down 1100 on the dow yesterday. down 190 right now. don't forget to send in "friday feedback". varneyviewers@fox.com. we want your fan friday videos. tell us your name, where you're from. there is the important part. you have to say you're watching "varney & company." do that, if you're not careful you will be on tv. time's up for me. neil, it is yours. david: if it was neil, he would say thank you, david would thank you as well, thank you very much, my friend. i'm david asman in for neil cavuto today. stocks reversing course. the s&p turned positive. it has been flirting with positive and negative. the dow is still in the red. we're following all of the market swings in next couple hours. broken record gas pricing yet another high. brace yourself. one gas station is preparing for 10-dollar a gallon at the pump.

plus as the u.s. turns to venezuela dirty, in effective inefficient oil company to relief demand, china is turning to russia's blood oil to replenish its reserve. we're on the energy crisis all day long. stocks seeing a turnaround today. banks, experts are warning not if, but when a recession will hit. joining me now to break it all down for us is susan li and constellation research ceo ray wang. susan, wonderful to see you. confidence is tumbling, ray, according to a survey from the conference board. 68% of ceos are bracing for a recession. are they right to do so? >> you know, david, they are. we got five forces at work, right? inflation is up, producer price indexes are driving people nuts in terms of inputs, interest rate all-time high, impact with

inventory. invasion, infection, impact of zero covivid in china. those are driving down ceo confidence. in the report from the conference board, saw cap-ex spending in terms of confidence go from 48 to 38% for increase capital expenditures. that is long-term investments into infrastructure, plants, equipment, of course other capital costs that actually drive down, improve production and drive down costs. that is astounding to see that kind of a drop in such a short period of time. david: susan, obviously it is hitting tech stocks the hardest. we've seen decimation in nasdaq territory, particularly on start-ups. david saks was on with maria this morning with kraft ventures, involved in a lot of startups in silicon valley. he is dismal about all of this. >> yeah. david: let me play the interview. get your reaction. roll tape. >> from where i sit the market is really semi frozen. this is the worst downturn since

the dot-com crash. looks like we're headed into serious recession. david: not a matter of if, david is concerned but when. >> david sachs says worse than the dot-com bubble in 2000. there is rethink how much you're willing to pay for growth at all costs with no profit. that is the thinking in silicon valley which i'm sure ray will agree with. as to technology stocks themselves today, there has been bifurcation, right? the nasdaq is outperforming. dow is down, realization, you saw the jobless claims going up this morning. existing home sales looking at the worst month since before the covid pandemic that shows you that there is weakness in the consumer. that is going to hurt retailers. maybe some people say, look if you're looking for some value, 50, 70% down for these tech stocks might be some bargains out there for you. david: might be some bargains, ray, david was also talking about startups. and how 80 to 90% of the deals

he saw in formulation a year ago have dried up completely. we're not going to see many startups, particularly in the tech sector for a while, are we? >> we'll not see a lot of ipos. here is the challenge. the public market valuations are almost 3x lower than the private market valuations. we have situation if you're a startup looking more cash, you will get a down-cut for your valuation. if you have cash, you will weather it out two or three years but people are worried what the ipo market will look like. david: susan, he sass saying the highs last year were completely artificial, based on government spending, spending money they didn't have and interest rates were obviously far too low. they created inflation. is he right, were they artificial the highs we saw last year? >> course correction we heard all week whether you heard from elon musk, jeff bezos, blaming

washington, d.c., for all that money printing fueling inflation and for the fact that jay powell, federal reserve chairman said himself this week at "wall street journal" event yeah he maybe should have raised interest rates a little earlier and there is course correction taking place. getting back to the ipo point ray was making and you were making, how many ipos worked out returned money to shareholders the last few years? i would say very, very few. it is interesting the public markets were ahead of the private markets in marking down valuations. what does that say in terms of the amount of money out there that is circulating? david: well, we've had for, ray, for so long this artificial interest rate policy which has been very good for the economy. it really began with all the qes. i don't want to go into too much garbage language here but the bottom line is it started back in 2008-2009 during the great recession. it looks to be finally ending.

will it? are we entering into a new age where this grand experiment that started with the last great recession will finally end? >> i'm hoping so that this will end, right? this modern monetary theory mess is really not true. realistic laws of physics are back into play and you know we have to tighten up in terms of our spending. we can't keep printing too much money. rest of the world is starting to see that as well. there is some inflationary forces that will happen. deglobalization is interesting. i've been watching some interviews going on as we move to deglobalization we'll see more inflationary forces in place. susan is right, interest are a lot of factors in play but a lot are self-inflicted. david: 14% ever global wealth, 14% of the entire global wealth has vaporized over the past several months t was 18% in 2009. so we're getting close to those 2009 levels of the evaporation

of capital. that is frightening thing to think about. you guys were sew good. can you please stay around? we'll bring you back a little later in the show. gas prices are hitting another record again. things are expected to get worse as summer travel season kicks off. democrats are voting on new price gouging legislation even though we haven't proven any price gouging to crack down on big oil. that is the way they're framing it. grady trimble is in chicago with more on the pain at the pump. it continues, grady. reporter: it does, david. the national average has gone up 10 days in a row and has hit a new record each of the past 10 days. you can't see it behind me, but at this station folks are paying 5.39 for a single gallon of gas. a new analysis from yardeni research they expect americans to pay $5,000 for gas alone this year. that is almost double from a year ago.

yes, democrats, the house in general will vote on the price gouging bill today. they're going after companies that they say sell fuel at quote unconscionably excessive prices. republicans agree these prices are unconscionably excessive but they don't think it is companies price gouging. they blame the biden's administration energy policy. you mentioned the potential for five dollars a gallon. most analysts think that is a distinct possibility. at least one suggests that $6 a gallon is possible by the end of summer. we spoke with patrick de haan, the gas buddy guy. he thinks drivers will say enough is enough before we hit $6 a gallon. listen. >> i think consumers would start to see a big drop in desire to hit the road. thus demand destruction will likely kick in somewhere in the mid 5s i estimate. so, i think it is improbable. it is not impossible that we

could hit $6 but i think that is highly improbable. reporter: we are seeing oil prices fall today and the experts say that could reflect at the pump in the coming days. not likely much effect long term if they continue to stay as high as they are. i want to ends david, with a look over at the west coast, especially washington state where they're above five dollars a gallon for the average at the pump right now. one gas station chain, 76, is preparing their pumps for the possibility of double digits. they're getting machines ready to register $10 a gallon. that doesn't mean they expect it to hit $10 a gallon in washington state. they are already halfway there just as we are in chicago. david: unbelievable. what a frightening thought. thank you very much for that, grady. oil was down. now you can see it is up a little bit after dropping on fears of a economic slowdown. now china reportedly looking to

russia to replenish its strategic oil reserves as the biden administration you may have heard eases energy sanctions on venezuela. hudson institute senior fellow rebecca heinrichs joins me now. rebecca, a lot to talk about. the president is going to asia as well. we'll get into that. i want to talk about venezuelan oil. i happen to know a lot about it. i was down there 12 years. venezuela has a very dirty, very corrupt oil company, called pedevesa. they used to pump 2 million barrels a day. now it is so badly-run they're pumping 700,000-barrels a day. this administration says they want to go down there to help them produce more so we could actually import from venezuela a million barrels per day. while we are beating up on u.s. oil companies that make, that are far more efficient than venezuela's, that make oil in far cleaner fashion than venezuela does, they're going down to help a socialist

dictatorship with their dirty oil company. does that make any sense at all? >> it is exactly backwards, david, and you really put your finger on it. remember the biden administration canceled lease sales for oil and gas in alaska and gulf of mexico as well. the only people truly feeling the bite of energy sanctions right now are the sanctions effectively that the administration is placing on the american consumer. if they really cared about clean energy, they wouldn't be doing as you say going after dirty more than one way venezuelan oil in terms of quality of energy and also that it actually helps as a dictator in venezuela f they cared about the ethics of it, of course the virtual effects they wouldn't be doing that. then you have the chinese who are getting cheap energy from russia because of course they don't care about the isolation that russia is under in fact the chinese and russians collaborated, beijing olympics before russia invaded ukraine to

pen the field together where they would be increasingly cooperating with energy and also with agriculture. russian invasion of ukraine has really so far worked out pretty well for the chinese communist party. david: yeah, it has but again what's happening here in the united states is just, it is so wrong in so many different ways. one thing we don't talk about, there are, of americans that depend on the fossil fuel industry gore their jobs. we're heading into recession. most people see it that say we're actually in one, most analysts right now as we speak. jobs dry up. we had a surplus of jobs. it has been a wonderful thing but jobs dry up during recession. those jobs, those american fossil fuel jobs are going to dry up as a result of, direct result of policies by the biden administration. what happens to those people? >> it is exactly right. this is direct result from the u.s. government. so whenever the biden administration tries to blame

other countries on the price of energy and then also on unemployment, joblessness, primary it is just, it's not true. primarily it is the impact of the biden administration's policies. unemployment goes up. people who are highly skilled. this is their life's work. as you say they're producing energy for the american people. also that is cleaner for the environment. so really is an anti-american energy policy that this administration is carrying out. i'm from a small town in the mid west where families are hurting. they're not traveling as much because of the high gas prices. david: that's right. >> they're penny pinching in all kinds of ways. real americans are suffering because the economic energy policies of this government. david: rebecca, finally on taiwan, while we're focused on ukraine, we can't forget that china had their eyes on taiwan for a while. biden is not going to china of course, going to japan and korea but can he do anything to hold off a chinese invasion of

taiwan? >> we should be doing everything we can to signal that we will come to taiwan's defense. you do it on the front end so you deter chinese invasion. strength is what deters aggression. if we leave taiwan overly vulnerable, the chinese government is going to make a decision about what they can do. they might think we're busy preoccupied helping ukrainians. now the time to move on taiwan. taiwan is a key geostrategic asset partner for the united states of america. not because of the democracy. because of their technology, our trade. if china takes taiwan they will have free and open access to the western pacific. it would be the end of the u.s.-led order. highly important. that is why we have to stop russians in ukraine, by supporting ukrainian government to push russia out so china doesn't get any ideas what they get away with concerning taiwan. david: you say strength deters aggression. i remember donald trump having dinner with chinese president xi, same time u.s.

planes were bombing over syria. he said over that beautiful chocolate cake he told president xi, president xi's eyes grew very big. i don't see the same fear towards joe biden that xi had towards donald trump. do you? >> no, as a matter of fact i see a direct line from the precipitous withdrawal from afghanistan, if you think the united states should shrink the that was horrible way they carried out that withdrawal. straight from there relieved sanctions on north stream two. the russians saw weakness and the united states not truly backing our eastern european central allies. so they made their move. we're only couple years in this administration. i see a lot of national security disasters if we don't have a major change of course which i don't psion the horizon. david: rebecca heinrichs, thank you very much appreciate. the biden administration taking

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♪. david: so the biden administration is announcing a new plan to help ease the nationwide baby formula shortage. they're invoking the defense production act. you remember, may remember that from the trump administration. edward lawrence joining me now with more on what it means for concerned parents. edward? reporter: exactly, dave. president joe biden now getting aggressive with getting baby formula on the shelves here in the u.s. he is calling it operation fly formula. he has directed departments to work with the department of defense in order to get more baby formula into the u.s. the dod will use existing commercial aircraft contracts to fly baby formula from europe into the u.s. a video message the president added he is going to do more. listen. president biden: today i'm invoking what they call the defense production act to insure manufacturers have the necessary ingredients to make safe, healthy infant formula here at

home. the defense production act gives the government the ability to require suppliers to direct immediate resources to infant formula manufacturers before any other customer who may have ordered that good. reporter: the administration claiming they have worked since the shortage happened to try to fix this supply shortage with the baby formula but republicans criticizing this administration and president for taking action now, three months later. >> we've been struggling as parents to find formula now for months. so why is the biden administration just now kind of waking up, caught flat-footed out of touch, to take this on? you know, at the end of the day parents have to be able to feed their kids and get them the nutrition that they need. he did the defense production act, again, why didn't he do that months ago? reporter: representative waltz looking for formula for his child. the fda this week signed a

consent agreement with abbott laboratories to reopen that facility. it will take two weeks, according to the company to reopen the facility and several weeks beyond that to get formula into stores. david: by the way for those who may not know, that baby is dr. nesheiwat's nephew i believe. just a little inside information. what a cute kid it was. edward, thank you very much. meanwhile the senate is set to vote on $40 billion in ukraine aid. that is on top of billions more than we already spent. fox news congressional correspondent chad pergram joining with us the very latest on this. chad? reporter: good afternoon, david, senators wanted to approve the bill last week, you know in the senate it only takes one senator to gum up the works. one senator blocked it for a week's time. that is republican rand paul. >> congress will do what congress does best, spend other peoples money. i for one will not. i will vote no. somehow, somewhere a voice of

fiscal sanity must remain vigilant, must remain stalwart and steady in a see of physical madness. reporter: gop kentucky senator rand paul blocked the bill for a week. he wants to add a special inspector general to the bill to review how the money is spent. senate minority leader mitch mcconnell warranted to approve the bill especially since he was to head to ukraine last weekend with a meeting with volodymyr zelenskyy. >> we will sorely need the trust and relationships that abandoning ukraine would exhaust. turning our backs on ukraine would harm our goals in asia, not advance them. reporter: the bill has wide bipartisan support. gop texas senator john cornyn joined mcconnell on the trip to kyiv. >> the cost of the united states doing nothing, of simply turning over this democracy and our security and our economy to putin, well that is greater than

any cost that could come by supplemental appropriation that the united states congress might make to assist ukraine. reporter: top leaders from swedened and find land are at the capitol about meetings to join nato. the senate is taking a procedural vote to break the filibuster that rand paul put up and other senators. they needed 60 votes. that is why they needed to stretch it out for a week's time this is the procedural vote, and they have more than 80 yeas. that will go to final passage that only needs a simple majority that is the second batch of money from ukraine. from congress, they need to approve more money later this summer or the fall. david: wow, more to come. chad, thank you very much. senate votes on another aid package in ukraine, congress doing enough to help americans here at home struggling to find baby formula and deal with sky-high prices? georgia republican congressman jody hice joins me now. great to see you again.

can you hear me all right? >> yes, i can. david: all right. these two issues, there is nothing funny about them, but there was a satirical cartoon in "babylon bee" united them. a kid in camouflage in front of empty shelves. the title was, kids dressing up as ukrainians in order to get 40 billion for baby formula. the bottom line americans don't feel their basic needs are being met. do you think that's a problem? >> look, in the biden administration has not only been behind fixing all these problems but they have been at the root cause of these problems. the list of missteps by the biden administration, particularly related to energy costs is both long and distinguished. look at the steps they have taken to destroy american energy independence. they canceled the keystone pipeline. zero new pipeline permits. they are canceling oil and gas leases in the gulfed -- gulf of

mexico and alaska. if a company has the ability to explore they're not issuing permits that allow the company to get started. it one thing after another. energy costs is baked into every single thing we do. the biden administration continues to destroy american independence, affecting the food supply, most importantly at the gas pump, americans are sick and tired of paying 4.50 a gallon for gas. david: one thing connects all the stories this particular administration reliance on government regulations to quote solve problems. big government is going to solve. now we have the defense production act. trump administration used that in order to develop more ventilators in the beginning stages of the pandemic. it has been used before by both parties this rush to government solutions seems to be doing more to muck things up than solve problems, no? >> listen big government is not the answer to this. let's keep in mind when former president trump used it was to

battle a virus that came from china. the shortages in american food supply are a direct supply chain issue that the biden administration and house democrats failed to do anything about. they continue to be behind the curve on this. they continue to push "build back better" policies we know will worsen the supply chain, that will continue to drive prices up. they are completely out of touch with what's happening in middle america. it's wrong. we've got to put a stop to it. we're fighting this every single day. here's the thing, americans know what the causes are. they know who is causing it. i don't think they're going to accept that arsonist will also be the fireman. i think they will push back at the ballot box. david: by the way, the second level after that initial reliance on defense production act with beginning of the pandemic, we had "operation warp speed" come in and that succeeded tremendously to create new vaccines and medications by getting rid of regulatory barriers, not by

adding more on. is that the solution that we need to look more at than more levels of government regulation? >> yeah. particularly in the energy sector. let's -- we already have, we already have the best environmental standards around, excuse me oil and gas production. we need to go back to those. we don't need to layer additional hurdles on top of exploration and production of energy here for america. keep in mind, every single signal that the administration sends to the investment community, either say don't invest in oil and gas or these ridiculous, ridiculous esg regulations that are go against the fiduciary responsibility of corporate boards and their shareholders, it is wrong. we have to put an end to this we've got to get back to doing things that make this the most competitive country in the world to do business. americans need to be the beneficiary of that first. david: congressman, thank you so much for coming here. appreciate it. >> thank you. david: coming up, crypto edging higher but the trouble for

digital currencies may not be over yet. what sec chairman gary gensler is predicting for the crypto market. you want to hear this coming next. ♪.

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♪. david: bitcoin back just above that 30,000 mark after dropping more than 25% in a month but one crypto price analyst predicting that the crypto market could see a correction of over 90%. i'm joined again by susan li and ray wang. good to see you both again. susan, gasparino was talking yesterday or the day before about some crypto investors are literally contemplating suicide. a lot of people put just about

everything in this. could that 90% figure prove true? >> i think those are latecomers to the party. you have to remember that bit was trading what, 4,000 before the pandemic? so the fact that it is still holding on to 30,000 levels, there are still a lot of people made a lot of money over the past two years. also we've been talking about the shakeout in the cryptocurrency markets where a trillion dollars have been lost over the last six months. some people say hey that is probably pretty good. you shake out some fast money because cryptocurrency and bitcoin is fast money type of receptacle, maybe you have those that believe in the fundamentals, believe in defy and use of cryptocurrencies in the future for payments. david: ray, pyramid schemes, people come on the beginning get rich, but the majority, will this end up the few people at beginning will end up whole but most of the people that came in too late will end up losing?

>> in this case bitcoin is holding at 29,000 between 29.3, 29.7. that is interesting last couple weeks t has found a floor. david: that is interesting. >> the crypto winter has not turned into an ice age. we're actually in a situation where bitcoin is holding out better than other cryptocurrencies. as susan mentioned fundamentals with bitcoin are different than other cryptocurrencies. those are actually playing out in the market but what you do need to know that bitcoin is probably the one that will hold out compared to other cryptocurrencies, mostly because it is limited and it is actually done in a way that the proof of stake model means limited supply is verifiable that will be one that holds and pegs better to anything else. but the stock market, the correlation to bitcoin was interesting. there was a .78 correlation to both. usually, i mean the idea behind bitcoin was the fact it would not be tied to a stock market. it would not be tied to the dollar. it is a lot closer than people realize as a risk asset. david: susan, something else

relates back to what happened in the late '90s with the dot-com bust. >> oh, boy. david: some people are saying in fact the technology that bitcoin uses is really breakthrough technology and it will find a purpose somewhere in the marketplace. it just may not be the cryptocurrencies themselves. is there any truth to that? >> okay. so there are different cryptocurrencies out there. yes, we did hear from "the ft" x, a 30-year-old, 20 billion-dollar, founder, sam beckman telling "the ft" maybe bitcoin doesn't have a future as a payments network but ethereum does. underlying technology, i won't get into specifics because it is complicated, the fact that you have nfts being traded on it, shift in transition to prove of stake in the future, there are different cryptocurrencies out there that could be possibly have user payments in the future. i do see a future for it. david: not everything is down. business and leisure trips are soaring to levels we haven't seen since 2019.

i'm wondering, ray, it is great that is happening -- >> ray is always on a plane. david: but the fact is a lot of people are suggesting we may be in recession right now and with a recession coming people don't travel as much. particularly businesses. so could this, this current rally be short-lived in the travel business? >> i actually agree it is short-lived. this is last hurrah. this is revenge travel. david: revenge travel. >> more expensive than they thought they would get to. the flight that was $300 is now $600. the 300-dollar hotel room is $600. what i've been watching credit card spending and debt levels. those are going up. by the time q3, q4 the leisure travel will drop and i hope business will pick up. that is what i'm looking at. conferences an events are picking up. i've been to 30 conferences since the beginning of january. david: that is interesting. thatthat is a good sign.

they are helpful, a lot of what happens that is helpful in the hallways. they are good to go to. >> people want to get out. david: thanks very much, gang, appreciate it. coming up signs of a slowing housing market but one not going at breakneck speed anyway. we'll be right back with more on what's happening with housing, your house, and if you want to buy a house. that's next. ♪.

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a lot of interesting stuff. reporter: a lot of change. it's happening quickly in the housing market. here's what we're seeing right now. it is not yet getting any easier to buy a home in this country as prices remain high. inventory announced mortgage rates near multiyear highs. we got new numbers this week, freddie mac, mortgage rates still at 12-year high, as you say down just a bit. it is forcing buyers to recalculate monthly payments. listen, some of these deals are falling through. existing homes on the market continue to be lean. inventories in april move lower to 2.2 months of supply. you would expect in the real world builders would step in make up the difference to start bidding but that is not happening. housing starts were down in april for the second month in a row. building material costs as you know skyrocketing. interest rates are exploding. builder sentiment down for the fifth month in a row. listen. >> with overall inflation you've

got builders having to pay more to get capital to buy land, to improve it. you got consumers having to pay more for the mortgage at the end of the process. it is just, it is a perfect storm that is really taking us very much aback right now. reporter: it's a perfect storm. what you're seeing now, buyers retrenching. according to freddie mac, fewer buyers are shopping open houses. foot traffic as measured by the nahb posted a nine point decline. this is really worrying metric for builders. fewer buyers are applying for mortgages. that number was down. remember, we told you two weeks ago that builders sent a letter to the white house signed by 10,000 people, builders, asking for the president's help in fixing supply chain issues. they haven't heard a word back. but i want to tell you, jerry told me in that interview, i said what is the outlook what are your economists telling you? he said there is a 30% chance of a housing recession next year.

david: wow. >> does that mean home sales crater or home prices? he said both. david: both. even with the dearth of inventory. there just isn't the inventory it would still crash in light of that. reporter: here is one of the dirty little secrets of the market are not focused on. 1.7 million homes started and are not finished. david: yes. >> they're sitting there languishing for a door, an appliance you name it, right? at some point that inventory will come online, when it does i think you will see prices go down. david: if they can manage to survive through a recession, then come out with that new inventory available, might be perfect timing. or could be disasterous. >> yeah. david: we'll wait and see. >> owners are sitting pretty. those are people who are happy. david: thank goodness. gerri, thank you very much. billionaires backing away from biden, one sparking a firestorm after declaring twice he will

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♪. david: you heard yesterday afternoon elon musk said he will be voting republican for the first time ever in the next election tweeting that the democrats have become the party of quote division and hate. hillary vaughn is live on capitol hill with the very latest. he said he would get reactions and he has, right, hillary? reporter: that's right, david. he has been getting reaction. in fact he tweeted he was right in predicting there would be a lot of reaction coming in following this announcement but he did tweet this yesterday and he said, quote, in the past i voted democrat because they were mostly the kindness party. they have become the party of division and hate. so i can no longer support them and will vote republican. if musk votes republican in the midterm election it would be his first time ever. >> i would classify myself as moderate, neither republican or democrat. in fact i have voted overwhelmingly for democrats

historically, overwhelming, i might never have vote god are a republican. reporter: musk over the past two weeks publicly taken issue with specific democratic policies calling out the biden administration for increased government spending he said triggered inflation we're seeing today. also off the len publicly feuding with progressive he should pay more in takeses. musk says there should be a more moderate between the two. this is mostly what american people want but unfortunately not realistic. the party with the less power moves towards center to win moderate votes so control of house and senate goes back over time. republicans are cheering the news. taking it as a sign of good things to come in november. congresswoman lauren bob better tweeting, elon is not alone. it is nearly impossible to vote for today's radical democratic party. some democrats are brushing off

musk's announcement. senator elizabeth warren telling me, who cares? >> what political party they want to join, how they want to vote, that is up to them. what i care about that we have a tax system that makes those guys pay their fair share. reporter: quickly last session, are billionaires, wealthy people welcome in the democratic party? >> anyone who believes in paying a fair share is welcome in my view in the democratic party, of course. i celebrate success. i want to see people do really, really well. reporter: but, david, no second thoughts from some progressives that has made a appointment to call out billionaires like elon musk, like jeff bezos for not paying enough and also saying that they are the solution to get a lot of these democratic policies that have been sidelined across the finish line. they're the way to come up with the money to pay for it, and make it happen.

david: shewell said ad one point point -- she actually said at one point he didn't pay any taxes. he paid at one point $11 billion. i can't think of any individual who paid $11 billion. thank you very much, hillary. america first legal advisor, ian pryor. good to see you. most people don't cry much about billionaires. they could lose 99% of their wealth and live better than most americans do but there is one worrisome thing, and it harkens back to your time at the justice department, the way this administration used the justice department for its own ends. in a way you're not supposed to. you are not supposed to get political. people wonder for example, in his bid to get twitter, sec, federal age is might be putting more scrutiny on him particularly now that he said he is a republican? >> well i think you're absolutely right about how the justice department is being used

by this administration. there is plenty of evidence. you go back to last fall when the justice department was targeting parents that were speaking at school board meetings. you go back last week the justice department wasn't doing anything about people picketing, you know against federal law in front of the supreme court justices homes in order to influence a decision. so i think, you know, there should be concern how this administration handles a deal like what is going on with twitter. will they leverage the power to the federal government to essentially protect you know twitter which has been largely populated by bots and progressive warriors out there trying to cancel conservative i haves and others that don't share their point of view. david: part an parcel of the whole woke mentality that has gone into the corporate boardroom. we see it in decisions being made, for example, on financing fossil fuel businesses where we see that certain woke boards

won't give the funding that a lot of, a lot of oil and gas companies need to continue operations and to explore more and to get more oil and gas so we bring the prices down but it also follows, i think a lot of the regulatory decisions made by this administration, no? >> yeah. that's right. you know going back to your comment about sort of these woke boards and corporations, you know i think we probably reached a bit of a tipping point. i'm sure that some of your viewers saw last week a poll released where disney's approval rating is 33%, versus 30 disapprove after they were exposed about a month ago and their ceo put out there their letter basically you know, anti-parents rights. that's monumental because their approval rating was something like 77% last year. on the flipside you see netflix sending a letter to their employees, no, we'll respect people's opinions. we will respect artist iic

creativity. when you look at woke policies that exist in corporate boardrooms. that is something we at america first legal are focused on and -- david: ian, we have only 10 seconds literally. will this disinformation board being paused by the administration continue in some other form? >> oh, it is absolutely going to continue. i think they realized how poorly they rolled it out. they will try to do a 2.0, keep trying to do what they're doing, no doubt about that. david: ian, good to see you, thank you very much for being here. appreciate it. coming up, gas prices hitting another record marking a rise every day this week when prices at the pump could go above $6 and even more! more on that the next hour. ♪. meet jessica moore. jessica was born to care. she always had your back...

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♪ how low can you go? ♪♪ david: usually i'm not crazy about that kind of music, but it fits. this is the perfect i'm for it. how low can markets go? the dow and s&p 500 continuing their slide, the dow down close to 300 points after losing 1100 yesterday. it was an awful day. and the s&p closing in on a bear market. it was trading a little bit positive earlier. the nasdaq is having a rare

green day, rare for the last couple of weeks. welcome back to the second hour of cavuto coast to coast. i'm david asman in for neil cavuto. we've got a busy hour again, so let's get started. the stock market is not something that the white house tends to, quote, keep an eye on every day as new white house press secretary karine jean-pierre if said yesterday. edward lawrence is at the white house with more. they are opining on it today, are hay not? >> reporter: yes. they're not talking about it today here at the white house. the president now, as you know, on his way over to asia. the national retail federation is asking president joe biden to remove all tariffs on china as a way to lower inflation and help out this market and their sales going forward. the white house again saying that that they don't follow the markets day-to-day, but with all the red they're seeing, maybe they should start. dow and s&p are coming off the day which was worst day since june of 020 -- 2020. markets off again today, concerns of growth.

we had one negative quarter so far, two would be considered, as you know, a are recession. the atlanta fed gdp is now saying that the send quarter gdp will grow at 2.4%. however, this measure gets adjusted every few days, and it has been adjusted down. the white house pushing the narrative that inflation rests with the federal reserve, deflecting any responsibility. if. >> you know, the federal reserve is independent. we leave them to make their own policy decisions. we do not get involved in that, and nothing has changed on how we see the stock market. we do not -- that's not something that we keep an eye on every day, so i'm not going to comment about that from here. >> reporter: yeah, but focusing on economy and inflation serious business. big banks starting to talk about that r-word in their reports this week. morgan stanley raising chance of a recession next year to 27%. it's up from 5%. republicans blasting biden for not doing anything to fix issues facing the u.s. right now from border to the economy. >> i mean, everything this

president has touch toed he has failed at, but he has made america weaker in that process. and when you watch the democrats inside congress and senate mirror those same decisions. >> reporter: and so far the white house acting on baby formula issue but no major policy issues changing related to the economy. they're still pushing for more government spending. david? [laughter] david: yeah. that's going to solve everything. thank you very much, edward. with the markets in yet another selloff, many are left wondering are we already in a recession? let's get the read from former office of management and budget director, russ vought. great to see you again. i talk to a lot of people who publicly are saying 27% chance, 28% chance, and in private they're saying it's a lot closer to we're already in a recession. what do you think? >> yeah, it seems like it. we had a bad first quarter in which we had negative situation with the, in terms of gdp growth. another quarter, the fed has

really no ability to try to raise rates and prevent a recession. i mow they think they do, but the reality -- i know they think they do, but in reality, that's not going to happen. we have inflation battering the american people and the businesses across this country, so i don't see any way out of it. i think we're headed towards a recession, unfortunately, notwithstanding some of the projections that are out there for the second quarter. david: it's never a good time to be in a recession, but coming out of pandemic is probably a better position to enter into a recession than coming out of a lackluster economy. i mean, we do have this 11.5 million jobs surplus. many people -- many more jobs than already people looking for jobs. that's a good thing. we have a dearth of invenn our in the housing market -- inventory in the housing market. there are a lot of people who would like to get a house that can't get one. we do have the overhang of coming out of the pandemic, that

is a positive. will that blunt the impact of a recession? if. >> it could, but we also have to take into account the fact that we are moving out of a pandemic economy, and we don't quite know what that's going to look like. moving from people scaling up on a lot of their, whether it's streaming or amazon and how that, the economy shifts back to normalcy is something that i think we just don't know yet, and i think it's going to be one of those things that causes a lot of economic turmoil that may have a downward effect instead of an upward effect in terms of gdp growth. david: we do know that the last time joe biden was in an administration when he was vice president, they came out of a deep recession, the so-called great recession of 2009, and they did exactly the opposite of what a lot of economists say you should to coming out of recession. economists tell you you've got to increase incentives for business by lowering taxes and lowering regulations to get more businesses going. they did exactly the opposite.

could you imagine if we are in a recession right now, if they continue on regulating more regulations in, for example, the energy business, could that put us in a double dip? >> yeah. and that's where i was going to go, david. if you talk with the energy industry the guys, the ones that are really patriotic, hard working, they're not the woke, big corporations like exxon, but these are the ones that are trying every single day to make a living and to be able to insure that they can get the right energy resources to the american people, yeah, price of energy is high. they believe it's too high. but what doesn't allow them to invest is this administration's posture regulatorially to their business. so every step of the way from a standpoint of regulatory barriers, they are seeing signals that say don't invest in energy production, don't invest in energy distribution, and that is going to cause a lot of overhang in that major part of our economy. david: yeah. and meanwhile, they're removing

the barriers to venezuelan oil, which is a whole other story. it's crazy. there's something you wanted to talk about which is lifting title 42. immigration is not something you usually talk about. you're more economically-focused, but there are economic repercussions from this, are there not? pleasure. >> there are. we're facing a crisis right now at border, and it's going to really impact the entirety of the country that's seeing this from the stand point of their communities if and the drugs coming across. this would take us from somewhere around 7,000 apprehensions per day to 18,000 apprehensions per day. we have proposals to allow state border governors to be able to unilaterally secure border. we have a decision coming up in which the biden administration will either be allowed to revoke title 42 or not, and we need a great deal of attention particularly with governor abbott and governor ducey to use the legal foundation they have

to secure the border, and this week will be very critical in that debate. david: that translates into 6.5 million a year. when you have a surplus of so many jobs as we've had for the past year, that may not be as bad a problem when you're in a recession. if we're going into a recession and we have 6.5 million people competing for jobs that might not be there anymore, that also has serious economic repercussions, doesn't it? >> no doubt about it, it has economic implications, it has schooling implications. communities are already struggling right now with trying to absorb these individuals from a services, government benefits industry. and so this is a major issue that we are facing, and the biden administration if once again, you said on the front of this egg segment there's -- segment there's a lot of things they don't keep their eye on. david: russ vought, thank you for being here, appreciate it. right now californians are paying the most for guess in the country, but analysts at jp

mayor began warn $6 could be the national average before the end of summer. joining me now is mac energy corp. vice president and public and government affairs' claire chase. thanks for being here. you know, they think that it could really get a lot worse partly because of the fact that we're sending so much gasoline over to europe right now. that is drawing down our gasoline inventories to levels that we haven't seen since the 1950s, right? >> that's absolutely right, david. and i think we -- it's something we have to note, because as your guest just said just a few minutes ago, it's difficult because the biden administration keeps saying, well, we're going to do everything in our power to bring could be those gas prices that you're talking about, and then they turn around and cancel more lease sales on federal land for us. so it's really difficult to make decisions in terms of how to invest our capital, how we want to drill, you know, going forward when, obviously, we would love to be able to produce

more oil, but then, you know, when you have an administration that is speaking out of sides of its mouth, it's really hard to do. that david now, i don't want -- david: now, i don't want restrictions on flows of energy anywhere. i think the world works better if those flows are left open. but i'm wondering if this administration gets more calls from people saying, look, first of all, you're shipping our strategic oil reserves over to europe, you're shipping refined gasoline over to europe, we've got to stop the flows over to europe and keep the energy at home, do you think that's possible that a you might have political calls like that? >> you're -- yeah, sure, i do. i thinkst possible, but we also have to realize that, you know, we sort of have an obligation to help out our european neighbors in light of the russia invasion of ukraine -- david: yeah. >> because europe has become so dependent on russian oil, now in order to wean themselves off of that, they have to be able to get it from somewhere else. and we can absolutely provide

the product to europe. we don't have to do it out of the strategic petroleum reserve. we could do it just by opening up the american energy revolution -- david: that's exactly right. >> -- where we were under president trump. david well, no, that's the point. the point is not that you restrict more because it's the restrictions that are causing all the problems. it's you open up. i mean, week we had another series of regulations against drilling from administration. i don't see them changing their attitude anytime soon, maybe not until the election. >> i -- well, you would think that if they were smart, they would do it before the election so that gas prices would come down, but it turns out that i'm not sure that they're really calculating that way because every single movement they have made has been in the face of energy production. it, you know, with the cancel ising of the lease sales, and you're right about the regulatory rules. they issues some rules on our small gathering pipelines are going to cause problems for companies like mine that are

producing 350 wells and are really struggling to find ways to get our product into the pipeline and then into the refineries which have lost, you know, a opportunity of capacity since 015. a ton of capacity since 2015 because it's been so difficult to get them updated or find the investment in refining capacity. so it's just with every turn. david: claire, i'm sorry, i'm getting the wrap, but i have to ask you one more question. i had an interview with former president trump a couple of months ago, and he said -- we were talking about the energy crunch and how that's leading to higher prices. he said you could turn it around very quickly; that is, end these restriction ares that have been put on drilling and pipelines, etc., and within a couple of months you could have prices come way back down. would that be such a quick reaction if this administration had a reversal of policies? >> it would be pretty quick, i'm not sure it would be a couple of months, david, but we would be able to get it done probably within six months, i would imagine.

david: six months. wow. i'd take that if i could. claire chase, thank you very much, good to see you. coming up, elon musk ripping into, quote, phony social justice warriors after tesla is booted from the s&p 500 esg index. this is a woke index that oil companies are on, and tesla -- one of the best electric car companies in the world -- is not on. what's up with that? we'll get into that coming next. ♪ no, we ain't gonna take it. ♪ we're not gonna take it anymore ♪♪ you know liberty mutual customizes your car insurance, so you only pay for what you need? like how i customized this scarf?

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attorney general merrick garland are met yesterday with supreme court officials to discuss the security needs of justices as prosecutors continue to show up at their homes. garland says, quote: the justice department will not tolerate violence or threats of violence against judges or my other public servant ises at home, work or any other location. some republicans say these protests already amount to illegal court intimidation. >> -- supposed to be a unifier, and yet he's endorsed this idea that people can show up which, by the way, is against the law, at the justices' homes and protest. protests, as you know, we've seen over the last couple of years can turn violent. this is un-american, it should not be endorsed and be okay in this country. >> reporter: last week then-white house press secretary jen psaki refused to discourage protests in front of justices' homes, only urging them to remain peaceful, a message her successor carried into this week. >> we believe the right to

peacefully to protest in this country is fundamental. but we also believe that violence, threats and intimidation have no place in political discourse anywhere. that is true whether it is in front of a courthouse or in front of a health care clinic. >> reporter: the senate has already passed a bill to extend protections for supreme court families. david, back to you. david: just to be clear, that federal act, the federal code does not specify just violence. that's any demonstrations in front of the home of a judge or justice to affect their opinion is obstruction of justice. anyone, even if it's not violet. thank you very much, rich. well, the race for the republican senate nomination in pennsylvania is likely headed for a recount with dr. mehmet oz still holding a very slight lead. bryan llenas following all of this live from delaware county. bryan. >> reporter: hi, david. well, that is a very slim lead that keeps on getting slimmer. dr. mehmet ozover former -- lead

is about i would say 1200 votes at this hour. that is oz's lead, and that is about half of what it was 24 hours ago. race now appears to be headed into a automatic recount whichics into effect if the margin of victory is .5% or less. the question now is whether there are enough uncounted ballots out there for mccormick to surpass oz, and that likely won't be answer for some days. inial gainny county, some delays there. voting machines in the precincts had to be delivered to a valuized facility where the voting data could be extracted. at 9 a.m. today the county election officials were sworn in, and they began reviewing those ballots. we're toll we might not get a full result until next week. and many lancaster county, poll workers are expected to be done today going through 02 -- 22,000 ballots by hand after a printing

error. bottom line is we're told oz camp is feeling cautiously optimistic that they will hold on to this lead believing that there aren't enough votes to overtake the lead. mccormick's camp is pointing to the pact that most ballots that are left over from the mail-in ballots will likely go over to their candidate. listen. >> our campaign had put a lot of energy and time into focusing on these absentee voters and focusing on our ground game. and so that has paid off big dividends, and this is a huge number of absentee ballots which we're winning disproportionately. we have covered all counties to insure the ballots are correctly counted. election is ours. we have done well. >> reporter: now, we just got an update from the state department here in pennsylvania which it's now telling us that there are about 17,000

republican mail-in ballots still left to be counted in the state of pennsylvania as of 10 a.m. this morning. behind me cowell see delaware county, they are now rescanning ballots so that they can be read from four memory sticks that just didn't initially worked, so they're rescanning the ballots to just double check to to make sure they have number right, help those four memory sticks will then be brought over and calculated into the official i -- official count. happening right in front of our cameras, and every vote counts -- [laughter] david: i'll say, absolutely. it's hard for either side to be confident. you can't be confident whenst about 1,000 votes. i mean, that's razor thin. bryan, thank you very much is, appreciate it. well, the race is on in georgia. recent polls showing that incumbent governor brian kemp is leading former senator david perdue in the republican gubernatorial primary. chief national correspondent connell mcshane joining us from marietta the, georgia, with the latest on this.

connell. >> reporter: hey, david. it's interesting because governor kemp has opened up a commanding lead over former senator david perdue in the polls, and what's interesting about it is that former president trump has endorsed perdue, not kemp. you look at these figures, and it is kemp in the latest fox poll with a 60-28 advantage, 60-28. basically triples his lead from march when he was up 11. now it's 32, and republican operative ryan robinson telling us earlier today why he his the trump endorsement really hasn't had much of an impact on the race. >> it's very difficult for any republican to run to the right of brian kemp. and the way you win a republican primary in georgia is to be the most conservative candidate in the race. so the attack the on brian kemp, that he's not conservative enough, that he's a rino, voters didn't believe it. >> reporter: yeah, they're just not buying it. so the way it's shaping up if kemp duds indeed get by -- does

indeed get by perdue, he'd have another matchup with stacey abrams in the pall. herschel walker is likely to have a showdown with senator raphael warnock. as for the issue of trump, to go to back to president trump's influence here, he is quite popular, david, among republicans sill in the sate of georgia. in fact, that same poll showed that the former president's paver about rating among republican primary voters is at 78%. but when you talk to voters, we've spent day doing just that, what they will basically tell you is they know kemp. many of them like above kemp, and almost all of the republicans we spoke to say they're sill going to vote for governor kemp even hoe he doesn't have the trump stamp of approval. a. david: yeah erik it's fascinating -- yeah, it's fascinating. i'm actually more interested in the senate race where herschel walker could unseat a democrat. good to see you, my friend, thank you very much. let's take a quick look at

the markets. by the way, we now see nasdaq in the negative. that had been trading fairly comfortably, although nothing's comfortable on the nasdaq these days. it was in the green for most of the morning. it does now is just barely trading negative. it may go green as we're talking about it, but the dow is down about 234 points, s&p is down about a half a percentage point as well. nearly all of the gains that the nasdaq had made are gone, but we're going to be keeping on the markets steadily for the next hour and a half here. we'll be right back. ♪ -- to you won't find nobody else like me. ♪ singing, follow me and everything is all right -- ♪ i'll be the one to tuck you in at night. ♪ and if you want to leave, i can guarantee -- ♪ you won't find nobody else like me. ♪ lemons. lemons. lemons.

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♪ david: so melvin capital is winding down funds after suffering heavy losses on meme stocks. charlie gasparino has the latest on this. charlie. >> yeah, they're done, heir toast. [laughter] it's been an interesting ride for melvin. they were at the center of the meme stock controversy, remember? they bet negative on gamestop, on amc. they looked like a sure bet for a short, and then the shorts -- then the squeezers came, and that's all these retail investors piled in and almost put them out of business back in early 2021. and now they are, they are definitely done. it's been a rough couple years for them. now, the question is they got out of the meme stock shorting business, they bet wrong on other stuff. question is how many more melvinings are out there, and that's what everybody in the market is talking about right now. every sophisticated investor is talking about that. here's how it's breaking out. most smart fund managers have totally ca capitulated and

derisked. so that's -- [inaudible] i'm pretty sure steve to cohen has derisked. they've ramped up their cash positions -- david: were they ever in the meme stocks? >> i bet hay dabbled a little bit. they might have gone short, right? but the bottom line is they totally derisked. and so the question is, like, hedge fund losses, probably another melvin. here's the real kicker, when does retail capitulate. when does the average investor say, i'm out. and from what i'm hearing, they're still holding on with hair diamond hands. and you know that because amc which is a typical meme sock, you still have people holding on to this piece of you know what. i mean, i always say that because it's not worth 13. it's a good company, it's run by a decent -- david: glad you added that. >> adam aron, but if you're talking wall street lingo, that is not a $13 stock, you know

what i'm saying? given the losses and everything. but it's still holding on. i think when you see amc totally capitulate, gamestop totally capitulate, even crypto, that's when this market takes another wicked leg down, because with retail is still holding and still thinking it might come back. again, it's the heroin addict thing, like, they don't concern you don't want to admit you're an addict, so you stay on it. david: you want to hold on. >> but you've got to at some point because thing, as you know, ain't getting better. how many more fed rate increases will? david: well, and if we're right, the recession's got a ways to play out. charlie gasparino, you've been on it for a while, thank you very much. tesla's ceo, elon musk, slamming the s&p 500 esg, kind after -- can kind of a woke social government index, after tesla was cut even though a lot of oil companies are on it.

let's get reaction now from strategist luke lloyd and the expert press ceo dave maney. good to see you both. dave, i'll come to you first. for those who don't know -- and, frankly, i didn't know a lot about this index -- it is kind of the epitome of the woke crowd in the corporate world. if you're on that index, you're considered to be politically correct and woke, whatever terminology you want to use. here's elon's tweet, if we can put it up on the screen here. exxon is rated top ten best in the world for environment, social and governance by s&p 500 while tesla didn't make it. esg is a scam. it has been weaponized by phony social justice warriors. count he have a point? doesn't he have a point in. >> i agree, he's got -- there's an element of truth in it. i think like all things it started out asking you know, an aim to promote what we could probably agree are worthy goals. whether we think it's right way to do it or not is a different

thing. but when you get to that point where you take a guy who is, i mean, i think we could all agree that nobody on the planet has done more to advance the cause and make possible cause of the electric vehicle, kind of the number one enemy and target, the internal combustion engine, the number one enemy and market for the -- target forget climate change crowd. and to have them turn on him just at moment when he kind of emerges as somewhat of a thinker in the free market, free speech crowd certainly is ironic, if nothing else -- david: hypocritical. luke, point is that the word hypocritical comes to my mind. because as dave outlined very cheerily, it is the number one -- clearly, it is in the number one green company in the world in terms of what it's done against the internal combustion engin. it is the electric car company.

and for hem to be stripped out of that woke index, it's same as the biden administration saying they want to cut down on fossil fuels here, and then they go to venezuela which produces fossil fuels in a much dirtier fashion trying to fill gap that we have left because of their attacks here on fossil fuels. >> i wouldn't just call it hypocritical, i'd call it absolutely ludicrous too. i mean, elon's companies are exactly what esg was supposed to be about, but in reality esg is just a fancy term used by asset managers to try and get people excited about investing money with hem. if you dig deep, it's basically an overpriced s&p 500 fund. it didn't come as a way to invest to make world a better place. it came as another way to make money from investors. what does social governance even mean? that could have thousands of different definitions, right and and the reason he got kicked out is only because people aren't

agreeing with his political and social takes, so his companies don't fit the social or governance aspects of esg. hypocritical and absolutely ludicrous. david: dave, he's not going to make the situation better by his tweet yesterday afternoon which admissions in the past i voted democrat, but they have become the party of tuition and hate, so i can no longer support them and will vote republican. now watch their dirty tricks campaigns against me unfold. [laughter] that's not going to make him in any better position with the esg index, is it? >> no, it isn't. and, look, you know, i can't say i'm fully onboard with the notion that there's no, that it has no merit or that it's purely a political construct. i don't think it is. but i think they do, i think that index and that world of esg investing, that does a tremendous disservice to say, you know, gee, as soon as you disagree with us politically, then you can't be on our index because that then sort of says

there was no value in promoting diversity, and there was no value in promoting, you know, better governance or more open governance, and i think that's sort of wrong. but clearly, the hypocrisy of the index itself has been strip away. david: all right. i think they've been hypocritical right prosecute get go, political right from the get go, but that's just me. dave, luke, thank you very much. well, the biden administration is trying to ease the burden on families struggling to find baby formula, but is it too late? and is it going in the right direction? we ask north carolina congressman greg murphy coming next. ♪ oh, like, baby, babe baby -- baby, baby. ♪ thought you'd always be mine ♪♪

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♪ david: you're looking at a live shot of the senate floor.

that's senator mike lee speaking right now where they just voted by 86-11 in favor of sending $40 billion more in aid to ukraine. president biden is expected to quickly sign that bill into law are. we've got north carolina republican congressman greg murphy joining me now to talk about this and other things. first of all, what do you think about that vote? would you be in favor of it? >> i did vote in favor of it, cave, because a great portion of that aid really was to replenish our own military supplies which we desperately needed to do. and, you know, if republicans were in charge, maybe it would have been a lower number, but we desperately needed to requip off own military, so i'm very glad that the senate has passed that. david: you know, a lot of americans who might be very supportive of ukraine and their battle against the russian invaders might peel that to spend $40 become on top of the tens -- billion on top of the tens of billions we've already spent while we can't find baby formula on the shelves is just

not conscionable; that is, as much as we support the ukrainians, we should focus on what's happening at home, particularly when people are in dire need. what do you say to that? >> well, david, it's a different issue. one is a supply chain issue, and the other is a funding issue. the biden administration knew about this problem, good lot -- good lord, almost close to a year ago. this is a total lack of competence by biden administration. you know, the fda basically shut down abbott labs which is one of the world's greatest suppliers for baby food, i mean, for formula. but they never would give us the plan how to9 get back on track. so it's not a matter of funding by any means. american people willing to pay for the stuff,st the fact that incompetence has become emblematic of this administration. they can't seem to get out of their own way, and the american people are suffering. we're suffering a third world problem in this first world country, again, to the utter incompetence of this

administration. david: it's extraordinary. now, they say, the administration says they're going to look at the defense production act in order to ship more formula from overseas back here to the united states. again, it's like giving aid to a third world country. but that has been used, the device that was used by the trump administration to gin up the supply of ventilators in the beginning of the pandemic. so we've seen it before with other republican administrations, but is that the proper tack to take at this point? >> not at all because, dave, look at this. this is a crisis, again, create -- as so many we've seen over the last 15, 18 months -- by the biden administration. and then for hem to use the defense authorization act to try to fix it when their own problem is fda. it's very similar to just now us depleting our oil reserves because of a problem that the biden administration again created. it's just, we're seeing an

incompetent administration. and their incompetence seems to level and add on each other daily on what they do. no, it's not the right move at all. david: they're also great at pointing fingers. so is everybody, let's face it. but we have nancy pelosi yesterday came out with a statement that seemed to come out of nowhere suggested that somebody's going to be indict or that she thinks somebody will be indicted as a result of this? do you know what she was talking about? >> yeah, dave, i heard that, and i don't know. maybe she's going to indict the administration which, by all means, we should indict -- david: i don't think that's going to happen. >> i don't know what she's talking about. david: the i mean, obviously -- to me, it was obvious she was putting finger on private sector and the company that is actually making the formula. to what extent are they culpable, if at all? >> well, you know, we had problems with their formula creation several months ago. there were some ingredient issues and some possible safety issues, so they had to withdraw product. but then to get approval to start back up again, you have to

get the fda to say, yes, this is the plan of coming back onboard, but the fka wouldn't answer -- fda wouldn't answer their calls. don't blame this on the private sector when the government does the not give them an answer to start it back. it's utter nonsense. again, that's what speaker pelosi and this administration seem to have as their daily routine. david: finally, to get back to your original point, americans see everything kind of falling apart right now, turning into a third world country when you can't get enough baby formula, for goodness sakes. 75%, 76% -- the figures vary, but it's always over 70%, at least for the past couple of months -- of americans think we're on the wrong track now. there are consequences for polls. i'm not big on polls, but, i mean, this is consistently the case for the past couple of months. how will democrats pay a price for? is it all about november? >> well, i think a large majority of that is about november. and, dave, i want to meet who

those 16% are that feel that things are -- david: i bet they're inside the beltway. [laughter] they don't have to worry about baby formula inside the beltway. >> yeah, sure, sure. i don't understand that. but i think things will be seen in november despite the democratic gerrymandering in so many states like new york and illinois. i think there will be a red wave. sadly, it's occurring on the backs of americans. go to the pump, the grocery store, the american people are suffering because of these disastrous policies by administration. david: congressman greg murphy, thank you for being here, appreciate it. well, mortgage rates holding steady as existing home sales drop. up next, should home buyers be expecting a cooldown? that's next. ♪ pleasure. ♪ ♪ got a way to go, but this is still the place that we all call home ♪♪

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do you think the home buying market is really cooling off right now? >> thanks for having me, and i definitely think what you're going to see is it cool off significantly. i don't know if that necessarily translate ares to an immediate price reduction because whenever you have a transition in the marketplace, it usually takes about six months to embrace the new reality of what the market is, and pricing should be reflected -- the decrease in pricing, i would say, six months process now. but quite honestly, i really do think you're going to see a very substantial decline in activity, but i think pricing's going to remain somewhat stable given the fact that inventory is still significantly low with everything going on. david: well, that's exactly a point that i made earlier. it's unlike 2009 when you had, you know, all this stuff that was moving mt. housing market. now -- in the housing market. now we're stuck because of the effects of the pandemic and the labor shortage, we have a dearth of inventory on hand.

will that kind of -- i mean, if we're in the mid ifst of a recession, and a lot of people say we're already there, will that kind of insulate the housing market from the worst of the recession? >> you know, when you compare it to 2009, 2009 was fueled by subprime lending and funding activity, and we're not living through that right now. i think if there is, in fact, a recession, you know, many people view real estate to be a stable and safe investment. keep in mind, a significant amount of activity we've seen in the last couple years has been driven by investors and second home buyers who a large percentage purchase in cash. so i do think that, you know, if we do enter recession stage is, certainly housing won't be spared and will suffer some adverse impact. but i don't think you're going to see anything bloatly close to what you -- remotely close to what you saw back in 2008 and 2009. david: second homes in a lot of cases were becoming first homes. a lot of people decided because they could work remotely, they'd use their second home as their

primary home. they gave up their place in the city or wherever. is that still in effect, or is that turning over a bit? >> to some extent, it is still thisfect. it's nowhere what it was, obviously, since the inception of the pandemic. but if you think about it, companies -- i own a law firm in manhattan, and we're all still navigating how to figure out what our new normal will be. you know, what departments will be hybrid, what departments are fully remote, which employees are going to be in the office every day. and given the fact that, you know, and i'll tell you just as an example myself, every single business in the world's going lu this. ap apple's -- apple's just delayed a three day a week return to the office because of a surge in cases indefinitely. and what does that mean? les still going to be a crop of people and employment force that are going to say, you know whatsome maybe i should relocate how the proximity i have to be to my office given the fact that we're on year three. this is year three.

this is not a phase, right? this is a part of life moving forward, and i think a lot of people are still trying to figure that out. david: well, and americans move. that's what americans do. europeans have a tendency to stay where they are for generations. americans have a tendency to move on, to be able to move. and if we have a recession and all hose jobs that are available right now -- those jobs that are available right now dry up, people are going to have to move to where the jobs are. what areas do you see people moving into? is it still down in florida, texas and places like that? >> yeah, i mean, florida and, were the biggest beneficiaries of the last two years. they had the highest increase of new residents i think in 2020 and 2021 is. now, you know, you bring up a good point, if people are forced to come back to the office because of the fact that maybe the pendulum shifts away from the employee having all the leverage and back to the employer due to the decline in job openings, you may see people move closer to major cities such

as new york because they'll have to be in more frequently, but that's a tough one to answer. i think no matter haw how touch labor shortages are and what we're all going through in dealing with the employment force, most employers and employees have to become flexible. david: by the way, commercial real estate is still being built all over place in manhattan. i just wonder who they're boeing to get to pill those places -- going to get to fill those places. pierre, it's a very interesting environment. let's hope it won't last too long. pierre d can ebas, thank you very much. the nasdaq struggling to stay in positive positive territory. apple's stock getting hit particularly hard in the last few hours dragging down the index, but as you can see, it's up about half a percentage point. we'll be right back. before investing consider the fund's investment objectives, risks, charges and expenses.

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david: investor must know it is charles payne time, things are looking a little better, charles. charles: hashtag cp effect. i will take it from here, david. david: you take it. charles: good afternoon, i'm charles payne. this is "making money." breaking now, markets start the day under pressure ones again. buyers are kicking the tires so when does the carnage stop? i have market pros that guided you the right way talking for weeks and weeks. they're all back. they will share with you what they think, i will share with you how to make a potential buy list. i will take you to stock school. elon musk the latest