and grey, 518 ceo's have hit the door, they hit the bricks, that's a record right now, so i know you're suffering and i know a lot is incompetency at the top we have to keep making our voices heard in the meantime hang in there. we got your back you got one more hour of trading up so buckle up cheryl casone is in for liz claman, cheryl over to you. >> hang in there that's a good way to phrase this one, charles. good to see you, sir. so much for finding the bottom here, everybody. investors cannot find a target today, pun intended as retail earnings miss the mark, the dow and the s&p 500 and the nasdaq as you can see all trading substantially lower dow and nasdaq right now are flirting with session lows you've got the dow down at this point 1,145 points, you can't make these numbers up. that is a loss of 3.5% the s&p down 162 about 4%, nasdaq 4.69% to the downside, 562 those big mega cap technology stocks are

really getting slammed today. transports are down as well so here is what happened with target. they were really hurt by fuel and transportation costs. that's the retailer. they had earnings out this morning that really kind of kicked off a rough day for the markets but the same factors had the dow transports seeing most pressure this hour and as you can see dow transport s and here is the pressure down 7%, transports are considered a really good forward indicator of the direction of the u.s. economy. this could be the worst day for the dow transports since april 1. companies that are reliant on fuel moving products and people, getting hammered take a look at american airlines, avis budget, fedex, jb hunt, old dominion freight line, all of the stocks under pressure the biggest is av is budget and right behind it is old dominion freight line all as we see record high gasoline prices. or floor show traders are in

place assessing the damage today and then as consumer debt hits record levels we've got the lending club ceo here. in a fox business exclusive, how $15 trillion of debt come back to haunt borrowers if a recession is on the horizon. plus, the housing market seeing signs of cracking under the weight of high prices and rising mortgage rates. the ceo of angie is here exclusively to tell us if now is the time for sellers to pull that listing and schedule a consultation with the contractor hello everybody i'm cheryl casone i'm in for liz claman. well, these markets are really in rough shape today as you can see here going back to these numbers again the dow and the nasdaq are sitting at session lows, a lot of pressure here more than 4.5% sell-off for the nasdaq in particular, dow down 1,144 that is basically all new session lows down 1,169 at the bottom of the dow today.

yesterday, momentary gains were smacked down by retail reality. quarterly reports continue to be a big disappointment, lowe's and target missed estimates. at one point target was on pace for the second-biggest one day percentage decline since the stock debuted. lowe's shares, they were hit as hard. take a look at lowe's the stock is currently down more than 6% both major retailers say the rise in costs, sluggish sales are weighing on their profits. disappointment from recent earnings casting a shadow over the whole sector, we have more retailers coming out, folks. 90 of the s&p's 92 consumer discretionary and stable companies are trading lower today, and obviously you've got target leading the charge right now, down 27% the stock really has just not recovered from the pre-market losses from the morning after those earnings crossed. anyway the doom and gloom today is falling some somewhat ominous headlines from wells fargo ceo who said that yesterday, there's

no question of a u.s. economic downturn. speaking to the wall street journal future of everything festival charles scharf said while business and consumers are still strong, he believes it's still going to be hard to avoid some kind of recession. let's get to our floor show and experts tim, you know, this target news really hitting the sector. next week is another big round of quarterly reports for retailers. are we going to see more pain, do you think, in the retail sector? >> well it's certainly very possible but what i think is important on a price basis is to look at a lot of these retailers that have been hit hard, especially the last couple of days with a disappointments from walmart and target, and compare their prices to their pre- pandemic highs. now, one outlier today is tj max x. they reported earnings and the stock is actually higher today but it's actually still below where it was in january and early february of 2020.

so i'm looking at those pre- pandemic highs as a little bit of a barometer for how to gauge what the downside risk might be and not only some of the beaten up retailers but some of the other stocks in the market. >> yeah and scott shellady the energy story was the retail story today. in fact, brian cornell, the ceo of target on the conference call was getting really beat up by the analyst community on that call. at one point they said and this really surprised me. he said we underestimated by hundreds of millions of dollars what we were going to have to pay out for freight and transportation cost, and again, the stock is just really just cratering today. >> well, obviously, he's paying the price for that, but i don't think that if you really had a show of hands, there's a lot of folks out there that probably would have been in that same boat.

this inflation, this gasoline- diesel-energy situation has really cascaded and it's actually snowballed while its cascading and that's the big problem there. we're a ninth day in a row for record highs in gasoline. i expect it to go over $5 a gallon like a lot of folk do and maybe $6 a gallon for diesel so how is that going to look what's the retail landscape or our trucking or what's our transportation landscape going to look like when we start to see prices at that level? somethings going to have to break. we've given the fed a mallet to go into surgery with. they can't get this done by raising interest rates. i feel like the fed right now with their tools they can't get the car started so they pulled it over while they got out and checked the air in the tires. that's how it feels. it's not, they're not, what we're putting in the engine is not coming out in the exhaust, so i would say there's a lot of folks out there that got this energy price inflation thing wrong, the fed clearly did early on and i don't think it's really close to ending yet.

>> you know, tim, i mentioned too, just a couple seconds ago here and mega cap growth. i mean, you look at your netflix , apple, these are stocks that have performed so well last year that are really going to hit again today. as you go into this higher interest rate environment to scott's point about the fed and we know they are going to be raising rates again, it makes these names less attractive along with a lot of the cryptocurrency. that market is getting really hit, but do you see opportunity at some point, because a smart person that's watching the show right now is thinking do you know what? i'm going to look for an entry point into a name that i want to buy. >> look, you are definitely going to have value fund manager s crunching a lot of numbers this week for maybe to start to take some positions that they haven't had in the past on extraordinary value opportunities, even target, the stock is at these prices, probably trading around a 12 or a 13 pe. i would say that most retail

analysts and i am not one but i would say they would consider that to be potentially a very attractive entry point maybe to take an entry position, so i think that a lot of value, i would watch the value managers this week and look for stocks that might respond positively to even slightly disappointing earnings. >> well look, but tim, to your point we've got target up on the screen it's down $58 like a personally love my super target. i do these earnings every quarter in the morning before the market opens, and you know, i've said before, but it's amazing how one year can change the story for a company like target. maybe this is, to your point, an over-reaction tim and i'd also point out what about your dollars generally, your dollar stores, if we do go into a recession that's where someone's going to start shopping, and looking for bargains and they are suffering right now. >> you would typically think that the dollar stores and the

discount price clubs like costco and bj's would benefit if people were tightening their spending but those both dollar tree and dollar general are getting crushed today and they report earnings next week so i'll watch those stocks very carefully next week when they report and one of the other problems for target is just on a price basis. this stock was 125-130 and it's pre-pandemic highs it's still 155-160 right now. it had a monstrous run during the pandemic and even up until november. >> and they had their -- >> they handled the pandemic beautifully. >> as did walmart. their e-commerce game walmart talked about shaping up their digital sales, you know, covid was probably the best thing that happened to walmart. real quick, scott, last word. final thoughts on this market

right now. >> well, i think that the fed whether they like it or not, they are going to be destroying demand to get rid of inflation. that's really what i think the game plan is here. they might not be thinking they are doing that but that's really what we have to do. we have to destroy wealth to bring down this inflation problem which is really the biggest problem, we could always open up our own wells and our own drilling and that would automatically take the heat off right away but we have to destroy some of the wets and demand here in the short-term to get the inflation under control that's what they have to do so there's more to go. >> the biden administration is not interested in anymore domestic production oh, but let's drain the spr, scott shellady, tim anderson guys thank you very much appreciate it. what a day for these markets folks, we've got this fox business alert for you right now bucking the retail sell-off is the parent company of tj maxx. tjx is up more than, well it was up about 8% earlier. it's now up about 6.6%.

they reported a first quarter number, their adjusted earnings was a beat. they said they expect same-store sales growth of 1% to 2% for the year a good forecast. the discounts also saying that price increases helped counter a hit from rising costs, which all the retailers are dealing with. a bullish note for brokerage ber inberg is not helping the chip sector, saying that the semiconductor industry is unlikely to get in the mid-term, that in turn will benefit chipmaking equipment makers like asml and applied materials. separately, susquehanna cut their price target on nvidia to 280 from 320 citing valuation concerns amid a sell-off in the semiconductor sector. nvidia expected to report their quarterly reports may 25 but as you can see , nvidia in particular that stock is down about 6.6% right now. let's take a look at zoom. boy, what a story and how its changed. shares of this video conferencing platform, this is video communication, as you can

see down 6.5%. ubs cut the price target on the stock to 100 from 130. the ubs says zoom did benefit from work-from-home and growth may just slowdown, now that people are returning to the office. zoom reports their first quarter earnings may 23. now let's go from work-from-home to work out from home. ubs also cut peloton price target to $13 a share from 30 citing lower quarterly sales and weaker than expected profitability. ouch, peloton right now it was down a little bit it was down more earlier down 6.8% now but over the last year, peloton is down about 84% they also had some issues with the tread and that's kind of plagued them with safety problems. all right, well let's talk about something a little bit different here. love it or list it? what is the right decision as home prices hit records, and mortgage rates rise with the fed we've got the ceo of angie here

exclusively to tell us if remodeling your home maybe a better idea as the seller's market shows signs of cracking. back to the big board, it's hard to look away from this , folks but we're going to take you through to the end in 45 minutes when the bells ring dow down 1,141 points, that is a loss of 3.5%. the "clayman countdown" is coming right back. 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.

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and the lowered ability to fight them may occur. tell your doctor about an infection or symptoms... or if you've had a vaccine or plan to. tell your doctor if your crohn's disease symptoms... develop or worsen. serious allergic reactions may occur. watch me. >> cheryl: well the seller's market and the housing sector hitting headwinds as sky high prices combined with rising interest rates pushing the american dream further away. today's average rate for a 30 year fixed mortgage, that's the most popular mortgage in this country, is at 5.4%. that's up over a half a percent, half a point basically from 4.79 %. when the fed first started raising interest rates, and remember we were at 2% and change a year ago. housing starts and building permits falling in april, that's according to a new report from the commerce department. we've got that news today, but sellers are torn between buying a new house or fixing up their current home, and they have

options. companies like angie, they help you find professionals in your area to give your home that make over of your dreams. especially if you can't go out and buy that big new home of your dreams. angie ceo ashim henrihan is joining us in a fox business exclusive and it's great to have you here. let's first start with the news this morning if we can with starts in permits. that's definitely putting more of a damper on the new home industry which is already suffer ing from the supply chain problem. do you see a trend beginning to emerge where people are starting to say okay that's it i'm going to stay in the property and not try and buy right now. >> there's definitely a lot of volatility right now, so you rewind to this time last year, and demand for home services was just off the charts, incredibly high. what we've seen is the relationship between demand and supply has normalized a lot more in q 1 and a lot more just as we've gone into q 2.

some of that might be people pulling back because of interest rates, some of it might be people pulling back because they just are concerned about the economy right now. what we're noticing on the supply side is more and more pros turning to us to look for work so we do about $1 billion of performance marketing revenue, and we notice that more and more pros are turning to angie to grow their business, as the order books have started to come down a little bit, more pros are turning to angie to really grow their line of work. >> okay so there's more workers available but what about materials available, because this is no secret this is being talked about in restaurants and cafes everywhere that if you want to redo your kitchen, for example, or redo your floors, you're on a wait list to get the supplies that you need, and then it's coming in dribs and drabs. way say you want to redo your kitchen, it takes six months to get the supplies that you need. is that getting any better

because it's not just what's happening in the u.s. but also the china lockdown, a lot of these materials are coming from overseas and we've got these covid lockdowns still happening. >> look there's definitely supply chain issues that are working through the system. we have been able to grow our services business, so this is where we sell services directly to homeowners. that business has grown over 100 % for the sixth straight quarter now, and that relies on a lot of materials so in that business, we're actively sourc ing materials, we're actively making sure we're managing the supply chain, so yes, there is supply chain issues, but despite that, we've managed to grow our services business to about a half a billion dollars of revenue run rate now and again the sixth straight quarter of 100% year-over-year growth and that is through what we think are pretty challenging times. we think the worst of those times might be behind us as we've noticed the supply chain start to ease and things get a little bit easier. >> two questions real quick. can you give me any kind of

timeframe of the supply chain starting to ease up or what the wait time is for say give me a perfect example, say tiles, floor tiles is one thing, but as far as your company goes i was looking at your stock. it's down about 62% year-over-year. you had an annual low on the ninth at 347 a share is wall street getting it wrong on your company? >> i think the challenge has been we've been investing behind our services business until about six months ago where we spotted that the peak investment was going to be in march of this year, so we're now at a place where the peak investment in service is behind us. the peak investment in our re brand is behind us and we expect profitability to grow from here, we expect gross profit dollars to grow, ebitda to grow from here so i think we're at a turning point as you pointed out in terms of the stock price, perhaps we could have communicated that a little better in terms of the journey we were on but we're very clear that we're very focused on profitability, very

focused on making sure that we grow from here. on the floor tiles, i think it depends how fancy you go. it could be anything from a week to three to four weeks maybe longer if you -- >> that's better than i thought that's not months, i'll take three to four weeks, i was just giving an example, oisin, good to have you on the show. folks, tune into tonights real estate block, we have new episodes of "mansion global" at 8:00 p.m. eastern and my show," american dream home" at 9:00 p.m. only on fox business. gas prices hitting record highs food prices out of control. our reporters are at the pumps and in the fields to give us an inside look at our inflation nation. taking a look at the big board again we're hitting new session lows, dow down 1,200-plus. we'll be right back.

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>> well, stocks are at session lows right now. 1,243 down on the dow, at this point, folks, the dow is on pace for its seventh largest daily point loss in history. the dow fell, excuse me, 1,190 points back on february 27 of 2020. that was the beginning of the pandemic. that was us. that was you and i, together, here we are once again. so we're above that right now, rising prices and inflation are an ever-growing concern for americans that's what's hit a lot of stocks out there that's got volatility going higher for the markets, and then you've got gas prices passing a $4- gallon mark in every state for the first time in u.s. history. california probably not a surprise seeing prices higher than $6 a gallon in some spots, and then with food prices continuing to shoot higher, india's ban on wheat exports

sent the price of that commodities, remember it's used in everything from beer-to-bread , that contract jumped in the last week, wheat is up 11% in a week. we've got fox business team coverage on the state of our inflation nation. going to start with grady trimble at a gas station in chicago. grady, some analysts are forecasting the national average of gas could creep up towards the prices that we're seeing out in california right now. reporter: yeah, cheryl, that would just be staggering potentially $6 a gallon some analysts are saying for the national average. others are saying $5 a gallon is a distinct possibility, but no matter who you ask, it seems like all of the experts are saying in the short-term, gas prices are going to keep rising. the drivers i've talked to here, they've told me that for now, they feel like they have no choice but to grin and bear it, they aren't changing their summer travel plans just yet, but of course, if they do hit the road like a lot of americans are planning to, that could

drive up prices even more. today, you mentioned the national average above 4.50 for the second day in a row and only the second time ever. that's up $0.04 since overnight yesterday up $0.16 from last week. you're paying $1.50 more for gas compared to a year ago. those states out west are above $5 a gallon, like washington, oregon, nevada, $6 a gallon in california, and the rest of the country according to some of those analysts might not be too far behind. the drivers we've talked to here in chicago they are frustrated. listen. >> it's too high. a lot of people can't afford that. it's not good. it doesn't look like it's getting better. >> i'm always driving around so that really hurts us especially when we're trying to just live and work at the same time. but it's a battle. >> crazy for people to pay that much for a gallon of gas. i'm thinking of going electric

myself. reporter: i think a lot of people have had that thought, cheryl. another part of the problem is that refineries are not producing and refining as much oil as they did before the pandemic, and when they are refining, right now, they are focusing more on jet fuel and diesel, because that's more profitable than gasoline, so there's less gasoline on the market and then gasbuddy says a third of what's being refined in the united states, more than a third actually, is being exported, so hate to be the bearer of bad news, but gas prices are probably going to keep climbing as we head into the busy summer months. >> i'm hosting a show where we're looking at one of the biggest sell-offs in history for the dow so it us together, grady. we're the bad news bears this hour that's for sure, grady trimble thank you very much. trying to smile through this whole thing. well price at the pump not the only thing that's going up right now. wheat prices surging at record highs after india's ban on exports of grain. wheat prices surging to over $

12.70 that's per bushel. we've got madison alworth live from a farm in new jersey with all the latest. madison? reporter: hi, cheryl. this report is going to serve as my petition to join the bad news bears, because we're going to be talking high prices. this is a wheat field behind me looking at about a 300-acres of wheat. the last of this has been pre- sold for over $12 a bushel that is the highest price on record, and it's helpful for farmers because their costs are all up. we have to wait a bit for the harvest so this is all green. it's not going to be gold until july and that's whether en that harvest is going to happen and we really need that wheat to hit the market because of all of the global factors so first of course ukraine, the breadbasket of europe, that has been pretty much inaccessible because of russia's invasion now india, they are no longer exporting wheat because they want to make sure they have enough for the residents in their country. meanwhile there's concerns that china's wheat production is not

going to be high enough this year, nor will be the u.s.' domestic production. take a listen. >> the guys out in texas, oklahoma, kansas, understand that not a lot of nice wheat out there. we're putting the seed in the ground hoping for the best about what we grow and if it doesn't grow and we have this much money out, it's anxiety. reporter: yeah, so scott, like i mentioned at the top of my report, he's dealing with record high costs, the $12 that seems like a great get for the farmer but the reality is it's very expensive to operate. now take a look, it is soaring up about 70% and of course diesel, that continues to rise along with other gas prices all of this adding up up to really expensive picture. the farm is trying to makeup their lost costs with these higher sales but the issue

is this wheat is sold to brokers ahead of time so most of the wheat here, it was sold for between $7 and $8.50 a bushel. we're now as again a reminder up to $12. you know the reason why scott sold it at those prices is because they were already at near-record highs. he could not imagine that all-time high price was going to get even higher. >> you don't know what's going to happen. i would have never guessed that if you crane would have been out of the market altogether, i don't think anybody would have predicted that a year ago or six months ago. reporter: you know, so when it comes to farming farmers have to make their decision a long time independence advance. scotts already decided what fields are wheat for next year he just needs to buy his grain and he's concerned with the current operating costs the next round of wheat will cost more but what it means for you and i, cheryl? whatever this wheat is made into like the things you mentioned, beer, bread, that's all going to cost us more. >> yeah, in addition to what it

cost for transportation. walmart told us that already, food costs are jumping, and that's an issue for them as well madison great report really appreciate it madison alworth live for us looking at the wheat industry. well, you know, americans holding record debt right now, as ominous clouds of a recession are approaching. the lending club ceo, here in a fox business exclusive to tell us how he's preparing in a borrower should be worried about the impending storm. take a look at your markets again at this point, we're in the top 10 sell-off of all-time for the dow we're at 1,232 down, okay we're at the seventh largest sell-off we've ever had. it could get worse, could get better i don't know we've got 25 minutes to see what happens s&p down 172 points nasdaq is down 583 that's a loss of almost 5% rough day at the office, folks we'll be right back.

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>> financials taking a beating today as u.s. borrowing shows no signs of slowing down, despite rampant inflation and accelerating interest rates, household debt reaching a record high for the first quarter of this year, a whopping get this , $15.8 trillion. the increase propelled by a $250 billion increase in mortgage debt, and as federal reserve chair jerome powell doubles down on his commitment to back interest rate hikes until inflation comes under control, how are lenders preparing for really what we have not seen in a decade? let's bring in lending club ceo scott sanborn. save the debt in households across the country you've got to wonder if there's any warning signs or red flags out there. your response? >> yeah, well, the important thing, it's obviously a massive number, but when you go below the cover there's really about a mix of that debt and how that mix hits different consumer s differently that we're focused on. you just called out mortgages.

to the extent you're in a fixed rate mortgage and it's fixed for the next 30 years you're in good shape. you probably locked in a low rate but within that number is also more than a trillion dollars in credit card debt. that's back above pre-pandemic levels growing quickly. that debt in any environment is pretty unhealthy debt. it's high rate. what makes it especially difficult in this environment is it's also floating rate, which means that as rates go up, people are going to see their credit card bills going up, and that's what we do. people come to us to refinance, it's so low rate fixed rate credit with a fixed monthly payment. >> what can you offer them though? i mean, you've got to be competitive. you're in a competitive business , you're running up against sofi and i realize your guidance for revenue and earnings, you upped your guidance, certainly it's a great sign, but how do you stay competitive? >> well, we got a couple things going for us. we've got a vertically integrat

ed business model. we're one of the few fintechs actually disrupting banking from within by acquiring a banking charter and we have a marketplace model where we use the marketplace of loan investors to drive down the cost of capital to borrowers to take those two things combined, vertically integrated digital- first model with no branches and low overhead, yeah the marketplace we're saving borrows on average about 400 basis points off their cost of credit for the credit card and the process takes two minutes, so we're getting a lot of value. last quarter we crossed 4 million members that we've helped refinance credit card debt. >> let's talk about student loan debt. because you got the biden administration still talking about wanting to cancel student loan debt. there's 1.5 trillion last time i looked sitting out there in student loan debt but what does that mean for someone like you if they cancel even a partial amount of student loan debt does that affect you at all or no? >> no it doesn't effect us.

i mean, we're underwriting, its been 30 months of no payments on student debt. we're underwriting with the assumption that that moratorium ends and we're making sure the consumers have the ability to pay with the presumption of their student loan payments. i think the bigger message for consumers is look, if you've got this respit, please, please, please, be taking this extra cash that you're getting every month and putting it into pay down your other debt, your credit card debt, your auto loan debt, because to the extent that comes back i think they are going to need to make sure they can carry both. >> you have an interesting view from your vantage point as a company because consumer spending is two-thirds of the economy. we're talking, we've got a lot of banks now saying that we're possibly going into a recession. you already had one quarter of negative gdp on the books, what happens in the next quarter we'll find out, but does that, what is kind of your prediction

based on kind of where you're seeing consumer at right now? they were saving during the pandemic, but now it seems like the revenge spending. >> there is a little bit of revenge spending but i'd again go through overall the system is still flush with cash. there are still more than a trillion dollars in deposits more in the system than there were pre-pandemic and you're sea bifurcation of the consumer. there are those consumers who disproportionately benefited from the government stimulus and are disproportionately suffering when it goes away and from the increased cost of living, you were just talking about gas. the average consumer is paying $200 more a month in fuel costs than they were only a year ago. if you wanted to buy a house today, it's going to be $300 more a month for your mortgage than it was a year ago, so those consumers, we are seeing, we are seeing a need to tighten their belt. you probably saw walmart's earnings talking about people

trading down to brands. we're seeing that on the credit side so during the pandemic, pre -payments were really high. people were delevering. they were taking the reduced spending and the increased benefit opportunity to delever. that's stopped in kind of the segment of consumers more at the bottom end of the income range. their pre-payments are back to pre-pandemic levels and you're seeing delinquencies back to pre -pandemic levels. >> scott it's a very good topic and you have a good birds eye view of everything, scott san born, thank you very much for the time. obviously, we're going to be watching the economy, we're watching the markets but you've got these rumors swirling around right now regarding elon musk's plans for twitter. lawyers are saying that a crucial clause in the merger agreement could result in jail time for the ev mogul if he walks away from the deal. charlie will break that down, next plus let's take a look at the blue chips at 1,195, so again, we're kind of sitting on

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>> just want all of you to know as we're watching the market sell-off you just saw the dow 1,234 we're definitely pushing new session lows with the dow going into the close we're going commercial-free for the next 11 minutes, take you through this market. you will not miss a thing as we take you to the final 10 minutes or so and what a rough day its been at the office, folks. amc, by the way, filing a statement with the sec, stating that it owns a 6.8% stake in national cinemedia.

the investment makes amc the third largest shareholder of the theatre advertiser. ceo adam aron said he would continue to make more investment s using the 1.8 billion in liquidity the movie chain has available. the meme stock favorite reported first quarter earnings last week , they did beat wall street expectations, folks. there is amc down 1.5% because well the market, frankly the markets having a rough day. twitter is under pressure, as the elon musk purchase drama continues. got to bring in charlie gasparino. charlie? i mean, you know, he's tweeting now that he's going to start voting republican. he's leaving the democrats behind. where is elon musk right now and what about the jail situation? charlie: where he is, i have no idea physically or mentally or anything else. his tweets do suggest that he knows some legal issue is coming , and it sounds like what he tweeted with that he's going to vote republican is that he expects and i'm paraphrasing here, he expects somebody, the

ruling party to basically come after him is essentially what he said, if you can get that. >> political attacks will escalate dramatically in coming months. charlie: my guess is that he knows something is coming. we refers to a report he was under investigation while he mounted this twitter bid for stuff he did or allegedly did while at tesla including potential accounting irregularities including how he made his filings for the tesla bid, how he didn't file them in proper time. by the way those aren't major problems but here is kind of something that's interesting that we're getting from legal experts and, you know, none other than john coffee one of the top corporate lawyers in the country. he's professor of business law at columbia university. he said it's plausible, so it's more than just a theory here, that elon could land himself in jail by failing to carry through with his twitter bid. how does that happen? well twitter actually goes to

court, because he does have a signed document and it's pretty hard to back out of that document, legally he goes to court. they go to court, they take him to court and get an injunction from a judge and the judge says you have to buy it, and if he then goes out and, you know, he's got a habit of this of thumbing his nose at regulators at authorities. if he thumbs his nose at the judge and says you can't make me do this , the judge could put him in jail according to mr. coffee so there you go. this has caused a lot of controversy on the internet on what we're reporting here but it's not pure theory. i mean, if he's known as a guy that just ignores totally ignore s regulators, ignores whatever, remember he had deals not to tweet with the sec because of a con setter decree. he reached over his tweet that he was going to take the company private years ago at $420 which never happened, so this guys got a history, but i'm telling you if he thumbs his nose at a

federal judge if they force him to go to court, well, here's the deal, cheryl. that judge can put him in jail. i want to transition now to -- >> billion dollar breakup fee. charlie: even more than that. i'm sure they will not allow him to smoke weed in jail but in any event, we do have an interesting story with gary gensler, the sec chairman. you know, he's not a big fan of corporate america, they don't like him but apparently the staff at the sec is growing increasingly tire some of him. they think he's overworking them the union is now opposing gary gensler. the sec has a union that's everybody except for the top attorneys, the staff attorneys and down, belong to a union, and they say that there's not enough time in the day essentially to carry out his ambitious agenda that they need, that essentially , they say he's making them take vacation days that they need to work at because there's not enough time to implement all the new standards he wants to impose on

corporate america. there's a bunch of laws that the he wants to impose and rules and regulations that involve esg and you name it so this is a pretty interesting story. i'll tell you, cheryl, interesting enough you would think gary gensler, a fan of progressive elizabeth warren, be loved by unions all over the world? well, his own sec union can't stand him. back to you. >> [laughter] i'm not even going to say anything else about that one it's good stuff, charlie gasparino, charlie thank you very much, appreciate it. let's get back to these markets right now, closing bell is now six minutes away. the dow, the s&p 500 having their worst day right now since june 11 of 2020, at least with a few minutes left until the close the dow has not really recovered from session lows. at one point we were down at least for the dow we were down 1,260 we're now down 1,220 and it's escalating. we're still on pace at this point for the seventh largest point drop in history for the dow. the nasdaq is down more than 4.5

% right now those are those big name mega cap stocks those growth names that are selling off. i want to bring in hennessey funds and portfolio manager neil hennessey and cio peter maluk and i don't know, ray, take it away. what do you say here? neil, i'm sorry. i'm sorry. hi, neil. >> i get called a lot of things >> i've known you for 15 years i'm so sorry. okay back to you. make your case here. >> you know, it's interesting. since 2010 if you just look, history tends to repeat itself. we had eight corrections of over 10% and it took 45 days from peak-to-trough, and 127 days to get back to new highs. what you're seeing now is the old saying, they're just putting everything into the

kitchen sink and i sort of look and go what an opportunity, because we use price of sales, not earnings. you can look at walmart, target and they are saying their earnings outlets aren't going to be as good but they are still earning money. you can buy a lot of companies out there at 10 and $0.20 on the dollar, which in time will come back. if you're talking about companies that are profitable, their dividends are well-covered , they have low price of sales what do you want? and then you also look at last year you had six stocks that ran the market the last couple years >> all the names selling off right now. >> they were up 31% last year with pe of2 on average. they're down 35% with pe of 39. reality of the situation the sky is not falling. i just came to the studio, i looked up. it is not falling. there is plenty, plenty to go with. cheryl: okay that is the thing

at this point, peter, this is the independent point where you look for it. we talked about this back in 2020. this is where you look for opportunities. look for stocks you want to buy. it is no about companies, it is about the environment, it is about the economy and about the fed. are there any areas you specifically targeting? you can say target. that is a big story today. >> you're right about the economy and earnings, that is the issue. it used to be as simple fed lowers rates, puts money in the system. we know what happens when the fed raises rates, pulls money out of the system but i don't think we can do that now and i think the market is telling us that. the story became more complicated when china went into lockdowns and oil prices permeate theirs things and what shows up at target and mcdonald's. deglobalization what happened in ukraine. all these countries, businesses bringing work back home where 1%

more expensive the fed has no control over these things. we're seeing that priced in. s&p 500 companies, cost is up, oil they're using to get everything is going up. they're having to move stuff away from other countries. that is going up. these things have to be passed on to the consumer. that is why we see this with earnings. we will get through this these things are temporary. it is temporary if you look at a long opportunity. if you're in speculative stocks, stocks with no earnings, small cap, high-tech growth stocks, no earnings, cryptocurrencies, nfts, those things are going to continue to get crushed. i think we've only seen the beginning of the destruction there, if you have eye on quality, you be patient. opportunity to get better but a great opportunity. cheryl: right, if you have time in the market. neil, same names you're looking at? same question to you? >> for instance, look at academy

outdoor sports. everybody is trying to go camp. they're saving money. coming back a bit more. consumer is flush with money. s&p 500, those 500 companies are sitting on over 7 1/2 trillion dollars in cash on their balance sheets. you can look at macy's. i know in the retail arena. at the same time buying it for 20 cents on the dollar. people want to get back into the showroom. they want to go out to shop, feel, try something on. instead of doing everything online. i think that game sort of run -- cheryl: i call it revenge spending like revenge travel. kind of the same thing we're seeing. real quick, peter, last word to you, again how much lower do we have to go here? >> i think speculative, a lot lower. rest of market psychologically it is in the game now. could go down another five, 10%, be a mild bear market. i like looking for big names with big earning that will work itself out. you will be reward.

cheryl: dow at 1180. at this point we're around about the 8th worst selloff of all time. it is just how the numbers play out. how they settle. [closing bell ring is. >>. closing with 7th or 8th biggest point drop. the numbers are settling right now. that is it for "the claman countdown." "kudlow" coming up next. ♪. larry: hello, everyone, welcome to "kudlow," i'm larry kudlow. we begin tonight with a fabulous quote from my hero elon musk. in the past i voted for the democrat but mostly the kindness party but they have become the party of division and hate so i no longer can support them and will vote republican. now watch their dirty tricks campaign against me unfold. end quote. good for elon. it is thinking