work on day one when you find that new idea. if you want to build let's say a 3% position there's nothing wrong with starting at 1% and doing it overtime, a good example for us to be nike. charles: okay. david, mark, great stuff. always appreciate it guys, folks those are two of the best i hope you listen and took notes. i was taking notes, liz claman, you got a little bit of the cp effect you can thank me a little later. liz: [laughter] rock on with your bad self! i love that music. we need to do more of this charles, thank you so much. folks, look at the markets, the economy no longer needs or wants fed stimulus, so says federal reserve chair jerome powell before a senate committee today and the markets agreed. green on the screen, dow just hit a new session high, up 179, we're up 165 right now. the question is is this merely the calm before the rising interest rate storm, and when should you expect those storm clouds to appear? former fed governor randall gros

ner puts a date on it coming up. powell not overly concerned with the omicron outbreak. he said so, but one testing company ceo says the testing situation in the u.s. is "an unacceptable mess." we'll talk exclusively to that ceo of publicly traded israeli testing company about what some see as inflammatory comments and what he thinks needs to be done to fix it and the chip shortage still holding up auto production but one company supplying the semis to keep electronics on time, is here to reveal his timeline for normal return. that ceo whose stock is up 90% year-over-year is joining us in a fox business exclusive on the chip shortage and the backlog, but first, fox business alert, do not put the tech bulls out to pasture yet. take a look at the nasdaq, continuing to march higher as we kickoff the final hour of trade, after yesterday's last minute u- turn from red to green

wiping out that 405 point sell-off in the process, the nasdaq right now is up 201 points the dow and the s&p 500 are gaining as well, investors are kind of taking a sigh of relief that federal reserve chair jerome powell did not drop any surprises during his testimony before the senate banking committee today. during that appearance, which was part of his reconfirmation process, powell did say that all the members of the federal open market committee do see interest rate hikes this year, that the median number of increases among those members is three, but that number is not set in stone. here's what the he said. >> but that's going to depend on data, depend on the progress we see on the supply side, the progress we see on inflation , and we honestly don't know. there's risk on both sides really on growth and potentially on inflation as well, so we're going to have to be just very attentive to what's happening in the economy and willing to adapt liz: adapt, well, the 10 year treasury yield is adapting to that comment.

now, yesterday, the yield which moves inversely to the price of the 10 year treasury, breached 1.8%. right now, we're way down below that, 1.74%. question is should investors trust powell & company's next move and trust it won't gyrate the markets let's bring in former fed vice chair randall gr osner, along with trader scott fullman. i'm going to begin this conversation with you, powell did not commit to timing on the first rate increase this year but it's pretty obvious that right now, all fed meetings are live in other words could happen during any one of them. did you hear him say anything that indicated march will be the first hike? >> he was really trying to be clear about not committing to a particular date when they're going to move but certainly there have been enough of his colleagues who said marathon is the time to move and given that inflation is so high, i think there's a very high probability they will start the rate increases in march.

liz: okay, and i don't want to freak out anybody. we do have a meeting, january 25 and 26 so no chance of anything happening there. >> i think it's highly unlikely i think if he wanted to do that he would have telegraphed that. one of the things that jay powell isn't very good at is making sure the markets aren't shocked by anything that they do remember, about a decade ago where we had the so-called taper tantrum where they started reducing the rate of purchases. powell did that without really causing any problem in the markets so he's gotten the communication down pretty well. liz: okay, so do we have to go in order here, meaning must the tapering or scaling back of the stimulative bond purchases be finished, before the fed starts drawing down what is now this bloated $9 billion balance sheet? >> so there's no formal reason why that has to happen, but i think that's the way they're thinking about it. i think they've speeded up the taper so they are going to be basically stopping their

asset purchases by march, which would allow them to start to raise rates in march so they finish the additional asset purchases, and then start to do the raising of rates. people felt it wasn't going to happen until the middle of the year but now i think it's very likely it'll be in march. liz: and the markets do not seem to be scared by that, for those of us who are in cars right now listening on xm channel 113 dow is now up 173, the russel is having a great day up one full percentage point, we've got the nasdaq up one and a third percent but this leads to this question. how aggressive, randy, will the fed be and is there a correlation between unwinding the balance sheet and the number of interest rate increases this year, meaning, could you say that each, say for example, $250 billion chunk of balance sheet reduction is worth one rate increase? >> well, people have estimates that are all over the board on that. i think what they are going to try to do is stop increasing the size of the balance sheet,

that's the taper and then start raising rates. they might slowly unwind the balance sheet also, but i think they are going to be more pivoting to the rate increases, but it's inflation persists and i think it's very likely to persist and jay i think made it pretty clear that well we're not so sure, but we think there's a pretty high probability of that, that they may do both as the year goes on, and obviously, there's some chance that there could be some problems in the markets. liz: we're sure, just so you know, randy, and you've watched our show before, you've been on it, we have been very clear that we felt, and of course it's easy to say that i could be in the fed shoes, i'm nowhere near as experienced but we could tell here on the "clayman countdown" that inflation was going to be persistent. i mean, today, powell did admit that back in may after six months of rising prices he was off the mark when he predicted inflation be temporary. here's the excuse he gave to senators who asked him about that and then you can react to

that. >> we said that because we thought the supply side bottlenecks and shortages be alleviated much more quickly than they have been. there's no empirical experience with this before we haven't had the global supply chain collapse so i think we learned that. it wasn't that it was just, this is a unique set of circumstances. liz: and of course it was, but how long do you believe inflation is going to hang around? >> i think it's going to be around for a while. i think we're going to see continuous supply chain challenges, as you know, china has a zero covid policy. the omicron variant spreads very rapidly. they've shutdown cities so i think you're going to see a lot of supply disruption over the next few months from china and that has lasting impacts through at least the first half of the year and i think probably even into later in the year. liz: former fed governor randall kroszner, thank you very much. you guys saw scott fullman he's

our trader right now for the floor show trader. scott you've gotta give me a sense, is it time now to hunt down stocks, specifically where management and insiders are buying, because that may very well be the only indication aside from the fact that people have gut feelings about certain stocks and about the demand for their products. when you're trying to pick-up some winners here. >> well i think that definitely , the market is getting much more selective and stock selection is becoming ever -more important, as we move forward and that happens as we move toward the end of an economic cycle, when the fed does come in and start to tighten their policies. the fact is is that trying to identify some of those securities now is a little bit challenging for people, but look, we're finding them and there's been good securities that have gotten beaten up over the past couple of weeks that are now, you know, the prices have come down, and now it's like buying them on sale and i

think that there's plenty of good ideas out there. i mean, i personally i like amd, i own it myself. i think it's a good company to own. they are making tremendous head way, they've taken market share from intel and the fact is is that i believe as we turnaround and the economy starts to come back there's more demand, more need for chips, and more need for computers and again, you know, this is a great way to play it. also, the companies that actually make the equipment and supplies for making chips, you know, companies like klac and applied materials. these are good companies that you want to be looking at now because there's going to be demand still going forward and as the economy bounces back and continues to expand, we're going to need more chips, and remember , we're seeing technology continue to expand, especially as we start to move more into electronic vehicles and the next generation of

computers and communications. liz: well all i could tell you is whatever powell said did not frighten the markets. they're embracing it folks we're at session highs right now, the s&p is up 40. i want to just let you know, two minutes before the show what i always say to my producers is what are the highs and lows, two minutes before the show the high on the dow was up 179, right now we're up 193 just a second ago we were up 202 points so climbing in this final hour of trade. let us get to our pop and drop stocks, we want to begin with the fox business alert, tesla has done it again. the ev maker reporting record monthly sales of china-made vehicles in december, churning out 70, 847 of them the highest number since it began manufacturing in shanghai in 2019. by the way that's the fourth consecutive month to see above 50,000 car sales for a month, certainly tesla moving higher by a quarter of a percent, morgan

raising its price target on the stock and short sellers are you listening, morgan stanley expects shares to hit 1,300 a share, right now at 1,060, saying not owning tesla means " not owning the one company that could make all other ev names obsolete." all right, we've got a case of good news bad news. abercrombie & fitch says it had strong holiday demand but lacked the inventory to keep up. right now, investors are looking only at the good news the stock is up nearly 8% even after it lowered its guidance for forth quarter sales the retailer is saying revenue will be flat to 2 % lower compared to 2019. shake shack is sizzling after its fourth quarter revenue outlook beat estimates. the fast food chain expects sales to rise 29% in the quarter , but also said it saw staffing issues due to the omicron variant at the close of its fiscal year, nobody seems to care, they are embracing scoop ing up the stock up 14.7% right now, with about 50 minutes left in the final hour of trade.

big blue, not so much. feeling the blues ibm at the bottom of the dow, down 1.5% after ubs cut its rating on the stock to an outright sell, and cut its price target to $124 a share from 136. it's standing right now at 132.91, ubs citing valuation concerns saying that the market is pricing in earnings estimates a bit too bullishly. ibm still managed to gain about 10% over the last year, and an unbelievable story here, folks. it has been 72 hours since the world's first human to receive a pig's heart in a groundbreaking transplant and the 57-year-old terminally ill patient, dave bennett, is now awake, breathing on his own, and can speak with his university of maryland brilliant surgeon. the pig heart was genetically modified by united therapeutics subsidiary to prevent the

patient's body from rejecting the organ. the breakthrough is pushing united therapeutics higher by 3.6%. covid testing takes center stage , at this point in the pandemic but the ceo of israeli testing company says the u.s. is testing plan is "an unacceptable mess" and he will tell you what needs to be done to clean it up and what his company is doing as they provide thousands and thousands and thousands of tests, millions to schools and pharmacies around the world. closing bell ringing in 47 minutes, dow is up 173, we're cooking with gas or batteries, the "clayman countdown" is coming right back.

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liz: members of president biden 's covid response team appearing before a senate health and labor committee this afternoon. members were grilled about being unprepared for omicron's tidal wave. dr. fauci outlined data though, showing vaccines still offer the best protection against the new variant. >> if you look at vaccinated versus unvaccinated, there's

about a 10-times greater chance that you'd be infected if you are unvaccinated, about a 17- times greater chance that you'd be hospitalized if you were unvaccinated, and about a 20-times likelihood that you be dead if you were unvaccinated , so when you look at every parameter, 10 times, 17 times, 20 times, infection, hospitalization, death. liz: and while the evidence shows vaccines do protect against severe illness and death , there's no denying the testing situation in the u.s. could definitely improve. one ceo at the forefront of the pandemic says the current testing situation is "an unacceptable mess." here in a fox business exclusive is todos medical ceo gerald kami shion joining us with more on what his company is doing to ramp up testing and making breakthrough developments in testing and mobile testing.

all right, gerald? let's just get it right out there. you've been very critical of the u.s. government here, specifically why? >> well, because all of this was very predictable. in early 2020 over the holidays, we all knew that testing was very difficult to come by, and what we found was that our testing samples were competing with our holiday packages, in order to get results done in the lab, and guess what? we weren't able to get the test to the lab and the labs weren't able to run them in time and the virus spread. in 2021 exactly the same thing happened. the solution, of course is not to change the system from that perspective, the solution is to bring the lab closer to the people, so you have the tests go to labs that are close to where the people are getting sampled or you bring mobile labs directly to the people and run the test on-site. the lack of government support for testing is really what's

driven the inability of companies to develop and implement those structures, now that they are behind the eight ball i think that could change and needs to change very fast because just like we saw omicron creep up in a month, it can change rapidly again with another one. liz: well there's no doubt that the u.s. government was caught flat footed on this. in fact, my sister-in-law had said we need an operation warp speed for testing kits. what are you guys doing at todos , which is a publicly traded company, a micro cap, you are headquartered in israel. tell me how you're ramping up testing and how you've been able to turn these things out. >> yeah, what we do at our lab down in atlanta and we also have clients all over the country is we stocked up on supplies. everybody knows that eventually you're going to use those supplies so it's not as if you're going to run out and not be able to use them, so we stocked up millions and millions of testing kits of the plastics needed to run the test and of

the extraction, all of the equipment so we could scale rapidly and respond quickly to the solution, so we, you know, we ramped up from under a few hundred tests earlier this summer because the demand wasn't there. we're now processing easily in the five to 6,000 range and we have plans to be able to scale up to hundreds of thousands because most of the labs right now, they had moved away from covid testing and they don't have the infrastructure to meet this demand which is another foreseeable issue and we setup to be able to support all those labs and also direct people to be able to do that testing so we're ramping our volume substantially and we're also bringing new technologies to market in the testing that we think can make better, faster and more reliable than pcr testing or rapid antigen testing. liz: well you guys have several covid-19 diagnostic tests, and i understand one of them is an antibody test that is able to tell people how many antibodies they have of covid. why is that helpful to know? can you explain that to our

viewers and when could something like this be ready immediately for the populations of the world >> well it's ready now, and the key is not that it's testing any antibodies, it's that it's testing those neutralizing antibodies. those are the ones that the vaccine produces. the problem with the vaccines that we have, of course is twofold. one you get the vaccine, you get a high number of antibodies but then overtime, those key antibodies that that vaccine produces, they go down, as the immunity waynes. the second problem with omicron is that these vaccines have been targeting the earliest stream from wuhan. we all know that that strain is gone, so the effectiveness of each antibody to prevent an infection has gone down substantially and that's really the big problem so you want to have as many of those as possible, that's why they're telling people to get boosted but if you have a lot of antibodies already and don't know it and you take vaccination, there could be something called auto antibodies you create antibodies to the

antibodies, so it's important to know, you know, the antibodies that you have, because it'll allow you to make decisions and i think it will convince a lot of people who think they are protected with the vaccine or because they had a previous infection, they will actually realize they don't have that and it'll encourage them to get vaccinated, so i think the idea that people having this information is scary for the government, it's the exact opposite. i think with this information, people will make the right decisions for themselves. liz: right. well, we need the government to start ramping up here, because this is still very much a problem here in the united states. gerald commissiong, great to have you, thank you so much. >> thank you. liz: jay powell, did you hear that today? he outed the ports in the united states. more than once before that senate committee today, he mentioned that a record number of ships are still idling off the shores. problems do persist as the secretary of transportation, pete buttigieg, visits the port of la this

afternoon. we're going to take you straight there for pete buttigieg's visit when countdown comes right back. closing bell ringing in 37 minutes, the dow up 193. ten year yield is really continuing to fall, 1.74%. stay tuned.

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liz: breaking news, transportation secretary pete buttigieg on the ground right now at the port of los angeles at this hour. he is speaking about what he has seen firsthand, a backlog of container ships that continues to cause supply chain issues, including empty store shelves and higher prices. kelly o'grady is right at the port where the transportation secretary is talking up the recent $52 million grant for the port of long beach that hopefully, kelly, will shake up some of this, breakup the bottleneck. reporter: yeah, i certainly hope so, liz. before we get to secretary pete buttigieg, he just wrapped his

remarks. i want to contextualize what he's saying by showing you what i'm seeing here, okay? we've got 102 ships waiting offshore that's near a record high, and i want to show you, over here, we have where the trucks come to pick-up the containers at the port of la all of these sitting here either have goods customers are waiting for or are empty, you see a few trucks right now but this normal ly be buzzing with a lot more. i also want to highlight that the port was supposed to switch to 24/7 operations. it's difficult to fill that early a.m. shift and i can tell you it was empty this morning when i was here. you see those container frames in the background. when they are in the up right position that means they aren't being used so that speaks of the lack of resources even though there are plenty of ships waiting to unload. keep that in mind and let's turn to the secretary. today was his first visit to the southern california ports ever and beyond touting the current operations the focus was on how the administration's supply chain task force as well as the investment in the infrastructure bill will create meaningful change in the supply chain.

he touted california as a major competitor. he touted new tech investments and innovation as the way forward. he also hit on coordinating with the fed in order to get a handle on those prices. now what i want to highlight those is these are long term solutions potentially taking years to reach the benefits. for example, i spoke with a supply chain expert and he told me that some of the planned projects, like improving rail operations, are going to take three years to compete, and americans are desperate for change now that we're seeing empty shelves and rising prices across the nation, so while the focus of today's visit was on the future and tech and innovation, investors are going to weigh that data against the lack of visible progress we've seen in the supply chain crisis, especially with the consumer and producer price indices coming out this week, liz. liz: kelly, thank you very much. kelly o'grady. kind of funny folks i don't know if you saw but we did have jay powell coming out saying, the ports are still very clogged all right, timing is everything,

they say that, right? one semiconductor company hoping its very specific chips used in nearly every electronic device will beat the clock when it comes to the microchip shortage. investors are counting the stock of the company up 90% over the past year, we'll tell you who it is, next and you'll meet the ceo in a fox business exclusive. closing bell ringing in 29 minutes, the dow up 197, you can take a look at that nasdaq up 210, that's a gain of about 1.5% while the s&p is up just under 1 %. we are coming right back. i'm searching for info on options trading, and look, it feels like i'm just wasting time. that's why td ameritrade designed a first-of-its-kind, personalized education center. oh. their award-winning content is tailored to fit your investing goals and interests. and it learns with you, so as you become smarter, so do its recommendations. so it's like my streaming service. well except now you're binge learning.

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that's well funded to double the 4 million ounce resource over the next 2 years at their ontario based project. goldshore resources. liz: volkswagen warning that speaking prices for cars no longer the biggest problem for anyone wanting to buy one, with the push by just about every auto company to electrify the global semiconductor chip

shortage, will have a death grip , on companies trying to rollout their new ev's this year but can't get their hands-on chip supply. all electronics including cars require precise timing, and timing chipmaker which describes its product as the heartbeat to all technology consumers use, makes specialized chips in everything from cell phones to computers, cars, aerospace and defense. apple is one of its major customers, and the stock is up 1.6% right now but up about 90% year-over-year. joining me now in a fox business exclusive is ceo rajesh vashesh. great to have you. what are you doing that enables you to churn out your timing chips on time? >> [laughter] that's a great question, thanks for having me. we would love to say that it's all because of the category that we have chosen of timing chips, which is hard to do precision

timing, so one of the things that we do really well is that we're a fab less semiconductor company and the competition is all using fabs, so that's why it's an older quartz technology which is having trouble producing enough chips for the world whereas sitime that uses tsmc and bosch, two different fabs, one in germany, one in taiwan, is able to produce what we can. liz: you know, we saw bosch at the consumer electronics show and also spoke with qualcomm ceo and they're all dealing with this issue of supply chain timing. this is definitely a bifurcated discussion because we're talking about timing of the supply chain , but also your timing chip s which basically enable accuracy, reliability for everything but you know, whether it's qualcomm or the chip equipment makers, applied materials, klac tencor,

everybody is really struggling with this situation. where are you manufacturing and what have you changed over the past year to enable a smoother supply chain? >> yeah, absolutely. we are also having the same impact of shortages so don't get me wrong. it's just that in comparison to the older way of making time in chips, sitime invented mems-base d timing which is a fancy word for moving parts in silicon it's one of the chips that we use, micro electronic mechanical systems, mems chips in timing, combined with analog semiconductors, so that's really new because otherwise, it's all crystal-based which is not semiconductors, so remember, every time semiconductors goes up against non-semiconductors, which has happened numerous times, semiconductors wins. why? because of production, because of quality, because of reliability, and because of performance, so sitime invented this category and no surprise, we're doing really well with it but the answer is also that our

chips are very very small, liz. it's .5 by .5 millimeter for each chip so we can get 100,000 of them on one wafer from bosch in the mems factory so that's a significant part, also, all said and done we have done spectacularly well and grown by 93% in q 3 last year quarter-over-quarter but still, our revenues are estimated to be around 200 million by analysts for 2021 so we're still a small company in a very large pond of 8 billion, but what we deliver are highly exceptional products as you mentioned, which customer s really need to have. liz: intel was small at one point. i know that rajesh. i want our viewers to understand one thing about these timing chips and you guys have a brilliant piece that's on youtube that explains what timing chips do, and you're basically pointing out that in beijing during the olympics in 2008 i believe the 100 meter mens butterfly competition was

actually counted, it was won by the length of less than a finger tip, so the timing that you provide with these chips is extraordinarily important, goes in just about everything. what would you say to the u.s. government that right now is trying to help by trusting companies that may build fab or fabrication plants here state- side. >> yeah, i think it's really important to secure the supply chain all over the world right now. i think that the situation has unfortunately gotten to a point where it's important for u.s. companies to look at u.s. sources of supply in having the supply in germany which is really friendly country to the united states, i think we already have our mems technology there and tsmc in taiwan, we hope that there's nothing in the geopolitical situation that makes it any worse, but i think we're in good shape overall in the world but i think more production needs to come back to

the united states. liz: rajesh, great to see you, we're watching your company, absolutely fascinating the company is called sitime. thank you so much. thank you so much, liz. bye-bye. liz: kenny g. playing a new tune , but not the famed instrumentalist. ken griffin, selling a huge stake in citadel securities as market maker charlie breaks it on the details of the deal, next. and fresh off our presence at the consumer electronics show, the world's youngest self-made billionaire is my guest on this week's edition of everyone talks to liz, my podcast, that people who want to be inspired by when it comes to reaching for your business dream, and becoming as wealthy as lym in after ceo and founder austin russel has. you've gotta hear it. he got his first patent at age 13, dropped out of stanford to build the hottest lidar company right now, hear his unbelievable story and inspirational apple

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if you think you have dupuytren's contracture, there's a simple test you can take—from anywhere. try to lay your hand flat against a surface. if you can't, you may have dupuytren's contracture. talk to a hand specialist about your options, including nonsurgical treatments. liz: meme stock apes are pound ing their chests after one of their own, a 27-year-old trucker named jose batista was granted a $30,000 cash award in his suit against robinhood. the financial industry, regulatory authority ruled that robinhood was liable for batista 's losses incurred when the online brokerage suddenly restrictedded trading in certain meme stocks during the last january's manic short squeeze. jose had planned to sell costs

and express that day but robinhood claiming liquidity challenges prevented buyers from scooping them up. this is the first monetary judgment against robinhood, legal-legals believe it could open the flood gates for other investors to file lawsuits. robinhood no worse, it's up about 5.5% at the moment. billionaire hedge funder ken griffin and his behemoth market maker citadel securities could be on the path to enter the public markets after the firm was valued at $22 billion following an investment by venture capitalist firm sequoia capital. let's get to charlie gasparino. a big fan of kenny g. he's here with more. charlie: the guy prints money. listen, i think i might have spoken with the guy once, back in 2008, so just so you know i really don't know the guy. we should point out also that citadel securities is a separate arm from the citadel, the hedge fund, he essentially runs both, but they are separate entities

run differently, and the company would say the company would say there's a chinese wall between the two, but we're talking right here, citadel securities and it got, here are the headline numbers, liz. it received a $1.15 billion investment from among other investors sequoia investments a big venture capital fund. it values the whole entity, the securities part, at about 21 or $22 billion. they're going to expand into crypto because they had some other partners that came in that know a lot about crypto. they are going to probably expand into electronic trading into government bonds which is kind of a new, it could be a new area for them as you know they're big in high frequency trading in stocks so they may do that in the bond market that's some of the things they're looking to do is to grow into those businesses. sounds all great. the real second day story is the real story and that citadel securities is laying the

groundwork to go public. i've got in with people pretty close to the company. the big tell of sequoia they don't invest in anything that doesn't go public where they make a mint, and that's what they do. early stage investing or mid- stage investing you put money in and you want to cash out at some point that's their business model and the fact they are in this is a tell, but i have spoke with people close to the deal who said that this is a precursor to go public, so, when do you think they are going public? i don't think they are going public tomorrow. i do know that sequoia, like most of these companies, want you to go public some day so next couple years. citadel securities will, as long as things keep going they are going to be a public company. there's no doubt about this. liz: what does that mean, charlie? charlie: say that again? liz: doesn't that mean that they are really ready to take on wall street? charlie: you know, i don't think you realize, they do take on wall street. i mean, they are no trade,

there's this whole thing out there about -- liz: maybe i should say disrupt. charlie: maybe, but here's the thing. these amc apes keep saying they are trading in dark pools and they really don't. the reason why you could trade a stock pretty cheaply is because they make markets very efficient ly, and that's what they do. i'm not saying they are perfect, not saying it's not a trader there that doesn't try to screw around, it's like everybody, but i mean, everybody on wall street , but this is what they do they make markets in this big casino we call the securities business whether it's stocks, it's soon going together bonds, they do it through high frequency stuff, on the floor of the stock exchange, that's what they are doing. now when you say take on wall street i guess you mean are they going to go out there and start doing investment banking deals. liz: exactly. charlie: i don't know about that if you asked, this money, this money obviously getting this money prompts the question, what's next. ipo's clearly on the table. i've been told that from people inside the company, and likely,

i would say almost definitely, but i think they are going to expand into different areas that the investment banking -- liz: well who should be threaten ed, maybe that's the better question. who should be threatened by what citadel appears to be doing? charlie: well goldman sachs has a business model similar to citadel and remember, citadel is not an investment banking firm, it's not a bank. i don't think they are regulated by the fed so they have some advantages by staying out of that, what is that, systemically important financial institution realm, that goldman and morgan stanley and all these other firms do, and jpmorgan, so you know, they got a lot of running room here. listen, they are the market- making hedge fund equivalent of a private equity firm that skates right under the sifi designation and can do stuff without the government breathing down their back. obviously, gary gensler and a lot of democrats don't like ken griffin because he's a

republican and who knows what they are trying to line up to take out citadel's business model. that's always a possibility, with elizabeth warren and the crew that runs the show now, but you know, they have a pretty solid business model here, and you know, he doesn't do anything that he doesn't think through 100 different ways. that's one thing that he's smart liz: to that end, charlie, sequoia and paradigm, one of the other investors, they don't do things that don't make sense. charlie: i'm glad you brought up paradigm because they are the ones that help them with breaking into the crypto stuff, by the way, one thing i will tell you. but remember this. ken griffin says we need regulatory clarity first before we get into crypto. i think what he's waiting for is some sort of a demarkation of who runs the show, the sec, the cftc, what goes on with the ripple case is a big issue going forward, on regulation so we'll see more out of citadel in crypto when that regulatory

puzzle gets solved a bit. back to you, liz. how are you by the way? liz: we're doing a jigsaw puzzle at my house. i'm okay, how are you? we're separated here. charlie: are you in the studio? or are you at home? liz: i'm in new jersey, everyone charlie: it looks so good. liz: isn't it pretty? charlie: it looks so good. i love your studio there. it's really nice. liz: you don't see the cat and the mouse trap in the basement here. all right, thank you very much. charlie: i know that. liz: charlie we'll see you next time. as jay powell and the fed prepare to raise rates today's countdown closer says as they gear up, he's got some cash cows , he says, you can milk for more profits even when the fed moves, closing bell ring ing in seven minutes, the dow has lost a tiny bit of steam still up 127, gold is actually having a really good day it's up $23 and more than 1% stay tuned we're coming right back.

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♪. liz: closing bell about 3 1/2 minutes away. the s&p on pace to snap a five-day stretch of losses. that would be the longest streak of losses in four months. we're up about 37 for the s&p. the nasdaq is on track for the first back-to-back gains since december 27th. the nas has a gain of about 189 points. could all of this change with interest rate hikes? is it going to be three of them, is it going to be four? fed chair jay powell would not definitely say during his senate testimony today but investors are betting interest rates are set to rise multiple times this year which could mean we're about to see a massive repricing of a lot of these names that are going through on your screen. s&p 500 names, google, apple, and the like. when we say repricing, they could come back down to earth.

our countdown closer has a play to be a safety net. we have david kudla. david what is your way to gain exposure to the s&p in a safer way without becoming a casualty of the fed? >> good afternoon, liz. pacer cash cows 100 edf this, etf is unique where it takes the russell 1000, looks at free cash flow and has 100 stocks in it of varying industries. we have energy in there because of the free cash flow in the energy industry with occidental, some of the other e&p producers. abbvie in pharmaceuticals. we have retailers like cvs. it's a diversified portfolio right where investors want to be right now. we look at fed liquidity drying up in 2022. investors need to look at

quality names with strong balance sheets, high free cash flow like we're betting in the cash cows etf. profitability. we have seen what happens to these nonprofitable technology stocks. those are what you want to stay away from. liz: oh, yeah. >> technology but high quality names with profitability. liz: david, investors were so forgiving over past year for some of those momentum exciting names but really weren't going to have any earnings. we got about a minute left. what areas of the market are you advising your clients to stay away from as the fed really gets ready to raise rates? >> well it is important for investors to continue to move more towards value. that is what will play well in 2022. as i said, avoid you know, those high-flyers that because there has been so much fed liquidity washing around, 120 billion a month looking for a home, we've had companies that have no earnings, that don't have a

strong balance sheet that have been getting bid up, bid up, stay away from the portfolio. liz: david, great advice. good to see you. [closing bell rings] the closing bell rings. the dow snaps a four-day losing streak. it is two up days in a row for the nasdaq. we see green on the screen today, the u.s. convoy at least u.s. investors believe it want with stand fed stat -- tightening. larry: welcome to "kudlow." i'm larry kudlow. good evening, folks, we're broadcasting from iowa tonight. in a moment we'll speak with both of i hope of iowa's u.s. senators. earlier today senator joe manchin stated that he will not support any changes to the legislative filibuster rule which is a position by the way he has held all year. once again speaks to his consistency in political and policy terms. good for him. save america,