whether it's in the sky. we can make it all happen. now i know it's a little intimidating and scary but the main point here is we never want to stop dreaming about making the impossible possible because that is the essence of mankind particularly in this country. all right, liz, speaking of limits i don't know if there's any limits to how much further we can go but we're going to find out. liz: sky cruise gives a whole new meaning to the mile high club? charles: [laughter] liz: [laughter] charles: [laughter] liz: all right, hey, charles, what the happened to the morning rally? we were up 400 points, right? charles: it was like that, i don't what the hell happened to it. liz: what a turnaround right? stocks are now down, with the dow swinging 800-plus points from its peak, down to where we are now, down 429 points. as we kickoff the final hour of trade, it is very much because of a single economic temperature

gauge that came in cool. we are telling you what turned the markets green light to red and why it maybe time to buy cautious consumer stocks. will foot traffic at the nations malls start to slip as the fed pushes ahead with jacking up rates. we've got the ceo of retail real estate firm sight center here with his analysis and this is a fox business exclusive giving you a bigger window into the consumer. while economic conditions here at home remain murky, world leaders figure out what to do regarding russia's four month old war in ukraine. former undersecretary of state keith kroch is here as the g-7 leaders slap new sanctions on russian military leaders and haul in a massive yacht, owned by an oligarch but are sanctions working? we will ask keith and ftx ceo sam bankman-fried maybe aiming his arrows at robinhood. charlie breaks it on the crypto billionaires back story right now. first let's start with a fox

market alert. what we need to do is show you the dow intraday because it really best illustrates the key to this session. we do have the dow right now and quite frankly, the s&p and nasdaq having jumped higher right out of the gate. you see that on the left side of the intraday chart but at 10 a.m. when the read for june consumer confidence hit the tape all majors turned south, so it was going down wall street the first half hour of trade but when that gauge of consumer conviction came in worse than expected and its lowest level since february of 2021 the vix started to jump about 3% and then you can see we are just off session highs of nearly 5%. the expectations component of consumer confidence, let me break it down. this expectation component measures how consumers feel about short-term outlook and business conditions. it was the worst since march of 2013. a broad spectrum of tech names with exposure to consumers and businesses taking the biggest hit. we figured we would just pull up

some of the names so tesla down 4.5% by the way tesla was hit after deutsche slashed delivery estimates but meta is already down 50% year-to-date meta down 3.8% paypal is moving 5%, nvidia 5% lower but energy is taking and holding the lead at this hour. look at some of the stocks involved here. marathon, exxon-mobile, all moving higher. then you put it all in a basket with the xle and that is gaining about #%, and as crude oil gains for the second day in a row, the circle is completed, because consumer confidence, arguably fell in june, because inflation is continuing to rage. so, with a cautious consumer front and center, let's right to our floor show traders, we're joined by john gagliardi and scott fullman. scott give me your picture 30,000 feet first and then how you view stocks that would possibly work well even as the consumer remains cautious >> so, liz, it's really

interesting. we've been talking for a long time as you know about the connection between oil, the consumer, the markets, the economy, and the fact is that today's consumer confidence index really bears that out. consumers really really getting cautious here. they are backing off. they are changing their spending habits even more dramatically. why? because oil is so high and even with taxes being reduced on oil, and gas products, the fact is that people are still paying a lot more now than they were a year and a half ago, so we're very, we've been cautious on the market. we have stayed cautious and we're being defensive, and being in those defensive sectors such as consumer staples as well as healthcare. one of the stocks that's really been jumping off the screen for us is shep's warehouse and has really exploded over the past several days and also

we're looking at a couple of pharmaceutical companies, merck and bristol-myers squibb both of them showing some nice relative performance here, and you gotta follow where the performance is if you're going to outperform the market. liz: and as you look, john, at what scott not only has articulated but what the market is telling us specifically nike, nike's earnings did not impress the stock is the laggard on both the dow and the s&p 500 at the moment down about 6.7%, and you see exactly what happened here. they did beat on the top line, on the bottom line rather, but the revenue came in as well pretty decent. just a matter of why their outlook does not look healthy and that has a lot to do with what happened in the rear view mirror. china, china's reopening. that's partly why the markets opened higher this morning because china has relaxed a lot of their quarantine rules for travelers who are coming

into the country. so isn't today precisely the time to buy a name like nike >> during times of fed tightening there are certain sectors that just won't do well, and retail is one of those sectors. consumer discretion, that's where nike falls. that's one of those sectors, but there are green shoots out there and there are some really bright sectors. if you look across the fed tightening cycle and what's supposed to do well according to the textbooks it's supposed to be things like healthcare and inside of healthcare, we're see ing things starting to settle down and biotech is starting to find a bit of a base and its been a brutal, just brutal two years of selling, and that's where we're starting to see some of those green shoots and as scott said if you want to be in stuff outperforming the market you have to find stuff outperforming the market. liz: yeah, true, scott fullman, we are watching ahead for two numbers. consumer price index which gives us an indication of inflation at the consumer level, and producer

price index. same thing only for manufactures that comes before the june 27 fed meeting. what do you suspect happens here ahead of that? >> so the thing is again, we're probably going to see more signs of inflation. inflation really is has not backed off. gas is down what maybe $0.15, $ 0.20 a gallon, not enough to change consumers outlook on things and they are planning for going forward. we got the back-to-school shopping season coming up and then the holiday shopping season , and we think consumers are going to be looking for deep discounts this year, because basically, they're changing their spending habits, and they don't have that disposable income that they had before. liz: yeah, and walmart is a laggard here, kohl's, target, macy's, best buy, all of these retailers are in the red, anywhere from 1 to 4.7%, best buy is obviously involved very

much in tech and we were talking about tech. john, do you like tech at any point and what is the green light that you are waiting to see in order to say that's a sector i would pile into? >> yeah, that's the problem i see is i talk to a lot of investors every single day and the thing that i'm hearing over and over again, they're looking at what has done well for the last five years and they think it just has to continue to do well forever and ever and ever and the life blood of any bull market is sector rotation, and unfortunately, the things that have done well for five years, don't necessarily do well in a recession, or during quantitative tightening so it's a double whammy for things like retail, tech semis, software. they're all leading the charge down, and that's a moment to re balance. not a moment to panic, not a moment to freak out. the s&p is not going away. we're going to see the s&p still around. the names will change and your job is to either index and have

somebody manage it for you, or you have to take the reigns and do some of the management yourself, and management is a hard job. liz: john, scott, thank you i'm just checking the dow a minute ago. we then punched into an even deeper negative number here, down 483. low when we starred the show was a loss of 377 so incremental losses here in creasing. fox business alert, yes, energy names we already said the leadership position, but we have to breakout one name in particular, and that is occidental petroleum. check it bubbling up by nearly 4 % right now due to yes the buffett effect. once again warren buffett berkshire hathaway has scooped up another tranche of the oil company less than a week after berkshire bought 9.6 million shares of oxy, the company revealed last night it has added another 794,000 shares, making berkshire the majority shareholder with nearly 16.4% stake in the oil company and that stake now valued at

$9.3 billion. berkshire hathaway shares pulling back just slightly both shares by just over 1%. wheels up in hertz on the move here, and not in the right direction i would imagine we've got hertz down 2.25% wheels up down 4.6% despite the fact that the private aviation and car rental company announced a new partnership. the deal will give wheels up members access to hertz's electric vehicle rentals at 111 private airports across the country. the goal is to expand the partnership to 500 private airports over the next few months. walgreens confirming it has shelved the sale of its boots drug store chain in the uk. shares of walgreens down 2.8% of course that is a dow component afterword spread that walgreens boots alliance put the auction for boots on ice due to current market volatility and as they say, current market conditions. not great. reports started coming in as early as december, that

walgreens was looking to sell the chain this year, and it most recently was in talks with the consortium that involved reliance industries and apollo and chip giant advanced micro devices taking a giant loss at this hour down six and one-third percent it's very close to the bottom of the s&p, after confirm ing an investigation is underway in the wake of a cyber breach of its data. a cyber crime group claims that it stole 450 gigabytes of data from the chipmaker and some of the data has already been posted to the dark web. we do have it just off session lows right now at $80.72 a share economic sanctions taking a bite out of the lifestyles of the rich and russian. look at that yacht, but are things like taking control of that yacht by the americans, are they doing anything, these sanctions, to bring the ukraine war to an end? former undersecretary of state

here to answer that question, and more. that's next. closing bell, we are 49 minutes away. the dow is still lagging down 460 points the s&p down about 2% at the moment. stocks down sharply, who knows what's going to p ha in the next 49 minutes of the "clayman countdown." that's why you gotta stay with us.

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liz: yeah, we've got quite a sell-off here, dow is still down about 470 followed by red on the major indices, a 384-foot super yacht worth $325 million is finally arrived in san diego bay after it was seized by u.s. justice department official s last month. the monstrous boat now flies the american flag. somebody has a good sense of humor. it had been opened by sanctioned russian oligarch sulaman karamov until the department of justice took control in an effort to cutoff all assets and allies to the kremlin's elite. this comes as the treasury department announces the u.s. is imposing new sanctions on more than 70 entities and 29 individuals affiliated with putin's war machine including

russian gold imports and military intelligence units. president biden meeting with nato leaders in madrid, spain, over the next two days to discuss the next moves in halt ing russia's war on ukraine. the president is expected to announce u.s. forces will remain in poland and possibly more troops to be deployed to the region specifically lithuania, latvia and estonia. let's bring in keith kroch, whom china sanctioned after he became the highest ranking u.s. official in 41 years to visit taiwan. a lot to talk about here, keith, but yes. the u.s. announced more sanctions today, but yesterday, russia launched missiles directly in a mall packed with a thousand ukrainians, 20 people killed, we don't even know if there are more dead on the inside they are trying to rescue people. in your view, we're now entering the fifth month of this war. are sanctions working and if not , what would work? >> well, they are definitely hurting the russian economy, liz i don't think they are going to

stop putin's atrocities and his war crimes he's committing. if he stops he probably realizes that he's finished, but with these new sanctions, that came out today on the industrial war machine, it's going to take a little bit of time, but it will have a devastating effect in the long run, so, you know, liz, maybe we can get some of those yachts that they are sanctioning, you know? [laughter] liz: pay off our debt. sell some of those and pay off the nation's debt. >> why not? but liz, these sanctions are going to really get them in the long run because they are going to run out of all kinds of spare parts. all those kind of things, but i don't think it's going to stop putin. liz: one of the things that the g-7 has discussed is prohibiting russian gold imports russia has raised billions since

the start of the war as sort of a work-around and they've done so by exporting their gold. how much might that hurt the russians? >> it's going to hurt them a bit because they stockpiled this gold over the last few years. putin saw the sanctions coming, so he stockpiled that. so that's going to hurt him. it's not going to be devastating you know where he's making the money still is on the oil. there's been certain caps placed on that, but the best thing that we could do is reduce the price of oil. that's the key. that's where he's making the money, liz. liz: yeah, absolutely, and oil is climbing once again today. it did have a brief reprieve last week and let's keep in mind that the price that you see right now, and if we can punch up that chart here we do have crude at 111, just about 11 days ago had been $128 a barrel let's hope it doesn't touch that part again, at least certainly not for the u.s. consumer.

china has definitely been a party to helping russia stay afloat during this time, by continuing their trade relationship with russia. how does the united states and quite frankly, g-7 and everybody else, how do they send a message to china or at least siphon off the oxygen flow going between russia and china? >> yeah, i mean, i think it's proven that putin and xi are the twins, you know, these guys signed their love agreement back there february 5. you know what's going on at the nato summit is really strategic, because for the first time, china recognizes the adversary and it's in their working document, and nato is doing all the right things. number one, they are kind of expanding geographically by bringing in korea, japan,

australia, new zealand, you know , hopefully sweden, and finland join. that's really critical, so they are looking at that overall view the other thing that's great is that they understand that china is different than russia. they play a game of four dimensional diplomatic, economic , cultural chess, but technology is the crossroads. that's the main battleground, so the deputy secretary over there at nato is their children of their innovation board. he's doing some great things. he also just joined the advisory council of the krach institute for tech diplomacy so he's got plans in terms of all this kind of funding that we could partner with these guys on. also, incubator labs and accelerators, so they are really taking a strong focus on that technology, liz. liz: you were always upfront when you worked in the trump

adminitration in trying to crack out the links that involved china in the supply chain so that american companies did not have to be dependent or go through china. especially when it came to the technology picture, and semiconductors. we do have taiwan semi trying to build a plant in arizona. they would like to see some help from the u.s. government and there's a new company, well they are the third-largest semiconductor company, global wafer out of taiwan. they say they are ready to build a $5 billion fabrication plant in texas if the chips act can get its funding secured, so that they can at least get a little bit of an incentive and some help. what is holding up the , you know, the funding of the chips act which is so important and we all thought that both sides, the republicans and the democrat s, understood that semiconductors are a national security issue. >> by the way, they sure are. it's the most important industry

in the world. it's a foundation for all technology, and liz, you remember when we did the onshor ing for tsmc, largest in history, $9 billion fab and then we used that as a catalyst to help senator warren, write the chip act and we really got to do this because this is a strategic national imperative. it's a bipartisan issue. as a result, we got samsung coming over, we got intel expanding now in the united states in a big way. hundreds of billions of dollars. liz: but even pat gelsinger has said we need to see the government helping us, these things are prohibitively expensive and we're waiting on 52 billion in funding before the august recess. that's what global wafer wants to see , before the august recess. can you get it done? can you see that happening? >> well, i sure hope, liz.

it requires an act of congress, of course, and this is so important for the private sector i'll tell you one of the things, liz, that i'm seeing out there from some of the most respected board members in corporate america. actually from europe too, is that these boards have seen what's gone on in russia's atrocities in ukraine, and increased probability in terms of an invasion in taiwan by china, and they are demanding, from their ceo's a china contingency plan, because they know their fiduciary duty to their shareholders is to mitigate risk and this is a massive risk, and at the institute for tech diplomacy we're getting request for what's a checklist for a ceo china contingency plan. i think the private sector is woken up on this , liz. liz: yup they sure have and you're the man in fact you've got a nomination for the nobel

peace prize. god bless you, good to see you, thank you, keith. >> great to see you, liz, thank you so much. liz: keith krach. former undersecretary of state. american dream or financial nightmare. first time home buyers facing very high prices, high mortgage rates, low inventory. we're going to take you for a look at the major hurdles potential him buyers are having to get to land the american dream. when they got a crack in their windshield. [smash] >> dad: it's okay. pull over. >> tech: he wouldn't take his car just anywhere... ♪ pop rock music ♪ >> tech: ...so he brought it to safelite. we replaced the windshield and recalibrated their car's advanced safety system, so features like automatic emergency braking will work properly. >> tech: alright, all finished. >> dad: wow, that's great. thanks. >> tech: stay safe with safelite. schedule now. >> singers: ♪ safelite repair, safelite replace. ♪

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liz: home sellers are thrilled but buyers are weeping again. pricessedewords in inil. thths&orpe logic cschiller ity indyndexeex pri ps ps i i apl,llll sngring hot h1.2% jump yr. it'sit the highest-eve rded since the index was created 35 years ago, but wait. a tiny ray of hope.

mortgage rates adding to the drama. the 30-year fixed national average came in this week at 5.89%, uh-huh that's 12 basis points lower than the 6.01% last week that bankrate reported. but then, there's the fact that inventory is still a total nightmare, so let's take it live to kelly o'grady, whose standing by in the hollywood hills. how are the first time home buyers handling the housing hurdles? i know it's a very hot area you're at. reporter: oh, i mean, los angeles is red hot. they aren't handling it well. you have sky-high market dealing with people who demand is so sky -high they are putting in bids for two years, and they're not having any luck to get a place like this. now i want to contextualize that 30-year rate that you mentioned with prices rising over 20% versus last year. that's translating into borrower s paying $800 more on average each month, add in the

increases on groceries and gas and everything else that's extremely difficult to manage. one of the biggest drivers is limited supply. few houses are being built given supply chain delays and inflationary pressures since last year, the existing monthly home supply dropped over 4%. now you couple that with the demand coming out of the pandemic and that's where the bidding wars come from. now snagging a home like this has become similar to a competitive sport. you're up against all cash offer s, a large down payment, and you have the hottest sellers market in history. they are going to dictate the terms. you have to listen to this anecdote, liz, it absolutely floored me. >> i sold a house for 5.7 million and the seller said i want a three-month lease back, and i don't want to pay a dime. i'm like all right, that's going to be tough, but let me see what i cand i had three offers on the house, so i was able to negotiate a three-month lease back on a house that would lease for easily $25,000. reporter: and if rates rise, first time home buyers are

continuing to get crunched. i just want to leave you with one fact. if you have a home buyer that has a $2,500 a month budget, they have lost nearly $120,000 in spending power since last december, with surging rates. that is really going to impact wealth building for the next generation. liz: kelly can you just do us a favor because you haven't referenced where you are and why you're in that particular house. >> you know, liz? liz: can you give us some indication? >> sorry, you actually cut out a little bit. can you say that one more time? the cell signal here is terrible liz: that's okay. we just want to know where you're at, why you've chosen that house and what's the back story to that? >> yeah, absolutely. so i'm in the hollywood hills, it's the bird street one of the most exclusive places. you can see what the view, why it's incredible. tis house we specifically chose is listed for $800,000 more because the market is so red hot so we thought it was a great example of the fact that people are willing to pay, and this

could be snapped up any day now. liz: oh, yes i'm sure. kelly, thank you very much, kelly o'grady. in-person shopping made a re bound post pandemic. remember that? but will the federal reserve's full scale on inflation stop shoppers in their tracks? the site center ceo is here with a birds eye view of the retail landscape. let me tell you something. some of the companies that are in his malls are stocks you may own. you need to hear what he's see ing on the ground. it's a fox business exclusive. we've got 27 minutes before the closing bell rings. we are off the lows of the session but the s&p is still down about 1.7%, the nasdaq still the lost leader down 300 points, or 2.6%. we're coming right back. know ho♪ ♪ breeze driftin' on by... ♪ if you've been playing down your copd,...

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liz: yeah, still we're watching these numbers very closely. we've got them on the lower ticker but the dow is still down

459 points, s&p down 74, and look at the s&p 500, retail eft, the xrp, tumbling three and one- third percent along with the markets after today's drop in consumer confidence which we told you about so what's in there? tj maxx, dick's sporting goods, target, nordstrom, all lower at this hour down anywhere from three to 5% in the case of nordstrom as investors angst and worry that the economic climate maybe making a change for the worst. site centers though, this is a self-managed real estate investment trust that's intertwined with all those major retailers, and wholly-owned 92 retail properties. it was in the green for most of the session, it's slightly down right now. joining us now in a fox business exclusive to find out exactly what's going on on the ground at site centers properties, is ceo david lukes. let me keep this simple, david. how's business? >> it is shockingly good. i know that surprises a lot of

people. i think the last time i spoke to you we said we just came off three quarters of record leasing and nothing has changed in the last 90 days. it feels like retailers are still making a bet that the american consumer is going to hang in there in wets it suburban communities. liz: how do you gauge that business is shockingly good. what's your metric? >> well, remember, retailers are running a daily business. they are selling goods by the day. they care about their ebitda quarterly for a retail landlord, we're signing 10 year leases with these companies so they have to make long term 10 year decisions on their daily sales, and for us, they're betting that the high end suburbs really have changed coming out of the pandemic, hybrid work is going to stick in some way, consumers are looking for convenience, and they are going by that same recession play book they've seen again and again and again, when a recession comes, when consumers tighten their belt, instead of stopping, they just rotate and they rotate to less expensive brands, less expensive goods and a lot of those retailers that you just named that are my top

tenants they do really well in times of economic turbulence. liz: you can get realtime data, can't you? there's so many opportunities where you can see foot traffic, you can see exactly what's going on as far as how much people are spending. where are they spending? which of your anchor stores or tenants are doing really well and having no problem paying their leases and certainly making money? >> well there's probably two categories, certainly you mentioned tjx brands which is our number one tenant with a lot of great brands, home goods, home sense, marshals, t.j. max, those are the tenants that do well in a discount environment because tenants know that the consumers really looking for value but you have to remember there's been a whole other wave of leasing taking place coming out of the pandemic and that's service tenants like doctors and chiropractors and pediatrics and urgent care facilities, veterinary clinics. a lot of those tenants started to leave the cities following the customers and the customers are spending a few more days at home so signing leases in local

shopping centers providing a basis for our rental stream. liz: you've got a mall close to me in new jersey where there's a whole foods, a trek bike store, but it took so long because the trek bike store took the location that had been left empty for a long time by a company called annie sez, and i'll tell you, that is one store i begin to see how there's a hair salon going out of business that's right there. i get worried and i think to myself, is the federal reserve tightening rates too aggressive ly, or is it the right thing to do, because people are unable to pay high end hair salon prices, because inflation has gotten so high. so it's almost like picking between two very difficult choices. >> yeah, it's difficult for retailers to thread that needle as well. like you're saying if you're really going for the high end discussion airy customer and

that changes, you're better off being a five below or dollar tree or ulta cosmetics or marshals instead of lululemon. there's choices the consumers make in these times and there's no question if we run into a recession there will be tenants that leave shopping centers. the real issue is are there going to be other tenants that want to backfill, and at this point there's so little construction in the subsector i do expect the demand is just going to out pace supply. i think we're going to run out of space in the next 90 days and that hasn't happened in my career, ever. liz: okay that's a headline. really? you're going to run out of space you're able to lease to people? what would you say, this is a real dream but if you had jay powell's ear, because there is a 90% chance we will see a 75 basis point hike july 27, at the next meeting. real estate is very sensitive, obviously, to interest rates. what would you say to him? >> yeah. well, i'm not sure i would have that chance, but the reality is

real estate fundamentals, the operations are doing very well and when i say run out of space i mean to a stabilized number. there's always vacancies with retailer churn but stabilized portfolio operations are doing great. you're bringing up another subject which is what is value and that future cash flow worth if borrowing rates are higher and i think that's why you're seeing a lot of the reit stocks bump around for the last month and a half because the future of value question is really more tied to interest rates than the tenant roster. the tenants appear to be doing very well. our collections rates are back to 100%. liz: thank you so much. it's certainly a much more sort of relief story that we like to hear and i'm glad to see at least from where you sit it looks shockingly good as you put it. thank you so much, david. thank you, liz. liz: david lukes. all right, a crypto wonderkin has his eyes on robinhood, maybe? but does billionaire sam bankman

-fried have the financing in place to snatch up the favorite online trading platform of the reddit rebel ms. spears charlie breaks it coming up, and if you joined the hundreds of thousands of people downloading my weekly podcast, you have to right? we just dropped a brand new episode today, you've gotta hear the amazing success story, you've heard these commercials on xm radio, madison reed founder and ceo, amy arat, i named it after my daughter with zero experience in hair care, she revolutionized the entire hair color industry and rode the wave of the pandemic when her at-home hair color subscription service exploded. how did she do it? you've gotta hear her incredible story this week on everyone talks to liz get it on apple, google, spotify, anywhere you get your podcast. closing bell 15.5 minutes away dow still down 474 we are coming right back.

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>> what we're seeing right now is just the very beginnings of what this could be. i'm really excited for it but i also think that this is itself, i think that it's starting to show what could happen when you have a more comprehensive digital universe and then you start to see applications, programs, businesses plugging into it and starting to inter- operate back and fourth between their kind of closed window universe, and a more general metaverse. i think we're pretty safe to take a stake in the early development of this but most really am excited for where this could be a few years from now. liz: yes and pay for everything in the metaverse, with crypto. that was crypto billionaire of f tx founder sam bankman-fried

on this show in january, expressing his real enthusiasm for the metaverse, but the business applications as well. he may have bigger goals in mind at this hour as reports surfaced yesterday we told you about this , he maybe considering a bid to take over online trading platform robinhood. charlie? charlie: what now is he talking about? liz: he's excited about all things digital. charlie: we need a little bit of , yeah, it made absolutely no sense and i understand digital, the digital economy. i will say this. he said it in january. okay? dow markets have a way of taming this sort of irrational exuberance and obviously we're in one of those now. he is interested in robinhood. he's been telling essentially signaling for weeks that he would like to own the whole thing. the whole thing is him trying to figure out how to buy it because as brilliant as he sounds again, i still don't understand what he was talking about. liz: you and i with the berkeley and pace education. we're not crypto billionaires. charlie: is he a billionaire? liz: are you kidding?

charlie: why isn't he buying this thing because he has to come up with 20 to $25 a share, it's trading at nine right now, and he could buy it. they aren't going to sell for less than that because they have $6 billion of cash on the balance sheet. when you start in putting that into the equation on top of a $9 or $10 share price, and you have to pay a take out premium, you're talking 20 to $25 so if he's so rich why isn't he buying it? i don't know. liz: well it's just a report. he would buy it because it's cheaper than, i mean look at robinhood. in the past year -- charlie: it ipo'd last july at $ 38. liz: so you started by saying, down markets tend to moderate and they also tend to make rich people look at things and say it's not cheaper. charlie: well you don't see buffett buying robinhood. liz: he does buy things cheap. charlie: that's what i'm saying. this is a company that has got some interesting issues. most brokerage firms go for a

higher net worth individual than trade on robinhood, just so you know so that takes all the big banks ought of it. they want investable assets of about $200,000, at least, just to walk in the door and it's usually a lot more than that now as well. so that takes all the broke ran firms out. online brokers don't really need them and they are starting to be owned by the traditional brokers e-trade is owned by morgan stanley and schwab bought the other one, right? liz: well, no, mores who bought e-trade? charlie: who bought ameritrade that's what i want to know? e-trade is bought by morgan stanley but there's not a lot of natural buyers for robinhood because of the customer base, right? and they are going to face at least two or three quarter of down markets. so it behooves them not to sell now, obviously. and because they are going to get they maybe get a better price if the markets pick-up tremendously going forward but suppose we're in for a sec

secular slowing markets with higher interest rates and recession. this is a company that's really difficult to sell, maybe and it just strikes me as odd that a guy this rich is not paying, saying i'll give you 20 right now, double the price. kind of like what elon did to twitter which he had to go for almost. liz: and he would gain all of these people. he is in the business of brokerages. charles schwab buying ameritrade , if morgan stanley, there is so much consolidation: charlie: i can just tell you i've been speaking with bankers today who are dealing with all these folks and just these are the things that i'll tell you. he's been expressing interest in robinhood, the last couple weeks that he wants to buy it all. as you know he owns a stake in it already. he's worried about price and financing, which means he doesn't want to put all his cash into this , and he doesn't, he needs a bank to give him a loan. liz: okay. charlie: sounds weird to me. liz: a lot of ifs.

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♪. liz: okay, folks, we just hit a session low a few sexes ago on the dow jones industrials that would be a loss of 503 points. the swing today, 949 points. it is nasdaq from a percentage standpoint that is the ugliest here. we have the nas down three full percentage points, down 342. it just took a leg down. we're at social lows. i will quickly check. the laggard is mercado and nvidia in the nasdaq 100. we need to show you some banks. we have not talked about those. these banks on your screen raised dividends after passing annual federal reserve stress tests. talking about bac, gold man sachs, wells fargo and morgan.

talking about is eyeing them. cliff corso, advisors asset management. cliff, financials, this morning they were in the green. now we just have morgan and a few laggards here. usually raising a dividend you need to see green but you still like these names, right? >> we do. we're taking a little bit of a longer-term perspective. from the tide going out on a day like today, challenging day, it tends to sweep everything with it but there are a few things we do like about the financials and what we're looking for in this market which is regime change, because the regime change is inflation. we're looking for three things in our asset allocation. predictable sources of return. you typically find that in dividend-paying stocks. banks are pushing close to 3%. some even 3 1/2. that is higher than the 10-year treasury. look for margins of safety.

the valuations of financials are very attributing of it i have it in terms of margin of sate. third we like for structural tailwinds. structural support coming from the regulations america it just a good play in our minds. >> it sounds like you're going with the safe ones like financials, energy of course, and some commodities. energy has been certainly a winner today. it has been the one area that's pretty strong along with utilities. as we look what happens in the future here, about do you put energy stocks which have had a really nice run-up? >> they have. and over the last several days they have gotten hit pretty hard. but they have done well this year, as you point out. we don't think it's a short term phenomenon. not as much a cyclical phenomena the market is worried about. demand destruction, declosing demand for energy. but if you look at it, with a little bit after longer term lens, there is structural

tailwind for energy that foes out very, very well. supply has been constrained not only war but regulations. we haven't made that transition yet to green energy. [closing bell rings] we think there is a pretty long runaway to the energy sector. liz: cliff corso, thank you very much. well, no tailwinds here. it's a headwind for the market. lots of red on the screen. we'll see you. ♪ larry: hello, folks, welcome to "kudlow," i'm larry kudlow. so the g7 meeting in germany made at least one key point absolutely clear, joe biden's so-called energy transition to renewable fuels is a complete failure. it's a failure here in the u.s. but it is now a failure worldwide, globally, an utter failure. in europe the countries are talking renewables but they're reopening coal plants. that is because they either can't get enough russian oil or gas supplies or