Stocks plunge for second straight session

This is a rush transcript from "Your World," November 12, 2018. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST: All right, it is called session lows, my friends, stocks diving near the lows of the day.

And now the president is blaming Democrats.

Welcome, everybody. I'm Neil Cavuto. And this is "Your World."

And Fox on top of stocks down big time for a second straight session. This time, though, the Dow diving more than 600 points -- or 600 or close to it.

And the president was tweeting harassment by Democrats could cause big headaches for the stock market. And now some added worries about Apple.  The former high flyer is very close to bear market territory, or more than 20 percent from it highs, because the demand for those hot new iPhones might not be that spectacular after all.

Whether the markets are getting ahead of themselves or bracing for something even worse, anyone's guess.

Let's go to Fox Business Network's Kristina Partsinevelos, keeping track of all of it.

Hey, Kristina.

KRISTINA PARTSINEVELOS, FOX NEWS BUSINESS CORRESPONDENT: Hi, Neil.

And you're right. You're seeing accelerating losses just within the last minutes of the closing day. We saw the Dow down more than 600 points, the Nasdaq and the S&P 500 literally wiping off their gains over the last little while. You're seeing them close down over the past three business days.

Seeing it right on your screen, the Dow down 2 percent, Nasdaq 2.3 percent, the S&P 1.5 percent. But what is going on?

Let's start with financials. You had Goldman Sachs, this report coming out that there's a scandal going on with Goldman Sachs that is deepening, bribery, kickback, and the Malaysian government. And so that's weighing heavily an all financials today, as well as the continuing talks of a trade war between the United States and China.

Another big drag on the Dow is Apple. Like you mentioned, Neil, you have reports coming out from an Apple supplier that demand could possibly be weakening. And that would be specifically demand towards its iPhones.

You have many reports coming out, including J.P. Morgan issuing a statement saying that they believe the earnings report coming out will reflect lower demand. So that's weighing heavily across all technology today on the markets.

Other big movers, I wanted to mention this today because Netflix -- I use Netflix. A lot of people use Netflix. Netflix shares are down today, but part of that reason too is that the company, the CEO announced to Bloomberg within the past few business days that they are looking at different pricing schemes, that they may consider lowering prices, but it may not mean you get all the benefits.

Think of bundling and tiered pricing.

We move on. Another big mover, GE, General Electric, unfortunately has seen as stock plummet below $8. You saw it at a nine-year low. That is the worst pace in a long while. Issues with the power business, the recent dividend cut to $1, and accounting scandals.

And last but not least, we have got to talk about oil, WTI. You're seeing the price of oil fall below $59 U.S. a barrel. Three major reasons for oil falling in the bear market -- and bear market means it drops 20 percent from its most recent high -- that's because you're seeing weaker demand across the globe, pretty much paired with oversupply.

Then you have got the stronger U.S. dollar. So that makes oil more expensive for a lot of countries. And then last, but not least, the president tweeting at 1:30 p.m. Eastern time that he wants oil prices to be lower. So that's weighing on the markets as a whole.

CAVUTO: All right, Kristina, thank you very, very much.

Let's get the read on all this from market watchers Scott Shellady and Larry Glazer.

Scott, should we worry?

SCOTT SHELLADY, TJM INVESTMENTS: Well, I mean, if you're retiring tomorrow, yes, you're probably in a little bit of an uncomfortable position.

But at the end of the day, just like stocks can go up for no good reason, sometimes, they can sell-off for not that many great reasons too. So I am not that uncomfortable.

The 600 handle looks ugly, but the two and three -- two-and-a-third percentage is not that bad. And I look at a couple of things that I have done for the last 30 years. Gold is telling me that I don't have to be that worried. It's actually -- it was actually lower the last time I checked.

And you would normally see in the face Armageddon and everybody panicking a rush into gold. So the dollar is stronger because the U.S. economy is doing well. There's the -- the backdrop here in the States is very, very good.

I think the bigger question, Neil, is, can we continue to do what we're doing while the rest of the world erodes?

CAVUTO: Larry, the president was arguing in a tweet that a lot of this has to do with the unsettled nature of the Democrats and already talking about pursuing investigations, that it's adding -- I'm paraphrasing here -- to the uncertainty out there, that a lot of that was sort of baked into the cake, that they assume control of the House anyway.

But what do you make of that argument?

LARRY GLAZER, MAYFLOWER ADVISORS: Yes, look, there's some post-election digestion going on here.

And, Neil, I was starting to get the phone calls today, investors saying, I'm a little bit worried about this volatility. This isn't the happy-go- lucky, complacent, strongly bullish market that I saw in the beginning of the year. I'm concerned.

So that investor psychology is very fragile. It can spread to the general economy if we're not careful about how we treat things in Washington.  Right now, I think this is Apple taking a bite out of the market.

And, look, Apple, some of the other tech names are becoming the forbidden fruit. Those were crowded trades. We knew they were vulnerable to that.  But I think we have to be very concerned that we maintain the small business confidence that has brought us here in this market.

That's the backbone of the economy. That's what's in place. And if Washington becomes dysfunctional -- gridlock is one thing. A traffic jam in Washington is something totally different. So we got to keep this as progressive gridlock. Keep things moving. Keep the agenda on track, so that the markets can move forward and get past this.

There's no signs of recession right now. We want to keep it that way in this country.

CAVUTO: Scott, you had enlightened us earlier on FOX Business Network, which, if you don't get, you should demand, as you know.

And then one of the things you mentioned is that the bond market being close for the Veterans Day holiday, I mean, things could get a little crazy with that, but this crazy? What do you think?

SHELLADY: Well, this is 2.3 percent crazy. The 600 handle, as I say, yes, I agree, does look ugly.

But at the end of the day, you will see those bond yields come in as we open up tomorrow, because they would have traded lower today had that been the case. So I'm not too overly concerned, because you just look at a chart going back to 2016 or look at a five-year chart, we have had tremendous gains.

It's OK for stocks to go down sometimes. I mean, that's what markets do.  We just have to digest it.

(CROSSTALK)

SHELLADY: Take a look back.

CAVUTO: No, that's a very good point.

But, on Apple, I mean, it -- because it has this curse of high expectations, just the notion that it might only sell in the approaching quarter 35 million units of anything, like the iPhone, for example, is deemed a disappointment, but -- and even though it's just a forecast.

But what do you make of that and the highs sort of expectation game we play with this stuff?

SHELLADY: Well, they're the -- they're the headliner. I'm not as concerned about Apple.

But you go down the value chain, right, for all those suppliers of all the different things that are involved in making those iPhones, those are the ones that really started to be pretty volatile. And that's where I think there was some nervousness in the market.

CAVUTO: All right.

SHELLADY: And then that big bellwether, obviously, GE, that got some folks a little bit nervous.

But, boy, it's getting to a point now you're only going to lose seven bucks if you own GE, right? I mean, come on. So, at the end of the day, we just have to take a step back here and calm ourselves down a little bit and the market will take over and do what it needs to do.

(CROSSTALK)

CAVUTO: You know, Larry, Scott was mentioning earlier about the foreign markets and that concern that the rest of the globe isn't doing that well.

SHELLADY: That's right.

CAVUTO: Now, of course, we have the added tension of an approaching or continuing trade war with China, no signs that the Chinese are going to budge, but the president intimating he might up the ante by really pursuing the auto thing.

And I'm wondering whether that is factored in, or do we appreciate the magnitude of that.

GLAZER: Look, there's no doubt investors are looking at oil prices right now as the potential for a canary in the coal mine, an indication of a slowing global economy, particularly slowing issues in China.

And we know China is really suffering, not just because of trade issues, but because of domestic issues and their own agenda. But I think, if we look at oil prices, there's a silver lining to this, Neil. As we get into the holiday shopping season, nothing helps the consumer better than a decline in oil prices.

And I think that has the potential to save Christmas for so many investors...

CAVUTO: All right.

GLAZER: ... because, as rates go up, and it becomes a tax increase, oil prices coming down is a tax cut that we all need for the holidays.

CAVUTO: Gentlemen, I want to thank you both very, very much.

SHELLADY: All right.

CAVUTO: All right, now to something else that some investors actually think was playing into this market craziness, Florida.

You're looking live at the Broward County Board of Elections as a mandatory recount continues in that Florida Senate race, continues in the gubernatorial race as well.

Now, we have been seeing dueling losses today, as the Republican Governor Rick Scott, the Democratic Senator Bill Nelson continue to battle it out in court and elsewhere.

Phil Keating right now in Florida with the very, very latest.

Hey, Phil.

PHIL KEATING, FOX NEWS CORRESPONDENT: Hi, Neil.

Today, the first courtroom defeat for Republican Governor Rick Scott, whose contest with incumbent Democrat Bill Nelson is currently under the recount order, that by a state statute.

The judge ruled that Governor Scott's motion to staff state police officers inside this Broward tabulation center in order to impound all of the counting and sorting machines and ballots when they're not being used was overkill and not necessary.

But the judge did agree to add three more Broward sheriff's deputies inside just for security measures.

Taking a look back live inside the tabulation and sorting center here in Broward County. The sorting is still continuing. The recounting of the key three races in question still has yet to begin in Broward County. That is because there are three-and-a-half million pages of ballots.

All of the recount races are on page one. So elections officials are taking up to page one, making a new stack of those. And as soon as they get that stack made, perhaps by tonight or first thing in the morning, they will then begin the tabulating of all of these votes.

Meanwhile, the two Senate candidates in this race continue their verbal barbs.

(BEGIN VIDEO CLIP)

SEN. BILL NELSON, D-FLA.: One fact is that Rick Scott isn't interested in making sure every lawful vote is counted.

GOV. RICK SCOTT, R-FLA.: Bill Nelson is clearly a sore loser. He can't stand the fact that he's not going to be elected for, what, the first time in decades. And he won't -- he's -- he's just here to steal this election.

(END VIDEO CLIP)

KEATING: And in the Georgia gubernatorial race, which is also still too close to call, Democratic candidate Stacey Abrams filed a new lawsuit today, hoping to get that forced into a recall in the Georgia race.

So Thursday deadline for Florida, all 67 counties must have their recount numbers in. Some counties have already completed theirs, mostly small and rural counties. Here in Broward, lagging behind once again -- Neil.

CAVUTO: All right, thank you. By Thursday, they got to get it all done.

All right. We shall see.

In the meanwhile, new worries that the Republican majority in the Senate could shrink, as it looks like the Democratic majority in the House could get up to as many as 38 additional seats, from the roughly little more than two dozen that was thought to be the case last week at this time.

With me now, The Federalist's Emily Jashinsky, Republican pollster Lee Carter, Democratic strategist Christy Setzer.

Christy, to you.

How important is it for Democrats to contain that Senate advance, that, in other words, if we're left with the same Senate that we had last session, it would -- it would confirm the Republicans still in control, but not as much in control, right?

CHRISTY SETZER, DEMOCRATIC STRATEGIST: That's true.

I think the Democrats, however, can still be pretty excited about what happened last Tuesday, regardless of whether or not Republicans gained a seat or even two seats.

The biggest reason that we care about it, of course, is the ability of the Republican Party to confirm judgeships if they have an expanded Senate.  That's the thing that the Democrats need to be most worried about with the Senate advantage.

That said, that is one of the few dark spots of an otherwise really amazing night.

CAVUTO: All right, now, we should stretch here that the House races get ignored because it's already a given that the Democrats have seized that body here, but now maybe little bit more than earlier thought.

There are nine races that are still up in the air, Lee, last time I checked, including three in California, one in Georgia, one in New Jersey, another in Maine and New York -- two in New York, actually, one in Utah.

Now, if just five of those nine seats were to go to the Democrats, they'd have 38 seats gained in the House. That does change the dynamics a bit, doesn't it?

LEE CARTER, REPUBLICAN POLLSTER: A bit.

And I think that the Republicans need to be really honest about this. Yes, Republicans expected to lose the House and win the Senate. But what does this really mean? When you look at some of the places that the Republicans lost, this should have been a map that was very, very kind to Republicans, and yet it wasn't.

They lost in Pennsylvania, they lost in Michigan, they lost in Wisconsin.  These are places that carried Trump to victory in 2016, and they're going to need to be able to win in 2020 if they want to win it back.

I think that people sent a very clear message to Republicans that, A, they want to get health care done, and, B, they don't like the tone and the rhetoric that's coming out of the right, right now and they want something different.

So I think that Republicans really need to take this seriously right now and say, what is it the American public is telling us and how do we better serve them, so that we can win back in 2020?

CAVUTO: Yes.

If it were to somehow -- and, Emily, I will raise this with you -- call into question whether Florida could be a gimme again for Republicans in 2020 or, for that matter, Arizona, where in a worst-case scenario for Republicans would they make up that electoral vote ground?

EMILY JASHINSKY, THE FEDERALIST: I don't know.

I mean, it's going to -- they're, I guarantee, looking at the map right now because of these Senate results. I mean, we're talking about states right now -- we're talking about Georgia, we're talking about Florida, we're talking about Arizona.

Specifically, when you look at the fact that they were running progressive candidates in Andrew Gillum and Stacey Abrams -- Kyrsten Sinema ran more as a moderate -- the fact that two progressive candidates were able to do as well as they did and to get the share of the vote that they did in those particular states means that by energizing, electrifying the progressive base in those Southern states, Democrats are able to get a lot of people to the polls and pick their candidates.

And that should alarm Republicans. Look, I'm a conservative. I was happy to see the victories that we were able to get away with in tough, tough states, tough races, Missouri. Josh Hawley had a fantastic victory there.

But it's not all good news for Republicans, what we saw in the Senate. And the map was favorable to them. But the fact that some of these races were as close as they were with progressive candidates, I think that's a red flag.

CAVUTO: Christy, there were reports today that Hillary Clinton is serious about running again in 2020, her third shot at the White House. What did you think of that?

SETZER: I just -- there's no appetite for it in the Democratic Party.

The extent to which Democrats have already moved on and would be, I think, actively hostile to a third Hillary Clinton bid is one that is, I think, very much underestimated by a lot of people, Republicans, but probably also Hillary Clinton.

CAVUTO: Wow. Interesting.

All right, ladies, thank you all very, very much.

In the meantime, we are keeping track of these fires in California and now Northern and Southern California, with no hope of containing them any time soon -- more after this.

(COMMERCIAL BREAK)

CAVUTO: Thirty-one people, that's how many have been killed, at least that many, over these fires, 6,000 homes destroyed in the process, in the wake of some of the deadliest fires we have seen in California, like, ever.

FOX News correspondent Jeff Paul with the latest now from Malibu -- Jeff.

JEFF PAUL, FOX NEWS CORRESPONDENT: Yes, Neil.

And the Camp Fire, yes, being the most deadly, but today the focus is on these strong winds that have started to make their return here in Southern California. And that is not good news for firefighters who are battling at least three major wildfires across this state, the most deadly and devastating one in Northern California.

That is the Camp Fire. It's burning about 80 miles north of the town of Sacramento. The town of Paradise, California, in fact, was wiped out by this fire -- 29 people so far killed by this fire. And officials believe that number could rise, with more than 200 people accounted for.

Those who did manage to get out of the fire and who were in it say they feel lucky to be alive.

(BEGIN VIDEO CLIP)

KIM LEDOUX, SURVIVOR: It was scary trying to go through the fire when it's all around you. So, it's very scary. You got fire on the left, fire on the right, ash falling on you.

UNIDENTIFIED FEMALE: We barely got out. We barely got out. There was wall-to-wall flames, flames going underneath our car, over our car. We thought we were going to die. If we would have waited five more minutes, we wouldn't be here today. And I'm just grateful that I'm alive, you know?

(END VIDEO CLIP)

PAUL: Further south, in Los Angeles and Ventura Counties, the Woolsey Fire continues to burn here, more than 90,000 acres burning so far, and only 20 percent containment.

That fire, according to authorities, has likely claimed the lives of two people. And these strong winds that continue to move through the area are only making residents more alarmed.

We spoke with one homeowner who lives in the Malibu area, lived here for decades, never seen a fire jump over the highway over to the beach communities. And she cannot believe that she has lost everything.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: There's never been anything like this. I have never seen the devastation, carnage. Never. I -- people barely had time to get out. They left notes on their gate and let the animals out. It was devastating.

(END VIDEO CLIP)

PAUL: Neil, right now, firefighters working around the clock with little sleep, trying to get these fires contained -- back to you.

CAVUTO: Thank you, Jeff Paul, very, very much.

Meanwhile, the president may have left Europe, but he is still calling out Europe over something that became a bone of contention among other European leaders, particularly his French host -- after this.

(COMMERCIAL BREAK)

CAVUTO: All right.

In a very thinly veiled swipe at Donald Trump, French President Macron is saying nationalism is dangerous.

Of course, the president has a slightly different view of what that nationalism means in reverse. It means you're not paying your fair share of the bills that the United States has typically paid to help the world.

Kevin Corke from the White House now on a president, our president, who's not giving up -- sir.

KEVIN CORKE, FOX NEWS WHITE HOUSE CORRESPONDENT: You're right on the money as far as that is concerned.

Let me just say this. Fair trade equals fair treatment. And that also means, Neil, fair contributions to NATO. That's the message from the White House following the president's trip to France.

Now, of course, we watched it unfold over the weekend, a very interesting dynamic between the president of this country and the French president.

Let me take you to Twitter and share just a bit of what Mr. Trump had to say following that trip.

He said: "Just returned from France, where much was accomplished in my meetings with world leaders. Never easy bringing up the fact that the U.S. must be treated fairly, which it hasn't, on both military and trade. We pay for large portions of other countries' military protection."

The president later adding: "Look, either pay up, or maybe it's time to protect yourselves."

Now, it was that and the president's insistence that he's a nationalist, well, that drew a stinging rebuke from the leader of France.

(BEGIN VIDEO CLIP)

EMMANUEL MACRON, FRENCH PRESIDENT (through translator): As the very opposite of the selfishness of a nation which only looks after its own interests, because patriotism is the exact opposite of nationalism.

Nationalism is a betrayal of patriotism by saying our interests first. Who cares about the others?

(END VIDEO CLIP)

CORKE: So, there you see the stark contrast between a nationalist, if you will, perspective and a globalist perspective.

And I'm using nationalist to describe this idea of promoting your nation.  I'm not taking it beyond that, in case somebody wants to write me on Twitter.

And, by the way, Macron, by the way, said this, Neil. He said this, it may be time to build an E.U. army to protect the E.U. against Russia, China and the U.S.

And considering the trillions we have spent protecting Europe over the past many decades, that didn't sit very well here at the White House -- Neil.

CAVUTO: So he has the money for that, apparently. He doesn't have the money to pitch in on NATO.

CORKE: To pay NATO.

CAVUTO: Right.

CORKE: Right.

CAVUTO: All right. Well, I will get in trouble now. All right, Kevin, thank you very, very much, Kevin Corke at the White House.

Let's talk Christian Whiton on all of this, the former senior State Department adviser for President Trump and President George W. Bush.

On this, President Trump has a valid point, does he not? This notion that, yes, it's one thing for you to criticize nationalism, but say what you will of this country and our approach, that nationalism, or whatever you want to call it, has saved your heinie a number of times, and saved this global community.

CHRISTIAN WHITON, FORMER U.S. DEPUTY SPECIAL ENVOY: Yes, this was really appalling by Macron.  The United States has bailed out France twice in the 20th century. Macron is really just cracking up here, I think. His popularity is absolutely in the toilet. It's in the 20s, a number of scandals. Like a lot of these French politicians who comes in -- come in under the banner of reform, the reforms seem awfully elusive.

His economy is growing at 1.6 percent. It's anemic. That's half of the growth that we have. And, also, he's just flat-out wrong. Nationalism and patriotism, I mean, maybe it's different in the French language, but in English, those two things are synonyms.

You can't have sort of the patriotism and love of country without love of the nation state via nationalism.

CAVUTO: And, by the way, the French are -- are leaders in that. And that's fine. They love their country. They love -- they love everything about their -- and that's fine. They should.

But the fact of the matter is that, when pushes come to shove, and they have wanted that protected, the United States has been there to do just that. So what is so nationalistic or so territorial about the United States saying, all right, could we share the wealth here and the burden, that you talk a good game, now pay up, to prove you mean it, that the world order means something to you?

WHITON: Right.

And I think that's what Macron is rebelling against, just this idea that, frankly, we want some changes to the way things are done. France does a little better than Germany. Germany pays 1.2 percent of its GDP on defense. France is at 1.8, but this is well below the 2 percent that NATO has promised itself to spend on...

CAVUTO: Have those numbers moved, though, Christian?

I mean, the president's bemoaned this for some time. His predecessor did.  Barack Obama's predecessor did. And it's always, like, grudging to get the extra dough out of them. Go ahead.

WHITON: Right. And the 2 percent is a pretty low benchmark. If they really think that Russia is the threat that they're telling us, they want us to make sacrifices that they're unwilling to make.

There's another thing going on here, though. I think Macron within the E.U. is under a lot of pressure. Frankly, Germany is willing to cut a deal on the trade changes that Trump wants to lower tariffs across the board.

But what we need is the French to agree to agricultural reform. And they seem unwilling to do that. They're being pressured within the E.U., unwilling to give on that so far.

So there's the combination of things. Macron and doesn't like that. He doesn't like the pressure. He doesn't like having to spend more on the military. He doesn't like the fact that Italy is, along with Britain, sort of peeling away from the E.U., not quite as directly yet, Eastern Europe not as kosher on the E.U.

So a lot of these things just aren't going the way that this former investment banker would like them to go.

CAVUTO: Yes, if you're going to pursue a new world order, where we all look after each other, part of that means paying up. You can call it nationalistic or just not being cheap. I don't know.

Thank you, Christian. Good seeing you, the former State Department senior adviser.

WHITON: Thanks, Neil.

CAVUTO: All right, less than a week after the midterms, right, and now, now the investigation and the hunt for even more investigations is heating up -- why the leadership is worried.

(COMMERCIAL BREAK)

CAVUTO: All right, well, they don't have the gavel yet, but they do have the hearings planned.

What Democrats want to do, but not all Democrats. I want you to listen to one who came from Staten Island and shocked the world who has different ideas -- after this.

(COMMERCIAL BREAK)

CAVUTO: All right, let the investigations began. That's the read we're hearing from top Democrats as they get prepared to take over the House.

The USA Today's Eliza Collins with more on that.

Eliza, what are we hearing? What do they want to do?

ELIZA COLLINS, USA TODAY: Well, each different committee will now have a Democrat at the top. And they'd all like to begin investigating the president, the administration.

We know that there will be requests for his taxes. Last week, Wall Street Journal had a story about hush payments for a woman who alleged to have an affair with the president. They want to see if the president was involved.  There's all sorts of different investigations that they are looking into right now.

CAVUTO: I don't know who to believe on this. Axios reports it could run into 80, 85 investigations. The New York Times was talking about dozens.

Bottom line, there are going to be a lot of them. Is there concern? I know the leadership has been sort of downplaying the number of investigations. But if even half of those are right, that leaves little time to do anything else.

COLLINS: Right, but nothing was really going to get to done anyway, right, because we have Republicans in the Senate, Democrats in the House.

It will be two years until the presidential election. Nancy Pelosi had said she could see some bipartisanship on infrastructure and drug pricing.  The president had seemed to be interested in that, but he also made very clear that if Democrats start to investigate him, it's basically going to be war, and he will not play ball on other things.

So there's -- very well could come to a complete standstill.

CAVUTO: All right, we will watch closely. Eliza, thank you very, very much.

This guy is all of 31 years old, and he's headed to Congress. He's congressman-elect Democrat Max Rose.

The Staten Island area in New York, a very heavily Republican area, but he defied those numbers.

We're all very jealous of someone so young getting down to Washington, but very good.

Congratulations to you.

MAX ROSE, D-N.Y., CONGRESSMAN-ELECT: Thank you so much.

CAVUTO: Now, you...

ROSE: And I will be 32 pretty soon.

CAVUTO: Oh, good, good, because I have ties older than you.

(LAUGHTER)

CAVUTO: So, let me ask you a little bit about where you part company with some of your Democratic colleagues.

You -- I guess you're open to some of these investigations, but cool it on being nonstop. Is that about right?

ROSE: So, let's just talk common sense here, OK?

There's a role and a function for independent, nonpolitical investigations, and maintaining the rule of law, maintaining the fact that nobody's above the law. I don't care where you go. Americans are for that.

But I just spent more than a year knocking on thousands and thousands of doors. Never once did I open up a door and someone said, listen, I'm a self-identified Trump supporter.

No one ever said that. And someone also never said...

CAVUTO: But many are, right?

ROSE: Oh, there's plenty of Trump supporters, and there still are in my district.

But, also, no one ever said, look, I need another subpoena. I need another subpoena to help with my commuting problem or the opioid epidemic or with gun violence.

People want real problem-solving. But it's going to take two to tango here. Go back to 2011. Mitch McConnell said when the Republicans took back the House that our number one priority is to make sure that Barack Obama doesn't win another term.

That wasn't just wrong. That was un-American. And two wrongs don't make a right. We can't just think about 2020.

CAVUTO: All right, so let's talk about your Democratic colleagues who are coming in, Jerry Nadler, who is going to be running the Judiciary Committee, a host of others, Maxine Waters, who promised looking into all sorts of things, from the president's finances, to payments to women, and you name it.

Are you saying that you would be against that, or what?

ROSE: What I am saying is that we have got to do this in an independent, nonpolitical manner.

CAVUTO: What does that mean? What does that mean?

ROSE: And -- no, well, at the same time -- let me finish.

On the same hand, what we have to do is, we have to say, Mr. President, here's my infrastructure bill, here's my opioid bill.

Think back to the things that Donald Trump ran on. He ran on draining the swamp. He ran on making our roads and our bridges great again, right? He ran on fair taxation.

CAVUTO: Well, are you saying that if your colleagues, the Democrats who have come in to take over the House, pursue the investigations first, and not these matters, they're making a mistake?

ROSE: Of course. Of course I am.

We have got to chew gum and walk at the same time. If we don't do that, we are doing a disservice to the American people. That's not a Democrat talking. That's a vet and that's an American talking.

It doesn't matter what your party allegiance is. We have got to get back to putting the country first, the parties working together to solve problems.

But it's also going to take this president to do that. It's going to take the Republicans to do that too.

CAVUTO: Well, he's already signaled -- you might have heard from that last report -- that if the new Congress is all about investigations, tit for tat, he could do the same, go after them for pursuing something, and nothing gets done.

ROSE: Right.

That's totally the wrong thing to do on his end too.

CAVUTO: Right.

ROSE: We have got to stop with this brinksmanship.

Quiet coalition-building is how we're going to positively affect the American people. And that's all I care about. I don't care if I win reelection.

CAVUTO: Well, who do you want to lead you guys? You were not keen on Nancy Pelosi.

(CROSSTALK)

ROSE: Yes, I'm not a supporter of Nancy Pelosi. I'm not voting for her.

CAVUTO: So, you won't -- for her to be your leader?

ROSE: Absolutely not. I'm not -- I'm not voting for her.

CAVUTO: All right, who are you voting for?

ROSE: Well, we're waiting for someone to throw their hat in the ring.

CAVUTO: What if no one does?

ROSE: I can't -- I can't nominate myself. I assure you someone will.

Those talks are going on, I am sure. I haven't even been down to D.C.

CAVUTO: But you would be disappointed if it ends up being Nancy Pelosi?  Because she's positioned herself pretty much as the next...

ROSE: I don't think that you're the expert on this, nor do I think anyone else is. This is being figured out right now. But I can tell you...

CAVUTO: By whom? Who is figuring it out? Who is figuring it out?

(CROSSTALK)

ROSE: Well, I'm sure they are.

But this is -- here's what I can tell you.

CAVUTO: But you're right. No one else has claimed to go after her.

ROSE: No, they're not.

But I presume that they will. What I can tell you, because what I can control right now is my vote. And I am not voting for her, no if, ands or buts, under any circumstances. That's what I'm controlling right now.

CAVUTO: Are you worried that if she does get that leadership post, and she has watched this show and just what you said, you might be in the doghouse?

ROSE: Well, you just love these hypotheticals, don't you?

CAVUTO: Yes, I do.

(LAUGHTER)

ROSE: What, are you worried I'm going to become the ranking member of the bathroom cleaning committee?

(LAUGHTER)

ROSE: We will cross that bridge when we get to it, OK?

But I'm a soldier first and foremost, been in the Army over eight years.  I'm a fighter. And no matter what, I'm going to fight.

CAVUTO: But you're not worried about retribution?  ROSE: No, of course not. We're all adults here.

CAVUTO: OK.

ROSE: We're all adults. I'm going to fight for the people of Staten Island and South Brooklyn.

CAVUTO: All right, the Senate of course, there are a lot of recounts going on. It's is still going to be under Republican control no matter what.  But it's going to be as close to a 50/50 type of the deal, which maybe illustrates what Florida is all about, that this is a 50/50 nation.

How do you think the Democrats and what do you want to make sure the Democrats don't do to screw it up?

ROSE: Well, that's up to the Democrats on the Senate side.

Here's what I'm focused on. And I don't mean to be a broken record.

CAVUTO: But in the House, too, you said certain things, you shouldn't do, right?

ROSE: No, in the House, we have got to start to drill in to the things that help people.

This should be common sense, infrastructure. People are dying from overdoses. Gun violence. Kids are scared to go to school in my district, literally. People don't understand why corporate PACs and federal lobbyists are buying off politicians on both sides of the aisle.

It's why I ran, the failure of both parties. And I'm not going to start to be a blind follower of the Democratic Party when I get down to D.C.

CAVUTO: Right.

All right, congressman-elect Max Rose, he will be heading to Washington.  He's one of the youngest congressmen in there.

The only one who is younger is the female.

(CROSSTALK)

ROSE: I haven't checked, but I believe so. I believe so.

CAVUTO: All right, but you're not too bad. All right.

In the meantime, they're still counting the votes in the whole Arizona Senate battle too. Don't forget about that one. That's another one that's too close to call -- after this.

(COMMERCIAL BREAK)

CAVUTO: By the way, not just Florida.

The real tight-as-a-tick Senate race going on in Arizona, we still don't know what that one's going.

Let's get the read from Alicia Acuna the very latest data out of Phoenix.

Hey, Lisa.

ALICIA ACUNA, FOX NEWS CORRESPONDENT: Hi, Neil.

Yes, the tabulating is continuing, about 211,000 ballots yet to be counted.  Let's take a look at the latest tally here. Democrat Kyrsten Sinema leads by nearly 32,000 votes over Republican congressman Martha McSally.

In a statement, the Sinema campaign said, in part: "McSally has lost every batch of votes from Maricopa County. And to date, Kyrsten won by 6.25 percent, nearly double her overall performance in the county to date."

Now, Neil, Maricopa County is the state's largest, with 2.5 million registered voters. And it's historically Republican. And right now, the Democrat is in the lead.

The McSally campaign has not returned any calls or texts from the FOX News Channel. But on Saturday, they did release a statement. Her campaign said, "The latest release provides compelling evidence that the remaining uncounted ballots are favorable to Martha, and we will continue our effort to make sure all lawful ballots are counted."

And the verification of the signatures, or the curing of the ballots, continues. The statewide deadline for curing is 5:00 p.m. Wednesday, but the tabulating may still continue.

But, Neil, more importantly, in about two hours, we're going to get a major influx of numbers here and we will have a better update of how things are going -- Neil.

CAVUTO: All right, Alicia, thank you very, very much in Phoenix, Arizona.

All right, gaining some traction, that caravan still a long way from being here, but it is on its way here. But what's lost in the argument is how many legal immigrants become legal citizens as a result, not because of a caravan, but because of a process -- after this.

(COMMERCIAL BREAK)

CAVUTO: All right, it's halfway to the United States, and the migrant caravan is all anyone can talk about, leaving aside the fact that better than a million immigrants are becoming legal citizens in this country this year, continuing a trend that has been uninterrupted under President Trump, just as it was largely uninterrupted under President Obama and President Bush for him.

In other words, legal immigration still is alive and well, and at the tune of a net gain to this country of better than a million citizens each year, darn near every year.

Border Patrol union president Brandon Judd, though, on this caravan.

We lose sight of that, don't we, that legal immigration is just fine and working just fine? This is another matter, huh?

BRANDON JUDD, PRESIDENT, NATIONAL BORDER PATROL COUNCIL: We absolutely lose sight of that.

President Trump has never talked down about legal immigration. He's already -- he's always talked about illegal immigration and the need for border security to secure the American public, which is what the American public has a right to.

And I appreciate him for that.

CAVUTO: You know, Brandon, what is our obligation as a country to this caravan or whomever arrives ultimately at the border?

They arrived now in one area, it seems, Tijuana, but what -- can you explain the process, what we have to do, what we're obligated do?

JUDD: It depends upon how they do it.

There is a legal process. They can present themselves at ports of entry.  They can -- they can claim asylum at a port of entry, which is a legal process, which then will process them into the United States pending a credible fear claim.

But the problem is, is that the vast majority of these individuals do not do it legally. They will end -- ultimately break the law by crossing the border illegally. And then they will claim asylum once they take Border Patrol resources out of the field.

But what's really upsetting to Border Patrol agents about this is, they can accomplish this exact same thing in their own countries. If you're from Guatemala, you can go to an American Consulate and you can claim asylum there.

We're ultimately going to have to do an investigation into your claim. If you're in your country, it makes it a lot easier on our government to investigate that. But we know that what they're doing, they're -- they're crossing the border illegally because they know that, ultimately, they're going to be released, and they're not going to have to show up to their court appearances, which then puts out a warrant for their arrest and ties up the system even further.

CAVUTO: All right, we don't have a firm finger on how many don't show up.  But we have another idea that's been bandied about, that the Mexicans maybe can hold them while we're waiting for that process to be cleared.

But the Mexicans don't seem eager to do that. So then what do we do? The president had mentioned building tents or tent cities that could house a lot of these folks while they're waiting for that, because, in the end, only a small percentage of asylum seekers from any nation are ultimately brought into the country on an asylum basis.

So, what happens?

JUDD: Well, ultimately, it looks like about 20 percent of those people actually show up to their court dates, and those are only the ones that have a legitimate asylum claim.

That's -- that's the reason that 80 percent don't show up to court. We can build tent cities, we can do all those different things. The problem is, is, we have this Ninth Circuit court of appeals case, the Flores decision, which says we can only hold children in custody for 20 days.

And if you can only hold them in 20 days, we just don't -- we cannot adjudicate an asylum claim within 20 days. So, ultimately, they end up getting released into the United States under what's known as the catch- and-release program.

CAVUTO: Yes, I think the president said he just wanted to keep it to catch, no release.

We will see what happens.

(LAUGHTER)

JUDD: Yes.

CAVUTO: Brandon Judd, thank you very, very much.

JUDD: Thank you.

CAVUTO: Well, I should have known when Navy veteran and congressman-elect Dan Crenshaw showed up on my weekend show in the flesh in New York that that was a sign that maybe he was going to hop across the street and appear on "Saturday Night Live." He did.

The fallout -- after this.

(COMMERCIAL BREAK)

CAVUTO: All right, I knew something was up when Dan Crenshaw, the Navy veteran who was teased on "SNL," showed up for my weekend show, "Cavuto Live," live, in the flesh, here in New York, something was up.

Take a look.

(BEGIN VIDEO CLIP)

CAVUTO: Some of your loyal friends and backers have said, put him up on "SNL." Let him guest on the show.

(LAUGHTER)

DAN CRENSHAW, R-TEXAS CONGRESSMAN-ELECT: Yes, I should ask them about that.

CAVUTO: But you're not interested?

CRENSHAW: Hey, I don't know.

(END VIDEO CLIP)

CAVUTO: Well, I think he did know.

Take a look what happened next.

(BEGIN VIDEO CLIP, "SATURDAY NIGHT LIVE")

PETE DAVIDSON, ACTOR: I feel like it would only be fair if you got me back and made fun of a picture of me. Does that sound OK?

CRENSHAW: I don't really need to do that.

DAVIDSON: No, come on. I deserve it. Please?

CRENSHAW: All right, I will do one.

DAVIDSON: All right.

(LAUGHTER)

CRENSHAW: This is Pete Davidson. He looks like if the meth from "Breaking Bad" was a person.

(LAUGHTER)

DAVIDSON: All right. Not bad. So, there, we're even. All right.

CRENSHAW: Well, one more, because this is...

(CROSSTALK)

DAVIDSON: All right. All right.

(LAUGHTER)

CRENSHAW: He looks like a troll doll with a tapeworm.

(LAUGHTER)

CRENSHAW: He looks like Martin Short in "The Santa Clause 3."

(APPLAUSE)

(LAUGHTER)

CRENSHAW: By the way, one of these people was actually good on "SNL."

DAVIDSON: No, you're right.

(END VIDEO CLIP)

CAVUTO: All in good fun.

And if you think about it, the congressman-elect could have been very angry and sworn off and sworn at everyone associated with "SNL." He didn't do that.

Kat Timpf is joining us right now.

Kat, I think he played it brilliantly, and bygones were bygones for everyone.

KATHERINE TIMPF, FOX NEWS CONTRIBUTOR: I thought that this was just handled so wonderfully.

And I wish that if everything could only be handled this way. We had Pete Davidson being humble enough to admit that he made a mistake. And then Dan Crenshaw, he not only accepted the apology, but he accepted it with humor.  We saw civility and humor.

Those are two things that we don't see enough of these days. And you put them together. And, look, look what can happen. We can all get along.

CAVUTO: No, you're right about that.

I was thinking to myself, I don't know the last Republican who has been portrayed well on that on -- that show. But, obviously, both came through this with flying colors.

And Crenshaw, a lot of his friends, I know that, for a fact, were telling him to be appalled and angry and everything. But here's a combat veteran who lost his eye in battle in a third tour in Iraq and said, no, no, I'm not going to do that.

TIMPF: I think, with this climate now, it's just been really a lot of hostility. I think that people are almost waiting for a chance to say, oh, now I can get them. Now I can get the left, or people on the left saying, oh, now I can get the right.

And he had every opportunity to do that. And I think a lot of people would have even stood behind him if he would have decided to do that. But he said, you know what? I'm going to choose to get along instead.

And he came out looking super likable and even, like you said, to an "SNL" audience, actually, as a Republican. That's no small feat.

CAVUTO: No, it isn't.

And, Kat, I'm just reminded, though, despite the progress that seemed to be to made on a very popular late-night comedy show, the fact of the matter is, divisions are still real. You experienced it yourself, right?

TIMPF: Mm-hmm. Yes.

Over the weekend, I was at a bar, and a girl started -- she realized I worked at Fox News, started screaming at me, telling me to get out. I tried to move to a different area of the bar. She kept screaming at me, telling me to get out.

I kept trying to say, like, what did you -- what did I say that you had a problem with? Or maybe I thought it was one of my views that was so offensive. She said, it doesn't matter.

I don't think she knew a single thing that I ever said on TV. She just knew where I worked. And that was enough for me to be run out of the bar.

CAVUTO: Really?

TIMPF: Yes.

CAVUTO: Did you -- did you walk out yourself, rather than just keep it going? Or what happened?

TIMPF: I was afraid she was going to hit me or throw a drink on me.

She was super belligerent. Like I said, I tried to move to a different area of the bar. But the yelling continued. So I didn't really see as I had a choice.

CAVUTO: Man, oh, man, sorry to hear that, Kat. But we see it again and again.

And I'm just wondering, though, maybe this "SNL" back and forth is a reminder that cooler, calmer, self-effacing heads can prevail here.

TIMPF: Yes.

CAVUTO: Because that's what worked in this particular skit. And I think it reminded people you could be petty or angry, or you can just admit you goofed and move on and make amends and make friends.

TIMPF: Yes, and you can use your sense of humor as well.

A sense of humor is something that really can unite people, bring people together, and really can heal all wounds. So I'm really glad to see that that's what it looks like happened here.

CAVUTO: I fully agree with you.

Kat Timpf, thank you very, very much.

Is it coincidental or actually special that it was a veteran involved in that, a man who kept his anger to himself, after he experienced so much, and decided it wasn't worth it? That's what you really admire about veterans.

And, on this Veterans Day, that's what we as a country admire about all of you who serve this country nobly, bravely, quietly, and with great character. Thank you.

"The Five" is now.
 
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