lou dobbs is next, right here. >> good evening, breaking news, 6 police officers in philadelphia, shot, this afternoon. all of them suffering nonlife-threatening injuries during a narcotics standoff. and today a trillion dollar sell-off on wall street. wall street firms, leftist national media talking down the trump stock market, and the trump economy today. is their focus is 2020. and putting a radical dimm in the white house. and investors, elated yesterday when president chose to delay more tariffs on about half of china's exports. why did the stock market plunge

today? we'll take it up. much of the leftist media and business press were a-- agog overs inversion of the yield curb. today, they seems declaring a recession in immediate offing despite more than 70s% of country biggest companies quarterly earnings, higher than wall street has been expecting. and revenue of the companies in s&p up almost 5% over a year ago. so what is the problem? the market sole off, and sole -- sold off, and sold off big, with us, jackie deangeles, what a day. >> it was, the worst steepest sell-off of the year. we have seen a lot of volatility in august. lou: as is customary. but not with this wide of a band, this is something new. >> yes, this is uncertainty,

uncertainty over trade, worries about what is happening in other economies, in europe and asia and china specifically, weak data coming out of china. also out of germany starting this fear mongering happening -- >> contraction of the economy in germany. >> yeah. and speculation they will cause something that was compounded by inversion of yield curve. lou: as i like at numbers today had, i am scratching my head, inversion of the yield curve, you look along that curve, you saw a considerable shifts, during the course was day. and at the end of the day, so-called end of the day. it was pretty flat. >> right. that is the thing, this could be an inverted yield curve if it stayed for a prolonged period of time, it might be a signal of a

recession, but sessions -- they condon't typically come for 22 o 24 months after. lou: right now as we sit here and talk about it, it not inverted. it is within a few basis points of being that this is a misterrous attitude on wall street, business press and always visible in leftist national media. there seems to be an aggregate of interest in driving market down whether through the professionals talking about recession, seeing earnings slipping. point of fact we've seen most of the companies and s&p beating all of wall street's targets. we're looking at strong growth in this economy. low unemployment. and just what do you think they

could possibly be anticipating. by the way, trade, trade with china, that is results so far in tariffs of about 25 billion dollars since last year, it amounts to .11% of this massive economy of ours. that is robust, and still growing strong. >> it is one piece of the steery the trade side, but fundamentals here in united states are strong strong, that is why capital is coming here and inrate and in id 10 year yel10-year yield go dow. we have low unemployment. wage growth, this is not the picture of what i recession looks like. lou: no television broadcast should be talking about fractional numbers that we're about to show our odd yens, but-

audience, our audience will endure by boring note on the numbers, 90 day at 1.96, two year 1.5 it's, 10 year 1.59. with the except uno exception oe are looking at a smoothing of the curve, the 90 day as you suggested coulding transitory or a problem. >> yeah, it is something to think about. there were a couple other data points today -- >> excuse me, normally, the 90 day is not considered in the calculus of the yield curve for the purpose of divining what the market will do over the course and the economy over the course of the next year and a half. >> i should point out that inversion that happened today is first inversion since since --e

2007. and that started talk about consumer and parade, are consumers going to pullback and tighten? are tariffs going to have an impact. some of them are find for conversation, by right now they are just speculation, they are not elements in play in the economy where it stands tomorrow. lou: tomorrow, we've seen some pattern of two day negative results on the street. do you top divine what will happen tomorrow. >> i can't. but you know we can talk about another aspect of this, which is alga riisal -- algorithm tradin. that is why these swings that we've seen in august have been pronounced and pendulum goes either way so quickly. >> you don't think that any of these firms that have been talking down the market who are -- well seemingly somewhat

skeptical yo president trump, yu don't think they are barging bae banking their book on the play. >> it is possible, anything is possible, a lot of traders tell me when volatility is high, that is best time for them, they can make moves in the market. there volatility. lou: they are shaking and rattling right now, volatile they have a lot. jooky thanjackie thank you. >> thank you. lou: state department today backing the demonstrations in hong kong, protesters there, the u.s. government urging beijing to respect the territor's autonomy. and new imaging shows chinese military presence here hong kong border, as we've been reporting for days, susan lee is in hong kong with the latest. reporter: good evening.

we have daylight breaking here on a new day. we heard from state department urging caution and concern, in terms of military troop build up here in shi. >> a court injunction said amass in a -- part of the district across harbor here, high were met by riot police and tear gas. after police say was provocation from the protesters who were beaming laser beams at police, after the hong kong airport reopening. trying to catch up on flights that have been canceled over last few days, thousands of parents stranded. -- passengers stranded. and hong kong this is the eighth

busiest airport. they handle around 1100 cargo and passenger flights a day. this tweet we got from the president, in relation to hong kong and his concerns. what he said china might do, president trump said i know president xi of china, he is a great leader with respect of his tough people, he is a good man in a tough business, i have zero doubt in president xi want to quickly and humanely solve the hong kong problem, he would do it. personal meeting? question mark. lou: a positive development, opens of hodg hong kong airport. is the expectation that there will be some diminish am of the demonstrations today? reporter: i would say it is about who is winning the hearts and minds of the local

population here. you know we saw protests, really break out scuffles, and violent protests, the fights that broke out across the images on cable tv news yesterday, a lot of people point the finger at protesters, saying they are causing this violence, and escalating the protest. i think it is about winning hearts and minds. lou: i think we should point out that there are considerable number of charges that those some of those were activists, that are chinese paramilitary in civilian clothing. and trying to create more trouble. we'll find the truth of it. susan lee thank you. from hong kong. lou: breaking news, 6 philadelphia police officers that afternoon shot, all of them suffering nonlife-threatening injuries, they were initially

responding to narcotics drug dealing when th at least 1 gunmn opened fire on them, that suspect is still hiding in a house. it is a standoff. and refusing to talk with police or their negotiators. the neighborhood itself is as you would expect on lockdown. police securing the air, this is the first time this year that pose officers in fill -- that police officers in philadelphia have been shot in the line of duty, we'll update you if there are any major developments, in this story, we'll update you on the very latest from philadelphia. >> up next, what the fbi is calling targeted tax. targeted attacks, against immigration and customs enforcement facilities in texas. the halfhearted responses from one of the dhs officials who just happens to lead the 2k4-79. department. >> white house talking gun control with congress as 2020

presidential hopefuls, the radical dimms keep moving toward an al all out ban, one talking e san dieg--come

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confiscation. lou: the fbi is investigating two separate shootings at immigration and customs enforcement facility in san antonio. no one was hurt. but federal agencies are treating this as a targeted attack. acting dhs secretary, kevin mcleanan had this tepid response to his agents being shot at. >> environment we're demonizing law enforcement for doing their job, and enforcing the law in the books is concerning it can result in people taking action that are not supported by the facts, not in response to anything inappropriate that men and women of i.c.e. are doing, i think we have to tone it down. lou: we, we have to tone it down, not the radical left.

he could hardly have been more mouse like in my opinion. they must be thrilled at their leading. and declaring to tone it down, do we, go out and make sure that criminals are apprehended and arrested. who would fire on government agencies and illegal immigrants, men, women and children in their custody, you were those? left claims they care about th them. th>> a scare proposal today from one of 2020 dem hopefuls, chris

kirsten gillibrand said she supports a mandatory assault weapon buyback program and would criminally prosecute anyone who refuses to give back their guns. >> you don't' people to retain them. the point is, you don't want people using assault weapons, so the point is that if you are arrested, for using an assault weapon, you will have an -- aggravated felony. lou: he has it figured out, and speaking truth of radical left, they are not interested in a discussion about back ground check, they really' your weapons, she was saying, kirstn gillibrand. they want to confiscate our weapons. and i -- whoever is advises this

president about compromising with radical dimms. , you know, you need to get your head straight. because this is just nuts, and a bad political idea. this all comes amid a number of reports that white house legislative affairs director, is actually talking with staffers of senators pat tumi, and joe mansion and chris murphy about possibility of expanding background check for gun purchases, i wonder where that might be. some of president's misguided advisers appear to be 34urb pusg president to roll back the second amendment. ed -- who would be in direct competition with american workers. and this even as american business right now, is rapidly increasingly use robotics articial intelligence will result in elimination of massive numbers of american jobs.

to take that and more up former reagan white house political director, fox business analyst, ed rollins. >> nice to be with you. lou: good to have you here, i am stunned. at gillibrand, radical dimm who would want our guns. >> she was not so radical when she was a member of congress in upstate new york, before she was appointed to senate she was a big gun advocate at that point, it will not matter, she is not a viable candidate for president. lou: she is speaking out for the radical dimms, i believe sesays what most of them are thinking. >> she is a bad vote, and we have to make sure she pays for that when she runs again. reality, talking about white house staff, this is now a group of young people who never had experience in life or politics. >> political office. >> of -- >> let's put up the folks who run that effort.

if we got that let's talk about legislative affairs then. you got that? this is -- i get to test my patience. and i apologize to you and appreciate you exercising your patience with us, thank you. here former chief of staff to bill fries. he worked for lobbies fund of -- one of biggest ever. you are thrilled in. >> here is the difference, i was in white house. the lobby firm was served in ford administration, nixon administration, tremendous credentials, two years before he became head. reality now have you a bunch of young people who are all about the hill. they are not about the president or president's program, they are trying to please everyone on the

hill. the political shop, and again even comparison what i first joined white house, this like is national football league there are no walk ons be you are the best or you're not here, my staff, atwater who became the rnc chairman, and barber who ran for senate became governor of mississippi, daniels governor of indiana. >> one strong team. >> and i had andy carr, chief of staff at white house, and bill lacy he ran a congressional committee, his strong veterans who were there to serveet president. lou: so when of these folks do you believe, it may be beyoung thiyondthis group -- beyond this group, but someone is pushing this president to embrace the idea of gun control, he ran against to embrace idea of expanding h-1b program that is absolutely, an threat call to

his hire american, and buy american motto. >> problem, again, they are washington ownians. lou: i don't care what they are, who are they. >> they are a -- minor players, now they have the big title in white house, they are young, they can't push back. lou: hell, surely they listen to president of united states and what he ran othis is looking like a pivot on part of the president. >> i don't think so. lou: you don't think it a pivot. >> i don't think they know what president ran off. >> thane this are dappe -- thend idiots. >> that is reality. lou: where the hell is chief of staff, where is mulvaney, he is missing from public view. if this is his handiwork. >> you think a guy like axelrod or karl rove, they were with reagan, and obama. lou: they knew the agenda. >> their job was -- >> wait, wait, you are not

really seriously tonight suggesting they don't know they're basically undercutting the president of united states, they don't watch television, they don't read a comic book, come on? >> i would argue they are getting a lot of feedback from the hill, this is what -- >> they are working for the hill not the president? >> for the establishment, republican establishment, democrat establishment. washington, d.c. lou: you mean rinos, globalist elites. >> absolutely. >> the people this president ran against. >> a mind set so. lou: and forgot know man and fod woman. >> theyment to make the want toe president do the right thing that is what their attitude is, the right thing is to -- what he ran on. from my perspective what president promised the voter. lou: they are not doing the right thing. >> as far as hill.

lou: ar are -- what are you doi? being sensitive to the establishment, i have to watch you. >> i'm not -- i'm not taking their side, i'm explaining what i think. lou: you call what they calling for the right thing? >>, i have to tell -- >> their read of the right thing. lou: the hell with with their ideas. >> my point is, we shut down political office and ran politics out of campaign. lou: i'm not sure the campaign is any brighter, a data guy, brad, smart guy, very effective in 2016, this is about politics, sports fans, i don't know what the hell is advis advising this president? is it mulvaney, that is another grand idea. >> both things part time. melissa.lou: yeah, well. commenccommensurate to his tale.

>> they have a long, hard way to go, they are not up to league yet. lou: i want you to console me just a little bit. you tell me that these advisers -- >> my observation. lou: i understand that, but your opinion carries a lot of weight with me. >> his instirnl instincts that s forward, i don't see that any in there, nobody about gun control -- >> let's look, i am told we have graphic of political office. bryan jack, graduated college in 2010. in is your atwater. and alicia claus in 2016. >> they experience republican national committee soar something like that. >> ashley, director of external

relations, a 2015er. >> right. lou: oh, my god. >> that is the problem, back to point, this is a place you could have the best, you should have the best. >> what in -- the -- >> mulvaney. what are you doing? what are you doing? >> that is a problem. lou: ed rollins. >> everyone they hire comes out of congress, either members or go find best talent and help this president. lou: thank you for cheering me up, ed. >> thank you. lou: thank you so much. >> update, coming up next on shooting of 6 police officers, in philadelphia. also, what is being done to combat crime in america's inner-cities, take that up with secretary of housing and urban development dr. den ben carson with me tonight. stay with us, we'll be right back. hi, i'm the big see.

hey, look at this beautiful couple. not a couple. i knew as soon as i said that, i was like don't say it, don't assume. did you know more than 2 people die from skin cancer every hour? oh man. it's a bummer. but the good news is, skin cancer is the cancer you can see, so you can go get checked. you can check each other regularly. make it romantic. turns out i'm a matchmaking mirror. you're welcome! love might be in the air. lou: we'll talk with dr. ben

carson secretary of hud in a moment, we'll talk with a terrific panel of experts on about what is doing on in the markets, and prospects on this economy and what is leading these developments. and volatility. and concern about recession, we're monitoring new developments, in the shooting of 6 police officers in philadelphia, david lee miller with the latest. reporter: standoff continues in philadelphia, this is an on going situation. we're told that one of the suspects continues to fire. the police deputy tweeting out suspect still firing, and urging residents to avoid the area, stark sayaway. 6 police officers have been shot, are treated in area hospitals with non-life-threatening injuries,

additional officers for non-gun-shot related injuries that was caused by a car accident. and they report three suspects are in custody. one officer is pinned in a bedroom with two suspects that are handcuffed. and a massive police responses on the ground in nicetown neighborhood, the shooter is live streaming what is happening on facebook. emergency call came in 4:30, a narcotic call, police flooded the scene, then the shootout began, there are reports that hundreds of shots were fired from the home, numerous agents stoppedded to assist. president has been briefed and continues to monitor the situation as does justice department and attorney general. we're also told that the fbi has a s.w.a.t. team on the scene.

but right now they are not -- have not been called in, but they are there if needed. lou: the police department has done an amazing job to secure that area. this is now a three-hour ordeal. which the suspects, do we know how many is there any suggestion of how many people are firing shots? reporter: that is not clear, a report that one individual was taken in handcuffs. that is being reported by local media. this is the third hour we're in. at this shooting. and question i'm sure on minds of many is how much ammunition do the shooters have in the home. lou: david thank you so much appreciate it. david lee miller. >> up next, left wing national media unhinged response to today's market sell-off. >> also a new report by the

spying threat posed by huawei. turns out that huawei is associated with communist china. and the people's liberation army. and there is a some intelligence component as well. how much? we'll have that and much more right after this quick break. stay with us. great riches will find you when liberty mutual customizes your car insurance, so you only pay for what you need. wow. thanks, zoltar. how can i ever repay you? maybe you could free zoltar? thanks, lady. taxi! only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

lou: joining us tonight, secretary of housing and urban develop, former candidate for

president as well, dr. ben carson, great to have you with us, if i may call you doctor instead of secretary, i'll give all honorifics in. >> no problem. lou: good to see you, start with this new program for loans on condominiums. and its importance in your judgment, to what you are doing what you are doing for the american people. >> well we were happy to make this announcement today and publish in federal register hud will now be endorsing through the fha . mortgage loans for single condominium units. >> previously it would have to be a whole condominium. you could not get a single unit. unless the whole unit was approved. there are 150 thousand condo units across the country, this

will expand ability of people to get into a housing market at a low price level. this is important, affordable housing is a critical issue right now. and counsel was impaneled by an economy order by president a couple of months ago. >> that wonderful news, immediately concern talking about 3. 5% down. and fha backing these loans and the wags are talking about souped -- this soups like 2 show2007and 08. >> back 37 then. they said we have to get people into homes. they did inappropriate things to get people into houses.

you put a person in a house they can't afford, you are not doing them any favors. lou: you are sure doing the bank a favor. >> unfortunately, we're not going to lit that happen during this administration. lou: good to know, it sounds like a terrific program. at same time mortgage debt top p topping levels of two,00 -- 200. therefore, it is a good sign it is rising, is that correct? >> it is a supply and demand issue. this is rising, there are more people who are actually able to get into the market because of the job market being so good. we have 7 million jobs available and 6 million people looking for jobs. that does not take into account people who dropped out of the

job market. there are a lot of perverse incentives that government has put in place over a long period of time, they have to be removed much we have to look at the problems in a holistic manner, federal, state, local, nonprove is, faith-base working together. lou: with a new seconds to go. dr. carson, your sense of the he'll owhile -- health of overal housing market, more renters than buyers in trend at least? >> the market would be a lot healthier if we get some of the regulations out of the way so we could use incredible technologies that have been realized in the last few years. affordable housing is something we can do. but the regulatory barriers prevent it from happening.

you have pattern one month housing starts up next they are down. i get a chuckle when i look at excitement you know, in the housing community, oh, the sky is falling, or everything is wonderful. you know it is going to continue to be that way, it is never a straight line? next thing, i know the stoke markets -- >> stock markets. >> oh, boy. lou: they will be -- well, they will be rollercoastering along. dr. ben carson. >> thank yo thank you, lou. lou: secretary of housing and urban development. up next more on the markets big sell-off

lou: like to update you on the breaking story out of philadelphia. the officers shot. police commissioner saying that two of the officer are trapped in a house where the shootout began. this is been going on for over 3 hours. there is no word yet on their condition. we were initially told that there were no life-threatening injuries to any of the 6 police officers who have been shot. as best we know, the number is

6. they were responding to a drug deal when at least one gunman opened fire on them. that suspect is refusing to talk to police. we are also lead to believe there may be other suspects firing their weapons in the neighborhood that has been locked down. the neighborhood, on lockdown, police secured that area, we'll update when you we learn more about this shootout in which 6 police officers have been shot, we're told that there are no life-threatening injuries apt this -- at this hour, joining us to talk about the news of the day, the major markets sell-off on wall street bill lee, chief economist at milliken institute, mark grant. and aaron gibbs. good to have you with us. aaron, we start with you, this

is a trillion dollar day. going all the wang wei. >> yeah, and in end it did feel like it was much to do about nothing. the inversion was short lived. and this was really about investors panicking. the fears and somewhat maybe, i want to say not over blown but when you really look at what kind of indicator an inverted yield curve it, usually a recession two years in advance, we're worried 'something that might happen two years from now. and markets, the u.s. equity markets can go up for some time, it feels like, low trading volume day, and people just over reacted a little bit. lou: and mark. we're talking about as erin said, a transitory moment, we don't know if will be extended to an actual inversion of the yele curve -- yield curve, and

yesterday there was such relief half of tariffs to be imposed on september 1 have been deferred by the administration to december, today it is a new deal. we're talking about the yield curve, that seems to override the while and strength of the -- health and strength of the economy, other markets. your thoughts. >> my thought on yield curve is that people are making the wrong assumption, period. truth that fed has never bought treasury bills since 2008, and 09, biggest player, biggest buyer has not been in the short space which is distorted the curve. number two, issues with china are a "game of thrones," we talk about it like a trade dispute, it partially is, but this is just for power and control in the world, then you also saw major issue, with germany, the most important country in

europe. their economy went into contraction today, then have you 15.9 trillion in negative yielding debt. lou: and this country, we have plenty of debt, bill. we have plenty of deficits and stimulus, we have a fed that , we're lead to believe will cut rates. and listen to president's taking a long time but they might. >> today's actions in market represent mindless programmatic trading that got it wrong, foreign buyers are buying up u.s. lump data like crazy, negative yield means entrepreneur and investor have no confidence that anywhere el in world to invest your money get positive returns, here in united states, productivity is

high, and capital can be used. ustead -- instead the market treating this inversion like any other inversion, and work. y talk of us in market there is a bowli bowl, inversion, everyos buying our assets because it is a good investment, i think that is a mistake. -- 9 day to on nine-->> fed haso okay just monetary policy stan stance. fed has always been missing in action in a bold statement. lou: had better focus on u.s. and not the globe. listening to the president my not be a bad idea. erin, your thoughts a lot of

people at home watching there 401(k)s. >> i want to just really to reassure investors, long-term, you are better off in market, we have good growth over the next 12 to 18 months on u.s. corporations. this not the time to panic, i would not call this the bottom, stay calm. the sky is not falling. lou: mark? >> my thoughts are that the fed absolutely has to do something. it has nothing to do with the president. you know the -- fed was created by federal reserve act in 1913. i think it is right of any president, republican or democrat, senator, congressman, to say they don't think that the fed is acting appropriately, the fed has been put in the corner by the ecb, and fed has to respond by lowering rates. >> bill. >> make a statement at jackson

hall, tell everyone. we're there and we'll do whatever it takes to back up u.s. growth, that will calm the markets and not commit him to anything, he has other tools to use, operation twist and using plan sheet in order. lou: bill lee, mark grand ander ierin gibs. >> thank you, lou. lou: stay with us, we're cominin

lou: joining us tonight, the senior policy analyst for the independent women's forum. april ryan having having a journalist removed from her speech. she was the freedom of speech award winner. >> she is a white house correspondent for an urban radio network. she is often one of those people who loves to call the * or the press secretary to the mat in a very belligerent way. she probably doesn't want to be held accountable for whatever she was going to say. lou: it's usually the reason no matter who they are. to keep our limits from their doors or keep our ears away. the idea that louisiana has

mandated in god we trust in public schools. that's got to throw you and everyone in the country. > >> it thrills me it's important young people understand our motto and understand the underpinnings -- the underpinnings much why we adopted. adopted. lou: i hope it goes national as i know you do as well. what a great decision in louisiana. that it for us. we thank you for being with us. congressman sean duffy joins us tomorrow. we hope you will as well. thanks for being with us as

well. good night from new york. lauren: it is 5:00 a.m. here are your top stories at this hour. investors breathing a sigh of relief as markets make a comeback from the worst selloff of the year, after pointing the finger at the fed, president trump could be extending an olive branch to another market disrupter and that is china. cheryl: as the 2020 race is tightening up, why democrats may not want to bank on a recession to help win back the white house. lauren: jeffrey epstein's autopsy has been released and more theories are brewing as to how he died. cheryl: would you hack your own body to make your day go