Transcripts For FBC Cavuto Coast To Coast 20180130

Jpmorgan chase, berkshire hathaway, with what theyre calling Health Industry salvo to remind them, maybe all of us together can underpin you twice and maybe underprice you twice, all of those guys, including unitedhealth are taking it on the chin. United health is accounting for a third of the roughly 324 point selloff today. Their presence and teaming up has a lot of folks worried. A lot has to do pretty much with Interest Rates as well. A backup picked up considerable steam amid expectations come tomorrow, that the Federal Reserve will make it official yet again to hike Interest Rates. It will be Janet Yellens last meeting. Again these are sort of a representative of marketbased rates that are 2. 72 . The markets get very leery of this sort of development. The backdrop is still very strong markets going into today, the markets are noise. Volatility index, socalled vix as it is known. It is better than 18month high. Highest it has gone in the bull market cycle. High as 20. Were a long ways. People get anxious when they see what is going on. This is not a shocker. But again for a president who tonight will use state of the Union Address to crow a little bit about markets and a lot about the economy is this kind of backdrop he wants to see . Keep in mind that the markets are up a lot more than they are past couple days. Timing is everything. Connell mcshane, in the capitol, what we can expect. Reporter no doubt, neil, the president has and will continue to talk tonight continue to talk about the successes in the markets even with the twoday selloff. When he gave us preview of tonights state. Union address, exactly what he said. He would talk about success with the markets and tax cuts. To dig into deeper and listening to white house officials about what we might hear tonight. They are telling us there will be two issues emphasized above all else. One is immigration and the other is infrastructure. Other things obviously will be spoken about, but those two will take precedent. The other thing white house officials have been talking a lot about is the president s tone in the speech this evening. Listen. Youre going to see very upbeat, a very positive speech. He will reach across the aisle a little bit. Talk about successes past year, one thing the people ignore about the government shutdown, the political angle. That happened over anniversary of the inauguration. Im still convinced the democrats did that to see nye the president a forum to talk about a great year the administration has had. You see a little bit about that. Reporter you will see a little bit of everything. You see the balance trying to strive, pick up support from democrats on issues like i mentioned irk immigration and infrastructure. Talk about invited guests always a point of focus for state. Union address. Invited, sitting along the first lady from the House Chamber will be number of different individuals. A couple siblings from ohio that run a manufacturing plant. They will be there. That will be a focus, neil on the economy. But on other side of it, we start to see a growing list of democrats planning to boycott the civil rights icon, john lewis will boycott this evening and a kennedy, congressman joe kennedy, from massachusetts delivers democratic response. Neil, back to you. Stuart always tough position to be in kennedy or not. A lot of drama over tonights big gather thing at capitol hill. Congressman and women will not be a part of the event. Congressman mark walker joining from us the beautiful state of north carolina. Thanks for taking the time. Thank you, neil, always a pleasure. Neil do you think a market backdrop like this, while markets have been soaring since Donald Trumps election, since the inauguration, i notice a number of networks are suddenly fixated on the dow where they were never before. What do you make of that . I think it is amazing you reach ad place where people are almost cheering with a couple of days of downturn something not measured significant from where weve seen the growth. Not just the stock market. Were closing in on 3 growth over the past year. If you measure that with the former president s first state of the union, gdp dropped 2 1 2 . I would imagine you wont see too much of that information on Many Networks today. Neil Ronald Reagan used to famously say, cog man, never quote the dow much even though it was doing very, very well under his stewardship, stocks more than doubled, his aides say he was spooked by doing that. So he wouldnt. Served time of 87 crash. Stocks finished higher. Do you think the president might regret using dow because all markets correct . They do. Whether he regrets it i cant speak for the president. I would offer the same kind of caution. Make sure were not putting all of our emphasis or eggs in one basket. Talk about many other accomplishments the house and senate has working with the administration over the past year. Neil sir, meantime, nunez memo is out now. We dont know whether president just waits it out for the five days they can. Then everyone gets to see it. But you have stood apart from your republican colleagues by saying that it is not a smoking gun. You went on to say if your audience or somebody is believing this is the endall smoking gun it is not. You make the case this is the most shocking document in the history of mankind i believe that is a little bit of hyperbole. You dont think its a big deal . No, i do believe its a big deal. But there is a great gulf between a big deal and greatest scandal in american history. I would rate what happened to john f. Kennedy or actor shooting abraham lincoln. Those were scandalous acts as well. Neil what theyre saying enough here to make you question the wisdom of a probe into the president at all. I dont think youre refuting that part. Do you think republicans hang their hats too much on this . When we use that kind of language, what has the potential of happening is that discredits at other times. This is very damaging document. The players that are involved in this. It may even see prosecution. At which point does it remove, or move from a bias to a wrongdoing. Those questions are in play with the names and i believe there will be prosecution that comes out of this, but to be able to put all of our concerns with this entire investigation into this one document, 3 1 2 pages i would caution against that, because there are more things that have transpired that are not necessarily included in this document i believe are damaging as well. Neil republicans given majority did not release a democratic memo. They said that was unfair. How do you feel about that . Everything should be released ultimately let the American People decide for themselves service. Sure. The democrats didnt even decide to even write a memo until this memo came about. In fact a lot of them had refused to even read the memo. The thing about the memo without getting into the specificities of it, neil, is that some of this isnt conjecture. Some is listing what transpired. Anytime the american government, the federal government can be more transparent to the citizens that is a good thing. We saw that as i served on house oversight, having put Inspector General on the lois lerner emails. Amazing how quickly sometimes these igs can find stuff that democrats can not tell you where it has been. Neil do you think the president should in any way address this tonight, sir . The last president , my records, might be a little bit off track, Richard Nixon addressed the ongoing watergate investigation, started out state of the Union Address that year, saying nothing will come of it, he will serve out the interests of American People. Eight months later resigned. Im not comparing the two at all, you understand, but the president might be compelled to Say Something about it tonight . If you were advising him what would you say . I would stay away from it, hitting in passing, stay consistent with the message. I look for wart to the truth coming out, seeing how much i love this country. How much there was no interference. Well continue to do what is best are to the American People. Move on with all the great things that weve accomplished over this past legislative year. Neil do you think the president will on this memo want to get it out there right away, doing nothing, and gets out there five or six days regardless . I think sometimes in marketing i think anticipation is as good what the product could be delivered. If i was him i would wait, let there be more attention focused on it because the memo is damaging and i believe it does show some overreach involvement by some of the players that, the names have been listed before regarding this investigation. Neil all right. Congressman, thank you very much for taking the time. Sure, neil, thank you. Neil a panel dipping into all of this. Market craziness going on, we have sarah westwood, washington examiner, white house reporter, Sabrina Schaefer here, the herald Group Vice President of public affairs, last but not least our charlie gasparino. Sarah, the market backdrop for this, it is one day, it has been a very strong incredible market, but i did notice what has been around, it is getting undue attention in the media. Exactly the President Trump owns the stock market on the way up. He will have to own it on the way down. That is always a risk for being cheerleader in the market. Neil this is a blip in scheme of things. Another thing if it accelerates, right . Exactly. All the outside attention he gives to the stock market versus previous president s creates something of a bubble. But he has plenty of other good Economic News he can tout in the state of the union speech that has nothing to do with the stock market. Neil sabrina one. Backdrops he is referring to, economy itself, strength is picking up. All the companies sharing lower tax rates and sharinging bounty with workers, more than the white house thought. Is that a big theme . Absolutely should be. The stock market is one data point how the economy is doing overall. Neil talking about my life. He does have a lot of good news to fall back on terms of it the deregulation happened in the first year. Repealed parts of obamacare that should be significant. Judicial nominees, all playing into the stock market rally. He can tout the fact that the stock market raised 5000 points first year, whether you like him or not. Nothing to sneeze at. Neil you know on the markets not to get too caught up in the weed here, many would love a correction, right . Of course. It is always a fools game to be touting the stock market. When i see reporters with 25,000 hats on take it off immediately. Markets go up and down. Neil what if they had a dow 26,000 . That is really stupid. You dont get any credit when had at this times 26. You get a lot of negatives when it doesnt. Here is the thing, stocks reflect corporate earnings, or what they price corporate earnings to be. Corporate earnings will have to show that it is worth 26,000. Until they do show that it is 26,000, it will come out in dribs and drabs. Neil right. You might get this sort of selloff. At same time you have higher Interest Rates across the globe, not just the u. S. You have a competition for money. I dont think 2. 75 on a long bond is something that really competes against dividends and stuff like that. Neil it could be reflection of improving environment. Right. Neil he could turn that around to his favor and say Interest Rates are moving up because the world is moving up and im leading the moving up. That is his argument in davos. Right. Some people say that is the preview of economic argument he will make tonight. There are other things white house will focus on. Consumer spending. Consistent gdp growth that weve seen. Enough convincing anecdotal evidence that workers are getting high every pay, beaupre newses because of the tax cuts. You will see the economic argument. If he is smart he will not mention the stock market. Neil or at least as much. One thing to say all i know people who poopooed my i dont think he will say poopoo, correct me but, might look at it and say for all those that thing 1000 is chump change or just crumbs, millions are going to be getting that, before they even see it in their own checks the next month. Right, right. I think he also should tout some of the political civility people did not anticipate. Usually stocks go up when there is political gridlock and washington doesnt interfere with the markets. Neil good point. The fact things are doing okay. The world has not fallen apart untrump. People still dont like him maybe but a lot of people come around to him. Hey, look im reaching across the oil. There is a lot of work that has to get done on immigration for instance. This should be a good point for trump. Neil last year was not a state. Union speech, joint session of Congress Speech he was praised for keeping it measured. The markets went up. Neil will he keep it measured . Does he have to . I think he does. I think he should. I know a lot of traders are thinking well get a bounce because he will be very measured. If he is smart he will emphasize the two things we heard about, immigration and deal for the dreamers. Infrastructure is another stimulus for the economy. Neil no one knows where he will get the money. From what i understand, some publicprivate thing. There is match for what you bring privately you get a match from the government. It will be an interesting lift to see neil will democrats get on board with that. Not in Election Year they dont want to do anything that could resemble a victory. In theory at beginning of last year it was itched that would bring republicans and democrats together. Neil now you never know. It could make both sides look good, couldnt it . I wonder if they, i think, they will, i think they will try to spin it as a gimmick, this whole Public Private stuff, never works, never happens. You would be neil we have history of doing it. Really . When . Skeptical republicans saying where is the money coming from . Neil that is where he gets his argument from republicans. Just on immigration thing he will have more resistance. I heard the Freedom Caucus guys who would be against more spending like the Public Private thing. They are sold neil 200 billiondollar down payment on a trillion dollars is fine. Where the money comes problem. Higher gas tax. You could do that. I dont think higher taxes neil youre right, charlie. I have to drive. Right here. Neil a left here, for gods sakes. Thank you all very, very much. David stockman of course has long been bemoaning republicans and democrats failing at the one crucial thing that is staring us like a anvil about to drop on our heads. It is called the dent and if the former budget director, the Ronald Reagan had to bring it is time we all pay. David stockman and that cockeyed optimistic view of the world is next. Building a website in under an hour is easy with gocentral. From godaddy in fact, 68 of people who have built their. Website using gocentral, did it in under an hour, and you can too. Build a better website in under an hour. With gocentral from godaddy. The tax bill is really the dark cloud that hangs over the capitol. He sell it as middle class tax cut. 86 american middle class families will pay more in taxes as a result of this bill. Neil you know for the life of me i dont think a right or left position, i dont know where she gets 86 million will pay more. I assume she is talking 10year horizon, five years, some credit 10. It is possible at that point it is more than they paid on fourth year, netnet, everybody 95 will pay less. The dark cloud for my next guest isnt who gets what, it is the fact we cant afford to do any of this, between tax cuts we cant pay for and spending we really cant pay for. Both parties are complicit. David stockman, former budget director, david, good to see you grad to be here. Neil the president should be crowing about the tax cuts, should he . Absolutely not. He is in the midst of one of the most irresponsible spruce of spending, tax cutting and borrowing in recorded history. Next year there is going to be a 1. 2 trillion deficit, the 10th year of a recovery that at a point that will exceed any Business Cycle expansion we have ever had in history. It is bad enough when you have a huge trillion dollar deficit at the bottom of the recession, but after 10 years of recovery, that is all she wrote. Were heading for the next recession one of these days, an theyre piling on the debt with red ink like no tomorrow. This tax cut should have been paid for with spending cuts, if you wanted to have it and they didnt do it. Now at same time we have the fed finally shutting down the Printing Press and theyre going to be shrinking their Balance Sheet. So let me make the number very explicit. The treasury will be borrowing 1. 2 trillion in the coming year. The fed will be selling bonds at 600 billion in the coming year. Who is going to absorb the 1. 8 trillion of new debt that will be flooding into the bond market . Were going to have a collision. The Interest Rate is heading towards 3 or more. That will totally undermine, this phony, fantastic stock market bubble we have. Trump is making a drastic mistake by embracing the public he inherited, the impaired economy he inherited. He should get the playbook of Ronald Reagan out. Ronald reagan blamed jimmy carter for three years for the mess he inherited. And didnt dare start bragging until 1984 when the economy was back on a solid footing. Trump is walking into a miserable trap that he is going to pay for dearly and the republicans. Neil all right. You know, you so upset people with that, that briefly our lights all when out, so, if you could just try to keep it on right side of somewhat cheery. You mentioned Ronald Reagan. They have been loathe to pounce on markets at any given time. Reagan was particularly concerned about that this president has been saying, look what i got. Media wont run with it. The media will run with it. You say that can come back to bite your heiny . Of course. This is the craziest financial bubble we have ever had. This is suckers rally like never before. The stork market is trading, was, at a couple days ago, 26 times s p 500 earnings. Worse, 150 times the russell 2000. These are not sustainable. This is crazy. The economy isnt taking off despite all the rhetoric from the republicans in the white house. Neil its a little stronger, right . Well, neil, i have to tell you in the first full year, Fourth Quarter to Fourth Quarter, the economy, real gdp grew at 2. 5 . That is the same rate weve had over the last fur or five years. The problem is were neil youre including the Fourth Quarter of last, of year he have about, right . Youre not. Im starting with the Fourth Quarter quart of last year and going on yeartoyear basis. There were many quarters in 2014 and 2015 where economy grew 3 on yearoveryear basis. Neil youre not seeing any pick up in activity, well not see any pick up in activity with people getting bonus and extra hot money in their hands . No, tax cuts are being borrowed. It is coming out of one side of the economy going into another. Neil what would bug you more, people borrow to spend or borrow to get tax cuts . Theyre both equally bad when you have a 21 trillion National Debt that is neil i would concure that. It is a little better money in americans hand they can spend. But that is the wrong decision. 10 years into a Business Cycle. This is 112 to 122, weve never been there before. Longest Business Expansion in history is 118 months, that was in the 1990s, under far more propitious conditions. Theyre asking for a fiscal bloodlets like you have never seen before. When they get 1. 2 trillion deficit at the top of a Business Expansion, you know, youre neil let me ask you this. We got a lot of people when you come on, you obviously generate a good many emails. Many favorable, many not. The ones who dont like it, he has been a crate banger. Always mr. Negative. We can see why reagan took him out to the woodshed. One guy says he should have beaten the hell out of him. What do you think of that . They dont want to hear the truth. They have been living on borrowed time. Neil david, they say youve been doing this for years. Youre always johnnyonenote doomer and gloomer. You say . Fed made it possible by monetizing trillions of debts, buying all these bonds. That extended the shelf life of this crazy fiscal policy but the key thing is its over. The fed has said were done. Theyre shrinking their Balance Sheet beginning in october. They will shrinking at 600 billion rate. Which means theyre dumping bonds into the market. Theyre not buying the new debt of the treasury. The market is going to reset. Interest rates are going to soar. The whole stock market neil soar how much . How much . Between 3 and 4 , 300 and 400 basis points. Neil wait, wait. Were at 2. 7 now on 10year note. You see that getting up to 5. 74, 6. 74. It could go to 3 , 4 . A year ago in july it was 1. 3. Neil i understand that. Where do you see it going . Back up to what . To 7 . Back up to 3 1 2 easy, 4 . 4 1 2 . This market will overshoot. Neil you realize even then that is historically low . It doesnt matter. Compared to where the bond market was a year ago, anybody that owns these bonds, junk bonds priced off them, take 20, 30, 40 losses. When you have that much carnage in 100 billiondollar, 100 trilliondollar global bond market, all bets are off. This bubble is about ready to blow. And if trump has any sense whatsoever, he would get off this bragging thing and start beating up an obama and the fed for delivering this mess to his doorstep. Neil well he is probably watching now. Im sure he revising the speech. Good. Neil david, always good seeing you my friend. Thank you very, very much. To the point david mentioned, when you agree or disagree with some games they play on capitol hill, theyre working on another continuing resolution to carry us past february 8th, the 6th such endings tension to keep the government lights on. Daca, immigration, all that other stuff, but another cr, continuing resolution, just to keep going. Imagine if you handle your bills that way, a few weeks at a time . That is what theyre looking at now. Continued coverage from our nations capitol. The president s big speech ahead. The dow is down 339 points, that works out to 1. 25 . Stay with us. Youre watching coast to coast i cannot imagine managing my diabetes without my dexcom. This is the dexcom g5 mobile continuous Glucose Monitoring system. A small, wearable sensor measures your glucose every 5 minutes and sends the data to a dexcom receiver. Dexcom helps lower a1c and improves quality of life. If youre over 65 and you have diabetes, you should have a dexcom. If you get a dexcom, youre going to be very glad that you did. Visit dexcomnow. Com to learn more. Neil the latest republican incumbent, big one at that, the House Appropriations head, after serving two decade in congress, almost guaranteed election, reelection, one time after another, his family long steeped on capitol hill, he is stepping down. 32nd prominent republican to do so. They have big difficulty, republicans finding big names to replace the big names who are leaving. Enter tim phillips with the americans for prosperity. He is their president. Theyre investing a lot in this election cycle. 60 more than in 2016 to help that out a little bit. So it is very good to have you, tim. Could have been telegraphed. Facing a tight raise, out raised by democrat opponent in largely safe republican district. What is going on here . How do you counter that . Its a challenging environment but republicans need to do, to simply explain, i know our network will help do this, that the tax reforms, the tax cuts that are already helping literally millions of americans, neil, we talked about it on your program, with pay raises and bonuses and Stock Options and new job opportunities, they have to make sure americans are seeing benefits that are surely happening because of tax reform, because of the role back of regulations, really getting rid of some regulation. The administration deserves a lot of credit for that, congress too. They have to make sure theyre explaining benefits to the American People and prosperity and opportune happening that is a key for them. Its a challenging environment. The party in powder neil the Koch Brotherses are stepping up. A lot of republicans are getting nervous. Some are worried about senate itself. Are you . I think you have to look, look at history and the party in power can suffer big losses. Republicans have a raise shore thin majority. The map does favor republicans, neil, we both know that. That helps them, but neil well the map favors you in the senate. The map favors you in the senate right you no. The house is anyones guess to your point but where are you targeting . What states or districts are you targeting . Basically the midwest and central part of the country, you have got districts across iowa pennsylvania, ohio, industrial belt, wisconsin, it has done so much better in the last year, yearandahalf, economically. We want to make sure folks in those areas know that. A lot of suburban, exurban districts, neil, the atlanta race special was close one. A lot of suburban areas around northern virginia, where i live in georgia, atlanta, denver, those are areas. Im telling you this is normal. It is historical. The party in power struggles in off year like this. Their best way to victory to make sure americans are seeing benefits of what they have done. On tax reform there are no bigger benefits happening right there, for folks enjoying a better life because of these tax cuts and tax reform. That is the best opportunity for them to hold on. Neil well watch closely. Tim, thank you very much for taking the time. Tim phillips. You bet. Neil joining us right now, it is a very hard backdrop to talk about stocks in the moment, always risky. This president will likely talk about the great improvement in the market. It depend on the environment, really depend on the environment. What will it be like for this president tonight . [ phone rings ] hey maya. Hey you still thinking about opening your own shop . Every day. I think there are some ways to help keep you on track, closer to home. We grew to a trillion dollars in assets under care by thinking about your goals as much as you do. 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Neil welcome back, from the nations capitol, where the president will give a state. Union address. He did address a joints session of congress shortly after becoming president of the United States. That was not a state of the union. This is just another opportunity following up on address widely praised at the time, kept it measured and focused. Other issues dominating the theme shortly thereafter. That was then. This is now. A little selloff going on. Karl rove, what is at stake for president s when they have this venue . It is iconic moment. How do you think it is supposed to go, if you were to advise President Trump, what would you tell him . Well, my suspicion tonight is well at hand. This focuses white house. The runup to this speech tonight has been, you know, there have been briefings about what he is going to say. There has been emphasis from the white house on his tone is going to be unity, cooperation, bipartisanship, focusing on the economy, boosting, touting results of the tax cut in his changes in his regulatory policy. But talking about the future. Tonight i think it will be pretty good. Sound like it. What will really matter what happens in the days after, because if youre going to reset, you dont need to reset for one night. You better reset for a longer period of time. Is he going to keep that same tone . Is he going to keep that same emphasis . Will show discipline in selling the tax cut to the American People and selling his Economic Program more broadly to the American People . You know, a lot has been made of overtures he will make to democrats on immigration plan, for the timebeing seems to be raising, hackles more within his own party, conservatives within his own party than anyone else, but it is still early but a infrastructure plan, which democrats and republicans you would think could readily agree, at least to the broad features but in this environment, it is anyones guess. What do you think . First of all it is more difficult than we think, the democrat approach is, lets take a bunch of money and spend it. The republican approach, the trump approach appears to be more lets find ways to make it easier for the private sector to invest in the kind of infrastructure that mesh wants. There is philosophical disagreement there. You condition square some of those circles. You can, take some of the ref edges and sand them off, so you can find something but, it is going to be very important for the president from here till the election to stop tweeting things like crying Chuck Schumer and expect to turn around the next day to sit down across the table from him and arrive at a deal. People are people. The president of the United States is one person has to set the tone, not engage in that kind of activity in my mind if he wants to get things done. Neil i was noticing, karl, before going on the air, looking at other networks, not predisposed necessarily cover soaring stock market, but gosh darn it today, they certainly have been. Im wondering, whether that hurts the president going into tonight, because obviously stocks are up a heck of a lot, even with todays downdraft, when he took office. But that that is the danger of the aligning yourself to the markets, at least perceptionwise. Look, markets go up, markets go down. Got to be very careful, look, 52 of the American People, according to Federal Reserve, investment study, 51. 9 , to be precise, americans own stock. But as professor ed wolfe at nyu points out, only 14 own it directly. Theyre investors in the market. The other 38 own it quote, indirectly through 401 k , ira or some kind of a retirement plan. So one out of every six americans is invested and looking at it daytoday, making decisions and so forth. Neil right. Everybody else is making contributions but is a little bit more distant from it. Better to emphasize the thing that is going to happen with the tax cut which is virtually every working american will see their paycheck be larger, and their companies will be doing better because were making ourselves competitive on the international stage. So better to put the emphasis there i think, to he who lives by the market rise, dies by the market rise. Better talk about the optimism we feel about the economy and growing sense of strength in our economy rather than touting you know, each days rise in the s p 500 index. Neil yeah, youre right. Youre right. Carl, always good seeing you, my friend, thank you very much. Thank you, neil. Appreciate it. Neil karl rove. To karls point, focusing on stocks for a moment, if not for United Health today, we would be down all of 239 points and 338 points. Why that is, why so many key Health Industry players are feeling so sick. Ooooooh snap every truck guy has their own way of conveying powerful. Yeeaaahhh boy. Kind of looks like a monster coming to eat ya. Holy smokes. That is awesome. Strong. You got the basic, and you got the beefy. I just think it looks mean. Incredible. No way. Start your year off strong a new chevy truck. Get a total value of over 9,600 on this silverado all star when you finance with gm financial. Find new roads at your local chevy dealer. And butch. Aura. And tank. 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And now, get a 200 prepaid card when you buy an iphone. Its a new kind of network designed to save you money. Call, visit, or go to xfnitymobile. Com. Welcome back to cavuto coast to coast. Nicole petallides live on floor of the new york stock exchange. Big board down 360 points. Near session lows. Stocks are weighed down by Health Care Related stocks. Unitedhealth and dragginging about 10, 100 points off the Dow Jones Industrial average. The big news is that amazon, berkshire hathaway, and jpmorgan, have agreed to team up on a health care venture. This venture is pressuring the group over all. They wanted to offer cheaper care to have more satisfaction and reduced cost. Unitedhealth down 3. 75 . Express scripts 5. 7 . Cvs, aetna, down 4 , 2 . Entire group is selling off. Pharmacy benefit manage es, Warren Buffett one of the three companies here, talking about over 500,000 employees between the three of them. He noted that big picture here, the ballooning cost of health care acts as hungry tape worm on the american economy. The three together are putting together talented experts, technology, in order to move health care forward. Back to you, neil. Neil thank you very, very much, nicole. A doctor on the very subject says this is what the doctor ordered, welcomes this development on the part amazon, Jpmorgan Chase and berkshire hathaway. A doctor joins us now. You like this. Why . I do. I think it is huge, mom you meant and anything that can have positive impact in the lives of my patients im all for it. Three huge corpses are coming together to provide health care not just for employees but for their families. That has to be over a million people. But my concern is that the doctor as i want to make sure, i hope that the care that is provided to them is good, quality, care and it is affordable. On top of that, we want to make sure patients can access it easily. We wonder why do patients always go to the e. R. That are not emergent. They called their primary care doctor, they cant get in for two or three weeks. You cant wait for two or three weeks with strep throat or uti or pneumonia. Tough treated in a timely fashion. Neil doctor, i wonder whether you worry about this, what you hope for could come to reality. All are bottom line oriented, excess expensing that is rampant in the health care industry. Some are fearing this sort of private company alternative to dealing with medical, you know ailments and the costs therein, a lot of these companies are addressing their own rocketing Health Care Costs they could even be tougher, what do you think . You know what . I have to say i dont agree because, neil, you know, one of the statements that they said this will be an initiative that is free from profitmaking incentives and constraints. That is it why i like it so much. You know, if, they are already billionaires. Warren buffett is already a billionaire. Is he out to make extra buck . If you make employees and happy and healthy they will work harder for you. Richard branson, one of the best advice he ever gave, take care of your employees. A step in the right direction, aca are failing. Costs are astronomical. Patients right now, they cant afford their premiums, their deductible as and copays. It is just a disaster right now. We dont know what the future holds with medicare and medicaid may go bankrupt. It is very good theyre proactive, taking initiatives. Trying to do something to benefit their employees. Neil if i could switch gear as little bit, doctor, up has been written about the particularly virulent flu season. Record number of deaths among young people i guess is something that we typically dont see. What is going on . What can you tell us . What do we do, that sort of thing . You know the rise of the flu and impact that it has on my patients, i saw 47 patients yesterday. Neil wow. About 30 of them who i diagnosed with either influenza a or influenza b. Some had asthma. Some were pregnant. It was so important for me to treat them immediately. Some are higher risk of complications. For example, many of my patients who had asthma, they tell me they didnt get their flu shots. I had to kindly counsel, educate them. Youre at higher risk of complications especially if you have asthma, end up catching the flu, or if youre pregnant youre at higher risk of catching the flu. It is wild and rampant right now. It is spreading like wildfire. Most important things we can do to protect ourselves, number one, get your flu shot. Doesnt matter if it is 10 effective or 30 . Neil not too late to do that . Absolutely not. Im still administering flu shots where i work right now. But also in addition to the flu shot, keep your hand washed and clean. Stay hydrated. Avoid rubbing your ice, avoid rubbing your nose. Get plenty of rest. Get a well balanced diet. Neil 47 patients. Youre a busy doctor. I love taking care of patients. Good to see you, neil. Neil doctor, thank you very, very much. President s speech just what the doctor ordered, democrats skipping a dozen of them, saying a waste of time on their part. A former prominent figure in this town who says you know what . That is sending wrong signal to your constituents. The dow sending a selling signal here. Down 346 points right now. For all the fuss for this, 1. 3 , over yesterday, two days. Far less than 1. 75 . Just putting in perspective. Well have more after this. my business was going nowhere. So i built this kickin new website with godaddy. Building a website in under an hour is easy 68 of people. Who have built their website using gocentral, did it in. Under an hour, and you can too. Type in your business or idea. Pick your favourite design. Personalize it with beautiful images. And. Youre done and now business is booming. Harriet, its a double stitch not a cross stitch build a better website in under an hour. Free to try. No credit card required. Gocentral from godaddy. But some of us make somethinge make sommuch more. Dinner. Mom would be proud. With blue apron, any night is a chance to see what cooking can do. Neil welcome back, everybody. The dow down about 350 points. In and out of that level for a while right now. A lot of this has been undue attention on United Health. Well get to that in a second. Energy has not been a big help here. Energy a disproportionate contributor in the dow and the s p 500 and all Energy Taking it on the chin right now. That is contributing to the selloff. I mentioned health before in this competition from the likes of amazon, Jpmorgan Chase, berkshire hathaway. Those insurance guys dont like it, and obviously, they are also disproportionate figures in the markets themselves. This all at a time when Interest Rates are backing up. Again, you have to put this in perspective. With the yield at a 10year at 10. 72 . I think thats what my wife and i paid for a day for a mortgage in the 80s. What you get used to. And we got used to much, much lower rates than that. The half full glass is a sign of improving economy. The half empty glass is yeah, we like the cheap rates. How long can that continue . Its a jump ball for everybody tonight ahead of the state of the union and a lot of pressure on the president of the United States to rally everyone in that building behind me, behind big initiatives like immigration and infrastructure, lot of things being planned. Adam shapiro handicapping it all right there. Reporter theres a lot we expect to hear from the president. We expect to hear him talk about the accomplishments of 2017. Tax reform which is clearly historic. A booming economy with the stock market up, and unemployment at historic low. We havent seen unemployment this low in 17 years. Those are the accomplishments going forward. Theres going to be discussions about infrastructure and the one trillion possibly even 1. 7 trillion plan over ten years that the president is hoping to outline, and theres also going to be a discussion of immigration reform. But the democrats who will be attending are bringing as a sign maybe you could say the demonstration attention are bringing dreamers to the event because theyre allowed to invite a guest. To show their support for the dreamers and democrats who are going boycott. 12 will not attend the state of the union, frederica wilson, the congressman from florida who got into it with the president. Maxine waters, barbara lee, some of the democrats who are not going to attend. There is concern there might be protests during the speech but kevin mccarthy, leader in the house, the republican leader, says thats mostly unlikely and calls it a sign of disrespect. If it did happen, heres what he told us. I would think theyd be very disrespectful. I wouldnt support that during a time when president obama was, in i wouldnt support it now. I think our country is better than that. I dont think tonight is the night to play political games okay,ates night to listen and pay respect. Reporter to sum it up, at the state of the union, we expect the president to say the state of the union is strong. Back to you, neil. Neil thank you, buddy, very, very much. Adam shapiro. News out of some of the democrats including nancy pelosi, who is apparently telling House Democrats to play nice during the president s state of the union speech and allow trump to be, in her words, his slobbering self. There we go. Want to get reaction to all of that from the former governor, the former senator from the pine state of virginia. George allen. Good to see you, sir . Good to be with you, sir. Allow President Trump to be his slobbering self. Political posturing, the same with the members who dont show up. Neil what do you say . Dozen strong not showing up . They get to be on tv. Heres the dozen. If theres 14, i dont think anybody would Pay Attention to them. Listen, cheer for the things you like and be quiet for the things you dont like. Neil remember when they said you lie and all that, theres a difference between that and skipping out. Whatever happened to decorum. You should have decorum. Heck, when i was governor, there was such fractiousness in the legislature, i had to give it the state of commonwealth address from my office. Neil is that right . You get the message out anyway. The president s message is the county is on the right track, investments up, jobs are up. The manufacturers association, optimism survey is the highest its ever been and hes going to say heres where were on the right track. This is where theres going to be benefits for people who are already feeling it from the tax cuts. Neil of course, you heard what democrats said including nancy pelosi on the tax cuts that its chump change, it doesnt really add up. How do you think he responds to that . The response from anybody that gets a thousand dollars more a year, thats real money. Thats going to help the family. Maybe theyll pay down debt, put it towards childs college tuition. Neil his support for that has actually risen, more americans do like what they hear. It could boomerang on democrats. I think so, the message is this is all for the wealthy, usually class far fare rhetoric from the democrats. I said what people care about the most in this, most say yes, were going to be more competitive with Corporate Tax rates, rather than the worst highs, were going to get better than average. Am i paying more or less in taxes . As people see the bottom line theyre paying less in taxes, they keep more of what they earn, theyre going to say this is good, i like this. Neil yeah, do you think the president should mention, were at session lows now. The dow down about 400. Still up a lot more than down. That is the risk when you allow yourself to the markets, they can go up and down. People look at 401 k and not look at it people can follow this hourbyhour, moment by moment and watch fox business to get the scoreboard, but i think theyre going to look at their monthly reports, year end reports, theyre looking at 2017s fiscal year or calendar 2017 and say look at the gains ive had in my portfolio, the 401 k or neil the Bigger Picture is were doing better, were financially more healthy. The economy is rebounding. Right. Neil these are the themes that the president should pounce on, right . Right. Because of the tax cuts, because of the regulatory reform. It is because of Productive Energy policies that americans are working. Our businesses are more internationally competitive, and all of thats great. And then this president s not one who just going to rest on that. Neil what do you think is going in your beautiful state of virginia. A 5050 split, more democrats seizing the momentum. I told you about my congressman, house main stay, House Appropriations Committee Chairman stepping down. Something is going here . Well, the other side, the Resistance Movement does have a lot of ill say this, they have a lot of enthusiasm on that side. Once we get to the elections this fall in november. I think things will be different because people see the economy and how its affecting their lives. There are people who obsess over President Trumps style. Theyre not used to new york city style and manners. Do you think hes approval would be a lot higher if it were not for that style . I think when hes overseas and being president ial, when hes talking issue abouts that matter to people and not distractions, i think people like that. Neil okay. And i think thats important, and i think the state of the Union Address is an ability for him to rise to the issues that all the American People care about because he wants to unify this country, make us more competitive. Make America Great again. Neil tonight is that moment. And i think he can unify the country behind it and stick to that message. Neil we shall see. Governor, very good seeing you. As the governor and i were speaking we ticked down a little more. Nothing to do with the fine governor, almost down 400 points. Gerri willis, whats going on here . Reporter heres what i see and people should Pay Attention. You look at whats going on, the downturn in the market, were not down 2 . Were down 394 points and at one point in time, that was a very big number. The reality is not anymore. Its only 1. 74 Percentage Points. Look, take a intreth here, this is not a huge change. When you look how far weve come this month alone, the biggest gain in seven years, what were you expecting, we would go to the moon . You have to be realistic in your expectations and you know, this isnt a time necessarily to sit on your hands, you have to listen to what the markets saying, one interesting thing talked about this morning is health care announcement, right . From some of the biggest investment countries in the company. Amazon, berkshire hathaway, Jpmorgan Chase, saying theyre going to get together to find a solution to whats going on in health care, they have no details, and yet Health Care Stocks are selling off. You showed United Healthcare down 5 . Heres what i see happening right now. People a little on edge, they are shooting first and asking questions later. We have no idea what this effort might encompass. Neil it wouldnt be the first time thats happened. Keith fitzgerald, another factor Interest Rates, backing up to a level weve not seen in a couple years, but again, i can remember a lot higher rates but what you get used to. Is there a point which you think investors say given the volatility, id rather be in the safe haven, guaranteed by uncle sam, protection of the bond market . I think thats a very valid question. I think gerri makes important points. Whats happening, people forget, neil, today in contrast to the markets we grew up with are highly computerized. Huge computerized arbitrage programs, making Interest Rates and correlating adjustments in stock prices. Factor in the Jpmorgan Chaseberkshire hathaway announcement, fact norenergy policy, factor in tax reform. Its natural and normal that the markets have the selloff before they move higher. Neil when you say selloff before they move higher, a lot of technicians will be grateful for a 5 correction, one we havent had in years, forget the 10 we havent had a lot more years. What would you want to see as far as healthy cleansing, whatever they call that . Well, you know, its important, you think like a plumber. Little water can do damage if you are not careful. 35 would clean the pipes, shake the easy money out of the trees and give investors a solid footing upon which to build the next leg higher. Is the selling going to accelerate . Its more extreme than id bet on when markets open, but im not overly concerned, either. Neil thank you very, very much. The dow down about 368 point why . Art laffer says the trend is our friend, and the tax cuts are friendly indeed. After this. You know what they say about the early bird. He gets the best deal on the Perfect Hotel by using tripadvisor thats because tripadvisor lets you start your trip on the right foot. By comparing prices from over 200 booking sites to find the right hotel for you at the lowest price. Saving you up to 30 youll be bathing in savings tripadvisor. Check the latest reviews and lowest prices. Neil you dont think were seeing any pickup in negativity with all these people getting bonuses and extra money in their hot little hands . I dont think so, one, all the tax cuts are being borrowed, so its coming out of one side of the economy and going into another. Neil what would bug you more, then, if people had to borrow to spend or borrow to get tax cuts . Theyre both equally bad when have you 21 trillion National Debt. Neil i wouldnt concur that, i think its better when its american money in americans hands that they can spend . Its the wrong decision. Neil david stockman, Ronald Reagans former budget director not a fan of whats going on today. The dow down close to 400 points, the biggest selloff since june 2016, Interest Rates backing up today to levels weve not seen or a hit weve not seen in the better part of four years. The read on all of that and whether markets are getting nervous and whether the nervousness is justified with art laffer, he joins us right now. Art, theres a former top reagan lieutenant, who is saying im worried. Youre not worried. What do you make of what he is saying . The same thing i said when he said the remarks about reagan, that he thought it was wrong to do tax cuts back then. He was wrong then, he is wrong now. Every now and then when theres a downturn, the doom sayers turn out to be right. Right now there are no conditions in the u. S. Economy that would warrant a big, big selloff and downturn in the economy. The tax cuts are great. It will lead to expansion of employment and production. There was a slight dip in the Fourth Quarter, neil, because people were anticipating the tax cuts and shifted income into the First Quarter of next year, but unless the weak dollar which is my one concern, you cant have a Strong Economy without a strong currency. The weak dollar is the one concern, but its not overwhelming right now, and i would hope that the dollar would reverse direction and rise and Interest Rates fall as a result. Neil yeah, we cant tell on day to day, the networks followed on the dows inexorable rise, certainly focusing on it today. President will use obviously the markets prior to today, last couple of days as a backdrop for improving economy, better earnings, lot of them are sharing the wealth, Corporate Tax cut with workers. You know, nancy pelosi has already indicated that democrats should behave, obviously, addressing the dozen or so who arent attending tonight, they should at least watch their own ps and qs, what do you think of that . Thats correct. Theres no reason for the nasty downtalking stuff that goes on. It makes no sense whatsoever. I went to see the sotu when president obama was president. It was a fine speech. You never treat opposition badly, treat them with respect and dignity. Neil what do you think when somebody wills, remember joe wilson, you lie but at least he was there. I wouldnt make that point. Neil nancy pelosi was half hearted in her phrase, allow President Trump to be his, quote, slobbering self. What do you make of that . Why should she Say Something like that. Slobbering self is not something to say. Treating the president with that disrespect makes no sense. Treating obama with disrespect makes no sense. I never said nasty things about obama, i disagreed with his policies. Frankly no upside to being nasty. The president will be talking more bipartisanship tonight, were told one on immigration, another on infrastructure. Infrastructure would be big spending initiative, as you know. Yeah. Neil the dirty Little Details are finding out how you pay for that, and were hearing talk of a 200 million commitment on the part of the federal government that could be leveraged off by private enterprises, part of that might add a hike in the federal gas tax, what do you make of that . Good federal spending on highways and infrastructure and all of that stuff thats productive and not a bridge to nowhere. There is a good case to be made for infrastructure spending. Im not that terribly worried about the 200 billion, the increase in wealth in the last year and a half years is largely better than 200 billion. I think we can afford this right now and get the infrastructure there to create the jobs, output employment. It will pay for all of the jobs, if not itself. Neil one of the key points, he mentioned this before, but said ive been talking about this for years, there is a day of reckoning coming, the piling on debt that Neither Party addresses is still out there. What do you say to that . Its incorrect, theres no day of reckoning. The amount of National Debt is higher, thats very true, but its not a day of reckoning. If we get this with President Trumps tax plan, you will get the growth. Youll see debt as a share of gdp decline for two reasons, number one, you will see gdp grow faster, as much as 4 or so but you will see revenues picking up and therefore the deficit declining or increasing slower and the two together will lead to a sharp fall in debt as a share of gdp which is really what you want. You want to bring it down to the levels of ten years ago. Neil all right, the good old days. The good old days, i think we can do that. We can do it easily with good policies and without screaming. Neil yeah, without screaming. What do you mean without screaming i dont know, i dont know the word has gone out to a number of democrats to behave tonight, no less than nancy pelosi urging that. How joe crowley feels on that . House Democratic Caucus chairman how he will receive the president of the United States tonight. While a dozen in his party are opting not to even come to the big event. Were live from washington. More after this. I cannot imagine managing my diabetes without my dexcom. This is the dexcom g5 mobile continuous Glucose Monitoring system. A small, wearable sensor measures your glucose every 5 minutes and sends the data to a dexcom receiver. I feel like, oh my gosh, im in control now. With the dexcom g5 mobile, you always know the direction and speed your glucose is heading. Something a fingerstick cant tell you. And its easy to see your trend line. With dexcom, i know where im heading and i can take action without pricking my finger. Dexcom, its just really easy to use, and i have the confidence that i have all kinds of customer support. Dexcom helps lower a1c and improves quality of life. If youre over 65 and you have diabetes, you should have a dexcom. The dexcom g5 mobile is the only cgm covered by medicare. If you get a dexcom, youre going to be very glad that you did. Visit dexcomnow. Com to learn more and ask your doctor for a prescription for a dexcom g5 mobile. And ask your doctor for a prescription thats it. Im calling kohler about their walkin bath. Nah. Not gonna happen. My name is ken. How may i help you . Hi, im calling about kohlers walkin bath. Excellent happy to help. Huh . Hold one moment please. [ finger snaps ] hmm. The kohler walkin bath features an extrawide opening and a low stepin at three inches, which is 25 to 60 lower than some leading competitors. The bath fills and drains quickly, while the heated seat soothes your back, neck and shoulders. Kohler is an expert in bathing, so you can count on a deep soaking experience. Are you seeing this . The kohler walkin bath comes with fully adjustable hydrotherapy jets and our exclusive bubblemassage. Everything is installed in as little as a day by a kohlercertified installer. And its made by kohler americas leading plumbing brand. We need this bath. Yes. Yes you do. A kohler walkin bath provides independence with peace of mind. Call and ask about saving 1000 on your walkin bath, or visit kohlerwalkinbath. Com for more info. Neil all right, welcome back, everybody. We have a big selloff going here. 1 1 2 Percentage Points in and out of session lows. Five stocks disproportionately accounting for this, United Health, mcdonalds, goldman sachs, boeing and 3m company and at least three of the companies have reported betterthanexpected numbers. That doesnt seem to matter. Theyre all getting caught up in the same downdraft on the health side. Competition that could be forming on the private front with the likes of amazon and Jpmorgan Chase and berkshire hathaway. That has been hitting United Health which was accounting for 100 points of the selloff, a little less. Right now Interest Rates backing up as well to roughly the highest level in close to four years, so thats some of the noise to all of this, just curious as to whether this influences the writing on the president s speech. Of course, the president ahead of the state of the Union Address was expected, probably is still expected to talk about the improving markets, prior to today, yesterday, they have been sizzling and soaring. John deckert might no, white house news correspondent. Do you know if there is any tinkering given the market developments today . I doubt very much they will focus on the developments of today with the dow and the nasdaq, with that being said, the president is going to talk about the booming economy, whats taking place over the course of the past year and many of our viewers right now, they can tell in the sense that their 401 k has been either mailed to them or gotten online and see how 401 k s improved tremendously over the past year. Neil lot of Political Drama in washington, youve been reporting on it. We had congressman allen on the back and forth as to the setup of the investigation of donald trump, he said republicans should be careful about going too far with this. I want you to react to this, congressman meckler. To be able to put all of our concerns with this entire investigation into this one document, 3 1 2 pages, i would caution against that because there are more things that have transpired that are not necessarily including this document that i believe are damaging as well. Neil do you think the president will, on this memo, want to get it out there right away or do nothing and it gets out there in five to six days, regardless . I think sometimes in marketing, i think the anticipation is as good as what the product can be delivered. If i was him, i would wait, let there be more attention focused on it, the memo is damaging, and i believe it does show some overreach involvement by some of the players that the names have been listed before this investigation. Neil that was mark walker, how is this going to all fallout, jon . Reporter within the next few days, the president is going to give a green light to release this memo, based upon conversations that hes had with the fbi director, with the acting person involved at the justice department, rod rosenstein, heavily redacted. So this will see the light of day. We will see it. Rankandfile republicans will see the contents of this memo and all judge for ourselves whether all this hullabaloo was worth it or damaging information as it relates to the fbis investigation and a possible bias against President Trump in that investigation. Neil all right, jon decker, thank you very much my friend on all the breaking news, the dow down about 393 points. Want to get the read of things from new york democrat joe crowley. House caucus chairman. Good to see you, thank you for taking the time. Good to be with you. Neil nancy pelosi wants democrats to behave tonight. What did she mean . Well, i think what shes saying is theres a decorum of the house, that we as all members, democrats and republicans should abide by there. Was responsibility we have to bear witness to what this president says today, not necessarily a cheering section but one respectful to the officer of the presidency. Neil still, she did add, allow President Trump to be his slobbering self. Was that nice . Listen, i think the reality is what shes doing is communicating to our members, that regardless what you may feel about the president himself, we all have deep feelings about this president , that we should not let them overcome us and we should act appropriately on the floor of the house of representatives. Doesnt mean we have to clap at everything he says. Doesnt mean we have to stand at everything he says, we should show that decorum. Neil a dozen of your colleagues, sir, are not attending, citing a variety of reasons from his famous shole comment and everything else, so they opted not to be there. Others have criticized them for denying those constituents they represent, an opportunity to have some influence in the debate and in the night, what do you say . Well, i respect each and every members right not to attend if they so choose to do that. Theyre making a statement in and of itself that they have lost all confidence in this president and his ability to lead the American People. I understand. That but i also think i as elected member of the House Democratic leadership to be there and vociferously disagree with him post speech and relay those thoughts as well. Neil you know, apparently, Chuck Schumer has given the president some advice for his speech tonight to thank president obama presumably for the economy he inherited. What do you say . I think, look, no question weve had tremendous growth. Not just this past year but growing steadily ever since. The economy has been heating up and we know its heating up more now, so i think it would actually give the president some credibility if he actually acknowledged that the economy was improving all along. We had 80 months of job growth in this country prior to him taking office. It would inure to his benefit if he acknowledged that. Neil do you think that nancy pelosi and some other democrats, i dont believe you were in this group, sir, maybe you can remind me, critical of the president s tax cuts for whatever reason. The key pitch is a thousand dollars the companies are handing out in bonuses is chump change or a waste of time or it really doesnt add up to much. A lot of people are saying this sounds very elitist. What do you think . I dont think a thousand dollars is chump change to somebody making 40,000. Where i do question this is whether or not those bonuses were planned regardless of the passage. Tax bill. Neil you dont think they would have handed them out without it, do you . Hard to say. We wont know. Neil half of them have indicated tax cuts are the reason. Well take them at their word. The tax benefits for individuals end in about five years, whereas for the corporations themselves they are permanent. Its nice theyre doing this year. What will they do next year or the year after that, or seven or eight years, those are the questions. You come from a hightax state, new york, thats a big concern for states like new york and new jersey, connecticut. The three governors pitched together to sue the government over this, that its illegal what they did. Right. Neil i dont know if thats going to go anywhere, but there is a move afoot now to question whether that was a deliberate move on the part of the president. Do you think that was a deliberate move to go after big blue states . I dont think theres any question about that. Ever since the beginning of the debate on this issue and the exclusion of the democrats entirely certainly in the house of representatives. The one thing, neil, that remained true, no matter what was paid for or not, even when the president announced his initial bill of a 4 trillion package, nothing was paid for except for the state and local taxes, revisions of that proposal. Its been a part of the republican proposal. You can see where it does pit blue state versus red state, and i think upstate middle class voters and downstate middle class voters in new york city, does pit them against each other. Neil i know you worried about the dow, you stand out from colleagues, sounds rich when i hear democrats talking about paying for things. 1 1 2 trillion in tax cuts is one thing, you are quite right. But 10 trillion in added debt, traditional spending and not many of the colleagues are complaining about that . I think democrats and republicans have seen a rise in the debt certainly during the Bush Administration and this dmrgz it with a 1. 5 trillion investment in tax cuts. We can argue about this. 80 does go to the wealthiest 1 in the nation and the wealthiest countries in the history of the world. Neil if theyre sharing the loot and thousand dollars, thousand dollars, 2500, 1500. Chrysler fiat, better than nothing. If that continues year after year, we have an argument. I dont hear that in the 10 plan of the companies. The nation has done further into debt and that was no money to spend on infrastructure. There is nothing left. Neil we were 10 trillion further in the debt the last goaround, right . We went into a deep recession after president bush left office and there was a lot of things going on, we need to stimulate this economy and i think a great deal was done to create 80 straight months of job growth and seeing the benefits of that now. Neil congressman crowley, i know you have a busy day, be well. I dont know if you can hear, this its very windy, and it was fine before i came up to this set. It was fine. Im just saying. The dow down 390 points. Well have more after this. Hi, im the internet you know whats difficult . Armless bowling. Ahhhhhhhh you know whats easy . Building your website with godaddy. Get your domain today and get a free trial of gocentral. Build a better website in under an hour. Youre still here . Were voya we stay with you to and through retirement. I get that voya is with me through retirement, im just surprised it means in my kitchen. So that means no breakfast . Voya. Helping you to and through retirement. Neil all right, as if apple didnt have enough headaches on a day that stock is getting creamed on indication that iphone x might not be the big hit it hoped it might be, curtailing production to about 20 million from 40 million phones. Fact of the matter is anyone selling 20 million of anything is great news. This is not. The u. S. Is probing apple over those slower older phones that the company, im old, deliberately slowed down, people say its a cynical maneuver to get you to buy the next phone. Now uncle sam is looking into it. Cant be good. The stream of steady stocks, the dow down about 360. 5 points, the backdrop ahead of the president s state of the Union Address despite the selloff is seeing the markets appreciate quite a bit under his stewardship. How much he devotes to that, jon decker says, hes not going to change the theme that the markets are still up over that, but republicans are getting worried. We talked earlier today saying the investments like the Koch Brothers and others to hang onto the house and the senate, theyre investing a lot of money in this at a time when the latest republican heavyweight out of new jersey, the House Appropriations chief indicated he is going to step down. I believe the 32nd such prominent republican to indicate hes leaving town. And the issue of how appealing existing candidates are, senator ted cruz bemoaning in a memo, he was outraged by opponents and wants to get on the fundraising stick, the trend not looking good financially, but because a lot of his opponents particularly on the democratic side are embolden to kick him out and this is a priority year to do just that, the senator ted cruz into. This number, political and otherwise, we have dagen mcdowell, mark lauder, former press secretary to mike pence and andrew feldman, democratic strategist. You get the clear sense republicans are responding to what they see as democrats seeing blood in the water here. Look, if im a republican, im pretty nervous right now. The generic ballot has democrats up 8 points, this is not corporate money that the democrats are getting, right . This is grassroots momentum. Thats whats happening, we saw this in the races in 2017, seen it in special elections like alabama. Neil this is the time it comes out in a midterm, right . You get that angry. Absolutely. I do think that the turnout, what were feeling right now is going to be exceptionally high across the country for democrats, im confident its democrat because what donald trump has been doing, and all the Republican Congress members who have been lock step with him have not helped the middle class at all. Neil one could argue that tax cuts didnt hurt ill argue it too, people have been tweeting me today the as we move into the month of february, this is when people see more money in their paychecks, and they are, 90 of workers get on keep more of their own money and see their paychecks get bigger as we move into the month. Number one, i think that republicans do need to be worried about taking a decent economy for granted. You have incredible grassroots operations with orourke outraising in the last few months. The Democratic Campaign committee raised a record amount more than 105 million. Thats why the folks kept nancy pelosi around. She might not understand the value of a thousand dollars but can raise money. Neil the issue is how do they turn the tax cuts to their favor, there does seem to be a sense, despite the critics that americans have grown to like, it they particularly like the bonus talk, they probably like seeing it in text, but is it enough. On the money side, weve got a twotoone advantage in terms of republican fundraising, in terms of the rnc and the campaign caucus. Neil where is all this money going . Is it going to prioritize the house . Im told a lot of the money is earmarked for the senate . Youve got a lot on both sides, congressional and senate committees, you are right. People have more money in pocketbooks, looking the fact we are decimating isis, thats what you hear the president talk about tonight. Neil hes shaking his head. Somebody just told me a joke, i said how are the republicans going to do in the midterms . This is a republican who told me this joke, he said, well, as long as there arent any suburbs or women in their districts, theyll do just fine. Or any minorities, right . Look at poll yesterday from reuters. Nearly 60 of americans say this tax bill benefitted corporations and the ultrawhip. Neil and heres the thing about the buffer were born, young man, i should point out the Ronald Reagan taxes were similarly ripped apart, americans started seeing it thechlts i dont know if its going to follow the same trajectory. If donald trump has anything to do with it, it wont. You want to make the tax cuts about wall street, theyre about walmart. When people are working there, shopping, there getting raises and bonuses. Neil the American Public has had a hard time selling it. Theyll start investing in it. This isnt going to raise taxes on some of the lowest when they expire im so sick of that logic because budget rules they had to stick to when they passed the dog gone thing, if you gave a damn about the average person in this country, the democrats would have gotten on board. Really, really . When you go to the electorate here in november in the coming years, the answer is if you want to keep the tax cuts, dont elect democrats. Neil the bottom line is we cant tell what the future will be. I will say in history, if its any suggestion, it defies whatever moment you are living in. Republicans are in deep trouble, i remember in the 2016 election it was donald trump going no where. You should be careful about seizing on something you think is a given. This isnt just about tax cuts, this is about a moral compass were talking about in this country. Republicans right now are willing to shut down the government because they dont want to shut down the government. Because you guys will not allow people wait a minute, you dont think the democrats forced the last shutdown, for whatever reason, perfectly valid but that was a democrat shutdown. No, no, no, this was an absolutely trump shutdown because he would not work with the nancy pelosi let her keep talking about the little pathetic crumbs that are the thousand dollars given to more than three million americans. Let her keep talking about the little pieces of cheese for the average people. I dont think a thousand dollars is crumbs, what you cant answer is how do we know that the tax breaks or bonuses at the end of the year, werent given at every holiday period by the companies. This is called a great pr move. Neil have you followed all of the companies . Of course i have. Neil all of the workers, theyve never done anything like this . All of the companies doing this are laying off workers at the same time. Neil ive never seen anything like it in history, ever ever, ever, ever you have to admit this is a good pr move. Neil i dont care about motivation. Tax cuts that more than 80 of the people in the country are going to pay less to the federal government who misalcase their own money. Not just about the bonuses. A onetime bonus, why dont you give the hard workers a thousand dollar raise. Why dont you flush it document royal toilet. You are going to hear the president talk about the daca issue and democratic terms. Neil so glad we spent this time together. Almost 49 minutes after the hour. The dow down about 354 points. For all this arguing, chopped 50 points off the selloff. More after this. Retail. Under pressure like never before. And its connected technology thats moving companies forward fast. Ecommerce. Real time inventory. Virtual changing rooms. Thats why retailers rely on comcast business to deliver consistent Network Speed across multiple locations. Every corporate office, warehouse and store near or far covered. Leaving every competitor, threat and challenge outmaneuvered. Comcast business outmaneuver. Neil all right, do you guys remember the whole dustup over apple and slowing down its phones . Now the government is looking into this, and the stock which has been buffeted by concerns that maybe the iphone 10 wasnt hit it was supposed to be and selling half the phone or producing half the phones than was the case. A lot of people would die for the kind of return its had and sell 20 million of anything, that is half of what people thought and what apple we are told was planning to do, as it sends out the orders to cut back a little bit. More than a little bit. In half. John corpina follows this at meridian equity partners. John, with the investigation that the feds are sniffing around, that cant be good . Cant be good. Where theres smoke, theres fire, this is something we talked about and heard chattering about for sometime. You talk about the Stock Performance and what its done and seeing the last few sessions, yes, it has a tremendous momentum behind it. Seen about 10 points pared off of it over the last five trading sessions. I think people expect a lot out of apple. Put in a whole different category. Neil absolutely. And from small investors to large investors, its a household name, people can understand the product. To see this headline, its clearly alarming. Virtually all the major sectors are getting hit and hit hard, some say too much, some would argue the runup prior it too much for all the hand wringing down, down 1. 5 to 1. 6 over the last two days, many are thirsting for a flushing out. A 5 correction, were a long way from that. What do you make of all that . Look at this from where the market has gone in the last month, up 5. 5 . Markets cant go one way, whether its one way up or one way down. You need volatility to have healthy markets. Pullbacks are going to happen. We cannot be too surprised when it does happen. Kind of interesting just the activity were going to see this week, pullback yesterday, selloff today. State of the union tonight. We get to the end of the month, unemployment numbers out at the end of the week, clearly a lot going into the pot here thats causing the market activity. Neil how much of the president S Performance tonight weigh in even on the shortterm basis for you as an investor . I think it definitely plays in, if you look back to last february at his last state of the Union Address, we had a 1 move to the upside afterwards. This is a selfevaluation, look what ive done and look what im going to do and look what i want to accomplish. So i think the message that were going to get tonight is clearly a pat on the back, based off of all the Economic Data weve seen in the corporate buybacks and the money that large corporations are infusing back into the economy and back into employees pockets. I think the market is just going to feel good after this. Neil thank you, my friend, very, very much. Thank you. Neil speak of the president , two hints what he might say tonight, i want to see our country united, it was divided, not just under president obama, president bush. I remember the impeachment of bill clinton. He goes onto say, unity will be everything. More after this. At happened . I got a little overconfident on a moped. Even with insurance, we had to dip into our 401 k so it set us back a little bit. Sometimes you dont have a choice. But it doesnt mean you cant get back on track. Great. Yeah, great. Id like to go back to bermuda. I hear its nice. Yeah, id like to see it. No judgment. Just guidance. Td ameritrade. Neil that will do it for couple busy hours. The dow down 351 points. I take you to trish regan. Trish indeed. Were live here at the nations capitol. In just hours President Trump will deliver his first state of the Union Address. He will tout the strength of our economy, the republican tax bill, encouraging lawmakers to Work Together to pass an America First agenda. A very big day this, is happening as we see a major selloff on wall street. The dow down 344, sitting near the lows of the session. What is fueling this . Well talk all about it. Im trish regan, welcome to a special edition of the Intelligence Report live from the nations capitol. Breaking overnight the h