tv The Claman Countdown FOX Business October 4, 2022 3:00pm-4:00pm EDT
3:00 pm
and as i mentioned today, the ceo of shell oil warned that a lack of investment in crude oil is critical and we'll pay a significant price for this and the world cannot survive without spare crude oil capacity. keep that in mind. keep in mind this is one heck of a rally. liz: all you guys have to do is look at intraday chart of twitter and it is halted at $47.93 for a jump of 12.6%. all you have to do is look at that to see and months of
3:01 pm
backing out of the deal to acquire twitter and tesla ceo elon musk throwing in the buyer estoile and will purchase the social media giant of $54.20 a share. five minutes past noon, shares spiked 15% on bloomburg tweet indicating musk prepared proceeding with the deal at the original price and that the company agreed upon way back in april. show that chart. it shows what happened with april so trading was a immediately spiking as you can see and again, as we look at the situation, we have halted on the news pending seconds later reports began slamming the tape that the deal would happen if the acquisition goes down in business history as one of the wildest ever and a cautionary tale and it was april 14th when musk offered to buy the entire
3:02 pm
company for $44 billion. even signed away his right to look through the social media giant's book saying, no, i'm good. i got this, i'm buying it. then after hitting a high in june, the broader market began plummeting take some of musk's net worth and much with tesla's stock with it. look at this chart, exactly six months ago on april 4, tesla traded at $381 a share but by july dropped to $207 and elon wanted out and accusing twitter of understating the number of bottom panels or fake accounts on the books. twitter led by ceo sued in delaware chancery court and taking them to court in 13 dais. what changed between musk's declaration to fight to get out of the deal to this very moment the stock continues to be halted and two twitter analysts and
3:03 pm
this is a story that really does bond out to major -- broaden out to major market and investors need to see how you guys look at this stock and what's going down. benchmark company research analyst mark who has a hold on twitwitter and third bridges mea analyst scott kessler thinks this is an acknowledgment by musk that it was weaker than he thought. scott, take that tack first, do you think there's a real deal here? >> i mean, the one thing i think has been certain throughout this process over the last half year is that we can't seem to be able to figure out what's going to happen next. there's a lot of people were caught flat footed by the reports today, but it seems like we're a lot closer to a deal now than we were this morning. liz: okay. well, okay. so therein lies the issue closer than we were and i'm just keeping my eye really closely on twitter at the moment, guys,
3:04 pm
because i think it's extraordinarily important to make sure that we get you the news as soon as it starts trading again. could be at the very end of the show. that's what i want to really make sure we keep a focus on here. let me get to mark. mark talk to me about exactly what you think is going to happen with this stock once the deal is announced if there is indeed a deal? >> well, obviously the stock is going to correct close to the $54 price level, which is a steal of a deal for twitter. i mean, this is rather incredible in the sense that essentially musk is paying close to $170 per global user. if you think about where facebook is today, it's being valuated at 185. snap chat is close to $40. sheathe if we were to value twitter at 2x, the value that snap chat is getting for it is global users, you're talking about twitter stock price closer
3:05 pm
to $25 and this is a pretty hefty price today for a company that's had pretty big challenges monetizing and am amortize. liz: look at snap, meta, meta is not as much and had other issues it had to deal with about 1.25% to the upside. dwac is the spac that donald trump's truth social is supposed to reverse merge with and that's taking a hit of 2.7%. scott, do you think that's because maybe elon buying twitter, he now knows he's stuck with it and better dive in and be bigger and better. >> the move to buy twitter because the thought is that he was going to, you know, moderate some of the perceived
3:06 pm
restrictions on users and content on the platform now so if more people can go on twitter and post more things, maybe they go less and less to other alternatives like the one you referenced. liz: mark, do you get the sense that elon musk, when he first put out his offer for this deal was very knee jerk? you know, that's what i get the sense of and he didn't realize when you do sign something that says i relinquish my opportunity to do due diligence. for those that don't know what it means before you buy a company and you're serious, you're allowed to go through the books and find anything that doesn't pass the smell test and he sign that had away and he's with the delaware chancery court that holds up the rule of corporate and contractual law clerks does it not? >> i'm not a lawyer and i won't play one here but i'll tell you i think you're spot on, liz. i think it was a knee-jerk
3:07 pm
reaction for obviously a very smart individual but at the time, there was some floating competitive at least rumors of competitive bids. whether or not they were real or not, who knows. but i think it was somewhat of a knee-jerk reaction here and he thinks where valuations had gone since the social media landscape. liz: let me once again stress, so far this is just a report but the stock has been halted for now exactly three hours and two minutes. noon, 12:05 is when the stock was halted and again, it's not traded thins then and halted at $47.93 after spiking -- actually about 15% on the bloomburg tweet there was perhaps a deal and he wanted to back out of the deal in july and he realizes, well,
3:08 pm
you know, got to hold up, contracts got to mean something. so, mark, when we broaden the discussion out, what does this mean for corporate america and for the would be elons of the world who throw out ideas of hey, i think i'll buy you and don't want to come through with it? >> well, that's a good question. i think elon sort of stands out here in sort of passing on due diligence and he does obviously make some pretty aggressive decisions and obviously he's been quite successful with most of them but, you know, i think this one is unique and -- liz: hold on, guys. we have a tweet from elon musk and it apparently is -- he has filed an sec filing on twitter -- hold on. what does it say? i can't open it. intent to proceed to close the deal to purchase twitter. at that price, melanie: $54.20?
3:09 pm
no word on the price yet, gentlemen. mark, your reaction? >> well, rumors are spot on. he wants to get this done. sounds like he wants to get it done quickly too. you know, i've heard as early as friday, but i'm not sure why that necessarily is the case but we'll see. liz: scott, what does this say about twitter? let's talk about the business. he uses the very format, he uses the actual platform that he ripped and criticized saying there were too many bottom panels and he's smart saying i'm stuck with this thing and i better use it if people want to add on and get to twitter and post my sec full-timing to buy the company. >> well, seems appropriate and honestly throughout this process, musk has been regularly posting on twitter and what does this mean for twit sneery at the
3:10 pm
least it means -- twitter? at least a ton of change that could happen and that priorities don't necessarily mean all the changes and the as muchuation and if musk ends up buying twitter, change is coming and people better get ready for it. liz: another one, yet another headline, guys. we're putting this on the lower banner. let me read it, elon musk, apparently the party's intent to proceed to close the transaction contemplated by the april 25th, 2022, merger agreement with twitter. that to me says $54.20 mark, doesn't it? musk parties provide this notice without admission of liability and without waiver or prejudice to any of their rights. i would suspect the stock would begin trading relatively soon if he's just done this, what do you think? >> yeah, absolutely and i think
3:11 pm
what's going to be most interesting is where twitter goes next here. your guest just mentioned this that both elon and jack dorsey in the private conversations that have been made public is advertising doesn't scale on twitter and that surmises that we'll go a different direction here and possibly look at a subscription based plan in the future, but he's buying this company at a pretty precarious position where advertisers have been pulling dollars from the company given all the uncertainty. he's got -- i suspect his thinking the new twitter will be better than the old. the old certainly didn't monetize advertising very well. liz: gentlemen, thank you.
3:12 pm
scott,&mark, thank you. as we have these breaking headlines let me say this one more time. and elon does intend to proceed to close this deal with twitter at the original terms stated april 25th of this year. that would be $54.20 a share and stock is still halted and that's what you're seeing on this screen, since 12:05 at $47.93. the big question you have to keep your eye out for, when and if this starts trading again at this session today, does it pop up to the buyout price? higher, lower, $54.20? my guess is it probably won't reach that or maybe it might hit it, who knows. but elon musk, you can say is stuck with the company he tried to dump after he announced it. what we're going to do is charlie gasparino is getting in front of the cameras and has a whole bunch of breaking news on this and we'll take him in a few minutes and let him work the story and keep our eye on twitter and put it at certain
3:13 pm
points to the lower bug and a ripper of the rally of yesterday's 765 point gain. look at dow jones industrials up 675, not even the high of the session. the high of the session a gain of 817. s&p adding to yesterday's 92 points and the jump right now for s&p up 93 and the nasdaq is gaining another 304 points aftey was a big one of 239 points. the major averages getting a jolt from the jolts, the index that shows monthly job openings and labor turnover actually august job openings fell more than expected to lowest level since june of 2021. but they still came in a lefty 10.05 -- hefty 10.05 million. that's the bigger number you should be foe cushion on and slightly -- focusing on and investors are interpreting it
3:14 pm
like that. nasdaq up 309 or a game of 2.8% should investors be turning to tech? joining me now is revere security scott fullman and gain of 200 points and nasdaq has really seen percentages here. what's your thought? >> we were way oversold. last week were were almost panic selling and the fact is we've been seeing lower lows being set and new cycle lows and a bear market last week and the indicators were oversold and the fact is that people are starting to look and say, okay, bad news now maybe start to be good news. maybe it gets the fed to stop raising rates at the rate they've been doing. liz: we'll get in the fed argument once again but don't we need to see the fed get back to normalized rates. we are not in an emergency situation anymore so normalize the rates so we can get
3:15 pm
inflation down. you think they're going to back off of that? >> so there's a few things with that. first of all, there's certain things out of the fed's control. with energy prices way up, they don't control that and regardless of interest rates, there's no impact and also with the labor market as far as wages, legislation has lifted wages way up and here's the thing, compare what's been happening in the united states to other countries. i'll give you an example: turkey. 80% inflation and they're cutting rates and their market is up. liz: that's a benchmark i'm not interested in comparing. >> it's the liquidity. liz: are you not buying on a day when we're aaron rodgers and ro? >> go in and buy small portions of things, don't buy a whole meal. buy a 20, 25% position in semiconductors. buy a 20, 25% position in
3:16 pm
consumer discretionary. these are companies that have been really beaten up and there's a great opportunity there. liz: great to see you. scott fullman, thank you so much. >> same here. liz: dow up 689 and x today's rally in the twitter news and headline out of the world's finance and changing of the guard at the largest hedge fund on the planet and ray dalio ceding control of the firm he founded 24 years ago but david rubinstein and his pal coming up.
3:19 pm
millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them... add a line to your existing plan, or see for yourself how easy it is to save by talking to our helpful switch squad at your local xfinity store today.
3:20 pm
3:21 pm
indicating that he will go through with the deal to buy twitter at his original price of $54.20 a share, total of about $40, $41 billion and twitter at $47.93 right now. we are expecting that maybe this hour or what's left of it 40 minutes that it will start trading with me. we'll keep a very close eye on this and let you know the second it happens. is billionaire investor drama to another. here, ray dalio hanging up officially his hat with bridgewater associates and he's given control over back to the firm he built out of his new york city apartment in 1975 and built it up to be the largest hedge fund in the world. all this as the billionaire investor had a change of heart about cash. so we always are interesting to hear what what ray dalio is investing in the markets. just ahead of this news he's stepping down, he tweeted "the fact of change and i've changed
3:22 pm
my mind about cash as an asset, i no longer think that crash is trash". dalio said with the fed hiking interest rates and shrining balance sheet is that cash is the new neutral and neither good or bad. he'll be saying here as the markets hold onto another strong market rally second in a row and bear market or real thing? bring in billionaire investor david rubenstine and how to invest masters on the craft. the cofounder and co-chairman joining me now. we've got dalio and elon musk and start with elon at the moment. you had a opportunity on a private setting to talk with him. what's your thoughts about him? i'm calling it throwing in the totowel and he thursday and saturday to buy twitter and probably realized that . >> i wouldn't call it that but
3:23 pm
he's a very smart person and he's playing chess when the rest of us are playing checkers. my impressois that he thinks he did -- impression is he thinks he can add value to twitter about changes he wants to make and the is intellectual value and firm imact on it and it's a challenge and i think he feels he can get it done in a relatively short period of time and make changes that will make the company worth more. liz: i understand what you're saying and he's absolutely brilliant and playing chess on certain levels when the rest us are playing go fish with the cards. he underestimated with his power in the world and where his net worth was falling and it's a
3:24 pm
very mercurial to buy it and it's a pretty sobering. >> these kind of transactions and you agree to complete the transaction you were obligated for the break up fee and he agreed to the fee and agreed to specific performance and thanksgiving a very difficult thing to get around legally a and -- liz: let's get to ray dalio and he found it in 1975 and built it up to the largest hedge fund ever and he's officially stepping down and he says cash is no longer trash. you have a whole chapter in your new book on how to it invest in re dalio. what is he saying there? is he saying hold dry powder
3:25 pm
till the lower lows come in? >> when he said cash is trash, which he said a year or so ago, he was saying interest rates are so low that if you don't have cash, you won't get much of a return. with interest rates higher, if you own cash ryan higgins treasury builds, it's not as bad as it was once but it's not as good as he thinks investigating in his fund and not that east hs giving up investing on behalf of bridgewater, he'll be the cio or co-cio, which means he'll make the nefsments or help and -- investments or help and he's not going to take the responsibility of managing all the people of bridgewater. liz: really quickly, david, with the how to invest book, the most important message that people will get from it? >> most important message is if you're not a professional invests, get somebody who really knows what they're doing to manage your money, and i think you'll be better off trying to beat the markets as an average
3:26 pm
investor is not easy to do and also i would say it's very important are reek nice when markets are cratering and going down, it's not the best time to sell but maybe buy. when the markets are going up, they're buying and when the markets are do do going down, they're selling and you should dot reverse. liz: david, thank you so much. twitter shares are still halted. we're coming right back.
3:31 pm
liz: break news, twitter now weighing in and a company spokesperson saying the company received the letter from elon musk and the parties related to musk they've filed with the securities and exchange commission and musk says he'll go ahead with the deal around the social media company and the plight of $64.20. twitter is accepting and says they have the intention to close out the transaction at that very price. the stock still halted and we are hearing that does not have to and getting halted around 12:05 p.m. eastern time today around news pending and the news is that elon musk will end up buying twitter for $40 billion. let's get to some other individual stock stories here.
3:32 pm
nasdaq and the ilumina upgraded from market perform to outperform. investment bank has its price target from $220 to $270 and stands at $204 right now and the machine and instrument of choice. take ago lead and zooming higher by 13% after announcing it produced 67% more vehicles in the third quarter compared to q2 and ev van maker reiterating production target of 25,000 vehicles and if you look at lucid and general motors, they are also moving higher and you've got lucid powering up higher and look at ford though, the pop on ford here up 7% on
3:33 pm
news that ev sales tripled in september to 4,691 cars and at that rate, ford could produce 61,000 of them and ford up $12 right now at $12.30. it's only been public since january of 2021 but already posh mark agreed to the price of $17.90 per share, which is below the $42 ipo price and analysts believe there will not be any competing bids for the social commerce place and the stock action shows that and we're at $17.63 and below the buyout and web bush lowered it to neutral and raised price target to the reseller site to a, yes, raised its price target. doesn't say to what. let's say this, micron, chips,
3:34 pm
planning to build largest u.s. semiconductor factory ever and dubbed mega fab and it'll be in clay, new york and chip maker investing up to $100 billion over 20 years to build a plant. separately micron broke ground on $15 billion project in boy b, idaho, where it is headquartered. liz: florida's orange grove is under water from hurricane ian and how the devastate is squeezing farmers and how much it could cost for the favorite breakfast br brink and what it means -- drink and what it means for orange buyers. he overcame that and was starving himself to death and instead he dedicated his life to service and who newbie creating
3:35 pm
bear performance nutrition, he'd been a mul multimillionaire and helped dr driving his team forwd and it's the brand new edition of everyone talks to liz podcast and get it right now and dropped on apple, google, spotify, anywhere you listen. it's an incredibly important story and the three words, how did he become a multimillionaire? he kept repeating the three words. dow up 707, 708 at the moment. high of the session a gain of 817. we are coming right back.
3:41 pm
the search for hurricane ian survives as storm related deaths in the u.s. now climb to 103. utility companies working around the clock to restore power and they've restored power to millions of people with 400,000 customers are in the dark and the president and first lady are set to tour the damaged region tomorrow. the full assessment is in today. they predict ian will be among the top ten costliest storms in u.s. history and with the 2022 and 2023 season set to start in eight days, initial surveys of florida's famed citrus crop are also coming in at a devastating assessment. orange juice futures continue to sit near their highs of 2022 and it could connell to climb as the level of damage -- continue to climb as the level of damage becomes more clear. florida produces 51% of orange production value. let's get the story from the ground.
3:42 pm
joining me in a fox business i collusive matt joiner in a florida citrus exclusive with a trade organization representing the state's citrus industry. first, sir, can you tell us what you are hearing from the farmers? what do the crops look like and is there anything that's been saved? >> sure, liz. well, thanks for having me and, yes, we took a devastating blow from hurricane ian. there's no doubt about it. the industry is struggling really to get their arms around the damage assessments in some instances because along with a significant wind storm, obviously the hurricane brings, and we had a significant weather event and our producers are not even able to get to their properties to properly assess what the outcome of this storm is going to mean for their operations, but we're hearing from some of the hard especially impacted areas up to 80% and maybe even higher, fruit loss, quite a bit of tree damage and this one will have a significant impact in my of the hardest --
3:43 pm
many of the hardest hit areas. liz: sounds like there's impact not just to the output of the crops that you would expect or what you would reap, but also orange juice production here. can you give us a sense of from tree to what people find on their shelves, what we can now expect. >> it's really early to tell in the assessment phase here what the outcome will be. our season would have been cranking up in about six weeks and so we're going to know better as we get into the harvest and then into our late variety citrus, just exactly what the volumes will be, but no doubt we're going to see a depressed harvest as a result of the storm. liz: any lessons that the citrus growers learned? we know during hurricane irma it was an absolute disaster for the citrus growers as well but can anything be done? >> you know, there's really not.
3:44 pm
when the fruit is blown off the tree, you've lost it. along with that, the stress these trees have taken from standing water and wind could create more fruit drop as we go on and there's really nothing you can do to prevent that and ultimately time will tell. this will continue to unfold over the course of the next few weeks and unfortunately there's not much salvage in an event of a disaster like this. liz: matt, thank you. thank you, very, very much and i do appreciate it and we wish you the very best. good luck to you. twitter shares have just begun trading once again and they're popping by 22%. can we put up a chart here and they're up $51.86. what did we tell you? unlikely that we would get up to $54.20. right now we're at $51.81 and climbing as i said but the news of course is that the deal is back on. elon musk will buy the company for that original $54.20 a share
3:45 pm
price. and you can see that after having been halted for several hours, we do have it operating once again, just started trading again at that price and we're watching this tick by tick, $51.82. twitter of course had said that they had receive add letter from elon musk, and the reversal was on. no doubt just a few days from now, october 1, he was to face off in court against twitter, which had sued him for trying to back out of the deal climbing that they were -- claiming they were not being up front about the number of bottom panels or fake accounts and he had signed away his option to look at the books more closely. instead saying i'll take it as is. as we see, as it, it's not as much as what he's going to pay for it, it's at $51.79 and we're going to continue watching this and charlie gasparino is working the phones as well. specifically, what got him to i'm not buying this thing or i refuse or this is all a scam. i don't want to buy it to, okay,
3:46 pm
i'm filing with the sec, i'll buy it. charlie is working on that right now. the closing bell is under 15 minutes away and we're coming back on the day where the broader market is having a terrific rally here. every single dow jones industrial stock to the upside with boeing as a leader followed by sales force, goldman sacks, caterpillar, jp morgan chase and walt disney. ♪
3:49 pm
as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today.
3:50 pm
comcast business. powering possibilities. ™ millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them... add a line to your existing plan, or see for yourself how easy it is to save by talking to our helpful switch squad at your local xfinity store today.
3:51 pm
♪. liz: all right, look at twitter shares again, high of the session. about $52 and change and now we're starting to slide back a little bit. $51.50. this as twitter says it will accept elon musk's original 44 billion-dollar acquisition offer for the social media platform which charlie gasparino has been manning the phones trying to get more details how he went from no, i don't want to buyth sure, i'm filing with the sec. >> twitter said they would accept it now? liz: yes. >> they're on the record with this thing if. liz: yes. >> that is interesting. here is the interesting thing from my standpoint. i've been months reporting skepticism in the market. he wanted the property. but a lower price.
3:52 pm
what made him buy it at a higher price? no one really knows. we can surmise interesting things. number one, the trial, discovery wasn't going well for him. his whole premise there were so many bots he didn't know about it, that will depress, like taking away the value of twitter, 54.20 bid but then you see the e-mails he is sending jack dorsey and all these guys, i know twitter has a huge bot problem. i can fix it. yeah, only you can fix it, elon. it kind of undercut his argument. the on top of that, the judge is no-nonsense judge, chancery court judge. apparently she has a record not throwing lifelines to crazy billionaires. liz: she holds people to contract all obligations. >> remember he said he would not due do do due diligence. rejected due diligence. liz: signed his right away. >> he basically said in the
3:53 pm
documents, you can see me in the documents t wasn't looking good for me. i wonder what else he was worried about. let's preface all of this, this is not a deal until it's a deal with elon musk. he has been, you think about it, last year he wants it. then he says, maybe i don't want it. then he says he definitely doesn't want it. now he is back to wanting it. you could see him pull another 180, right? liz: yeah. >> it is him. we should point out he didn't want it because it was so obvious he didn't want it, tesla, his company tesla -- liz: let's show that that. his net worth is in tesla stock. >> it got crushed,. liz: since the announcement he originally wanted to buy the deal back in april. here it is. no, that is not it. can we get that comp so we can show you. >> there you go. liz: look at tesla since he first announced he wanted to buy twitter down 34%. >> it is really, what is really remarkable about this is that he
3:54 pm
is supposed to be a brilliant guy. he just did stuff that was not brilliant here. liz: david rubenstein was on, he h elon is brilliant, playing chess when we're playing checkers. in most cases but not on this. we have done research here. there are some who believe that the discovery as you mentioned was not going well. a lot of his private texts were shaken out, among them in the past 24 hours a lot of attention was to the private texts that his ex-wife had been sending him before april. in fact in march, riley, an actress, the ex-wife, can you buy twitter around then delete it please. march 24th. then later she said, or can you buy it and make ratedally free speech. so much stupidity comes from twitter. >> what does that show other than -- liz: now his ex-wife is being brought into it. this is getting too uncomfortable.
3:55 pm
>> listen he went to war with them. you know, if you go to war with them, if you start putting, going on twitter and attacking the ceo and making statements about they are liars. remember what he said, if you really come down to it, i'm not saying he is totally wrong, but he said they were misrepresenting materially the amount of fake accounts on that site. so, that means that jack dorsey, his friend, who he is conversing with costello. liz: dick costello before dorsey ceo, then dorsey, ceo, that means all three of them committed serious securities fraud. that is what he is saying. making a mistake. not just rounding the error, purposely committed securities fraud that could, in the point, like if you put something in a document like that, you know it is false you can go to jail. liz: you can't just shoot from the hip like that.
3:56 pm
now what do you think about the report a couple days ago, manuel, the big agent over at endeavor, tried to broker a deal between twitter and elon musk just come to an agreement of some sort? there were a lot of people trying to get in here and help bring the sides together. >> yeah. i mean, listen, it makes sense. what did he want? he wanted elon to pay less and -- liz: he is the reason that naked picture of elon got out there, right? that's right. he was pretty ripped as i remember. he was in good shape. liz: ari, totally. >> here is the interesting thing. let's say he came in to broker the piece. twitter said, no, let's go to court. liz: because chancery court holds people to contracts. >> they must feel good about the bots, disclosures. they must feel like if we got it wrong it is not materially wrong. it is not fraud. they also must feel they have good stuff on him. that the judge would rule in
3:57 pm
their favor. by the way, i wonder if the judge would not force him to buy the company but pay damages. is that a possibility? liz: that is good question for professor coffey at columbia law. >> we have calls. liz: thanks for, the shares are well below, well below. 54.20 is the buying price. >> why is that? is that so weird? liz: look at the markets, session highs. if you stayed with me this whole hour, it has been a rocking rip reporting rally here. dow jones industrials up, a second ago 819 point. we're flipping all over. we're up 786. we have three minutes to trade, let's bring in guidestone capital management cio, david spika. what do you make of the rallies three days in a row, nothing has changed with the federal reserve, there is lot of optimism for the markets? >> liz, it's a bear market rally. it is an oversold rally. the fed means nothing.
3:58 pm
the fed will continue to be aggressive. we have not priced in recession. all this because interest rates grow up. in recession, earnings average 30% drop in a recession that is the next shoe to drop. liz: i'm looking for the dow for the quarter, the quarter started two days ago, 5% gain for the quarter, same for s&p, same for nasdaq, 7% for the transports. what do you like here if you feel this is just a bear market rally? >> you have to be with quality right now, liz. when you go into a recession you need to own quality. companies with earnings visibility, health care, tech, humana, microsoft, these are companies with food earnings visibility, double-digit growers. that is where you want to hide out in this market. plus why not cash? cash is yielding 3%. you have can get 5%, high quality, short-term corporate bonds. why not put a little money there? i'm with ray dalio there. liz: ray dalio we showed the tweet. cash is no longer trash. would you do what a lot of people are considering doing?
3:59 pm
looking at treasurys, put it in a two-year with yield of 4.1%, park it there before you feel the bottom is reached. >> you have a little risk two years because that has been volatile. you have short duration. you at a point go out on the yield curve to longer 10-year rates as we move into recession. liz: we have about a minute left, david. you have multibillions in assets under management. what is the best advice to investors with a little bit of cash, they are waiting at the moment to put it to work? >> continue to wait. look for short-term investments in bonds and cash. you will get an opportunity to buy at cheaper prices. so wait, be patient, don't panic. wait until we hit the bottom. when you see things like the fed starting to cut rates, they're indicating a pivot we're not yet, that is when you start buying. liz: when you start buying, so says david spika. wonderful to have you, my friend. nice to see you again.
4:00 pm
folks on a day where the volatility index has dropped below 30, not a lot of fear at the moment, down 3%. the dow, the s&p 500 are rallying very close to session highs. [closing bell rings] looks the dow will put in a gain of 811 points. we're 200 points above 30,000 for the dow green on the screen. how much fun do we have here? you have to join us tomorrow. larry: hello, folks welcome to "kudlow," i'm larry kudlow. i want to open tonight with a couple of topics. first up, there is a nice looking stock market rally. the dow is rising, i don't know 1350 some-odd points over the past couple days kind of out of the blue after a dismal third quarter. year-to-date still bear market territory. the broad-based s&p 500 down 21%. now permit to ru
57 Views
IN COLLECTIONS
FOX Business Television Archive Television Archive News Search ServiceUploaded by TV Archive on