Deutsche bank, jpmorgan chase, Standard Charter among the banking giants talking a brutal hit as an Investigative Reporter alleges they all laundered trillions of dollars for terrorists, oligarchs and drug kingpuns. This is great kingpins. This as the death of Justice Ginsburg throws a wrench into the 2020 race. Could it interrupt passage of new stimulus money that desperate americans and Small Businesses are waiting for . Mark the numbers, Dow Jones Industrials at its low was down 942 points, right now were down 743. The s p at this moment down 70. The nasdaq sinking deeper into correction territory, down 131 points. All right. The s p, by the way, or got close but no cigar to correction territory. I know my bull watchers out there are pretty happy about that. Weve got team fox business coverage to tackle it all. Dick boy say on bovey, phil flynn on the surprise sectors popping and blake burman at the white house on the stimulus prospects and the search for Ruth Bader Ginsburgs replacement. All right. Lets get to the top part of this rocking the markets, Global Financial stocks getting splashed with the same red dye at this hour. Major names getting hurt on the report that everyone from jpmorgan to bny mellon, you see all this red on the screen, these are no small moves, losses of 4, 5, 6 , that they all allegedly moved illicit funds over the past two decades. Those transactions running to the tune of 2 trillion. To banking analyst dick bovey. Lets look at how european markets closed, all down anywhere from 3. 33 to dax in germany down 3. 4 . Some of it is new lockdowns in the united king. Com and parts of france, but as we learn more about the investigation from a group of journalists, investors arent stinking around for the banks side of the story. Whats the louisianaing impact . Lasting impact . I think the regulators will take [audio difficulty] bank secrecy act, they will come into the banks to demand changes in their Risk Management systems, theyll change some type of computer systems, they will ask for a deeper leash by the banks through correspondent banks to the ultimate, if you will [inaudible] in the situation. It will cost the banks a few billion bucks. The banks may be fined a few more bucks. But the banks are not losing any money as a result of this. The banks did not do anything from my perspective they were not supposed to do. They did send in the reports on which this investigation is founded, so, you know, basically, you know, well be seeing a slap on the wrist. But to assume that theres any Lasting Impact on the Banking Industry or any changes in the income of american banks as a result of it is a folly. These people who are panicking out of banks always do the same thing. Its easy to Say Something wrong about a bank. The minute someone says something wrong about a bank, you get this panicked selling into banks. If i were, you know, sitting in the seat of Money Managers today,s i would be buying these stocks, i would be buying these stocks aggressively because this is not, this is not a longterm issue which is going to impact their valuations. Liz yeah. I mean, wells is 4. 8 cheaper than on friday, jpmorgan down 4 as well. Phil flynn, is it the Bank Investigation or the second covid wave fears that are coloring these markets red . Because you look at whats working, and thats more about the second wave of the virus. Because whats working seems to be the materials and the stayathome names of stocks. What do you think . I think its both, you know . And its like if you could get every bad headline that could hit you over a weekend with to get a manic monday, you got it this weekend, right . Not only you have the Political Considerations when were so close to the election and the death of Supreme CourtJustice Ruth Bader ginsburg, that uncertainty, you have the Bank Investigation, now you have a potential second wave of covid. This is causing a lot of panic. If it were just one headline, the market could probably digest it and, you know, put it in perspective. But when youre getting hit from every direction, thats whats happening here. You take a look at the commodities, for example, theyre getting absolutely crushed today. Copper,ing you know, the silver, the iron or, all of that is under pressure. Energy prices under pressure. And thats a real concern that another wave of covids going to shut them down again. Lower, you know, expectations for demand. And all those sectors previously were starting to look pretty good, you know . Were starting to price in life after covid, demand coming back, commodity prices, all that stuff was supposed to be good for the mod ity sector as well. But now when you get a day like today, its like throw the baby out with the bath water because you start to look at one sector starting to fall, and even if you think that theres good longterm prospects for your sector, youre going to jump on the bandwagon. So it becomes this type of an i havent. Having said that, when you get a day like that, thats the day to start looking for opportunities. I think youre going to see it in the energy sector. Warren buffetts going to get a big paycheck from occidental, 200 million instead of dividends instead of shares. So a lot of stuff going on today. Liz yeah. And by the way, when you say babies getting thrown out with the bath water, well, golds one of the infants here, and its down 47 at the moment. All right. Let me get to scott redler. The minute the s p falls 96 points, were in correction. We are not there. What trigger should investors watch that will indicate that were about to dip into that or were well off it . Right now were down about 9 since the recent high which was, of course, september 2nd. Yes. I think every step of the way you have to measure the composure. After such a huge move like weve seen since the march lows. Last week we broke the 50day, ors couldnt get back up above the 21day, i think now technicians are looking at the 200day. Its still the another 70 handles or maybe 3, 4 percent down which would take us about 11, 12 percent off the highs, and i think that would actually be pretty healthy. The market got a little manic after all the split announcements and tech went a bit parabolic, so i think so far this has been pretty orderly, and i think guys want to buy this dip. We are seeing a little fear come into the market, so thats good for sentiment, because you want to wash out some of the sentiment. And also, finally, you see tech not leading us lower and trying to show you see apples green today, you see some things are off the lows. So we need tech to turn first in order to get a real tradeable bottom. So well see how that happens in the next few sessions. Liz yeah. See the market volatility, the vix, up 10. 7 , but it was up 18 earlier. Blake, we do not underestimate the power of stimulus bill can have when it comes to lifting or cratering markets. Where do we stand on that . And we talk about and we mean this with absolutely no disrespect but a distraction where now we have this race about the president floating a name for the Supreme Court vacancy after Ruth Bader Ginsburg passed over the weekend, and that doesnt seem to bode well for people who are waiting on a passed stimulus bill. Reporter i also i think, liz, we shouldnt underestimate the fact that this has moved nowhere, the stimulus relief measures. Not just in the last few days, but really in the last few weeks, you could even say in the last few months. To what you brought out, id asked larry kudlow, today, for example of course, the president s top economic adviser is there enough oxygen right now in washington, d. C. To handle both everything that comes with an opening on the Supreme Court and dealing with the negotiations on a potential phase four covid19 relief package. Heres whats interesting, liz, youre going to listen to this sound bite from larry kudlow. The interesting part is he didnt really talk about the stimulus talks. Rather, he said there is Something Else on the radar first. Watch here. You know, i dont want to go ahead and make any forecasts on how this things going to to play out. Thats not in my lane. But it doesnt have to. We can get a clean c. R. , for example, which first order is keep the government open. We could negotiate a sensible package thats targeted and would provide some assistance. No, i dont, i dont believe so. Reporter the first order of business being a clean c. R. , liz, that is d. C. Talk for saying the need to get a spending bill passed by october 1st, one week from thursday government funding runs dry. I bring that up because there has been some apparent movement here in the last hour as House Democrats have put forth their sort of a framework of a bill, and Mitch Mcconnell, the leader of the senate, has come forth and add admonished what House Democrats have put forth. The issue here is over the ccc, the commodity credit corporation,s which is essentially assistance to farmers, and that is now the battle line with all of that. Liz, we have been hearing that there was really no need to worry about this whole government spending, its going to work itself out, itll move forward. But in the past hour here, it appears that there might be some hangups. So while we talk about stimulus measures, that has stalled. And over here at the white house theyre saying first things first, lets deal with spending, government bill. Liz well, thanks, blake, for adding yet another issue to our very heavy, filled plate reporter thats what we do over here at the white house. One thing after the next. Liz exactly. Always something. Our thanks to all of you for getting our viewers in the right mindset to figure out all thats going on when you just look at the numbers on the bottom of the screen. Now lets pick apart some of the names here. The power of joining the s p is in full view this hour. Etsy is resisting the downdraft after it kicked off its first day of trade as a new member of the s p 500. Its up another 2 to 114. 18. All right. Forget october. Fears that a vaccine wont be ready in time for next years spring and Summer Holidays are grounding theme park stocks. Look at cedar fair, down 3. 5 . Then youve got suggestion flags, down 7. 6 . Sea world getting hit the hardest here, down 8. 3 . Anxiety over increase in covid19 causes in europe also spilling over into the sector as well. And if you cant go to amusement parks, heck, kids will have to amuse themselves on tiktok which has temporarily dodged a u. S. Ban. The social media darling has been granted a one week extension of the Trump Administration as the Trump Administration studies the oracle and walmart plan to take a combined 20 stake in the chineseowned company. Oracle hit a record high earlier. It has pulled back just a bit, but it is still up 1. 25 , 60. Because weve got questions swirling as to how this joint venture, which is not an outright act but decision, sos what President Trump has insisted is a National Security threat. So that part remains foggy, but there is one thing that is Crystal Clear about tiktok right now, and with the closing bell ringing in 48 minutes and the dow still down 675 points, tiktoks potential as an advertising power. Coming up, the ad giant whose clients are clamoring to dance with the tiktokers. Plus, who he says in the social media sphere should be shivering. The claman countdown is coming right back. The nasdaq losing 113, but that is half of what it was losing earlier today. i need it so bad dont call it a hobby. Its way more than just a job. This is how we live every single day. Can we go and play . roaring of engines i needed to try needed to fall i needed your love im burning away i need never get old im a delivery Operations Manager in san diego, california. We were one of the first stations to pilot a fleet of electric vehicles. Were striving to deliver a package with zero emissions into the air. I feel really proud of the impact that has on the environment. We have two daughters and i want to do everything i can to protect the environment so hopefully they can have a great future. I can to protect the environment im a verizon engineer. And im part of the team building. A powerful 5g experience for america. Its 5g ultra wideband, and its already available in parts of select cities. Like los angeles. And in new york city. And its rolling out in cities around the country. With massive capacity. Its like an eightlane highway compared to a twolane dirt road. 25x faster than todays 4g networks. In fact, its the fastest 5g in the world. From the network more people rely on. This is 5g built right. Only on verizon. Liz within a span of just 24 hours, President Trump went from saying hed approve a plan for oracle and walmart to take a stake in chinese social media app tiktok to then insisting china must shed all control of the app, or he wont make the deal. He said that to fox friends this morning. Now, as it stands, the agreement is the parent which has 80 ownership and control of the algorithm, leaving oracle and walmart with a 20 total stake. That comes nowhere near the president s initial demand that tiktok must be sold to a u. S. Tech company because its a National Security threat, he alleges. Our next guest is Crystal Clear, he says u. S. Consumer giants see tiktok as the new holy grail of advertising. Boehner medias ceo is here and, gary, what is it first about tiktok and then well get to some of the names what is it about tiktok that these legacy clients you have, anheuserbusch, ge, General Motors, what is it that they want from tiktok when it comes to an advertising opportunity . They want the same thing everybody wants about any advertising, which is attention of the end consumer and contextualize and make it relevant so theyd consider doing business with this many. Theres really in my mind and for the brands, theres really no difference between a newspaper or a radio or a billboard or a super bowl spot or tiktok or facebook other than the cost associated with it, is it proper and do you have the ability to create contextual creative in that environment to make the business outcome happen. Liz yeah. You know, weve got a couple of them here. Lets start with the first one here, i believe this is, this is gm, General Motors . Tell me about this particular ad ge, thank you. I anticipated thats what it was. Bad information. All right. Ge. Talk about this, describe it and tell us what ge felt it could get from tiktok eyeballs. Yeah. So, unfortunately, im not sure, you know, where there might have been a miscommunication, but i dont get to see it through my screen here on skype, i apologize, so i cant see which ad and, obviously, we do a bunch. Maybe if you can describe it, but the biggest misnomer with tiktok that is probably most relevant for this audience is the audience on the platform is far more 30 and 40 and 50yearold than anybody is talking about. I think all of us were thinking the same thing, we think about it as 14yearold niece, granddaughter, daughter dancing videos, but just as facebook which is now, as you know, 4590 than it is 22yearold college students, and that took less than a decade, tiktok and what everybody wants from it is the proper and smart advertisers realize that theres so much more 30 and 40yearolds. And for ge, whether its you know, its the most over the counter stock in america, you know, something of that nature, at least historically, i dont have the data sets right this minute, but im sure you do on the program. Everybodys got their own agendas, and smart advertisers realize theres a lot more 30yearolds there. Liz well, according to digi day, and they aggregate this kind of stuff, advertising on tiktok is also a lot less expensive. Now, my sources have told me and theyre very familiar with advertising and what tiktok can offer my sources tell me that the three big names in advertising, omnicon and all these big giants when it comes to advertising, all have tried and gotten in for facetime at tiktok so that they could push their clients. Now, you also did one for, lets say, wework. Lets talk about the one with wework, and i will describe it as it is rolling because, you know, the cost for a company like wework, well, they didnt seem to be too concerned about costs back then because they were spending a lot of money. But were looking at somebody looking out a a window, getting up, going to work yep. Liz the with wework, yeah, go for it. That ones easy because theres so many people in their 20s and 30s that are independent micro workers, entrepreneurs, threeperson units and so this is just advertising, no different than the commercials are about to run in between your segments. It is about awareness. Theres an ungodly amount of awareness on the platform for some of weworks target audience which is these small independents. And to the point of the other major media buying agencies, were a tiny blip in it, maybe the most disruptive new one of that world, yes, the costs associated with the actual consumption instead of the potential reach is shockingly low, and those contemporary marketers take advantage of that. Liz yeah. How much trouble could facebook be in tiktok is approved here by the president and theres an oracletiktok opportunity which opens up, well, certainly for walmart, but people will rush to get those particular eyeballs. And im talking many different companies. Would facebook and google who, obviously, are the big heavyweights in the advertising industry, look and say, well, we used to be a due to wonly, now duopoly, now theres a third name, and that changes the pricing structure markedly. If tiktok has an incredible 4860 months. Google and facebook are at scale, like, scale. Like, they are taking significant television and print and outdoor radio advertising budgets. Its a smart question. If tiktok is able to go from tomorrow, if its approved and all that stuff, and have 48 incredible months, now youre starting to talk about another player. But in between tiktok and facebook and google is twitter, is pinterest, is spotify and many, many, many other places to sell. So tiktok has crazy momentum, but much like mark and cheryl continue to innovate, do m a, tiktok needs 4860 months of flawless execution to be on that level. Liz okay. Gary, love it, love you. Thank you so much thank you. Liz for joining us. Always a pleasure. Lets be clear here, the tiktok saga is far from over. With the closing bell ringing in about 37 minutes and the Dow Jones Industrials down 616 points, up next Charlie Gasparino breaks it on the flaring tensions between the white house and the far shes that could scuttle the precarious oracletiktok partnership. The claman countdown is coming right back. Dont go away. I didnt realize how special it would be for me to discover all of these things that i found through ancestry. I discovered my great aunt ruth signed up as a nursing cadet for world war ii. You see this scannedin, handwritten document. The most striking detail is her age. She was only 17. Knowing that she saw this thing happening and was brave enough to get involved and do something that was eye opening. Find an honor your ancestors who served in world war ii. Their stories live on at ancestry. Who served in world war ii. Before money, people tools, cattle, grain, even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. 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As President Trump appears to be ready to drop his original order that tiktok be sold to a u. S. Tech company and instead allow his friend and Campaign ContributorLarry Ellison of oracle to get a stake of just 20 in tiktok. But will having friends in high places be enough to get the deal done . Charlie, if you listened to the president this morning on fox friends, hes backing away and saying, wait a minute, we might not approve this deal. One thing i will tell you about donald trump, hes often influenced by the last person he speaks to, so [laughter] i mean, for all i know, steve mnuchin, the treasury secretary, very powerful, the guy thats really behind the oracle, tiktok whatever you want to call it, its definitely not a sale has been pushing this very hard internally. I will say this about crony capitalism, liz, ive covered the confluence of finance and Corporate America and wall street and washington and politics for, you know, 30 years now. Ive seen some really interesting deals, some difficult ones to pull apart. This one was easy. This was an 80 mileanhour fastball thats not moving, that has no movement on it right down the muddle of the plate. Middle of the plate. It is so obvious that you just cant, its almost hard to describe. Look at it this way, when it looked like microsoft was going to buy, actually buy tiktok after President Trump came out and said it would be banned because its a surveillance arm of the chinese government, because its owned by bytedance which is a chinese company, microsoft comes out and says it really wanted to do a real arms length transaction with them. They were going to buy the thing. They were going to pay 20 billion plus for the u. S. Arm and maybe a few other arms. They were going to reconstruct the code if they had to. They were really going to do a deal, a purchase. You know, you just heard all these Administration Officials including Peter Navarro talk about how microsoft does business with china, this and that, they were throwing all this sort of stuff out there when it was a real transaction. If you notice with this transaction, which isnt a real transaction, the algorithm is not being bought, its still a chineseowned algorithm, based on were getting the same weeks everybody else is getting, the i chinese, maybe theyll own the entity liz well, lets be clear, the ties, charlie, the ties are not severed which was the original request of the president. Liz, thats 100 accurate. Because the algorithm is still owned by bytedance. Remember, the microsoft the algorithm. Would be owned by microsoft at this point, and thats a what makes this so bizarre. And if you notice, wheres peter . I dont hear Peter Navarro. He sees chinese surveillance are everywhere, behind every tree. Microsoft does some business in china, oh, you know, he goes nuts. But hes nowhere near in thing his liz why do you think, charlie, why do you think President Trump yesterday when he was at a campaign event, he yesterday said, yeah, i think im going to agree to this in principle. Why do you think he said that knowing he did have, we should point out that President Trump had a conversation, i think it was either friday or saturday, with Larry Ellison. Of oracle. And, you know, this is the problem here. So lets give it up to the viewer, heres the update, nobody knows. I can tell you people at tiktok feel comfortable theyve got a deal. I can also tell you the charges of crony capitalism which we were first to expose and the wall street journal editorial page hit on it today has rattled this whole ecosystem here on this deal. Also whats rattling it is the obvious nature, and this has been people are writing about this, and its, but weve been saying for a long time they can dress, put lipstick on this pig as a u. S. Company thats going to the control everything, but the reality is that the chinese are very heavily involved. Its their algorithm. And it all liz look what im showing you, charlie. I dont know if you can see this. [inaudible] liz this is the wall street journal article. Can we take this . Ill try there you go. Crony capitalism. Thats today after weeks of you talking about this. And its quite, its quite impressive to see them follow you, but more importantly, they see it as you do, and they are big capitalists, obviously. By the way, liz, theyre following us. They followed our network. [laughter] liz aw. Theyre following your show. Liz i wouldnt call it a pig. I think tiktok is real opportunity, id say putting lipstick on a mirage because its not a deal, its a mirage of a deal. Charlie gas prix know. All right, we do have 26 minutes left before the end of trade. S p down 61, that gives us a nice bit of wreathing room breathing room. The countrys Biggest School district still mainly absent from promises of inclass learning, but k12 is the company raising its hand to help across country as it looks to make the grade despite a backtoschool controversy. And call it a Snowball Effect of the selloff. Thats right, snow shares dropping once again by another 1 percent. Summit insights starting the markets newest Cloud Services company at an outright system saying this snowflake just isnt any different from its other tech rivals to have such a hefty price tag, more than 100 for the pe ratio. The claman countdown is coming right back, dont go away. Some lost work and invented new ways to get by. Others were busier than ever, and found strength they never knew they had. We sheltered with the people who matter most, sometimes finding how far apart wed drifted. We worried over loved ones, over money, over our planet. And over takeout. And we found a voice one the noise out there had kept quiet. 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Learn how homeowners are strategically using a reverse Mortgage Loan to cover expenses, pay for healthcare, preserve your portfolio, and so much more. Look, reverse mortgages arent for everyone but i think ive been round long enough to know whats what. Im proud to be part of aag, i trust em, i think you can too. Trust aag for the best reverse mortgage solutions. Call now so you can. Retire better liz breaking news, weve got competing speeches going on right now. Senate minority leader Chuck Schumer responding to Senate Majority leader Mitch Mcconnell who moments ago laid out his case for moving forward with a vote to replace Supreme CourtJustice Ruth Bader ginsburg who, of course, dued at the age of 87 on friday. 2020 democratic president ial nominee joe biden is also speaking at this moment in the battleground state of wisconsin. Hes dissing the Coronavirus Crisis disbecausing the Coronavirus Crisis. Biden has a slight edge in the state President Trump won in 2016. All right, so were looking at the s p 500 and, yes, it is getting rocked. Its down about 54 points, but a off the lows. Stayathome stocks like shopify, twilio are up in the green as covid fears make a comeback. Education names like k12 are moving higher as well along with zoom which has been a rock star as well because millions of students in america turn to them for help in Virtual Learning. And as many of these students are doing Virtual Learning for the first time, the Online Learning platform k12 is Offering Services to students in more than 2,000 School Districts across the country. Students and parents in districts struggling through the challenges, k12, Ticker Symbol lrn on the stock floor, up since the pandemic started but about flat year over year with struggles of its own as we all have. Lets bring in k12 president john rue. John, until me what the landscape looks like because new york city was supposed to start inclass schooling and then suddenly, you know, they said wait a minute, weve got to do a hybrid or only the kindergarteners. Tell me what your business is doing at this moment and how busy its been. Yes, thanks, liz, i appreciate it. K12, you know, when this whole pandemic broke out in the spring and all the School Districts were scrambling, the benefit of what weve been doing for 20 years is that we didnt even have a hiccup. We were already doing Online Learning, our kids and our teachers were already full time online, so for us we just sort of had business as usual. And i think for a lot of School Districts what they found over the summer and coming into this fall is that they really needed to think through the planning of how they were going to get kids either online or back in the classroom and, obviously, each was making their own decisions around that. But i know for k12 and the customers that we serve and the families that we serve, you know, theyve been able to stay in School Online and use our curriculum and our teachers and our wonderful teachers to keep learning. So were really proud of the work that we do in the education space. Liz well, look, glitchy is something we would expect of any company, basically, but i do have to bring up the fact, and normally i wouldnt pick out one School District and say, you know, but they but miamidade, thats 250 plus thousand students. September 10th, they dumped you guys. In fact, there was a survey taken, and some parents simply said it was a major failure. The banana dog error page kept jumping up with a picture of a banana dog, and it was cute the first couple of times b youve got to talk about why that happened, whats been done to address it. Because youve got investor audience watching right now, and they would like to hear that. Sure. And thank you, its a great question. I think what superintendent car value low tried to do in miamidade was a really ambitious plan. And, by the way, i think it was a really innovative plan that we tried to support in a very short period of time. We tried to do something in six weeks that normally, given the complex and, as you said, the size of the miamidade program and theyre in multiple languages as well, they have a complexity that their implementation should have taken six months. We tried to do it in six weeks so, yeah, its unfortunate that it didnt the success we had all hope. I still think his vision, his plan, his innovation was spot on. And at k12 we have over 80 parent satisfaction. And so while that singular district may not have had a great experience, we have over 2,000 other districts that, with, you know, millions of parents and families that we serve that have had a great experience. So were really proud of our record for the families that we serve. Liz i understand the rush to compete and the rush to beat competitors. Weve been there before when we were just a startup as fox business 12, were coming up on 13 years, believe it or not, but the one thing you dont want to do is cut corners, and theres that investigation, the Inspector General of miami School District is opening up a probe about a 1. 6 million donation k12 made to a nonprofit that was run by the superintendent, mr. Carvahlo. Where does that stand . What was that and how do you talk through that and let us understand what was going on. Sure. Listen, we the first thing i think we have to remember is that there are thousands of hard working teachers out there that we k12 as a company support. And we employ thousands of those teachers, we train thousands of those teachers in Online Learning every year, and i dont want the get into the politics of anything, and i think we should let that investigation run its course and see what they find. But we feel really good about the things that weve done to support miamidade, to support the teachers, and so, you know, were going to move on, and we wish miamidade all the best. We hope that their families get the right level of education and that their teachers continue to get supported by what we think is a Great Administration there. Liz before we go, james, how does the Current Quarter look . You have beat on earnings over the past couple of quarters, and thats certainly a good sign, but what about now . How does it look at this moment as some schools go back in session . Yeah, it looks great for us, liz. I think we announced already that we passed 170,000 fulltime enrollments in what we call our managed business, and thats almost a 40 yearoveryear growth. And that was a number of weeks ago. Weve been growing since, so i think the outlook for our business this year and in the future is great. I also want to remind our investors that while this is whats happening right now is a tailwind for k12, the company and our business, we have a really exciting business that weve embarked on, our career business, and its really, i think, changing the way that we want to educate High Schoolers getting ready for career trajectory knowing that over 50 of the jobs in america dont require fully a college degree, and we should get those kids prepared for careers now. Liz right. Yeah, i know. Im sorry, im being told that we have a commercial break. James, i hope you come back. James rhyu of k12. When we come back, the nikola saga, yes, the founder has step down. Much more when we come back. So youre a small business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. 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Now its your turn to lose weight, look great, and be healthy. Get off the floor and get on the aerotrainer. Go to aerotrainer. Com, thats aerotrainer. Com. Liz take a look at teslas stock right now, its lurching in and out of the green ahead of its big battery day. Its battery day tomorrow. Analysts pinpointing the event as a critically important one for the original ev maker, one that could put it on track to becoming a fullon battery supplier. And why does that matter . Because that in turn would make tesla a power source to other automakers looking to enter the electric vehicle race. Elon musk, as he always does, promising big announcements tomorrow. And note that announcements is plural. Its heavily anticipated gathering that could also see the mapping out of a route to a million mile cleanpowered battery. Shared up 1. 5 right now. But lets flip it over to nikola, facing its own make or break moment. Nikola is down, look at this, 20. 25 after founder Trevor Milton, the founder who was the base of this company face of this company, stepped down as executive chair amid pressure about fraud allegations. To ashley webster. Ashley, i was really detailing some of the look here about this, and Trevor Milton is somebody whos really kind of pushed this company as the face of it even though he was not the ceo. Yes, absolutely. And, liz, what a shocking development. Shares of nikola, by the way, falling as much as 30 today. I know its down 20 now on news that founder and chief executive Trevor Milton resigned following those accusations of fraud and nepotism. Those charges coming from Hindenburg Research a couple of weeks ago that claimed to have enough evidence to show that nikola and milton made false claims about the companys proprietary technology to form partnerships with large automakers, gm as with we know just recently announced it was taking an 11 stake in the company. And in an interview with you last december, Trevor Milton said nikola is a popular target for partnerships. Take a listen. Liz give me a sense of what other companies have expressed interest in this. Yeah. We have 800 trucks rolling out with anheuserbusch, the first time theyve ever done an order that large with anybody in history. Liz wow. We just delivered the first crate of bill with an anheuserbusch a few weeks ago in st. Louis, it was incredible. That was our first load. But theres customers just like anheuserbusch around the country, u. S. Express, many others. Essentially, 14 billion worth of orders, we essentially stopped taking orders because we were sold out for fiveplus years, and youre only making people upset at that point. It was all stations go at that point. Milton said today though he approached the companys board and volunteered to step aside saying the focus should be on nikola and not him. He also remains defiant saying the allegations are simply false, and he will defend himself against those charges. But investors apparently have not been convinced as weve seen with the stock taking a big hit. Gm also saying it will press on to close the deal with nikola noting its just one element of us electric vehicle strategy. So who takes over now . Well, the former vice chairman of gm and nikola board member will take over as chairman for now. But what a development, liz. Liz well, yeah. And who stops taking orders anytime . You always want orders, so you just keep taking them and try and scale up as quickly as you can. Ashley, thank you very much. All right, okay, folks, we are now going commercialfree because this market continues to be we do not want you to miss a single tick of it. We do have six minutes left. The dow is down 573. If you thought last weeks Federal Reserve meeting was the last you would see of chairman jerome powell, you got to think again. Well see him daily over the next three days, along with a total of 14 other fed speakers who are fanning out this week to probably clarify the message we got last week. The pronouncement rates will be frozen for another 3 1 2 years. What is the Central Bank Going to say next and what is it doing having some type of a psychological effect on markets . We have wells fargo chief economist, john silvia, and scott bauer, our trader at the moment. John, i dont know who, i said it last week, who is able to see that far out, 3 1 2 years, wish i could, tell me how the market is weaving in with that psychology . I think the market is very skeptical about the ability of the federal funds rate for that long a period of time, and liz, the issue is why . If the economy is that weak, for that long of a period of time is suggests projected Profit Growth next two or three years will probably be less than what people discounted. Liz scott, were talking about a market where people are looking for the next big thing. It was definitely tech. Im not saying it isnt anymore. Nasdaq and a lot of names scaled up so quickly in price. What are you seeing as far as flows on a day like this, where we also last week saw three days of selloffs for the s p and nasdaq . Liz, youre right last week was the biggest single out of flows, 760 million, a massive amount. The question, now investors and traders now they have cash on the sidelines are they ready put it to use when the market gets to a certain level . When the s p gets down to 2 hyundai, if they do, when is that determination, when theyre forced to, with the decision, when it is right there in front of them, are they going to put it to use . Personally i think they should. We may have seen a little bit of that today. We may have seen a little bit of gobbling up today when we got towards that bottom. In fact the s p bounced off the levels we saw from the lows or the levels back on july 29th. We saw it bounce twice there but as you guys were talking about there, i think the fed coming out saying we are not doing anything for the better part of three years it makes some people complacent but make other peoples really concerned that the economy is in a lot worse shape than people think. Liz and therefore, you talk about rotation i want to welcome verdict done Capital Advisor leo kelly to the conversation. You have a couple billion of assets under management. What are you rotating out of into, leo . For last month weve been rotating out of large cap growth specifically the tech names that exploded to the upside. Whenever you see 1 of an index consume 25 of its market cap, that is an indication things are starting to get out of hand. We rotated into cash. We rotated into international stocks. We rotated into small caps and to the private investment area. We still have that cash and i agree that there are going to be opportunities here, maybe over the next days, weeks, but i do think that where we are with regard to the highest priced securities requires patience. The mistake a lot of investors america on the first move down is they think if you buy every dip you will replicate unusually high returns. Liz, well let me just say that we have been down, look at the nasdaq, low of the session was loss of 273 were at the high of the session even though that is red, were down 19. You talk about the resilience of this market and the economy itself, john silvia, what do you see . I you got about 15 seconds. Economy will work out for the next two or three years. I take time to get back to the levels but uncertainty with respect to not another fiscal stimulus but also concerns that biden is still ahead in the polls and talking about higher taxes. Liz yeah that is something that weighs on the markets certainly and we know how that turns out though. Same fears about barack obama and we saw what the markets did, triple digit percentage jumps over his eight years. President trump took that baton continued to run very high with it until this pandemic which i remind our viewers we are now at 199,000 americans dead from the coronavirus. So we watch and we, we sympathize, certainly, but we watch this market. [closing bell rings] we want to thank leo, john silvia and scott bauer. There goes the closing bell. It was a lot worse earlier. That is the best i can say. That will do it for the claman countdown. Thanks for joining us. It is time for after the bell. Melissa concerns about a second wave slamming stocks. The dow plunging after a jump in coronavirus cases fueling fears about more restrictions and lockdowns, oh, no. Im melissa francis. Connell im connell mcshane. Good to be with you here on after the bell. Yeah, as liz says it was worse earlier. The dow comes off the lows here at the end of the day. At one point we were down 900 plus points on the Dow Jones Industrial average. A little over 500 to the downside at the close. Certainly not great but not as bad as we were. The s p is close to entering correction territory. It is down about 9 give or take from the record close reached back on