i love to see a new genre of music, see us out there dancing again celebrating life. i know we can make all of this happen, so listen we've got to block out those special forces, which includes resentment and conflict. stay up, folks. don't be down, all of these things are going to come. we just have to make them happen meantime, i leave you in the able hands of lauren simonetti. she's in for liz claman, going to walk you through the last hour of trading. lauren: fun, i heard fun, charles in fun hands of lauren simonetti. good to see you, thank you, hi, everybody. the world's richest man calling checkmate on twitter after bail ing out on a $44 billion bid to buy the whole company. elon musk breaking his silence on the social media giant, that looks as if it could be headed for its next battle in the courtroom. gastrointestinal charlie gasparino has been working on it and we're seeing right now looking at shares of twitter and tesla too, by the way.

markets overall, slightly lower at this hour, well make that decisively lower. the nasdaq is down a solid 2%, the dow up and down all day down 127 points, but well off the lows of the session. investors seem to be in standby mode ahead of the start of second quarter earnings season, and the june consumer price index report, both out later this week. the major averages as we said are lower heading into the final hour of trade and our floor show traders tell us what they are looking for ahead and all about these markets moving events, and silicon valley looking more like death valley as drought threaten s startups like coffee. the equities co-founder is here to explain why venture capitolists are sitting on their wallets, i'm lauren simonetti in for liz claman. twitter shares, we said they were down, well they are down 10 %, following elon's announcement he's going to tier terminate that $44 billion deal

to purchase twitter. charlie gasparino has the potential legal ramifications for elon musk. charlie? i don't think he can just walk away with a mere $1 billion breakup fee. do you? charlie: yeah, i've got major breaking news first on this , on reporting on this. david faber from cnbc finally gets an original thought by watching fox business, okay that's huge. what he reported today is what we reported more than a month ago, that if he defies, he, meaning musk, defies a court order there is more to complete the deal at 54.20 and that's what twitter is aiming for , a month ago or two months ago i think it was may 18. check my tweets. a court, the delaware chancery court could compel him to complete the deal and if he thumbs his nose at them unlike thumbing the nose at the securities and exchange commission which he does all the time a court, that court, could seek jail time for mr. musk and all this is

possible, it's in the realm of possibilities because this is where we're heading, we're heading for a battle royale, lauren. i'm trying to be facetious there although, i don't think david has many original thoughts. i'm speaking truthfully but here is where we're going here. if twitter wins, let's say twitter wins, and the court laughs out musk's arguments that , you know, there's more than 5% bots, hiding the football, a court could compel him to complete the deal at 54.20. it is very possible he's going to have to fork over 44 billion and if he defies a court order, the consequences are jail time. now whether it goes there or not i can't tell you. let me make this point now. if musk wins, this is fascinating too because that means huge legal ramifications for twitter so remember what musk is saying. essentially that twitter is hiding the football, that its bot problem is much, much worse than what has been publicly

disclosed to shareholders and securities and exchange commission for the last 10 years since its been a public company. think about that. it's lying to public investors for 10 years. that means, everybody, from jack dorsey to the current management lied. they face serious securities fraud issues if they put out the wrong information, because bots, you know, that's how investors sort of gauge the business, and trade the stock. they want to know how many real active users there are and if they are much more than 5% materially more, as musk says, twitter's in big trouble, so remember, the stakes here are enormous for both sides. then i guess the question is, do cooler heads prevail and do they settle somewhere in the middle and it's going to be more than the billion dollar breakup fee because remember the billion dollar breakup fee, lauren, coming into play if somehow, there's some normal thing that can't complete the deal, that

musk can't come up with the debt financing or something along those lines. he's charging something, he's looking to breakup based on what he's saying is like fraud. they're saying you're lying. therefore the damages here are going to be off the charts so that's why a lot of people think they go somewhere in the middle and that maybe the deal settles at $35 or $40 a share and maybe he does complete it but not at the original price. so i'm sorry. lauren: if i'm summing this up though, charlie, you're saying, as best you can ascertain at this moment, that there might be a deal, it's not going to be for 54.20 a share, and there's a good possibility that both parties want to settle outside of court? charlie: yeah, listen. i'm only as good as the people i talk to. i spoke with john coffee more than a month ago about the potential of something drastic like elon going to jail. he's the one who put it in my head. he is a preeminent corporate

legal scholar at columbia. he said point blank, if the court orders him to do x and he defies the court like he did the sec, it's not out of the , it's not, you know, it's very possible, it's more than a theoretical chance, he could end up in jail. my banker sources say this. they believe that he's just playing around, because he has a weak hand and he was looking for a less, looking for , looking to pay a lot less. i can also tell you that they also believe twitter has got kind of a weak hand. different ways. this stock is going to have a 20 number on it very soon because there are no natural buyers, so they are almost, you know, they have to negotiate at some point, or they are going to have to just sit around and play the long game, which could be difficult. let's just say they do win. that comes within the next year, i guess? unless they get an expedited schedule from the judge.

these things take a while. there's going to be discovery. all this stuff. so you know, while they are preparing and have a strong kind of a strong hand, its time is not on their side and the stock is getting cratered, and they have a business to run and it's a difficult business. it doesn't draw off much cash. they really need to change their business model while they are doing this huge legal thing on the side. so there's no, this is what you would call, i'm not going to say the word, i'm going to start with s and say show. that's what we got here. it's fascinating. i just want david faber to do his own reporting. that's it. lauren: it's interesting to me twitter down 26% since this deal was announced. tesla is down 29%, so i mean, who is going to want to do business or at least invest with or in elon musk at this point, which we're going to talk about right now with our panel. charlie: i just could tell you he started making noises as soon as his stock started cratering. lauren: charlie, thank you for everything and look, look at

this. elon musk broke his silencerly this morning with tweets. this is the first one four pictures of himself laughing. these are the headlines, they say i couldn't buy twitter and then they wouldn't disclose the bot information. now they want to force me to buy twitter in court and now they have to disclose bot info in court so it seems like he thinks he's winning, he doubled down with this tweet, chuck norris in front of a chess set and musk just wrote "checkmate", with more on this with the very best, al root who spent years covering elon musk and newberger senior research analyst dan flax. wow. al? you have followed elon musk for a long time. if you looked into a crystal ball do you think he comes away with getting twitter in any which way, shape, or form? >> thank you for having me, lauren, good to be back. i think do you know what? i'm going to go with --

lauren: no one knows. >> charlie's comment of settlement. i think shortly after he made his offer, and then all stocks started going down including tesla, i think he sort of decided he didn't want it any more, but you know, it was a little more difficult than just saying no, i don't want it any more. he couldn't take it back to the store and put it back on the shelf, and so you know, but like charlie laid it out. there's such high stakes for everybody like fraud on the twitter side, musk being compelled to spend 44 billion of his own money selling tesla stock to do that, on the other side, you know, you would think that his settlement is likely to happen. i don't think he will end up owning it. let's just put it that way. i think he will not end up owning it. lauren: you're a no. let's bring in dan. what are you? >> lauren i don't think the deal will happen. i expect a breakup fee will get negotiated. what we're focused on is really twitter's ability to innovate clearly they are going to need

to boost employee morale given everything going on. when we think about the next several months or really the next one to two years twitter will have to demonstrate an ability to come up with a differentiated service, keep users, grow the user base. lauren: so dan, what's interesting is, you say innovate i just equate, i mean if you look in the dictionary, innovate i see elon musk's face. he is the innovator, so i know there's cultural issues but would you imagine that the employees who are sticking with twitter want elon musk to come in and help them out? >> i think it's likely to be divided internally, because clearly, musk is a visionary in a lot of respects with an extraordinary track record we all appreciate tesla but what ends up needing to happen with a platform like twitter is that the developers, the men and women around the world, inside twitter and really the greater community need to bring their innovation to twitter. the magic, if you think about a platform like google, for example,, youtube, or search,

it's really about all of the other people, this broader echosystem and that's what twitter needs to build-out, whether musk is the owner or not. lauren: uh-huh, let's talk about some of his other companies, al. like tesla. you know, and you can explain this. record june sales coming out of shanghai. right? yet tesla share price is down 29 % since april 25, since this twitter deal and you know, elon musk has even said well look at berlin, look at austin. they are money furnaces so what is shanghai doing the others aren't? well, they are newer, right? there's been supply chain problems all across the globe, so ramping up production, you look at rivian but ramping up production at his two new plants by his own words has sort of been a nightmare. it'll be interesting because we get earnings in a couple of weeks, how big, what is an actual money furnace, right? we'll take a look at free cash flow and see what the startup is

looking like there because, you know, money furnaces is not a term defined by business classes , so shanghai is just established, more productive, than the new plants. the new plants are saddled by all of the issues that shanghai had in the second quarter with these covid restrictions in china, plus the fact that they're new, so really, that's what's going on, so the stocks down 29, automotive stocks got killed in the second half. twitter is definitely an over hang, and then he's making these comments about money furnaces. it is a very interesting time to be a tesla shareholder. i think if you want to be a tesla bull you have to believe that a lot of these problems including twitter get resolved in the second half and production ramps up at his new plants, and if you want to be a tesla bear, you just have to say like there's too much going on. elon seems scattered.

he seems not focused at a time when ramping these new facilit ies is like key to the company, and then you just sit on the sidelines lauren: i hope i'm not going too far in left field but he's got a lot of problems on his hands. that's a joke. dan, al, thank you very much, and potential lawsuits, because people are losing money as all of this is playing out. well the big banks are about to lift up the hood on the second quarter and their earnings reports. our floor show is here to tell us if earnings season will pave the street with gold, after a disastrous first half to 2022 but first let's check the big boards the dow is down 185 points off the low but close to it as we're in the final 47 minutes of trade. the "clayman countdown" coming right back. riders! let your queries be known.

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lauren: you can see the dow is down 187 points, down .6%, the nasdaq is down 2.2% as the tech-heavy nasdaq continues to just sell-off its 257 points in the red. stocks are held hostage to the inflation data that we're getting throughout the week and the big one comes on wednesday, the june cpi report, analysts

expect prices to increase the most in 40 years, up 8.8% in june from last june. core cpi, that's expected to rise 5.8% annually, and that be the third straight month of declines, suggesting inflation might be peaking. wall street is focused on earnings here is your calendar. pepsico kicks it off for the second quarter earnings season tomorrow followed by big names like delta and of course the banks, the big banks, jpmorgan chase, morgan stanley, they report on thursday, you get wells fargo, citi, and pnc financial after that. analysts predict a mixed picture from the financials, they expect profits to fall but trading revenue due to market volatility to partially offset that slump. the possible profit plunge stems from lenders adding to their reserves for expected loan losses. second quarter profits to dip as much as 42% that according to refinitive. let's go to the floor show and bring in carnivore trading dutch

masters and great hill capital thomas hayes. tom, what are you watching most? >> well, i love the setup coming into the inflation print and into earnings, lauren. if you look at the university of michigan consumer sentiment at all times lows at 50. since 1980, three times its traded below 58 and all of those times its been the lows incent itment and the peak in inflation, which is interesting considering we're coming into the most important inflation number of 2022. managers are really positioned going into this , sentiment is at all times low, cash levels are at all times high so if that does come in a little lighter than expected which we think it can, i think you're going to see a lot of chasing into the market and that money has to chase as the market jumps from those returns. why we think this could come in lower than expectation is because you're seeing shipping index so container, freight costs coming down. you're seeing dram prices coming down and the commodity basket

roll over as we've seen in grains and more in energy, in metals, et cetera. lauren: let me bring in dutch because that is true, tom, but sometimes it's about what the consumer thinks about all of this and what they think in the future about all of this. new york fed today said consumer inflation expectations one year from now hit a record high of 6.8%, and we get the university of michigan, the fresh data, on friday. that was the data last time around that really fueled the fed's fire in going a stronger 75 basis points hike so what do you see for wednesday and consumer prices and the whole idea that inflation might be peaking? >> i like the setup too, tom, and lauren. i think that the numbers going to come in hot. we're looking for 8.8 to 9. we think the consumer is already slammed on the brakes. we know the housing is already cracked but some of these number s aren't going to come through until next time so what we're looking at here is it's going to be a bad number, but if

any of the components of the cpi are showing a significant slowdown, remember, smart money trades on the rate of change, so if the rate of change is slowing, i think that's something tom was eluding to is that if things are starting to pullback in certain areas there, and we are seeing it in realtime right now, it's just not going to be in this number, here's what's going to happen. the average person is going to say oh, that's a horrible number , they short the market, and about 30 to 60 minutes after that, market opens, this thing is going to turn and run and we think there's going to be a huge epic up day on wednesday and follow through on thursday and friday. especially in the tech stocks. lauren: okay, okay, but what if the consumer starts to pullback, bank of america, card data, gas spending, up 20% in the past five months and that is starting to take a toll on travel and leisure, so what if the consumer

is helping to push the economy into a severe slowdown if not recession, tom? >> well, this was the goal of the fed, lauren. they wanted to reduce demand, but they don't want to destroy the economy and one data point that no one is talking about right now is last month, june, quantitative tightening was supposed to deliver $47.5 billion of liquidity reduction, of tightening. you know what they actually delivered 7.5 billion, so the fed in the background is being highly accommodative and i think if we do see that rate of change that dutch referenced or that number coming a little lighter than expected which we think, you could start to see some jaw boning from the fed that maybe after the 75 basis point hike in july, which is priced in, maybe they will start to pause or slowdown and that could bring back confidence. as it relates to inflation expectations which the fed looks at is five year breakevens those have rolled over in the last couple of months despite the short-term view of the consumer and i think that will start to be more and more

normalized as we looked at ppi, the leading indicator did peak in april and that always leads cpi so we're pretty sanguine moving forward and we love the fact people are very pessimistic going into it. lauren: okay, so the bar is low. you know, we start you here from corporate america opening their books on the second quarter. dutch, what do you expect the number one question on that call after the release, the call from the ceo, the cfo, what do you expect it to be? >> i think it's probably going to be, they want to see the guidance, okay? everyone is going to be checking guidance. right to what you're talking about, how is their business doing, and how robust is it and where are the weaknesses, i think they are really probing for that. lauren: all right, dutch masters , tom hayes, we'll see how bad the guidance is. if anybody even knows at this point because we've been talking about the same thing for weeks now and i guess we get to see finally when we hear from corporate america how it plays out for all these

companies. thank you. we maybe witnessing a major case of road rage rising interest rates boosting the cost of new car loans but those hoping to stick with their current ride may not be seeing relief either, especially if you need to get a part or something fixed, madison alworth live in new jersey with that story let's take a look at the market you can see the dow jones industrial average down 185 points the nasdaq is down 255. the s&p down as well, we'll be right back. [whistling] when you have technology that's easier to control... that can scale across all your clouds... we got that right? yeah, we got that. it's easier to be an innovator. so you can do more incredible things. [whistling]

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that's scary. the recall will be an expensive repair for ford and for drivers, well costs continue to rise not just gas prices but car insurance and now, maintenance. madison alworth is at knights automotive repair in ledgewood, new jersey. madison, how big are some of these repair bills, because i just had two cars fixed, and it wasn't pretty. reporter: yeah, i'm sure you saw firsthand how much these costs have gone up. so on average we're talking about an increase of 6%, but there's certain items that are going to run you up a lot more. i want to bring in peyton knight , he has a lot more knowledge than me so on average, certain items are going to cost your customers a lot more. what have you seen be the biggest price jump over the last year? >> i would say tires are huge. tires are going up daily. i saw earlier today, engines. engines are huge, transmissions. the big ticket items are what's causing this to happen. reporter: and what kind of differentials are we talking about like how much are tires up

, how much are transmissions up? >> tires are up 40% over the last year and a half, two years that's a lot. you take $100 tire and now it's $145 or $150 a tire. engines, engines are double and even more. reporter: then what are you see ing as the reason why these costs are jumping so much for these big ticket items? >> take tires, made with oil, petroleum, so there's one reason for that. can they get their hands-on the materials to make the engine s? what it takes, the metals and the different products they use. where are they accessing from? where can they get them, and you look on tv, you see the ships sitting out in the harbor, deliveries, they aren't getting here. that's why we wait three months for an engine because they could be sitting out on a ship but it's not in port yet. reporter: so you're seeing higher costs but people are still coming in paying for them because used cars up 16% year-over-year in costs. are people holding on to their vehicles longer and if so, how much more are they putting into cars that they would have normal ly traded in by this point

>> yes, they are definitely holding on to cars longer. i can give you an example of a car that we did an engine on this year. it was $9,500, and i was talking to the gentleman about it and he said no, i want to keep the car. it's going to cost me a lot more money to get into a new used one or a new one so he decided to put the money into it. people are keeping their cars longer. they are seeing that they can put it into it. the other thing is if they have the money, they put it into it. i think one thing that's also going on is maybe the economy, they don't want to get tied into an $800 payment, where they go you know what i have $5,000 and it'll keep my car running for another hundred thousand miles. reporter: if they can keep the car now because it's a guaranteed thing and we're see ing this on the road cars are on average on the road for 12 years it's the longest we've had cars on the road because yes these repairs are up, lauren, as you saw just last weekend, but buying a new or used car, that's way up. lauren: he said 800 a month, madison. 12, 13% of new financing for

cars, that's like a thousand dollars a month is astronomical, rent in some cities is keeper than a new car and when you put it like that you say somethings wrong here. madison thank you. thank him too he's a great guest fox business alert shares of apple souring after the investment firm moness lowered the price target to 174 the firm warning headwinds which include an economic downturn, rising inflation, that's going to hurt sales of apple products, the firm did keep their buy rating on the stock. meanwhile jefferies took aim at athletic wear downgraded both lululemon and under armour, lululemon was cut to under perform, under armour cut to hold. lululemon shares got a boost during the pandemic and now some people are returning to the office, some days a week, sales are going to slowdown. but i thought you could wear yoga pants to the office now? i thought that was the new thing similar story for under armour the analyst also said volatility

at the upper levels of management, all these names down pretty sharply today. well one company zooming higher is mullen automotive after the ev maker signed an agreement with dell pack logistics an amazon partner to deliver 600 cargo vans to amazon the first 300 coming by december. uber shares are down sharp after a report in the guardian said the rideshare company cited taxi laws between 2013-2017 as it expanded its presence worldwide, uber is down 4.5% they responded in a blog, they said look we're not going to make excuses for past behavior, which is not in line with their present values. a funding drought in silicon valley could delay the nations hottest start ups like temper packs from having their day in the ipo sun. the equities co founder is here in a fox business exclusive telling us what's keeping them from shelling out the big bucks. it's a sour monday on wall street, all three major averages

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lauren: hedge fund tiger global is delaying investments and start ups for two quarters the firm which manages over $20 billion said its pausing start up ventures due to recent market volatility, which has caused its fund to drop 52% this year. tiger global is not only hedge fund pressing the pause button. look at this according to pitch book investments in tech start ups have plunged 23% over the last three months alone to $62 billion. that is the steepest decline since 2019 right before the pandemic, and here in a fox business exclusive is the equity zen co-founder and chief strategy officer phil has let. phil what is the strategy right now? >> [laughter]

well, you know, with this lack of ipo activity that we're see ing and also a cool down inconvenience churr capital activity, we had seen a lot more interest from shareholders at these private companies that really need liquidity for things like down payment on a house, or paying down student debtor just dealing with rising costs. lauren: what exactly does equity zen do? >> so we are an online pre-ipo marketplace and that means we connect investors that want to invest in private technology companies before they go public and we connect them with shareholders that are typically employees or ex-employees that might want a little bit of cash to diversify or pay down some of the costs that they have on their end, we worked with about 350 companies, spotify and docusign before they were public lauren: that's why you mentioned they might need the money to buy a house or pay down debt on the employee side. we mentioned tiger global coming into you they are delaying their start up investments until december. is this only market volatility or is there something else going on? >> you know, there was a lot of

what we'll call irrational exuberance mainly in 2021 where a lot of investors poured a lot of dollars into private technology companies while interest rates were really low and there was a hunt for returns amongst all different types of investors including tiger global and that led to a lot of competition and increased pricing and valuations for companies. it's really coming crashing down to reality and so i think what we're seeing is a reset from some investors like tiger global and others, particularly when those types of investors can invest in either the private markets or the public markets and maybe they are seeing better opportunities in the public ones for now. lauren: because things are cheaper or more safe in the public markets? >> yeah, things are a little bit cheaper they might say, or they have a bit more visibility into the companies themselves. you get a little bit more disclosure in the public companies but we'll expect to see that as public companies particularly in tech kind of maybe bottom out and start to show that revenues increasing again, or that earnings are

increasing, we expect to kind of see that sentiment slowdown into the private markets which are usually a lagging indicator, and we'll start to see more investments come come back from venture capital firms and places like tiger global. lauren: it sounds to me like the private markets or smaller companies, unicorns are completely more risky and that's the last thing investors want to touch? >> yeah, they are inherently more risky. they are a little bit earlier staged than more bona fide blue chip names like ibm or what have you, however they also offer an opportunity for investors to kind of get an earlier stage. the example we give is that when amazon went public in 1997, the company was worth about 400 or $500 million. compare that to uber which went public at north of $50 billion in valuation. if you were just a public market investor you really didn't have any access to uber so a lot of times we see investors look into the private markets because they have a chance to get in on the ground floor and that always comes with risk. lauren: you said earlier that it's back to reality for a lot

of these companies. is it really back to reality or are we in a completely different reality because all the activity that we saw last year with low interest rates and a lot of enthusiasm, that's, i mean, come to a halt. >> yeah, absolutely. i think it is a dose of reality and you'll have companies going to struggle and quite frankly go out of business or have to conduct layoffs which are starting to see happen however there is another cohort of businesses that raised some of that money last year that that are going to spend that cash prudently and have a slightly lower valuation than a year ago but were at terms when they took the money before but again, 202f unique year, we saw within that venture capital raising space, some people tried to compare it to kind of the years leading up to the dot com crash. you've got a little bit more meat behind the businesses this time around. we're not valuing companies based on eyeballs or users but actually fundamental revenue but it is going to take a bit of time before we start to see prices lift backup.

lauren: do profits matter again? >> i sure hope so. you know, in my opinion they should have always mattered, but there's definitely much more of a lens on now, venture capital firms are telling their companies that cash is king and profitability is king, which is a big 180 from growth at all costs just what we heard of 12 months ago but we seen the song and dance before, probably equities have been doing this for nine or 10 years, actually seen this back and forth three or four times even in the last decade, so it doesn't come as too much of a surprise. lauren: phil haslett, thanks for the time, we appreciate it. with rising covid cases hitting certain sectors of the market, harden than others we're headed to the peach state for updated information on how the new variants could spell trouble for businesses across the country. first, with 17 minutes left to the monday session, markets selling off the dow is off 173 points, and the nasdaq is down the most, well over 2% we're coming right back.

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that according to the cdc and that has investors in the travel sector worried new infections could drag on what's been a summer travel boom. look here, carnival down 5.5%. the cruise lines are taking the biggest hit norwegian and royal caribbean also lower and among the biggest laggards on the s&p 500. jonathan serrie is in atlanta with more on the rising cases, and jonathan i look around and i don't see more people wearing masks or even being overly concerned. >> yeah, there's a lot of mask fatigue, people are ready for this to be over but federal health officials say the virus is not done with us. there is some good news on the vaccine front. moderna announcing today it's making progress developing vaccine updates for the fall that will target omicron and several of its sub-variants and also you have health officials announcing today they have secured 3.2 million doses of a new vaccine developed by novavax this is a protein-based vaccine

that's expected to receive fda emergency use authorization in the coming weeks and the federal government says it wants to have the shots ready to provide to states as soon as they're approved for free. this would give americans another alternative to mrna vaccines, more than three-quarters of americans have received at least one shot of any covid vaccine and experts say that is helping to keep severe disease relatively low, even though the highly- contagious omicron sub-variant ba .5 is driving most new infections, new infections now averaging more than 100,000 per day. >> i think it's going to be increasingly unlikely even with these more contagious variants that you see anything like what we saw in earlier areas of the pandemic. reporter: nearly three-quarters of americans live in communities with high or medium covid risk. high risk areas include new york city which is once again urging residents to wear high-quality masks in indoor public settings, and outdoor crowds.

public health officials say because vaccines can't prevent all covid infections, masks can be part of a layered approach to reducing the spread. of course the idea of having the mask up again is getting mixed reviews from residents, but again, we should point out this is a recommendation, not a mandate in new york city. lauren back to you. lauren: are we ever going to be done with this , jonathan? i think not. >> you know, it's never going to completely go away. it's going to be like the flu but hopefully we get to that point that we know how to deal with it on a routine basis, and there are less people dying and less people winding up in the hospital, and it appears that we're on the way to that phase. lauren: with specific boosters that target the latest variants. jonathan thank you so much for the time. >> my pleasure. lauren: america's power players may have trouble pumping out this summer as an aging grid of sky high natural gas prices could turn out the lights literally, lydia hu has details in moments and we check the big board, final hour of trading dow

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and insights on every buy and sell decision. with zero-commission online u.s. stock and etf trades. for smarter trading decisions, get decision tech from fidelity. lauren: breaking news. the white house press brief something underway at the white house. you're looking at national security advisor jake sullivan at the podium ahead of president joe biden's big trip to the middle east this week and saudi arabia is one stop on that agenda. this as oil prices settled above $104 a barrel. and nat-gas, that jumped another 7 1/2% today. but natural gas is 2022 rally is putting citiesal pressure on american utilities. can they keep up? lydia hu has more from midtown, manhattan. lydia? reporter: hi they're, -- there,

lauren as prices for natural gas are high, utility companies warn energy supplies are low. that could mean rolling blackouts for millions of more americans the rest of the summer than in prior summers. take a look at this, you can see here on this map, much of the country is at elevated risk for insufficient power for this summer. a large part is the midwest. the area in red. could lack power needed to get through normal peak conditions. lauren, one reason for this, the power shortage, one reason for the power shortage, is that coal plants are retiring. some operators are choosinging to shut down, rather than risk upgrades do not fit with the government's long-term goals. increasing demand to power air conditioners this summer could destablize this power grid. >> solar panel fields don't survive hurricanes or tornadoes. but coal plants do, nuclear

plants do. this summer growing a greater problem we're getting rid of what works and we're depending upon what is unreliable inherently which is wind and solar. reporter: the power shortages, they drive prices we all pay. it is predicted electricity prices could rise as much as 233% this summer over last. lauren that is the outlook just for this summer but these issues could continue into the summer months because as these coal plants shut down it means that these utilities are burning more natural gas. they're having trouble rebuilding the stockpiles. of course that is needed to heat our homes in the winter months. as well, lauren. lauren: where does it end? lydia hu, thank you very much. it almost ends on wall street. closing bell rings in about three minutes, ending the trading day on wall street which has not been good start to the week ahead of cpi data on

wednesday and banks reporting earnings on thursday. td securities says odds of recession next year, greater than 50%. the investment bank cites rising gas prices, hawkish fed and slowing economy. let's bring in cio brad mcmillan. everyone has something different to say, brad. td says, what, 50% chance of recession? morgan stanley which is typically bearish, they said well everyone is asking us when will we hit a recession, so we looked at pmis, for regard earnings, unemployment rates, what do they look like in recessionary environments and they say the current levels on all three are aways away from recession. what do you say? >> i'm going to go with the cheerful side on this one. personally i look at a couple of things. i look at jobs. jobs are great. i look at the year on year change in consumer confidence. that is a little bit worrying. that is more due to inflation than anything else. obviously that is not good but is it enough to push us over the

edge? i don't think so. then you look at business confidence, you look at the yield curve, nothing is saying recession at this point. lauren: what sectors do you like right now? >> that said i think we've got some concerns here about the markets. i want to be defensive at this point. i think with, the if we're not getting a recession, we'll continue to see rates go up. that is going to hit technology. that is going to hit growth. i want to be defensive. i want to be in health care. i want to be in consumer staples. there will be growth but a lot of the sectors are priced for it and we needs to be in the ones that are. lauren: you're optimistic relatively but i still think you need to hide out in certain places because the market might come down more from here? what are your predictions for the second half of the year? citi group says we'll rally in the back half? >> i think we do rally in the deep back half but we got a ways to go from here and there.

once inflation rolls over, we start to see fear on interest rates subside, i will get bullish. with the economy -- lauren: the back half. that makes me think what happens after the midterms. i will let you finish your thought, sorry, 10 seconds here, brad? ♪ closing bell rings] >> i think the midterms could be where we start to get a break. that is where inflation will go. that is where the politics tells us we're going next year. lauren: brad, thank you very much. markets open the weak lower. that will do it for the claman "countdown". ♪. larry: hello, folks, welcome to "kudlow," i'm larry kudlow hard to believe president biden and his radical progressives taken a strong economy with 6 1/2% growth, letters than 2% inflation so ran it into the ground in mere 18 months mere in the first half of 2022 we're looking minimum the front end of a recession, quite possibly two straight negative gdp quarters

along with near 10% inflation. it is all hard