now. the money is running out, the runaway inflation can't be stopped, and now there's the stark shadow of inflation. we are seeing those behavioral changes that economists told us about when the stimi checks came in and people didn't have to do that. 72% of grocery shoppers are actually buying fewer items. you get more money, you go in the store and come out with fewer eggs. that is a gut punch. 65% of people are are using more coupons. at this stage of the game, it'll have a minimal impact on inflation, particularly as long as there's a war on fossil fuels. so the misery won't get better with this self-correcting action, but here's the thing, it is what it is, and you've got to gut your way through it. but i hope you remember this when you have chance to decide if we want to be a free money society. liz, over to you. liz: charles, did you just see what elon tweeted? charles: no, i missed it. liz: okay. let me show you guys.

elon musk just tweeting, quote, i will not let you down no matter what it takes. so it is anyone's guess as to what he's referring to. i mean, is it about tesla earnings? his starlink service enabling ukrainians to get internet service, maybe the twitter deal ahead of tesla's after the market report? we're watching tesla, ibm after the bell. but we've got to talk about this market at 30,000 feet. it is not a repeat of the infamous black monday that destroyed investors 35 years ago today. but, look, after two days of pretty muscular rallies, stocks are retreating as we kick off the final hour of trade. back in 1987 the markets suffered $500 # billion in paper losses. today right now the dow's down about two-thirds of a percent or 196 points, the s&p lower by 37. nasdaq, yeah, down about 1.25%, 137 points to the downside, and the russell is losing 37 points.

procter & gamble, travelers, her big winners on the dow at this hour after posting standout earnings this morning. both reported top and bottom line beats. proctor and gamble up 1%, travelers up 3.5%. p&g was able to offset decline aring volumes with price increases. inflation, right? the make e of tide detergent did lower its annual revenue guidance due to a stronger dollar which it says is hurting its international consumers. right now you do have all major currencies lower against the greenback. i mean, look at that euro, just 97 pennies it takes to buy a single euro row. it used to be 1.19, 1.30. the greenback is stronger, year to date soaring nearly are 18% making, of course, products more expensive overseas. now, consumers may hold off on buying prize city razor blades, but he were not about to dump their netflix accounts. the streaming leader rallying

nearly 12% after reporting the company added twice as many subscribers than expected. netflix at $269.60. let's look at rival disney, kind of hitching a ride. the dow component up a quarter of a percent, a little bit of a lift there. s&p company earnings overall look pretty good so far citing credit suisse, barron's pointing out that the aggregate earnings results thus far have been just over 5% higher than estimate from analysts covering companies in the s&p 500. but beware the federal reserve, it is still on the rate hike warpath, and you can see that reflected in treasury rates right now. the 10-year yield stands at 4.12%. it topped 4.1% for the first time in 14 years. hook at the 2-year, 4.56%. that spike, the highest in 15 years. and the beige book, the fed's regional economic temperature gauge, just came out in the last

hour indicating price growth remains elevated, though they do see some easing depending on the region. however, fears of weakening demand are now increasing, according to the fed. what should investors be doing and gleaning from it allsome let's get right to the floor show, blue rock capital market ceo jeff schwaber and carnivore trading ceo dutch mathers. jeff, i don't know, what should people take from this? >> yeah. well, i agree with you, liz. i don't think we're in for another black monday, but, you know, in a normalized macroeconomic environment, you might have one or two events or circumstances which might present a .5-1 standard definition to the negative. and we have a five-layer cake of impending pain and, frankly, we have visibility into it between a hiked state of whatever comes after super-inflation, uber-inflation, disrupted supply chain, soaring commodity prices, no flight to safety with the fed so hawkish doing these outsized

hikes. russia-ukraine conflict, i mean, what else can we tosses in there? three times in the last 20 years we have seen drawdowns to the major equity indices on average of about 50%. i saw it during the dot.com implosion, saw it during the terrorist attacks to administer pain to that finish. liz: well, can i just jump in there, jeff? percent equities that were the rock stars of the past seven years whether they were the fangs plus microsoft, that the not -- that is not even up for discussion. they've been unbelievably strong. they've already come down about 41% year to date, so isn't that enough? >> all think. i mean, what, netflix went from 700 to, i think, 158. now it's rocketing back, and i think you'll see that. but, you know, if you look at pe to growth ratios and the classic i think we hit about 22-24 times earnings on the multiple pes on the s&p 500 when trailing 20

years always about 17.8. so we had a little bit of a book a boo into that -- peek a boo into that, but with the fed so hawkish until such time we have a likely capitulation, i think we're going to be in that trading range between 29-31,000 on the dow. liz: dutch masters, you've been shorting this recent couple of rallies that we've had, the s&p and the nasdaq, and you do this through a couple of different etfs. do you really intend to turn bullish, and what would be your signal? yeah 'em so we do, we're building a list of stocks that we want to buy, and we think there's probably another 10 or 15 to go on the downside. what we're looking for is we want to see the dollar stop going up, we want to see the fed slow down either the amount that they're raising or the frequency, either one would be fine with us. we want to see a technical

breakout of the indexes out of what i call this downward-sloping channel of death, and and we'd like to see more stocks show up on our buy screens. those four things, we're looking for those. we start to see those get ticked off, we would become more bullish. now, i want to address something you guys were talking about here which is the, a lot of statisticians and technical guys talk about, you know, x amount from the high, blah, blah, blah. you've got to understand i've got a theory that the highs that we had were phony to bin with. and all we've done is taken that mountain chart, if you look at a 3-year chart of the s&p or whatever, or the nasdaq, there's this bizarre mountain that was blown up, and now we've just eliminated the mountain, okay? so if we're going into a recession, then there's no way that we could, you know, say that 20% more to the down side is unfeasible.

hell, yeah, it's feasible. i mean, all we are is back to the trend line, and before we were in much better economic shape than we are today. liz: okay. and you have a couple of long positions in there, but go ahead, jeff, i want to hear your response to that. >> yeah, i don't disagree. i mean, if you look back and, as i think neil said earlier that history tends to rhyme, and what you look at the last two or three times that we've had these outsized turns to the downside, generally we hit that bear market down about 20%. and, you know, the smart money says, welk i'm not going to sell at the low, and miss a recovery. and then, you know, something can happen which accelerates it down to or 40 -- 30 or 40, and you're handcuffed and go for the ride. the takeaway is when you have this much economic ed, investors need to be vigilance and have components which are non-correlated to the capital markets, that have shown -- liz: what?

what? like what? like what? >> well, blue rock's core flagship fund is a real estate fund. i don't know if you can pull up a chart, it's t-i-p-r-x. it's one heck of a chart. it's up 25% in the trailing 12 and about 15.5% year to date. the. liz: yeah, i see it. >> there you go. liz: yeah, we see it. that is a pretty chart. >> hey, liz? liz: go ahead, but i'm worried about buying things at the highs here. >> i've got to tell you something. when the you know what hits the fan, everything's correlated. that's one thing -- [laughter] >> well, you know with, take a look. when we had the flash crash of covid, equities sold off about 35 or 40%. this fund was down 1 and then did about 46% in the next -- liz: okay. >> -- 48 months. so it was truly decorlated. but, you know, you take a look at the largest pension funds, the ivy leagues, etc., they are

right now the big three, princeton, yale and harvard have about 18% in equities and closer to 50% in alternatives -- liz: weighting. weighting. yeah. well, yeah, you didn't mention my alma mater, berkeley. we don't have as big on an endowment fund. we've been doing pretty well. dutch, what are or you looking for as we head toward the november fed meeting? >> well, we all know how traders act, they're very shortsighted. so as we head towards the fed meeting, we're going to see more and more talk about, oh, my god, are they going to raise it a full point, and this market's going to sell off right into the fed. liz: all right. gentlemen, great to have you both. thank you so much. check the dow, we're down 167. low of the session, a loss of 296. the biden administration opening the oil spigot, are releasing 15 million more barrels of oil from the strategic reserve as the president gets set to make remarks at the white house. we are going to take you there

live. and edward lawrence is standing by. what are team biden's plans for even more spr releases, and what does it mean for what you pay at the gas pump? closing bell ringing in 49 mints. "-- minutes. "claman countdown" coming right back. ♪ finish. ♪ i may be close to retirement but i'm as busy as ever. and thanks to voya, i'm confident about my future. voya provides guidance for the right investments. they make me feel like i've got it all under control. voya. be confident to and through retirement. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire and i'm going to tell you about exciting medicare

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that's 1-800-217-3217. liz: we have got some breaking news, president joe biden is about to to make remarks at the white house on the bipartisan infrastructure law after earlier announcing plans to tame oil prices and pressure at the gas pump. the president authorizing the release of another 15 million barrels from the strategic petroleum reserve by december. the spr is the nation's rainy

day crude reserve, and it's meant to be tapped during crises or emergencies. crude pulling back in the after-market session, the regular session saw a 3.3% pop to $85.55, but right now oil's at $85.150, up -- 10 -- up 2.2%. live to edward lance at the white house. >> reporter: yeah, liz, he talked about isn't this is last of the 180 million barrels, the president announced more than six months ago, it's been dragged out now, and will end in december for that original part of it. now, he sort of had a half-full kind of guy, not half-empty kind of guy when the president was trying to reassure meshes. listen. -- americans. >> right now the strategic petroleum reserve is more than half full with about 400 million barrels of oil. that's more than enough for any emergency drawdown. with my announcement today, we're going to continue the

stabilize markets and decrease the prices. >> reporter: so here's the timeline of all of the releases from, that president biden has made as he's tried to offset rising gas price. he says there could be more in the future after the 180 million is done. in a statement, the american petroleum institute says is -- the spr was established to reduce the impact of severe disruptions, not as a long-term solution to economic pain americans are feeling at the pump. we urge the administration to recognize that short-term policy making is no substitute for long-term strategies needed to encourage american energy production. now, the chief executive at canary, an oil field supply services company, he agrees with that, but he says that a what's happening now is unstrategic. >> the whole time we've been doing this china has been add adding to their strategic petroleum reserve. so i think what the administration is doing is purely political. it wasn't meant to be weaponized for political reasons. hence, it's called the strategic

petroleum reserve. and the administration has just gone on a bender,s listening to bad economics and bad national security advise for -- advice for political gain. >> reporter: the president laid out a plan to are fell film the reserve -- refill the reserve. the last time we saw oil at that level was december of last year. gas prices are inching down, but aaa says that's because demand is falling as the economy is starting to slow, liz? liz: thank you very much, edward lawrence. it is the moment every corporation with a celebrity partnership pretty much dreads, ask right now adidas is facing it after its partner, rapper/designer kanye west, made comments so offensive, he's been locked out of social media. up next, fox business about to break exclusive details on thinking inside adidas about whether to keep the yeezy line in the fold despite the

billionaire's eyebrow-raising rants. we've got the dow down 01, let's see if we can get it to double digits. the s&p lower by 24, the nasdaq down 102. can't forget the russell, losing 34 points or nearly 2%. we're coming right back with th ♪ all that planning has paid off. looks like you can make this work. we can make this work. and the feeling of confidence that comes from our advice? i can make this work. that seems to be universal. i can make this work. i can make this work. no wonder more than 9 out of 10 clients are likely to recommend us. because advice worth listening to is advice worth talking about. ameriprise financial.

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not months. "the claman countdown" as exclusively learned sources say even as the rapper-decipher ripped the company in an instagram post after adidas put the partnership under review, bets inside the adidas are that the company board will wait until a new ceo is name before deciding whether to continue or kill the partnership which dates back to 2013. sources also say the as yet unmaimed new ceo replacing -- unnamed new ceo might not arrive until early next year. and those same sources "the claman countdown" given companies' fiscal problems and the -- company's fiscal problems, severing ties with the successful yeezy line may not be a quick or easy decision9 with the corporate world watching to see how adidas handles the situation without bruising its

brand or sale, let's bring in washington university professor patrick rich, director of the sports business program there. professor, on the surface this decision made it sound easy. in early october when adidas said until put the partnership urn review, west responded on instagram saying, quote, f adidas. i am adidas. adidas raped and stole my designs, end quote. so he's trashing the company. then three days later, instagram locks him out of the platform. together what kind of position does this put adidas? >> it puts them in a horrible position, ask thanks for having me on. ultimately, especially this day and age, gz consumers, they care more about what their brands stand for. so if i'm adidas, i have to look at this so carefully. i understand why they may wait, but, to me, this seems like a very easy decision to sever ties even though they do have, apparently, 48% of their sales

tie to the queasy brand. i think they've got to cut him, just too bad for the brand. liz: yes, the sources saying maybe they will wait, everything's on hold. many of employees are betting, according to our sources, that they're waiting for a new ceo. now, the current ceo doesn't leave of until early 2023. do you think it's better just to rip the band-aid off and leave it on his shoulders as he exits? >> personally, i think it does. one thing we saw recently transitioning to the nba, giving up ownership of phoenix suns. a lot of that, liz, was there was a lot of pressure from corporate america as well as from other nba players. i think if you see a lot of outreach on social media, the power has never been greater than it is today, and i believe that if you see more of a backlash that we haven't quite seen on social media with respect to him, i think that's going to expedite his departure. but i agree, i understand why they may wait for new leadership, but i think it's too

big of a hit to the brand's image to allow this individual to continue to spew this, in some causes, hateful messages -- cases hateful messages and keep him with the grand. you've got to sever that tie as quickly as possible. liz: i'm all for free speech, but maybe you leave the brand and the partnership in place. yes, you may get the sales, but he's obviously prone to making these comments which could get worse and worse. there was a point recently where he even posted this video of himself, he was at ace dee das headquarters in europe -- adidas headquarters in europe, and he was speaking with a couple of executives. and he holds up his phone, i think we have video. he pushes it in their face, and he says one of your voices sounds like this guy, and it turned out to be porn, it was a porn clip. and the executive said, is that porn? they tried to push his hand away, and they kept putting his hand in their face. and they were saying, come on, be professional. but, again, there is the brand.

and there are sales. his sales are strong. what does a corporation do even if it's not adidas? it's somebody else that if it's another sports star or celebrit- >> what we don't know is how much business is adidas losing because of this? again, i go back to younger consumers, and i talked to my class today in st. louis about this, and many of hem said the same thing, they've got to cut ties. when you have gen z, i know it was a small sample, saying heavy got to cut ties, what does adidas stand for, they've got to wonder, yes, maybe he's bringing in 48% of revenue, but how much is he costing them because people are diverging away because of him in. liz: i'm thinking back to 2009 when gatorade, at&t, accenture, gillette dumped tiger woods after his sexual scandals and the situation with cheating on his wife, etc.

they said, we're out. then you have nike, on the other hand, sticking with colin kaepernick who, of course, was taking a knee because he felt that it was important to, you know, make his statement. about african-americans and how they face off against policement but he was also the guy who wore socks that depicted police officers as pigs. and nike stuck with him. and not only did they stick with him, they created a commercial around with a bunch of celebrities supporting colin kaepernick. and, again, free speech, you know, i get it. i get both sides of this. but it didn't, it didn't push mic off. i know it's not an -- can nike off. it's not an apples to apples comparison. >> another thing is liv golf has dominate, and look at these golfers who decided to leave the pga tour like phil mickelson, dustinen johnson, and what happened to them? lost tons of sponsors. you can evaluate that system however you want, but i think what kanye has done in the

recent months is far worse than phil mickelson and dustin johnson joining the liv tour. again, nothing's apples to apples, but, yeah, if i'm adidas, i'm cutting him as quickly as possible. he's horrible for the brand. liz: by the way, adidas did say itself that its branded yeezy partnership was, quote, one of the most successful in our industry's history. so let's say they split up. who do you think would have the stronger negotiating position after that? >> well, you know, ultimately i do think it's going to be adidas. they're the longer-standing, traditional brand in the sportswear apparel space. kanye is just an interlope, if you will. he's engaged with them, he certainly brought them a certain session. , center demo, but that time has passed. liz: a lot of ceos may be watching this saying, thank god that's not me having to make this decision can. [laughter] >> professor risch, thank you. great to see you. we did reach out to adidas for

comment on the story, we have not heard back from them as of yet. but the stock, of course, has been down about 7% since the decision was made to put the partnership on questionable circumstances, as you know. all right, let's take a look at market action. 30 minutes away from the closing bell. we told you the nasdaq was getting juiced by netflix shares. again, it's still down about 1%, but if you're talking about why it's not down further, you could say netflix, i intuitive surgical, number two. yeah, it's got the number two position on nasdaq, shares climbing 9% after the maker of robotic surgical systems reported third quarter earnings that beat analyst efforts. the california-based company said worldwide procedures using its robotic da vinci summer call system, seen here operating on a grape -- [laughter] grew about 20% year other year, coming in well above wall street expectations of 1.7% growth --

12.7% growth. yeah, already gaining on 215, t at 211.42 right now. united flying higher after airline reported its strongest quarterly earnings in three years. the carrier is now up 5 on the session after posting 12.8 billion in revenue ahead of analyst expectations and up 13% from the pre-covid third quarter of 2019. the chicago-based airline also gave an upbeat forecast for the fourth quarter. not really surprised considering you've got desire to travel post-covid met with higher airfare prices that people, apparently, willing to pay. spirit no longer flying solo, shareholders have finally approve a takeover by jetblue airways creating the country's fifth largest airline. the carriers still need to convince federal regulators that the deal will not crimp competition or drive up ticket priceses more than they already are. jetblue back in april made its $3.8 billion all-cash offer for

spirit, derailing spirit's plan to merge with problem tier airlines -- frontier airlines. spirit up two-thirds of a percent. and generac down 25% at this hour after the leading home generator manufacturer reported preliminary third quarter profits and sales well below analyst expectations. the company also cut its 2022 sales growth outlook. the wisconsin company says that while installation for home generators is still growing, it's lagging the production output. remember, these are big ticket the items here. company also says that clean energy product shipments were negatively impacted after one of its large customers ceased operations and filed for bankruptcy protection. while generac did not name that the company, according to some reports they say that it's north carolina-based solar panel firm. speaking of the home, investors are slamming the door on home improvement retailer stocks. home depot and lowe's in the

wake of a series of down beat housing indicators, both got smacked with down can grades from outperform to neutral by bnp paribas along with price target cuts. home depot down 3.5%, lowe's lower by 5%. and as they sell off, what's one of the nation's biggest pluming fixtures and hvac suppliers seeing? the ceo of ferguson -- you ever been in there? it's like being in a candy store for homes. he is here exclusively to tell us if he thinks homeowners will break out the hammers and wren. s if they can't sell their houses. and living in a luxury home and selling them was her dream as first generation daughter of parents fleeing oppression in cuba. how did katrina caymans manage to flip her first house at the age of 17? and then morph into one of the queens of florida high-end ebb real estate market? oh, and also become a tv star? the ceo of luxury real estate

now the host of new season of fbn prime's mansion global is my new best on my brand new edition of the everyone talks to liz to podcast. you can get it on apple, google, your to podcasts. yown tweet me, i'm @lizclaman. we're down 147 on the dow jones industrials. yeah, you know, some of the losers here were the winners over the past couple of days like jpmorgan chase and am of -- am-ex. ♪ ♪ (vo) while you may not be closing on a business deal while taking your mother and daughter on a once-in-a-lifetime adventure — your life is just as unique. your raymond james financial advisor gets to know you, your dreams, and the way you care for those you love. so you can live your life.

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♪ what will you do? will you make something better? create something new? our dell technologies advisors can provide you with the tools and expertise you need to bring out the innovator in you. ♪ liz: home builder confidence dropping this month to its lowest level since 2012. a report by the new york post giving a stark warning from pantheon macroeconomics economist ian shepardson who said that the housing market has suffer is, quote, a disaster rouse drop and is in a complete freefall. of course, we know high mortgage

rates doubling this year continue to hound the housing sector, crushing demand, scaring away first-time home buyers. the home builders are down anywhere from 4-6%. pultegroup, dr horton getting hit the hard. the go-to distribute for home renovation, plumbing, air-conditioning, basically everything and the kitchen sink, is joining us now. he's the ceo of pirg soften is. he's taking us -- ferguson he's taking us inside, sort of getting the real picture of the housing market and whether it truly is in a prixfall. joining me now, kevin murphy in a fox business exclusive. okay, those numbers are not good, kevin. what are you seeing? >> yeah, liz, thank you for having me. and the numbers on new residential construction side are challenging, particularly on single-family. and we knew that was going to happen as you look at interest rate rise, price appreciation through the building process over last couple of years. for us at ferguson, new

construction, residential, is a little will less than 20% of what we do. and then we do two times that in residential repair-remodel. so if we're looking at new residential construction side is, as we start to look at underground infrastructure all the way up through the home-building process, we're seeing a little pressure on that side, but there are some green shoots out there. on multifamily and even on single-family, the build to rent side should have some good growth. and we're still underbuilt in this country from a housing perspective. we need to average about 1.5 million units a year to keep pace with growth. liz: affordable units. i like this build to rent because we know one of the things that has spiked in the consumer price index is shelter. and it is a huge percentage of the cpi. a lot of people feel that they're not calculating it properly, it's much higher than the government with is saying. i would tend to agree with that too, but tell me where you're

seeing the biggest strength right now beyond that and in which categories. is it the plumbing fixtures, any kind of bathroom stuff, renovations, kitchen? >> in our business right now we're still building out that new construction residential pipeline. and then you referenced the repair-remodel side to have business. that's the till got good foot central inside of our over 250 showrooms inside of the u.s., and we think the do it for me, the professionally installed, whether it's the replacement of a water heater or an air-conditioning unit or a whole-house remodel, that activity level is still pretty solid. for us at ferguson, just under half our business is nonresidential construction. and there's so much happening in the country right now with onshoring of manufacturing activity, electric vehicle manufacturing, battery plants, chip manufacturing. there's a lot of great things happening on the nonresidential side that's not tied to housing.

liz: well, you've got to figure, and i'm glad you brought this up, i'm just thinking about in the now. elon elon missing building a gig that -- elon musk building a gig that factory in austin, they've got to have restrooms in there. i'm just trying to get a feel. >> yeah, we're talking about everything from underground, water, waste water, storm water piping systems all the way up through the commercial piping systems, the commercial air-conditioning systems, fire protection. all those needed areas of solid monoresidential, industrial production, really a big wheelhouse for us inside of this organization and a great story for america, quite frankly. liz: how closely, i know you watch 30-year fixed mortgage rates very closely. as we said, they have doubled over the past year. and on top of that, the federal reserve isment continuing on its rate hike path. we are expecting to see another 75 basis point hike in november. look at the average 30-year

fixed according to bankrate, 7.04%. tell me what you think the fed should be doing. i i know you're obviously a part of real estate, i would imagine you think that they should tavern down, but you tell us. >> yeah, liz, i'll leave monetary policy to the fed. [laughter] but, like i said, we're still seeing some pretty good activity play through the system. and even if new residential construction shifts a bit more to multifamily, that'll be good business for ferguson. and if we look at the repair-remodel side, people are going to be in their homes longer hawaii's just a fact. but after the pandemic, you look at the home as being a shelter plus an office, a gym, great outdoor living. those are all categories that we can really capitalize on. and and we're seeing foot traffic inside of our showrooms really stay consistent and cancellations of appointments really haven't happened. so we're starting to feel pretty good about, again, that trade professional that's doing that

remodel activity for the home. liz: kevin, please come back. we want to follow because, obviously, you are a great indicator of how the housing market is doing. we'll see you next time. >> thank you, liz. take care. liz thank you. a new internal report from the securities and exchange commission exposing flaws in chief gary gensler's regime. charlie's going to break exactly what's going on there next. closing bell, we are 14 minutes away and, folks, we do have red on the screen. the dow is still down about 149 points. i'm keeping my eye on tesla because it reports after the bell. it's up half a percent. and ibm also reports, it's down a fraction. measure measure good luck. ♪ it's nice to unwind after a long week of telling people how liberty mutual customizes your car insurance so you only pay for what you need! (limu squawks) he's a natural. only pay for what you need. ♪liberty. liberty. liberty. liberty.♪

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sec. this is obviously the inspector general's opinion. i wanted to hear their opinion. they have not given me their opinion. let me lay some of this stuff out. the sec seen significant increase in attrition over the last few years. we're talking pre-clayton sec, jay clayton who ran it before gary gensler appointed by biden, clayton ap.ed by trump. increase in attrition last few years from 3.% in fiscal year 2020, that is clayton, to estimated 6.4% in fiscal year 2022. the highest attrition rate in 10 years. the most concerning is the increase at operation of senior officer and attorney positions, expected to be about 20.8% and 8.4% in 2022 respectively. those are big numbers. now, again every sec has turnover but this is going further. what are some of the reasons listed in the report? i can tell you that they are

talking about number one, saying people are getting offers from the outside, always happens, number two they talk about workload. what i think is going on here is that gary gensler has taken the sec in directions that it has never been before, particularly in esg issues and corporate disclosures that are non-traditional, opened up investigations into crypto which kind of weren't there, normally they're in their wheelhouse although jay clayton did a lot of that as well we should point out but he is basically expanded their workload so of people are leaving and they can't keep up with the workload. liz: can i play devil's advocate just with a question. >> sure. liz: this also coen sides with a much larger push by millenials or younger workers, even gen-zers who may be in the office they're just quitting jobs. it is the great walkaway. they don't, great resignation. >> i don't think these are

millenials when they talk about senior staff attorneys and stuff. these are people are part -- i covered the sec for a long time. there are people there for many years that like the job. it's a prestigious job obviously. liz: yes. >> very good. they look there to stay. they get a decent pension n the union. a place in the past didn't have this kind of turnover. here is what blew me away on the inspector general's report. report details only 7% of peak occupancy at all sec buildings in fiscal year 2022. only 77% of the time do they have occupancy in their buildings. liz: they're working remote. >> how do you work remote for the sec? i guess you can but sounds like sounds like a little too much. liz: any response from the sec about this report? >> no. i don't know why they're not

saying, inspector general is full of you know what or here is our side of the story. we have turnover. makes no sense. makes me think the names, the word, the our reporting was pretty spot on on turnover, on angst over his direction and other issues. it's literally in here. now this is written in not charlie gasparino ese or bureaucratic ese, not getting flaming rhetoric out of this thing. numbers don't lie. the sec has real problems with morale and getting people there and enforcing his agenda. gary's agenda. now what happens if the sec's, if the republicans take congress, not, if they take both, that could be very nuclear for him. he could be up there a lot. people guarranty, that senate and house republicans are going to be all over this report.

liz: charlie gasparino. thank you. >> just like me. liz: treasury yields, setting at multiyear highs. >> that was great transition. treasury yields. >> go away. get out. multiyear highs. the 10-year yield, jumping to 4.127. right now it is 4.124. still this is the highest in more than 14 years. the two-year treasury yield spiking to 4.55%. that is the highest in 15 years. and, we do, in just a few minutes get earnings from tesla, the ev maker expected to say both earnings per share and revenue jumped 60% from one year ago. ibm set to report as well but tesla shares right now, let me see, where are we, currently? up half a percent. i'm watching this, he had the tweet just about an hour ago he said don't worry i will never let you down. we don't know what he was referring to but we're watching. our "countdown" closer says he likes quality tech picks.

will either fit the bill after earnings? joining us kaine anderson, doug foreman, 41 billion in assets under management. well do they and how do you decide what is quality tech? >> i think the biggest thing about quality tech, a company taking market share and growing its business you know within its core sectors and ibm i guess wouldn't really meet that definition, although their consulting business is pretty good. i think investors would be better served longer term to look at companies likes gardner group, accenture, ibm if they're interested in the consulting business. liz: you're saying is doesn't really count in your mind as tech. what does? how do you gauge what is quality tech? >> well the biggest thing is quality tech means it is self-financing it makes money, it's got profitable margin after tax. most software companies, in the cloud, most companies get this bill. we have a shrug of those type

taipei roll companies, 50 state payroll deductions for employers. those companies are quality. they're self-financing. don't need wall street for anything, debt or equity. liz: ncino, avalara you say are the top tech holdings. is there a common thread beyond what you articulated? >> amphenol very consistent business. it's a semiconductor company. they make connectors. the engineers work on-site with the customer. they are custom made. the switching costs, the ability of somebody else to meet those needs is really limited. they're well-positioned semiconductor company. obviously the is semiconductors have been out of favor recently but it has been a long-term holding of ours for many, many

years. liz: doug, what do you make of the current psychology in the markets? do you think much of the valuation had been so frothy over the past year or two, you feel come down enough whether names you picked or have your eye on are starting to look super attractive? >> i think if you're a long-term investor by that i think three to five years i think this is ideal time to invest. i'm not saying today this is the bottom or next year but 3 to 5 year zero speculation in the stock market. there is meme stocks, spaces, ipos we're talking about. that's good. paradoxically most investors think that is bad but for long-term returns that is very, very favorable t tells you there is very poor sentiment. most of the negatives are really well-known out there. this happens to be the most anticipated recession in the history of mankind. i think an average person knows

one is probably combing next year. businesses have had time to adjust. i don't think it will be as bad as everybody already fears. people are ready for really bad news. liz: doug, very appreciative that you have come on to talk about your theory, how you pick quality tech. thanks so much. >> thank you. liz: doug foreman. by the way, tesla earnings after the bell. what we'll do break it down here tomorrow with the ceo of premium tesla accessories maker ev annex this guy gauges how tesla is going to do by the sales that he makes. plus the impact on elon musk's twitter deal with evercore isi internet analyst mark mahaney. [closing bell rings] here is the bell. dow jones industrials breaking it down to 87 point losses that will do it for us. see you tomorrow. ♪. larry: hello, folks, welcome to "kudlow."