing for the american people. i'm glad we have congressional oversight. it's a critical role that we play. i want the democrats to play that role as well. i think they need to do it in a practical way and not in a way that is only to soar political points between now and election in 2020. connell: will see how that plays out over the course of two years. is there a lesson to be learned from republicans and this is

more of a political question from the elections. and if so, what is that? you could spend the elections in one way, hold on to the senate and there were some areas where republicans showed since rank. but you did lose 30 plus house seats, more than some people expect it. what's the lesson in what can be taken away from that to help you take back the majority. >> would be foolish not to look at the selection. that would be absolute horrible leadership not to look at what can we do better. in the suburbs would we will have to address and understand why did some of them turn away. connell: to be fair, the president has driven the voting block to the extent it is a monolithic bloc. but the president with his rhetoric, we've seen the analysis has driven some of those voters away. how do you get them back? >> he has helped in some cases

although that is true generally as well. there were several people, myself included who have heard some things and say i wish he would have said it that way for her she would've sent it in a more gentle way. we have to look beyond that as well. other policies we've abdicated actually helping the american people? i promise you we believe that they have. do they communicate those policies very well? that's a real challenge for us and we can do better. connell: we have to go about a minute. to that point that is what we talk about here all the time. what is your view of the economy? getting a little bit worried about how jittery the stock market has been. >> i have a degree in economics. i'm not a stock market analyst or a traitor. one of the indicators we need to pay attention to. but it's certainly not the only one. by the way i'm so proud of our reform. something the media destroyed in

the sense that they convinced a lot of people your taxes actually went up for it was unfair to protect rich people are business people. it's just not true. much of the economic growth is directly a result of the tax form. we should have been better at talking about that in the last few weeks of the election. connell: good to seek you. we appreciate it. congressman chris stuart. we'll be right back here on kudo coast-to-coast. -- "cavuto". . . .

connell: starbuck is one of the companies. we have reports that starbucks will lay off 5% of its total workforce. 350 employees. so this came in a memo from the ceo. kevin johns son. you watch starbucks. you watch boeing. home depot. "brexit." trade. with all that we hand it over to charles payne. i appreciate it. charles: i'm charles payne. this is making money. stocks trying to find their footing after yesterday's big losses. the wait is over, amazon chooses two cities for the second and third headquarters. some expressing outrage over the tax breaks being offered for the company. and the deadly wildfires in california, they continue as president trump approves a major disaster declaration for the state. we're going to take you there live for an update. all that and much more