billions and billions last year. charles: i was also going to ask you about an idea you like, but i will share mtum, you like a lot. by the way, great answers, i appreciate it. folks, we're holding in there pretty good with one hour to trade. buckle up, it's going to be fun. liz claman's next. liz: i know. and, boy, did you get a lot of attention yesterday. [laughter] you really socked it to the wall street crowd. good for you. you know, that's how you and i have always felt. yeah, absolutely. the red admit revolt -- reddit revolt reversing course just a bit. what do we mean by that? some of the heavily shorted stocks that have been propped up taking a step back and not just with investors locking in profits, but many who want to get in are now being prevented from buying. gamestop, amc. and then you've got bed bath and beyond and blackberry, they are moving lower. gamestop losing 30%, amc down

50%, bed bath and beyond down 40%. the online brokerages struggling with volume for a second straight day but now a class action lawsuit has been filed against robinhood for removing gamestop from its platform. we've got the finance chief of one of the heavily shorted companies mentioned in that reddit room that could be the next focus of the reddit rebellion. plus, the expert known as the doctor of uncertainty with a warning to both sides of the risky trades. and do the well the now have fomo now watching this all unfold? the ceo of raymond james, this is a company that just clocked record profits, is here on the best moves for retirees with money who are watching this whole red admit situation -- reddit situation play out and thinking, is there a way i should play into this? sports betting books sizzling,

just days to go until super bowl lv, the ceo of barstool sports is here in a fox business exclusive to not only reveal the bets he's seeing on brady and mahomes, but he's ready to talk about this situation of the little guys in the reddit room versus big wall street people. as we head into this final hour of trading, the markets are not only bouncing back after yesterday's selloff, they have recaptured nearly all of yesterday's losses. dow jones industrials up 488, nasdaq up 178. all right, we begin with breaking news though. the reddit room rebellion and the terrified reaction from wall street and its online brokerages could now lead to congressional hearings after retail trading platform robinhood today began restricting certain trades on reddit room darlings gamestop, amc and blackberry. democratic house financial services committee member

alexandria ocasio-cortez today is calling for hearings if necessary to find out why an individual investor is getting shut out of buying, but the big wall streeters can still throw down the money. ocasio-cortez tweeting: what robinhood did was unacceptable because hedge funds continue to trade freely. this is a serious matter, she says, committee investigators should examine freezing stock purchases in the course of potential investigations, especially those allowing sales but freezing purchases. that means the short sellers can still play, but the guys who want to go long cannot. it could become a bipartisan issue. of all people, republican senator ted cruz has tweeted he agrees with aoc. the reddit room wall street bets, this is where an army of retail traders also got shout-outs from mark cuban today who tweeted he loves how retail trading is getting an edge, and he too questioned why robinhood halted trading. robinhood is only joining schwab

and ameritrade in blocking some purchases which, in turn, appear to be hitting gamestop, amc and blackberry. gamestop down 26%, but look at a amc, down 50%. where will the reddit rebels turn next? no bailouts posting this, quote: pushing game to 1,000 not realistic. it's time to move to something else. bng foods, car parts.com, national beverage, irobot, mentions a bunch of other names, have huge short squeeze potential. car participants.com even with more than 40% of its stock shorted, shares are up nearly 24% over just the past five sessions. what are companies that find themselves caught in the maelstrom handling it and doing? we bring in parts.com senior vp of fitness ryan lockwood. also -- finance ryan lockwood,

also dr. richard smith who studies exactly these types of cycles and the risk that comes with them. ryan, i want to start with you. now, here's just some of what we found in the reddit room. here's one poster saying participants, which are car parts, looking great. okay? we can't use the word that they said, gorgeous today. positive news yesterday plus massive inflow. so what does all this online action say to you as the finance chief of a shorted company, ryan? >> so thanks for having me on. as far as these shorts go, we really try not to look at the stock price in the short interest. i think what happened to gamestop is similar to what could happen to us where in gamestop you saw people pile into the shorts, and i think the first people that got in probably had good fundamental reasons for it, but then you saw people dog pile in on the idea. so for us, you know, we focus on execution. in 2q we i grew 61%, in 3q we

ended at 71% with $58 million in cash and just got into the fastest growing auto parts remember site. so despite all this positive news coming out, we have seen our short interest on our books has stayed very elevated. so what that tells me there's still short sellers out there that are kind of more following a trend and dog piling rather than doing fundamental analysis and seeing that the company might have good fundamentals and maybe you should not be short. liz: well, yeah, exactly. but that must -- i mean, enrage, is that too strong a word? -- enrange you, because here you have an actual legitimate business where you're trying to conduct commerce. for those who don't know, you're trying to disrupt the car parts industry by going all online, so i assume you're trying to take down the napa auto parts and the advance auto parts guys who are brick and mortar. talk to me about how you feel about these individual investors who are in this reddit room saying, wait a minute, we really

want to show short feelers how un-- sellers how unfair they've been and take them down. they've actually had some success, ryan. >> yeah, i think that, you know, from the gamestop side, for example, or a lot of other places we've seen shorts historically where they can coordinate and drive a stock down and, obviously, we've been subject to that. and then, clearly, we're seeing for the first time ever retail investors able to coordinate and fight back. and it is a little bit disturbing what you mentioned just earlier where retail investors are being locked out from buying, but institutions are not. so, you know, i don't think it enrages us. again, we focus on delighting our customers, doing a good job. and i think that at some point, hopefully, regulators can come in and make sure the playing field is even for the small guys and the big guys. liz: ryan, one last thing here before we bring in dr. smith in this conversation.

have you put out any memos to the team saying just be careful about when you're selling, etc., or are you preventing any moves yourself within the stockholders of your company? >> no, our stockholders are free to do whatever they want to do. you know, we have a great supportive shareholder base, our large institutional shareholders, you know, have told us many times that they're not worried about the shorts, they believe we're the chewy of auto parts, and they're going to stay and be along for the ride. liz: dr. smith, come on in on this topic. pell out the risks on -- spell out the risks on all sides. yes, we are seeing gamestop pull back and some of the big names that have been super hot and have jumped exponentially. gamestop in the last month up 1,160%. amc, yes, it's pulling back, but it is up 169% week to date. if i'm thinking about these wall

street people, i'm thinking, you know what? little armies of tiny ants. i'm not comparing them to bugs, but they can really take down a goliath here. >> well, i think that there's certainly some very sophisticated operators in wall street bets. they certainly know a lot about the markets, they know a lot about what they're doing, and i think that, you know, wall street in many ways set this whole system up to work this way, and these guys figured out how it works, and they're turning the tables. at the same time, you know, the retail investors is who i'm particularly concerned about and who i've been involved in and an advocate for retail investing in the markets for 20 years now. and what concerns me is when i see posts on the nature of i put everything i've got into amc and nok, and i don't know how i got here.

and i think that the individual investor who's a novice, who's eve, this is an excite -- who's naive, this is an exciting room to be in. there's this us against them, so there's this insurgency there, and i think in the end people don't realize the risk that they're taking, and then you end up with a stock like amc down 50% for many people who bought in this morning. liz: okay. but i want to -- okay. so here's that. i put everything i have into amc and nokia, let's do this. that's from one person. >> right. liz: but then flip it over, this one says play safe out there, buy with cash, no margin, guys. obviously not financial adviser, but i'm just shouting out loud. this is far from over. i would hesitate to call these people day traders. they are not day traders, they are buyers. they have bought, they are at least for now holding, but

listen to what former sec chair harvey pitt told us just 48 hours ago about the big guys who could go down because of reddit. >> a serious lifeline is very probable given the amounts of money that have been invested to date. liz: i can only imagine, ryan, that -- [laughter] you're saying, gee, my heart's not bleeding for funds that go heavily short and try and bring down companies. >> yeah. i think that anyone that's not doing the work, i really, yeah, i don't have a lot of sympathy for people who try to coordinate short attacks and aren't doing the work and are more market manipulators. liz: boy, i'll tell you, this is one of the most fascinating stories i am covering, because it's still going on in my 20-plus year career covering business news, so we thank you for weighing in on this. ryan lockwood and dr. richard

smith,ing thank you very much. breaking news, we've got an eye on the white house press briefing going on right now, but we've split the screen here. take a look at health insurers cigna and anthem. they are both jumping. we've got anthem -- these are insurers, of course -- up 4.5%, cigna jumping nearly 4% on the news breaking this afternoon that president biden has just signed an executive order that expands health care access for americans. to the white house and blake burman on what, blake, is arguably one of the most important issues for voters in every election cycle. >> reporter: yeah, liz, and it was two orders the president just signed within the last hour, the first one calls on health and human services to expand the open enrollment period for the affordable care act, expand it to february 15th to may 15th, so that's an additional three potential months there. we heard from the president a little while ago saying he also want an expansion of medicaid as well, and he said it's a pretty simple idea, pretty simple reason behind his actions today.

>> basically, the best way to describe it is to undo the damage trump has done. there's nothing you can do that we're doing here other than restoring the affordable care act and restoring the medicaid to the way it was before trump became president. >> reporter: the president also rescinded the mexico city policy today which has limited federal money going to nongovernmental organizations that provide abortions. the top republican in washington, mitch mcconnell, voiced his displeasure of that e.o. on the senate floor today. >> this and many other common sense pro-life policies enjoy broad support from the american people, but the radicalism of the modern democratic party seems dug in. >> reporter: by the way, liz, on the stimulus plan front, that $1.9 trillion plan being negotiated in washington right now and pushed by the white house, the press secretary, jen psaki, said a little whiling ago that they are not planning on

sort of splitting that up into two different bills, maybe something that could be negotiated in a bipartisan fashion and other measures that democrats would go sort of on their own path to get through. there has been some discussion here in washington that maybe that could be the case, but the white house saying today that will not be the way they approach this. liz? liz: and we're also looking, blake, at the vaccine makers which are moving higher today, and this is just moving, jen sack city, the press secretary -- jen psaki just said not only will joe biden encourage undocumented immigrants to eventually, when it's their turn, to receive the vaccine to prevent the spread, but also he will revisit trump policy on cuba. thank you, blake burman, we appreciate it. the dow now up about 500 points. as critics are lashing out at this sort of casino mentality in the market, who better to bring into the discussion than the man who runs actual casinos and barstool sports book? one of the most popular sports

wagering apps in the country. penn national gaming stock up 11% right now, and it is surging over the past year on that powerhouse team-up. ceo jay snowden here in a fox business exclusive. brady or mahomes, who are his customers back ahead of the big game? what are the biggest bents he's making in 2021, and what does he think of the reddit room rebels? closing bell ringing in 45 minutes. we do have the s&p 500 and the nasdaq charging ahead at the moment, green with on this screen today. ♪ ♪

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shaping up to be the biggest online wagering event in the center's very young history. here's why. if tom brady taking his new hometown tampa bay bucs to face the kansas city chiefs and patrick mahomes, that qb is what many fans see as the future face of the game. the chiefs are currently a 3-point favorite with the over/under set at 56.5 points. here in a fox business exclusive, the man at the helm of one of the biggest sports books in the u.s., jay snowden, ceo of barstool sports book parent penn national gaming. let me get your thoughts, first, on this breaking news, that google play will be allowing apps where legal. >> well, liz, good afternoon. it's actually great news for us because if you were a google, android user previously, you had to go to the web site and play on sort of that version of the sports book which is very different than an app within

that platform within the phone system itself like you have with the apple iphone. so this is really good news, you know? close to half the mobile phone users in the u.s. have google android, and now they're going to have access to a much better experience with our sports books. liz: it's just amazing, the growth so quickly. but this really takes you up to a whole new level, does it not? >> well, it does. like i said, you've got close to half those mobile users have been on a pretty, you know, it's a below average experience when you're trying to use the desktop version from your phone and it's a real clunky experience. those apps within the apple iphone and, certainly, google android are terrific experiences. you know, we're live in two stateses, and we're going to be hive in over ten by the end of this year, so the timing is fantastic for people to have a better experience on our bar sports book app. liz: just last friday you

finally went live in michigan. number one, tell me how that's going. specifically, when it comes to the super bowl lv bets that you're seeing. >> yeah. well, we launched in michigan, as you said, last weekend, on friday. and so we had a lot of action. it was a great weekend. you had the afc and nfc championship games, a lot of great college hoops, nba, nhl. it's a great time of year to be a sports better. and michigan, you've got real sports enthusiasts behind the pistons and red wings and university of michigan on friday and then the football games on sunday, as you know. we couldn't be more pleased with the start in michigan. if we had to compare it to what we experienced if pennsylvania, we're feeling really good. dave portnoy, the founder of barstool and my partner, he went to the university of michigan, he's got a great following, got a big following in detroit, they've been spending time at our greek town property generating a lot of excitement -- [laughter] we invest money differently.

we don't spend money advertising very much on linear tv or radio. we're contributing to the barstool fund and matching bets that go back to the local businesses in michigan. so it's really been a win/win through the first week in michigan. liz: okay. so that was a reference to draft kings. the ads appear to be everywhere, but they're also in more states than you guys. i believe they're in 12 states, you're in 2. as you said, you're going to ramp up to 10, and who will be the next that you're really kind of hoping to plug into? >> yeah. we're targeting the state of illinois as the next state up. we'll be live in illinois before march madness where there's, obviously, a tremendous amount of interest around betting on college hoops. and after illinois you're going to see, you know, roughly one state per month or every six weeks, indiana, new jersey, we're waiting on, hopefully, some good news, we're cautiously optimistic we'll be selected for virginia. and west virginia, there's a lot of states. and then, of course, what's

interesting too, liz, is that because there's been so much momentum and so many statements have already legalized online sports betting, you've got a number of states that are strongly considering passing legislation now; massachusetts and ohio, maryland, louisiana just did. so these are exciting times. i think everybody's come to the conclusion that, you know, states are in need of incremental tax dollars, people love betting on sports, they've been doing it legally -- legally with bookies for a long time -- illegally for a long time, is and now you can tax it, and it's incremental revenue for the state. liz: jay, before we go, we have this situation developing moment by moment in the reddit room where you have the individual investors actually fighting back against, you know, big wall street funds that have shorted and driven down the stock of some companies. you know, as a scrappy entrepreneur like yourself who's really worked hard to build up a company, what do you make of this phenomenon? >> i was going to raise this, squeeze it in before we got off.

i'm deeply troubled, liz, but what's going -- by what's going on today. i don't understand how you can have two different classes of investors, one class being the retail trader that rely on their online brokerage accounts, and they find out this morning that they can't buy certain stocks. they can only sell. they can only liquidate in the words of those online brokerages their position in those stocks, but yet everyone else, all of the hedge funds can buy, sell, short those same stocks on the same -- i, it's a travesty. i don't understand how that can happen. and we're in an industry that is highly regulated on the gaming and sports betting side. that would never happen in our industry. it can't. i don't with understand how if you're going to halt trading in any way for one class of investors, don't you have to halt it for everybody? how can you have hedge funds shorting a stock the same day retail investors can't buy that stock? what do you think's going to happen? those stocks are down between

25-50%. it's a real travel is city. liz: -- travesty. liz: jay snowden, i know a lot of people are agreeing with you right now. thank you very much for joining us. come back before marched madness, because that's a huge satisfactory for you guys. jay snowden of penn if national gaming. we are coming right back, dow's up 462. that's why we're a fiduciary, obligated to put clients first. (money manager) so, what do you provide? cookie cutter portfolios? (naj) nope, we tailor portfolios to our client's needs. (money manager) but you do sell investments that earn you high commissions, right? (naj) we don't have those. (money manager) so what's in it for you? (naj) our fees are structured so we do better when you do better. at fisher investments we're clearly different.

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liz: fox business alert, twitter taking flight in today's pop stocks, key bank upgrading the microblogginging giant to overweight saying its growing pains are near an end and looking through the most bullish of lenses by 2022, so twitter's jumping 7. facebook was off to a great start this morning, but with about 30 minutes left to trade, it's lost all of that and more. a legal battle with apple looming, the social networking stock down 2% reportedly has been preparing an antitrust

lawsuit against apple claiming abuses in the smartphone market due to controversial rules connected to its app store for outside developers. facebook ceo mark zuckerberg calling out apple last night saying, quote: we increasingly see apple as one of our biggest competitor, imessage is a key linchpin of their cosystem. no direct response from apple, duh at a conference today, the -- at a conference today, tim cook took the time to talk about, quote, conspiracy theories for advertising purposes. apple down 2.5%. despite reporting blowout iphone sales in china that fueled a 57% surge in revenue there, record sales pushing total revenue in the holiday quarter past the $100 billion mark for the first time ever. whirlpool, though, in a total tail spin at this hour after warning of near-term product shortages and production constraints as stay at home demand cleans out the home

appliance maker. okay, this is a good problem to have, but the stock is down 8.5%. the vast swallowing of semiconductor chips to power, you know, everything from iphones, gaming consoles and whatever is creating a semiconductor shortage and, in turn, disrupting global car production of all things. today's automobiles use chips for everything including transmissions and self-driving technology. so what does this mean for consumers who are trying to purchase a vehicle? joining us now from illinois is our own jeff flock. jeff, what an interesting twist. >> reporter: and the ford bronco right behind me. these are hard to get these days, and this is full of semiconductors, computer chips. and as you report, huge shortage of these right now because of the popularity of home computers, xboxs, playstations. that's where the chips have gone and not to the auto industry. consequently, take a look at these impacts, liz. toyota tundra production in

texas slowed by toyota. ford shut down an escape plant this in kentucky. didn't have enough chips. honda slowing plants in ohio and japan. audi in sweden laying off 10,000 people. and this is as automakers try to recover, john hennessey and riverview ford here in oswego, the inventories are already low, right? >> that is correct, jeff. this is the way covid rolls this year and last year, right? you never know what's going to happen, what shoe's going to drop. this is one of them. we're still trying to recover from the pandemic when manufacturers shut down for a couple months, then this kind of hits. >> reporter: ford gave a statement, liz, to fox business network, and they say they did, indeed, have to shut that plant in kentucky down. the ford folks telling us the global semiconductor shortage is presenting challenges and production disruptions for the global auto industry including ford which could have a significant knock-on effect on

jobs and the economy. who would have guessed? you know, samsung today, liz, not just the auto industry, they say now they think there could be problems with not enough chips for cell phones. looming problems occupant there. out there, liz. liz: i mean -- [laughter] everything needs an electronic brain now, and that is what the chips do. all right, jeff, thank you. thank you very much, jeff flock. >> reporter: afraid so. liz: check the dow, up 396. so we've all been watching this reddit rebel short fund battle. what are the wealthy saying about it? i'm not talking about the wealthy wall street people, i'm talking about wealthy investors all across america. are they getting caught up in the war, or would they like to participate? the ceo of one of the biggest wealth asset managers on the state, raymond james ceo paul reilly is here first on fox business. as this reddit story has, i mean, we're completely shocked but, hey, we love it. it's huge for my morning market

minute tiktok that i put out every single morning. yeah, i just roll out of bed and i do it, no hair, no makeup. the reddit revolution was topic number one again today. we went from 300 views to 35,000. follow me on tiktok @red fox liz. closing bell 26 minutes away. the nasdaq, keep your eye on that. it is moving higher at the moment. we do have it jumping 115 points, s&p better by 50. we're coming right back, stay with us. ♪ ♪

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the hedge funds, can buy, sell, short those same stocks on the same -- i, it's a travesty. i don't understand how that can happen. liz: penn national gaming ceo moments ago, jay snowden, furious that this army of reddit rebels who piled into names like gamestop and other stocks that are heavily shorted by big wall street funds who have been betting against them are now being prevented by online brokerages from buying more of their favorite names. the short squeeze revolt is the talk of the town, and how is raymond james -- which, of course, deals with high net worth clients and people who are aspirational about saving and growing their money -- dealing with it? well, they have just recorded a record earnings season. the firm has about $1.02 trillion in client assets under management administration. let us bring in raymond james ceo paul reilly, first on fox

business. paul, i am sure you're watching this just as we are because it is quite a phenomenon that involves people who want to trade, those who want to bet against stocks. you're just coming off an incredible quarter ending in december. tell me what you and your team are looking at this situation and doing, if anything, when it comes to advising your clients. >> well, good to see you, liz. it's, you know, we tell our clients to invest for the long term, and if people want to speculate a little bit, that's fine. i look at our history, in 2010 we were $260 billion in assets and here we are ten years later at over a trillion the, and that's 15% compounded growth in long-term investing as a result of our clients, and that's, that's our investment philosophy. now, something like the reddit thing has taken us all by surprise, right? we've never seen this. and i do think there has to be rules around it. i think retail investors, it's good when they learn about the market, but with you don't want to get the ones that are stuck and don't understand the market

making, you know, bets on stocks that clearly have no basis in valuation. so i do think it's a good thing to look at and figure out how we make it kind of a fair playing field. i think retail investors understanding stocks is great, but when they get into speculation and not knowing why they're investing, i think that's the problem. of course, our clients do go through financial advisers, so at least they get that advice before they make those decisions. liz: and speaking of your clients, you know, i know hay differ from client to client, but let's just say your older, close to retirement or retiree high net worth individual, what are they saying about this? there may be that the fomo, that fear of missing out because, heck, we have seen a 7-8,000% jump in gamestop. it's coming back a tiny bit, but again, i get the whole long-term investing, but, you know, when you get those calls, what do you say to them? >> well, you know, it's speculation. so, you know, there's certain things you can't trace how

they're valued or understand why they're valued, they're a sensitive play. if you want to play a a little bit in that, that's your choice, but your portfolio should be long-term invested against goals you set. and if you make the bets on those kinds of things, there'll be a lot of loseers. there's been winners and there'll be losers who may not be able to afford it. you have a financial plan, and for those older clients or even younger clients we say follow the plan. long term you will achieve it invested. this phenomenon's brand new, i don't think any of us had seen it or anticipated it until now. liz: you're down in florida. i've noticed, and it is no surprise to a lot of our viewers, we've been doing this story on how so many companies are moving down to florida. we have people from high tax statements leaving and going to florida -- states reeving and going to florida. what is the view on behalf of your clients of the overall economy as we have a new president and administration?

>> well, anytime there's a change of administration, there's questions. but i think long term the economy, especially let's call it midterm, if the covid relief bill is passed and there is infrastructure spending, that's going to spur the economy. and, of course, that's the backdrop of saying, look, you know, we're going through maybe the worst part of the covid virus, are vaccinations going to work as we think, and that's the unknown. so, you know, i think the mood is optimistic in terms of a, you know, economic recovery over the next couple of years. and then we have to settle with where are we with employment versus the debt we have and what's the path forward. so i think longer term it's a little murkier. liz: yeah. debt and, certainly, deficits. always the issue, but nobody seems to want to tackle it. paul, thank you and congratulations on an incredibly strong quarter. paul reilly of raymond james. good to see you. >> thanks, liz. and one thing you thought to remember is the big game's at

raymond james stadium. liz: i know. i know. suite -- i guess we're not doing that, darn it. but we will be watching. thanks so much. [laughter] reddit rebellion against the shorts has the securities and exchange commission on high alert. charlie gasparino's been working the phones to see who might be now turned the sec's microscope. charlie breaks it next. and a speech by the then-unknown jeff bezos who was just beginning to start amazon inspired marla beck to launch blue mercury back in 1999 as an online shopping hub for all things luxury beauty. fast forward 20 years, close to 200 locations, sold in macy's -- it's huge. so what did jeff bezos say to her? you can actually hear it. she's going to explain it on my everyone talks to liz podcast. the new episode just dropped. it's on apple, spotify, google

podcast, wherever you get them. so stay tuned, download them and listen. closing bell ringing in 15 minutes. the russell is now positive, it had been down, it's up 3 points, the dow up 388. we're coming right back. ♪ ♪ do you have a life insurance policy you no longer need? now you can sell your policy, even a term policy, for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized that we needed a way to supplement our income. if you have one hundred thousand dollars or more of life

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i guess you could call them the ones hated by the short sellers. but sources close to robinhood are saying its actions are aimed at protecting investors. so etrade reportedly joining schwab and ameritrade which started yesterday, but are these moves just the tip of the iceberg when it comes to preventing the retail investor from trading? to charlie gasparino about the regulatory crackdown to come. there are two class action students already filed in, i guess, the southern district of new york court, charlie, against robinhood because these people want to trade. >> yeah. i mean, i think the problem is that, listen, class action suits come and go, as you know. most of them don't end up anywhere. people have to understand robinhood. this much volume of trading, you know, people using leverage and margin, takes a certain degree of capital. you have to have, you have capital requirements.

and robinhood just can't keep up with it at this point. so a lot of -- liz: schwab can't either though? >> i don't know schwab. it's possible. i mean, we're talking tremendous -- i mean, think about it this way, we're talking about gamestop a penny stock a few months ago that is now trading wherever it's trading. and, by the way, it's down 200 points today. it reached a high of 500, and it came back down. that's massive amounts of volume and -- liz: they can't trade. they want to buy. >> well, it's moving somewhere, maybe it's not moving on robinhood, but there's a huge options trade here as well. so remember, this is -- some this has to do with the plumbing of robinhood, of all these different places. it's less about a conspiracy than it is about the reality of what's going on here which is a never before seen, never seen before occurrence involving, like, about ten stocks.

i mean, it's pretty amazing. so the sec is looking at it, they've announced, and i've been talking the regulatory sources who deal with them on an everyday basis. i've been talking to people close to robinhood on what they expect, and they expect some sort of investigation that involves market manipulation. i should point out market manipulation is incredibly difficult to prove. there are a handful of cases, you know, over the last ten years. it's usually involving very esoteric things. this is going to be very hard to prove. but people on robinhood really do expect them to be asked by the sec to turn over their blue sheets, which is their trading data, and that the sec somehow goes and looks at the reddit boards and tries to figure out who's hyping what, who's touting what and maybe sort of link it with trades. it's an incredibly difficult -- i think it's impossible to bring a case here. and the reason why, first off, 99% of the people on those

reddit boards use their nicknames, so you have to find out who they are, then you have to match them with the trades. trust me, i've been talking to a lot of people on this, that's where they're going, that's going to be very difficult to prove. i think the best regulatory, i guess, anecdote here, antidote, liz, would be for people to lose a lot of money and not believe all the garbage you read on reddit about gamestop being the next, the greatest thing since sliced bread when, as you know -- liz: that's not what's motivating them. all right. we've got to run, charlie, we're going to get caught -- cut off. two hot spacs about to come public. should you look at them or should you turn away from the shiny object? ♪ ♪

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two major announcements today. first sir richard branson spac talks with merge of dna testing company 23andme. you have a a electric firm, faraday. but are these shiny lottery ticket objects worth the hype? we bring in independent advisor, alliance chief investment officer chris zacrelli. yes or no, would you be interested in looking at these spacs? >> we do look at everything that goes public, ipo or spac but we are generally skeptical to easy money flowing into the market n general we will be a little bit cautious. we'll look at everything but we do view it with a little of sent system. liz: there is a lot of crosscurrents going on in the market. we're dealing with the pandemic.

that is the news deal that hits the taper day not to mention the reddit room situation. what are you interested in? you know, putting up exchange traded funds financials an energy. why? >> yeah, so the areas we're interested in right now are within financials and energy. with he definitely believe in the cyclical trade at this point in time. we think the economy will continue to reopen. will continue to improve. so as the economy continues to do better, i think you're going to see an opportunity for those parts of the market left behind last year, both within financials and energy continue to move higher. that is it where we're starting to put some of our money to work in terms of individual names and broader baskets. liz: listen, yesterday we had the toughest day for stocks in a couple of months. today we're all in the green. dow is scratched back about 320 points of yesterday's bigger losses. what are you advising investors right now? >> i think investors right now need to be long-term optimistic. they need to look at the rest of this year being a good year for

stocks. you have twin tailwinds of easy money from the federal reserve and fiscal stimulus coming out of washington. [closing bell rings] >> they have to be cautious dawes valuations are high. i would dollar cost average. liz: always good advice. chris, thank you very much. that will do it for us. green on the screen but the reddit crowd is upset. connell: disruption on wall street. stocks are bouncing back today after that big selloff we had yesterday, the biggest in three months and it is a different story today for the reddit revolution. we'll get to it all. at the close the dow is in the green snapping what had been its longest losing streak in 11 months closing higher by 300 points. the s&p and nasdaq both breaking two-day losing streaks. s&p up 36 and nasdaq up by 66, 67 points. the stocks to watch, gamestop, amc, blackberry those stocks in the red today as robinhood and other brokerages stopped