lou: good to be with you. good night from new they are not offering enough for the price increase. a big --dash -- a big hurt for apple. they are sparking a global selloff in tech stocks. the pre- market is down about seven and half percent. eighty-five points off the dow jones industrial average. they are now done down by 354 percent. it's down 2.7 percent.

taking a look at oil. they are slumping again over night. we are now 4595 on the contract. one and a quarter percent from the downside. ischemic the worst performer as the is the french market down 1%. >> in taking a look at china again at the story. the stocks are edging lower in particular. stocks in japan our still closed for a holiday today. aaa has another plan to bring in trending dieters. fbn:am starts right now. a.m. here in new york. i feel like we are starting this morning at the same as yesterday. we have a reverse i guess today. it could be another wild day. we do want to start with that bombshell news.

the company flash flashed their revenue forecast. they're adding the rising trade tensions. and certainly impacted for but traffic in apple stores. it's down 7.4 percent. we are bringing in tim higgins. 84billion. investors assume seemingly

surprised. it seems like the second leg down for apple. you would've thought they would've conceived some of the headwinds. underscores how fast things are changing and the china market. other companies are probably experiencing similar things. >> look at china in general. it is the largest smartphone market overall with the pursuit of that market has been on the decline and it was about 12 and a half% notes about seven and a half 7.8 percent. do you see that as a problem for apple? do you think they miss the mark when it came to this

prediction. they also greater competition in china. and you've apple with not the most innovative new lineup of phones as they pursue higher priced phones. they are all adding up challenges for the company. and the biggest strategy the revenue strategy had been to consistently raise prices. that's it thousand dollar phone. they had been offering discounts for trade-ins. are they can look to maybe change pricing strategy. also intense pressure to find the next big hit whether that's good to be augmented reality or cars those are longer-term bets you are gonna

hear analysts and experts say maybe it's time for apple to spend some more of that money they head in the bank. to try to find the next big hot thing. it's a broader issue for silicon valley in general. these big tech companies are looking for ways to continue the massive growth they've have over the last ten years or so. and it has been smart phones. we are hitting the peak smartphone market. tim cook in this letter to investors did say that the service business even in china they did see an increase in there. there. it was a record services numbers out of china. an overall. he seen as can be the services you get on your phone not the device itself. are we ignoring maybe some of the positive news out of the cook letter? >> that's what they're trying to pivot towards the last year or so.

and really pushing that. we will hear that kind of narrative is stronger in the next few weeks as apple tries two-point out that there are some positive things ahead for them. right now and there to get punched for this issue they head with iphone and then the china market and uncertainty there. he did point to the fact that they did not quite estimate the fallout and what was happening with china and the economy there. the trade war that we are now pretty much involved in with that country have an effect on foot traffic. thank you for covering the breaking news. >> in washington president trump tweeting last night. i remain ready and willing to work with democrats to pass a bill that secures our borders. and keeps america safe. let's get it done. this after the presidents president meeting with congressional leaders at the white house made no progress to end the partial government shutdown. we have all the latest for us. >> no agreement out of the white house meeting the soon

to be house minority leader kevin mccarthy said they ask him both sides to come back on friday and start negotiating to try to come up with a compromise and find the border wall. the democrats did not come to the white house wanting to negotiate. if they used the meeting as an opportunity to ask the president to support their plan which is expected to be passed later on today. >> to use it as hostage which they have no argument against is wrong. and we would urge them respectfully to reconsider and support these bills which are bipartisan and today the house minority leader expected to introduce bills that would fund the government through the fiscal year except through the department of homeland security. that would be funded only through february 8. the president upset at democrats calling the shutdown political move just to prevent him from getting border security.

but they want 12 billion more than that in foreign aid. but they won't approve $5.6 billion for a wall that will pay for itself almost on a monthly basis. it's just politics folks. it seems like we have a lot of politicians talking at each other with not with each other. this could be a long government shutdown. >> this could all delay billions of dollars of income tax refunds for the american people during the shutdown the irs does really not conduct audits. or pay refunds. >> it will not affect the release of the december jobs report that's due out tomorrow morning. these are the expectations.

that is from 155,000 back in november. economists looking for the unemployment rate to hold steady at 3.7 percent. >> investors do not think that the federal reserve will raise interest rates this year. it showing a 91% probability that they will hold rates steady or even get this lower them in 2019. that is a huge reversal from earlier expectations we were banking before on about three. tesla shares getting cut after the company cut prices. more rough news for tesla. tesla said it cut prices by $2,000 over its entire vehicle lineup. it was a help make up for the base of tax refund vehicles this year. investors are worried about future plans for the model

three. it remains a significant opportunity to continue the sellers growth of the model three. they are lower in premarket trading. >> problems for them this could be a problem for him is on roku. it's can be heading in that market. it allows users to subscribe to streaming services by acting as a portal outside its platform soon users will be able to buy paid tv subscriptions through the roku channel in a way similar to how amazon has access to premium channels like hbo through its prime video. it will launch later this month with channels like showtime and stars they are trading lower in the premarket.

aaa announced it is now offering a new selection of lifestyle bulls. they a calm the date -- accommodate several different diets. it's already available at chapultepec. it will help you keep your diet on track while continuing to enjoy your favorite lunch spot. the shares are up 47 percent. >> they are giving them the easier option to order it online through the app and in the restaurant. let's take a look at this because day two of the new year on wall street. and were starting once again with the selloff. the s&p futures down to one one and two thirds percent. almost 3% today.

it was just about two weeks ago that jay foul lowered the forecast on interest rate hikes. it's more likely that the economy will grow in a way where there will be no interest rate increases investors are betting big on the euro. are they right. you're watching fbn a.m. when it might be time to buy or sell fidelity. open an account today. fidelity. i am not for just treating my symptoms... (ah-choo) i am for shortening colds when i'm sick. with zicam. zicam is completely different. unlike most other cold medicines... ...zicam is clinically proven to shorten colds. i am a zifan for zicam. oral or nasal.

>> investors increasingly believe that the federal reserve well not raise interest rates this year. nonetheless the futures now show a 91% probability that they will hold rates steady or lower them this year that

might be the biggest challenge or problem for the fed right now the investors don't think they are going to hike. they have good cover to not did not hike if they want too. in inflation doesn't seem to really be taking up just yet. i think that just might be the boost that the market needs. i'm really looking at that tenure treasury to be my guide on whether or not the fed will raise the rate. that's what i'm looking for. if you look at the tenure which on the screen right now. if that moves up. they can't push the longer term rates. if you really watch this.

you could probably get one or two maybe even two fed increases. i could see them raising again at the next one. they have skipped every other for a while. if we stay where we are well had no increases in that gives us the opportunity for the market. the pricing on the market is just ridiculously low. there is a lot of opportunity there. the ratio on the s&p right now is in the fourteens. if you take away the fang stock. there are hundreds of stocks traded at eight or nine multiples. that's ridiculous. you don't have the market positivity behind you. but short of that all you need is a little bit of a boost and you can actually find some great bargains here. that's what were looking at.

select this is something the president said about the stock is still up i guess around 30% from when the time i got elected. and it will go up once we settle the trade issues. it's got a long way to go. >> a little glitch,. >> last year it was up 21% two years. last year you were negative for if you were counting dividends if you close your eyes two years ago and open them today you would be up 17% from peak to trough it have just on the borderline of a bear market. but were in a non- session bear market.

non- recessionary bear markets typically go down about 20% and then they rebound. no one's really calling for honestly. you have the opportunity that you may have seen the low behind you. i'm not saying that we don't retest them. with the valuations if this is a non- recessionary bear market weave an opportunity to see new high this year. at that point i will spoke to before you probably need to pull some money off the table at that point. a non- recessionary bear market. were looking at the negative market. taking a look at futures ahead of the bell right now. with the warning about china. the s&p done 40 and a half. tech heavy nasdaq almost down

2%. think about the suppliers in particular. coming up for what airports are vowing to fix to make your flying experience better. it's not what you think. in the idea of giving birth and outer space might sound like a plot but it's making it a reality. the reasoning just as bizarre as the idea itself. well, how are the massage chairs working out for everyone? i dunno. i'm still a little stressed about buying our new house. well, it's a good thing we don't have to worry about homeowners insurance. geico can help with that. we can get homeowners insurance help from geico?

well, sure. and they could save us a bunch too. mmhmm? i'm starting to feel better already. get to know geico and see how much you could save on homeowners and condo insurance.

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we continue of course to watch futures this morning. the warning about the fiscal first quarter. that is hurting the dow about 85 points. were down 351. the american man accused of spying in russia has met with u.s. ambassador to russia a retired marine is still detained. they are now demanding answers. the man is muniz incident that he was in the country to attend a wedding.

bernie sanders coming under fire for this response to sexual harassment allegations on the 2016 campaign. >> i was a little bit busy running around the country trying to make the case. we did everything right in terms of addressing that i'm hearing if i will -- if i run we will do better. the allegations were never dealt with. and women on the campaign were paid left -- less than men on the campaign. the mission will measure the terrain and mineral composition. nasa has released stunning new pictures for miles away.

i don't know what that is. believes it was formed during the birth of the solar system. one startup wants to send pregnant women to space. they say the trip would be in a capsule and last 24 to 36 hours before returning is to allow humans to be capable of living on other planets just in case there is a major catastrophe that would make earth unlivable. >> i'm trying not to comment here. >> the captain of the 1970s has died.

his former wife and musical partner was by his side. he was 76 years old. let's take a look at futures right now. we do have another rough start to trading on this just the second trading day. that is the apple effect. s&p done 40. still have we had been talking about it all morning. china has taken a big bite out of apple. is that the only company with a china problem. 2018 was a really bizarre year for fashion.

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until you get to this point the whole company will dip.

investors giving apple stocks the cold shoulder. it's on more than 7% this morning. it will be attributed to the losses. this is the apple effect as well. every major average is in the red. is down just fractionally. markets are so close for holiday. it's that we think. fbn:am starts right now.

let's get right to it. markets once again. done sharply in the premarket. that is raising fears that more companies will be feeling the sting gentlemen, good to see things for coming on. i'd seems like the china story presents eight twofold vulnerability. they are disrupting the chinese supply chain. who else is vulnerable.

the slowing consumer in china. and the impact on the u.s. consumer. you can look at intel, and dell. that will also be impacted. they project that will be the largest market. that would affect the chinese consumer. this is a reason for the slump for apple. they managed their growth.

is still all coming from the steve jobs era. i'm missing where that elon musk character is in apple. i think apple has a few different problems i thing is just a technology problem. what is the latest and greatest features which is probably face recognition. when you look at the consumer in china it creates

automobiles just as recently as a couple years ago. that is the risk. >> that is an excellent point. to go back to something that you said. when we speak of the china slowdown. and we speak of the trade dispute. they are geopolitical risks. when they are guiding down for the quarter and the year. they can use those excuses as scapegoats. that's a problem to you. i am missing where the magic is. they did poach the have of artificial intelligence from google. that's what they need to do. they are missing a huge data gap. they have an innovation issue. is there more room for tech to sink.

not to some insane place. what is the new leadership in technology. i was reading an interesting article the other day or how they should think about buying gas stations and i depots for them to have and collect consumer data. it is encroaching on absolutely every single industry. at some point maybe the government is. 10% of revenues from guest. there is a precedent for. and consumers would go to an amazon gas station.

they are just kind of gimmick keep cleaning up. the biggest competition is dc and there is a reason for that. that's his competitor, no one else. there could be some issues but i think they are relatively insulated. the majority of consumers are right here in america. amazon stock is down to a half percent. ian and jason, thank you.

>> a new media bite leads to a blackout of local news just in time for the nfl playoff. after failing to reach an agreement they have gone dark for charter communications. the lost access to local tv stations owned by tribune news. the blackout could jeopardize broadcast of the nfl playoffs. the issue is the amount of fees that they charge. airports are trying something different to get more folks to fly. bathrooms are in important

part of the airport experience which is why many are getting makeovers from bathrooms. it has just gotten a space this new upgrade. the airports as well. and the wall street journal reports they stay clean uncrowded facilities laguardia where he will get -- will get an entire makeover. >> how about a human size backpack. the massive oversize backpack. and it's getting a lot of hype in japan. they call it the backpackers closet. they even suggest using the backpack as an alternative closet. it comes in three colors.

can you imagine filling it up and carrying at. a lot of things will sit in that backpack. let's look at futures right now. this is kind of morbid. second trading day of the year. down 356. this is about the apple warning. s&p done 41 in change. last season's kneeling controversy hurt ratings and more. finally some good news for the league this season. the texas longhorns bowl mascot bull mascot that went after the georgia bulldog

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it was scary. the schools themselves. nasdaq pulls back by 170 points. a lot has already been done. we've been getting money in. we are going to talk to an arizona reporter about that very issue and nancy pelosi set to retake the gavel today. but new members of congress in our own party already planning to defy her.

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>> welcome back let's get you caught up on what's happening now. apple credits iphone revenue guidance for fiscal first quarter.

they opposes -- they oppose the pay go. she tweeted in part this. i will also vote no on the rules package which is tried to slip. i knew congress takes over. they probe into the fbi. outgoing committee leaders said it was not to prosecute former secretary of state hillary clinton was not unanimous. they will begin a two-day confirmation hearing for the next attorney general on january 15.

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>> lawmakers are back to square one. donald trump accuses the democrats of derailing yesterday's high level briefing. this is health and wellness. look at all of the countries that had walls. the partial government shutdown nears two weeks. there is no deal insight. how is all of this drama in washington playing out in arizona. i think just wear everywhere where everywhere else in the country. they are trying to figure out

how to movable objects can come together or not. >> do you think arizonans want to see a true wall. a lot of the folks down there said we know what i can to get a wall but we need more border security. is that something that arizonans are talking about as well. i think anybody that knows at of the border. knows the idea that of a wall that just wouldn't work. they have talked about that they had been building walls. all they have done built fence similar to what was already there.

i'm wondering how the rhetoric from the president's plane out with the folks from arizona. much of the ball has been fully renovated or built. is that true. >> i don't know if it's true. but what i will say when you're asking about how they feel about it. there is no unilateral viewpoint of what the president does. for the promise to make mexico pay for it. how bad is a problem right now

they have a cause a lot of social and economic problems. what is that reaction there now. do they think it's more where is the problem so kind of the same. i don't think troops have anything to do with it. when president troupe took office if you could find secure is the fewest number of illegal immigrants coming across. it was probably the safest or more secure thing in four decades. the illegal immigrants in the numbers coming across were fewer than half of what they had been five or ten years earlier. by almost any measure the border is more secure and was

more secure when president trump took office than it had been. >> we will see how the senate race went. we will see at this plays out politically as well. dennis, thank you so much. >> let's take a look at the global markets. with the rare revenue warnings. what he thinks scott? >> that is why we have seen the equity selloff here. and we are fighting on with the tariff trade war. nobody is going to get out unscathed.

but also making slow on purpose. we think there is good to be something that is get a beat coming out of that that is can we get at the other end. we are trying to disrupt something that's going on to our detriment by the way. it will be worth the sacrifice today. the september stock market that kind of -- the december stock market kind of cratered. they called it yesterday and glitch. i think what has happened is that we've had so good for so long. we started to get nervous

about when the other shoe was going to drop. when these tax cuts are gonna start to wear off. speech about real rates. that hurt the markets. everybody got the oil trade wrong. they were calling for 8,200-dollar crude. and then they got the tenure wrong. we will see the tenure up 4%. at the same time we have the tariffs. it's nothing that's really can add up to big positive news going forward. i guess, thank you for that. and thank you for watching fbn:am.

>> i have good news but you can have to wait for it. good morning everyone. i'm in for maria bartiromo. it's thursday, january 3. apple shocks the market. the tech giant slashes the sales guidance for the first time in more than 15 years. weakness in china is to blame. in the stock is sliding ahead of the open. that is roughly what the stock made in the last year. and they are taking the toll on other big technology names. in the broader market. we will dig into that. it is down 3% this morning. if selling across the board. you are selling and the overall market. is this company specific or does it really hit on an array of problems weighing on stocks

, certainly it is weighing on stocks this morning. this is it rough. about 80 points off the dow jones industrial. it was certainly hesitation in worry in our markets. we have selling across the board. the biggest loser is the dax in germany done more than 1%. in asia over night. the japanese markets are still close. but there was losses in shanghai.