that 4.2%, that's almost triple the ten-year. charles: getting yield and at some point your principal will pop. we are up 50 points on the dow and i hand it over to liz claman. it's all about the two and ten-year this session. liz: or the 30-year. all of them. charles, we have bond yields suddenly screaming new worrisome signals. just over an hour ago the 30-year treasury yield dropped to a fresh all-time record low of 1.916%. right now it's slightly off that floor at 1.982%. but again, a fresh all-time record low. so much for a midsummer day's dream. more like a trader's nightmare. it's been a rocking and rolling session here. the dow trading in a 272-point range, even with better than expected earnings from walmart and an upside surprise in july retail sales, the nasdaq and the russell and the dow jones transports having trouble catching a bigger wave due to the ever-present overhang of

worries that the trade war is doing damage that is yet to be seen. forget about the bond market. at this exact hour yesterday, we were enduring the fourth largest point decline on record. by the closing bell, you may remember the dow lost an even 800 points. massive market selloff translating to a paper loss of some $925 billion. but in this hour, we've got two big name guests who move the markets when they speak. first, st. louis fed president james bullard is here in a fox business exclusive. edward lawrence is about to sit down live with the voting member of the federal reserve open market committee. does he feel it's time for a more aggressive 50 basis point cut? how does he see the current state of the economy? and does he feel that an emergency rate cut is appropriate? all those questions and more with james bullard, exclusive. and white house trade adviser peter navarro is here to

react to the "wall street journal" headline that blames him and his hawkish stance against china for the possibility of a recession. plus, one week after soulcycle faced a boycott after it was revealed one of the investors was holding a big fund-raiser for president trump, another indoor cycling business is quietly shuttering 20% of its studios across the country. we've got exclusive details on why and where flywheel locations are closing. less than an hour to the closing bell on a big day. you're in the right place. let's start "the claman countdown." liz: we have this breaking news. the federal communications commission has just fined abc nearly $400,000 over jimmy kimmel live episode which aired in october of 2018. it used a simulated emergency

alert on it. in a separate agreement, amc, different company, amc networks agreed to pay $104,000 fine for suing an alert tone that they put out in a february 2019 episode of "the walking dead." the use of emergency alert system tones in any other dimension other than a real emergency is specifically barred by the fcc. so we wanted to get that news to you. in the meantime, the markets really need to make up their minds, already. we have wild swings on wall street in a volatile session. right now, the dow is holding on to gains of about 92 points. we had been up 133. we have been down 139. s&p gaining seven. the nasdaq down two. now for a tale of two specific stocks that trade. walmart is the leader on the blue chip index. now, it's off its earlier highs. okay, that's important to note. but it did report very upbeat surprise results. the retail bellwether also raised its earnings expectations

for the full year, nimbly managing to skip around the concerns surrounding tariffs. wall street is still the champ of retail, as noted by a 20-quarter streak of u.s. growth. while the retailer is one of the toppers on the s&p 500, we flip it over to the cisco systems disaster here. it's close to the bottom after the networking equipment maker's forecast for sales and profit fell below wall street estimates. it's down 8.66%. we do need to tell you that the stock is set for its biggest one-day percentage loss in nearly six years, and it lists on all three exchanges, s&p and nasdaq, not just the dow. what did it blame? sales in china. they fell 25%. cisco has said it's a real problem, this trade situation, and in a case of sort of tit for tat, perhaps, cisco says that chinese customers are supporting local companies and state-owned enterprises, and shunning the american-based cisco. meanwhile, over in the bond market, investors are getting in while the going is good, sending

the ten-year yield now below and staying well below the psychologically important 1.5% level. actually, we are just slightly above it now, at 1.52%. still, that's a three-year low. you remember what happened yesterday with the so-called inversion, right, the yield curve inversion where the ten-year was paying out less than the two-year? that spooked the markets for sure. today, we should note it right now, the dow is now up 116. we are watching every tick of this market for you because in the last hour, we got this news. mexico's central bank citing uncertainty in the continuing threat of u.s. tariffs, just cut its benchmark interest rate a quarter of a point from pai8.25o 8%. to the very late ft prist print feds funds futures, we have -- well, wait a minute. for a 50 basis point probability

we have 32.7%. okay? that is the probability that we are seeing for a wider, a bigger cut. for perspective, yesterday at this time, that was a 20% chance. right now, 32.7%. president trump of course has argued that the federaleserve should not have raised rates last december. st. louis fed president james bullard, a vocal dove, was first to dissent against fed chief jay powell's move in june to keep rates steady. powell wanted a rate cut. what does he feel is necessary now and when i say he, i mean a fox business exclusive with st. louis fed president james bullard, courtesy of edward lawrence live in st. louis. go ahead. take it away, edward. >> liz, thank you. very special guest, as you know, the st. louis fed president jim bullard joining me here today. he's a voting member of the fomc and the first question, big question, where's the economy right now? are you worried about the volatility you're seeing? are you worried about the numbers that are coming in? >> well, we certainly pay

attention to markets and all the data that comes in. i think we're in the middle of a global slowdown, and we're just going to have to assess how this is going to affect the u.s. economy. i think it's not surprising that it would feedback into equities because you've got a lot of these big companies have most of their profits coming from overseas. so it's not surprising to see volatile stock market here. and then in bonds, you've got a flight to safety going on that's probably driving our yield somewhat lower. >> you mentioned bonds yesterday, the inversion of the two-year and the ten-year yields. is that an indicator of a recession? many folks say it's an indicator 18 months down the road, we will see a recession. is that it, or has something changed in this economy? >> well, you've got this flight to safety going on, so i think you've got to disentangle a little bit here. any inversion that's going to send a bearish signal for the u.s. economy would have to be sustained over a period of time

and so we're going to have to wait and see on that. >> so you see maybe it's the negative interest rates you're seeing from, say, germany or japan, they could be bringing money into this and pushing our yields down? >> yeah, it's very common when, you know, i think the trade war, it affects companies in the u.s., but it affects people outside, the countries outside the u.s. a lot more, especially smaller countries outside the u.s. they are wondering what's going to happen and because of that, you create a lot of uncertainty outside the u.s., natural flight to safety based on that, that drives our yields lower. >> the market is -- >> i will say, you know, there's upside to this. this is lower rates in the u.s., probably more cars being sold, probably more housing than otherwise, so there is an upside to this. there's a little bit of a sver lining with very low longer term rates. >> retail spending came in -- >> yeah, consumer looks pre good. walmart reporting strong results today.

they're in our district so we keep track of them. >> so the market is pressing in 25 basis points of a rate cut coming up at the next meeting. do you feel like the monetary policy is accommodative enough, or does more need to be done? >> well, i wouldn't want to pre-judge the meeting but one thing i do have my eye on here is the tips break even so that's the market's assessment of where inflation is going to be let's say over the next five years. that's indicating to me that they only expect 1% inflation or maybe 1.1% inflation over the next five years. that's not high enough to meet our target so that's something i'll definitely take into account if it's sustained going forward, going into the september meeting. >> so do we need an emergency session to deal with this, or do you think that the meetings scheduled -- >> i don't think so. i think we can react appropriately and the timing is not, never critical on these

things. a couple weeks one way or the other probably doesn't matter. what matters is that you're in the right zone for interest rates and that you're reacting appropriately to incoming data. >> is inflation your big thing still? or are you looking at the global slowdown as the big headwind? >> i want to hit the inflation target. we said it was 2%. i want to hit the 2% inflation target. i wouldn't mind if we were over 2% inflation in this environment. we have missed to the downside for a long time. so i would like to take action to try to make sure that we hit our inflation target, given everything that's going on in the u.s. and global economy. >> maybe a bigger action than going 25 basis points, could we see 50, you want to see bigger action being taken? >> i wouldn't want to pre-judge that and i think exactly where you put the move is not critical, but what is critical is that you take this on board and try to get the right policy for the situation. >> your federal reserve has done a lot on perception. does perception play into this a

little bit? because the fundamentals are there. you mentioned consumer spending is strong. walmart came in with strong earnings. the fundamentals are there. is perception a big deal here? >> well, in markets, it's always about trying to out-guess your rivals that are trading in markets. i think some of this downdraft might be a little bit overdone. certainly viewing it here from the u.s., the numbers you are citing, you know, seem pretty good or seem okay, at least. 2% growth, nice job market, very low unemployment, good consumption growth. a lot of things look good from those perspectives. on the other hand, you've got this trade war going on, you've got a lot of uncertainty globally. europe not doing as well as i'd like. china looks like it's slowing down. so those factors have to be taken into account as to how those will eventually come and hit the u.s. economy. i think this is a case where if you're looking backwards at the

data, it looks pretty good, but boy, you want to be taking into account what might happen going forward. >> and interesting, you talk about the consumer spending is strong. does more need to be done to get the perception turned that we do have good fundamentals here? do you feel like that needs to have a light shed on it? >> well, i think traders should be taking that into account. everyone should be taking that into account that fundamentally, you've got a very good labor market. you've got, you know, reasonable growth near trend in the u.s., 2%, something like that expected actually all the way through the second half here. if we play our cards right, i think we can get through -- there's a global slowdown, but i think things will stabilize and you will have a good run of growth for the next couple of years. >> with what happened yesterday, 800 points to the downside, do you blame the trade war for that? what was the heart of that volatility?

>> it's a big sell-off but come on, the market's way up this year and you know, even if nothing else was going on, you might have expected some re-pricing there. so that's one thing. the other thing is as i said at the beginning, a lot of these companies get a lot of their profits from overseas, so to the extent that there's uncertainty overseas, you see that back in the equity market, but that isn't necessarily the fundamental u.s. economy. the fundamentals of the u.s. economy are pretty good. >> i appreciate it. thank you very much, president jim bullard from the st. louis federal reserve. liz, we will throw it back to you. we will continue our conversation here. you will hear more of it later online. you will also hear throughout the day on fox business. but again, i will throw it back to you. liz: i would be interested to know about his position. we don't know what's going to happen with fed chair jay powell, right? the president keeps hammering him. we'll see. everybody should stay tuned for that because edward is going to continue this conversation online. stay tuned. closing bell 47 minutes

away. we are taking it straight to our floor show traders for some fed feedback to what james bullard just said. he said he is not ready to call a recession simply because we saw the inverted yield curve. that's next when "the claman countdown" comes right back. ♪

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liz: well, i am looking at the wires right now, and edward lawrence's interview that he just did with fed president of st. louis james bullard is making a lot of headlines. in fact, this one, james bullard just telling fox business that the trade war is creating a lot of uncertainty outside the united states with natural flight to safety driving u.s. bond rates lower.

now, you remember what happened yesterday. we fell 800 points on the dow after bond rates plummeted and by the way, the 30-year plummeted again today to a fresh never-before-seen low. let's get to our floor show traders, starting with sarge, on what you thought about that comment, but he also wasn't ready to call for a 50 basis point cut. >> well, tell you what, liz, i am ready to call for a 50 point basis cut to the fed funds rate. now, americans are already living in a negative rate environment. with the cpi at 1.8%, with the ten-year at 1.5%, we are already in a situation where if it doesn't call for a recession, it certainly is signaling we are in the eighth or ninth inning of the business cycle. liz: we just got july retail sales that are so much better than expected, a gain of .7%, that's a great number. walmart came in with the same store sales beat for the second quarter. yes, we had bad july factory production, down .4% but what horrible economy are you talking

about that would require a 50 basis point cut? >> i'm not talking about the economy. at least not the consumer driven economy. i'm talking about the industrial base. i do believe we need to fix the yield curve and the currency valuation more than anything else, or else we will be in a situation, listen, i know everyone is talking recession right now because we had the two and ten invert. everyone thinks we have 22 months. in an algorithm driven market, an algorithm driven economy, you may not have 22 months. if it comes, it will be fast and furious and there will be carnage. the fed's job here is to defend the american people, not to be data dependent. when you are data dependent you have already swung and missed. you have to defend the people that you have been hired to defend. i will do it if they won't. liz: okay. ira, i want to know your thought on this. bullard obviously is one of the biggest doves, if not the biggest dove on the federal reserve, so to hear him hesitate about a 50 basis point cut i thought was pretty interesting. >> well, they are going to have an issue come the european

central bank meeting, which is probably going to pull out what i call the big bazookas for a change. europe is always behind the curve. now they have an opportunity to actually go out ahead of the curve by cutting interest rates, by creating a new type of loan that is tiered in some manner for industry. they are probably going to do back to the qe program and they are even talking of buying equities. that will drive initially their rates lower, as their rates go lower, we are in that race. we just on fox said that mexico just cut its interest rate. but i don't think our fed has to get ahead of the curve. i think they have to stay in the batting box. i think that's what they are going to do. they will go a quarter point cut because that's built into the market. as you said and i agree, show me the weakness in our economy. we are firing on 9 of the 8 cylinders. that's not very bad action. that consumer is alive and well. yes, corporate earnings will probably get hit this quarter. we are expecting it. there's a low bar to meet already. but then you go into the

christmas season and you are going to see things pick up because america feels good about america. people are going to spend money. liz: okay. by the way, she feels good too. the female consumer. >> i got more. liz: quick, sarge. >> this is how we fix the yield curve another way. get the treasury involved. i want them to tax foreign investment on the long end of the curve. the five year through the ten year through the 30 year. on a 25 basis point, go to a full point. get these guys out of our market. i know we want them but get them out of our market and fix that curve. liz: we will see if anybody in d.c. is listening on that. good to see you guys. we have been talking about walmart's win. with the closing bell ringing in 38 minutes, america's biggest retail name knocked it out of the park. does that mean the rest of the retailers out there are still succeeding amid the trump trade war? the ceo of the retail industry leaders association is about to answer that very simply and exclusively in just moments.

and a barely $1 billion market cap cloud software company called pivotal is having a gangbuster final hour of trade. pivotal is spiking 68% right now on news that vm ware is making a move to purchase the company. they want to buy it for 15 bucks. pivotal is at $14.01 right now. cloud applications and networking giant vm ware is taking a bit of a hit, down 7% or $10.79. this perhaps may be on what appears to be a little bit of a pricing play. important to note, dell technologies is a majority shareholder of both these companies. dell is down today 4.25%. that shows how much competition there is to grow all things cloud. how did vm ware go from just a few employees years ago to a $16 billion silicon valley behemoth today? a fox business exclusive. pat gelsinger is the man who is

doing it. from growing up on a pennsylvania farm to milking cows to being named by glassdoor as the 2019 best ceo in america. he's my newest guest on my everyone talks to liz podcast. wait until you hear his take on artificial intelligence and the swipe he takes at tesla's elon musk, who says a.i. could become more dangerous than nuclear warheads. download everyone talks to liz on apple and google podcasts. "the claman countdown" will be right back. the dow is still up 74 points. the songwriting process. oh, here we go. i know i can't play an instrument, but this... this is my forte. obviously, for auto insurance, we've got the wheel route. obviously. retirement, we're going with a long-term play. makes sense. pet insurance, wait, let me guess... flea flicker. yes! how'd you know?

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liz: well, this morning, china was not happy. in fact, talking about some fighting words. this morning, the chinese calling the u.s. tariffs a quote, violation of accords. we are talking about the ones that are supposed to be imposed september 1st, right. the chinese are saying that is a

violation if they impose them, because they had all kinds of accords reached by both president donald trump and xi jinping, and now china says we're thinking about retaliation. here in the u.s., though, retail sales which depend a lot on materials and product coming from china, appear to be chugging along so far just fine. retail sales for the month of july jumped .7% but what happens come september 1st? even though president trump has decided to delay 10% tariffs on some items that were slated to take effect next month. our next guest is head of the trade association that represents some of the largest and most successful retail names seen on your screen in the u.s. lowe's, best buy, dollar general, walmart, target, everybody and smaller names, too. brian dodge joining us in a fox business exclusive. what are some of the bigger known names or lesser names, what do they feel or talk to you about september 1st? >> i think we are thrilled the

announcement today of .7%, really strong july, but that's backward looking. we are looking to september and really deeply concerned about the head winds that can be created by all these tariffs on all these products coming from china. we were really happy yesterday there were some products that were delayed past the holiday shopping season but by and large, apparel, footwear, home goods, common fall items like football cleats will cost more starting september 1. that's concerning to us. liz: it looked like a few items were omitted from what is supposed to happen when it rains down on september 1st. everything from consumer electronics, i keep bringing up nativity scenes because that is sort of the christmas thing that people need to buy and they saw those more expensive, that would be a little disconcerting certainly. but you need to tell me, if you had president trump's ear right now, what would you say to him? >> i would say look at july, the consumer was robust in their activity. they clearly feel good about their jobs. they feel like they've got money

in their pocket to spend. but the moment the products start costing more, there's going to be a pullback by the consumer. that is not good. we obviously are seeing a lot of volatility in the marketplace right now, and the good in the economy is consumer driven. we cannot interrupt that. liz: okay. but the president would say you know, the chinese are paying the tariffs. what do you say to that? >> i would disagree. american consumers are paying the tariffs. sadly, they are going to be paying more on september 1st and even more on december 15th if we don't reach an agreement that removes these tariffs. liz: brian, keep us posted on what your members are saying about all that's happening because it's a very fluid situation. thank you so much for joining us. >> thanks for having me. liz: closing bell, 31 minutes away. dow is up 66 points. up next, fans of indoor cycling chain flywheel crying in their sweat-drenched towels. the shocking news of some closures across the country. and live with the trump trade adviser peter navarro.

his reaction to the "wall street journal" headline, the navarro recession part 2. that when "the claman countdown" returns. 2,000 fence posts. 900 acres. 48 bales. all before lunch, which we caught last saturday. we earn our scars. we wear our work ethic. we work until the work's done. and when it is, a few hours of shuteye to rest up for tomorrow, the day we'll finally get something done. ( ♪ )

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liz: the navarro recession part 2. that is the top headline on today's "wall street journal" editorial page. the "journal" editorial board pinning yesterday's stock sell-off and screaming recession warning from the bond market squarely on president trump's man on trade, peter navarro. this as reports out today show that while consumer spending remains very strong, right, we showed you retail sales, manufacturing productivity tumbled at the fastest pace in nearly two years in the second quarter. as germany and the united

kingdom economies contracted in q2, here to react to the accusation, his hawkish trade stance against china is pushing the world toward recession, white house trade adviser peter navarro. peter, the "wall street journal" editorial board says you and quote, president trump spent wednesday blaming the federal reserve for the market meltdown. quote, we suppose any scapegoat will do in a storm like this, but the key to avoiding the worst, they say, is to restore a sense of policy calm, call a tariff truce with china, europe and the rest of the world. peter, the "journal" is not the only one. other market participants and business leaders says your hawkish stance toward china and advice to the president is the tripwire for yesterday's 800 point selloff. what do you say about that? >> another love letter from the "wall street journal." liz, i will worry about the "wall street journal" when the main street journal starts criticizing me for the manufacturing. we are over half a million

manufacturing jobs in this administration created, over six million new jobs, compared to the last administration, they lost 200,000 manufacturing jobs. we're on track -- let's talk about james bullard because i think james bullard is probably my best witness against the "wall street journal." he indicated that we have a sound economy, that we have a good outlook moving forward. he also in my judgment, listening to him carefully between the lines, virtually guaranteed a rate cut -- liz: not 50 basis points, though. he wouldn't go that far. >> he was noncommittal about that. he was very careful to say that he didn't want to get ahead of the other governors on the board. the one thing that i think was interesting, though, when he was talking about a flight to safety, one of the things i think that the federal reserve needs to acknowledge is this dynamic. when you have u.s. interest rates several hundred basis points above europe, what we're seeing is not only a flight to

safety, we're seeing speculators basically borrow euros and buy dollars through the bond market and make money on a carry trade like they used to when they were buying the yen, borrowing the yen and buying the option dollar. so that kind of thing is not good for this economy. but listening to bullard, i thought was very very encouraging. he indicated, signaled very strongly that there will be more rate cuts -- the most important thing i think he said was we are far, far away from tripping the fed's inflation target because there's plenty of room to run. liz: he also said he's not ready to call a recession on the horizon for the united states, which brings us -- >> exactly. here's the point. liz: you can't have it both ways, peter. why would we then have a rate cut that is bigger than expected? >> let me give it to you both ways. the issue has never been for us

here at the white house a rate cut to stave off a recession. that's not it at all. here's what it is. we grew in q2 at 2.1%. we should have grown at 3%. the reason why we didn't was the federal reserve raised rates too far, too fast. now, what did that do? basically it cut, depressed investment directly so we lost a little bit in the investment part, and we lost two-thirds of a point indirectly through a currency effect, through reduced exports and remember, after powell raised rates by a hundred basis points, the dollar went up by almost 10% even as the chinese yuan was going down like 12%. so again, the point of the 50 basis point cut is not to avoid a recession, it's to make a strong economy stronger and it's to end this arbitrage that's going on where our interest rates are so much higher than the rest of the world that it

creates this carry trade like effect. billions for wall street but it doesn't create one new job or new factory here in the u.s. liz: well, if we are looking at retailers since the tariffs, nordstrom down 50%, we have a lot of red on the screen there. they have not been helped, certainly, pie tby the tariffs. >> come on now, liz. liz: peter -- >> walmart was off the charts. liz: absolutely. because they make less expensive products. >> retail sales today were off the charts. what we saw in the q2 numbers, i always go back to the data. what we saw in the consumption numbers was we were way above expectations in terms of consumption contribution to growth and we see that going forward. so we got to sort out the amazon effect on bricks and mortar retailers. liz: true. absolutely. >> the effect of purchasing power. look, i'm seeing going into the third quarter now based on what we have seen so far a very solid growth rate which again augers for a bull market.

i said this repeatedly. if we simply get the fed to stop holding the trump economy down and pass the u.s. mexico canada agreement, we will get 30,000 on the dow. liz: i'm glad you said that you like to go back to the data. i love facts, too. you guys have consistently insisted that, as has the president, that china is paying for the tariffs. we just had a man -- hold on -- we just had a man named arnold kamler, owner of kent international, tell us monday he just got socked with a tariff bill, i want you to listen, then we can react. >> on a million dollar shipment that comes in, which is an average weekly shipment for us, we are paying $360,000 of import duty and we need to pay that to u.s. customs within a couple weeks. so if there's somebody else wants to pay for it let me know but we're paying for it. liz: he's not chinese. he's from paramus, new jersey. you cannot stand there and tell our viewers the world and the

american companies are not paying the tariffs. >> well, let me say two things. first of all, when we've had tariffs now on the first $250 billion of chinese imports for over a year now, we have seen absolutely no inflation. china has borne the entire burden of those tariffs in a number of ways, through slashing their prices, through slashing the value of their currency and through hemorrhaging of the supply chain out of china. liz: i agree. they're hurting. but are you saying that this guy in paramus, new jersey is lying? he's paying huge amounts. >> going forward, liz, what i would urge you to do is to play a clip that's on the fox business site which basically explains chapter and verse how american companies should and are able to completely avoid the impact of the tariffs and shift

those to the chinese. what you can't do, liz, and it's unfair to simply hit us with one anecdote and work the whole argument based on that. liz: i've got a lot of businesses. but okay. so let's just say you're right. >> i've got a lot of data. hang on. liz: let me quickly ask you because the president said no tariffs on at least some of the items that were supposed to be taxed starting september 1st. were you for or against that idea of him backing away from imposing tariffs on some of those goods? >> i was absolutely for that. and here's why. this is important to know. first of all, we built some good will with the chinese. but equally important, this is a president who is great at listening to stake holders, whether it be business executives, union leaders or anyone in between. here's what we heard, liz. most of the products that are going to be on sale in stores during the holidays have already been contracted for by these businesses like best buy and the like.

and these contracts were in dollars, which means that their hands were tied in terms of being able to negotiate with the chinese to shift the burden to china. the second thing we heard from everybody is that just give us until december 15th and we will continue to do what we're doing which is to move the supply chain, sourcing and production out of china. that's ultimately where the pain is falling on china. it's ultimately why we are going to get a good deal out of china, if we get a good deal, because they're losing their supply chains. liz: guess what? the dow just hit a session high while you were talking. the nasdaq -- >> between james bullard and i, we are presenting a very bullish picture here. everything's going great. liz: dow is up 142. our thanks to peter navarro. >> amen to that. liz: come back again. we are coming right back. don't go away.

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liz: not happy with this news. "the claman countdown" has obtained an e-mail to customers of the indoor cycling studios four los angeles locations saying we are sad to announce that our los angeles studios will be officially closing on thursday, august 29th. the e-mail gave no reason for the closures but fox business has now learned it's not just the l.a. studios going dark. 25% of flywheel's 40 plus studios will close their doors in just two weeks. scottsdale, arizona, walnut creek in silicon valley, austin texas, among 11 locations to be shuttered. sources inside the company telling us they are simply closing underperforming locations, that all customers will get full refunds or transfer their credits to another studio and that the company is still moving forward

with its home bike system. competition there is fierce. pelaton which has filed for an initial public offering, is suing flywheel for patent infringement of its at-home bike technology. that suit is still pending. time for charlie gasparino and the drama at ge following allegations from prominent madoff whistleblower who is accusing the company of masking financial problems and calls it meritless. ge's ceo larry culp now responding. charlie gasparino has it. >> well, he's responding that the whistleblower is full of it, that he ignored facts, he did not check with the company before publishing this. often analysts don't check with the company. it's more of a reporter's job to do that. it's interesting, if you read between the lines, he also claims that markopolis is doing this to drive down the stock and is working for a hedge fund that's looking to short the

stock. that is true, by the way. i'm not saying there's anything wrong with that. paps part that's part of the market. shorts perform a value able market service. they get negative information out there so the market can ingest both the positive stuff that the company generally puts out and the negative stuff, and the stock price reflects both and you know, stock prices are essentially an argument between the longs and the shorts. that's what we have going on in the dow jones industrial average right now, over the trump trade policy. we got it going on with ge. the interesting thing here is this. he's a smart guy. that doesn't mean just because he calls one, he calls them all. we should point out bill ackman had a lot of credibility going into his herbalife short, saying that was a pyramid scheme because he called some stuff during the financial crisis, including that the major bond insurers were in trouble and he was right about that. but going into herbalife, that gave him a lot of credibility and it took down the stock a lot but his call was absolutely

wrong. it wasn't a pyramid scheme. the government didn't shut it down. the company is doing pretty good, if you look at the financials. just telling you, if you are right once, particularly on a big thing like on madoff, that doesn't mean you're right here. i will say this, though. here's the problem i think ge has. it does have a credibility problem in the markets. because, because it missed its accounting on these insurance liabilities in the past, and it wasn't just by a little. it was by a lot. the market has taken everything you can see seriously. liz: biggest drop in a decade. >> we are down to $7 a share again. listen, i can't get involved in this. liz: $8. >> i have no idea where this thing is going. if he's right, we will see clawbacks of stock and -- excuse me, of payments going back to the former ceo. we are going to see indictments of company officials if he's right. just remember that. what he's saying is fraud on a

massive scale. liz: charlie gasparino. ge at $8 a share. we are coming right back. ast? comcast business givesst? you high speed internet. we also have solutions like powerful wifi that gives your entire business more coverage and automatic internet backup that can keep your business running. and it all starts with our gig-speed network. so give us 10 minutes. if we can't offer you faster speed or better savings than your current internet service, we'll give you 300 dollars for your time. llow to get your comcast business 10 minute advantage. comcast business. ... you'll see what a fair price is and you can connect with a truecar certified dealer. now you're even smarter. this is truecar.

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you need decision tech. only from fidelity. ♪ liz: the transports cannot get into the green but the dow, s&p and nasdaq are now to the upside although the nasdaq is just flat and dow moments ago hitting session highs. remember at this time yesterday we are about to it and 800-point drop and were joined by wealth management portfolio manager, jordan. today is another day, what are you doing? >> i think the people are too afraid right now. frankly, i just watched your interview with peter navarro and everyone wants to buy our bonds but that's the story. everyone around the world wants to buy stocks, bonds, real estate so there's fear about the

recession coming but what you see happening is to borrow someone else's words, the state of the union is strong and this is what is happening. people want our comedies but what's important is i don't talk to market up. i'm selective. the companies are investing have to pass so many different screenings. revenue growth, arching growth so you can see a great company today, ge is yesterday's compa company. liz: what are today's companies? >> a lot in technology but the problem with technology is it's a little too overvalued so were we currently insurance companies, progressives want to leave and look at starbucks people joke could there be a starbucks on every corner - there can be. they're all crowded. liz: there is one in my house. >> there you go. it's about quality and not looking over your shoulders and worrying about the recession but if you invest in high-quality companies it does not mean it's a buy and hold but by and keep upgrading.

my inventory of companies also have to be going up. you want companies that are healthy and i give you the environment healthy. liz, don't get too nervous. liz: you got it. i'll do it. jordan, market is losing a touch screen but still green on the screen for the dow. >> up and down as liz is mixed at the close withtors digesting the trade uncertainty but it's always out there with a strong retail sales we thought this morning moving composite to negative territory that the date and the major averages but the dow closes it up higher and up by nearly triple digits settling in - there you go. like they hurt us. settling in by a point by the upside, also down triple digits at another point. >> after yesterday. >> will take anything. s&p 500 in the rain by seven points and the nasdaq in the red. that is we