was the scenario in almost everyone's head. the wildcard again had to be earnings. well i think obviously, it's too soon now, to put those inflation fears to rest. the anguish is going to be with us just a little bit longer; however, i will say when it comes to these earnings, right? we've had 35 of them this week, and they haven't knocked the cover off the ball but they haven't been unmitigated disasters. folks if you're looking for mini rallies over the next few weeks it could come from earnings. in part because there's so much pessimism about them, so keep an eye on that and if you're a trader or would like to trade 10% moves i think you got a few coming up. right, liz? liz: yeah, and you talk about pessimism? the world was pessimistic that fox business would ever survive, right charles? happy anniversary 15 years at fox business. isn't that great? charles look at this. charles: it goes so fast. it went by so so fast but you're right against all these odds against all of the doubters, here we are.

not only are we here liz but we're number one, we're number one. liz: [laughter] it is so cool. we rang the opening bell all of us 15 years since we launched the pledge link fox business network, charles you and i were the og's, you, me, neil cavuto, david asman, cheryl casone, dagen, yeah, that's us today, 15 years. charles: that's 15 it went by fast. can't wait for the next 15. liz: same here. oh, i like your thinking. i like that. tell our agents so to the markets which after rallying dramatically just 24 hours ago in this hour our retreating as we kickoff the final hour of trade the dow jones industrials down 338 points not even the low of the session low is a loss of 424 and the nasdaq hitting a new low for the year, down 267. we've got the s&p down 73 the russel is losing 38 or 2.25 %. look at the banks here morgan

stanley suffering its worst day since june after third quarter profits missed. we do have it down nearly 5% at the moment to $75.43. you see jpmorgan and wells fargo higher by two-3% a piece here. the real strength for morgan and that be investment banking has steadily worsened this year, so that's the problem with morgan but remember, jpmorgan and wells fargo beat their profits did drop from the year ago period. why are the banks not capturing what should be the crest of a wave courtesy of higher interest rates to charge more on their loans? we have rbc top banking analyst gerard cassidy coming up but first let's show you rates. bond land is showing serious bend here folks the 10 year treasury yield look at this up six basis points at 4% right now if it closes here that be the first close above 4% in 14 years. flip it over to the two year. two year yield this is the shorter dated duration here

two year yield hit 4.5% right there right now that is a fresh 15 year high and by the way, the yield curve inversion, that's the gap between the two and 10 year and what some see as a recession indicator 51 basis points. that's the widest in 22 years. let's put up some retail names. they had a tough go after september retail sales. not only came in flat but missed estimates of a two-tenths of a percent gain, target, amazon, walmart, amazon is down 4%, best buy down 1.6% all in the red. we should check luxury names ending up in the discount bin everybody from canada goose, polo, ralph lauren, bath & body works tapestry, capr i'm holdings, next week kicking into high gear, for mega names, here is the calendar folk, bank of america me hadlon, goldman on tuesday, along with state street , wednesday, allie,

citizens, comerica, thursday, keybanc so a lot of banks but could some of the companies have upside surprises and in turn, trigger investor sentiment to a much firmer move? let's get to the floor show we are joined by our old school all-time fabulous traders john c orpina, keith fitz-gerald. gentlemen, we know that for the week the dow is the only major that looks to gain here but i would like to ask right off the bat, john, where is your focus at this point? >> yeah, my focus is trying to just get through earnings season at this point, right? we kind of know that the sentiment is heavy and is going to sit on this market, and we also know that ceo cfo's are really going to rely on the current situation. rising interest rates, geo political uncertainty, global economy uncertainty, so what does that forecast going to be moving forward? we know that it's going to be rocky waters. we know some of these calls are going to be tough. it's just the ripple effects that come out after that. s&p has gotten hit.

we're trading at that 3,600 level, keep teetering right around there. we're going to need sometime to get through here at this point but from these calls from these earnings reports, like i said we know it's going to be choppy. if we could just get through some of this and managing of expectations, i think we're going to be okay in the long run here but it's going to take sometime for us to get here. obviously these banks are pretty significant for us to hear what's happening there. we're going to get ibm next week , tesla, shift into other sectors there. should be interesting to hear what they have to say but right now, it's going to be a little choppy. liz: yeah, that is true, and again, i don't want to only focus on banks here, keith fitz-gerald. tech has just gotten slammed over the past i want to say 15 trading sessions. the semiconductors, that has been a very ugly picture here and whether it's the semis or some of the other big names, these cuts over the past 15 sessions, i mean, i know i keep asking this question, but each

time looking better and better as a discounted quality name. any favorites here? >> oh, are you kidding me? absolutely. these are approaching what i called stupid oversold levels, liz. people just need to look around. everybody is becoming more tech oriented, 90% of the data ever created in the history of humanity has been created in the last few years. these companies are being priced like they are going out of business so i'm looking at the apples, looking at the microsoft , i'm looking at anything that is getting handed to it right now because three, five, 10 years later those are going to be companies that go right back to the head of the class. liz: well i know, i know, keith. however each time that we say this and you're looking at a year-to-date picture for microsoft and apple, new lows continue to hit. we were not quite at the year lows for apple, but what do you say to investors who say fitz you told me to buy apple at 149 and we're at 138 now. >> well i would tell them if

you're an investor, fine. if you're a trader that's entirely different. it depends on your psychology. we've seen this play book before everything from the financial crisis of 1871, 1903, 1929, you name it, we know how this play bookworks and if you don't have the time that's one thing. if you have to sell because you have to that's another but if you're investing this is what it's all about. there is success and failure. the markets go up and down. we're just living at a point in time where the tide goes out so you look at that. go to your favorite store when it's on sale answer is yes. i submit you need to do the same thing. the world is the biggest market in the stock market. >> and liz, let me support that liz: go ahead. >> let me just support that for one second. go back to march of 2020 when we're going through a global pandemic shutdown an the markets are getting completely smoked. who would have thought we would have traded the way we did past that so if you take a step back and look at a long term chart,

you see these little blips, like keith just named all these years all these little blips in the market here that's healthy. it has to happen. it has to flush itself out. three years from now, if you say to someone, you could have bought amazon at $120, they are going to scratch their head and say why didn't i? liz: i get it, guys, i get it, and i look at the semiconductors none of these things, apple phones don't work, you know, google phones don't work without the semiconductor space and that said, there just seems to be a hesitancy. keith, do you think that maybe some data we start to get in a week or two could shake through , or do we continue to worry that the federal reserve has to, in many people's beliefs , some don't believe this but raise rates. we're now looking at 100% chance , or probability, of a 75 basis point hike for the november meeting. is that the right move? >> i think it's the latter, because my belief is the fed has

been out to lunch somewhere. where, i have no idea. the american public isn't stupid , liz, and they know this is all about the fed now. they know it's all about leverage and they also know that the fed is increasingly wrong. the data is insurmountable yet they won't pivot and change their opinion and i think the american people are coming to terms with that, so is there going to be sentiment? it comes from the fed. the earnings aren't going to be as bad as everybody thinks which gives me hope because that's how the market works, but i'm going to be looking to the fed which i think is just lost a long time ago. liz: i want to thank both of you for a very special reason. you know today we're celebrating the 15th anniversary. we rang the bell down at the nasdaq for 15 years of starting at the very bottom. >> amazing. liz: you guys were always there. okay? fitz, john, it didn't matter. you looked at the competition and say don't go on fox business but you always stuck by us and i

do want to thank you and thank our head of our network lauren p etterson and the og's the originals who came when it wasn't easy guys thank you. that was you. >> and we have to thank you, liz. you know you were back down here on the floor when it all started , walking with your microphone into the ipo crowds. you put a big mark on this place here and you've clearly helped that network. >> absolutely. liz: really, this is my third child. okay? fox business is my baby, and it's really, it's really really amazing to have a day like this. gentlemen, thank you so much. >> thank you. >> thank you. liz: keith and john. always a pleasure. today's big bank results just a taste of what's to come. brace yourselves for goldman sachs and bank of america, keybanc a whole bunch of others. should you buy or sell ahead of next weeks numbers plus a big deal in the regional banking space. the federal reserve approving

u.s. bancorp's acquisition of mu fg union bank, has wait until you see where u.s. bancorp is on the s&p right now with a banking analyst on the underlying message buried within that headline who says you've got to hear what he has to say. closing bell ringing in 49 minutes dow jones industrials down 369. you know, we're watching a market that is in the red right now. its been a bit of a rough week. stay tuned we're coming right back. we'll get you through it. [acoustic soul music throughout] [acoustic soul music throughout] [acoustic soul music throughout]

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call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217. liz: folks, there's a new 800- pound gorilla in the banking world after the federal reserve today approved u.s. bancorp's acquisition of nufg union bank's retail banking business.

the green light for the deal gives u.s. bancorp just under about $700 billion in assets and solidifies its status, as the fifth largest retail bank in the country look at u.s. bancorp, top of the s&p right now, up 3.7%. we've got mitsubishi ufg financial down about 1%. we've got the mixed bag of results as we mentioned from the likes offer wells, citi, jpmorgan, morgan stanley, everybody higher, except morgan, now down 5%. well, all of these names, if they beat, still was overshadow ed by the fact just about all of them saw profits fall year-over-year, with more financial titans on deck to release quarterly reports next week let's break it down with rbc capital markets u.s. bank equity strategy head of banks gerard cassidy. great to see you, gerard. which one of these four that came out today do you like the most and what is the problem

with morgan as you see it? >> sure, well thank you for having me on the show, and i think one of the big trends that we saw before the big banks, citigroup as well as jpmorgan chase, we started with wells fargo, and pnc, and u.s. bancorp , you didn't see it with morgan stanley, but the big start to the banks is the rise in short-term interest rates, and the impact that's having on their net interest margins. these margins are growing very rapidly, because the banks are able to reprice their assets faster than their funding costs, and it was quite striking at wells fargo because the mix of their deposits is geared to the consumer, whereas the citigroup on the other hand has more wholesale deposits so they didn't benefit on the margin expansion as somebody at wells fargo did so what we have been recommending to investors is to look at the banks with the high concentration of consumer deposits because the margin

expansion for those banks will be better and we saw that again in wells, so in today's names, p nc is the name we recommend investors look at, because of their high concentration of consumer deposits but also commercial loans on the asset side of the balance sheet. liz: well, i get that and then i would think a name like keybanc looks pretty good if you're thinking with that logic as well >> liz, right on. i would totally agree with you for next week, when key corp. reports very strong consumer deposits one of the best of the regional banks and they had one of the highest levels of commercial and industrial loans and what we saw today from the banks was the c & i loans as we refer to. we saw double-digit loan growth on a year-over-year basis in some cases over 20%, so we should expect to see key corp. put up very good c & i loan growth and then support that with core funding which would help their net interest margin.

liz: you know, these rates are so high and you mentioned that the margins are looking good for a lot of these banks but it's almost as if whatever they capture from charging more from loans is being tinged a little bit in the red because people are worried we're seeing a slowdown in the economy and that high rates will slowdown everything. that's the fed's intention actually but jamie dimon over at jpmorgan said we're still on the path for an economic hurricane and a recession. how do you play those names knowing that that is the possibility? >> you put your finger right on it. there is some real cross current s for the bank stocks. you have this strong benefit, of course of these higher rates, but offsetting some of that benefit of course is the expectation that credit will deteriorate and that was the interesting part about today 's results. all of the banks reported very strong credit, net charge-offs which are credit losses in most cases were down or flat. the actual delinquent loans or

non-performing assets as they referred to, they were flat-to- down, so no one showed any evidence of deterioration. now what has happened though is the banks under the new accounting rules called cecl, current expected credit loss th ing which went into account in early 2020 the banks have to start building up these reserves for loan losses if we go into a recession next year, and we saw that today, but what it was more interesting was the growth in revenue more than offset the build up of these reserves, but you're bringing up a good point. there's a real concern amongst investors that next year, if we see unemployment around five or 6%, and negative gdp growth sometime next year, it's going to be more challenging on credit that being said though, the banks are going to still be able to maintain this revenue strength because we don't expect rates to be cut at all in next year by the fed, and that will maintain those margins.

liz: we are on deck for a lot of bank earnings next week. gerard thanks for setting us up ahead of that. we appreciate it. >> you're very welcome, thank you for having me on the show. liz: any time. we need to look at tesla shares. tesla stock is losing speed at this hour, couple of cross currents here. now the stock is down 6.8% low of the session. part of the issue wells fargo lowered its price target to 230 from 280 citing uncertainty about demand the stock is at 206 and change, and then, german business daily handelsblat says the ev maker will not start mass production of batteries at its berlin gigafactory before 2024 so the stock is swooning at this hour. from cars on autopilot to planes with no pilot. you heard me correctly, up next grady trimble is going to take you along up into the friendly skies to test self-driving

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liz: we are getting this breaking news in. atlanta federal reserve president raphael bostick says over the last few years, some of his personal investing activity inadvertently happened during periods where it was forbidden by u.s. central bank ethics rules at the time. bostick explaining in a note just hitting the tape he was unaware of any specific trades, or their timing, due to reliance on a third party manager who made the trades. now just over a year ago see this is now a thing at the fed. dallas fed president robert capl an, and boston fed president head eric rosengren resigned after their financial disclosure forms show ed both had been actively trading in financial markets while also being the ones to set monetary policy and you would remember that richard clarata, second in command of the central

bank resigned from his position early amid questions about his trading. this was back in 2020 fed chair powell asked inspector general for fed's board of governors to investigate this latest matter. we will keep an eye on that. we've got the fox business alert let's look at the markets. we now have 32 minutes left to trade. united health group shares in good health climbing to the top of the dow jones industrials which is still down 313 points. unh can't do everything, right? unh raising its profit outlook for the year up just under 1%. the health insurer also posted a 12% increase in third quarter revenue and a beat on earnings estimates, pumped up by lower costs for covid-related testing and treatments. the bears are smelling blood over at beyond meat look at shares down 9% after the plant based meat company plans to cut 19% of its workforce that works out to about 200 employees. shares of the company down 78% this year due to slowing demand

for meat as consumers are kind of over it because they are looking for even cheaper options in the face of rising food prices. by the way, remember the beyond meat operation chief doug ramsey who was suspended last month on reports of his arrest for allegedly biting a man's nose during an altercation following an arkansas football game? the company now announcing ramsey has left the company. cloud computing company newton skyrocketing after the wall street journal reports the company is exploring a possible sale a gain of 23.6% right now. newton targeting industry rivals and private equity firms as possible buyers but those buyers would actually have to pay a significant premium to the $4.8 billion market cap as dealmaking, witness morgan stanley has slowed due to financial uncertainty. delta airlines gaining altitude at this hour after cowen upgraded the stock to outperform for market perform citing

increased momentum in corporate bookings and international travel. the shares are up 2.8%. cowen's price target on the stock 5 had bucks we're at 31.24 right now delta reported record third quarter revenue yesterday. not just better than 2019 pre- pandemic. record. all right let's check other airline stocks see how they are doing no surprise we do have many in the green, ual up just under 1%, southwest up half a percent, aal, american up 1% and speaking of united the stock might also be taking off as bloomberg reported the company is in talks with both boeing and airbus to increase its fleet with 100 wide body jets. the deal could be announced as soon as december, although a timeline isn't quite clear, but while united looks to add more miles to its fleet san francisco -based xwing, looking to innovate the cargo plane industry with an unbelievably crazy unique cessna plane model of its own design.

a self-flying one. now for two years the companies been testing its super-pilot autonomous flight system so we thought grady trimble, we love you. reporter: [laughter] liz: you are brave, live in concord, california. did you go up in it? reporter: we did, liz, and i'm happy to say the flight was actually pretty uneventful. it felt like any other regular flight. this is the plane we went up in. it's a small cargo plane. the plane itself is actually 30 years old but it's souped up with all sorts of lidar, radar, cameras, other sensors that yes, let this plane fly itself. you can see in our video, we were able to taxi, take off, and land with no help at all from the pilot. while the plane is in the air, there's also someone on the ground in what they call the mission control center. he is communicating with air traffic control, and monitoring the flight. right now, in our flight yesterday, there's still a safety pilot in the cockpit.

they hope to remove that pilot soon. i talked to the cto and ceo of x wing about the future of the industry and how developing self-flying planes is actually easier than self-driving cars. >> it is less unknown, and it's already controlled by people on the ground, air traffic controllers, so the number of things we can run into is much smaller. what's more challenging is we have a high level of safety to achieve and demonstrate that no matter what, the plane will land safely. >> the general public i don't think quite realizes the revolution taking place in the aviation today driven by autonomy on one end and on the other end electrification of vehicles. the combination of these two technologies is quite groundbreaking in the form of cost reductions. reporter: so they are going to start with cargo flights. they hope to have that in the air by 2025, no pilot in the plane, but eventually, liz, the ceo of xwing believes that

we, passengers, will be on board planes like this one, with no pilot in the cockpit. potentially by the end of this decade so pretty soon. liz: oh, my gosh. did ralph giardano assign this to you? i'd check your contract. [laughter] kidding, just kidding. reporter: i lived through this to tell. liz: we are very impressed. exactly. thank you, grady. grady trimble what a gutsy guy. so cool. grocery giants kroger, carting away rival albertson's for nearly $25 billion in a bid to take on walmart, but will the deal pass regulatory muster? and plus, what does the latest retail sales report say about the state of the consumer and the health, the psychology of those as we head into the holiday season? we're going to have top analysts weigh in from the grocery aisles to the frozen yogurt craze, this

weeks everyone talks to liz podcast guest, so enjoyed stopping at his local froyo shop , 16 handles in manhattan, that he decided you know what? i think i could run this thing and he bought it and he decided he was going to give up his job on wall street to run this company, and guess what? after buying his first one, he bought another franchise and another and another and now he's the ceo of 16 handles, i know the west coast doesn't have it but neil hershman says he's bringing it to you guys in california and arizona because he thinks it's the best out there. you've got to find more about his amazing journey on how he yes, climbed mount everest, neil is nuts but amazing. he did that to prove to himself he can do this even though he's a baby face ceo at just 27. you've gotta hear his story tune into my everyone talks to his podcast get it on apple, google, spotify, wherever you download your podcast. closing bell 26 minutes away the dow has paired some losses, still down about 274 points, and

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and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year. that's decision tech. only from fidelity. liz: welcome to m & a grocery games the second-largest supermarket chain in america, kroger, officially offered to buy albertsons in a deal worth $24.6 billion. kroger is going to acquire its smaller rival for $34.10 a share right now you do have albertsons at $26.38 and investors don't like this deal. albertsons is down about 8.8%, about 4.7 billion of albertsons debt that's a 33% premium to albertsons closing price wednesday. together, the two will employ more than 700,000 people across 5,000 stores. joining me now with what this means for the grocery industry, which has become so

wildly competitive, is strategic research group managing director , bert flikcinger, who owns both shares of albertsons and krogers correct? >> yes. liz: what do you make of this deal? do you like it because the market doesn't. >> liz the market doesn't like it because the federal trade commission has been overly tough on the stop and shop acquisition and it wasn't the acquisition. it was just they chose the wrong experts that made the erroneous assumptions and conclusions, and prior to that, the staples office max merger and the federal trade commission, liz, really needs to look at this like costco's acquisition of price club, decades ago and they need to look at it as the combination of marshall's and tj maxx, and we've worked with all these companies and it's critical for middle class living because nobody does more

at a lower prices for consumers and raises the standard of living for both shoppers and workers than the kroger company and albertsons respectively, and to compete against walmart, costco, amazon, et cetera it's essential this deal goes through and it's essential they hire the right experts with the right skills. liz: that's what i wanted to know. who should be most nervous about this? i mean, i think about walmart, for example, because if you put kroger and albertsons together, and the brands behind both of these names, they could really do some price cutting could they not? >> they could do tremendous price cutting to your important point, liz, and at the same time , they have more negotiating leverage working on the second copy of our book, the explosive growth of private label brands in north america, with kroger, albertsons and all of the leading retailer in the u.s. and canada, so to get the private label share to where it is, ireland, england,

scotland, canada, new zealand, and australia, which is 50 to 60 % in the u.s. it's 25%, and what's double important about that liz is that the national brand suppliers like my alma mater, proctor and gamble and others have been in my professional view discriminating against supermarket shoppers and supermarket retailers by not passing along the price and promotional allowances during and after covid the way they do the wholesale clubs and the super center operators, so it's important to give kroger and albertsons the leverage and small retailers through national grocers association need similar leverage and that's what the ft c should be looking at rather than blocking this merge cher is what the stock market is anticipating with both companies and it's down over 70% today as you said. liz: we got retail sales today. we're going into the holiday season. is there any name out there that

you think is best positioned to endure what appears to be an understandable slowdown, i get it, but you know, i understand that and that's what the fed would like to see , people stopping the spending, so that we could see some prices come down, but any names out there that you think can really endure this? >> liz, the best is bj's wholesale and since you and i recommended it two and a half years ago the stocks doubled but they just got approval to use eb t, electronic benefit transfer of food stamps for online sales. their gas prices tend to be the lowest so they save people money on gas and groceries, the membership fee pays for itself in less than a month and you've got great spiritual and societal and environmental leadership at bj's with chris baldwin, bob eddie, david picot and team and also, the economy picks up next year, and the great team at tractor

supply is a winner too. liz: bj's up 24% over the past 52 weeks. bert it's so lovely to see you and i want to take this moment to thank you, burt, because from day one of fox business, 15 years ago, you have been there. you have come on our air. you have educated our viewers about all things retail and we don't forget our friends. thank you. >> well, liz, great to be part of your fantastic team here. liz: any time. thank you, look at the dow down 304 points. charlie is about to come in front of the cameras to break a news story on looming layoffs at a very important boutique m & a firm and believe me, every banker on wall street and anybody whose ever turned to investment banking knows this boutique firm. you have to hear what he has to say about it. we have 15 minutes until the end of the trading week, only one index coming out the winner for the week. stick around to find out which

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liz: oh, my gosh, the confetti canon was on duty at the nasdaq this morning, when team fox business got to celebrate our 15th anniversary by ringing the opening bell. it was so great to be out there with my colleagues. you know, we're standing outside , people were running saying i can't believe its been 15 years. really great. it was so much fun, and i can't thank fox enough for sticking by us and believing in it. fox business by the way, just so you know launched october 15, 2007 in maybe a few thousand households across america. and now we're in millions, and charlie, we're number one. it's great. charlie: i know and one of the reasons why we're number one , liz, is because we break a lot of news and i do it on your show and on neil cavuto's show and its made us a go-to place for business journalism. i mean, journalism not guys talking about pumping stocks and what traders are doing, but we do some of that but we're a news

station and i think people appreciate that and that's why we're number one, and you know, listen. i left cnbc. people thought i was crazy, okay i left on my own but people thought i was crazy. they were like, you know, first off i broke most of the stories on the financial crisis i was at a very high level in my career i could have stayed there forever. liz: me too. charlie: there's a big but i saw the opportunity on the other side and one of the reasons why i saw it is because i thought cn bc was a little too close to its advertisers and i knew the way things were run here that wouldn't be the case. the murdock family has an amazing amazing rep in journalism. liz: i mean they still stuck by us. charlie: doing tough journalism so that, and roger als, whose a professional mentor of mine, i came over, and you know, been here 12 years. never looked back.

there was a few times i might have looked back but early on. liz: look at "varney", you can see. charlie: yes. liz: okay, okay, we get it. go ahead, charlie you have another big story to break right now. charlie: you know, listen. this isn't goldman sachs but it means a lot. this is a boutique investment firm called liontree capital, liz run by the best media banker in the country or one of the most noted a guy named aria burkoff, the guy that did the discovery-time-warner deal but sources are telling us close to the company is that they're planning and are in the midst of i would say significant layoffs. they only have 120 people apparently that work there but they are going to do something close to 10% a little bit under i hear. they are going to call its workforce and i think this is an ongoing thing and the reason why it's not necessarily what's happening, the people that is still okay although the numbers volume is down but numbers are pretty good.

they are worried, and predicting , a slowdown in the markets and in media deal flow going forward. if you think about it, this just makes sense, liz. disney, you go down the list of every major media company, even the aforementioned discovery run by david zaszov, everybody is in cost cutting mode right now trying to figure out how stream ing could work, how to monetize it, you have to put the other two big companies and get cost savings, and so we have , you know, if we're in a recession there's going to be an ad hit. comcast has its issues. we got to deal with the macro issues as well here at fox, so if you put all that together, liz, aryeh is looking at a lot less volume going forward and problems, and deal problems and so he's doing the cuts, and so this is the beginning of what jamie dimon said that storm out there, a recession, and this is how it happens.

it happens slowly at first, to get it anecdotally and it may not show up in the employment numbers immediately but slowly you see businesses ratcheting back. already, we've been doing stuff about how morgan stanley is cutting certain departments, structure finance, others have picked up on our reporting on that, goldman sachs obviously calling bottom of i guess 10% of their workforce, they didn't do that during the pandemic but they are bringing that back at this time. everybody is looking at cuts and but this one is interesting from the symbolic standpoint. it means that media is not doing a lot of deals is the best way to interpret that. don't look for any big media mergers. probably. anyway for all i know there's a big one happening tomorrow but i'm just telling you what they are predicating their cuts on at liontree. back to you, liz. liz: well, you know, they blame the media. they blame us for being a negative feedback loop, but it's not that. it really isn't. we don't control morgan stanley

and aryeh or the silicon valley companies that are freezing hiring or in some cases rescinding offers. charlie: liz i'm very positive about the world and everything. i'm a rosie scenario dude. liz: me too. charlie: look at me i'm always laughing and smiling, dancing around. liz: and screaming and criticizing. no. listen, charlie it's a pleasure to work with you all these years charlie: you're one of the reasons why i came here as well you and cavuto. can't beat the team. liz: now we both can't ever leave. charlie: you both will hate me for mentioning that. [laughter] liz: oh, i brought you a treat. they had these cookies. thank you to the nasdaq, these fox business 15 year cookies. but by accident i'm going to have to eat it after the show. charlie: we really have to thank the nasdaq? i'm not thanking the nasdaq. liz: we list on the nasdaq. okay, okay. charlie: i'm not thanking the nasdaq. i'm not going to fight the new york stock exchange but i'm not thanking the nasdaq.

liz: you don't have to thank anybody. just me. thanks charlie closing bell we're four minutes away markets on track to finish the session in the red different picture in the bond market when it comes to yields we cannot ignore this with just a few minutes left to trade the 10 year closing at 4% for the first time since october 15 of what was that, 2008 so we're at 4.01% from the 10 year. now on a weekly basis, let's look at stocks. the dow, the only index looking to close in the green, with the s&p and the nasdaq down for seven of the last nine weeks joining us now, cio ethan devit who manages $32.2 billion. ethan give us some ideas here. i was just reading the s&p earnings are expected for the third quarter to come in up 3.6% year-over-year and yet, it says only 3.6% year-over-year at least some of the analysts feel that way. i don't think it's that bad at least we aren't seeing a gain. >> it's in the red.

it's positive and that's what we want to see. that of course is the concern whether we're going to see positive earnings at any sector other than energy, when all is said and done this year and we can see this is a really mixed picture. we even saw that today in the performance of the financial stocks. there is no one single narrative that can really characterize any sector today. that's what makes stock picking so intriguing, and i suppose what makes it so frustrating to see a week like we've had where we had quite wild swings on either side. liz: you've got so much money under management. open your window into how you are picking stocks these days. what is it that you look for that special something? >> well obviously many of our clients will have a balanced portfolio as the core of their portfolio along with some fringe allocations to alternatives and other diversifiers around the side so clearly, this has not been the year for the diversified portfolio for the balanced portfolio its been very challenging. only the alternatives has actually been in positive territory giving them some capital from which to rebalance. when it comes to stock picking

we already are sticking to our core beliefs which is around a good balance in an equity portfolio between value and growth. we've added some real estate and some infrastructure. we actually liked the purer form of that. not necessarily the equity-like form of that as the equity characteristics are really dominating that but we have liked the infrastructure for sometime. we think the inflation reduction act really leads to that sector, having a very strong tailwind. we also think renewable energy even though it's going through a tough time will benefit from the overall focus on energy security and energy pricing, and healthcare of course. if you look through the inflation numbers into what is driving the service inflation , it is mostly healthcare. health insurance, and the inflation reduction act does have some components that we think will long term be beneficial to the healthcare complex so we're looking at that they would typically be value stocks and above all in our asset allocation looking at cash cash for the first time in decades you cited that rate on the 10 year is looking really meaningful today. it may not be meaningful versus today's inflation, but it is

meaningful versus the long term run rate of inflation, so cash is working its way in and fixed income again is starting to look quite attractive from a yield standpoint relative to equities. so i'd say that's what the we're going a lot of what we have always done at the edge is tinkering with some of the asset allocations. liz: okay. i tend to agree with you about fixed income. i'm hearing more and more people , i was just talking to tracy mateland, at advent capital saying some of the yield s on convertible bonds are going nuts it really looks certainly enticing ethan good to see you we thank you so much. right now, folks we are closing out the session in the red, for the week just the dow moving to the upside that's going to do it larry: hello, folks, welcome to "kudlow." i'm larry kudlow. high high inflation is killing folks, killing take-home pay