summed it up best, better to be cruel than to be kind. it creates, you know, it creates situations where it makes our life harder, and it makes our life more discouraging. yes, we need a smart balance. we need to understand that the bounties of the earth are a gift. let's use them and appreciate the planet if at the same time. liz z claman, i wish i had better news for you. i'm waiting for the 4:00 bell. liz: wow. dow down 846 points? thank you, charles. [laughter] charles: you're welcome. liz: rotten egg. all right, when you pair a selloff with a friday, folks, it can be a dangerous combo. at lot of traders think it's too risky to go into the weekend with long positions, and yes, we are looking at the riskiest hour of the day. the major averages very close to session lows. the s&p 500 down tripping digits, down 107. everybody's down more than 2%. this is the worse than

yesterday's selloff sparked by fed chair jerome powell who telegraphed a much more aggressive fed hike plan. telecom, health care and materials in the deep end and, folks, interest rates are rising. the 10-year yield at 1 -- 2.90%. overnight it did touch 3%, okay? we are moving things around as we speak for this next 59 mintst. our -- minutes. our floor show traders are getting in front of t well. we're going to be looking probably at a pileon when it comes to the federal reserve. have been calling for this for quite some time. all right, a warning of price hikes due to high material costs and supply chain log jams, the biggest privately-held toy maker in america is making big changes. the laker of lol surprise dolls, mgm entertainment, the ceo is here in a fox business

excluive -- exclusive. he's about to reveal how he plans to change his entire packaging picture. right, the plastic and all of those things that all those toys come in. he's about to announce something really big on that. and one company planning to make fast food even faster, the ceo of fly tradition is here to tell us how his drones are ready to deliver from the restaurant to your doorstop in 5 minutes. it's a fox business exclusive, and you don't have to burn any gasoline, which is so expensive now. fox market alert, the storm unleashed by jay powell yesterday is still thunder-snowing on the markets as we kick off this final hour of trade. the vix hit by lightning as the fear index is surging at this hour. we've got it up 24%. remember are, yesterday at this hour it was up about 11%? i think it closed up 13%? so we definitely have a high vix here at 28.14. chairman jay powell endorsed the

idea of front-loading bigger interest rate hikes, specifically saying a 50 basis point jump in on the table for the may meeting and that we are, quote, really committed to using our tools to get back to 2% inflation. well, for those of you who are keeping score, consumer inflation stands at 85% -- 8.5%. that is, of course, a decade high. powell's endorsement got the wall street chorus going, and investors woke up this morning to a new call, here it is on your call, nomura expects the federal reserve to raise not by 50 basis points at the june meeting, but by 75 basis points. and not just in june, but at the july meeting as well. futures markets this morning were already there, they were fully pricing in an aggressive 75-basis-point hike, right now we are at a 94% probability that will happen. 50, that's already baked into

the may meeting. so why the market freakout? aside from powell, earnings are dumping hail on the equities outlook. less than 20% of the s&p ceos have reported earnings, but 3 out of the last 8 hours are not burnishing the quarterly picture. why we picked these names, well, dow component verizon is falling about 5.3 3% after the ceo gave a down beat annual profit pore cast and said these are levels of inflation we've never seen before in the wireless industry. and he also said it's really hard to predict how the cell phone carriers can adapt to that. keep in mind, verizon's still paying out a 4.7% dividend. it should be more attractive ott a day like this. gap. even $240 yeezy gap hoodies can't help. quarter sales will be down 10%. the ceo of its old navy division departing as the lower priced retailer has not been able to

capitalize on bargain-focused customers, and the company will be forced to start discounting merchandise. hba, you'd think hospitals would do well with covid cases still growing, but hca health care shares down 22% a after of the hospital operator cut forecasts due to inflation and high labor costs. so when companies that should have been doing well even under really bad circumstances are falling and the dow now down, check it, 875 points, let's kept right to our floor show traders. the man who this morning coined the name hurricane jerome, sarge guilfoyle is here along with fitzgerald group principal, keith fitzgerald. sarge, you believe jerome powell lashed on investors. >> well, he had to. i don't think we as a group were quite on to how aggressive the fed wants to be. i think we baked in the 50 points in may, nobody really thought they'd go 75 points in

june, nobody had 50-75 points in july, now the futures market in chicago has all of that, plus another 25 each month after that. so now probably too much tightening is baked in. almost $9 trillion worth of balance sheet, and a lot of it's going to have to come off, and they're going to be aggressive -- liz: okay, these are all things we know. you are absolutely right, the market should have been ready for this. in fact, it was bank of america months ago there are going to be seven rate hikes this year, and everybody said, no way. they are right, they are ahead of that. nomura's correct, most likely. but now we've got the s&p down 109 and, sarge, i mean, this is -- i'd say this is a pretty significant selloff with the nasdaq down 310 points, and we don't see bar gain hunters out. -- p. >> no, we don't. it's not the capitulatings but it's the panic phase which comes just ahead of it. and i don't know how long this

is going to take, but we've entered into the not last stage of the selloff, but the next to last stage before we can bottom. we don't know how far and how aggressive monetary policy will be able to be implemented, so we really can't tell yet. plus, we don't know how the war in europe plays out, how covid in china plays out. there are so many factors that are really working against us,s i can almost assure you there will be a recession global arely later this year and in the united states in early 2023. liz: queer going to ask -- we're going to ask brian with us berry when he gets in front of the cameras. keith, i know you are going to rain a can of whoop, you know what, right on -- >> yeah. liz: -- the ped. but hold back for a minute if you can, keith. we have the dow now falling below 34,000. the russell is just getting crushed here, down 2.5. everything's down 2%. we just showed the dow leaders?

there aren't any leaders. there are just less worse numbers here. why aren't you, or maybe you are, picking up some bargains right now? >> well, actually, to the sarge's point, i am picking up some bargains. so, for example, i've had it with disney, like a lot of people. i'm done with that, and i went after a company like nvidia. when stuff like this happens, one of the single most important and misunderstood premises of the market is that it's looking forward. so we have a saying in our office called when in doubt, zoom out. nvidia is in an industry that is growing by 6-8ing a year. that's the kind of stock you want to own no matter what happens today or tomorrow. and look at it this way too, liz, to the point that everything is is going to hell in a hand basket right now, people are changing the way they buy, the medicine, i haven't heard of one person who is giving up their iphone or ditching the technology that's going to make all of this

possible. so you've got to invest if you believe there's a future, because otherwise the world's a pretty bleak place. liz: by the way, i agree. nvidia is not going away, down 33% year to date. >> exactly. liz: can i bring up disney? florida governor desantis has just now signed that a bill into law stripping disney of its special governing status. disney, of course, had gotten into it with the state of florida on the so-called don't say gay bill, the parental rights bill, and so that did not work well. it became like fire and ice with those two. and we do have disney down about 2.33%. sarge, when you see that it, too the, is down 33% year-over-year, tell me what you're interested in at this moment. or do you wait million what you just said, and that is this is a panic phase and you wait for capitulation? what does that look like? >> i'll tell you flat out, i've been selling vid ya today -- nvidia, lam research, disney,

microsoft, a lot of stocks -- i'm not out of these names, but i'm lessening my exposure. what i've been grabbing, schlumberger, i like the ceo's aggressiveness, pepsico, kohl got, walmart. stocks that are less multiple so i can figure out my game plan for the day because really if you're a guy like me, you want to be a trader more than an investor right now because it's safer. liz: okay. and, keith, you have made this point in the past, abject bearishness is a sign of bullishnesses, isn't it? are people meeting to flip the narrative here and turn it over -- >> yes. liz: -- or say wait a minute? >> thank you for bringing that up, for remembering, you're very kind. yes, that is absolutely the case. we tend to do as investors exactly the right thing at the wrong time. people buy when they should be selling, sell when they should be buying. you don't go to a store when

they're having a 50% more sale, you go when they're having a 50% less sale. a company like invid ya is 35% off its high, but in a multitrillion growing market. apple is off its highs, and it can influence people's behavior. so the -- to the sarge's point, stuff that's stable, you can buy those companies and know that they're going to be there years from now. you can't say the same thing about a company like peloton. abject bearishness is a bullish indicator over time. liz: okay. i know that but, boy -- >> it doesn't feel good. liz: -- red on the screen, a little disconcerting. i would love it if you can stick close to your cameras, things are moving fast and pure yously. this fox business alert, we talk about the hospital operators, well, medical equipment makers falling. shares of intuitive surgical,

the minimally-invasive rebot, are down the after the company warned hospitals are tightening their purse strings. their costs are going up, labor, etc. during its quarterly report, intuitive blamed weaker demand for its robots on stiff hospital budgets. they did beat on profit and sales estimates, so piper sandler said let's not throw out the baby with the bath water,er upping the price target on the stock from 310 to 316. we stand right now at $a 253 and change. snap's early pop has now snap ised in half. it's not popping at all. it jumped 3.2% early in the session after the open but now down 1.25%. investors embraced the better than expectedded first quarter user growth of 18% year-over-year, but the company warned inflation, labor shortages and other economic challenges continue, and that

could hurt revenue growth in the second quarter. and, you know, we cannot talk social media without an update on e elon musk's twitter whyout crusade. here's some green on the screen people, twitter up 3.5%. business insider reporting musk has officially created three holding companies and sec filings confirm they have been established for his proposed $46.5 billion twitter acquisition. the filings refer to the plan as project x. now, that could have sort of a double meeting -- meaning. both twitter and musk may be making moves to coalesce his portfolio because back in 2020 he tweeted that, while tricky, he wasn't opposed to bringing his companies -- tesla, spacex, boring at some point, maybe twitter at some point -- and the umbrella business name would be, you guessed it, x. project x. all right. shares of the spac ding canningal -- digital world

acquisition corp., 8.33% to the upside. donald trump's new media platte form, truth social, it has now migrated to rumbles -- rumble's cloud platform. shares yesterday logged their second worst day for the company since announcing its reverse merger?rier in october. it's down nearly 20% year to date. both associated with trump's app are up as well. silicon valley bank's parent on track for its best day in two years. shares popping by 8.9% right now following feel that lahr earnings. the company reported adjusted earnings per share of $7.92. that's actually more than $2 higher than analysts were expecting. with gasoline prices so high and food delivery services slapping fuel charges on your burger or -- right? we know who you are, one drone

company is reviving and getting so excited, it's hoping to cut out the fast food delivery driver and the surcharge altogether. the ceo of flytrex is here to show us how he plans to fly the food from the restaurant to your home, he's got some big names as partners. it's a a fox business exclusive. with a loss of 793 points -- make that 742 points at the moment -- we're off the low of the session but just about 38 points above the 34,000 level. we are watching this very close toly, tick by tick. closing bell, 45 minutes away. "the claman countdown" is all over this selloff, so stay right here. ♪ ♪ welcome to allstate. where everyone saves when they bundle their home and auto insurance. isn't that right, frank? i saved 25%. booyah. you protected your casa?

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liz: breaking news, we are coming off the lows of the session. now, as you see, we're down 72 21 points on the dow -- 721. we do have the low a loss of 892, so it's a good amount we have pared off, but it's an ugly picture. 75 basis points would be too much, and it's the not really the right move, and she is a voting member, so at the moment

we do have it coming off the floor. s&p still down about 89 points. it's still a two handle, 2% loss. the nasdaq down 247. look at crypto, this is a route at the moment. -- rout at the moment. we do have bitcoin down nearly 3% at the moment. we stand at $39,607, so 42,000 in the republican, unfortunately, for those -- rearview mirror, for those who are bullish. etherium is below 3,000, litecoin down to 107.02. if you know, you're hearing a lot of people and a lot of ceos talking about inflation hurting hair earnings, well, the -- their earning, well harshest example has been oil and gasoline. crude oil is still high, 39% gain year to date. it's even worse for gasoline, if you have to buy it. gasoline prices are up 42% year to date. soaring prices causing more americans to think twice before

hopping in the car unnecessarily even if it's to go on a mcdonald's drive-through run because the french fries. i mean, admit it, heir the best. i mean -- they're the best. everyone's rethinking this. heir rethinking their budgets. is that giving flight to drone delivery? israeli drone service flytrex, a drone ownerrer hooks up your delivery, then launches the drones from a nearby parking lot which is usually about 1 mile away. the drone then flies autonomously, and when it gets to your backyard, and we'll find out whether it's in blue skies or even in bad weather, it then drops, as you see here, the deliverly via a cable cord. already partnering with walmart, chilis and just expanded to the dallas/fort worth area. let's bring in a fox business exclusive.

plytrex's ceo. anecdotal evidence, i am hearing from people who are absolutely thinking twice about driving when they don't have to because the price of gasoline is to prohibitive. we think hearing of earnings misses, depending on the cost of your service, i would imagine if it could be a tailwind for your business. >> hi, will liz. first, thank you for having us on the show. and, yes, you're absolutely right. the cost of on-demand delivery is to think abouttively expensivedded the. people are not aware of how much to pay for that service. you pay a few bucks for delivery, some chains pay up to 30% on the amount orders. it's just killing everybody. and drones are, they're going to be part of the solution, not a magic bullet. but with drones you can take the cost to down in order of magnitude. so that translates into a --

[inaudible] for everybody. pleasure. liz: i have so many questions. the cost, first of all, because -- [laughter] i certainly would hope that it's less than the cost of gasoline, this fuel surcharge that, for example, uber eats has imposed. amazon has certainly added a fuel delivery charge as well. tell me if yours is more cost competitive. >> if you think about it, we don't have to move a one-ton cow from one place to the next like happens with the initial on-demand service in the suburbs. a vehicle weighs roughly 30 pounds, it's 100% electric, so it's a lot more efficient an any service. liz: you're doing this in north carolina and the state of texas. you've got walmart, chil wily's -- chili's and el pollo loco, one of my favorites, on sunset boulevard. you know, i think these are

great partners, but you need to expand more quickly. when will you start to really scale up here? >> oh, we've got, like, a dozen more partners signed up. we'll be announcing them hopefully in the next few months, and we're also awaiting negotiations basically when you tell those guys that you can deliver their meals faster, meaning hotter, it's a really easy sale with those guys. we're very much dependent on regulations, and, you know, it's in everybody's interest to make sure that the skies stay as safe as they are today. are. liz: of course. >> the faa's taking a huge step forward with companies such as flytrex. it's not in the next six months, it's six years, but we're getting there, and later year we should be getting some of our national grade certification which we need that we'll be able to start getting this on a national level. liz: okay. i'm looking forward to my taco

being delivered by drone. we lo entrepreneurial stories like this, we wish you the best of luck and get to new york. new york, new jersey, your next two markets. >> writing it down. thank you, liz. liz: you've got it. yes, we have a market selloff. dow is down 779. next, brian wesbury has been saying that the fed was wrong on transitory inflation, just like we've been. he's next. ♪ ♪ like how i customized this scarf? check out this backpack i made for marco. only pay for what you need. ♪liberty. liberty. liberty. liberty.♪

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discretionary, things you don't nosily need but are -- necessarily need, that one is just getting crushed. it's down about 6%. at the moment we have mostly red on the screen, even gold is down. very few safe havens. and so at this point we have a situation where we are watching markets swoon. off the lows, but still dow down 763 points, the s&p down 95, the nasdaq lower by 266. russell, small caps getting hurt here, down about 45 if points. if we could, let's show the energy complex or least some leaders and laggards because in this will show you what's happening. the federal reserve chief yesterday, okay? so 24 hours ago, had come out and said 50 basis points were still on the table for rising for interest rates. okay, no market watcher participant should have been surprised by that, but they

were, so we had the selloff yesterday. today, they woke up, investors woke up, and saw that nomura securities is now saying 75 basis points for the june meeting. we still have the may meeting, but now 75%, but the market's pricing that in at the moment. more than 90% project of a 75% hike in interest rates to calm down the inflation, to destruct, to cause destruction of demand so that inflation cools down. we've got keith in the chair still, keith pitts gerald. now we see greens here. leasts there's some s&p winners. ea, electronic arts, is in the green, some of these other names. that kind of surprises me. >> [inaudible] liz: keith fitzgerald, are you there? okay. he just dropped. so as i continue to watch, we see that the s&p losers, hca holdings, we talked about them, gap, of course, intuitive surgical, da vida, the health care company, that's down 8.3

3%. and pvh clothing down 7.33%. we are 29 minutes before the closing bell rings. this could get worse, maybe some bargain hunters come in in the next 29 minutes. we are going to be watching this very closely. in the meantime, president joe biden in the northwest at this hour. he is expected to speak at any moment. we're going to take you straight to the white house for details on the president's earth day initiative, and will he say anything about spiking inflation and what it is doing to the stock market? closing bell now 28 minutes away. we are coming right back. ♪ ♪ ♪ ♪ we all need a rock we can rely on. to be strong. to overcome anything.

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president joe biden set to take the stage in auburn, washington, at green river college. the president is expected to discuss bringing down the high cost of health care and spiking energy prices. day two of his first visit to the pacific northwest as president. earlier in seattle the president was laze or positioned on earth day and his grain initiative. edward lawrence joins us more from the white house -- from the white house with more. >> reporter: and he sign an executive order talking about protecting forests. it would designate federal agencies to strengthen forest reforestation, i should say as well as the administration's planning to spend $162 million on forestry programs. the executive order also directs the state department to prepare reports on a whole of government approach to stopping deforestation. it also will employ nature-based solutions to combat the climate crisis, $2.3 billion spent under the bipartisan infrastructure bill for the u.s. forest service and interior department to

advance ecosystem resilience with no specifics on exactly what that is. the president, in signing this bill, says that he's doing it because he can. listen to this. >> the bipa partisan bill provides $66 billion, it's passed, $66 billion for freight if rail, $39 billion for public transit, $10.6 billion for clean electric buses and $2.a 5 billion for cleaner if arelies on my coast of delaware and out here for you all. this will take millions of cars' pollution off the road. >> reporter: you see him listing the other things host spending on, that that's a boon. could be a big deal for companies that get these contracts long term. but some republicans are wondering, hey, maybe this might increase inflation. the federal reserve fed chairman, jay powell, is talking about tamping down on that inflation as you've been reporting. listen who -- to what he he had to say about that. >> our goal is to use our tools

to get demand and supply back in sync so that inflation moves down and do so without a slowdown that amounts to a recession. that's our goal. and i don't think you'll hear anyone at the fed say that's going to be straightforward or easy. it's going to be very challenging. >> reporter: and he's looking at all of that spending, fiscal spending that the president wants to do and again, liz, as you said, we're waiting on president joe biden to speak again in washington before he then comes back to the united states -- back to washington, d.c. area. he's going to fly into philadelphia and then go on to delaware. back to you. liz: big day of travel, thank you. edward lawrence, check the dow, down 669 points on this earth day. the price of synthetic less -- resin is skyrocketing. could that be helpful for a cleaner planet? one classic american toy maker making changes of his own when it comes to packaging. the ceo to have the company that makes the uber-popular lol

surprise dolls and borates dolls is here live to tell us what he's doing to help the planet. ceo isaac lariona joins us next. closing bell 20 minutes away, we're coming right back. ♪ leveraging gold, a strategic and sustainable asset... the path is gilded with the potential for rich returns. you're a one-man stitchwork master. but your staffing plan needs to go up a size. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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♪ liz: all right, folks, just hitting the tape here, bed bath & beyond had been halted, it's all over the place, 11.8ing %, let's call it that at the moment here's the news, apparently -- according to the "wall street journal" -- bed bath & beyond's buy buy baby division has -- we

do have it up to 18.36, and that's important because it had been a roughed road. i'm just checking here, down 38% over the past year for bed bath & beyond. and basically quarter to date it had been down 18.9%, but at the moment it's erasing some of that, up 11.7, bed bath & beyond. again, it was halted, it has now started trading once again. all right. inflation, we have been talking about how it is playing into so many earnings calls that we are hearing from. well, as we look at the toy makers, we do know that hasbro has said it will raise its toy prices mid year due to supply chain problems, the cost of moving goods and, of course, the cost of materials. well, today -- of course, earth day -- the largest privately herald high make -- held toy maker, mga, in an effort to help

save its imprint on earth, itself most popular toy, l.o.l. surprise doll, that packaging is getting a green makeover. and, by the way, the toy itself, the once all-plastic ball which carried the doll, this was the number one selling toy over the past two years, is now going to be made of compostable paper packaging. so eliminating 3 metric tons of plastic which is equivalent to about 200,000 plastic water -- you like how i did that, acted like i did the math? [laughter] the toy giant plans to ship 65% or 45 million of its l.o.l. surprise line to sustainable materials by this fall. let us bring in the ceo of mga entertainment. isaac, big move here, and i want to just hit you, first, on of course what has been the rising cost of resin, which is a key ingrade cent in -- ingredient in

plastic. tell me the real drivers here. >> happy earth day, liz. liz: thank you. >> i want to show you something i just saw, which is very exciting. these mini bratz, they're coming to the markets. her so small and i'm so excited to show that to you guys. liz: how much? how much are they going to cost? >> they're going to cost $5 only. [laughter] good for inflation. but talking about, first of all, about these l.o.l. dolls, as you said, it's the number one collectible doll. they were made out of plastic, now we're going all paper. inside and out. liz: okay. we listened to the parents who were complaining about all the plastic, so we have gone to all paper. and 65% of the product will be all paper made out of bamboo.

literally, it grows everywhere. liz: well, can i jump in there? won't that then mean a bamboo shortage? i thought we wanted the green to grow. what is the plan to make sure this doesn't have a negative if imprint? >> very good question. the best thing about bamboo is that they grow so fast, and they're very, very strong and very, very sustainable. so they just grow, like, weeds. they're like weeds, they grow so fast. but also sugarcane, combustibles, paper. so were doing that, listening to the parents and grandparents who ask for this. these here, it's going to be at walmart exclusively. it is available now, and that is why because -- in 2019 can ask me, please, isaac, can you make these sustainable.

so it is a gift to walmart to begin with, but it's going to be later on for everybody. of. liz: isaac, do we a favor, i see somebody's operating the camera, and they zoomed in. can they zoom in again at the tiny bratz dolls that are going to be $5? and this is the first i'm hearing of it. you know i cover you guys close arely and watch you. closely and watch you. >> they're so small. they're finger size. look at the cost. so i'm -- liz: up a little -- there you go. oh. okay. >> they come in a a package of two, so they're $5 each, you get them for 10. so you get two, basically, $5 each. it's incredible. liz: okay. is there any move, isaac, because the last time you were on with us, you were really railing against the high cost of shipping because of the supply chain log jams. any loosen loosening of that, or are you still getting reamed on

the cost? >> well, we are getting reamed. it's down a little bit. it's now average 8900, it used to be 12,000 -- i'm sorry, $12,000 just same time last year. so it is getting better, but the supply chain situation is not gonna get better, liz, because take merchandise from china and have it in the stores in 21 days, now it takes 159 days to get in here, and that doesn't include all the lockdowns in china due to covid. liz: okay. >> that doesn't include what i think is going to be another headwind, the long shoremen negotiation happening in july. i hope they don't go on strike. liz: yeah. >> so that is so important.

if it takes 159 days for a toy from china -- liz: right. >> -- 80% of toys are made to go in the stores, theoretically all the owners have to be -- liz: gotcha. isaac, we got a major selloff. i know you're watching it just as closely. isaac larian of mga entertainment, i applaud you, my friend. so much for a fed head yapping away and saying, oh, we don't need a 75 basis point hike. guess what? we are back now down, we are hitting brand new lows, down 908 points at this very moment on the dow. again, what did i say at the top of the hour, folks? we have a friday mixed with a very nervous if market -- nervous market, and nobody wants to go into the week going long. s&p down 114. this is now easily the worst session of this month alone, and i believe going into the session

we were already at the worst session since early march. nasdaq down 323. i'm looking at my screens right now, and we see the volatility index is now gone from up 20% to up 23% at the moment for the vix index. crude oil, it fell today. and so did brent as well as arbob gasoline, etc. but we to have really -- do have a really tough situation right now for the bulls. eight minutes to go before the closing bell rings. guys, where do you want me to go? we've got to tell you about kohl's, that stock on the move. the bidding war for the retail giant, two new enentrant ises at this hour, simon property group and brookfield asset management reportedly expressing interest. kohl's down, brookfield down, simon property down 3.7%. very hard to catch a bid on just about any stock at moment. in fact, i really want to check, aside from bed and beyond which is still up 10% on the breaking

news we just told you, twitter -- yeah, still holding gains of about 3.7%. but this report about kohl's comes one day after the ceo said its adviser, goldman sachs, has engaged with 25 parties and has asked can selected bidders to refine their offers and to secure financing. no word on if simon property and brookfield have made a bid, butted today's countdown closer says, you know what? don't ignore real estate names right now, especially as we watch the dow. folks, this is serious. now we're well below 34,000, we're at 33,077, a loss of 915 points. portfolio manager at janusz henderson along with keith fitzgerald joining us once again. greg, real estate, just about everything's downed today, but why do you feel, if we do believe there may be some type of recession or the fed is front-loading high higher interest rates, that property would do better?

>> yeah. hi, thanks for having me. you know, i think we think about real estate, there's three kind of legs of the stool that we like to focus on which are dividends, diversification and dependable growth. each of those could be more or less interesting at different points in time in the market, and i think as we sit today the dependable growth piece is very interesting given what we've seen in earnings outside of rates. we actually continue to have a lot of confidence in terms of where real estate cash flows may go, and i think a lot of that ties into the conversation you've been having on the program today around inflammation. real estate tends to be a men fish oif -- beneficiary of inflation. liz: okay. nasdaq down 309. keith, at the start of the show we were down but not by this much. so so anybody who bought is now looking, oh, wait, it could have gotten it more cheaply. how is the market psychology at

this moment? >> well, you've hit the nail on the head, liz, it is all about psychology. if there's going to be a bid, it's going to come now because we're starting to see the buy programs flip. we're already seeing here -- liz: tell me, what are you seeing in the options trade? please. >> we're seeing convection. we're seeing it change. what that tells me is buyers are beginning to circulate. again, we've so the -- got big the tech earnings coming next week. i think this is about the fed jawboning 75 basis points, and it resembles the bond massacre of 1984. people done remember their history. it's been bad, but importantly, we saw that before a dramatic market rise. valuations are starting to look like 2009 to me, and we know what happened next. liz: greg, i'm still on a turn from keith, but white-knuckle ride. was this necessary? the federal reserve has been saying for a year that we did the not see inflation lasting, that it would be transitory.

this show constantly said -- and we're not even economists -- no, it's going to last longer because once you start raising wages, very hard to turn to those same people and say, you know what? give it back. we're cutting your wages now. okay, we knew that was going to be an issue. labor shortages plus labor supply issues and the cost of everything that goes into making anything, you just saw isaac larian of mga entertainment, the cost of packaging alone is getting nuts. mcdonnell's shares down .if 75 otter after percent right now -- quarters of a percent right now. we do have the 10-year at 2.9% and touched the 3 handle overnight. how does that work when -- sorry, rates are rising? i thought that was bad for real estate. >> yeah, i think that's the conventional view. but what we've seen this year and last year is real estate actually did really well versus

other types of assets in rising rate environments. and i think it has to do with, again, the durability of the growth in some of these companies. if you think about real estate, it's, you know, contractual income in a lot of cases it's the explicitly linked to inflation. i'll give a simple example, you know, if you look at how cpi is calculated, the single most heavily weighted factor is shelter. rent. and, you know, you can invest in that through apartments and through single-family rental homes, for instance. those buildings are full, they continue to be able to raise rents, you know, in line be if not above the overall cpi prints that we're seeing, and it's really a factor of supply and demand. you know, i think the rising rates question is an important one. you know, we're much more focused today on companies with strong balance where sheets. ly rez okay. we don't the want to see high leverage, but defensive balance sheets can work well in this environment.

liz: keith, the dow is down 964. we haven't seen a 1,000-point drop for the dow since, i believe, june of 200. -- 2020. who knows if we'll get there. it didn't help to hear fed members talking on other networks, you know? if people understand and they know that the fed's goal so bring down the inflation, so why is the market looking at this so negatively? i mean, demand destruction is needed to bring down inflation, is it not? >> there's no question that's the case. but what's happening today, liz, is something in the world of high finance that most people don't think about. a lot of these big money traders are leveraged up to their eyeballs, so this isn't about the economy going to hell. what this is about is big traders who are overleveraged faced with higher costs. it's like borrowing a house and having the interest rate go up, suddenly you own more money. they're simply getting off the gas. it doesn't help that the fed has been completely irresponsible. how these people have jobs right

now, i have no idea. transstory's the worst call probably in monetary history. they're going to be elect for new therms, and people are -- terms, and people are placing more confidence. it doesn't make sense. this is a time when you want to focus on great products, great companies and, importantly, great visionary ceos because they have to get through this if they want to have a job tomorrow. and as investors, that's something we need to pay attention to. liz: yes. i am praying to the church of keith fitzgerald on that. the worst call and, yes, ceos in the private sector have to have cash flow, they have to figure this out. folks, we are 7 points away from the dow losing about 1,000 points right now, actually -- well, let's call it -- well, we're about to go there, down 999 points -- >> there we go. liz: there we go. the dow losing 1,009 points. i want to thank greg and keith, we appreciate it very much. i do want to say i'm looking at

stocks here, big financials, all of them down. we have red on the screen for a lot of the retailers. insurance companies all in the red, refiners, all down. amazon, apple, all the big names losing at the moment as the bell rings. the dow closes, well, too close to call here but could close down about 1,000 points. we haven't seen that in a a while. "kudlow" is next. ♪ larry: hello, welcome to "kudlow." i'm larry kudlow. today is earth day. the reason you probably don't know about it is because you have to look long and hard to find any reference to earth day. non-coverage of this non-event we'll call it earth shattering. cnn is covering earth day, and