Transcripts For FBC Countdown To The Closing Bell With Liz Claman 20170810

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calling his fire and fury ultimatum a load of nonsense. . . not even holding the 22,000 level for the dow right now. it's at 21,941. down over 100 points as investors flee to the safety of the safe haven assets, plus, president trump's battle with senate majority leader mitch mcconnell rages on for the third day now. the unicorn ipo as prove numbers and trust me they are not looking today, charlie gasparino will break it for us. welcome, everybody. we are less than an hour to the closing bell right now. let's start the countdown. ♪ ♪ ♪ lauren: stocks drop for the third day. the dow, s&p and nasdaq and even the little guys, the russell 2000 are in negative territory. this could be the first time all three close lower for three days in a row, first time since april. the nasdaq is the worst performer today, down 1 and a half percent. investors are fleeing to the safety of u.s. debt, the yield on the ten-year treasury, 2.1%. gold, that looks good in times like this. this is where nervous investors put their money, the precious metal hitting a two-month high, look at that, 12.90 a troy ounce . stumbling ahead of earnings report, that will be after closing bell. year to date, the stock is up 60%. see the company's chips, they are hot thanks to a wave of interest. look at this, chipotle, call this indigestion, chipotle at 346.50 a share, down 2 and a half percent today. the markets and the stocks are under pressure, no doubt. president trump just moments ago saying what's happening with north korea is, quote, a tragedy and cannot be allowed, we have adam shapiro standing by in bridgeparty, new jersey with more on what the president just said, adam. adam: and the president is still taking a tough stance against north korea despite the fact that a north korean general has outlined what he says are their plans for potential missile attack against our military base and the territory of guam. so the president, speaking just moments ago telling the nation that it's time for somebody, the united states to stand up to north korea and kim jong un, criticizing previous administrations which kept kicking the can down the road even calling out bill clinton for the stats many years ago, the president saying in his own words that the comments he made recently about fire and fury of the united states may actually have not been tough enough and perhaps should have been tougher. here is president trump. >> the people that were questioning that it was too tough, maybe it wasn't too tough enough. they have been doing this to our country for a long time m years and it's about somebody that somebody stuck up to the people in this country. adam: and it's not just the president who is obviously watching what's happening in north korea throughout the world, the testing of the north korean missiles which helped spark the crisis is drawing attention from other countries. the un sanctions over the weekend that were passed unanimously, the president referenced that when he was speaking. we learned that kuwait will be issuing a statement about the status of north korea and employees, laborers, you recall the sanctions require nation not to use north korea labor, so we expect the statement on that. but this is coming from heather, the spokesperson at the state department who had more to say about what is perceived to be a difference of opinion within the administration from the secretary of state, mr. tillerson versus the secretary of defense, mr. mattis and, again, this term of one voice, thereon what heather had to say. >> i speak for secretary tillerson and this building, our secretary has been very clear as has secretary mattis that our diplomatic and military means are both strong and came and in the face of the threats that we face against the dprk or other nations. adam: this is a briefing that the president has had today, a security briefing with secretary mattis as well as hr mcmaster, the national security adviser. two other quick headlines out of this, the president telling mitch mcconnell get to work on everything, tax reform and health care and also promising that he's going to sign some kind of declaration declaring the opioid crisis a national emergency. lauren, back to you. lauren: adam shapiro thanks for covering all of that us. i read what president trump said on doubling down on strong rhetoric that some people have criticized. north koreas and the fears that we have been seeing for three days spooking investors but in a big way today sending the dow at the low of the session down 174 points, but on track for biggest drop in five weeks. well, the sectors that we like to look at every week are lower, there's one group bucking the trend, that's the defense stocks charging ahead into record territory for second day in the row, missile makers, lockheed maker, raytheon. they did all hit earlier all-time highs, now you can see some of them, most of them pulling back as part of the broader market slump. still up a solid 1%, you get the point. there's plenty of investor appetite left for military stocks specially when you hear what we just heard from president trump that fire and fury might not be strong enough that north korea should be very, very nervous. as we look at the broader markets, what exactly are they telling us about the situation? is this a temporary dip, an opportunity to come in and buy stocks a little bit cheaper or is this a reason to get out of the market? let's get right to the floor show, we have traders at the new york stock exchange, cme group, steven, at cme scott and luke. good to see you, by the way. you have been on the floor for a long time. >> nice to see you. lauren: excellent field for the market, that's been criticism that the market is at record high, record high, we see small pullbacks, not really an opportunity to buy a dip, where is the dip, is this the dip? >> this is the chance to buy some stocks that you may have missed. at least that's the way i'm treating it. i initiated in several names that i've got on out, i'm back in google, back in amazon, activityism blizzard. tech names that were beaten down today, now, am i right, i don't know. if it's down 5% next week, i guess i have to buy some more, in the meantime i'm going to play this game as if we are still in a secular bull market and i believe we are unless something big blows up in the south pacific and who can predict that? lauren: as long as this stays as verbal rhetoric. i saw level 15 which we have not seen in quite some time. fear certainly returning to the market whether you look at gold, the swiss frank, japanese yen, investors are playing defense today. >> no, you're absolutely right. we haven't seen that in quite a while. this just goes to show you that for the average investor or, you know, anybody out there that has money in the marketplace, this is a lesson to be learned of being able to buy insurance when you can and not when you have to, you know, we have seen the volatility down for months on end, almost a year now, around the 10 handle, all-time lows that was the time to buy, last week was the time to buy and this is not being, you know, monday morning quarterback, this is just the lesson and buy insurance when you can and not when you have to. s&p is right at 50. if this thing with north korea blows over and calms down here, we will be trading 24.80 within a matter of days here. we have to see, though, sometimes when you get a geopolitical event like this you can throw technicals out of the window. the 50-day moving average has been in place since just before the election last november. i think it's going to hold here. lauren: i will point out for the s&p down 1% right now. this could be the day the first time in 59 days that the broader market actually sees a 1 percent move today obviously to the downside, luke, you're getting the final question here, talk to me about oil prices because opec came out earlier today and increased global demand forecast. we did see oil hit 50 bucks a barrel but now down a solid 2% close 48.56, where is oil headed? >> well, i think oil is going to continue to stay right around here. you know, there's a big debate right now about what's the break-even price for protection for shell producers, some people say 50, i think it's probably closer to 45 and i think this is you're seeing oil stay below 50 and opec news, opec keeps trying to come up with a new agreement, it doesn't work and we have been looking at a case study and i think in coming months you're going to see a central clearing system for oil for opec, maybe a central bank so-called for opec where everybody puts production and revenue they received with several big hubs around the world. so i think right now the way things are, oil is having a hard time breaking a buck 50 and that's with a weak dollar. i just can't see it happening. i think if it stays below 50 some of the producers are going to continue to produce and any time it goes above 50, you see hedges put often by big producers, big companies. i can't see it staying up there for a sustained amount of period of time without geopolitical events. lauren: yeah and supply keeps increasing. steven, scott and luke, thank you. all right, the closing bell ringing in about 15 minutes from now. if words were fiscal weapons, president saying moments ago that his previous statements, the controversial statements may not have been tough enough as north korea is keeping its eye on a prime american prize with the new and more details and frankly downright terrifying plan to attack the united states territory of guam and its 6,000 u.s. troops. here to hash out the rhetoric versus the reality, john hanna, former deputy of national security adviser to vice president cheney, he's standing by in the beltway for us. countdown coming right back ♪ ♪ ♪ ♪ ♪ poallergies?reather. stuffy nose? can't sleep? take that. a breathe right nasal strip instantly opens your nose up to 38% more than 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[ music stops ] [ music plays again ] a smarter way to wifi is awesome. introducing xfinity xfi. amazing speed, coverage and control. change the way you wifi. xfinity. the future of awesome. lauren: threats from north korea keep coming and president trump going blow for blow with the rogue nation, president trump responding to pyongyang latest warning that it will have a plan to strike the u.s. territory of guam within days, by the middle of august, are we prepared to protect this tinny island nation and how? and quite honestly, has the time for diplomacy come to an end? we are going to ask right now foundation for defense democracies senior counselor and former deputy of national security adviser for middle east to vice president dick cheney, john hanna, good to see you, john. >> thank you. lauren: moments ago we heard from president trump and in my opinion seemed fed up with the strategy that previous administrations have had with north korea. it's been in effective and he seem today double down on his rhetoric that fire and fury might not be strong enough. what do you make of that? >> yeah f anybody doubted whether the president intend today say what he said on tuesday, they got their answer today. he's not a man that will back down, whether you agree with the strategy or not, there's a method to his madness. if they even think about an attack, it will be devastating to their country, but second, i think there's a real audience in china here, the president since the beginning of his term has been focused like a laser alabama on what's the mixture of carrots and sticks we use with the chinese to get them to finally step up, take ownership of this problem and put us in a position where we might get to some kind of productive negotiation. lauren: i heard him offer an olive branch to china. the president said if china helps us, i will feel a lot different about trade. essentially saying, we will work with you on all these other issues that we face if you put the pressure on north korea, really enforce the sanctions, and maybe even do more, do you think china is listening? >> i do think they are listening and i think we got evidence of that just this week. i don't think there's a snowball chance in you know where, that china leads the effort to get that un security council resolution last week, the toughest sanctions yet imposed on north korea unless they are sweating bullets over wondering what donald trump will do if left to his own devices to try and handle this problem militarily. i think they are scared to death of that. essentially saying the foreign policy elite which claimed to be shocked by what the president says also don't have much credibility after their policy across three administrations led to the current north korean danger. how was donald trump being more effective and he is being more effective as i'm hearing you say? >> why? first your point is absolutely right. i'm one of those foreign policy elites and the policy that we pursued for 25 years, very nuance measure, diplo speak to try to convince the north koreans and chinese to solve the problem has been an utter brilliant, spectacular failure, so i think before we start hyperventilating, we have to have a little bit of human -- humility and tries to shake things up in an ifort -- effort to get different result than the failed result that we've had for the last 25 years. lauren: perfect way to end it. thank you, all right, a new reminder that at 4:00 p.m., the governor of guam will join melissa and david to talk about island territories readiness to face down these specific threats that north korea is hurry lg at its neighbor in the pacific. all right, the closing bell ringing in about 40 minutes from now. goldman sachs and apple, they are hitting the dow really, really hard today, if you look at the heat map, three stocks that are positive but goldman and apple, they are the worst, tech and financials having their worst day in weeks. you know, facebook suffering in the tech route we are seeing today even though they came out, have you heard of this, the new home for video content, it's called facebook watch. the social network partnering with content providers to produce original shows and videos that will be available through this watch tab that some users might see on the app, website. original programming is key to boosting ad renew. they are getting kicked too. down 2% at 167 a pop. well, hoped to win millennials' hearts, blue apron is another millennial service. we will have that coming up and we are going to talk about liz and also charlie gasparino's famous apple, snapchat parent snap haven't been finding much love in the market today. can unicorns get their magic back? new york stock exchange with the answer to that next on countdown today, we're out here with some big news about type 2 diabetes. you have type 2 diabetes, right? yes. so let me ask you this... how does diabetes affect your heart? it doesn't, does it? actually, it does. type 2 diabetes can make you twice as likely to die from a cardiovascular event, like a heart attack or stroke. and with heart disease, your risk is even higher. you didn't know that. no. yeah. but, wait, there's good news for adults who have type 2 diabetes and heart disease. jardiance is the only type 2 diabetes pill with a lifesaving cardiovascular benefit. jardiance is proven to both significantly reduce the chance of dying from a cardiovascular event in adults who have type 2 diabetes and heart disease and lower your a1c. jardiance can cause serious side effects including dehydration. this may cause you to feel dizzy, faint, or lightheaded, or weak upon standing. ketoacidosis is a serious side effect that may be fatal. symptoms include nausea, vomiting, stomach pain, tiredness, and trouble breathing. stop taking jardiance and call your doctor right away if you have symptoms of ketoacidosis or an allergic reaction. symptoms of an allergic reaction include rash, swelling, and difficulty breathing or swallowing. do not take jardiance if you are on dialysis or have severe kidney problems. other side effects are sudden kidney problems, genital yeast infections, increased bad cholesterol, and urinary tract infections, which may be serious. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. tell your doctor about all the medicines you take and if you have any medical conditions. so now that you know all that, what do you think? that it's time to think about jardiance. ask your doctor about jardiance. and get to the heart of what matters. ♪ ♪ ♪ lauren: i don't want to look but we have to, blue apron shares, there you go, down 18 and a half percent. this is looking like a pretty bad souffle. loss in very first report card as public company this as the other big tech ipo for the year also hasn't had an easy time in the market, that's snapchat, parent snap, reported latest numbers after the closing bell today, but right now we go to new york stock exchange and nicole petallides, investors don't have an appetite for blue apron today. nicole: no, certainly done. it's testing the lows that it hit earlier today of 503. don't forget this is a 10-dollar ipo, so down almost 50% from the ipo price. what they saw revenue beat but no one cares, the big picture is that the customers are dropping, the costs are going up, the marketing spending is outrageous and they don't meet what everybody is expecting them to do, whether it's meal plans and getting it going. big picture here, they are failing in the investors market at least and huge competition from amazon, amazon taking over whole foods and now recently got a trademark for meal kit delivery. that's exactly blue apron's business. we will watch for snap after the bell, we expect volatility there. in their last report they did ultimate i will say they had a wider than expected loss revenue that didn't rise as projected and the stocks dropped 20%. we have no way of knowing what snap will say. that stock is down 44% since ipo. ipo's haven't given investors high hope returns that they may were hoping for but we will see ultimately going forward, lauren. lauren: not at all. you were talking about amazon, food companies are battling amazon. some of the retailers, macy's and kohl's put out numbers in retail ice age today and quarterly numbers were better than expected on both the bottom and top line. yet the stocks are down really significantly today. is this just part of the broader selloff or is this something else, nicole? nicole: no, it's really -- you can come out the numbers that beat the street. the truth of the matter store sales have been declining and not as bad as they used to the and both ceo of macy's and kohl's came out and the big picture is that sales are on the decline and forecast for macy's and in particular was pretty huge as far as the losses that they were going to be seeing in in-store sales. then we watched jc penny and nordstrom after the bell, right now those are down 7 and 4%. i will note your point is that big picture the market is selling off across the board. this selling that we are seeing could be accelerated for sure. lauren: nicole petallides, thank you very much. and, of course, the retailers suffer when they do the whole discount and sale thing, i like that but not good for investors. a reminder for all of you, looking for liz claman, he's not anchoring her show, you can find her, slip at 4:00 o'clock eastern, she's filling in for neil cavuto on your world. liz will be here tomorrow at 3:00 p.m., this is my last day. she will bring you the latest on earnings and north korea and everything in between that's moving the needle on your portfolio. countdown coming back when the closing bell rings in half an hour from now the war of words from kim jong un, not the only verbal battle president trump is finding himself in. the commander in chief not holding back when it comes to senate majority leader mitch mcconnell. the latest in this fight and what it all means for health care, for tax reform, for the debt ceiling and the potential government shutdown next month? more countdown on the way, please stay with us ♪ it's a highly contagious disease that can be really serious... especially for my precious new grandchild. it's whooping cough. every family member, including those around new babies, should talk to their doctor or pharmacist about getting vaccinated. at the lexus golden opportunity tesales event before it ends. choose from the is turbo, es 350 or nx turbo for $299 a month for 36 months if you lease now. experience amazing at your lexus dealer. ♪ ♪ ♪ lauren: the last 25 minutes of trading very critical to your portfolio. right now we want to break in with the breaking news that stocks are at session lows, the nasdaq is down just about 2%. the s&p 500 which has gone 58 do days without 1% move is down one and a quarter percent on this day, 59. the dow is down 165 points right near the lows of the session as the rhetoric with north korea elevates. well, you thought the feud between president trump and, well, senate majority leader mitch mcconnell simmered down, you were dead wrong, it heated back up in the past hour. president trump asked if mcconnell should resign, this was just moments ago after a flurry of tweets, the senate majority leader because he criticized president trump for having excessive expectations for getting legislation passed. fox business blake berman has very latest for us in washington. hey, blake. blake, president trump delivered what really could be seen as one step shy of an ultimatum and asked in new jersey if mitch mcconnell should resign and he did not swept that possibility. >> if he doesn't get repeal and replace done and if he doesn't get taxes done, cut and reform and if he doesn't get easy one infrastructure, if he doesn't get that done, then you can ask me that question. blake: earlier this week mcconnell said that mcconnell political had excessive expectations about the agenda and since then the president has been assailing mcconnell. the latest was earlier this morning in which the president wrote, mitch, get back to work and put repeal and replace, tax reform and cuts and a great infrastructure bill on my desk for signing, you can do it. that was the president actually from this afternoon. by the way, lauren, the president and mitch mcconnell did speak on the phone yesterday. the white house confirms that they talked about health care, however, a source also tells fox that that call went just beyond pleasantries, that it was a tense call and we were told -- lauren: you think? blake: that the president ripped into mcconnell. lauren: he did for the world to see. fallout from the wrestling match the president is having with senate majority leader, the former trump 2016 campaign chair and democratic strategists david mercer. lina and david -- lina i'm going to start with you, the president trump is attacking republicans more than democrats? >> not at all, president trump campaigned on abandonment of political correctness and promised to hold people accountable for statements and actions. mitch mcconnell and other members of the senate had almost seven years to prepare for health care repeal and replace that he himself campaigned on, this is a president that's holding people accountable. when mitch connell says that president trump is a novis, the people elected something outside of the political fray who would call things as he would see them and right now he's seeing in effective governing body incapable of passing reform. lauren: 12 working day away, the lights don't go out in washington, d.c., you think they can prevent a government shutdown here? >> i think they have to and we have seen alarms that it might not happen in prior years. i don't think it goes well for republicans having the house majority, having the senate majority and a republican president to not be able to allow for the full functioning of the government, to get on with further budget reconciliation, we also know on trump's agenda are tax cuts, an infrastructure bill, if they ever come to complete draft of it and given what we just saw with the trump care failure, i don't think they want to lead off with not being able to meet a debt ceiling in order to provide the services and the functions of government that we all come to expect and that elected officials were elect today make sure it does not happen. lauren: lina, you know, the infighting among republican -- among republicans is is that what is kind of stalling, stopping, delaying, i don't know the right here, the trump agenda primarily health care reform and tax reform? >> i believe that that is going on. i think it is high time for people to come together as a republican party but certainly as the overall governing body, i hold democrats and republicans accountable, this is the president that is furthererring promises made that he will always be the president in history promises made, promises kept in terms of his efforts to deliver to the american people. he is investing in infrastructure reform, he is committed to tax reform and health care reform. it's very important that he be successful, a successful american president leads to a successful america regardless of ideological differences. >> if i might, lauren just add to that. lauren: go ahead. >> we all want a successful president in hope that is that directly impacts having a successful economy, a growing economy, staying out of conflicts, et cetera, but what we have seen are a host of broken promises here. lauren: right. >> it does not help when the president and speaking of unity is going to in public defame the senate majority leader who is carrying the ball, now he may not have scored a touchdown on trump care but there are other plays to run for tax cuts, infrastructure and whatever and to do that publicly does not send a good message to team spirit to get things done on behalf of the american public. lauren: maybe he should have left it at just -- >> privately. lauren: he shoots from the hip and i guess we have to accept that at this point. getting health care done and we've seen premiums from big companies going up, $14,000 to ensure one employee next year, tax reform, if we don't get this stuff done, there's no way we are going to grow the economy 3% and get back on track, so the agenda is to important right now. i want you guys interviewers to look at the picture that amazon ceo jeff bezos just posted on social media. it's a picture of him at the amazon headquarters in seattle with defense secretary mattis. as we are talking about north korea ulina, why do you think mattis would be at amazon today? >> that's a great question. i would like to ask him that. lauren: david, any idea? >> he should be consulting with the president and vice versa and i would think shots in the situation room where deliberations going on, with the secretary of state doing the same specially given his visit opposite north korea, et cetera, that they should be huddled as opposed to spread all apart to provide consensus and in apparent threat that north korea is posing. >> i would respectfully disagree with what david said and i think that one thing that the media has been guilty of ever since president trump took office is making assumptions about somebody's actions such as -- such as mattis. i think it's very important with the optics of this to wait and see and hear from him directly about what intentions were today. lauren: he was briefed. he had a security briefing with vice president mike pence, chief of staff kelly and national security adviser mcmaster. lina and democratic strategists david merce are, thank you. great to see both of you. >> thank you. lauren: closing bell ringing in about 17 minutes. president trump squaring off, yeah you heard about it with mitch mcconnell but another taxing matter might be dividing the gop. charlie gasparino has latest clash which could derail, largest ever tax cut industry, coming back we're on to you, diabetes. time's up, insufficient prenatal care. and administrative paperwork... your days of drowning people are numbered. same goes for you, budget overruns. and rising costs, wipe that smile off your face. we're coming for you, too. for those who won't rest until the world is healthier, neither will we. optum. how well gets done. potsc(in unison) drive russ, leland, gary: yes. gary: i have a ford f-150. michael: i've always been a ford guy. potsch: then i have a real treat for you today. michael: awesome. potsch: i'm going to show you a next generation pickup. michael: let's do this. potsch: this new truck now has a cornerstep built right into the bumper. gary: super cool. potsch: the bed is made of high-strength steel, which is less susceptible to punctures than aluminum. jim: aluminum is great for a lot of things, but maybe not the bed of a truck. potsch: and best of all, this new truck is actually- gary: (all laughing) oh my... potsch: the current chevy silverado. gary: i'm speechless. gary: this puts my ford truck to shame. james: i'll tell you, i might be a chevy guy now. 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>> i don't think so after the run-up we had. there's two points. north korea clearly is there and tax cuts, particularly corporate tax cuts for -- in the next tax bill and what we are getting out of washington and i will tell you, traders do have sources in washington, there's all the services believe it or not that track what's going on in washington and how that impacts investments and they are getting wind of this that right now what we have increasing tense relationship, we are hearing this between kevin brady, house and ways committee, key player with paul ryan, house speaker in tax writing in whatever comes out of this bill, tax cut bill and the freedom caucus, the more conservative wing, same part that essentially stimmit health care. brady wants cuts, house freedom caucus, they believe we should do a straight tax cut, they are more supply side. they believe in the futures the revenue would come in. this is where it gets interesting. if they start -- if brady and ryan essentially start splitting the difference -- lauren: never get anything done. charlie: liz is going to be interviewing brady and this is clearly one question. is this rift that you're having that the leadership is having with the house freedom caucus, could this further stall tax cuts. listen, some of the nervousness in the marketplace is related to this because the big thing even more than individual tax cuts, it's corporate tax rates, 35% rates, high nest the world, causes a lot of businesses to go overseas, start businesses overseas or move businesses overseas, they want -- trump plan is to get it down to 15%. if they start like negotiating where it's like a 25% cut, 30% cut, it's not enough bang for the buck. let me make one more point before you ask me a question. the effective tax rate is 27% with loopholes. you close all the loopholes and you only get a 25% corporate tax rate, you're not really giving businesses that much. lauren: yeah, and can we just seem to agree on whether tax cut or tax reform is something, why would they start fighting about this? >> because you have two different philosophies at work and shows you rich in conservative movement. bob dole type conservatism, ran for president long time house republican -- senate republican leader who believed in combating the deficit, believed if bouncing the budget, even if it took raising taxes. you have the much more newer, younger movement conservatives which a lot of the house freedom caucus reflects this who believe supply economics, immediately when you cut tacks you will get some deficit, some impact on the deficit going up but long term the reagan tax cuts essentially paid for themselves. lauren: as we are talking about this we have the dow down 190 points. charlie: there you go. this is one of the reasons the dow is down along with north korea. lauren: stocks still under pressure even more so in the last couple of minutes. up next we have a market guru who hasn't been playing it safe at all. would the threat of war and stalling promise tax cuts change his strategy? ubs investment officer mike ryan standing by. in t countdown. hold on dad... liberty did what? yeah, liberty mutual 24-hour roadside assistance helped him to fix his flat so he could get home safely. my dad says our insurance doesn't have that. don't worry - i know what a lug wrench is, dad. is this a lug wrench? maybe? you can leave worry behind when liberty stands with you™. liberty stands with you™. liberty mutual insurance. . . . . ♪ lauren: lauren: take a look at the dow right now. 21,865. near a 200 point loss from the lows of the session. nasdaq down over 2%. dropping over 1%. >> two days ago we had comment from president trump, fire and fury, the markets were up 60, then moved down 60 points. prior day we lost 70 points. we're almost down 200. in total a ltl than 217 points. we're seeing a 1% move for the s&p 500 we've not seen in nearly 60 days. the big picture is selloff we've seen in three months. some people taking money off the table. there are certainly jitters. lauren: thank you, nicole. we'll see what happens tomorrow morning in final couple minutes. the group seeing. my next guest says don't let safety lull you into false sense of security. mike ryan from ubs joins us now. mike, i'm looking at vix. it is spiking today. we saw 15 but the historical average is 20. to give a little pushback, are investors scared? >> i don't want to overreact today. this is risk-off based on event, concerns about escalation and tensions in the korean peninsula and global growth and financial markets. we still look at this as a low probability event. we still think if you think about nuclear war to us, that is still unthinkable, conflict on the korean peninsula. we also recognize the acceptance of icbms that could hit the united states is also unacceptable. i think what we'll see something has to be worked between those. you have to pursue diplomatic solutions include implementation of sanctions against north korea. lauren: geopolitics changes everything i have get it. when you focus on the trump agenda, speaking ledge slate of of -- legislatively, charlie gas broke a story. they couldn't get health care done on the in the senate specifically. there might be a rift on tax reform and tax cuts. do you think that will hurt the market because that is what investors are focused on? >> will i play a role. i think it will longer term. do i think what the markets are reacting today? i don't. there has always been a concern failure to get the aca done, the fact you don't have political mow men testimony and spent a lot of political capital trying to get the aca repealed and lee place you have a lot of momentum lost for tax reform. there are divisions in the republican party. the debate on the aca showed fissures in the republican party. this is not knew. it raises stakes for republicans getting something done. lauren: thank you, mike ryan. the bells on the wall street about to ring. [closing bell rings] this is the worst day since the middle of may. snap, earnings on tap. catch me tomorrow morning at 5:00 a.m. melissa: dow ending down about 200 points. look at that! all three major averages biggest drop since mid-may. david: looks like panic selling. never a good idea, folks. melissa: don't lock it in. david: glad you could join us. this is "after the bell." more on the big market movers. here is what else we're covering in very busy. we'll hear from the president, president trump doubling down on harsh words for north korea saying his fire and fury talk may not have been tough enough. the president slamming senate majority leader mitch mcconnell on

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