will this drag other tech companies with it that tends to happen so it could be a rough start to the day tomorrow on the dow but right now after-hours apple down 7%. >> susan: index heavy, there you go that does it for both, bulls & bears starts right now. david: we have breaking news on apple that's just coming out right now, ceo tim cook warning investors that holiday sales quarter was a big miss in particular, lower than expected iphone revenue, primarily from china. shares of apple are plunging after-hours as well as the overall shares of nasdac and tech stocks, it's going to be an ugly day tomorrow let's get a preview oil davis adjoining me liz peek, john layfield, robert wolf what do you think is going on here? >> they mentioned iphone upgrades was lackluster in emerging markets and they even mentioned china didn't see the sales they were expecting. i know we're going to talk a little about the china manufacturing numbers slowed down today. listen, it feels like there's a

slowing of global growth and it's going to impact the global company like apple, and tomorrows going to be a bad day. david: tomorrow is going to be ugly. liz? >> they specifically mentioned though that in developed countries there was not the upgrading they expected i mean one of apple's great strengths has been that if you own apple iphone and they come out with a new one you'll immediately upgrade to that and there's a replacement cycle and it isn't working and my view has been they're not offering enough in terms of incremental technology and features for the price increase and i think that's beginning to hurt them. >> yeah, look, i agree with liz i think there's the problem apple has is that the iphone sales are going to slow there are $36 billion in the last quarter but services were 10 billion so apple is becoming a service company because of what this exactly what liz is talking about, services are scheduled to go from 10 billion to 50 billion in the next two years. that's more than going to make up for the iphone sales but until you get to that point when you see these iphone sales dip the whole company will dip.

>> yeah, i agree with john. this is a company that is caught in the transition from it used to be look its been a commodity company since the inception and you know, commodities are like drugs. once the generics come in you lose your pricing power and that's what's happened with the iphone. it's no longer the must-have, you must replace et cetera et cetera but to john's point, they're in this transition where the things like the apple pay, the apple music, the cloud are eventually going to become the apple we know today. at least that's what apple hopes if the stock really tanks tomorrow, i'd almost consider buying it. if you're willing to hold it for the long term this could be the optimal time as it makes that transition. the services is priced into it. >> i think to gary's point, it is and will be a core holding for many. the stocks already down over 40%

over the last year and so today, when it moves down 10% people are saying we're going to be north of 50% off the highs, are they still not one of the best companies? david: well is 6.75 per p per enough to get you in there? >> well i think the high was 245 so you're talking about near 50% off the highs. >> i think the question is when you look at the evaluation gary is rightist moving to the services as being more important to the businesses but they're not as dominant in those services as they used to be in gadgets. everybody had to have an iphone. everyone had to have an ipod, ipad, et cetera. the problem is there are other people in cloud storage and other people in tunes and so forth, so i just think there's, i think yes, it's a great company, it's not selling at a huge multiple, but i think you have to kind of just step back and let this play out. the other thing that remember, they stopped reporting the unit sales of iphones. i thought that was a her

horrendous signal that in fact the unit sales weren't coming through. >> yeah, wu you look at apple's global audience and you have 1.3 billion people that have some type of apple device. that's all you need one of the biggest audiences in history. only facebook can say anything bigger than what apple has right now. the problem with apple right now it is a screaming buy in my opinion i own apple right now, in my opinion if this trade war does notice kanye west late because if the trade war escalates the global supply chain and agent gets almost destroyed it causes all kinds of problems so you have something in apple that the market cannot control at all because you don't know what happens in a couple months when these tariffs are supposed to go to 25%. >> well you know, david ursino bring up an interesting point, i think both you and bob davis about tomorrow is going to be an ugly day, sometimes that works out sometimes it doesn't and it remains to be seen but let's just stipulate tomorrow is an ugly day. i'd have to say this is the sell-off would almost be apple-

specific. what the heck does this have to do with amazon or netflix or google? david: well i'll tell you what it has to do is the fact this might be more about what's happening in china and the whole world economy than it is about apple. i mean, there is a slow down going on we'll talk more about it coming up but that to what extent is that apple's problem rather than something to apple? >> well i guess my counterpoint is, you know, i kind of stated in the beginning. this is a company that is now selling a commodity and it doesn't have the pricing power nor the monopoly power to command it. that's a completely different story than amazon or google. companies that are really almost an entirely different business so as tech gets taken down i think you've got to take a look at these other companies and say is that apple even if it's a china problem how does that affect amazon or google for example? i think it might be time to buy some of these tech stocks if they're really down pretty good tomorrow. there's been a lot of

dislocations this past year on the fang stocks so they're not all going up. >> exactly. >> i would just say to gary's point, it's not where the fang stocks plus tesla was all one direction today they're differentiating each other and apple has been hurt near the most. >> and incredibly different companies facebook had their ups and downs and had some downs but that's nothing to do with amazon to gary's point these are very differentiated companies that happen to trade as a block last year when people wanted easy access into the market this was the leadership of the market look that's changed i don't think there's any question. david: although i am wondering if it's true that the ever- present all the apple products are everywhere but these upgrades you and i were talking about that the upgrades a lot of people wondering whether it's worth it and they're depending on upgrades. >> i was in the store yesterday they were going to offer me a couple hundred for my phone to go to the x and i think it would have added face recognition. i mean -- david: it's just not worth it.

>> you don't need that. >> my fingerprint is good enough and nobody needs to see more of my face anyway so there you go. david: would you guys pay more for face recognition? >> well you know, it's kind of it reminds me of back when i was growing up, people got new cars every few years, one they wore out but two, the technology was changing so quickly, now people are like, you know, yeah i have my 2002 mercedes. you know, what really is going to change that much? it has great technology and all that stuff and they keep it for 10-15 years. we're just talking about this iphone. do i need the extra bell and whistle? david: gary b., i'm looking down at my iphone i can't remember the number it's definitely not an 8 i think it's a 6 and -- >> david, it's an iphone 1. david: [laughter] it's not a 1. >> but gary b., this has been going on since the 1980s. microsoft came along and said software is what's so important.

apple came along and changed that paradigm completely so hardware is where it is. well now you're seeing that shift back and that is a transition that apple is going through right now and if you believe in their service business and this 1.3 billion people that do have apple products then you'll buy into that idea. david: by the way you can see on the screen it's now down 7% after-hours. now keep in mind before the market opened today, the market was expected to be down 350 points. it did go down 350 but it ended positive. a small gain today but it was a big reversal that happened in the market today, so this may not play out. >> because things, because stocks are cheap. because you have a pretty good sell-off. david: and apple maybe cheap. >> of course there may be people and they say i've been waiting for this opportunity and want to buy the stock but i do think the character of this company has changed and it cannot be viewed after all in phones, by the way folks, they are not always the leader. samsung is bringing out a lot of new gadgetry on their phones

that apple doesn't have. i find that kind of shocking. david: well remember it was always style with apple. the thing about steve jobs is he didn't really create new stuff, what he did was put stuff together in the stylish way that nobody else could match, so it's not so much the technology that led to their predominance it was the way they looked right? >> well you bring up a great point david. it's kind of like a lot of these trendy retailers. one year it's the gap, then the next year they fall out of favor it's abercrombie & fitch and i think that's part of what happened to apple. it was trendy. people bought it because it was apple. and now competitors are cool. >> listen if there's an oligopo ly in this world between samsung and apple having one of the two is a good thing. at the end of the day people are going to want cell phones and want the watches i think to john 's point, they are going to want to make sure they have the newest technology in software

over time. i just think today it doesn't feel as sexy. david: we've got a tech expert on the line with us, dave maney, familiar to a lot of fox business viewers. dave thanks for making yourself available. what do you think of the news? >> i think it's in some ways less surprising than its made out to be. innovation and the technology world tends to be a step function, not a continuous one and so you get, that means it happens and fits and starts, and nowhere has that been more apparent over the last decade than in the mobile phone business, in the smartphone business. i mean, i was just talking with the other day with somebody about the great fall of blackberry right? because they missed out on one of those step function innovations and away they went and they've reached a point now as we do in almost all tech products where the step functions are either smaller or the steps are virtually non- existent and so the idea

that there's a sexy product tomorrow, or six months from now that's going to again kind of inject turbo power into the company's sales is overly optimistic at best. david: let me just ask are you suggesting that what happened to blackberry could happen to apple >> do i think it could happen? sure i think it could happen. i think they're a lot better prepared and more diversified across the spectrum, but the nature of the technology business, you know, disruption doesn't just happen to people outside the technology industry. it happens to companies inside of it as well. it's a high-risk high reward business. >> so david, it seems as though people either own samsung phones or apple and most people think it's just too much trouble to switch, which kind of guarantees they've got a market for eventual upgrades but it seems like that upgrade gets elongated unless they can really bring new hot stuff on to each new addition and that i think that

seems to me to be what's happening. is that your view or am i wrong? >> no, no, i think you're totally right and by the way i'm talking to you on an lg phone, because to me, it has largely begun with the commodities so i'm linked into the google echosystem through android and all of the parts of it, but yes, so apple has some kind of grip on its customers but the idea that a, the idea that you can't upend the platform at all go talk to my friend at blackberry and ask him what he thinks or used to be at blackberry and b, you know, exactly what you said. is it powerful enough to keep me on the treadmill of upgrade at the pace that the company and the street would like it to be and the answer is probably not. >> but david isn't all of this about steve jobs? i mean you talk about the disruption and innovation and i completely agree with you but there's only one steve jobs. maybe elon musk might be compar

able to that maybe tomorrow as edison but you don't have a guy like steve jobs creating something completely new like ipad that everybody has to have and tim cook while a brilliant ceo running the most profitable company in the history of the world there's not an innovator there like steve jobs so this seems to be a predicated outcome that eventually this has to slow. >> there's an element of truth to that and the other piece that's an important part of that is what was happening to the technology cycles broadly underneath that because as you guys know there was an era where steve jobs was no good for apple right? where he got fired by the board, so there were moments where the technology soup, where the soup of technology was ready for the god of jobs to come in and sort of knit the elements together, and then there were other moment s when conditions weren't right and so i'm guessing right now in the smartphone world,

it's not now. not now it's not going to happen >> dave it's robert thanks for coming on on short notice. we're down, you know, 50% over the last year on this stock. is that, do you feel it's a buy time here even though innovation may be slow just because their revenues are still so significant? >> you know, i'm not nearly as smart as any of you guys about the market itself about the stocks and how the street views the companies. here is what i would tell you. the long term picture is, you know, this is a gigantic reengineering of our entire economy powered by devices, and information that flows out of devices like apple makes and the way they participate in it. so, you know, are we, have we reached the end of that innovation? no i think we're 20% along that way but who the winners and losers are in and among it and that's why they pay you guys the big bucks. david: by the way, dave you

mentioned the time when steve jobs lost his job. of course he came roaring back after the people that tried to follow him could not match his success, and then apple took off , so i'm just i don't want to wish any harm on tim cook but do you suppose that if things continue to go down as they look like they're going down now, somebody could say maybe we need some new eyes and new innovation at the top of apple? >> yeah, i mean it always takes them a couple years too long to figure that out, right? the guy they hired as you guys all remember, john scully, if i'm not mistaking was a pepsico marketing executive and that was the skillset that 10 smart board members decided they needed and will they get it right? not very likely. i mean, the number of companies, here is the interesting thing about apple. the number of companies that are purpose-built for one technological or economic era that survive and dominate the

next one is so small, apple is an example that came in during the, you know, the first pc era and dominated and then fell apart and then came back in a later year. if you look at the chances of that happening a third time probably not so great. >> dave, do you see any new apples on the horizon? this is the area you're a lot closer than we are. any up and comers that we should be thinking about? >> well do you know what? i think that the cutting edge of information is not at the moment , you know, device-based right? around its application-based but the answer is is there a next platform. i think that it's much more likely that it gets sort of torn apart by the ankle biters of the lg's of the world who are producing, they're not really innovating but they're producing

less expensive, interesting good stuff. i think it's death by a thousand cuts. david: dave maney, great to talk to you thanks so much for making yourself available to us we appreciate it dave. >> you bet guys talk to you soon. david: president trump just wrapping a meeting behind closed doors with top lawmakers of both parties at the white house as the government shuts down, enter s its 12th day congressional leaders just speaking to the media. have they made any progress at all? we're live on capitol hill coming up next. i can do more to lower my a1c. because my body can still make its own insulin. i take trulicity once a week to activate my body to release its own insulin, like it's supposed to. trulicity is not insulin. it works 24/7. it comes in an easy-to-use pen.

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david: another look at probably the biggest story market story anyway we'll be talking about tomorrow which is apple, they have revealed to investors their sales are slowing down significantly particularly because of what's happening in china. we're going to talk about overall what's happening in china coming up later but you

can see after-hours the stock is down 7%, it should be an ugly beginning at least to the day, but there might be some buyers who jump in you never know. meanwhile president trump just wrapping a meeting behind closed doors with top lawmakers of both parties at the white house as a government shutdown enters its 12th day lawmakers taking to the mics after meeting with president trump and homeland security at the white house. here is the takeaway from both sides take a listen. >> i was a little disappointed with i would say some on the other side. once the secretary started the senator schumer interrupted her, they really didn't want to hear it and they challenged some of the points the secretary made. we're hopeful that we could get more of the negotiation. >> why don't you accept what you have already done to open up government and that enables us to have 30 days to negotiate the border security.

david: let's go to senior capitol hill producer chad pergu m. you heard from both sides and then the president earlier. doesn't seem like there's much room for compromise. in fact the president came up with a slightly higher than $5 billion figure. he mentioned 5.6 billion so if anything he's going the opposite direction. >> absolutely nothing has moved on this story. in fact almost nothing has moved on this story since the saturday before christmas. they are precisely without exception of what you said about the president almost in the same spots they were before everyone went home for the holidays. this is a problem. nobody really thought we were going to have any action out of this meeting. the only difference was is that nancy pelosi is less than 24 hours away from becoming the new speaker of the house. there will be two votes in the house of representatives the new democratic house tomorrow afternoon, probably right about now, one to open six parts to the federal government there are seven outstanding spending bills and that would, these would be new spending bills for those six sections, and then do a temporary interim bill to fund the department of homeland

security through february 8. i should note that already, the senate has approved those six bills in some form, either in committee, or on the senate floor and democrats will turn around and say wait a minute you already approved these why can't we at least open up those portions of the government. nothing will happen until these new house democrats who take the oath of office tomorrow afternoon have had their say and had an opportunity to rebut president trump particularly on new money for the border wall, david. david: john? >> john layfield here like they are arguing over nomenclature they both agree on border security one side refuses to call a wall the other side says they have to call it a wall. it doesn't land itself to an off ramp once the odds to a continuing resolution and the house passed in the senate go to the presidents desk and then he has to own it with a veto. >> well you'd have to get this through the senate. now mitch mcconnell, the senate majority leader he has contended there's not going to be another

vote on any bill that the president won't sign. now this is kind of the deal he forged without going republican tennessee senator bob corker is not in the senate as of noon tomorrow so one wonders if he might be able to come off that deal but we've been told he would stick to that promise the next vote in the senate would be on a bill the president cosign and so far there's nothing on the horizon that looks like that >> chad, liz peek here. it seems to me that $5 billion is not a very high price to get the daca agreement done, and the whole country, thinks these dreamers so-called, should be allowed to stay in the country, president trump has said that. that's sort of the offer on the table. at some point will the hispanic caucus stand up and say yes, this is important to us and it's worth it to get this done. >> this is something that nancy pelosi has to take the temperature of on her caucus. she doesn't really know beyond those two votes tomorrow where everybody stands and in other words you could start to see some public opinion polls come out, you know everybody is back from the holidays and you start

to get very accurate polling on whose being blamed or if the government shutdown stretches into late next week or past that next government pay period that's when this really ramps up maybe the middle of the month and lindsay graham the republican senator from south carolina was at the white house a couple days ago indicated the president might be willing to reach a daca agreement. i'd asked nancy pelosi several weeks ago, this is kind of the definitive answer i said why not trade daca for some border wall funding and she poo-ppp' d that immediately so something would have to change so once we get the temperature of what the democrats in the house of representatives you mentioned the chc, what they're willing to go for then maybe in a week or two and as the pressure ramps up on capitol hill then you'll start to see other issues maybe emerge. david: chad so far one thing that's not pressure is the stock market. the stock market since the shutdown the dow jones industrial is up 3.5%, s&p up 3.5%, nasdac is up over 5% since

the shutdown, markets have been doing great so that takes some of the pressure i would think off the president, doesn't it? >> well if you start to see a market plunge that people can connect directly to this during the holidays people weren't paying close attention. it didn't affect people but when you start getting into maritime licenses and farm loans and all these other thins that the federal government does, and if you have 800,000 to almost 1 million people not getting paid that is going to start to impact, you know, productivity and gdp down the road especially if it's a long one. i spoke with one senior republican congressman earlier this afternoon who said we're on track for the longest government shutdown in history, and that might be a point where the market starts to take note and then that brings everybody to the table if there's a drop. >> chad, i would agree with the congressman who you spoke to, because the longest to date is 21 days. i think this will surpass that 21 day. right now the democrats whether we like it or not they believe that they have the narrative of

calling it the trump shutdown because president trump called it the trump shutdown in the original meeting they will stay with that narrative. you know the democrats have shifted more left with 40 new seats, starting tomorrow, so they believe that the voters voted and they didn't believe that this wall is where they wanted to go whether they're right or wrong time will tell but i think for the foreseeable future we don't have anything that's going to move this to a bipartisan agreement. >> there are some who argue that maybe tomorrow in that vote there might be a few house republicans who would vote to reopen the government and one point i might slightly have with you is yes there were a hard left liberals elected in the house but a lot of the seats they flip the blue dogs the moderate group of democrats in the house of representatives grew the biggest they've had in some years now and those members , they're kind of tried to be problem solvers they can't be too far left, too far right and they're the group that will start to feel that extra pressure and they might go to

nancy pelosi or chuck schumer or the president and say can we work out something at the end of the day. i will say this, and this might be the most important factor of all. and i've said this before, harold mcmillan, the former british prime minister said the most important factor in politic s were events. we could have an unrelated event that will get everybody to sober up and say let's come back to the negotiating table and fix this. it could be a security crisis, it could be say 50 kids at the border it could be an issue with north korea. in 2013 one of the things that got everybody back to the shutdown over obamacare that went on for 2.5 weeks was the shootout and car chase with u.s. capitol police officers. many members said we're not getting paid or the officers weren't and here they were putting their lives on the line, so events, some sort of events. david: well it was the killing of that police officer in california that might push the democrats towards making some kind of deal. chad we've got to leave it at that a lot of breaking news thank you very much for being with us. president trump says the stock

markets worst month since 1931 was just a glitch. is he right? could a solid china deal on trade get us back on track? and as we go to break here is another look at what is happening to apple. it is going down further after-hours. no telling whether it'll stick to this by the end of the trading day tomorrow but the beginning is going to be something to behold. stay with us. (engaging uptempo music)

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president trump: a little glitch in the stock market last month but it's still up i guess around 30% from the time i got elected and it's going to go up once we settle trade issues and once a couple of other things happen it's going to go up. its got a long way to go, tremendous amount to go. david: president trump calling last months big sell-off a glitch. the president says once trade deals land, things will begin to settle down but is this true especially as china's weakening economy continues to rattle markets what do you think? >> david, i think it is. i think there's going to be a trade deal donald here is why. first of all before we hit the panic button on china remember this economy is still growing at over 6% per year. we're doing gangbusters and we're about 3.5%, so let's not think of china as, you know, about to enter the great

depression of like we had in the 20s. second of all, we are about their exports are about 20% of their economy. we're about 20% of those exports so we're about 4% of their economy. why is china going to do a deal? it would be a kin to if someone came to the u.s. and said we're closing down the auto industry. that's how big apart we are of their economy. they're going to get a deal done it's in everyone's best interest , trump has to look good china has to look good and it gets worked out in the next few weeks. >> i certainly hope there's a deal that gets done. i'm not as optimistic as gary but maybe i'm just cynical that we've been hearing about a deal for a lifetime and there hasn't been one yet i think intellectual property is still the problem that we can't overcome that easily. that being said i would also respectfully disagree with the president that the market downturns a glitch. it's down for the year 7%. if you annualize his 30% that

means he's at 15% per year for the last two years. that would put him, you know, way below clinton and obama so i would not say that things are glitched. that's a big market move. >> i think that i'm not as optimistic as gary about an immediate deal on china because i think the representatives from the united states like lighthizer really think we have china in a corner and i think they feel this is an excellent time with their manufacturing sector showing signs of slowing down, workers not getting paid in china, increased unrest, some pushback against president xi by his own cabinet in recent weeks. these are things that no one expected to happen. he can't allow it to happen. this is a time to go for the jugular excuse the expression, and i think that's what they're going to do at this meeting. i think the market will not like it but i think maybe there will be an extension of 60 days maybe another 90 days where they continue to talk i don't think there will be a deal right away.

>> liz i think that's the reason this deal will not get made. >> exactly. >> we believe we're holding all of the cards. chain a thinks they're holding all the cards too. they looked last year and they said the u.s. is politically as divided as they ever seen it. you lose the mid-terms, the house did from the president, and china thinks that validates what the they were thinking to begin with. they think they are coming with a winning hand, we think they are coming through with a winning hand that doesn't give much wiggle room. i don't think the deal gets done but to gary b.'s point we're not falling off a cliff. we're slowing down to 2% gdp growth that's still not bad, slowing to about 7.8% is the estimate from corporate earnings from 23%. david: also i would just say one thing about gary b.'s point. i don't trust the 6% figure. i don't trust anything coming out of china so they may be in negative territory. it's a possibility that they're in negative territory right now because you don't know it's a communist country. the good thing is let's end on a positive note. if there is a trade deal, the

whole world is going to be swamp ed with chinese goods, cheap chinese goods like we've never seen before and that is the death now for inflation. that means the fed won't have any interest in rising interest rates right? >> david that's the best case scenario. the worst case is a 10-20%? david: worst case is the death of everybody. it isn't going to be the end of all economies. >> we've got real problems in this club. david: i look on the positive though. last word. >> quick rebuttal. i have never seen a group of negative nellies in my life. david: i gave you positive information. i gave you a positive outcome. >> robert thinks we're in depression for crying outloud and everyone else thinks the deal is never going to get done. the sun does come out at times. >> i didn't think i said anything near depression but i'll let you get that last laugh in. >> thank you. well really technically you didn't let me get the last word. david: quickly quickly quickly.

listen steve moore will tell you they were expecting 5-6% after the tax cut. now you guys all talking -- david: it's still a lot better than it was during the obama administration. >> that's not accurate. david: it sure is we have more jobs than ever before but i have the last word folks because we've run out of time. new year, drug prices going way up, will this get more amunition to politicians who want socialized medicine the big debate is coming up and apple is down 7% after-hours if it stays at this level the stock will shave 75-80 points off the dow tomorrow going to be a big day stay with us. the fact is, americans move more than anyone else in the world. on average, we'll live in eleven homes. and every time we move, things change. apartments become houses, cars become mini vans. as we upgrade and downsize,

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david: take another look at apple it's going to be a huge mover tomorrow now down more than 7% close to 7.5%. well drug manufactures ringing in the new year by hiking prices on hundreds of prescription drugs. one drug going up as much as 133 % most of them are much less than that but still, it's going to hurt consumers. to gerri willis now with details gerri: hi david that's right president trump saying today he still expects tremendous price decreases, even as the new report shows drug companies raising prices on hundreds of medicines by an average of 6.3%. now, here is the president from earlier today. president trump: alex whose been doing a fantastic job getting drug prices down we're almost ready to make that big final push and i think you'll see a tremendous reduction in drug

prices. gerri: now the analysis by rx solutions shows drugmaker all ergan with increases of nearly 10% on more than two dozen drugs, three dozen other drugmakers raising prices on hundreds of medicines, the president has called on pharmaceutical companies to cut prices and the department of health and human services proposed policies which you heard the president talk about today, but price hikes abound. allergan raised the price of 51 drugs by about 9.5% and another 24 meds by about 4.9% the changes impact about half of the companies drug offerings, including namenda an alzheimers drug and restasis, a dry eye treatment and they told fox business this. allergan does not expect to have any net benefit as higher rebate and discounts paid to farms insurers fully offset the list price increases.

allergan ceo announced in 2016 the company would limit itself to one price hike a year and keep those increases under 10%. david? >> well gerri thank you, david i guess i'm up here. i would respectfully say that the president is tremendously wrong. the idea that drug prices has gone down. they have not gone down. the rate of inflation in healthcare has gone up and drug price has gone up. i wish that these companies would have taken some of their tax cuts and instead of doing all these stock buybacks, which really has not worked out well, and reduced prices so the consumer is not paying so much, that's probably not the most capitalistic view but drug prices really bug me. >> gerri question it's liz peek it seems as though there's been a lot of talk about how these price increases really never get to the consumer, because of all of the rebate to the pharmacy benefit managers.

what is your data on that or insight there? gerri: i've been talking to people all afternoon about this because that's the point of view of the drugmakers, right? consumers never see it. not necessarily true particularly at this point of the year, where people are actually paying deductibles right? you've got to pay a certain amount before your own health insurance coverage kicks in. people are paying the full freight right now and prices in some categories have gone up so much, for example, with insulin which is up 200% in the last five years alone. get this, some individuals are trying to make their own insulin because it's so expensive. so big impacts on consumers here >> john layfield here. i want to ask you the lobbyist in dc, they pretty much own this congress i just don't see anything that could happen. i disagree with the president interfering from general motors to amazon to any of the drug companies as well but it seems to me with the lobbyists that own our congress bought and paid for nothing will get done on

this. gerri: except that the democrats say they are going to do something right? on this issue in particular, they wave this as a banner high drug prices they don't like it, and of course even the president 's own cabinet and administration have been working hard and try to reduce these prices with the idea especially that drugs that are going to seniors have lower prices but you're rightist not easy. >> are they making a case, sorry go ahead gary >> here is the problem though. the congress is trying to fix the symptom and not the problem. why are these drug companies raising prices? why it's the same reason harvard raises tuition every year because it's basically a monopoly. i'm probably the most capitalistic libertarian person in the place, but the drug companies along with the government have this monopoly along with the companies that have these patents that go out 40-50 years so you can't have free competition, so the government wants to cut in and

clamp down prices. that's not the answer. if they would allow more competition out there, allow other companies, speed up the approval process, then you would get it. david: you make a great point gary. there's another point to be made which is that price controls which is what we're talking about, always, always lead to shortages. you ask all economists they will tell you that and it's just at a moment when we have this breakthrough on immunotherapy, gerri you know about cancer drugs very well it's one of the best things that's happened recently that could dry up of you put price controls on it. gerri: big breakthroughs particularly in that arena and right are these drugs are they cheap? no they're very expensive both for consumers and to develop right? very difficult to develop, very expensive and i no one of the efforts by the administration has been to try to lower what these companies have to do to prove that they can test these drugs and that's one answer they have, but this isn't easy and i've got to tell you what's going on in canada and other

countries where they want the government to pick-up the whole tab. that doesn't work either. david: because they're using our drugs it's easy once the drugs are made to manufacture. thank you we've got to leave it at that gang thank you very much gerri. appreciate the report. next a former new york times editor saying the paper has become "unmistake aboutly" anti-trump but is the profit boost that they are making now worth taking a little hit to their credibility? we debate that, coming next. as a fitness junkie, i customize everything - bike, wheels, saddle. that's why i switched to liberty mutual. they customized my insurance, so i only pay for what i need. i insured my car, and my bike. my calves are custom too, but i can't insure those... which is a crying shame. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

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david: well the former executive editor of the new york times is blasting the newspaper 's coverage of our president as "unmistakably" anti-trump. jill abrams was the top news executive from 2011-2014 and she says given its mostly liberal audience there was an implicit financial reward for the times in running lots of trump stories

almost all of them negative so has the paper sacrificed its credibility for profitability? what do you think? >> well, i'm not sure, david. i mean, remember at the end of the day this is a business. i don't think it really cares honestly about credibility. i think it cares about subscriptions and that's where they're making their money. the advertising like a lot of papers is dropping off but their digital subscriptions in particular which of course the whole world is going to continues to increase. look they have a point of view, they have a core audience it's up to them if that core audience increases or decreases but they've carved out a niche. i actually applaud them not for their point of view, which i disagree with but for their marketing strategy. i think it's dead on. i agree with gary b. this has to do with lazy readers , lazy viewers in television. they don't want to be challenged they want to sit downturn on the tv at night or read their newspaper in the morning and have news that agrees with them

and the new york times found this. i personally wish that the world was different but the world is what it is and i think the new york times made a decision here and to them it's working out. >> i actually disagree that it's working out because if you look at that third page where they list their most red stories and then they talk about how many times its been liked or tweeted they take those numbers down now because they were small and i would say that they have a very narrow audience, yes it's a very anti-trump audience. by the way i'll remind everyone that a year ago the new publisher vowed to make it a more even-handed newspaper. david: forgive newly-released for interrupting but look at the jump this is the trump jump if you will of the stock up 95% as some people say as a result of the anti-trump. >> that has worked for them no question about it and it'll go away when trump goes away i presume. well the president likes to quote and say the failing new york times. the new york times is not fail ing. subscription is way up. their stock price is way up, and

i think to john -- david: by way it was failing when the president was elected and now you see -- >> we're in a polarizing environment and it works for them. the media companies may play to their base. >> i think the reason the new publisher made that statement was because most of us grew up thinks the new york times was an excellent news paper and now days every section of the newspaper is tainted and i don't think that's good long term. >> the problem is -- david: quickly. >> if they become balanced, if you will, non-polarizing, then they bring in a whole cast of competition out there. i'm not sure they want to do that, to bob's point they're doing well with their curriculum aren't strategy. david: last word to gary another look at apple, weak holiday sales guidance hitting the stock hard what that means for markets tomorrow, that's next. i'm ken jacobus and i switched to the spark cash card

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david: shares of apple tumbling 7 1/2% after hours after tim cook announced sales after christmas for the fourth quarter will be lower than expected. i wonder who amonday our damage will be buying tomorrow if it's off 7.5%. >> i think apple is a buy here.

i earn it currently and won't be buying anymore. >> if you are looking to buy a cell phone cries company don't buy it. if you want a services company, it's a buy here. >> ingestors have to get comfortable with the game plan going forward. this is a pretty big miss. at $9 billion loss on the revenues. david: the competition for the service, you are going against amazon. that's a hell of a competitor. >> and google. >> i'll bet apple gets the nfl rights or premiere league rights. david: if they pick up another company that's into creating film.

>> content is king. david: we believe that here at fox. that does it for bullsag bull -r "bulls and bears." we'll see you back here tomorrow. president trump: we are asking for 5.6. we spend in afghanistan more in one month than what we are talking about for the wall. think of that. we spend in afghanistan more money than most of countries spend except a few. think about that. it's ridiculous. i'm talking about the $5.6 billion the house approved. they stepped up and they approved. i'm not holding nancy to this. but she said you will never get the republicans to vote for it. the 5 degrees 6 billion is such a strong number.