♪. charles: i've said it before, i'm going to say it again, it is time congress stops looking out just for their own wallets. i want to check out the ad. against democrat tom and hits him for stock trading. take a look. >> extreme liberal tom wallanoski under the might be skop, uninvestigation for profiting off the pandemic. he bought and sold million dollars in stocks with a stake in covid recovery. he profited. charles: here's the problem, they all do it, folks. as of today i'm not bringing on more elected officials, congressman, senators if they don't want to talk about this we try to book them on this. they stall us. give us all the tactics. americans are being underserved by everyone including folks in congress. time to make it stop. liz claman. over to you. liz: 72 members of congress have violated something. charles: it is nuts. they're doing things with

lobbyists, lobbying them, it's done. it is over. it stops. liz: both sides. charles: yeah. liz: charlie, charles, thank you so much. fox market alert. stocks are in the process of deciding which way to go, right? just in the last hour we got the rear view mirror look inside of the minds of the federal reserve. the release of minutes from the september meeting. the dow up 61 points. s&p turned negative, down one. s&p up paltry five points. russell down one point. what did we see in the minutes? a hawkish fed. members agreeing that the committee should keep tightening interest rates even as the labor market slows which it is not yet unless i'm missing something. inflation still remains elevated. ongoing rate increases are appropriate according to the officials you about some fed heads during the meeting said they wanted to, here is the important word, calibrate rate increases to mitigate economic risks. maybe that is why stocks are kind of deciding maybe these

minutes are not as bad as we thought they might be? u.s. treasury yields edging lower after the fed minutes were released with the 10-year yield initially ticking down two basis point to 3.193% and then now the markets are interestingly on the move even after the september producer price index number. the headline number was bad, folks. inflation at the wholesale level in september came in higher than expected month over month and year-over-year, showing prices rising at an 8.5% pace. returning to four decade highs. core number, excludes food and energy which we all need to use, but again it is whole sale maybe we give it some wiggle room, came in pretty much in line. that is not what might have the markets deciding to move higher slightly. high inflation has few wins. you can be sure of that but team "claman countdown" wonders if these market gains you see as we kick off the final hour of trade perhaps reflect investors acceptance that the fed maybe

does kind of know what it is talking about when member after member keeps stressing while they do have to stay aggressive on interest rate hikes. the latest? neel kashkari, minneapolis fed, not a voting member but an alternate. he repeated that the fed's job is focused on bringing down inflation, and the fed, this is a quote, aways a way from stopping raising rates. we should look at crude oil. oil is cooling down 2 plus percent. oil 7% over the past six months. it has dropped 16%. what is still boiling hot? services travel, leisure. cruise lines are real winners this hour. carnival, royal caribbean, up 11:00%. ubs is turning bullish on the sector. companies are strong, prices are able to keep the prices above,

ready, 2019 levels. airlines up. united expanding international routes showing strength across the board. the fed does not want inflation to become more entrenched than it already is. what do we mean by entrend muched or sticky? pepsi shares are up nearly 4%, the ceo said not only 17% price hikes from last quarter, those stuck. people paid them but they have just raised them again and will keep raising them to tackle current high inflation. fed does got want consumers to get used to high prices. i think conagra said the same thing recently. as pepsi moves higher, what does it mean for markets as the big banks kick off earnings tomorrow and friday? let's get right to the floor show, still my heart in studio, teddy weisberg and leuthold securities doug ramsey. ted, let me ask you straight off the bat, earnings season, goldman sachs and schwab, on

friday, which get jpmorgan, wells fargo, citi, pnc, what should we be looking for? will it be a shock, negative, or upside surprise? >> companies tend to gain earnings a little bit so they have upwards surprises. it is earnings trifecta, always is, top line, bottom line and guidance and i think of the three perhaps the most important is the guidance, liz. because markets are forward-looking. stock prices are forward-looking. the guidance is forward-looking. the message that liz: doug, talk to me about where you stapedius muscled as far as your sentiment on equities right now. >> we're still cautious. i mean, markets are down a lot, but from historic valuation highs, just six to nine months ago. we're nowhere near where we would begin to cover hedges on a valuation basis alone. that being said, there's been other reasons to cover just in the last four years a couple

historic fed pivots. we're a little ways away and probably more optimistic on the inflation front than most because of the stock market wealth effect itself. in other words it's shifted into reverse after being historically positive and that in and of itself will tend to quell inflation over time. stock market wealth, it's down 25% and the market peaked at more than 200% of gdp. the loss in wealth relative to gdp has been very large, almost as large as it was during the great financial crisis. liz: teddy, we've seen valuations come down as doug says, but in some cases, i mean, you look at fangs for example. those wall vagueses have -- valuations have come way down and people saying i'm in the money. it was paper gains and have they come down enough to the point they're attractive? >> you'd think they're pretty well sold out like kicking a

dead horse. but the problem is every time they look cheap, they look companier and thinking they're going to tell us when they're ready to go up inspite of what the markets -- in spite of what the markets are doing and i'd tell folks when we came out of the financial crisis in 2008 and 2009, it took big tech names that survived like microsoft and took ten years for that stock to recover to get back to where it was prior to the crash of '08 and '09. i don't know where the bottoms r. nobody does. they'll get there eventually, but in terms of recovery, it's going to take more than a technical bounce to get them back to anything reasonable. we'll need some things to change.

liz: what sign signals do you wh most closely that give you -- well, a buy or sell? >> different types of market lows. as long-term investor in me was plenty alert working -- with plenty of working years ahead, i'd love so see a low with great working economy and fed policy. we're not there yet. throughout this year, technicians thought they spotted a bread thrust and five or ten market buying power and we got one in august and it failed. i think that's something to be working or looking for i should say over the next several months, but one area that's become interesting, it's not fully developed yet on a valuation basis, but small cap stocks. they've underperformed for a long time and gone down more than large caps.

liz: russ sell down year to dato date 24.6% and s&p 26% and nasdaq 23%. >> yep, but nasdaq outperformed so much more on the way up. i he'll mean, small caps are well below the peaks they made in 2018 with fundamentals marching higher. i think they'll have a lot of leverage when woe finally have the turn, which i don't think comes till next year. liz: teddy, give me one sector if somebody watching has money burning a hole in their procto, what's safe to buy right now? >> treasuries. liz: which part of the yield curve? >> the three months because for the moment, cash is king. it's just, liz, it's just too hard. the wind is in our face, not at our back. it's just too difficult, but if i had to pick an equity sector, i'd probably pick the insurance stocks and the reason i'd pick the insurance stocks is because they're low -- they have tons of

reserves and with interest rates going up, it's going to really play positive on their balance sheets. liz: aig, chub moving higher. thans to both of you and good luck to you, doug. doug and teddy, thank you. it's great to see you both. the world's richest man, does he want to buy twitter or does he want to make perfume in elon musk in the last 18 hours has changed his twitter description to perfume salesman. musk's musk is called burnt hair. i'm not kidding, essence of repugnant desire as tesla ceo turns joke into product launch. it's no laughing matter for twitter shareholders. nyu professor of marketing is here next live to talk about the visionary for musk to buy or squirming out of twitter and now book adrift has readers worried about america. should they be? closing bell reading in 49

minutes and next on the c "clamn countdown".

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liz: as the elon musk twitter saga remains muddied at this hour, the social media giant in the last couple of hours has given a little bit of clarity on the chances donald trump will be allowed to return to the platform. twitter sources confirming to the financial times that while the company is reviewing pol policies around permanent user bans, any chances will "unlikely pave the way for return to twitter for trump because removing bans for policy against inciting violence is not under

consideration". trump was banned on january 8 of 2021 in the wake of january 6 riots outside of the capitol. musk wants full free speech on the platform and after later mut loomed, made a last minute effort to consummate the buyout instead at o online. this is one of many issues that faced twitter according to entrepreneur nyu school business professor of marketing and scott galloway and details in 2019 he purchased a small stake in twitter and wrote a public letter to the board and highlighting lack of innovation and weak shareholder returns to called on them to replace ceo

jack dorsey. activist fund elliot management signed his letter and secured three seats on the board and nothing much happened after that. scott galloway joining me now in a fox business exclusive. scott, did you order your burnt hair perfume yet? >> musk hair musk. liz: is this deal going to close with twitter and at what price? >> yeah, dropping the hammer of the dow -- [inaudible]

twitter -- $54 and he's not measure de-dun want to close. he's going to -- doesn't want to close. he's going to be compelled to live up to the -- l liz: you know what, scott is coming to us live from london and we're having a little bit of trouble with the connection so what we're going to do cause we want to hear so much more from you, scott. stand by, please. we're going to try and reestablish the connection. we'll take a quick break, take a look at markets. dow jones industrials showing gains up 65 points. right now 10-year yield at 3.91% and reestablish ago better connection with scott and we will be right back. i promise you it's a can't miss interview.

liz: 48 minutes before the closing bell rings, i do want to turn your attention not just to the markets overall but as you look at these numbers, we are in the green even after we got this very not supportive producer price index. tomorrow we warn you cpi comes out at all and consumer price comes down and changing for now but the dow comes up and the top s&p 500 and it granted emergency use authorization for the drug

makers omicron taylored booster by moderna and the vaccine boost up 4.5% and it's getting a boost after planning to work on cancer vaccine with the massachusetts-based company. merk will pay moderna $250 million for joint development of the vaccine in phase two of trials. forming strategic partnership with brookfield partners to awire westinghouse and down 12.7% for 7.8 billion from brookfield business merri bowls and bought them in 2018 after the company fell ooboo bankruptcy in 2017. it's up 51% interest in

westinghouse while iowa hawkeyes rain -- i iranian minor down 2.. netflix nearing a deal to build a huge complex near the jersey shore. netflix up 3% on the bid and more approvals needed and this puts them close tore building a major production complexion in the northeast. and el pollo loco, i used to eat there all the time when i was a production assistant. they jumped 15% after declaring a special dividend share. it'll be paid to all shareholders as of october 24th.

board chairman said the restaurant chain continues to build balance sheet and believes it is time to return capital to shshareholders. the stock lost more than 35% of its value over the past year. we've at least establish add conversation right now with nyu stern professor marketing and entrepreneur scott galloway and newest book adrift america and hundreds chart is number 7 on new york time's best fiction sellers list. scott joining us in a fox business exclusive. we couldn't hear you from the london studio so we established a phone line here. i want to make sure that people heard my first question to you and your answer and that was will this twitter at the scene la deal, twitter elon musk deal pay for in much of the at the scene la stock, will that go through and at what price? >> good to be with you again, liz. i believe it will but only under the threat of being compelled by the delaware chancery court.

he signed what is pretty much a hermetically sealed deal and contract law will win here and he doesn't want to engage in a deposition and under the forced closure, he does not want to do this deal between the time he made a bid for $54 and right now, the natural level of the stock would probably be somewhere between $12 and $20 a share. he walks into this owning it reluctantly and down 60% on day one. in short, liz, the deal will close because it has to. this will be a victory for contract law and this agreement held and you happen he'll be compelled to close. liz: in functioning markets and deals, we need to hold up these contracts. he had gone all in. he reversed major buyer's remorse because the market started falling and tesla stock started falling and he started making all kinds of noise. it went entirely out of the blue

and talked about bots and spam accounts for a long time even before making the bid. but that happened and the turn around suddenly, may 14th he halted the deal and later he said, no, no, here's. i'm ready to go back to the original price. you referenced the deposition and said that's what it's all about. >> he's engaged in a series of let's call, i don't know, mistruth or untruth all along the way. the notion that somehow he didn't know about the bots i think his text messages evilled that he in-- revealed he knew about the bots and doesn't want to go you aren't oath and he's been communicating with people and recent stories of him possibly having open communication outside of government channels with putin. this is not somebody who wants to go under oath. so he's done everything he can to get out of this deal. he also -- keep in mind, he

planned to move forward a deal but only on the option they delay the case and put in a contingency around financing so he was asking twitter to disarm unilaterally to create a pretext deal and twitter is not 2358ing8 falling for it. twitter shareholders $24.54 of a delaware chancery court that's worth $12-$15 a share right now. liz: scott, we're looking at your adorable face. thank you for establishing that to all the people involved. moray dan stanley committed -- morgan stanley committed like $13 billion to the deal. how do they feel and wall street about elon musk? >> hurt badly. they committed to this deal and underwrote it when the interest rate was different. interest rates have spiked meaning an order to deliver on this deal, they'll have to sell this debted financial discount. you're looking at somewhere between a half and will a billion maybe 1.5 billion loss

on the part of the syndicate that underwrote this debt. it's a terrible day for those bankers. liz: scott, who comes out the winner here if there are any? >> simple, the twitter shareholders getting $54.20 for a company that's probably trading right now somewhere between $12 and $20 a share. keep in mind, liz, when he closed or signed this deal, since then meta is off 20 or 30%, snap is off 20 more 30% and logically means they're probably somewhere between $15 and $20 a share and showed up day one down 60%. liz: what he finally does with this thing and comes to pass and never know and what is the first thing you think he needs to do to make this dog bark?

>> they'll have more users than they actually have and offered up as payments platform and background of payments app and foresight identity and some of the toxic vile stuff is done by bots and fake accounts and make it a safer place with more verosity. liz: donald trump will more than likely not be re-instated and saying that discussion is not up for discussion meaning inciting violence is not acceptable on twitter. if elon owns this thing, does he re-instate donald trump on the platform? >> none of us know. my bet is no. no.

liz: why? >> you have two individuals that enjoy being in the headlines and musk likes the headlines and donald trump had no access to 70+ million followers and musk likes those platforms and we have more with everything. scott, i was hearing any names floated. my last question on twitter and move onto really major topics people want to know about too. >> people talked about executive from spacex. i think he'll bring many somebody confident. $45 billion is a lot for the wealthiest man in the world and i'd be shocked if he didn't bring in a fairly confident business leader and give elon

credit and have companies to attract and retain world class talent and great companies and greatness in the agency and i don't have any odds on bets for who's the favorite here. liz: i want to broaden the discussion to the tech route we've seen lately. how much worse does it get and which companies do you think will be most vulnerable to what's happening in the markets right now? >> there's a great episode of the simpsons where bart says this is the worst day of my life. and homer said worst day of your life so far. there's a traditional historic averages and there's a lot of companies that went way out over their skis and it could absolutely get worse and p of pae comes down and ratio collapse and you could see a lot of companies come up, 20, por30,50% and look at crypto sp, sin tech where a lot of people

decided there isn't a there there and they'll continue their decline and it's hard to identify a group of companies that should more to the be public and -- liz: the system is trading low -r than what people had hoped for certainly we've got some of the largest ipos of spacs and certainly the first half of 2022. i want to get to the book, the book is called adrift: america in 100 charts. we picked out a couple of these but some of the ones that really struck me or worried me actually and made me kind of depressed, you said that stock ownership heavily favors the wealthy. what does that mean by it and how is that bad? >> stock ownership is a wonderful thing and i'm just the

way you have is them favoring owners and we decided to go back to the reagan years and tax income and even the bail yachts we'd argue between -- bailout money ended up in the happened of top quintile households and ran out of stock prices that are your own stocks but it's also keeping prices i would argue artificially high meaning that younger generations have seen their wealth with percentage of gdp and going for amazon. i think we should let the gail force winds of destruction flow and not artificially prop up the

economy. liz: we want to end with this one, it's the first time in u.s. history you point out that 30 year-olds are not doing as well as their parents were at age 30. how do we fix that? >> that's the ultimate social ccompact your kids will do bettr than you. now more men and women at age of 30 are doing worse than their parents were at the same age, first time in history. it's a variety of things but tax, policy that stops transferring wealth from young to old. the two biggest tax deductions are mortgage interest and capitol gains. who owns homes and stocks and people my age and makes rent is young people. skyrocketing education cost, and we've decided the biggest transfer in the history of our planet from young people to old people in the form of social security, they're about to get their biggest raise ever. i think we have policies that

quite frankly transfer wealth from young people to old people. liz: the book is fascinating and i hope people look at it and don't be turned off by charts and it's simple and clear and some are very stark and worrisome and some give us hope. the book is called adrift and we appreciate it. we are coming right back. dow jones industrials right now, we do have the markets in the green mostly. yep, dow is now up 96 points. we're coming right back. ♪

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customers everywhere have become obstructingobsessive about rewas and pf changes created a model giving customers more bang for their buck with a platinum rewards club and is it enough for consumer angst. pf chang ceo. tell me, first of all, we got this producer price index number. tomorrow we're getting the consumer price index number that's inflation at the consumer level. you guys buy from pork and chicken to beef and rice to all of the commodities on that landscape. any mediation in prices moderating at all? >> weave seen month over month and quarter of inflation and prices come down on the food side as well as the building products on the other commodities and right now it's

sort of like we climbed mount everest and we've made some progress but you're seeing a cooling off. tell liz: are you seeing any behavioral changes in your consumer s? i would imagine you have over the past year because inflation is so high but consumers are making difficult choices, aren't they? >> they are. they are. it's a difficult environment for the consumer and we've gone from a environment with a lot of cash and ability to spend in 2021 to a sharp reversal out of fed and constrained households and reduced savings and forced people to choose where these dollars go. we've k seen some impact overall

and parts of the country in california seeing with elevated gas prices compared to the rest of the country, they've had consumers making hard iridesises. you're seeing pockets of weakness and incrementally more so. overall the consumer has been one of the strengths of the michigeconomy. liz: i would always pick your crispy beef over gasoline because it is so good. demola, i would be interested to find out how you feel at the moment about the labor shortage and are you having as much trouble finding people? are you having to raise wages because we've seen that on a national level. >> the job market is still very tight; right. that's been true really since we started coming out of the pandemic. labor participation is down relative to where we were in 2019. in a tighter market, you have to be more competitive and that's

been our focus to offer a more compelling work environment for our competitors to win in a shrinking pool. the job market is tight and driving inflation and wage increase from a tight market and haven't seen that ease up yet and latest unemployment numbers went down to 3.5% in the latest read so engaging on digital platforms with the loyalty guest and we want to reward the people who use this often. meme using multi-it will times a month or week and with this

platinum rewards program, there's the best bang for your buck in terms of value or experiences. we invite people to tastings and different events. they can get closer to the brand and really get tremendous value when they spend money and make that decision, which we know is a very difficult decision to make in today's day and age. liz: demola, we wish you guys good luck and lots of spicey beef. crispy spicey beef. >> you got it. thank you for having me. liz: it was the bump heard around the world as president biden tried to c convince saudi arabia not to cut oil, it was a fist bump. now the consequences to the middle east ally. that's got wall street wondering if the nation's energy policy is due now for a true major overhaul. charlie gasparino is about to break that next. closing bell, call it 13 minutes away and s&p clinging to a few

gains and russell up 119.

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liz: breaking news. president joe biden speaking right now in vail, colorado, to establish camp hail. the continental divide national monument that honors our nation veterans, indigenous people and their legacies. the president focuses on conservation, thinks threatening comments to salman bin abdulaziz al saud regarding oil production cuts that saudis, opec just made has wall street on the edge of their street. let's bring in charlie gasparino. >> i'm talking to these guys. read in between the lines jamie dimon is saying, others about energy policy here. you know it is pretty clear that we have a disjointed energy policy. that is what wall street is worried about. that disjointed energy policy baking into the cake inflation for years to come. here is what it is all about. if you go out and geopolitically attack, keep attacking the saudi royal family as bad as they are,

ally particularly against iran in that rough part of the world, you're going to do that, you will cult or discourage domestic oil production here, which the biden administration is clearly doing, they may give you permits, they don't give you the licenses. there is whole rigmarole why there is not a lot of refining and drilling going on if you do that you're playing with fire annoying the saudi royal family. you can see that what is going on right now. they are begging the royal family to produce more oil. they need to. oil is bouncing around, it is $92 a barrel last i saw. as they're doing that, they're also attacking him and he is saying he is going to cut back production. that is just not the way to deal with the saudis. >> russia is a member of opec plus. we are not. you can call it a cartel who cares. >> i will bring in guy, jackson who is banker that long time

deals with the saudi family, middle east sovereign wealth funds. they will not cave to anybody that attacks them every day in the press. you and i are in solidarity what mapped to kashoggi a horrible stain, sin, that is not the way you should conduct your affairs if urine -- you're running the royal family, leader of saudi arabia, at some point you're not going there, not in a position to go there you're playing with fire. that is what you will see wall street probably, silently tell president biden. liz: for donations, lack thereof? >> phone calls. it take as call to whoever in the white house. they pick up the phone whenever ceos call. liz: they listen to david reubenstein and larry fink. >> jamie dimon. liz: and jamie into they listen to them all. they're all saying you can't have it both ways.

listen it is one thing to attack mbs. gotcha. bad guy, did something bad. he is is the leader of a big country. liz: just don't go with your hat in hand. president biden claims he didn't go to saudi arabia with that. >> who cares? >> clearly now he is striking out against them because they cut production there is a shade that shows -- >> one of the reasons why they cut production because we attacked them. this is all payback. liz: yeah. but we attacked them because they didn't do what president biden would like them to do when what he said he didn't ask them to do. >> but you can't attack them when cutting domestic oil production. it is stupid. liz: agreed. >> convoluted, contradictory. liz: you need to stop, you turned the dow negative. >> did i really? >> need a reason to blame you. >> it did turn testify for a second. liz: i'm in bed with the shorts, did you hear that? >> i don't want to envision that, i can't unseat it. >> i didn't mean it that way of

course your sick mind automatically went there. >> i am sick, evil redheads you know us. closing bell. >> did they burn -- liz: torched us. god bless america. we don't do that here. closing bell. 3 1/2 minutes away. very choppy market action against of tomorrow's cpi the final hour of trade will be so important, it always is, but consumer inflation we'll watch it. s&p, we've seen it cross the unchanged level 117 times. 30 year fixed mortgage, highest in 20 years. 7%. the mortgage rates, average 30-year fixed on the screen. what does it mean for investing in real estate overall? bring in the "countdown" closer, greg kuehl, janice henderson etf. j.r. e. they have nearly 300 billion in assets under management. greg, the fund is not performing that well. what is your basis behind it?

>> yeah, hi, liz. it has been an incredibly tough year you know about every area of the capital markets, real estate included. >> true. >> i think what we're seeing in commercial real estate in general is, something that is getting priced in very quickly in terms of higher rates, higher borrowing costs you just alluded to, and the potential for an economic downturn. all of those things are getting priced into the listed real estate companies in a matter of weeks and months versus you know, what you might hear from sort of private real estate management companies who take up to a year or longer to price those things in. liz: okay, i get it but one of the things we've seen in the mortgage world that our viewers love to look at this stuff, higher rates, 30-year fixed 7.04% highest in year. the turn toward shorter duration, a.r.m.s, adjustable rate mortgagess show the viewers what those are returning.

30 year fix is 7%. average rate for five in one arm, fixed-rate for five years, 5 1/2% but investing in real estate, do you make a distinctin between average real estate or commercial where there is better opportunity because the leases are longer? >> what you're alluded to is really important for commercial real estate, specifically residential commercial real estate, right? if you think about the move in mortgage rates, 7% on the 30-year fixed the pace of the change is unprecedented how much the rates have gone up. you layer in a whole lot of home price appreciation that happened since covid as well and you look at the cost of owning a house on a monthly base is it is up 50% or more in some markets from pre-covid on a monthly basis. so that is causing problems for a lot of people trying to afford owning a house. that means people may view

rentership as more attractive option. single family reits or apartment reits should benefit where the rent only equation is more in their favor what you're talking about. liz: tomorrow the consumer price index, the largest component of it is rent. quickly before we go what is your best pick? you like prologis? >> prolodge is a great company. it sold off a lot this year. outlook for industrial logistics is good. everything is slowing but that business is really strong. so we think that is a great pick. liz: lovely to have you, thank you very much, greg kuehl. >> thank you. [closing bell rings] liz: s&p and nasdaq close down for the sixth straight day. final hour of trade tomorrow will be crucial to watch. "kudlow" is next. ♪. larry: hello, folks, welcome to "kudlow," i'm larr