>> mercury, not certain. stuart: i will go with mercury he seems very certain. it is mercury. the neptune is the furthest away earth is the third planet from the sun. i should know that. >> my very excellent mother -- >> there you go. stuart: time is up folks. we had a lot of fun, neil is here to take it away. neil: neil is here to take away all the fun. [laughter]. got it, that's about right. viewers are getting to you. welcome, everybody, i'm neil cavuto and for the next two hours, you are going to stay a whole two hours i know who you are, i know where you are, we're following a selloff picking up some steam here. a lot of this is built on fears again when we get the fed minutes out in couple of hours. that would be from the july july 26-27 meeting where they hiked rates 3/4 of a point.

that they might remain strong and stay ahead of inflation. that combined with retail sales figures that were disappointing for some are still proving consumers are buying even in the face of higher prices. so expectations they could go still higher and still put some pressure on underlying stocks. we're going to explore that a lot more. let's the read with rob luna and luke lloyd, what they make of what the market is telling us right now. rob, to you first, whether you get an impression here that this is really the mirror opposite what was going on yesterday. five straight days of advances. we don't want to overstate this here. what do you think is going on? >> i think it is that, neil. profit-taking. we're up about 15% in just a matter of six weeks. the sentiment is completely changed. people have been buying the dips. we're back above some major moving averages. as you mentioned we got fed minutes coming out. i think any reason we take a little bit of profits, pull

back, retrace some of that move, i think that is all this is right now, repositioning ahead of those minutes. neil: they will seize on anything and i get that, luke, but apparently they're really, really concerned these minutes will reveal an unusually hawkish fed. i don't know why that is suddenly a concern. magnitude of the rate cut, rate hike at the time should say seemed to confirm that so what are you looking for? >> yeah, so right now i think the market overall is digesting earnings along with what the fed is probably going to do. i think the fed is eyeing what happened with earnings over the past quarter. overall i'm extremely cautious when it comes to discretionary spending, right? so the consumer is obviously going through a really big rough patch. i think you see that reflected by consumers on spending, groceries, rather than apparel electronics. people can't afford things and are not buying them, the other

big issue is inventory issues. they have too much inventory. they're discounting some items to get it off the shelves. you might think this is good for inflation but this is not good when people spent their savings, and just can't afford things. so i think consumers have essentially done the federal reserve job for them, spent most of their money. so the fed being so late really screwed up a lot of things. i think the fed is in a really tough position and really has no choice but to hike, other than to hike interest rates because inflation is still very, very high. i don't care if we're at 6%, 7%, 8% inflation, we got to get that down to 3 or 4%, that should be the fed's objective, nothing else. neil: it is interesting, guys, if you look at it, always a battle on trading day as we look at retail inflation affecting everything from appliances, to women's shoes, furniture, et cetera. we know that very well. new worry about the real estate

and the housing market. we're learning that investors possible for a severe downturn in housing, a slide of 15% in average home prices that mortgage demand is at the lowest level since 2000 and that, there is a fear that this could escalate. i raise this, guys, with the chairman of redfin, glen kelman yesterday on another factor he is watching closely. this is his view where things stand right now. what you're seeing, is this a correction a bump, worse? how do you describe it? >> it has been a very sharp correction. i don't think people realize just how bad may and june were. 70% of the listings in boise dropped their price. 16% of the homes under contract canceled nationwide. we've never seen that level of

cancellations. buyers significantly pulled back early in the summer but now since mid-july things have been getting better. modestly better but better. neil: if that keeps up what he seemed to be telling me, rob, is, buckle up. what do you think? >> yeah. i mean look we're coming from a market that has had unprecedented moves across the country, in every, pretty much every area that you're looking at. so i think when you look at home affordability, based off of average household income, that has been a great long term indicator. that has gotten a little bit out of whack. the stock market as we know is hopefully a leading indicator. the stock market said november of last year we were headed down. we'll see a slow down in the economy. that played out but housing that is the most lagging indicator because people are going to make decisions when they are fearful of their jobs. it is the last to pick up. while we've seen a lot of that play out in the stock market, it really not impacted the housing market. that has a lot to do with

psychology, neil. when homeowners are starting to see price cuts, days on market extended, that is when you start to seet housing, luke, integral to the economy. it is most talked about, one sector of our economy has more numbers attached to it than any other from housing starts to permits, all of that other stuff, existing home sales, new home sales. parsed many different ways. it is very important to the american psyche as well. how is housing looking to you. what kind of a ba barometer do you think it is for everything else? >> neil, i think the housing market will be one of the least volatile markets going forward. they are pretty pessimistic in areas. housing i think is one of strongest the next several years. 75% of americans want the

housing market to drop to buy a house. that means the housing market won't drop that much. that market for home depot, lowe's, saw that with earnings, they will need supplies. this is a pretty good area to park your money with some cash. i don't see much growth with the real estate sector but i don't see a crash either. rob was right, five to 10% decrease in lot of areas. other thing you have to remember, blackstone, blackrocks, all institutions, private investors bought up so much real estate over the past couple years. there is no supply out there. when it comes to these numbers released that were pretty bad, i think a lot of people are just rethinking their spending habits, rethinking buying houses. i don't think they're out of the market. there is a big difference being out of the market and rethinking what they're buying. remember interest rates were 6% month 1/2 ago. now it is below 5%. a lot of people are looking for better rate. neil: a big difference between the housing crash define ad meltdown but what happens right

now too early to say. gentlemen, don't wander too far, want to pick your brains what is going on in technology, reversing gains the last week. analog devices, a big reason saying bookings were down 5% for the latest period. it dragged entire sector with it. nvidia, amd, micron, applied deals, all cascading downward. we'll follow that as well. also following developments out of the administration after this big climate change bill signing that the administration says will lick inflation, get deficits under control, in the eye of the beholder but a separate measure right now they could be looking extending student loan relief or make a decision one way or the other within the next couple weeks. aishah hasnie has much more on that from capitol hill. what's going on here? reporter: neil, yeah, just two weeks left to make a decision on what they're going to do about these student loans, if they keep pausing the student loan

payments or going to cancel it. the president is riding a high right now of course but he has got this student loan situation sort of hanging over his head because as it turns out if he does anything about student loans, pausing it or canceling it could worsen inflation and could undermine his newly passed inflation reduction act. so the pressure right now is really mounting on the president to do something about student debt. more than 100 democratic members of congress are calling for at least a payment pause extension saying in a letter, to the white house, that resuming student loan payments would force millions of borrowers to choose between paying their federal student loans or putting a roof over their heads, food on the table or even paying for child care and health care services while costs continue to rise. the president has said that he would sign legislation that cancels 10,000 in debt but the nonpartisan committee for a responsible federal budget, neil, they're saying that doing

any of that wouldn't just worsen inflation, it could undermine this inflation reduction act. they say that extending the current pause through the end of year, that would cost $20 billion. canceling 10,000 per what the president would like to do, would cost $230 billion. combined these policies would consume nearly 10 years of deficit reduction from the inflation reduction act. progressives though, neil, think it could all work out this way. >> if canceling student loan debt is coupled with restarting payments, we've been in a payment pause for two years now, the effect is not inflationary. the effect is deflationary. that is millions of americans who will start making student loan payments. very much like paying a tax. it means they will have less money to spend every month. reporter: okay, that is how the

progressives see it. what will the white house do? they have got just two weeks to decide, neil. neil: by that definition, keep a program going you would never take anything away because you don't, you know, want to do anything that could hint of getting inflation back. >> reporter: then if they do it, neil, they have to have a solid reason because the reason so far has been pandemic, right? they have to tell the country where we stand where it comes with the pandemic. where are we? neil: no clear answers there, thank you, ashiah, thank you very much. federal budget vp. good to have you, mark. first of all what the president might do regarding student loan forgiveness, keeping it going for a while, not ending it so the kids have to repay the loans, inflationary, deflationary, what do you think? >> oh, it will make inflation worse. look, we started this pause when

the economy was in meltdown. the unemployment rate now among college graduates is 2%. we continue to tell them don't pay back your student debt. just spend money in the economy. of course that will increase the inflation rate. neil: okay. i want to talk about something here that, it was like abbott and costello moment for me yesterday when the inflation redaction act was deemed to be something that could lick inflation, get it under control or at least ameliorate it and then lo and behold joe manchin comes out and says this. this is from joe manchin yesterday. >> misleading to call this the inflation reduction act for americans it will not make the grocery bill cheaper, not make every day goods cheaper for them? >> immediately it is not but we never say anything happen immediately today, turn the switch on and off. neil: be that as it may they did trumpet this as something that would reduce inflation and maybe over years it will do that.

the cbo and early reads on this are that that won't be the near-term case but what are your thoughts on this? >> i think what the inflation reduction act can do, especially along with permitting reform, smart manchin and schumer agreed to make the federal reserve's job a little easier. it will not bring inflation down by itself t could make it easier for the federal reserve to do it. what i believe we'll turn around completely undermine that with things like student debt cancellation, do worse toe inflation than the inflation reduction act does to improve it. neil: when elizabeth warren was talking about the possibility you start forcing kids to repay their loans that will be depressant, something that would be deflationary, you just don't buy that? >> i guess compared to what? continuing to pause is inflationary. ending the pause but canceling debt is also inflationary. the second one is a little bit less inflationary.

if your baseline nobody will ever pay student debt again, making people pay student debt will reduce inflation. that is not the right way to think about it. people are supposed to pay their debt. one of the key features of debt, you pay it back. neil: there is a concept there. let me ask you a about a backdrop for all of this. of course the argument here you will lower drug costs specially those on medicare can say about pricing them, i will take it as a given, accept the administration's word that part of the population will find relief but offset by other inflationary pressures, it might be at best a wash when all said and done. what do you think? >> well i think there are elements moving in both directions but deficit reduction is good for inflation. deficit reduction and reducing peoples prices that they face is also good for inflation if it feeds well into expectations and the bill does that. lastly, it is not part of the

bill but in combination with the permitting reform. permitting reform should reduce inflation. i don't think it is large but when you look at all of that together, it should be helping to make the federal reserve job's easier in terms of fighting inflation. neil: that is an interesting take. thank you very much, mark gold wine following all of this. by now you know what happened to liz cheney. she was clobbered and willed soon be wyoming's former congressman. not promising to do whatever it takes to block one donald trump. exactly how would she do that? after this. ♪.

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♪. neil: all right, liz cheney as expected stating the obvious by conceding it wasn't even close, she lost but does she have an afterlife in the political world? rich edson with more from jackson, wyoming. rich. reporter: good afternoon, neil. she at the very least announced one. she will start an organization to insure and educate people to prevent donald trump from reaching the oval office again.

that is something her spokesperson told us this morning she will begin doing in the next several weeks. that effort will be outside from the united states congress. she lost her primary here. polls were barely closed an hour last night, she already called harriet hageman, her opponent to concede. at an election night event near jackson, cheney two years ago she won the primary with more than 70% of the growth. the path was clear this year to retake her seat, that nomination again. the only thing she had to go along with the idea that the election in 2020 was stolen t was a lie for her to do that. it is unclear if she will run for office again. she spent half of $15 million she raised, whether she uses money for presidential run. she told the "today" show this morning. it is on her mind. >> that is a decision i will make in the coming months. i will not make any announcements in the coming

month. that is something i'm thinking about and i will make a decision in the coming months. reporter: trump backed harriet hageman is nominee in a state where 70% of the voters supported trump. hageman said vice-chairing the january 6th committee a major part of her campaign. >> wyoming wants a representative tonight for putting america first, wyoming first, put you first and i am that representative. [cheers and applause] but i did not do this on my own. obviously we're all very grateful to president trump who recognized that wyoming has only one congressional representative and we have to make it count. reporter: cheney still has a congressional term. it expires in the beginning of january. she is still the vice-chair of the january 6 committee. that group's report is expected as early as next month. neil? neil: rich, thank you very much.

sarah westwood of "the washington examiner" with us right now. sarah, if she is entertaining thoughts of running for president would it be as soon as 2024? what are you hearing? >> you know the further out she gets from the blast time she held office the less that becomes. amount of attention she is getting now is laughable prospect. what would her constituency be if she runs for president? republicans don't support her. look at her margins she lost by. she represents a wing of the republican party that is shrunk dramatically. it is basically inconsequential. democrats she is useful to them, a republican congressman to hear. even democrats don't seem like they will support her. she is still a conservative socially, fiscally, republicans

want nothing to do with her. it is hard to see where her voters would come from like d.c. cocktail parties where she is very popular. neil: she was conservative when nobody was. you can make the argument much more conservative than donald trump. her challenging trump changed all that, i get that. but, could she prove to be a spoiler in a race? enter a race just to prevent donald trump from getting a nomination? >> that is something she could possibly do, right, in a primary, siphon votes away from donald trump but i actually think if someone would be a spoiler for donald trump more likely it would be someone who more closely aligns with donald trump. the types of republicans who might divert their votes to liz cheney in a primary are the types who would never vote for trump in million years. votes donald trump had negative had chance of winning. somebody like ron desantis would have a shot getting votes in play, more of a spoiler. the role she wants to play in the republican party is one that

no one is asking for. she moved on the brand from neoconservatism, unwilling to embrace populism or asked questions why her voters support trump. neil: she did support a lot of measures he enacted as president, that is where she drew the line to your point on the whole impeachment thing, i get that. i am wondering now, no doubt this is the party of donald trump. he wields tremendous influence, better than 92% of his picks have made it. he extracted revenge against all the republicans in the house and the senate who voted to impeach him or at least take most of them out or force their resignations. so is it his party now? is it safe to say, his ideas notwithstanding, it is more than that, it is his party? >> i think there is certainly a cult of personality driving a lot of the continuing feelty to trump among voters but i also think in the particular case of liz cheney she allowed herself

to be totally consumed by, used by the d.c. establishment that trump took on and that is why wyoming and voters all over the country liked trump. he was willing to take on the established order even within the republican party, free traders, warmongers, he put an end to that being the dominant ideology in the republican party. in liz cheney's case, not only took on trump but she clung to a platform in the republican party that has completely lost favor and support. so i think it is also about the old ideas that she represents and voters being tired of the established order. neil: you and i can differ on the particulars you just said. i do find it curious though seven out of 10 republicans to this day don't think january 6 was such a big deal or for that matter, that the election was honestly won by joe biden. what does that say? >> i think it is a lot of

tribalism, right? voters have, after the four years of, really turbulent coverage, to put it charitiably of donald trump there, they're reflexively rejecting anything they're being told from the same people who also accused donald trump of being a tool of the russians for example. so obviously january 6 was a travesty for the country but i think there is a lot of voters really distrustful of anything democrats and media say about donald trump. neil: sarah, great catching up with you, good seeing you. sarah westwood of "the washington examiner. wyoming has been a lot in the news not only because of the liz cheney thing and donald trump forced, shall we say departure from the political scene for the time-being but elon musk in middle of this shows up in wyoming. what is this about? ♪

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neil: the world's richest man in the epicenter what was the latest political battle. elon musk meeting at a republican retreat sponsored by kevin mccarthy. the latest what went down with kelly o'grady in los angeles. kelly. reporter: hey, good to see you, neil. no shortage of activity from elon musk last night. he was at a leader gop kevin mccarthy wyoming retreat with party supporters and members. this on the heels of the billionaire embracing the republican party, becoming increasingly more vocal on political beliefs on twitter. musk revealing on twitter he voted republican for the first time. before the gop fund-raiser began, he took to twitter he considers himself a moderate. to be clear i support the right after the republican party and right half of the democratic party.

mccarthy publicly refused to confirm musk attendance, that the two had a fireside chat. the billionaire was seen taking selfies with attendees on social media after. the mccarthy connection isn't new. he has spacex operations in the gop leader's district. the leader donated 128,000 with committees associated with mccarthy. the gop is big supporter of east maker with musk takeover and professing free speech. many republicans are hailing his vision as a key to democracy. speaking of takeovers i want to make note that he made waves about acquiring manchester united on twitter, followed up with a tweet on twitter this is long running nokia. i'm not buying any sports teams. more than a few uk fans woke up disappointed this morning. he got key documents in the twitter trial. we can't forget that saga.

amaze me how many new stories musk is connected to. neil: throw out the comment on manchester united, all of sudden people say are you buying the yankees, buying the mets. i don't know. kelly, thank you. robe luna, surevest, luke lloyd strategic investments. this elon musk, the fact he is at this republican event he might be tipping his hand where he stands here. how much of a force do you think he could be for republicans if that is the case? luke, i will begin with you. >> yeah. so i don't want to speak for elon musk but you know i do think elon and i think a lot alike when it comes to politics. elon musk doesn't have political views. he has logical views and right now throughout my entire life really republicans have been the most logical party out of the two. really i think elon musk is a libertarian at heart.

who believes the government should be an umpire in baseball game not a full-time player in the game. back to our founding, look back to the founding fathers of america. the united states was founded because of taxation without representation from great britain. right now we're essentially giving, we're getting back to that. all of us basically give half of our money to the government, income tax, sales tax, property tax. there is essentially a tax for everything. right now 30% of americans gdp is spent by the government. imagine if we gave 20% of money back to the people, like musk muck to create jobs and innovate? democrats want to restrict us more to stop the free markets from operating properly. elon musk wants a free market system as close as possible to change the world. republicans are the closest party to that. i'm not saying they are, they're still very involved but the closest. neil: it is pretty clear to me, rob, the president, former president trump and elon musk had a fractious relationship

here. didn't help matters any when musk said of the former president, you're done, move on. so where does this whole thing go? >> yeah. when you got two big egos like that that is bound to happen. luke made some really, really good points but i will simplify it even more. capital is going where capital is treated best. that means jobs, that means new factories. so that is really what you've seen elon musk do, back to luke's point of just looking at the facts, making decisions based off of what is best for your business. that is really what we're seeing. i think these next elections we'll see in the midterms are more about the reality of what has gotten done, where are we at two, three years ago, where we're at today. if you're happy where you're at today, i submit most people i'm talking to are not, stay where you're at. if not you need to start thinking like elon musk does, getting on one side of the boat to move the needle forward.

neil: quickly, gentlemen, i promised technology talk but i married it to the elon musk thing critical of raising taxes on millionaires and companies, and the new tax that would take effect next year. that is one of the reasons that technology companies disproportionately participate in buybacks, luke. i wonder if he is sending a signal here this will be a battle cry? >> i think he is. elon musk is one of the smartest people in the world and one of the best miss men. if you look at whole inflation reduction act, all the things congress is trying to pass right now, it is all going to hurt all these big companies. the democratic party has essentially gone after the big-tech names, even small business owners. every business out there, but what democrats usually don't understand is that that trickles down, it does. it goes to the employees. it makes things more expensive for people. gets passed on to the consumer. i think elon musk is truly worried, not selfishly, i don't

think worried for himself or his businesses. i think he is truly worried about middle class america. he understands how the economy works. he understands how capitalism works. we think we live in capitalist society. one of the biggest capitalist societies in the world. we truly don't. we're more socialistic than we realize. neil: i think he looks at his own bottom line. he wouldn't be human if he didn't. rob, let me get your take on technology, this warning at least analog devices was seeing a slide in bookings, that has hit the entire chip sector and i'm wondering whether it is a cautious reminder of technology stocks from the lows, there is not a guarranty it continues what do you think? >> we talked a little bit earlier, neil, market last sixeight weeks up 15%. look at stocks like amazon up 40%, roblox up 50%. i could go on and on, a lot of

these technology stocks up very high and look we've got a lot of moving parts, a lot of uncertainty, a lot of volatility in the market right now and i think when you get to this level of uncertainty the technicals start to play a much larger role what will happen with stocks and the relative strength index just monday turned to overbought. we got fed meetings today. oh, big economic summit out in a place jackson hole, wyoming, where we have news next week. i don't think it has to do with analog or technicals. it has to do with events coming up. people are positioning their portfolios ahead taking profits. neil: got it. gentlemen, thank you. outside events can affect the markets, in fact the globe. talking about the 500 or so chinese sorties at or around, sometimes over taiwan. that is just, in just the last couple of weeks. what could possibly go wrong, after this.

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♪. >> welcome back to cavuto "coast to coast." i'm jennifer griffin. on land, air and sea over 5000 soldiers from the u.s. and 14 allies held joint combat drills near indonesia near island of sumatra that ended sunday. china continues to assert itself after second congressional visit to taipei in two weeks. this was the largest joint exercise between the u.s. and the pacific allies since the drills were established in 2009. in the past 15 days since speaker pelosi's congressional visit to taiwan china has flown 500 warplanes near taiwan. this taiwanese airman explains what he is seeing from his cockpit. >> the tension between the taiwan straits is getting higher. it is obvious and still what we trained for. this is what we're preparing

for. our frequency to scramble is getting higher. reporter: this taiwanese f-16 pilot says he welcomes the chinese flight as opportunity to train. the chinese ambassador to the u.s. met with reporters in washington and blamed the u.s. for provoking the taiwan question. the admiral said his goal to deter china from changing the status quo. >> i spend every waking minute, doing everything to insure we are preventing conflict than encouraging, that is my commitment to all of my partners every day we try to prevent war. reporter: meanwhile the u.s. carried out an intercontinental ballistic missile test which it had postponed after pelosi's visit. it is exploring a long term missile defense plan in the indopacific by establishing a command-and-control center in the u.s. territory of guam to

protect the u.s. from missiles and hypersonic weapons. >> the threat is real and we need to have as much decision space as possible to protect the country. reporter: in a new development we have just learned that chinese troops will travel to russia to take part in joint military exercises that begin august 30th and will include india and belarus. china's defense ministry denied it had anything to do with the u.s. visit to taiwan or russia's ongoing war in ukraine. neil? neil: thank you very much for that. jennifer griffin. want to go right now to kirk lippold, former uss cole commander what he makes of this. commander, when i heard this, china had better than 500 sorties in, around, sometimes over taiwan depending who you believe over the last couple weeks the heightened tensions right now having a battleship ending up in she lange car, the indian government is not too happy with that. this is getting pretty scary what do you think? >> i think what you're seeing, neil, is a buildup by the

chinese as they're asserting their authority to go to what they call the first island chain out to taiwan, the second island chain out to the dash nine island chain that they have built up and militarized in violation of international law. and i think really what companies need to be concerned about today is what is the vulnerability? what do we for see as the timeline? and when you look at what we're reading today president xi wants to get reelected this fall. he will do a repurge of the communist party. he will begin to focus efforts. most people are beginning to estimate there could be an invasion in taiwan within the next 12 to 18 months. so people need to start thinking through the what ifs of that scenario. neil: i would imagine, including multinational companies, not just u.s. multinationals that have significant business interests there, make a lot of goods, rely on a lot of activity from there, that a lot of them are rethinking their strategy. what do you tell them?

>> well, absolutely, neil. not just the united states but there are companies around the world that have very strong trading relationships with china and despite what the chinese communist party is doing in concert with the government and the military some of them need to start thinking a little bit like the u.s. department of defense. they need to do war gaming. they need to think through the what if question. what if there is a conflict? what if we do witness a build-up? what if we do start to see the taiwan strait shut down? how will we react? what do we do with our people and industries and how are we going to deal? a lot of them have experience because of the supply chain issues we dealt with as a result of covid over the last few years. now they need to take it one step beyond and actually create a small staff that can be able to focus just on these types of things. because if they don't think through the what if question, when it happens and it is staring them in the face, they're going to be caught

flat-footed. that will cost not only those companies but consumers as well. neil: you know, commander, it comes down to what we do if the chinese make good on the threats that you seem to think they will make good on, if they do attack taiwan and i'm wondering, you know the middle east strategy far better than i do, commander, maybe they counted we don't do anything, we'll huff, puff, sanction them up the ying-yang but won't do anything more and they're willing to take that calculated bet, what do you think? >> well, neil, the best deterrent against a conflict is to have a strong diplomatic, economic, and military posture. right now the united states along with other countries, especially those within the region, need to really focus on that effort. neil: but that means that means making it very clear, right? we have to make it very clear, you do this, this is war.

is that what we have to say? do we have to make it clear? you invade taiwan, this is war? >> i think, neil, what we have to do is lay out what the consequences are going to be for china if they do that economically, diplomatically first. neil: they don't think we'll follow up, sir, they don't think we'll follow up on the war part. >> if they don't think we're going to follow up on the war part we're already losing on the deterrent front and chin is going to move, and companies better started planning for the inevitable. the united states i will believe give taiwan whatever defensive measures necessary to protect the island. they need to make the chinese realize, the cost of them, cost of russians going into ukraine will be unacceptably high. they will continue to bleed out. that china's economy will suffer so badly as a result, that the government of president xi will not survive because they will do anything they have to preserve the chinese communist party. one of the principle threats,

neil, out with that dash nine lines. those militarized island, make them and hold them at risk and vulnerable which collapses the defensive perimeter of china all the way back to their shores. neil: all right, commander, we'll watch it closely. always do. thank you for your service as well, my friend. kirk lippold, the former uss cole commander. one thing when tiger gets livid over liv, but much more impactful two new jersey congressman say liv, you're not welcome in the garden state. after this. ♪. y mutual customizing your car insurance, so you only pay for what you need. if anyone objects to this marriage... (emu squawks) kevin, no! not today. only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪

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>> livid over liv, the saudi backed golf league is getting tiger woods involved meeting with major pga players let's stop this thing once and for all. in the middle of all of this a pair of new jersey state lawmakers are working on a plan that anything liv plans to do doesn't happen in the garden state, including the bedminster club where the former president donald trump had hosted a liv event at his own golf course. get the read from from doug eldridge sports agent extraordinaire.

doug, this battle against liv, lawmakers a ban anything to do with new jersey, is it overkill or what do you think? >> well you know, mr. cavuto up to the point it has largely been a pr battle. we're seeing that -- transition. so a potential policy battle. jury is out whether this is overreach this is a bold statement bit new jersey lawmakers say the least. neil: what they say you can't play here. i always wonder whatever peoples feelings about the saudis and blood on their hands and killing of an american journalist, what have you, china is no saint yet the pga has strong ties to china. leaving that back and forth aside, does this risk looking like pile-on to you, that going a little too far, let the free market decide whether money talks and all the other stuff can walk? >> well, three things, number one such a coincidence that

commander lippold would be on before me. i'm talking to you from the largest veteran, military spouse met working resource event in the country. last night we had a dinner with a table full of decorated combat veterans. this topic came up. what is your sentiment, liv? 25% were vehemently against it. [inaudible]. other 25% had healthy sentism. vocal 50% said free market -- get 4 million per golf i would do it. context of moral high ground, who has lefty here? those that back the chinese industry or those that back the saudis? we discussed this before. nba lost $400 million by darrell morey's tweet -- neil: i'm jumping on. break is coming up. not resolved yet. we'll have more after this.

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or send it to a cardiologist for review. kardia can do all that? all that and then some, greg! kardia also gives you access to heart health reports and automatic ekg sharing. what next? let's get some fresh air. been cooped up for too long. yeah... ♪ kardia mobile card is available for just $99. get yours at kardia.com or amazon. ma serial girl ♪ living ♪ in neil: madonna was raising the skids for the retail conundrum. we love to shop. even though that is my version of hell, a large mall walking aimlessly around but i digress. the fact of the matter is despite the mixed retail news what is bearing out his people

are not buying as many goods but are still shopping and the material instinct, getting some stuff we need another stuff we don't need is a good fallback for the economy and also looking at something different going on and how various manufacturers are vying for these changes including a chat with the ceo of dodge. out of the musclecar business or so it would seem and going electric. he is here, the ceo of dodge. look at the latest with kelly o'grady in los angeles. >> reporter: before we get to retail numbers i want to look at the stock market. sliding a bit today led by a tech selloff as we await the fed minutes, also reflecting tough retail numbers this morning. the retail sales report was

released today and activity was flat, wall street looking for 0.1% increase in the top line numbers so a slight mist. the retail numbers are not adjusted for inflation. to give some context falling fuel prices held back, gas sales and consumers turn to food shopping, shoppers used gas savings for necessities. another big loser was department stores and that came through loud and clear in target earnings, the retail missed expectations and reveals quarterly profit 90% from a year ago as unwanted merchandise weighs on its bottom line. i want to turn to the treasury yields, the tenure has been rising but the 2 years higher. what we have here is an inverted yield curve when long-term bond rates are lower than short and let's bring up the spread, when this dip negative it is a leading indicator that recession is coming.

every recession has been preceded by an inverted 10 to 2 year yield and that curve has been deepening causing investor concern to grow. switching gears the housing market is cooling-off, total mortgage application volume fell 2% to 3% from the previous week, demand stands at the lowest level we've seen since 2000. the 30 year fixed rate has come down but homeowners are grappling with inflation and concern home values will start to fall and that is plaguing sellers, we are seeing price drops, we are following all this. neil: the consolation research ceo, shoppers are still out there and the busy back-to-school buying season spending more than they did last year, the price of things

they are buying cost more than last year but what do you make of it? >> we are spending the same amount but getting temper 20% less and what we are buying is changing and that's the thing, we are under attack from interest rates, inflation, inventory, all these affecting retailers and the retails bifurcating into high-margin luxury goods and high-volume low-margin commodity goods and we are seeing that in almost every part of retail, people are not buying luxury goods, the low end we are seeing a lot of shift, the other piece that is troubling is credit card debt, the biggest increase in 20 years in terms of increase on credit card debt, 5.5% increase from the quarter before adding one hundred billion dollars in credit card debt, 233 million applications for credit cards going on so we are financing the inflation through credit card debt which

is troubling. neil: my wife applied a million times, might have skewed the numbers. i love your insights, it is getting a drumming today but has come back in the last couple months and i am wondering if any of this is at risk or if we moved too far too fast? >> the way to look at that is your in the middle of a recession does the growth come from consumers or other sectors, it will come from tech focused on 20% to 30%. look at apple stock, we are getting close to the highs again, sitting at 173 and that is interesting, people, they are adding more services and tech companies are doing a good job with digital monetization, the retailers doing well but it

comes down to do you have a digital platform, digital monetization strategy and how far you moving on that curve? neil: into october when apple comes out with its new fall offerings microsoft does the same, samsung, will there be the consumer appetite for those items? they don't come cheap? >> they have big cycles so the next version of the phone has a refresh cycle. if you are just relying on phone sales you will fail like one trick ponies or relying on subscribers, that's what apple has done a good job with, building services revenue over time and you need multiple sets of monetization. it is the services, memberships, community subscriptions and the ads, amazon is a great example, $30 billion of had revenue and commerce engines, not just

selling goods but amazon is the number 3 digital ad player in the marketplace. neil: you need guidance on whether to buy the nasdaq 100 or stock purchasing again, you would say? >> i am a bull on technology at its because of growth rates and platform economics. neil: great catching up with you, they can do what he wants. the technology trends. not giving up on battling inflation, but calling it what it is, when i raised it with the white house economic advisor jared bernstein it got a little heated. who came up with the name for this? the inflation reduction act? everyone from the cbo says it doesn't do that. >> probably people looking at

the fact that this act will lower healthcare costs. neil: it's not going to help in any other area, a sharp rise in food prices that have not -- >> the inflation reduction act is not the only initiative we are engaged in. neil: why did you call it the inflation rejection act? some of the most -- it battles inflation it is a dessert topping. those of a certain age would know that reference but i don't know. it is what it is. hillary vaughan, no matter where she is, on capitol hill now, yesterday was at the white house, peppered officials, even shouts questions at the military guards but breaks news when she does so especially when she caught up to joe manchin on the inflationary benefits of this. what did you learn from the guy

who ended up being the reason we had this entire legislation passed into law? >> we learned that americans hoping for price relief when they go to the grocery store, going to places like target and walmart and filling up on every day necessities, those people hoping to see prices go down are going to have to be waiting a while because a lot of focus is on climate, the president yesterday when he signed the inflation reduction act into law he bragged a lot about the climate perks in this package and said it is the most aggressive action they've taken to combat the climate crisis but the bill or the law is called the inflation reduction act, not the clean climate act so there are questions why americans are being told this will reduce inflation when the nonpartisan congressional budget office says what is in it won't do that but the white house insists there are things in this new law that will cut

costs. >> tax credits and rebates at the point of purchase to buy energy efficient appliances, energy efficient dishwashers and washing machines, senior citizens, who are now paying thousands of dollars for prescription drugs and we that expense at $2,000, does that help with inflation? they will tell you that it does. >> one of the key negotiators, senator joe manchin said they never claimed it would bring costs down for people right away. >> you call this the inflation reduction act, it is not going to make the grocery bill cheaper. >> it is not but we never said anything would happen immediately, turning a switch on and off. >> reporter: people were hoping that is what would happen with passing a new law called the inflation reduction act but they will be waiting a while for something like an electric vehicle or solar panel.

you can cash in on those tax credits today but the healthcare costs are not going to take effect until next year and who knows when we will see inflation finally dropped. . 20 what i love about urea -- your reporting is you are right about this. if they had said the food inflation thing, forget it, nothing we can do about it. people would have thought may be not. and yet he was trying to swat you away, we never said that, most certainly did. >> absolutely and americans when they think of inflation they are thinking a lot of people go every week to the grocery store, that is where they are seeing inflation. there are cost-cutting measures. no one will dispute that when it comes to cost-cutting measures but when you talk about inflation people are looking at bacon and eggs, milk, things that they buy every week that are 3 times

more than they were a few months ago. neil: you are right outside the north portico and the white house knows you are there, as if someone, hillary vaughan is here, clear the area. how do they deal with that? >> they might have added a few more guards outside the door to the oval office to make sure i didn't try to chase the president down the hall on his way to the oval office. neil: i know that story, great job, hillary on. steve moore knows the building well and advised the president of the united states, donald trump, new economic advisor, all kidding aside, what is interesting about the very simple but basic question that hillary vaughan got across, that's not how this was presented. if you told us when it comes to things like food inflation this

won't do squat i think people might have had another thought about the title for this thing. >> look at the polls. i just saw i think it was a fox poll i saw yesterday that 40% think it will raise prices and only 12 or 13% will reduce inflation so the american people aren't buying this and they shouldn't. the bottom line as you and i talked about for 20 months, what launched the inflation in the first place hundred biden was the massive spending, $3 trillion we spent and borrowed last year, this continues with another $700 billion of new spending, the white house argument is that will be offset by tax increases. i make the point the increase in spending, the increase in taxes, if you raise taxes on

companies, what are they going to do at the retail level? raised the price of these things or produce less of them. i don't see any scenario that is rational. neil: this notion, and not see their taxes raised and when i brought up $85 million they are beefing up the irs to get more auditors and the rest. are you saying anyone in that room will not be targeted? that's where the money is. he said they will not be targeted. neil: go ahead. >> a lot of your viewers, and amendment on the senate floor,

they, forget which senator it was, let's have a policy that this money is not be used to audit anyone who makes less than $400,000, 50 of them voted no on that. they could have made that the policy. neil: that was shot down, but you are telling the irs, beefed up with tens of thousands of agents that they have cordoned off this group of 400,000, that group is so surprised when it turns out, the deductions or credits being scrutinized. that's going to be more than just a fox alert. >> you better believe it. the reason it is very likely the central group of people

going to be targeted make less than 400,000 because millionaires and billionaires have armies of tax accountants. somebody like bill gates or warren buffett has more tax accountants than the irs does so they can defend themselves and make sure these problems go away. if you make one hundred thousand a year or $75,000 a year how do you defend yourself against the irs? those are the people who are likely to just basically agree with the irs and pay the extra money. i came under audit when i was nominated for the federal reserve board and it was like wisdom teeth dealing with the irs. i want to remind people because this is important, when you're under an irs investigation and they make an allegation you didn't pay your taxes you are effectively guilty until you prove yourself innocent which is why it is so aggravating

when i hear democrats say if you are paying taxes you don't have anything to worry about. that's not true. you have to spend a lot of money to defend yourself against these audits. neil: it won't raise the money for the cost of beefing up irs enforcement which gets us back to widening the pool of people you are looking at their taxes. >> you know my solution to this, steve forbes and i wrote for fox news, let's just have a flat simple system everyone pays their fair share, get rid of deductions, loopholes, that is what is devious about this bill, it adds these new deductions, makes the tax code longer and more incomprehensible. neil: great seeing you again. >> flu employment for accountants. neil: we are waiting to hear what this judge will decide on the affidavit that led to the mar-a-lago rate.

it's not a given that he decides to give it to the american people. he will explain and explore after this.

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neil: ashley webster toiling away at mar-a-lago. it's a big assignment had not just to take advantage of a gorgeous locale in florida and take it easy. that would be a cheap shot. there's news following the affidavit release. what are we finding out from your herculean efforts? >> reporter: somebody has got to do it and it might as well be me. plenty of slick elation whether we are going to see the full affidavit of the government's case against donald trump tomorrow and potential violations they are looking into of the espionage act which is mishandling top-secret documents. there are three outcomes we are looking at. one, the affidavit is unsealed and fully open for all of us to view it. the affidavit is unsealed but so redacted it will be difficult to decipher or the judge agrees with the justice department, keep the affidavit sealed believing its release

could compromise an ongoing, investigation as the government argues. media companies contend the document should be open because the public's clear and powerful interest in understanding what occurred here at mar-a-lago. andy mccarthy says it is unlikely the affidavit would be unsealed for all of us to read. >> i don't think in the middle of an investigation a judge is going to release a warrant which would identify not only their grounds were for seeking the warrant but would probably tell at least the trump people enough that they would know who the informants were. >> reporter: other legal experts say it will be hard for the government to prove their case against donald trump. it would have to show intent and willfulness. negligence is not enough. case in point the investigation against hillary clinton. the next chapter will play out

here tomorrow afternoon in the west palm beach courthouse. neil: west palm beach courthouse. duly noted. ashley webster following all fat. former justice department national security associate professor of law at the university of minnesota knows of what he speaks, good to have you. do you expect the judge would release this? there are national security concerns, that's the read we are getting from the justice department. what do you think? >> it is highly unlikely as the previous speaker pointed out that the judge would release this unredacted form. it is possible it will be released in rejected form but probably so redacted it will be a bunch of boxes on a page it is not helpful to anyone. neil: could it be helpful to donald trump who has urged doing just that or is he just

calling their bluff? >> is most the calling their bluff. i suspect if the information is released it will be quite bad for donald trump. the only way it could be helpful is if it allows him to figure out who the informants are in his organization but it is unlikely the judge will grant the motion to disclose an unredacted copy. neil: hard to say in the press coverage, maybe to your point knowing what's in this thing, used anonymous sources so i'm always leery of going through that but if there is reluctance to release the affidavit it must be concern that it would compromise security details were the reason for the raid itself. is there a litmus test for releasing affidavits at all? >> there is no litmus test but

it is important to understand affidavits are not generally released before an indictment because before there is an indictment there's an ongoing criminal investigation. you don't release details to the public. it is understandable that news organizations want to know, i want to know what is in the affidavit, the part of justice is trying to prosecute this, do this investigation like any investigation and for that reason it's not surprising at all they would release releasing the affidavit and i don't thing the judge will have problems with that because it is normal practice. neil: we are watching closely. if you are betting man, the judge will not release this. >> not in a way that is useful to people who want to know what is in it. neil: that's a very lawyerly answer. thank you very much. a lot more coming up including the read from dodge which builds muscle cars and challengers, they are going to the wayside.

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neil: part of the climate change measure, inflation reduction act, a lot of allowances and benefits if you want to purchase electric vehicles but also a confusing picture, some vehicles you can take advantage of credit out there, others may be not. it is a mess but this is at a time people are looking at evs comes till concerned about something beyond the credits for those evs. jeff flock is in pennsylvania

with more. >> you hit the nail on the head, the two big concerns for people, they are one price but rage anxiety, they are not enough of these charging stations, this is an ev charging station, across 30 states but that the concern of a lot of people, the other, look at what you mentioned there which is the parameters on it and this is a good think of the old bill was criticized because rich people were getting our tax dollars. you can only buy a vehicle of $50,000 if it is a sedan, $80,000 if it is a truck or suv and can't to be rich. $150,000 in income if you're single you are single, 300,000 if your joint filing. also, final assembly must be in

the usa so by american. the could go battery materials, battery stuff has to come 40% from the us, no china, no russia, no unfriendly folks. a lot of parameters around us but back to the other concern, rage anxiety, the latest survey found if people are not buying an ev the reason is one, high cost, 48%, 44% range anxiety, for they are going to run out, 36% say infrastructure which is the same thing, not enough charging stations but you ought to buy one of these cars because you might be on board with these folks, ev owners say 95% say they never run out of charge, which i could say i never ran out of gas, 77% say after they bought the vehicle they were less anxious about

charging because they figured out where to charge it. 96% of owners with an ev said they would buy another one so we better get on the electric train before we get short-circuited. neil: these vehicles are not cheap. we will talk to a guy who runs a company where that might be changing but it is the sticker price itself that is giving people pause. isn't it? >> it is and the guys we talked to said now that you have these thresholds what is to stop the car manufacturer saying you will get 7500 anyway, maybe we could crank up the price, if our to 30,000 maybe a few extra thousand and there so there you go. i'm interested what you say to the folks at dodge, they were one of the last, sergio markey only went said to tell people not to buy our electric cars, cost me every time i build one.

neil: i might raise that with my next guest. jeff flock following that. i will raise that with the ceo of dodge who was kind enough to join us right now. good to have you. i know dodge is a late entrant in the ev arena but what seems to be distinguishing you with this crossover hornet that starts under $40,000 is you just might have found the sweet spot for potential buyers. can you tell me more? >> we actually have multi-energy platform offered in traditional ice, gas power and offer the suv. we call this the gateway to electrification because we are offering it not as fuel economy -- neil: what are you saying? >> we are positioning our

electrification as a performance enhancement which is a step above gas. we say this is a gateway toward why people don't like electrification, we will give you more performance than we ever have in the past without any of the guilt of having a large -- neil: the one touted as under 30 grand, is that an electric only vehicle. >> it is ice power in the one above that, higher urging is plugged in hybrid version. of the one the lesser priced one is a hybrid kind of like both. >> it will be both, gas engine, small gas engine and electric, both gas and electric. tonight we lunch for battery electric, only electricity. we will re-define what american muscle means with electrification.

neil: the challenge, the big muscle car a lot of people relate to, is it going? >> charger and challenger is the co--- the costar of our brand, everyone is very upset they are going away. the rules have changed, we don't want the rules to change but they are changing and we've got to work within those rules, we look at them, all the rules that are coming out and let's bring redefinition of what performance can be and bring faster more powerful muscle car, or full battery electric. neil: it's not going to make noise. it is weird, you are not going to do that. >> we will bring in the noise tonight.

neil: they are still 5 miles away and this brings the power they are famous for. >> we told everybody we won't go into this but would rather shut down unless we can come into that space, and drive like a dodge and what we unveil tonight, a lot of technology has been patented. one of those is the first ever exhaust system. it will sound like a proper muscle car. neil: i mentioned to other ceos they are getting ready for a party and guests might not come. there is a great deal of talk about these vehicles, they offer greater range than they used to but right now they are fraction of a fraction of overall car sales. growing fast, i get that but what if we are wrong on a hunch

that americans go full throttle, you and volvo and mercedes and a host of others are all going in that direction, what if the public doesn't want to follow? >> look at the product plans offer manufacturers, at up the investment they are putting into ev, half $1 trillion coming toward electrification. neil: the buyers aren't there yet. it is a single digit part of otto sales. what if we are wrong on that, and over investing on something that isn't going to be common? >> the onus is on us. infrastructure is in place. secondly, horses went way because cars were better. we need to make our evs better and gas. that the only thing that will switch consumer demand. neil: horses didn't make that

much noise when they switched but i digress. thank you very much, keep us posted on the big announcement, the dodge ceo, without the traditional fossil powered muscle. but still noise i think. ♪ ♪ schooldays ♪ schooldays ♪

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>> will come back to coast to coast. in minneapolis, white teachers will be the first to be laid off before any teachers of color under a new policy at minneapolis public schools. codex say the policy is trying to solve this, nation through discrimination but the district says this is necessary to get more teachers of color. under a new contract which is

still being finalized, if the district is forced to lay teachers off race will be the priority in deciding who was laid off and who is rehired instead of the current system that uses experience and seniority. in a section titled protections for educators of color the agreement says the district shall d prioritize the most senior teacher who is not a manner -- member of an underrepresented population to recall, reinstated teacher who is a member of a population underrepresented among licensed teachers. mps says under the current policy teachers of color are often among the first to be let go and these changes will address the ongoing effects of past just, nation by the district which not everyone is on board with this strategy including some parent to call it disgusting and are considering legal action. >> you cannot solve past discrimination with more disco nation. racism in and of itself is

evil, wrong and illegal and implies kids can only learn from teachers that look like them and it is racist. >> i think the supreme court made clear these programs violate the equal protection clause of the 14th amendment. and litigation over it. >> they heard from a number of white teachers in minneapolis are concerned they lose their jobs because of the color of the skin. we will be back with more. you'll always remember buying your first car. and buying your starter home. or whatever this is. but the things that last a lifetime like happiness, love and confidence... you can't buy those. but you can invest in them.

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every search you make,

every click you take, every move you make, every step you take, i'll be watching you. the internet doesn't have to be duckduckgo is a free all in one privacy app with a built in search engine, web browser, one click data clearing and more stop companies like google from watching you, by downloading the app today. duckduckgo: privacy, simplified. neil: pouring $80 billion into the irs to beef up enforcement and i'm thinking of myself, $80 million, you have to pay that and then some from american taxpayers. taxing the rich more going after deductions won't do. is it fair to say the middle class will in fact have -- >> nobody under $400,000 will

see their taxes go up a penny. how could can both of these things be true? the commissioner of the irs has said, i am paraphrasing, the new enforcement dollars will not be spent on increasing audits of anybody about $400,000. neil: a wasp intervened to try to sting jared bernstein and get him off the year. the economic advisor -- $400,000 and under crowd will not be affected by scrutiny. that accounts for close to 60% of all taxes collected so your siphoning them off and we are not included in this. fox news radio and much more, funny guy as well.

what the white house is trying to say, only rich guys like you should be worried. >> everyone is getting audited. the reason the hornet attack bernstein is -- on hornet tables. the hornet made some stock money in years past, didn't report dividends. let me give it to you as the common man. i have been audited three times since 2,009. my first audit came when i was a cabdriver in 2009, we declared, don't mean to brag but i did declare $21,000 worth of income of that year. calm down, ladies, and they thought how are you getting by on such low income and i had fuel receipts to get through it but let's not act like it was a walk in the park but after dark in central park when you get beat up for going there, of

course they are going to come after us because we are 60% of the tax base number one, number 2 the middle class when it comes to the irs we are the opinion out of. if you hit us money flies out, if you hit the ridge and accountant flies out and after that a lawyer flies out. they keep framing this as if everyone who is rich must be a tax cheat which i don't appreciate the class warfare because rich people pay accountant so they are not tax cheats in my opinion. neil: what is weird about it, if you're going to stick to that, take the -- will not be scrutinized even though the cbo has been saying they could be scrutinized for $20 billion in revenue, you can't cordon them off.

whether you are rare very rich or not that bears watching so if you are saying were going to let them get away with what we are sure the 1% is doing day in and day out, that is sending a signal too. >> to some extent i understand why they wouldn't include the republican amendment that would have made them declare they wouldn't audit anyone under $400,000, there's chicanery but the bigger picture is 87,000 irs agents are coming to town, don't care of 20,000 our replacements and 3 are just weekend warriors, the point is you bring in agents to audit people. if i come home tonight and my son has 80,000, i assume there's a keg party at my house when i go away this weekend, that is where you use the agents for. neil: i am sure you know already quite a few irs agents, keep talking.

when you pour that money, you want it back and then some, that's what is going on here but that's something i thought was something, the assumption, the rich aren't paying their fair share and get away with murder and actually croaks, that comes through loud and clear. even to the extent of saying companies that have not paid taxes, right's allowed under this, paying a lot of people and those people, they are framing it as they are cheaters, not to be liked or trusted and coming for them. >> it is very un-american, democrats like to demonize prosperity, people don't come to vilify the rich, we want to join them, nobody migrating to this country right now going i hope i can be poor, they are already poor and that is why they are leaving and coming

here, this is supposed to be a land of opportunity, you are not supposed to become a bad guy but that's the reality, we are trying to eat -- but they are making 20 one-8, still going to get drugged in for an audit, they keep trying to defend this by saying audits will increase relative to previous years which is fine print. neil: understood, i want to make sure i get that. that is a great read on it, the best read i have seen, money guys, he just printed it in a way people relate to and get scared about, more after this. leon's saving up for his first set of wheels... nice try. really? this leon's paying for his paint job on the spot... and this leon, as a chase private client,

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neil: all right. we have now cut in half the 300 plus point decline we had going into this show. right now the dow down about 162 points. nasdaq still under pressure show. here is charles payne. hey, charles. charles: it is called the "cp effect." look at the next hour. neil: got it. charles: this is "making money." the market is in a holding pattern. that could change as investors digest the fomc minutes out just now. by the way we have brilliant guests to go over it and understand it. jim bianco, art laffer, danielle dimartino booth, plus market all-stars including gary k, phil blancato. the big debate, is this bear market bounce or a new bull market? the presid