ashley: what would he say today, stu? he would be mortified. stuart: he would be appalled. i don't like your opinion, not allowed to have it or state it. >> shut up. liz: that is free speech. stuart: which have it, con -- connell mcshane in for neil connell: great show. i'm connell mcshane filling in for neil one more day. we're in rally mode at the markets. we're getting a bounceback seems like long overdue. the way markets are acting of late. big tech is up. oil is bouncing back. a couple things from overseas.

some signals from italy of confidence in the eu budget deal. and then, we have the retail optimism here in the united states. it is cyber monday after all. stuart was saying a moment ago, we're set up to maybe break all kinds of records we have joan layfield. and jack ablin. you were talking about traffic being down in the stores or looks like black friday or cyber monday will break all the records. what does it tell you about the state of the consumer? >> one of the things i was remarking about i think it was last month as investors sentiment was hitting near bottom of the barrel lows in

terms of bullishness, consumer attitudes, consumer sentiment was hitting all-time highs. the good news is as you rightfully reckon, that consumer sentiment does tend to lead retail sales and we expect strong numbers this holiday season. connell: now everybody's thought or question, john, is whether you know all this can last. which had so many conversations to jack's point last week where everyone was saying the future won't be so bright even if the present is set up pretty well. what is your take? >> i agree with that completely. i agree with jack. consumer confidence is the highest it has been in 18 years. wages are up, we have full employment. i think we'll have a fantastic christmas season. i think probably the best christmas season we'll ever have had. apple could do 100 billion-dollar quarter with a little bit of a upside. the first time a company has ever done that. the question is this the last hurrah? we have a lot of headwinds. i don't think the economy will

slow precipitously. i think there is slowing and global demand for gdp is falling. connell: it is interesting as we look at some retailers what they have done this month, stocks, amazon and the rest certainly pulled back. are they in places now, jack, where you look at it, that is why we're wondering whether the market is bouncing or some sort of near term bottom has been put in? you know what, these stocks have fallen a lot and they're pretty attractive buys right now? >> they're certainly, connell, a long-term buy, there is no doubt about that. there is a lot of enthusiasm priced in certainly this year. i think a lot of it, maybe leveraged to what is going on with these trade talks, upcoming trade talks between president xi and president trump. so i think if they hammer out even some kind of an agreement, i think we'll see these tech stocks really rally back. so, you know, it is somewhat of a short-term bet but i think long term a lot of these names are a great place to be. connell: almost like a week,

john we've been looking forward to for a long time. you get the fed or the china trade talks that jack is referring to, and the fed chairman speaking on wednesday. those are two things. if you say to people, what is hanging over this market, what is holding it down, what are the catalysts for selling, those are one-two in people's mind. depends who you talk to. the others say it is the fed. others say china trade, some say it is both. do you think we'll have resolution, a different story, john, a week from today than there is right now? >> i hope we do because everything negative is priced in. theresa may, you add in brex sit, december 12th is the vote on this. this is not what the uk voted for. i don't think she has the votes to make this pass december 12th. you have everything negative as far as "brexit." you have also, i think everything negative as far as meeting expectations with president trump and president xi. you look at china, they think they're negotiating from a position of strength. so does the united states. that does not portend itself to

finding a solution. i don't think the market thinks there will with be any solution. any upside here would be very good for the market. connell: there is definitely room to surprise to the upside. you might not solve everything this week you might not solve everything next week but if you make a move, jack, to say you're making progress i suspect that is good news. if the look at the american consumer, to john's point we are expecting a slowdown in the economy next year. we saw a lot of good signs over the last week, not only number is huge but who is spending? lower income americans picked up their spending that to me seems like a good sign the economy is in good shape. does that fall apart because we don't have trade solved or interest rates keep going up bit by bit? >> no, i think that's great news. in fact the lowest income categories seen the incomes rise the most over the last five years or so so that's pretty strong news for spending. good news for the economy

certainly. but i think that you know, one of the things that i certainly worried about was, this trade deal, was it a tactic, now it turns into a strategy? you know if we don't get anything, now this is a long-term policy. that will certainly create some friction, create some headwind as we're trying to grow the global economy next year and the year beyond. connell: that is an interesting duane shun. tactic versus strategy. people are trying to decide which is which. thanks for joining us today. we appreciate it. we'll talk more about trade with president trump set to meet with xi xinping at the end of this week. that is when the g20 meeting begins in buenos aires, in argentina. there are fears and more is being written about this, trade tensions could make products more expensive. as we get great deals this holiday shopping season will the same be true next year? swiss american trading corp.

chairman craig smith joins us now. i wonder if that is getting ahead of ourselves, craig, or is that a legit concern? hey, get it, this holiday season is great, we're getting everything on sale, so conditioned on deals. but everything will be more expensive next year if this trade war continues, what do you think? >> if it continues, you're absolutely correct, connell. things will get costly. you will have price inflation. that will be passed on to the consumer. it will not be very beneficial but i have got good news, connell. connell: all right. >> i believe that president trump is going into this negotiation at the g20 in a position of strength. i think he has quietly amassed a trading bloc, connell. think about it. the usmca deal. they have a veto provision in there if canada or mexico signs a deal with another country at verse to america they can stop the deal. so i think i think president trump has all the cards, connell. i'm very positive about a

outcome this saturday. connell: what type of an out come? what is a positive out come? nobody says the whole thing is solved, i guess it is possible but people don't seem to expecting that. in fact to john layfield's point they're expecting very little. when you say outcome, what do you mean? >> i agree with john, by the way. you have two sides intransient on their position, i don't think you have a lot for negotiation. however, i think china is much like north korea. they have been living in the 19th century. about time they get in the 21st century. i think you will start to see that in negotiations. i really believe in this guy, mr. lighthizer. i think he has done a tremendous job, connell. i got to tell you. i'm very positive. the chinese, look there is a 375 billion-dollar deficit between us and china on trade. i think it can be worked upon. i think president trump has played this right. and look, people can argue and criticize president trump how he does things, how he talks, but the net result is very good connell.

connell: we don't have a result yet. we don't have any result yet. >> but that's true but i think you're seeing signals, connell, that shows all the pieces are in place for a deal. that usmca deal, if you look deep in it, i hope connell approves it, congress, that gives president trump huge leverage trading with the chinese. i think it's a very positive move. connell: in what time frame? that is one of the big debates and one of the things that hang over the market. the economy more broadly as well. maybe over time some sort of deal is made but in the interim there is a lot of pain to get through. there is costs going up for american companies. the costs are passed on to american consumers. the economy slows down as a result. the stock market sells off as a result. today it is trading higher, that we get some sort of a deal done. what is the time frame we put this behind us, this situation with china? >> connell, you probably hit on one area if we could answer that question, boy it would change

the whole dynamic going forward. connell: it years and years or months and months? >> i think it is months and months connell, and let me tell you why. we do have a slowing worldwide. i don't think the chinese are in a position with the debt they're carrying to allow the slowdown to affect their economy. the chinese are willing to being sacrifice, go through pain on short-term basis, they think of dynasties, and we think 90 days are long term. i do think the chinese are ready to cut a deal. they want to see the growth continue worldwide. i don't think they will stop it trying to get into a big war with trump, i don't. connell: to a final point, not a big one but they're already in one, what is something reach side could give? if you're china, you come, what is the olive branch you think show to speak? >> gosh, i love your questions. one place is intellectual property. years ago we used to give chinese donations to campaign. they got secrets on rocket

technology. nowadays, just steal it. connell: right. they denied that until the end. i understand that, i mean i understand it happens and american companies will tell you it does. it get them to actually publicly admit that seems farfetched. >> absolutely. if you could, then say look, we're going to look into it. some type of olive branch says the chinese are willing to deal with what is costing us billions of dollars a year. connell: right. >> you got to remember, intellectual property is a big thing. no longer just hollywood. it goes all through the technology world. connell: we'll not put tariffs up to 25% as a result from 10 or something like that. then you have the minor deal. >> you have $200 billion will go from 10% to 25%. i don't think it will happen, connell. i'm really optimistic. call me back next week and either tell me i'm an idiot or tell me i i am a genius but i think this weekend will be produce good results. connell: neil will be back by then. he won't call you an idiot.

thanks for coming on. >> thank you. connell: a number of investors have a lot to digest this week. we'll lay it all out because it will be a big, big week. congress is back in session, for better or worse. congress is back in business. threat of a government shut down. they will vote on house speaker by wednesday. thinking is nancy pelosi will lock that up. it is a question and open one. as i said earlier one of the big one for the markets, jerome powell fed chairman speaking in new york on wednesday. that is huge. it comes ahead of president trump's meeting with xi xinping at the g20. it is all important. a big week for business. a big week for the economy. we've got you covered all week long on fox business. the battle over border funding, president threat to shut doesn't border and do it permanently. a key senator on whether we see a government shutdown. we'll be right back. ♪ ♪ there's no place like home ♪

argh! i'm trying... ♪ yippiekiyay. ♪

mom. ♪ connell: get to immigration now as president trump threatened to permanently close the u.s. border with next he corks imploring congress to fund his worder wall -- mexico. blake burman at the white house with the latest. reporter: this in part in

reaction what we saw with the u.s.-mexico border, one of the busiest points of entry north of tijuana, when it was shut down, for handful of hours, after the u.s. border patrol had to fire tear gas on hundreds of central american migrants stormed their way into the u.s. trying to make it into this country. the president sent out this tweet which he re-upped possibility maybe the border might have to be shut down all across the border. this is what he wrote, he said, quote, mexico should move the flag-waving migrants, many of whom are stone cold criminals back to their countries, do it by plane, bus any way you want, they are not coming into the u.s. we will close the border permanently if need be. congress, fund the wall. the u.s. border patrol is defending its decision today to use tear gas. watch here. >> our agents were being assaulted, a large group rushed the area and they were throwing rocks and bottles at my men and

women, putting them in harm's way as well as other members of the caravan. we needed to disperse the group. with that assaultive nature it was imperative we disperse them from the area. reporter: the second part of that tweet, connell, was the president calling on congress to fund his worder wall. that is important. there is a major showdown looming here in washington. congress returns back from it thanks giving break this week. december 7th is next friday. you have what, 11, 12 days, until then. that is when there has to be a government spending bill put forward. if there is not, there will be a partial government shut down, that would affect the department of homeland security. one of the issues at play is funding for the border wall. just how much the president will get. keep in mind this is just 30, 40 days or so he has, an entire republican-controlled washington. the house, senate, white house. so we'll see how hard he pushes on this and what democrats are

willing to give him. connell: whether we go out on a shutdown. blake, blake burman at the white house, thank you. on the issue about funding the wall and whether that fixes these issues, that you're looking at on the screen, former i.c.e. acting director joins us now, thomas homan. is that what it comes down to, you think? you think this migrant issue goes away if there is funding for the border wall, it all gets solved in congress or far more complicated than that? >> far more complicated. the wall is piece of it. every place there is barrier has effective on illegal immigration and drug smuggling. it proves effective 100% of the time. also fix the loophole on asylum and we need to fund i.c.e. last numbers i saw, congress fund them at 10,000 less beds and i.c.e. justified them. if they don't fund i.c.e. with

enough beds, we're back to catch and release in this country. that is big piece of it. connell: not only fundings of the wall, but funding of the actual actual department. this that is up for discussion before the shutdown or something that happens next year? >> the cr for the department of homeland security which includes i.c.e. i.c.e., whoever border control catches i.c.e. has to detain. if we don't have enough beds, they're back to catch and release. if we're back to catch-and-release, it entices more people to come. connell: we're happening what is on the border now. to blake's point, you had it over the weekend, a group of migrants tried to rush the border. tear gas was used. critics of the administration's policies says hey, that was over the top. what do you say to people that was inappropriate, use of tear gas on the migrants? >> strap a gun to a hip and put a kevlar vest on, stand a post. these men and women stand there to defend this nation. that is appropriate law enforcement response in a dangerous situation. they did exactly what they're

trained todd do and exactly the right response. connell: how do you see this playing out? do you think it escalates or gets worse or better, what do you think the next few days or weeks are like? >> i like to see what mexico can do. they can enter into agreement asylum-seekers can stay in the mexico while cases are adjudicated in united states that would help. mexico needs to show force on southern border. thousands and thousands immigrants crossing illegally through mexico. mexico needs to stand up to their southern border. a lot has to do with the mexican response will be. this will not get better quickly. a response we do right now so important. the other caravans are watching. central america is watching. we have solid response. we have the right president at the right time to respond to this issue. connell: what about the right, to your point about mexico the leadership there? you have new leadership there. what is your impression of the new president in mexico and relationship with immigration and back and forth with president trump? is that a better relationship than the past one or, what is

your read? >> we have decent relationships in the past. they did offer us thousand people asylum in mexico. i hope the incoming president cooperate as little bit more. i certainly think this agreement, keeping people in mexico seeking asylum is on the table. i think they're waiting for the incoming president. i think he cops on sat i today. a lot will be said in the next week how much this president and mexico is willing to work with the united states. connell: add that to the list after big week here. a lot of big events may be resolved or changing in this next week. tom homan, thanks for coming on. we appreciate night thank you, sir. connell: one of those things we talked about is the lame-duck congress which blake talked about. they're back in town. now you have fears growing with some businesses that the next congress would be bad, not so beneficial for big business. what can a democratic house actually do though? that's a different question. we'll have that next. charlie gasparino coming up.

connell: so business groups are bracing for idea that democrats are taking over in the houserepresentatives, maybe they will enact policies not friendly for small business, hike being taxes that kind of thing. but the question do the democrats have the ability or power to raise taxes without republicans? the answer comes from charlie gasparino, the answer is not really, right? >> i like to say screw them over, do they have the ability to screw over business, stop the economic expansion. connell: that kind of thing. >> put people out of work. connell: minor detail. >> unfortunately for nancy pelosi she cannot do that. connell: right. >> here is what they can do. i think this is where markets could get jittery off of this. they will clearly hold a lot of hearings. they will release the president's tax returns. they will investigate ivanka's private email account. they will look at voter suppression in georgia for the governor's race, there is no doubt about that. connell: right. >> they will look at stuff mueller is being look at, in terms of russian meddling in the election and dealing on the side

with the trump organization. that's essentially what they will go after? what will that do? it will weaken -- connell: maybe weaken the president. >> maybe shine light on his business dealings and you know, chasm had in a negative light. connell: of course the opposite is also possible. it could strengthen him among his base? >> who knows. connell: a political story. >> maybe they don't find out enough. maybe they make a big thing out of nothing. we shall see. that will be a political story. they cannot do anything legislatively. they don't run the president. think of it this way, the republicans gain ad couple seats in the senate, right? connell: right. >> they could push through judicial nominees theoretically better for the economy. what won't happen is tax reform 2. connell: right. >> some cad things could happen, like president trump and democrats agreeing to some crazy cockamamie infrastructure plan. connell: it probably won't get through the senate. >> it won't get through the

senate. connell: i go back to blake what he was asking the president out of that crazy news conference. blake burman got up and asked the president about cutting a deal with the dems. the president was open to it. he didn't shut the door, maybe higher corporate taxes or higher taxes quote-unquote rich people in exchange for something else, infrastructure, whatever it might be but that dies in the house, right? >> dice in the senate. connell: gets to the house and then it is dead there on arrival. >> will be under a lot of pressure to, not to raise taxes. connell: right. >> it is hard to run as republican on, i have raised taxes so i can cut a deal with nancy pelosi. so i think legislatively, there is not much they can do. again, they can obstruct. they're not going -- won't be tax reform part 2 but they can't do much. the real thing -- i tell you markets will trade off on this stuff, real thing what they uncover about the trump organization as dealings with russia, stuff like that. if there is any funny business there, remember, they have had,

devon nunez is different than adam schiff. connell: a little bit. >> just a little bit, right? that is where this thing could get crazy. connell: what is a market event, something endangers the presidency? >> if the democrats come up with something, you have this independent counsel still going, democrats control the judiciary committees and maxine waters, financial services and what not, they could add fuel to -- they can essentially take anything, almost reinvestigate it. connell: true. they have political risk themselves, unless they have something huge, they could push too far, there is backlash on their end. >> it's a tightrope. democrats picked up close to 40 seats, 38 seats. connell: yeah. >> they lost key, a key republicans lost a key constituency in suburban women. so there is, democrats have some wind at their back. now do they overplay their hand? probably. the other thing is, the other thing i think the president has going for him in the sense politically the democratic party is so far to the left right now

that you could just show them, you can actually say do you want the progressive left, that is created havoc wherever they go, college campuses you name it, you really want that running -- connell: this president is better politically, does better, when he has somebody to run against. he haspel approximately. >> we'll see. connell: whoever emerges as his opponent. if they are far left. >> existential threat is mueller. connell: we'll see what he has. you brought up ivanka emails. there was criticism from republican as well. is this a story has legs or what's your take? >> i don't know. listen, was ivanka dealing in highly sensitive classified information is the real question? i don't think so. i think the bigger problem with ivanka and jared in the white house is that they shouldn't be there. i mean, you know, optically that family members -- this is the problem with that president trump has. he never really divorced himself

from his business, right? so he is still dialing with his business. his kids are running the business. he hasn't divested. he has his son-in-law and daughter who have business interests in the white house. that sets, i'm not saying they're doing anything wrong, we haven't run anything that they have done anything particularly illegal. maybe fishy but not illegal. connell: in business? >> yeah. but that opens the door for massive amounts of investigations. connell: now that the dems have the house. >> think about it, people with business interests in the white house. the president never divorced himself from his business interests. just on the superficially they have, a mode, a way into to investigating him. again i'm not saying he did anything wrong. we haven't seen it. but telling you that was, i made a mistake not divesting himself i think. connell: doesn't seem like either one of them are going anywhere, either jared or ivanka. >> one thing i know about donald trump, when he ran his business, his kids all had offices up there from the trump tower. he ran the show but, you know,

he trusts family members very much. he brought them to the white house. connell: charlie, good to see you. >> by the way the president actually called me. connell: is that right? >> he was with a friend of mine. connell: talk about burying the lead. >> for once i had my fon down. thanksgiving night, the president was with a friend of mine and called me from mar-a-lago. connell: complimenterred you? >> we know each other for a long time. i personally like him a lot. that doesn't mean i will, i will always call balls and strikes. you know me. connell: you're out. that is all you can tell us. >> we never spoke. for once i had my phone down. we -- connell: you had, you never put your phone down. >> thanksgiving night. it was like 10:30, i just drove back from long island, from in-laws. i was sitting there watching something. before i went back to sleep, before i went to sleepy, looked at my phone. what is this. i got a text from a friend of mine. that is the president calling

you. it was -- connell: one time you are phone down, watching cavuto reruns. >> who wouldn't watch cavuto reruns before bed? connell: keep your phone near you. misses the call. bashar al-assad oil production rising to a record. never been this high. the question, where does it go from here? the president is pushing for even lower prices. what does it mean for drivers and everybody else after a quick break. who's calling? ♪

connell: so a big announcement from general motors today. gm is cutting jobs and cutting production in certain areas. susan li on the story at the new york stock exchange. what happened, susan? >> they're cutting 15% of their salaried employees, not the contractors. and they're cutting 25% of their executives. this is going to free up a lot of cash for general motors, much-needed cash by the way, they are suffering through first

sustained slowdown in u.s. auto sales since the 2018 global financial crisis. they will save $6 billion in restructuring. that means plant closures and loss of jobs. they're closing a plant in canada, outside of toronto. ohio as well. michigan sees two plant closures. maryland will suffer job losses as well. this is about streamlining, getting more into the future of building electric, self-driving cars. they're cutting production of unsaleable models or models not selling as well. that include the impala, the cadillac sts, chevy volt has been mentioned today, buick lacrosse and chevy cruze as well. not only suffering slow sales but china is issue especially in place with the tariffs on u.s.-china trade. all three automakers would see higher input costs when it comes to aluminum and steel. would reduce the fiscal outlook

for this business year as a result. gm last month offered 18,000 employees buyouts. general motors is going through i would say a down-beat time right now for the automaker. like to shift gears here, like the pun? i know you do. talk about retail sales and cyber monday. expecting a record day of sales, $18 billion, up 18% from last year, according to adobe analytics. big tech names like amazon seeing a big day on expectation as lot of people will spend a lot of time buying online today. back to you. connell: right with you, shifting gears. well-done, susan. well-done. >> i know. connell: gm news is very interesting, the market rewarding the company getting out ahead of what is coming. saudi arabia raising november oil production to the highest level it has been out. still at a very low level.

nymex crude, $51.52. gas buddy head of analysis, patrick dehaan. we want cheapest gas. there are really low levels around the country. >> there are really are. 18 states are seeing one station at $2 a gal loan or less. dramatic turn around. americans spending millions of dollars less than year ago. americans have more money to spend. connell: that is great news, one of the reasons even lower income americans their spending was strong last week, wednesday, thursday, friday to start off the holiday shopping season. one thing stood out many analysts. lower income people are spending. you see the effect of lower gas prices. future tough to predict.

what will the saudis do here? >> there seems to be pressure put on them by president trump in relation to the khashoggi murders. they keep up production as many want or what does that mean for the future prices? >> i think what you'll see the saudis obviously continue to see mounting pressure from the situation. perhaps to deflect some of that pressure they can make president trump happy by keeping production high. of course after what's happened of course there is so much at stake for saudi arabia. so to deflect some of that pressure, keep oil prices down and continue to keep production up for the time-being. i think that will lead to lower gas prices for the time-being. the national average could shed another 10 to perhaps as much as 25 or 30 cents. watch for exactly what the saudis say. watch what opec says after their meeting december 6th. i think for now they're under so much pressure they're trying to deflect that pressure by keeping oil production numbers pretty high.

connell: there were some reports last wreak they might play around with it a little bit to your point you're making how opec words it when they make this announcement where the saudis can basically come out of it saying hey basically we didn't cut production or levels where it is effectively a production cut but doesn't look like one. almost like a fed statement because we have read this one closely. >> exactly what you're saying. very much like a fed statement. watch for exactly where the crumbles fall here and their wording but i would look for an eventual rebound, perhaps not immediately in december. look for oil prices eventually to rally in the spring. connell: we don't want them, by the way, go down too much, not great for the economy to have oil absolutely plummeting. are you one of those guys with a fair price? get it in the mid 60s, maybe around 70 bucks we can stand that? obviously don't want it too high? you don't necessarily want it too low? >> look at news you just announced about ford closing

plants, gm closing plants and cutting jobs. a lot of those vehicles, those smaller vehicles sales are really plummeting because of low gas prices. connell: everybody wants -- >> people turn to larger vehicles. exactly. in the longer term i wouldn't look for necessarily a sweet spot. it is more of opec playing with numbers, cutting production, raising production. of course president trump's tweets really put pressure on the market to move in a certain capacity right now. he is obviously called on opec to increase production i think more than past presidents. president trump can take some sort of measure for falling gags prices. connell: we always say the president doesn't have too much of an impact on this kind of thing but you're right, maybe this time is different. >> exactly. connell: patrick, thank you for coming on. patrick dehaan. gas buddy. apple is another big story today, not necessarily because of holiday shopping. it is at the supreme court, apple. the app store is up for discussion at the supreme court of the united states today,

whether it's a monopoly. the latest on that after a quick break. yeah, that too. i don't want any trade minimums. yeah, i totally agree, they don't have any of those. i want to know what i'm paying upfront. yes, absolutely. do you just say yes to everything? hm. well i say no to kale. mm. yeah, they say if you blanch it it's better, but that seems like a lot of work. no hidden fees. no platform fees. no trade minimums. and yes, it's all at one low price. td ameritrade. ♪

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connell: let's get to apple. appearing today at the united states supreme court defending antitrust allegations over its fees in the app store. one of the interesting things, the stock, like the rest of the

market, started higher but has turned around. i don't know if it speaks to anything happening inside of the court but edward lawrence is there at the supreme court with more. edward. reporter: connell, very interesting debate, at the basic level, does apple have a monopoly on the iphone app store? in a class-action lawsuit, customers sued apple saying they paid too much for the apps in the app store because of the monopoly. apple says it may have monopoly but not customerses but developers who have a claim, they absorb 30% commission on all the apps. therefore the lawsuit should be thrown out because it is from the customers not developers. apple's attorney says it can only be related to the commission of 30%. however justice roberts, chief justice roberts and kagan, question the limits on those damages, maybe they could be a little more. the petitioner says the commission is the evidence that

there is monopoly. apple is allowed to charge that the damage is what customers could go to third party websites, developer websites to buy the app for, not what the price is in the app store. he argues not only that commission but also what the difference is between where they could get it from that third party. now a lower court, the district court threw out this lawsuit. the ninth circuit court of appeals brought it back. now we're here at the supreme court. we should have a decision by late spring. back to you, connell. connell: a quick point, he had word, the key point, when i buy apple, am i buying it from apple or buying it directly from the person or the company who made it, that is the argument? reporter: exactly. that is one of the arguments s apple a pass-through mechanism. the petitioner saying no, apple is collecting money here and keeping 30% and giving the rest of it back to the app developer. therefore they are the first party related to this. it is very interesting. very bottom of this if it is really a monopoly. connell: that is very

interesting. you could see both arguments. we'll see how it works out in court. thanks, edward lawrence at the supreme court. from apple to facebook. facebook gearing up to fight the government after hiring a top department of justice antitrust lawyer. this with all the calls for leadership changes we've been talking about within the company. alicia finley, "wall street journal" editorial board member. good to see you. >> hey. connell: they go out west or somebody who worked, kate padget i believe is her name, department of justice, make another hire, what is going on at facebook right now? you wrote more broadly for the journal. maybe all the things out there are not such a huge deal but the company has to figure out a way to deal with them. >> that's right. i think there will be a lot more regulatory oversight, and action not just from the federal government. the justice department may begin to vet. there is a lot of pressure from competitors to do so especially over it and google's

monopolization of the digital ad market. they control 60, to 70% of digital ads and state attorney generals starting to investigate its practices. federal trade commission investigating its privacy practices. this will be a rolling concern. connell: is facebook set up to hand them those concerns? >> that is the issue. we saw the reaction to the "new york times" report the other week. connell: i don't know anything. >> basically. mark zuckerberg was, well i have 10,000 employees under me. how do people expect me to know everything that is going on? sheryl sandberg made a similar remark, while she claim ad couple, maybe the day before thanksgiving she wrote a blog post saying i assume responsibility while actually kind of backtracking. connell: so many people say, i think it is kind of a knee-jerk response when something like this happens, we have to change leadership, or split the chairman and ceo roles. i don't know if that necessarily would matter in this case, as

opposed to let's get organized to have people responsible for what they're supposed to be responsible for. just get our act together if we're facebook? but what needs to happen? >> that's right. you see some public pension funds are pushing to oust mark zuckerberg as chairman. connell: that might make it worse. >> a diffuse organization run in part by employees. employees have a lot of say. in some cases that is a bad thing because then they can oust people. mob rule essentially. but, someone needs to take ownership of the problems. connell: zuckerberg. >> presumably so or sheryl sandberg as well. shoe. she is the chief operating officer. she was brought in to handle communications operations there. connell: sure. >> she is not exactly leaning in at this point. connell: i get it. you think about it, a fall from

grace in many ways. everything was written and said about sheryl sandberg in business for last 10 years let's say, almost all of it was positive. you know, there was a future in politics for her. you know, she should be running her own company. this has really been a tough kind of time for her, huh? >> i think it will be very difficult for her to make a run for senate in california. connell: that is off the table. >> that is off the table at this point. connell: what do they do in the near term? they keep hiring, nick college college -- clegg from the uk would run communications. are they gearing up for a fight next year? next year is the year of the fight? >> they're concerned democrats may be in the past, they have contributed heavily to democratic candidates. that bought them some sort of protection. chuck schumer's daughter works at facebook. he has done some blocking and

tackling for them. but they have a much more appetite going forward to regulate the facebook and google and other tech companies. connell: we lump them all in together. facebook and google are facing most regulatory scrutiny. i've been saying this whole fang acronym might have to go. there are so many different challenges. some companies don't have challenges like apple or facebook has or google has next year. >> i think that's right. speaking of apple, it has been raising concerns, it is a competitor to facebook and google in certain venues. connell: yay. >> it also has been trying to inflame public outrage against google and facebook for their privacy -- connell: steve cook calling for more regulation. as long as it is ones that damage facebook. >> apple has its own privacy issues. connell: yes. >> i think there will ablowback toward all the tech giants. this is interesting, maybe it

will end up being self-defeating. connell: we'll see. interesting year. interesting week newswise. alicia finley from the journal. we have a bounceback in markets. we're up almost 200 points for the dow. thanksgiving week is normally a good week for stocks. it wasn't this year. it was worst in seven years. what is behind the short term optimism and bounce of 192 own the dow? techs have a 1% rise. we're coming back on "cavuto: coast to coast" for hour number two in just a moment you've got a good record and liberty mutual won't hold a grudge by raising your rates over one mistake. you hear that, karen? liberty mutual doesn't hold grudges. how mature of them! for drivers with accident forgiveness, liberty mutual won't raise their rates because of their first accident.

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connell: here we go into our number two on cavuto coast to coast. we are in rally mode of the markets at 200 points in the dow jones industrial average was the worst since 2011. you've got some italy optimism. more than anything else in the night dates you have some shopping optimism. i had time of year. cybermonday and analysts are right it might be the best one we've ever had in terms of shopping online. others in morocco to start this off with, you know, some optimistic votes come in to work on a monday. is that all is that holidays? >> yeah, might be more than that. maybe one of the biggest ever saying that 720 early in dollars

and you're not sure how productive people are being at work right now. they're all shopping online or shopping on their phone. 75 million people are shopping. that is helping the market now but i think it's kind of a bear market balanced if you want to call it out on the backs last week heading into the holiday. connell: that's fine. i guess we needed that to stabilize things for a little while. these numbers are impressive. at first i thought the store traffic is down but that's been a trend for years. when the online numbers came and that's why. everyone sitting around as they should be enduring shopping on their phones. what does that tell you about the economy? >> it reinforces the consumer is in good shape right now. one of our lowest unemployment rate in half a century. wages go up year-over-year over 3% which is the best sense prerecession critics reaffirming a very strong economy and consumers in great shape and that bodes well for the market

as well. connell: have you been shopping around there as well? if you're optimistic about the long-term or even the near-term, talk about bargains on the stock market. right or wrong? >> i go to warren buffett and be greedy when others are fearful and fearful when others are greedy. this is the correction would have been the bull market in every single one has gotten a lot higher. this is the opportunity you need to play some cash on the backline speared connell: the question is how do you tell the difference between a quote, unquote healthy correction in stock in the beginning of some sort of a bigger downturn in the economy which is a fear people have out there when they look at other parts of the world and consider what's coming in this part of the world when it comes to trade. how do you distinguish between the two? >> at the very importantly you can distinguish between the two based on what we get from the fed speaking on wednesday and on

thursday and on friday the g20 summit gets you some clarity on chinese trade, more specifically negotiations with chinese president xi and how things are going. and maybe he softens his tone a little better from their last meeting. connell: that's probably more likely or do you think they might not raise rates in december? >> i think right now as the path for interest rates is higher, october 3rd meeting, look, normalization is on the way, meaning we will raise interest rates because of two things. inflation is on the rise. it is a subdued but unemployment has fulfilled. because the stock market has corrected and were down about 10% from the high common he may take that into account and take a pause here in december and then continue raising a quarter basis point at a time next year. connell: it would be interesting if he did that. it would be great news for

stocks. how quickly do interest rates go up? we all know they're going higher in if the economy is strong i guess you could say that's a good thing which gets us to the second issue heather brought up in that his trade in that it's been market. i don't know what people are expecting at the end of this week into the weekend and beginning of next week, but any little hand we move in the right direction would be about enough for now. >> yet again, this is a bull market. the surprises are in the positive. any inkling of good news is going to be very, very positive. especially with the interest rate they pull back and are more dovish on interest rates, though probably hike in december but next year you'll see maybe two hikes as opposed to three. anything like that is extremely positive and this is why we have the confluence of market down, a lot of things to go right here. these are the kinds of opportunities to better grasp while they're still here. connell: that's it.

you still get that sense though, at least i do, that the prevailing sentiment for markets is lower. people think we haven't quite gotten through this. am i right to assume not? or is doubtful at this rally we are getting on a monday. we're up 200 on the dow right now. i do think markets will continue to be very volatile. we have gone up a lot at because of tax cuts this year or companies. when you listen to earnings, that is help their bottom line. maybe some of that rolled off and now we are waiting on what is the next catalyst. connell: it's got to be traded. >> even that to me is backward looking. got a betrayed. but maybe we'll see. >> yes, trade is a big part of

that and hopefully the g20 meeting we get some clarity over trade between the u.s. and china and come to a conclusion on theft of intellectual property and decreasing our trade deficit with china. that's a president trump wants. connell: one of 6:00 in the afternoon, have either one if you bought anything online? >> i have. but not today. i didn't want to do it right now during the show. connell: i didn't mean during this interview are just men in general. >> i have a few things this morning. then there appeared a good economic sign. >> they were small purchases. i have to sit down and make my christmas list. connell: if you're a good american you're probably shopping for yourself. let me see what i can get for my relatives. >> the best deals are toys men like us in particular since toys "r" us has gone to hdtv screen freezing at the best buy is

right now. connell: caboodle is lycos if you want to get him something. thank you. appreciate you both coming on heather and ryan. congress for better or worse is back in town and they are gearing up the possibility of yet another shutdown. let's talk about that in more good than north dakota republican senator john hogan joins us now. good to see you, senator on whether or not we get a shutdown on all this fighting back and forth over the border funding. the president's been threatening it. what do you think will happen here? >> i think will work something out. the house bill had 5 billion not musically we are trying to get funding for the border wall and i think we will. obviously we are pushing back but this is something the american people want and you see what's going on the border right now. connell: what he think about what's going on the border right now? the use of tear gas by border patrol agent and just things seem rather tense.

>> americans are humane and we let a million immigrants in this country illegally for people that are seeking asylum, we let them in. you've got to do it legally. we have to be able to secure our border. immigration has to be illegal -- excuse me, has to be legal, not illegal immigration. were compassionate but we've got it protect the border. >> is there something republicans are willing to make? >> look again, it's about doing what we need to do to secure our country and for what the american people want. i don't know what you mean in terms of the deal. it's about getting the job done for the american people. connell: there is a doctor deal or something like that that can be made. >> good point. the president has put the deal on the table. he put forward very reasonable care in the border a daca deal

and go into a merit basis center that's kind of agreement we should be able to get to address this very important issue. connell: there were two other important issues i want to address a few i can while i have you. both issues you know a lot about important to your state. one is trade or the other is oil. let me start with trade. we have this meeting coming up. president trump initiation paying at the end of the week to me that the g20. what do you expect will come out of that and more importantly farmers to speak to and what have you, what needs to come out? >> obviously it's a very important issue and it's quite encouraging president xi our meetings. there is some optimism there that's encouraging. we need to be having a dialogue here but need to get to an agreement myself and others in the senate are pushing every day to a good deal, fair deal.

we want china to play by the rules but we need to keep working to get it done. connell: if they don't get it done, how much longer can u.s. farmers sustain this? how much longer can they go? >> at the very challenging situation. that's our look. that's why we got to trade assistance payments out there. the administration is working to get them out in a way that helps our farmers while the negotiation is going on. i talked to ustr for small manufacturers. we are trying to do things we can to help farmers and manufacturers and others while this negotiation goes on. we've got to keep moving on the negotiation. connell: second issue is oil. when i was into his story was on shale oil years ago. very interesting to go out there and see how a big part of your state's economy. the oil prices at $51.86 per

barrel. the president said let's keep it going. lower prices mean lower gas prices. what about people in that business? how much of a low oil price can they sustain? >> yeah, it depends in north dakota in north dakota we're almost up to 1.4 million barrels a day we produce. he makes a difference on where and how you produce. we are very cost competitive. other places will have real trouble is to give below $50 a barrel. we want stability. we don't want these spikes and trust that create instability. the rent price in europe is much higher. again coming to see prices stabilize in this range good for consumer stability as we continue to produce more energy at a reasonable cost. connell: do you have an opinion on what they could do overseas? the president said we don't need any type that day. what you think should happen? >> you likely see some reduction but we are producing more. we will continue to export more

as well. we are growing the energy we produce and i'll help stabilize prices. the likely see a bit of reduction when opec meets. connell: fair enough. good to see you senator. thanks for coming on. senator john hoeven from a state of north dakota with us today. general motors we talked earlier with david asman from gm. the stock is up 6% today. the announcement was it's cutting jobs. its it's restructuring, closing down production at key facilities and planning to cut 15% of their workforce in north america and close several factories. more on gm as we continue. we'll be right back.

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connell: president trump has threatened to shut down the u.s. border with mexico. one of the streets he said he could shut it down permanently. all of this with the growing science is going to grow at a law when it comes to the migrants on the border. we brought the judge and to talk about all this from a legal day. judge napolitano joins us. good to see you. >> always a pleasure to be with you. connell: something happening down there with the back-and-forth the president hammering the ninth circuit and get involved. what do you make of what's

happening now? >> the judge in san francisco did the right and pure trial for judges trial for a judge is not a policymaker. he may have his own personal ideology but all he did was enforce the law. the lot is the president may not like it but they took an oath to enforce all of them faithfully whether they like them or not. the law is the following. if someone is seeking asylum they may answer. this sounds rough anywhere they can in the united states. >> that's a lawful inference. it appears to be unlawful walking across the border. when they do that and are apprehended and the apprehension does not require a warrant, they are then brought to the portal closest to them to which they should've entered in at that point they make the application for asylum. the government has some discretion. do we hold them between coming in contact with them which take six to eight months or do we let

them go with the obama administration did. worry they're not going to let the venerable ben. holding them as lawful. not letting them in his unlawful because the -- you says they can always make the application and there are two treaties to which we are a party to say the same thing. connell: what's happening on the border, group of migrants decide camino, how many ever decide to make a run for it and there's tear gas and all the rest. that is unlawful you're saying? >> snl. judges should not be in the business of second-guessing law enforcement a crisis. judges should not micromanage a crisis. at the department of homeland security decides for the sake of safety of everybody there we had to disperse the crowd and can contemporarily disperse the crowd. but they can do is they were not going to let you get online to come in. or if you swim the rio grande, were going to send you back without the application. connell: they disperse the crowd

don't get in, one makes it. there's no way to stop that. >> as can the other nine. that is what the president wants to stop. i understand his frustration. just chaos on steroids. he has no option but to comply with the lark at the law changed. this blog was last changed in 1986 when ronald reagan was president. should the president and asylum seekers be required to get online. these are things congress is going to have to address. don't look for cooperation from the democrat. connell: looking at a government shutdown because the government had every reason to push more and more or push harder. connell: or out of right field are less skilled compromise that satisfies not everybody, but

most people. connell: one other thing because you brought this up and it struck me as interesting because 60 minutes did a piece on all this last night. the president was upset about it because he treated afterwards. the distinction between at the trump administration and the obama administration did. this whole idea when it comes to separation of families is what happened to the obama administration. what are the differences in how they handled this. >> when you applied for asylum in the obama administration, they set you free. come back to you in escape months. give us an address. they never came back. they held the hearings. if you were able to demonstrate a bona fide asylum situation you got a green card. if you didn't you got recorded. the trump administration until last week if you knock on the door and made the asylum application singly except you to live in this tent the next 16 months. connell: there's no difference in the law, the difference in

the way of seeking doors. >> the separation of parents and children unlawful. attention of all in a government facility lawful up to the discretion of the government. connell: what is the next big move here? >> next big move is a change in immigration law. i don't see how this is sustainable when a president is adamant about protecting borders as he is and has taken an oath to uphold laws he loathes and quite frankly practical to uphold. connell: he's going to keep getting shut down in the courts. >> the trial judge did nothing out of the ordinary and nothing ideological. but to what the president. but with the present approach and the statue room. connell: we will still be talking about this in 2020. >> absolutely. if they don't resolve this in four weeks it's not going to be resolved unless again there some grand compromise u.n. nine as fertilizer mines are put together a mess.

>> you some fault with the president. connell: the call goes through. they know what we're talking about. good to see you. thank you for explaining all of this. brexit over the u.k., the deal after backing e.u. leaders could be helping the market a little bit today. it's by no means finished because teresa may have to get it through a divided parliament. we will talk about that. bit bitcoin has been an absolute collapse for bitcoin as ohio becomes the first state to allow residents to pay your taxes with bitcoin. more in a moment. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step

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connell: breaking news on brexit withdrew been talking a lot about in relation to the u.k. the associated press now confirming that parliament over

there will vote on a brexit dealed the 11th of december. december 11th a very big day for the united kingdom. brett aarons joins us now. we know -- i don't know how big of a surprise it was a member of the question before teresa's may deal doesn't get through parliament. december 11th is the day. that's going to happen? >> it's probably going to be voted down. predictions are subject you should never try and predict the future. the likelihood is that this deal is going to be voted down in parliament. the smart money at the moment is on the following set of circumstances. parliament voted down. the labor votes against the opposition party because they don't want to reach of may. the right wing votes against it because they don't like this deal. they think it gives them too much to brussels over the issue essentially of northern ireland.

the cabinet is that this will put the top scenario in 2008 it was voting down t.a.r.p. that caused a crash in the market. not the bankruptcy of lehman brothers. the guests in the cabinet is the markets will tank and parliament will panic. they will reconsider and go to through in a second though. actually at the moment sort of what they think is going to happen. all sorts of problems without including the fact if the market thinks that's going to happen, if the markets anticipating not common they probably won't panic and say why do we have to vote. connell: sometimes when president trump was elected, the markets going to tank in the futures are down it came right back up as quick as they went down. when the whole deal have been everybody said market will be a. if you're relying on financial

markets to send a message you sometimes have to be careful what you wish for. what happens if the tank is not there in this scenario has played out like you say it will? what is then the next step? >> here's the thing. you have a divided political system over there. it's a fascinating when it all fits together so we could end up with an outcome that no one wants because no one can steer the ship. the risk as it were if they gamble on this happening in the market don't tank, a lot of people will say, look, there is nothing to worry about. we don't need to have a deal. the markets aren't afraid at all. the problem is once markets start to think that is the likely outcome, then they might panic. so there are -- it's fascinating. connell: it is fascinating, but it's also a political mess i

guess for theresa may. how did she come through this or does she? >> it's interesting. she is essentially hasn't defined herself as the person who's going to carry this, whatever you want to call it, she won't last much longer after brexit i think. she is earning a fair amount of grudging respect because the fact is no one can square this circle and so she has the most unpleasant job in politics and she's just doggedly carrying on and she hasn't quite and she's not letting an astonishing amount of personal attacks on her deter her. the fundamental problem is irresolvable. northern ireland and southern ireland which is part of the e.u. or between northern ireland and great britain or you don't have a customs border between either in which case you have free trade between the european union and great britain. it's a simple mathematical that

you do in fourth grade here there's no real way around it and they keep pretending there is that there isn't. i don't really know. connell: by the way, a real quick last point before it let you go. what if we went back to the beginning of voted on bright day. now what if we did it in reality, but what is your thought on how it would go down a second time knowing what we know now? >> it would go down to crashing defeat. the problem with brexit to land this to an american audiences wales and england have voted to leave the european union. scotland and northern ireland which are the countries within the united kingdom voted against. northern ireland voted heavily against. the problem is during england of course as most of the population. during the referendum campaign, the issue of northern ireland was kicked under the rug.

now that people have realized that they actually, the reason you have the european union for all its faults is because of issues like northern ireland recently allows the irish and the british have a history going back a hundred years. it allows peaceful resolution of these issues here people haven't thought that through. there is no mathematical way of solving the issue of northern ireland and leaving the european union. connell: good to see you. thank you for coming on as always on what is a sticky situation. we are in the middle of cybermonday and i guess all over the place. it's supposed to be the biggest online shopping day we've ever seen. apparently have two pretty good start. big sales coming out. we will see this afternoon at 4:00 eastern time with melissa on "after the bell." the obvious markets close out the first day of the new week. up to 37 on the dow.

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connell: breaking news on general motors and this is interesting. the associated press is now reporting that gm ceo mary bara will be at the white house with larry kudlow which we believe is some point today. set to meet with the ceo of general motors following the stock on that news is that today by just under 5%. jeff flock now and you'll see in a moment why he wishes he probably was today. eddie's talking about amazon to the fulfillment center out there in illinois. you think about the amazon fulfillment vendors you picked this one. what the latest? >> over 100 tendencies. you know, we could have picked anyone in places like phoenix. no, we came here to monee,

illinois for a storm. they lost power here at 2:00 in the morning. that's a huge pile of snow. this is a massive facility. 2:00 a.m. so they had 2000 workers. 2000 plus people employed here and they had 2000 people show up for work. we spent some time inside but they time inside the gated one is broadcasting in died because it doesn't send a very happy picture. they did share with us some of the big sales on amazon today and of course they are numerous, too numerous to mention here. look online everything from toys to exclusive toy items, waitrose available only on amazon today. a lot of small businesses for sale on amazon that are certified, handmade. people that do crafts and that

sort of thing. not just the amazon echo n. dotson all of the crazy electronics. you're absolutely right. i wish i was in detroit somewhere inside the bowels of general motors. a nice firm conference room. >> by the way, is this a big deal for amazon or print for amazon are kind of a minor glitch that this one place has this issue. >> it was a significant delay in some of the items for same-day delivery, didn't happen, but other than that pretty small potatoes. a pretty big company. >> will keep you out there for a little while. thank you, jeff. jeff flock. our shoppers becoming to condition to sales? you go an amazon or any of these places and everything seems to be a sales. retail may not.

melissa charleston joins us on now. kind of interesting that were told over and over and we have the numbers to back it up the economy is so strong that everything seems to be on sale. >> this is the season of course. consumers will not buy unless they feel like they're getting a great deal. it's not always just often high discounts. it could be a creative deal i could gift card for later but the deals are important. >> all descriptors skeptics out there. they said they're not really sales. they mark it up and they cut it back. these are some good deals at least i think they are. is there any plan around to make things better than they are? >> much more creative than they used to be. the season is longer to no longer about black friday and cybermonday. it's the whole two weeks. around this period of time.

lovely csi adjustments. an incremental percentage off. i do think there is some creativity there, but the deals are always there in some way shape or form. connell: buddies in terms of execution to see if they make their numbers and give us his number the good deals. what's the key. >> there's a couple keys. a few of them are thinking about what the consumer cares about most, which is fast and great customer service and personalization. they are specifically doing to invest in their stores where they know consumers still love to go in stores to have the personalized text areas. they love seeing celebrities. they love the things that pop-ups in stores. does help provide personalization and something different that's a little bit different from the competitor next door. connell: amazon is the model for

this in terms of by volume. they lose money on a lot of stuff for years and years that they make it up as they sign up for prime, they can make their numbers. >> they've done a wonderful job in the understand expedited delivery. only three in 10 consumers thing to do most of their shopping at major e-commerce giants like amazon. 60% plus said they planned to go into a department store specifically during this holiday season. connell: just on the department store site? >> that's right. a huge online when i'm black friday specifically today will probably break records, but i think it's important to remember this is a six to eight week period of time and they will go into a store to do a lot of their shopping over the next couple weeks.

consumers still love them. that's what this holiday. it's about some of those experiences. connell: i don't get it. pick up your phone and although the traffic in the shopping and parking lots and everything else. marissa, thank you for coming on. we appreciate it. president trump heading today to mississippi. they've got the runoff tomorrow. try to put the republican over-the-top and we will be all over the fallout from that. we will talk about it coming out. i am a family man.

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connell: back to the breaking news on general motors or the ceo was expected to meet with white house economic adviser larry kudlow downplayed ermine says that would happen at some point today. when i ushered the exact timing but it comes after gm's announcement of job cut and restructuring. very interesting. also apparently calling members of congress to talk about all of this. let's bring lisa copeland in. or december. good to see you. a big story from general motors to focus more and electric, more on autonomous vehicles even though they're getting rid of the chevy volt i believe. going to go into larry kudlow's

office and say what to think about all that? >> i think any time you lay off 15,000 potentially, 15,000 people in your workforce you have to do some explaining. i think she's doing the right thing from the shareholders and automated dealers. the demand just isn't there right now. and there isn't any demand for them. someone has to pay for them whether the factory of the detailers. connell: we do have stories of an economic slowdown all over the place. general motors is being rewarded in the market for this. cutting their costs and make a left when jobs go down. we've seen that over and over and walt tree. what's leading to the drop in demand? >> this advance themselves. we've been seeing now for the last couple of years and auto manufacturers have quit doping

them where they started feeding them out is to build plants. none of that is surprising. to your point, she's getting out ahead of this are therefore she's being rewarded by the market. it's interesting what happens at the white house today about the meetings will look like. >> you don't want, and i'm sure this is where you get pushed back politically is it's great to be more efficient. it's advantageous to get out ahead of something. it's good to see trends in business but the concern will be on the job site. >> yeah, absolutely a concern. my research shows a lot of people were offered early retirement and they decided not to take it. we've got a situation on our hands for sure depending how many people take the package and how many they have to lay off. the question becomes what happens to those jobs. not all of them are u.s. jobs. two thirds of them in the qs and a third of them in canada. it's going to be interesting. i have a lot of faith, so i think she will maneuver this thing well.

connell: how does the president's trade were play into all this in terms of will that, then what is gm's push back or whether you think the the discussion will sound like they're between politicians are just between larry kudlow in maryborough, headed g20 this week. >> exactly. i think that's anybody's guess. coming out in the press in saying this is not a trade war issue or tariff issue. it's strictly supply and demand. the other thing i want to put out there is with rising interest rates come in the dealers are not able to purchase as many vehicles because you know, and many dealers i work with around the country have decreased their online inventory from 15 to 25%. if they are not buying them for no salary and then you have a reduced demand from the consumer for sedans, i think the tariffs might have something to do with that, but right now it's supply and demand and rising interest

rates. so why not. grab an suv. driver truck, whatever it may be. it's lining up for the perfect storm for the demise of the sedan. connell: we will stay on top of this. thanks for coming on. some point today at the white house. energy stocks today. the oil prices rebound in after ridiculous plunge last week. oil was down 11% just last week alone. exxon, chevron and bp are back with the price to 51.80. we'll be right back.

connell: we have stocks bouncing back a bit today. financials have done quite well in the morgan stanley, goldman sachs and citigroup on the screen now up to .5% or more. that said, the dow jones industrial average and the s&p 500 can finish this year negative for the first time since 2015. parents publisher jack otter is here with us now. we also mention energy stocks before the last break your oil has been done as much as it has. we are bouncing back a little bit today. maybe we've found some stability but it doesn't necessarily feel that way. >> i would not predict stability in the market.

the low volatility, the market going straight up for a couple years. that's really unusual. this is actually normal and what happens in the market of my stocks scare people because they bounce up and down. i think people who find this very uncomfortable should adjust their portfolios accordingly. i'm not predicting we will fall farther, but there's a good chance we will. you should do without now rather than 10% lower in the dow. >> we are always talking -- not always, but day-to-day second to second movements in you been focused on people preparing for retirement for example. that is kind of interesting when you go three market movement like this. interesting position for many people who get very nervous may be moving sooner than they should read what is the mentality? >> to me this is a great learning opportunity. it's a gut check. if you look at the market over the past 19 years, you can see

the flip we've experienced recently. it's a great reminder if you do reduce your exposure to stop now and get a little bit safer, it's not as if you're selling well. but what you don't want to do is think i can handle this and then your tolerance if it smacks because that's what people do. people solomon the market goes up. that's the position you don't want to be in. that said, while there's always carry things in the market, today terrorists rising rates and so forth, but that's always true. i wouldn't predict doom and gloom. i think people need to be ready. connell: almost always over time the stock market goes out. so hard to sit back and tell yourself that. >> i will say hosted a dinner with jim grant recently and he trotted out some very scary statistics when he looked over the years, for instance,

. that's before you adjust for inflation. so he traced out some very ugly decades-long periods in the market. connell: that's people's life there. >> exactly. connell: somebody could be 50 years old. that is their life savings. >> while i certainly do advocate people putting a good chunk of their money into the market, it is not a sure thing. it's a probable thing. probability i like but people should not think it's a sure thing that the market always goes up. connell: because, under the mattress is a sure thing. but that is not as much money. >> that is a sure loss because of inflation. connell: you're very right about that. it sounds better than it actually is. >> in my lifetime the value after dollar has fallen 86%. connell: is that right? how old are you? >> i say that because it was, there is a fund manager, a classmate of mine, he trotted out that for statistic. for a guy like jim grant.

you need stock market, savings, c-s. at "barron's" the we look at what is cheap. recently we, this weekend we took financials which buffett is building a position in. you mentioned they're leading today. connell: yep. >> they're really cheap. it could be a value trap of course. but i think jpmorgan is trading ten times earnings. under 11 times earnings. yields under 4%. very low prices relative to the market which they usually trade below the market. there's a nice gap there. connell: that is interesting place to play. a lot is on sale you would think. >> i have always been urging people to invest more in foreign markets because generally, all, in all countries you see a home country bias. so americans who are under, over, underinvested overseas, beef up on that a little bit. foreign stocks done horribly. good chance to pick those up

with a strong dollar. connell: jack, thank you for being here. get money out of the mattress if nothing else. see you 4:00 with medical list on "after the bell." for now a nice little rally on our hands, a change of pace what we're experiencing. charles payne won't make it worse. he will probably make it better if history is any guide. charles: it is the cp effect. thanks very much, buddy. good afternoon, everyone, i'm charles payne and this is "making money." internet sales soar over the holiday weekend. americans long left out of this economy finally getting a pies of the action. we're talk about narrowing unemployment gap. plus a showdown at the border. president trump doubles down what could happen if migrants push through again. more on "making money." stocks rebounding in a pretty good way after last week's turmoil. it is of course a big week for the market. desai