Its all right. Stephanie ruhle takes over the coverage. Boy, that is a tough, tough answer. Wow. Andreas i hope your insights on market are kinder. All right, stephanie. Yes, look at andrea here. Im sorry, were on television. Were still on. Yes, we are still on. Andrea knows im speaking truth. Its okay. Were not going to be like that. Stephanie, is it going to be a bad day today . You know, well see, well see. Who knows. The market is irrational. President trump is the only one who disagrees with that. Good morning, everybody, i am stephanie ruhle. Why is it dark where i am . Because i am live in San Francisco for what is shaping up to be a monumental day. And you know what im going to start with. An historic plunge. After months and months of calm, fear on wall street, as the dow hit its largest oneday drop in history, where many traders are preaching stay calm. For the longterm investor, you would welcome opportunities like this, because this correction shakes the trees a little bit. And a tale of two memos. The House Intel Committee votes to release a democrat response to the nunes memo. The power to make it public now in the hands of the public. This will help inform the public of the many distortions and inaccuracies in the majority memo. And three days until another Government Shutdown with no signs of a deal. The white house calling the bipartisan bill and senate an absolute nonstarter. It takes a special kind of person to write a bill that is worse than graham durbin. They did it. A special kind of person, hmm. And not helping things. The unity president from the state of the union now blasting democrats for not standing and applauding him. Can we call that treason . Why not. Oh, boy. All right. Were going to begin today with the market in free fall. If you are one of the millions with cash in stocks or a 401k, it is enough to make you sick to your stomach. The dow is down over 2,000 points since the end of january and futures are down again. We got to find out why exactly is this happening. And what do you do now. Youre in luck. I have the best team here to break it down this morning. Starting on wall street and a look at just how bad its been. On monday, the dow saw its biggest oneday point drop ever, nearly 1,200 points. Thats all the gains the dow and the s p made since january 1st. All of that is gone. In terms of value, the s p has lost more than 1. 5 trillion bucks since february 1st. In the last eight days, World Markets have lost more than 4 trillion. Nbcs jole delawarjoling kent. Is this about market normalizing, or fundamentally, are we turning to a bad place . Because market fundamentals, the economy, is very strong. Yes, thats right, stef, the economy strong. We saw that january jobs report last week. 200,000 jobs. Unemployment remaining pretty low. We also have that wage growth. Which is definitely going to dig into the markets and some of these corporate profits as they pay their employees more. What were seeing is were poised to enter correction territory here on the New York Stock Exchange. The dow opening at down 2 is what were looking at when the bell ringings. This will be the Third Straight day that the market is expected to open in the red. So what were seeing here is some mechanical trading, some etfs, but were seeing shifts in the economy that indicates the economy is heating up so wall street will look at Interest Rates. The new chairman, Jerome Powell, as you know, was sworn in yesterday. Investors arent sure how much he is going to be raising rates and that of course would make stocks a whole lot less attractive, stef. You know i like to tab a lot of girl power here. Im just going to say we didnt see this when janet yellen was in that seat. The selloff on wall street is posing a real issue for donald trump. Remember, this guy and his entire administration has spent the last year cheerleading the markets, cheerleading. That is dangerous behavior. Particularly in recent weeks. Take a look at this. Have you heard the latest . The markets up about 150 points and we broke a very, very big barrier, 25,000. Just hitting a new high on the stock market again and that means jobs. The stock market has smashed one record after another, gaining 8 trillion and more in value in just this short period of time. Well, there you have it. Nbcs Peter Alexander is at the white house. Peter, ive watched in the last day the white house dial it back and say we look at longterm trends. Baloney. If they looked at longterm trends, they would be looking at a market that has been on the rise since president obama took office. President trump and his daughter and Steve Mnuchin have taken have hung their hat on these markets every day possible. Two weeks ago in davos, Steve Mnuchin, going against policy and talking down the weaker dollar. How can they possibly walk away from this. The president over and over got on that podium and said you can thank me for your 401k. Stephanie, i think youre exactly right. When this white house talks about trends. When the president talks about trends. The trend can only begin on january 17, 2017, thats the trend he focuses on. This is teaching the white house a very tough lesson that what goes up can come back down. President trump now presiding, as you noted, over the biggest stock market drop. He has been silent on the market slide. Hes repeatedly claimed the rise but so far he is not owning the fall. Ignoring our questions on south lawn on monday. His press secretary, sarah sanders, is trying to put a positive frame on the losses, providing the following statement. She says, the president s focus is on our longterm economic fundamentals which remain exceptionally strong with strengthening u. S. Economic growth, historically low unemployment and increasing wages for american workers. The president s tax cuts and regulatory reforms will further enhance the u. S. Economy and continue to increase prosperity for the american people. Again, that, from sarah sanders. Im told the treasury secretary Steven Mnuchin briefed the president on the trip the two men made to ohio. The president s economic team, noticeably, really remains untested when it comes to times of economic uncertainty. But based on my conversations here, stef, their public stance appears deliberate. That silence that they dont view this really as a crisis, instead, insisting this is broadly a good problem, a function of a churning economy. Stephanie. A churning economy. Well, i dont know if its a good problem but i know i have a great panel. Brendan greely is the founder of the economics newsletter. David zurbos from jeffries, Global Investment firm. And Robert Schiller, cofounder of the case schiller index. Ill say this in slow motion. Youre about to speak to Robert Schiller. This man was awarded the nobel prize in economics in 2013. So lets turn the volume up and go straight to Robert Schiller. Robert, you said weeks ago that american shares are the most expensive in the world. Compared to corporate earnings. When you said that the market was waging on. Whats going on now . The narrative has been the u. S. Stock market is way overpriced. I know that from survey data ive been collecting. So i think people have been expecting, or half expecting a correction. Theyre wondering if this is it. When they saw the big drops last week, they started to think this is it. Thats thats the full explanation of whats happening. Brendan greely, the way you look at this is this simply the market was going straight up months and months. There was no correct. People were ignoring volatility. Again, betting against volatility when they shouldnt have . First off, stephanie, asking me to talk after Robert Schiller about market euphoria, about, like you give hendrix the solo and then you bring on greely. Investors are looking at baskets of stocks and bonds. If were going to look at stock prices and whats been happening over last two weeks, we should also look at bond prices. Ininvestmenters are getting a higher return on bonds. Theyre paying more. Were paying more for the privilege of borrowing money. Theres one of two things that could be driving it. One thing is theres anticipation of future inflation, right. Investors are looking at their stocks, are looking at their bonds and theyre saying we think inflation is going to happen in the future. Were willing to charge a little bit more to lend you money. The other possibility is we had more news out of the Congressional Budget Office last week that is looking at what it is the treasury is taking in after the tax cut legislation and it looks like that also might be driving the price of u. S. Debt, so we cant just look at stock market euphoria. We also have to look at whats going on in the bond market and the decisions that traders are making between which of those to hold. David, you truly look at the global economy, and for the last year, i have wondered why the market has ignored geopolitical risks. Thats one of the reasons we saw the vix, the fear index, extraordinarily low last year. I wondered why on earth is it this low when youve got issues in russia, in north korea, in the middle east. Are we now waking up to the fact that, oh, maybe there are problems . I actually think the issue here is a lot more simple. Its something you and i used to talk about a lot in the past. And thats Central Banks. And monday, we just got a swearing in of a new chair of the central bank. Jerome powell took the helm. Actually, it was a catastrophic first day for jay. I cant think of a worst day to start then monday. I feel like the market needs to test out the new fed chairman, see what hes made of, see if hes got the same sort of muscle that alan greenspan, ben bernanke and janet yellen had. These folks did a lot for the markets in times of stress. We dont know a lot about jay. We hear hes sort of channeling janet yellen but we dont know. Hes a trump nominee. Hes a republican. Hes got a different way of thinking about things. He hasnt been that clear necessarily on his monetary policy. More on his deregulation viewings. And we also have a new makeup hold on, david, david. Yes. He takes the job yesterday and we have a recordbreaking market drop. Those two dont seem to be aligned. Its not like Jerome Powell came out of nowhere. No, he didnt come out of nowhere. But janet yellen, this has been janets show for the last four years. And people knew what they were getting. I think markets are looking around and theyre seeing so many higher inflation data and theyre really wondering how is this fed going to react to maybe a little tickup in inflation, tickup in growth, and would they be more grieaggressive than a m dovish fed we had before. The typical line for the administration is think about them as being a little less dovish and the market wakes up and goes, wait a minute, lets see what these guys are made of. I think i wrote a i did write a piece today. I was thinking about this all over the weekend. It reminds me of the movie training day with Denzel Washington and ethan hawke, you know, you come on the job, its your first day and, you know, its time to get trained. I think jays got some training to do and the markets going to give him a little training and were going to see what hes made of. Can i jump in here . I just want to make one point. If this is strictly a central bank reaction, right, then we would expect all bond prices to move in tandem, right. They would all move together. One of the things weve been noticing is that government debt, particularly the yield, the return that we get on u. S. Government debt. That says to me investors hold on, Brendan Greely, im hitting you with a wonk buzzer. You are nerding out and were not having that. I want to go to Robert Schiller. Lets talk about inflation. Whether were talking about a weaker dollar, which is good for exports, tight labor markets, which is what we want. Tax cuts, which we have told people is going to be great for corporate america. Why is inflation bad for investors . Mr. Schiller. Im not sure it is bad for investors. It seems inflation at this point is moderated to such a weve got a target inflation of around 2 . Its kind of a slow steady background variable. It accounts for people being confused by the record socalled record point loss on the dow. Everything is scaled up. Its part of an illusion that Central Banks want to create. I dont think that inflation is i think that Central Banks didnt cause this. This was a fact of overpriced markets and the public thinking theyre overpriced and waiting for them for the moment when they think over investors have awakened to that possibility. And so when they see big price drops, this has happened before in history, they react to what they think other investors are thinking. Theyre not thinking about Jerome Powell. Theyve never even heard of him. Its a worldwide phenomenon. If you are an average investor and the president , for example, was selling you the markets over the last year, and you started to ride this trend, are those that are riding the trend the ones who are getting chewed up here, robert . Well, i think yes. The people face this dilemma. They generally thought the u. S. Market is highly priced, overpriced, and other markets also. But theyre afraid to sell out because they will regret missing furtherance of the boom, so theyre waiting for a cue to get out. This is how many, many people think. They just we saw drops last week. Initially they werent that big. Somehow the talk seemed to be suggesting maybe this is it. And people were watching the mood. On monday, they decided, maybe this is it. And so its that kind of thing. Now more and more people are being drawn into this because of all the excitement. Its the question of what the next round of people paying attention are thinking. I dont know what the market is going to do for the rest of today or in the near future. Also could be not surprising if it made an upswing. Earlier today, kevin hassette of the white house said while he cant get inside the mind of the market, he did talk about fundamentals in our economy. Lets listen to that. What set off the last couple of days clearly is the very strong Economic Data which shows that our analysis of the Economic Data is really correct. The data is so strong that clearly markets are starting to worry about fed policy. Growth has headed back towards normal. Normal involves a lot of other things too. I think what were seeing is Interest Rates seem to be moving back to normal as well. Okay. Then if hassette is right and it was good news that set this off but fear of missing out is what revved up the markets so high, what should people be focused on today . Brendan greely . They should be focused on actually what hassette says. In the midst of all the noise in the markets, we got really good data from purchasing managerings. Basically what this says is all over the world people who make real decisions in businesses are very confident theyre going to have things to buy and sell very soon in the future, right. So the actual data about people who make real decisions at Real Companies looked really good yesterday. So i dont think hes necessarily wrong. If youre looking for the one takeaway from somebody whos not involved in markets at all is that the fundamentals look good. The rest of it is sidebets on top of that. All right. David, your last point, to an administration who has been selling these markets, hanging the hats on the market for the last year, are you still feeling bulled up this is just a correction, a regime change . I think im going to agree, i think kevin is right, theres a lot of good fundamental stories out there. What i really think, stef, is what i said earlier, that people want to understand what this new fed is. Theyve been babied by the Federal Reserve all the way since 2008. Theyve been coddled and brought back from the near death experience. Theyve got a new doctor. They dont really know the doctor that well. They want to understand the doctor better. I think this strong data is something thats confusing. Because you just dont know how quickly these guys are going to try to raise rates or be a little bit different than feds in the past and thats where the markets getting confused. I think kevin said that. Were trying to figure out what the fed is going to do here. This really is i kind of think the balls in jays court. Hes going to tell us how quick are they going to be. How much are they going to get in the way of this and how much are they going to offset the stimulus that comes from the fiscal side and the deregulation side. And thats what the market wants to know. Theyre really probing that question by pushing prices pretty hard. Well, one thing that the market learned was that you cannot forget volatility is always just around the corner. And shorting volatility on a leverage basis could certainly burn you. Gentlemen, please stick around. We came off a huge day in the markets. I got a feeling were going to have another one today. So much going on. Were going to leave it there. President trumps lawyer is going to try to avoid a oneonone meeting with robert mueller. Could steve bannon be held in contempt for not appearing on the hill today . Plus, we havent even talked about the fact were three days away from a shutdown. How likely is a deal, especially after the president called democrats trees nus. Of course you know were focused on these markets and about ten minutes from now, theyre going to open. Lets see what theyve got to offer. Well, the comedians, they had their say last night. Remember when donald trump told us wed be tired of winning . Well, evidently, the stock market is exhausted. The Dow Jones Industrials closed 1,175 points lower today, which is the biggest single day drop in history. Its the worst drop since yesterday. Beyond is a Natural Pet Food that goes beyond assuming ingredients are safe. To knowing they are. Going beyond expectations. Because our pets deserve it. Beyond. Natural pet food. Welcome back. Youre watching msnbc. Lawyers for President Trump say he should not agree to sit down with special counsel robert mueller. That is according to the new york times, saying, quote, lawyers are concerned that the president , who has a history of making false statements and contradicting himself, could be charged with lying to investigators. Can you believe thats whats being said about our president . This comes in the midst of muellers Ongoing Investigation of russias interference in a 2016 president ial election. Lets break this down. I want to bring my panel in. A political reporter for real clear politics. And msnbc justice security analyst matt miller. And charlie sikes, who i am thrilled to see, but im not starting with you charlie, im going to matt first. What would refusing an interview with mueller signal . Because lets make it clear, in the past, President Trump said id definitely sit down with him. I think it would signal the president has something to hide. His lawyers are worried about one of two things happening in that interview. One, he tells the truth. And his admissions constitution admission to a crime. Probably the crime of obstruction of justice. Two, he lies to investigators and puts himself in greater legal jeopardy. One, the legal requirements, the legal rights the president has. He has the right to take the fifth amendment. Every american citizen has the right. But then theres a question of good governance. The president is charged by the constitution with faithfully executing all laws. I think that the American Public ought to ask something more of the president than taking the fifth amendment, then refusing an interview, then declining a grand jury subpoena, which is i think where this battle eventually ends us if the president refuses an interview. Charlie, how do you see this playing out . Because it was just a couple of weeks ago that the president said i look forward to sitting down with him. Theres no collusion whatsoever. Theres no obstruction of justice. Notice, he never says theres no money laundering. The lawyers would almost be guilty of malpractice if, in fact, they would sit donald trump in a room with these investigators. For the reasons matt mentioned. The one thing we know that donald trump has a challenging relationship with the truth. Theres no such thing as a perjury trap. You just have to not lie. Donald trump has shown himself incapable of doing this. So, again, how does this play out . Look, everything the president has been doing and his allies have been doing have led up to this moment. The discrediting, the attempt to delegitimize this prosecution. And now the president is going to stone wall this and the amen chorus is going to say well, of course, because this is a rigged investigation. Theres no underlying crime. But obviously this is not going to be the end. Well see how aggressive bob mueller wants to be in terms of subpoenaing the president of the United States. Whether or not the president of the United States will in fact try to invoke this. It would be an extraordinary moment. It is his right, but the question is, is it wrong. Im keeping my eye on the markets. Three minutes away from opening. One of the few people arguing for President Trump to speak with mueller is his own lawyer ty cobb. What do you make of that . Perhaps for all of the reasons we just described, the negative reaction that would come from not wanting to speak with mueller. Kind of the backdrop of this is really important as were talking about the sparring memos with the republican memo having now sat out there for a few days. The president , thats exactly kind of what the president had intended to raise doubts about this investigation, to undermine it, and to give him some political cover. He has that with the republican memo, however challenged it is, and with those republican allies in congress. So even if he were to approve the democratic memo, which is kind of all of the conversation today, he still has that republican memo out there undermining this whole entire investigation and providing him some political cover to not talk to special counsel. All right. All of this comes after House Intel Committee unanimously voted to release the democrats rebuttal to the house to the gops russia memo. Thats a positive. Because for anyone making the argument this is all about transparency, youve got to offer transparency on both sides. Matt miller, now it sits in the white house. Hows the white house going to handle this . Well, they say theyre going to put it through the process they put the last one through but thats not true because the last one the president approved its release before hed ever seen it which of course he hasnt done here. Look, if the president doesnt declassify this memo, that would be a pretty shameless hypocritical move after he didnt declassify after he did declassify the nunes memo. I actually will be somewhat surprised if the president does declassify this memo, just as ill be surprised if he does ever sit down with bob mueller. Usually when he has the choice between doing something that he sees as his advantage and doing the right thing, he chooses the former. So i suspect what well see the end of the week, he probably refuses to declassify the memo and it comes back to the house for a full vote. What will the rational . If house intel says lets definitely release this and the white house says no, why . Well, theyll come up with some sort of a rationale. Look, if he refuses to release this, it will be stunningly hypocritical. This is a postshame presidency. We do know that. I agree with matt about this. It also would be a sign of how aggressively he wants to stone wall this entire investigation. All right, that is the ringing of the bell, right there, you can see. Its ubs on the platform today. Notice, i dont see New York Stock Exchange president tom farley up at the podium. Im getting hes closely watching market technicals. I want to bring in my colleague and friend dom chu of cnbc. Here we are, market down 525. We saw a lot of that selling pressure pick up yesterday, going into the closing bell. I remember being on set with us, the end of the 2 00 hour, the last hour of trading, and watching hundreds slide off the dow during that time. A lot of this is borne because of a number of different factors in the marketplace. We do have this idea that rising Interest Rates are part of the story. Theres also a market commentary floating around right now. For those traders and investors, who are trying to profit off a stock market with no val tilt, that when that volatility did return, a lot of them did get hit very hard. Much of the selloff has been exacerbated by those factors. Thats the reason the selloff is carrying over into this mornings trading as well. 500, 600 points again. While were trying to tell people, stay the course, slow and steady. Believe in the investments you invested in because you cared about those stocks. Ali velshi, for momentum players, how scary is this . Remember, momentum players are those people who really worry, hey, i dont want to be catching a falling knife, so they get out. Its very scary. Particularly if youre closer to retirement. If youre not, i need to remind you, not to worry. Weve been tracking this all night. 1. 9 , 2 , thats not a crazy number, right. When you have a market thats up 30 , to see a pullback like that. When you add that to the 8 1 2 weve had, were almost at 10 . Were almost in what you call a correction territory. Some people think thats really scary. The markets 10 from its highs. The highs on all the major markets were set on january 26. The dow, the s p and the nasdaq. Keep in mind there are a lot of investors, a lot of pros out there the saying, wow, as soon as we hit that correction, a tj lea technical level, 10 , im getting back in. Were not going to get into all the technicals. You and i like to talk about them, the price to earnings ratio. There are few people who thought stocks three weeks ago were at acceptable levels. A lot of them thought the market was a little bit frothy. Im actually heartened by this 1. 25 . Because i saw numbers that looked at 3 projections. The idea it went down, dom was talking about almost 600 points just two minutes ago and now were down 300. I dont think this partys over. I think its going to go on. The idea as there are sellers there are also buyers willing to get in, tell us maybe this was a Necessary Evil in the market and it will probably settle in at some point. Again, were not hold on a second, hold on. Ali, when you say the partys not over, do you mean the party as in the bull run or the party as in the drop . The bad party. The hangover party. The selling off party. Thats exactly right. Look, a bull run is something that is enjoyable. Its been with us for a long time. But when you look at bull runs over the last century, none of them didnt have a correction except the one were in right now. Its just part of the normal way of doing business. But its important to note a correction, Brendan Greely is not a crash. We heard the market raging on and on and on with no corrections. With no pullbacks. Every day, we had the administration talking about the power of tax cuts, the power of deregulation. How those tax cuts get paid for the. Is there a Silver Lining here . Is the correction spooking the markets going to cause the fed to say, you know what, maybe we wont raise rates so quickly, because rising ratings does cause concern. It could be a catastrophe, a blip or the dawning of a new reality. I think we can all rule out catastrophe. None of the underlying economic fundamentals say this is something that necessarily has to be happening right now. Right . Weve got good data. Any data you can name over the last two or three months has been really good. When its actually looking at people buying and sell things in the real economy. Now weve got, is is it a blip or the dawning of a new reality. I think one thing thats happening is there have been certain things straw Central Banks have been doing for last five years to bring down the price of debt. We dont need to go into the technicals of that. It does look like thats changing. And as it changes, nobody really knows what to do. I think what were seeing right now is confusion because the world is slowly changing. I dont think this is a blip. I think this is confusion about what the future of Central Bank Policy will look like. To your point, good news can be bad news, right. Good news for the economy can be bad news for equities. Sorry, for stocks. If it looks like people are going to get raises, that could cause inflation. That could cause people to sell off their stocks. Dom chu, that are the guys on the flew telling you . Because theyre the guys who are there every day. They are telling me a lot of the things you mentioned. A lot of this is driven by fears over perhaps blt Interest Rate pictures are going now. A lot of this driven by the idea we were long overdue for a pullback in the marketplace. Ryan detrick over at lpl financial, hes one of their investment strategists. He he notes going into yesterday, the s p 500 of stocks had gone 400 days in a row trading within 5 of record high levels without any kind of a pullback. That kind of a streak was the longest ever of no downside volatility in history. There are those traders out there who simply believe that statistically that doesnt happen very often and we were due for this sort of situation. But to brendans point, the idea that the Federal Reserve could be on this rate hike campaign, to raise Interest Rates gradually over time. Whether that will have an impact on the economy overall remains to be seen. A lot of folks out there believe as Interest Rates rise, as the cost of borrowing rise, it may just tap the breaks on the economy. And if that were to happen, should stocks be at the levels that they are right now. This is no imminent crash. Were not going to recession any time soon. But maybe the market should just be valued differently, given some of those economic fundamentals you just mentioned. Thats okay, david zervos, chief strategist at jeffries, still with us, even if the markets were exactly where they are right now, post the big drop weve seen in the last two days, thats still a very strong market. We cant forget that. Isnt that true . Absolutely. Weve had an incredible run. An incredible run since the election. So trump can probably take some credit for that. Weve had an incredible run well before the election. Weve had an amazing run since 2009 when we all saw the edge of the abyss. I keep coming back to the same story line since the beginning of this show. I really think people are trying to figure out the new central bank. What is Jerome Powells Central Bank Going to do. And what is the new fed that donald trump will continue to make up with another with the vice chairman he needs to appoint. A few more governors we need to appoint. A lot of malability with this fed. What were seeing is probably the administration realizing this is a pretty important set of decisions on the vice chair and the other governors because if they get hawks in there and start to scare the market with rate rises, like what weve seen recently, their sort of story line of good stocks, good economy, good job, is going to be harder to sell. I actually think this puts the Trump Administration in a position where theyre probably going to even look possibly to democrats for some of these positions at the fed because they tend to be more dovish. We heard John Williams name, Janet Yellens protegee, being floated for this vice chair job. I thought it was surprising a republican president was going to pick a democrat to be the vice chair. But now looking at the market reaction, that might not be such a silly idea. I dont know, david, im going to bet you two bucks that wont happen. We need to point out the market now down only 100. So there is a good chance the market is processing this. Just as everyone has been pointing out through the you the morning. Processing a new fed chair. Processing this idea of rate increase, of inflation on the horizon. Again, all of those investors we talked about who just bought into this market, started to assume that theres no volatility who traded against it, who shorted volatility. As that is working its way through the system and we get back to fundamentals, we could be turning positive. Gentlemen, thank you for helping us break this down. All eyes on this market. Up next, were just three days away from another potential Government Shutdown. The white house says a Bipartisan Senate proposal, its a nonstarter. Can you believe that . You were thinking i was going to say bipartisan. Were going to move forward. Nope, they say its a nonstarter. So what on earth will get things started . By the way, President Trump blasting democrats as treasonous for not standing during the state of the union. Wasnt unity the theme of that speech . For your heart. Your joints. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement in drug stores nationwide. Prevagen. The name to remember. Looking for a hotel that fits. Whoooo. Your budget . Tripadvisor now searches over. 200 sites to find you the. Hotel you want at the lowest price. Grazi, gino find a price that fits. Tripadvisor. Welcome back. Youre watching a big day on msnbc. Here we have the markets opened just about 15 minutes ago and have returned to positive territory. Trying to recover after the dow suffered its worse single day point drop in history. Plunging nearly 1,600 points during trading hours and right now it has turned positive. Were watching this closely as we are pushing, pushing people to focus on longterm, focus on fundamentals. It is never a good time to panic. There we are. The market up 36 at this point. Its momentum players who have had a tough ride. Were going to stick to fundamentals. Now we turn to politics. The government funding bill will run out on thursday. And lawmakers have yet to come up with a deal on daca. Of course, the immigration policy that essentially forced the last shutdown. My panel is back to talk this over. Kate lynn huey burns, charlie sikes. Katelyn, house expected to vote on their version. It would extend spending until march 22nd. But what does that do . That is just more can kicking. Exactly. Operating funding the government on these shortterm deals. Weve seen this time and time again. And the question is, you know, what happens after that of course how long can they go on. Whats really interesting here, too, is that on top of this, you have the Big Questions about what to do about daca. Its unlikely that daca will be attached to a government funding bill. But remember, that march deadline is creeping up faster and faster. With really no end in sight for that either. The president and the white house rejected a bipartisans proposal put forth by senators coons and mccain. Its not entirely surprising they would reject that. That was a bill that did enjoy bipartisan support. So what can get a majority of people on board still remains to be seen for that and for the government just operating on this, you know, month to month basis. Charlie, then we shouldnt be surprised that the white house said its dead on arrival unless you give money for the brick and mortar wall that the president wants to put up between the United States and mexico. He doesnt want to hear what you have to say. We could cheer on dick durbin and graham and mccain all we want, but does it matter . No, not really. As long as donald trump is not going to lead on all of this. By the way, just think about this. A few weeks ago we were close to having a bipartisan compromise and the president blew it up with his shole comments. It was a week ago that the president gave the state of the Union Address where he talked with unity, coming together, and now hes referring to the democrats as treasonous. Look, in earth 2. 0, the level of government dysfunction thats represented by the failure to be able to pass any sort of a spending bill would be the dominance story, the dominant theme out of washington, d. C. But now its just become routine. Its almost become like the fourth or fifth biggest story of the day. Yes, they are not going to be able to come up with a spending bill. Yes, they are going to kick the can down the road. There are realworld consequences to this. It is the inability of this regime to really govern. Lets talk about those realworld consequences. Because its that gridlock, its the inability to govern which cause so many people, katelyn, to vote for President Trump. Because they felt the gridlock was so miserable, having a pragmatic Business Leader in the oval office was going to change that. And hes turned out possibly to be more idealistic than anyone realized. Right, exactly. Or stuck on promises. Right, exactly. Campaigned as the deal maker to change the status quo. Well, the status quo is the shortterm funding bills. Kicking the can down the road on several key issues. Whats interesting here, too, is remember, the president faces a very different political reality this year than he did last year. Last year, he enjoyed pretty much full control of congress and he was able to pass that tax bill with only republican support. This year, things are very different. He needs bipartisan support for anything he wants to accomplish. Remember that threshold of control they have in congress on the senate side is very slim, no margin for error. You would think as he laid out in the state of the union would be kind of reaching for bipartisan support, instead calling democrats treasonous for not standing up during the state of the union. Remember, democrats already have little incentive to work with this president. You see it in the poll numbers. You see it with the energy among the Democratic Base over these last several elections, special elections, offyear elections. That is only going to further this divide in congress at a time that he needs bipartisan support. By how exactly is this a Winning Strategy . The President Trump is devoted to his base and his base is devo devoted to him. Weve been saying he needs to govern the country. For not standing up during the state of the union. One of the reasons they didnt stand up, when the president was touting how low african unemployment is. And while that is a Huge Positive, the issue isnt the democrats were disagreeing with that. Its they were disagreeing with the fact that the president painted a draconian picture of the United States and the economy a year ago and now is taking full credit for the party for the great economic recovery thats happened over last year. Thats what democrats werent standing up for. So the president continuing to say things like theyre treasonous, to call names, to go back to his base, to get stuck on the wall. How does that help him . How does that help republicans in the midterms . Well, it certainly doesnt help the country. The president was, what, he was joking, he was speaking tongue in cheek, but look, words matter. When the president of the United States uses words like treason. Well, thats actually a very interesting point. The way that he has normalized this smearing of your opponents. The way that he has normalized this viciousness, this divisive brand of politics. Because this is, you know, his brand of politics. It is to play these cards. It is to be the cultural warrior. It is to portray your to portras treasonous, as unamerican. And the playing to the base is, look, right now hes looking at those senate seats where democrats hold the senate seats in states that he won and i think the thinking to the extent that there is any thinking behind these impulsive gestures at all, and i question that, would be that you have to keep the Republican Base riled up. We know the Democratic Base is energized but the president suggested that maybe the republicans are get a little complacent. I think youll see more of this ugliness. Any suggestion that this president is going to be a un e uniter, is going to be a statesman, is just incredibly naive and the pundits should have recognized that before they gushed other the comment he is made last week. Then i guess im incredibly naive. Were talking about the Republican Party that would be fiscally conservative. Have you looked a the debt and deficit situation. Family values, have you looked at stormy daniels. And the Republican Party, law and order, have you looked at the president going after the fbi so im confused on what that means. Carly, ka charlie, kaitlin, thank you. Up next, there are 237 days until the midterm elections. Now the Supreme Court says district lines in the swing state of pennsylvania need to be redrawn. But first, lets give you another check on the markets. Remember the stunning couple of days weve had and now we are up, up 166. What does that tell us . It tells us people are focusing back on fundamentals and the news we got on friday that really started to push things was tight labor markets, good jobs numbers, wage increases, those are positives but positives that could cause inflation and inflation causes volatility and volatility certainly spooked the markets and spoked those in a big big way. siren wailing barry murrey when you have a really traumatic injury, we have a short amount of time to get our patient to the hospital with good results. We call that the golden hour. Evaluating patients remotely is where i think we have a potential to make a difference. barry murrey we would save a lot of lives if we could bring the doctor to the patient. Verizon is racing to build the first and most powerful 5g network that will enable things like precision robotic surgery from thousands of miles away. As we get faster wireless connections, itll be possible to be able to operate on a patient in a way that was just not possible before. When i move my hand, the robot on the other side will mimic the movement, with almost no delay. Who knew a scalpel could work thousands of miles away . I knew at that exact moment, whatever it takes, wherever i have to go. Im beating this. My main focus was to find a team of doctors that work together. When a patient comes to ctca, theyre meeting a team of physicians that specialize in the management of cancer. Breast Cancer Treatment is continuing to evolve. And i would say that ctca is definitely on the cusp of those changes. Patients can be overwhelmed. We really focus on taking the time with each individual patient so they can choose the treatment appropriate for them. The care that ctca brings is the kind of care ive wanted for my patients. Being able to spend time with them, have a whole team to look after them is fantastic. I empower women with choices. Its not just picking a surgeon. Its picking the care team, and feeling secure where you are. Surround yourself with the team of Breast Cancer experts at Cancer Treatment centers of america. Visit cancercenter. Com breast on thousands of hotels, cars and things to do. Like the papaya playa project for 49 off. Everything you need to go. Expedia. Welcome back. You are watching msnbc. A live look at the dow. Are you ready for this . Now up more than 300 points. Thats a Huge Positive. I have to give a hat tip from jim cramer to cnbc who since 3 00 a. M. This morning has been saying slow down and look at fundamentals. Fundamentals, those who bought in to companies, stocks, who had very strong earnings, who the tax cuts are a Huge Positive for. Those are wins. Who got blown out in the last two days . Those who are short volatility. Investors who believed the good times were never going to end. Well, its happening now and its a normalization. This is a big positive development. Now well turn back to politics where theres bad news for republicans ahead of the 2018 midterm elections. The state of pennsylvania must redraw its district lines this month. The u. S. Supreme court upheld a Lower Court Ruling monday ordering the state to redraw its congressional maps after it found the current map had been unconstitutionally gerrymandered. In other words and you have to focus on this, because we dont Pay Attention enough to how exactly gerrymandering works the map was unfairly drawn to favor republicans in elections. The republicancontrolled state legislature has until the end of this week to come up with a new map, otherwise the court will draft its own. I want to bring in msnbc Political CorrespondentSteve Kornacki. Walk us through what this issue is. Money power politics is what we like to focus on in this show and its important to note how these lines are drawn and who draws them. Gerrymandering is a term from the early 19th century yet its a major issue in 21st century politics. Were talking about pennsylvania. We all remember, 2016, one of the closest states, one of the reason trump is president. We always talk about it like a swing state. Trump, the republican, won it by just over 40,000 votes in 2016, obama won it in 2012. Now, pennsylvania has 18 congressional districts, now you would say a state this competitive, what is the balance, 99 . No, 135, there are 13 republican districts in pennsylvania, five democraticheld districts. This was true in 2016, this was true the last couple elections. A lot of what this has to do with is how these lines are drawn and specifically its in this part of the state here, philadelphia, getting out of the philadelphia area, a lot of population, theres a lot of democratic voters and republicans in control of that legislature and a few years ago the Governors Office drew these lines into very, very precise ways to get just the right number of Republican Voters over here, just the right number of democratic voters over there. Heres what it looks like when you zoom in. This is the seventh district. Some people say this looks like i think the Washington Post said goofy kicking donald duck or donald duck kicking goofy. Its a rorschach test, i guess. But this is a congressional district. You can see how its drawn, its so narrow so they can move out to lancaster county, pick up republican votes here, move to burkes county, pick up republican votes there. Takes out the eastern part of delaware county. Its drawn in just the right way to advantage a republican. Thats what gerrymandering the court is saying. Thats what the republicans in pennsylvania have to change. Theyve got a week to do it. Steve kornacki, thank you. Before we go, you know i like to end the show with theres always good news somewhere so here you go. A. J. Muss is a snowboarder from my home state of new jersey who was headed to the olympics after overcoming unbelievable odds. In 2014, muss was in a medically induced coma for two weeks after complications from shoulder surgery. One year after his coma, he competed with the u. S. World cup team. Last tuesday he qualified for the u. S. Olympic team. That, right there, is an extraordinary story and we are certainly rooting him on. Thats good news. That wraps up for this hour. Im stephanie rurhle, you can find me all day long on twitter. Now hallie jackson, hallie, do you have off tomorrow . Thursday is the parade and it will be Steve Kornacki sitting in this seat very graciously, im be reporting from the today show from philly. West coast best coast girl. Thank you, see you in an hour. We want to stay on the breaking news reverberating from wall street to washington and beyond. Stocks are bouncing back in the first hour of trading. Dow is up about 248 points after fi