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tv   Making Money With Charles Payne  FOX Business  January 10, 2020 2:00pm-3:01pm EST

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investing in this market, that's 500 billion i should say. so that's a big deal. people get nervous about stock. charles back to you. charles: stocks are hovering near all-time highs. we saw the lowest unemployment level in history, but held down in losses by manufacturing and mining. what does this mean as we head into the economy 20620? -- into the economy of 2020? i have the best on that. we will discuss if white house sanctions will lead to deescalation with iran. e-mails showing that employees knew about the problems with the grounded 737 max and regulators. all that and so much more on
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"making money". so the dow retreating here, crossed the 29,000 mark for if first time ever, pulling back just a little bit. the other indices are higher this as the jobs report coming in with some positive reinforcements i think about our booming economy. here though to help me break it down is phil blancato and also brian wesbury. the jobs report, brian, your overall theme for that and what it means going into the new year. >> 144 is weaker than last month's 266. we had a few minor downward revisions, but anywhere from, you know, around 150 to 200,000 is enough to keep the unemployment rate down. this year the fed's not going to be raising rates. the tax cuts and deregulation are still kicking in. profit margins are high because
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technology keeps reducing the cost of delivering goods and services, and when you put that all in the bucket, i think this economy not only accelerates this year, it is not going to grow 4%. but earnings are going to go up 10 to 12 percent, and that means the stock market's going to end up higher at the end of the year. charles: real, quick, brian, another measure of unemployment, was significantly better than the one media uses at an all time low. what drove it is what they call people marginally attached, folks not even looking for a job, sitting at home eating a bowl of cereal and you get a knock on the door, you've got a job. that between that and 140,000 fewer people working part time because they had no choice, those are the sort of things on the outside that mean everything. i mean, you're bringing in people in this economy that had given up on it. >> right. yeah, and that's why today the one negative that we had today in this report, if you really want to look at it that way is that earnings growth was a
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little bit slow. i'm going to tell you, these numbers are volatile from month to month, but with discouraged workers down at 6.7%, the lowest in recorded history, these wage numbers are going to head higher in the years ahead. they have to because companies are finding ways to hire workers and the only way to do it is to pay them more. charles: speaking of higher wages, phil, taco bell managers making $100,000, that is like mind boggling. by the way, kind of lost in the headline, paying for sick leave for the first time ever, this is like for all employees who have been there for over a month or so. this is remarkable stuff. >> think of the states that are having minimum wage requirements boost up here as well. when the economy gets healthy and the consumer can gainfully spend, we've seen real great unemployment. we've seen exceptional wages. to add to brian's point when you look at the lowest 25% of
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workers versus the highest 25%, in the month of november, the lowest 25 got a bigger boost than the highest 25. that's why we're still growing. that's to taco bell's point, they can afford to pay that now. charles: going back to september 2018, nonsupervisory workers blue-collar workers their wages grow faster every month since one, so 14 out of 15 months. i think this is maybe even in some ways better news for the stock market. you can't say the economy is overheating to the point where the fed's got to change direction. >> definitely not. i'm a little bit concerned about inflation because wages tick up, i think we might see a bit. here's where i'm worried while last year was a complete multiple expansion and i believe that i think we had strong enough gdp to warrant some of it, i'm worried in goldilocks environment, mild inflation, mild growth at 2%, mild wage growth gets us to 8 to 10 percent on the s&p this year which is solid don't get me wrong but hard to replicate what we did last year. charles: i want to come back to
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you in the market. you kind of put it in the park, coasted out of the year. i want to come back to you. brian, other economic data out this week, and last week, suggests that the economy could be reigniting, you know, from the housing market to even some of the things, for instance, maybe some signs even on manufacturing. other signs that there's a chance we could actually -- this 11-year-old boom could actually be gaining strength here. is that even possible? >> i totally agree. you know, we had ism manufacturing and ism services. the services is 88% of the economy, and that number exploded upward. the manufacturing number is still weak. by the way, i find this in a way a little confusing because consumers bought goods in 2019 at the fastest rate we're seen in 15 years. so if companies aren't producing, but people are buying, something has to give, and my belief is that it's going
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to be the manufacturers. they are going to have to lift production because inventories are just too low. charles: i agree. >> i'm optimistic. i think that we're going to have -- if we want to grow 4%, charles, the only way we can do that is to cut the size of the federal government, and i don't see that happening right now. we're going to grow 2 1/2 to 3. charles: that ain't happening. we've got to go. this market, you are back in it and you are looking for a nice up tick. >> worried about fixed income. fixed income is expensive. you can make money around the stocks. get paid to wait around, collect your dividends nothing wrong with that. charles: phil, brian, two of the best, appreciate it. thank you guys. joining me now with reaction from the white house on today's jobs reports council of economic chair. tom, you have to be pretty excited about it. it is interesting, go back to february 2, 2018, year over year
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wages are up 2.9%. that same day the dow was off 666 points because wages were climbing too fast. everyone was afraid the fed would jump in. how different is it now that the 2.9% people are saying the white house should be concerned that it's too weak? >> i think that's misguided. here's what's going on. everyone knows this is an economy that's really benefitting the bottom half. we heard about the wage growth taking place in the bottom half relative to the upper half. we have new data now on the same thing happening in the wealth distribution. so basically the bottom half of the wealth distribution under trump -- close to 50% in net worth during trump. that's an amazing achievement, and the top 1% has only gained 13% in net worth. so we have an enormous amount of wealth convergence going on under trump, and that's really something that we're happy about. charles: what's the game plan to keep it going, even get it a
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little better? remember president trump said once he's been in for a few years looking at 3 to 5 percent gdp. what are the next steps to give it that extra boost? >> we have our deregulatory agenda which is under appreciated how much it is benefitting the economy. a report came out showing up 1.3% over four years. now, we also have obviously we have four trade agreements one with our two biggest trading partners usmca and three in asia with south korea, japan and phase one china deal next week. those are three upswings. if boeing gets settled, that's another big swing. we're very optimistic on 2020. charles: what is your greatest concern? there's been a lot of quote unquote noise out there, certainly what's going on in washington, d.c., if not occasionally spooking the market, making people uncomfortable, we wish there
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would be more legislation than instead of the war that it feels like both parties have entered. >> there's a lot of political risk which actually affects investment, but in general i think it's the messaging of that we're sort of getting stonewalled on this great economy by the media. i can give you one example. the washington post came out and said the blue-collar boom we're experiencing is due to the work of state governments raising minimum wages. that's completely ludicrous really. i mean, it is 2 percent of workers on minimum wages. it is not growing faster in those states that are raising them than that are not raising them. charles: yeah. >> i think one big threat is really about, you know, how do we get this message out to have people be confident or as confident as good as the economy is? and that's a big issue where the media is stonewalling us. charles: listen, i guess at one point it is flattering that at least the washington post is admitting that blue-collar and low income wages are soaring, and to your point, only 434,000
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out of 82 million hourly workers are minimum wage workers, very small drop in the bucket. so with all of this being said -- >> i just want to add one point there. minimum wages -- if they were responsible for this, we would see employment dropping as opposed to increasing in every state universally really because you prevent workers for hiring people below that wage because generally most economists think the cost of labor goes up when you raise the minimum wage and therefore employment should be going down and not up. it is clearly not what's driving the blue-collar boom. charles: i agree with you a thousand percent. today though we did see weakness in manufacturing. we saw weakness in mining. any concern there? particularly on the mining side, those are really oil workers. energy independence, we saw earlier this week, exporting year to date 58 billion dollars of crude.
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america exported that much, up 14 billion year over year. can we keep that miracle going? can it get better? >> very optimistic on manufacturing and energy in general, i think. i mean, as you know, there's an energy boom going on in terms of we're now net exporters of both gas and oil. charles: right. >> and the president said we don't need middle east oil anymore which is actually a great buffer against what's going on in the geopolitical space. charles: it certainly is. tom, thank you very much, appreciate your time. >> okay, thank you. charles: later in the show, why i'm saluting rod stewart, elton john and so many of them because you are never too old for rock and roll. does facebook even care since we the american public, we can't break our addiction to that social platform? plus how the united states is pushing iran's sanctions to the brink and why president trump is taking on house lawmakers over the conflict. >> they're all trying to say how
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>> we will cut off billions of dollars of support to the iranian regime, and we will continue our enforcement of other entities. the president said we don't want war. we want iran to behave like a normal nation. the reason the secretary tresh you are and i are here this -- treasurer are here this morning to continue this effort, to get iran to behave the right way.
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charles: secretary of state pompeo and treasure secretary mnuchin. the president trump bashed lawmakers for passing a resolution to limit war powers against the iran regime. joining me now is candidate ford o'connell. thank you very much for joining us. >> always good to be here. charles: last night the war powers was voted on. eight democrats didn't vote for the bill, but three republicans did. an interesting mix. we have been asking for bipartisanship, didn't think we would get it that way. >> here's the deal, president trump was right to take out soleimani. we're talking about the world's number one terrorist. it was lawful. we are talking about someone who killed 600 american troops. we're talking about someone who tried to storm the u.s. embassy in iraq. you're a vet, charles. you know appeasement is not the way to go. but what pelosi is trying to do here, she's trying to play politics. she's trying to paint donald
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trump as a war president and that's just absurd to allow her to play politics with the lives of the u.s. troops. charles: what do you make of it, ford, the sympathy for the soleimani or suggesting that somehow president trump did something that president obama didn't do? president obama had over 500 drone attacks. he killed 3700 people, over 300 civilians, and i never heard -- there was a memo you could go after american contractors, they changed the definition of imminent threat, none of this is new except the outrage >> that's exactly right. this is 2020 politics at its worse. the democrats have no idea how to defeat president trump and essentially they are trying to paint him basically as a pro-war president. remember, president obama even labelled soleimani a terrorist. i'm surprised he wasn't taken out ten years ago. i tip my hat to president trump. but i'm going say something, matt gaetz is not the only one who had a lapse in judgment and fell for pelosi's political game. the guy i'm trying to replace
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made the same mistake. if i'm privileged enough to be elected in florida, i will not let nancy pelosi try to hurt donald trump solely for political gain. charles: okay. you got in the campaign thing, and we'll reach out to your opponent. he's been on the show before, get his thoughts on that, but let's stick with nancy plo pelosi for a moment, ford. she's now saying the articles of impeachment against the president will be sent to the senate next week. the buzz surrounding the impeachment trial and the thought that maybe former national security advisor john bolton would testify, well, just moments ago president trump weighing in on fox news with laura ingraham. let's take a listen. >> why not call bolton? why not allow him to testify? this thing is bogus. >> i would have no problem, other than one thing you can't be in the white house -- i'm talking about many future presidents and have a security advisor, anybody having to do with security and legal and other things -- >> are you going to invoke executive privilege? >> well, i think you have to for the sake of the office.
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charles: your thoughts, ford? >> here's the deal, nancy pelosi has basically ran through two vague articles of impeachment -- charles: are you okay with the rationale for not allowing bolton to testify? >> i am because essentially mitch mcconnell understands his caucus, and he understands what a joke and a farce this is, and that needs to be dismissed. i do agree, if we weren't facing 2020, john bolton should testify because essentially he's going to make the case that donald trump's absolutely right. charles: ford, great seeing you. been too long. congratulations. >> always my friend. thank you. charles: coming up folks the author of the defining book on the forgotten man now she explains the new history for the great society. the author is here. plus despite california workers grappling with the state's new economy law, new york's governor andrew cuomo says hey we want in too. we will be right back. we made usaa insurance for members like martin.
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charles: governor andrew cuomo signalling the state wants to follow california's footsteps by regulating the gig economy in the state of the state address, he compared the gig economy to sweatshops vowing to end the quote fraud. all the while ignoring the fact that while this new california law is causing a ripple of unintended consequences hurting the workers that it was supposedly going to protect. i want to bring in the "wall street journal"'s opinion writer. i just don't get it. chicago did something very similar and now the prices have gone up in california for these, you know, ride sharing guys. the gig economy was filling the hole, has filled a hole for so many americans, and, you know, people like andrew cuomo talk about work life balance. there's nothing better for work life balance than being able to call your own hours.
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>> you are right. i urge cuomo to look at what happened here in new york city when we started imposing the minimum wage on drivers. lyft prices all f of a sudden went up. they started limiting how many drivers they were allowing to be on the clock at low passenger hours. a lot of drivers ended up with less income as a result of that. i think these have a way of backfiring, and who it benefits really is the unions that want to organize these gig workers and the plaintiffs attorneys that want to sue over labor violations. charles: you have been maybe too nice because these aren't unintended consequences maybe andrew cuomo is smart enough to see what's happened in the past and maybe their biggest constituents -- [inaudible]. >> excellent point. i will point out i know he and de blasio kind of have this feud, when de blasio was doing these things he was talking about how uber drivers are doing great. i think it is inconsistent. i would like to know why.
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charles: unfortunately i had to take lyfts for almost three months. it is going to be over next week i'm told. i've learned a lot about the gig economy. i really would hate to see the hand of government tip the scales. i mean, i think it is working out wonderfully for so many people, and it's just sad that cuomo was going to go through this. by the way, he probably won't be the last one. >> i think you are absolutely right. i would look to some other progressive cities. california is the canary in the coal mine and progressives are determine to dive right into that mine. charles: wellre right behind you -- we're right behind you. let's talk about another controversial company, facebook sparking criticism for refusing to limit targeting political -- is this shift a blip since let's face it it is so hard ultimately for us, the american public to quit facebook so we complain. maybe mark zuckerberg took this into consideration. i don't know. >> well, i'm glad that he's doing it. i think it is really important
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not to have facebook -- charles: you feel like he's taking a stand for the 1st amendment. >> i do. it is not even a 1st amendment issue. it is a private company. i think it is important for free speech and for society. we've got to be really careful about who we're asking to determine what political ads are misleading. i don't want facebook making that decision for me. i i want to make that decision myself as a consumer of news. but, you know, to the point, i do think it's really interesting the way that people get their news now. it is much more engaged with social media than it is with traditional print. charles: it really is. >> it does affect the political discourse. charles: it is interesting, a big study done and was published last november going into the 2018 midterms, and they took some people off of facebook. 80% of them in this treatment group reported that the deactivation was good for them. unfortunately of those who quit, and by the way, they spent less time on-line. they watched more tv. they socialized more. they were less knowledgeable about news, but they were also less polarized. >> uh-huh. charles: almost all of them said yeah i'm going back to facebook.
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so ultimately we do these segments. everyone is up in arms. state attorneys general are looking at it, facebook, but it feels like the consumer comes back. >> yeah, they like it. i have a ton of friends in my brunch group who have periodically quit facebook and have come back because they miss the social engagement. it is what they are using to jump off to real world connections. you can try to quit it, but you may end up back. charles: i like that you have a brunch group. >> i do. charles: i have a buddy i meet every now and then i meet in the lunchroom. every now and then. great seeing you. >> good seeing you. charles: it is time for my winners and losers of the week. find out which category harry and meghan fall in. also rod stewart still touring at 75 and still asking if you think he's sexy. one of the many reasons why i'm giving major props the old rockers. that's next. ♪ at fidelity, online u.s. stocks and etfs are commission-free.
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i'm but how do i know if, i'm getting a good deal? truecar knows exactly how much people have been paying for the car i want. i tell truecar my zip and what car i'm into, and it shows me the truecar curve. this shows the range of prices people in my area actually paid for the same car. looks like these folks paid a little more than everyone else. and this guy got the deal of a lifetime. this is how car buying was always meant to be. this is truecar. (narrator) before you buy a car, see what others paid for it with truecar. charles: that's a nice song. elton john, ozzy osbourne releasing the single today days after the rocket man scored big at the golden globes.
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i wouldn't call it a comeback because old time rock and roll never went away. the likes of rod stewart, the beach boys, brian wilson, peter paul, all still touring and enjoying pretty big crowds. that's why old rockers are my pick for winner of the week. joining me now to discuss is district media group president beverly hallberg. i'm reading about rod stewart, like he got into a fight on new year's -- first of all, you know, he's 75 years old. but the guy who wrote the article dissed old rockers saying at a certain age you should stop. i think that's wrong. they are my winners of the week. >> 70 is the new 60. i applaud them and think it is great. i think in many ways young musicians and young people can look to some of these individuals who have struggled with drug use in their past who have on a path of sobriety. elton john this past july said he has been sober 29 years. like you just mentioned, he's already had a big 2020. he did win best original song
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for the biopic of his life called "rocket man". he may get an oscar for that song as well. charles: all right. now, for one that could be a winner or loser, depends on how you look at it, but i think it is a good story. we just heard this week the largest ever one year decline for u.s. cancer rates overall rate falling since 91 but drops of about 1 1/2 percent, fell more than 2 per sent from 2016 to 17, how are you feeling about that? >> this is huge news. and i will say personally i have a very dear friend who has been battling melanoma, her third bout and she just found out she was cancer free because of immunotherapy drugs. this is where we're seeing great innovation in medicine and especially when it comes to skin cancer where if a patient has it, there's a very high chance they will be able to beat it, but also i think it's also the information that people have. you see that smoking has decreased among individuals and also preventive measures to make sure they don't have cancer. i think this is a winner. charles: the loser without a doubt are scooter companies.
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you know, there are all kinds of reports out today about injuries. 40,000 er visits from 2014, 2018. lime laying off 14% of its workforce ceasing operations in 12 markets. when i was growing up in new york, you had to look down to make sure you didn't step on the wrong thing but you also had to look up and make sure you weren't mugged. if you trip over one of these scooters, that's all she wrote. they're ugly, eyesore, lay anywhere, they need to figure out a better way. >> whenever i step outside my home, sometimes i'm trooping over the scooter that was just strewn about. my dog is terrified of them. there are many reasons why i don't like the scooter ts. here's the thing, residents don't use them. this comes down to tourists using them. by the way, they don't use them well. they stack too many people on them. they get into streets. i think the reason why you are seeing a decline in scooter use is because people are finally waking up and saying hey it is
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kind of littering the streets. we don't really like it. i have a question for you, charles, have you yourself ever used a scooter? i personally haven't. charles: i have done the rental bikes. there is a weight limit on those scooters, by the way. [laughter] >> i've seen tourists piled up on them, charles. i'm not sure there is. charles: okay. last time i went next to one, the thing turned red. but let me bring up your loser because harry and meghan you are saying they are a loser. they are stepping back from their royal duties. this whole thing goes over my head. what's going on here? >> here is meghan markle and of course her husband harry, saying they no longer want to be a part of the royal family. it is so bad that even madame tussauds in london is removing their wax figures, charles, so they will no longer be with the royal family and wax figure family. they say they want to be financially independent, but yet they still will be receiving some money from the british government. they still will have a residence that's in windsor that was just remodelled for 3 million dollars. and they just trademarked sussex
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royal. they still plan to be making money off the royal name, even though they say they no longer want to be part of it. charles: i have a feeling we will see a collaboration between supreme and sussex royals. it rolls right off the tongue. thank you very much. always enjoy your segments. see you soon. >> thanks. charles: folks, listen to this quote. this airplane is designed by clowns. now, it's not coming from a disgruntled passenger, but a boeing employee. it only gets more disturbing. the shocking e-mails that you are going to hear next. and later, why the failure of president lbj's massive governmental attempt to remake society should shake bernie sanders and elizabeth warren's voters to the core. scaring the heck out of me. we will be right back. so what are you working on? >>i'm searching for info on options trading, and look, it feels like i'm just wasting time.
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charles: this airplane is designed by clowns who in turn are supervised by monkeys. that's what one boeing employee wrote in a series of e-mails being released today showing how much workers knew about the safety of the now grounded 737 max and the efforts to hide those problems from federal regulators. grady trimble is joining me with more details. we were bracing for these to come out. people still shocked. >> yeah, shocking and embarrassing for the company. boeing itself admits that the messages raised questions about the company's interaction with the faa, and they also give you a behind the scenes look at how these employees felt when getting that 737 max plane to market. here's another exchange, where one employee asked would you put your family on a max simulator trained aircraft? i wouldn't. another employee responded to that saying no. here's another one i still haven't been forgiven by god for the covering up i did last year. can't do it one more time.
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pearly gates will be closed. now, boeing's new ceo starts on monday, and the company promised more transparency under him. this appears to be a step in that direction, and a first step. you see boeing stock more than 1 1/2% today. boeing apologized to the faa, to congress, and its customers and passengers. it calls the messages unacceptable and says they don't reflect the company it is and needs to be. boeing insists its simulators which some of those internal messages called into question are working, and for its part, the faa says some of the messages are disappointing, but they don't raise new safety concerns. switching gears, slightly, on a similar note, though, spirit aerosystems is a big supplier for boeing, they announced today they are laying off 2800 employees at their wichita, kansas facility. they expect more layoffs at other facilities on the way. excuse me, charles. and the problem is, they don't know when production of that 737 max will resume, so they have no
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way to tell when the employees will be able to come back to work. charles: grady, thank you very much. appreciate it. meanwhile, elon musk approving his naysayers are wrong, folks, as tesla kicks off 2020 with a bang becoming the most valuable u.s. automobile company after the stock rallied to new highs. claman countdown host liz claman joins me now to discuss. >> you know what? if you had a nickel for everybody who said tesla's stock was going down, boy, would you be rich, not as rich as elon musk who has put his whole body and soul behind it, right, charles? i mean you and i followed the stock for years. i was the very first broadcast journalist years ago to go out to hawthorne, california, where he had a rocket ship company that he was putting together, and it looked like a science project. i remember that it looked like tinfoil with a bunch of ex nasa guys and ex rockwell international guys working on it eating you know granola bars.
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it was so interesting, and i thought is this ever going to happen? but that capsule, the dragon capsule was right there. so that's what space x started as. you know he's run two companies at the same time, tesla. you can't count this guy out. there's the one-week picture. if you look at the picture since it's gone public years ago. charles: i was in it one time at 30 bucks a share. i have been in and out of the stock maybe 20 times. i got to tell you, he is absolutely phenomenal. liz: you know what? i don't know about you, i'm kind of torn on the get the stock up and get more re numeration because that's when people start doing funky things and engineering a little bit. i'm not saying he would. this is his baby. you need to be careful of those things. i like get more off the assembly line, start churning these things out. that's what i think should
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definitely be sort of that incentive; right? charles: it is the incentive. people are starting to change their minds. i know liz will follow up on this. tune into the "claman countdown" at the top of the hour. keeping an eye out for the historic day for the markets. maybe the dow doesn't close above 29,000 but the last hour of trading you never know. 2020 democrats may think they are breaking a mold on policies like medicare for all and the wealth tax, but these ideas aren't really that different from those 60, even 90 years ago, where we can learn from history and perhaps end the cycle of government dependence. that's next. in a world where everything gets a sequel. it's finally time for... geico sequels! classic geico heroes, starring in six new commercials, with jaw-dropping savings. vote for your favorites at: geico.com/sequels
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charles: the year might be 2020 but the tug-of-war between socialists and capitalists raging like it is 60, maybe even 30. back in 1960 americans grappled with the same issues we are talking about these days whether it's poverty, healthcare, racial relations, under jfk, lbj, even nixon, now that we have created a dependency on government, can we ever get out? joining me now the author of the great society, a new history. i've always been a fan. i want to say thanks first and foremost coming on also the author of the forgotten man which is a classic. let's talk about this. the reason i'm struck with this -- by this book is not only do you set the record straight, but we're on the cusp of perhaps entering another version of the new deal, even after the first two attempts failed. >> yes, we are. one thing that struck me when i was reviewing for this book, about the 60s, was the idealism. that was similar. kids who believed that
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everything can be heavenly, if only we redistribute. you know, it is lovable to be idealistic but you don't do lovely things when you are. charles: you say the 1960's though forgot the lessons of the 1930's. >> well, the story of the 1930s is that government didn't make it better. the great depression was great because government played god, as the chief economist said. it's the truth. and in the 60s, it's different because we weren't poor at the beginning of the 60s. we were in growth, and we said we can afford to do anything, a second new deal, and we'll always be rich. that didn't work out either. charles: your book begins with a wide-eyed socialist, well meaning, i think, but, you know, as sort of we have a wide-eyed socialist now named bernie sanders, another one elizabeth warren, and they are pulling the entire democratic party even further left. so no matter who the nominee is,
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there's going to be echos back to the 60s and the 30s, as part of their platform. >> yes, there are, and when we look back at -- let's take something that was very important, the war on poverty, that was key to the great society, and the idea was that we would mop up poverty, that we would cure it. these are words that were used by president johnson or his allies. there was no cure of poverty. in fact, we actually forced people to stay in poverty by teaching them dependence, and both parties have acknowledged that. it was president clinton who acknowledged it when he rewrote welfare law to encourage work. so both parties agreed. the only problem now is we forgot. charles: i mean, if we forget, we know it is human nature to have to learn sometimes again the hard way. i mean, how are you surprised about how popular some of these -- whether it's the green new deal, whether it's the levelling of the playing field,
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we hear all of it. bloomberg has recently talked like that, mayor pete, biden, as if it takes the heavy hand of government to make things right. >> i'm surprised, but not too surprised. that maybe we failed when it came to education. at one point i want to mention because we're on a money show, the stock market at the beginning of the great society was going towards a thousand. everyone assumed it would rise past a thousand, an american birthright, an ever rising stock market, and it didn't for a half a generation. so that's the kind of cost you have when you have a giant government program. you can't assume growth or that there's money there to pay for it. charles: right. i encourage everyone to read "the great society". it is a fantastic book. a cautionary tale. we should all read it before we go to the voting booth. thank you very much. >> thank you. charles: appreciate it. heading into the final hour of trading on the record day. can a cp effect help this market? it normally does. of course don't miss the fox
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business investing in you special, live audience show, january 22nd, 2:00 p.m., hosted by me. you can go right now to foxbusiness.com if you want to be a part of it. i want you to be a part of it. listening and observing are critical skills for scientists at 3m. one of the products i helped develop was a softer, more secure diaper closure. as a mom, i knew it had to work. there were babies involved... and they weren't saying much. i envisioned what it's like for babies to have diapers around them. that's what we do at 3m, we listen to people, even those who don't have a voice. at the end of the day, we are people helping people.
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charles: stocks hitting major milestones earlier in the session. the dow crossed 29,000, nasdaq hitting 9200, first time ever. we're looking ahead, of course, some big headlines next week, including the signing of phase one, the china trade deal on wednesday. want to bring in kingsview wealth management cio scott martin along with chief investment strategist rob luna. let me start with you, rob. today it feels like sort of a quiet day in a very wild week. we have been up and down, we had a geopolitical scare, we got the jobs report, we got a lot of
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things out of the way. looking ahead now, what do you see for next week in terms of the market? >> yeah. i mean, coming into this year, charles, when you compare it to last year, we had that huge discount off the december selloff, markets right here are trading above their five-year average. there's no great bargains out there. i think as an investor, i wouldn't go head-first into the market right here. i think you have to pick your spots, look at the individual stocks that are trading at a discount, that are going to be able to grow top line but i think it's time for a little bit of caution. i'm kind of pulling in my bullish horns and we are being much more selective where we deploy capital for investors. charles: i know a lot of people are saying that, it's easy to say on a day like today but we see almost every session when it starts to turn around, you know, we blink and we are up 200, 300 dow points. it's tough to walk away from this market and it's tough not to ride the winners. >> yeah. the algos love those days. that's why you see such a balance so quickly. i agree with rob, too. you know, i think the market is
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getting a little extended here. i think complacency, when these geopolitical issues calm down, complacency gets high. people get away from thinking about maybe proper asset allocation, meaning there's other things in the world that you need to own besides just growth stocks. for us, the way that i would maybe play it out, you have my favorite, gold. you have gld, iau, one of the etfs out there. you don't have to buy gold stocks but buy the metal because those are things that will hang in your portfolio when stocks don't. charles: i know what i'm liking this week, transpos. i love the rails, the truckers, but especially the rails. they're looking pretty good. again, thisesat's a non-tech ar but it's hard to tell people not to be in this market or try to predict when we may be hitting the top here. >> yeah, no, i agree. that's it. you are looking, i was saying, we were trading above the five-year average on the s&p. that being said, the ten-year is only about 1.7%.
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so that's got to be factored in there and the alternatives where to deploy capital right now, there's not that many places. to scott's point, i think you can look outside of the u.s. borders, too. the foreign markets have not done nearly as well as what we have seen in the u.s. and there are a lot of companies that are getting their revenue outside of foreign markets that are domiciled there, so i think investors should start paying attention to where some of the opportunities are globally as well. charles: it's tough, though. listen, emerging markets, they have underperformed maybe because those economies have underperformed. scott, here's the thing. you got for the most part, you still have these big names, momentum names, they're hot. they are sizzling. they have been getting upgrades every day while there's apple, amazon, alphabet. on the other end of the spectrum, you have broken ipos which all of a sudden are coming off pretty strong, just in the last two days, for instance, beyond meat. there's opportunities but it feels like they are getting thinner and thinner, more selective. >> yeah. and those are fun to watch, the beyond meats of the world, uber, slack, pinterest, i mean, those
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to me are more trading opportunities than they are more long-term investment opportunities like the names you mentioned. but you're right, it's crazy how some of these names have really started to pop. gosh, even stuff like baidu is now 140. baba is going crazy. workday, service now. a lot of these names have gone absolutely nuts. i think something rob mentioned earlier he's right about, a lot of these names sitting at some of these all time highs or close to, you can't jump on them but stuff like -- i will throw one that's obscure out to you, casey's general store, big gas station chain, big pizza chain if you can believe it, like top six in the country, their pizza is good, by the way, that got nailed about eight weeks ago, six weeks ago and started to come back. got to look for names like that, especially going into earnings here. watch for names where the market overreacts on the down side, strong balance sheet, strong fundamentals. those stocks will recover. charles: we like it when the market bros show caution. this is like two wild partying
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guys. every now and then you get a little cautious about this thing. scott, rob, thank you both very much. appreciate it, guys. right now, dow is down 86. s&p waffling back and forth. nasdaq slightly higher. the last hour of trading is always fireworks. liz claman, hand it over to you. liz: we say it all the time. it's not how the markets open, it's how they close. charles: exactly. liz: well, it only took 37 trading days for the dow to sprint from 28,000 to 29,000. it hit the magical mark at exactly 10:05 a.m. eastern time as stocks hit fresh all-time intraday records but now, we are really going to need to see a final hour scramble to close there, as we head into this final 59 minutes of trade. the dow is down, we have seen a reversal, down 87 points. the s&p down 3, the nasdaq losing 5. a day after team trump hacked away at red tape to ease the rebuilding of america's crumbling infrastructure, one 2020 candidate has rolled out an

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