maria: a big thank you to dagen mcdowell and mark tepper. have a great day, everybody. "varney" & company begins right now stu take it away. stuart: good morning, maria, and good morning, everyone. jay powell pulled the trigger, rates up 75 basis points and he's hinting at more big rate hikes to come and now we're seeing stock market sell-off. investors not convinced that power can crush inflation without crushing the economy too , and central banks all around the world are raising rates, as of right now. the dow going to be down about 500 points at the opening bell, up 300 late yesterday, down 500, right first thing this morning. the s&p also going to be much- lower and the nasdaq

probably showing the biggest loss of the morning. it was down over 2% yesterday as well. big tech that's leading the market lower. rising rates not good for the big cap growth stocks and down they all go, every single one of them. crypto investors, you better look at this. bitcoin on the edge of 20,000 bucks a coin, again. crypto still struggling. we have yet to see a sustained rebound from the dramatic recent losses. all right, i'll go quickly through some of the other markets. the 10 year treasury yield back up again, it's pretty close or was a few minutes ago close to 350, now it's 341. still a negative for stocks and cryptos. oil down to $114 a barrel this morning. gas actually fell, all of $0.01 it's now at $5 even as a national average; however, there is a gnaw high for diesel at 5.78. bottom line the markets are again in turmoil this morning. there maybe a little turmoil at the twitter meeting, what's he

going to say about remote work? he doesn't like it. some employees do. what's he going to say about free speech? would he talk about using ads on twitter or a subscription service. the president beats up the oil companies, beats up the refiners and generally bad mouths the vital fossil fuels industry. that's his answer to $5 gas. in my opinion, it won't work, and i've got a sneaking suspicion he's setting up price controls. he's desperate enough to try it. thursday, june 16, 2022 "varney" & company is about to begin. let's get down to business ♪ stuart: all right let's get on with it, shall we? here is the starting headline. no recovery for cryptos. all right, lauren, we know the

impact on investors, have lost their shirt. what's the impact on workers and the management of crypto companies. lauren: layoffs at a handful of crypto companies and it feels like we're scratching the surface there 1,100 workers at coinbase, crypto.com, all reducing headcount, and now axio s is reporting the founders of blockfi are cutting their pay. when you haar something like that you'd imagine it be more telegraphed. we feel your pain, so we're taking a cut too, the c-suite is not immune here, but the companies being very hush- hush on the fact that that report says their founders are cutting their pay. stuart: and bitcoin is testing 20,000 bucks. lauren: it's down nine of the past 10 sessions. stuart: next one, elon musk is going to address twitter employees so virtual town hall. do you have any idea what to expect? lauren: fireworks, right? the wall street journal is saying he's going to reiterate his desire to purchase twitter, but what are the questions that the employees are going to ask him through a moderator? they had to submit their

questions beforehand. is trump going to be allowed back on the site? how much do you plan to relax content moderation rules? what about remote work? we like not coming into the office. do we have to come back? and what's the latest on your deal to buy us? do you plan to walk, are you going to stick with it? wedbush writing about this , they say today's meeting is a clear step in the right direction towards the chances of yes, a deal happening. just not at 54.20. stuart: okay, 12 noon it kicks off. by 1:00 we should have some idea lauren: i want to know what he gets twitter at. what price. what price does he get. stuart: everybody wants to know and i don't know but i do know that gary gensler is with us, he's our market watcher this thursday morning. all right, gary. the fed hike rates, the dow went up 300 points, this morning, a big sell-off. can you explain what's going on, please? >> it's called reality. the market has a chance to digest a lot of things that was said yesterday, and for the

record, stuart, i am stunned that jay powell said that he doesn't see problems with the consumer. it actually took the good man, ed lawrence, of fox business, to ask that question and i'm 100% sure we are already in recession and it's not going to be garden variety. every staff that's been coming out signaled that, yet he was very nonchalant about it, it was like a no biggie, and stunning to see. stuart: you say we're already in a recession. >> yes. stuart: if we're already in a recession why have we not yet seen or have we seen a market, a stock market bottom? >> we're not going to see a stock market bottom, because we have no choice, being forced to tighten monetary policy into a slowing economy and a recession because of the inflation where

jay powell lit the fuse, the administration jumped all over it and of course the situation with russia-ukraine did not help so they have to fight inflation at the worst possible time and that is a troubled economy and by the way, it is all about the consumer, savings rates are plunging, and credit card usage is skyrocketing. we're now seeing mortgage applications getting crushed and don't forget, we just lost 30 trillion-plus of wealth across the globe which is not going to speak well for the consumer going forward either, so we are in the midst, my friend. stuart: now you've told us in recent months, that you're out of stocks, almost entirely. >> yes. stuart: and you're mostly in cash. there's a huge sell-off going on right now and prices are way, way down. are you buying anything at these lower prices? >> not yet. we went to 100% in our growth accounts in november. the most we've been invested in

any one time is 20% and that was just quick ins and outs and we're just sitting back right now. we think cheap gets cheaper, and it's a very simple. every asset price has to account for higher interest rates and higher inflation, and i just don't think we're there yet. i think there's more to go in time and price and we'll just be patient and wait it out. stuart: we're following it. gary kaltbaum thanks very much we'll see you again soon. now this a new fox poll shows voters believe republicans handle key issues better, such as , inflation, border security, crime, foreign policy, even preserving democracy. the poll also shows only 18% of voters view the economy as excellent or good. that is an extremely low number mollie hemingway with us this morning. i can't remember such a lopsided view of political preferences. i guess the rep cans should be warned about over confidence right? >> i don't know, actually i think these numbers do reflect what we've been seeing in

mid-term primaries, special elections. it does look like it's going to be very bad for democrats. they have the disadvantage of controlling everything in washington d.c., so there's no one to blame for the situation the country finds itself in other than democrats. i mean, they have had a narrow majority in the house. they control the senate. they control the presidency. they have very little disagreement about their policy positions. they tend to vote in lockstep on the policies that have led to the current situation, and so they don't really have a great argument because they cannot blame anyone else for their plig ht, and that's what these poll numbers show is that americans are aware of the political situation and if they want things to change they are going to be voting out. stuart: in the mid-terms during president obama's first term, he lost 63 seats in the house. that was a wipeout. could the same thing happen again this november? that kind of number? >> that kind of number, the seats are more now than they were then, meaning that these

state legislatures created districts that are harder to flip one way or the other but what we're seeing already democrats just have small single-digit majority big gains are expected for republicans. it'll be, and i think people are right to expect it's going to be massive. there's really nothing good that democrats have to campaign on right now. every single policy's fear is something that american voters are frustrated on. as you noted even their big plan was to divert attention from all of the things by focusing on how supposedly they were helping democracy, even on that issue republicans have the upper hand. stuart: okay, we'll find out but one more for you. a writer for the atlantic is telling us to leave joe biden alone and asking why can't the president catch a break? mollie, do you think we've been too harsh on joe biden? >> the fact people are pretty generous with him because they understand he's not in a particularly great situation in terms of his competence. if he wants to be left alone he

should resign and people be happy to leave him alone at that point but as the president, he does bear responsibility for the policy decisions he's making, which he went aggressive ly into, on day one, whether it was energy or border or his foreign policy, and people, you know, people might wonder whose really in charge but he is the president and he absolutely should not be escaping from scrutiny and just the atlantic was one of those publications that created so many hoaxes in the previous administration, and they lied about the previous president and his policies, and that they would publish this now is quite the gall. stuart: it really is. mollie hemingway you're all right thanks very much for being with us this morning. >> see you soon. stuart: sure thing. how about this? dr. fauci has tested positive for covid. wait a minute, lauren. isn't he fully vaxxed and boosted? lauren: two booster shots and he tested positive. he is 81 years old so he's taking paxlovid. he was scheduled to speak today at a hearing on the status of the federal response to covid, which is ironic, but he will do

so. he will participate via video conference. stuart: i need another covid update on shanghai, china. lauren: okay, they are doing mass testing of everyone. every district, all 16 districts every weekend through the month of july, regardless of your symptoms. okay? if you test positive, you must isolate and quarantine. it started this past saturday so essentially all of shanghai was locked down as they went through and tested. 24 million people, how many positive cases? 66. 66, out of millions and millions of people. so, their strategy is, let's go through the community. let's root out these hidden infections, oftentimes asymptomatic. this is the exact part of living with covid-19. going a step further you have to show a negative covid test they change it based on 24-72 hours if you want to do stuff and go out to a nightclub or go to a restaurant if you want to go to a shopping mall if they are even open. stuart: that's extraordinary. lauren: the opposite of living

with covid. stuart: the exact opposite of the united states of america. you couldn't get away with that here. the baby formula plant in michigan just opened up and now i believe it's closed down again lauren: opened up less than two weeks ago and it is closed again this is what happened. thunderstorms rolled through the area, flooded the area in michigan where the abbott plant is. now they are assessing the damage and they are going to have to cleanup so as a result, baby formula will be delayed a few weeks. all the new formula coming out of that plant, temporarily delay ed. stuart: okay, climate change? just joking. thanks, lauren. check those futures, please. it's a sell-off. the day after the fed raised rates, dow down 500, nasdaq down nearly 300. one major crypto exchange taking on the woke culture within its own ranks. the ceo of kracken says " triggered employees should leave" take tax forget the putin gas price hikes. the white house has a new boogy man. oil companies. roll tape. >> we see it as a patriotic

duty, as we are, as we've talked about there's war. what they have been doing is taking advantage of the war. we are calling on them to do the right thing, to be patriots here. stuart: since when has being patriotic involved begging saudi arabia and venezuela for oil? we'll be back. ain't that america, you and me ♪

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lauren: we've gone over this a few times. stuart: no we haven't. i can't remember anything. isn't that a beautiful shot? that is van horn, texas. 73 degrees in van horn, texas, my kind of weather. it's thursday morning, here we go. diesel, new high, 5.78 per gallon. obviously, hitting the truckers and hitting them hard. lydia hu is at a shipping company. all right, lydia. how's that company dealing with rapidly-rising diesel prices? reporter: hi there, stuart. this shipping company, we got a nice hello from a truck driver, but this shipping company has been forced to impose a fuel surcharge of $250 on all of this delivery. stuart, the last time this company had to impose such a surcharge, president jimmy carter was in office. >> pass on a fuel surcharge but the end-user is getting murdered

reporter: yet, diesel prices, gasoline prices, they are a major driver of inflation, according to the wall street journal, higher gasoline prices contributed to roughly 20% of may's 8.6% year-over-year inflation rate, because nearly all products are transported aboard trucks at some point. those prices passed on to companies and ultimately to the consumer, target, for example, warned shareholders that it did not anticipate transportation and shipping costs would soar as they have. walmart also said fuel costs ran $160 million higher during the first quarter than expected. amazon said shipping costs have doubled. monster beverage also blaming rising costs on freight, and fuel. now, with these higher diesel prices that have spiked 80% over a year ago, the cost of filling up a truck like this runs about $650 last year to $1,150 now, stuart.

stuart: lord. how do you deal with that? i simply can't imagine. you've got to put the surcharge. lydia, thanks very much indeed. you know, the white house is now shifting its blame for rising fuel prices from putin, oh, no it's shifting it to big oil. watch this. >> we are calling on them to do the right thing, to be patriots here, and not to use the war as an excuse, or as a reason to not put out a production, to not do the capacity that is needed out there, so that the prices can come down. stuart: we need an expert in the oil industry. we found one his name is steven schork, and he's on the screen right now. do big oil companies bear any blame for the spike in oil & gas and diesel prices? >> the oil companies, stuart and the answer to your question is no. they are not gouging. it is, you have nancy pelosi, joe biden, the mccarthyites,

when it comes to price gouging. the president the other day singled out exxon for its egregious $5.5 billion profit that it reported in the first quarter. the company also paid $2.8 billion in taxes, so i think that's pretty patriotic. now, when we look at those earnings, stuart, when you look at the profit per-sale for each dollar, exxon's profit on that $5.5 billion was 6 cents for every dollar of sales so now you take a $5 gasoline, you go out and fill your 20-gallon tank , exxon, it's costing you $100 a barrel, $100, exxon keeps $6.02. new york state on june 1 upped its gasoline tax to $0.29 so on a 20-gallon tank, new york state is walking away with $5.80 and you add the $0.18 the federal government takes and they are collecting $3.60 so on that $100

, $6.02 goes into exxon, $ 9.48 goes to the government. that is not owing for profit, stuart. stuart: i think you made your point very well there, steven. next case. headline in the wall street journal. is $6 a gallon gasoline nationwide next. what do you say, steven? >> it's a race, stuart. do we get the $6 before we hit the severe economic downturn, because we are going into recession, if we're not already here. three years ago, a worker had to work 2.5 hours to fill up a 20- gallon tank. today they have to work 3.7 hours. a 48% increase. we have never gone into, we have never avoided a recession when we had such egregious spikes in both energy, food, which is what we have now, so recession is a foregone conclusion. the rate hikes, so forth, so do we get to $6 before we hit a severe recession? it's a race but at this point, we need to see oil prices at

about 130-$140 to get there. it's certainly within the realm of possibility at this point. stuart: steven shork, thanks very much for being with us. when prices go up like this , i mean, prices for everything, consumer prices, all across-the-board, how do regular folks cover their basic expenses it's a challenge, obviously. are they dipping into their savings? lauren: absolutely the national retail federation out with a survey. 58% of all consumers have to go into debt, borrow money or use savings to cover expenses not just any expense but everyday essentials. 40% are cutting back in other areas in order to afford these basic necessities. that translation is less money to spend on discretionary. that hurts the economy and it proves this level of inflation is not sustainable. everybody wants it to come down, but the predictions are, consumer prices are going to be at nine-plus percent for the next month or two. stuart: how do you avoid a recession with information like that good lord. check futures, please. it's a sell-off this thursday

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stuart: all right it looks like a sell-off to me, coming up in about two and a half minutes dow is down 500, ray wong with us this morning. look, you're our tech guy and tech is being creamed. i mean, there's a huge sell-off in the big tech. is it time to get back in? dip your toes in the tech water? >> short answer is actually no. even though we're down, like tesla is down 94% from its highs , meta down 55% from its high, it looks like a great time to go in, but there's something interesting out of jay powell's meeting yesterday. he's going after core inflation, right? but the energy and food prices is where the problem is and the fed can only address the core inflation elements but they can't address food and energy. that's got to come from policy, and if we don't get to that piece, we are definitely in a stock but the tech companies overall in the long run are going to do well, but the challenges in this environment, the valuations , and of course the earnings, are going to take

a hit and that's what i'm watching for and i don't think we've hit bottom yet. stuart: why are the tech companies, why are the tech companies susceptible to jay powell going after core inflation as opposed to energy price inflation? what's so bad about that for tech? >> well in the long run, it's about rate sensitivity. these are tech stocks are highly -sensitive to rates and if he thinks he's going after inflation, without going after energy and food, he's going to keep trying to raise interest rates without getting to any effect, and we're going to get into compounded problem where we're actually in a situation where he's got to keep raising rates to catch up with inflation but he's not addressing the real inflation causes which are food and energy stuart: is it possible stocks like microsoft who just performed reasonably well so far , could they go down another 10% maybe? 20%? how low? >> well, when they actually forecast another earnings change or another change in earnings projections in the quarter, i mean, of those stocks, the tech stocks in this space, ibm has taken the least hit at 5% from

52-week highs but of course they had lower pe ratios. stuart: i'm just waiting for you to give me the signal and i'll get right in there but i'm not doing it until you say so. ray wang, you have enormous power see you again soon. >> [opening bell ringing] stuart: ten seconds to go we'll open up expecting a pretty serious sell-off. futures bottom right hand corner offer your screen indicating a 500-point decline in the dow, right from the start. and we are now starting trading. it's thursday morning, we're off , running and i expect to see quite a lot of red, here we go. i'm seeing quite a lot of red right from the start. it doesn't look red on your screen perhaps but it is all red , every single one of the dow 30 are in the red as we speak. chevron just went to unchanged but everything else is down. the s&p 500, also down 2%, solid loss there, the nasdaq composite , i'm interested here, how big a loss? 2.6%, down again. way below the 11,000 level. big tech down across-the-board,

apple's back to 131. amazon 104, meta 164, alphabet 2,143, microsoft all the way down to 245. that is a sell-off. lauren: that hurts doesn't it? stuart: it breaks my heart. lauren: [laughter] stuart: good morning, susan. >> good morning. stuart: i want you to explain something. the fed puts up rates. >> yes. stuart: as they put up rates the dow goes up 300 points. this morning we're down 500. explain. >> it's the second time in a row by the way that we've seen this type of price action, where you have stock market rallying into the actual fed rate decision and then a day after it sells off, because yesterday, did you listen to the press conference? stuart: i did. >> i would say that jerome powell was sounding very supportive in those comments and the answers he was talking about the fact that he's not going to raise interest rates by 75 basis points. it's not going to be a common event. he talked about neutral rates being very low, a softish landing as he called it so he's trying to avoid a recession. i thought that was all sounding

very positive but the day after is when you had the realization. if he does raise interest rates 75 basis points next month as well, that's 150 basis points higher when the summer's done. do you know how expensive that is for mortgages? already at 6% for mortgage rates stuart: right. forgive me for jumping in but it seems like investors, this morning, are saying you know? jay powell, you can not engineer a soft landing. >> also, if you look at some of the statistics in the prediction s for the second quarter gdp, the atlanta fed is predicting zero growth right now , so i mean, that's bordering on a possible recession with two quarters in a row, and then there's some desperation overseas. did you see the first time, the swiss national bank raised interest rates since 2007 to defend its currency. stuart: so did the brits. >> so did the brits. it was very hawkish, fifth interest rate increase so if people are just having to rethink right now, so it sounds

great from jerome powell saying that we're going to try to avoid a recession. can they actually execute and credibility is a question. did you listen to that press conference? the first few questions were, did you tell us 50 last time and you raise interest rates 75? so when you're talking about the end of year rate at 3.4%, do we believe you? i think there's been a questioning of that. stuart: credibility on the line. quite right too. >> absolutely. stuart: you know what we got to get to now. the crypto crash. i want to ask who are the biggest losers? >> well the biggest losers and you interviewed some of them, remember when you had jake paul on the show a celebrity loser but in terms of actual -- stuart: be careful, girl. >> in terms of bitcoin holdings , i'm being factual and analytical here, but in terms of corporate holdings, tesla's about $500 million under water on their bitcoin holdings according to our latest assessment. you also have micro strategy down about $1 billion on the 129,000 that they own, and there's really right now contagion fear across the

markets and we can can bring up this board of showing you whose been caught up in this so the luna stablecoin started off with $40 billion wipeout, that hurt sentiment, celsius that large crypto lender this week, $12 billion in loans, micro strategy as i mentioned to you there are concerns about this margin call they might have to put up extra collateral for , and then three arrows is one of the largest crypto hedge funds in the world, $10 billion that's how much they manage at their peak, so if you continue to see the slide in crypto prices, you know, whose going to get caught up in this? how much money is going to be lost and where is the contagion and how big is that net? because it's not just contained in one sector as you see from 2008 it goes everywhere. stuart: everybody is worried but they get real worried if bitcoin drops below 20. >> did you hear jeffly gunlack predicts bitcoin could, not saying it will, but could possibly get to $10,000. i will say this though. even at -- stuart: what a time to make a

prediction like that. >> even at 10,000 you're still up double from the end of 2019 so it depends when you bought in. if you're one of the fomo traders, you bought above 30,000 then yes you might be in some trouble. stuart: bottom right hand corner of the screen, dow is down 668. now, show me tesla, please. raising prices on all vehicles? >> most vehicles from what i saw. even a long range model y is going up to 65,000, close to 66,000 according to electric, and this is to compensate for inflation, supply chain woes, as you mentioned, we have musk talking to twitter staff this morning. dan ives says this twitter bid is 100 to $150 overhang on tesla stock, and i would imagine that a lot of tesla shareholders would prefer if elon musk just walked away from this deal. focus on the problems at tesla instead and there are a lot of problems right now. i talked to you about being under water on that bitcoin, that $2 billion stash, now it's

worth $500 million less. there are concerns that we could be looking at the first loss in tesla's, on tesla' balance sheet in two years. add that to the shanghai closure s the bitcoin losses, and i think elon musk has other things to contend with besides buying twitter. also, tesla shares have under performed the losses on the s&p. so since elon musk made that twitter bid, his stock, tesla, is down over one-third, whereas the s&p is only down by 17%. stuart: no financial report is complete without a mention and a headline from elon musk. >> well, i mean, he drives so much sentiment and he does have a trillion dollar electric car company. stuart: true too. >> which is one of the largest in the world. stuart: all right, meantime, what have we got? >> let's talk about amazon, because i feel like amazon is probably a good barometer on the consumer sentiment. we do know that yes, prime day is coming back july 12 and july 13 and the event is going to be hopefully, they think, a big revenue driver for them and other retail sites and other,

you know, because you also have other sales during prime days, whether it's walmart and the like. also, you get early deals for those prime members starting june 21. stuart: those prime days are a big indicator for the entire retail sector. >> i really think so. that's probably the big takeaway , forget about the deals and sales but for me what it says about how strong and the strength of the u.s. consumer. especially in light of the retail sales we saw yesterday. first drop in five months, right with higher interest rates, how healthy are you and i still spending in light of all of this doom and gloom are predictions of recession, it'll be a great sentiment indicator and remember the university of michigan read that we got? everyone still talking about it. historical low in consumer sentiment. stuart: and didn't revlon just file for bankruptcy. what's wrong in the cosmetics industry? >> i think it's what's wrong with revlon. so cosmetics is a consumer indicator, but revlon itself, 90 years old owned by billionaire ron pearlman, actually got its footing during the great

depression when they started selling nail polish during that time to women but the problem is that they have $3.7 billion in liabilities and they only have $2.3 billion in assets so there's a gap there and the reason is because they really didn't catch on to the social media cosmetics trend. think of like glossary or some other ones. stuart: that's another trend to miss. >> and i'm speaking like you would know, right? you know the social media cosmetics trend, right, stu? stuart: absolutely. >> [laughter] stuart: moving on, you know what we've put the board in a different position, so i can now read it. the big board at the moment is down 677 points. it's below 30,000 on the dow industrials. that's the alarm bell. okay, show me the 10 year treasury. 342 is the yield. show me the price of gold. 1,832 is the price, per ounce. check the price of bitcoin. currently, just holding on to 21,000. oil actually coming down to $113 a barrel, nat gas moving up a

little bit to the 787 range, gasoline actually moving down, how about that, folks, down one hole cent to a national average of $5 a gallon and california, sorry, folks, # .42 is your price. coming up, you know, it's bad when even cnn gets a little nervous about the president's state of mind. roll tape. >> when he stumbled you get nervous and you wonder, is it just a stutter, is he tired or something else there. stuart: we're going to get into that, believe me. you've heard the jingle. it's the best part of waking up, remember that one? the best part of waking up ♪ we've got a new report warning that a coffee maker, your coffee maker, could be spying on you, we'll have a story. the crypto crash, bitcoin down 30% this week, nearly 70% down from its all-time high so why should i buy now? i will ask a crypto expert.

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stuart: if you look closely at that stock market, you will see that the dow industrials have dropped below 30,000. they're down 780 points, that is 2 something percent and you're back to 28989 that's a sell-off. now take a look at the cryptos all down again, and bitcoin is flirting with 20,000, it's right at 21,000 at the moment. matt hogan is with us, he's a crypto guy. look, the cryptos are cratering, matt. there's something wrong with the whole structure of the

industry. luna collapse, celsius is in trouble, it's not used as a currency. you can't do transactions with the cryptos, and it's not an inflation hedge. why on earth should i buy now? >> it's a great question, stuart. the reason to buy now is crypto has been a leading indicator of the market throughout this bear market sell-off, and was the first to turn down when the fed turned hawkish in november. it's right now, the first to enter a classic deleveraging cycle. you mentioned celsius, you mentioned luna, earlier we mentioned three arrows. if you think the market is going to bottom and reverse, by that i mean the broad capital market, you'd expect crypto to do that first and perhaps to bounce the hardest. stuart: wait a second. wait a second, matt. >> yeah? stuart: if i buy into the stock market, i get something back. i get a share and a piece of a company, so if the price goes down i still got a piece of the company. if the price starts to go up again, i've got a bigger piece of the company but if i buy into

bitcoin or any crypto, there's nothing there, matt. there's no money there, there's no property there, and i'm buying into absolutely nothing. why do you assume that if you buy into nothing you'll bounce right backup again with stocks? >> oh, well i would pushback that you're buying into nothing. the core technology behind crypto, blockchain technology, the idea of a decentralize decentralized lemont erin the case of bitcoin and the idea of digital store value for the long term that remains intact so you're buying into the same thesis you were buying into years ago which is that is a technology going to transform the way money and finance works over the long term. stuart: not a value if people don't buy it: it's only the value of the number of people that want to buy it. it exists entirely on demand. that's it. >> in the case of bitcoin i agree with you. it's just like gold in that respect. it's based on supply and demand. in the case of other crypto

assets, they're productive assets providing decentralized services growing in importance and in use everyday, continuing to this day, we see exponential growth in the demand for block space on blockchains like ethererum so in the case of bitcoin you're absolutely right. it's a version of digital gold driven by supply and demand. there are people who think that the long term demand for a digital version of gold will be extremely strong, and there are people who are skeptical about that. that's what makes the market but it is important to separate bitcoin from more productive assets like ethererum. stuart: fair enough we got bitcoin at 21, 100, thanks for joining us we appreciate it. by the way one of the world's largest cryptocurrency exchanges , that's kracken is taking on its own woke employees , nothing to do with cryptocurrency. this is about internal politics. what did the ceo say? lauren: he's offering buyouts to employees that are too woke. okay, let me explain. this is what he said. the ceo said this. most people don't care and they just want to work.

that's correct, right? but he says, you can't be productive while triggered people keep dragging them down in debates and therapy sessions. the answer for us was to just layout the culture, and say, agree and commit, disagree and commit, or just take the cash. what's the cash? four month's pay, to leave. stuart: whoa. lauren: but why would a cryptocurrency executive be saying this , and crypto is anti -establishment. right? it's libertarian. it's about freedom. it's about doing things differently, and because of that culture, you should have the right to think what you think and not have to appease other people. stuart: yeah, but not to be a gorilla within your own corporation. and attack management and attack other employees, which is what a lot of woke folks do. lauren: netflix started to crackdown on that and now you have some in the crypto space doing the same. stuart: i'm cheering kracken on. i'm sorry i am. lauren: i think he was bold in saying that and we give him a lot of credit. stuart: thanks, lauren.

coming up shrinkflation hits the menu. restaurants which survive the pandemic now cutting portions to survive inflation. elon musk said he voted republican for the first time and that's just not sitting well with liberals. one squad member calling musk a white supremacist. ♪ ♪ ♪ 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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stuart: elon musk voted for mayra flores, in texas, the first time he ever voted republican. i bet that triggered some things lauren: it was a fast reaction, so i want to tell you, the democrat congressman from new york, jamal bowman, he just shouted racism right away. he said elon musk is not a leader. he's just another republican billionaire who supports white supremacy, and authoritarianism because he doesn't want his workers to unionize or pay his fair share in taxes. number one he voted for a mexican american. this is the first time he voted republican, yes, he is a billionaire, and musk predicted all this would happen, right? he said the critics are going to

come for me, and they have. stuart: i tell you. all right, thanks for that. because you're absolutely right all down the line. now musk is going to address twitter employees today. it's a virtual town hall, starts at noon. kelly o'grady has more on this. kelly, i'll bet there's going to be fireworks. reporter: [laughter] yeah, that's safe to say, stuart , right? elon musk is never shy, but ultimately the questions musk face will be pre-submitted and curated and with the state of the company resting on this deal twitter is not looking for a contentious bombshell meeting but with the takeover so chaotic this town hall does have the chance to be fractioned and twitter employees made no attempts to hide their disapproval of the acquisition, harboring concerns about what a privately-owned twitter could mean for their culture and compensation. musk has also been critical of the company's past decisions leading his followers to unleash a wave of abuse on the platform 's top lawyer. musk for his part is reportedly expected to reiterate his commitment to the deal and address concerns over remote work. he'll also likely elaborate on his aim to diversify the platform's revenue streams.

the big elephant in the room though will be his threat last week to walk away from the deal over the percentage of spam bots now the fact that he's meeting with employees is a good sign for the takeover, but most analysts think musk is still seeking to negotiate a lower price, and you can see the stock is trading about 30% below his offer of 54.20. now, all this comes as he seeks to get out of an sec battle over tweets relating to tesla, and sources inside twitter tell me employees are keen to ask about his tweeting etiquette regarding the social platform especially after he made waves yesterday as lauren was just mentioning throwing support behind republican candidates. so this is going to be the first time he addressings employees since the takeover bid so stuart what i'm looking for is specific s around how he plans to execute his vision for free speech. he talks a big game amidst this growing debate around censorship and i'm hoping we get answers on what that will look like. stuart: you probably will. it's a one hour meeting and he packs a lot in. kelly thanks very much indeed. check the market please, and you will notice that the dow has

dropped below the 30,000 level. we got a sell-off folks down 700 for the dow, 350 for the nasdaq. still ahead, florida congressman mike waltz, will cain, chad wolf , and wall street journal guy, dan henninger. the 10:00 hour of "varney" & company is next. ♪ ♪ ♪ i'm the latest hashtag challenge. and everyone on social media is trying me. i'm trending so hard that “hashtag common sense” .. and tens of views. ♪ ♪ ( car crashing ) ♪ ♪

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stuart: good morning. it is 10:00 eastern. we got to get straight to the money because we are in selloff mode. the dow is down 670 points. dropped below the 30,000 mark, nasdaq down 3%, s&p down 2.7%. that is a selloff. big tech selling across-the-board. i can't see any green at all. i got up about, microsoft, apple, amazon, meta platforms significantly lower. they are all quoted down in percentage terms.

10 year treasury the yield moving up to 3.43%, big tech going further down. bitcoin struggling to hold 20,000, just managed to stay at 20,950 as of right now. 10:00 eastern time on thursday morning, mortgage rate time. the number please. lauren: it rose sharply, 5.78%, this is the government mortgage rate so it is lower than the 6. 28 we told you about yesterday. the sharp increase in the past week is the biggest increase we've seen ever since the records go back to 1987 for freddie mac and the highest rate since 2008. this is uncomfortable for a lot of people who are looking to buy a home or sell a home, 3% rate turns into near 6% using the freddie mac rate. stuart: it is a problem for everybody, housing included. now this.

any industry, any company that has anything to do with fossil fuels has been starved of capital deliberately. from day one the biden team choked off investment. it was clear the putting money into coal, oil or gas was not a good idea so they didn't put the money in and we are living with the results, shortages and skyhigh prices. here's biden's latest response, beat up the oil companies, refiners, threatened them with taxes as if that will raise production or lower prices. it is dishonest, basically dishonest and a set up. the administration knows that another spike in gas and diesel is likely the summer so they set up a bogeyman now and big oil takes the blame later. watch out. this is also a set up or price controls, for months bernie sanders has been demanding the government step in and dictate prices, yesterday nancy pelosi and senate majority leader

schumer visited the white house discussing ways to control inflation. surely price controls came up. if biden follows bernie and tells your local gas station how much they can charge you will see gas lines. it will be another echo from jimmy carter in the 1970s. the second hour of varney just getting started. stuart: front and center, the selloff continues. our market watcher of the morning. how much further do we have to go down to find the bottom of this market? >> great question. thank you for having me on. it tends to be when we see a recession begin we will see a good down followed by a couple additional downs that might give people safety now, the famous balances, we've been

looking at this, expecting to see more downward pressure, not a lot of great sentiment in the market right now so we are looking another 15%, 20% if depending what needs to get cleaned up, so many moving parts today as you noted in your previous segment it is difficult to forecast in a timeframe when there is so much uncertainty. stuart: you are looking at another 10% or 20% down from where we are now. i want to get this right because that's quite a prediction, strong selloff still to come. >> strong selloff still to come and your previous guest was right noting the mortgage rate changes, this is something we've not seen come out in our conversation yet and that is if we go from 3% to 6%, each%, 10% loss in buying power. we are purchasing a mortgage as a payment, one third of

america's income, america is getting priced out of the market in an interest rising environment the will slow that significantly because 500,000 median loan before can be 350 today. stuart: what should i do with my money? keeping cash and don't touch the stock market with a 10 foot pole? >> that is a good question. cash is important today as you need to look at short to midterm expenses, specifically those entering retirement here. we need to be considering where do we go if interest rates are rising, the bond market today is seeing some challenges because the interest rise in environment has a seesaw effect related to bond so we are seeing big downturns in that had larger expectations the federal reserve will increase rates at a higher clip, maybe not. 075 but they said we are not going to do. 75 and here we are today at that increase so we are looking

at rates up, bonds up, there are challenges in the stock market. i'm seeing all three of those have this convergence right now. it is a little scary out there to identify where do we go, what do we do? stuart: cash is king as far as i'm concerned. perfect positioning, the top of the 10:00 hour as we are selling off, thanks a lot. we have some movers obviously when the market is gyrating like this, kroger is down 3%. what's the story? lauren: solid quarterly earnings but their margins are pinched, there's only so much they can pass on their higher prices the consumer and added labor costs and logistics to move the items, this hurts the man they forecast their full year same-store sales grow below estimates, stock is down 3.5. stuart: how about etsy? >> they have a one hundred $20 price target but they didn't cut that by $20, looking at

third-party data on conversion rates, the number of people who go there to buy something, visitors purchase purchasers, people are not necessarily buying something. that data was week. stuart: disclosure, i live in a toll brothers home. lauren: which one? can i own a couple? stuart: what is with toll brothers and lennar? lauren: they are down between 4% to 6%. new construction fell 14% to a two year low but prices still high, rates are even higher, supplies not including much at all. stuart: no wonder they are down. lauren: ubs slashed the price target on all those names. stuart: let's see how folks are managing this thing, the economy generally. people are asked whether elderly political leaders should move aside and let the younger generation take over.

>> some fresh blood in there that understands how we are living in the united states. >> you want to have somebody new in there during the next term because of age being a factor. >> term limits, we need one people who live in american lifestyle. stuart: an op-ed in the new york post, democrats doomed by feeble president biden and week batch of candidates behind him, there's some spice in that one. michael goodwin wrote it and michael joins us now, the democrats, the parties run by octogenarians largely, where are all the young democrats, where's all the young talented change to take over? >> that is one of the big questions. always talk the new york times started last week, the new york times has a curious relationship with the new --

the democratic party as far as what is acceptable, the new york times told the democrats it is now acceptable to say president biden shouldn't run for a second term and i would say that is fairly obvious. we can see for ourselves he's going to have trouble making it to the end of this one but the times piece did unlock a lot of people out there talking, saying biden can't cut it anymore and the age is part of it but it is the failure that is the bigger part of this discontent with him, when you look at the poll numbers, they are extraordinary, you've got something like 25% or 28% nationally approve of his handling of the economy. we've never seen numbers like that so he can't possibly run for a second term. the question is who and the question is what, what does the party stand for?

this mishmash of the far left and supposed moderates but all the policies are far left and you think of all the things the biden administration has introduced into the political bloodstream, none of them are moderate. stuart: who leads the party in the future? will it be the left, far left or somebody who might pass as a moderate? >> i think the moderate wing is dead, joe manchin and christensen are the only moderate left in the senate. the far left is taken over the party and that is one of the reasons it is so unpopular. stuart: michael goodwin, we will see you again soon. listen to this. cnn's van jones voicing his concern over president biden's verbal stumbles. >> stumbling makes him nervous. >> i think everybody is looking closely now. when biden does well he does

really well, that gun speech was perfect, it was powerful. when he does badly, when he stumbles you get nervous and you want to reset just his stutter? was he tired? or something else? people just looking, a lot of democrats are like if this guy is ready to go we are behind him but if he's not ready to go he should let us know. stuart: oh. lauren: if you get a second term he will be 86 at the end of it and you heard from van jones the party is concerned he is a liability because of his age. even if you agree with what he does it is performative. it doesn't translate well. he stumbles on his message. one thing to criticize the message but the delivery people in his party don't like either. stuart: his age messes up his delivery i think. lauren: it raises the question a lot of people are talking about, should people in their 80s hold such high positions.

stuart: we will mention the view. the cohosts of love you are shutting down claims of a red wave in november. >> here's what i would warn, the red wave is coming. >> we don't know that red wave is coming. it is based on a big lie. stuart: i haven't found anybody who says a red wave is not coming. we will take around. the governor of florida, ron desantis responded to elon musk's likely support for his running 2024 if he does run and has liberals fuming. we will tell you what desantis said. fox polls show inflation is the most important issue and that could mean bad news for democrats in the midterms.

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serious allergic reactions may occur. watch me. stuart: selloff selloff, that's what you've got, down 700 on the dow, down 400 on the nasdaq, down 2% on the dow, 3.5% on the nasdaq, that is a big selloff especially in big tech. all of them are down, we've got them down 2% on alphabet, 2% microsoft, 3% apple, 3% apple, 4% amazon, 4.5% meta platforms. that is a selloff. a new fox poll shows a large majority of voters say the economy is in bad shape. lauren: 5% say it is good, fair or poor, that adds up to 82%, people vote with their pocketbooks, 9 in 10 of us say

affording gasoline, grocery prices is a big problem for families, 47% say they are falling behind, up from 27% this time next year. only 10% say they are getting ahead, 17% last june. which party handles inflation better? voters say republicans overwhelmingly, they get higher marks on other key issues, security, crime, foreign-policy. stuart: the worst political news for the democrats i can possibly imagine and we will get that confirmed with congressman mike walt's from florida who joined me now, the economy is the most important issue for voters and you've got to be very happy about that. congressman. >> i'm not happy when i talked to my constituents and they see their 401(k)s disappearing in front of their eyes and small business owners, i talked to a bunch of homebuilders yesterday and they are seeing black ops on their supply chain, totally

unpredictable and you well covered what is going on with energy prices and biden's secretary of energy once again saying go by an electric vehicle, ignoring what is driving inflation, everything has to be transported. politically it will send folks our way but it is bad for the country and it breaks my heart because this isn't a natural disaster, this is bad policy coming out of this white house. stuart: i've got a sneaking suspicion the president is considering mulling over price controls on gasoline. bernie sanders, it is an awful idea but i think it might happen, bernie sanders wants it, pelosi and schumer were at the white house talking about inflation controlling inflation. i have to believe price controls may be on the table. i know it will be awful but i've got a sneaking suspicion they are think about it. stuart: he said america was

back but we didn't realize it was back to 1975 and if you go back then, disastrous policies of price controls but it wouldn't surprise me, this is how the progressives think and at the same time the other pizza, people are talking about billions and billions of dollars from the american rescue plan, $1.9 trillion, the infrastructure deal, still stuck in the system, still in the pipeline and this administration flooding the economy with spending and printing money. it is going to get worse before it gets better. stuart: could there be some relief if the republican sweep in november? take the house, take the senate, could some of these policies be reversed by a republican congress? >> one thing we need to do is pull back a lot of those billions were passed for covid relief and all kinds of other things and get them out of the

system, out of the money supply that is driving inflation through the roof and next thing is get us back to energy independence and we will be driving it. stuart: if you have a big enough majority in the house and i think you will and you creep back into control of the senate we've got a shot to get things under control. >> and fire pelosi. stuart: you got that in. always a pleasure, thanks for being with us, see you again soon. here we go. the host -- love you. the hosts of the view shutting down claims the red wave is coming. we seen it before. lauren: they shut down the guest host alyssa after their -- >> the red wave is coming, republicans are going to win the midterms short of something unforeseen that i cannot predict. >> you don't know that. >> let's wait until people voted. i understand what you are

saying but let's remind people it is up to them to make this decision. we don't know that red wave is coming, that is based on a big lie. >> let the people decide. we showed you how registered voters think of the economy and that is how people vote. red wave could becoming. stuart: based on a big lie. that is under nonsense, that is utter nonsense. nonsense but hold me back. i am staying on the big red wave. elon musk predicted a big red wave in 2022 this november and he tweeted i supported yank, that would be andrew yang, but desantis has a better chance of winning. what did governor desantis say in response?

lauren: he brushes off speculation or encouragement that he should run, he made a joke about musk's endorsement and it didn't go over well for some people. >> 2,022, with elon musk what i would say is i welcome support from african-americans. [applause] lauren: elon musk is from south africa. in 2022 you don't joke about skin color but ron desantis did. lauren: stuart: i will leave that one alone. thank you very much. let's get to something just as serious, those border agents falsely accused of whipping migrants were cleared of any connell charges but president biden promised to make them pay. roll tape.

>> president biden: hard to see people treated that way, it is outrageous. i promise you those people will pay. stuart: so now the administration is preparing to discipline them with administrative violations. rising rates. and economy headed toward recession. seems to me this is a sudden and perfect storm for housing and we will get into that one too. meet jessica moore. jessica was born to care. she always had your back... like the time she spotted the neighbor kid, an approaching car, a puddle, and knew there was going to be a situation. ♪ ♪ ms. hogan's class?

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stuart: the dow has gotten back to 30,000. a few moments ago it was a 29-8, and out of 30,302. anyway you slice it that is a selloff, the dow was down 600, same story on the nasdaq. it is selloff, a big one down 3% plus 387 points, red ink everywhere this morning, looking at some of the movers, start with walmart. it's not downed that much. >> we like the news they are boosting the average pharmacy technician pay to $20 an hour and also offering a new $8 membership for their sam's club warehouse. it wasn't moving much but

walmart was higher by a little bit, wise and big deal on a day like today to actually have your stock in the greenwood be a big deal even though it is turned negative. blue when you are right, let's get to verizon. lauren: they slash their home intranet rates to $25 a month but you have to have a verizon mobile plan to get that but that is a nice deal. blue when it is a good deal. procter & gamble? lauren: there are two dow stocks that are higher, procter & gamble is doing the best on the dow right now, up one. 5%, they %, they boost protection of their feminine products. stuart: new foxhole show voters feel they are losing ground financially. how did fed chair jay powell respond to that? >> reporter: he had a rosy

forecast, that they had to make a bigger move in interest rates because of inflation data and consumer sentiment which he called eye-popping, still he told me he is very optimistic, listen. >> some sales going down but overall spending is very strong, consumers are in good shape financially. there is no sign of a broader slow down i can see, people are talking about it a lot, consumer confidence is very low probably related to gas prices. >> his rosy opinion differs from the latest path -- fox polling were 18% say the economy is good or excellent. they must be nancy pelosi at neighbors, 82% on the other side of that rate at fair or poor, look at where the voters are feeling the pinch, these are necessary items like food, gas, utilities, president biden

continues to add relations and restrictions on the us energy industry so white house economic and pfizer brian dietz was pressed by martha mccallum on when the president will be able to get inflation to come back down. >> there's a lot of people out there in the productive business, we are in the building business, putting policies in place that will actually accelerate that outcome. >> reporter: they are putting patients because they are working on a transition, the federal reserve is forecasting obama era growth for the foreseeable future, the next 3 years under 2% growth with a slightly rising unemployment rate. blue when good luck with that, thanks very much indeed. i want to talk about the housing market of the real estate industry starting with some good news, americans have more equity in their homes than ever before, how much? lauren: i will tell you how much coming the first core

home-equity surge 20% to an all-time high, $27.8 trillion because home values have gone up. that is attractive to so many owners who want to tap into that to make an improvement on their house. when you take out home-equity line of credit those rates are going up and that makes it less attractive so what is going on in the housing market, if they have to take out a new mortgage to get a new home it will be double and they may be less inclined to spruce up the home they are living in. we when the big number is good news but the rising rate is not, we help in the real estate industry. have no fear, this is mitch rochelle, real estate expert, took me a while to find my script. obvious question. our prices beginning to soften? >> asking prices are beginning to soften. asking prices are the leading indicator of sales prices.

if you could ask you get a little less but all the headlines out there getting a lot of attention, sellers drop asking prices because we had all the bidding wars, 20 people showing up to buy a house. stuart: a bit more is over? >> no but we are seeing a shift from it being the ultimate sellers market, the greatest sellers market i've seen in 40 plus years to being one where the control is shifting to the bottom and when that happens you see less bidding wars, the problem is with low supply we have low supply. a lot of people want to see selective bidding wars. we when there's got to be a difference between million-dollar homes and homes well under $500,000. there's there is a difference between pricing and demand in those sectors. >> there are.

the median house, anything below the median, people more impacted by inflation than people buying million-dollar homes, filling up a gas tank is hard for everybody but in the million-dollar home variety people can weather the storm better so it is the all-important first-time homebuyers, that scares me, when the american dream is jeopardy. stuart: a lot of people used to borrow to buy out against their stockholders because they got rich in the stock market and they've lost a third of what they had in the stock market, perhaps not many of them will be able to use borrowing against their stock. >> that was the number one play for the second time homebuyers because you lose the tax benefit of a mortgage reduction, people borrowing against stock portfolios because you can deduct that interest. that play is at risk but there

are people who have equity in their stock portfolios and his interest rates and mortgages go up the interest rates on brokerage deals are not going up because the brokerage firms want those loans. stuart: i didn't report this morning, housing stocks in the latest month down 14% to just one. 5 million units of housing per year. >> that is dramatic and the leading indicator 7% or so, here's the bottom line. as material cost of got up and labor costs have gone up in the last two years homebuilders pass those along to buyers and right now the worry that the housing market softened a little bit and the rate of increase isn't what it had been, it had been 20%, the rate of increase, 5% or 6% and can't pass those costs along they will get squeezed on margins. you see housing starts slowing

down. stuart: would you agree with the following statement, the bull market in housing is over? >> yes. i would say the exuberance to use alan greenspan's term has quieted down which is a good thing because exuberance leads to bubbles and we don't want bubbles. stuart: thank you very much. gas prices are so high that one police department is cutting back on patrols. we will tell you where that is happening. airlines cutting back on thousands of flights this summer. a pilot shortage. that report is next. ♪♪ let's fly ♪♪ let's fly away ♪♪ if you can use some exotic booze ♪♪ ♪♪

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stuart: the great tom petty. such a lovely rhythm to it. great voice. i love it. that is jackson airport, atlanta, 82 degrees. °. if you like the music we play make sure to follow us on spotif a mac. listen to that guitar. does that take you away? lauren: is that the musical theme for tomorrow? stuart: i don't know. you could scan the qr code on your screen if you want to follow us on spotify. for folks trying to catch a flight this summer you might have a plan b. america faces its worst pilot shortage in years, grady trembled in chicago, how are airlines planning to manage this? just top flights? >> reporter: that is one of the

things they are doing but they need more people to learn to fly, they are offering higher pay, lower salaries than they ever have and hiring more pilots than they ever have and it is still not enough with so many pilots reacher'sing the mandatory retirement age of 65. here's how bad the shortage is expected to get, the bureau of labor statistics expects there to be 14,500 commercial pilot openings every year until 2030. the shortage of pilots is part of the reason we've seen mass cancellations across the country. we saw it last summer over the holidays and as recently as memorial day a few weeks ago. to fill openings of pilot jobs major airlines have been hiring from the regional carriers that mostly fly to and from smaller airports but that is creating problems for the smaller airports. 32 airports in the us of last

50% of their service since 2019. a lot of those regional airports have only handful of flights each day. some of them have lost all of their flights altogether. transportation secretary peter. edge --buttigieg is meeting to come up with solutions to this mass cancellation problem. some ideas that have been floated in the past a reducing flight hours for pilots or increasing the mandatory retirement age but those are not quick fixes and there have been a lot of problems for people traveling over the last year or so. stuart: trouble this summer too. we will see you again later. cnn anchor john berman challenged energy secretary jennifer granhome about oil. how does this work? lauren: she did a great job straight, the cnn anchor did great job, straight honest question on the

administration's commitment to the oil industry in the near future. >> refineries putting out more gasoline in 5 or 10 years. >> today we need the supply increase. audibly america will be most secure when we can rely on our own clean domestic reduction of energy. >> these companies are saying you are asking me to invest more now when in fact 5 or 10 years from now we don't think that demand will be here and the administration doesn't wanted to be there. stuart: exactly. lauren: hard to put energy companies out of business, now they want their help when their entire existence can be at risk when the grasp -- gas crisis is over. why would they invest. we when jennifer grannhome is the prime idea, she should resign, what a mess has been made of our energy situation and she's the energy secretary but i digress.

which police department, where is this police department that cut back patrols because of gas prices? lauren: it is in ohio and they are telling the cop stay parked, stop driving around looking for crimes, there you are. >> impact safety because we are not as visible as we normally want to be and we like to move through our village and let people see us. we will be overbudget if it continues. economically we are getting strapped here. lauren: usually when you see someone doing something bad they stop doing a runaway because they see the cops but if the cops are not patrolling the streets crime can happen and no one will see it. stuart: let's see how that turns out, to the big board, heading further south now, down close to 800 points on the down just real, that puts them back to 29,800, that is a lot of 2. 5% for the dow industrials, only one winner, procter & gamble out of all the dow 30 stocks, 10 year treasury yield

inching backup not bad, $3.36, that is your 10 year treasury yield, price of gold hasn't been doing much, it is up $12 today at $18.30 one cents, bitcoin struggling to hold above the 20,000 level. that is where it is. boiled moving up a bit, $115 a barrel, natural gas moving up a little bit, $7.90 one cents per million british thermal units. the average price per gallon of regular came down one sent to $5 even. in california, they still have to pay $6.42 for regular on average. coming up a new report says china could be spying on you through your smart coffee machine. shrinkflation, next. ♪♪

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stuart: how far down are we? way down. 840 points lower. 29,800 on the dow industrials and the nasdaq is down 471, 4 and 12:45% and the s&p is down 3. 5%, the selloff is beginning to gather some team as we approach the noon hour, we are not there yet but we are down, big tech down across the board. and significant percentage terms, apple is doubtful present, apple has dropped below $140, 129. amazon just testing the $100 level as we speak, meta is down 5.5%. bitcoin, let's take a look at that because earlier we were threatening to go right to 20,000, still living down to

20,700, crucial timing for crypto today. restaurants have been raising prices to fight inflation, to offset inflation. what changes are they making to menus? lauren: they are using cheaper ingredients, canola oil instead of sunflower oil and giving you less so the portions are smaller, there's upscale restaurants but instead of getting four ounces of lobster you get three ounces. they keep the price the same. maybe you don't notice the smaller portion, same for an average restaurant, order the chinese dumplings and get 5 instead of 6. stuart: let's bring in andy pudzner, he used to run several chains. let me deal with this smaller portion size. if i'm running a restaurant i would rather cut the portion size than raise the price, seems like a good business practice to cope with inflation. what say you?

>> absolutely right. you want people to keep coming in and we are at the point where if you raise the many more people are going to stay home. this is one way to cope with the incredible inflation hitting the restaurant industry, not just food or commodities but everything is going up and they've got to find ways to continue bringing people in and keeping the doors open. stuart: seems like a perfect storm for the restaurant industry at this moment, this dreadful inflation, labor shortages. how many restaurants will actually go out after we've gone to the pandemic and gone through inflation, how many are out of business total? >> probably 20% of the restaurant in this country on the brink, close to going under, that's restaurants that were strong enough to survive the pandemic. they may not be strong enough

to withstand the biden policies post pandemic, you've got a good percentage. stuart: that is a catastrophe for your industry. amazing. >> people that work there, a lot of low-wage workers, people trying to go to college, move on to a better life using their experience in restaurant to get experience they might not getting college because they can't afford it or it is not the path for them and they will suffer because of this. blue one some restaurants are abandoning tipping, paying their employees more. i don't get that. what is going on? >> i don't get it either. i think tipping is a great way for restaurants and consumers to reward people who are good performers. it is much more specific than having an employer reward a group of people reward a team of people, this is every

individual gets to realize whether they are performing and will improve their performance if they think they can get better tips. i think this is a bad idea. it is a good plan to keep costs down but people are still going to feel obliged to tip if they get somebody doing a good job and for the restaurant you offset your labor costs by allowing people to tip. doesn't sound like a good idea to me at all. blue one i wouldn't work in a restaurant if i couldn't keep the tips. i used to be a waiter in connecticut many years ago. catch me working, no thanks. thanks for coming on tuesday. you are in a perfect position to comment on an industry under real pressure. still had, michael lee, will kane, former dhs secretary chad wolf and dan heninger, in the middle of a financial storm and seems to be gathering steam.

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>> there is no one to blame for the situation other than democrats. americans are aware of the political situation. they want things to change they will be voting out much more. >> i'm stumped that jay powell said that it comes with the consumer. we are already in recession, not going to be garden-variety. >> we are looking at another 15%, 20%. >> difficult to forecast in a timeframe where there is so much uncertainty. >> 2.5 hours develop a 20 gallon tank. 48% increase. the session is a foregone conclusion.

stuart: 11:00 eastern. it it is thursday, june 16th and we are in the beloved syria selloff, dow industrials down 800 points as we speak, 29,800, s&p is down and the nasdaq way down, 4% loss, 452 points down. big tech, we are talking percentage declines, you know it is big, we've got them all down, alphabet down 2%, microsoft nearly 3, apple 3%, amazon 4%, meta platforms 5%, that is a selloff and bitcoin, last time we checked was just above $20,000 a coin, that's where it is now, 20,00979. one last market to show you, the 10 year treasury yield coming in this morning at 4.34%.

now this. this is another financial storm and it seems to be gathering steam. that is what makes people so anxious. where does it end? crypto investors are the most nervous of all because they are experiencing a genuine crash. that's a strong word and should be used carefully but when bitcoin loses a third of its value in a weekend it is a crash, nearly $2 trillion lost. some of the youngsters who piled into crypto with their stimulus money have lost their shirts. it is certainly a storm for stock investors, roughly $10 trillion wiped out, maybe more. your 401(k) if you want to look at it is down sharply and when you see your pension money disappearing you get nervous and you probably get angry. don't know how many people come up to me and say it wasn't like this under trump. if you're running a business you feel you've been hit by a

financial storm called inflation. after two generations of stable prices businesses are reeling, you don't know how many people come up to me and say what is biden doing about it. the inflation storm hits workers too, wage gains wiped out. we are seeing wealth destruction on a massive scale, serious repercussions for the economy, recession seems inevitable, serious repercussions for politics. democrat wipeout looks inevitable too. third hour of "varney and company" starts right now. stuart: michael lee we once called a super bull joins us now. the financial storm seems to be gathering steam, people are anxious, tell us where does it end? >> reporter: we are in a recession right now.

the consumer, go back 6 months ago the picture was very different, but now the savings rate is at the lowest level it has been post financial crisis, credit card debt is skyrocketing. we just printed the lowest consumer confidence number in history. you know where it was in february 2020? at one 01. completely cut in half. wents, mortgage rates are skyrocketing and the small business optimum index is where it was in the middle of the lockdowns during covid. gas prices skyrocketing, inflation everywhere, this is just crushed the consumer, we haven't quite seen a pickup in unemployment yet. that's the next thing you are going to see. we are in a bear market, we are in a recession. stuart: how far do we go. people on the show say we have another 10%, maybe 20% down from here. what says mike lee?

>> that is the million dollar question. the fact that all this is happening so fast and such a dramatic selloff in a short time goes to show how unexpected this was. the good news about this recession and the consumer pulling back is this recession will kill inflation. once we start seeing this inflation slowed down and the market predicts a fed pivot markets turn in advance of the economy. 2,009 in march the equity markets bottom, unemployment data bottom until april 2010 so we will turn ahead of a, 5% more to go, 25%, it is hard to say right now because we don't know how high interest rates are going to go and we do not know how much economic activity is going to collapse but nothing is headed in the right

direction. there are certain fixed incomes tied to higher interest rates where you can make some decent yield but otherwise this is a difficult situation. if your dollar cost average, don't look, if you're 20 or 30 years away from retirement keep plowing and because what investments you make today will be worth a lot more decade from now. 20% means money going and then will be worth even more ten years from now. stuart: i don't look at it when my 401(k) goes through the floor. now look at this. a new fox poll shows more voters trust republicans more than democrats to handle key issues like inflation or border security and crime. will cane is with me. this is bad news for democrats, to get political for a moment, bad news for democrats.

>> bad news for americans. i don't look at where any savings i have today sit. we are looking at and you put it so well at the top of the show, we are looking at wealth destruction on historic proportions, talking interest rates going up, inflation eating anyone's bottom dollar, stock market taking away our savings, what is the biden administered in, what are democrats at large doing about it, you and i had this conversation last weekend on fox and friends weekend, what have they done to create it and you laid it out well between massive stimulus, massive amounts of money reprint and most important we a, quote, reimagining of not just our economy but our society has led to the place we are today. this reimagining which was sold was as build back better, ask yourself what they built back better, what have they been focused on? some of the most fundamental foundational aspects of our

country. instead of saying how can i help americans on on a day-to-day basis with our quality of life they've got about trying to restructure the united states of america. big surprise. if you shake the foundation you end up with what we are looking at right now, absolute destruction of our quality of life. we what i think you are right, tell me what i am thinking of as a red wave in texas. you saw the election of the young lady on the border, a republican born in mexico wins a primary, a congressional runoff seat, she won. what to do you make of that? >> you can try to sell people, they should see the world exclusively or primarily through the prism of their skin color, you can try to solve it to people but ultimately they return to their everyday life and the rule of law, lara biden's, order instead of

chaos, these are important things to everyone whether you are latino, black or white. what you are seeing on the southern border of texas, we are living amidst chaos because of distraction of the rule of law. doesn't matter whether they are latino. they are american citizens who understand you can't have a chaotic wide-open border that literally affects again their streets and their quality of life. in a way, this is a great rebuttal and a great sense of hope for the american people, we see ourselves as individuals making our lives better for our children, we don't want to see ourselves through the prism of our skin. stuart: well said. if you've got time i'm looking at the democrat party run essentially by octogenarians, whether it is speaker pelosi, steny hoyer, the president himself, but you are looking at people who are aging. do you see a new generation of democrats emerging? do they have bench strength? >> not in any nationally

electable sense of strength. you could point to aoc, the squad, they are generally younger. i don't think they hold any elect ability outside their very far left district and maybe not in the future in their far left districts, outside of the squad you are going with pete buttigieg who has not done much to distant which himself and the job he holds now. that is the proposition, move on from joe, where do you move on to? there's no answer to that question. of the when there is not. always a pleasure having you on the show. you are an original thinker. we need more like you. >> i love being on varney. stuart: glutton for punishment. exxon mobil responded to the letter they received from president biden. what did exxon say? lauren: they sound very ticked off to put it bluntly. they say short-term you can enact measures often used in

emergencies to help lower prices like waving the jones act requiring the ships that carry gasoline bus built, that makes it more extensive for the companies. long-term this is what exxon says, give us clear and consistent policy and support infrastructure like pipelines. as for the comment from the white house from biden, you make more money than god, this is what exxon says. we have invested double what we are and over the past 5 years, one hundred $18 billion, new supply compared to net income of $55 million. stuart: that is a pretty good response. rather restrained. lauren: it was to the point. let's get to the cryptos, show me bitcoin, it lost 30% of its value in the past week. i call that a crash. i'm saying youngsters are losing their shirts and we have more crypto coverage on the way, china may be spying on you through your coffee maker, sounds absurd.

we will tell you what to look for before you brew your next couple. border patrol encountered 240,000 migrants last month, a new high. the migrant surge shows no signs of slowing down, chad wolf is on that next. ♪♪ ty solutions all in one place. so you're covered. on-premise and in the cloud. you can run things the way you want —your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with comcast business. powering possibilities.™

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stuart: take a look at this. a photo tweeted by the border patrol chief showing 80

migrants in a sweltering hot tractor-trailer, the doors were padlocked, no way to escape. following that we learned there were 300,000 migrant encounters at the border last month that is a new high. chad wolf joins me. nothing changes. we have an extra million people in the country, don't know who they are or where they are, nothing changes. that not acceptable. >> it is absolutely unacceptable was you have a strategy that continues to see increase month over month. this month the month of may was hired on the month of april which was higher for the month of march, those were record-setting months. if you go back historically and look at which months you saw 200,000 illegal apprehensions, both for the biden admin straight in one month, the biden ministration 5 months, it is clear the root causes of this illegal migration have to

do with the policies of this administration alone and nothing is going to change. that is why you see these numbers month after month after month because it is predictable. predictable what is going to happen on that border if you try to cross illegally more than likely you will be released into the united states. stuart: more than the border. this is changing our whole society. if you have 300,000 illegal migrants coming into this country every single month, month after month year after year you have changed our society without our permission, you've done this to us. you have done this. >> that is right but also putting an immense amount of stress on a lot of different public systems, whether it is the education system where you see these minors across the country going to public schools, what does that do to the teacher resources there or

your healthcare system. majority of these folks don't have insurance. they show up at the local emergency room when they get a cold or when they are sick, what does it do to the public infrastructure, the list goes on and on, these are having real-world effects across the country, doesn't just happen on the it is affecting every community and we haven't talked about the illegal narcotics, but fentanyl crisis facing the country today because we have an open border and these are the same cartel smuggling people across the border smuggling these drugs at record numbers. stuart: i would like to know what you think the department of homeland secret he will be punishing those border agents falsely accused of whipping haitian migrants, the agents are going to get hit, expected to get hit with administrative violations. where's the justice here? >> this is one of the most appalling things i've seen since i left the department,

these agents on horseback did absolutely nothing wrong, they were sent by their superiors to enforce the law and make sure individuals could not cross the border illegally and as soon as they did their job, the president, vice president, the secretary started defaming them, talk negatively about them. you have an administration who won't just say i am sorry, we rushed to judgment, i apologize to you. they are trying to save face somehow and now you're talking about administered of violations, not sure what that is, the american people see through this. the american people see these agents did their job and they were criticized wrongly for doing their job at the end of the day, the administer agent doesn't want to those agents doing their job so when you see those visuals they will come down hard on them. stuart: why is this going on? it seems deliberate. it seems like they absolutely

will not close the border and i don't understand why because it is political suicide. give me 30 seconds on that. stuart: >> it is 100% deliberate. they talk about they are executing a plan for 15 months we see what their plan is and astronomically, illegal apprehension numbers, they won't make the tough decisions, put policies in place that work. that actually deter this type of behavior, holds individuals accountable for doing, breaking the law. they have numbers like i do on the number of people who do not qualify for asylum that will never qualify for asylum and yet they are putting their blinders on and allowing these individuals into the country knowing the vast geordie won't show up to their court cases. it is deliberate at the end of the day, wrong approach for our country. stuart: thanks for coming on the show, good stuff, we appreciate it. you can't get away from the markets are too long on a day like this like the selloff

continues, dow is below 30,000, nasdaq is below 11,000. jim lowell joins us. market watcher of the day. i am sitting on my hands. any fresh money stays in cash. i'm not going into this market. is that the right thing to do? >> it's not a bad thing to do, for defense and turbulence downturns and also offense, enables you to keep that dry for when things turn out to be a little more sunny than they are. a lot of time we spoke the last 20% in cash, keep it there, that is still good advice. this is a market that will remain on tender hooks of what the fed says and does and increasingly the market is reflecting the nervous investors, the collective manifestation with regard to whether the fed can in fact tame inflation number one and

if they do orchestrate the ability to tame inflation will that be the cure the triggers a durable recession? there are a lot of concerns. stuart: several of the market watchers on the program today, i have asked them are we at the bottom yet? most of them have said we are not at the bottom yet, going down another 5, 10, 20%. what says jim lowell? >> i don't try to time the bottom but i don't think we are at the bottom. i wouldn't say it is time to back the truck up and start loading it. it is time to be selective, review your asset our location, make sure your bond and cash positions are there and giving you a comfortable night's sleep in what otherwise would be a nightmarish scenario inflation running rampant, the fed knowing the horse is not just out of the barn but miles down

the road wanting to catch up with it trying to bring it back into the barn. if it does even if it does we know we are likely in a recession already and could be worsened by what the fed's current revenue is. stuart: that was a good analogy, thanks for jumping into the show as you did, we appreciate it, see you again soon. let's get to covid, another subject. shanghai has announced new covid protocols for all of its 16 districts. what does that mean? lauren: mass testing will happen every weekend from now through july. if you test positive regardless of symptoms you have to quarantine. the message they are sending to the world that they are going to root out any potential infection and deal with it that way. new covid cases yesterday in shanghai, city of 10 million people, 13. and they went looking for them. we when they want to eradicate is 100%, good luck with that. lauren: you can't. when people don't have previous

infection, they have flexibility to fend off covid as a result. stuart: sorry, i've got to give time to the chinese spying on us through our coffee makers. okay. you want to give us that story? lauren: if you have a smart coffee maker, the data it collects about you, your behavior, your payment information in some cases could go to beijing. this comes from an american researcher who did a report on this and he says since most machines are made in china there is a good chance they have been collecting this data for quite some time. stuart: i have a $12 mr. coffee. lauren: you might be okay. it is not an internet of things coffee maker. we one controversy around the saudi backed golf league growing as the u.s. open gets underway in massachusetts today.

dan heninger says the pga has one thing the saudis will never have. he will tell us what that is next. ♪♪ ♪♪ nobody nobody ♪♪ nobody can drag me down ♪♪ nobody nobody ♪♪ nobody can drag me down ♪♪ this is koli. my foster fail (laughs).

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♪♪ stuart: this music we have. okay. i better move on. you are looking at blackstone in virginia. it is about -- southwest, 100 miles southwest from where lego is building their first us factory. governor glenn youngkin says it we completely carbon neutral bringing 1700 jobs to virginia when it opens in 2025. applications are already open online. back to the markets, can't stay away for very long because you have a selloff going on, down 670 for the dow, below 30,000, the nasdaq is below 11,000, show me the cryptos.

that's acute for susan to come in because we have a crypto downside move as well. give me the biggest losers. susan: company wise front it comes to profits is micro strategy which is a bitcoin holding company. michael sailor's software company went all in during 2020, they on 129,000 bitcoin's, buying them at an average price of $49,000. that is $1 billion in losses and there are concerns about an upcoming margin loan to silvergate. tesla will lose 9 figures on their 43,000 bitcoin's, jack dorsey's block formerly known as square has 8,000 bitcoin's down $40 million on holdings that you throw in the bitcoin minors, marathon riot, crypto, and elon musk, the most influential crypto influencer out there and there is a's a risk, you've seen this in

numerous reports that is lower, not saying they will but could possibly report its first loss in 3 years because of those bitcoin losses. not a guarantee but there are risks out there. be when companies, celebrity holders, cryptos. susan: jay powell has put all his money into crypto. in a podcast, half a million dollars in luna which is a stable coin that blowup, nfl stars, aaron rodgers, lebron and trevor lawrence. stuart: i thought jake powell was one of the smartest younger business guys on the show. susan: he is innovative, entrepreneurial, maybe he diversify too much in his investment but he made $45 million in his boxing matches. he will be fine. i want to show you the

contagion risks company comedies that have gone under and people are concerned there might be more to come, the $40 billion wipeout, celsius, crypto bank, $12 billion in loans there and three arrows, the largest crypto hedge fund in the world, fast liquidating $10 billion at their peak, how much they manage and there is this contagion with that slide in prices and does it remind you, the contagion risk reminds people of 2008, how quickly the value evaporates. stuart: it rippled through loss of value, down it goes, a nonstop process. susan: other people get affected. we one glad you are on top of it. look at this headline in the wall street journal. it reads live to the u.s. open. a new saudi golf league has the sport talking about scandal,

dishonor, and murder. dan heninger joins me now. is the saudi league tarnishing golf do you think? >> that is the discussion. we are in the middle of the u.s. open in brookline, massachusetts. a major event for golf and all anybody is talking about is whether the new saudi league underwritten by the saudi investment fund is damaging the name of golf. one might ask why would anyone want to join saudi arabian golf league. viewers of this program know the answer to that. it is the $2 million they are paying phil mickelson to join their league and quit the pga. like their first tournament last week in england, they paid the winner $4.75 million for a 54 hole tournament so they have the money.

stuart: tom friedman in the new york times the other day was talking about a live tournament and said the saudi's should give it up. they spent billions of dollars and all they've got is bad publicity. do you think they will give it up or stick around? >> i think they will stick around. it is part of usama bin laden's every to modernize the kingdom. the accusations have been made of golfers joining the league are somehow associating themselves with the country and a leader allegedly complicit in the murder of jamal khashoggi, the 9/11 families accused these players of being complicit in sports watching like china holding the olympics for reputational reasons. the accusations that these players should not associate themselves with the regime like saudi arabia. it is a couple gated world out there. the president of the united

states going to saudi arabia next month, begging the prince to pump more oil, $5 a gallon gasoline, it is complicated. in the end golf will prevail. this is a sport that has wonderful traditions like fairness, not cheating, tradition of fair play, the established league, that is what they offer. stuart: all right, very interesting to see you writing about golf. thank you, we will see you again soon. if diesel prices continue to rise, so will the cost of produce. ohio warning they may have to pass on their expenses to the customer. that farmers next. cruise line canceling trips because they don't have enough workers to run their ships. ashley webster has that tough assignment. look at him go.

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stuart: as we look at san francisco let me tell you this about the san francisco airport, passengers should expect to wait for two hours on security lines. there is long lines. once again the faa is urging airline chiefs to address the risk of the 5g wireless rollout. explain this simply to me. stuart: the susan: airlines were supposed to reset their alternatives which helped the pilot see clearly during landing so the wireless carriers 5g signal wouldn't interfere, they were supposed to do this in january.

it was pushed back to july 5th, huge travel weekend. at&t and verizon want to boost their 5g july 5th when many airports have their cell towers and they need a letter from the faa says to the airlines make sure you have tested your systems and equipped and can handle this. stuart: another challenge to a busy travel weekend. >> of all dates to pick, you could have gone to mid july, an extra week. stuart: show me the cruise lines, can't hire enough people have the summer travel season, shortage of staff. ashley webster is important canaveral, florida. what will it be? fewer cruises or fewer passengers? ashley: you never want to turn away a paying customer so limiting the capacity on these ships is the way to go up for now? a number of cruise lines have

done that. they don't want a full complement of passengers served by not enough crewmembers, bad experience. the cruise line industry facing the same problem, they can't get enough workers to come on board. the cruise line industry has workers from all over the world and they went back to their home countries. now there's a backup to renew their employment visas oh what a long torturous problem, getting to the ships they need to be. supply chain issues have been an issue. take a listen to this. >> we are hearing about some delays, new cruise ships coming out because the shipyards are having the same supply chain issues and staffing issues many industries are having. we seen a number of cruise ships being delayed for their debut because of that.

ashley: carnival closed two restaurants on every ship to help combat staffing issues, norwegian cruise lines was forced to limit occupancy on its pride of america ship, we reached out to norwegian, they said currently due to the tight labor market, we've not been able to fully staff pride of america, to have the highest possible guest experience we are operating at lower just capacity. this comes at a time the cruise line industry is desperately trying to get back up to speed, estimate of losses for the industry as a whole is $63 billion. they hoped by the end of this year to turn a profit again, but here we are. the only good news for the cruise lines is the cdc but it's travel advisory, and say don't go on cruise ships, they've dropped that. they have enough people to serve passengers when they get on board.

stuart: the average price of a gallon of diesel had a record high, $5.78. you won't believe how much one farmer in ohio has to pay every day to fill up his tractor. that farmer will join me after this commercial break.

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stuart: interesting thing about the market is we haven't seen a bounce. we dropped from "the opening bell" and there is no significant bounce back up again, we are down 700 for the dow, 450 for the nasdaq, the selloff really does continue. unilever finding ways to deal with commodity shortages. what are they doing? lauren: switching some ingredients, sunflower oil, half of it comes from ukraine, from 60 a jug to $140, more than double, unilever trying to reduce silicon -- silicone in some of their deodorants, switches like that you have to

reformulate and test but it is ways to get creative to save money. stuart: because everybody is scrambling. the average price per gallon of diesel, new high today, $5.78 a gallon. josh yoda joins me, he owns yoda farms in ohio. out of interest, how much does it cost to fill up your tractor for one day of work? >> is a challenge, thank you for having me. sometimes you have too much time to tabulate how much it will cost you and to keep it going, i figure costs $1500 a day and you have to pay that from the standpoint of if you have a tractor sit the costs of having to sit are greater than that. stuart: must be a giant tractor if it takes $1500 to fill it with diesel.

>> it is not as big a tractor as you think. quite a few larger tractors in the area. your standard 300 hp tractor, it is 2 times what it cost us last year. stuart: you've got to pass that increase, you've got to pass that to the consumer. you've got no choice, have you? >> as farmers we are price takers, we don't have the opportunity to pass that along. it means we will burn more working capital through this growing season. stuart: can you tell me if you are making a profit now? >> as of right now we have been lucky that commodity prices have been particularly strong

in comparison to equities but the challenge is we don't know how many bushels we will produce until the end of the year. you think of amortizing that cost over a lot of bushels and it is manageable but if we have a short crop we put a lot of capital at risk. stuart: are you beginning to wonder if you will stay in business if diesel stays at $5, $6 a gallon? >> i worry about the speed we are burning working capital. farmers as a whole have managed their working capital position pretty well but a lot of farmers remember the inflation of the late 70s and early 80s and the adjustment when the fed did what they did back then and as we burn through working capital you wonder what the next couple years will look like and how do we keep the farm going for the next generation.

blue one we had a couple stories on our show about labor shortages hurting the airlines, labor shortages hurting the cruise lines. how about you? have you got a labor shortage in ohio on the farms? >> absolutely, you name it, it is almost impossible to find labor. our local co-ops are struggling to find people to run fertilizer applicators, trucking is extremely tight. it is a challenge and what you do is try to figure out how to do more with less people. that's the only thing we can do. stuart: we feel your pain and we are glad you came on the show to let everybody know what you farmers are going through. thanks for being here. love to bring you back at some point in the future when you're harvesting and see how you're doing and hope you stay in business and hope you come back. thanks. can't get away from the market

for very long, the selloff continues, dow is down 750 points, 2.5%. there is only two winners in the dow 30, procter & gamble and is that walmart? let's go through the 10 year treasury yield, that is 3.32%. yesterday it closed in on 3. 5%, now %, now it is $3.32. the price of gold, $18 and 37%, 27 as of today, bitcoin under pressure again. $20,970 a coin a coin. oil up a bit, one dollar and 15 a barrel, natural gas up $7.65 but gasoline down one sent, first time i said that in a long time, $5 even is the national average for a gallon of regular but you are looking at $6.42 a gallon and that is

regular, time for the thursday trivia question, how many summer olympic medal events are there? 182? 240? 291? 339? they keep adding events to the olympics. i don't know. i'm not going to google it. right after this. if you invest in the s&p 500 your portfolio may be too concentrated in big companies. this can leave it imbalanced and exposed when performance varies. invesco's s&p 500 equal weight etf, rsp, is spread equally across the s&p 500, which reduces potential concentration risk and helps keep your portfolio in balance. stay in balance with invesco's rsp.

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stuart: i'm a big fan of the olympics. i really like track-and-field. i really like it. i've been following all my life. i have no idea how many summer olympic medal events there are. this is a total guess on my part. i'm saying 240. what say you. lauren: fair. i'm going high with number 4, 339. you always hear about events you don't always see. that is in the olympics? requiring to think of one right now but that -- stuart: answer is 339. five new events were added for the tokyo olympics last summer. you're up to 339. i didn't have any idea it was that high. got to check the markets. we're heading towards 12 noon. the dow is down. off nearly 700 points. please, remember, send in your

"friday feedback" questions. send in comments, critiques, send it all. send in fan friday video. record yourself. tell us your name, where you're from, you have got to say you're watching varney and company. you do that, you could see yourself on television, you lucky people. we get lots of people trying out to do it. we leave it, we absolutely love it. time's up, stu, neil it is yours. neil: stuart, thank you very, very much. we're dealing with the same selloff you were. it is pretty bad. the same thing the market was heralding yesterday when the federal reserve hiked interest rates by 3/4 of the same thing it is second-guessing. wait a minute this will lead to a slow down. that knit good news either. be that as it may, whether yesterday reflects reality, what is going on today, the dow at lowest level in a year. not all that far away from bear market territory. s&p 500,