 They have concerns right now about the president launching what some are calling a trade war with China But then this eclipsed it news that his lead attorney Was quitting leaving and we don't know exactly why John doubt is doing that He might have been just sort of the odd man out here But he's out and a lot of people read into that continue to read into that all sorts of awful things Whether that is necessarily the case or not Wall Street sells first Maybe starts analyzing or reassessing things later right now We're in the selling phase the Dow looking at its worst performance so far since February 8th down about 477 points right now We've got Dow Jones news wires chief editor Glenn Hall Fox businesses Charlie Gasparino and market watcher Melissa Armo Melissa as we look at this now. We're also going to be waiting to hear From the budget director is going to spell out this spending battle Which is another issue because that we might be looking at a shutdown late tomorrow night But all this came together fast, didn't it? Yeah, it's kind of the perfect storm But I really think it started in Monday Monday actually and I'm going to preface this by saying long-term a very bullish in the market But Monday was the most bearish day in 2018 for me when I look at it technically because I look at technicals and here's why because we opened we gap down We open and we sold off all day. It was just straight selling down and even that day that we had that big Let's focus on today. Yeah, you make it today. We're going to continue to sell off We're going to continue to sell off and again any sort of rumor nastiness anything just they bounce they sell We don't even need a reason the market selling off. We're not near the highs. We're coming in but again overall We're strong, but today we're going to sell off. So if you're in the market long term I don't think there's a reason to panic But if you're a year away from retirement, then maybe you should take some profit a common theme here seems to be anything That looks like the president could be in trouble even if it's way over done the markets take ahead We've been talking about this for a while. I mean usually You know at first the muller probe was not existential to the market and now it is and at least there's an algorithm That's plugged into anything muller related including John Dowd. We should point out that John down this lawyers resignation the Vicks went nuts when we're not shooting up 20 right I mean that's been happening a lot with Mueller stuff and we've been reporting that out now Why is that happening? I think the market is is sensing this is the market So I'm not saying Donald Trump is guilty the market is sensing that there is something more here And that this is not just a nothing burger. This is not You know deep state. This is that that that that Mueller has has him on something I will say one other thing though The trade stuff is another thing that's existential to this market and just look at it this way if you're a long-term investor and listen I like the fact that he's cutting taxes, but think about what they're doing They are they're engaging in protectionism. They we are we were probably going to get higher budget deficits You know because the first year of the tax cut does not produce the revenue that and so you get higher interest rates You get all that together and you got some instability in the White House and that's not much to push in other words Glenn now Dowd was the the lead personal attorney for the president. He was at locker heads with some of the other lawyers So maybe this is not worthy of even a fox alert here But but it does raise to charlis points concerns. What else don't we know, right? Yeah, there were tensions there about whether or not the president should or shouldn't give an interview with Robert Mueller And Dowd was on the other side of that thinking he shouldn't So you see that supported by a lot of other lawyers including our own degenerative Politano was it's never good for a president to do that and set himself up for something Especially one talks. Yeah, and the Trump administration also is is bolstering the legal team on his defense side So that gives reason to believe that they're preparing for a bigger fight So that could be also different a different fight. We should point out this weekend was not a very good weekend for John Dowd I know John a little bit covered him when it as a white collar attorney very famous for giving the press the finger Remember that whole thing during the Raj Raj Rotem trial he he was he was he was represented Raj on the insider training charges And lost the case John Dowd is a fighter. Okay. He's a courtroom fighter Okay, where this is interesting is that they have now hired Joe DeGenova another lawyer I know who is not necessarily a courtroom fighter, but he's a media fighter He will go on air and he will fight like hell and he will be and he's very very persuasive My guess is that the Trump Trump and his and whoever's around them advising him and it's I don't exactly know who it is They're saying that this Mueller thing has taken a turn and this is one thing you could surmise We're gonna need to go public with this and you know, here's one thing I should tell you Impeachment is not necessarily legal impeachment is political I know that I know that but think about what he's thinking if you're game-planning as a lawyer We're gonna have to sway public opinion. We get rid of a guy That's not necessarily good on TV and we bring in a really good guy on TV Joe DeGenova That's you can how much of this market's fate Melissa is built on the president and him being politically stable Well, I would since we ran up since he got elected obviously the market is like Trump But I think overall people don't like this It's just not good. I mean, it's not a good feeling He is that they don't need it's an uncertain it sell now and worry about it later because you can always buy back in So I think the market is just reacting so anything that looks and we've seen this before right? I mean we see a development the day that looks only Mueller's going after him or the Russians that there were C's Who might have been you know willing perpetrators on this market sells well Then you find out no American entity was was taken in the markets come back We've seen this again and again and again That's right. There's a lot of sort of volatility back in the markets and we were bouncing off those highs So there was some you know hesitation there But what you're seeing I think is exactly the the reflection of will this president be able to continue to champion the kind of Changes that have made the market happy so far or will the rubber meet the road? I mean listen one thing to erase this if we had a GDP print today of 3.2% anything above three this market would reverse and I think that the market is just pricing in the fears That I think you know the economy is not going to respond to the tax cuts as much We might get higher deficits higher interest rates a trade war But if the thing that cures that always for markets is better corporate earnings and better economic growth And if we get those two then this is a We're still bullish a market still an uptrend we could sell up all day today. We could sell up all week We could sell up all month. I mean the day after the year though. I know but we've been up Going very jaded There's a lot of different things going on all at once you can seize on a lot of concerns here Yeah, you've got the trade war thing that could escalate the fact that the president now has extended this intellectual property That's that's a weird one and the tech sector is the one that has been driving the bus Right, absolutely, and then it is the tech sector right now That seems to be just in and out of correction territory once again here So they're feeding on not only Facebook, but virtually everyone that's going along Amazon when last I thought that was down to almost 40 bucks It's had a great run Things can't go up in a straight line forever. I mean be realistic. Let me let me write that. Yeah You know the market is cut Amazon the biggest break in the world they say we don't care about your earnings Which aren't so great as you know But you know because your Amazon and everybody's going to you and you have all these great management and you have a great Product we cut you a break and you could trade a gazillion times earnings Okay, if we engage in a trade war that affects tech Yeah, it doesn't take much for that for that mentality among analysts and investors to turn and I'm just saying that China is a problem though. China is a problem. They've been stealing all of the instance intellectual property I'm telling you that short term the market may not like it but long term It's better for the country Do you think Amazon keeps going straight line up if we're going to get into this this match this this But so what I mean, it's still strong. So after two years Again right now we're in and out of such a loss here that I've done about four to 50 points NASDAQ 100 a good proxy for technology That's getting really clobbered today down better than 8% again The fears seem to be that all this is coming together at the worst of time So what a lot of people are selling now and asking questions later I do not and I hope I did not at the outset of the show read way too much into the John Dowd resignation Outside of saying he is a big deal. He is the president's lead personal attorney and he was Again as our guest appointed out here Very instrumental in trying to urge the president don't talk to this guy There's no upside to talking to this guy others have been back and forth within the president's legal team I'm told to at least find the parameters or which they would sit down talk to him I think even taking written questions, right? There's a lot of different ways. They could frame that and to sort of constrain the amount of the inquiry Sometimes it's like if you quit in a hop, it's one thing versus they called it a mutual agreement Oh, I mean remember this weekend was not like a great weekend for him And you know, he's really I mean, you know, he was he showed a degree of instability By basically saying the president approved it. No, he didn't yes. He did now. I know he's working for a guy That's volatile, but still, you know, he is theoretically the lead the lead attorney, but you know, I tell you there's What was really interesting about it in December I reported that Trump was telling people that he thinks the thing the model pro would be over very soon And I remember what I told what I reported I reported on Stu's show first And because you do his show because he asked me and I was ordered to do it But it's hard, but I know he's only just recently American citizen. I find that a little bit. Yeah, that's fine But you know, so I said still there's one thing we have to keep in mind and when Trump said this to people He said it to us a source of mind the source came back and said Donald be careful here because Muller will you know He may you may not be finding direct collusion But he's looking at your private business interests as well and that's where this we know whether dad was concerned The president was starting to tweet Muller by name because that that got a lot of Republican that yeah that who knows I mean, I think that dad would probably any lawyer in the in there when you were that as an investor And you and regardless of your opinion on that where this case is going That's another level of you know in your face when you start mentioning the guys investigating of his name I know but this is what got Trump. I know that I understand that but for from your perspective Did it change the game and make you think or and I'm in for more volatility here Definitely we started the year with a bang with volatility and we're it's going to continue I don't think it stops anytime soon as long as this investigation You know what traders told me I spoke to a lot of traders I said, what do you make of that because you know listen politics is the markets right now? It's in they said he sounds guilty. I'm just telling you when you start like But when you if he had nothing listen, it's a logical inference I'm not saying he is but if you're like not worrying about it Why are you tweeting in the middle of the night on this because he likes to tweet? Or he's really This is coming at the same time some Republicans are getting antsy about their Prospects for November and holding on to the House or the Senate. Um, it's looking increasingly iffy for the house And then along come this this heated and back and forth with the FBI the Justice Department Muller Then you get a trade war going which goes against it Not you know the DNA of a lot of Republicans many of whom have said, you know You're going to far Kevin Brady houseways and means chief and the architect of these tax cuts had said that a trade war risks Wiping out any of the tax cut gains. So they're getting nervous his own party is getting Well, there's some reason to be nervous in a sense Especially if you look at many of the Midwestern agricultural states They could be hit by a backlash from China and those were states that Trump carried in mostly so there's there's a little bit Do you think China then goes after though? I think soybeans That's that's what the Wall Street journalist hearing is that you know the China retaliation will be go back after soy beans I believe everything that they write come on The editor will respond in time if you're gonna slap us with penalties, we're not gonna waste too much time stop And it's not even that it's all it's that plus the fact that there are industrial states that that rely on on cheaper Raw materials like aluminum and steel you and I talked to him for many decades, right? Right Donald Trump I'm saying and and one of the things he has always said is China's a paper tiger. We're more afraid of them women. He should be They need us a lot more than we know that's weird and that it was always been as you do It's just why he is so that's right with this and he's putting it in the context of jobs. China's taking jobs Okay, that message work, but let's let's do balance sheet analysis here You raise tariffs on steel that may save some jobs in the steel manufacturer in the steel sector It could hurt jobs in in other To go Different thing they're targeting intellectual property. They're targeting To a level that we haven't seen in Investigation on it. There's real evidence that it's happening I think the really positive thing that's happening with this is that we are asserting that we're a world power The United States once again China's been doing this for so long. We're not worried about any of this other stuff Are you know you're just gonna make my hand over fists Well the technology transfer that companies are forced to do in China has been a big issue globally The only real challenge right now is that the US is going it alone. Let's say this is let's just be real clear Who's going the shots on this in the misery? It's not Larry Kudlow who just went there. It's not It's not Mnuchin. It's Peter Navarro and He's the guy if you we just need to read up on Peter Navarro to know where and to some extent Wilbur Ross to know And Peter Navarro is a long-time economist. Well, he's big on he's written books on this This is he thinks we are at economic war With China and he's convinced the president we are and we should take these Is it look playing nice and trying not to go tit for tat has gotten us in the problem Yes, he believes I think you have to factor in that the president also has been making good on every campaign promise He delivered he's out there every day trying to make sure that everybody remembers I'm doing what I said I would never trade being being this sort of trade thing that he's involved in with this these tariffs He's using it more as a blunt instrument than as a then then that's everything a threat I think you get out of control then you have to go ahead and do what you say He's creating a bargaining position perhaps though. Listen, I hope you're right this spending measure Let's say tomorrow night guys and we're gonna take a quick break here because we have to pay our bills Even though the nation apparently can't pay its do you get a sense Glenn that a Deal like this isn't worth from the people you talk to because a lot of Republicans are saying this a deal like this driving us deeper into debt And showing no fiscal austerity Is not worth it It's it's even worth a government shutdown There are a number of Republicans who are feeling that way right now And they've said so publicly that you know look and you saw the president's tweet as well about you know The giveaway for the Dems was the price to get the other things that you wanted the money for he supports it so far Yeah, that's right. So there's there's a tension in in all of that have to pass this day Shut the government down again. I don't think so. That's none of my and they won the last one against Chuck Schumer I don't know if they want to go that way. Yeah, I mean that one vote in the Senate that is the real I think for investors. I don't think the budget is a big thing I think it's we're walking into normalization a possible trade war higher deficits That's the negative the positive is the tax cuts and the less regulation Which wins out the only way you know is to corporate earnings and GDP and if the if those are good Well, then you buy and the Fed just raised its outlook so they're showing some positive Yes, yes, the very thing that concerns them higher interest rates is built on an improving economy The one thing that's important though Remember banks make more money when rates are higher people bring more deposits and they can lend more show I haven't seen that transfer effect yet. Not yet No, but I'm saying you're gonna you're not gonna have a weak market and strong banks You're gonna have when you have strong banks, you're gonna have a strong market So the banks are gonna get stronger with the rates on the rise. It's gonna help the market Which trade with protection is you like the president you like the policies you think he's safe the market roar will continue Everybody calm down. I don't know if Trump is safe or not, but I think American people are tired of this whole Mueller thing. I think it's been going on long enough They haven't found anything, you know, we're waiting to see if they found they found that Is it All right, we are waiting a couple of things we're gonna be hearing and we're a monitor of the budget director Well, then he's gonna go over the details of that 1.3 trillion dollar spending plan I think he gets us through the end of the fiscal year, right that six-month deal to sort of keep keep the government lights on here But not everyone is in love with that hill detail Why the administration is supporting it even though they they're doing so holding their nose We're also going to get more details again on what the president can outline in better than 50 some say as high $60,000 in tariffs against China. We have never taken such a sweeping move against a single country keep in mind We have been running a three hundred seventy five billion dollar deficit trade deficit against the Chinese So this would just represent a fraction of that But nevertheless it would be an opening salvo that even the French leader Macron had said that would be a mistake. I don't wait. What is French for mistake? Then this then the stake all right. We have a lot more coming up. You are watching Fox Business This program is brought to you by Burger King Mix or match two of our favorite sandwiches for just six bucks The spice is on with this one a blend of cayenne pepper and spices coats a season 100% white meat chicken filet It's the crispy juicy and new spicy crispy chicken now