decoration by president warren g. harding. now you know. look at markets before we end this show. nice rally. i've done everything i can. the dow up 48 points. s&p up 2. don't forget to send in the "friday feedback." we could answer your question on tv. think about that. that is all for varney/ashley webster today. neil cavuto writes in every friday to get on tv. neil: you usually recognize my letters, they are cut out magazine letters. you tell stuart, no that is cavuto. ashley: thank you, my friend. neil: look forward to that tomorrow. corn of wall and broad, dow jones industrials maybe securing, we still have another day to go, say of another half trading today, we'll have first up week in maybe eight weeks?

i will check with charlie brady our senior stocks editor, knows this stuff inside out. he is like "rain man," definitely a record, definitely a record. after eight down weeks in a row i think we're looking, possibly, possibly, maintains today and into tomorrow, the first week we interrupt that, hopefully. we'll see. another thing we're following up on right now the battle back on capitol hill in the fallout of the texas school attack here and what should be done right now, as well as some disturbing video made their way to show that parents were very concerned at the time of the shootings what was being done on the part of local authorities. we have you covered on all of this with gillian turner on all of this. new calls for crackdown on guns period. we have hillary vaughn on capitol hill, social media platforms of all sorts are under great scrutiny. chad pergram just how to make classes in schools safer period. let's just say two parties are

not in complete agreement. let's kick off with gillian turner at the white house. hey, gillian. reporter: neil, the president today is still focused on gun control as the primary means of moving the country forward in the aftermath of uvalde, which saw the 27th school shooting this year. he said as president his hands are nearly tied. the only place left where some real progress can be made on this issue is over on capitol hill. listen. president biden: my career as chairman of the judiciary committee and as vice president, working for common sense gun reforms. reporter: in the senate chuck schumer is practically begging republicans now to join democrats on new gun control legislation but admitting at the same time it es pretty unlikely he can get 10 republicans to break rank. senator rick scott though, who served as florida's governor during the park land shooting already this week republicans tried to put forward common

sense measures. they got nowhere. listen. >> yesterday we took to the floor that would have basically codify a clearinghouse to give parents more information about the safety of their schools and chuck schumer went to the floor and blocked it. we tried to pass a bill that would have the secret service increase their efforts on school safety through the threat assessment center. the democrats block it. reporter: now the fbi director on capitol hill yesterday told a congressional panel very nature of threats to the homeland is changing real time. >> of course what we in the fbi have been concerned about so long that is the threat of lone actors who look to attack, regular, everyday people going about their regular everyday lives. reporter: the president grabbed some headlines here in the east room yesterday not just for the new policing executive order that he put out and signed but also when he announced he and the first late did i are going

to travel to uvalde to meet with the victims families the next couple days. the white house has not given more guidance when the trip might happen. neil: gillian turner. thank you so much for that. let's go to hillary vaughn, where politicians on both sides of the aisle scrutinizing the role social media companies played or could have played to dodge what was this incredible tragedy, especially we got wind salvadore ramos was outlining on a private social media site he would take out a elementary school. what is the latest your hearing on this, hillary? reporter: facebook, meta's, or facebook's parent company meta, said the messages exchanged between the individual privately were not discovered until after the shooting took place. we're getting disturbing details how detailed and specific the school shooter's social media

activity was. governor greg abbott detailed some of the messages that the shooter sent minutes before the massacre where he said this, quote, i'm going to shoot an elementary school. lieutenant governor dan patrick said that social media and violent videogames are poisoning the minds of children. >> today there are no loaners. all loners are connected on internet encouraging people sometimes to do bad things. there are loners but they're not alone. they're on the internet all day long. some playing violent video games where they kill hundreds of people a day. they detach themselves from society. kill something nothing more than a game to them. reporter: meta, facebook parent company said they were not public posts from the shooter but private messages sent to someone. andy stone said, the messages governor abbott described were private one-to-one messages discovered after the terrible

tragedy occurred. we're closely cooperating with law enforcement on multiple visions. a instagram linked to the shooter did have a public post with a photo of assault rifles. the "new york post" reported that the shooter tag ad random instagram user in the picture. the instagram user that was tagged that the shooter messaged her, got a little secret i want to tell you. that was tuesday morning the day of the shooting. he never told her what he was going to do. the uvalde school district used a company called social sentinel to monitor social media activity for this very reason to try to identify possible threats using artificial intelligence but neil, we reached out to this company to see if they are actively working with the school district and if they were aware or had flagged anything through their systems from the shooter before this event occurred. neil? neil: hillary, i heard that story too about this woman who was getting these messages.

he didn't personally know her one way or the other, did he? reporter. no. she didn't even live in texas either. she was kind of confused what was going on, why she was receiving these communications but he clearly was reaching out on social media on instagram and facebook to different people to try to communicate to them what his plans were prior to going through with the shooting. neil: she sadly put two and two together after getting wind of the killing. just amazing. hillary, great reporting. thank you so much. hillary vaughn on capitol hill with that. chad pergram on how the parties are looking they are going to address this. to put it mildly, chad, they are far apart, aren't they? reporter: the push is bolster school security. those are some questions facing the secretary of education miguel car don't n he appears before the house education committee as we speak. gop texas senator john cornyn schools learned a lot since the

first major school shooting at columbine in 1999. >> multiple points of fail ture. what we learned, what we implemented is active shooter training so the police can go in disrupt the shooting, carnage while it is occurring to stop additional killing. reporter: cornyn says he does not want to infringe on second amendment rights but cornyn says it is worth trying to get a compromise bills. gop members want to arm teachers, increase the presence of police officers in schools. >> there should be only one way in. that should be well-protected entrance. we already have a program where we allow any teacher in the school district wants to be armed to be armed. we train them. it is up to the schools. we leave that option. reporter: democratic connecticut senator chris murphy has worked behind the scenes to get a deal on guns for years. murphy, other democrats, say more guns, arming teachers is not the answer. >> fourth-grader yesterday, had to have conversations all day at

school with his classmates that no child, that no 10-year-old should have to have. >> that's right. >> he is forced to have those conversations with his friend about where they will hide, about where they will run. reporter: some on the left are worried about militarizing schools. progressives also resis adding police officers because of concerns about arrests. there is now more talk about enhanced red flag laws and reinstating the assault weapons ban. it expired in 2004. neil: chad pergram, thank you very much for that. to congressman tony gonzales of texas, house appropriations committee, kind you enough to jn us now. congressman, we go through every time there are these tragedies and they keep on happening. are you anymore confident today what happened in your district is going to change things? >> yeah, i will start by, i grew

up near uvalde. uvalde is home to me. it is not a dot on the map somewhere. i'm focused on our community getting whole again. i welcome anyone that wants to visit, anyone that wants to help us as we power through this. everyone is still in a a state f shock, the shock wears off, you will see anger many people upset what is happening. we're tired of inaction. we're tired of politicians coming up here blaming each other for things that never get solved. i will give you examples not getting talked about. the mental health problem in this country. the mental health problem in uvalde. in the state of texas there are 1000 mental health beds for a population of 30 million. that is a problem. we need to focus more on that. this is something that can bring the two parties together. at the end of the day though, we're mothers, we're fathers, we're daughters, we're sons and we need to come together. congress needs to lead again, not just have one party shove it

down our throats, come together to go, what are all the above solutions but i think mental health is a big key to it. neil: no doubt, it is, congressman, i take nothing away from that. there are mental health issues in other countries, disproportionate shootings in our country. we have a lot more people in our country, i get that, part is a gun problem, too easy for dangerous types to get their hands on these weapons? for example, in new york state, they're exploring the idea of cutting such purpose the or purchases of those under age 21. what do you think of that? >> yeah, neil. i think it's a much deeper problem than just guns. there is, our children, i have six children and, you know, chirp in america today are growing up in a completely different environment than others, than other generations. neil: but aren't they growing up

that way congressman, abroad too? they see the same gaming competitions and everything else that is now shifted kids attention to much more violent amusements? >> look, america, we're similar in some ways but i think america is very different as well. i'm for all the above. let's bring every idea and this is not a new topic. i met with one of the parents of the survivors of, of the children that were killed at the parkland, he mentioned legislation, the luke allen act. we need to come together, republicans, democrats, sit down, enough with inaction. enough with blaming each other. figure out ways to go forward on it. i think mental health is part of it. looking at the laws. democrats right now are pushing hr 8. i look at that law, i go if hr 8

was enacted, if it was passed in the house, but if it was passed in the senate, ultimately signed by the president, guess what? that would not have prevented uvalde shooting from occurring. i don't want to focus on things saying we're doing something, when in reality we're not getting to the root of the issue. neil: we'll watch it closely. thank you for giving us time to give us an update where you certainly stand on this. tony gonzalez beautiful state of texas. a world of hurt in so many states. corner of wall and broad, very strong buying day. you have to look at this as a snapshot. once the image is shot it is after that, it shows a up week and could continue, and if it does into tomorrow, it would be our first up week after eight down weeks in a row. something that goes back to the 1930s, if we can change that. buyers hope to do just that.

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neil: apple taking care of it the workers, very good care, raising pay virtual all of them, merit-based pay, microsoft as

well. it is apple getting everyone's attention. paying more for labor is not hurting the stock today. let's go to grady trimble in chicago. grady, what is going on here? reporter: neil, apple like many other companies are trying to attract workers, keep the ones they have got and stop the ones they have got from unionizing. they are raising wage for store employees up to 22 bucks an hour. that is 25% jump from 2018 levels and second pay bump in the last few months. they're moving up performance-based raises by three months in july. this comes as apple store employees across the country are trying to unionize. starbucks and amazon are also trying to block unionization efforts. they recently raised pay as well. more broadly it comes as employees are quitting their job for better pay, more job fulfillment, what employees say

when they're surveyed. that is a recent survey citing from pwc. >> the power now we argue is in hands of individuals employed. organizations today have to reinvent the work to have purpose, meaning, make sure it has choice, optionality in it. reporter: the great resignation shows no sign of letting up for stopping. pwc survey of more than 50,000 employees around the world found a whopping 20% of them are likely to switch their job in the next 12 months. even those who aren't quitting want to be paid more. more than a third of those surveyed said they're going to ask for a raise in the next 12 months so the message from employees to employers, neil, is pretty clear. it's pay up for we're out of here. ashley: they are paying up. pwc you refer to is pricewaterhousecoopers, big accounting firm into everything and surveys all of that microsoft as i kind of touched on before getting apple news,

before getting apple news, is doubling budget from merit-based salary hikes, doubling global budget for merit-based hikes. people would get four or 5% merit-based hike. doubling that, say you're doing a good job, a 10% hike. one time nice little check to come to you, to keep the workers loyal and happy. is it working? dan geltrude, geltrude and company founder. what do you think of all this, dan? a trend in technology companies i dare say can probably afford it. it is tough competition for others who might not be able to afford it. where is it going? >> neil, i'm fine when you have private companies that are competing against each other for talent. there is nothing wrong with that. even though the impact of this is going to be what is called wage push inflation. because these companies are not going to just absorb these

additional costs and expenses related to their employees. that is going to get pushed ultimately to the consumer. now, given everything that we've been going through with inflation this tells me that inflation has a way to go. i don't see inflation actually cooling off anytime soon when we're paying people more money to do what they used to do for a lot less. neil: i'm very happy when i hear reports of people making more money. for example, i just found out here dan, other anchors are paid. that kind of ticked me off but it's not about me but i do wonder is the spillover effect of this because what we've been seeing is wage gains across the board have been substantial. i think we're averaging five or 6% year-over-year. unfortunately the cost of goods have been rising anywhere from eight to 9%. all that money they're making, they're paying out and then some. that is not a good combination?

>> wow, that is the whole rub here, neil. is that people are being paid more. the numbers are showing, about 5 1/2% increase in their wages. however, inflation at 8 1/2%. so they're losing ground every day, even though they're making more money. so you have more money coming in. however, you're in a situation where you have to spend perhaps much more when we look at specific costs like fuel. it is a lot more than 8 or 9%. so you actually have the average american citizen that is going backwards. that is how insidious inflation is, neil. that's why, to me, that is the number one economic priority that we have. we have to deal with inflation. otherwise, everybody's being dealt a losing hand! neil: yeah. you know while i have you here i saw release of these fed minutes

yesterday. i know people were sort of gloming around the notion here that the federal reserve is going to be vigilant, aggressively raise rates. i had a different bit of interpretation of that. the backdrop being a number of fed governors, district presidents saying, they might slow down the pace of this. maybe there won't be a september hike. still another saying in 2024, still aways off we could see a rate cut. i'm thinking, you know, maybe they're all talk. what do you think? >> you know, neil, i'm not so sure that they're going to be able to back off of the position of having rates going up. unless for some reason inflation starts to retract for other reasons, i think that the fed is going to have to continue to raise rates and it's going to be painful. there is no easy solution, when you have inflation, the way we do right now. neil: they wouldn't interrupt, they wouldn't interrupt the pace

or size of these hikes? by the way, you've been accurate every step of the way. i defer to you on this. but you don't see them blinking here? when i hear a couple saying, you know it doesn't have to be every meeting. that is not consensus? >> i don't think so, neil. they have to continue to raise rates until it starts to have some impact because to let inflation allowed to keep going up and up and up that is just not acceptable answer because it is doing so much damage to the u.s. economy. neil, let's not forget, i think we are right at the cusp stagflation. that is the trifecta of inflation, a slowing economy and rising unemployment. we're seeing companies like target and walmart going into hiring freezes and maybe even cutbacks on labor. in is a terrible economic sign.

that is why i believe the fed has to go forward with raising rates right now. neil: they could make things worse though, right? >> well, listen, as i said, it's going to be painful. neil: yeah. >> rising rates, oh, this is great, let's celebrate. there are a lot of consequences. how about all the small businesses rely on being able to get access to capital to keep their businesses going? it is going to get a lot more expensive. there is no easy out in this situation we're in economically. neil: scary stuff. i hope you're wrong on this, dan. thank you very much. dan geltrude, accountant by training, very good read of overall economy here. by the way we've been showing you, we're showing you as well, the inconsistent read on retailers. for example, we started week with bad news out of walmart, abercrombie & fitch, best buy, dick's sporting goods. we're noticing evening out here.

we're doing just fine, thank you. nordstrom on the super high en, all of that. dollar general, dollar tree, macy's. it is a split read of retailing. i don't want you to think retail is going to hell in a handbasket. we've started seeing second wave of companies not so, at least not yet. we'll have more after this. ♪ certified from headlamp to tailpipe. that's certified head turns. and it's all backed by our unlimited mileage warranty. that means unlimited peace of mind. mercedes-benz certified pre-owned. translation: the mercedes of your dreams is closer than you think.

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♪. neil: you already know as you take off for memorial day travel this weekend you will be looking at record high gas prices. we're looking even more startling record high tease sell sell -- diesel prices. that is having immediate impact on economy on truck operators and their operations. madison alworth has more. reporter: hey, neil. we've been driving around all long, they are super concerned with high diesel prices we're

getting first-hand look at that you don't need to be on a truck to see it. full screen where diesel prices are, we're up over $5.50 a gallon. that is way up in a year. in particular in the northeast, you're looking filling up over $6 a gallon. i spoke to the ceo earlier about the biden administration plans to potentially release some of the reserves from the home heating oil reserve that we have here in the northeast. though is note convinced that would at all. listen why he said that. >> a million gallons in total. the consumption in the northeast is a million gallons per day. that is one day of supply. at the same point in time we're currently exporting to latin america and to europe a mill gallons of diesel a day. i haven't paid a whole lot of attention. it is one day supply. no pun intended, it is a drop in the bucket. reporter: so a drop in the

bucket. you heard it. they do everything they can to save on fuel costs. i want to talk to angel arod here. driving 20 years. you have experience as a truck driver. when you see the diesel prices is this new to you, what do you think? >> at this current level, yes, it is extremely high. i have never seen them this high. reporter: what do you do as a truck driver to try to save on diesel as much as possible? >> we try to run efficiently. we do the speed limit. we don't idle. if the truck is not in use, turn it off. don't have them on. reporter: there is some measures that they have immediately like the trucks are capped at 65 miles per hour. you can't go over that. if you're idling three minutes it automatically turns off. these are things that help with the prices. reality the fuel surcharge is being passed on to the drivers and to the customers. those customers, they sell to us. we end up paying more at the end of the day, neil. neil: wild stuff, thank you,

madison, very, very much. let's go to nick loris, 3-d solutions. what is happening with truckers, we're looking high gas prices for all types what could be a record weekend for all prices. americans are willing to pay up to get out. so what are you looking at? >> yes, this summer is going to be very interesting, neil, because gas prices $4.60 at national average. a lot of families have been frustrated by the pandemic. have had to cans he is vacations over the vacations past two years. so far accepting higher prices. you're starting to see demand constraint because prices have got own so high. we've rarely seen such attention where americans because of the frustration of not being able to travel over last two summers as much as they wanted to are accepting higher prices.

neil: how long do you think that lasts? one thing to accept levels we're dealing with now. up 44 cents, last couple months. where do you see things going? >> probably not much longer. i know jpmorgan put out a note last week saying they could see prices rise as high as $6 per gallon nationally. we've seen demand after rolling average over the last four weeks come down a little bit. i think we're reaching that tipping point where families are starting to change their minds. at least taking smaller trips. that may change a little bit. i don't know if we see the price points hit $6 a gallon. that is a rude wake-up call. as the report mentioned, any increase in gas prices results in a reduction in non-gasoline spending. this has ripple effects throughout the economy that is going to hurt businesses, families all over the country. neil: still expected to be a record travel weekend. maybe that is just compared to the last couple of you know,

memorial day weekends where it was hard to get out at all, with the virus, everything else. what are you looking at? still a busy weekend? >> still a busy weekend. still a busy few weeks. i think maybe where you might see more demand side reductions later on into the summer. once we reach later june, july months, august vacations. if gas prices continue to go up, $5, 5.50 per gallon. that you might see americans start to change their minds what they do. i just caught a flight to ireland. i paid a lot more than i wanted to. i haven't traveled internationally vacation last two years. i was willing to accept higher prices. a lot of americans are. neil: that is a trip would be worth it. smart man. hope you have safe travels on to that. before we go to break, pass along sad news.

"goodfellas"'s star ray loitta has died. he was filming a movie, dangerous waters. if you haven't watched ray liotta, in fact that look defined him in "goodfellas" that he narrated as well. there was a famous series, explained were people and other mob heads got nix names they had. owing to that historic visage, that stare, is nothing more than what you're thinking inside. he said as far back as i can remember i always wanted to be a gangster. i find nothing wrong with gangsters. some are violent. some aren't so nice but they are interesting. i loved playing them. i said it would be nice to do a movie where i didn't have to choke the girl to get her. but whatever i can do to get the part. ray liotta dead at age 67.

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♪. neil: we might never know why he did it but growing questions now over how salvadore ramos hit an entire grade school and killed as many as he did and with so many armed personnel outside of the school as he was doing it. questions remain unanswered. the latest from bill melugin who has been following all of this from the beginning. join us from texas. bill, what are we learning? anything new? reporter: neil, i can tell you texas dps is preparing a press conference this afternoon where they're hoping to clarify some of the timeline involved in all of this. they are looking into conflicting statements, or conflicting reports that first came out yesterday regarding the timeline of the law enforcement response as well as the shooter, the amount of time the shooter was in the school. meantime there are videos now circulating online claiming to show parents yelling, angry with police, say go in there, outside of the school while the shooting

was taking place. take a listen. [shouting] [people talking at once] [unintelligible] reporter: about the videos circulating online, they don't know where in the timeline they were recorded. we don't know if the shooter was already dead. we don't know if police was setting up a perimeter with a tactical line ready to breach. they are angry at police, that they need to get inside as shooting is going on. we do not hear the gunshots. eventually a tactical team goes in. this photo sent to me by a cpb

source, the hat he was breached the classroom and shot and killed the shooter as part of the tactical team. he suffered a graze wound to his head. millimeters away from death, the hat ripped open as the shooter shot at him. if you look at video of the shooter going into the school, yesterday. they're looking to clarify, authorities are looking to clarify what happened with that school police officer. yesterday we were told by authorities that school officer had exchanged gunfire with the gunman before he went into the school. yesterday, they walked that back towards the evening. today we're told they're trying to interview that officer to find out exactly what happened, it will be key to establishing beginning of the timeline. take a listen to interview fox news had with a teacher at the school, last night, got emotional, how close the gunman got to her classroom.

>> my kids were so scared. i was, i had to protect my children. reporter: neil, again a lot of questions circling today about the law enforcement response timeline as well as how much time the shooter was inside of that school. we have been told by our law enforcement contacts there will be a press conference this afternoon. we do not have an exact time yet. once that happens we're hoping we start to get a little more clarity about what really happened in terms of that timeline. we'll send it back to you. neil: so on the timeline issue, bill, just indulging here, at the time video was taken, exactly when it was, i don't know, you don't know, but, the a sail lant assailant was in the

school already? reporter: texas dps director said they are working on the information that the shooter was potentially in the school for 40 to 60 minutes. what we need to find out. what they need to inform the public is, when was first contact, when, when was the shooter first encountered by law enforcement? was it before he went into the classroom and shot and killed everybody. was it after, once he already barricaded. that is it what we're looking to find out, neil. neil: how long it took him to get the classroom where most of these fatalities came. just incredible. bill, very good reporting on this. thank you very much. bill melugin. i warrant to go to a former fbi special agent. what you might not know about phil, this just amazes me, he was involved at earliest massacres that was at a school. get this, he was shot by lori dan, who broke into his family's house in 1988 after opening fire

at hubbard woods elementary school in winetka. he joins us now. that is unique perspective what we see in the latest school shootings including this week in texas. bill, good to have you. >> good to be with you, neil. neil: what did you learn from that experience first, as a child yourself? >> well, first, these are tragic and very confusing circumstances, right? that even when we prepare for them, they shock us when they happen and the response is just as you expect in a crisis, it's confused. folks are trying to get information. they are trying to make decisions quickly. there is a great deal of urgency in the response. it is really hard to piece together exactly what's happened and where we could have improved responses because people's memories are affected, deeply,

emotional. they are so tunnel investigation in how they are responding to it. so that becomes difficult in itself. what we do he know when we analyze these, we can find places where we can improve. that has to be done without judgment, without politics. where people feel safe enough to say, hey, i don't feel good how i performed. people pay not feel good how they were performed, because they never had a chance to train, see, or experience this. now that they have, there is an opportunity to learn, to digest what's happened and to improve our responses and our prevention. once again we're faced with a shooting here that somebody was on the radar. where were the intervention opportunities? is there more that we can do policywise, policewise, responsewise, mental healthwise, even as a community, as a

neighbor? is there more we can do to prevent these things from happening. neil: i don't know enough about your case, phil. i knew you and your family were not specific targets. laurie dann had broken into your house but you weren't the target at the time. i understand she shot you, then right after that soon shot and killed yourself but your family wasn't anymore of a target earlier on her targeting this school. that seems very similar to this particular case where the shooter had said he was going to shoot up an elementary school, there was no rhyme or reason to the victims he took out? >> yeah. you know, that part we just don't know yet. neil: right. >> we know in the scenario that i was involved in 34 years ago, that she specifically targeted that school and, for the mayhem that she caused. neil: okay. >> the part that was unplanned when she crashed her car and we just became sort of a hostages

of opportunity. so that wasn't part of her plan. and that worked in some ways to our advantage because she didn't know what she was going to do when she got there. we were able to influence some of her behavior, i was able to get my folks out. i think there are some similarities here. was he targeting that school? we're not quite sure yet. certainly what he stumbled upon there, he wasn't necessarily prepared for. that is where we see some of this confusion and why there needs to be so much analysis, you know, to understand how this tragedy unfolded and where the opportunities may have been. neil: what is scarier for you investigating these things? an assailant who has no personal group or targets in anyone he is seeking out in a shooting like this, or someone who does? >> yeah, that's a great question, neil, because the advantage of somebody who showed up without a plan is often

they're very, very unpredictable but somebody that shows up with a plan, you know, sometimes the, all the level of preparation like in this case clearly buying guns on first opportunity he had the opportunity to buy them. stocking up on extra magazines and you know, additional am he mow. and you know, having some vision that he was going to cause mayhem, you know that becomes very dangerous too, when somebody has a clear plan and is executing that. in this case we also understand that he may have been wearing body armor. those present additional challenges for those responding to it particularly law enforcement, whether we see this in buffalo or see it in texas, a law enforcement response has to adapt to somebody heavily armed, barricaded. there are a number of bystanders

and potential folks in harm's way in the crossfire and that they're armored. right? all of those present specific challenges that i think only careful analysis of this is going to bring to bear. neil: made you a hell of an fbi agent. maybe never would have become that without this horrific experience, i think a lot of people are glad you did, learned from that, tried to help people avoid what you went through. phil, thank you very much. >> neil, that is a great point you're making there with regard, these first-responders have now seen something as this community and these parents have that is going to last with them a lifetime and, they're going to have to find a way to deal with that. hopefully find a way to postively have impact in their lives, in their community having seen such mayhem and horror. neil: i cannot imagine what they saw when they walked into that classroom. phil, thank you very, very much.

very good seeing you. >> you too, neil. neil: we'll have more after this your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

reporter: welcome back to "cavuto: coast to coast." i'm lydia hu. feels like the swings keep

coming in battle for twitter. breaking just today, elon musk is being sued by twitter investors in california accusing him of market manipulation. reuters is reporting investors accuse musk of buying more than 5% of the company's stock by march 14th, and continuing to buy twitter's stock until he ultimately disclosed his roughly 9% ownership in april. they say the delay in disclosing saved him roughly $150 million because it kept share prices low. that lawsuit filed of course. musk will get an opportunity to respond. musk is putting up additional $6.25 billion to fund the roughly 44 billion-dollar offer to take twitter private. this was revealed yesterday in a regulatory filing. this means musk purchase now includes 33 1/2 billion dollars in equity. that is a increase from 27.25 billion. it also means he no longer plans to rely on a margin loan backed

by his tesla shares. now that is notable because shares of tesla have tanked about 34% since musk announced his takeover bid in mid-april. also significant because there is speculation last week about the future of deal. musk publicly requesting proof from twitter that fake accounts make up less than 5% of total users suggesting there are more, casting doubts about the value of the company. now yesterday twitter held the annual shareholder meeting. generally avoided this booming question whether it will complete the 44 billion-dollar sale but the twitter ceo says the company continues to work through the transaction. we'll be right back.yo ♪ financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect.

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neil: all right, we're doing quite nicely, the dow up about 600 points even though we got confirmation that we weren't imagining it in the first quarter, the economy did contract a little bit. the big question, is it still contracting in the quarter that we're in because that back to back would be a classic definition of a recession. edward lawrence at the white house with more. >> reporter: hey, neil, let's see what we can do about that rally. the economy, the second gdp numbers, that the -1.5% that, in fact, the cbo report is saying that we could see that price pressure continue. the cbo report believes that inflation has peaked for this

year, but will then start to come back down towards the end of the year to 4.if 7%, falling next year as well as the year after that. the committee for responsible federal budget greece, but they see flaws -- agrees, but they see flaws in the data. >> i think cbo is overly optimistic in how fast it'll come back down in part because they locked in their economic numbers before we saw the effects of the russian invasion in ukraine. but cbo thinks inflation is going to fully normalize by 2024, pretty quickly. i think we might have a couple years longer than that. >> reporter: the cbo report shows that the federal deficit shrank from 2.8 trillion is what it was last year, shrinking to 1 trillion this year on the deficit. the president taking credit for that reduction are. >> the bottom line is the deficit went up every year under my predecessor before the pandemic and during the pandemic. and it's gone down both years since i've been here.

period. that's -- they're the facts. >> reporter: the committee for a responsible federal budget says that, yes, the deficit went down but not because of this president. >> most democrats -- biden's policies bring the deficit up, so relative will to that, they're coming down in 2022. this is not a case of him enacting deficit-reducing policies. >> reporter: he's also warning the government needs to get a handle on the deficit and government spending because as the interest rate rises, the amount of money we're paying to service that interest rate debt goes up. right now he says we're paying more than the department of education budget, he says in ten years if nothing changes, we'll be paying more to service the debt than we do to the defense department. back to you, neil. neil: so we're bragging about a deficit of a trillion dollars, only a trillion dollars. >> reporter: right. neil: just so i understand that. >> reporter: i wish i had that credit card, right? neil: yeah, exactly. thank you, my friend, edward

lawrence following all of that. again, the debt, which is a combination of deficit, that keeps going up. by the way, that is a bipartisan bashing because it happens under democratic presidents, republican presidents, we just owe, owe, owe, owe, it gets bigger and bigger. as do the prices, apparently, that are getting bigger and bigger, and a lot of people are saying this is getting worrisome and more worrisome. jeff flock in seaside heights, new jersey, where they try to keep their attention on sun and fun, but hard to do the when everything is costing more, right? >> reporter: a few clouds in the sky though, neil, today. yeah, both figuratively and perhaps literally as well. prices up along the boardwalk and all sorts of places. doesn't matter whether you're young or old, this young lady i just ran into, i spent much of my youth here on the boardwalk of seaside -- >> yep, absolutely. >> reporter: -- and you say prices are craze crazy even for you. >> i just got down here an hour ago, ate lunch with my friends, and the pizza's gone from $4 to

$7. >> reporter: incredible. good luck in college next year, by the way. >> thank you. >> reporter: take a look at this, neil, the fear down here is that eventually the price of gas and the whole rest, you know, prices things out. 32% of folks surveyed said they're going to spend less on retail, 31% less on entertainment, two in ten, less on food and drink and less on lodging. you know, that's the fear. last year was an incredibly great year on the jersey shore. 48 million visitors, up 24, $20 billion. spent. that was up almost 30%, so a great year. but those gas prices, i'll until you, they're just taking a bite out of everything. and, you know, i know you've asked several guests over the course of the last, you know, weeks, you know, when do we finally get to a tipping point. we talked today to a travel expert who says he thinks he knows when the tipping point will come. take a listen. >> if the stock the market continues to tumble and people

start to lose money that they thought they basically had in the bank that they've been saving for two years, i think that's when people are going to reassess the prices that they're paying for leisure, travel and luxury items and things like that. >> reporter: he points out that the economy's been being driven by people who have money right now. they have a job, they got a raise, you know, maybe a new job. but if those people start the pulling back, that's when times begin to get tough, and we come to a place like casino pier back there behind me. i used to ride that roller coaster way back there in the day til it fell in the ocean during superstorm sandy. neil: yikes. i know it for another reason, they have great italian i sausage hoguegys, and i imagine they doubled in price. we haven't gotten your expense report yet, but i know it's going to be a biggie. >> reporter: three brothers from italy, that's where i had lunch.

they love you there, they love the italians there. neil: you are so smooth, my friend. love the walk and talk stand-ups. no one does it better. jeff flock, seaside heights. it's a beautiful area. do try the saw assange and peppers. anyway, want to go right now to kelly o'grady all the way in davos. i don't know if they have sausage and peppers there, probably not. that doesn't seem like a daf the vos thing. but apparently there's an energy thing and a worry going on there that it's going to spill over, they fear i guess, right? that it's going to spill over to the rest of the world for quite some time. kelly is in davos with more. hey, kelly. >> reporter: hi, neil. yeah, the energy crisis was, of course, a big topic here in davos, but there are differing approaches on how to best handle the russian energy threat. some here, including john kerry, think that we need to double down on our between goals. take a listen. >> the world's greatest transformation ever as we move to a new energy economy.

we need to move. we need to accelerate. we need to do more. now ukraine is being used as a lever to make the argument that, oh, wow, see? you've got to have this energy security. >> reporter: but with energy inflation up more than 40% year-over-year in the u.s. and russia ravaging ukraine, other industry experts emphasize the need for immediate solutions. the director of the international energy agency arguing for a more practical approach. >> you need diverse fight against climate change, weakened in a short period of time, but some case even in europe, much countries are going to use coal for this winter. it's immediate if crisis, and we have to provide some solutions to them. >> reporter: and surprising focusing on alternative fuel options, nuclear power being a big topic as well as the need

for immediate action from traditional energy producers. the iae director citing a need for more u.s. shale and gas and for more suppliers to increase production. he also emphasized investment in renewables, but i found that conversation very practical and solution-oriented. we have families, as jeff was just saying, going to the pump, struggling. they need solutions now not years down the line, neil. neil: well, good luck with that. thank you very much, cellingty o'grady in davos, following all of that. we're e getting some updates on this school shooting and exactly who knew what and when, conflicting stories as to how long the assailant was in the school. we're told upwards of an hour before authorities broke in and stopped him cold. but again, the timeline is very, very difficult. with us right now is ron johnson, wisconsin republican senator, sits on the homeland security committee, foreign relations committee, budget committee. a lot of crucial committees. senator, good to have you.

>> hello, neil. hope you're well. neil: i hope you are as well. let's talk a little bit about i know both parties have very different views on how to address shootings like we saw unfold in texas, but there is talk of a middle ground among republicans and democrats. you know what that middle ground is? >> well, first of all, there's nothing partisan about a how america is grieving following another one of these tragedies. there the have been a number of pieces of legislation offered by republicans on the judiciary committee to, you know, close some gaps in some of our gun laws, but the democrats have always rejected those. it's always their way or the highway. what happened on the floor of the senate yesterday is just a classic example. i was working with the parents of two of the parkland victims on crafting a piece of legislation that was actually good enough that the the previous administration set up the clearinghouse. this is called the luke and alex school safety act, establishes a

clearinghouse of school safety best practices. this would have codified it. these parents have been looking to pass this bill, codify it for years. i thought, in consultation with those parents, that perhaps we could get this passed by unanimous concept, but chuck schumer politicized it and objected to it. it's just sad. neil: all right. i'm wondering, republicans and democrats -- again, it's still early, senator, to your point -- are rallying around a measure that would not only address some of the safety in school issues as a single point of entrance and all of that, but limiting guns sold to those under the age of 21, for example. what do you think of that? >> well, again, that wasn't part of my piece of legislation. you know, my piece of legislation would have actually directed people, schools to government grants so they could fund some of these school safety initiatives. so, you know, from my standpoint gun laws ought to be, basically,

state-based. let states decide what they want to do in their particular states. and those gun laws we already know vary widely around the country. that's really the place to enact these things as opposed to some national standard which, let's be realistic, i don't think there's a solution here in the federal government. there are very few solutions here in the federal government. i think the federal government either causes or exacerbates more problems than the it ever solves. neil: can you ever -- and i know you don't see it as a gun-only issue, senator, but we talk about a number of republicans that espouse this is a mental health issue, governor abbott was saying we don't address it enough, but you could make the same argument a mental health issues are rampant across the globe, but they don't have the percentage of shootings, the severity that we do. new zealand wasn't immune to that, some of the strictest gun control laws on on the planet, and yet 50 plus people were killed a few years ago.

so what do you make of the mental health issue and whether that has got to be part of where we go from here? >> that is the problem. you know, there's a sickness in our society. i've always said overall the solution is renewed faith, stronger families, more supportive communities. i don't think it's helpful that kids are spending so much time in front of a computer screen, you know? playing these games, being alienated, bullying on social media platforms. we need to re-examine -- we need to, you know, reengage into society, have more events person to person. this is a society-wide problem, a society-wide sickness that is not going to be solved by some gun law, additional gun laws here in washington, d.c.. neil: do you think there are some people, though, that shouldn't have. guns? >> obviously. you know -- [laughter] former felons that have used them to commit crimes, people that are truly mentally ill. but there are issues in terms of

how you make that determination. these are hard things to determine. neil: but this fellow in texas, salvador ramos, he legally bought his two guns. >> right -- the. neil: now, we didn't have the paper trail and the record, to your point, but do you think that that would require maybe stiffer background checks? >> you know, no matter what you do, people fall through the cracks. you can't identify all these problems. you can't arrest somebody for a crime they haven't committed yet. these are difficult issues. but, again, the solution lies in stronger families, more supportive communities. i would argue renewed faith. we've lost that. we stopped teaching values in so many of our schools. now we're teaching wokeness. we're indoctrinating our children with things like crt, telling some children they're not equal to others and they're the cause of other people's problems -- neil: but -- [inaudible conversations]

neil: -- long before crt. >> well, i think crt's been going on under the radar for quite some time as well, wokeness has been, liberal indoctrination has been. this is a much larger issue than what a simple new gun law's going to -- it's not going to solve it. it's not going to solve it. neil: all right. we'll see what happens. senator johnson, thank you very, very much. switching to the new york metropolitan area where the powers that be, ostensibly the very rich powers that be, are letting the mayor know that crime is a problem here. it's out of control here, and he better do something about it now. a lot's on the line, and doesn't charlie gasparino know. ♪ ♪

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neil: all right, along with this school shooting in texas, in new york they're worried about escalating attacks on subways and one that took out a goldman sachs' worker whose only sin was trying to attend a brunch in manhattan, shot at for no damn reason on the train. it lay plays out again and again in the metropolitan area whether you're traveling underground or just trying to get around above the ground. charlie gasparino with the news the new york business community,

some of the powers that be in the city, are going to be meeting later today with mayor with eric adams. what's this all about? what do they want to see? >> well, the gentleman that was shot, tragically, in the subway, daniel enriquez, it was sunday. it was interesting because -- and sadly, i guess ironic or, you know, the timing was, sadly, impeccable that at the same times he was in the subway fending for himself, mayor adams was at a swanky party at the new york stock exchange, and he's been seen partying a lot lately. and that does have members of the business community up in arms. we should point out, neil, most people who work on wall street and in the city, big with business community, real estate, finance, you name it, insurance policy, they're not fat cats. they have to take the subway. they're very middle class. and that, that was daniel enriquez, that was michelle go back in january who was pushed in front of a subway train. they have to take public

transportation. so right now with the business community, and these are major ceos -- steve schwartzman, charlie sharp of wells fargo -- they're all going to be on the call at 2 the p.m. sponsored by the partnership for new york. they're going to say our workers are not safe, mayor adams. please, get this under control. we know that you've been in office for four months, but the train is still coming off the track. by, you know, he speaks -- he clearly has a better vocabulary about crime than bill de blasio who allowed it to go unaddressed and was, obviously, verbally very permissive of crime and the sort of decay that we see in the streets and subways every day. he's better at that vocally or rhetorically. but the proof is not inside pudding yet. i mean, subway crimes are up 53% down the line. it's not very safe here in new york particularly if you're a middle class person working for a big company and you have to

take public transportation the, which you do. so i think that's the, that's what they're going to tell them. mayor add hammes -- adams has been going to soirees, telling people like jamie dimon to take the subway to work and bring your people back to the office. i think another message they're going to i say is we're not going to mandate full, everyday, five day a week you have to be in the office in new york city until this thing is, this thing -- meaning cream -- crime, is dealt with. again, the meeting's at 2 p.m. i don't know if jamie's going to be on the call, but steve schwartzman, the head of american express, tom zawahiri, a lot of people, from what i understand a hundred business leaders will be on the call, and i'll get you an update once it's over. it is about a hard how far way. neil: charlie, thank you very much. in the meantime the, in light of the school shooting certainly in texas, schools across the lone star state have been sort of

battening down the hatches and making sure they're inaccessible to bad guys. we're seeing that play out across the country where schools are certainly cognizant of what's going on and not wanting to see that repeated. kenneth trump is national school safety and security services president. kind enough to join us. kenneth, they're obviously aware of what happened, they're trying to make sure that it doesn't happen where they are. but invariably, these things do. and i wonder if it has to do with the fact that right after such a tragedy our attention sort of moves on, and we fall into the trap of yet another incident. what do you think? >> thanks, neil. the question isn't whether these incidents are wake-up calls, the question is are we going to hit the snooze button and go back to sleep five years from now, five months, whatever amount of time, are we still talking about energy planning, safety measures like we are today -- emergency. the safest day to be in a school is the day after a school

shooting. anywhere around the country even's attention's up, you have additional patrols, heightened awareness, more attentiveness to threats, rechecking security measures. but time and distance breeds complacency and fuels denial. neil: you know, we've seen so many of these school shootings as you know far better than i, kenneth, and i think it's one thing to tell middle schoolers and high schoolers what to do in a god forbid moment like that, very difficult to tell a grade schooler, someone who's no more than 7, 8, 9 years old. >> right. we have to have age and developmentally-appropriate education with kids. we want people to be aware and prepared but not scared. and i'm not going to talk to a second grader the same way i am as a twelfth grader. even as a parent, we need to have certain conversations, but we need to reassure kids that there are adults in place. the good news is many incidents are prevented that we'll never hear about, we're dealing -- schools are much better

prepared, but we're dealing with human behavior, and you're going to have some that slip through the cracks. we're working on tweaking training where after the past two decades of column columbine -- columbine, we've searched on emergency plans, but we need to switch to training on your cognitive awareness, cognitive decision making under stress, your situational awareness so that people can focus on how to do you recognize patterns and things that are out of the norm whether it's something out in the parking lot, a stranger in the hallways and how do you make decisions under duress for these unknown unknowns. and we have some parameters, some brackets that we can expect certain things to ununfold certain ways after columbine. today you're dealing with unknown unknowns coming in that nobody could really possibly predict or anticipate. neil: a lot of details we don't know of what happened in that texas school. what we do know is that the assailant was many that school

for upwards of an hour before, you know, police broke in, security officials broke in. and there's this now-infamous video -- we don't know the timeline on it, to be fair -- where a number of parents are pleading with those armed authorities to break into the school. what is procedure with this sort of thing? >> prior to columbine two decades ago, the model was set up a perimeter, call in the s.w.a.t. team, let the professionally-trained tactical teams go in. columbine changed it all, neil. if it came first two or three, four officers go in. since the fact that these incidents unfold in minutes, fatalities can add up far too rapidly, it's first officer on scene gets in. questions is, were there the problems getting in? good news is we have heroic actions by the border agents who tactically did get in, questions

on the initial response, but there are things schools can do, neil, real quickly. provide the police with floor plans and blue prints for first responders. give access if they have the technology to their surveillance cameras in an emergency to get live intelligence feed and give them simply key cards or fobs to the locks that they put on -- puts on the doors, electronic access control, so that they don't have trouble getting in while the school's locked down. neil: those are all good ideas. ken, thank you very much. be safe. >> thanks, neil, you too. neil: we're focus on a market that's racing ahead this week and looking like it might reverse what have been eight weeks in a row of down weeks. that could be changing, and a lot of it could be on the notion here that the federal reserve might still be very vigilant about fighting inflation, but maybe it doesn't have to be as vigilant. after this. ♪ if you used shipgo

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♪ neil: all right, stocks racing ahead right now, up 572 points. the nasdaq's doing well, s&p 500 is doing well with. you know, people have had a chance to digest these fed minutes from the early may meeting and have come to the conclusion, you know, the fed's going to be vigilant about fighting inflation. maybe not as vigilant because they see it succeeding, who knows? but i bet this fellow knows, charles potter, former philadelphia bank of the federal reserve president. very good to have you. >> nice to be with you, neil. neil: let's talk about what your old friends and colleagues are thinking. apparently, we're looking at another half-point hike in interest rates next month, possibly another half-point hike. but a number are saying maybe not in september. what do you think of that? >> well, i think it's feast or famine. the markets seem to think 7 a 5

basis point hikes and now two the 50 ones and nothing after that. i think that's unwise. i think they don't really know how many rate hikes are yet to come. they're trying to signal that they're being committed, but i think everyone needs to be, acknowledge, aware that more may have to come if they're going to be successful in this fight against inflation. neil: you never let anyone know what you were up to. you didn't telegraph anything. [laughter] i don't mean to be flip or facetious here, but i think sometimes playing into the markets and what they might like or not like kind of gives the markets an advantage i don't think they should have. what do you think? enter well, i'm not sure it gives them an advantage, i think it's bad monetary policy to play into the markets. it's the unwise to let market

behavior and financial markets in particular if determine -- particular determine what the fed's going to be doing. when you're afraid of doing what might be the right thing just because you're afraid of market reactions, i think's a great mistake. i think one of the big mistakes right now is that we have all this inflation, and the lesson that people take away from this, this is all because of the pandemic and bottlenecks and ukraine with war and greedy corporations and the policy would have been fine if it hadn't been for all that, it's a huge mistake. neil: well, then what is the lesson? >> monetary and fiscal policy have been extraordinarily progressive in this episode, and they're the ones to look to as to what went wrong during this and to why the inflation has persisted as it seems to be.

and i think that by ignoring that and not acknowledging the role that policy has played in creating this crisis is a huge mistake. neil: so you're saying the federal reserve should accept some of the blame for what's going on? >> absolutely. neil: do you wonder back in 2018 when jerome powell first started hiking interest rates, you know, obviously president trump and others who were critical of that move and that change, that stop, but that had he maintained those or even kept them more tentativy for me to play monday morning quarterback here -- we wouldn't be in the inflation their pickle we're in? -- inflation their pickle we're in? >> well, i don't know about that. i think it's certainly true that the data, the fed if needs to be data-dependent, obviously. but as we entered -- ended the pandemic response; that is, the progressive nature of using

midwest of -- easing most of the asset purchases that followed in march of 2020 and the fed has started to redeuce purchases, began to -- reduce purchases, began to raise rates a year ago -- which they the certainly should have had, in my view -- neil: to raise rates -- >> to raise rates, we would not be in as risky a position as we are now that the fed may have to raise rate very rapidly in order to quell this inflationary episode. it reminds me, you may remember this, neil, but what we used to call the go-stop policies of monetary policy. step the on the accelerator and try and goose the economy as much as you can, and all of a sudden inflation rears its ugly head and you have to slam on the brakes to slow it down. neil: right. >> that's not a good way to conduct policy. and, to me, in my mind, this is kind of like a plague over the

last two years, and i think that is poor policy and risky for the economy. neil: yeah. it sounds a lot like the way my wife drives. i mean, you wouldn't want to be in the car with her. [laughter] >> i won't go there. neil: there you go. i just did, i think i'm in trouble. let me get quickly your thoughts on whether we can avoid a hard landing or a recession with this. everyone talks about the idea this is all to bring us a soft landing without any more serious reperfect cushions. do you think disturb -- repercussions, do you think we can pull that off? >> i think at this point it's going to take not just good policy at this point, but some luck. i think the fed has waited so long to rereact to in that -- react to in that it has raised the risk that the ability to achieve a soft landing are getting smaller and smaller. i hope that's not the case.

i think it's hard for me to imagine that you can cure and bring down 8% inflation down to 2% without some pretty impressive policy actions. and that's going to be disruptive which risks, you know, whether or not -- how much the economy will have to slow. that's why i wish they had started earlier. and which, by the way, a lot of people like myself and others argued we should have started earlier. it might have been easier and more gradual a, might have been more successful. of course, we have to wait and see how this plays out. neil: yeah. so real quickly are, i mean, you talk about an 8% inflation rate, and the old notion used to be you'd have to get the fed funding rate close to a level. where is and how high do you see

fed funds going? >> i don't think anyone knows for sure. the fed doesn't know. but i do agree with you, your statement there that typically the funds rate would have to get significantly above the rate of inflation if you were to achieve a tightening of policy to bring flakes down. inflation down. obviously, there's some temporary factors at work, but i think that -- i don't think a 2.5% funds rate is going to do it. neil: interesting. >> maybe it's 4, maybe it's 4.5. i don't know for sure. it depends on how inflation plays out, but i don't think 2.5% is going to be enough. neil: yeah. because that would be more than double where we are right now, and that might not be enough. i always learn a lot, charles.

i want to thank you very much, and for your service to this country in trying to keep things calm and rational. there's a crazy concept. charles plosser, former federal reserve bank of philadelphia president. all right. the dow up about 575 points. the 10-year note, steady as she goes, right now at about 2.75%. stay with us. ♪ ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq

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lucas. >> reporter: that's right, neil. once again desperately-needed human atarian aid arriving here in the united states, this time to dulles airport outside the nation's capital. the first lady was there to greet it. >> we know that. joe knows that. and as dr. murphy said, these shipments are only one part of the strategy. >> reporter: it's the second time since sunday a massive u.s. air force c-17 bringing thousands of us pounds of formula from europe to feed hungry american babies across the country. as you mentioned, neil, a whistleblower wrote a 34-page scathing report alleging unsan tear conditions at abbott's michigan plant. it went unnoticed by top officials for four months leading to this nationwide shortage. after two infants died, the formula factory closed down. abbott says it launched an investigation alongside fda and c cdc and found no evidence its

formula caused infant deaths. former college football coach senator tommy tuberville, neil, asked the following question: >> 18,000. somebody's got to be fired, right? >> i, you know, have been involved in running a lot of successful organizations, firing is not necessarily the solution. >> and when can we see it? >> when can you see the plan in. >> to correct these problems, yes. >> i mean, we have a plan, but a complete plan right now we'll have to get to you as soon as we can. >> reporter: officials say this baby formula crisis could drag on for another two months. neil? neil: all right, lucas, thank you very much. lucas tomlinson at the white house. let's take a peek at the dow right now, up 581 points. we've been telling you that all the major averages are sprinting ahead. charlie brady, who follows this stuff, pointing out 2% gains just today on all the key market averages here. so this maintains itself for

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neil: you know, the comeback in the markets today, particularly the nasdaq, a lot of the technology names are still well, well, well underwater. the nasdaq itself deep, deep into bear market territory and then some. typically a decline of more than 20% from loftiest levels. jackie deangelis following it all and what they're saying about where it could go from here. >> that's exactly right. look, the markets are trading higher, but that does not mean that tech hasn't suffered something pretty awful since the start of the year. as a matter of fact, vanguard is taking a $15 billion hit from technology alone, and one of its etfs, the vanguard information technology index fund, down almost 20% year to date. [audio difficulty] if commonly known as fang, they are meta, formerly facebooking amazon, apple, net from flicks, alphabet, formerly google, all

suffering. amazon down 33% year to date, apple down 17%, netflix, 68%, alphabet, 25%. and the overall nasdaq, as you mentioned, down 25% year to date. is some of these companies, of course, have been impact by issues in china as well as overall global growth issues, and they don't seem to be resolve -- resolving quickly. nvidia is up today, but down 40% year to date. it did beat on revenue and earnings for the first quarter, but the guidance fell short. the company says it's going to see an $8.1 billion revenue in the yun coming -- upcoming quarter while wall street was expecting 8.44 billion. it also says it will miss out on roughly $500 million in revenue due to the war in ukraine, and also it is one of these companies that's also impacted by covid lockdowns in china. so slowing sales, and nvidia doesn't see things improving anytime soon. bottom line, neil, tech has been

hit hard, it's going to take a while to bounce back. neil: yeah, it looks like. we'll see. jackie deangelis following that. to luke lloyd on whether he agrees, very with-it, young guy. on top of things. luke, good to have you back. >> hey, neil. neil: the technology thing is an interesting story, it's been sort of like catching a falling knife here because rarely do we see two back-to-back good days, forget about for technology, the markets in general, but something's going on. what do you think it is? >> well, just take a looked at m&a activity and ipo activity over the past since months. it's basically been, you know, nonexistent. that's because companies are nervous to make big decisions as we head towards an environment where companies are going to have to reduce their overhead to minimize their risk. that means people are going to lose jobs. look, you know, everything moves in cycles including the stock market and the economy. greed turns to fear and fear turns back into greed. right now a lot of companies are

showing their fear through their actions. a lot of technology companies too. first their -- they cut their quick and easy expenses like advertising, then they slowed down hiring just like inmid v.a -- nvidia said yesterday. now we're in step number two with pausing hiring, entering phase three where jobs will be cut. a couple years down the road most people will look back and is wish they'd bought many of these -- neil: a couple, a couple of years down the another? that's how long you see in the going on? >> i absolutely do. it's not going to be a v-shaped recovery. i hate to say that, i know everyone's looking for that like we saw during the covid crash. neil: right, right. >> we dropped 35% and recovered three months later. that's not going to happen. it's nice to see a relief rally after seven straight weeks of declines, but i hate to be the bearer of bad news, i don't think we're in the clear yet. the scariest part is two-thirds of americans are living paycheck

to paycheck right now, and what happens when the job market starts to take a alternative? we've used the term diamond hands for the past couple years. every investor should have eagle eyes, not diamond hands, on the job market to gauge the strength of the consumer. that should dictate how risk-on or risk-off a your portfolio should be. neil: you might be right on a lot of this stuff. a lot of people say this is the great '70s experience all over again, and i think it's very, very different. i don't know it's nearly as dire as it was back then. now, to your point, it could the happen. but even when i see some of these retailers, walmart, target the, abercrombie, best buy, some of these others, but dollar tree and nordstrom just the opposite. but that and, you know, the buying activity, the retail activity, the vacation activity, southwest airlines talking record activity, i don't know. the underlying economy still seems pretty strong to me.

>> well, people still have jobs, right? what happens when they don't? jobs mean spending. you know, without jobs and spending, you don't have earnings, and right now people are more worried about inflation right now than their jobs when, in my opinion, it should be the complete if opposite. here's the thing that everybody needs to know from an investing standpoint, a lot of people are going to get themselves into trouble and mess this up. by the time we feel the most amount of pain economically, the stock market will already be on its way back up. i think we're going to see that very soon, throughout the second half of this year. that's what you want to pay attention to. neil: well, it worked, i don't feel like lunch anymore. [laughter] the diet was a success. thank you very much, my friend, i think. luke lloyd following all of that. thening client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. [ kimberly ] before clearchoice, my dental health read it carefully.

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neil: just got an email. thank god it's time for charles payne. cavuto go away. that was from my wife. that's just mean. charles. charles: [laughter], thanks a lot, neil. good afternoon, everyone. i'm charles payne. this is "making money." breaking right now, as you can see stocks are in rally mode. they are being red by most beaten up names and sectors. wall street says don't be a chump and buy this. i tell you what? it is looking more enticing that wall street doesn't like it. cbo said the economy is in glide path to a soft landing. i will tal