but here at home we're having a holly, jolly christmas season. it is absolutely phenomenal. retail sales, headlines don't do enough. i will tell you how good they were. the american consumer, playing the role of atlas. all that and more on "making money." ♪ of the. charles: we begin with investors throwing in the towel. record amount of money taken out of mutual fund and investors. 90 approximately dollars in one week parked on sidelines. is this run and market general panic jay powell ranked as one of the top four threats in the u.s. economy. remember he talked about fire sales, booms and busts, of course financial bubbles. this all happening as individual investor sentiment the most bearish since august of 2011. while all this sounds very scary keep a couple things in mind. the last time the investors got this bearish, the market was up significantly six months later. is this capitulation a overreaction or will things only get worse from here? securities chairman and ceo jason trennert. president of mahoney asset management, kima hone any, ceo of x and o well advisors, tim courtney. sorry guys, long read, tongue-tied, but jason, start with you, one thing experts always wait for is capitulation. i always felt there was rolling capitulation, maybe there is more to come but whenever we see investors this bearish, not just individual investors typically a sign maybe something positive may be happening down the road? >> i very much agree with that. also important to note market bottom since march of 2009, there are net redemptions in mutual funds and etfs before this week in that period. you never had speculative excess. part of the reason you never had the speck la excess, a lot happened in the private market, not public markets. charles: right. >> not had a public market that would draw retail investor. in my estimation, fundamentals are strong. people are worried for good reasons but my view this capitulation to buy is good opportunity to buy, rather than to sell. charles: ken, same question here. i love jason brought up this point, mutual fund, equity investors gave up a long time ago. there is general anxiety there, gets worse and worse. i see it amongst professionals. >> think about this they were not liquidating in august and september when we had a record. market cap trillion dollars being lost now we're getting liquidations. opposite side of things. investors buy high, sell low. in august, what were inflows. tens of billions of dollars of month in equities going into markets and now we get the downdraft, we see money coming out. i don't like about that part. money managers are hand tied. they are getting liquidation notices. they have forced liquidations. they are forced to make sales. charles: tim, the role of etfs get highlighted. once the snowball goes particularly passive investing seems to feed on it as well. >> right. difference between short-term and more speculative investors and longer term truly investors wanting to invest in market and companies and profitable and productive companies the world over. we've gone through a period where we've heard over the last couple of months how this is the longest running bull market. and people are starting to think, well, it has got to end sometime. and so if the market has gotten weak like it did in october, that kind of gave the market the push it needed to say, well, maybe we are headed for recession. i think the market is priced as though we are headed into a recession but it also give as lot of false-positives. saying the market predicted nine of the last five recession is. tended to do this before 2011. we didn't go into recession in 2011 of the market with the earnings is like has been said, fundamentally strong. charles: right. you know, jason, to that point we've seen p-e ratios come in dramatically. >> yeah. charles: you know, just using traditional valuation metrics obviously looks like the market is significantly oversold. but having said that, you moment ago you said there are concerns. what are the some of the legitimate concerns in your mind? >> legitimate concerns are macro concerns. one concern the fed might be overtightening. making a monetary policy mistake. charles: i started with the four things that jay powell mentioned at the new york economic club. the second thing he said, ranked them in possibilities or probabilities. not sure we considered taking money out of the etfs, run on the banks but it is akin to something like that. >> they would argue against him tightening next week even but likely will tighten next week but one thing would argue against it, weakness financial sector and banks themselves. if he so sure how strong the economy is, i'm also secure the economy is quite strong and i'm sure there are very few signs of inflation. there is no rush in world of zero or close to negative interest rates, there is no rush for the fed to be too far out ahead of other central banks. charles: draghi said i'm keeping qe in the tool box. that was before last night, another wave of negative news and weak economic data in china. all eyes next week on the federal eserve. the q&a afterward, should be explosive. >> fed's powell is making volatility great again. the fed raises rates until they break something. october 3rd we're far away from neutral, sumwer we saw homebuilders roll over, real estate, things tied to interest rate sensitive sectors, rolling over until october 3rd when he saying far away from neutral. six weeks later we're close to neutral and here we are. charles: everyone agrees jay powell made a huge mistake. he maybe spoke off-the-cuff, rookie mistake, maybe. seems like he regrets that moment. he tried to walk it back in a way, not embarrassing. so we'll see. but, tim, to that point, cpi report, everything went down, only thing that went up was used car sales. i'm not sure why. used car prices are going through the roof. what are you worried about right now in this environment? >> i think the primary worry the markets pricing in weakness. part of that is trade uncertainties. we've seen weakening numbers out of china. i think also japan and germany were also negative in the third quarter. i want to see if the numbers are confirming what the markets are telling us. both the equity markets and bond markets are saying weakness is coming. doesn't seem like from other indicators we're seeing that. so i think this is probably overdone but i would want to see what the gdp numbers are worldwide coming in over the next quarter. charles: right. >> i want to see if earnings are continuing and revenues continue to hold up if they are. and this is probably overblown. charles: flash pmi in this country. relatively unchanged. retail sales report through the roof. control group suggested this is a gdp number, between the number for november and october. suggests gdp i think we definitely will have 3% over the year. then of course the benign nature of official data, is it possible, jason the markets can create their worst-case scenario? these markets falling apart, these redemptions create the recession that experts are saying is out there but hard to find in the data? >> it is very difficult to do that without a real crash in the banks. charles: they're looking ugly. >> they're looking ugly. the banks are extremely well-capitalized. much better capitalized than they were prior -- charles: much better capitalized than reflected in the share price. >> absolutely. it is hard to have a systemic problem without the banks really hurt. i think the banks are fortresses. i think they're on sale now personally. i am invested that way. it hasn't worked out this year but i'm sticking with it and -- charles: when you know things are bad. >> when you know you should be buying. >> charles, you said what would you like the economy to have? 3% gdp, 2% cpi. low unemployment rate 3.7, creating 150, 200,000 jobs a month. that is what this economy is doing. charles: goldilocks. >> we're setting records, a few weeks later we're taking it on the chin. charles: jason likes banks. is there any area attractive or area of stocks? >> bugaboo about banks, trains ports, i don't get what is going on out there. margins get squeezed. i don't know what that is is. charles: i think fedex ups story. downgrades. there is assumption amazon will eat their lunch at some point. they're the ones, to your point some of these others are looking pretty good. tim, what industries sectors are you looking at not today but as the dust settle ises? >> it has been value sectors across the board which would be things like industrials, basic materials, energy, an also financials for sure. one of the names we like in the banking civil is suntrust. you're -- system. you're looking at banks, including this one, trading in a single-digit p-e but this company is an innovator in online lending. so they have, i think a really leg up in competing against the other banks. charles: yeah. >> so we like the value sectors, financials included. >> we'll see. i got waxed, i've been getting waxed this year in industrials and materials. we'll see. i thought, i thought they were a bargain coming into 2018. but you know the old saying on wall street, if you liked it at 50 you got to love it at 25. gentlemen, jason, ken, tim, thank you very much. >> thank you. charles: one of the biggest market movers today, johnson & johnson. check this out. the stock on track, it will be probably the biggest percentage drop in more than a decade. we're talking about wiping out $24 billion in this company's market cap. this after a reuters report that says the company knew its baby powder was contaminated with asbestos. j&j has been battling some 6,000 cases, claiming its products caused cancer. now this news. wow. it is shellacking what was the strongest group in the market, health care. coming up next, one of the president's top economic advisors, peter navarro, he is going to join us, with his take on today's great economic data. of course i will slide in something on china. see how we're doing there. i have a feeling he will be pretty excited about it. so stay with us. ♪ think your large cap equity fund has exposure to energy infrastructure mlps? think again. it's time to shake up your lineup. the alerian mlp etf can diversify your equity portfolio and add potential income. bring amlp into the game. before investing, consider the fund's investment objectives, risks, charges, and expenses. read the prospectus carefully at alpsfunds.com/amlp ♪ ♪ this holiday season, families near you need your help. visit redcross.org now to donate. i never thought i'd say this but i found bladder leak underwear that's actually pretty. always discreet boutique. hidden inside is a super absorbent core that quickly turns liquid to gel. so i feel protected and pretty. always discreet boutique. charles: down day for the markets after weak economic data out of china really started the day off. we had knee-jerk reaction. it has just gotten worse. worried about global economic growth. president trump tweeting this morning, china just announced their economy is growing much slower than anticipated because of our trade war with them. they just suspended u.s. tariff hikes. u.s. is doing very well. china wants to make a big, comprehensive deal, that could happen, rather soon. definitely right about one thing specifically. u.s. is doing so much better vis-a-vis what china is doing. our numbers out really tell the story. industrial production, retail sales. meanwhile getting crushed over in china. looking very good in this country. peter navarro is here to join us. peter, first talk about the u.s. economy, how great it is doing. how it continues to confound the expert, the same experts calling for doom and gloom and calling for recession. also the biggest miss on unemployment claims yesterday which dropped to a 49-year low. the biggest beat all year long. wall street didn't expect it. i don't think they expected today's retail sales expectations. they blew away all the wall street expectations. the wall street keeps looking for gloom an doom. this administration delivers great economic data every time it comes out. what is the deal there? >> as you pointed out industrial production was double that of consensus. you missed one, charles. how could you miss this one? iron and steel utilization 82% highest since 2018. great testimony to the impact, positive effect of the trump tariffs. plus, we saw recently that the consumer consumer price index zero inflation. zero inflation. so, i heard your seg men earlier. tim mahoney talking about the fed raising rates and this, that, other thing, i think the argument for the fed not to raise rates in december is a strong one, not that things are weakening but that we have a really strong economy here, charles without inflation. why, the only reason why the fed would raise rates is to fight inflation. we're not seeing that. the reason, charles, we're not seeing that because the trump policies, the trump policies basically allow to us grow by increasing investment and productivity, moving forward, fighting inflation, deregulation fights inflation. corporate tax cuts which stimulate investment fight inflation. so you have to ask yourself the question, charles, what's the fed up to? i've said many times now that they moved too far too fast. i think -- charles: peter, what would you say to critics who say, even if the fed wanted to change their mind right now the constant criticism from president trump made that impossible? if they don't hike next week it will look like they're being pushed around and bullied by the white house and they will lose all the confidence of wall street? >> i would say that is the silliest argument ever because what the fed needs to do is the right thing. if they look at the data, at this point in time as opposed to when they might have announced their intention to do this, they will see we have a very strong economy. the trump policies are working beautifully to restrain inflation. there is no inflation in the data. the markets obviously are concerned about the fed going too far too fast. if they just look at it in a rational way, do their job like they're supposed to, i think we would have a good result. but the bottom line is whether they raise rates or not in december, what we have, charles, is a very, very strong economy here, driven by four points of the compass. it is deregulation, it is a good trade policy, unleashing the energy sector and corporate tax cuts. this is the trump economy that this president promised. neil: right. >> he is delivering. neil: charles: peter i will ask you a little bit about the china situation but listen to my thoughts on the way the administration articulated this recently. last week the biggest source of market pressure came from a presidential tweet in a parade of white house officials constantly contradicting themselves and working too hard to appease the wrong people. wall street is not rooting for the white house and white house is wasting its time falling into traps when it tries to defend itself. peter, i think that you're going to win. i think you're winning. by the way i think it is going to be quote, unquote beautiful deal that works out for china, united states, the rest of the world but it feels like every time you guys try to appease or assuage wall street, which doesn't want you to win. which doubts you every single time it just hurts your cause. >> charms, i -- charles i thought you held back a little bit. here, let me this, i said the same thing yesterday morn on maria bartiromo's show, what wall street should do, we should do, everybody should wait until march 1st to see what the chinese offer is and how the president responds to it because ultimately it will be the president that makes the decision. the problem we have now is that the chinese government basically is feeding press releases to the american media which is dutifully printing it. wall street reacts to it, creating a cycle not healthy. charles: -- america's financial media. i can tell you this, peter, i read in the south china morning post the fact that made in china 2025 couldn't happen. that china will miss its current five-year economic plan. it missed its last five-year economic plan. they haven't invested enough money and it is too ambitious. you could read over there tuesday they would make adjustments in made in china 2025. our media is slow to pick up on it, every time positive news announcement greeted with so much skepticism people hear on tv, china is lying, they will not live up to it, maybe the dates are wrong. an amazing amount of pressure. >> here is what i think is important for the markets in terms of confidence. what we have is the best president in modern history on trade, hands down. what we have is the best trade negotiator in robert lighthizer as the u.s. trade representative, hands down, who has just come off negotiating the best deal we ever had with the u.s. mexico canada deal. so let's give the process some time. have confidence whatever the outcome is it will be best for the american people, best for the economy, best for the markets and don't get lost in the day-to-day movements of all the spin cycle because that can lead to nowhere. my own view is that these markets are not being driven so much by the china narrative but by the interest rate narrative and we've got to deal with that because at the end of the day this economy is unbelievably strong. i heard the word, gold goldilocks mentioned in the earlier segment. that is right on. charles: yeah. >> 3.7% unemployment. the best thing for me, charles disproportionately folks on lower end of the income stream are benefiting from lower unemployment rates, enjoying relative wage gains to the rest of the population. that is pure trump economics. that is what he promised on the campaign trail for hard-working men and women. it is like -- charles: i agree all of that, peter. in fact i think it is so sad, heartbreakingly sad, on friday that was not reported at all. 4 percentage point decline for high school dropouts. bus enup plate for high school -- unbest unemployment rate for high school dropouts. wall street dismisses it. knee-jerk dismisses it. it hurt the stock market. i think you guys made a mistake to appease folks that don't want you to win in the first place. i appreciate you coming on my show. >> chars, i hope you never accuse me the president or lighthizer being appeasers, that is not how we roll. we're trying to do the best for the american people. charles: chinese media calls you three? right? >> no, i don't. charles: the iron triangle. the when this blew up the first thing this said these guys are the iron try -- iron triangle only believe tariffs work and living in a past age. >> i will wear that a badge of honor. i love what you do on the show, my friend. charles: thanks a lot. allall eyes on china because ofe economic data shows the real reason for economic volatility. tariffs are out there, legitimate worries about the slowing economic growth and how it may eventually get to our country. we'll break that down next. the fight for capitalism. capitalism, i keep telling you better wake up. it better defend itself. marco rubio, the latest to say it better get its act together or maybe america will choose a different system. let's save the american dream. we'll be right back. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. 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"all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. wat t. rowe price, hundreds of our experts go beyond the numbers to examine investment opportunities firsthand. like a biotech firm that engineers a patient's own cells to fight cancer. this is strategic investing. because your investments deserve the full story. t. rowe price. invest with confidence. charles: lots of news out overnight from china on their economy. first, a lot of trouble. we're talking like in all areas, right? from manufacturing to retail, very sharp declines there. china also announcing suspension of extra tariffs on u.s.-made automobiles, auto parts for at least three months. does all this mean perhaps a trade deal is more likely? ultimately how does it affect your money. we have rob luna and horizons's investment chief global strategist, greg valliere. greg, let me start with you. >> sure. charles: we know china's economy was slowing for a long time. was slowing before the trade war, but the role does it play vis-a-vis the trade negotiation? >> i think we'll look back on december 14th, was the turning point. the economic data show a rapidly slowing economy. what do the chinese leadership fear more than anything else? social unrest. if this continues, manufacturing jobs plunge, you will get a rise of dissent within china the leadership has to worry about. charles: greg, isn't it ironic though, to have retail sales growth at 8%, industrial growth -- >> yeah. charles: their numbers are still so amazing compared to any other country in the world, even us in some of these metrics, but i guess commitments they made, debt they made, it is still precarious, right? >> yes. i would say one of the really big angles, charles, this woman who was the chief financial officer of the tech firm, her arrest had nothing to do with the chinese policies is. they have liberalized in the last 24 hours despite her arrest. charles: good point. rob, in the meantime from a stock market point of view, i think we got a chance today with the market being, the dow off 460 points, i understand the real china story, maybe the real china threat to people's portfolios may not be the tariffs as much as china's economy imploding? >> yeah. it is great point, charles. i think we saw that today and i think a lot of today's selloff, i know peter navarro was talking about the fed. i think today was definitely based off the selloff. if you look before the industrial numbers, retail numbers came out of china, starbucks hit the wire with some bad earnings. what was their major gameplan to get revenue juice back up? double stores in china. when they saw the numbers came out, algorithms we're -- took over. charles: greg, starbucks, even today, tesla saying hey, we'll lower the price of cars in china because tariffs are lower. we know china is a critical part of the global economy. we don't want their economy to collapse, do we? >> no, we don't of the we have other problems, needless to say the uk, who knows what will happen with "brexit." you have france, other countries in western europe are softening. it is not a good climate. why the federal reserve feels they have to raise rates next week is beyond me. i don't think they have to. charles: do you think they would raise it to prove their independence? because i think janet yellen did that, the first time she hiked rates and it was disasterous for the stock market. >> i would say the major economic development in the u.s. this week has been an utter absence of inflation. the inflation data was really tame. charles: rob, where are you on the fed next week? is it okay if they hike once but go out of their way during this q&a to say we're going to be completely data dependent? >> i think so, charles. i would be completely surprised if they didn't hike next week. it isn't it kind of childish to hike just because the fact you want to prove there is some independence possibly? i think the market is baking in the fact they will raise next week on the 19th when they will be announcing that. that being said, to your point, the rhetoric has to slow down. the fact of neutral, we probably need to hear them say we are at neutral. we need to look at a pause. as navarro said there is really no reason to be raising rates right here. charles: if they want to pause, i hope they don't do it next week, worry about people claiming they got "punk'd" by the president, that is their job. i appreciate it. >> thanks, charles. >> the republican party has a problem. and voters, voter frustration with big corporations. big corporations laying off people, buyback their own stocks. things like that. one of the party's biggest stars says something has to change. i have a panel that will weigh in on capitalism, effort, need, to save itself, right after the break. ♪ (toni vo) 'twas the night before christma, and all thro' the house. not a creature was stirring, but everywhere else... there are performers, dancers, designers the dads and the drivers. there are doers of good and bringers of glee. this time of the year is so much more than a bow and a tree. 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the latest glitch in the social media giant's privacy policies is huge, plus is now the time to buy and sell? we'll have experts weigh on the mixed messages of this market later in the show. i want to talk about last year's gop tax cuts. they have had a lot of things. they helped american corporations big time. we see it in productivity. we see it in the creation of jobs. many spending the tax cuts also on buybacks, that is where you get a lot of criticism. more recently senator marco rubio. he says these buybacks are coming at the expense of the american worker. he is proposing something that would change this and sort of make companies focus, in fact he writes in "the atlantic," to reassert the dignity of work we need to start building an economy invest in workers and things they make. make american corporations driving of investment like they were at start. this sounds like elizabeth warren. he -- sound like a guy running for president. i read this. bring me liz peek. bring me james freeman. >> here we are. charles: the american dream is about the opportunity to earn happiness and the government has a responsibility to facilitate that marco rubio. >> has a great backstory. the family coming from cuba, working very hard, achieving more than middle class success for their family and i think his ambition is very sound, make sure everyone in america willing to work hard, play by the ruse as everyone always says, actually get ahead. his proposals in the op-ed he posted are interesting. i agree with some of them. making for example, investment totally written off the first year, i think that is a very good idea. with tax policy we're supposed to encourage behavior we want. charles: he says corporate america is benefiting so greatly from the tax cuts, using money to buyback stock. sounds like what we might hear a few times from bernie sanders. james this is something i've been talking about for a while now, this is why i wanted to do this segment. there is a wave of anti-capitalism in this country, particularly among young adults. when they see a company buy back stock, millions of dollars worth, lay people off, they will revolt. >> we're not seeing a lot of layoffs happening. charles: ibm is great case study of that. they bought back billions of dollars of their own stock while laying off people. if general motors buys back one share between now and ever, we'll hear about it. >> right. >> you mentioned running for president again. in 2016 i think we saw that marco rubio doesn't have a fundamental understanding of economics. it was basically the obama diagnosis of the economy but with a slightly different course of treatment he was recommending. he is really wrong here. he is making the same mistake many other people do, they see buybacks as a problem. they also, it is almost like he hasn't read any news the last two years. this comment that there is no investment, we saw just as expected and predicted by white house, capital spending boom following the december 2017 enactment of the corporate tax cut. what that does is exactly as planned, it is encouraging more investment. charles: right. >> which is how you invest in workers. that makes them more productive. that allows them to make higher earnings. buybacks are part of this. >> said taxing buybacks at same rate of dividends would ensure corporations -- >> no. the rate is zero, that's fine. >> but we talked about this off camera. i don't even understand what he is talking about honestly. you will not start taxing increases in stock prices result from share buybacks. that isn't how the system works. i think we disagree a little bit i actually think you can promote investment and the tax cut was certainly geared towards doing that you can also do it by kind of deregulation we're seeing in our country. what we want for companies to decide to make things here. i know we're going to a service economy. i know all of these things. investing here, recently corporate investment has not been very strong. charles: american corporations paid $2.1 trillion. anyone who didn't have a good third quarter in their personal lives are going to wonder what about me, james? >> business investment surged in the first quarter. it surged in the second quarter. it was still up in the third quarter. when the revision came out it was even better than we thought. so the plan is working. what happens with a buyback, i think this is the confusion he has, and others have, a company buys back stock. that money does not disappear. it doesn't go out of our economy, okay? what it is, it is efficient way to reward investors and encourage them to invest more. so the existing shareholders -- charles: investors ahead of workers? >> no. the workers, as we're seeing are benefiting because investment increases. is it gives them more tools. they can make more stuff per hour and they get paid more as a result. >> it is better if corporations invest in plant and equipment, in hiring people et cetera. that is better. charles: i don't disagree with you, james, i am concerned how corporate america is not articulating this to stop the rise of alexandria ocasio-cortezs of the world and bernie sanders. >> i would argue a little bit, corporate america talking about the good they're doing all the time. the message is confuse the. they're agents of social change as opposed to making profits. >> we doesn't need virtual signaling getting rid of plastic straws. that will not work. i got the wrap a long time ago. but i love this conversation. thank you very much, james and liz. beginning to look like a very merry christmas in the retail shopping season, the retail number i will go through it even more. some say the grinch is lurking in the shadows. we'll bring back a power packed panel to discuss what could be the grinch not just for christmas but for 2019, next. ♪ i knew about the tremors. but when i started seeing things, i didn't know what was happening... so i kept it in. he started believing things that weren't true. i knew something was wrong... but i didn't say a word. during the course of their disease around 50% of people with parkinson's may experience hallucinations or delusions. but now, doctors are prescribing nuplazid. the only fda approved medicine... proven to significantly reduce hallucinations and delusions related to parkinson's. don't take nuplazid if you are allergic to its ingredients. nuplazid can increase the risk of death in elderly people with dementia-related psychosis and is not for treating symptoms unrelated to parkinson's disease. nuplazid can cause changes in heart rhythm and should not be taken if you have certain abnormal heart rhythms or take other drugs that are known to cause changes in heart rhythm. tell your doctor about any changes in medicines you're taking. the most common side effects are swelling of the arms and legs and confusion. we spoke up and it made all the difference. ask your parkinson's specialist about nuplazid. charles: big win for american retailers. sales climbing up 5 1/2%age points for the year. holiday shopping is on fire. but is there such a thing as being too good? here to help explain moody's chief economist john lonski. john, between the economic data out of china and our strong economic data, one of the first things happened this morning, i think is put be as much pressure on market as multinationals as anything else, kind of strange that we might be doing too good? >> that is true. especially we would be even more worried if the fed was talking about an overheating of the economy. now what could help to stead did dollar, maybe push the dollar a little lower later in 2019 if the fed decides to cool it on interest rate front. charles: that is what everyone is saying. now it has become defacto a mano-a-mano, if jay powell doesn't hike rates next week he is a wimp. >> not only a question of china doing poorly, the worst retail sales growth since 2002, it is also europe. in europe we find auto sales are up less than 1% year-over-year. so we have these problems overseas. the fed's got to recognize these props. we don't need a stronger dollar. what we need, we need a fed that helps keep the u.s. economy growing at rapid enough pace to keep the world economy falling off a cliff. charles: here at home where the fragility is associated with interest rates, right? so mortgages spiking, hurt the housing market. we see where new car sales are really limping along. you know, the fed sees this. >> hopefully they do. i think that is of concern to the marketplace. what is it housing sector, share prices for year-to-date are down 27%. they have gotten clobbered. that tells me fairly soon we'll see that 10-year treasury yield move lower. i think, by early next year, the 10-year treasury yield, no higher than 2.75%. charles: will it invert? >> we have a slight inverse between the five-year treasury and three-year treasury. charles: the 10 and the two? >> a warning side to the fed they're being a little too tight on the shortened of the yield curve. maybe it is about time for the fed to announce a halt to the rate hikes, in order to prevent themselves from being forced to cut rates later in 2019. charles: i have got to wrap but how is it for a economist all the geopolitical stuff playing in too, france, italy. >> also domestically with talk of donald trump and impeachment. go back to 74, 75, nixon's impeachment. the market was clobbered down 42% from its high at that time. charles: that is ridiculous. john, always a pleasure. >> my pleasure. charles: your photos may have been exposed because of bug on facebook. the company says it fix ad bug exposing private photos of 7 million users. the bug, it allowed approximately 1500 apps to access user private photos for 12 days in september. facebook said, it will send alerts to those people who may have been compromised. hopefully you won't get one of those alerts. we'll be right back. ♪ comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. 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"all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. tons per year by 2025, requiresr lan innovative approach. our0 approach employs the best analytical tools that can be applied. the smackover formation in southern arkansas may hold one of the most significant lithium resources globally. the key to unlocking this resource lies in deploying advanced lithium extraction technologies and standard lithium leads the industry in the application of these processes. learn more at standard lithium com. there's brushing...and there's oral-b power brushing. oral-b just cleans better. even my hygienist said going electric could lead to way cleaner teeth. and unlike sonicare, oral-b is the first electric toothbrush brand accepted by the ada. oral-b. brush like a pro. charles: stocks banging around the lows of the session. as we go into the final hour of trading, i want to bring back kim and rob. guys, when we come in on monday, the big question was can the support levels hold. as we are exiting on friday, the big question is can the support levels hold. if they don't, rob, what do you see? >> yeah. i mean, we're down i think about 2531, something like that, on the s&p 500. it does need to hold. right now this is a news headline driven market so when people can't make clarity of what's going on, they will really look at those technicals, as you know. if you do get a push down below those lows, especially a close today below those lows, i think that could spell trouble for monday. charles: you know, maybe the resolve of the market this week, it could come back to bite the market because rob is right now, you don't have to be a technician to know every time it got to a certain level it showed a little bit of spunk, little bit of oomph, little bit of fight. when it gives that up, what are we looking at? >> technicals are in charge now. we are down trending. we get these one-day wonders, then go three and out and have to punt the ball again. it is discouraging for investors. 2600 has held six times. charles: what happens if it doesn't? >> it gets pushed down to next level. we are trying to build a base. that's the hardest part here. we are trying to build a base. charles: are you guys afraid to say where we may go if we don't hold? are the numbers so detrimental that -- >> no, there's still bargain hunters, still some value here. we love to see the vix spike and say this is the bottom but it's almost apathy now. charles: there's an avalanche of sells here but some firm defended starbucks, some firm defended delta, some firm defending adobe. so to that point, rob, there are spots here and there but that's all there is right now, spots. and you wonder, despite all the selling that we saw by individual investors, the volume has not said, you know, fire in a crowded theater. do we need that aspect of a selloff? >> i don't know. i think everyone is always looking for that crescendo bottom and this huge amount of capitulation but all bottoms do not look the same. it is a process. that's what we're going to be going through. we have the fed meeting next week. trying to come in and be a hero prior to that, i don't think anyone is willing to do that. charles: everyone should be working on their buy list, be cool, don't be afraid. thank you both very much. folks, we came into the week saying there are certain levels they got to hold. they have held so far. we are right on the ledge. liz, i will hand it over to you with a market that's biting its nails. liz: call the zoo. we have a bear attack right now. i can't even believe, on a friday. charles, it's been so choppy this whole week. charles: it has been, but it tells you people don't want to go home long on the weekend. beyond everything else, i think some of this political news in washington is starting to hurt us, too. liz: we will talk more about that very strong interview you just did with peter navarro, the trade adviser to the president. folks, we have a full-fledged friday selloff on global worries from china growth to what could end up being a no-deal brexit and of course, trade rocking the markets. oil plummeting and that's dousing the entire energy sector. we've got health care and technology stocks not looking much better and at its low, the dow falling 549 points and that was literally just minutes ago. right

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