>> thanks everybody great show. >> great show have a great day everybody. "varney & company" stuart take it away. >> big day here it comes good morning maria good morning everyone. watch out below. the selloff continues. down nearly 400 yesterday tao will open down triple digits again today. we're headed back to the 24,000 level. china trade, the fed raise aring interest rates a global slowdown, all hurting your 401(k) down about 300 plus at the ohming bell for the dow. but look at this. this is the the big problem. tech stock, chopped off at the knees that's the story again today. look at these premarket quotes. this is how we're going to open. a is going to be down about six bucks below 180 that is.

amazon down 64. it is become to the 1400 level. facebook will be down below 130 google is dropping about 24 bucks, barely holding a thousand dollars a share. and microsoft barely holding 100 dollars a share. down about what -- 265. 101, 102 per share. where's the bottom? do we get a rebound? that's what we're asking throughout the show today. now, this is thanksgiving week, good time to look at the retailers some of whom are reporting their financials this morning. start with target. same store sales up 5% and gains will continue but because they didn't perform quite as well as analysts expected, the stock is being taken to cleaners down target is down 2% as we speak. 77 bucks a share. lohse home improvement people, last year at this time they made 872 million dollars net profit. this year, 629 million and they

delivered a less than sell or look into the future. down it goes 2%. kohl's with the downdraft strong sales solid swrowt look but down what right there do you see a pattern power of analysts missed their expectations in a sharply lower market and your stock is toast. big day for your money stay there please top economic advisory larry kudlow is next. this is "varney & company." ♪ i'm looking for good news. [laughter] i found a little bit. okay. and national average for gas keeps on falling look at it now 2.61 cents per gallon down 41 straight days now it is thanksgiving week. aaa says, how many millions are going to travel? >> gazillion up 48 and a half million will travel by car this year.

that is the most in some dozen years in 12 years. this means that the 48 and a half million people traveling are are 50 miles or more for thanks geoffing as i was walking into work yesterday i saw a lot of family wagons loaded up as they headed off into the great beyond. 4.7 million more will be travel big air as well. airports by the way most congested cities -- well boston, san francisco new york city everything l.a. is great i don't think any of them are great. the largest road delays will be tuesday evening which is tonight and midday tomorrow. so if you're leaving on later today good luck if you're leaving tomorrow good luck. well i'm trying for good news here. now i'm struggling ash but i think the gas prices have bailed me out a little. >> reflects economy you want to put it -- swing in it. preem happy they're going out on roads an traveling. >> i've got to anythings on the screen right now i'm going to go through apple amazon facebook alphabet microsoft the big tech stocks they are down, when you

start quoting them down in percentage terms, you know you've got a big time selloff going on here. look i think we're -- we're looking for what's the correct word here, the blowout -- >> capitulation it is not there yet. i don't know whether it is going to come which is a complete flushing of the i poos i'm out. >> would that set of the buying opportunity suzanne lee? >> evaluation should cool into play are they cheap because people forget yes they may have missed forecast but we have revenue going up 40% stl, 30, 40%. , i mean, those are hard. >> they're boosting cash a position get into cash and get some better return nows because interest rates are rising. and it so manies that a lot of people are doing that. inch wonder if everybody is going to predict that some of these big techs go back to their

old highs. apple this morning is at 179. is anybody going say it is going to go back to 220? >> apple at 10% an made money if you bought apple at the start this have year but i like to keep things in perpghtive yes 20% down from recent highs is pretty ugly. but you made money in 2018. >> yep. is anybody going to predict that amazon now at 1400 dollars a share will go back -- >> that's a big issue they ran up so high because they were so dominant a global leader question see valuation of what point is now this more fair evaluation it was so highly leveraged that the question of what you are comfortable with. >> amazon has been out of sight farce evaluation. hasn't changed overnight but not dominant. right alphabet at the 1,003 a share. poised right at a thousand i don't know what the high was -- >> sympathetic like that but down 2%. on the year and people along with facebook probably underperformers because of

regulatory risk is there a potential breakup is there more oversight from the the government so i think those two stocks are bit of anomaly probably have more reputational regulatory risk -- >> that's right. facebook especially has regulatory reputational rsk. look at it now 127 dollars per share. it was if i might memory serves correctly facebook was at what -- 220? >> yes. up 220 i don't know but above 200 water mark devil. chopped it off at the knees so that's a significant -- >> 30% from the summer. that's significant if you were a shareholder or stockholder working with at the company. >> deal with microsoft i do own some of it i think microsoft is lost less than the other big test. >> been touted as one that's, you know, perhaps not going to say volatile but certainly has performed very well and has a good outlook. let's be honest. it's just getting caught in the downdraft. >> i would like to be thought of as investor who knows what he's

doing but i buy it 20 year ago and never sold it so -- my heart goes out to a lot of people who will have invested in big techs just maybe in the last few weeks -- thinking that the bottom have arrived and it hasn't. >> couldn't squeeze anymore out. for the rest of the show we concentrate very hard on these big tex and what's going to happen to him in the future. but right now -- i'm going to ask is you to remember this. president trump tweeted this right before the election of 2018 midterms. now, pay attention please to that middle paragraph where he says if you want stocks to go down, i strongly suggest voting democrat. that's what he said right before the midterms. you want stocks to go down vote democrat. well as you know, stocks did go down -- people did vote democrat. and stocks went down. enjoing us now larry kudlow director of the national economic counsel. larry with welcome to the program on a very difficult day.

are the markets down at least in party because the democrats took the house? >> well stu that's a very -- that's a very political interpretation and -- you know, i'm completely nonpolitical. i will say this -- i don't see after the election results, i don't see any evidence whatsoever that president trump's progrowth policies namely lower marginal tax rates particularly for businesses and completely rollback of owners and burdensome and costly regulations, and a new opening for energy revolution and america is going to be energy dominant or probably already there now those are key economic growth building blocks that's why our economy is growing now at 3%. on a year to year basis what 4.2 and second quarter. 3.5 in third quarter. you know, so i don't see anything that is going to overturn the trump revolution in

economic growth policies and incentives and incentives but we're not to get anything new if democrats run house and they do we're not to get any new stimulus or tax cuts that's the problem here. by the way, goldman sachs is saying that by the end of next year our growth rate will grow down to less than 2%. >> you know, my colleague kevin of the cea has choice words for goldman sachs and their partisan forecast. 4% under obama, our plan trump wouldn't work but i'm such a nice guy i won't go there, stu. all i'll say is this, all i'll say is this, it was only a few weeks ago i believe i was on your excellent tv show. we had 250,000 increase, and

payroll jobs 3.1% wage withs and and -- and those are huge numbers, now -- i acknowledge there's a stock market correction. and i don't like to see anybody lose any money or any team. but these things happen they come and go. i'm just saying that the psychological and stocks have gone dun a bit. the economy is roaring, here is a set stu okay let's do one quick set industrial production all right -- mines with factory and so forth business commitment spending, which is a proxy for cap x which is really thrust of our entire program because business investments is what spurs blue collar workers and so forth. 5 straight monthly gains last three months stu, 13.1% at an annual rate. we are regaining the cap x boom which will lead to more productivity, higher worker

wages in real terms. blue collars they're ones who are benefiting the most in this expansion none of this has changed i understand you got tech correction and so forth. i'm not going to comment on that but i am saying economic remain so strong, let fuss not lose sight of that. we are nowhere near goldman sachs, goldman sachs notwithstanding -- >> if the -- again so strong and you make a strong case. >> too nice a guy to criticize goldman sachs. but goldman sachs notwithstanding, we are doing very, very well right now. and americans know that. >> if we're doing so well right now, and we're going it keep on doing well in the future, why is stock market selling off like it is? >> stock selloff stu you and i have been along so -- nothing to do with the economy. and the federal reserve? >> you know, look at, i don't to go through the architecture of this correction, you know it is

not really my job. a lot of people are telling me pals on wall street that the -- you know the big tech stocks so-called bank stocks are way overvalued and that's had an impact throughout. i don't to get into that. corrections come and go. if i'm not mistaken stu you tell me we're off what -- 7ish% overall correction? that's at the worst thing i've ever heard. 10% is official. 20% is bare market all i'm saying is don't let a -- a temporary decline in stocks -- >> you think it is temporary? >> bounce back coming if it is temporary is there a bounceback coming? >> you really want a kudlow forecast don't you? you really want one well i'll tell you what the quote my former boss when i was here 35 years ago -- the economy is very sound. that's the way i would look at that. the guys name by the way was reagan and he was a optimist and

he lowered tax rates and regulations just like president trump. who was also a opght optimist. >> give this a shot in the arm to the market something positive out of china trade talks. is there anything positive that you can report on china trade talks before the president meets with xi -- >> call call president xi ten do restart the discussion which had lagged. president trump i think is trying to inject a note of optimism throughout all of this and i think that's set terrific. he believes that china would like to have a deal. but he's also told me that number of occasions any deal between the two countries has got to be an american interest. without any question. and it has got to include ip theft, it has to include changes

and ownership, it has to stop the force transfer of technology. it's got to go to zero tariffs, and zero nontariff barriers. it's got to have enforceability, it's got to have strict timetables. it has to have frankly, more than we've seen so far. but having said that, the president is taking an optimistic view as he said many times, they will be meeting in argentina, i and many others will be there. and we will see how it turns out. you're not going to get a deal unless it's suits american interest. that's a key point that president trump is making. >> who is the president listening to? peter navaro or you superhardline or more moderate, you? >> it's a love -- love-in stu we're all loving together. we have -- we have hugs, hugs in the morning. hugs in the afternoon -- [laughter] that's -- this was one of the great -- i actually not kidding. this is a great note --

>> you are kidding larry you are kidding larry would you like to answer the question? >> stu i am a bridge builder and i think that -- folks inside regarding the trade debate, we all know we all know that china has engaged in unfair and wto illegal trading practices. and mentioned before, the absolute key points on this, right -- force transfer of technology ip theft, cyberhacking until american companies -- lack of ownership or for american companies. high tariff in nontariff barriers. this must change. and again, inside the administration, i think there's widespread agreement on that. and right now just to say as we move towards the -- towards the g20 meeting, communications very detailed communications, are occurring at all levels of government. and i think that's a much better place than where we were two

three, four weeks ago and i think president trump restarted that. >> larry we have big retailers reporting their financial this is morning and they're pretty solid rots are pretty strong, however, their stock is being sold off big time. it seems like some investors are not expecting strong day season, are you? >> look, you know, on that point of impact stu let me go back -- the job numbers are so good and the income numbers accompanying job numbers are so good. okay, you're running, you know, after tax of a inflation real disposable income over 3% that's your basic measure of take-home pay as reagan put it many years ago that's strong. incomes are rising beautifully. wages are starting to rise beautifully. that's why i think -- over this whole period, thanks give, christmas, and then o.c. post christmas in the new year i think you're going to see surprisingly strong sales numbers. because incomes are strong.

that's your best leading indicator. >> okay. larry we thank you for taking the time for being with us we always appreciate it and see you again soon. >> good stuff. >> okay. crowd gang what's your take away there i have a couple here -- he's stressing that we've got a very strong economy. going into next year and slightly into the fourth quarter. he's talking about -- or lots of positive things about china trade. but as reluctant to be too positive -- >> he has to work many american interest. if they're preparedded to that fair enough that's where we've been for a while now. >> but he was upbeat no doubt. >> any deal in american interest and always said that that's not new. >> bottom line there's no -- that's the bottom line you're not going to do anything unless that happens. intellectual theft has to be protected change in ownership zero tariffs, strict timetable this is a lot to put on the table to negotiate into one meeting at the g20 in argentina

but i think it's it shall i think there's things strong on what they need. >> it is a very heavy lift it was positive on the economy. and tried to be positive on the market. 37% is okay -- the market didn't move on the air down 370 all the way through. >> i watch when have that question. on the brink of going negative for the year 2018. look on your screens brink of going negative for this calendar year got that right. okay sost that's where the future market is leading us down at the opening bell. more bad news for the facebook and twitters of this world. new poll from axios more than 50% of those surveyed said social media hurt our society we'll break it down for you. got a commercial break coming. big stuff coming for you, after this. i am a family man.

i am a techie dad. i believe the best technology should feel effortless. like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome.

retail is very much in the news this holiday period, i mean, thanks give week and look at amazon that's how it is going to open 1400 dollars share. down another 70 bucks at the opening bell this morning. burt is with us he's a retail guy, burt said not too long ago amazon was going to go to 2250. how come you've got that so wrong? >> ron this month right long-term i'll be right at the -- >> you think this is going to go

from 1400 now to 2250? so above the old -- >> first got it at less than 100 i recommended iter here at 500, and this was a stock that's going to wipe out unfortunately big part of the retail world and stock price will benefit from that. >> so back to -- not back to but make a new high, 2250 win. >> probably take a year and a half to two yores now rather than a couple of quarters. >> so we're looking to 220 before you get back to where you thought you were going to get back to. okay now tell me about target best buy, lowes koals they came in this morning with what i think of relatively solid earnings report you said this holiday quarter, this two month november, deeing we're going to hit a trillion worth of reare tail. why look at stocks on screen target is down 11%. why are they down like that much? >> moron who are analysts who say okay, you know, target same

store sales instead of being up 5.2% we're up 5.1%. that's retail rubbish. the earnings for this quarter which ended in halloween are -- it is like preseason football game. if you get one less touchdown you still win the game you're stilled good. the key part for retail we're in the winning season is your reference, november, december, january. that's when all of the money is made. these analysts can run a cash register in a candy store. they don't know the details of retail, and they have no background and if you look at the calls, particularly you know, you say goldman sachs larry kudlow they've got really smart people but they made a lot of wrong calls and that's pervasive across wall street because they don't understand main street and it's you and larry discussed you've got record earnings and record spending. >> maybe, the retailers are caught up in this -- dramatic downdraft and we're in the middle of the downdraft. that's --

a key element to it. but you look at retail evaluations now, whether it is traditional or offprice and offprice which had is been best sector in retail for stock, is still on fire going from all of the regional to phs and offprice is doing spectacularly well. >> tart at 67 a share. as of now, you buy it? is that a buy signal? 67 target call for activist to get that stock up to 100 where it belongs. kohl's 62 a share down see% you buy it at 62? >> kevin and his team doing a great job and you look at it 62, and start buying you do it partial position a quarter now, and step is it up. >> lowes restructuring 85 you buy at 85? >> you wait for joe mcfarr land to work his magic when he was at home depot store operations you buy it next year not this year. >> all right you're on videotape with that amazon call. good luck -- >> all right. power to prosper made peace with

a lot of money that's why you're number one. look at this this is how you open -- the selloff big time will continue at the opening bell this morning. down about 300 for the dow and better than 2% down on the nasdaq that tells you big techs in trouble. back in a moment.

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>> folk this is going to be a big day. we are going to open sharply lower -- big techs leading charge on the downside coif a perfect storm of negative for the market no good china trade news. big techs on a slide. fed raises interest is rates predicting a slowing economy. here we go. it is 9:30 eastern time. it is tuesday morning, right before thanksgiving, and we have opened with a loss of 400 points. we're down 24,000 we're at right now down 414 point that's the best part of one and two-thirds percent. 1.6% i see all of the dow 30 and only seen four on upside 20 on down. >> dow is negative for the year. negative for the year that's right all the gains whatever they were for this calendar year are gone. we're down 400. how about the s&p? show me that one please -- where are we? we're down 1.4%. a similar loss to the dow industrials now i worry about that nasdaq.

because i know that big tech is down and i know this index is down very sharply yes it is. 2.3% lower that's 163 points on the downside. on your screens please, the names which aring drays the dow the biggesting drays on the dow they are -- boeing which is down close to 20 bucks, 6%. apple down 8 bucks, 4 president 5% at 177. home depot is down 2.3%. three less than 1% but it is dun and goldman sachs is down 1.8% those are dow stock dragging index lower. retail names you know them they reported before the bell this morning. most of them came in but pretty solid results. but in a down market they're swept up in it and target ouch, down 14%. kohl's 10%. lowes 6% tjx i should say down 6% and best buy down 1%. dow down 438 points what a way

to start the day we need help analyzing this mike murphy and suzanne lee ashley webster are here. i sense a change offed mood in the market. mike -- not too long ago, we were generally bullish and now we are not. >> we collectively not me -- i was bullish -- i am still bullish this is a repricing stuart there's sellers in the market but when i look at companies like apple i don't see anything that's change on apple from 2:30 to 175. i've said it on this program every time there's a pullback i look at quality and i want to buy quality anyone at home listening right now, should not be running for the hills because we have some selling in the marketplace. they should be looking for opportunity. >> apple by the way on the screens right now, about way down more than 20.we're firmly into bare market territory same question to you dr i sense a change of mood in the market. do you? >> there is a near term change in mood stuart.

i've been with mike all along this run, being bullish on market i'm still bullish into the end of the year. i think we have a couple of weeks of rocky are time ahead of us, though, because of the fear in the markets when good things happen, bad things are whatting to stocks so it's a little bit of fear. >> defensive barish and concern about 2019 fed raising rates. slowing global economy, the ongoing trade dispute with china. slower earnings -- and the impact of the fiscal stimulus from late last year tax cuts starting to fade. all of those put together, giving barish outlook change of mood too. >> evaluation reset these are i would say these are aspects that we all know about we know interest rates are going up we know it is hard to compare this year to next year. and don't forget you the 26% earnings growth in third quarter that's the best gain since 2010. that was last quarter, though. right but to next quarter.

you're stl not making money. okay leave big techs on screen please i want to see how they move here. facebook amazon apple alfa bet microsoft all on downside on your screen leave them there please. mike murphy which of these big tech would you buy and when would you buy them? >> apple and amazon today, facebook stuart i just -- breaking news here. i've talked bullish on facebook for a very long time but we're out of facebook. i don't like the direction that company is going in. whining you couple the potential regulation that's coming in, plus with the way it -- they appear to be sensorring their employees, not something i want to be involved with. >> you be buy amazon and apple today with prices and you're out of facebook you aingt touching it with a ten foot pole. >> not with a ten foot pole physical >> dr on screen big techs which would you by and when will you buy them? >> i am already have bought into some microsofts on way down, stuart. for --

companying buying amazon today so -- microsoft is your pick, and amazon. i really like -- i really think that this big drop today is they're just getting swept up with the rest of retail and see strong seasonal stuff for them. >> back to mike murphy you like apple despite demanding for the iphone which is a big part of their psyche their call physical. a lot of that ash is speculation. i don't think it's necessarily the company giving out warnings i think it's warnings coming from suppliers. but suzanne mentioned repricing so apple if it wasn't 2:30 i wouldn't say this is something i need to go out to run out and buy. but south of 180 dollars share i think it's a steal because not just the number whether or not they missed or beat slightly number of iphone next quarter they've build a huge mote that i want to be art the pa of and service is business --

>> apple is not above selling iphones anyway a cash story. return are to shareholders and there's a buyback and high per dividend. >> okay got it i want to move on to retailers it is thanksgiving week afterall most of them came through with solid reports this morning but all of them i think they are, put them on serene please all of them are down and down sharply. what is that tell you, mike? >> the retailers twice -- a strong fourth quarter. >> okay it tells me that the market is termed by algorithm tradings and those right now are selling first and asking questions later. so when i look a target, and name that i wasn't interested in owning yesterday, and i see 5.1% same store sales growth for the quarter, when i see that they're going after amazon they have 49% growth in online sales for the quarter and i'm getting 12% discount on company today it is something i'm going to look at very close lip. >> i agree with target. i think this is completely overdone. but if you looking at a almost everybody else lowes or half of

the same store sales growth that they were hoping for. best buy if you saw, they have trickled back up because only thing they did was guide same store sales for kind of 1.7% which is really good. they just did 3%. if this was going it be a good story before the end of the year. >> concern over profit margins and above supply chain especially if we have this ongoing trade tension with one of the biggest suppliers in china. so high per wages as well you have to pay workers more to want to take your job that year retail outlets. >> we are 7 minutes into the trading session and summarize it with a big board we're down 424 points as we speak. that means we're back to the 24,000 level. i really pay attention tho to the nasdaq. that's now down 1.7% it has been down more than 2% of the opening bell so maybe we're coming back a little bit there. on the technology companies -- murphy hopes so because he's buying some of these things. >> you close 2,017 nasdaq closed at 6903.

so it's just -- just slight profits to the the year. >> tiny, though. it is tiny i'll go through some individual stocks. which we're covering and which are making news and which i believe they're moving. l brangdz they cut their dividend they've replaced the chief victoria's secret causing big retailer downdraft too not new news but that downdraft is down 16% on l brangdz how about price of oil this morning i would figure that's got to be down in market like this. it is -- you're back to 55 dollars per share. now, this silver lining here -- is that the price of gas will continue totem public if oil is down like this. look what you've got now 261 is national average for gasoline. 41 day all in a row, on the the downside each and every one we're down 15 as we speak. a new poll piengdz americans turning against social media. most say that social media hurts

democracy. that's a change of mood isn't it, ash? >> it is, look, the bottom line is, i have not met one person i've met a lot of people recently who cut it off alt altogether we have market watcher other day say i used to go to facebook all of the time i got off it have. i'm not interested and we have a story yesterday about -- facebook leads to depression. we did . just like that -- 43% say last year think that social media will hurt society. this year it is 57%. ouch. in 2018. so that's why you're not such in facebook -- >> i think the old line facebook model is not going to continue to grow but instagram those businesses will continue to grow. >> but facebook struggled back to 130 dollars share but still 100 below where it was a few months ago if i'm not mistaken. ening anything good has come out of this that consumers are becoming more aware of what they're doing. you're either pay for a product or you're giving part of yourself to use that product

people are understanding that and that is a good thing to come out of this. >> now when a company is hit with a major -- exposure the company stock drops like a stone and some buy it, as a way of picking up on the downside. is anybody buying -- nissan or analt after shock of carlos gone at nissan and he's been arrested charged with financial misconduct. is anybody -- what do you got? >> this is -- s this is the cockroach theory of investing when you never just see one. the one, this is we're at the tip of the iceburg of what is this scandal is bigger if they can contain it there will be a chance with a good company if they do good thing make good car but it's a problem. >> so i have interviewed him multiple times and understanding that japanese corporate society is insular, domestic, and has been in that position for a long team. he's took over the partnership was established in the

mid-2,000s been ceo for almost 10 years stepped down last year already a long tenure in this -- corporate life psych that will you have. but not a surprise because -- you know to be honest, of a lot of foreign ceos there's a lot of mistrust there in that society. >> wouldn't guy either of these. in the a buying opportunity for me but much better buying opportunities out there across the majority. >> we should notice that the dow was down about 400 -- back a little bit. it is coming back a little bit but in for a volatile session any way you slice it down 450 five minutes ago down 378 now okay. we'll keep an eye on. here's an interesting story. ford motor company knows that some consumers especially in china don't like the new car smell. so they're going to get rid of the new car smell -- >> old car smell -- [laughter] they are not going to get rid of the new car smell here in the

u.s. because people like it. they are over 30 products that will infuse new car smell into an a old car. so it's a chinese issue, they have 12 people on staff in china. that are golden noses -- peel that smell that -- that have these senses that say, this will turn off a chinese consumer get rid it have. yuck get air freshener. you can. >> i have to say i just bought a new ford and i love this smell of it. >> i love the smell still a new smell. two months on. okay. no comeback by the way, we're down 381 points as we speak. youtube has added a hundred ad supported movie for free viewing. this is taking a shot at amazon, prime, netflix i guess. of any importance. j i don't think so. the importance is that consumers should be able to get whatever content they want whenever they want it, however, they want to view it and price should be

lower. so it is a win for the -- >> continued battle eyeballs youtube using 18% of the cast second only to netflix. opened google at 1,005 now at 1,19 so i guess you could we've come back a little. now down 398 points this is not what we call a capitulation selling day right, at least not so far. okay is that okay -- >> just against i've said it self times here when prices are low, in stocks that's when you want to buy not run for the hills. if you have quality names unless you're a day trade arer sit at home trying to get in and out of the companies on daily basis look for quality when you see blood in the streets that's when you want to buy. >> i like this turn if we doapght get down to beat the october lows, in the s&p and the we already have in nasdaq i think this will be a really good buying opportunity stu.

smg all, of course, paying close attention to the big techs because -- that's where the driver -- been the driver for two years now they're not driving to downside big techs on screen will you please. because i want to see if there's any kind of comeback at all. the answer is a little -- facebook was down to 127 earlier. it is struggled back to 130. amazon was down about 60 bucks i think. now it is down 38. apple was below 180. now it is back to 180. >> don't underestimate the impact that etf selling having on these big techs. a lot of out and etf dumping raising cash, can have an impact on this so i think it gives an opportunity for people unless you believe that something fund mentally has changed in apple's business or amazon business. you should be looking at this as a price on sale that you want to buy. >> okay please leave big techs on screen i just want to see these things right up that's the

the story of the market today did dr or mike murphy you're professionals hoar you make money doing this kind of thing. do either of you see any of those big techs going back to their old highs? >> absolutely. absolutely -- amazon. timing -- you think amazon will go back -- up 600 from here? >> i think amazon can 30 some odd percent absolutely. when -- >> i think i've been doing this long enough to know it is tough to time it but i think it is a great opportunity to buy some here and it will get it -- but okay how about apple will it go back to 220 it's at 180. 230. 250. . where? >> i think right now we're in a sellers market so the -- stocks are under a ton of pressure so where the bottom is, i don't know for certain. but i think they're on sale right now. but these are quality businesses stuart. like a microsoft, that whether or not it is going to hit a new high next week or next month isn't the issue. are you getting a good entry point here and i think you are.

>> okay dr on screen, big five tech stocks. which of them would you buy now -- and will any of them go back to old high? >> said i've got order many to buy amazon and i'm already in microsoft i would continue to buy a quality business again with mike, and i believe that we will have before any really big bare market capitulation down. i believe we have the bigger chance for a market melt up. stuart, i'm thinking between now and the -- and the middle of next year my prediction is we'll see one of those names at new all time high. >> i want to switch market for a moment. i want to bring in andy to talk about price of for a moment we're down today at 56 dollars a barrel. and as we know, the the price of gas keeps on falling. we're down to 261 with national average as we speak. so come on in andy -- now, you bot it right. you said that the low would be

54 collars a barrel. are you sticking with that? could it go lower? >> well i'm sticking with that for new and it could go lower because oil is reacting to the equities market selloff in addition to the oversupply situation. but as i look forward, these lower prices are now forcing saudi arabia to cult their oil sales. we're seeing production cuts in canada, and as a result i feel like as we go into the december 6th opec meeting we're going try to put a floor in around here. >> hold own a second andy i want to -- ask our stock people here -- if the decline in the price of oil today down a buck at 56. is that a negative or a plus for the stock market? >> i definitely don't think it is a negative. unless you're talking specifically energy companies. >> i'm talking overall -- for the kiewrming, this serves as a credit as money in the consumer pocket so everall when you talk about say retail sector this should be a positive.

>> andy something else you got right -- was couple of week with ago you were telling me that the price of gas could go down ten to 25 cents per gallon. from where it was a couple of week ago, so far you've got that right you were aiming for 2.40 you still see that whatting? >> i'm definitely sticking with that prediction, in fact, i expect national average to be at 2.50 by the end of november. and continue that 41-day decline streak going into 50 days as we get into december i can see it going to 240 to 2.45 given that gasoline futures down another 4 cents gallon today. >> hold on a sending andy -- if you get down to 2.45, 16 below where we are right now, dr isn't that a huge shot in the arm for the economy? and retailers in fourth quarter this year? >> this took words out of my mut a big game retailer and one

thing stuart 15 to 20% of the evaluation of the stock market is somehow tie to energy. depending on how you parse it to get those numbers so it is a little drag on the stock market but it is a big boost for consumer spending and i'm just looking in my home state of delaware 2.13 lowest price for gas this morning. and i passed 216 on the way hoar. >> in delaware -- that's where you live 2.18 that's not the average for delaware. no one station. one station and, i passed 2.27 and passed one station at the 2.16 on the way to train station. why is gas so cheap in mid-atlantic states? >> many mid-atlantic, i mean, they've been plagued where gasoline inventories are 20% higher than this time last year but if you really want a bargain you have to move to missouri with a dollar 93. >> a dollar 93 now where's that

again? >> in missouri -- i mean you've got the costcos, wall with marts, sam clubs all very cheap, in fact, if you go to oklahoma as well as in houston and dallas you've got a number service station below $2 a gallon. >> that's a tumble and a half here worth driving to delaware -- [laughter] i'll visit. for thanks give. now down to 55 dplars barrel. 55.86 heading south. okay, let me ask you about natural gas andy. prices have been all over the place recently. how much more expensive will it get as we he head into the heatg season because i know gas price have gone up recently. >> well, in fact, that gas prices are up 50% since labor day, an it is basically due to the cold weather that we're seeing in the northeast as well as that gas inventory are 15% lower than this time last year. so unfortunately for the consumer they're going to see it in their heating bills over the

next few months. and not only that, nearly one-third of the electricity generated in this country comes from natural gas. so some consumers are going to see higher electricity prices and really that's -- that's bad news for the consumer. offset by good news on gasoline price. >> okay. now i go back to overall market taking another leg down. we opened down 4.50 just about there, and then we came become a bit to down 370 now falling again. we're off 59, 460 points that's 1.8% lower of the day. down 460 points low-of-the- day. that's 1.8% down for the dow nasdaq, though, that's improved a little bit. see on rngd side your screen down 1.9% we have been down 2% earlier. i have to ask you i'm sorry what do you got? >> you have pickup from your larry kudlow interview earlier

on this hour especially when it comes to trade with china whether or not there's optimism. don't forget larry kudlow says that trump wants a deal. he has to do it on american terms. right and that includes protection, tariff production so i would say that there's been a little bit of a lift from some optimism that maybe we'll get some more cordial more woormt at the meeting of the g20 later on this month. >> larry was not suggesting that a deal is eminent he's say -- it is hardline hardline he's there. all three major indexes now are negative for the year. >> and keep on falling look now down 470 points 1.8% but again this is still not the capitulation where you sell everything you've got and walk away from the market. >> to be clear, the capitulation is when people give up unfortunately and turn their investments into cash. and that marks a bottom and then markets rally off that. i don't think we're seeing that at all. but i also believe and this day

of all gore rhythmic trading the bottom will look different than it has in the past where it was people like you and me -- throwing in the towel because weapon couldn't stand cr investment. typically thanksgiving week is positive for markets s&p has been up, six straight year. 19 out of 24 year of doug has actually gained during thanks give we can an might be at risk are of ending that streak. >> an operation so far this year. >> that reflects attitude right now it is a saleless market and barish and defensive so many trying to call the very tend the bull market. someone said this morning that fat lady isn't singing but you can hear had her had warming up. [laughter] hold on you're about to drop 00 points now down 0025,200 down 2% as we speak look at that. and still almost right at 400 point off of the october lows. so still a long way to go before we get down to that, we would have to have another kind of day to get down to october low.

>> what was the octoberly? 24122. 241 not 400 point down. weir 40 point away from 27,000 for the dow. that was just a few months ago. krchght you put your finger on the big problem for the market right now? what is it? i really believe it is sentimentship after midterm people looking for a rally in market we didn't get that but we have china out there which is a big unserpt and peel looking forward saying will we get earnings greet and will gridlock be good for the economy? so i think there's a lot of reason you can look at your port foe portfolio and say sell. >> five increases until the end of 2019 as goldman sachs predicts i'm not sure that -- the fed is going to go as hard as gs is predicting. well president did say if you want your are stocks to go down, vote in the. >> well democrats did win midterm and market went down. the president also warned the

fed not to keep raise aring interest rates. >> he did. well shave shown no sign of backing away from raising interest rates and market is down. correct so maybe president got it right on two counts. fed and -- and the -- he could be but let's be fair fed shouldn't listen to president not to follow him or congress or anyone or storkt they should do what the numbers -- how about bull market does fed immediate to kill -- i mean, time and time again it seems that fed when they start raising interest rates that's when -- >> saying they should do their job. i did ask larry kudlow this morning i think my first question was -- that they won midtermses is that why market is dun and refused to talk politics. >> development to it because you're not going to get tax reform 2.0 i think that's for sure. but i do think the big part of this the catalyst of this is big tech. it has done all of the heavy lifts and now everyone is bailing out of the it.

big institutional players are bailing out of the big tech. >> rotating. they're, you know, rotating and evaluating. starbucks utilities have gotten a lot of -- money as well. banks have not lost after all the value here they didn't partake in runup earlier in ther year if you look at them now they haven't been selling off as big tech. j value overgreet at this point. j but there have been places to go if you want to look at verizon, procter & gamble consumer staples -- that's safety place. but rotating in there, they're not heading out of that like it was in 20 -- i have to wrap this up i don't like the state of player we go down, come back up a little bit. and then go down some more. this is a new low. we're down 517 point we just dropped below 24,500. 51 is that low down we go. more varney after this. our name.

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stuart: coming up on 10:00 o'clock on the east coast, almost 7:00 o'clock on the west coast, we have a selloff on our hands, dow jones industrial average down 500 points almost, backing and filling around minus 500. these are the big losers among the dow stocks, put them on the screen, please, i want to see them. okay. okay. we've got them, boeing is down, apple is down, home depot is down, 3m is down, goldman sachs, all dow stocks, all down big time, that's what's contributing to the 500-point loss for the dow industrials, look at boeing, they just canceled a conference in which they were going to explain what was wrong with 737 max jet. that thing is down 11%.

>> treat it like a trade proxy for china and u.s. trade and you have hardline negotiations -- stuart: larry kudlow an hour ago could not give us positive news on trade and trade-related stocks have come down. ashley: everything he said gave us the impression nothing has changed. that's the problem. stuart: i have more on trade in just a second. show me big-tech names, where are they? i will tell you, they are down and then some. facebook has struggled back to $130 a share, amazon is down 40 odd dollars at 14.65, apple is at 179, dropped -- hoovering the 180 mark, below it right now. alphabet barely up a thousand and microsoft, 101, high 116 but now 101. then we have retailers, came in pretty solid across the board, unfortunately the analysts

expectations were not quite met and down they go. look at target, down 9%, 10% down on kohl's, 2% drop for lowes. best buy strong report, they turned it around up 2.6%, scott shellady, tgm europe, managing director, can you put your finger on one item? >> the one item is sentiment, stuart, right now the technicians are in control, we have the good news out of the way, we are word about what the fed might do in december or the rest of next year, technicians are looking for the downside and unfortunately i hate to say this until we find capitulate and we haven't had that yet. they are looking in downside levels and will keep pushing because right now they have the strong hand. stuart: when you say capitulation, you sell

everything, you throw in the towel, we haven't seen it yet? >> no, we haven't seen anybody give up yet, we have seen early people leave the dance and taken a lot of the things they've made money off the table, you still have netflix up 25, 30%, all the stocks are higher on the year but right now we haven't seen people just totally throw the towel and unfortunately the market won't turn around and the technicians won't give up pressing it lower until they see that happening. stuart: can you put your finger on one thing that would help the market and turn the market around? what would it be? >> you know, i had this argument with myself last night which tells you a lot about myself. [laughter] >> i was thinking one of the feds backed away from rate hike in december but then i think that could send a bad signal to the markets as well. so the problem is this, the fed should keep their mouth shut and stop giving us 18-month outlooks, the markets are looking at rate hikes ahead of it and we got the bad news

behind it. i'm not going to blame it on totally on the fed, we have only raised interest rates when i have been doing for 31 years, the economy is overheating or about to overheat and nobody can tell me we are overheating so that's a problem. stuart: would you agree with, this i think we have the perfect storm of negatives, in your opinion one democrats win the house, you will not get a new stimulus for the economy, number two, in global slowdown, three, no good trade news with china thus far, four, goldman sachs sees less than 2% growth by late 2019, it's a tech bust, they did leave the market, now they are leading it down. that's a perfect storm to me. >> i agree, if you could somehow code that into your computer for technicians, that's what they are doing right now. they have the strong hand and keep pushing until they see people throw the towel in and unfortunately that hasn't happened. stuart: do you see any prospect of any of the stocks which you

and i follow closely, any prospect any that's any of them will go back to old highs any time soon? >> no, at t problem is i'm bearish on the social media things because i think that they will have a difficult time regulatorily going through the next couple of years, subscription-base guys may have a little bit of a run, that's where people made the money and that's where people have been defensive and that's going to be a black cloud for a while. stuart: i just heard a bell go off in the background, what's that's about? >> my time limit, stuart, i get paid after the bell goes off. [laughter] stuart: we are joking, for whom the bell told. [laughter] stuart: could be, shellady. thank you very much, indeed, good stuff, indeed, we may be become to you at some point because this is a down market. the dow loses, boeing apple, nike, visa, home depot, all of them way, way down, all dow stocks and that's contribute to go a near 500-point loss for the

dow industrials, tgx, boeing, et cetera, et cetera. now we are down 500 points, look at that, look at this, every single one of the 30 stocks that make up the dow industrial average are in the red. that means they are down. there isn't a single winner at this point. a couple of them opened higher, now they are joined the dow draft. it's gathering some steam. down 505. >> can i note volatility, we like to track the fear gauge, i wouldn't say there's a whole lot. hasn't spiked as we would expect in this type of nervous environment. pretty much -- i would say it's contained. stuart: if you're investor there's nothing oddly about this. >> we are not there yet, that's what i'm saying. stuart: i think you're absolutely right. this is not a panic market, a sharp downside move that keeps

on rolling down. this is not quite the low of the day but you are close, down 520 points, we are below the 25,000 mark, the high was what, 26 and change? >> 40 points away from 27,000. stuart: that close? >> i was on the floor of the new york new york stock exchange that day. they had the hats ready to go that was the sticky point, resistance at the level. stuart: since early october. 7 weeks shall we call it we dropped about 3,000 points. ashley: apple hit all-time high october 2nd or 3rd that was the high mark. stuart: nail-biting time. ashley: all the way to october. >> always october. [laughter] stuart: now we are down 540 points much better than a 2% loss, nasdaq, i think, is back to its loss about nearly 2%, so, look, we are down all the way across the board. ashley: until the point we had

several analysts say when you get algorithms and computers and you breakthrough levels gains its own momentum. >> we are in the world of etf's, index funds and unwinds some of the stocks and rotate in and out, uneasy short process. stuart: if you're a hedge fund manager, you know that some of your clients are going to say i want my money therefore you will have to sell usually sell the big techs, you have to get out of them, you get the money so you can do redemptions, that's what's going on, the vicious cycle. >> stocks you made money on. you made a lot of money on big techs, microsoft is still 22% by the year by the way. stuart: i don't want to appear smug but -- >> but -- stuart: less than anybody else. [laughter] stuart: earlier this morning i spoke to white house economist larry kudlow, last hour and we talked about trade, roll tape.

>> they will be meeting in argentina. i and many others will be there and we will see how it turns out, you're not going to get a deal unless it suits american interest, that's a key point that president trump is making. stuart: i'd call a pretty hard line, you're not going to get a deal unless it defends american interest. curtis ellis former campaign adviser on trade. hardline larry kudlow probably no deal in the immediate future, do you read it the same way? >> absolutely. it's not just larry kudlow, it's not just peter navarro, you have mike pence, pompeo, lighthizer, everybody understands it's much more than economics, china is a geopolitical threat, espionage, their attempt to command the

world's economy and command the high-tech industries, every dollar china makes they are now putting into missiles that will sink our ships in the south china sea. so everybody in washington understands china needs to be dealt with. stuart: but that dispute with china which doesn't look like it's going to be resolved any time soon that is clearly hurting this market. i mean, we are hurting here, america is china. >> bacon is cheaper than ever. stuart: doesn't that that put pressure on both sides? >> they are paying a higher price. stuart: they are authoritarian communist regime getting more so. they don't have to worry about public opinion. >> people were starting to criticize president xi, they are questioning arrogant attitude and misplaying of this entire

with president trump and that is earth-shattering when you in an authoritarian system have people criticize the ultimate leader, you know there's pressure. stuart: are they doing it publicly? >> yes, in their own, they have a very shaded way, you have to read between the lines but they have ways of using language and ways of saying things but they are starting to do that and you've got the private entrepreneurs in china complaining that they can't get bank loans because all the money is being funneled to the state owned enterprises so president trump's policy is starting to activate the reforms that people have wished for for years by putting pressure on the chinese economy you the private interest now taking aim at the state-owned enterprises that the chinese have promise today reform for years but never have. stuart: now president trump and xi jinping will meet in argentina, i think beginning of next week, i think it's

november 30th. >> november 309, that's right. stuart: i would expect nice things, nice comments. >> yeah. stuart: i wouldn't expect a clash like we saw in south pacific over the weekend. >> right. stuart: i would expect them to say nice things but is he just window-dressing? >> let's see what comes out of communique of g20 summit. i've been involved in this process, all to have g20's, they issue communique, they negotiate language and if they put in -- if we put in a phrase that we are going stand against unfair trade practices the chinese object today that in the southeast asia apec, we will see if get a replay of that, we walked out, these are meaningless any way. i expect to see happy talk about we will continue talks but i don't expect to see a real deal. stuart: seems like both sides especially china side has been

box intoed a corner and it's very difficult for them to get out of that corner and save face, i keep referring to, this it's very important in china, the leader of authoritarian regime cannot lose face. >> but he can say we are now accepted in the club of nations as a big boy, we are not the weak sister anymore and we can play by the rules. stuart: cave to some degree on some issues to be able to say that? >> mike pence, the vice president, and president trump we are willing to deal with china as equals, no more theft, we can leave that part -- we can leave the latter, no more theft, no more espionage and leave that out of declaration and simply state we are dealing with china respectably as an equal and then they say face, everybody can go home happy. stuart: we will see if that transpiring, thanks for joining us, you know what you're talking about, appreciate it.

we are at session lows within a point, down 579 points. >> oil has come off, we are down 5% for crude at the lowest since november 2017. stuart: down 5%. ashley: almost touching 53. >> brent crew lowest of this year. ashley: down 3 bucks. stuart: that's selloff and a half. oil 54, close on 03. that's a negative for the stock market. i mean, there's not a direct correlation but when you see one market selling off rapidly and another market -- look at that, 54.10, down 3 bucks. that doesn't help sentiment on the stock market when you see oil drop like that. who do -- keith, thank you, keith, i'm glad that you came in on this because you have been one of the commentators for years now. i perceive -- keith fitzgerald from the east coast, i perceive a change in mood up until now from the past couple of months

despite volatility there's been a lot buttish thans we would end year high, i see complete change in sentiment, do you? >> i agree with you, stuart, i think this is distinct because you not only have sentiment but you have the computerization and in between the two, you have all of the ingredients unfortunately for negative feedback that you're seeing. >> look, we are really falling now, we are down 590 points on the dow, down over 3 bucks on the price of oil. i'm return to go a theme on the show here, this is not capitula tu -- capitulation selling? >> i wonder about that, really the litmus test for every investor is look at your neighbors, if your neighbors swear off stock forever then you have seen capitulation, we had

vicious selling and really again negative feedback are facing redemptions, etf mess is really the law of unintended consequences. stuart: where is the bottom, keith? >> i don't know, stuart. i think that we have to have a number of things get fixed, companies like ge, sears and facebook even have to be allowed to fail. we have to clean up the etf's, we have to see apple selling stock, china has to come together but number one item is the fed can walk back on raising rates and fix this in 90 seconds. stuart: how would we know that, they won't make public announcement, are they? >> no i don't think they will but they are certainly not media shy, i wouldn't have to be official, well-placed comments the way i look at it. stuart: are you buying anything

today, right now? >> no, stuart, i'm not, there's no need to step in front of a moving train or catch a falling knife. stuart: we are not out of the woods at this point, this is not the bottom? >> that is correct. it's very cautious now, now is the time to manage risk, there's still great companies out there, don't misconstrued what i'm saying but now is not the time. stuart: hold on a second, keith, i want to go back to scott shellady, scott, since we spoke a few minutes ago the price of oil has dropped to the 53-dollar per barrel level, 54. what happened all of a sudden? >> investors are now just looking at raising cash, so if they've got some money to sell, somebody to sell in crude oil, they will do it. gain to capital, margin calls happening all over the place. what's interesting, i agree with keith with a lot of what he just had to say and also thought it

was interesting that in one of those sentences he said it's maybe time to let facebook fail. can you imagine after our last job's number contemplating something like that, i'm telling you right now, the technicians are still in control, they are still going to look for pain points to the downside and until they see the capitulation, you will know and feel it, right now they are in the control and they've got the strong hand. stuart: so back to you, keith, for a second. scott is telling us that it's the internal workings of the market which are really upsetting things, program trading, algorithm trading, the need to raise cash, redemptions, not so much fundamentals of profit and economy and economic growth, it's the internal workings of the market that's going against us, do you agree with that, keith? >> absolutely, scott spined the

tail, spot on, whatever thing you want to do, scott nailed it and they are in control, it's the technical guy that is run this, game of high finance, unfortunately the law of unintended consequences and it's a wide-knuckle ride that no individual investor signed up for. stuart: what algorithms, what tune do they dance to, at what point would algorithms will say, enough of selling, we like the stock, we are buying, when does that happen, scott, you first? >> well, they'll have a lot of different inputs that are programmed into what they are look at when they are trading, stuart, they are trading thousands of times here, they would be able to gauge when the selling starts to slow down and strategy is not working as much. those start to see their profits decline and then that's when they know, hey, this might be the end of this trail and we might want to step back and see what happens. they have all the stuff programmed in and they'll be able to see it just by looking at those screens.

stuart: keith i need you to go back to trading room and i want to bring us -- okay. okay. we will get sean. we got him. we do have call waiting. all right, sha, i'm thinking here there's a change of mood and you're part of it, you've been on the show for a couple of years and you've generally been bullish, you've been buying big tech, you said it'll keep on going up but now i think you've changed your tune, are you now saying you're a bear, get out, are you saying that now? >> well, good morning, stuart, it's not a good morning and, yes, you're correct, i have been a raising bull and i talked the market beautifully, don't forget, fairly early in saying the things we need to watch is the fang stocks, if they roll over and the sentiment has

changed, if they roll over and can't pick themselves back up and bounce watch out for low, they are leading the market lower. i also mentioned on your show a couple of weeks, policy has changed dramatically and the selling is a function of that negative psychology. stuart: on our screen i have the big technology stocks, all of them, way down, would you buy any of them at this point? >> no, i wouldn't, stuart because i don't tend to buy stocks in falling market and especially don't buy stocks when they individually are falling, i buy stocks when they are going higher, the only time i would buy stocks as they go own is financial position and i want to apply, you know, more capital at lower levels, i'm out of all of these stocks and waiting for level bounce where i can buy in as they go lower, i'm not sure what level, they have come down lower than i expected, i

canceled all of them with market reaction and waiting for next level to lower to see where this might all settle out. i am not a buyer. stuart: okay, thank you scott shellady, lots of worries about the federal reserve, will they continue to raise rates when you have a market selloff like this? i should point out that the yield on the 10-year treasury key benchmark for interest rates is down to 3.04%, so you think the fed is going to look at this and say, hold on a minute, maybe we won't raise rates in december, you think, scott? >> yeah, i think they have to be looking at it. number two, that doesn't have to be opinion, if you look at fed funds, general rules on what percentage they will make move, it's come down dramatically for next rate hike. the market is telling us with numbers that they are expecting a lot less from the fed and may

not move next time. the fed unfortunately tried to give us 18-month plan and difficult to get behind and i hate it when they do that it's too hard to project that far out. if anybody could do it, they wouldn't tell anybody about it and sit home and make a lot of money. that's why i find it frustrating, they change on a dime. look at the sentiment change we've had since november job's market. it's so dramatic, it's hard to believe and there hasn't been anything that's really changed in the economy, it's just market sentiment and the folks and algorithms getting behind the selling and trying to find a bottom to push people out that have the weak hand and that's when we come back higher, we have to watch this play out. stuart: sha, 5 negatives, democrats won the house, no stimulus, global slowdown, there's no good trade news coming out of china at least not today, goldman sachs sees the economy slowing late next year and you the tech bust, those are

5 negatives, i'm calling it the perfect storm, which is the most important, what oh do you say? >> right now the most important are tech stocks, stuart, again, they were the leadership stocks that sent market higher. those stocks having such important role is benchmark that is they are in also have tremendous role in lifts etf's that they are all in, not only -- etf's they reside in are selling down because prices are coming down and investors are selling etf's, you are getting hit with negative. everything else you're correct, all of that collectively to me is to change the psychology. stuart: what do we have on amazon? >> disney to divest 22 sports channels, we have reports that looks like amazon is going to get into the bidding for these

22 original sports chance, amazon wants to get bigger in media. this is obviously not confirmed just yet. we should also point out yes network, broadcaster to have yankees games, yankees are interested in buying back, black stone and unnamed well sovereign fund. stuart: that has made no difference to amazon stock price, not that i can see. >> a little bit of a lift. stuart: 22 sports -- >> regional sports channel. stuart: thank you. no impact on the stock. down 26 bucks, below 1500. ashley: also sentiment spreading, french market to 1 and a half year low. euro stock index hitting 2-year lows, so the pain is starting to be felt around the world. stuart: scott shellady, you want to come in, what do you have? >> i wanted to add to this that we won't be alone with the issue with the markets melting down around us and having the fed maybe adding more pain to the

situation because remember the european central bank is supposed to be stopping bond buying program which is meant to keep the economy going in january. we have a lot of those gdps shrinking. they would be in difficult spots coming the end of the year. >> i like where the big money is going, someone like stanley, he's dumped 25% of amazon shares, he's rotated into microsoft stocks so that might be value there. partners, they are getting into brands, sold and dumped all facebook holdings. bill ackman has been getting into starbucks. stuart: scott shellady, sha galani thanks for join joining us on an important day. down 470, back after this.

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stuart: as you can see it is a selloff and a half, we are down 475 points. remember, please yesterday we were down close to 400, now we are down close to 500, that's close to a 2% loss at this point for the dow industrials. show me the big techs because that's the center of the action again today. they're all down except facebook, facebook has made something of a comeback, 131 up 12 cents but it's the only winner among big techs, amazon is down 27, apple down 8 bucks, way below 180, look at google, down 10, challenging a thousand dollars a share and microsoft barely above $100 a share, they are all down big except facebook which

has just turned south. retail, down big, target is down 9%, kohl's is down and i'm squinting, 9%, lowes 3%, tgx, but best buy is up. they all came with reasonable but they didn't apiece analysts, they are down. we should note price of oil, $3 a barrel, down to 54, barely holding $54 a barrel. down 5%, huge drop. that's in relation to the price of stocks which is also down very sharply they are moving in tandem at this point. contributor to it, james, i think there's a change in mood here, little bit of bullishness for the last couple of weeks but certainly not now, what say you? >> yeah, this is turning into a classic panic, driven by a

feeling by investors that we are about to enter a recession in 2019, 2020 at the latest combined with the deterioration in the high-yield market and worries that that may spread, the credit markets are tightening up, combined with the fact that you have broken all of the market leaders, that's a triple whammy which is creating what i would say now is a panic selloff by the computer trading which is programmed to sell more as the market goes down. stuart: wait a second, james, you used the word panic, that's a strong word to use. are you saying that this is the capitulation moment, throw in the towel and walk away, is this the day? >> i think we are there stuart, i don't know if it's today or tomorrow or the next day but i like the risk reward from here. economy remains reasonably strong, stocks are very sensible

valuations, i think the fed is going to read this message and start to soften their tone which will -- which will calm the fears and -- in credit markets, they always say buy when there's blood on the streets, i think there's blood on the streets. you're not going to get an immediate reemergence of fang stocks as the leaders, they've been wounded. i think what you are going to see is quality, sustainable growth companies, the 10, 12% growth companies, microsofts of the world, johnson & johnson it was world, united healthcare ofe world. so i think the risk reward is good but you don't jump back into the fang. stuart: james, hold on, we have michelle with us, michelle, you have been, i'm not going to say bullish but you have been

positive on stocks in general, are you saying this is a temporary glitch and we will recover? >> yes, absolutely. i would say today is the a great time to buy, i could be off on whether it's today is the last down day or tomorrow is the last down day but i look at earnings, earnings look strong, earnings should continue to be strong for quarter 4, we should see double-digit earnings and in 2019 we should see stronger earnings, to me i agree with james, stocks looks valued here and now the time to buy. stuart: i have five negatives that's pushing the things down, democrats win the house, no new stimulus from tax cuts, there's a global slowdown, no good trade news at least not today from china, goldman sachs says the economy really slows late next year and you have a tech bust, which one of these negatives reverses so that we get bounce-back on the markets? >> yeah, i hate to throw goldman under the bus but goldman is

telling what i already know. they said oil was going to get down to $24, i hate to listen to a lot of the gurus because often no one know what is the future holds but i am always a con tar rain and when everybody believes something is going to happen, markets further continue, that's when you get positive swoin i actually think it's positive that you don't see such optimism here. stuart: james, comment on this, please, goldman sachs says that by the end of next year 2019, our growth rate will be less than 2%, are you going to throw goldman under the bus along with michelle mckennon? >> look, we are on economic cycle and it's natural that we should slow down earnings and revenue growth should slow down but that at these prices is

reflected. but with corporate buybacks and mergers and acquisitions and tremendous free cash flow that corporations have, that would be supportive of stock prices, what i'm saying is you're going to get a bounce-back from these depressed levels and then from there go up moderately, you are not going to the kind of bull market that you had. stuart: okay. >> when you've had declines that represents an opportunity. ashley: to that point, jim, what does the fed do, does it take foot off ped all with respect to rate hikes? >> they have to go in december because it would panic the market that they see something that we don't see, go in december and really soften the language the next year, the future's markets have start today radically decreased the possibility of interest rate increases next year and the remain -- keep its credibility

if they went in december and then emphasized the data dependent part of their talk. stuart: we have been open for 1 hour and 6 minutes, it's been down, down, on occasion we have come back a little. for example, we were down nearly 600, now we are down 475, not much of a comeback but some. i have to ask michelle, if you're looking -- if this is a temporary selloff and there's a bounce-back coming, do you think any of the big name tech stocks will go back to old highs any time soon? can you see a bounce-back like the strong as that? >> it's hard. i've said it before that trees don't grow to the sky and ultimately tech was due for a selloff and particularly let's pick amazon, amazon is trading 3 times more expensive than the s&p 500, to me that's signal that is you had to have some type of pullback, but, stuart, i'm optimistic, you have a lot of other names that look strong,

i like value and i hate to say it, i even like emerging markets. stuart: it's up a buck 132, i know it hit well over 200 at high earlier in the year, it comes back a buck in a market like this i will call that a modest comeback. polling, we are scouring market to see which one is doing well. susan, you have one for me? >> invidia, chip maker, missed on revenue, missed on guidance for the fourth quarter, he's just tweeted saying that they would buy invidia at these levels, the stock offers an appealing risk reward to investors, it's still a player when it comes to ai and still

player when it comes to data, there's been a lot of build-up in supply, you know, they make the chips mostly for gaming, however, i think the trend switched to bitcoin crypto mining for chip makers and that's something that invidia has missed. stuart: 50% chopped off. whoa. you can expect that's a bounce. modest bounce but they are back to 150. >> it was up 81% last year. >> to give you levels, 165 before we see 120. stuart: that's a vote of confidence. i have to say thank you very much to jim, thank you for coming and michelle thank you very much, indeed, always good. check the big board one more time. we are down 440 points, that's 1.7%. more varney after this.

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unemployment, okay, those were huge numbers, now, i acknowledge there's a stock market correction and i don't like to see anybody lose any money any time but these things happen, they come and go, i'm just saying the psychology in stocks has gone down a bit. the economy is roaring.

stuart: have to check the market because that's where the action is, do i sense a modest comeback? ashley: extremely modest. stuart: we were down 600, now we are down 400, we were down over 2%, now we are down 1.6%. i'm trying to be positive here, i'm going to call that a very modest comeback. how about big tech, i think we may have a little bit of a comeback there, yes, we do. facebook was at 127 earlier this morning, it's bounced back to 133. that means it's up 2 bucks on the day so far. look at alphabet, it was real close to breaking below a thousand dollars a share, now it's bounced back up to, 91 cents higher, we will take it, $1,028 per share, modest comeback for microsoft, was down 3, now it's down 2. >> amazon was below 1500. stuart: you're right. amazon was well below, down 30,

40 bucks, now it is down $4. ashley: energy sector is the worst performer by far right now. stuart: i'm not surprised, price of oil is way down there. down 400 on the dow, look at the big name retailers, almost all of them are down today despite most of them reporting some pretty positive numbers. i'm astonished at target, it's down 9% even though store sales were up 5%. >> profit margins. stuart: kohl's pretty much the same story, positive earnings report if you ask me, down 7 bucks, that's another 9% drop. lowes is down 3%, tgx down 2% but best buy is a stand-out amongst the retailers, it's up 2.8%. our next guest says this christmas could be the last christmas for a big retailer, that would be jc penny, bill sigh -- simon, kkr senior

adviser, bill, welcome back to the show, you are saying good-bye to jc penny, won't survive christmas? >> they have their challenges, stuart, it's been a difficult summer for them and transitioning in the fall, i like recent moves, they brought in michael, he's a real pro, they are backed into a corner, they don't have the opportunity to grow, they have strategic issues, they don't have the financial resources to invest in the transformation that, you know, wal-mart and target and some of the other companies do, i don't see a lot of places for them to go right now if they don't come up with a big home run this christmas, they are going to have troubles. stuart: when you say that are going to have troubles, are they gone? if they don't come up with big home run in christmas, are they gone? >> they are trading north of a buck, market cap is 300 million or so, somebody will gobble them up if they don't have a good

christmas. stuart: anybody else, i'm talking retailers, any other retailer on the brink, now you could say sears but we know it's down and out, anybody else apart from jc penny and sears? >> neiman seems to be having -- i would keep an eye on them. stuart: wait a second. we will all keep an eye on something, i understand that but are you telling me that nieman marcus is in such trouble that if it doesn't have a fabulous christmas, it's gone? >> no, i think they survive christmas but i think if they don't have a good christmas they'll be pretty weak on the backside. stuart: okay, wal-mart, you used to be -- you used to run wal-mart u.s., are they the biggest threat to amazon, do you think? >> probably the biggest competitor that amazon has right now but i think what's happening in retail and today is a great example of it is that there's a

bit of schizophrenia going on with investors and it's all caused by amazon, not amazon in the marketplace which is one store -- story that's well covered. they sort of recalibrated everything and said you have to give me massive topline growth and i don't care about profit, target who now delivered a strong sales report and, of course, had to invest money to be able to do it is getting hammered on the backside. stuart: why is -- why is target getting hammered when same store sales were up 5%? >> well, it's being evaluated traditional retailer when amazon and the tech companies have sort of set this e-commerce paradigm. amazon interestingly enough got hammered in their recent earnings report because they finally made just a little bit of profit and we saw that impact their sales, i don't think you

will see that again from them, target is a really-well-run company, they will figure it out. it's a great company and i'm impressed with earnings, investment required but they will go forward in a strong way. stuart: bill simon thank you for joining us, we will keep an eye on jc penny and that's a program. they are cueing the organ music. down 400 on the big board, 24,600 and they'll be more varney after this.

stuart: invidia is a chip maker, in the last two trading sessions that thing has dropped 29%? well, a modest bounce-back today, up 595, back to 150. you'd expect a bounce-back after drop like that, would you not? now, take a look at the chip makers because they are under real pressure right now, in fact, all of them are down except, we have a couple that's up, but the past couple of days they have been really selling off strongly and i want to know why, our next guest says it has to do with china. welcome back. >> thank you. stuart: welcomed guest on the show because you will be

declarative aren't you? >> sure are. [laughter] >> look, the economy is slowing down and on top of that you have -- you have rising trade tensions with china which is creating a lot of uncertainty. stuart: does china need the chain chips from american chip makers? >> absolutely. china has ambition plan which states by 2025 they want to be the leader in self-driving cars, 5g, tale -- telecommunications and artificial intelligence, well, those things can't happen without advanced micro chips. stuart: i didn't know that. i didn't realize that we have such a lead in advanced chips and we do? >> well, you know, we started -- we started our semiconductor industry in 1950's and there's

been a lot of investment put into that industry today we are spending, the industry is spending overall about $100 billion on research and development, increasing their sales forces, in capital investments and as a result we've got i think somewhere 10 to 15-year lead versus china in semiconductors. stuart: if they have to have our chips at some point our chip maker stocks will go up because they have to get out the chips, bottom line? >> yeah, my belief is that the u.s. has a very strong hand in their negotiations with china because china needs our semiconductors and ultimately this will drive resolution and when that happens it's going to be a big catalyst for a lot of the semiconductor stocks, you mentioned invidia, other names we like, micron, applied materials, qualcomm.

stuart: is this a buying opportunity? >> it's a little early to jump in with both feet, if i had to pick one to buy right now it would be applied materials. but i would sort of leg your way into it over the next several months. stuart: look, thanks very much for being with us, i did not know that american chips were so far out in front and i didn't know that china needed them badly and i didn't figure that they would go up in price and not too distant future, you're all right, thanks for joining us. >> thank you. stuart: check the big board, we are coming back, half hour ago we were down 600 almost, now we are down 300. it's a rally. back after this. [laughter]

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strongly suggest voting democrat. well, the democrats did when in the market has dropped like a stone. so question, i did democrats to blame? my answer in part yes. odds are with the democrats running the house committee economy will get no extra help. more tax cuts are very unlikely. tax increases, perhaps to pay for infrastructure are not out of the question. in that sense, the president was right. democrats will not grow the economy that is not good for stocks spirit it may be democrats win hurts the market in other ways, too. endless investigations will tie up the administration and the word impeachment brings uncertainty. investors don't like that. plus, the new socialist wing of the democratic party may exercise real influence on policy. investors really don't like that either. politics is going to be a powerful influence on our

prices. who will lead the house democrats? nancy democrats? nancy pelosi, she's 78, with steny hoyer, 79. james clyburn 78. or will it be the new young socialist, and tax big and spend it. investors will not be real happy with either. let's be clear. this market selloff is the result of more than politics. read a nasty trade five at the second largest economy in world, china. outside america there is a global slowdown. that hurts me the federal reserve raising interest rates. that is not a positive and most importantly, the giant tech companies are selling off furiously and that is definitely hurting big-time. in the middle of it, the third hour of "varney & company" is about to begin. ♪ trend to try to look on the

bright side, folks. we're coming back a little. we were down nearly 600. now we are down 331. boy off the lows of the morning. come on in. paul donovan by ubs global wealth management. you hurt my editorial there. democrats are partly to blame for the downturn in the markets. what say you. >> well, i would pay the markets expecting democrat controlled the house. they got all they expected. markets like it when they get what they're expecting. we have gridlock. that means politicians can't do anything. markets quite like it when politicians can't do anything. we surveyed investors in the united states, while the americans come a lot of entrepreneurs, successful businesspeople came out at the midterms more optimistic about the economic outlook and they went into the midterm. i don't think they're behind it. a little more focused on the

noise for getting around trade and uncertainty around that. that's a better story that fits with the movements in the market we've been seeing. >> let me move on to a shaping up to be a blockbuster. wages are up, gas prices are really tumbling. i think that is a blowout fourth quarter. what say you. >> i think if we blowout fourth quarter will be a blowout, not blowout. i'm very happy with the u.s. economy. it's doing just fine. but it's not going to be a blowout because we had the blowout with a sugar high the tax cuts earlier this year. that's faded away to a nice solid growth based on wages and employment. if are going to go for a blowout, have to start ramping up we don't want that. we don't want american spending money on things they don't need.

let's be happy with the nice solid growth number and not try and reach for the stars because if we do it's going to go wrong in 2019. stuart: you have to be careful saying we don't want american spending a bunch of money. be careful with that one. >> money they don't have. i'm very happy with them spending the money they've got. stuart: just want to clarify that when could the nation's top banker, i'm calling in the top banker, jamie dimon says 29 team is going to be the best year on record for global growth. you agree with that? >> i think it's a little unlikely. i know you guys in the media like us to be resized to the decimal point. growth numbers are never that accurate. 2019 will be an okay year. the u.s. is slowing down as the tax cuts made. europe's recovery is now largely complete so it started stabilizing around its rate of

growth. asia will slow down a bit. overall you end up with a decent growth rate in 2019. i would actually think it's going to be a little bit lower than this year but it's marginal stuff. >> added all up and look at the market right now down 360, 24,000 on the dow. is this pretty close to the bottom? we bounce up from here, what do you think? >> economically and i'm thinking us an economist, the world is doing just fine. economically the fundamentals are good and will support decent earnings growth from companies. but what we do has is uncertainty about trade. global trade raising taxes on trade. raising taxes on trade is something which hurts equities far, far more than it hurts the economy. about 80% of global trade is done by the large list of companies that are having problems the stock price today.

if we can clarify some of this uncertainty about trade taxes, reduced the price of more taxation coming in to the global trading system, then yes i think we're close to the bottom in the market annuity recovery coming through pretty quickly. treated to a trade deal brings a nice balance to the market. thanks for joining us this morning. we do appreciate it. interesting story here. private equity firms scrambling to hire young investment bankers. they are paying top dollar to get them as well. according to "the wall street journal," firms like locks down or apollo global management are offering salaries at to $300,000 a year to land the best new workers, youngsters $300,000 a year. >> right out of college would be great. pay off those student loans. stuart: by the way, they are offering more perks to make sure that current workers do not

leave. maybe wall street a nice place these days. >> tight labor market i think. stuart: retail sales target, kohl's,, best buy, tjx, all report for the day. also been reported pretty good sales, but they have ran afoul of the analyst. they are short of expectations. look at target down 9%. cole's 8%, et cetera, et cetera. the attack, check them out, please. facebook has bounced back very nicely. now were $133 a share, up two bucks. the market right now 355 on the downside. that is way off the lows of the morning. we are following tag, trade, everything else affecting your money. don't forget we started the day are talking to larry kudlow. here's what he had to say about the market drop. >> i don't see after the election results, i don't see any evidence what so ever that president trump's progrowth policies namely lower marginal

tax rates for businesses a complete rollback of onerous and burdensome cost of regulations. ♪

stuart: president trump wanted to refuse silent immigrants across the southern border illegally. a federal judge says no you can't do that. the judge says the president's rule conflicts with federal immigration laws and the, quote, express intent of congress. that means if you get one foot in america, claim asylum, you're in. later this hour live report coming for you from tijuana were the first migrant caravan has arrived in there are clashes with local residents there. new york city, mayor bill dubois

see how admits in his ideal world, local government would control all land and buildings in the city. he cites is, quote, socialistic impulse. look who's here to comment on that. founder of the heritage foundation. ed, you've been fighting this your entire life. what do you make of this? >> i can't believe that. i remember when i was in moscow and the way they did it was not very good. the blog see how is flipped out. he's got to give big subsidies to amazon and then it's going to say, hey, you have no property rights. it's crazy. stuart: we've come to this where the major of the biggest and perhaps the most important city in the nation is a socialist who wants to take over land and buildings. i mean, it's come to this.

nothing taken away from the statement. >> absolutely. you wonder what's really going on, going back to some basics. what's going on with our educational system that people who believe in that sort of thing don't look at current examples like venezuela, like you but to see why socialism doesn't work. let alone looking back and see what happened in moscow and eastern europe back in the 50, 60 years the communists were in charge. it doesn't work. the market does work. it goes for the highest and best use of any property and why deblasio doesn't understand this i don't really know. stuart: but you know capitalism and the market is just not fair. you know that. >> that's what they say. capitalism and the market means basically two people come together and people decide it's in their interest to make a

transaction. if i'm buying a carton of eggs at safeway, i'm willing to buy it. safeway means are both happy. i know you want to talk about the deficit and i know that you want congress to address the deficit. i know that you worry about a dead bond. but you know as well as i do congress is not going to address that that bond with the deficit. >> it's very, very hard to come up with a real plan. i'm very proud to present i came up with 5% cut. i hope that's going to be enough because the problem is the spending side. the problem is not the revenue side. revenue for the fed keeps going up. when we get back to slightly higher interest rate and the

cumulative interest every year starts going up, people are going to really start to understand what's going on with the federal budget i hope. on the positive side i guess republicans will probably make a big issue out of this because they can't do anything about it right now in the house. the boy, they've been ignoring it for the last two years much to her chagrin across the conservative spectrum. stuart: add to feulner, always a pleasure having you. happy thanksgiving. >> just told that screen for a second. the dow was down 370 points. that is a come back. we've been relatively calm at a minus 300 for a little time maybe 15, 20 minutes. i'll be interested to say which way do we go now. further improvement or further down. it's a key point in the market.

>> elling has turned around. boeing has been down dramatically the last few days and even not briefly i believe touched into positive territory. not sure if it's holding there yet, but we had intel turnaround. stuart: now we are going down a bit more as we speak. i should've been quiet there. check the price of gold down 1200 bucks an ounce. down 90 cents. bitcoin, bloodbath against the crypt does. down to 4000. stuart: you're looking at capitulation right there. closer at 20,000 last year. remember that? stuart: that's right. almost 20,000. and now we are up 4600. stuart: shown the oil because that's a big tumble right there. we are down to $54 a barrel. that is down nearly 5%. that is a big draw.

the national average of gas keeps on falling. we are down 41 days in a row. we are at 261 interrupt the program today we have predictions that will get down to 250 or below national average. monday night football, the rams against the chiefs honoring the first responders who have been fighting those wildfires as well as those who were first on the scene at the borderline bar and grill shooting on november the seventh. the rams came out on top in the high-scoring monday night football game ever. the final scores ran 64, chi 61. the first time ever they scored 54 points in an nfl game in lots. you get it all on "varney." i do know that. and there will be more "varney" after this. nah. not gonna happen.

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a guy just dropped this off. he-he-he-he. stuart: he said were stabilized him and the loss of 370. now are taking another step down a 428. off the lows of the day but only just. holiday season in full swing at the white house. president trump and the first lady will welcome peas and carrots to lucky turkeys. take part in the annual thanksgiving pardoning ceremony.

they spend the night in the presidential luxury d.c. hotel. once their part and then they will be pardoned to have the rest of their lives at a sanctuary in virginia. were talking about this trumps welcome this year's christmas tree. a fraser fir from north carolina but it's decorated and will be displayed in the blue room at the white house. later today president trump had to mar-a-lago. he's going to spend thanksgiving with his family down there. going to be a frigid thanksgiving for parts of the country. in new york temperatures in the 20s for the big parade. when guys predicting 30 miles an hour making it feel even colder. whether not expected to be really big issue for your travel except maybe the west coast weather is going to be heavy rain likely at least. aaa predicts 54 million people will travel for thanksgiving. 54 million will travel thanksgiving. that the highest number in more than a dozen years. if you still need to shop for

your holiday mail, good news thanksgiving dinner costs are at a low level in eight years. american farm bureau says the average cost of dinner for 10 people it's about $49. that is 22 cents down from last year. the big reason for the price drop. if you're ready to put up your christmas tree come you cannot get one from amazon delivered real, full-size christmas trees. amazon said they'll come from farms in north carolina and michigan. they range in price and size of course. prime customers get your tree for free and delivered in three to seven days. i love this story. christmas came early in one town in vermont. the man went to the local wal-mart and paid for all the layaway items that this door. he wants to remain anonymous. wal-mart has not said how much you pay for the items but a worker says it was likely several thousand dollars. merry christmas. that to the market.

we are down 420 points and the big text mostly lower except for facebook which is bounced back at 132, and up 89 cents. coming up, ray juan has been very bullish on tech. what's he saying now. check the big were down 400. not after this. -- back after this. ♪ i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here,

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stuart: heading a bit further south. they are all down and it's down 464 points. getting close. goldman sachs says the economy is going to slow next year predicting less than 2% growth by the second half of 2019. peter marie c. is with us. you think the economy is going to slow down that much. >> my big concern is the fed keeps sending the wrong signal. just about everybody on the planet except the people who sit in the opium market think the maximum sustainable interest rate, you know, the federal funds rate is 3%, perhaps a

little less. that gives everybody nerves. they can keep saying we're going to stay on this path methodically marched government by data. stuart: they can't suddenly turn around and make a public announced that they would've changed our mind. they can't do that. >> well, i don't know that they have to send a signal in their voting that they're going to move it a three-point diaper sent by 2020. i do think they can send a signal that maybe they might only have to rate increases next year instead of three. stuart: do you think they're going to do that because were going to market selloff in part because of the federal reserve. do you think they'll make any announced men or move to the fewer rate increases. >> they won't announce it. but what they could do is when they vote on their expected interest rate to be under 2019 in the end of 2020 and so forth in the forecast, they could

indicate a slowing pace that way. that's where we get the three-point 4% from. i don't expect to make any announcement before the meeting. look yesterday at the homebuilder sentiment. that's the only measure of traffic that we have going into the show rooms and that was in the pale. i was in the contraction range for the first time in a long time. the equilibrium mortgage rate is now much lower because of the removal of the mortgage interest reduction for many families in the elimination of salts. >> not you. i want to talk to you about trade your president trump in xi jinping meet next week at the g20 summit. do you expect anything positive to come out of that meeting? not a huge agreement, but just anything positive. every going to get it? >> it depends what you mean by positive. the president may be feeling he needs to do something about the stock rocket because the stock market is the economy when it

not. so he will reach some sort of cease-fire. that would be very bad news because then the chinese would go to the end of his first term. there would then be no progress on trade. the deficit would continue to get worse as it has been doing for the trump administration because frankly he hasn't been that tough yet. >> do you expect china to turn around and get any kind of -- make any kind of positive statement at all, to cave at all from america's demand? >> well, the chinese are very good at saying they will reform and they might even offer to say they will reform and promise to do better. we won't have any tangible thing that will permit us to hold them to those commitments. the chinese may say something like that to get trump off the hook. i think that would be a terrible development. it is very positive in rally, but long-term it would be bad for the country. stuart: you think will win this

fight with china, talking long, long term. >> i think need a different economist and peter navarra to win. talk about whether you should have a tariff or not have a tariff. if you can have a tariff you've got to do it right. you don't put higher tariffs on bicycle parts then you do bicycles. you don't put tariffs on the component to make a product, but then don't put tariffs on the final product. you don't give a pass to apple on earbuds for pete sakes. they have to do it properly and they're not doing this thing properly and i told the white house before they put the 10% and on the 220 billion. i went over to the west wing. if you put it in, they're going to wipe it out with an exchange rate adjustment and that's exactly what they did. if it goes to 25% and it's across the board, first of all none of the bicycle parts problem. the second thing is quite another thing to let it drop by 25% to wipe it out. then they feel it. beyond that they have to do

things with the dte thing, not flinch there. cut them off. the oil from iran, don't flinch there. turn the screw, cut them off. they have lots of tools at their disposal. decides not getting tariffs right among the biggest problem they have is they just don't believe this is a problem. you've got this division in the white house and you've got a compromise policy. when you're at war you don't thing by committee. you don't compromise. you go for the jugular. i don't think really has been in think. the hawks in town thinks he's the man of the hour on trade. i think he looks more and more to me like chamberlain. stuart: fighting words there. we hear them. thanks very much indeed. good stuff. take a look at attack. we've got a turnaround here. amazon was down way below $1500 a share now to 1514, up nearly

$2 on the day. facebook has completely turned around. down to 126 at one point. lowest level since january of last year. now at 131, nearly 132. also that as in google now up $4 having been down substantially earlier. we've got them mixed back in a little bit of turnaround on some of the big tax as we speak. amazon may notice is now right there. another tough day for the group as a whole i have to say. ray wong is that the term consolation research. come on, you have been on this program a lot recently and every single time you've liked every single one of the big tech stocks. if people followed your advice, a lot of them would've lost a lot of money. what you have to say? >> you know, you're right. promised a trillion done a market cap, but i'm here for the long haul. even facebook, which i would probably jump at this moment,

you're looking at where they are. 2.5 billion users with the fundamentals are there. whether it's software, card companies. there is still growth there. i think we are getting routed by the market, by the fed interest rates. those things are sitting in the back of investors minds but i know they're going to come back after january. stuart: are they going to come back to their old highs because they're a long way away from their old highs. are they going to come back? >> was going to happen as we realize the cyclical consumer products are doing 10% to 15%. that's wonderful. where am i going to put the southern money. so much money in the question is are we going to leave it somewhere or put it back. that's going to come back after the new year. stuart: what is your prime pick against the big-name technology stocks here but would you buy now? >> i agree with the other gentleman earlier.

i think that amazon and google are going to do well partly because they have multiple business models. amazon isn't just about retail. it's got a clock component doing really well. google isn't just about search. it's got all these other things happening whether it's an ad tech, but also in the cloud. when you've multiple business models, a large base you'll do well. apple is not going to get back to the top for a while but that's because it's got software and services that have to ramp. when they get 20% of revenue and software and services, people wake up and say wow, what an awesome install base and their growing average revenue per user. that metric that matters. not about monthly active users, it is how much can you get out of each consumer, each user. that's where we see growth numbers the backup. stuart: ray wong still likes them on the show. you do. i can tell. thank you. see you later. migraine care of in a tijuana. people living there not happy about it. william la jeunesse in tijuana

right now. are people there expecting any sort of confrontation at the border? >> stuart, not that i'm aware of. there's a little bit of chatter that over thanksgiving when the border patrol might be on kind of a skeleton staff, that people might want to run at the border than, but that is just scuttlebutt. but people are talking about here is this judge's decision last night, which basically said the administration cannot do what it has been doing under the president's proclamation november 10th. limit to you the administration was trying to do. this is the line here. i'm at the port of entry. funnel people through here. they go over here, sign in on a list. right now the list of 3000 names and people like this would wait in line in each day the united states would take 30, 50, maybe 100 names and process those based on capacity. this is happening not just here

in in tennessee though, been a palace, war is, mcallen, texas. same situation. a judge says can't do it. appointed by president obama he said the president does not have that authority to rewrite immigration laws and immigrants are allowed to claim asylum anywhere they want along the 2000-mile border from san diego down to texas. the dhs put out a statement earlier same congress has given the president the authority to restrict entry in the asylum discretionary based on capacity. the administration is likely going to challenge that. they didn't say that today but in all likelihood they will challenge the injunction. it's important because in tijuana is about 10,000 immigrants waiting to get to the border. many who decided to stay here at work because they couldn't get in the border, but now with the decision they might attempt to try that. it doesn't matter. the take a look at this. this is mexico come united states. across the line, you arrest me. i claim asylum you have the process me.

that's the way it is now according to this judge. traded to william la jeunesse right in the middle of it. lots of big stories we follow for you including energy. the price of oil is way down and so is gas. when it comes to nuclear power, one of the biggest competitors is china. looking at advanced technologies to help us compete, america compete better. one is a nuclear fuel they buy light bridge and that companies with us next. plus, longtime marco watcher jima wallace back. he says do not panic. the voice of reason in the selloff and we are down 400. ♪

>> earlier in the show, national economic council during larry kudlow talked about progress on trade with china. take a listen. >> we believe china would like to have a deal. but he is also told me on a number of occasions, any deal between the two countries has got to be in america's interest. without any question. and it's got to include fast, changed in ownership, scott to

his top the transfer of technology. it's got to go to zero tariffs and zero non-tariff barriers. it's got a habit for stability. it's got to have struck timetables. it has to have frankly more than we've seen so far.

stuart: already, literally a couple minutes ago we were down

400. now we are 380. not much of a change, but a little bit. dare i say it taboo or disability getting in there. either way, we were down a hundred points earlier in the day. look who's joined us on the set. he was on the phone on the street outside your now he's on the set. jamesa watt is back. you say don't panic. are we near the bottom? >> if? >> if you're not dare come you're statistically they are. you are getting there you could have one final leg down. the two things you don't know or the quantitative trading, the black hawk says that her program to sell when the markets going down until the algorithm tells them to stop. and the potential retail investors to comment and dump their tts. it's possible you could still have some more downside. what i'm saying is if you're willing to look out over six to 12 months from here the upside is greater than the downside and any downside will be short,

quick and remember and 87 we went down 20% in a short period of time. if he just hung on a few months later you were okay. conditions for a bear market or not there as long as the credit markets stay in shape. not worried about the tariffs they the terrorists there. the one that doing were trying can declare victory. i'm not worried about the fed. they're sensible people will back off when they have to back off. is what you worry about is the credit markets, the high yield market starting to get shaky. if they spiral out of control, that in turn could cause a recession. right now if you look at the long-term chart, while they have widened a little bit over the last week or two, they are still way down historically for where they were the last time you had a credit crisis. if i'm wrong and were going into a recession in the bear market, it will be because all of a sudden the credit market dissipate. i think the odds are against it.

stuart: this is a holiday week. markets closed on the thursday. there's not many people trading on friday. do you think there is a possibility of people getting out? not panic selling, the really heavy duty selling later today and into tomorrow because you don't want to be holding stocks over a long holiday. any chance of that? >> my guess is not. turning tomorrow people are going to be traveling. if there is going to be a leg down it would be today, not tomorrow because people start to focus on thanksgiving in getting where they're going to go. let me emphasize that it pictures that were to happen, you want a you want a picture while you want to picture wallet out and put your money on the table because you always win and america winners. of deep distress. you have to say if you look at where stocks come from september high as they are done a lot. i'm not making a case for going back to new highs. i'm making the high quality

durable, sustainable growth companies will be higher in six months be hiring 12 months. stuart: got to have a strong stomach, don't you? >> and a long history. stuart: uni qualify there. thank you very much for coming. our next guest is the ceo of a nuclear fuel technology company. he's now working with the fed to help our nuclear power industry compete against china. seth gray is with us. ceo of life bridge. seth, welcome to the program. tell me please and away i can understand that our viewers can understand what is your nuclear fuel deal? what's so good about it? >> well, the department of energy and the congress are both taking majors that that will be announced at the same to support production of something called high ethanol low enriched uranium which is a material that would put into light bridge's fuel will make nuclear reactors already running produce

electricity that is the lowest cost on the grid. it will dramatically improve the economic and nuclear power. will also dramatically improve safety reactors in what's already the safest industry in america. so what the government is doing compounding with private industry is going to be taking major steps to advance nuclear. light bridge will be the first use this material. will house demonstration in a research national ad in 2020. a commercial reactor that's powering 21. and then, other advance kinds of reactors in future years. we'll also use this material. stuart: this is not a new kind of reactor. nothing to do with the safety of nuclear power. nothing to do at the public relations image of nuclear power. it's a new type of nuclear fuel or in addition to nuclear fuel that makes the electricity product much cheaper. that's it.

repeat for me, please. you don't have to build a whole new planet for this. you can use an existing plants, is that accurate? >> that's absolutely right. the light bridge feel with this material in the department of energy will be providing them use the fuel will accomplish that goal. stuart: okay, sorry to keep this short, but we do appreciate your information today. i just got a whopping selloff stock market to deal with peer we'll bring you back at some other point in time. seth gray, light bridge guy, thank you for joining us. >> thanks, stuart. stuart: you have to look at nvidia, the chipmaker. in the past two trading sessions that thing was down 29%. that's a selloff in the house. but it's a modest rebound today backups xbox 151. >> alltel ui. he said it's a buying opportunity because he basically says the inventory problems might be behind us and they could go back up to 165 before it hits 120. stuart: the nation's largest

e.u. sports stadium is set to open this week in arlington, texas just outside dallas. the city spent 10 million bucks on arena which holds 2500 fans. it has an 85-foot screens to viewers can see all the action. eight teams will play the game counterstrike. the winner will take home three quarters of a million dollars. in the sports stadium texas, got it. pfizer raising prices on more than three dozen prescription drugs next year. most of the increases will be about 5%. why are they doing now? we will deal with it next. a business owner always goes beyond what people expect. that's why we built the nation's largest gig-speed network along with complete reliability. then went beyond. beyond clumsy dials-in's and pins. to one-touch conference calls. beyond traditional tv.

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stuart: this seems to run counter to the trump administration would trying to do with prescription costs. pfizer is raising the price on about three dozen prescription drugs next year. the increases will be about 5% in price. joining us now is beating obama camp walter betsy mccoy. >> and i'm saying, stuart, don't fall for the political demagoguery. drugs are for 10% of our health care budget.

99% of the politicians demagoguery because they know that consumers feel it in their pocket. they pay directly for some of these drugs. stuart: wait a minute. we have a trump administration and alex is our on this program saying they're trying to get the cost of prescription drugs down making sure that we in america don't pay more than they pay for the same drugs overseas. now here we have pfizer raising the price next year. that will clearly run counter to what the trump administration is trying to do. >> in fact it doesn't because the trump administration has put into place market incentives. market incentives to push drug companies to demand higher prices from their foreign government customers now will provide them as they are indeed that is currently being shouldered almost entirely by american consumers. but it will take time. step one is to deliver to hospitals and doctors offices.

this is not yet apply to the drugs you buy over-the-counter. stuart: advisers raising the price. >> let's deal with the facts. the fact is these drug companies have profit margins of 12 by 5% to 15% on average. that is lower than the computer industry. lord in the air as base industry. stuart: why are they rising prices? >> are raising prices because if they don't have an adequate return on the investment, money that investors put into that company, they are not going to be able to continue with the r&d. right now these stocks are underperforming the doubt because investors can take their money to another industry like computers and make more money. you know who suffers then? people who have an internal illness. they're waiting for the next breakthrough and we need more companies to be sufficiently profitable to invest. stuart: okay, not bad. betsy, thank you for image for joining us.

i'm just joking. fedex. going electric. announcing its buying a lot of brand-new electric video tracks and they're all coming from china. didn't know that. the story after this.

stuart: fed ex making a big investment in electrics. they are buying 1,000 electric vans from a chinese company. the vans can go 150 miles on a single charge. fed ex says they will use them here in america. and ford has filed a patent application for an odor removal process that gets rid of the new car smell. consumers in china don't like that smell. they say that bad smells are the top reason not to buy a car. i just got a new ford and i love the smell. i really do. check the dow, on an intraday basis. this tells you the story of a little volatility. look at that. down, up, down, up a little bit. right now, we're down 387 points

but i got to tell you, at one stage this morning we were down very close to 600 points. >> the nasdaq slicing its losses in half, almost. stuart: we shall see. time's up for us. connell, it's yours. connell: boy, the chinese don't like new car smells, in the middle of everything else, with the market down so much. stuart: thought you would want to know that. connell: we should roll up in a bunch of new escalades at the new trade negotiations, see how it goes over. thank you, stuart. great show today. we will see how we do in this market. i'm connell mcshane, filling in for neil. it's been some day already. trade worries have been weighing on stocks, big-time. the s&p 500 briefly dipped into what we call correction territory, down 10% from a high. once again, look at all 30 dow stocks. they are all lower today, and apple is among the biggest drags. we are going to talk a lot about big tech, apple