sessions. maybe january 24th was the low. we'll find out. we'll see more on fed speculation over the next several days, but hang in there. that's the main message i'm trying to share with you. hang in there, don't panic, this is still the greatest money-making machine in history. i'm always telling lauren simonetti that. guess what? she's in for liz claman. lauren: and you always hand me the hour where anything can happen in those final moments. thanks, charles, good to see you. hi, everybody. inflation's the name of the game on wall street as the consumer price index hit a 40-year high. that is fueling this ugly selloff as investors worry that the federal reserve may rates faster than expected to tame runaway prices. the dow about to snap if a three-day winning streak aztec stocks get hit -- as tech stocks get hit the hardest. the nasdaq is down almost 2%, the dow 1.5%.

but inflation actually could be a good thing if you're selling high-end audio equipment. the ceo of sew nose how he raised prices to post a blockbuster holiday quarter. and cloud communication company twilio connecting the dots as the post-pandemic environment boosts demand for its connections on all and any platform there is. twilio's ceo is also here after that company's stellar report card. it is a fox business exclusive. i'm lauren simonetti, i'm in for liz claman. markets did go positive barely today after nose diving at the open following that hot cpi report that came in at 8:30 a.m. investors just throwing in the towel with the dow down more than 500 points, the low of the session, down 542. so we are just about there. well, here's the data that investors are responding to, and the fed will respond to, consumer prices for the month of january posting the largest annual gain in 40 years.

that increase led by soaring prices for rent, for electricity and for food. overall, headline cpi jumping 7.5% in january, the most since february of 1982. stocks sinking even further later in the session after comments from the st. louis fed president james bullard. he said he supports raising interest rates by a full percentage point by july 1. and with that, the 10-year u.s. treasury yield popped. it hint 2% for the first time since the pandemic as the market prices in now up to seven rate hikes by jay powell and co. this year with, get this, a 95% chance for an aggressive half-point rate hike in march, the next meeting. so we have ratings -- rates up, the nasdaq down the most, plunging 2% exactly at this hour, this final hour of trade. ask you know what? the tow would be down even more than the 500 point it's down now if it weren't for disney.

disney at one point was up 7%, it's now 3.75%. really strong quarterly report card. disney plus added nearly 12 million subscribers riding on the massive success of the movie encanto. so, yes, there is good news, but what really stole the show were their theme parks. domestic park revenue rose by $1.3 billion while profits rose the same. let me translate that for you. in this period of rising and steep inflation, revenue surged because park-goers splurged and disney's own costs laid low. with that, let's get straight to the floor show. larry shover, not all companies have that pricing power that disney seems to have as they deal with this eye-popping inflation that has no end in sight. do you see an end in sight, and i'm thinking of unilever today. they don't seem to have the pricing power that disney has. >> yeah. a lot of companies don't.

or if they have, they've been able to pass input costs to the consumer, but i'm not sure that that would continue. when it comes to disney if, you know, when you look underneath the earning report and see that parks and products and stuff, 7.2 billion, double quarter over last year's quarter, that's stunning. but can it continue? that's a one-off company that depends on people that are pent up fromming being locked none a pandemic. so, yeah, input costs, i still think we're going to see earnings growth in 2022, it's just that multiples will continue to contract because i don't think we can pass on the input costs to the consumer. lauren: and the theme is margin pressure. every company is feeling it, and only some are able to consecutively raise prices. peter, we heard from jim bullard. we heard that the market's pricing in the fed's going to go 50 in march. we get one more cpi print before

that. do you expect the data to show that inflation is easing a bit where the fed could say, okay, maybe we go 25? >> well, first of all, inflation is going to get a lot worse. and if we still measured inflation the way we did 40 years ago, it'd be 15%, not 7.5%. and the rate hikes that they've proposed are completely inadequate. in fact, the fed is intending to pursue an accommodative monetary policy. even if they raise interest rates to 1 or 2%, that is highly accommodative. that's the same type of interest rates they had when inflation was below 2%. you've got inflation at 7.5% even the way they measure it and rising. the only way to put out this fire is to have positive, real interest rates. the fed if needs to get above the inflation rate. we're not even going to get close. so they're going to pour gasoline on the fire, and so the entire time the fed is inching up rates, inflation is actually going to be moving higher. inflation's going to be worse in

2022 than it was in 2021, and real interest rates are going to continue to fall even as the fed raises nominal rates. lauren: so, peter, then what happens to the economy? >> the economy's in a lot of trouble. it's massive stagflation. and the problem is people still don't recognize the box that the fed put us in. because there is no interest rate that the fed can, you know, can put to fight inflation that the economy can withstand. if the fed has to fight inflation, we not only have a massive recession and a crash in the stock market, real estate market, but we have a much worse financial crisis than the one we had in 2008. see, the reason the fed if pretended that inflation was transitory when it obviously wasn't is because they have no ability to fight it. and now that they're no longer pretending that inflation is transitory, they're pretending that they're going to fight it when they can't. lauren: so this can get really ugly, is what you're saying. larry, do you agree? >> i think peter made some good points but, yeah, i don't agree

per se in the sense that i really do believe this is pandemic-related. if you remember before the pandemic, we were in a decade if not more of lower for longer, ask maybe it was partly fed-induced. but i also think it's the advance in technology. you have an aging society, different changes in society itself that are just causing things to be cheaper. and so we're just not used to this kind of inflation. this is a spike. i don't think the fed is behind the curve. i mean, today you have to bolster the argument for 50 basis points in march, but i'm still not in that camp. i think they're going to have room to raise rates in between meetings, so i don't think we're in the dire straits that peter thinks we are, a although his points are well grounded and i've heard them before. lauren: so rates rising even in between meetings, you think that's completely on the table? and would you -- i'm assuming you'd even recommend that, peter. >> i mean -- >> well, they need to raise

rates right now. they need to stop quantitative easing. they need to start tightening and shrinking the money supply and removing all this liquidity. the ten years of low inflation that we had, we're about to pay the price for that because the fed kept creating inflation, printing money and staring at the broken cpi and assuming that because the cp if i wasn't having a reading that was above 2%, that they had the green light to create more inflation. well, it works with a lag, and now we're catching up to all the inflation that we created over the past decade, and it's just starting to take hold. and we really dialed it up starting with the pandemic. that was the worst possible combination of monetary policy because as we ordered people to stop working and people went home and were no longer producing goods and services, we gave them additional money to buy the stuff that nobody was producing. so we had even more money chasing fewer stuff. we have an inflationary if tsunami, and we have barely even caught up to that. this is just getting started.

you know, unlike the 1970s where we were ending inflation, we're just getting started. and the fed is at zero. lauren: yeah. >> we have so much debt, we didn't have all this debt in 1980 when paul voc iser allowed interest rates to go to 20% -- paul volcker. what would happen to the economy given all the debt that we have if interest rates even went to 10%? what about 5%? we couldn't even handle 2.5% in 2018, and the economy's in much worse shape now with a lot more debt than it was then. lauren: yeah. i know, we're talking around getting to 1%. larry, gas up 40%, used cars up 40%, appliances up 10%, food up 7%, the most since 1981, and rent, which is a third of kpi, up -- cpi, up about 3.5%. those numbers are higher than that overall cpi print of 7.5%. so how bad is inflation really, and do you think now with this

selloff that we're getting today we're starting to see rates going up, that mentality, priced into the market, serving -- giving fed flexibility, basically, to hike, hike, hike and hike? >> yeah. i think it's also testing the will of the fed. can, you know, these kind of rate hikes, can the equity market actually sustain them. and i don't think the fed is particularly concerned at this point with financial conditions the way they are and the equity market is way it is today. i still think that a lot of these subsectors definitely were a little scary to read, but used cars, the lowest expansion since september. it's starting to cool off, ask new cars were basically unchanged. and hotels were actually down. so there's some good news in it, and perhaps i'm only looking at the bright side of things -- [laughter] pre-pandemic we didn't have this nuance. and peter is right, there is a

savings glut. we can't get money -- [inaudible] to move, but i don't think that's the problem of the fed. i think the fact that we're at a point now where the private sector can't multiply capital fast enough. lauren: yeah. >> so it's the public sector that's going to have to do it, unfortunately -- >> there's not a savings glut, there's not a savings glut, there's a debt glut. that's the problem -- >> oh, yeah, yes. yeah, but, yeah, but -- [inaudible conversations] lauren: peter, finish your thought. then, larry, you can respond. >> she said that -- [inaudible conversations] >> let me, let me -- lauren: all right. >> yeah, rent, rent, according to the figure you just gave, rent is up 4%. rent is up three or four times that much. the government is lying about rent. that's a third of the cpi. they're using owners and corporate rent. of that number doesn't exist. nobody pays that rent are. if the government used actual

rent or home prices, the number would be much pie -- higher, and that would reveal a much higher increase to the cpi. there is no way you can fight historically high inflation with 1% interest rates. 1% interest rates was the rate that alan greenspan swept rates to in 2002 to stimulate the economy after the, after the stock market bubble popped and we had that recession. you can't fight inflation with stimulative monetary policy. you need restrictive monetary policy. and no one's even talking about making money tight. all they're doing is talking about making it less loose -- la. lauren: all right. >> -- and you can't fight inflation -- >> peter, larry, we do have to go, but i think we agree we have a big problem, and the solution is an unpopular and political one. gentlemen, thank you for the time. i've got to say, maybe we were good for the markets because the dow's now down only 453 points. i know, i'm being optimistic. larry's smiling. getting that a from you, sir.

breaking news, prime minister joe biden is expected to depart to virginia after delivering remarks on his administration's work to lower the cost of health care. that's expensive too, particularly for working families. edward lawrence joins us live at the white house with the recap. >> reporter: the president's pushing more spending to lower the cost of health care, including prescription drugs. he's also pushing programs, spending on more programs that would expand the capacity of the economy, so he says. now, the president not specifically talking this inflation number, but this is what he said, listen. >> everyone has less money in their pockets today because of high drug prices, drug costs and health insurance. and it's more expensive for everyone. >> reporter: and the white house shifting blame for the inflation over to the federal reserve. the fact sheet statement for this visit, this is what the president said. quote: president biden plans to start with respecting -- start with respecting the federal reserve's independence to keep elevated price increases from

becoming entrenched. now, he's making the case to voters that he is working out the issues in the supply chain. those are also contributing to inflation. he's also pitching that social spending package that he says will lower the cost of childcare for people. he's not talking about inflation, just lowering the cost. now, we talked with the ceo of a utility company, southern company, thomas fanning. he's also a former atlanta federal reserve, he advised for the chairman of the board there. he was very clear about what happened if the president gets all his spending through congress. listen to this. >> because of supply and demand issues, we've seen inflation rise up in a big way. this is no question though that more government spending adds fuel to the inflation fire. we need to keep that as low as we can, and when we're going to do new programs in the government, we need to pay for them in a realistic way. >> reporter: and finally, the president also blamed corporate agreed for the inflation that we're seeing.

lauren: edward lawrence, thank you very much. coming up, the hybrid work environment making it harder to connect with the office, home and customers many, but twilio is making it easier. its stock is popping after its quarterly numbers. the twilio ceo straight ahead in a fox business exclusive. and let's check the big board. do you want to? yeah, it's bad, but it was worse. the dow is down 456 points. the nasdaq down 246. that, too, coming back a little bit. "the claman countdown" coming right back on this cpi thursday. ♪ ♪ we gotta tell people that liberty mutual customizes car insurance so you only pay for what you need, and we gotta do it fast. [limu emu squawks] woo! new personal record, limu! only pay for what you need. ♪ liberty, liberty, liberty, liberty. ♪ you're a one-man stitchwork master.

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lauren: it's still earnings season and, oops, affirm came out early. okay, so shares were halted moments ago for volatility, and now they're down about 14% after affirm, which is a fin-tech, accidentally tweeted their results a bit early. they said their second quarter revenue was $361 million. that was better than expected, however, the buy now, pay later company -- very popular -- they did report a loss that was wider than expected. investors are responding to that. let's take a look at twilio surging after a better

than expected scorecard yesterday. the stock up 3.4%, that's a big deal in a market that is selling off. the cloud communications company reporting a hoss of 20 cents per share and revenue of $842.7 million which is up 54% from last year. so what is twilio, a leading customer engagement platform used by thousands of companies like coca-cola, lyft, airbnb, ebay and twitter to build unique, personalized experiences for their customers. right now we have the ceo in a fox business exclusive, the ceo, jeff law lawson. first of all, congratulations. you need to explain exactly what your company does. >> twilio's a platform that allows companies to build better relationships with their customers, and in particular b to c companies need to do two things well to earn the repeat loyal business of their customers. number one, they have to understand who their customers are, and that's data.

and number two, use that data in every contact with their customers. and twilio is the leading customer platform if called segment and text messages, voicemail a, video, chat can more, and we're bringing them together to create a platform unlike anything else that's out there. our goal is to enable every company that's out there to go build great relationships with their customers and earn the repeat, loyal business from those customers over a long period of time in this digital economy that we're in. lauren: and that sounds challenging with remote work being all the rage. [laughter] and he laughs. >> well, or certainly the pandemic has created a number of excellents to the whole -- accelerate rants to the whole digital transformation that's been going on for the last two decades, and the pan dem has accelerated. that think about the trends of more e-commerce if than before, more food deliveries, more suchside pick-ups -- curbside

pick-ups, more telemedicine, and these are all trends that twilio's helping to power as we help companies move to digital workloads that are often more efficient, make happier customers and in the course of the pandemic have been safer. but as we exit the pan a demick, hopefully soon, what you start to see is this is not a change in, like, how companies are doing business. this is just an acceleration of the digital transformation that's been going on since the internet really started changing everyone's business 10, 20 years ago. lauren: but you still reported a loss. if you could speak to that and maybe look into your crystal ball, when are you going to report some profits? >> we've been telling investors for a while that we see a generational opportunity ahead to really reinvest a software stack that companies use to build their business and build those customer relationships and grow their top line. and so we've been investing quite heavily in this generational opportunity that we see. but now that a we're at a $3 billion run rate business, we've

been growing incredibly fast if, we think now is the time to start focusing more energy on the bottom line, and so we did tell investors that starting in 2023 that we are going to show a nongap profit, and we think that's the right thing to do with the came we're at. we've invested a ton in this enormous opportunity, we continue to believe that we are going to grow at an accelerated rate are, 30% annually for the next three years, while start ising in 2023 showing a non-gap profit. we think it's an opportunity to make sure we are running an opportunity that shows the discipline that everybody wants. lauren: and, jeff, i have to say your passion really comes through. congratulations and thank you. jeff lawson, ceo of twilio. inflation will be an uninvited guest at your super bowl party this year. the cost of wings, beer and guacamole through the roof. madison alworth is going to have a we pregame party review for us. and first, the dow still sharply

lower, now down 515 points. so the intensity of this selloff continues. "claman countdown" coming right back. ♪ ♪ the journey is why they ride. when the road is all you need, there is no destination. uh, i-i'm actually just going to get an iced coffee. well, she may have a destination this one time, but usually -- no, i-i usually have a destination. yeah, but most of the time, her destination is freedom. nope, just the coffee shop. announcer: no matter why you ride, progressive has you covered with protection starting at $79 a year. voiceover: 'cause she's a biker... please don't follow me in. i'm greg, i'm 68 years old. i do motivational speaking voiceover: 'cause she's a biker... in addition to the substitute teaching.

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♪ lauren: tree days away from super bowl sunday as the los angeles rams and cincinnati bengals do their walk-throughs in los angeles ahead of the big game, and the clock is ticking for your big super bowl lvi party foot shop, and this year it's going to cost you. madison alworth is live this new york city with how inflation, madison, became this uninvited guest that just won't leave. you've got a lot of wings there. >> reporter: it's just -- i do have -- these wings right here, that's a great question, how much does a wing set like this cost at the restaurant? >> around $20. >> reporter: around $20 for these wings. prices have gone up, lauren. wings in particular, they're up 53%.

if you can imagine that. in one year, these wings cost 53% more than they did last year. food is, of course, one of the big contributors to the cpi report today. it's not just wings, everything on your super bowl spread is going to cost you more. first up, soda. soda's about 5% more this year compared to last year. then when you look at meats in general, that's up over 13%, and chicken up over 9%. but like i said, certain items within chicken like wings, that's up as much as 53%. when you look at numbers like that, restaurants like the one i'm standing in the right now, dan ask john's wings, they have no choice but to increase the prices. they sell a party package for super bowl, 50 wings, last year, $65. this year, $99.99. and despite that huge increase, it's still not enough to offset the increase in costs. they're taking home less of a margin. when i asked the owners why that it didn't increase it more, they

told me they couldn't stomach charge aing customers more than $100 for 50 wings. take a listen. >> we're not going to make a social media post that says here was our previous cost, and here's our current cost and you figure it out, kind of thing. we sort of have to have that long face, and they're like, hey, we know you don't want to increase the price, but we have to to stay open. >> reporter: we've now hit this highest inflation rate, and when will demand die off a, when will it be too much for the consumer? doesn't seem it's yet that point because they've prepared 50,000 wings for this sunday, and they are nearly sold out. so people, despite it being a lot more in cost, they're willing and ready to eat those super bowl wings. lauren? lauren: so the cure for higher prices is not yet higher prices, but we're getting there. madison alworth, thank you so much. we have a fox business alert. earnings front and center, shares of twitter, they are -- i think they're down.

there you go, yep. down just 1%, hey, that's not that bad. the social media company announced a new $4 billion share buyback and their -- they missed estimates on revenue of 1.57 billion and monetizeable daily active users of 217 million. okay, uber shares are down. they've been all over the place. they're now down almost 6%. they were up about 4% earlier. they were halted, started trading again. i've got to tell you, the news isn't all bad here. revenue climbed 83% in the quarter thanks to more ride and food delivery, and management expects to be cash now positive by the end of this year. coca-cola reported quarterly numbers that topped expectations. however, it issued a weaker outlook predicting that higher inflation would continue to drag on earnings throughout 2022. much the same as pepsico. earnings beat and a warning of

inflationary pressures from rising transportation and also the cost of packaging. those stocks are trading in opposite directions. the dow component, coke, is the winner, up preponderance p -- .7. i sound like a broken record with all this inflation talk. the owner of kate spade, tapestry, beating estimates on both earnings and revenue. they went ahead and raised their full-year guidance on rising demand for luxury goods. that stock's not moving, dead flat right now at $40.70. canada goose is moving, it's down 16%. it earnings fell below forecasts. they make expensive winter don'ts. they cut their full-year forecasts, they said covid-related instructions d restriction impact some of their gear. and who said the supply chain tangle is a bad thing? sonos says it actually helps them turn it up to 10 in their quarter wily report. the sonos ceo explains in just a

few moments. the nasdaq is now down 2.2%, the dow down 1.5%. broad selloff, all sectors town sharply. the rate sensitive ones, utilities, real estate and technology, down the most. "claman countdown" coming right back. ♪ ♪ this mom's one step closer to their new mini-van! yeah, you'll get used to it. this mom's depositing money with tools on-hand. cha ching. and this mom, well, she's setting an appointment here, so her son can get set up there and start his own financial journey. that's because these moms all have chase. smart bankers. convenient tools. one bank with the power of both. chase. make more of what's yours.

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♪ ♪ lauren: just want to do a market alert right now. the dow is pushing a new low, down almost 600 points, over 580 at this moment. but not sonos. the smart speaker company, stock's up 4.75% on a terrible day for the overall a market. they had a really great report card. they turned in a record $664 million despite supply chain disruptions and product if short ams. the ceo, patrick benz, how'd you

do it? >> we were able to really successfully navigate what i say are the most challenging supply chain conditions i've seen in my entire career. we were able to do it by really, you know, our team's resiliency kind of navigating all the day-to-day challenges and a whole bunch of reengineering on our side to actually get different components, reengineering some boards and making sure that we could deliver as many products as possible to our customers. so i am so happy we were able to get more than we had anticipate into our customers' hands. but the other thing, lauren, is there's a lot of customers still waiting for their products or we've got a big backlog. we could have sold a lot more in the quarter. right now it's just supply-limited. consumer demand is strong. lauren: wow. i'm imagining, you know, the pandemic brought forward sales, people were home and said, okay, let's upgrade. but you've also raised prices, and you can tell he how many times and how many more times you're going to continue to do

that. at what point do you say we really can't do this to the consumer anymore in. >> well, i think the world moves kind of in unison on some of these things. as we look at higher component costs, obviously, there become other levers that start moving in the economy x these things start evening out over time. we have a strong consumer, we continue to see that. and i think the other thing is, you know, the way our model works, our business model's quite different than a lot of the consumer electronics companies out this that are kind of a one and done model. we have a model where existing customers are coming back and buying more every year. last year 45% of our sales went to existing customers adding to their system, and they're telling their friends and family, so we're getting new customers as well, and then they add more over time. so we have a real fly wheal that is pretty -- fly wheel that is pretty you week. -- unique. lauren: do you see this getting

better? >> is the -- the supply chain is definitely getting better, still hajj challenging. -- challenging. it gets better from here. lauren: so the worst is behind us. you optimistic looking forward. i think that's what a lot of people have to hear right now. i'm not convinced. broad array of data, now we have truckers at the northern border blocking some of those supplies that are coming from canada to the u.s. i mean, i'm optimistic that you see is it getting better. >> well, i think, you know, every company, right, has a different set of supply chain challenges. there are always supply chain challenges. i think one of the things that happens is that over the pandemic, clearly it's become kind of a headline issue. but companies like ours are dealing with different supply chain issues all of the time, and we have an amazing team that deals with that. it's really become a headline issue in this period, but our team's done an incredible job navigating it really the entire pandemic to deliver as many

products as we can to customers which is the key thing. and i am optimistic that the worst is behind us and we continue to move forward from here. rawrp lauren are you ready to make an acquisition? >> you know, we make acquisition ises from time to time, we did a couple last quarter. we have a strong balance sheet, 750 million. after this quarter we have no debt, so we're definitely on the lookout for companies and technology. we'd love to add to the mix. stuart: lauren: you acquired t2 software bluetooth, does that mean we can see headphones in the near future? >> we don't talk about our product road map. we do have two blue--enabled products -- bluetooth-enabled products which are great as people start to leave their homes and go out into the world. but, you know, we're adding amazing talent both hiring a lot of people and acquiring some that are going to help with our product road map. lauren lauren i'm going to take that as a yes, patrick. you can tell me the i'm wrong,

but that might be an item under the christmas tree in 2022. what is the product right now that customers want the most that you just cannot get enough of? >> our arc sound bar is definitely, you know, one of the hottest sellers that, you know, we're having a hard time getting to all the customers that want it. so that's definitely a big one. it plays into this theme of what we call hollywood at a home, you know, all great content from netflix, disney plus, all these -- everybody's trying to listen to that in great audio, and there's such amazing soundtracks, and that one is probably the toughest one to find right now. lauren: my father calls these high class problems. sounds like you've got one. patrick spence if, thank you for the time. >> thank you. lauren: gearheads geared up as the chicago auto show goes full throttle this year. we're headed to the windy city to kick the tires of the sweet rides soon to roll ounce the dealer lots. first we check the big board.

i almost don't want to do it. yep, dow is down 583 points. this is a severe selloff happening as the price of everything, the price of life has gone up dramatically, 7.5% in the month of january. "claman countdown" coming recenting -- right back. ♪ ♪ new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. (thunder bashing) - [narrator] we all get hit by the storms of life. for troy conquest, his storm hit after coming home from serving his country as a marine. - i had noticed my legs were swelling,

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♪ lauren: we've got 13 minutes to go, and this selloff is intensifying. the dow is now down 627 points. the s&p is down 2.1% or 97 points and the nasdaq is down 3.5% or 351 points. we got that inflation print before the market opensed -- opened. the fed has to do something about that. now citigroup says they see a 50

basis point hike likely happening in march, and i think that's where the fed watchers are as well. you know, you can make the case that the march hike is baked in. are they going to start to hike rates in between meetings in nobody knows, but this is a problem, and the market is down because of it. we do have breaking news to bring you. speaking of inflation, this could make it worse. the ottawa police chief says they made 25 arrests in their a policing on anti-vaccine mandate protest, freedom of choice protests in the canadian national capital as windsor's mayor says police are prepared to physically remove protesterrers who have blocked a vital u.s./canada trade route that messes up supply. that makes inflation worse with. now, the common straights by the decade item -- demonstrations by the canadian truckers are forcing some auto factories to show down. the two key bridges that lead from ontario to michigan,

chrysler parent she land discut short their second shift at their windsor plant while general motors with us forced to cancel two shifts at it michigan plant. ford forced to cut back too and toyota suspending production at its ontario and kentucky factories through saturday. with the rest of the market, you can see the automakers are down. toyota down the most at 3.5% today. well, the disruptions adding to the problems caused by the chip shortage. with new car prices up 12% last month from last year because of this tight supply, that is why organizers of this year's chicago auto show believe the exhibition is even more relevant now. the show offers visitors the hasn't to see a varian -- the chance to see a variety of vehicles all urn one roof and then a chance to test drive some of the hottest cars. grady trimble is there. he's been driving all day. anything for us, grady? >> reporter: hey, lauren. so where else can you see this

many vehicles in one place, and that's the point that the organizers here are selling, is that if the dealership you went to doesn't have exactly the vehicle you're looking for, you can come here and see hundreds of vehicles from various manufacturers and maybe find something else that might suffice. something you might be interested in, electric vehicles. and we are seeing a lot of them at this year's auto show. we've got james bell here with the new kia ev-6. some people are still skeptical of electric vehicles. you can drive a lot of them here. i know you've got the test track over there. make the case, because this is where your company -- >> this is my chance. this is a good one. it really is about giving yourself a chance with a lifestyle. once you have that vehicle in your home where you -- how many times do you have to, you know, drive home at the end of the day thinking, oh, i really need gas, i'll get it in the morning, and and then wake up the next day, oh, i need gas. all that pressure's gone.

the idea of leaving your home with a full tank of gas is a very luxurious thing. so that's the biggest part. the second biggest part is the actual driving experience. they're quiet. they're fun to drive. our ev-6 is a rear-wheel drive car. it drives as hard and as good as it looks. >> reporter: and this is just the beginning. kia recently announced they're all in on electric. >> absolutely. this is what we call our plan s strategy which is plan shift. we're moving our entire strategy away there gasoline-powered all to electric, and by the year 2030 -- i'm sorry, 40% of our cars will be electrified -- >> reporter: at 20240 -- 2040, automatic way. >> yeah. >> reporter: we might see something hike this, the ev-9, i've got to tell you, this is one of the coolest cars on the floor here. >> i'd have to agree. if we made a vehicle like this, it actually would use the same platform, the same battery pack as on the ev-6 that you saw a

moment ago. it is a thing we could do if we wanted to, so we love to bring it to the auto show and let people look at it and have positive reactions like you just did. >> reporter: so, lauren, i think that might indicate something like that could be coming in the future. a lot of evs off in the distance, the new hummer ev pickup truck. they only make up about 3% of all vehicle sales, so there's still some public adoption that they need to get around if the they're going to sell these on a mass scale, but people are coming around to the. >> of electric vehicles, and the automakers, they're making them. lauren: grady trimble, thank you very much. and with the nasdaq still struggling to come out of correction territory, it got worse today, today's countdown closer has one etf to help you capitalize on big tech without the exposure to some of those hardest-hit stocks. let's check the nasdaq, down over 2%. the dow is down 566 points. "claman countdown" coming right

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call 1-800-miracle right now and experience a better life. ♪. lauren: we got about four minutes left, folks. it is pretty ugly. the dow is down, session lows. off session lows. the dow came back a little bit. down 490 points. it had been down 667. take a look at broader market t had been down 102 just seconds ago. nasdaq down about 284, 100 points off its low for the session. two year, 10-year treasury yield spikes above 2%. i got it, there you go, first time since august of 2019. that is the market performance. looking at the biggest losers on the nasdaq. these stocks are down, amd over 5%. ditto for qualcomm, adobe systems autodesk getting hit hard. the big tech has come up a lot

in recent months. it is too high for you. our "countdown" closer has an etf, more affordable to get the big tech exposure. crf, mutual fund research, todd rosenbluth. todd, thanks for coming on. start with one of your etf picks why do you like it? what are the top holdings? >> it is sector neutral. owning companies like home depot, johnson & johnson, nvidia the top 10 holds, instead of tilted toward defensive sectors missing on up side. it gives you broad diversification. that is why we lock it. met at that facebook is there,

it is top held holding am i correct. >> this is, meta has sold off. why the stock moved on. we think it us a broader portfolio diversified etf, if one or two stocks fall off you get the offset from the sector diversification. lauren: keeping meta in there with top holding? >> i'm not running etf. queer doing research on this. it is tracking underlying index from fidelity. we like the etf in part because of the broad diversification. we're not buying meta. we don't decide what goes in and out portfolio. lauren: what other etfs do you like here? >> tied to technology, pro-shares, s&p technology aristocrats etf, tdz. we like this because these are technology companies that consistently raised their dividends for seven or more years. that is a pretty long time.

that gives you exposure to microsoft, apple, broadcom. lam research. lam research was added by the index provider proshares is using. this company increased its dividend tenfold in the last seven years. it is returning more of its strong free cash flow in the form of dividends. we think the etf, tdz, gives great exposure to high growth sector, with companies with strong free cash flow with that can hold up in strong interest rate environment we seem to be heading into. 10-year treasury is above 2%. if you get income from an etf, make sure it is growing as well, not just above average dividend yield. lauren: there is mixed consensus on the direction of the market. most people agree on the direction of interest rates. in a sense this market is attractive. you have a lot of opportunity on your bet which sectors will outperform. i give you the final seven

seconds, here, todd. >> high quality companies hold up better in a down market but also have the opportunity to grow heading forward. we think technology, high called companies like tdv are a great way to get exposure to it. [closing bell rings] lauren: bells ringing on wall street. a steep selloff in the final moments. "kudlow" is next. ♪. larry: hello, everyone, welcome to "kudlow," i'm larry kudlow. inflation today, bad news, much stronger than expected. rising .6 of a percent in january, 7 1/2% over the last 12 months. over the past three months by the way cpi has now hit 8% at an annual rate. so price increases and price pressures are getting worse, not better. grocery