benefiting from the growing importance of natural gas in the united states. we're at record levels of production. cheryl: right. >> record levels of consumption. those are all benefits. cheryl: ryan kelly, here is end. year. [closing bell rings] wasn't a great a great year for all of us. head to kristina partsinevelos and susan li. susan: stocks climbing today after president trump touted trade progress between the u.s. and dow and nasdaq snapping a two year winning streak. i'm susan li in for melissa francis today. kristina: i'm kristina partsinevelos in for connell

mcshane. this is "after the bell." we do have session highs for the day, ending what you saw was pretty green monday. this is final coverage on final trading day of 2018. gerri willis on floor of new york stock exchange. phil flynn watching action in oil. edward lawrence, don't worry we'll get to you in washington, d.c. start with gerri. tell me what is going on. there how is everybody feeling today? >> everybody is feeling great. i can't remember a day where we start higher and ended higher. that is happened with 268 points on the dow. the dow for the month down 10%. the dow had the worst december since 1931. that is 87 years. very difficult time. dow this year, bad performance for entire year. largest one year point and percentage decline since year-end 2018. we were down 1566 points for the dow. that is 6.%. that is the biggest drop since

the financial crash. the dow down 6.7% for the year. s&p 500 down 7%. nasdaq down 4.%. hope springs eternal though. traders called it a day we would end higher. that is exactly what we did. good news for the last trading day of the year. kristina: gerri, good news. thank you for your work there. jonathan hoenig capitalist pig hedge fund. todd horowitz i feel like he is fox contribute to, he is on just as often. bubba trading show host. start with you. what is causing this volatility in "barron's" over the weekend there was article saying this was zombie's market. investors react to the headlines, adding to that roll roll -- volatility. todd. >> i don't think there is any volatility. 20 year moving average this is normal volatility.

as floor trader this is the volatility we trade in forever. the volatility got crushed because everybody trying to manipulate the markets. finally when the markets move with a free market sense you have some volatility which is more than natural for the markets. i don't put too much volatility. volatility should be in the mid 20s. that is where it belongs. kristina: just to point out -- >> 25, 28. kristina: right now? >> if it gets to 50 you should worry about it. in mid 20s it is normal volatility. kristina: jonathan. >> i will venture a guess. this is lack of leadership. higher day for the market. happy new year. i'm just seeing your outfit. >> happy new year. we haven't started celebrating. not too much to celebrate. christina, the market dow was higher. more stocks were lower. more stocks continuing in downtrend. 130 new 52-week lows.

only 7 new 52-week highs. as gerri willis told us. this was the worst december since 1931. this isn't just december. starred back in october. used to be tech we thought would be the problem or the "fang" stocks. ended up being everything from fang to energy, to financial stocks. this was a tough year for any asset class. without a leadership, i just don't know how even january and february this market will turn itself around long term. susan: you mentioned tech. let's move on to technology. we had some big winners. also some big losers as well. amazon soaring 26% this year. with facebook sinking 24% after being plagued by a series of controversies. jonathan, talk about technology first of all. i would say dominoes started falling when you had likes of alphabet, amazon, guiding for weaker quarter than expected. >> this was really -- you want to know what really led the bull market? officially we can say the bull

market finally ended after better part of 10 years. what really led it was technology. the "fang" stocks, facebooks, amazons. this was the year you saw that bull market end and end pretty decisively. the dow, nasdaq, s&p, the nasdaq is officially in that bear market. when you see names like apple down, double digits for the year and strongly down for the year, it is tough to know where the leadership will come, if not from technology from where? that is same question we've been literally asking since early october. susan: maybe sentiments were in a bear market but technically we avoided that for now ending this bull market run. >> in the nasdaq. susan: in nasdaq we are down, but s&p and that is what these technology companies do. they set the bar really low for the numbers. come out and beat them. i guarranty you amazon looks

food in the first quarter. >> i don't think they will look all that great. i don't think they will look all that great. markets don't look that great to begin with. as jonathan pointed out, there are more stocks going down than going up. i would expect to see this continue. i think it has a chance to get really ugly when we come back from the break here, sometime. i don't see a reason why all of sudden we should start to get positive what markets will do from now. susan: we'll talk about china trade. that might be a positive, right, kristina? kristina: we'll get into that, guys. stay put. go back to stocks. you saw them climb amid new hopes for trade progress. president trump tweeting quote, just had a long and very good call with president xi of china. the deal is moving along very well. if made, it will be very comprehensive covering all subjects, areas and points of dispute. big progress being made. edward lawrence in d.c. with more details. edward, is this just a promise

right now? reporter: we'll see. the president is making head on and making somewhat of a dent. he is using a trade surplus with china, to gauge something is wrong with our trade relationship. look what happened to the trade surplus with china since 2018. it ballooned for china, coming down somewhat but still a very large number. now we have at least a change in tone from the chinese. chinese president xi xinping addressed their nation today for new year's eve. he said in the speech he never mentioned trade specifically or the u.s. but he said the pace of reforms will not stagnate. and that the reforms will open china's door wider to the outside world. match that with president donald trump's tweet from this weekend. they had a long call with president xi. the deal is moving along very well. big progress being made. experts on china say president trump forced china into the table to talk. >> trump in 2017 was pretty generous toward the chinese. we saw at the beginning of this year there was a change in tone

in the white house and i think the chinese are now starting to say, oh, my gosh, maybe we underestimated the white house right now. reporter: treasury secretary steve mnuchin says to expect a face-to-face meeting in early january with the chinese. they're facing a march 1st deadline for changes or $200 billion in chinese goods will see tariffs from 10% to 25%. back to you, kristina. kristina: thank you, edward lawrence in d.c. susan: let's get back to jonathan and todd for more on the china trade news. as i said there are a lot of positives heading into the first quarter and including some are betting there might be a trade deal before march 1st? >> let's hope so. this has been the number one fear and the number one concern from everyone from the federal reserve to ceo's big and small. trade is the number one worry and number one expense for many, many companies. $50 billion in tariffs paid by u.s. consumers on imported goods

from china. this is hindrance. you can ask any ceo. we've been told this story, investors are told a deal is in the works. why you didn't see too much of a reaction today. any type of resolution would be a positive because it has been really weighing on economy and market writ large in 2018. susan: todd? >> i'm on the opposite side of the trade as jonathan is. i don't think trade war is big deal. you saw way it played out in the market. grain markets did not rally on positive news from china. grain markets have done well before this trade war and before the talk. they're still rallying. still higher than they were when it all started. i think it will settle out. street is pricing in it will settle out. there may be fears, biggest fear is politicians and lobbyists make it a bigger ordeal than it really is. it will work out just fine. if politicians and lobbyists

would stay away, we would get a deal done. kristina: turn to a note we had from goldman sachs, pretty much dating a cautious year. bank cutting first half gdp forecast for 2019 from 2.4% to 2%. jonathan, what do you think of that downgrade? people are talking about it. people are saying the fed and possibly weaker u.s. economic data. what is your take? >> best indicator is the market itself. the market is a forward-looking indicator, even this year the market was down, fundamental data, gdp and employment was quite strong. that is normal because the market is formal looking. the fact they're cutting estimates for that fundamental data is appropriate. just as market led fundamental data up. market is basically up for almost 10 years. for much of that the fundamental data was very poor. this year the fundamental data has been good. market is weak.

absolutely if not recession or perhaps banking crisis or liquidity crisis you could see in 2019 without fail. kristina: todd this is pretty good for you given opposite view you guys have. i could hear you laughing. both are dressed up nicely for our show. you're definitely more optimistic, right? you think this is healthy correction? things will be rosy and peachy going into 2019? >> no, i don't, i'm with jonathan here. kristina: oh, okay. >> we're on the same side of the ticket. i think this will be ugly. i think biggest problem the fed should shut up and get out of the way. they are creating more of this problem and when did they decide the fed is what we trade markets on all the time? the market should be free markets and assets price themselves through price discovery. i don't know why the federal reserve can't understand that. that interest rates and everything else would price normally. the big problem, i think there will be a huge liquidity crisis. you heard steve mnuchin come out say, hey, everything is okay.

last time somebody said okay paulson in 2018 and andrew mellon in 1929. everything will be fine. deutsche bank says we're prepared for a big collapse. those tell you there are problems underlying the surface. there will be liquidity issues and banks are underleveraged once again. susan: we have two bears, great on final day of trade. we talked about liquidity. we have hungry investors out there, bracing for a robust 2019 when it comes to ipos. companies, huge companies like uber, pinterest and slack gearing up for stock market debuts setting stage what could be a record year, todd. if both you and jonathan have the same view of a liquidity crisis, ipos, you know what they do, they drain liquidity. makes you wonder why these companies are going public this year? >> they may not yet, right? they're talking about it. they ought to make sure they get their money, what they want out of it before they commit to go public. we've seen this many times

before with companies. this uber is obviously gigantic ipo. if they can't get what they want they may decide to hold off a little bit until we get stronger market. susan: i'm not sure about that, softbank they want their money back. jonathan, what about big ipos, any that pique our interest? >> this has been unicorn bull market. all the unicorns, many come public. uber obviously has not, to todd's point very difficult year for ipo. check out ipo that is etf, exchange traded fund that tracks performance of recent ipos, it is down 19% this year. so unless the recent ipo performance can turn around. i'm with todd, in fact a lot of proposed ipos might not come public as a lot of their backers hope in 2019. susan: guys, thank you for getting dressed up. we'll get back to you in just a bit.

kristina: oil snapping a two-year winning streak, closing down nearly 25%. we have to go to the expert, phil flynn who is at the cme. phil, we talked about domestic production climbing higher in the united states, opec potentially cutting supplies or potentially putting in production cuts next week, what do you think will happen in the 201019, the price of oil? will we ever get higher than 80 bucks a barrel. >> i think we will. we will try to test it. 77 or bust. if you can't stay up until midnight we can celebrate the eia report, came out a little while ago, right? 11.5 million barrels. we set in order record according to u.s. energy information, u.s. oil producers hit another record high. that is five records in a row. my gosh, almost as good as my chicago bears. another good reason to celebrate today. that is part of the problem here. that is why oil prices are down. u.s. producers have exceeded expectations. they have amazed the world, they

changed the world and that has been very bearish. at same time, opec cuts won't matter and they will be up next year. kristina: love the enthusiasm. thank you, phil. susan: possible military shift in syria. new indications president trump could reconsider pulling our troops in the region? what could it mean for the middle east and the fight against isis? that comes your way next. kristina: plus day 10 of the partial government shutdown. democrats planning a vote to reopen the government. president trump standing firm on his demands to fund the border wall. a live update from the white house next. susan: ringing in the new year around the globe. we'll take you live to the action in times square, new york city, as big apple prepares to say good-bye to 2008. ♪

susan: the government shutdown hits day 10, house democrats are preparing to advance a proposal to reopen the governments when they take control of the house

on thursday but will this legislation move washington any closer to ending the shut down? let's bring in blake burman, standing by at the white house with the very latest. blake, we miss you up here. reporter: miss you as well. happy new year's. the answer to your question, probably not. because this is the democrats gameplan which democratic sources are telling fox. democrats take control of the house as we know on thursday. from there they're going to try to advance legislation which will do couple things, if it passes the house, it would keep the agencies, 25% of the federal government shut down funded through the rest of the fiscal year, that would mean through september. also fund the department of homeland security through february 8th. it does not, what the democrats are putting forward include any money for the president's border wall and the president has said, that if there is not money for his worder wall, he will not sign any sort of legislation like that whatsoever. just a little while ago,

president trump spot with pete hegseth, phone interview, which will air later this evening on fox news for fox's new year special. watch. >> i'm in washington. i'm ready, willing able, i'm in the white house, i'm ready to go. they can come over right now. they can come over anytime. i spent christmas in the white house. i spent new year's eve in the white house. i'm here. ready to go. it is very important. a lot of people are looking to get their paycheck. i'm ready to go anytime they want. we are not giving up. we have to have border security, a wall is a big part of border security, the biggest part. reporter: this is the argument, look we're trying to keep the government open. let's have the conversation, mr. president sign this legislation. the president is clearly saying he will not sign anything unless there is significant amount of money for the border wall? when does the stalemate end? it is going into 2019.

we don't know how long. susan: happy new year to you, blake. reporter: see ya. kristina: a hack across the nation. a cyberattack targeting several major newspapers slowing dib shun to customers. who was behind it? plus senator elizabeth warren taking first steps towards a potential 2020 presidential run. will she be the one to take on president trump? dan heninger from "the wall street journal" rounds next. ♪ i don't know what's going on. i've done all sorts of research, read earnings reports, looked at chart patterns. i've even built my own historic trading model. and you're still not sure if you want to make the trade? exactly. sounds like a case of analysis paralysis. is there a cure? td ameritrade's trade desk. they can help gut check your strategies and answer all your toughest questions. sounds perfect. see, your stress level was here and i got you down to here, i've done my job.

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>> taking the first steps towards a presidential run, senator elizabeth warren considering a white house bid in 2020. >> i never thought i would run for anything ever in my life but america's middle class is getting hollowed out.

opportunity for too many of our young people is shrinking. so, i'm in this fight all the way. kristina: joining us now, dan henninger, "wall street journal" editorial page deputy editor, fox news contributor. dan, let's talk about the timing of this. the fact that she is not alluding to actually exploring the option of becoming president before everybody else. do you think this will help drum up support? >> yeah, i think it, there is nothing, you're never hurt by being first out like this, getting all the publicity. we're in a down period with the government shut down. president trump sitting there in the oval office waiting for democrats to talk to him. nancy pelosi is in hawaii on vacation. why not announce your candidacy for the press den sieve the united states. we're all here talking about elizabeth warren right now. kristina: exactly but let's focus maybe what can she bring to the table as a candidate? there are many people that will come forward. what can she bring compared to

others? >> well one thing that people don't know about elizabeth warren, she has been spending the previous three or four years going around the country helping elect democratic candidates and supporting them, not just the marquee candidates, senate and house levels but lower level in state governments. elizabeth warren has network of democratic people across the country, who she expects to be able to call on to support her. she will start putting that in motion. she can raise money for her campaign. she already has 12 1/2 million dollars on hand. kristina: she can take the money use it for this presidential campaign as well? >> that's right. momentum propelled by supporters working for her, the money she can attract, will give her a bit of a head start against a extremely crowded field. kristina: speaking of the crowded field, talk about the potentials. immediately writing this down, the four big bs, you have got bernie sanders, you've got maybe

michael bloomberg, joe biden, beto o'rourke, but the list can go on. i wanted consistency. what do you make of all the candidates? a lot coming forward for the democratic bid? >> we'll all see if they get greeted way elizabeth warren has a lot of criticism, from the democratic side. she waited too long. kristina: hearing that criticism? >> hearing it from the media. kristina: on both sides? >> a lot of it from the liberal side. the did. in. a report she put out is a mark against her. this is night of long news for democratic nomination. i expect every time they nominate for president, there is lot of criticism from people to cut them down so their candidate moves forward. we're talking about 20 candidates here. kristina: isn't that expectation for any candidate? you have people that will bring

you down. native-american, 0.09%, there is a little bit in there, but, i think that should be better arguments why she is not a good candidate, not because of what is in her dna? >> ultimately the democrats have to come up with a substantive argument why they should be running the country and not donald trump and interestingly elizabeth warren's video is suggesting that the country is in state of catastrophe. that people are being damaged by the trump. kristina: middle class. >> middle class, especially. this will be the argument going forward, which will be tough to make if economy remains strong and middle class wages rise. that is the gameplan. kristina: i can't wait to see sect this for you for every single candidate that comes out. have a good day. susan: economy in focus after a volatile year. concerns are growing about a possible recession in 2019, how likely is it to occur? we're diving into that next. plus, president trump, defending

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susan: put it in the books. historic 2018 trading year has now come to a close. markets saw a summer of new highs before a brutal final quarter including the worst december for the dow and s&p

since the great depression, 1931. as nasdaq's worst december since 2002. so what does 2019 have in store? who better to ask, economic than wall street economic historian,. says you're usually up 90% of the time afterwards. is that true in your view? >> i believe its, yes. susan: so where do we go from here? 2019 going to be a positive year? >> i'm always an optimist. i think january will tell the tale. when we get the labor report in next friday, and then the, fourth quarter earnings and year earnings start coming in, i think they will be up strongly because of the tax reform we had last year. susan: why do you think the selloff has been overdone, john? >> i think people get nervous in the fall. why we have the reactions almost invariably in the fall.

summer is time of optimism. then the fall, suddenly we turn from being grasshoppers to being ants. we try to get rid of stocks we thought were so hot in june and therefore the market falls. that tends to reinforce itself. susan: what about a falling stock market in light of a strong economy? we are looking at the best year of economic growth since 2005. also the best employment market since the 19, end of the 1960s. have you seen this before? >> sure, it happens. what we have here was the market really did get quite high in august, i mean the s&p pe earnings were way up. now they're back down to around normal. so i think at the moment it's a normal correction. as long as we don't have something out of left field, like a major trade war with china you're going to, that next year will be a good year. susan: we had a few guests earlier on this hour, talking about a liquidity crisis. that sounds like 2018. is that overblown?

>> say that again? susan: so we had two basically market watchers predict a liquidity crisis, kind of like 2018 to take place again. is that overblown? >> i don't, i don't see a liquidity crisis. i think the banks are in fairly good shape. and the housing market is also in good shape. it has been down a little bit. but i don't see a major liquidity crisis. susan: one more question for you, john. a lot of people have been coming up to me asking how safe are their 401(k)s. what do you say to people that come up to you with the same question? >> i say, if you follow benjamin graham, the intelligent investor, don't get overleveraged or leveraged at all, perhaps you're going to be fine in the long term. nobody ever made money being a bear on the american economy in the long term. susan: very good point. john, happy new year, thank you so much. >> same to you, thank you. kristina: sticking to a campaign promise. president trump defending his decision to pull u.s. troops out of syria. even as he says he is slowing

the withdrawal down. fox news's lucas tomlinson is live at the pentagon with the latest breaking details. reporter: kristina, this isn't the first time we heard the president talk about withdrawing from syria. a tweet december 23rd, the withdrawal from syria would be slow, highly coordinate the following his phone call with turkey's president. now it is appears official. following his meeting with president in the white house sunday, senator lindsey graham says appears the pullout is now on hold. >> i think the president is committed to making sure when we leave syria that isis is completely defeated. we're inside the 10-yard line. the iran kurd situation has to be dealt with. we're in a pause situation. reporter: there were other developments in the region. bashar al-assad, gave iraqi forces to carry out strikes anytime against isis in eastern

syria without waiting permission from damascus. today the iraqi military did just that, bombed isis positions near the turkish border. turkish officials traveled to russia to talk about kurds. john bolton will travel this weekend to turkey and israel this weekend. joe dunford, chairman of the joint chiefs of staff will join bolton in turkey. it is not clear if the u.s. military will continue to arm the kurdish forces fighting isis over turkey's objection. jim mattis steps down tonight at 11:59 p.m., one minute before ball drops on 2019. he is replaced by his deputy patrick shanahan. there will be no ceremony. normally there will be but this time it takes place over a phone call. kristina: thank you very much. >> u.s. newspapers targeted across the nation. details on cyberattack that

caused major delays in the u.s. how to protect yourself and your data. waving good-bye to 2018. nearly two million people standing by in new york city to ring in the new year. we're live at center of all the action. that comes your way next. ♪ i'm ken jacobus and i switched to the spark cash card 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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susan: cyberattack targeting some of the nation's biggest newspapers. a foreign entity launching a malware attack. hitting computer systems and major delays for publications across the country. morgan wright, assistant program senior advisor. good to have you on the program, morgan. why target newspapers? >> very simple reason. they have a deadline to meet, every 24 hours. their revenue is based on it, advertising, subscribers. these are the people, there are couple theories, more likely to pay if it is, malware we're hearing we think is ransomware. you're encrypting files and holding them for ransom. they're trying to extort payment to get the files back. newspapers have to do something every 24 hours. if not them, most likely a nation-state like iran or north korea and most likely in retribution for something. susan: isn't it easier to access and hack as well, morgan? >> yes. it will come down to one or two things, things like this, susan.

either it is spearfishing where we're hearing these are targeting emails to exploit, to allow access to send in malware or previously known vulnerability on servers nobody patched like he can equifax. they didn't patch it and 145 million records later they wonder why it happened. how much traditional newspapers rely on digital infrastructure to get their job done. susan: nation-stateswise, which nation-state do you think looks likely here? >> i went out on a limb a little bit with sony because it wasn't too much, they put out the movie, kim jong-un didn't like it. if you see something like this, north korea or iran, they need something because of sanctions. they need hard currency. however russia launched the largest attack simply to do damage. the russian gru, military

intelligence arm, they launched a campaign to disable a lot of things. nobody knows real effects right now. what we know it will probably be ransomware. why? they're still down. they're trying to figure out how to get systems back up and running. that is usually most devastating type of thing especially mission critical operation like the news business has to be putting something out every minute. susan: you bet. fast moving deadline oriented business. highly stressful, mind you. morgan, thank you for your time. >> you bet. happy new year. kristina: kicking off the new year in style. the new year's day megamillions jackpot is getting even bigger. plus your hard-earned cash at risk. details on nationwide exodus pushing people from high-taxed states. stay tuned. ♪

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susan: take another look at markets on a day the dow closing up at session highs. it wasn't enough to make it positive for the month or year. so the index closing out december, marking worst performance since 1931. had to go back to the great depression. the dow, s&p, snapping a two-year winning streak. we're looking at the worst year for the benchmark since 2018, the financial crisis. kristina, we have to hope 2019 will be a more positive year. kristina: so much hope for the next year. but, for now, people could be high-tailing it out of high-taxed states. people and businesses making a mass exodus from states like

california and new york. fleeing to more tax-friendly locations much we turn to our very own jeff flock who is live in hammond, indiana. it stopped raining right now, but are we seeing a max exodus there? >> not exactly the best weather in either illinois or indiana but i'm right on the border. i tell you, we're seeing pretty much of a big population shift from places like illinois with the high taxes, to, states like this, indiana, much lower taxes. illinois one of nine states across the country that actually lost population as we check figures at end of 2018. most of those states, aside from the ones that have energy as big driver of their economies, most of those states, high-taxed states like connecticut, new york, hawaii, as well as illinois. illinois, by far the biggest loser. look at numbers on people having left the state.

114,000 over the course of this past year. that is pretty much of a medium-sized city all gone. when you factor in births, people moved into the state, still net lost 45,000 people. this is the fifth consecutive year the state lost population. what impact of all of that? often businesses moving out. in places like california. i have to be honest with you, indiana, illinois, perhaps from weather today, not greatest weather in the world. california has great weather but a study of business over the course of the past decade, 1600 plus businesses moved out of the state because of high taxes, moving capital with them, to the tune of $76 billion. jobs lost? 275,000. good thing they have good weather out there, nobody would be left. kristina: exactly, to allude to that. illinois the fifth straight year of declines. what do you think or what are you hearing will be the case for 2019? more business closures, more people leaving?

reporter: it's possible. we had a republican governor up until now. in two weeks a democratic governor who takes over campaigned on the platform of a progressive income tax. the state now has a flat income tax. not tremendously high rate, but if he gets his way, then you basically tax people that make more money, not just more money, a higher percentage of that income. studies tend to find that state has do that tend to have people moving away into states with a flat tax, some of them with no income tax at all. people don't like taxes. i don't know why but they don't. kristina: the words of jeff flock. happy new year. thank you. susan: totally makes sense. cashing in in 2019. the new year's day megamillions jackpot soaring to estimated $425 million. tomorrow's drawing is set for 11:00 p.m. eastern time. marking the first of the year. this is the 8th largest

megamillions drawing in history. i hope it hits me. i'm really hoping did you buy a ticket? susan: just the other day, didn't win. the jackpot has grown to 425 million. kristina: on that note, i wish i had confetti to make this way more exciting but ringing in the new year in new york city. nearly two million people expected to sell bright in times square. we're taking you to the heart of the party. i still think it is here where celebrations are already starting. look at the lines claims the hard work you put into lowering your

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counting down to the new year. in just about seven hours time from now the crystal ball will drop in times square and bringing us into 2019. let's get to fox news' jesse

himrick on the scene. i'm looking at a lot of people behind you. reporter: more than a million people are expected to pack into times square tonight. more than a billion watching on tv. lots of pleasure. police are making sure that their first priority is safety they're using drones to back up their security camera. thousands of officers are already deployed around the city and sniper teams are stationed on rooftops. nypd is using new odor pursuit dogs for the first time. right now there are no credible threats against the event. but as police are preparing to keep you safe, organizers were doing some preparations of their own. yesterday they tested the ball drop mechanism and its 32,000 lights. this tradition is 130 years running. >> we used to do it by rope, six

people, four men on ropes, there were supervisor, a man with a stopwatch. and even back then in the 1950s the ball got stopped halfway during the celebration. >> the new chri crystals were installed on sunday. it's encrusted in 2500 waterproof crystals, 12 feet in diameter and weighs in at 12,000 pounds. we've come a long way since the first new year's eve ball in 19507. it was made with iron and wood and lit with light bulbs. there were 125 of them. it is what you would use for a table lamp. we are a lot brighter here. but the work will not end at the stroke of midnight. the clineup is happening tomorrow. last year officials hauled out 57,000 tons of debris and it looks like they may hit that number tomorrow. >> we're looking at two million

people, a billion watching on television and 3,000 pounds of confetti which they tested yesterday as well. does it feel like it's as big maybe as previous years? reporter: it does. and the police are giving it a little bit extra attention. they're using a few new surveillance methods. one i mentions before, the odor pursuit dogs. they just da debuted in novembe. this is their first time at new year's eve celebration. they're specifically trained to sniff out a suicide bomber and lead the handler to that threat before it ever reaches a crowded place or its target. so very high-tech security here keeping everyone safe and everyone should feel like they can relax and have a great time. >> you're a trooper. happy new year. thank you very much. here now is maddie gomez, mg security services president and former fbi special agent. we just heard from your

reporter. thanks you for joining us. our reporter was alluding to how crazy it is down there and it's not even 5 p.m. eastern time. you've got drones this year. how are the drones going to help with security within the area? >> drones are a new technique that's being used internationally for both entertainment, sports and law enforcement. so now what we're having, we have aviation, the helicopter division of the nypd they're going to be hovering high up and they're going to be channeling live feeds to the troops on the ground. the police officers on the ground. but now the drones are going to be much lower and they're going to be much more mobile so they can go directly to the scene of an altercation or a potential action that the plidz has to take place. they fly lower, they're quick, they're very adroit and they have a spe sophisticated camera

system so they can react quicker than ever before. >> if you have it hovering, let's say let's a fight that breaks out near the ball and the drone is hovering above. does it send a signal to a guy behind the computer and the guy behind the computer tells the police officers within the area to react? >> it works both ways. it could be somebody on the ground alerting police officers nearby that there may be a suspicious package or person and then the officer alerts the drone unit to immediately go to that section and add extra protection or vice versa. the drone could actually alert police officers by using the equipment that it has on board, the camera equipment that is very sophisticated, they could zone in on an individual, some sort of package or other threat. it works both ways but it's an exceptionally advanced tool that the nypd has added to their arsenal. every year they use the intelligence they receive from

incidents that happened throughout the country and the world to enhance the protection for new york city. >> just a really quick question. we have the dogs that are there. you have two million people. how are dogs going to be efficient? >> when the crowd comes in they're put in pens. before they're put in pens they get screened for explosive devices and harmful material. once they're in the pen they can't come out without being screened again. the dogs are essential without frisking or going through metal detectors for people to be searched through the dogs for any explosive or harmful device. >> thank you so much. we're going to end it there. just talking about 2019. this is the first year for both of us, susan and i at fox business. thank you for joining us and continuing to join us in 2019. >> today is a special day. it's new year's eve but it's a special day for our producer,

jamie just got exchanged. congratulations. i'm so happy for her. >> a great way to celebrate and thank everybody watching us. have a great happy knew year. >> happy kne new year. wall street celebrating one more rally in the books and the end of the year that couldn't come fast enough for markets. this is bulls and bears, everybody on this very last day of 2018. i'm david asbury. we've already started the party. joining me is heather, jonas and rick. stocks logging their worst year since financial crisis of 2008 driven by fears of a trade war, worries about global growth, concerns about rate hikes and the political chaos of an increasingly dysfunctional political system. when all is said and done,