you've got to survive first and thrive second. along the way, you keep learning. outside it's been summer but in the market it's been a brutal winter for investing and all that will change. hang tough, keep learning, i hope you keep watching the show because we've done extraordinarily well in the ratings, and i want to thank everybody out there and tell your friends about us. in the meantime, here's cheryl filling in for liz claman for the next hour. liz: didn't know you sang on television it till today, charls payne. we begin with this market alert, everybody. we have another day starting the show across the borderline after stocks saw their biggest three-day decline since mid june. dow down 216 and s&p down 49 and these last days of august sucked up any hope for a summer rally and all the indexes are closing down about 3% or more for the

month. now, while august has not been rosie, things are looking up from there. june lows up more than 15% since then. still, two of the sectors of the s&p set to finish the month in the green, that is energy, that is utilities. now, with healthcare and information, technology demolished down more than 5% in august. healthcare only s stock in the green is amgen and a lot of stocks hit hard in the month. at least in the month, it's been good for treasuries. we'll take that; right. with the two year at highest level since 2007, rate hikes sensitive bonds have benefited from the constant back and forth. that's made the market so volatile. investors wait with the federal reserve next move will be more hints today on that. members have been offering hints here and there, but we heard from cleveland federal reserve bank president loretta mester

and sees interest rates rising higher before the fed eases off echoing chairman powell they'll remain high for some time. she's talking 4%. that's a little bit different and a little more bearish than we've heard from other fed members. so will the uncertainty calm down next month's trading? or is it going to be choppy seas until the fed makes it official? that call will come on septembe. let's ask our writer as we've got fidelities john gagliardi and teddy. teddy, volatility is the name of the name and you've been sitting in cash, are you considering getting back into the market? >> i will say this, cheryl, every time we stuck a couple toes in the water, we've gotten burned. the answer is i think cash is still king. the best trade we've made probably since last march, july aside has been the three or six

month treasury. it's just very difficult, you know, we had a good month in july in the first couple of weeks or august were pretty good, as soon as we existed earnings reporting period and the focused return to the same old problem, which is inflation, the fed, and the direction of interest rates, that dynamic has kind of taken over the equity markets again and we just kind of are in this dull soft sand water torture day after day of no place to go and trying to do something, it seems you're wrong. till something changes and the market senses that, i still think cash is the place to be and in particular the three or six month treasury. cheryl: yeah, john, you say the fed isn't done with us yet. eerily you may be correct based on me ster's comments this morning. this morning did not look like today and this afternoon does. this point, any move above 4%

for interest rates, the market right now only sees a one in three chance of that happening, but she came out and said that's where we're going to be sitting in 2023. that certainly has hurt sentiment today. >> yeah, this august has been like a scary movie. it's not even october, it's august. just when you think the movie is over, jay powell's hand jumps out of the grave and grabs were ankle and says 2%. it reminded us he's not done with us yet. there's another chapter still in the down trend but to be fair, this has been an orderly and very normal looking cyclical bear market. it's doing what it's supposed to do. it's correcting lower highs and lower lows, and today righted now you can get the s&p 500 as a 17% discount. for our investors out there, that's a bargain. cheryl: yeah, john, i think a lot of investors are looking at that where we're finishing the end of the summer months labor day is this weekend, obviously

when people come back next week, it's o kind of that fresh start to look at the markets, maybe volume will start picking up. i want to stay with you on that because, you know, if we get more quantitative tightening and we believe we will, a strong chance we'll get a 75 basis point hike in the september meeting, john, what sectors do you say would benefit from tightening? where should we be looking if we're ready to get in? >> traditionally, and we don't know if this will work out but traditionally the two sectors that lead the way in quantitative tightening are banks and energy. we've seen a lot of energy but banks are holding their own despite all the things that we hear and despite inverted yield curves, banks are holding on. the breakout in xlf in 2021 is in breakout territory and we're holding on to the highs with a mild selloff and it's look pretty interesting. cheryl: john to your point, and i need to move on, but banks

make money in a higher interest rate environment and we know that and we know the consumers because we're leading into many and many believe we're in a recession and they're dipping into their savings rates and we have that data and that's happening and good for banks that people start using their credit cards more. i got to ask you about the jobs picture, teddy. we got adp this morning and it was a big miss, a 50% haircut from the estimates and looking for $2288k and came in at 130,00 private sector jobs and the market was looking at this number today because 80p has are configured how they collect data to match the government report we'll get on friday. does this signal to you we'll get a rougher jobs report come friday than we're expecting right now? >> well, yes, cheryl, listen. by all historical standards, we are in a recession so the jobs, the jobs numbers are going to reflect that. you know, the problem is we all tend to live minute to minute, second to second if you will and in terms of revising numbers,

there's nobody better at revising numbers than the government. i mean, they spend their whole life giving us numbers and coming back one month or two months later and revising those numbers either upward or downward. i would suspect that the employment numbers are going to deteriorate as we move forward. listen, the fed is raising rates, they're trying to deal with inflation. the goose that lays the golden egg is the economy, and they're basically going to kill the economy by raising rates. this seems to be their goal whether it's the right thing to do or the wrong thing to dorks that remains to be seen, but that's the project reigns leading that we're on so the job numbers deteriorating shouldn't surprise anybody. it goes hand-in-hand with the slowing economy. cheryl: yeah, again, we'll get the numbers on friday where the market -- well, the expectation 300,000 jobs, 3.5% unemployment rate. i don't know. we'll see a bit of downside to that. we shall see. john gagliard and i recollects

teddy weisberg, thank you as we're monitoring the market. we have 53 minutes to go. we're looking at one key stock now and it's the stock of the day, shares of bed bath and beyond falling beyond the $10 threshold today after the embattled retailer announced a plan to rescue the struggling business. the plan is interesting. it'll include closing 150 stores, laying off 20% of the work force, securing $500 million in new financing, and a secondary stock offering. today's announcement placing further scrutiny on gamestop chairman ryan cohen's move to dump his 11% stake in the company two weeks ago. charlie has been following this on twitter. is this regulatory trouble for cohen, do you think? >> i would be incredibly blown away if they're not kicking the tires here.

i'm not saying ryan cohen didn't do anything wrong. i don't know. i'm not inside his brain cells like when he planned to sell. i mean, you know, his lawyers tell us that he filed all the paperwork and told us exclusively and my producer they've not heard from the sec but clearly when you sell -- you take a big stake in the company and get three board members on it and before all this stuff really starts hitting the fan, you unload your shares and the stock goes down and announce a major restructuring is what they're doing now or a major business plan is what they're doing and looking to basically refinance the debt or -- cheryl: layoffs and closing stores. >> that's something that always triggers a kicking of the tires of the sec. some of this stuff is hard to prove. here's why, you got to think that the minute he sold the stock, the minute before -- he sold the stock because he knew that all the stuff was going on

and that's the only reason why he sold the stock because he knew they need an e-mail, they need maybe the conversation, they need something if that's -- if that -- barring that, it's him saying i felt like selling. cheryl: or the other side would be the sec going you knew this was going on and you got tipped off. >> where's the evidence? cheryl: to your point. that's the question. >> listen, we've spoke with so many lawyers, every lawyer we speak to and these are real corporate lawyers that deal in white collar crime. yeah, the sec is looking at it. what's the chances someone will be fired? it's hard to figure out. by the way, here's something where -- just so you know, there's so many gray area in these things. cheryl: it's hard to prove. >> suppose he thought in his head that he had no knowledge of any of this, this thing just sounds like a crummy business now. cheryl: he walked into a store, charlie and went well, there's no customers. you know, too many people working here. >> now i'm selling. cheryl: yep.

i hear you. >> it is possible. i'm just saying these insider trading -- there's no insider trading law we should point out. it's done by court precedent. the court precedent is somewhat hazy or there would be a lot more people in jail for insider trading, you've got to prove that the information that he used to sell that stock was stolen from bed bath and beyond shareholders. it was misappropriate that had he knew -- now, he's got three board members that he appointed and maybe they tipped hip off. you've got to prove that and if he did that, it's misappropriate rating of information that's owned by the company and the shareholders, and that's classic insider trading. but proving that is a big thing and maybe he just had a hunch that things were going to get bad. who knows. again, his representative tells ellie 2340 calls from the sec. cheryl: just speculation at this point, charlie. all right, certainly something we'll watch and the stock is

reacting to it. if you think about it, electronics in particular, labor day, great time of year to get electronics, even at bed bath and beyond. just thinking. >> trajectory of this stock, which is why all the tags -- tongues are wagging is very interesting. he's in it, shoots up, get the board members then boom. then, you know, i think he made a filing that said x that he owns x amount and literally after that filing he sold. it was a very strange thing, you know, turn of events. again, not saying he did anything wrong, i'm just laying it out there. cheryl: throwing the questions out there. charlie, thank you very much. good to see you. all right, well you've heard about t it, the gr great resign giving opportunities more opportunities and now it's being called quiet quitting and madison alworth explores the phenomena giving executives

searching for solutions. we're down by 150 in the dow and down by 264 so we're decently off of session lows but have a while to go. "claman countdown" coming right back. ♪

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i've lost over 22 pounds with golo in six months and i've kept it off for over a year. i was skeptical about golo in the beginning because i've tried so many different types of diet products before. i've tried detox, i've tried teas, i've tried all different types of pills, so i was skeptical about anything working because it never did. but look what golo has done. look what it has done. i'm in a size 4 pair of pants. go golo. (soft music) cheryl: companies big and small gearing up to bring employees back to the office after labor day and some employees are resisting. they've gone comfortable working remotely during the pandemic. they love their pajamas and their lunchtime workout yoga classes. gallop interviewed over 60% of workers and they'd be extremely likely to look for a new job if

their employer didn't offer at least partial remote work. now there's new buzz words like quiet quitting and quiet firing driving hr managers bonkers. madison alworth joining us live from the fox business news room to explain what the terms mean. madison. >> hey, so quiet quitting has been a movement on social media with employees doing less work and bringing home the same pay. here's the thing though. some of those employees are facing the consequences and nearly half of workers have seen quiet firing happening at their houses and that's loosely defined as when the employee does not get raises and loses responsibility and is generally passed up for any sort of advancement. the hope is that the employee leaves on their own. both quiet quitting and firing happens when the employee is not engaged, which 54% of the youngest workers out there say is the case. some of those workers will

choose new jobs and careers, but those that choose quiet quitting, experts warn it's not only going to put you in danger at your current job, but could have longer term effects on your career. >> the thing about quiet quitting it's intentional and voluntary, it's not like burnout which is involuntary and you can't control it. this is a choice. you are creating this cognitive dis-dis-dense in your own head d thinking you'll slack off in ways you don't notice. >> gina and others argue it's dangerous to lean into that unhappiness and doesn't solve your current problem or help with future jobs you might like more. cheryl. cheryl: madison, i have to say, what's interesting about this is that generation, i don't think they've really -- they weren't working during the 2008 financial crisis for example. they missed that. they missed the .com bust that happened in the late '90s and

the other part of this, we know that wal-mart, peloton, bed bath and beyond, all announcing layoffs. so when those layoffs really begin in earnest in the fall, isn't it these workers that will get thrown out first? >> right, think about quiet firing is kind of just slowly pushing out hopefully these employees. there's also real firing, which we could see and i'm in that millennial group, cheryl, i've heard from friends in remote jobs that would look for other jobs if they're forced to come back. i have a friend that is quiet quitting but it's because of the environment we've been in for so long. the labor market is strong, we have options. that does change if you start to see widespread layoffs, if you start seeing competition for roles within your company itself. no one wants to be quietly fired and that could be a remedy. for now you still have options, which is why people can stay at home and can quietly quit. cheryl: private sector jobs cut in half this morning from

estimates this morning, madison. i don't know. i think the writing is on the wall. i could talk about this all day but i have to go. madison alworth, thank you very much. good to see you. >> you too. cheryl: get your betting apps ready, everybody. college football kicking off in earnest this weekend. the bet mgm ceo joining us next to tell us what his company has planned for a new year of football wagering. this is a fox business exclusive you don't want to miss it. take a look at marges, they're trying to make a comeback, nasdaq turning positive a few moments ago but right now as you can see, down 13 points and s&p down 13 points and dow has come back. at one point down 264 and now only down 150. we'll see, you never know. a lot happens during this show. we'll be right back. ♪ cheryl: oh, yeah.

college football is back. the fall season officially kicking off this week. the number two seed, the ohio state buckeyes and the fifth ranked notre dame fighting irish gearing up for week one's biggest faceoff this saturday. as the fall sports season gets back into full swing, sports betting companies might now have to worry about customers holding off throwing it all on the money line as inflation is rocking americans wallets. but a new report from trans-union found that mobile sports betters are more likely to show greater resilience

against the economic head winds americans have faced this year. trans-union discovered more than half of mobile sp sports betters earn at least six figures or more. the report shows that 89% of mobile betters are currently employed versus the 81% of the u.s. population so will consumers continue to place their mobile sports bets this football season as talks of a recession continue to slam the u.s. economy? in a fox business exclusive is the self-titled king of sports books, bet mgm ceo adam greenblatt. thank you for being here. >> so exciting to be here. cheryl: yeah, talk about ncaa as things kick off. is there more interest in college football this year and are you worried about a recession? are you worried about the economy because this is your bread and butter and it's a fun thing to do but not a necessary thing to do betting.

>> for sure. so first thing to say is that between college and the nfl, football is by far the most popular betting sport and we've seen a growth in the interest in college and the nfl since we started so it's relative proportion has increased. in terms of sector resilience, this is the first time that both sports betting in the u.s. has been legal and we're seeing these kinds of anticipated consumer head winds so we don't really know. we are going through this for the first time. what we do have however is evidence from other international markets, more mature than the u.s. market where the sector has shown relative resilience through the downturn so we remain optimistic about bet mgm's outlook. cheryl: talking about soccer in particular because even though football is king in the united states, worldwide soccer is the top sport. is that where you saw a lot of

interest this year that continued? >> that's correct. just for it, bet mgm is focused on the north american market so u.s. sports are king and albeit my accent gives it away, football is american football and not soccer. cheryl: i have to be very careful because i'll hear it on twitter i call it had soccer and not futball, which is what it's supposed to be called overseas. what kind of wagers do you get? how do people most normally bet on the platform? >> well, the majority of bet types are around what we call the six peck. you've got two teams and three primary bet types: money line, total and spread. we see the majority of our wages around those bet types. more interestingly or equally interestingly from our perspective is that w we are seeing an increased interest in

parlay product and when you mix a few bet -- individual bets together to increase your odds, reduce the likelihood of all of those things happening but expand your potential winnings dramatically, and that has -- is showing to be both fans showing us they're interested in that product and it's of course good for business, good for trading margins. cheryl: yeah, i did that at the kentucky derby and i won but somebody told me what to co. i had no clue. you mentioned that we're seeing more and more states legalize online gambling and that's a good thing but states like california that have not legalized online gambling. i know a lot of companies like draft kings have been pushing legislation that they're lobbying in california in particular to get that through. is that something you've been doing? >> absolutely. so bet mgm along with some competitors have absolutely been championing prop 27, which is the name of the proposition that will be voted on by voters in

about a month and a half's time. there's a lot of stake. you know, i don't need to tell you. fifth largest global economy, very high interest in sports, loads of very high profile sports teams, our super bowl winner and so we remain both confident in the likelihood of outcome of prop 27 but working very, very hard to make sure that we can tip the scales in our favor of course in favor -- cheryl: i would think texas would be important to you too. the state of texas if you're looking more to college football and there's a lot of interest and college football is expanding, i would think texas would be a big state for you. i'm just guessing l. i there. this partnership we have a sports grid is interesting and there's the data, analytics and wagers that you have but then sports grid has the video platform and commentary on there and shows and how that works and

benefits you. >> yes, of course. sports grid is making big waves in the streaming world and it combines sports wagering contend with editorial and it really focused and really targeted and the audience in the sweet spot of our target market and having been partners with sports grid since february, we felt that it would be in both of our interests actually to deepen that relationship and what that means is outtrading team and experts will provide insights during multiple broadcasts on the sports grid network, odds and promotions will be featured through the shows and in fact what the exciting part, one of the exciting parts is that sports grids lead pro football analyst, his name is warren sharp, will deliver real-time updates from mgm resorts

properties on the floor in realtime and creating some excitement around the event. cheryl: very interest. real quick, i have to ask you, serena williams, the u.s. open, she says she's going to retire. are you seeing a lot more activity if betting for the u.s. open? >> we are seeing good activity. there is always a correlation between how much people see in the news related to an event and the maybe i should have a bet on that. more news is good news because what more news does is drives opinion and opinion drives participation. cheryl: there's been a lot of upsets so far in the open so you never know. could be a -- someone out there could be winning or losing pretty big. adam greenblatt, great to see you. >> thank you for having me. cheryl: well, life after the pandemic making it possible to live and work almost anywhere

for now. now one startup is hoping to streamline the rental process to make flexible living a reality. we've got the ceo of landing here to explain it all. that's coming up next. and let's check the cryptoverse, bitcoin, etherin and litecoin down a bit. the "claman countdown" is coming right back. meaux ♪

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down and the nasdaq creeped into positive territory. we shall see. cheryl: never know what will happen on the "claman countdown" and nasdaq down by 11 points and it's teetering and s&p teetering as well down 14 and dow down about 162. well, the u.s. army is grounding

its entire fleet of shanook helicopters due to engine fires. they're aware of a small number of fires but grounding the entire fleet of choppers out of a risk of caution. it's boeing models with engines made by honeywell. boeing and honeywell down and the stocks in the red. snap chat parents, snap is on the rise actually. the social media company announcing it's going to cut its work force and scale back investing for its struggling businesses. snap is cutting 20% of its work force. they're going to scrap several projects including their minis, third party apps and snap games. companies will stop investing in the pixy, that's the flying camera that launched earlier this year. the california based company saw ad revenues slip as marketers are spending less in the economy and shares of snap up 10%.

sometimes wall street -- a lot of times they like layoffs. shares of pvh, that's the parent company of tommy h hilfiger and calvin klein and they cut because of a tightening economy and less spending on discretionary outfits. they cut on the stock and did maintain and outperform. hp also lower today after the computer giant posted lower than expected sales numbers for the third quarter. the company reported that sales dropped over 4% year over year. six brokerage firms lowered price targets after the disappointing results were announced. the palo alto company facing the challenge of supply chain issues as well as softening and demand for pc computers and hp down about 7%. well, a dark warning from goldman sachs, the housing market will end 2022 down across

the board. in a re-sport researchers expect sharp decline in new and existing home sales and housing gdp. they expect declines throughout all of next year too. now, while housing may be on the cusp of a downturn when it comes to rent, that's still on the rise for now. according to the zumper national rent index, that's a newly listed one bedroom median rent up 11.8% in this country year over year as of august. more than half of cities saw a double digit rent increase. while rent continues to rise, one company is trying to up end how we rent. landing is a membership-based company and gives its members access to fully furnished apartments and 81 markets with flexible leases. you can go one month, you can go one year. lots of questions i want to bring in and how to explain how to work the founder and ceo bill smith. great to have you here. >> great to be with you today. cheryl: this is a really interesting concept because a

lot of people during the pandemic were jumping around. if i'm going to work out of a computer, i'll put that computer in spain even though my job is in new york. that's probably where you got the idea but how does this work with the membership? >> i started landing in 2019 and had a company before this called shift and moved to san francisco during that time while i was building the company and i discovered all of the headaches of having to move to a new city and thought apartment living should be a lot simpler. it just so happens that a pandemic happened just a couple months later and landing really took off from there. cheryl: how does the membership process work and also more importantly, you have to screen everybody i'm assuming so there's doing all of their credit reports and background work for you versus doing it for a landlord; correct? >> that's right. it's $199 per year to be a landing member -- a member of landing and that gets you access to our homes across 81 markets in the u.s., that covers about 300 plus cities, and you can move around any time you want. if you live in austin for a

couple months and want to take a new job in miami, just open our app, pick the next apartment, you don't have to worry about signing a new lease or ever being blocked in. cheryl: what are the most popular cities that people are doing this in? >> wee have growth from the sun belt in phoenix, austin, dallas, miami, all the places you hear about a lot of population growth is where we're seeing significant growth. cheryl: that's interesting. i thought people would have said i want to live in -- i live in atlanta and i want to do new york for one month or two months. it's the opposite. they're saying i want to go to atlanta for a month. that's different. what about the owners? how do you find your landlords? >> we generally partner with large owners of apartment communities across the country and management companies. you can think of businesses that manage anywhere from 50 to 3 or 400 of the large apartment communities, and what we're doing is helping them serve this fast growing market. so flexible living is a brand new market, landing is the first company to create this model and serve consumers that want to

live flexibly, and we're allowing and helping these management companies serve that demand. cheryl: it's really interesting. i have to ask, you know, we've seen a lot of private equity firms, the blackstones out there that have really dove into owning homes, condos, they've been landlords themselves. have you worked with any of them or reached out? >> we haven't much most are focused on the single family market and buying single family homes in places like phoenix for example, we're really focused on multifamily today. that's a industry that's been traditionally seen by institutional investors. cheryl: do you think that -- are you concerned, i guess, i will say, with what we're seeing with housing sales? i mean, obviously price in sales is not your market, but that world is changing, goldman sachs is tells us now they think we'll have prices level out maybe fall in some market in the next year. would that affect you or no? >> what we're seeing as people delay buying homes longer, it's beneficial to landing.

in the multifamily industry in general, there's been significant growth and demand for the last few years. there's not enough supply and so we see this as a great opportunity for us that people that are choosing to rent longer, we're giving them that flexibility so if they live with landing and choose to buy something later on, they're open and they're open to possibility. cheryl: i have to ask you before we run, ipo? you just got a new round of funding. >> we just raised $125 million. we don't have any plans to go public in the near future. we'll have to see how it plays out. cheryl: come back when you do. >> thank you so much. thanks for having me. cheryl: it was great to see you. it's a very interesting concept. really is. good for you for get ago jump on it. bill smith, thank you, sir. >> thank you. cheryl: don't miss fbn prime's real estate block tonight that starts at 8:00 p.m. eastern time. casey mcdonald hosts mansion global and followed by my show american dream home. we're going to key west and hawaii, two of my favorite places. that's only on fox business. we'll be right back.

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♪. cheryl: california lawmakers passed a bill called the fast act this week that will set

wages for over half a million fast-food workers at $22 an hour next year. but fast-food chains like mcdonald's, chipotle are speaking out against the legislation. they fear it could upend the franchise business model. live to kelly o'grady outside after chipotle in los angeles with more on so-called big mac act. kelly, killing me. you know i love guacamole. that is my favorite food. what are you doing? reporter: i do, actually. the problem is, this will make our favorite food cost more, cheryl, chips and guac california minimum wage is 15 bucks. these places are operating on single-digit profit margins already. no way they will be able to pass some of the increase on to the consumer and our chips and guac. they're calling it the california food tax. a new study finding labor costs could increase 60%. prices could spike 20%. the bill intentionally targets

chains with 100 or more locations. it could dismiss them as corporate brands. most mcdonald's are ownedly franchisee. these are small business owners where a 40% wage hike could mean avoiding the golden state or shutting down. >> there is no doubt in my mind that franchise brands will choose not to come to california if they are not already there. it is certainly likely that those smaller franchise owners would, you know, choose to sell to a larger operator or back to become a corporate location. reporter: there is data to speak to that. a new study finding 84% of economists predict fewer chains will be willing to operate in california and 73% expect franchisees to close shop. mcdonald's is already speaking out this bill cocause the golden arches to leave the golden state all together. when it comes to equity, fast-food chains are often the first mace people turn in a time

of crippling inflation. you know this could mean not only are they in trouble but your chips and guac will cost more, cheryl if this gets passed. cheryl: can i tell you quick, chipotle was genius you can order a salad and put guacamole and cheese on it and it is awesome. reporter: what do you think i'm going to have for lunch today, cheryl. cheryl: just recommending. kelly o'grady. good to see you. thank you very much. reporting on the california heat wave next week. kelly o'grady live in california. closing bell will ring. we have six minutes to go. the major averages all down for the month of august. the dow, s&p 500 have all ten nated between gains and losses for the last seven months. nasdaq is down four out of last five months. this month of august, red arrows across the board. we'll see what september can bring. general dynamics, this stuck to watch right now, it is lower.

rbc initiating it with outperform rating. the brokerage believes the u.s. defense budget will exceed 800 billion next year that could help fuel growth of defense firms. today's "countdown" closer agrees with rbc and is all in on general dynamics. miramar capital senior portfolio manager max wasserman. you managed 125 million and like general dynamics. >> we do. if you look at the defense sector in general, people don't realize regardless in power everybody needs defense and at certain times general dynamics and the defense industry is very solid. marine side is the 30% of their revenue that is the virginia, columbia, nuclear attack submarines. that is ratio of go to one. they've the abrams tank and stryker that has demand in europe and there is a backlog.

cheryl: politics play what you're talking about here, whether china, taiwan, ukraine, russia, do you consider those things when you look at a stock like general dynamics? >> we have been owning general dynamics for a while. we look in general it's a constant grower with earnings and dividends. we're a dividend investment shop. they have been growing the dividend consistently 7, 8%. they have bought back 21% of the company there is another thing with general dynamics overlooked, the gulf stream side. 20% of business is aerospace. cheryl: private jets. >> that is growing dramatically. with people flying again, the fleet has been updated from. g-600, 700, 800, back orders are getting full price which is unheard of. cheryl: people are tired of the airport getting flights canceled, losing their luggage. that is actually true. >> if you look at it, wealthy, corporate jets, demand is very good. cheryl: it is. >> that added kicker to general

dynamics not just defense by aerospace side of the business with gulf stream. we think a play on defense and cyclical. cheryl: have to ask you about home depot. this is one of your picks? >> yes. cheryl: home depot, their earnings weren't terrible. they were better than loews. >> exactly. cheryl: at the same time goldman sachs is predicting a slowdown in the housing market. >> look at it in context the stock was trading $420 a share. now it is 288. so the low in june was like 266. we're in the getting the stock at the top banging the table. we're saying look at a few things. 4.5 million, to five million houses are sole every year. there is turnover. 130 million households out there. of those 50% are more than 40 years of age. the addressable market is 900 billion and there are two players, home depot and lowe's. home depot's business is doing good on the professional side which is 45% of their business. big ticket items are up 9%.

five-year growth rate is 17%. we're not saying we love the housing market short term but if you take a longer look at six to 12 months, hard in wall street speak, you have a stock 25% down, trading at market multiple, growing at faster rate than the market why would you put a sell on company now? we did reduce it in the 400 range. for risk and return it is asymmetrical. say it drops another 10%, but upside could be 40 or 50. interest rates go up, housing slows down, it is house appreciation that drives home repair. cheryl: right. >> as long as people are working -- cheryl: if you can't afford a new home, you can't afford the house that you really, really want already renovated you buy something you know needs renovation. >> with who-year-old homes in that big of a market it will be there. we think risk/reward is

tremendous. cheryl: the other one is general parts company. >> yes we like the auto replacement sector. for one it is 22 billion-dollar company, they're out of atlanta, georgia. they do it for you. they own the napa centers, 25,000. the car, average fleet is 12 years of age. there is 200 million cars out there. they're 12 years of age. they are older. they need repair. the average repair bill is 800 to 1000 a year. the cars are more complicated. they will do it for me. pull into a napa center they take care of it. that is growing 1times earnings. dividend aristocrat. 65 years of consecutive dividend increases. 2.2% yield. the price is right. with interest rates going higher people can't afford a car. used cars you can't touch they're so expensive. as con slows down, you keep the car longer. if it needs work you take it to a napa. cheryl: you're looking at a lady who couldn't change a tire if

her life depended on it. max wasserman thank you so much. >> thank you. cheryl: as we're speaking here we pushed past session lows on the dow, 268. we're definitely at session lows as we move into the close. [closing bell rings] major averages down four days in a row. that will do it for "the claman countdown." i will see you tomorrow. "kudlow" is next. ♪. sean: hello, everyone, welcome to "kudlow." i'm sean duffy in for larry kudlow. our top story today, the department of justice is accusing former president donald trump of trying to obstruct its investigation into classified documents stored at mar-a-lago. the justice department claims trump's request for a special master is unnecessary because it is already gone through the material documents collected. david spunt is in palm beach with all the details. david, what do you have?