love them that they will stay up. >> i found my new year's resolution to watch a couple "star wars" movies. maria: thank you christina, mitch and doctor mike. we appreciate you. that does the press. "varney & company" is up right now. charles payne do you have a new year's resolution? >> a few days to work on it. you did an amazing job and christina is right about mariah carey but she got dipped. $92,000 that is not time right to me. >> leave it to you, charles, to do the math get right. >> yes, thank you both. i'm charles payne. stuart is on furcation. big stories for your money. doubt coming off worst christmas eve ever. 600-point dropping in a half day of trading. futures right out point to a higher open this morning but we are asking are these shades of 1987?

i think it is and hope it is. president trump criticizing the fed once again saying they are raising interest rates way too fast and the chairman of the white house economic council will join us in a moment with his take. we got the holiday sales numbers for you and the government shutdown continues. a lot to cover. varney and company just now getting started. ♪. charles: breaking news we want to start with. latest on home prices. >> yes, monday october, 20 metro area home prices increasing 5% and a little bit above consensus from the estimates of economists a year ago. slightly less in september and in september we saw slowest pace of home price gain since januare

a look at it from a year ago and looking at some of the biggest cities with tech focused and seattle scene biggest rice home increases but housing has been a concern with mortgage rates going up in the main drag is on the us economy with about one fifth of it. a big part of the so-called effect comes from housing and the feeling home prices are stable in and will go up. charles: another reason is right when it comes to the fed. let's get another perspective and bring in our money market, money watcher here. john, first let's start with stock market, dow, 21,000 of course people wondering with this sharp decline are we starting to see a buying opportunity here? >> i think we probably are. such a mixed bag. look at housing and numbers all

over the map and retail sales there were good this morning at 5.1% gain and look at e-commerce sales with 26% gain in an economy is slowing but if not falling off the cliff. problem right now is a unpredictability. there's no way to quantify it will happen with brexit and with potential escalation of the trade war. charles: but john, we've lost $7.5 trillion with a t, trillion what a 20 billion-dollar tax justify losing almost $8 trillion in market value? >> no, but the unpredictability will. the party had to bail out our farmers and losing soybean contracts forever to brazil so i don't think initially this tariffs are what hurting the economy but it's what happens next in the object ability, look at apple. if these trade war does not escalate and if it's inflated their global supply chain is abysmal at this point and it is

destroyed and apple is a cell. predict ability in the market because of trade war not necessarily what happened up to this point but what is happening going forward. add to that brexit and a slowdown in all that together has made this market very jittery. charles: what about the federal reserve? this is a far greater risk with $4.5 trillion out of thin air and taking out 50 billion a month in the so-called combination seems to be far bigger threat and with the market is reacting to most. >> i'm not a fad of the federal reserve. the market is reacting but i don't thank you can point to one point. it may be the fact that is reacting summarily to the fed but the market got the fed was in tom's back pocket and then jay powell came out and said he was not. to be obstinate and step his feet and show they are independent and now they will raise rates according to what they think is best. they missed the last two financial crisis. i'm not a big fan of the fed.

no inflation so perhaps the president is right and they should raise rates but add the fed raise rates to slowing economy in the market just does not know how to price stuff right now. charles: interesting. i went to the audience to take a look. president trump criticizing the federal reserve but let's roll that tape. president trump: raising interest rates too fast and that is my opinion. i think it will stick. the raising interest rates too fast. i think the economy is so good. charles: you got nine interest rates at present him elected and 126 months without a single rate hike until december 2015 and even then i thought they would to prove her independence from austria and how much of this is wall street having a temper tantrum. forget president from wall street is to put the fed around and they keep making these mistakes and have selloffs until you get the message because feel like janet yellen learned that lesson the hard way. >> wall street is not happy with the fed over the last two

financial crisis is. stated call it but they exacerbated the crisis by having rates artificially low. and for too long. where that new normal is is that right here? that's up for debate but the fed being independent right now has shocked the market. the market fault that the fed would pull back and listen to the president which they're not supposed to do but they thought it would and when it showed independent the market is worried about the fed screwing up. charles: a lot at stake for this mono e model thing. average folks out there taking it in the chin and they're worried. i'm glad you helped clarify this. merry christmas. >> great to see you, as always. great job. charles: let's stay on the holiday theme and talk about

retail sales. numbers have been strong. susan, you got them. >> very strong. mastercard coming out with their pulse reading and $850 billion was spent in the holiday retail season. shy of a trillion but still pretty good. best in six years. this comes off personal consumption expenditure of nine straight months. there's a disconnect between wall street and main street. honestly consumers are spending and i don't know why market should recklessly. charles: let's introduce john tapper is here in studio, great to have you here. what you make of this apparent disconnect particularly we get these retail numbers and looking good and there is that encouraging turns and building materials and turns in department stores. restaurants are doing well. >> yes, a lot of bricks and mortar's are up are now which is a disconnect to me.

85% of retail is still in brick and mortar. we look at growth of online retail . charles: say that again. most people do not believe that. there's a general mental wisdom which is a term derogatory that they collated 85% of what we do is online but that is not the case. >> 85% of retail is still bricks and mortar. online sales are huge but americans are enjoying the largest pay increase in ten years and that pays a part of it. disconnect does not make sense. >> online sales went up 20% in the month and that's a very stark point in that . charles: my thing today is that this has shades of 1987 to me particularly on monday. black money, october 19, black money christmas 2,018 where wall street was anticipating an economic collapse that did not materialize. we do not have the next recession for another three years. feels the same way and got to wonder why. what do you think, john?

>> does not impact consumers. we look at the pedigrees which could happen after the first of the year i think that created a bit of concern with regard to confidence that did not play out. to me there was a concern that fed raised with uncertainty and you will feel it and reach out but we did not. the voice of the consumer was out. that voice is different than the markets. charles: do these businesses have pricing power right now? >> a lot of general managers in individual stores to manipulate the market place but i believe they do. >> stronger labor market in 50 or so people fill confident they have that next paycheck to pay for their education and pay for their healthcare but jamie diamond put it correctly when he says psychology psyche impact markets more than economics is probably what is happening right now. charles: anything can move the market for a short period of time particularly when it comes to psychology. these wild rides you do wonder

if there was a point where the market can influence the economy and friday we had the michigan competence about, 12% mentioned the stock market in this recent selloff. not a big number but got my attention. have you ever seen that when the market if there weak enough it can create a self fulfilling prophecy? >> that's what i'm concerned will have it now. that psyche carries over to the retail space and consumer procedure behavior but it hasn't happened. if you look at the uncertainty with trade and paris consumer resilience a strong. charles: we will continue this conversation in a while but let's check with the features and a while. after monday's amazing rally, 650 points and have a trading you can see we got relief right now but the buckle up it will be a wild day. president trump says the government will reopen until he gets his wall or fence or something physical to carry on

our southern border. you know were all over that. check out this tweet from the new york times - we are talking about that as well. los angeles county sheriff the seat will remove i.c.e. agents from jails. acting director coming up on that. whole lot of "varney & co." and we are just getting started. from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. which i used to offer health insurance to my employees. what's in your wallet?

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names everyone talks about every single day. they been beaten up and many still believe they got to the side. looks like they will do just that. take a look at tesla because it remains bullish on the model three and european demand. stocks up about five here pre- open. southern border boy died in us custody at the major story we want to get more details from susan. >> eight -year-old child. sad news. -year-old child from guatemala sign the us custody along the new mexico border. it's becoming the second child to die in such horrible circumstances this month. customs and border protection agencies and the boy has been identified and is believed b gomez alonso and died shortly after midnight. came in with a fever and was not feeling well but then he was discharged in the afternoon with prescriptions for antibiotics

and ibuprofen and later in the evening the child is evident even more beer symptoms like nausea, vomiting and transferred back to unit but tragically died at midnight becoming the second child after the seven -year-old girl the died earlier this month from guatemala. her body has been fallback for burial. charles: sad, sad story. let me bring in not just this but with the tough talk from president trump on building a wall let's take a listen on his latest on the wall speak. president trump: i can tell you it will not be open until we have a wall, fence or whatever they call it. i'll call it whatever they want. it's all the same in a barrier for people pouring into our country. charles: joining us from the wall street times. one of the reasons president trump got elected was the key

campaign promise and trying to follow through with his face. isn't that the central issue here, larry? >> central issue to the democrats because they pacifically talk schumer try to block president from keeping his promise and his promise was made just to win an election but made because it was sound policy for national security and orderly immigration and that is why the president won the election and democrats try to keep them from doing that so they can have a political back to beat him up with. that's just what they did to trevor walker bush back in 1992 when he promised not to raise taxes they convince them to raise taxes and beat them up with it. if you look at the democrats chuck schumer is not making any arguments that have to do with immigration or national security but it's all clinical. the president is trying to make a case about our immigration laws that even remains needs fixing. charles: blair, chuck schumer and his closing for using this and its border security and

feels like the white house they understand some political game of chess here is a wall, fence but it always strikes me as odd when i hear democrats say the expert say we don't need a wall but i'm not sure who these experts are and i wonder if they lock the doors when they go to bed at night? >> or have a barrier around the property. was a great point. the ironic thing here is a whole bunch of senate democrats a year ago voted for the salford hillary clinton voted for the spirit rock obama voted for this. chuck schumer voted for it. but now they refuse to fund what they voted for. it's cynical and my people are sick of watching in dc. i've elected someone like donald trump. the fact of the matter is this is sound policy and a horrible, human tragic story just reported

about what happened on christmas day but the other facts involved in the story is his father admits he came to this country for a job, not for political asylum and not for religious asylum but for a job and if we had a border wall or border fence to allow for this kind of processing in an orderly basis this would not have happened on our soil. that's what the president is trying to enforce it. chuck schumer is not making argument about that but making political arguments and wants to defeat the president. charles: the backdrop is now for dealing with this centerpiece is a government shutdown where do you see either side blinking or is there a chance of copper mines because earlier on monday there was talk of perhaps a number in the middle. >> the president has been firm on this but let's be clear here. government responded to the tune of 75% of operations and publicans and house and senate already passed those funding bills. talking 25% shutdown and you know that saddam means

nonessential employees are not coming to work and will be paid back plate when they do come to work when the matter is resolved and the fact ploys are working and they get back pay, too. my listeners are government employees and contractors and were affected by the those who are republicans conservative who voted for the president say we take this down, mr. president, build that will keep the campaign promise you larry, thank you. i hope you have a great holiday. and we will see you again real soon. >> you, too. happy christmas. charles: in about ten minutes the stock markets will open and features are looking better. optimistic but we know it could be a wild ride. from the sports world lebron james injures his groin this in the third quarter of the lakers christmas went over the warriors. he left the game and did not return. he will undergo an mri today to determine how serious the injury is.

susan: they do not even need him to win the game. charles: that was impressive. i did not stay up to watch the game but i was shocked and further shocked that they won almost without lebron james. all right, folks. we'll be right back.

we want a quick look at the banks that been hammered and looking like will get relief at the open. investors rattled on monday as the treasury secretary minutia and spoke with top bank ceos. posted for his best-selling items like fire tv second is not looking like you have a strong open this morning but there is chick-fil-a poised to become the

third-largest basket brand in the united states this year. right behind mcdonald's and starbucks. let's think about boycotts and controversy particularly in new york city as they been branded by the mayor as evil. >> it's amazing that they're closed on sunday. it's a busy day in bethel. that and fix them as well. there tight in awarding franchises. they get thousands of applications and let them out at a slow rate. there's a frustration in the world of restaurant fantasies because is not easy to get one and they don't move quickly. when you consider the conservative approach to business, has offered .-dot an excellent job in managing grow growth. charles: with their conservatism has been a controversy in certain cities and that - [inaudible] coastal cities as popular as before but from a business perspective but traffic

are incredible and have you been to one during a lunchtime our? lineup of the door. i enjoy the chick-fil-a business because they somewhere like mcdonald's thought this is better to license of the name and make more money than to own the source. kfc went to that as well. charles: national average for regular gasoline continues to come down. $2.31 and get this - gas is down 77 straight days. john, gas is a big issue for shoppers and benefiting but how much of what we are saying the continue strong continue confidence and continue strong shopping this holiday season. how much do you think is related to gasoline? >> psychologically a lot. when i talk to consumers and prices are low they seem to think bread prices are low. they translate it to other aspects of life because it's a visual you stare that price at

the pump and it does hit you in the face. it's a barometer that people use to 80 overall structure of pricing and inflation. charles: i want to talk more about that. if i have a brick of 50, i'm in trouble. five to break the hundred government is in trouble. susan: you have lots of hundreds in the. charles: you could start at the stars point of the morning and this is what we are talking about. market opens in 14 minutes.

charles: 30 seconds away from the opening bell. we've got a hard capitulation with the dow and the market losing over 600 points and it means the fires are completely

afraid and a lot of it is mechanical but a lot of it happens to be fear and anxiety and no one knows what is going on. it should not be this bad. considering all the data. 9:30 bell is ringing in your first tech. susan: still waiting. charles: first tech to the outside with microsoft, intel, exxon mobil, oil holding up their, you got technology names and these are considered a tech named by smp. leading the way on the upside. goldman sachs down dirty 7% coming into the week, 37% this year alone. quick check of the s&p 500 with a wider index, more widely used among wall street professionals and almost 1%, three quarters of a percentage point there but nasdaq down huge particularly on friday last week and that is up

and leading us all the way down to canopy is the figure. let's bring into guys who know about this. we still have john tapper and susan lee as well. let's start with crazy wild swings in the market. it's a tough thing to be even a traitor is tough, can we expect this volatility into 2019? >> good morning, merry christmas. i thank you can expect this activity. when markets are breaking down but i believe these are you will see very volatile moves. you are seeing that this morning. we open up much higher on monday before feeling and this could continue and were getting rip your face off that will take us up but right now when you see these rallies these are the ones you want to sell into because that indicates the markets have room to move. short covering and chased up by buyers trying to step in but the sellers are in total control and

have a strong hand and i expect it will stay that way for quite a while. charles: a couple of months ago i threw my charts out the window. they were not working. the due date denial, 200 date did not hold, there was a period for refining support but when that broke the dam broke. that's when people start to grapple. what would you look for that suggestibility? >> capitulation. it will be hard to realize when that happens because we had like trading on christmas eve and program trading with high-frequency trading that help exacerbate this volatility. we will see volatility going forward but you'll see bodies out there and i would stay away from stock right now that has to do with disruption of global supply chain because of the potential trade war look at companies like facebook that is now down to 124 and does not have anything to do with trade war or brexit and i think the

bodies are out there. you have to be careful out there speaking traditionally or christmas eve it's a low-volume day but volume was picked up by 40% in that half day of trade. a lot of jitters to sell into the market but a lot of these are computerized trading and j.p. morgan came out the studies 885% of market is driven by computers and index funds which is not a human being pushing the button. charles: type, on that note i feel like this is 1987 and up without a big piece for people to read and you at october 195 year bull market that was reading and concerns and i thought they were exaggerated concerns about inflation and then you have treasury secretary james baker who made a comment about the plunging stock market and tried to look like he panicked a little bit. then you come to this week and the same thing happens. steve mnuchin has his conference call with his bank ostensibly

for reassurance but it feels like it backfired, do think that could be the case? feels like 1987 all over again. >> charles i traded on the floor and it's the same result. we have to be concerned about when an owner or coach comes out and reassures that everything is okay and usually take apart the next day. when the nguyen feels that need to come out and his signaling there's a lot more problems out there than they are willing to admit to. we feel - there's a lot of bad including debt. holiday sales we've got the big retail business has created more debt and that will be there bigger problem. if everything is fine there should be no reason for managing to come out and reassure us it is fine. charles: but you could argue if everything is fine with the banks? you go back to january of this year and every maven on wall street said the federal rates

rates will be printing money and instead they are not. >> they certainly have not responded but when you talk about liquidity i agree with todd. these things are liquid and this is no comparison to 2008. the nguyen made a bad decision and not talking to the banks was very appropriate but advertising the fact that he was talking to the banks because as that says you don't want there could be a fire if there's not some flame somewhere and that spooked the market. charles: as a businessman, john, do you again we talk about wealth and the market and psychological impact as well as economic consumers but when you have this news coming out of dc and this should have been a mistake and it was the way to press talked about it is reassuring the markets and the

administration is it too involved in the day-to-day management expectations with the stock market and answer the questions that wall street has? >> i think so. charles: that was for john tapper but - [inaudible] we will go to tapper and come back to you on this one. >> i think the consumer reacts to conflict between president and the fed. it creates a greater feeling of uncertainty and when they come out and make announcements i completely agree. you're covering something up in the consumer realizes what why is the announcement being made? what is the - the market reacts to that and affects confidence. charles: coming into this week last week of all the ets other non- lost more assets than the regional banking, 13% of their assets under management. there's red flags that to me not much to do with market but ominous with respect to what is happening with these banks and why are they suffering so much.

susan: story or earlier on this year and they're not doling out mortgages and credit loans and they use to but i would argue in this environmental were looking at higher interest rates, strong consumer and growth rate we are expecting in 13 years but it would make sense for banks with 20 days to make more money when people are moving in and out of stocks compared to the last five years. charles: but that volatility is not helped in some people wish the big banks would get back into banking. whatever happened to lending the money and giving them a toaster rate. >> i really agree. whatever happened to making a loan and keeping that loan in-house. certainly we do not address but the banks are responding to what everyone else is starting to saying a lot of uncertainty and i do think the white house is to day-to-day nothing with the market.

if they do their job which they have done with tax cuts and relations this economy will be fine. when you look what's happening with general matus in length to unpredictability or teaming up in its ability of the white house and that's worrisome with the trade deal with china. charles: three secretaries of defense with stronger tenants under barack obama who filed madison was not a constitutional crisis but the president has no the media is on his front and anything that can be made to look like a miscue was crisis ever will happen as well. let's talk big tech. it's been a feature in "varney & co." and many respects it masked a weakness in the market for a long time now big tech names are being dumped down. any chance of them coming back in 2019? >> i don't think it will be 2019 but i do think they will come back.

a lot of pressure in these markets and one of the big problems is the fed but the real problem is the government, trump and fed to not let the markets have to price recovery. to worry about the day-to-day movement which is what we should not be worried about. markets will figure it out. banks should not be allowed to continue to buy low on the outside as they are doing at record numbers. they continue to buy these third-party, peer to peer loans and are overpaid for them creating their own problems in house and that is one of the big problems we continue to see. that will create a bigger meltdown because i do see that things happening with big tech coming back and the owner of facebook and will try to buy bargains. i will not look at him every day worried about the day-to-day movement because they no longer term facebook is a great model. charles: i have three or core positions i never look at it susan, a quick. susan: amazon.com snapping for

date losing streak. stock of the day today. charles: we open nine minutes and the dow is at the height of the session. john, todd, thank you. really serious breaking is for you. good news. ruth bader ginsburg release from hospital and the following cancer surgery that according to court spokesperson ginsburg had two cancerous spots removed from her long last week. she is tough as nails. quick check of the big board. holding up, ten minutes into the session and had not turned down. when these rallies install that's what we get nervous. watch it today. meanwhile, president trump reportedly unhappy with stephen minton after his attempt to calm the markets which they backfired on monday. take another look at tech stocks. tech are still out there and one coming on the show with us and don't forget to join me today and everyday at 2:00 p.m.

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literally best yet season in sales and they don't provide the numbers but that they had tens of millions of new people subscribe to prime as well as joining the free trials and millions of their own product that would be the echo. do you have alexa? charles: yes, we do. i don't use it i refuse but my wife uses it. [laughter] >> where society is heading - alexa was used three times more this year in terms of shopping. that is fighting because mine randomly goes on and shuts off because it's listening and i may see the word alex and it will respond. that's part of the story there. wall street journal put out an interesting story about the sbc requesting that amazon stock stop providing still numbers because they don't when it comes to prime membership but they said is not relevant. charles: i think it is relevant. i also saw - [inaudible]

>> did not go through the items. that's why . susan: you don't know what they are? there the unicorn that goes to the bathroom with glitter. best selling toy this christmas. charles: i'm almost that i even asked. [laughter] thank you very much. back to the markets. in my morning right now in the market in 1987 there were things that are decidedly opposite of 1987, oil crashing now but was not crashing then and interest rates going to the roof back then, i will bring in alan murray, you remember the time very well and it was hard not to think about october 19, black monday particularly after christmas eve monday session half a day session in market got destroyed but you see parallel their? >> yeah, i think there are parallels.

the thing to remember about 1987 as scary as it was the market shuts down for a week and the economy continues to grow for several more years after that. it was not a harbinger of the end of the economic expansion but a stock market event. we don't know yet how this one will turn out but could be similar. charles: it could be. what you make of it then? we had iran and iraq hiring missiles at her ships and we attacked oil platform of the coast of iran that morning and the markets were breaking down and this how does this happen with some people believe the market is suspicious? >> some people may believe it's an indication. you and i believe no it's getting over botched sometimes. periods and particularly when you look at the extended. we have of unbelievably low interest rates that it's

inevitable that you see accesses in the market and they have to be corrected at some point. there scary stuff going on in the world and the whole resignation of general mattis and the events around that and the notion that the treasury secretary would call up ceos and they do have enough money on board and all those things make people nervous and that is understandable but the bottom line is access to build the market and have to be washed out from time to time. charles: allen, before you brought up news and tell us about this big cell. >> yeah, exciting. one of the positive things going on in the media world these days is that you people who made money who think investing in media is a good thing to do and look at jeff bezos in the washington post and lorraine powell jobs in the atlantic and in our case it's a thai billionaire, [inaudible], educated here in the us and got to go no fortune very well in

those days and the scene over doing in china and believes in the brand wants to see us grow and become stronger. we close the deal on friday and very happy to have a new owner and you'll see a big things out of fortune in the years ahead. charles: first and foremost, congratulations and - i know what the answer will be but can you reassure folks will stay independent and not necessarily be a mouthpiece for the new owner? >> absolutely. he's been clear he's a hands-off owner and supports our editorial independence and will give us the resources we need to grow and get stronger so yeah, no question about that. fortune will continue to be an independent voice. we been around for almost 89 years now and that will assure us we will make a strong to art 100 anniversary. charles: allen, i miss you and

our old conversation but glad to see you. congratulations again. >> takes so much. happy to be with you. charles: let's check in the dow because again were all over the board. good news is using green on the screen. nike has good earning streaks, visa and mastercard has an upgrade this morning and the chip and tech starts doing well. home depot looking good. other end, goldman sachs i just talked about them i'm not sure what's going on and i think there's something going wrong with the banks and i hope we don't find out the hard way but other than that is the market that reflects an oversold situation here. exxon mobil interesting considering mobile writing but in. still i had, elon musk may be a very high note after the turbulent year. more details coming back.

charles: . charles: take a look at tessa up start today. they were made. the company, model three and european demand. john tapper, let's stay on this. elon musk had an interesting year from the weed to the comments on the sbc and is an eclectic person. if you could sit down and talk to someone without long successful business track record obviously successful but made mistakes. what would you say to him? >> he's in the public trust now and what he says impact the perception of the company in share value. i understand if he is colorful and understand he's creative and we were talking a lot of his ideas are old ideas. electric vehicles have around almost since the turn of the century and early 1900s. these are not new ideas but the new ceo bringing the market in

any way but his colorful this needs to adapt to share value over the better in his graded shareholder dissent due to personal behavior. charles: that shareholder dissent aims to be wall street based not individual base. i find them to be more to president trump in the sense that not only is he a maverick but a chip on the shoulder against the elites and conventional norms. this is a guy for whatever reason feels the status quo is not only holding them back but holding them back a lot of things and not afraid to say i think the sec is making mistakes and are doing the wrong things and a lot of things are wrong. it's tough to live like that but it's a nuclear power plant and it boils over sometimes. >> it does. when it impacts shareholder value in a negative way that's crossing a line that does not serve him well. i agree with you. the posture of his leases perception of a nation and you

know he will step out of the box it was hard but i just don't should push hard to the point it impacts shareholders. charles: chip on the shoulders is working for him. let's get back to your money for a moment and bring in research, rate long. ray, let's be honest. recently people have been listening and, me, too. charlie, you lost me money. are you still positive on the market? >> i am still positive. happy holidays. tesla is a great example. the 50 by the end of 22 and the numbers are amazing even though tax credit will go away but here is my big tech wins. winner takes all markets, few players in the space and more poorly keeping 20, 40% growth year over year in the companies that we don't see that slowing down yet. charles: although we do see the amazon thing we will go to 20%

instead of 30% and apple saying we will not break out sales number and we see yellow flags out there that suggests invisibility vector is gone for good. >> i agree it's not 50%, 40% but compared to the rest of the market in terms of forecast it still looks like the asset allocation will split sometime after christmas sale people digest the numbers and in january you see the momentum pick up. charles: ray, appreciate you coming on. see you again real soon. >> happy holidays we want to check on the big board. rally again this is happening but once we stall we come down quickly but the test of the market but has to go through this and find a way to hold up and rally into the close. coming up next, kevin hassett, chairman of the health council of economic advisers on the market, on economy, on the fed, on all of it right after this. hd

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charles: 10:00 a.m. on the east coast, 7:00 a.m. out west. hope everyone had a very merry christmas. i'm charles payne in for stuart varney. in a moment we're joined by kevin hassett the white house council of economic advisors chairman. we gave 650 points on christmas eve that was half a day of trading. this is very scary time. a perfect time to bring in kevin hassett. chairman of the council of economic advisors. kevin, i have to ask you about your reaction what president trump said about the fed. roll the tape for the audience. get what you make of night they're raising interest rates too fast. that's my opinion. i think it will straighten. they're raising interest rates too fast because they think the economy is so good. charles: that was a more subdued commentary if you will for president trump on the fed.

we know he is seething. he tweeted about it. he voiced opposition to the rate hikes. what do you make of all of it? >> i think the president is what you see is what you get kind of guy and what you saw in that clip is basically the way he is when we discuss things in the oval. the president is genuine, authentic person. that is what people expected of him. my job at ca, respect opinion of the fed and not give them advice. the president's perspective the fed is lifting rates because the economy is really solid. it is really confirmed in the data. i talk to the president almost every day what is in the data. if you look secretary mnuchin was calling around to the banks if you look at anecdotal reports you're looking at probably the best christmas in ever. charles: kevin, i just don't get it though because the economy is doing well. but there aren't necessarily signs of inflation. so, i mean, does it bother you

at all they have hiked rates nine times since president trump was elected but went 126 months over the last couple presidents until december 2015? the fed can get it wrong because they have a history of getting it wrong? why should main street pay the price for that? >> well, again my job is to respect the independence of the fed, you have opinions. we're not talking about their independence. kevin, we're talking about are they doing the right thing? are they harming efforts the white house is trying to achieve here? >> i think, that higher interest rates, put a drag on the economy for sure. the federal reserve is pursuing a policy that they have described very well and i think that if you look at futures markets right now they're expecting the fed to pause now, federal funds futures. my job is not to comment on specific policies of the fed. markets of course our job is to interpret markets. markets are focused on the

downside risk next year. i would like to say everything we're seeing there is a lot of upside risks markets should focus on. 47 states with unemployment below 5%. 32 states with unemployment below 4%. the economy is doing great. that is showing up in the christmas sales which will be about the best we've ever seen. when markets refocus on data, they will see risks next year are balanced. there is lot of upside risk as well. charles: again, i am not trying to get to you opine on the fed as much as the idea that, you know, listen, back-to-back months where, wages went up more than 3%. in fact last month i think was first time non-supervisory wages climbed faster than supervisory wages. in other words, the average man and women on the street who watch wall street make billions of dollars in up and down markets are finally getting a bite of the apple. it should concern you fed could

mess all of this up. you talk about wall street seeing risks i think the biggest risk that the fed is mismanaging their job, i don't want you to disrespect the fed but you have to have an opinion whether they should hike two or three more times this year. >> my confirmation goes through the senate banking committee. one of the things, every senator asks when i am at cea, will i help defend the fed and that is my job. i promised in senate confirmation that is what i do. you're right, interest rates could to too high might be harmful to the economy, you have to understand people are moving interest rates around in response to data. the data is very, very strong as the president said. looking forward to next year there are a heck of a lot of upside risks. think about it last year at this time i came on this show with stuart and said that growth this we are would be about 3.1%. everybody said oh, we're crazy. it will be in the twos. if you look at the growth

forewas next year we're once again at 3%. a lot of people are closer to us than they were last year. i think we'll see a repeat. that data continue to be strong. there is a lot of momentum going into next year. charles: everyone applauds the efforts this white house taken on taxes and regulations. i applaud what the white house is doing on china. i think it is about time someone faced down china and got a fair deal. but you know, i don't see how you can be so sanguine knowing that the fed could unravel all of this with some miscues. but i will leave it at that i want to move on to trebunskaya, because -- treasury secretary steve mnuchin, he tried to calm markets. it didn't work. markets collapsed on monday. i don't know what is going on right now, we're losing all of the rally, big name dragging us down once again is goldman sachs. should we be worried that steve mnuchin had to make this call?

treasury secretary baker did this in 1987 and i think it helped create black monday. >> secretary mnuchin is in constant contact with the financial community. it is very normal for treasury secretary to call people up, how is christmas looking? they have credit card data. charles: are you looking for a run on the banks, was that the question? >> i did not participate in the conversations but it is extremely normal for the treasury secretary to keep his finger on the pulse of financial markets and right now as you mentioned, markets have been quite volatile and they have headed down, something like 8% over the last few weeks. when something like that goes on, it is absolutely natural for a treasury secretary to call people up, hey, what are you seeing? is there something going on i should know about? what everybody said i just said to you. they're looking at the data. things are very strong. sales are very strong. liquidity is there. so, you know i think whether you

can calm markets or not in any given day is something that you know is very, very difficult -- charles: psychology, kevin, let's be honest the psychology to make this couple days from christmas on a sunday. felt like a sense of panic. president trump, mixed articles how he feels about the call of mnuchin. can you till us if he is happy with steve mnuchin right now. >> i'm highly confident the president is very happy with secretary mnuchin. i have met with him together in the oval many, many times. they have a very collegial and productive working relationship. so those stories are just false. charles: what about some other market centric things we're seeing? for instance, susan li shared a stat with us, roll of computers, high frequency trading, algorithms. bo back to black monday, what they called portfolio insurance. it wasn't portfolio insurance. it didn't work t backfired in part because computerized programing trading. there was 300 report, brady

report for congress put most of the trade on the computerized trading programs. here we are fast forward this many years later, they're still crushing the markets at time. should there be a way to slow them down at all in your mind? >> this is a issue treasury secretary steve mnuchin is studying very closely. he has spoken publicly about the fact he is concerned there might be something there that needs to be attended to but you know, on the other side, having lots of liquidity in markets because there is a lot of trading going on is a glad -- good thing. charles: what about traders, what about the individual investor? this is what i don't get, kevin. president trump ran for the forgotten man and women in america. they to invest in market. they want to put kids through college. they want to buy a house some day. they want to retire with a few dreams come true is it fair to live in the environment that sit is great for wall street to have

algorithms. a lot of people in wall street made a lot of money when the market got crushed on monday but average person didn't. >> john bogle said this for decade, buy and hold. that is what i've done for my whole life. that is probably what your listeners do. when you buy or sell you want to know there is liquidity in the market someone will transact from you. buying and holing has been a proven strategy. worked all the way back to the early 1800s. that is the appropriate strategy. moving in and moving out that small investors -- charles: not that they want to, but let's be honest. it is tough. you buy amazon at 1700. a month later it is 1300, your gut is urn canning. the pain is there. pull up 100 year chart to as wage your own anxieties it is really tough. you wonder why, why is the administration letting it happen? why do they allow the big boys

to do the wild west stuff when i get a piece of the action? we know it is tough, right? >> in the end if the economy grows and prove the grow and dividends grow, markets go along with it. so there are a lot of day-to-day fluctuations and month to month fluctuations. charles: before i let you go, 3% is good for 2019. >> 3%, we're looking at 3% quarter for q4 because we're getting so much anecdotal sales about a solid christmas. charles: retail sales, the group part i think solidify the 3%. kevin, you guys done a great job. i appreciate it. i appreciate you coming on. there are serious concerns on main street i prefer you guys address that than trying to go against the boys on wall street doing crazy trading stuff. thank you, kevin. let's go to the big board. during the conversation we saw

the dow dip into the red. i'm trying to get news what is going on with goldman sachs. i hope to have it for you in a moment. facebook, citron research, it will go back to $160 a share. remember citron is known as the short folks. for them to say that. they think the noise separated the stock from reality. we have a big hour coming up. president trump is holding firm on the shutdown. said the government will not reopen until he get as wall or fence. i want to know what is happening with our border. we'll get a special report. come january, it is a lot harder for president trump to make any deal on border wall funding. democrats run the house. we're on top of that. the chaos in venezuela goes on. a new report said brazil is overrun by migrants escaping maduro's regime. we ask this question all the time. how much longer can it sustain itself like that. another check on the big board. we were off 650 points on

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this a technology stock. good news, top gainer. mastercard got an up grade this morning. president trump digging in saying he will keep the government shutdown until he gets his worder wall. roll tape. >> i can tell you it is not going to be open until we have a wall, a fence, whatever they like to call it. i will call it whatever they want but it is all the same thing. it's a barrier from people pouring into our company, into our country. charles: he made these comments on the same day a 8-year-old boy died in u.s. custody at border. i want to bring in nelson bolito, border and commerce security council. nelson, we know it's a tough, tough issue all around and gets even tougher with the death of a child that is being reported. where are we right now with respect to the border and does this actually increase the necessity of greater controls down at the southern border? >> good morning, charles. merry christmas.

and you know it does. i tell you we need to look at ways to discourage folks that continue to come over the border. what is happening today, the president is holding the line, right? he is saying i need 5 a billion dollars for a border wall. i think that is more after catchphrase for border security in general. personnel, technology, parts of the wall we do need a physical barrier and others we absolutely need to update but looking at discouraging people coming from over the border we also need to look at the laws. 2,000 people crossing the border as family units a year ago. now it is 30,000 a month. 2000 a month to 30,000 a month? what do we need to discourage that? we need to look at the law. we need border security to discourage other folks from coming across the border. charles: seems to me there are so many efforts on our country to maybe woo these sort of numbers that you're talking about, suggestions, hey, if you get one foot across the line,

you're in. you get into the system. you've got it made. and i don't think that the people doing that, maybe their intentions are legitimately honest intentions are doing anyone a favor, the folks they're asking to make these dangerous efforts to get to this country illegally, and suggesting that the once they do, that all will be well. how can the country make it easier for legal, the legal immigration process? that might take some of the strain off of all of this? >> what they need to do is first close the loopholes, right? then you address how you legally come over. when you have the open borders that we have today in the sense of asylum-seekers, you have these cartel members south of the border actively recruiting folks to come over at average of 5 to $6,000 per person. they're not looking to evade the border patrol. they turn themselves in. that is what happened with this poor child that lost their lives, certainly our hearts and

minds go out to the families with anyone that happens on the border. what is not being told, countless number what our border patrol agents, lives they save every day, right? we're talking folks drowning on the river, throw themselves in the river to save their lives. folks that are stranded in the mountains, stranded in the desert, they're evacuated by helicopters. these agents are going out there to save lives. that's what they do. there is no conspiracy to do anything other than that that, get these folks, arrest them, process them. they are saving their lives. we're not discouraging border crossing either through border security or laws that need to be put in place to discourage this plight from central and south america to the tune of thousands of people on a daily basis. charles: certainly is a crisis. nelson, appreciate you when you come on. >> thank you, charles. charles: check the price of oil, down more than 30% since october

highs. jeff flock is following all of this from the cme. jeff, what are they saying there? time to call a bottom on oil yet? >> it may already be here, charles. we have got breaking news. we have a huge rally in oil just even gone higher than it was. we were up 3%. we're approaching 4%. we're over $44. there is word there may be an emergency opec meeting. you know, some of this has been divorced in terms of oil in terms of supply and demand. the market turned lower after opening higher. oil has just done the opposite. we're now over $44. on monday we had the lowest close since july of 2017. this thought about an opec meeting, where they would cut even more perhaps to try and, you know, try and get prices headed in the other direction. of course this is great for consumers, these low prices, gas prices and the rest, for a shale

producer at $44, $43. it gets to be tough to make money. you start pulling back on cap-ex. big rally right now. we'll see where it goes whether that pulls back. charles: jeff, very much appreciate it. now for some holiday cheer. 22-year-old, brady singer, kansas city royals pitching prospect, giving his parents the gift of a lifetime this christmas. watch this. >> dear mom and dad, i want to say thank you for everything you've done to help me reach my dreams. most of you constantly took off work and spent every dime. there is something i want to give to you. oh. i am paying off the loan from the bank. also i paid off all your debt as well. charles: singer paid off the debts. he was drafted by the royals.

the 18th pick. getting $4.2 million signing bonus. he posted the video on twitter. of course we love these kind of stories. more "varney" after this. ♪

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charles: look at this headline, "the weekly standard" is gone but the future conservatism is bright. i'm joined by author john bertha. executive director of american conservative. talk about the face of the republican party or gop or even conservatism. does donald trump now represent all of that? >> thanks so much for having me,

charles. well, i think you will see on the right right now, there is a lot of hand-wringing since "the weekly standard" closed several weeks ago, about the future of the republican party and the conservative movement, where it has been going. has it been overrun by populists and demagogues. i wrote my piece in the "washington post" to argue exactly the opposite. i think the future of conservative system bright. it was positive thing that the donald trump broke the neoconservative hold on republican party which pretty much advocated for endless war and endless globalization since the end of thed warp without taking into account for their the. i worked with conservative publications and thought leaders, developing what when he call main street conservatism, insurance culture, community, common good. charles: who gets to decide what

conservativeism is? i have him on the show, gone blow to blow, i don't believe that the idea being pro-war, pro-trade status quo, pro-tax cuts only for the rich is what main street america wants on either side of the political aisle but people tell me all the time that there is this set definition of what conservativism is and that is just not it anymore. does the voter gets to decide, who gets to decide what the conservatism is? >> the american people decide what conservatism is. in 2016 you saw an attempt to take back conservatism for the working class and for the middle class. charles: john, i'm sorry, buddy. i got the answer i was looking for. i appreciate your article. i read it. it is great. we ran out of time. we'll bring you back real soon. great piece. >> thank you very much. charles: more "varney" right after this. (toni vo) 'twas the night before christmas,

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♪ charles: stuart, is not here, but we always have to honor him with a beatles song for you. check of the big board right now, dow jones industrial average, hanging up there, hanging in there up pretty good. remember we were up almost 300 points. this is the process it has to go through as it finds its footing. big tech names are seeing green. two strong percentage moves there, check of oil. oil in rally mode, west texas interimmediate up 4%. having a strong day. we're getting breaking news of a potential emergency meeting of opec. we have lpl senior market strategist ryan dietrich. ryan, i know you as an

optimistic person, a optimistic kind of guy. are you still optimistic? could the worst be over for the market? >> charles, thanks for having me back. you're right, clearly, put it in perspective. i'm more of an optimistic guy. we see positives heading into 2019 lpl. the s&p 500 is down 1 1/2% four days in a row. it hasn't been down five days in a row since the great depression. so what happened is devastating. it is hurting a lot of psyches. the big question, charles what we'll get into, are we going to have recession in 2019 or are we not? we get into why we don't think we'll have one in 2019 at lpl research. in market corrections, you don't have a recession, three of the last four stopped around 20% correction. '87 had more of a correction. we don't think we're in 87 scenario. down 20% more on nasdaq, more on

small caps, i get it, you might want to be more after buyer with better times ahead in 2019. charles: ryan, what about the threat of this market triggering a recession? in other words, becoming self-fulfilling? >> well, that is obviously a great question. you know, can that happen? it is possible. but at the same time what really drives long-term gains? we know it is earnings. i get it, earnings are up 20% this year and market hasn't done anything. maybe 10% next year. globally emerging markets are looking at double-digit earnings growth next year. developed markets are positive. we never had global recession with expanding earnings making a all-time highs. that is still a positive. can there be self-fulfilling prophecy? maybe. what do we hear about people spent money for the holidays? amazon, record holidays. mass -- mastercard, record spending. the fed is a trade concerns we're not naive to those but the

underlying pinnings of a strong economy are still there in our view. that will not lead to recession in 2019 -- charles: price discovery and roll of the markets, particularly as harbinger of things to come, this year, 2018 the key word for me has been peak. beginning the very beginning of the year, earnings report, i think caterpillar, one of the companies. cfo made a comment, this is as good as it gets. we heard about peak earnings. more recently at the goldman sachs conference, peak consumer credit scores. is the market going through, some sort of a idea, we're reconciling the idea we'll grow but not nearly as fast as we were growing. how do you define we're not as great as we were but not the worst-case scenario? how does the market find that equalibrium? >> obviously last couple months it last been a rough equalibrium. 15 months, s&p, everyone was bullish, look what happened 12 months later. what are the expectations now?

put/call ratios, highest lefts we've seen almost in history. sentiment polls very low. there is not a lot of reason to be optimistic right now. that is good thing from investors long term points of view. buy low expectations, should we get any of positive, we think at lpl research we get positives with the trade concerns. if the first quarter that could be big catalyst, accommodative fed. more fiscal policies, percentage of gdp this year than next year. that is surprising to most people. the backdrop is there for economic expansion that should lead to higher equity prices in 2019. charles: for what it is worth i agree with everything you just said. i'm glad you came on. >> happy new year. charles: check out this tweet from the "new york times." it reads, even hezbollah, the shiite political movement and mill, militia the united states branded a terrorist organization helped bring in the season in previous years importing a santa to beirut's southern suburbs to

distribute gifts. want to bring in media buzz host, howie kurtz. golly, essentially "the new york times" because of their anger, their animosity, vitriol, an animosity. couple months ago, erdogan and now hezbollah. what do you make of them praising hezbollah? >> this is terrorist organization that murders innocent people, committed to the destruction of israel, isn't it cute that brought in a santa. i understood the overall article which was celebrating christmas in lebanon with a minority of christians, there was obligatory, that u.s. government branded hezbollah a terrorist organization why parrot the propaganda? why play it into the goal of hezbollah. charles: that is exactly what they did. hezbollah knows this is going to happen. this stuff happens a lot. after the murder of khashoggi,

erdogan was being praised in the mainstream media as being more of a voice of reason than president trump. now, you know, listen, no matter how you feel about president trump, there is no way, more journalists died under erdogan, more people suffered under erdogan, no way you elevate him to some sort of a pedestal. but our mainstream media did that for a week or so. >> you have to have clear-eyed view of autocratic regimes, that oppress their own people, perfectly fine in oppressing, not in sense that the president trump cancels christmas party for the news media. they are sometimes jailing, murdering, that sometimes get lost in the sort of anti-trump mania. charles: speaking of which, president trump getting a fair amount of criticism for christmas day call with 7-year-old boy. for those who didn't get a chance to see it, roll tape. >> [inaudible].

still believe in santa, right? charles: okay. for those couldn't hear it, was a little low, he asked the kid, like you still believe in santa. there was a little bit after pause. at 7, it is marginal. you're at that point, yeah, maybe you're old enough to know santa doesn't exist. >> look the president handled it clumsily, we can all agree, some this want to add to the articles of impeachment. wasn't sufficiently sensitive to the santa sensibilities to the 7-year-old. local reporter tracked the kid down, got christmas gifts, still believe in santa. the christmas wasn't ruined but a lot of journalists took it upon themselves to say, yet another diplomatic gaffe by the president. charles: pile-on effect, i think has hurt the media more than anything else. i really believe that, you know, more recently, it was a miscue on donald trump, jr., whatever it is, the sense of urgency to

find the negative spin no matter what president trump does, then often have to retract it, to me has hurt their credibility more than anything else. >> look, he had a rough week last week. i don't mind, i think it is fine for the press to criticize him on abrupt syria pullout, what led to the government shut down, all that is fair game for any president, when everything is cranked up to 11, no nothing is 11. every time he says something, a joke that goes awry or talking to a 7-year-old, it gives you a sense that, that it is what steve bannon called the opposition party. that is not true of all journalists but that is the overwhelming tone of too many news organization. charles: say secretary mattis, there have been reports throughout day one, they weren't always getting along. president trump ran on a platform of taking us out of wars. taking us out of middle east. that was part of his presidential platform. for it to be elevated to constitutional crisis, i didn't get that part? >> you know there are a lot of

people in the for rip policy establishment and media establishment who would like to leave troops in places like syria forever. the president made no doubt during the campaign what he wanted to do, gillian turner on fox news made a interesting observation. the press didn't love jim mattis, but once he turned on trump with the stinging resignation letter, he became a hero. charles: john mccain and others once they opposed president trump they became okay. >> john mccain was pow suffered for years. became more popular as a trump critic, same thing in the bush administration. charles: same thing. over and over again. great to see you in person. >> thanks, charles. charles: there is this. new los angeles county sheriff, vowing to physically remove i.c.e. agents from the county's jail. i want to know from tome homan, former acting i.c.e. director what he thinks about all that.

president maduro reigniting century-oldies put over territory as his country is still plagued by chaos. we're on top of that as well. check of the big board, the dow jones industrial average off 12 points. off 300 from earlier session highs. more "varney" next. ♪ ou who i am or what i witnessed, but i can tell you liberty mutual customized my car insurance so i only pay for what i need. oh no, no, no, no, no, no, no... only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

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a few days ago. if you look at anecdotal reports looking at probably the best christmas ever. markets of course, our job is to interpret markets. markets are very much focused on downside risk for next year. would i like to say everything we're seeing suggests there are a lot of upside risks that markets should focus on too. ♪

susan: a look at the markets, we were up closer to 200 points. now we maded the rally so we're down by about 25 points or so i would say some of the big moves we've seen in technology, charles, has kind of dissipated. we were up 4 1/2% for amazon. best shopping season on record for them. the stock is just up around 2% or so. charles: you're absolutely right. goldman sachs is one i'm trying to get more information on. to me is the one that stalled the rally sent us lower.

exxonmobil set to sub spend business after. i want to bring in "wall street journal" column it, mary o'grady. you feel this desperation within that country will obviously seep outside of the country, particularly the countries that border it. >> you have to remember that this is long going dispute between venezuela and guyana, going back to the 19th century. other thing that is interesting to me, i'm reminded when i see this in the falklands, when the argentine military dictatorship was falling apart. there is hyperinflation. all of sudden what did he do, he attacked falklands. he opened up the wound of the fight between argentina and britain over that piece of territory. i don't think it is that surprising to see this military dictatorship trying to pick fights with its neighbors because that is one of the things they do to try to sort of

get people to rally around the flag when things are so bad at home. charles: i think that is an all dictator playbook probably on the first page but in the meantime though, the people are fleeing venezuela and they're fleeing to these border countrys who are now straining to hand el the overflow. >> right. the u.n. actually predicts there might be another 2 million venezuelans leaving venezuela in 2019. there are already two million that left on the continent, okay? more than that came to the u.s., went to spain and so forth in the years past. so that's going to continue to be a problem. they're not, i don't think it is quite the same problem as you have, for example, with the syrians. with the syrians that went to europe there is a real clash of cultures and in the case of venezuela, it is just large number of people going into brazil. brazil is a country of over

200 million. it could probably absorb a lot of those but not in the border towns. they're working trying to give them housing, get them into the rest of the country so that it doesn't have such a concentrated effect on the small towns on the border. charles: seems like, for instance, colombia, voice ad lot more anxiety about all of this though? >> yeah, because in the case of colombia, i mean, the major crossing there is, so you have had millions of people just walking, you see picture of bridges, people just carrying their personal effects over the bridge. once they get to colombia, they try to go somewhere else but colombia is smaller country and much larger number of venezuelans used that exit path. charles: before i let you go, any idea how this ends? >> you know i keep looking at cuba and zimbabwe, for example, two examples of countries that have had hyperinflation,

dictatorships, so forth, didn't really find a pathway out. this could go on for a very long time i'm sorry to say. i don't see the institutions, i don't see the culture, i don't see the populations staying there and fighting it. it is kind of a bunch of bad guys, cuba, iran, russia, have gotten their footprint, their foothold in venezuela. they're not going to let go. thanks, great seeing you. >> sorry. charles: merry christmas. >> thank you. charles: now this. first full year charging for soda tax. remember seattle? they collected almost $17 million. john, some people will say success raised more money than they thought it would raise but also for some people, feels like it's a tax on the very poorest of people who live in seattle. >> also some people say the government trying to manipulate consumer preferences what they buy. the tax is about 1.75 cents per

ounce of soda, energy drinks, products with sugar. it did generate 17 million. they only expected 15 million. it seems to be settling in. it doesn't same to have impacted sales. yep, it raised a cost of product but hasn't had a negative impact on overall sales of those products. charles: but it is being lumped in with sin taxes. so whether it is tobacco or alcohol, die-hard people who are ad didn'ted to tobacco or alcohol still buy the product and it is crushing their wallets and their pocketbooks. you could almost argue, philadelphia pulled their soda tax right away. they saw it was a mistake. >> seattle didn't. i don't see them reversing it. when they look at types of taxes try to change loom behavior, at the end of the day they work. legislators always have a reason to argue for a tax. when is human factor, alcohol. easy to argue for alcohol or sin

tax. we'll see much more of sip taxes as we go. legislators rely on the sin aspect to drive revenue. charles: thank you very much. now, of course, it is day five of the government shutdown and the president standing firm but come january it will be a lot harder for him to make a deal. remember the democrats will be running the house and we're all on it. ♪ hi.i just wanted to tell you that chevy won a j.d.power dependability award for its midsize car-the chevy malibu. i forgot. chevy also won a j.d. power dependability award for its light-duty truck the chevy silverado. oh, and since the chevy equinox and traverse also won chevy is the only brand to earn the j.d. power dependability award across cars, trucks and suvs-three years in a row. phew. third time's the charm...

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charles: check the big board. it looks like it has been a sort of dull day after christmas session. we've been all over the place. up almost 300. down almost 50. right now he will riff at thisly unchanged on the dow.

president trump says the government will remain shut down until he gets funding for border wall. i want to bring in congressman darrell issa, republican from california. congressman, the president says he is in it for the long haul. how do you feel about his stance? >> i think it is important this is a principled fight about border security and it does seem like it will take some time for the american people to understand, just like the president's national defense budget which was plussed up after a hard fight, there has to be a real commitment to border security. we've lost two young people the last few days because their families tried to get them over the border. they arrived apparently in poor shape. these tragedies have to stop. that is separate from the border patrolmen and women who need the fence for safety. charles: we know in the past democrats voted for border security in big numbers to provide the security. feels like they politicized

something they have been on board with and actually voted for in the past. how does either side decide when they're losing the public relations battle, or in this particular case president trump is so unique he was elected primarily for the wall, he won't care what the polls say or media says? >> president donald trump doesn't care what polls say. it is clear that he does care about principles that he has campaigned for, that he believes in and that have resonated and i just want to put one thing out there, charles, that people have to understand. the president says this is my principle and i want it. chuck schumer and democrats are saying that you know this thing is so expensive, this shutdown is costing in productivity by 800,000 federal workers that are not working today. this is costing billions of dollars a day of lost productivity. so if chuck schumer actually cares about saving money, getting us back up and running would literally, it's a couple billion dollars a day, he could

pay for the wall with the lost actual productivity today. charles: it is interesting today they're for security and experts say walls won't work but they won't tell us what will work, suggesting drones can do the job. i don't think anyone believes that. what do you think happens, i have less than two minutes left, what are your thoughts on democrats taking control, how the dynamics of d.c. are going to change? >> you know, nancy pelosi has to win her speakership. she has to be tough. she has to go to the left. but at some point point she will have to start governing. i think at that point it will sink in working with president trump makes sense. look, border patrol agents, the border patrol union, when they are heard, these fences save lives. these are the reason border patrol agents can drive along the border, make a phone call because people are trying to get in, rather than, simply have them come about them without

warning. you know, i worked the brian terry murder in the desert of arizona some years ago. those people were already well in the u.s. and armed and nobody knew it until brian terry came over a hill and saw them. charles: representative issa, it is always a pleasure. great seeing you. merry christmas. >> thank you, charles. charles: we'll see you again soon. >> happy new year. charles: jon taffer, a pleasure having you with us as well. fox business we have plenty more to say and you do too because you will be hosting "the evening edit" this week. we cannot wait. 6:00 p.m., everyone please tune in. look forward to your unique perspective on everything. thanks a lot, jon. we'll be tuned in for that. >> a pleasure. we'll have fun. charles: you are always great. we can't wait for you at the helm. get ready, buckle up, folks. don't forget me. i will be at 2:00 p.m. on "making money." should not miss either one. first we have another hour of "varney" still to come.

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charles: good morning. i'm charles payne. stuart is on vacation. 11:00 a.m. east coast time 11:00 a.m. california. a check on the big word because we are in a low of the session could the dow up 45 points. we were up as much as almost 300 points. the s&p 500 with the larger embassy there appeared fractionally lower, trying to mark time and then there's nasdaq which took a big hit last week and let us up leading us down hanging tough at the moment. meanwhile, president trump keeping up his criticism of the fed. listen to what kevin has to told us last hour about the fed raising interest rates. roll tape. >> interest rate potential if they went too high could be harmful to the economy but you have to understand people are

moving interest rates around in response to data and the data are very, very strong a president that geared looking forward to next year, there's a heck of a lot of upside risks. trying to hassett told us that powell's job is 100% safe. dennis gartman, editor and ceo in john lonski, managing her. you say powell needs to call an emergency meeting. explain what that would do. >> first of all, i think he should. will he? i don't think he will appear to wish he would. he has to make explanation as to why the balance sheet has been rolling down as far as it has for the course of the past three years. that's the damage that has been wrought. not the fact interest rates have been moving up. the balance sheet has been rolling off and powell needs to make a statement that this is going to stop. but he can't because the president has made it impossible for him to do so. if the president would keep quiet for 24 hours or 48 hours and stopped ringing the fed, perhaps it has some action on

their part. they can't take action right now otherwise it looks like they're bowing to the president's whim and therein lies the problem. the stock market under duress will continue i'm afraid. charles: chairman of the federal reserve powell is endangering our entire economy and the well-being of american because he doesn't want to look like he's being pumped by the president? >> i'm afraid that's true. the fed has to maintain its independence. if the president would remain quiet and not be as vocal with his opposition to the fed's raising of the overnight funds rate can you give them the ability to act. now they don't have the ability i'm afraid that the position they've been put in. sad but true. charles: john, what are your thoughts? my thought would be we do have precedent we're amid a strong economy the fed went ahead and cut rates because the financial market in the ability. 1998 the fed cut rates in the u.s. economy -- yes, cut rates.

raise your rates, forget about it. that's off the table. right now fed funds futures assigned a 20% probability to as many as a single rate hike. as much as a single rate hike in 2019. they don't see it happening. 1987 the fed cut rates again in response to the stock market crash of october 19, 1987. so we can go ahead and have paul site would have been in the past amid a strong economy. charles: big dennis, that being said, you mentioned powell, every time that they seen him speak, i watched the press conference i thought was really telling because they admitted he's not even sure whether his policy will be impacted workers and instrumentation to tell them what impact they'll have 18 to 24 months from now. it seems like they're pleased that they feel $50 billion a month and accommodation pulled

out of our economy is working swimmingly. >> the economy has been doing quite well and it's because of the expansion of the quantitative easing that began in 2008 and stopped in 2015. you had to field a sponsor for several years both strong economy and a strong stock market. now that the fuel is being reduced, the economy may well continue for another couple months to the upside that you take in enough fuel way that you can't sponsor the strong market and a strong economy. we need to have the fed cannot in a we have rolled out for allowed the balance sheet to roll down through maturity of assets and we're going to stop that process. do i think it's going to happen? i wish that it would yet i hope it shall. i'm afraid it won't. tree into a canal at knowledge this grand experiment we've never been here before. this is one of the things of the weekend treasury secretary

stephen mnuchin cause of these big banks and says the idea was to trigger some sort of calm. they didn't do that. here is what kevin hassett had to say about all that. roll tape aired >> secretary mnuchin is in constant contact with the community and its friends of most of those folks. they operated in that space and it's very normal for the treasury secretary to call people up and say house christmas looking? they've got credit card data. charles: john, listen. hassett wasn't going to go there. he wasn't going to touch anything with respect to the federal reserve. he eventually acknowledged higher rates at some point could really hurt the economy or hurt the slowdown. i'm concerned about these things. coming into the week, goldman sachs was down 37% this year. goldman sachs is getting hammered today. i'm not sure what's going on. regional banks are getting hammered. they were supposed to be the winners this year.

what's going on? >> we saw improved capitalization the banks are not going to be a problem moving forward. according to the equity market they are becoming a worry. we no longer have a steep yield curve. we have a relatively flat yield curve that squeezes the margin -- the profit margins and banks get on loves. and there also seems to be some mounting concern regarding the underlying quality of the loves that these things have provided. in some cases they are loans to highly leveraged companies. junk bond companies. highly leveraged loan market in some cases a sub prime auto loan, student loan and the like. i want to add one thing under corporate bond market. the month of december we did not have a single high yield bond offered by a u.s.-based corporation. all the high yield on three rated at moody's in a month of december were for the most part from china and one from the u.k.

the last time we had absolutely no high yield on suffered in a single month. december 2008 which was right in the middle of the financial crisis. charles: dennis, what do you make of this? something doesn't feel right about all of this. >> obviously he feels very, very bad. i tried only for my account so i don't on me the other person's money. if you million of my own but i have a risk all the time and i've been out of the stock market for six months and sitting on the sidelines. the only thing i own are a few corporate bonds i bought last week. sadly i think this is going to get worse before it gets better. we are the mystery per track in bear market in bear markets usually take us down 25% to 30% in the peak and i'm afraid that's where we're going to go. this does not feel good. things are not doing well in washington d.c. geopolitical circumstances that prevail are ugly. i'd like to be happier at the turn of the year but quite honestly i can't be peered charles: we are running out of

time. spoil your ballot for your commodities investments is up a little bit today but were talking $44 a barrel. a couple months ago talking about 100 bucks. you bought them recently and told. do you think this is it? this might be the mnuchin point. >> one of the users -- producers a sand used in tracking. that is 5% of what i own. nothing. the problem you have to be. the thing for people to watch is what the term structure is doing in the crude oil market in the bidding for storage. the deferred months earlier by the futures. as long as that continues to widen, and as widen, and as such are mental and bearish for the oil market. his oil cheap? yes. but can it achieve for mcgrady can. charles: john, what do you make of it? >> oil, copper and other industrial metals and lumber are telling me the world economy is slowing down.

the u.s. economy is expected to slow. corporate profits are expected to grow more slowly in 2019. why are we talking about monetary tightening? why are we talking about rate hikes? why do we continue with the federal reserve this release of tradable treasury bond that pushes long-term interest rates higher. charles: that's the main thing driving this market lower. gentlemen, you are two of the best. dennis and john, thank you both. i've got a couple of corporate stories for you. first, 200 million smartphones this year. that's a lot more than apple. huawei is now the second-largest smartphone maker ahead of apple but behind dams on. recently it's been hit hard. i think a target of 175. amc theaters says there is more than 600,000 members for steps a list. that's the rewards program. it allows people to watch three

movies a week. it cost $20 a month. it hits the subscriber target more than six months ahead of schedule. check out amc stopped slightly unchanged. some ratings come in recently appeared ahead of the largest office in the country, officers will physically remove i.c.e. agents from his jail. acting director thomas homan will weigh in on that. also talking about the border shut down. democrats in the white house are still a few billion dollars apart on money for the wall. keeping the government partially shut down. alexandria ocasio-cortez saying jesus was a refugee in a christmas treat. the third hour of "varney & company" in a minute. what do you look for when you trade? i want free access to research.

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charles: news alert for you. wanting to use president trump criminal justice sought to get out of prison early. the jury convict did annette burger rao -- is that how you pronounce it? she was convicted of course. we know her role in the largest ponzi scheme in american history but she's asking a judge to be released in march. that would be eight year earlier. her lawyer says the new law

makes her eligible for home confinement. she is 70 years old. she served two thirds of her sentence so far. an 8-year-old guatemalan boy died in past that he of u.s. customs and border protection. joining us now, thomas homan, former acting i.c.e. director. great to have you. this is a touchy situation and everyone is wondering this is another child. how do we prevent this from happening ever again? >> you've got to stop enticing people to come to this country illegally. during my 34 year career i've seen a lot of dead people. i've seen a lot of dead children. long ago i stood in the back of a track your trailer including a 5-year-old little boy that suffocated to death. it's tragic. recently he tried to claim now between the board. they sued, they won.

put people back in harms way. food, water, federal agents to protect them. they said it's okay to enter legally. more people are going to die here. it's very sad, but we've got to stop enticing people into this country illegally. people will continue to die. charles: is there anything we can do in addition to having people follow the legal process, make more entry points or make the asylum process simpler. is there something on iran that we can do to mitigate this? >> we've got to let them know what asylum truly is and the chances of winning asylum the last numbers i look at a percent. charles: it's not ambiguous. you can't get asylum for gang violence and domestic violence. to come to the united states for a better life doesn't qualify you for asylum. we need to get out the message. look, 91% of central americans

to claim asylum because you want a better life do not qualify and you're not going to win your case. that's based on current data. let's be clear on what asylum is a mutual stop these people from coming. they are lining their pockets and unfortunately tragedies like this happen. charles: it also feels like a lot of misinformation coming out of our country. it feels like the messages hey if you make the journey and you can get one fit in, if you can find a way to get in the country, you're in because the process is so complicated that you'll find a way to become part of society. you'll never have come back to court or whatever that is. are we the people of this country sending out the message culpable disintegrate? >> absolutely. that's why i said many times part of the reason people are dying is because the far left and folks up on the hill who don't want to close the loopholes. they do want to raise the bar

for asylum. 90% of people passed that first interview but when they get in front of the judge 90% lose. you've got to fix this agreement because we can't be detaining family settings for more than 20 days. we have to make sure i have enough detention beds that were not backed to catch and release. if congress would fix these loopholes, these populations wouldn't be enticed. game is on. maybe not show up in court. who's going make them leave? >> that seems like such low-hanging fruit. i've got another one for you. and the los angeles county sheriff alex still unaware of them is having to physically remove i.c.e. agents and it looks like the last war and isis here. >> i saw the news club. the minute he said that he should've took a bad job his

desk and put it in his desk drawer. another law enforcement agency from israelis have been a cop and became a politician. he's got to remember the men and women of i.c.e. or law enforcement officers. they have a lot of criminals at-large in los angeles county. he ought to be thanking them rather than vilifying them. shame on him. charles: what do you make of this that i.c.e. is vilified so much. the comparisons are just crazy. it's beyond just opposition. they try to paint i.c.e. in customs and border is the most evil people in the planet. >> assist children in the i.c.e. cage. first of all, i.c.e. doesn't detain children. they haven't got the authority. let me just do one comparison. fy 12 isomer at 409,000 people. 55% are criminals. no one asked to abolish i.c.e.

this year i smoked about 250,000. 87% are criminals. this is about anti-trump rhetoric. this is about anything president trump wants. even if it makes sense. border security is important to this country whether democrat or republican, there is no downside in securing the border other than also president trump wants. charles: merry christmas and thanks for your service. >> you too, sir. charles: lets check on amazon. a record-breaking holiday season thus far. more ordered worldwide than ever before. also take a look at tesla. they still remain bullish on the model three and european demand. but it's still in the green. get this. some colleges are paying people to stay away. we'll tell you why they're offering financial aid to students who will take a year off from school.

this giant snowman needs help. that is franklin. 18 feet tall lives in upstate new york. his art he got a giant top hat now he needs a scarf. his family is calling out for anyone to send materials that can be sewn together to create a 20-foot scarf. you get it all right here on "varney & company." ♪

♪ ♪ ♪ this holiday season, families near you need your help. visit redcross.org now to donate. comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions.

to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. charles: at bad news for you. no one won the mega millions drawing. the jack i was 248 million. the last time someone won the mega millions was in october another single winning ticket

was sold in south carolina. the jack i was a record 125 billion, that no one has yet to claim it. tonight's powerball has a hefty job talk. $294 million. and now there's this. universities like the university of north carolina offering financial aid to entice students to take a year off. >> i'm not a big fan. by the way, duke university is the one leading the way on this. america is a great country. billionaires out there appeared in this case something endowed by este lauder's grandson his heaven i guess about half a million dollars to duke university to do this. eventually he will have an endowment of $10 million to do this in perpetuity. but essentially you take a year off between high school and college. you get paid at the university, which has expected you from $5,015,000 to go out and do whatever you think will prepare you for the real world, whether it's going to india to learn

hindu, which is what some people have done or go to work somehow. i don't know why you need 5,015,000 to work. i took a year off. i do know about you, but i took a year off and essentially took a year to make enough money to pay for college. now you're going to get paid by the college. it's a wealthy great country that we have philanthropists willing to do this. not government. not yet anyway. >> let's see what happens. take the year off and get a plumber's license. >> not only would that help you with your own future, but that would teach you some things about real-life that you don't get in any college course. charles: a poetry major or some thing. it looks like retailers about a very merry christmas. up next we'll talk to retail watcher who's going to break it all down for us. big winners and losers this holiday shopping season.

numbers show that new york city middle class is shrinking. in fact, people are leaving at a rate not seen since the great depression. our high taxes to blame? we've got some questions and we think we have some answers, too. ♪

charles: folks, this is what you want paper or 270, gave it all back and i were fighting their way back. although goldman sachs the biggest loser continues to be a yellow flag for me. nike had good earnings last week. let's talk about these markets for a moment.

ultimately one of those signals investors have to look for is the day we closed up at the height of the session. >> exactly. if things go as they looked to be going so for her, that might happen today. people are ill digested might have been on christmas eve. that was a pretty big shock. i was doing what you're doing and it's a scary thing to follow that biggest christmas eve drop ever for the stock market. they're still digesting it but you've got to imagine the dow under 22,000 has an incredible bargain. charles: certainly in a traditional market metrics that people use with prices failed to price the book, those things are extraordinary. there are some values out there. oversold market can become more oversold. that's the issue here. lack of confidence. who's going to step in here? is that the market, the economy, the fed?

>> there were three big things. is the number one i would put. china and the trade deal number three in government uncertainty about the shut down and all of the political stuff. if one of those three legs of the stool is repaired i think this market has someplace to go. the most likely one being china because china is so desperate for a deal in the administration looks like they could walk away with some very significant. the china deal comes directing the market could turn around. charles: welcome in the china trade terrace is a $20 billion tax in the marketplace 75 trillion. so that's a fair trade-off. holiday season to record-breaking for retail sales. the man himself with strategic resource group. the managing director. you're my man when it comes to retail because you know burqas into the kmart's. he started filling materials.

bert goes then. he starts filling materials. >> helps build the displays. so, we know that even though overall the news is pretty good, there were some winners and losers are let's start with the winners. >> winners, amazon, wal-mart, early tin, cosco, all of the price players. bath and body works with tony 81557 in dallas taking great care of the customers. they were winners. a lot of losers. when people received his or her "wall street journal" on saturday, we saw a distinct rollover in shopping late saturday, sunday into monday announced today where it is jerome powell's train wreck under the christmas tree. where people are worried about stocks.

the retailers pay their pension plans for other hourly workers. under the christmas tree is taken to trillion in value out of the pension plans. retailers have to fill the hole. that's going to hurt cat facts. hours, inventory. trade to there being very distinct ways. they're picking and choosing. i was at a mall christmas eve and the biggest line was pandora. it was one of those old-fashioned applewhite used to see. but the luxury stores like they were doing well. >> luxury sales are buying primarily on price. there is great value whether it's online or on land or on mine. people are still buying. the consumers are getting very cautious. people can't trade in the local currency so they need to trade

import, export and dollars than they can get dollars. powell is doing what stanley drucker at mile seven in "the wall street journal" op-ed. here's a guy who claims he's a businessman and is the country privilege person from princeton. never been an economist. making some major mistakes. charles: that's interesting. i thought the fact he was with carlyle, not that he wasn't an ivory tower, but main street -- >> my alma mater procter & gamble was victimized by the scandal of bankers trust when he was there as when franco, was running it in the estates that the money was supposed to go to new jersey. it went into the park paris pocket.

from 95 to 97 paid any money back. to me he had the crowd coming over his head when he went into the fed and is not practitioner. he's not an operator. i'm with druckenmiller and kevin wash. i want to capable person running the fed instead of getting this trade wreck. charles: regard to iraq. if president trump is unhappy with this were stuck with powell right now. any chance he can have an epiphany? he seems so comfortable with this decision making. >> i listen to the q&a. hopefully he has an epiphany. there's an old saying you can tell he princeton said person, but you can't tell him much. obviously walter was great, but for nike and powell, don't think were getting much. charles: thank you.

by the way, toys "r" us closed around 800 stores this year. those properties are now hot commodities. you've got those details. >> 800 stores. they had to sell them all. as you know they had to do bankruptcy and didn't work out so they had to liquidate. these things are going to be sitting there like train wrecks without being filled. they are really selling. by other companies or people buying their leaves. a lot of these for toys "r" us or long-term leases. leases that were made decades ago. they are willing to pay premium for leases and half of them are ready filled. >> or weimar flanigan outlet just like that. >> about half of those have now been filled and not much more. a lot of retailers were saying that they can fill 10% will be lucky. >> and now there's this census

data to win the new york city already striking mental classes now striking faster. that's the higher cost of living to the data shows the city losing 100 residents every single day. betsy mccoy, former new york lieutenant governor. >> not just the cost of living charles because in fact the whole state is losing people. 180,000 people fled from new york state in one year, the last year. why are they leaving? because it is tactile. we see the same thing happening to a lesser extent in new jersey, california. there are losing resident. we're in danger of losing two congressional seats. that's an indicator of how many people are fleeing to places like florida and texas and arizona which offer a tax break. charles: how do you square that with giving billions of dollars to amazon. that was a rotten deal.

it was designed to allow the politicians in new york state, new york city, andrew cuomo, buildable osseo to take a lot of kudos but they're taking the money out of taxpayer pockets and wrecking it for people who for example made mass transit. here is the truth. the tax foundation report pointing out where you don't want to live because taxes are so high. and of course that's why new york residents are fleeing. charles: you can't do the flight out. what are their names? >> new jersey number one. california number two. new york number three. connecticut number four. >> here's the thing. they seem to get to a point where they crossed the rubicon in the nothing they can do with respect to real reform to get back where they were. if the welfare state. they promised welfare to certain people. >> let me tell you a lot of that have did you with sheer extortion by the public unions.

you look at what it costs, for example, to repair one mile of road in new york versus florida and you've got your answer. in general, florida provides a high level of services for its resident for one half of what new york spends. one half per capita. charles: what's happening in paris has less to do with the whole thing about climate change. people don't believe the higher the taxes are the more the politicians use it to good purposes. they have increased the budget by 30% over the past four years in the subways are dirtier. >> in the schools aren't even doing better. imagine spending 22, $23,000 per pupil and still not getting good results. charles: it's a shame. great seeing you now. i treated out that you still believe in santa. >> i do. charles: outgoing senator claire

mccaskill and alexandria ocasio-cortez telling journalists use not quite sure why ocasio-cortez has become so popular among her fellow democrats. and if a resource to watching your money for you. a real nice recovery gear all over the place. we know what v. stay buckled up. much more in this market coverage this afternoon. tune in to watch me on making money right here in that yen. every weekday at 2:00 p.m. i've got a feeling it's going to be a great show today. you we know their rates are good, we know that they're always going to take care of us. it was an instant savings and i should have changed a long time ago. it was funny because when we would call another insurance company,

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charles: quick check on the big word. all the way back up. still the dow above 233 points. check on the big tech names.

rocket out the gate, check out the big percentage gains for facebook and amazon. check on oil because the big rallies going on over 5%. this is speculation opec will hold an emergency meeting. congresswoman elect alexandria ocasio-cortez refers to newborn baby juices of the refugee in americorps smith street. joy to the world. merry christmas, everyone. happiness, family and love for all people including refugee babies and mangers and their parents. come on then, fred barnes, fox news contributor. would you make of her interpretation of the bible? >> i think she's wrong. joseph and mary and baby jesus were not refugees. they had come down from the

north in what is now israel down to bethlehem. there was a sense is going on and they had been ordered down there by officials. so i think she's got that one wrong. nice try but it didn't work. train to anything they can try to turn a make a negative. i think they're trying so hard and they create these embarrassing moments one after another. unfortunately, alexandria ocasio-cortez does these gaps are too often. >> she's going to continue to do it for one particular reason for not a she's never held responsible for statements wrong, particularly when she tries to put price tags on things she think the government to spend money on. they're wild and made up in yet she's not held responsible.

>> that brings up another thing. outgoing senator claire mccaskill took a dig at ocasio-cortez. but share with the audience and then get your thoughts. roll tape. >> i'm a little confused. >> she's now talked about a lot. i'm not sure what she's done you to generate that kind of enthusiasm. the rhetoric sheep. getting results is a lot harder. what's your reaction to that? >> i can explain what's going on. claire mccaskill, democratic senator from missouri lost in the midterm election in november and then she sees this young woman who is 28 and very pretty getting all this attention with a total free ride from the

press. i think mccaskill kind of resent it and i would too if i were in her shoes. >> what about the idea that somebody's establishment politicians presented as well. let's not forget the ocasio-cortez be the guy who was supposed to be two or three -ranked democrat when the dust was settled. he was so comfortable and someone argue air again. i don't know that he did much campaigning. he moved his family out of the district a long time ago. he became the poster what's wrong with politicians and she took advantage of that. >> she did. i don't think it's her socialism. she declares herself a democratic socialist in all the programs she wants all the rest of us to pay for. do you know why she won the district had changed so dramatically in the last few years. eight or 10 years ago and she

really capitalized on that. charles: she did. i would give her credit her ads are powerful. >> and she is very pretty. charles: you mention not. thank you very much. merry christmas. released from a tokyo jail, authorities were holding among $636,000 bail for charges of misreporting calzone salary. a thirty-year nissan veteran without any possibilities of bail until new year's day. harley davidson motorcycles are falling fast. i want to know if this has something to do with their fight over president -- with president trump. bikers for trump, their founder chris cox is on not. he is next.

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charles: another's lives. sales of harley-davidson motorcycles falling even faster according to a survey by analyst, want to bring in chris cox. you know, just how much the politics have to do with this. president trump put itself somewhere in the middle of this saying they were going to move factories abroad amid already looked at by aliens. but then there's the fact that millennial had not been buying these like older generations.

>> yes, charles. you've got some big shoes to fill there in new york. thank you for helping us. we certainly feel like not level which come the sea of an pose a public apology. they've gotten far away from this american-made grand. the only thing american bout it is the name. china and vietnam and so forth. as far as millennial scope, that remains to be seen. they will help or he identified and reach out harder to them. bikers were built on behalf of the blue-collar, welders, truck drivers, cowboys. until they get back to putting america first again i don't see a lot changing for harley-davidson. charles: up third meme is hardly used the white house for photo ops and things like that. i did the research. i could tell you right now in public filings, these have been

going for a long time and part because they were seeing growth in areas where the audience was getting older in america. i don't know why they couldn't have come out and said that. she had a good reason to be upset about all of this. the challenges that businesses have, and general motors, last year in the third quarter they lost almost 3 billion. this year they made almost 2 billion they did the blame game for all of this. brothers and sisters drivers of harley's, do you think the corporate executives will listen to you? >> well, they are certainly out of touch. for them to suggest the president have anything to do this this is absurd. it was certainly a cheap shot to the president. we help facilitate one of the first visit to the american company to the white house was harley-davidson a result of the biker for trump is met they

tried to hold them and raise them on the mantle of respect then they turned around lap them. i know are hundreds of thousands of members are still sore about that and they certainly got a little bit of apologizing to do to our president. they want this moving forward. charles: i'm inclined to agree. thank you for joining us. i'm trying to fill these big shoes. you helped me a lot. i appreciate it. >> you're doing a good job. i ordered a new vest for sewer for christmas. i'm looking forward to giving that to them. charles: cool, see you soon. a first look at his new "star wars" thread that opens next summer. we've got a sneak peek for you. right after the break.

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charles: check this out. disney has released a new video showing off its upcoming a traction, "star wars," galaxy's edge. it is two rides in one. can fly the millennium falcon. galaxy's edge will open at disneyland, neck -- next summer and disney world in the fall. >> i hate to spend four hours rate waiting in line. >> i like it. we're up almost 300. gave it all the way. and, over the last couple weeks that was the sell signal. >> people looking at retail figures. by the way, former head of walmart on "bulls & bears" tonight at 5. your excellent show will follow this market. we have gary kaltbaum, john layfield and others. there is something the market with retail numbers that the market couldn't overlook.

charles: consumer is 2/3 of the economy. hard to argue we're going into recession. hard to argue that. buys, watch david tonight at 5:00 p.m. meantime, blake burman filling in for neil. >> my first time filling in for neil. handing me a market at market highs. i am hoping i do not mess it up. charles: it is called the cp effect i am filling in for neil today. the dow up 340 points which he said the shutdown could go on. he continued to take aim at the federal reserve. the president signaling you know what? rates might stay like this for a little while. oh, by the way, you might want to buy this dip.