owners and enter the food processing industry. this is a self-made nightmare and total disregard for them and day-to-day struggles and it's heart breaking. candidate obama said the larger point beside the pain is the challenge to make sure voters understand why it was a necessary pain. this is not a necessary pain. liz claman, i'm buckled up for this last hour of trading. liz: oh, buckle up and take your seats, everybody, the finale is the season kicking off and the 2017 right now we are in the top ten biggest point losses for the dow in history. the number to beat if you want to call it that is 1,063, we're at 1,067 right now. phones, withive got 59 president 5 -- folks, we've got 59.5

minutes left of straying. the dow well below 32,000, we're at 32,103 check out s&p and nasdaq, tech is getting hammered at the spector of more aggressive federal reserve spooks investors. we have the s&p down 149. it's really the nasdaq that is getting absolutely creamed here. down 545 points or 4.5%. down about, let's call it 4.5%, persistently high inflation has the wall street core singing the first notes of prediction that the fed could be forced to raise interest rates next week by not 75 basis points but 100 basis points. the nasdaq looking at worst day since june 16. this ugliness began the minute the august cpi was released showing inflation of the consumer level expected to come in at 8.1% year over year. came in at a hotter than

expected 8.3%. that's obviously even worse and the worse is the core rate. the core rate that strips out food and energy cause it's considered volatile was double the expected three tenths of expect and immediately investors saw as a disaster for the fed that was tightening short-term borrowing rates in an effort to cool down the economy and has prices not working except maybe for gas and energy and oil prices. meta down 8.25% in the final hour of trade and we've got alphabet, google down 5%, apple down 5.13% and a day after last night when ted lasso became the winningest comedy of the night, second year in a row it's the winningest comedy and won all the emmy awards. that's disappeared all that excitement. intel down nearly 6%.

financials now losing some ground and we've got wells fargo down about 4.6% of course they are big mortgage lenders and emergency rates are moving higher. jp morgan chase down 4% and citi down grown 3.7% and goldman sachs hitting about 4.7% and yes, stupping price increases year over year in the cpi report and food prices off the charts and coming up, we've got actor chaz pomentari of the italian restaurants and he'll join us live on how he and his team are dealing with the skyrocketing cost of food but the jaw dropping one here, airline fares. popping 33.4% year other year. airline stocks not taking this well at all. you can see that we have hawaiian holdings down 5% following by american airlines down 5%. we've got jeff blue down 4%. you can see the rest of all of

the problems that come with this. well, it is this. the markets at this hour as i said, now pricing in, not just a 100% probability of at least 75 point basis po hike of the fedsd 24% of the market is betting on 100 basis point tightening and as the markets tank, we have team fox business coverage joining me for the floor show northwestern mutual cio brent shoody with $200 billion in assets under management. he believes the markets have put in a bottom and chief global strategist peter schiff is probably shaking his head. i can only imagine. i want to start with you, peter, what does this mean for the fed, what is the fed's next move next week beginning the two-day move on september 20th? >> well, the fed will hike rates and doubt that go 100 basis points and if they did, it would not matter. i don't understand why markets

are still surprise when had you get higher than expected inflation numbers. inflation will continue to get stronger even as the economy gets weaker and in fact, the fed actually falls further behind the inflation curve every time it hikes rates because these rate hikes are too little, too late and the fed needs to make interest rates positive to do anything to bend the curve. they have to get rates above the rate of inflation and until they do that, they're spitting in the wind and meanwhile what really has to happen is we need massive cuts in government spending and the government is doing the opposite. we had the inflation reduction act, we had the chips act, we have forgiving student loans, all of this is additional spending, which is the worst thing you want to do when you have an inflation problem. liz: brett, we have a dow loss of 1100 points and 1,087 to the downside here. you believe that the lows are in for the markets. how can that be if we may very well see a 1%, all though peter

doesn't agree, hike in rates next week. >> well, i don't think you'll see 1% hike in rates. i agree with peter on that front that you'll see 75 basis points. the reason why the market is down so much is all the forward looking data points to lower inflation is the back ward looking inflation is higher. one of the biggest components was shelter, that has a 12-16 month lag with home prices and you're now seeing the impact of home prices last year show up in the data. i ask you where you think home prices are going in the future? you have seen the housing market go from absolute boom to bust and you'll see prices decline, which will bring down inflation. if i take you back to the '60s, '70s, and '80s, cpi peaked and the market blot tommed. there's a -- bottomed. i think the market will be back and forth based upon every single trading data like this point and a one month data point and you'll push higher not till 2023 but you'll see new highs then.

liz: two of you here and both of you are buyers and sellers i would imagine and what are you doing right now, peter? buying anything on a day like this where depending on what you like, th things are a lot less expensive. >> well, first of all, it is possible that the market will bottom when inflation peaks. unfortunately we're years and years away from peak of inflation. this is not 1980 but more like 1970 but it's getting started. liz: what are you buying? >> it's not a finishing. i'm buying the same stuff i have for a decade preparing for the inflation. it didn't just start no. the fed sold the nation's soul to the inflation devil back in 2008 when it did qe and now the devil is back to collect but i'm prepared. i've been buying foreign stocks and buying resources, commodities, gold, mining stock -- liz: gold is down. can we bring up the gold chart. we're looking at gold down about one and a third percent and

$1,713, $26 actually. then shift it over to brett for the moment. are you buying on a day like this or wait till the dust settle s? >> we're fairly happy with how we're positioned and we've owned commodities and tips in the past and thought the inflation was coming based on what happened during covid and as peter mentioned in the prior years, what happening it the after shocks and half effects of the giant shift in the economy from services to goods and it moving back towards some sort of normal. then we used to own those and we want to continue to position in things that are cheaper so peter mentioned foreign stocks. i don't disagree there. we like u.s. small caps as represented by the s&p 600, which traded 11 times 2022 earnings and may be discounted but still that gives you margin safety versus their normal more 18 to 20 valuation. liz: you know we're looking at session lows for the nasdaq down about 562 points. the russell getting clocked as well down 3.6%. peter, speak to our investor

audience before we go here, what is your best piece of advice for the moment? >> yeah, first of all, you mentioned that gold is down. the reason that it's down is because investors still don't understand that the fed is going to lose this fight with inflation that the economy is not only already in a recession, but headed towards another financial crisis and so the fed, despite rising inflation is ultimately going to try and stimulate the chicago and we'll have the combination of a massive recession or depression with a financial crisis and rising inflation so all of this is bullish for gold, it's bears for the dollar and my advice is to your viewers is tune out all the noise about how the fed will suck sed and how it'll -- succeed and bring inflation down to 2%. you better invest as if the fed is going to fail and not succeed. this is not 1980, pal is not paul vulker and you've got to do opposite of what worked in the 1980s but do what worked in

the '70s and get out of stocks and bonds and foreign assets and gold. liz: i feel so much better now. not. >> i can help. liz: peter, brent, thank you so much. look at dow, we've breached the floor of 1100 point losses here. the bond market straining and bending in the wind at this hour as bond prices drop to pretty ugly levels. we're watching the benchmark 10-year treasuries very closely. yields that of course move inversely to the price of a bond. right now 10-year yield at 3.42% off the early highs of about 3.44%. but nonetheless blasting up to about june highs. kpmgs, chief economist die an swonk said the continue spikes in shelter, medical cost, dental care mean the fed must look seriously at raising rates by 1%. she is widely followed on wall street, she was tweeting this on your screen, likely 1% rate hike on the table and have to signal

willingness to continue aggressive hi hikes and diane is jumping in the chair to continue live with us. diane, i don't know if it's wishful thinking but you heard brent and peter and equity talking heads on the business networks earlier today saying no way will the fed raise rates next week by 100 basis point-blank layupses. it's too much. should viewers believe that? >> i don't think the fed thinks it's too much. i mean i was in jackson hole and 8:34 speech, the shortest speech ever, jay powell laid to rest the concept of a narrow path to a soft landing. he said, listen, we know there's going to be pain. we know we're going to keep raising rates till inflation comes down. that means this is a fed that knows its credibility's on the line, they need to fight inflation and be aggressive and he left aggressive rate hikes on the line. whether it's a percent, which i do think they're going to put on the table or another 75 basis points. it doesn't matter. they're going to keep going and hold them high.

they're hope, their hope is to create a mild recession and gradually grind down inflation over the next year or so and then allow themselves to cut and get the economy going again. there is a risk that they have spillover effects around the rest of the world and they know this. this is one of their concerns is in rapidly raising rates, destabilizing to the global financial system, and we're already seeing many countries abroad, especially in emerging markets that are having to match every rate hike the fed makes to defend their currencies and also we're sort of exporting inflation with a strong dollar. that means more inflation abroad to having to raise rates as well. that ups the ante of more countries defaulting on their debt. liz: diane, this breaking news in the last couple hours, the fed doesn't set mortgage rates but mortgages track the 10-year yield and average 30 year fixed mortgage rate just jumped to a 14 year high. this is the bank rate average here about 6.1%.

these are going in the wrong direction, are they not? >> well, what we're seeing is -- i mean the housing market has already cratered and it's the most interest rate sensitive sector out there. in terms of that, that is what the fed is trying to do. it's, you know, it's a very blunt tool and the blunt tool is bludgeoning the housing market and we'll see home price declining getting into the end of this year and early next year. that said, it takes a year to 18 months for those changes to show up in inflation. the service sector-based inflation we saw it was much more broad based and driven by a tight labor market that doesn't have enough productivity growth to be able to sustain the high wages that we'd like it to. >> last check we ryan higgins up

7.5% and investors say we can't see anywhere near beyond five years out let alone maybe five or ten or whatever. they're putting their money into that two year. that doesn't really bode well for confidence in the stock market, does it? >> no, it doesn't, you bring up a great point and we've seen a huge reticence on equity markets and bull run because we've had very, very low inflation and ultra low, almost zero rates. if you discount or divide something by zero, goes to infinity. you can see what was supporting equity valuations out there and getting used to it and getting through the environment to the other side, i don't think we're moving into an environment that's going to return to the pre-pandemic world where we had low rates and low inflation. i think we're moving into and i think the federal reserve and almost every other central bank out there is worried that we're moving into an era of more

scarcities where we'll see more disruptions and it'll mean more inflation down the road and one of the biggest scarcities is the supply of labor. we have an aging labor force and we don't have a lot of immigration. we have a lot of things holding back our lab boar abort force -- labor force at this point in time. they're scary going forward. liz: diane, thank you for your perspective. diane swonk watching the fed and we also will be closely and she does not believe that 1% hike next week is too much for the fed. we'll be watching it, diane. we appreciate it. all right, look at dow jones industrials down 1,141 points while that sizzling inflation number crushes the markets. president joe biden is about to take a victory lap, yes, over the passing of the inflation reduction act. what we're going to do is we're watching every tick of the markets and this pretty significant selloff while we had to the white house to hear how

the president tries to square billions in government spending with persistently high prices. folks, we've got the closing bell about 44 minutes away. look at dow here. all the dow 30 stocks are in the red. in the tank here. you can see the biggest laggard here, chevron followed by travelers, proctor & gamble, merck, wal-mart and verizon. don't move, we are coming reich back. ♪

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liz: breaking news, we are just off the session lows here. we have this fox business alert. we are seeing a very significant selloff at the moment after the august consumer price index number, inflation at consumer level came in hotter than expected at 8.3% year over year.

the expectation had been for a move of 8.1%, which is still really bad. food prices absolutely atrocious. very, very high. no real move when it comes to shelter prices. not to mention we have air fare going ab shutsly nuts and we've showed you the airlines and they look really ugly. the dow is losing 1,141 points. s&p down 159 points or 3.8% and it is the nasdaq as we have pointed out, big tech tends to be very rate sensitive and we can see the nasdaq down 573 points or a loss of 4.67%. can we look at meta because meta has been struggling all session long. meta platforms in particular getting slammed. right now down about 8.65%. that is near session lows. meta right now at $154.34 per share. the low of the year would be -- that's it.

$154.25 and annual high was 381 and change. you can see and that's followed by microsoft, apple, google, they are all seeing 4 or more percent losses. and this as we look at the reason for the selloff, high inflation just as president joe biden right now is holding an inflation reduction act celebration at the white house the president and members of congress gathered on the south lawn for a victory lap on healthcare, energy, and climate bill that inked into law last month. let's go live to edward lawrence on the white house and kiel keep it up on -- we'll keep it up on your ticker on the screen here. how did he make this point when we know inflation is very much right in front of us. >> yeah, and the president is basically saying be patient. you have to be more patient with paying the higher prices and saw senator chuck schumer was speaking now and nancy pelosi was there and expecting the president to speak about this in not too distant future and any

model you look at with the inflation reduction act and the inflation reduction part doesn't come until 2024 or after that. most of the spending is front loaded and that's been the problem. in fact, the biden administration has approved $10 trillion in spending over the past 20 months and if you look at what this has done to inflation, the federal reserve says that government spending is part of that. see where inflation has gone and some of the most expensive packages in the american rescue plan, $1.9 trillion, $739 billion coming from this one and inflation reduction act and federal reserve says again, that government spending is added to that inflation you're seeing on the screen. yes, the overall number has come back down a bit. 8.3%. in a statement the white house calling it essentially flat adding that americans need to be more patient with those higher costs. listen. >> i think we would have liked to have seen the core inflation

numbers do better today. but it is worth noting that overall inflation has been flat for the last two months and rates come down that energy prices were down near 5% and gas prices down 11%. >> you tell that to those people who have seen those yearly increases that the president is talking about. gas prices 25.6% year over year and fuel heating to heat your home and up over 70% looking at food, eggs up 40% and milk up 17%. look to this from republicans. >> so we're just throwing money out of helicopters and airplanes and it's everywhere. too much money and not enough goods and inflation will go up. >> a strong report on the jobs side for this month as well as this strong -- hot cpi inflation report. as you know that gives the federal reserve a green light to be more aggressive and seems like that 1% is starting to creep into the expectations for the next hike next week.

thank you. >> oh, man. this is bat, it is ugly, and by the way, we're not the only country that's dealing with sky-high inflation but this is particularly irksome because the fed is raising rates and can we look, folks, i'll ask if we can see the dow 30 once again and i misspoke and reversed it and laggards here now and we begin with intel, then boeing, home depot, dow, nike, and apple. those are the five biggest laggards but every stock in the dow 30 is in the red. you can see i it is a very rough session and rough part of the hotter than expected inflation number. sky-high inflation. actor turned restaurant owner joins us here next to tell us how pumped-up prices are kneecapping small business and restaurant owners like himself. what is he doing about those

high egg prices and wheat? closing bell ringing in about 35 minutes. we do have the nasdaq, the big percentage loss leader down 4.7% or 584 points. s&p down 162 and as we continue to watch the dow is now in the top ten for the worst point losses in history. we're down about 1,162. ♪ liz: folks, we

are now looking at volatility up 12%. the vicks is spikes and we're now at 26.92. that's not even that bad. more like 30 at some of the more difficult moments during the summer so i think that that is certainly pretty significant here. but this all comes at the moment as we hit new session lows. again, we keep talking about the dow but that is only because we are now as i mentioned earlier, now in the number eight spot for the eighth worst point loss and now at seventh worst point loss. this is changing as we speak in history for the dow down 1,200. i will say this, things are cheaper today if you've been angling to buy microsoft or apple. whatever it is, less expensive at the moment. this very sizzling august cpi report, which came in worse than expected meaning higher is really delivering sticker shock to consumers and anybody who

eats, that would be most of us. grocery prices piping hot year over year. meat up 6.7% and look at eggs, a steep 39.8% year over year and fish up 8.7%, milk 17% higher year over year. so you can only imagine these rising expenses across the board are hitting restaurant owners and many of them small business owners and their ordinary opera. i have academy award nominated writer, actor, and producer after chazz restaurants in new york city. chazz palminteri. give me your gut reaction and be as dramatic as you want about these pr prices but what are you think something >> it's been hard. inflation is up 8.3%. the cost of food, liz, it up 11%. an example, months of ago, a

case of potatoes was $27. then went up to $78. two weeks ago it was $94. how do you expect to -- if somebody wants french fries, how do you set a price on that? you can't. it's impossible. our profits are getting less. i don't know. to be honest with you, the way food is right now, plus you can't get anybody to work. nobody wants to work. impossible to get work. liz: that's what i wanted to ask you. are you raising wages at your restaurants because you've got to have somebody to serve people that show up. >> yes, you have to raise wages and raise the prices of the food. i mean, look, i have two great restaurants, one in manhattan and it's really coming back. it came back after covid, and the new one i have in white plains, 264 maine street.

now, the suburbs takes a little longer. it's coming back but taking a little longer. it's hard to make your profit now. you're giving it away to the food and to the people you have to hire and pay them more. liz: wheat prices, chazz, i've been looking very closely at those and, yeah, they've kind of started to come down, i guess, a quarter to date, but i'm looking at wheat. of course that goes into pasta, i know you're big with italian food at the italian restaurants. >> absolutely. liz: up 25% in the past year and mostly higher and make it very, very challenging for a small business owner like yourself to do business. i mean, what is the answer here? if you could speak to anybody in washington dc, what would you say? >> well, i mean, i would tell them, can we go back and bring these prices down? i mean, this giving away money is not the answer. too much money out there is not

the answer. i mean, i'm kind of really frustrated. you know, our government keeps saying everything is great, everything is going better. i mean, look, is it going better? you know, i don't think so. i don't think so. so as far as i'm concerned, you know, think of -- you know, we always get, we always get pushed aside. we always do. look, i understand people are going to say, well, you know, you're an actor, yes. but i also -- i'm a businessman. i'm a restaurant too, and it's important for me, i hire people, i work with people, it's important for me, i love new york, and i want new york to be successful. do you know a third of the restaurants closed and will never open again, liz. never. never. i mean, those are a lot of people that are out of work. restaurants that have been there for generations, closed. that bothers me. that's sad. that really is sad. liz: it's depressing because

small businesses make up of two-thirds of gdp. we have the backbone of the nation and people like you in the business owner and affects your restaurant. >> we have chicken parmesan and veal parmesan and people come from all over to have our food. but, you have to raise prices and that's a little steep. what are we supposed to do. some of are break seven we have to have that and put it out

there anyway. liz: what would that be like? broccoli? i don't know. you have to tell me. >> oh, even that's gone up. i mean, it's crazy. it's just really crazy. you know, we do promotions, we do private parties to help, we do events. liz: how are you bookings, chazz? are you starting to see people forgo going to restaurants? >> yes, i mean, i have to be honest, knock on wood, our restaurant like i said in handout hat tan is doing -- manhattan is doing gang busters and the one in white plains is coming back strong now. like tomorrow there's a big cigar night at my restaurant for charity for nypd at my restaurant in white plains. and a lot of people come for that and, you know, you introduce them to the restaurant, which is really nice. they say, oh, i didn't know this was here. it's a relatively new restaurant in white plains. and more people come to see it so you have to have events and

bring people in and promotion, promotion. very important. liz: we look at you because you squeeze every -- you talk about productivity and chaz not only was an economy award nominated and multi-award winning actor and of course, i loved you in bullets over broadway. people go nuts over you in the usual suspects, one of my favorites. >> thank you. liz: but the bronx tale, a bronx tale, this was the one that really kind of made you the "overnight success". you've got a one-man show coming up. tell us -- >> yeah, october 1 at the town hall theater in manhattan on west 43rd street at 8:00 saturday night, this is the first time in 34 years that i'll be doing a q&a after the one man show. after the show, i'll be taking questions from the audience about the one man show, the movie, the musical. i got great stories, i got some

very big surprise guests that are coming and i don't want to say who it is and they can make it for whatever reason. it's going to be an incredible night october 1 at the town hall. liz: well, congratulations, but i know you're working and sweating it out with these high prices. we so appreciate you opening the window into what it's like for ewe and your employees at your restaurants. please stay in touch, chazz. thank you very much. >> god bless. thank you so much. liz: you're welcome. and your work on cojack was way underrated. >> thank you so much. liz: chazz palminteri. go visit the restaurant or his one man show if you're in town. fox business alert, individual stock stories we need to flag right here, peloton not in great shape at all after the man who founded the subscription-based fitness company gone from the company. the cofounder and ceo john foley resigning from his current position as executive chairman. he was already kind of pushed

out of the ceo position, fellow cofounder kushi, the chief commercial officer and kevin cornis departing and moves shake up from berry mccarthy in an attempt to dramatically reshape the peloton interactive business, the stock now just $9.93 down 10%. can we look at rent the runway. rent the runway getting hammered down 36% after the online clothing company wasdown one quarter of its work force. rent the runway, this is a company that was founded during the financial crisis. they have really absorb aed a lt of shock in the past and inflation has forced shoppers to pause their subscriptions. on a down day, we have at least one winner here. look at nintendo, higher after the video game company launched newly launched splitoon game and broke records for the anyone ten

know switch and the game sold 3.45 million units. anyone ten know needed a win after reporting lower year over year last quarter. we showed you that the boeing is the worst performer on the dow jones industrials. it said that deliveries rose to 35 plains last month helped in part by reasonings in handovers of new 787 dream liners to airlines and boeing said monthly deliveries included 27 737 max jets. two 787s and five freighters. but the stock is getting crushed and we're at session low for boeing down 7% or $11 to $147.72. the dow down 1,293 points and we're going commercial free because this is a very touch and go situation. we are now looking to possible fall below 31,000, we're at 31,080 at the moment.

tell me again, brad. okay, seventh worst dow loss in history at the moment. so it's just kind of worsening. we're now down. we're one week from the federal reserve kicking off the next two-day meeting and the markets were largely expecting another 75 basis points in hikes on september 21st. that was for weeks now. 50 points, you can forget that. we have feds funds future markets showing and early it was a little bit higher and lower rather. we now have 34% of the market with the probability of a 100 basis point hike because the fed has been very clear, it is going to do what it takes to bring down inflation. right, it was at 24% just at the top of the hour when we began the "claman countdown" show and 4 point hike biggest since march

of 1984 when the feds raised rates 150 basis points. last week larry fink told me and charlie gasparino there was a gap between all the money spent between what federal bank's responsibilities are. listen to how he put it. >> we could see a 3.5, 3.75 short-term rate and we have rising inflation and it's not necessarily energy. you know, we had huge amount of stimulus, fiscal stimulus and was it too much? we're seeing very large fiscal stimulus at a time when we have very high inflation. and it it just makes the central banks in europe and the united states a much harder task. liz: larry fink, that was september 6, and he predicted that this would happen.

let's bring in our floor show traders with 1.1 trillion in assets under management and chief strategist quincy crosby saying the big question for the markets is how much more work is ahead of the fed to get inflation down to 2% without derailing the economy. and veteran straiter sarge continuing to be tight in this market. looking back to the 1980s with 150 basis point tightening and it was a very tough time back then. how much more will the fed have to really punch down inflation and can they circle that square without hitting a full-blown recession? >> i think that's why the market is tanking in the close. the market is afraid that the feds moves are going to cause a recession. that is why the market @ close

continues the selloff. every sector is down, liz, and i think the fear is even 75 basis points and then the fed continues towards the end of the year and maybe even into early 2023. by the way, that's not factors in the mistake that they break something, something goes wrong and just dries up. that would be a major mistake for the fed so absent that, the market is saying right now, you're going to cause a recession. liz: check it here, guys, dow jones industrials down 3,007 is 1 points and nasdaq down 5 and a third percent and sarge, chip stocks are the laggard here when it comes to big technology and we're at session lows for the nasdaq and you can see some of these chip names, intel is the

second worst performer on the dow about 7% and down 9% and nvidia getting clocked here by about 9.5% so can you tell me, you say you're cashy but you love a name like nvidia. why not pick up some on the cheap right now? >> yeah, because i know the flow is going to go against those names. i think that trader haves to be cashy like myself. i wrote a positive article on intel yesterday and still haven't pull that had trigger, thank goodness, but that's also something to do with pulling mobile io off the table for now. investors have to be -- if they have to be invested, you have to be where the demand is inelastic and i'm talking national defense, lockheed, general dynamics, north group, tech plays are down a lot and you know the demand is there i got into palo alto today and like z scaler and crowd strike and i haven't picked my price yet. utilities is a need and healthcare is a need.

i'm still on cvs and swapped out johnny john for pfizer. this cpi report forces the fed. it forces the fed to break something as quincy just said. i believe that by september 22, short term rates already above in and out neutral and the fed will keep raising those and therefore it will dry up. the members of the committee, they're all hawkish and they were right so far. they have no idea where they should stop and they'll probably go on indeferently until we have this -- indefinitely till we have a recession and the democrats can't deny. liz: quincy, can you give me sectors that you can withstand we're seeing now and we're now down 3,541 point -- 31,000, 50 points. >> we like energy, liz, and think there's a chance that we

have shareholder value withvery familiar dividends ande like that and sarge said utilities and we have to have that. in terms of healthcare, take a look at bio-tech within healthcare and that's the risk on with healthcare and it's in a backdrop and even though it's difficult for the markets but with bio-tech tending to do well, there's a lot of conferences and we also have merges and acquisitions in the healthcare with bio-tech and we like those and we are more defensive and we'd like to be moving and inching out into the cyclical names but not now. we have small caps which we think -- which have been doing very well. liz: all right. okay. listen, we have so much happening at the moment, we are now on track for the sixth

biggest loss for the dow, point loss in the dow's history so sarge, quincy, thank you very much. right now shares of twitter, we cannot ignore that story. they are falling -- can i see at the moment, 4%. no, they're high. twitter is up about six tenths of a percent. that is a reversal, folks, at this hour following two big breaking news events for the company. first twitter shareholders approved the social media platforms $44 billion sale to elon musk. the outcome will of course still rest in next month's court battle in the delaware chancery court and peter z atco -- zatco's speech next month. >> twitter has its own board of directors and twitter leadership ignored engineers because key parts of leadership lacked the

competency to understand the scope of the problem. but more importantly their executive incentives led them to prioritize profits over security. liz: let's bring in charlie gasparino. charlie. >> you know, i still don't understand why the stock is up. it reminds me why the stock market was up. there was no explanation recently except if you thought inflation was getting better or we were at peak inflation. liz: or we were oversold from june. >> we're not oversold if we're not at peak inflation. by the way, i don't know how you invest in energy markets if we're hitting a recession. that is a gutsy call. liz: yeah, quincy knows what she's talking about. >> i don't think she doesn't, it's just a counter intuitive call. and also counter intuitive that twitter would be upright now. i mean, it's suggests to me there's a lot of betting going on among arbitragers that they think musk will have to buy this thing outright. that the court will say, buy it

all. it can't be because they think he'll have to pay like a $5 billion fine. that gets eaten up very quick. liz: very quickly. >> so that's what this seems to suggest. or it's just one of these weird things, you know, i can't tell you how many times because there's too much that we thought, and you hear that the equity market talking heads when i was at cnbc talk about we're hitting a bottom. we're coming out of this credit crunch and then it happened. just be really weary about the stock pickers -- liz: diane swonky came on and said be ready. she advises the fed and there may very well be a 1% hike and you get all these equity guys on the same networks saying it's not going to happen. >> i don't listen to any of them. i like larry fink and i've known him for awhile. you've got to turn back the

clock on larry fink who's the head of blackrock. blackrock. he got caught in a fire storm elsewhere and missed the mark and came out with his team and they were all mortgage bond traders and created back rock, that was a -- blackrock and it was a company dedicated to managing risk for clients and he understands risks better than most of the people on the street. when he comes on here and says the biden administration is playing with fire by inflating the economy with tons of spending while inflation is going off the charts, including food. remember, he mentioned food. liz: he specifically mentioned food. >> i don't know how you trade up a market. i liz: can we show the black rocket. but it's taking an outside hit if you're looking at financials because it's down 7%. >> they sell etfs and make a lot of money and unless people are

buying etfs and point out blackrock is a company that made its bones on bonds. remember, if you believe this is good for the bond market, which is the 30 year or 10 year up today? liz: the 10 year is well higher by 3.45. >> okay. so bonds are selling off a little bit but there's buying opportunities here when yields get like this rich. so, you know, i'm not saying buy blackrock. i'm just saying the guy who runs the show over there understands these markets and for every talking head that gives you reasons to buy or sell, i would listen to a guy that's measured like him. remember what he said, inflation is because of spending but we have other structural issues with the economy including immigration, you know, as many people running across the border, we have a problem with immigration never limiting for skilled jobs and limits yourself on inflation and productivity. liz: we heard from chazz

palminteri that owns restaurants and he's a small business guy. eggs up 39% year over year. he talked about a sack of potatoes and now above $90. >> remember giarard -- girardo bruno and jisepi. i tall them the economist. giseppi came out point-blank and said it's going to get worse. today's numbers, they look worse. liz: charlie, thank you very much.. liz: we're six minutes away from the closing bell. nasdaq on track for the worst day since june of 2020. if you rewind the clock, that was couple months after the initial lockdown due to covid when everything was dark. eastman chemical on pace for largest percent of decrease since june of 2020 as well. we have nvidia. we talked about the chips are getting hammered here down 9 1/2%.

talk about meta platforms and loom men technologies and western digital. what are traders doing at this very moment. we bring in the great scott redler. mr. redler some months ago you took some cash and put it into the s&p. that was a good trade. right now what do you do with cash you have at the moment? >> depends on your time frame, i always said if you're macro investor you put money in every single month. this will help your average cost. i did it in the intermediate cash account three different times. s&p was 4 270. i went whack at one tier, people in cash, one tier goes to work. everyone talking if reset of 3640. that is where the second-tier goes in. if we break that potentially, we

get market discovery. that is where you do a third. historically over time the bull market wins. if you do it in s&p funds, doing it with stocks, that is another story. trade for a living like i do, five up days into the binary event, have to be long or very light today with some hedges. that is how i tried to have my community as well. liz: scott bauer, tell me about the options market, where you're seeing the flows, what that should tell our investor audience? >> liz you know we talked last week the option flow especially in the spx and the vix was not very one-sided towards puts or in the vix case towards calls that has completely flipped now. the volume yesterday was extremely heavy on the put side in the s&pes. it is extremely heavy there again today. we're finally seeing the vix break back above this mini range it has been n wouldn't surprise me if we hit 30 again.

but we're seeing volatility, obviously climbing. as we always talk about liz, there is always an opportunity. you've got to take advantage of that opportunity when you see volatility come down, to buy protection in this marketplace. this is not being a monday morning quarterback. we talked about this repeatedly. i talked about when we saw the vix trading back down to 21, 22, buy a little upside protection here. now you're seeing a lot of upside calls in the vix, a lot of downside puts in the spx trading. liz: scott redler, you tell me, because right now i look at my stock screeners here and my sector stocks. financials all red. chinese stocks all red. grocery all red. metals down. regionals all red. restaurants we know, chaz told how after full. discount retailers down, biotech down. i see one driller, valeris moving higher. pharma, crimson, homebuilders.

you look at shelter prices here, that continues to rise. so what are the best picks in the best areas? >> what you want to do is you want to wait to see where the s&p bottoms. what you want to do at that point, see relative strength, what sector that is. you want to see what is dragging us lower. tell us what we see is 3640. the semis making new moves low. traders walking to see how weak the semis are. met, the old facebook that is through the lows of the year. google close to the lows of the year. microsoft is not acting well. i'm saying right now traders look to see what takes us through 3900 he to the lows of the year before we look to relative strength to start positioning for a better move when the market is ready to find footing. liz: scott bauer, i do not remember seeing a 9% loss in meta. it has been quite a while. we have the stock plumbing new

depths here. the annual low, 154.25. we're barely above that by a few pennies. the nasdaq is clocked. down 614 points. that is one massive percentage drop here of full five percentage points. can you dip your toe in tech at all right now? >> i think you need to wait a little bit, i really dome. do. it is not because rates are going five, 6, 7%. all the momentum is to the downside. if i don't get in now, liz, if i miss, two, 3, 4% to the upside. i'm okay with that. i need to see the dust settle. now when you talk about tech, there are two names. they're not necessarily tech. actually three names. nvidia is one of them. microsoft is one of them. apple is one of them. i think this is a time where you can start dipping your toes there. you absolutely do not want to put a full allocation in. i think this is the time. i'm not so sure but i think we may see a little bit of an

overreaction today. we may try to get a bounce specifically in those three names. liz: scott bauer, scott redler, i know you guys have spent the last few minutes of this trading session talking to us and we appreciate you sharing it. [closing bell rings] you could have been trading. tough loss for the market of ofk seventh worst loss of all time. markets spinning badly due to higher inflation ♪ larry: hello, folks welcome to "kudlow." i'm larry kudlow. so today's cpi inflation report shocked wall street and the nation with a significantly higher than expected print. pollyannas are painfully learning there is no magic cure. there is no easy way out. after several years of excessive federal spending regulating, taxing and money printing, the highest inflation rate in 40 years is deeply embedded in the economy and it appears to be spreading. the only