talking about impeachment. they want to acceler the impeachment process. how do we get things done in congress with that as a background. that is what we got a mammoth selloff. right now we're down 478. neil, it is yours. neil: i can leave now. that wraps it up. uite right the selloff is on. big-time, the dow already off about 5%. close to 5% from the highs. a little less than that from now. 10% would be correction. 20% bringings you a bear market. unthinkable what happens in the last few days,e start out in the fourth quarter, wiping out all gains we had in the third quarter. there are a lot of reasons for this stuart nicely outlined some of them. there is maybe a growing fear the economy is at a point not growing but reversing. we're seeing factory floor is

seeing retraction around the country. born out nationally and philadelphia and new york, chicago. we had a private payroll report that looked pretty good on the surface. it confirms what is a slowing trend. something in excess of 200,000 private sector jobs on average being gained each month in the latest period. a little more 120, 130,000. the pace slowing there. this is the same week we had forever 21, a big clothing retailer, following on the heels of others looking at outright bankruptcy filing or closing some stores. the pace there running 40% of where it was a yeargo. none of this means the economy is in question. the fact that by and large the fundamentals as they like to say in washington are sound. president seizing on something stuart just did, this ongoing impeachment mess is adding another wrinkle of uncertainty to markets. the who the president prefers

him staying in power, than him or anyone else, elizabeth warren included, taking that power. we have all of this going on. most of the dow 30 stocks, johnson & johnson is the big exception, this tells you about a perverse read that the markets are giving. johnson & johnson paying out a 20 million-dollar legal settlement to some ohio counties on opioid settlement issue. i hazard to guess some were fearing legal costs were much, much higher. or settlement fees were much higher. this doesn't get j&j out of the woods. it is only a 20 million-dollar settlement. it doesn't take away the fact that opioid settlements will continue at a brisk pace, in that sector but maybe not the onerous terms once envisioned. here is where we be. good thing we have the clear graphics to put them in perspective. there is worry about the

uncertainty of the economy that the manufacturing floor is contracting a little bit here. manufacturers are worried about it. indecision on part of big bosses purchasing managers, folks who buy stuff for factories less inclined to buy them, citing uncertainty not so much about impeachment, about the health of the overall economy. keep if mind we just had a report out, less than 12 hours ago, overnight in asia, extended in europe about the robustness of that recovery. that this is worldwide phenomena , factories are contracting. i want to put this in perspective with the losses we've seen over the last couple days, as steep as they are in percentage terms. they are relatively low, a long way from even a correction. get the read on it right now what individual investors should be doing as they're getting a little anxious here. that typically happens. to trading with coty.com editor,

former hedge fund manager cody willard. cody, i'm sure your phone rings off the hook, what do you tell them. >> i'm a present hedge fund manager, not former -- neil: thinking maybe you should be a former? >> no. we're on the growth phase of this. just launched in january. neil: breakout. >> the real thing, that if you are worried about the market, if you're losing sleep at night you probably need to take a little bit off. last time i was on here talk about being cautious, the market has come down quite a bit since i was on last time. i'm not aggressive but cautious. neil: who do you take it from, the high-flyers are, what do you do? >> at this point i put money back to work. i bought netflix. i own tesla, one of my largest positions.

slack. i'm buying some of the highest flyingdown trodden stocks out there right now. they were formerly high flying. neil: some have the stomach to for this as some are heading out. how do you know the opportunities don't come cheaper in the days ahead. >> you don't, you don't. you can't go in there i'm buying bottom, things are going straight up. you have to give yourself a little room. if you're aggressive frying to buy this you probably already bought too much. you have got to be a little bit cautious but at the meim when you have a 500 point selloff, a bunch of headlines you are you're not sure what is causing the selloff -- neil: that is a big deal. i'm not minimizing it but in percentage terms we had something like on that october of 1987 that represented a quarter of the dow's value. today is a little more than 1.8%. i'm not minimizing it but should people freak out over something

percentage terms isn't a huge deal? it's a jarring deal but -- >> no. there are a lot of people out there been in the ipo sector and all ipos are down, 30, 50, 70%. high flying cloud stocks are down 30, 40, 50%. there is outright bear market in a lot of individual stocks themselves. the markets are masking that. look, you don't have to be all in all out. you can put a little bit to work. neil: depend on your age. if you're a young person i can ride this out, i have a lot of years. my age, long term is lunch tomorrow. how do you play that. >> you're still upwardly mobile. that is a big factor in all of that. neil: your disposition counts, right? >> right. not just your age. what is your upward mobility? are you beginning at very lucrative career that will pay you millions of dollars over the next 20, 30 years. you should be more aggressive. neil: looking at two kids going

to college, you don't know which end is up? >> if that is the case, stay with the long term. put a little money to work when the markets are week when they are today. take a little off when they're through the roof. neil: we'll make it easy for you this week. good thing we got all this look here, the red indicate right now we're selling off. the green would indicate we're doing very well. a lot of you written me, neil, i'm color-blind. look at the arrow. that is down. if it is up we're going up. of the 11 s&p 500 sectors, i should point out they're all down. they're all down. real estate is off half a percent. utilities down half a percent. there is no rush to flight to quality there. telecommunications down 1 1/2. health care down 1 1/2%. information technology down close to two. but industrials not surprisingly, those most economically sensitive to what is going on. they're down the most, about

2 1/2%. this isn't bible. this can change. as cody can tell you it often does but in that environment where folks are uncertain they do sell first and they ask questions later. this could be as well an opportunity to pounce on something that you believe you've gotten very rich, you have done okay. you might as well take some money off the table, even if you don't want to invest in something else, you're still up on premier names. maybe a lot of people are doing that. there is another wrinkle here. not just the impeachment stuff. we heard a good deal about that. we have a trade situation on the table. i'm not talking about one with china might or might not happen anytime soon, if at all. i talk about the one we scored, president of leaders of canada, united states, signed off close to a year ago still far from a done deal and nancy pelosi indicated, this is part of her remarks that i was interested in, not so much the impeachment stuff, she didn't sound optimistic on this front. i think added to that selling pressure. take a look.

>> [inaudible]. we go back and forth over this break the stature of, between the two -- and our negotiators are speaking clarification and where there is room for cooperation, where we may have more challenges but it is going in a forward direction. neil: going in a forward direction but what she seemed to indicate certain things have to be changed. a lot of people interpreted that i thought we essentially had the broad parameters agreed upon but minor adjustments have to be made. a number of democrats want this to go back to the canadians, mexicans, we open up the agreement per se. that is something administration is not keen on doing. the canadians are not keen on doing it and mexicans are not keen on doing it. they want to sign this off. read from chamber of commerce

vice president neil bradley, accepting what she says at face value it is not a done deal. i can understand anxiety over the china thing happening this almost looked like it was, maybe it's not, what do you think? >> it is not a done deal yet, that is the problem. we're optimistic this will get done, and it will get de before thanksgiving but as you're seeing in the stock market today we can't afford to take anything for granted. we're pushing lawmakers while home over recess this week and next week to meet with local businesses and farmers so they understand exactly how important usmca is to the economy. if we want to do something about those warning signs we're seeing in the economy we have to restore confidence. one of the best things our elected officials can do is get this agreement enacted. neil: there is a big hullabaloo made of this contraction going on in the manufacturing sector. we're back to levels we were

right at the height of the melt down, early months of the obama administration. some people are looking at that to say, all right, with that happening, with retail slowing down a little bit and retailers, some of them like forever 21 going belly-up, that the base seems to pick up on the downside. others step way, way back. well it is still a pretty solid economy. where is the chamber on this? where are you on this? >> it is solid but it is slowing. if you look at employment and wages, right? it's a great story. record generational low unemployment. wages rising over 3%. but if you look at business investment, if you look at exports, if you look at manufacturing sector, we're seeing downturns. what we want to prevent happen something that slowdown happening on the business side from reaching the consumer side. one of the best ways to do that is for congress and the administration to take steps to boost confidence. that is a infrastructure bill. that getting usmca passed.

de-escalation of the tension with china. neil: you're not getting a infrastructure bill. >> hope springs eye ternnal. neil: they're going full throttle in impeachment hearings matter of days, weeks. the argument they can walk and chew gum at the same time. i have yet to see that, but what do you think? >> no member of congress, democrat or republican, no president wants to say as the economy is falling they were too busy doing other things to take common sense steps to boost the economy. next year everyone is full in the election mode, question voters are asking, what are you doing to boost this economy? i don't think any of them, listen we got distracted by a lot of other things and couldn't get it done. neil: a lot of your members are distracted by other things, men and women running these companies or ceos and crunching numbers, deciding on capital spending whether they're going to invest in the future, normally if you have any concerns about that you keep

your powder dry, you don't do that. it can become a self-fulfilling prophecy. you get nervous, other folks get nervous, folks and customers hear you're getting nervous, everyone kind of gets freaked out nervous, are you worried about that? >> that is exactly what we're worried about, neil. we've seen that in business investment. the most important thing is to boost confidence. policymakers need to show they are governing even distracted by impeachment. they need to get a few things done. they will restore confidence in the market. restore confidence in investment and that is how we prevent recession from happening. neil: neil bradley, thank you very much. for the president this comes at an odd time, whether you want to blame him, for what is going on in the markets he says impeach has a lot to do with it and the federal reserve. this is the key market, that we've been on a market tear, economic tear, picked up steam over last couple years he has been president of the united states. you wouldn't want to risk throwing that out. if the economic argument goes or

looks like it has gotten dinged a little bit, is that a problem for the white house? all of sudden how do you posit the stumbling economy, certainly manufacturing part of it right now? let's get the read from the white house and where exactly all of this is going from blake burman. blake, i know that the president is meeting with his counterpart, leader of finland. >> yeah. neil: in the q&a likely to come, there will be a lot of talk about not only impeachment but sudden and unexpected reversal going on in the economy. what are you hearing? reporter: couple different times we'll hear from president trump today, neil. just shortly from now we expect, this will be in the oval office with with the finnish president and also press conference between the two. we're getting his initial read today as what is happening at the corner of wall and broad. you hit on it, neil. interesting the shift from the president today because yesterday as the markets were

selling off he went after his usual punching bag, chair of federal reserve jay powell. as all of this today was unfolding, nancy pelosi and adam schiff were up on capitol hill giving a press conference with the latest on the potential impeachment proceedings going forward and this was the reaction from the president as that was playing out. quote, all of this impeachment nonsense which is going nowhere is driving the stock market and your 401(k)s down but this is actly what the democrats want to do. they are willing to hurt the country with only the 2020 election in mind. so potentially we hear more from the president. by the way, as far as it relates to this meeting with the finnish president, one of the focuses is going to be 5g, neil. as pointed out by administration officials yesterday nokia is headquartered in finland and part of the administration's argument as it has been made as it relates to 5g making sure

european countries, really all across the world don't get steered toward the direction of huawei and zte. a senior administration official says that is part of the discussions. when you talk about finland, its neighboring country, russia. neil. neil: what i'm amazed at how perfectly you pronounced the finland leader's name. i was going to say the guy that heads finland. there you go. reporter: we've been there. this is the first tame since the two were in helsinki. i think there was -- neil: i missed out on it. blake, thank you my friend, steering us through the political side of it. what is interesting, guys, a day like this, it is all about psychology. markets move just like you do. sometimes they can suddenly funs on negative stuff they used to

ignore. the they can pounce on stuff that you take for granted. impeachment in the background few in the markets expect it to go anywhere. then you have what is not expected like what happened on manufacturing front. you hear australia cut interest rates again. that is the third cut this year. that is relatively strong economy but keeps cutting rates. gm strike no hint after deal and affected 6,000 more jobs in mexico. you to the news japan raised the its own sales tax to improve funding for elderly and their own entitlement programs that are underfunded, all of sudden stuff you used to ignore, i have more to be depressed about. they sort this out eventually and interim they sell first and ask questions later. we're not at the ask the questions part. we're down at session lows. down about 536 points. almost the exact same point drop we had on october 19th,

1987. that was then a quarter of dow's value. today, not even 2%. stay with us. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ do you want me to go first or do you want to go first, brea? you can go first. audible reintroduced this whole world to me. so many great stories from amazing people. makes me wanna be better. to connect with stories that i'm listening to- that's inspiration. with audible originals, there's something for almost every taste in there. everything you ever wanted to hear. our ability to empathize through these stories can be transformational. it's my own thing that i can do for me. download audible and start listening today.

neil: all right, in and out of session lows right now. dow 30 stocks, only one, only one is green. that would be johnson & johnson but for the weirdest reasons, folks but this is the twisted kind of world we live in. it is paying opioid settlement in ohio counties for a little more than 20 million. $20.4 million. that does not escape liability going forward in other towns and communities, states. it is a lot less than most analysts thought. it doesn't mean that it won't cost johnson & johnson a lot of money but the perception on the wall and broad community not as bad as we thought. everything else is worse than we thought. punishing good names, bad names the like. industrials, most exposed to the economy here, everywhere, in the

manufacturing contraction you hear so much about. that has been overwhelming theme. why the good, bad, everyone in between, sort of getting taken up in a selling storm. again we have the dow down from its highs, reached just in the end of july, about four 1/2 to 5%. 10% would constitute a correction. 20% from those highs you're in a bear market. so, anyone's guess where we go right now. putting it in perspective here. you have to look at numbers in terms of percentages but in terms of percentages, it is a serious hit, i'm not minimizing it, it is in the scheme of things, nothing like the kind of selloff that would get the market's attention. we lost a quarter of dow's value today like in '87. you would be down thousands of points more. i'm trying real hard, folks. trying to put half full glass. another guy that does that legally, explains it in english all the time, senior judicial analyst judge andrew napolitano. of course juggling lots of

things today including his hit show on our website, that is all the rage. let me ask but the rage that's in the market first before i goat gett to j&j because i have questions about that. the notion of impeachment, it is noise for the markets. many don't think it will amount to anything. anything can happen. listening to nancy pelosi and schiff, i got the sense they're going full throttle with this. what do you make of it? >> it appears they're going full throttle. it appears they believe they have a live wire here. they have a real basis for impeachment. neil: do they? >> in my opinion they do however there is issue whether or not this is impeachment inquiry or whether this is oversight inquery. at the present time it buildings an oversight inquiry. what is the difference? the oversight inquiry can be resisted by all kinds of privileges. i talked to the secretary of

state. there is constitutional privilege. i talked to my lawyer. there is privilege there. you can't get white house documents we can delay this for months. if there is impeachment inquiry the executive branch has no privileges, the congress can get whatever it wants t it has absolute right under constitution to commence impeachment inquiry. >> neil: even with a separation of powers issue, what secretary pompeo is saying? >> what secretary pompeo is correct under the present situation there is no vote to go forward. there has been an instruction from the speaker to various committee chairs to use their committee authorities to begin to gather information. neil: if you get a vote across the house in this case you can do whatever they want? >> for example, if they subpoena rudy giuliani this afternoon. i'm working for the president. i'm his lawyer. i will not tell you what they told me. if they have that vote, he has

no privileges which is against self-incrimination. woe have to answer all the questions. same with the people in the state department, for whom secretary pompeo has been trying to protect. he would be unable to protect them once this vote takes place. why hasn't t vote taken place? that is political issue. as bret baier pointed out a few minutes ago, mrs. pelosi does not want to force moderate democrats from districts that president trump won in 2016 to go on record as being in favor of impeachment because that might harm them in their re-election. neil: you would distinguish that you're not in favor of impeachment as much as starting the process? >> correct. neil: you're probably right. to their voters in their districts that would look like the same? >> correct. it is not the same. it is authorizing an inquiry about impeachment. average voters could be portrayed by opponents they were in favor of impeachment before the evidence was even in. that is what they're worried

about. until that vote occurs the president has a lot of tools with which to resist. neil: johnson & johnson then? >> yes. looking at the market, everything is red except for j&j. neil: except j&j. >> only in america you agree blow $25 million to counties in ohio and stay green. neil: the argument i heard it could be a lot more. some feared it would be 40, 50, million dollars. >> this is the one case in the united states where all the manufacturers of these drugs to which people have gotten addicted by virtue of the over prescription by their physician is a defendant, except for perdue. purdue pharma is not a defendant. they're out of the case. neil: they are making a large settlement. >> their settlement was before the case. so they're not settling with these two ohio counties.

very interesting constitutional issue. state of ohio tried to stop the counties from suing. they saw the dollar signs. it wanted dollar signs rather than the two counties. looks like the money is going to the two counties. their theory, we have a lot of people on financial assistance. you raised the cost of that financial assistance because you got them addicted to your drugs. we want to be reimbursed. neil: that's wild, really wild. judge, thank you very, very much. not playing off the seriousness of this, the fact of the matter is in prior selloffs drugmakers have done very well. in other words, the argument you need them no matter what is happening you're in the middle of a selloff you need them as well. that whole line might play out today. it is not extending to big insurance players and rest like unitedhealthcare. it is fascinating side issue here. a lot of people asking where is the money going. it is not rushing into gold. in fact oil, the case, the idea that the economy is slowing

down. it is hurting oil, hurting gold, hurting commodities and some other things. where do you think it is going? i'm going to tell you right after this. ♪ ♪

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once again, that's... and financing is available for qualified purchasers. reporter: i'm gerri willis on the floor of the new york stock exchange. we have a deep selloff here, the worst in six weeks as traders and investors struggle to digest a raft of headlines, much of

them negative, shaving 200 points from the dow, the worst performance on the, performers on the industrial average include boeing, hurting on headlines that are full-on tariff war brewing for airlines as wto gives approvals for airbus. apple, goldman sachss as you can see here. the others are consumer stocks that is interesting in the economy right now. goldman part of a broad selloff in financials after charles schwab slashed commissions to zero. probably get rate cuts. that is not good for banks. winners down to a single name. kneel talked about this, johnson & johnson on word settling opioid claims by two ohio counties agreeing to pay 20 million, that such lower than other settlements. worst performing dow, intel. winners include paychex, lennar,

charter communications. paychex and lennar on nasdaq. both out with earnings reports that beat estimates. and i just want to mention one thing, spotify a 52-week low. it is performing so badly that analysts are ditching sell ratings on the stock. amazing, back to you. neil: gerri, thank you very much. anything to do with strength on economy, direction of the economy, concerned about amanufacturing slow down you avoid automakers like the playing as if gm needs that. it already lost a billion dollars on the ongoing uaw strike. grady trimble is outside after buick gmc dealership in illinois with latest from there. reporter: neil, surprisingly gm sales doing the best out of detroit three and trucks like this one driving sales. if you look at all of the detroit three, gm seeing increase of 6% compared to this time last year. ford is down 5%.

fiat chrysler is flat. when you look at stocks, you remember the manufacturing slowdown. they're not responding accordingly because of trade fears. separately we're talking about buying cars, one trend the case for several years, longer car loans. 1/3 of americans take out loans that are longer than six years. that is becoming sort of more and more common. woody is the dealer here buick gmc dealer, longer loans good for the dealer. what about for the customer? >> good for both. keeps the metal running and automobiles and trucks built better than they ever been. people have longevity knowing the truck will last. they make the payment affordable to them. they have choices. no prepayment penalties. 0%. they can walk out every time. every payment you make is right to equity. reporter: thanks, woody. you mentioned not really as common in this area more affluent area, some other

dealerships might see more of that than they are at this specific dealership, neil? neil: thank you very much, grady. the president is saying that impeachment push is hurting the market as well. jackie deangelis is with me on that. much more. jackie. reporter: good afternoon to you, neil. a lot of reasons you're seeing a drop today. impeachment is certainly one of them. if you look at the president's tweets it looks like things are a little unhinged. it is disconcerting. that is one piece of it. we had the manufacturing number yesterday. weak adp ahead of jobs report on friday. oil inventories increasing, show lack of demand, there could be slower growth, all pressures coming in october, which particularly a time historically we see big drops in the market, not always. but we have seen them. people are a little worried. look at the dollar index, 99 and change. you know that our exports are more expensive to foreign countries. neil: that's right. >> you worry where we're going with this. what is the fed going to do?

they have two more chances potentially to cut. maybe jerome powell will, maybe he won't at this point. as we head into the end of the year you have china trade hanging in the balance, usmca is still out there, violence in hong kong, to your initial question impeachment. how is an investor to operate? neil: what else can you pounce on? jackie, thank you very, very much. there are interesting developments. gold was suddenly moving. now it is. that is interesting in itself, you look what is happening there, what is happening with silver and what is happening with platinum and what is happening with palladium. i'm not saying they're pouring into the invests like gangbusters. what they are doing is sort of hedging their bets here. that could be a constructive sign. it is not the market quitting on itself. investors saying the to hell with any option here. that could be interesting because as jackie outlined here, if you're concerned about a slowing economy, inflationary hedge you get from gold or some

other commodities is not so great. but if you're looking for an alternative investment or safe place to park cash while you're waiting this out, and there are no signs of inflation, maybe it is a hedge. it is a weird kind of a logic to go into some of these commodities here. but the betting seems to be that it is just either temporary thing. a lot of investors will tell you, a lot of professionals and brokerage firms not really keen on gold or palladium which is key in the auto industry for catalytic converters all this stuff, apparently under the hood of the car where the engine is, anyway that is the kind of stuff you would think would get in the way of some of those metals and the like doing as well as they are. they're not across the board wacky crazy but there is sort of a quasiflight to quality there. it is the only one we have because it is not happening in oil. it is not happening in a lot of agricultural commodities save a little bit of soybeans on hope

that the chinese score a deal to buy more soybeans. they haven't followed through on promises to do that by the way. so investors are grasp at straws wherever they can. i thought i would point that out because the gold thing is sort of a late development. all other stuff, palladium, platinum, tin, copper to a limited degree, look we're parking this for time being. we're not committing to it. right now the market will take whatever it can get. we'll have more after this.

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judge. again a lot of this was built on the sudden slowdown in the factory sector or the contraction back to levels we haven't seen since around june 2009. we're kind of the middle of the meltdown there. a lot of people are fearing it could be happening again. it is spreading over to consumer staples, those that might follow on heels of those in the future. those that cater to travelers, delta air lines, united airlines, those stocks down appreciably, anywhere from six to 7% as we speak. also some of the big retailers like kohl's and l brands, limited brands, down about 5.8, 5.9% respectively. oil is getting shellacked right now. the idea that a global slow down ensues, we saw in in asia. we saw that in europe. it is carrying over to the united states. anything hints of a slowdown, wallops obviously anything that caters to consumers who have to absorb that slowdown or not.

i did say whatever flight to quality we have, and that is a bit of a misnomer. i only posit it, money find as place in almost any market. sometimes it retreats from all markets. but little action there is happening in some pressures metals a little more precious today. not a lot more. gold up more than a percent. i've been telling you what is happening on the platinum front, palladium front, tin front, copper front. sometimes if you're concerned about equities you park your money there, someone will need them somewhere. it's a huge misnomer. i think it doesn't really pan out. we had a little after the '87 crash. it was short-lived because the expectation is that is going to be harbinger of manufacturing turn around f that is in doubt, it is unlikely that money will stay there we're monitoring the president of the united states. he is meeting with the prime minister, president i should say of finland. he is taking questions. we're monitoring that closely. he is calling this impeachment issue a waste of time, another witch-hunt. he had some other choice words

to say but suffice to say he is not happy about all of that or the direction this is going. we will keep an eye on that. keep an eye on him. keeping an eye on cryptocurrencies too because a lot of people look at this say you know if the dollar will be a big question mark and gyrating wildly and it is gyrating maybe cryptocurrencies are the way to go. we have confusion on that front given the legislative pile-on from both sides who fear it could be a dollar basher and not a good thing to this country. we'll see. cryptocurrency investing for dummies author is with us now. how do you see it playing out on alternative currencies, alternative invests, how do you see it? >> i want to take the long-term view of any asset, value of any asset is based on utility it

provides. i believe cryptocurrency is something that is alternative to the currencies and the way we actually manage money today. of course there is a lot of confusion going on globally. we have fear of recession. we have fear of the central banks. to me something that is the digital, something backed by one of t most revolutionary technologies out there, which is blockchain, is something a no-brainer i want to be involved in this industry at the moment. i know that now bitcoin has not been as high as it was a month ago but i'm not fearful. neil: so this pile-on i talk about, obviously all of the digital currency alternatives whatever you want to call them, got the attention of the world, particularly when facebook with libra. then of course a pile on facebook, i wonder if enthusiasts for this have been sort of reined in? how do you think it all plays

out? >> look so there is a lot of hype in cryptocurrency industry, like the wild wild west, like the dot-com bubble era, but the facebook thing was a good thing and bad thing for cryptocurrency as a whole. it was good because it brought back attention after bitcoin was dropped. everybody is skeptical of the crip cocurrency. it brought back attention and they are in excellent position to make cryptocurrency to be acceptable to everybody and bitcoin and other currencies are not. look at each of the cryptocurrencies is optimized for a different purpose. bitcoin is store of value like digital gold. we have other cryptocurrencies, some are shady. some are legit.

some work with regulators. some of them don't. some optimized for fast and cheap transactions, like bitcoin actually is slow and expensive. so i really recommend to anyone who is interested in the field to go and look at what is real. research, see what utility provides. and make investments on that. neil: that is wise advice. she is following cryptocurrencies. we're following corner of wall and broad on session lows. almost 600 points. down a little more than 2%. it is down except for johnson & johnson. don't praise j&j. it didn't have to pay out as much as some feared in the opioid settlement with some ohio counties. it built on fears yesterday on strength of the manufacturing sector and it could be reversing itself. that was seen in regions like

the philadelphia region, chicago region, the new york region where the kind of sentiment we're getting from purchasing managers is they're not purchasing as much. it might be a pavlovian response, if in doubt, don't spend anymore money but if they're being conservative with their investments and their customers start hearing that, their customers get similarly a little skiddish and certainly it extends to consumers who hear about this on shows like this. i should get a little more conservative myself. then you have the impeachment stuff. it's a big wild card not expected to result in this president's impeachment or resignation in the time being but this is the ajita and friction out there. people just don't know. when they don't know, they do what the wto and other organizations are saying they ratchet down their estimates and ratchet down their plans. the world trade organization already shaved a full percentage point of global gdp based on

trade fears and a whole lot of fears and people that purchase this stuff saying we're going to cool it on that stuff. so you the american investor just getting stuffed. after this.

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neil: all right. thank god for simple graphics that make it clean and clear. we're getting shellacked. 29 out of dow 30 stocks are down. when you look at some big names, when you have boeing down a little bit north of 11 bucks a share, play that out one issue after another, all that plays out on the fear there is contagion going on not only this country but across the globe slowing down and feeding on itself, that often happens but there is a silver lining on this that we're told the economic fundamentals are fine. the administration has been arguing that point. the president says this is built on needless fears by democrats pouncing on impeachment thing. yesterday he went after the federal reserve that put us in this predictment that has manufacturing reversing course. they're pointing to a lot of sell orders.

we have all the major averages down 5% from their highs. takes 10% to be a bear market. i'm not saying where anywhere near there, got close former a few months ago and reversed quickly. i should add such a thing as a safe haven, gold might be it, palladium might be it but that is bit. bonds are benefiting with the yield coming down precipitously. last time i looked at a 10-year note, it was 1.57%. that has been sliding on fears that the economy itself could be, could be stumbling. that could be overdone. charlie gasparino is talking to folks. what are you hearing. >> this is not impeachment. this is debate whether or not donald trump will be president over the next y which he will be. think about it. he needs to be convicted by

senate. that will not happen. take that i know what he said, but he's wrong. what this is debate over the economy and whether the tax cuts are, we got enough juice for the tax cuts to overweigh the negative impact on all of the administration's trade stuff, you know, thetuff with china. not just china, but nta, you name it. there is a, there is multiple uncertainties iolngrade -- neil: why do they festerow >> you remember the u.s. economy is like the spanish armada. it is hard to turn it. it doesn'turn qck. neil: right. >> it turns slow. this has been building. and so what happens is, the economy is not going to turn negative on a dime. it is not going to turn positive on a dime. this has been building slowly. what you have now are more and more evidence, much, you had the manufacturing number, you have some other numbers come out. that evidence is starting to show that the economy is slowly turning, you know, negative. now that doesn't mean we'll go into recession.

neil: one part of it is, right, manufacturing sector? >> yes but that often bleeds into consumers when manufacturers stop hiring. neil: we had the hits before. >> yes. neil: you have been richly rewarded buying into them. >> we had them before. that is why we're having debate the in market. no one can tell you, i don't think anybody is telling you we're going to into recession. that we'll have much more slower growth -- neil: what happens would be the natural course of history but not now. >> numbers don't say that the numbers are suggest that the spanish armada is turning, turning more negative. we're having a slowdown. if you have a slowdown in a election year, probably not a good thing for the incumbent president. that is usually a negative. stocks will trade off on that. so that is what the markets are signaling. it's a debate. there is nothing written in stone. only thing i can tell you, if anybody think this is is over, impeachment, worries, you know, they have not, they have not

read much on the markets. neil: yeah. they worry about things they think they can worry about. that is intangible at this point. >> it is not even that. you have republicans running the senate. it is impossible -- he will not get blown out. neil: we don't know. life is a mystery. so are you. >> by the way i hear pumpkin spiced latte futures are fine. neil: i hate you, i hate you with a passion. we'll have more after this. when you open a new account. just another reminder of the value you'll find at fidelity. open an account today.

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neil: all right. welcome back. the top of our second hour here on fbn. the graphics might be cleaner and fresher but they spell out a market that is tanking largely on concerns that factories across this country, the united states or the rest of the world, they are tanking, too. business is tanking for them, the business plans of purchasing managers, the folks who buy the stuff that we use are not inclined to buy it that much more. they are kind of hedging their bets, keeping their powder dry, whatever term you want to use, and that is affecting key big

manufacturing names that naturally dominate the dow jones 30 industrials. most of them are big multinational players and manufacturers in their own right and some of the more prominent among them are experiencing huge losses today in terms of percentage hits. it's also been pointed out to me that within the s&p 500, all 11 sectors down today. about a third of those issues are already at or near bear market territory. in other words, they have already come down 20% or so from their highs. the big players have not, of course. they disproportionately benefit the s&p 500, so like apple or microsoft weather the storm, can sort of mask that so the chiefs did disproportionately helping lift the sick indians here but the fact of the matter is those averages are taking it on the chin right now. the dow has lost about 900 plus points in the last two days of this always risky month and quarter. the s&p 500 about, you know, 4%,

5% or so. it's not a great start to this month or this quarter, and it is one that reminds us of prior periods where we have had big hits in the market, october of '87, the crash of '89, 1929 stock market crash, 2007 october meltdown that extended eve a year later into october of 2008. so there's plenty of history to this month. people are pouncing on those fears and sort of the haunting similarities and saying oh, it's happening again. so they sell into that. sometimes the broader market economy, as the president was just saying, as sound as it can be and this might be a little bit of, you know, impeachment fears as charlie gasparino was saying a little bit overstated right now, as a factor in all of this but the president pointing to that as he did yesterday, pointing to the federal reserve and tightening interest rates at the worst time that really prompted these manufacturers to rein in their spending and that was it. but it's not coming back to him, he says, not now because this is

not on him. we've got james freeman from the "wall street journal," former campaign manager ed rollins and charlie gasparino. ed, the president is saying don't put this on me. what do you think? >> unfortunately, it gets put on him. presidents get too much credit for the good stuff in the economy and too much blame for the bad stuff in the economy. this is far more dangerous if this economy doesn't come back, which there's no reason for it not to, and certainly his great plus is the last couple years, get somewhat diminished. it's not a great place to start a presidential campaign. neil: you were saying it's always risky when the president stands and follows the stock market to the degree this one does. not surprising given his business background. ronald reagan assiduously avoided that. why? >> it was not his game. don regan followed it closely. the critical thing here is reagan's tack cux cuts started g

into effect right now, 25% tax cut, they put it off a usyear o so. i left the white house about this time to start setting up the campaign. we started 25 points behind to end up january, february, went ahead, never went behind again and the economy started booming and the reagan economics really kicked in during the campaign. neil: we forget he was a certain one-termer in '82 in the midterms. >> we had stagflation. >> when he asked me to run his campaign, in february, march of '83, all the candidates, mondale, jackson, were ahead of him and reality is we got the troops out of the middle east, got basically the economy booming and -- neil: he never seemed to have any doubts about that. >> he believed in what he was doing. remember, he had an economic background himself. all his friends were economic types. they were ceos and whathave you. they had great confidence in the

tax, 25% when it was fully implemented and the economy took off. neil: amazing, people for or against those tax cuts, how huge they were. >> gigantic. neil: this one by comparison relatively small. >> on the individual side, it was small. >> corporations -- >> that may be one of the problems here. listen, there's no doubt we have gotten a major fiscal stimulus push by deregulating the economy under trump and cutting corporate taxes. however, when you think of what reagan did, reagan cut individual taxes massively. individuals generally spend a lot of money when you give them a tax break, particularly rich people. corporations, though, when you give them a tax break, typically buy back stock. some of that's good for the market. some of that obviously bleeds into the economy. but it's not the same sort of supply side push you're getting from an individual tax cut. thats one issue here. the other issue is clearly trade. you know, i can't tell you, i don't think anybody can, whether the negatives from all his

various trade wars, not just china, will outweigh the positives from deregulation which is essentially a big tax cut, too. neil: the uncertainty on how it all pans out, particularly china, that's what the world trade organization is saying, what the ecb and the european central banks are saying, we don't know how it's going to work out. we just know the uncertainty is giving people pause. it might work out. >> it might. one other thing. this economy is huge. it doesn't change on a dime. it could be slowing. that's different than going into recession. i don't know how that plays out politically if we go to 1% growth. might not be so great. neil: it's what you're used to. james freeman of the "wall street journal" editorial board, the slowdown fear, you don't have to have things going in reverse for it to be an adjustment to a lot of folks who are used to them chugging along, right? if you're chugging along but at a slower pace for the folks who buy stuff, you know, and make stuff, it can change t

environment mightily, right? >> yeah. it's not a terrible environment right now. we're just not growing the way we could be. you're talking about how much does the tariff issue play into it. tax foundation estimates that all of the trump tariffs employed to date and announced and threatened, if you count them all, it takes away about 40% of the growth, the impact of the tax cut. >> that's a lot. >> it is a lot. neil: but one thing this president has had going for him, whether you want to give him credit, i think ed had it right, we certainly blame the president when things are lousy, so i'm wondering if that sort of like the strength, the biggest chip in his pocket was the economy, the market. this takes away a compelling argument for him if it continues, right? >> essentially, yeah. to ed's point, what people value, what voters value is results. they want that growing economy.

you see how even people who don't realize they got a tax cut even though they did, still give him credit for the economic results which i think you say that corporate tax rate was the key, even though it wasn't seen as the politically valuable element of the package at the time, and i think going forward, the lesson is the president will be rewarded for a thriving economy so he doesn't need game-changing huge radical shifts in trade policy or agreements. in other words, i think there's a view that since he's been fighting some of these battles so long, he's got to come out with something enormous and huge to change the trade relationships. he doesn't. he can get a bunch of nice resolutions like he got with japan, he can get businesses the confidence that tariffs are coming down, it doesn't need to be a dramatic big deal with anyone. but a series of moves making trade peace with people around the world and lowering tariffs

would do enormous good to get that corporate investment back to where we want it to be. >> i agree with that, with james on that. just remember, when the economy starts turning negative, and i'm not saying we are going into recession, when the ship starts moving it's hard to stop it. you know, even a good trade deal, if mufacturers have all sort of pulled back, you know, i'm not into every corporate boardroom, it's impossible to be there, the stock market kind of reflects the predictions of what investors say about what's going on in corporate boardrooms, but if people are really, really back, manufacturers and others, it's going to be hard to get them to jump back in immediately. this ship might be -- that's the scary part here. it could be turning negative and there's not much you can do, even a good trade agreement, to change it. >> the key thing here, it's about confidence. the president does not need to be distracted by the impeachment hearing. he needs to basically, every single day, be focusing on the economy.

what i don't think he's ever done is sell his economic message as accurately as he can. that needs to do that. that needs to be his re-election campaign. neil: he has pounded record low unemployment levels for every key demographic group. it tends to fall on deaf ears. now the irony would be if he does that more, people would say yeah, but what about what's going on with factories and all. this seems to be isolated to that part of the economy for time being. i guess what i'm asking you, is there a sense here that this spreads? this is the same week we learned another retailer, forever 21, i know nothing about it, apparently hip so i know nothing about it, a lot of retailers are facing the same quandary, restructuring, going out of business, filing, about a 40% faster clip than a year ago at this time. so is there a fear that -- >> if people start losing their jobs because factories are closed, even though the economy may still be strong, people start to see people unable -- not working anymore or worrying

about -- neil: what's the delay effect? >> the delay effect is, you know, reality is this is a very changing game, and there's controllables and uncontrollables in a campaign. the controllables are the things that we are talking about here. the uncontrollables are what happens in asia and other places. you got to be perfect on the controllables so my sense is whatever they are going to do on the trade policy, whathave you, you get it done fairly quickly. neil: the reason why i mention it, we know in the case of george bush senior, the economy was coming out of a recession in the very last quarter of the year, when he was running against bill clinton. it didn't do him any good. that reality didn't hit home for awhile. conversely, we have seen the opposite happen, where, you know, a president is re-elected when things are looking good or the party holds on and things had been turning south. perception becomes the reality. i think the line used to be that however we're doing in the summer of an election year is the sentiment that will prevail and affect voting that november.

do you buy that? >> certainly the first half of an election year, thriving economy correlates a lot with re-election. but i'm glad you mentioned the labor market. we have been talking about concerns about corporate investment, stocks obviously are looking forward into the future but right now, this is still a great jobs market for people. that adp report you mentioned, it's not a booming hiring and i think there's some issue of people looking at it and saying oh, i guess businesses are pulling back their hiring but if you look at where the hiring was weak in there, it's in sectors such as construction, where you see -- neil: oh, no. it all dovetails. you are talking about the adp, private payroll that came in about 135,000 new jobs. the market had been expecting 125,000 but to your point earlier, ed, it does indicate a slowdown from the earlier pace. >> we were talking about retail.

people don't understand. they think we're all buying amazon, whathave you. all of a sudden they see stores closing. you walk around this town, half the stores, this is everywhere in america. retail products, it's very difficult at this point in time. all of a sudden, construction, plenty of construction work out there, they can't keep the workers. that's slowing some of that down. >> retailing is like, it's going through a massive transformation. there's nothing you can do about it. by the way, it's a disintermediation from regular retailing to amazon retailing. we are down 500 points off records. let's not freak out about this. these are records and again, the economy takes -- we don't know whether it's turning negative. i don't know. no one knows. even if it does turn negative, it's slowing, it's going to be very slow moving towards the slowdown and guess what's going to happen? you're going to have donald trump running saying hey, i'm at

least giving you 2% growth. she wants, if it's elizabeth warren, she wants to destroy the american capitalist system. neil: you mentioned something, ronald reagan was famous for saying i don't know about the market, but he also said all i know as he was ending his presidency, we have a lot more jobs than we did when i came in, we are a lot stronger than we were when i came in, we are more the envy of the world than when i came in. he used that analogy to say at the end of my, in this case, eight years, we're doing okay. >> warren is obviously the worst of them all because she has the chance to be the nominee. why would you want to go back? things are much better than they were four years ago. why would you want to go back. these policies are going to basically do this economy in. neil: thank you all very, very much. that's something this president will face no matter what bumps and gyrations we have along the way. is he going to be able to say are you better off than you were four years ago when i came into office. that can be a judgment issue,

that can be a personal issue or that can be just an economic follow the numbers issue. bottom line, we don't know. what we know right now, we are down 520 points and people are more inclined to sell than think through this stuff. after this. hmm. exactly.

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she should worry about infrastructu infrastructure. she should worry about the usmca. she's not doing it. i just saw part of her press conference before the president came, and i'm sorry to bother you with this, mr. president, because we have other things to talk about, but i will tell you, i just watched part. she says oh, drug prices. well, she's been trying to get drug prices down for how long has she been in congress? for years. she should focus on her own district. you see what's happening to her district? we call it tent city. it's terrible.

neil: all right. the president not at all happy with obviously nancy pelosi and a little bit earlier on, you know, talking about not only the ongoing impeachment probe but the fact that it could jeopardize that deal between ourselves, the canadians and the mexicans to score a trade deal, so-called, you know, usmca deal that now sort of hangs in the balance here. the president also indicating that this is much ado about nothing on the impeachment front, wasting little time calling the democrats' impeachment probe bull something. i know on cable you can say that word but i'm just not going to. nasty word. in the meantime, we have gary b. smith. he doesn't use nasty words or terminology, but what we do know is this is a nasty market. i notice that all the dow components, gary, save johnson & johnson are down and down a lot. i know technology is leading the way. a lot of the multinational players, vulnerable to what's happening on the manufacturing front, are really taking it on the chin. boeing with its own host of issues leading the way.

what do you think's going on, how real is this to you, how much do you think it sticks around? >> well, i will give you two perspectives. one is i'm surprised the market is only -- i don't know what it is, 500 something. i haven't looked in the last 30 seconds. but down. i'm surprised it's only down that much. yet i'm not surprised, because i was trying to list all the negative things going on and you've talked about it in your previous but you know, from impeachment to brexit to china to the assault on tax to the creeping socialism in the country, i listed about eight negative things, i couldn't find one positive other than let's say the economy is doing well although we just had that lousy manufacturing number. so in spite all that, we are only down 500 points? i actually think that's fairly positive. neil: you know, that's a very good point.

we also forget, i think it's natural because you and i can remember when a point hit of this magnitude was a huge percentage hit as well. today, you know, this is similar to what we had on october 19th, 1987, that wiped out 24% of the dow's value. this one, it takes around 2%. again, not to minimize it. but i'm also wondering if we're focusing on all the wrong stuff. i mean, we have been hearing big manufacturers and the companies that, you know, dominate factories across the globe are slowing down, could be the trade thing, could be the premature hiking in interest rates the president has been bashing but it's been localized fairly to that. haven't seen it dramatically in retail even though problems have picked up in retail, consumer sentiment surveys, consumer spending surveys seem to show that that is still strong. so i guess what i'm asking you, in the past when we've had hits of this magnitude, people have

pounced in to start buying because that's been the rigor du jour with this market, you regret not doing so. what do you think? >> i think for the average investor, i don't know, you know, normally today when you kind of gap down and just finish at or near the lows, it doesn't mark a bottom. i do think i would start wading in. now, this is my perspective is that you know how they say all politics is local. i think all investing is local. by that i mean the big pension fund managers, the big hedge fund managers, they are all feeling the pain locally and here's my perspective. a lot of those people are living now in the very expensive suburbs of new canan and are seeing housing prices drop, they are seeing they can deduct less

in mortgage interest and their big holdings in the amazons and netflixes of the world are sinking. they are personally feeling pain. i think, just my perspective, that clouds the minds of a lot of these big money managers and because they feel the pain themselves, they are unwilling to commit a lot of money even though it's silly to the market right now. neil: i think you're right. you know, there's just -- it's all psychology but if it's really you, you see things through the prism of your own mind, where you think things are going. gary smith, thank you very, very much. right now, we have stocks going down, oil is going down. that's a barometer on the economy. we have some safe havens, predictably in the likes of gold although that was a late development here and some other commodities, palladium, platinum and all that. to a limited degree. it's not like they're rushing into these other areas. they are not really moving that much either. why is that? after this.

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neil: all right. if we were to go to hell in a hand basket, the president is not saying you should put that finger on him. yesterday it was the federal reserve. today, of course, it's democrats' zealousness to impeach him and the fed's part is that the hiking earlier on led to the slowdown manufacturers are feeling to this day and drawn back on their own expansion plans. nevertheless, a lot of those same ceos, cfos, chief financial officers, it's the uncertainty over this trade situation that is prompting them to sort of rein things in. edward lawrence sitting down earlier with the richmond fed president in virginia on all of this. what did you find out? all right. i think he found out a lot. we are going to find out what it could mean. in the meantime, can we get

stuff straight with him? if we can. otherwise i will go into the markets and tell you some stories from my childhood, which it's up to you if you want. we've got 29 of the dow 30 stocks right now, again, a lot of people would point this out, with every sell-off, you regret it during the long history of this bull market, ten plus years, you have regretted whether it was under president trump or president obama, to not pounce in and buy on these dips, even when they're significant dips. now, whether that's going to happen has a lot to do with the state of the economy, how things are going. now back to edward lawrence. hopefully things are working. edward? reporter: yeah, we got things fixed here now. i'm in harrisonburg, virginia. the federal reserve president, richmond federal reserve president believes that the economy has even affected areas like this. it's reached the small towns now. we decided to find out. this is the yellow button in downtown harrisonburg. it's been in business for ten years now. we wanted to talk to the owner to see how this is translating.

this is miranda. we are hearing jobs people are coming in off the edges to get jobs. what's it doing with foot traffic for your store? >> we have definitely seen an increase in foot traffic recently. i'm not sure exactly what's contributing to it. but lots of events downtown, obviously follows just big-time. reporter: what do you expect your sales from now until the end of the year? >> there are tons of events for october. i expect a huge increase. reporter: that's good. so you know, the richmond federal reserve president says that it's education more than a rate cut in his mind that will keep that economic expansion going and have those sales for miranda at the store. let's hear what he has to say. >> my posture is very balanced. i'm looking at the data on the economy and i'm looking at the data on uncertainty. we have taken out some insurance as you know in the next couple meetings. we will see what happens with that insurance, what kind of impact it has, and importantly,

there's a lot of information that's going to come in between w and en. reporter: he would not say whether he would support a rate cut for the end of the year. he is concerned about that short-term liquidity issue. he wants the fed to deal with that, to talk about it, debate o tee if it's just a one-off, one issue, or a signal of a longer problem. neil? neil: thank you very, very much. quick peek at the dow again. have ly johnson & johnson up. technology is down here. when you talk about names like microsoft, what's interesting in the middle of all this, microsoft announced its own foldable phone today. the galaxy fold, you heard about that. well, microsoft in the middle, no one was expecting this, announced its own foldable phone. any other day that would draw a lot of attention and interest but we are ignoring all that, ignoring stuff that would be constructive, ignoring an adp report that showed growth was still happening in the private sector, maybe not at the pace it was earlier in the year but it's still happening. that's an interesting development. you are either all in or all

out. today, investors are assuming it's better to be all out. but again, the confluence of the data is better than it is worse. but again, that really doesn't matter. it's how you are viewing it. right now, they are viewing it pretty poorly. they don't like what they're seeing so they're selling. more after this. i love taking risks.

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journal," our friends there, we are owned by the same parent, indicating a very interesting story, a lot of factors were at play today but one, i'm quoting here, traders appear to have been surprised by news that presidential candidate bernie sanders canceled campaign appearances because of the health issue. he's going to have to have some stents put in. if mr. sanders were to drop out, presumably most of his support would go to senator elizabeth warren. they quoted the man who runs the big board operations at ubs. the last 200 to 300 points might have been a bernie factor, he tells these guys, saying the picture of a broadly weaker economy being drawn by the data as well as the political uncertainty around what is going to happen to senator sanders. it's another interesting play, the prospect of elizabeth warren gaining steam and with her own views on reining in wealth and

all of that. now, a lot of republicans saying she would be an easy one to beat, remember, be very cautious about that. democrats saying the same when they thought donald trump was going to be the nominee a few years ago. be cautious about that. that's an interesting play on this. what i love about the "wall street journal" they explore any and all possibilities. that could be among them. all right. republican former governor of louisiana, bobby jindal, presidential candidate in his own right a few years ago. what do you think of what they seem to be saying is that if it looks more likely that whoever emerges among the democrats is going to be a sock the rich, go after, you know, go after them with higher taxes, a wealth tax, higher corporate taxes, that worries them, that rattles them. what do you think? >> absolutely. first of all, thank you again for having me back. obviously our thoughts and prayers go out to bernie sanders. i may not agree with his policies but i certainly hope he makes a quick and full recovery. neil: absolutely. >> my dad had a stent a year ago, my son had open heart

surgery when he was an infant. i know how serious that is. look, i think wall street and the american people have a right to be worried about these crazy left policies. there's a problem, you know, it sounds somewhat attractive when elizabeth warren says we're not going to tax you, we are just going to tax the wealthy, there will be a wealth tax, it reminds me of louisiana. they have a saying don't tax you, don't tax me, tax the guy behind the tree. what that means is don't worry, we won't raise your taxes, we will raise the other guy's taxes. the problem with these plans is eventually, it always starts out that way. the income tax was only going to be on the wealthy. these taxes are only going to be on wealthy people. before you know it, if you own a nice home, you own a car, you have savings for retirement, before you know it, the wealth taxes will catch you as well. their appetite to spend is so large they can't just tax billnaires and millionaires. they will tax everyday working people as well. people are right to be worried about these tax the wealth schemes and crazy spending schemes. they are talking about tens of trillions of dollars in new

spending but i also think be careful what you wish for. i think elizabeth warren would be easy to beat but the thought of her as president absolutely terrifies me. neil: maybe that's panning out here. that's just a guess on the part of art cashin, who is an institution on wall street and hearing his thoughts, they're listening. but let me step back and get your view of what's going on with the economy. let's take the leap here that a manufacturing slowdown that's taken hold, then you worry that it sort of crosses the road and gets into the services sector, a far bigger part of our economy. then the president's rationale for re-electing him, strong economic turnaround, pickup in jobs, all of which, you know, we are going to give blame to the president if it weren't so good, we might as well credit when it is, all that goes away or potentially goes away. are you worried? >> well, look, there is certainly a lot of uncertainty and you have been talking about it on your show. you think about the fact

congress hasn't ratified the congressional -- the new trade deal with canada and mexico, you talk about the uncertainty about impeachment, the slowdown about what's not happening in congress, you talk about so many of the other things. i think one of the factors you mentioned which is absolutely true, the gm strike and so many other things are happening, one of the things you mentioned is absolutely true. look, i think the trade war, the tariffs are having an impact. i give trump credit for taking on china. i think is long overdue. i think it could actually be politically painful. it's not clear yet wther this is going to be a political winner or loser. i do think it's the right thing to do. the reason i think it could have negative consequences, there may be short-term pain to get the long-term benefits. previous presidents should have taken on this challenge. they didn't do it. to his credit, trump is doing it. he hasn't backed down and my hope is we will get real restructuring out of it. not some kind of temporary truce, where they agree to buy more agricultural products and we go away. but rather, real structural reform where they respect our intellectual property, they stop manipulating the currency and we have a level playing field for american companies when comes to

ownership of assets over there and other issuet stake. i think you're right, i think trade isaving actually a greater impact than perhaps people are realizing but i do think he deserves credit for taking on this fight even if they are short-term consequences. this fight was long overdue. neil: all right. thank you very, very much. your patience with this breaking news, but you handled it very well. i appreciate that. always good seeing you. as the governor was speaking here, obviously the expectations of additional rate cuts just jumped today. expectations for an october rate cut, they just rose to north of 72% right now. they were at around 50% a week ago. so that can change on a dime. based on the sentiment that the economy didn't warrant additional cutting and now suddenly, sentiment building that maybe given today, what's happening in the markets and the ars of the global manufacturing slowdown, that could jump and go into services is real enough to cut now. so they are betting with their money that it's going to happen

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neil: all right. we're about 15 minutes away from a joint presser involving the president of the united states and the president of finland. the president has already addressed reporters in the oval office, but he will expand on that, no doubt, in the remarks scheduled for 15 minutes from now. cheryl casone in for charles payne with a preview of all of that. cheryl: this is going to be interesting. as we learned so many times in the past, this is a president that can certainly move the markets with one phrase, one word or one tweet. when it comes into the rose garden and starts to talk about the reason these two are together, talking about the 5g networks, anything can happen, especially when reporters get those questions in. you were talking about china. he could talk about progress on those trade talks, those are coming up october 10th in washington. he's probably going to be asked

about usmca, the path to that, hasn't even made it to the floor of the house yet but also, he can talk about the market action today. he tweeted earlier in the session about the markets. we know he's watching these numbers, as are we here on fox business. i've got mike murphy joining me on set, jackie deangelis, and darrell issa to talk about specifically the issue of trade with china and where these talks go. and we have also said before, you can talk yourself in a recession. we got the president talking, 2:00 p.m. eastern time so i'm standing by to, well, stand by. neil: you do not stop, cheryl. thank you very much. cheryl casone. bright and early this morning she was going at it. in the meantime here, a lot depends on what companies do. my next guest says for the most part they get 95% of it right. there's a 95/5 rule, if you will. the houston rockets owner billionaire tilman furteda says

companies can't plan for the 5% of things that either catch them off guard or for which they are not prepared and maybe something like this that can do them in, he's got a big book out right now where a lot of people are sort of saying all right, all right, you're scaring us. "shut up and listen" which is why i'm happy he's on remote because he does not take prisoners. very good to have you. >> hey, neil. great to be on again. it's been a few years. neil: it has been a few years. but you know, a couple of things i want to get in besides just listening, which is a good quality, but the other one about businesses that by and large get most of the things they have to get right, but maybe the curveballs that come like this that they dmont hon't know how deal. how would you advise them? >> in the 95/5 rule, it's one of my most favorite because all successful businesses usually do 95% of everything right, and so what i always preach to my people is look for the 5% that's

wrong because it's that 5% that separates you from everybody else. no matter what the business is, if it's one of my restaurants, casinos, if it's the houston rockets after the season last year, we all sat down, darryl and mike and i, and said what's the 5% that we can do to be a better basketball team. so you apply it to everything. we said we need to transition a little better. so that's where russell westbrook comes in. regardless if it's business, sports, whatever, there's always that 5% you need to do to improve. neil: when i look, a wall street selloff, you know this very, very well, everyone is tainted by the same selling brush, whether they have good things to offer or not. i mentioned microsoft earlier. you wouldn't know it today they had a huge product announcement out of the blue of a foldable phone on top of some of the other things they have been doing that have been getting the tech world's attention, but they are caught up in the selloff just like everybody else. when they might have a 5% solution that bears watching. so as investors look at them,

how do you remind them yeah, you're throwing out the baby with the bathwater? >> well, they are. that's wall street. i mean, my company was public for 18 years and i could be doing great, and it has nothing to do with it. if your industry and the stock market's down and we definitely have got a couple down days right now, but i also think that this is, we have been waiting for a little dip and every time the market drops we don't think it's that time but now with manufacturing down, it's a little soft out there. everybody's getting fat. remember, we have been building like crazy, everything from cars to tvs to apartments in every city and lots of houses and i think the consumer's a little fat right now. neil: the term is calorically challenged. i know what you're saying. fat is the analogy. what i'm curious about is how people deal with this. you know, i think it's all psychologic psychological.

i'm not minimizing the real impact, but people when they hear bad news or someone else is cutting back on spending or reining it in, then they rein it in. then their customers rein it in. all of a sudden before you know it, everyone is reining in and you have a recession. what do you do? >> that's what happens. it's funny how we move as a herd. if we keep watching this and the stock market falls, you would be surprised, people look at the 401(k) and all of a sudden, they don't go out to dinner that weekend. so it is the herd mentality. neil: you never practiced that. you became a billionaire zigging while others are zagging and pouncing on opportunities others didn't want to touch in the middle of a recession or worse. how do you advise folks who deal with this, who maybe don't have the stomach for it? >> well, i mean, if you're a business operator, you have to tighten it up and that's why certain companies, anybody's a good ceo in great times. neil: that's right. >> one of the reasons, i have always grown in bad times because there's too many

companies out there that their ceos are not gd in bad times. you've got to be able to tighten it up and pull yourself up by your bootstraps and say hey, if we have to lay people off, if we have to cut this back, we have to cut that back, i just bought a companyast week that kept the director of philanthropy but got rid of a lot of other people. you need to be raising money for yourself, not everybody else, in tough times but you have to be a tough ceo in tough times and plow through it. neil: theme president said what happening today has a lot to do with the impeachment push. yesterday was the federal reserve needlessly tightening. what do you think of what he said? >> the president is right in this case. to impeach by talking to a head of another state to say hey, something happened in '16 and we would like to get to the bottom of it, i think it's a joke that this is what we're dealing with right now. we need to be dealing with the economy and making sure that everything is good to help us

get through this tough time because it is coming. because you know history repeats itself. you have been around too long just like me. not too long, but history repeats itself. we are on a ten-year run right now which is a long, long time. it's the greatest explosive growth in the history of the united states and it is going to slow down a little bit so let's get ready for it. neil: yeah. you are right to say that some of the greatest companies and opportunities have been born in tough times. home depot, microsoft, your own. that's a good reminder. we all need that. thank you very, very much. "shut up and listen" is the book. he puts you in your place and fast. meantime, we are waiting for this trump press conference here. whole host of issues expected to come up. after this. turn on my tv and boom, it's got all my favorite shows right there. i wish my trading platform worked like that. well have you tried thinkorswim? this is totally customizable, so you focus only on what you want.

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he took that conversatio which was perfect, he said i can't read this, so he made up a conversation and he reported it and said it to congress and to the american people, and it was horrible what he said. and that was supposed to be coming from me. but it was all fabricated. he should resign from office in disgrace and frankly, they should look at him for treason. neil: adam schiff, of course, is the chairman of the house intelligence committee, looking into impeachment issues with the president of the united states. the president not a fan of his, saying the guy should just leave, resign right now. former bush 43 deputy chief of staff, karl rove, on what he makes of this back-and-forth. crazy day for the markets. i don't believe this had any impact on them outside of yet another uncertainty, but what do you think of it all, karl? >> well, look, the democrats are making mistakes. tpt the president would be better

advised to sort of step back. it's one thing to say adam schiff, you know, put on his martin scorsese hat and tried to come up with a scene out of "goodfellas" and it was unfair. the president ought to leave the rest of that out of his conversation. he's the president. he's above this. no need to punch down at adam schiff except to say he told a lie, he made a parody, it wasn't very funny, and he did it to damage our country, and leave it at that. move on. neil: i don't know where this impeachment stuff goes. it's highly unlikely this president would be impeached unless something materializes. i understand that. you are a great historian on this, the summer of the hearings with richard nixon, no one expected them to end the way they ultimately did. having said that, is the more immediate worry for this president the economic juggernaut that has been happening under his watch that might be sort of reversing, at least when it comes to manufacturing? what do you think? >> yeah. look, the economy is vital to the president's re-election. it's what a dissatisfaction with the economy in 2016 helped get him elected.

the confidence in the economy that we've seen in the last couple years is what's keeping him in the ball game. he needs to have a strong economy next year. that's why any time that he devotes to talking about the impeachment process is time taken away from explaining what's going on with the economy, helping build confidence in the economy and talking about what steps he wants to take next to spread prosperity even broader. you mentioned the summer of hearings on the impeachment. we forget that the senate select committee on watergate met for a total of 13 months led by sam ervin, country lawyer from north carolina, and assisted by republican senator howard baker of tennessee who famously asked over and over again, what did the president know and when did he know it. that 13 months of investigating the watergate break-in and the subsequent coverup overlapped with another three months of an altogether roughly 15 months, overlapped for three months with an investigation by the house judiciary committee, so if you

add them together, the 13 months plus the months in which the judiciary committee was meeting by itself, you have 15 months of patient negotiation. the democrats are intent upon getting this vote by thanksgiving or more likely by the end of the year. we will have a matter of a couple of weeks given the holidays. they are not going to be back for two more weeks. then we will have thanksgiving, then we will have christmas and with all the days that are set aside for that, the democrats are going to impeach the president and whatever they can get him on, and you know, this is a sad moment for our country. you cannot do this in this kind of way and not divide the country even deeper. neil: you know, i wonder, too, you mentioned the nixon example. that turned when republicans turned, howard baker, you mentioned him, famously barry goldwater, who ultimately urged the president to step down. we are a long, long way from that. but there are those who say that, you know, that's the kind of stuff that can transpire in hearings where they dig and dig and dig and all that.

no idea where this goes. but play that out. >> well, remember where it played out with nixon. turned out there was this recording system in the oval office and we had the release of the famous tapes. does anybody think that there's a recording device in the oval office today and there are a bunch of tapes locked away in somebody's safe? no. and not only that, but you know, there was something at the heart of watergate. there was a break-in of the democratic national committee in the watergate building authorized by officials of the president's re-election campaign, then there was a subsequent knowing coverup including hush money that was paid. do we think that's going on now? there's absolutely no way. what are we concerned about today? what -- neil: real quick. >> headlines. pompeo confirms he was on trump's ukrainian call. oh, my god, the secretary of state was on a call with a foreign leader. please impeach the president. we now found out this critical fact. how many secretaries

>> please, is this where we are as a country? neil: is it on. the gam is o as is the selloff. thank you very much my friend, karl rove. the dow down about 537 points right now. cheryl casone in for charles payne. cheryl: i'm cheryl casone in for charles payne. adp report came out, private sector jobs increased by 135,000 jobs in september. slightly lower than 140,000. manufacturing report sent yesterday's markets tumbling. it's a one-two punch. with the dow down 540 right now. we're watching washington as president trump ask about to hold a news conference at the white house with finland's president about ways to improve and buildou o