i'm jamie colby for "strange inheritance." thanks so much watching. and remember -- you can't take it with you. ♪ after suffering at their worst year for many global indices since 2008. stocks look to open sharply. nasdaq features at a hundred 39 points. as you can see there is a loss of 39 cents on the contract.

eleven month low. the cac 40 down almost 2%. stocks in asia all lower. just about 3% overnight. back your home. more on that later on. fbn:am starts right now. the first trading day of 200019. it seems like the new year's hangover.

i hate to be the bearer of bad news. the global stock markets pretty hard this morning. as well as export orders continued to decline. jonathan what a morning. happy new year. it continues to be a bear market although we turn the colander. just look at friday. 150 new two week lows. last year the equity market was exceptionally hurt much

more than ours. as a global economy it's not surprising that week data from china actually is affecting our markets here at home and pretty severely on this first day of the new trading year. the chinese market was down 25% last year. and more signs of that their economy is slowing more than ours. but we might not be realizing how badly their economy is slowing. how bad do you think it really is and is it a worry that it's a global demand story. perhaps in the '90s and early 2000's. they could benefit by diversifying across the country. that typically isn't the case anymore. as is a global interconnected comedy. -- economy. there is no question that their economy really stalled quite dramatically at last year. and it is affecting us here at

home. there's truly no way to escape it. in the sense we take a position in china. we are a bear market were pretty early in the bear market. the average bear market last about a year and a half for only a few months we should expect to see some more bad news not just out of china but probably out of our own markets before it ultimately turns a bull once again. use a manufacturing data of our own today. we also get the jobs report on friday. what you expect from these domestic reports. oftentimes we hear the old saying to buy the rumor sell the fact. what i would like to see and the sounds the sounds a little backwards perhaps is one of these true competition ration days. a massive selloff where

everyone threw in the towel on their equity portfolio. if we saw some bad data early this year. and saw some real negativity. we could hopefully build a base and start moving higher for 2019. >> what with that day look like though. the meltdown that we saw was the low of the market. how low do things get. nasdaq is down 2.1 percent. >> lauren, we've come in the last fourth quarter of 2018. it really isn't what it used to be. they are accustomed to that. for example we closed on a

thousand points. we might not see that yet. the fact is that the week data from china certainly impacting us here at home despite that it's many miles away. thanks for kicking 2019 off with us. there is storms on wall street this morning. and there is likely to be some storms in washington. present trump has now invited top democrats including incoming house leader nancy pelosi to a bipartisan meeting at the white house. the partial government continues. is not clear if anyone that is invited is actually going to attend. president trump treated. that's not where she wanted to start her tenure. there is a? there. they have unveiled we should say two bills to reopen the government but their plan does not include money for the

border wall. they are expected to pass these bills as soon as the new congress convenes tomorrow. all of this has to go through the senate. >> a new message from north korea. he also said he is ready to meet present trump again at any time. the north is sinking sanctions released from the u.s. from growing their economy. he realizes so well that north korea possesses great economic potential. pharmaceutical companies are starting the new year by raising the prices of hundreds of drugs. hey tracy. as of january 1 more than three dozen doug -- drug makers raised their prices.

with increases of almost 10% on more than two dozen products that's according to the wall street journal. in almost a 5% increase on 24 products. it raised prices although not exceeded 23 percent. it's all because of that echo the fax breach. lawmakers from both parties have criticized the facts. but they have put legislation at the top of their agenda for the new year. including a host of security operational and technological improvements since the breach. since credit card reporting companies could be subject to tougher cyber security standards. they like to make it easier for consumers to fix errors on their credit report. >> it makes a lot of sense. is there a concern about a worker shortage in amazon -- in washington.

the contractors in washington dc worried that the recent increase in pentagon spending plus as you said they are hiring 25,000 workers for the new headquarters. will make an existing shortage there even worse. thank you very much. it is the first trading day of 2000 and 19 we should see we've seen a lot of pressure this morning. that was an official government number s&p down 35 and half percent. a loss of more than 2%.

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select welcome back let's get you cut up trading day of 2019. it is a global selloff we are watching this morning. the s&p down 37 and a quarter. nasdaq down hundred 30 percent. we will talk about it in a minute. the family of 48-year-old paul wheel and that is the american detained in russia says he is not a spy.

the twin brother said he is in moscow for a wedding of a fellow marine and he would never knowingly commit a crime. it's aware of the situation but it hasn't been able to see him yet. mitt romney waging a new battle against the president president trump and a washington post op-ed. there's evidence that they have not risen to the mantle of the office. he fires back tweeting that it lacks the ability so sad i wish everyone have the courage donald trump have. president trump endorsed romney's bid for senate. the post said he was proud of that progress we have made in addressing facebook problems. in 2018 they dealt with the cambridge into lytic scandal.

and then at chapultepec customer said he found a nail when he bit into his burrito and it chipped his tooth. aaa said they will be launching a full investigation into what exactly happened. that's what's happening right now. >> and will look quite different from years past. we have all the details. >> $3.2 trillion in tax cuts for american families the federal tax overhaul went into effect a year ago. this over so over the next few months americans well really see how much it saves or cost them. many americans are going to be very pleasantly surprised because their tax bill will be coming down under this new law.

every individual can cut $12,000 of their income instead of itemizing their deductions. we have gotten them jobs like they've never had before. the joint committee on taxation is said nearly 30 million households would benefit from choosing the standard deduction that also means an easier tax return. the irs estimates that the average time to finish an individual tax reform --dash tax return will fall. because of the law about 80% of american households will pay less in taxes. the about 5% will pay more. that's because the law eliminates or curbs several valuable deductions. and for state and local taxes at $10,000. that targets taxpayers in high tax states. if they weren't paying attention to california and new york and really screening

they are going to see why when they go to file their return. democrats had campaigned against the law. and mostly benefits the wealthy. we've seen them work relentlessly to cover up anything to shift the focus from the gop tax scam for the rich. the tax law will add nearly $2 trillion to the national debt over the next decade. the increase in spending especially on entitlements will soon drive federal deficits to more than a trillion dollars per year. in washington rich edson. fox news. >> there down 332 points. and it's about one and half percent from that downside. here in the premarket. will the new year be as tumultuous as the previous year. can they expect a bear market

or is there a reason to be hopeful. we will ask our market gas coming up. it buckles and breaks as dozens ring in the new year. so, they say that ai is the building block of the future. super. but today you're building wind turbines. morning sir. chief, the blade isn't passing quality gate. that's why you work with watson. i detect frictional loss on the midspan. it can detect the tiniest defects from just a few images to help production stay on time and on budget. i optimized the fiberglass finish to reduce frictional loss and maximize airflow. i was also part of the maximizing. for ai that can do more with your data, choose watson. hello. the best ai for the job.

>> we are following a global market selloff overnight for you. as you can see the dow is down 27. more than 2% on the tech heavy nasdaq. we've had two different manufacturing reports on the chinese. it's actually put a lot of pressure on global investors. this is global folks. arizona pounded by a rare snowstorm. nearly a foot of snow falling in some part of the state. it issues a freeze warning through this morning. it is strange to see the amount of snow especially in southern arizona. >> certainly few c inches of snow in southern arizona it is an event. you can see the temperatures where it is cold across the we

are still very cold across portions of texas as well. it is gonna be mainly a rain event across portions of the gulf coast. over parts of texas. arizona and new mexico as the next southern system moves in. here is the future radar. still getting the snow across there. we have the mixing across central texas even parts of north texas into oklahoma. the winter weather advisories today. travel will be next to impossible. stay off the roadways. and then the system will move eastward across the gulf coast even parts of the southeast where it will be a trill -- a chilly rain. you can see the cold air

across portions of the southwest into texas over the next couple of days. ladies, back to you. >> we are looking of course at what has i what has become a global market selloff overnight as markets around the world are nasdaq out 127. the manufacturing data coming out of china. the official read in contraction territory. we haven't seen that in over two years in china. nancy pelosi said she's ready to pass a funny -- a money package without the border wall.

the president is not asking for too much. and we are to gonna put on the table some ideas that have been embraced in the past. the question is can we stop hating each other enough appear to find a way forward that would be a win-win. democrats even show up today. the major airline that just cleared a cookbook for take off. takeoff. you're watching fbn:am. great news, liberty mutual customizes-

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worries about a shrinking chinese economy spot sparking a global chinese stock market. we are on track for a sharply open. commodities down to. oil getting hit by worries about a slowing global economy. less glowing and demand. yield on the treasury falling to an 11 month low. investors seem to be looking again for the safety in the bond market. in europe guess what everything in the red. the worst performer here is the paris market. it's down almost 2%. a big story. all of the markets that are open are lower. is down nearly 3% again. that manufacturing data out of china as a big story there.

president trump inviting democratic leaders to the white house to try to end the government shutdown now and day 12. fbn:am continues right now. -- >> we are coming up on 5:30 a.m. here in new york. it's wednesday, january 2, good morning. happy new year. >> think you for joining us. it is a tough way to start it. we are starting right now with a massive selloff that has really hit global markets. 2019 is a tough place to pick up where 2018 ended. a poor start to the new year. if we open like this pretty rough numbers here. s&p down 30 and half. let's bring in gary smith.

this contraption. is this just one little reason. is it because everybody is back from the holidays and they're just feeling a negative about the markets overall what you see as the underlying cause is a selloff. you mentioned kind of the one reason i think the problem cheryl is it's tough to go through a day without one of these reasons popping up. of course you have china. if the tariffs that have not been resolved. it used to be minor. if things like brexit, you have the fed interest rates. i just read this morning the new congress is going to convene 12 separate oversight committees regarding trump.

it's a lot of headwinds. and that's what i think of the market. they can pick one every single day and open up. >> there has been a lot of talk if there's can be a recession in the u.s. this year. if you look at the debate we've head. did the markets are they pushing the economy into the s recession. or is the economy pushing the markets down. i think the debate is still kinda prevalent this morning. >> it have to say on the positive the bones of the economy are in good shape. we have low unemployment. we have corporate profits continue to rise.

what you mentioned is the market pushing us into a recession. with 50% of the people in the u.s. invested in the market. there is certainly a wealth effect. i have seen it here in florida on the higher priced homes with the retail is starting to slow. not because they don't have the money most around here are retired but because they feel less wealthy. so they spend less. you have that domino effect. i'm as curious as you. the only thing we have going for us is rare to have two consecutive down years in the market. >> i can't help but wonder if the president gets a win with the chinese on the trade war and he can end could end it by march 1. is that something that would take them substantially higher. maybe that would take away a lot of the concerns.

any one of the things that i mentioned from the government shutdown to the tariffs in any bit of good news is gonna send this market up. even if they came through and said you know what, we are right where we should be on raising interest rates. we will hold past. even for a day or so i think that would send the market up a few hundred points. thanks gary. tech stocks tumble. the apple stock lost almost 7%. the first loss on an annual basis in three years. take a look apple shares are still down. they're down another 2.1 percent. dan, good morning. what is the major problem for apple?

it continues to be china in terms of demand and what you're seeing. especially the iphone ten has been disappointing. the iphone cycle continues to be disappointing. i think that has really been overhang in the stock. and until we start to see demand trends in proof as something and that will be an uphill battle for the next few months. the 10r was the cheaper of the iphones. do you expect a major redesign for the iphone in 2019. i think more a focus for this year is good to be on the software or services side. that's really good to be the key going forward. i think that's where we will see price cuts particularly in terms of the open designs.

we need to stimulate them specifically in china. it's deftly been a lack luster cycle and that's what's been weighing on the stock along with china. before we move on to the china headwinds. is this demand problem just an apple problem or is this a larger smartphone problem. just in terms of overall maturity. you've seen that cross for samson as well as others. obviously apple has seen that. it. in terms of upgrades. every call at 33 months. >> getting back to the china trade dispute. we are now learning that the apple supplier is moving some of their production out of china and india what you make of that?

>> what you're starting to see is just more and more pressure for apple in light of what is happening in china. i think you're only get to see a small amount on the high end iphones. i think that is why if you get any sort of resolution on china that is the court factory on iphone. we don't really see any major changes there although the india issue is sort of they are hedging their bets in terms of where some of these production things are going to take place. microsoft is now a bigger stock than apple. that shows you how far they have come down. it's one of how far apple has come down especially over the last year. look at how exposed they are to cloud.

and it just shows that continues to be a rock of gibraltar. >> microsoft is down about 2% this morning also. the nasdaq is getting hit really hard. we appreciate you. >> as the sector. now they are looking to cut back on their popular rewards program. tracy carrasco joins us now with more on that. >> we could use some good news and during the segment. they previously calculated that the giant credit card rewards would make consumers spend more money. and then boosting the returns. they are finding that they are wrong. they are making some changes because of the banks that faced increasing crop cost. a great average of 15%. from a year earlier. at bank of america.

we teased this earlier. would you eat airline food at home. they were selling the polaris cookbook. forty recipes inspired by that business and first class dining. as a nonprofit that offers culinary arts education program and is associated with many famous chefs around the world. you can buy it from united's online shop. did not even know they have an online shop. a new oreo is on its way. be on the lookout for this new decadent dark chocolate oil aureus. they will hit stores today and

these will not be a limited addition treat. but part of the permanent oreo lineup. this was a positive story. let's take a look at futures this morning. the dow and s&p down 1%. the sell off at least for the tech stock. in sports at the rose bowl. it was the ohio state buckeyes the bulls versus the bulldogs.

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happy new year we have a sell off on our hands. take a look at the nasdaq. it is falling 2.4% this morning. it's down one and half% each. we have numbers out of china they had manufacturing index that is affecting global stocks. the biggest date for college football. and jarrod max is here with sports. in january 1. did not disappoint. the national championship will be coming on monday. the biggest day of the year in college football. that is what january 1 is all about. yesterday did not disappoint. the pregame meet and greet.

against the fifth ranked georgia. it looks like one time georgia legend scrambling. twenty-seven texas early. and then they would make the claim. it's all long harms the final game and they jump in front. 213 on washington. just before halftime. urban meyer set to retire to focus on his health. they began to howl at the fourth quarter. the ohio state buckeyes all they need to recover. in urban and urban meyer goes out when her. for the knights of central florida. twenty-five straight game.

joe burrow borough for touchdowns. 394 yards the streak is over. forty-32. teams who are interested in the nfl. he is going to agree to a contract extension with oklahoma. in and keeping with college football. the winter classic. the original six. they when the scheme four-two. they ran out of beer, food midway in the game. hopefully better next or at the at the cotton bowl in dallas. once again we are following a global market selloff.

we are seeing a little bit of an escalation we are looking at a 400-point loss on s&p. more than two and a quarter% right now. kanye west took a break from politics and now he's back. it's all coming up next on fbn:am.

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let's get caught up on what's happening now. a selloff from east to west. they were down 374. in an 11 month low. they are saying today that china reserves the right to use force to bring taiwan under its control. china seeks to achieve a peaceful reunification. the comments come on the 40th anniversary of the landmark policy statement.

video on russian television shows a bridge packed with people collapsing. during the countdown to new year's day. thirteen were injured. fortunately none suffered severe injuries. it has removed an episode of a comedy show. they requested it be taken down. they were struggling to explain that. the episode of patriot act. the american born muslim. about the killing of that washington post columnist. just not in saudi arabia. and then kanye west wants

everyone to know he still loves president trump. praising his make america again hat. trump all day. you know where i stand. love everyone and start the year clean. the messages from 2019 if you cared. let's stay with president trump. he is ramping up pressure on democrats to end the shutdown. democrats are not willing to say at this point if they're going to attend. he is ready to deal. >> i'm ready, willing and able. i'm ready to go. they can come over right now. they can come over anytime. i spent christmas in the white house. i'm here.

>> the deal for more of us. phil, there is a great piece this morning from the editorial board of the journal and they said here is the way to get out of the shutdown. you have to compromise now. but is he willing to do that? a face-to-face meeting does not mean a compromise. we have seen this play out before. you've been incredibly nervous they now what can happen at any moment. they turned the last meeting into an apprentice rerun where he was polarizing the debate and framing it to his own advantage. he is at ability to do it again. a lot of democratic staffers and operatives see this not as a negotiation but another stunt for him to frame the debate to his own advantage. i'd be surprised at this meeting does go forward because if it's on television again i don't think anything substantial will happen.

the travel schedules as well as if they are willing to show up. i'm sure they are going to have that confirmed. if this point if he's willing to make a deal on dreamers in exchange for them that would be a compromise for both sides. he you have to have a compromise. considering that they are losing the house this week. if you thing about the deal. this is the sort of thing we saw earlier in 2018. he was okay extending protections for those dreamers if he could get $25 billion in funding for those border security.

and this is why i think the shutdown is a mellow drama. we are talking about $5 billion here which is just a fraction of what was originally requested. i think it's about politics and semantics both sides want to get some sort of when they can take back to their base ahead of 2020 but eventually in the end there has to be some compromise somewhere. if they come back and say we will not give you money for that border wall and then you have these dreamers and children brought here as illegals when they were kids and now they are adults. that can hurt the democrats i would think. what is happening here. with president trump we have

them repeating the claim yesterday. they're not willing to take any of the two bills to reopen the government. i don't think that is just talk from the administration. these are backed up by mitch mcconnell in the senate. mitch mcconnell doesn't blink that often. >> a lot of coverage. thank you so much for being here. investors might be blinking this morning when they see what stocks are doing. you don't expect this on the first day of the new year. but nonetheless we have it. we will get reactions when we return. unlock savings when you add select hotels to your existing trip. only with expedia.

gary b smith. good morning again. thank you for sticking with us. the first two trading days of the new year are technically

part of the cena cost rally. it's really not a good start. my advice for 99 percent of the people out there is look at the news today and then quickly turn to the sports or entertainment section and focus on what your goals are. the only people that should be worried or thinking about today's action. hopefully that is almost no one out there. but it is an indicator. as january goes oftentimes so goes the rest of the year. january is up about 60% of the time in the stock market. they often time as the lead to the stronger gear we have not seen it so far this year. it is starting very much the way it ended. this is a bear market.

the average one last about a year and a half long. where is the pedialyte. where is the pedialyte for the markets. the laundry list of things. to china tariffs. any bit of good news in any one of those things. at they signaled they were standing down or there was only going to be one hike this year. if the manufacturing sector is connecting so badly. at the really starting to build that pain. that only increases the debt problem in china. so china is so bad. could that be seen as a

positive. i think it would be a major benefit for the market despite some of the difficulties in the chinese economy. often in tweets that the china trade where was getting resolved. american consumers paid about $50 billion in tariffs in 2018. that is no question wayne and on a lot of investors and the ceo pocketbook. i think any resolution to that. they could ideally provide that to begin a rally in 2019. we haven't seen it yet however. >> ubs says nearly half have the best investment opportunity.

we are still at the head in capitalism and wealth creation and new ideas other countries emerge. i think most people know our economy the best. this is where i continue to put my money. volatility will be the name of the game in 2019. you need to sell down to the preaching points. as you said. this year is going to be very much volatile. thank you as always. let's say good morning to in for maria bartiromo, wednesday january 2nd, first trading day of the new year, we

have top stories at 6:00 a.m. eastern. rocky tart to 2019 for your stock market. futures are pointing to major selloff at the open at 321-point 10 years like we saw weakness like last year. the new report shows signs of contraction in china in manufacturing for the first time since may 2017. the news sending the yield on the 10-year treasury to lowest level in nearly a year, 2.66% is your 10-year yield right now. i will point out that the low of last year was 2.44%. so, again, still off the lows hit early last year. this coming after a tough year

for investors, worst year in for all three major market gauges. s&p was hardest hit of those 3, down 6%, the nasdaq off nearly 4%. checking global market action this morning, we have a selloff in europe to report although shallow selling in germany on the dax there off one-third of 1%. nikkei in japan closed for holiday. hang seng was down almost 3%. the shutdown showdown heads to the white house. president trump has invited congressional leaders to meet today as both sides remain far from making a deal. we have deal with democrats' plan and whether that has any shot with the president giving it a thumbs