one way or the other so brace yourself for the next 24 hours it's going to be big time but for next hour i can't think of anyone better to guide you through this market than liz claman. she's got your back. liz: isn't that true? you look at the red on the screen you've got to figure wall street is playing it so close to the vest in this final hour as yes, traders await that key inflation number, out tomorrow. the may consumer price index, this gives us an indication of inflation at the consumer level. it could confirm further easing, hopefully, if sky high inflation has driven prices of goods and services dramatically higher, or it could be so high, the barn- burner charles just talked about it could force the federal reserve to be move aggressive, in hiking interest rates. adding to investor anxiety at this hour, rule changes, securities and exchange commission commission chair gary gensler proposed yesterday regarding how americans trade stocks. how might these proposed changes effect not just the retail investor but hedge funds?

many of which are getting a bitter dose of fairness already from the market sell-off. as some of the biggest report billions in losses from invest ing is the pain about to get even worse for the favorite investment vehicle the wealthy. former hedge fund manager raj is here in a fox business exclusive the warning signs he sees and whether hedge fund pain could spread to plain vanilla eft and mutual funds. we maybe in a crypto winter but is this new bitcoin bill making its way through the senate a ray of sunshine for the digital currency echosystem. we're going to take you live to the consensus 2022 conference in austin, texas to ask perry ann, the president of the digital commerce, exactly what she sees from this bill and where bitcoin goes. it has not gotten anywhere near its previous $69,000 high. it's a fox business exclusive. plus, important question. why are teslas crashing into

stopped emergency vehicles? we're going to check on tesla stock and tell you about the government agency that's looking into it. details straight ahead. we do want to start with this breaking news. wells fargo shares dropping 3.25 % right now, after news that it is facing a criminal inquiry of its hiring practices this time. now the new york times reported just over an hour ago that authorities are investigating whether the bank violated federal anti-discrimination laws with bogus interviews with minority candidates. the u.s. district attorney's office in new york is in the early stages of this investigation which centered on interviews of diversity candidates for jobs that were already promised to other people so managers were forced to interview diverse candidates just so that they could show that they were talking to people, but others already got the job. the paper reporting that the fake interviews were the result of the bank's mission to increase the diversity of its staff.

we are watching wells fargo stock, but folks, the history and i'm talking since 2016 where the la times unveiled all kinds of scandals of fake accounts. this history is getting too long for wells fargo. they got to fix this situation. let's get to you this , the fox market alert. why all the red smearing trader screens right now look at the dow jones industrial down 305 point, s&p lower by 50, we've got the nasdaq down 191, russel and the transports not much better. today's market moves are sharpen ing the focus on the concept that super-cycle start and end and one transition period maybe crystallizing right before investors eyes as the era of tech fades from its multi- year blazing hot run energy just getting stronger and stronger. if we take it back to june 9, 2020 fewer than three months into the pandemic and the tech super-cycle was in full swing, pretty much day after day, the same five stocks in the tech

constellation, facebook which switched its ticker to reflect meta, amazon, apple, netflix and google accounted for an enormous portion of the gains. now even as the covid vaccine rollout started to help the world reopen these same five names were kind of a gift that just kept on giving until the start of this year, when the narrative started to markedly shift. now year-to-date, let's look at all five. they are down double-digit percentages. in fact the s&p's entire i.t. sector which encompasses all of tech is down 20% year-to-date and its gap with the broader s&p which is down 14% this year, is the largest since 2004. now as tech falls could energy which is already on a powerful run just be getting started in its super cycle? today's mixed picture aside, energy sector is looking unbelievable after closing is the only winner of the s&p 500 yesterday, but all you have to do is look at some of the picture here.

xle, the spider energy index, is pretty much at its three-year highs, west texas crude closing at a 13-week high yesterday, we do have it at this moment slightly lower in the after market, the price of retail gasoline, on track for its 13th record in a row. yes, and that demand destruction experts have been waiting to see with gasoline hitting $8 in some parts of the u.s.. simply not happening. flip it to natural gas up 148% year-to-date just got thrown a curve ball of fire at an lng terminal in texas triggered a wild move in europe's natural gas price. the freeport lng facility which exports a fifth of liquefied natural gas much of it to europe will now be offline for repairs for three weeks. the benchmark european front month gas contract at the dutch ttf hub rose as high as 12.6% in trading today, europeans now paying close to $95 per mega kilowatt hour. do these numbers tell the super-

cycle story now as the commodity complex taking over tech territory for the long-haul, let's bring in scott bauer, sarge guilfoyle. let's take the shot live brand new trading floor there, scott, and boy, energy is certainly a big topic it looks obvious but already up and seen an epic run- up. where are you on ending of the tech super cycle and where are we in the energy play? >> so liz, yeah, it is a great floor here, but you know, you look at tech you look at energy. i've got to put on two different hats. i have to put on my trader hat. i have to put on my longer term investing hat. my trader hat tells me that the energy space definitely has more room to run. i'm not so sure it's a super- cycle in terms of years, but for the next quarter, two- quarters, you've gotta be in the energy space and there's three names i love specific that i believe you have to buy in any pullback.

devon energy, cf industries, occidental petroleum. i think those spaces if you look at the technicals and look just the general trend, those are great buys on any pullback. now, my longer term investing hat tells me that there is still some tech maybe to get into for the longer term, three names that are not sexy names. apple, amazon, microsoft. why do i like those? a, obviously they have been beaten down but more importantly , tremendous tremendous short interest in all three of those stocks. liz: yeah. >> their valuations, though rich, are not even as close to anywhere they were, back in 200d even with the fed continuing to raise rates, let's say we get up to the 3% area that they finally raise rates up to. those three companies will be able to digest it, and i believe those are holds for the long term. liz: okay so you've got the two a's and the fangs and they always say faang plus microsoft, like that one as well let me switch over to sarge.

sarge? talk to me about exactly what you're doing because i know that you are a whole bunch of energy names. is the tech super cycle just done for a long time? how much longer, and where do you stand on that and maybe picking up some at least right now. >> it's not done for very long. it's done for now. i'm going to hit you with some stats for the next quarter from the current quarter the s&p 500 analysts are expecting 4.1% earnings growth. they expect the tech sector to see only 0.8% earnings growth but the energy sector to experience 201% earnings growth. so you have to move with the money, even though it's getting crowded and be where you think the actions going to be. now, as far as tech goes i'm still exposed to software but a lot less than i was a few months ago. i'm still exposed to the semiconductor, i still love nvidia, amd, whose investor day starts in 20 minutes and marvel technology but i've moved a lot of that money i took out of software and some of the semis into energy.

chevron, for integrated oil & gas, i also like exxon but i'm not in it yet. as far as u.s. domestic production i'm in a patch e, pioneer, that covers the permian , and oil services, schlumberger, but i'd like to get into baker hughs i just haven't had the market opportunity to do so yet and your retail investors at home will love this. i run the su-10 portfolio stock s for the street, and for that portfolio, i have southwestern energy, swn, and transocean, rig in the bullpen. liz: okay but the tech names are you picking up anything here? our investors are looking at some of these prices down 20, 30 , 40% from their recent highs. >> oh, sure. in fact this week, i added to my service now, which is a software name, added to my service now position and added to my sales force position. as far as those kinds of names go, yeah they are a little rich and not in the ballpark of the names i usually trade but when it comes to software i invest in ceo's so i'm investing

in microsoft, bill mcdermot, and as far as sales salesforce, that's benihoff. so i pick the guys i perceive as winners i want them to work and win for me. liz: well, guys, you know, again , the ending and beginning of super cycles is a very natural market phenomenon, but scott, does it worry you that people are maybe calling this tech super cycle death of incorrectly and i say that because everything we need going forward in life is technologically related, especially as sarge likes, some of the semiconductors. i mean, the soft index has just been hammered year-to-date but i just find it so interesting that people are throwing them everything out with the baby, bathwater the whole thing. >> they really are, liz, and i think that is an issue for a lot of people, because you go to sell what is easiest to sell

first, when you need to liquidate and right now, that trend certainly is tech but you know, as sarge said, i really don't believe the super cycle is over. now, are you going to see every high-tech growth stock come back and start really rallying and get being back 25, 50% what they lost? no that's why i think you have to be really selective. i really don't think that cycle is completely over. liz: well it's nice to see the open outcry going on behind you at the cbo in chicago >> i'm so jealous. liz: i can see sarge. oh, the good old days are new again. scott, sarge, great to see you. >> i want to work for scott. liz: folks we're getting breaking news, president joe biden meeting with canadian prime minister justin trudeau on the sidelines of the summit of the america's in los angeles at this hour. the president addressing the u.s. chamber of commerce ceo summit of the americas in the last half hour. he's hitting on familiar themes, we're told, such as economic development, climate change, and

immigration, but not all the nations decided to accept mr. biden's invitation. let's get to edward lawrence joining us from the white house. whose out? reporter: very interesting what's been happening here. the president did open day two of this summit talking with ceo 's. he told the ceo we're seeing now what happens when you have a just-in-time supply chain. he then blamed all the financial issues we're seeing on covid, the russian president vladimir putin's invasion of ukraine, as well as climate change. >> for the economy in the future will increasingly belong to those who place a premium on resilience, and reliability, who invest in innovation over the long term and strengthen systems and supply chains now, and mitigate the impact of future shocks before they hit. reporter: yeah, so then, the ceo 's and urged them to invest more in climate-friendly

industries. now that was mainly talking about ceo's they said these are private companies and they do business in all of the americas. what's notable here is what countries did not show up for this event. namely, mexico one of the countries. now, the biden administration did not invite the leaders of cuba, venezuela, because they are led by dictated or s and that's the reason the mexico boycott if looking at justin trudeau on the screen a live picture in addition to el salvador, guatemala, and honduras all snubbed the event all countries vice president kamala harris visited to address the root causes of illegal migration into the u.s.. here is the president seemingly blaming putin now for the immigration crisis. >> global inflammatory pressure s were made worse by putin's brutal and unprovoked war against ukraine and making it harder for families to make ends meet and all of these factors are contributing to vast ly-increased migration flows throughout our hemisphere.

reporter: and he talked about having, how he is managing a safe and orderly migration. the president, as you saw there, meeting right now with prime minister justin trudeau and they are talking about that business development between the u.s. and canada and how they can move forward with more economic, environmentally-friendly businesses. back to you. liz: edward lawrence live from washington d.c. brokerage stocks still licking their wounds a day after the sec chairman rolled out his new proposed rules for fairness in stock trading. if gary gensler's changes go through, could it be the end of online trading platforms like robinhood? and on the other end, what will it mean for hedge funds that trade massive blocks of stock? rajaratnam r founded the gallium group, he's here live and exclusive next on whether the playing field needs to be evened out at which end,

closing bell ringing in 45 minutes we're hitting a brand new session low dow is down 388 points, the s&p down 61 at the low and it's just kind of showing an increasing problematic picture here for the bulls. we're coming right back. don't go away. you'll always remember buying your first car. and buying your starter home. or whatever this is. but the things that last a lifetime like happiness, love and confidence... you can't buy those. but you can invest in them. we believe that your investments should work harder for the future you imagine. and that's where our strategic investing approach can help. t. rowe price. invest with confidence.

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liz: could hedge funds be the new canary unthe economy coal mine? will the performance of tiger global guys this is one of the biggest hedge funds in the entire industry down 52% just this year, clocking $17 billion in losses. much of it attributed to huge investments in silicon valley unicorns which recently flounder ed along with the tech sector and then d 1 capital partners which last year posted a gigantic portfolio gain of 70% now scrambling after down 23% year-to-date after having borrow ed 2 billion to take stakes in private companies whose valuations, you guessed it , have now plunged and last month, melvin capital pulled the plug on his fund after wrong- footed short bets on gamestop among other names as many hedge fund traders find

themselves on the wrong end of the markets which are in or hovering around bear territory is the worst yet to come? let's bring in hedge fund veteran raj rajaratnam. he founded and managed the gali an group hedge fund until an insider trader forced its closure in 2009 and he runs his family office global. how much worse is this going to get? these are a couple names that reported their very bad performance. >> i think it's going to get a lot worse, liz, because what i'm astounded by is the lack of risk discipline in these hedge funds. we talk about asset bubbles and meme stocks. we talk about bubbles in spacs. we talk about bubbles in cryptocurrency, but these are supposed to be some of the most sophisticated investors, and the reason people give 2% management fee and 20% incentive fee is to manage their risk in down markets. what we've seen is that the large hedge funds, long- short equity hedge funds have got into spac investing and

got into private equity invest ing, got into venture capital investing which is not their traditional expertise and they're borrowing money so when the market turns, they're not able to be flexible and move quickly. liz: what amazes me is people, as you say, are paying these guys to be much smarter than the rest of us in the room, and look what is happening here when the markets flip a switch and the tables do turn, that's when as buffett likes to say you see whose been swimming naked as the tide goes out. i know you can't name names but what types of bets have gone so wrong-way that we will start to see some hedge funds that have made those bets maybe go under? >> well, if you're down 50%, you need to make another 100% on your capital to get to breakeven , so if you started at 100, go to 50 now you have to double the 50 to get to 100 so there's going to be a lot of

hedge funds that are under what they call the high watermark and they aren't going to work for free so some of them will close down and possibly restart again. liz: their investors come knock ing at the door as well. it's just starts falling like dominoes saying we want -- >> to pull the money out. so i think a whole bunch of hedge funds that will close shop either because investors are taking money out or because they don't want to stay the course. so the most important thing to be a hedge fund manager is to manage risk and that's why investors give you the high incentive fee. liz: hence the term edge. >> correctly. liz: close to hedge. let me ask now, they are also getting another stumbling block thrown at their feet and that is the potential rule change to trading that gary gensler, the securities and exchange commission chair wants to make. hedge funds make massive block trades. how do you foresee his changes potentially involving things

likening payment for order flow practices, effecting hedge funds and quite frankly, could any kind of contagion spill over to the retail investor? >> so liz, payment for order flow is mainly aimed at the retail investor. today the retail investor accounts for about 20% of the trading, so firms like sarah sanders charles schwab, e-trade, robinhood, they shop these order s to a firm like citadel or virtu, and they get paid for that order flow. in fact, these brokerage firms last year made $3.8 billion paying the brokerage firms for order flow. liz: right. now, what you do if you're e- trade or charles schwab give it to your favorite execution broker and while the public thinks they are getting no commission, they aren't getting the best execution price, so the commission is built into the system. so i think that it's a great

idea that gensler is trying to make it much more competitive and put it into an auction system, but knowing washington and knowing the lobby of the brokerage firms i'm not optimistic that anything will get done in the near future. liz: you are running money for your family office. the markets have been very hard to anticipate. what do you see as an opportunity right now, raj? >> yeah, so we invest in the software technologies, and we've been very cautious on the market. it's a very very challenging year this year. what we are seeing now is the valuations have compressed, and what we are doing is looking at companies or sectors that are somewhat needing assistance so there are three sectors we've identified. one is cybersecurity. everyday, people are planning to hack companies in the united states. we look at cloud computing, which is important and electric vehicles. @ trend towards clean energy and electric vehicles is a secular

trend and within that we have companies that we have invested in. liz: good to see you, raj. please come back because i know the hedge fund story is far from over, a lot of them may start to fall and stumble and then out right pull the plug. raj rajaratnam. >> take care. liz: we are coming right back dow jones industrial off the low of the session still swooning by about 361 points. (vo) while you may not be closing on a business deal while taking your mother and daughter on a once-in-a-lifetime adventure — your life is just as unique. your raymond james financial advisor gets to know you, your dreams, and the way you care for those you love. so you can live your life. that's life well planned.

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liz: all right, we've got a fox business alert here, five below falling below expectations, in its latest quarterly report, but the stock which got hammered last night on the news, is claw ing back in this final hour. the discount retailer plummeted close to 6% after-hours, after reporting a first quarter miss on both the top and bottom line. five below also forecast softer than expected full year estimate s due to higher operating costs. brokerages immediately dressing down the stock both jefferies and bank of america lowering their price targets by $50 to

$200, stock is at 133 right now, down 1.6%. other discount retailers have given similar warnings about inflationary headwinds and consumer spending concerns, not a surprise that big lots and dollar general are at least moving higher. they are the play when inflation is high, dollar tree down about two-thirds of a percent. the biggest among the retailer, right, target has been making headlines for sounding the inflation alarm twice in three weeks. the latest being tuesday, when the big box retailer warned discounts are on the way, due to too much excess inventory, well that's redundant, excess inventory, liz, but then this morning, target dropped this headline. it's raising its quarterly dividend by 20% to $1.08 a share , quarterly. quarterly, right? shares not getting a bump here at all down about 1% the dividend will put the yield on target stock nearly a full percentage point higher than walmart though, and will be payable september 10 to

shareholders of record. let's look at shares of signet jewelers can we see green on the screen yes, up about 8.6% after posting a shining earnings report giving upbeat guidance for the fiscal year. the jeweler which owns zales and kay, beat revenue earnings expectations and upped its fiscal year earnings outlook and also expanded its share re purchase authorization by $500 million, also announced it has settled a $175 million long- running lawsuit that was filed by thousands of female employees at their brand sterling jewelers, and those female employees claim that the retailer paid and promoted men more than women. apple announcing it's going to fund its new zero-interest and fee-free pay later service, with its own cash pile. wholly-owned subsidiary apple financial will check credit and extend short-term installment loans to the users of buy now

pay later service announced monday at the developer conference. goldman sachs is partnering as the technological technical issuer of loans made through apple pay later, but the iphone maker will make the credit decisions and use its own balance sheet to issue the loans apple shares are at the low of the session right now, down about 3%. a bipartisan bill making its way through the senate, could play a major role in how cryptocurrenc ies are regulated. this is topic number one, in austin, texas at this hour. we're about to speak to the president of the chamber of digital commerce, perianne boring next on what the crypto big shots at the consensus 2022 conference think about it and those big shots include two senators you just saw on your screen. closing bell, 28 minutes away, dow jones industrial sinking to new session lows down 433 points s&p down 68, the nasdaq is the biggest percentage leader we told you that tech super cycle

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minions: the rise of gru, in theaters july 1st. liz: again, in this final hour of trade, we are seeing a considerable increase in the sell-off going on right now, and as stocks drop, look at wall street's fear gauge. it is searching 8.6% at the moment still below 30 which we've seen a couple of times this year but either way at 26 the vix is up 50% this year showing anxiety and certainly a lot of volatility and fear gripping investors. the crypto world has been struggling alongside stocks as well. ethererum today though is getting closer to a software upgrade as the cryptocurrency had its first dress rehearsal yesterday. the crypto world is watching with baited breath to see how the long-awaited transformation plays out, but the entire space of the main crypto names here on your screen, everybody is losing at the moment. although, well, xrp is flat at $

0.40 but you can see we've got bitcoin down about three-quarter s of a percent to 30, 062 of course they're all watching in austin, texas the four-day consensus 2022 conference which kicks off at the austin, convention center it's a who's who of the crypto world there to discuss all the major issues from new crypto legislation to the crypto winter , joining us now, opposite , 100-degree temperature s in austin, texas, live from the chamber, the chamber of digital founder and president perianne boring. hundred degrees? >> yeah, it's hot. hey, liz good to be here. liz: good to see you too. give us the big headlines from the conference. >> yeah, so as you know, senators gillibrand and luumis introduced the responsible financial innovation act this tuesday. this was a bipartisan effort, and it is the most substantial effort that we've seen to-date to provide a comprehensive

regulatory framework for digital assets. this really has the potential to integrate digital assets into our global financial system. we have a problem in our regulatory system today. it's really fragmented and that's part of what makes the u.s. markets different than a lot of other jurisdictions. we have the sec, the cftc, treasury, irs, the list goes on and on and of regulators that have jurisdiction in this space so businesses that are trying to invest and get to market, they have so much to navigate in this regulatory patchwork, so this would bring a lot of consistency to that process, so in my opinion, you just went through the economic numbers. we really are in a dire economic situation globally. we need to come up with new ways to grow our economy. we have this nice entertainments space of blockchain technology and this is the most important technology since the internet itself. it's just as important as the

internet itself and if we are able to create a regulatory framework, for businesses to build in this space we could see an economic boom in this country. we haven't seen since the commercialization of the internet. liz: you know, i ran into a friend of mine who used to be in high finance and now i said what are you doing these days and he said i'm creating a crypto platform. this guys not 25, and you know, he's all in, and i said well what do you make of senator s lummis and senator gillibrand's new legislation and he said bring it on. i love all regulation. please just let us know what the rules of the road are. now, they are both supposed to speak there tomorrow. they seem to have done quite a bit of homework. they talked to industry participants, not just other regulators, and lawmakers who are crypto bad, you know, but there are some questions, because of course gary gensler, yesterday, at the sec, when he was giving his speech at a conference said in essence that he feels some cryptos are operating outside the law. that could go for anything. that could go for certain ceos

and managers doing nefarious things but where do you see this all landing, because they, the two senators, feel that the cftc, the commodity futures trading commission should be the chief regulated or of crypto. >> yeah, i mean, that is the conversation that's currently underway. i testified in the senate add committee earlier this year, where chairman bennom, the chair of the cftc was making the case to ask congress to extend their oversight into the spot markets of digital assets. so there's really two regulatory paths that are happening today. you have this bill, which is the most substantial effort we've seen to-date and then there's the executive order. president biden signed an eo into law just earlier this year, which is the starting gun for another regulatory process for the oversight of digital assets. i think it's likely this is going to go into the next congress to see , are those two

efforts, are these going to come together, work in parallel, will it be something else? it's not totally clear. we're still a couple years away before we see anything comprehensive make its way into law but again you have this patch work and the sec is a major stakeholder in that conversation but ultimately it's going to take congress to act to pass the law and their decision who the lead reg reg regulator is going to be. liz: of course the winklevoss brothers have said they are laying off a bunch of employees, you have been through a couple of these. when do you foresee bitcoin and some of the other names finding their footing once again and making their way backup? >> yeah, i mean, we've had lots of ups and downs in the crypto space. this is a very young and nacent industry you'll have ups and downs but all the markets are down. you went through, different stocks you're going through

earlier. the stock market is down, the bond markets are down. i think a lot of this can be attributed to the larger economic backdrop, and a lot of it is in response to the fed's aggressive tightening. when we look at cryptocurrency, we really encourage people to look beyond just the price, that's one indicator, but there's many other things you can look at to measure the health of this industry and of the network. so let's just take bitcoin since you mentioned it, which has the largest market cap out of all cryptocurrency. we'll take that for an example. the price is down but the fundamentals of this network , they are as strong as ever, the bitcoin hash rate, number of bitcoin wallets, the transactional value of the network are all at all times highs, in addition, all the valuation models for bitcoin have it priced between 69 and 180k today so you've got a strong network but the price is undervalued so i think the downturn is a lot more about what's going on in the larger economy and eventually it'll

reach parity. liz: i think the word you used at the beginning is nacent, just as the internet was and of course we have to watch it to see if it will be as sustainable and long term as the internet clearly is. perianne good to see you thank you for being here. >> thanks so much, liz. liz: perianne boring. inflation driving up not just everything that goes into cars, but price the cars. it is very much a supply issue as well. new autos are stacking up at the port of brunswick in georgia, as it struggles to get them on the road and headed for the dealers lots. what is the problem? ashley webster is about to tell you. he's got the story, from the peach state. and please, you've got to join the hundreds of thousands of people who are now downloading my weekly podcast. my latest twin brother who started the janitorial business right out of college, using $ 4,000 in borrowed, and worked their way up to tv stardom and real estate fortunes by flipping

houses. hgtv stars chris and cal lemont join me on this weeks edition of everyone talks to liz. hear from scrubbing toilets to helping clients transform their dream home. you can download it on apple, google, spotify, wherever you get your favorite podcast. folks, losses are metastasizing right now we're down nearly 500 points for the dow jones industrials. we've got a big loss on the nasdaq, the s&p, transports, every single major sector in the s&p is now in the red. we're coming right back. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums]

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i know there's conflicting information about dupuytren's contracture. i thought i couldn't get treatment yet? well, people may think that their contracture has to be severe to be treated, but it doesn't. if you can't lay your hand flat on the table, talk to a hand specialist. but what if i don't want surgery? well, then you should find a hand specialist certified to offer nonsurgical treatments. what's the next step? visit findahandspecialist.com today to get started. liz: could a massive recall of teslas becoming share which is had gone as high as 766 a share

now have lost all of their gains and stand at 719 bucks, they've reversed on news that the national highway traffic safety administration has upgraded its probe of tesla vehicles equipped with autopilot the auto safety agency opened a preliminary evaluation last august after a series of crashes that involved tesla vehicles striking stopped emergency vehicles. the new evaluation will assess 830,000 vehicles made from 2014- 2021 including the model 3, s, x andy and then decide whether to recall the cars. tesla down 1% and tesla is not the only auto maker with problems. while the supply chain backlogs are finally starting to ease in china, exports from its ports opening backup after weeks of covid lockdowns have another effect. because of that the ports here in the united states cannot keep up. the trucker shortage has left

thousands of cars stranded at port lots waiting to be picked up and delivered to dealerships. let's take it live to ashley webster at the nations second- largest port for automobiles, the port of brunswick, in georgia. wow, and it's effecting car prices, obviously, right, ash? ashley: oh, it certainly is. it's the very basic economics class, liz. it's supply and demand. if supply doesn't meet demand we know prices go up. take a walk with me. these are the latest batch of su baruus. made in japan, just brought into this auto processing area, where the final pieces are added, floor mats, splash guards, sun shades those kind of things and then moved on to the dealers. the normal turnaround time from getting off the ship to going out to dealers about seven days but what this story is about is the lack of production of vehicles. the port has about 32000 vehicles at this facility.

that's below and way or what it could handle as far as capacity but the problem is the chip shortage which led tofuer cars and that has caused a real problem. i spoke to the local ford dealership his name is lee king. i saw him yesterday and he said he had four cars. four new cars to sell. that's it and i said well is ford telling you when the chip shortage may start to see relief and here is what he told me. listen. >> ford has been telling us that the chip shortage should abate a little bit in the second half of the year. it's just going to take a long time to build the stock level backup. ashley: yeah, indeed it will, and we want to talk about prices , liz. let's look at the average price for a used vehicle in the u.s. , in april, coming in at 46, 526, on average, it's up 13% year-over-year and forget about dealer rebate and all that. there are no deals right now, and if you decide well, okay, maybe i'll get a used car, no

relief there. average of $30, 830 for a used car. that's up nearly 23%. i spoke to the executive director here of the georgia port authority about the driver shortage. we know that's been a big problem in the supply chain and he says hey good news on that front too. he said they are getting more drivers coming into the facility take a listen to that. >> we have hundreds of truckers , new truckers coming to register to use our facilities every week, so that's a great sign, good indication, hopefully we can continue to build on that ashley: but the problem, liz, again, is the lack of protection because of the chips and let me leave you with this stat. the dealer, the ford dealer there, lee king, i said to him, well, you know, what about the new ford f-150 truck, the best-selling truck in america. he said the very latest version and i found this amazing, he said there's 1,400 chips in the ford f-150. 1,400 chips so when you have a

massive shortage, that is the kind of impact its having and unfortunately dealers have no cars to sell and when they do they are getting top dollar. back to you. liz: 1,400. ashley: chips. liz: too complicated. ashley, thank you very much. ashley webster. ashley: my pleasure. liz: there may be gold, today's countdown closer thinks the gold rush maybe on now that discovery 's $43 billion merger with warner media is two months old. he tells us why warner brothers discovery shares could soon hit dirt even though they've been dropping precipitously just like the markets. the dow now down 571 points that is pretty much the low of the session we've got the s&p more than doubling its losses in just the past 50 minutes. now down 89 points. we might have a reason, when we come back. we'll tell you.

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liz: okay, the dow went down 617 points at the moment. now it is down 625. s&p down 96. nasdaq down 323. lows of the session. what is going on? we're figuring two year treasury yield just hit its highest level since december of 2018, 2.80%, up 3.basis points t appears to be getting closer. flattening of the yield curve with the 10-year treasury, which is 3.04% at the moment. everybody is anticipating as charles payne put it, a barn burner of a really hot inflation number tomorrow. cpi possibly coming in 8.3%, plus next week's federal reserve meeting they're expecting to raise interest rates. sean o'hara, pacer distributors. what do you make of this market action at the moment. a pretty serious selloff. >> good afternoon, liz, thanks for having me. it is not unexpected, when you

have rising interest rates and rising inflation those work inverse to p-e ratios. we've told investors lower overall portfolio pe, price-to-earnings ratio before the market does it to you. we're starting to see that. it has been pretty significant so far. we're above normalized long-term average pes. if interest rates and inflation continue to be a problem, it will weigh on the markets to going forward. heavy in tech in general where all the bloodbath has been so far. that doesn't mean there are not places to go in this market. the market is telling you where to go. liz: warner brothers discovery, 20 seconds on it. we're bumping up against the bell. >> warner brothers discovery is one of our names. invest on free cash note, free cash flow yield. they're in the streaming business. they free cash flow yield. advantage they are just getting started. the streaming business is about net new subscribers.

we believe they grow net new subscribers greater rhett than netflix or disney. cheap on relative basis. liz: very well don. cheap on relative basis. they were a 70-dollar stock year ago ape. thank you so much. [closing bell] there is the closing bell down two days in a row ahead of the cpi report. we're seeing losses at very bottom of the session. "kudlow" is next. ♪. sean: welcome to a session h special edition of "kudlow." i'm sean duffy in for larry kudlow. president biden's administration is failing. what does president biden do? go on late-night talk show. joking about inflation that america has quote, fastest growing economy in the world? edward lawrence at the white house with more.