reach our own handwriting sometimes i can't even read what the heck i wrote but when i can it's great. some of the names i think are going to be giant winners in fact n-phase is in the top 3 percentage gainers alone. folks i'll leave it here i promise you the cp effects giving cheryl casone a little bit of momentum, cheryl what are you going to do with it? >> hopefully not what we did yesterday with it, charles. the bull bulls are at this point making a frantic final hour charge after yesterday's massive sell-off that we were just talking about. the dow, remember, bringing up its ninth biggest point loss in history. the s&p 500 and the nasdaq down as many as 473 points earlier now the dow is just down by six points at one point it was only down three. i say only because that's a very trish regan for today and the dow just went positive. s&p right now is up by 11 points nasdaq is up 96, now, economic

data, its been mixed. the jobs picture still bright, as fractures in the housing market begin to show, and mid-atlantic manufacturing activity slides so the nations top money managers join the floor show withins tan analysis on all of that. meanwhile russia's invasion of ukraine could have in untended consequences for vladimir putin as more more nations seek to join nato, we'll go straight to the white house for details as the president embarks on his first asian trip and the nations battle with covid raging on as cases are once again on the rise. we're going to talk to the company that completely flipped its business model in the middle of the pandemic to focus on testing for the deadly disease. the express spa ceo here in a fox business exclusive. i'm cheryl casone, i'm in for liz claman. well, what a difference, well, a couple of minutes makes. take a look at this the dow just turning positive for the first time today, as you can see , now

it's down 16 but we did have one quick flash of grey and the s&p and nasdaq though are staying strong here and trading higher, russel 2,000 as well. the transports still in the red by 92 points. now markets as you can see in better shape than they were after yesterday's sell-off, which caused the dow, the s&p to have their worst day since june of 2020. the wilshire 5,000 index plummeted 4% that was a paper loss of $1.7 trillion, the worst day and the philly fed this morning, reporting that the manufacturing sector in that region saw its lowest expansion rate in two years. the expectation was a 16 it came in at 2-point of this morning, and take a look at existing home sales, also slumping to the lowest pace that we've seen since june of 2020. slow down in real estate we're going to talk about that, and then while retailers were blamed

for yesterday's sell-off that's not today's story, take a look at kohl's right now. the stock is actually higher by almost 5%, despite a massive earnings miss and slashing profit and sales outlook for the year. in particular, they talked about the month of april being kind of a rough month coming up and that's going to be in their second quarter. company did say that it has multiple interested buyers as it explores a sale of the company, of course they've got two activist groups that want them to sell. then there's a silver lining to that retail wreckage. bj wholesale club beat estimate s and reported faster- than-expected sales growth so has the market finally found a bottom? let's get to our floor show joining me now straight of juan de fuca jpmorgan chief global strategist david kelly always great to have you here especially on days liked to. first give me your view from 33,000 feet about what you're seeing. >> well, what we're seeing, obviously, is a very significant correction, almost a bear market

since january, and what's really been going on is weave got this inflation problem and people are worried about inflation but they are also worried about the federal reserve being very aggressive on interest rates so you have high inflation and then the fear that the federal reserve may do too much and put the economy into recession. all those fears are weighing on the market. i am a little bit more optimistic. i see valuations now look much more sensible in the bond market , they look much more sensible in the stock market. i think there are lots of things which are actually good value at this point if you have the nerve >> you wrote though that you believe and you say we as in you and jpmorgan that the federal reserve will cool its hawkish receipt rhetoric in the next few months. >> i think so because the thing is they don't have to fight inflation to the death here. inflation is high right now. it is going to slowdown. we are seeing biggest fiscal drag since the end of world war ii. we're going from a deficit of a $2.8 trillion last year, i think

only 800 billion this year. that is a massive drop in fiscal stimulus. you've got a high dollar that's selling exports, these higher rates slowing the housing market that does slow growth but it really erodes inflation so as this year goes on inflation pressures diminish, recession fears increase, and the feds not impervious. when they see inflation begin to turn and growth softening i do expect they will talk a little quieter about how they will be balanced and as soon as they start sending that signal it will really help markets. >> you wrote extensively as well about the falling budget deficit. explain. >> well, yes, and i think this is a hidden story here. it's really remark clarissa. the budget deficit over the prior two years was 3.1 trillion and then 2.8 trillion. this year it looks like about $800 billion and maybe over $750 billion next year and then that's going to 3.4% of gdp down to 3% of gdp. what's happened is all this

fiscal aid is gone and the economy seems to be able, you know, we saw the strongest single month for federal budget surplus in history in april and i think this just under-reported we're seeing massive progress on the budget. it does remove the risk i think of a mid-term fiscal crisis, but it does also drag on the economy because it's a lot of money that isn't in the pockets of lower and middle income households. they were so used to getting stimulus checks, that's gone away and that is slowing demand in the economy, but the budget is improving very rapidly here. >> let's talk a little bit more about the short-term picture, for those that are really kind of especially those that maybe approaching retirement and looking at these markets and the losses that we've seen. we've got the s&p nearing close to bear market territory, not today, but a lot of folks have been looking at the bond market as a better bet. you say that there's something that you're seeing that we need to pay attention to. what is it? >> well you know, i think the fact is that we seen rates double. we were at a 10 year treasury

yield of 1.5% at the turn of the year we're now up at 3% so given those rates those aren't bad, particularly if you think the fed is going to lay off a little bit here, so i think what's really, you know, why are people so gloomy because you've got the stock market flowing and the bond market flowing this year. if you look at the 60/40 portfolio it's down 12% year-to-date there's only one year, 2008 which is worse but going all the way back to the 1970s so its been a really rough start to the year for both bonds and stocks but bonds do look better and bonds offer protection. long term bonds offer protection if you fall into a recession and one other thing. high yield has fallen off tremendously. if we can actually manage to see a soft landing, if growth slows but we don't go into recession high yields will do very well so that's part of the answer also. >> i was looking at the 10 year yields falling seven of the last o 10 sessions so interesting reversal from what we've seen previously, so i think that's interesting to watch as well, david, and i like that you're talking about a soft landing and

not a hard landing for this economy. obviously we're watching a lot of things and inflation is a tough story right now. we're talking a lot about it david kelly, david, thank you very much we appreciate it. >> anytime. >> we've got a fox business alert for you right now. shares of cisco falling today after the networking equipment maker projected an unexpected decline in sales. the company forecasting a 1% decline in revenue for the fourth quarter, much lower than analyst expectations of growth of 6%. cisco blames the ongoing lockdowns in china, which have made existing supply chain woes even worse. the company's finance chief also warning that component shortages would continue through get this the next quarter. that is an issue for many american businesses out there. all right, taking a look at other networking equipment maker s now, juniper networks and say en into, all of those stocks are in the red, juniper down 2.5 %, f 5 down 2%. all right let's move over to the

retail story once again. bath & body works shares also slipping today. the personal care products retailer cutting its profit outlook for the year. the company reported a net sales decrease of 1% for the first quarter compared to a year ago. the stock down more than 4.5% right now. canada goose shares flying higher after forecasting sales profit that beat wall street expectations. as the maker of high end winter wear, said that consumer confidence remains strong, shoppers have returned to pre- pandemic trends, canada also says it's insulated between supply chain issues because most of the manufacturing is guess what? done in canada. how about that. canada stock is up almost 11% and then there's this , under armour ceo patrick frisk will be stepping down on june 1. he did not give a reason for his departure. morgan stanley downgraded under armour from equal weight to overweight following that news.

earlier this month under armour said global supply chain obstacles were hurting its business as renewed covid lockdowns in china put a dent in demand and offered a disappointing outlook for fiscal 2023. the stock is down 56% year-to-date down almost 11% on the news of this departure, current chief operating officer collin brown will serve as acting president and ceo. well the war in ukraine could re make the maps of western europe, but also, reshape the membership of nato. we're going to go straight to the white house after the president met today with the two latest applicants to the international security alliance. >> taking a look at the markets, well, dow falling just a little bit more right now, down 55 points but we are well off of session lows at one point the dow was down 473. woke up this morning, looking for another rough day. we're not getting it, so we'll take it, that's what charles payne was saying as well. "clayman countdown" is going to

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>> cheryl: well, google completely moving out of russia as its accounts in moscow have

been seized by authorities and forced its russian subsidiary to file for bankruptcy. vladimir putin's war in ukraine raging on. ukraine claims the russian army has lost close to 28,000 soldiers since the invasion began on february 24. the senate passing a bill today on the $40 billion ukraine aid package, and sending it to the president's desk. at this hour president biden is on his way to seoul south korea for a six day trip his first presidential visit to asia. earlier he welcomed the leaders of finland and sweden to the white house following the official submission of their bids to join nato. a lot going on at the white house let's go to edward lawrence live from there with the details. reporter: hey, cheryl. a lot going on in fact the president was standing between those two world leaders the latest applicants right over there in the rose garden. the president with the president of finland and the prime minister of sweden who drove in in a volvo, announcing their intention to join nato.

>> we already appeal to the security of the whole, making the commitment to mutual security currencies, thus being a nato allie. >> my government has come to the conclusion that the security of the swedish people will be best protected within the nato alliance, and this is backed by very broad support in the swedish parliament, and with sweden and finland as members, nato will also be stronger. reporter: president joe biden welcoming the applications, but turkey blocked the fast-track vote. turkey's president with a longstanding relationship with russia questions the addition but not president biden. listen. >> so today, it's an affirmation of most countries in europe that share our values that we're willing and able to do what it takes to be part of the alliance. nato's door remains open.

reporter: the president right now on his way to south korea and then japan for a quad meeting there, his focus is going to be trade, fixing the supply chain issues, especially with china's relationship, and dealing with north korea. back to you. >> cheryl: ed lawrence out at the white house, edward thank you very much appreciate it. the coronavirus cases rising again, as americans learn to live with the deadly disease, but one company that changed its entire business model in the middle of the pandemic is still working hard to identify new cases. the express spa ceo joins us next, it's a fox business exclusive. taking a look at the big board right now, the dow is down by 67 points, 31, 424. we'll be right back. if you used shipgo this whole thing wouldn't be a thing. yeah, dad! i don't want to deal with this.

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its employees to return to the office due to the up-tick in covid-19 cases here in the u.s.. it planned on returning everyone in june. cdc director revealing that white house press briefing yesterday that the seven-day average of hospital admissions is around 3,000 per-day, which is an increase of around 19% from the previous week. now, the coronavirus pandemic taking a dramatic two year toll on the nation. more than 1 million deaths attributed to the deadly virus. xpresspa though flipped its business model in the middle of the pandemic, from airport manicures and pedicures to covid testing and it operates 51 total locations in 25 airports in three countries. joining us now in a fox business exclusive is the xpresspa group ceo scott milfred. it's great to have you on the show congratulations on your role by the way. >> thank you very very much. i'm really happy to be here. >> cheryl: so you're in an interesting spot because we're coming out of the pandemic and there's new variants

obviously, but what did you make of rochelle wolensky's comments about the rise in cases and how does that affect your business model right now? >> well, you know, we're still offering testing in our airports and we're offering it to whoever wants to be tested, if there's a country requirement for pre- flight testing, we'll offer it. i think we'll make antigen testing available in kits in all of our locations, as a convenience for travelers. we want to get people back traveling, as safe and as easily as possible. >> cheryl: but you've also, you've got the spa locations as well that you've reopened in airports. you've kind of got two lines. which is performing better right now? >> right now, our testing

business is performing better than our spa business, but our spa business is coming back. we are reopening them as fast as we can get them reopened, and one of our strategies is to integrate services so that we could potentially offer more than just spa services in our spa, more than just testing services in our checks and that way, we're providing far more opportunity and selection to our customers. >> cheryl: well, i've been traveling a lot for my new primetime show and the airports are packed, beyond packed. you've also got, people like that are going out but you've got this other business that was interesting. it's called "treat" and it's covid testing but also people can go in if they feel like they have the flu or a cold or they want to get vitamins? tell me about that.

>> that's exactly right. >> cheryl: at the airport. >> i'm sorry? >> cheryl: at the airport, right? >> yeah. so we have our first location opened in jfk airport in december. we have a second location that we just opened out in phoenix airport and we'll open our third in salt lake city later on this summer. treat is really the embodiment of everything that we've learned in the healthcare business and what we had already learned in managing all these spas, and so exactly to what you just said. you can walk in. we have retail that somebody can pull off the shelf that's curated for the traveling public , and then you can step behind for a service. you can either do a health service or a wellness service. you could even just go into our

wellness rooms and hang out if you don't want to sit within the terminal. >> cheryl: yeah, and i hear that, and do yoga and things like that, which is some mental health as well. before i let you go, we're showing a stock chart of the company and it's not a pretty picture for the stock right now. i want to ask you about that. do you think that wall street is missing something, or do you think that this is just a piece of the story of the lockdown stocks that did well, like a zoom and a peloton, you started offering covid testing, your stock got a boost from that, do you think that's kind of just the reopening story if you will, scott? >> yeah, for us, our focus right now is on, well let me take a step back. i was brought to xpresspa to help rebuild our spa business and right now, that is what i'm

excited to be able to do and my team is excited to be able to do we follow the stock, we watch it , but our goal and the goal of my team is really to focus on the strategies that we've laid out in order to build longer term shareholder value. >> cheryl: well please come back to the show and update us on your progress. >> will do, for sure looking forward to it thank you, cheryl. >> cheryl: scott milford, the new ceo of xpresspa and as i mentioned i do have a new show on fbn prime, a lot of airports and planes but please watch " american dream home" each wednesday night at 9:00 p.m. eastern time only on fox business, and you can stream it on fox nation, by the way, if you missed it last night. okay, coming up next, we have these $630 billion man, federated joins us with his take on the markets in three words, hold the fort.

all right let's check the markets now we've got a little bit more of a sell-off happening than we did at the top of the show dow down 184 right now, s&p is now back into the red down 14 points and the nasdaq has turned negative we'll see how the next 33 minutes play out, we'll be right back.

>> cheryl: i want to give you an update on the markets the nasdaq as we were going to commercial break the nasdaq went negative now down six points at one point it was up 144 so had kind of a reversal a lot of the big cap tech names have been kind of the story and very affected by obviously interest rates and interest rates going up and the fed moves and everything. the dow at one point was down 473 we're now down 184 and the s&p is down by 15 so we'll see how the rest of the session plays out we'll have a 28 minutes to go or so until those bells ring. well, fox market alert for you right now the s&p 500 at this

hour is inching ever so slowly into bear market territory. it's down more than 18% from its record high on january 3. now as investors chew their nails, the chief investment officer of equities at federated says now is the time to hold the fort. got to ask him what he's talking about let's bring in with $631 billion in assets under management, steve it's great to see you and we have another whale of his own with $70 billion in assets under management, chief market strategist matt or ton with me on set it's great to have you both. so i do want to start, steve, with you and go through a couple points that you've mentioned. first, you're saying you both are, actually, saying it's time to get defensive but steve to you first what does that mean specifically to you? >> well actually, its been time to get defensive, cheryl. the hold the fort was really for clients askings when should we get more aggressive and that's the question we've been asking ourselves. when should we start redeploying

some of the cash and money that we put into defensive stocks back into a cyclicals or even tech stocks and the hold the fort line is probably not quite yet. the markets had a pretty big pacing as you said almost down 20% on average but if you look at it, the cyclical names especially yesterday after what happened with consumer discretionary space, you know, they're all down during this financials, jpmorgan these stocks are down close to 30%, 25 %, so we've already begun to discount what i would say is probably a rocky landing. our forecast is most likely a soft landing, but we can't discount the possibility of something worse than that. there's a lot of moving parts here, so i think it's time to be a little bit cautious and it's going to take time to get answers to these questions so if you want to get aggressive in near term you have to wait so you've got some protection for price and we're getting

close so we think down below 2,800 in that range, you know, is a time to start chipping in maybe just on some of the cyclical names that have been hammered. >> cheryl: okay, matt you were nodding your head as steve was talking you were saying before we started the show that this hard landing we're talking about you aren't as convinced that's going to happen? >> yeah, that's right, cheryl so the way i see it is that there's certainly problems starting to percolate right now with respect to the economy, but i think it's very difficult to move into a recession when you have employment at the levels that we have, even though we had some negative consumer reports this week, everyone seems to have forgotten about the incredible reports we had earlier this earning season so the backdrop for the consumer is still very very positive, so when you have strong employment, coupled with a good consumer, i think it's very difficult to move into a recession and so the market right now is presenting a lot of

opportunities. information technology has been in a bear market for the better part of 15 months at this point, and high-quality information technology in areas like enterprise software, semiconductor, cybersecurity, they have been crushed and there's a lot of good companies that start nibbling at right now and healthcare is another part of the market very defensive. it's counter cyclical, it's outperformed over the past couple of months, but offers a lot of natural growth. >> cheryl: and we saw this group in particular during the pandemic, especially looking at some of the stocks on our screen and pfizer just went nuts , obviously. steve, back to you though. and matt as well, i want to hit on retail because we've got a lot of earnings we've been getting retail earnings out, walmart, steve, we had target, kohl's this morning, actually kohl's is actually higher despite them saying look, we have seen pressure from the consumer, not just mentioned that your thoughts on the retail sector. >> kohl's is a special situation, cheryl, as you know but in terms of target and walmart where a lot of people

are hiding, these stocks weren't very cheap so now they have come off and they are getting pretty inexpensive here and yesterday we learned that they are having margin pressure, and people don't like that. i would look at those companies and say those are some of the areas where you might start to leg in. again maybe a little bit early here, but those stocks have taken a big pacing trading down in more reasonable multiples now so they won't have the margin pressure, but the i mean the pricing valuation pressure but they had a lot of margin pressure an we're forecasting more to come. >> cheryl: we're looking at the stocks, stephen and target, matt, that stock lost 25% of its value yesterday down 5% today. that seems a little overblown to me am i wrong? >> no, you're right, cheryl. blue chip companies and some of these retailers have just been eviscerated. its been incredibly painful to be in those names granted

they're up tremendously from over the past year, year and a half as being pandemic beneficiaries but i think it's too much, given the strong underlying business models. i'm not sure now is the time to be jumping in full force into them just because there's still a lot of uncertainty, there's still the pain that's very very fresh for investors. >> inflation. >> exactly so i think as we get answers to questions on inflation once we get a better sense of how management is thinking about how they manage these problems going forward that could be an area of opportunity but going back to higher quality parts of the market that i think have sold off even more than we've seen, in the consumer space, that's where i think you have the best opportunities going forward. >> cheryl: put your toes back into some of those stocks maybe just a little bit. that's good advice. matt orton, gentlemen, thanks so much really appreciate it. >> thank you, cheryl. >> cheryl: well, now to the latest on twitter. elon musk's twitter takeover laser focused on bots, but what are they? who is behind them?

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>> cheryl: cathie wood is not happy about one of her top investments getting a boot from the s&p 500 esg index, ev leader tesla kicked out, the s&p dow jones indices announced tesla has fallen behind its peers when examined for a wider esg lens. the famous investor called it ridiculous in a tweet last nice, this is elon musk's twitter take

over battle now hitting the bots, a new report from research groups sparked toro found that over 23% of musk's 93 million followers are most likely fake or spam. let's go to kelly o'grady live in los angeles with the latest on the twitter bot battle and he's already kind of intumated to that 20% number on twitter himself, so this is interesting, kelly. reporter: it definitely is cheryl. the bot battle is a main stick ing point of the takeover, the billionaires questioning if the platform misrepresented the number of fake accounts and now despite musk putting the deal on ice i do want to know that twitter is moving forward and reports are surfac ing they will not re negotiate the price. now drawing down on that number is key, as users of the product, not only can bots amplify certain view points and compromise musk's free speech vision but having an accurate idea of monetizable users is crucial. elon has lost revenue alongside his big financing push and

legitimate users determine the company valuation. >> we have an account that looks exactly like a human account, or is being operated where one person is operating a thousand accounts or something, but that person can only buy one toaster. they aren't going to buy a thousand toasters, so you care about number of unique real people, but brand advertising which is really just awareness advertising, it matters if real humans are seeing that or not. reporter: twitter is not alone in this problem, meta quoting similar metrics of 5%, facebook revealed it removed 1.6 billion inauthentic users in q 1. quantifying the number of bots was extremely difficult, no one definition of a fact account, so every group uses different parameters. >> so we estimate to be between 10 and 15% so know exactly how twitter is, calculating less than 5% but no one that i talked to in the past, we think it's that number.

reporter: so musk proving twitter is misrepresenting the figure share will be extreme ly difficult and with this pause in twitter's response it feels like a game of chicken don't you think? >> cheryl: definitely does and look at pricewaterhousecoopers you'd think that they would kind of have dug into this already, but i mean, they signed off on their financials, but i don't know. there's a lot of questions about this kelly thank you very much, great report, kelly o'grady live from los angeles. well, melvin capital says it's winding down funds after suffer ing heavy losses on meme stocks and ongoing market turmoil. is this the beginning of the implosion of hedge funds charlie gasparino is here. charlie: here is something interesting about the musk thing say twitter does not, is not going to renegotiate. >> no they said they are going to enforce the deal. charlie: how do you force the deal? you have to go to court and this gets back to what we said yesterday that people went nuts over. they go to court and they seek a court order for the judge, from

the judge, to compel musk to go through with the deal because he signed the documents, he didn't do due diligence and you have to have a material adverse event in essentially to back out of the deal. again, if he thumbs his nose at a judge, a federal judge, he could end up in jail, and that's stuff that he does a lot. remember, the sec and all their consent decrees he had with them over past settlements with them, so i'm saying this thing is, this is like the beginning. >> cheryl: kelly said the same thing. this is not a dumb man. charlie: but he's rash. why would not say i've got a deal at 420, signed, done deal, i can't remember. >> the tweet that got him in trouble. charlie: it was false and he still said it. i would he call the guy a pedal- dude, the cave drivers?

the guy that -- >> cheryl: the ones that sued him? charlie: yeah. the guy that helped get kids out of iowa cave, and he attacked, he said something nasty about elon. >> cheryl: sorry you've got something. charlie: here is the thing what you see in the market is literally capitulation on the part of major hedge funds. melvin capital going out of business is one part of the capitulation. the other part is most hedge funds going into completely de risking except for a few areas where they see growth largely in energy stocks and things of that nature. retail, from what i understand, has not derisked yet, so what we're seeing is a 240 point decline after yesterday's thousand-plus. >> low 100-plus. charlie: it could be, it's going to be a lot worse when retail capitulates. now when will they capitulate? they were last to capitulate in the dot com, and it just dragged

out and the nasdaq fell to wherever it fell to below 2,000 and it seems like so long ago, but they are holding on to gamestop look at that, green, holding on to amc. those are good bell weathers. when you start seeing everyday and amc falls significantly below 10, then you know retail has capitulated about it hasn't yet. now again, history says it will. it's just a matter of time and then that's going to make this downdraft what we have now much, much worse. >> cheryl: it's interesting we were talking about target a moment ago with another guest and i was like at 25%, you know, hit on target, that seemed to me to be an overreaction. it's a major american retailer, you know? people aren't going to stop going to target. charlie: well but if the fed is going to keep raising interest rates we should put gabe ploch in who ran melvin, pretty interesting if this guy is throwing in the towel, he's

saying he doesn't see a lot of avenues to make a ton of money right now. do we have his quote? i thought we did. the past 17 months have been an incredibly trying time for the firm and you and investors i have given everything i could but more recently that's not enough to deliver the returns you should expect. i decided that the appropriate next step is to wind-down and you'd think a guy like him whose hyper-competitive would try to figure out the next market the problem is the smart money like him is out and they know they can't make it up right now. the question is, when does retail get smart? >> cheryl: the average investor. charlie it's a great topic. it's not a happy topic. charlie: if you got you know what's of steel, you stay in it, and watch it plummet and just don't look at your accounts for six months. >> cheryl: charlie gasparino, winning quote for all of us. charlie: i didn't say that. i didn't say anything. >> cheryl: thank you, good to see you we've got 10 minutes to

see if this market turns around. well, this week of retail earnings has been a see saw for investors costs are weighing on companies we're just talking about it today's countdown closer gives us the name he says is the perfect inflation hedge. taking a look at the big board at one point we were down 473 on the dow we're down 236 we've actually had an escalation in selling we were up about three points for a hot minute, top of the show. we'll be right back. if you invest in the s&p 500 your portfolio may be too concentrated in big companies. this can leave it imbalanced and exposed when performance varies. invesco's s&p 500 equal weight etf, rsp, is spread equally across the s&p 500, which reduces potential concentration risk and helps keep your portfolio in balance. stay in balance with invesco's rsp.

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the second down day in a row. as we mentioned earlier in the show. the s&p 500 is really flirting with bear market territory right now. we're down more than 18% from the highs on the s&p 500. bring in warren financial chief investment officer, randy warren. you know, randy, let's first start with, yesterday's dramatic selloff. want to get your overall take on that. i think we're starting to see capitulation in the market. do you think this is the beginning of something worse? >> yeah. this market is really extremely oversold. we happen to follow an indicator from the s&p called the oscillator. usually when it is minus four or lower that indicates the market is ready for a bounce. yesterday, it showed a minus 7.1 at the close. so we're really expecting a bounce at any point in time, probably as much as 5%, maybe even as much as 10%. the markets really very oversold

at this point. it is very cheap. cheryl: are you get back in? is this your entry point or are you waiting? >> so i don't think anybody is too much in a buying mood these taste, right? that is probably one of the reasons the market is having a hard time fighting its footing, making new progress, gettingral. they keep starting and fizzleing nobody is interested in buying. we have several more months of fed raising are traits. we have inflation they may or may not be able to tame. there is a lot to worry about. we would like to see the market turn around on a bounce and people get back in on that point when we see something positive. we need to see something positive on the market. cheryl: you like home depot. that is interesting, because we got those earnings monday, excuse me, tuesday morning. you've bottom raytheon, apple,

microsoft, chipotle, you have a mix of things you really like. you seem to be making a bet on the consumer. doesn't sounds to me from the picks you've got here that you're that worried about inflationary environment? >> we're worried about it, but chipotle is passing along a lot of input costs. we're looking what is really causing inflation it is really energy prices. if you look at new york fed information that has come out recently, correlation between energy price an inflation in the ppi, as well as the cpi. those are really strong correlations, it really appears energy prices are really causing a lot of this inflation. whatever the fed does it will not help, or really solve the energy crisis we're having which is a shortage of energy right now, a shortage of fossil fuels. it is definitely worrisome. we're maybe heading towards recession. you see the market doing that on a daily basis.

hey, is it recession on day or recession off day? companies like home depot or great companies, lennar, toll brothers anything, all that kind of stuff, you know, if it is a recession on day they're all getting killed, pretty much everything is getting killed. a recession off day, you can do a little better. cheryl: you have to pick your battles. i see. i want to bring in gus sacco, gus, weigh in on this now, we have two minutes left to the close. obviously another rough day at the office. >> yes, without a doubt. we're looking at things a little differently. we look at things on short term, medium term and longer term basis. in the short term everything is basically, multiples are down, we're 16.5 times, down from 22. earnings are still up for debate. we think they will actually come in better than expected. we've seen from our fact set numbers, margins have held in. numbers are actually, revenues were better than expected for

wall mortgage and others inside of the increased costs. medium term you're looking through supply chain and goods. people are coming back to work but the fed is basically here trying to dampen inflation and that is a blunt instrument. we think inflation coming down the back half of the year. longer term we're bullish despite of the current tame, if you have more than one year time frame, we'll see a large number of companies reshoring. we'll see technology investment. there are less workers. so you have to gain productivity. there will be a renaissance in terms of investing into companies. that is good for everybody. cheryl: gus, american express is one of your picks. i was talking about revenge travel a few moments ago, sysco, you said is a hedge on inflation. that is really strong. guys, tell you this has been a rough couple of days. here we go again with this

market. we're selling off. the dow down 227 points. all three major indices losing steam as you can see on your screen. retail a good focus with kohl's coming out for earnings. [closing bell rings] that is it for me. i will be with you tomorrow. i will too to do better folks. now that is it for "claman countdown." now we have larry kudlow. >> ♪. this is "kudlow" and i'm larry kudlow. we begin is tonight with the "new york post." it is on the full strewn. joe's train wreck. gas hits brutal six bucks a gallon, border gets worse, ministry of truth collapses, market drops 1164 points, worst day in two years the baby formula disaster. the only thing the post missed