you cannot have border security. it won't work. lou: diamond and silk. congressman matt gaetz. >> it's not going to be just am. a heck of a lot of u.s. companies that have sale in china. cheryl: is there going to be more companies that will be hit by the slumping chinese economies yesterday? lauren: look at this, nice boost this morning, dow up as u.s. and china trade talks on monday. cheryl: a little bit of lift on some kind of trade of agreement. oil 48.02. lauren: let's look at the yield, 2.61%.

traders begin to bet that the federal reserve may actually cut rates later this year. cheryl: we will talk a big change in fed-funds future. europe, markets in the green, all higher, dax up 1 and a half percent right now. lauren: in asia nikkei in japan playing catch-up, chinese markets gaining on trade talk hopes. cheryl: warren buffet is not immune from the big selloff, a big haircut he just took in the market. fbn:am starts right now. ♪ lauren: all right, 5:01 a.m. in new york.

january 4th, i'm lauren simonetti. cheryl: good morning, everybody, i'm cheryl casone. just mentioned it, change if pricing, maybe no cut in 2019 to now investors saying we need cut in interest rates, what a difference a day makes. we need that. lauren: investors are optimistic this morning, u.s. and china will achieve real progress. ahead of those negotiations, the white house is warning that apple won't be the only to feel impact on slowdown. we bring in tom horowitz, joining us now, todd, you're optimistic that some sort of deal gets done in the 90-daytime frame which is march first is the deadline? >> good morning, lauren, i mean, i think a deal will get done, i don't think there was ever a

doubt that a deal would get done, i think there's a whole bunch of rhetoric that we continue back and forth and markets reacted, overall markets are in trouble regardless if a deal gets done or not. a lot of earning problems that will get done, a lot of issues out there that we continue to ignore and now once again we are playing the fed instead of playing the real markets and the economy. lauren: aren't the earnings problems because of china, because consumers are slowing down and tariffs and the like? >> ic it made consumer maybe slowing down but i don't think it has anything to do with tariffs, tariffs is just an excuse, the stronger dollar is excuse for a slowing economy. i think we have a lot of deeper problems and the number one problem is the debt, not the trade wars but the overall debt we have created.

that's the bigger problem in the markets. lauren: i want to go back to trade talks, if you look at catalyst for the upside, i know we might not see green arrows come 3:00 p.m., the reason is stock market sup right now because of optimism that china and the u.s. agree to something, when you say you're optimistic that some sort of deal gets done, how do both sides come out feeling like they won something? >> i think that's the whole key here. the only thing delayed in actual formal deal, president trump and president xi have to come out victorious saying we did it. you can see, lauren, by the way that the grain markets have been trading, a lot of things determine to the trade wars that they have been holding up very well, once they figure out how to come out as champions which i believe they will they'll be

official deal in place, something else to worry about as to why the markets are going lower. lauren: based on what you're saying, it seems that you would be okay and the markets would be okay if the trade talks get pushed back so we don't have a deal by the deadline of march first that this goes past that? >> well, again, yeah, i don't think there's a problem with the exact date. i think that was first -- we put a deadline so we could make a deal, at the end of the day as long as there's talking and as long as prospects that things will get done, april 1st, may first, as long as we know everybody is talk talking is fine. lauren: we will see, not sinking this morning, thank you, todd. cheryl: i'm glad you brought up corporate debt, consumer debt. lauren: mitch roschelle coming up in a bit. cheryl: 5 overhangs in the market and this is one of them.

what's happening in washington, president trump is set to hold a meeting this morning again with congressional leaders trying to dig cuss border wall funding and see if they can get a deal after the first meeting with them made zero progress to end shutdown. vice president pence was on tucker carlson tonight last night and he talked again about the need for a wall. >> i think the president has made it very clear, no wall no deal. we can agree on those facts, come together around solutions but part of that solution means a wall, it means a barrier along southern border. lauren: last night house democrats passed 2 bills to reopen government on first day in power. let's go to kristina partsinevelos. >> theme for swearing in speech revolved around bipartisanship, however, late yesterday evening nancy pelosi spoke with reporters and adamantly said

there would be in -- no wall. >> this is not a wall between méxico and the united states that the president is creating here, it's a wall between reality and his constituents. his sporters, he does not want them to know what he's doing to medicare and medicaid and social security in his budget. >> debates for the wall to stop influx of illegal immigrants and the white house released statement saying that the number of people crossing the borders illegally has risen to 2,000 per day and pelosi created two solutions, she told reporters said there should be more infrastructure on ports of entry and spending more on technology that scan cars for drug that is come through the border and since they're speaking to have wall, the house grappled with funding departments like homeland security before the voting began last night, the senate majority leader mitch mcconnell had this to say about the democrats' spending plan.

>> the legislation that the house democrats reported, have reportedly planned to vote on later today is in my view not a serious attempt, i will will call it political theater, not productive law making. >> all cueing up for tense meeting tat white house, lauren, cheryl, thank you. cheryl: all right, well, meanwhile the white house is now saying that the partial government shutdown will trim about 1 tenth of 1% from u.s. economic growth every two weeks, that's gdp, folks, chairman of the white house chairman kevin hasset said jobs will be affected. >> if government workers will say not working and when we see the january job's number it could be a big negative. cheryl: of course, clarifying, we won't get any effect of the shutdown but also added that the shutdown, doesn't expect the

shutdown to have big impact on the economy as long as it ends relatively quickly. that's the question mark right now. lauren: speaking of job's report, labor department is open, release numbers this morning, nonpayroll expected to rise 177,000 from 155,000 in number, economists are looking for economy to hold steady. wages, we always watch them, expected to jump 3% from a year ago. if we have anything in line with those expectations, the market reaction should be okay but we will see if we get a weak number, that's the growth slowdown story and that's definitely mornings with maria will be discussing complete and his all morning long starting at 8:00 a.m. cheryl: dagen mcdowell hosting, made the point that it could be a lose-lose. lauren: that's true. cheryl: she will be covering that for us. warren buffet feeling plunge.

lauren: worst day from apple in 6 years. hey, tradies. tracee: berkshire shares fell more than 5% because of am, largest stock investment. berkshire hasn't sold shares by now, this could push to a fourth quarter net loss even if it's dozen operates businesses perform well. berkshire is up 1% from a year ago. lauren: airlines, we had low gas prices, fuel prices but airlines took a major dive yesterday. tracee: shares fell after delta disappointing ticket pricing, forced to cut revenue forecast in 2 months, delta warned investors that unit revenues, gauge of airfare, down froafs

forecast 3.5%, delta said yield growth from last-minute bookings were more modest than anticipated in december, delta fell nearly 9% yesterday. cheryl: they may need to reevaluate how they price their seat. general motor wants to bring you food? tracee: yes, self-driving unit crews and door dash to team up, program schedule today start in march will deliver meals from restaurants, the company said they are looking to explore grocery delivery for certain stores already working with door dash, gm's first amendment, gm shares down 21% from a year ago. lauren: tough year for them. thank you. cheryl: futures this morning,

it's been a volatile week, we had more than 600 points in the downside, yesterday we were up 63, negotiations scheduled between u.s. and china, that's helping the markets, dow 264, s&p 30 and nasdaq 99 and a quarter. still ahead, despite a rocky road on wall street well, for the last 3 months, investors are investing, new things that millennials are now offended, target is show about nothing. >> you want bread? >> yes, please. >> 3 dz. >> what the? [laughter] >> nothing for you. cheryl: generation that as you know need safe spaces says that seinfeld is offensive to them. yeah. we will be right back.

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cheryl: well, in just a few hours first report of new year. here is expectation, employers added 177,000 jobs in the month reinforcing strength of the economy, anything too strong rate hikes in 2019 that could add more pressure to markets, low number and concerns about wage that is could take fed the other way. there's a lot on the line today. >> good morning. cheryl: good news is going to be bad news and bad news is going to be bad news. what's your expectation and also market reaction could be pretty big for this? >> certainly could be. expectations is that we see somewhere 200,000 job growth,

better than expectations but bottom line we expect to see another good report, you're right, you're absolutely right, if you see a good number and stronger wage growth that could add more pressure to the to the concerns about rate hike this year. cheryl: we should add that adp came stronger, 271,000 jobs added in private sector yesterday and that was well above expectations and really the basic hiring number thereby the key factor today because, look, if employers kept growing and growing in december and ignoring risk factors like trade, ignoring talk of shutdown. that could actually be a bad signal? >> sure, yeah. could be. we have seen in data and regional fed reports while

indices dropped and outlook of employment stayed steady. we think we probably saw good retail shopping period over the holidays and so based on all of that, we will see strong number. cheryl: okay, strong number, there's 2 sensitive sectors in this we should point out to viewers, one is the oil sector, obviously a lot of pressure with oil prices, what does that mean and the manufacturing and we are looking at manufacturing folks out there making all kinds of great things in the country right now, if we get any kind of weakness in manufacturing sector that could be something that you will have to look for. >> absolutely we will be looking at that. i think the manufacturing adds 5 to 10,000 per month. small percentage of job numbers, one other thing we will be looking at is the earnings number. cheryl: wage growth. go ahead. >> right. and so wage growth stacked to be

weaker this month, dropping off strong november from 2017 which means the year over year rate which is now up to 3.1% could pull back 2.9% which would obviously take a little bit of pressure off. we will be looking at 3 month over 3 month average rather than year over year date because of the anomaly data. cheryl: that's something that chairman powell has talked about and that could be red flag if we deviate from expectations and we will hear from him later today actually, maybe he will comment on all of this. it's going to be big day for the markets, thank you for being here, we appreciate it. >> thank you. cheryl: we also want to let all of you know national economic director larry kudlow will be on varney & company talking about his appearance of the job's report is released. that's 9:00 a.m. eastern time today. don't miss it. lauren: as we wrap up the first week of the new year, even

though report is for december, just to refresh you, we are still down for the dow 1.6% this week, nasdaq is making comeback 1 and a half percent this morning, it lost 3% yesterday, still ahead 2 tractor trailer smash intoed cars in florida highway causing massive inferno, check that out. we will have the latest on the deadly collision. how amazon is tapping into facial recognition software? you're watching fbn:am

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lauren: welcome back, let's get you caught up on what's happening now. higher market. dow is up 255. s&p up 30. looking at the future's board, 53% chance of rate cut. investors seem to like that. 7 people killed in fiery crash in florida highway, two tractor trailer and two passenger cars involved in wreck, 50,000 gallons of diesel fuel igniting the massive fire that you're looking at. investigators are treating the crash as homicide but have not said why.

lawyer for former marine paul who is being held on espionage charges on russia has applied for bail, he also brought up the possibility of being exchanged for russian prisoner held in america and those charges carry possible jail sentence 20 to 30 years. he was in moscow to attend a wedding and is not a spy. north korea warning the u.s. to stop, quote, meddling with affairs with south korea, north korea claims washington doesn't want the relationship between the koreas to improve. warning stoms as secretary of state mike pompeo says progress is right around the corner. >> we have set conditions where we have met conditions when president trump and chairman kim meet. lauren: president trump said second meeting with kim jong un will likely happen earlier this

year. lauren: this time it's seinfeld. >> the best, the best. >> you know what they call soup nazi, come back one year. lauren: that's offensive. the most offensive joke from the show, other jokes about same-sex couples, kramer burning puerto rican flag and getting someone deported all offensive. cheryl: it's called history, everybody. if you're under 40. [laughter] cheryl: let's take a look at future because we have bounce-back.

dow up 247 in premarket. s&p, nasdaq as well. most averages down 1 to 2%. it's been a rough week. still ahead investors are betting that the federal reserve will cut interest rate this year believe it or not, will jay powell increase those odds when he meets former fed chair today will be on camera, will be speaking and hungover college students won't have to -- lauren: can they bring them here? cheryl: let's ask liberty mutual customizes your car insurance so you only pay for what you need. great news for anyone wh- uh uh - i'm the one who delivers the news around here. ♪ liberty mutual has just announced that they can customize your car insurance so that you only pay for what you need.

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>> when we see the january job numbers could be negative. lauren: government shutdown could hurt jobs and economic growth. cheryl: investors focused on trade again once again, hopes for new u.s. and chinese trade talks officially held on monday and tuesday held in beijing and right now bounce-back going on after yesterday's big losses, dow up 250, s&p 29 and 3 quarters, nasdaq 95 and change. lauren: more chatter of interest rate cut this year, take a look at oil prices, 2 and a quarter

percent, 48.12. cheryl: big story in bond market, the yield on the 10-year treasury sunk below 2.6%, traders are beginning to bet that the fed may even cut rates later this year, we will talk about this in a moment. 2.6%. lauren: green arrows in europe, ftse in london gaining 1% and the dax in frankfurt gaining 1 and a half percent. cheryl: stocks in asia especially in japan playing catch-up, the other indices we watched all higher today. lauren: robots are invading one college campus, fbn:am continues right now. lauren: 5:30 a.m. in new york. i'm lauren simonetti. good morning, everybody.

cheryl: cheryl casone, what a week we are having. now increasingly are believing that the fed will cut interest rates this year, i'm not misspeaking when i say that. take a look at fed funds futures, they are showing us 53% probability that rates will be lowered. a month ago we were talking about rate hikes, folks, in november 90% probability that the rates would end 2019 higher than levels, you can't make this up, let's bring in brian guliaano and mark, senior economist at wells fargo, guys, good morning. >> good morning. cheryl: mark, i have to get your take what do you make of fed funds future after yesterday's selloff? >> we got a hint of that yesterday in the markets, you know, i do think the pessism, -- pessimism may have gotten ahead

of itself. i think maybe what's more likely we have a longer pause than people are banking on 30 days ago, but i'm not surprised given -- given how much the economy has slowed. the ism number yesterday weakened much more than it did in mid decade slowdown that we had but it's still in a level that's consistent with at least modest economic growth. cheryl: investors, brian, are getting back up from fed speak, i want to read you what robert kaplan who runs dallas fed, not a voting member, in the first couple of quarters in this year, if you ask me my base case, my base case would be take no action at all. we should also mention that we will be hearing from fed chairman jay powell today in an event later this, we will be taking live. this could be a game-changer as

to how we look at rate increases, brian. >> i couldn't agree with more comments. why do you have to do anything right now? what a difference a few months makes, jay powell back on october 3rd, much higher neutral rate, clearly backed off since then. look at fed fund futures, 53% of the market is telling you that you might see cut over the next 12 months, that's a very, very different story from what i'm hearing right now out of the fed which is still talking about two hikes for this year and quantitative tightening on auto pilot and, look, my question for jay and the fed, it's simple, over the past 12 months we've added 200,000 new jobs on average each month to the labor market, inflation is falling before the fed's target, the economy is doing reasonably well, jay, why do you need to rock the boat right now? cheryl: again, that maybe changing if you look at the fed fund futures, we are still

watching on screen. dramatic change overnight to what investors are thinking is going to happen. guy is not tone deaf, let's be honest. chairman of the federal reserve. the other thing is about china. we have gotten confirmation and this is helping equity markets that we will have discussions on monday and tuesday in beijing between lower-level authorities but still officials will be talking, is that hopeful to you that this could ease economic pressure, mark? >> it's hopeful but there's a lot of work to be done in u.s.-china trade relations. if we were to get some sort of an agreement, that was acceptable to both sides and -- and i don't think it would change the fed's thinking, they have to lock and see what damage has been done to the economy over the last 3, 6 months and i think that would at least keep them on hold. we haven't changed forecast as of yet, we are still with the consensus there with two rate

hikes probably the second half of the year but right now that looks doubtful. cheryl: interesting. that's interesting. brian, i have to wrap this up but i want to ask you real quick about what we are feeing in 5-year, obviously the bond market is your bread butter, what do you make to have action we saw? the bond market is acting strange you have to say in the last 24 hours. >> very, very strange. bond market, even equity markets are trying to digest a lot of different things, uncertainty with trade, uncertainty with washington, u.s. economic activity that's slowing, global activity that slowed, a lot weighing on the market, i think you will continue to see dislocation as well as more volatile environment. cheryl: both equities for the economy, thank you, brian and mark, great to have you here on

day for so many things. we will take comments from fed chair jay powell live later this afternoon, ben bernanke and janet yellen will be there as well. lauren: right now consumer spending has been pretty rock steady in volatile markets and expected to continue in 2019, are consumers piling on too much debt is the question, pwc partner mesh -- mitch roschelle, what do you think? >> they have full view and that's 4 trillion, auto, debt, credit card debt, that seems like a big number but as percentage of gdp it's not. the empty view is when consumers get the mailbox and they look at it, wait, maybe we overdid it, maybe we need to slow down, since the economy is so consumer focus that could cause slowdown,

i'm more half full guy but there's two ways of looking at it. lauren: we have tail winds for the consumer, low gas prices and also, well, the government has shut down but if remains shutdown you're not getting tax refund, unfortunately. >> a bit of the deferral with tax cuts and job's act from a year ago which most taxpayers aren't going to see the true benefit until they file tax return and get refund and when they do everybody will be presently surprised and pump more money in the economy and since we are consumer focused that's an additional tail win. lauren: how concern are you? at this point 46% of gdp, that's a record, mitch? >> as it relates to consumer debt as we were talking before lauren, it's relevant.

when you take a look at corporate debt i don't think it is. certainly companies pile on debt, the good news many of them have cash on their balance as well or they use that debt for acquisitions but if you look at the default rate on corporate rate specifically the higher yield corporate debt lesser in credit quality, default rates are not that bad add -- at all. i don't know that we are waiting to caution flag yet but i think the community will be focused on. lauren: maybe the tail win for this story interest rates toking up this year. mark expects cut maybe in 2020, not 2019. if interest rates don't go up there shouldn't be issue servicing the debt. >> the bigger issue for debt markets is the fed is continuing to unwind balance sheet and recking havoc on debt markets as

well. even if they slowed down auto pilot function that would help fixed income and debt markets. lauren: got it. have a great weekend. >> you too, lauren. cheryl: former toys"r"us staff are getting a pretty sweet post holiday gift. lauren: i think they appreciate it. tracee carrasco has the story. tracee: former toys"r"us employees who lost jobs when retailer liquidated started receiving checks, worker advocacy groups and politicians like senator bernie sanders have been pressuring the firms because toys"r"us did not provide severance payments for workers, estimated 64,000 workers were entitled to some $75 million in severance based on their years of service. lauren: all right, forget vending machines, there's now a

robot that is delivering snacks to college kids. tracee: yes, kids in california can use app to order food and drinks throughout 50 locations and have snack delivered by self-driving snack robot or snackbot, baked potato chips, 3 to 5 snack bots running around campus. lauren: to quarters, vending machines to robots. cheryl: fbi is keeping tabs on amazon? tracee: using controversial facial recognition technology as new method to catch criminals.

technology expect today help speed up the fbi's process of going through video surveillance footage that's collected during investigate. the software has been criticized by human right groups like the aclu. cheryl: interesting, maybe works, though. tracee, thank you very much. lauren: thanks, everybody, let's take a look at wild swings, futures up 270 on the dow, 102 on nasdaq, huge missed call could have changed the overtime game between the warriors and the rockets but some players saying the refs are playing bird box, show on netflix? what. jared max with that. if you want to go to college football championship on monday between clemsen and alabama, you might be able to score alerts -- wouldn't you like one from the market

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lauren: football fans, schedule pretty much blocked off. cheryl: here we go. jared: monday is college football national championship between alabama and clemsen. tickets prices have plummeted, maybe because alabama is in the big game for the seventh time since 2010. clemsen third time since 2013. the luster maybe not there. 475 face value seats, going for nearly a quarter of the price on secondary markets. now airfare to get there around a thousand bucks round trip from southeast to bay area, average nearly 2500 miles. alabama favored to win the game monday on levy stadium, boast team bring records, 14-0. wild card in nfl, cowboys are on fox, tomorrow night.

great game for the cowboys against seahawks after the initial game between the colts and texans, sunday chargers, bears. modern-era finalists announce 15 total among them, tony gonzález, james, bailey as well, the nfl has entered into reported 3-year deal set to be worth $90 million with cesar's entertainment, first gaming sponsor, it's only for casino, no fantasy. kevin durant somehow got away with this. how does this happen? he clearly steps out of bounds against houston rockets in overtime. they said he got bird box, blindfolded and overtime harden fifth straight finished, 3-point point shot, harden is on a row.

lauren: we thought refs were watching the show. it's great. jared: getting blindfolded. modern version. lauren: modern vending machines. jared max, you can catch sports reports every friday fox news headlines 24/7, channel 115. cheryl: all major averages are down for the week, the dow is up 280 right now, s&p up 33, nasdaq up 106, the job's report could change all of this. you will watch fox business, of course, all day, well, the democrats are now controlling congress and maxine waters is now in charge of health financial services committee, is she plan to go stock it to the bank? >> i'm going to focus on that and try to undo the damage that mulvaney has done.

cheryl: what damage is she going to do? [cheers and applause] [laughter] cheryl: you won't believe why new house democrats caleb is getting a big round of applause, you're watching fbn:am. i am not for colds. 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. allow you to take advantage of growth opportunities with a level of protection in down markets. so you can be less concerned about your retirement savings. talk with your advisor about shield℠ annuities from brighthouse financial, established by metlife.

lauren: good friday morning, gets get you caught up on what's happening now. nasdaq futures gaining 1.7%, job's report for december awaits. well, the cofounder of southwest airlines has died, strategy of low-cost fares and short trips changed as other were forced to adapt. 87 year's old. house democrats introducing two bills on first day in new congress one to eliminate the electoral college and another from prevent presidents from pardoning themselves or family, digs as president trump who

received less votes than hillary clinton. neither required to pass as they require two-thirds of house and senate. finally, did you hear this, freshman democrat goes off on president trump on first day of new job. >> people love you and you win and when your son looks at you, momma, loves you, bully don't win. we will go in there -- lauren: first palestinian woman making the pledge for progressive group move on. she also called president trump direct and serious threat to america, they should keep talking because all of this talking might hurt them in 2020, cheryl. cheryl: a lot of things changing now that we have democrats in control of the house as of, well, yesterday, representative maxine waters by the way is now chair of the house financial

services committee and she has long list of items on to-do list. she's promising big changes. >> make no mistake, we put regulations at risk of another financial crisis will come to an end. cheryl: what is she going to do, will she be able to slowdown the trump agenda. she in recent interview in msnbc said she wants to target consumer fraud protection bureau and mick mulvaney basically ruined the agency, is she going to get anywhere, do you think? >> i think she's going to struggle to push back against trump and mick mulvaney. when it comes down to it, the

reforms mick mulvaney have done has been fast that'sic, it's been a focus on disclosure and focus on preventing fraud rather than a concentration of yet more power in washington, d.c. i know a lot of the -- a lot of the politicians, a lot of bureaucrats want that power, but this is something that the trump administration has pushed very hard against and there will be a struggle, in the end she will not succeed at derailing the great success that we have seen in the last two years. cheryl: let me correct, consumer financial protection bureau, she can make life very difficult to bank ceo's, she would have power to call jamie dimon and all banks and mention in same interview she could go after wells fargo, fake accounts, rough year for wells fargo, she can make their lives very difficult. >> yes, she definitely has that potential and i think a lot of this is more an attempt to grab

headlines rather than attempt to force the law. something that i'm quite concerned about is that she is going to be looking to make deals with a lot of vested interest in the industry and something that should be troubling to all of us, republican and democratic legislators do and i think with her focus on community reinvestment and affordable housing a lot of that is just code for more handouts to a variety of special interests. cheryl: that's interesting that you say that and again her playbook is somewhat unknown, she's giving us some hints, you have to wonder if this is two years, this is a broad question for all of this new house, is this going to be 2 years of investigation and subpoenas, not just financial services but across the board? >> yes, that would be unfortunate to see that, to see such an important role that she now has or other community members have to see time absorbed by pursuing trails or

pursuing allegations rather than protecting sector, that would be wasted opportunity. we need to see dramatic reforms. i wish we should have seen that the past year. i'm really dismayed that in the coming session that we are going to see backing off of those proposals. cheryl: from mortgages to credit card, student loans, she will have a voice, we will see if she has power at the end of the day, thank you for being here, appreciate it. >> thanks for having me. lauren: biggest economic report every single month but does the job report matter to the markets, we will ask that question to our guest coming up.

lauren: in about 3 hours we get the december job's report but that's a lagging indicator of the economy, it's january, december number that we get. what do you make of what we will get from the job's report, craig? >> yeah, i mean, another thing that you point lacking indicater tends to have downsides. you need both pmi's and the like providing forward guidance, in terms of what we are expecting today, i think a pretty steady job growth number, 200,000 most likely with unemployment remaining low. question really

from today's reports what impact will they have in the markets, we are in quite vulnerable territory right now. we will have a far more significant impact on the markets. cheryl: a lot of guests today say they believe it'll come well above estimates. we should ask you about jay powell, he will be making comments in atlanta, we will have them at fox business live, what are you going to be listening for, after the job's report and after news about china trade? >> the most important thing here is the difference between market expectation, i think that's the key thing that will be take away from that. lauren: what was the last thing you said, craig? >> market expectations for interest rates for no hikes next year where fed -- lauren: got it. thank you very much. cheryl: sending it to dagen mcdowell, job's friday, dagen.

dagen: let's hope it's a good number. good morning, everyone, i'm dagen mcdowell in for maria bartiromo, it is friday january 4th, job's day. top stories at 6:00 a.m. eastern. a rally on wall street fueled by stimulus from china and a new round of trade talks, we have gains across the board and they are welcomed this morning, u.s. stock market futures higher, 294-point gain on dow right now, you can look at the markets move to the upside but we are 2 and a half hours away from u.s. job's report, special live coverage starting 8:00 a.m. eastern. we will be talking about that plus china's central bank taking action, cutting reserve ratio on banks which will make it easier for them to lend, pump money into the chinese economy and you see gains across the board in u.s. futures, this isn't a complete reversal from major

selloff we saw yesterday, 600-point lose on dow jones industrial average yesterday, it was apple that really pulled down all of your markets, nasdaq lost more than 2% just on second trading day of the new year. it was the big mover, big shock from appear that will really pulled down the market, the company lost $75 billion in market value just yesterday. that stock you can see premarket action gaining 1.8% at the moment. meantime looking tat airlines, delta cutting sales guidance and that's driving down the airline sector. here two key numbers to watch where the dow and s&p 500 would enter bear market territory, your russell 2000, down 20% from recent highs, for the dow watch