education system was not an accident. i can't disagree. eric also has some strong opinions, he says it was a one-shot deal in the beginning. when they realized how easy it was though to keep milling the cow, which is us -- milking the cow, they kicked it into overdrive can, and here we are. they won't stop. another person writes our elderly die alone in nursing home-designed destruction of america, pray for america. absolutely. i think we should all do that every night. and julie writes that we have corruption, only real way to stop it is law. no trading into or out of stocks or holding individual stocks, no trading in in and out of mutual funds while in office, and i agree with that. a lot of people say put it in a blind trust and leave it ea alone. that would give us more trust, right, liz? liz: i trust you, my friend. charles: thank you.

liz: revlon shares have just been halted on the new york stock exchange, quote, penning news. we don't -- pending news, but the stock before it was halted down 5.55 -- 5.33%. people are waiting to hear if the very, very bankrupt company or close to it, certainly, of revlon may find a partnership of some sort. who knows? we are waiting on this. as soon as we get the headline, we will get it to you. in the meantime, to the markets. the famed value investor benjamin graham used to say the market is a voting machine, and the markets are voting to switch drivers. shove earnings over to the front passengerring seat and let the federal reserve grab the steering wheel. we want to show you when that happened. look at the dow intraday chart. with the dow down 70 points, we had been earlier up 400 points. so the dow is gaining -- was gaining until shortly after 1 p.m. eastern time when it reversed. three hours earlier the blue

chips really began climbing when investors decided earnings should drive the action. ibm the best performer on the tow can right now, up about 5% at the moment after posting beats on both the top and bottom line. yes, that ibm, the stock that has never -- much to the chagrin of very patient investors who have yet to see big blue reare gain its 2013 high of nearly $200 a share, not there yet yet, it's at $128 and change. but ibm gave a bullish outlook for full-year sales. at&t, nice move for shares here, up 7.5, looking at their best day since the pandemic lockdown of back in march of 2020. the wireless giant lifted its annual profit outlook and posted a double beat on quarterly profit and revenue. wireless e revenue rose 5.6%. that is the best quarterly improvement in more than a decade. but, you know, the overall earnings excitement was short-lived.

s&p and the nasdaq turned negative before the dow did. maybe markets were hit with this triple whammy: after just 45 days in office, u.k. prime minister liz truss resigned this morning after a very rocky start during which she slashed taxes as inflation flared. the pound sterling imploded and, finally, as charlie gasparino predicted last might, the conservative leader lost her own party's support, so she threw in the towel. second whammy, tesla shares are stalling out. they are plumbing close to the bottom of the s&p 500, down 6.7% after the ev leader missed on quarterly revenue and cut full-year delivery targets. but wait until what you guys hear what he predicted on the conference call last night and what analysts finally mustered the courage to bring up to him. yes, we mean twitter with. coming up, top twitter analyst mark mahaney and the guy we call the tesla sayer, matt pressman of ev annex. third but perhaps the most

important philly president in a noon speech said, stop hoping. the the fed is going to keep raising rates until sometime next year because so far, quote, rate hikes have made disappointing progress at lowering inflation. which should investors prioritize, earnings or the fed? let's get right to the floor show, joining me now, scott bauer and ted by weisberg. ted -- teddy weisberg. i want our viewers to see the weekly survey by the american association of individual investors. it shows increasing bearish sentiment. keep in mind the historical average 30.5%, but the new survey shows 56.2% of respondents are now bearish. that's up from a week ago and, actually, not far from the who-week high of nearly -- two-week high of nearly 61%. what do you make of this? often the herd is late to a turn-around. >> yeah. traditionally, if you did the opposite of what the public did, liz, you probably were right.

but i must agree with them at this point. i think the public has been correct. i mean, it's been a very difficult environment. we don't need that survey to reinforce that. you know, we're in a very unusual time with the fed ayes, sir withively raising rates -- aggressively raising rates which is a negative percent market in addition to which we have so many unknowns out there which we've audiocassetted about endlessly and they, quite frankly, haven't changed. this is a difficult period, and i think folks are smart kind of to push themselves away from the table. picking bottoms, we know, can be very expensive and very dangerous. i think the smart thing to do is just get to the sidelines and wait for the dust to settle until such point that some of these unknowns hard all around us have a little more clarity and become knowns. liz: well, it's true. i mean, people who claim they know when the top and the bottom will be are not exactly bathed in glory if you look back in

history. scott bauer, you've looked at the vix to give you certain signals. what does it tell you right now? we're still above 30. we're down today, but what is the message that you glean from the volatility or fear index? >> yeah. i mean, the vix hasn't moved, liz, you know? everybody's looking for a 40 print to signal some sort of capitulation. we haven't even gotten close. you know, we topped out really around 35 or so. so that imminent fear is really not there. the vix is elevated because, you know, we are seeing the s&p move, you know, a couple percent every single day, so it's justified to be around 30, but we haven't seen that capitulation. i really think that, you know, the market has to look at the inflation and also the interest rate environment and not at earn earnings. earnings are rearview. unless someone comes out, you know, ibm came out and gave a good forecast, but unless they give a forecast, earnings are

rearview. at least what we know in the next quarter or two is that inflation is probably not going down very much, and rates are going to continue higher. so if you're looking at the 2-year, i'd love to say that earnings are going to bail us out. i don't think that's the case. liz: you know, teddy, the terminal rate wager out there has been screaming now that we will go well beyond 4.5% on interest rates, which is sort of the fed's benchmark. now it's showing that by march of 2023 we are going to see it at around 5%. and what does that tell you when it comes to equities? i anytime i -- think it really reiterates what you said just a few minutes ago which is there is still a lot of dust in the air, and that's mostly comprised of a pending rate hike environment still. >> well, i mean, absolutely, liz. and i think what scott points out is quite valid. you know, the earnings are a kind of backward-looking and the

whole interest rate picture and9 what the ped is going to do or not going to do, these are all forward-looking items -- fed. but the bottom line is in capital letters they are huge unknowns which people are just guessing at what the fed is going to do. and we're guessing at what effect these interest rates are going to have on inflation. there's so much rhetoric, a lot of it is probably not worth the effort that people are giving to spout it. because they simply don't know. you have a lot of people, some very smart, some not so smart, all guessing. and sooner or later somebody will be right. even a broken clock is going to be right twice a day. [laughter] but the fact is we're in this soft sand, this period of unknowns. and, you know, it's just not the fed. the fed is, you know, the 8ing 00-pound go april la in the room and its interest rates, but it's interest rates d -- energy, it's if the midterm elections,

it's -- liz: sorry to interrupt you, teddy, but there is always uncertainty. every survey says the number one worry for ceos is up uncertainty. okay, thanks, 1973, thanks, 1985, thanks, 1997. it's constantly there. already always going to be hot spot of drama. now we're looking at the housing markets, and existing home sales fell most, and they were print bad over the last 10 years, at least what we saw today. so where do you really go into the money if you're just itching to put some of that cash to work and you don't want to wait? >> so, liz, going back to what you were just saying, i think of all those dynamics of these overhangs in the market right now, the one has the most concerning to investors and probably to the market is the russia-ukraine situation because we've been through other cycles, economic cycles due to, you know, inflation but not because of a cause like this. so, to me, that's the biggest

uncertainty. and until that is rectified, i think we're going to have this high volatility environment. now, where would i go here? yes, even with rates till ticking up here -- still ticking up here, i would look at some of the big cap tech stocks, the apples, the microsofts, alphabets. i think those are actually safer plays. yes, do they have a little downside if rates continue to go up? yes. but i really think that's where you're going to be in somewhat of a safe haven over the next 3-6 months with a lot of appreciation to the upside when the dollar pulls back, when the fed, you know, finally tops out here. that's where i would be. liz: okay. great to have you both. a very jam-packed hour here. teddy, scott, great to see you, and we're looking at the dollar which today is slightly weaker against three of the four major currencies to which we compare it. shake shack founder danny meyer pushing all his chips into

the middle of the table. he's moving from the burger grill to the bakery. he's here next in a fox business exclusive along with his new partner, the ceo of chip city on the plan to bake up the cookie chain's expansion to a city near you. hey, austin, stop eating the props. stop eating the props, man. closing bell, 49 minutes away. we've had a 500-point swing on the dow jones industrials from trough to peak. right now the dow is down 37, the nasdaq lower by 52, the s&p down 22, and i'm checking, revlon is still halted. we're coming right back. ♪ ♪ welcome to ameriprise. i'm sam morrison, my brother max recommended you. so my best friend sophie says you've been a huge help. at ameriprise financial, more than 9 out of 10 of our clients are likely to recommend us. our neighbors the garcia's, love working with you.

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liz: shake shack founder danny myier has his hand in a new bag of chips, chocolate are chips. the restauranteur throwing a $10 million investment into chip city cookies. meyer's fund, ending lighteninged hospitality investments, is hoping to cash in on america's growing obsession with the flavor of the week custom cookies. joining me now to announce the partnership, union square hospitality group and executive chair danny meyer and chip city founder and ceo peter fill lips. okay. you guys brought props, thank you very much. danny, i need to know the genesis of this investment. how did can you hear about chip citiesome were you walking in brooklyn, stumbled upon a store? did somebody tell you about it in tell us about this partnership. >> well, actually, it's my team.

so enlightened hospitality investments is our fund, and we decided a long time ago that we're just not smart enough to come up with all the best ideas in the world, but if we could identify great businesses led by incredible leaders whose culture is what we call enlightened hospitality, meaning they care deeply for their employees, communities and customers and they've got a product that we just wish we had created ousts, then we're going to try to invest in it and provide the type of strategic help that maybe some of our experience for the past several years has given us. so we've got an amazing team of people. and one by one, people started saying, danny, have you heard of chip city? i know you like indulgences, especially when it's really, really good. and i hadn't, but the next thing i knew almost every week there were some chip city cook says in our -- cookies in our office. and you want to talk about how to get people to come back to their office to do their work --

[laughter] put some chip city in the office. everybody shows up. liz: we're watching some of the video where they're pilling it with delectable flavors, i am sure. peterrer, let's talk about the company itself and what it was like when you got the call from danny meyer that they wanted to put in $10 million. that's a good chunk of change. >> it really is,st a treatment come true. we started off with a 250-square foot box store, we currently have 14 locations with another 10 under construction. liz: so the phone rings and it's danny meyer. >> yeah. liz: what happens? we were back and forth for about a year negotiating the terms, and we recently closed it, and it's just been an unbelievable experience. the enlightennenned team is filled with smart, strategic partnership, and the sky's the limit for this company now. liz: danny, why this one? your team is out there hunting. this is a crowded field. there is crumb, insome i any ya,

milk bar, they make amazing cookies. why this one? what was it about that you said i am going to invest? >> well, you know, cookies are a lot like almost every single category out there. when we started shake shack, there were -- we weren't the first and is we won't be the last burger or shake out there. the question is, does your product attract a tribe of followers? and what we saw with chip city is that not only do the people who work there love working there, but the people who love the cookies are almost like their apostleings, and hay want to make sure all of their friends know about it. just take a look at the chip city instagram site someday, and you'll see the kind of comments and just with incredible fan support that they have. and you can't, you can't manufacture that. it either happens through the magic or it doesn't. with these guys, we saw it. liz: you see it, but there are headwinds, and this is what i'm interested in knowing about, the

commodity prices. peter, wheat. wheat prices have come down, certainly, from the february highs when ukraine was invaded by russia. her both big wheat producers. -- they are both. but cocoa is up -- >> yeah, butter is up. liz: sugar's flat, i believe, year-over-year, but how are you dealing with this? >> we're taking it one day at a time. there's definitely a lot of uncertainty, but we have a really lean operation, and we try to focus on solid business fundamentals, and that's taken us very far. liz: that brings me to you, danny, and what you're dealing with with shake shack. the stock is up, i guess, month to date, up quarter to date, but it's been hit year to date and year-over-year. so is everybody. oh, it's down 1.5% today -- >> come on, liz, did you have to put that up there? [laughter] liz: listen, we get it, everybody's like that. when microsoft's having a rough time the, i wouldn't worry too much about it. but what is the biggest shocker to you as a restauranteur over the past year?

and how have you dealt with it? >> the biggest shocker may come as a surprise to you, and that's the degree to which the consumer is so interested and has so much pent-up desire to go out and be with people that no matter what kind of news you hear on tv, on business shows, on news shows, political shows, people are out. we are, we are on top of busiest several weeks we've had since well before 2019, and that's the biggest shocker to me. when you hear all the bad news in the world, it doesn't make sense except for one thing, and i think this underlies our confidence in chip city as well, which is that the root of the word hospitality is hope. and the more fear people are feeling in the world, the more hope and pleasure they need and the more being with people they need. and that's exactly the kind of pleasure that chip city and companies like shake shack, salt and straw the ice cream, my

daughter's ice cream company, they're all finding that this is the busiest time they've ever seen. liz: peter, i know that danny is an optimist. most really successful people are. so he puts a really positive spin on it and, certainly, that is true. people are saving their money, but they're spending it on experiences like dipper and travel. but labor -- dinner and travel. labor costs are up. how much have you had to hike your wages and, in turn, hike the price of a single cookie, which is what? >> a single is $4.50, and we offer a box model which is buy five, get one free. we create a great environment, and that's outside the lines, and that's where we have succeeded in creating this great corporate culture. liz: danny, i need to ask you about the federal reserve because any company that's trying to grow certain libor rows money. -- certainly borrows money. how are you dealing with that?

>> well, we're not changing any of our bank, any of our bank deals, if that's what you're asking. i think everything you just said is absolutely true. every single business is facing the exact same headwinds. we have tighter labor market, and when you to do hire people, you're paying more money for it. none of us likes raising prices because all of us who are in this business want to offer the best possible value. and so the only way we know how to deal with it is, number one, we've got to make our price-cost ratio work, but we have to deliver more hospitality than ever. at the end of the day, people are going to still buy things, but they're going to bo to the companies that make them feel the best. so that's really the only thing we feel like we can control. we can't control commodity prices, can't control the shortage of labor. we think all those things are going to work out, but for now their not -- they're not. all we can do is make people feel better who choose to use our products. liz: one of the most welcome

sights in any airport is a shake shack. we'll be waiting to see chip cities in airports. >> definitely soon. [laughter] liz: danny meyer, peter phillips, good to see you both. listen to these flavors, blueberry cheesecake cookie -- >> yeah. liz: i need that. >> you got it. liz: thank you. >> thank you, liz. >> triple chocolate is my favorite. liz: oh, that's so boring. how about apple oatmeal? >> you got it. >> how about pb and j? liz: okay, i'm getting a wrap. we could do all day long. thanks, danny, good to see you. peter. >> thank you, liz. liz: hurricane ian doing more than devastating house and home on the florida's gulf coast. its impact is being felt right now by one fortune 500 company that finds itself at the bottom of the s&p 500. we will reveal the stock and show you what's happening along with the details next. and is the other shoe about to drop in the kanye west/adidas scrap? we will tell you who now wants

the sneaker giant to pack up all its yeezy fear for good. closing bell, 36 minutes away. now down 129, as i told you, that's a swing of about 530 points right now. s&p 500 lower by 32, the nasdaq can dropping 74. we are coming right back. we are coming right back. ♪ ♪ my mind. hey mom, can i go play video games? sure, after homework. thankfully, voya provides comprehensive solutions and shows me how to get the most out of my workplace benefits. what's the wifi password again? here you go. cool. thanks. no problem. voya helps me feel like i've got it all under control. because i do. oh she is good. voya. well planned. well invested. well protected.

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the number on your screen, or visit coventrydirect.com. liz: fox business alert, and while we're looking at the markets, i do just want to give

you a headline about the 2 the-year yield. it's hitting its highest level, 4.616, highest since 2007. big moves in treasuries and, of course, we have the stocks moving in the opposite direction. dow is down about 117 points or a third of a percent loss, s&p down 32 the points, the nasdaq lower by about 74 points. so even with the rising energy prices, i mean, crude's down slightly today, chemical big wig dow beat q3 profit estimates. dow had a less rosy outlook due to higher european energy prices that will force the company, which uses a fair amount of petroleum in its products, a billion dollars in cost cutting next year. the stock is down about 19% year to date and has reversed its earlier gains, as you can see from this intraday chart. allstate at the very bottom of the s&p and on pace for the largest percentage decrease since march of 2020. the insurer says it expects a third quarter net loss of as

much as $7 725 million due to catastrophe if losses from hurricane ian which struck florida in september. allstate holds a 2.6% share of the homeowners insurance market in that state. allstate is down about 12.8%. shares of american airlines suffering a bit of turbulence here, down 3.5% after the carrier said it sees fourth quarter adjusted operating profit between 5.5-7.5%. that's actually lower than double-digit forecast from if peers delta and united. however, american did beat top and bottom line estimates for the third quarter as travel demand continues to surge. well, now the anti-defamation league has jumped into the kanye west/adidas fray and is urging europe's sports apparel leader to cut dies with the rapper-designer. -- ties. the designer now known as ye has made several degrading remarks about jewish people. ye first partneredded with

adidas in 2013 but has recently said he believes the company stole his ideas, hasn't given him must have control over the yeezy brand with. in early october adidas said it would place the partnership under review, but yesterday as we reported exclusively, that deal -- according to sources -- may come to an end in 40 months but maybe now weeks because the anti-defamation league is involved as some insiders predict the company's board,they had a choice, would wait until a new ceo comes onboard before making a call despite the anti-defamation league. now separately, adidas lored its outlook for 2022 today for the third time this year, blaming it exit from russia, covid restrictions and china, of course, in an inventory glut. full-year revenue now seen in the mid single digits compared to priest guidance -- previous guidance. the stock down at this hour. tesla hitting a speed bump as elon musk's ev powerhouse struggles with delivery and

inflation, but that was last quarter. the man we call the tesla soothsayer, the founder of the original tesla accessories supplier, is here next exclusively to reveal what his current sales are saying about tesla right now. and finally, someone on the tesla analyst call asked elon about his twitter purchase. top tech analyst mahaney joins us on how soon musk will complete his twitter takeover after the world's richest man complains about overpaying for the social media giant. closing bell 28 minutes away. still red on the screen, folks. we're watching the "claman countdown." this is a snapshot of the dow 30. the league still ibm and then salesforce. ♪ ♪ ♪ ♪ we all need a rock we can rely on. to be strong.

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liz: we need to bring up tesla shares. they are getting hit pretty hard, down 6.7%. so this dip may not entirely be from the company missing quarterly revenue estimates for the first time after eight straight beats. it could have been in part because an analyst on last night's tesla earnings call finally brought up ceo elon musk's star-crossed twitter acquisition. listen to what musk said. >> i'm excited about the twitter situation of because i know the product incredibly well. and i think it's an asset that has sort of languished for a long time. it has incredible potential. although, obviously, it's not that the other investors are obviously overpaying for it, for twitter right now. the long-term potential for twitter, in my view, is an order of magnitude greater than its current value. liz: let's bring in our expert

twitter-tesla panel, mark ma havenmy and matt peresman, president of ev -- pressman. both join us live. mark, i want to start with that twitter comment. we look at the stock of tesla falling because, in part, he will have to -- if this deal goes through, we'll get your thought on that -- he's going to have to fund it by selling tesla shares. but it's almost as if that quote indicated he's got to do it. what do you hear in that quote? >> yeah, i think he's signed, sealed and delivered. he's just a matter of working through the optimal financing percent deal. but i think when he and his lawyers backed away from the delaware court case, i think they all but acknowledgedded they weren't going to win, so it's time to get it over with. look, he loves this asset. he's been almost a daily user for years. he's probably one of the biggest power users of the platform, so it's something he's been passionate about. he was hoping to get it at a

discount, it didn't happen, and now he's going to be the proud owner, within weeks, of twitter. liz: right now it's at a one month high, but if you stretch out this chart, exactly a year ago today the stock was at $68.41. what is it going to take to get there? >> well, look, he may -- i mean, he didn't, at least he didn't put many a bid last year at the top of the market. you're looking at a year ago. and, by the way, the stock has outperformed since then principally because of his bid. this stock would have been saiding off, twitter's stock would have been trade thing off like snap, pinterest and facebook. there's a lot of problems. there's a lot of operational improvements that are needed, you know in musk referred to that in his comments. but company still needs to come up with a compelling solution for marketers and for advertisers, and that's where i worry. i'm not sure that musk has a well thought out game plan for that. i think that's the best way to monetize the twir base.

twitter's a unique asset, but it's not easy and, you know, people have been hitting their heads against the wall for years trying to improve advertising monty monetization on that site. they haven't done it. i'm a little skeptical. i'm hopeful but skeptical. liz: 5 4.20 is your price target, that, of course, is the buyout price he offered and then tried to squirm out of it. now he decides, okay, it's going to be great and we can make something of it. but has he kind of scorched some earth between him and might be who would help fund this anymore? morgan stanley was in for $13 billion at a much different interest rate. that's certainly changed since april. and people are not happy who gave him money to fund. >> well, i guess that's right. he also, i think he did a couple of things during the transaction process that were, frankly, unprofessionally and immature x there's some financial backers that just don't want to be associated with that. but, look, he's one of the wealthiest people in the world,

he'll be able to get the financial backing. and i'm pretty certain he'll be able to get them. this thing is going to come through, then he's going to have to deal with all these operational issues and, by the way, a lot of the policy issues. you just talked about the kanye west comments. unfortunately, that's part of social media, and that's part of twitter. these calls, incitements to violence, hate speech, what is hate speech, what isn't, you need some adults in the room to make that decision. i really hope given the value of twitter to society, i really hope that musk bricks in some really -- brings in some thoughtful, mature, responsible adults to try to handle those questions. i don't think they're easy for anybody, but somebody needs to spend a lot of time working through the exact framework. twitter's had one in the past, and i hope musk brings them. liz: mark, for monday twitter froze the equity awards for the employees. what's going to happen with the employee base? some of them very hard working and very committed to this company.

do you see a mass exodus? >> well, i think that's one of the issues that i think some of the financial backers have been worried about because, you know, musk buys the asset or makes a bid for the asset and then starts denigrating the asset. so that takes the stock down and talks about walking away. i think you'ved had a lot of exodus can especially from some of the senior the advertising employees. twitter is going to be a multiyear turn-around. you're going to have to be very patient. if elon musking, you're going to have to be very patient on turn-around. you're going to need to bring in a lot more seasoned execs. liz: i want to turn to matt pressman -- pressman, and the crux of this is he has to use tesla stock at some point, sell it to fund whatever he wants to do with this, because he may not have all of the investors still onboard. but i'm not interested right now from you about last quarter. let's talk about this quarter. what are your sales of your ev

annex twitter accessories showing you about the current quarter and the interest in tesla cars? >> well, we're seeing a delivery wave that always gets a surge at the end of the quarter. and if typically we see it right at the end of the quarter. this year with, like we saw with what elon commented on last night, the timeline got pushed out a little bit. so our sales actually also got pushed out a little bit. so we i saw a correlation between the delivery surge at the end of the quarter moving out just slightly. so i don't think there's a demand problem, i think there's a logistics problem. liz: liz: that's what elon said, trying to find transportation -- meaning the big trucks that haul all of of the teslas to and from different states because they don't have dealerships, they have their own places, have been very expensive and hard to come by. what is the number one seller and for which model. >> well, for us right now number one seller is tesla model y

with, by far. and then tesla model 3, but mostly model y. that is the big winner for this year. and, obviously, we're not going to sell accessories for the tesla semi, but everyone's getting very excited for the cyber truck. i think that's going to be the really big thing for next year as we move forward, and he spoke a little bit last might about model 2, the robo-taxi, his new tesla platform that will be half of the platform for the 3 and the y -- liz: you guys were pushing out a few cyber truck accessories, and this thing hasn't even really gotten off of the assembly line. what are some of your sellers with cyber trucks in advance of this? >> well, we do have this interesting accessory right here. of it's the cyber truck backpack, right? [laughter] it has the cyber truck design, and it's something that i'm very excited about. we're designing a whole line of cyber truck-inspired design, you know? very cool stuff with that angular, sharp look to it with

that silver design, and our customers are loving it. liz: before we go, do you think they'll beat their pull-year delivery numbers? >> i do. i think they're either going to beat it or come very close. during the earnings call last night, the way we're seeing our own sales, we we see ramp, you know, reasonably at a pace that we think they're going to be able to do it, for sure. liz really interesting to hear. matt pressman and, of course, matt mahaney, our thanks to both of you. tesla's stock down 6%. is sec chair gary gensler about to flip wall street on its head? charlie gasparino says a proposal for an entirely new market structure is coming very soon. he's actually going to break what it might look like. that's next. you can't miss it. closing bell, 4 minutes away. we have -- 14 minutes away. we have dow down 96, and, yes, for those of you still asking me, revlon still halted.

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and have historically low risk. call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217. ♪. liz: securities & exchange commission commissioner gary gensler may be planning a major shakeup to market structure in the coming weeks that could

cause pain to major market makers like citadel and virtue financial. charlie? >> the chairman, i just appointed him chairman. liz: it said both commissioner and chairman. >> whatever. liz: which is it? >> it's a chairman, it is chairman. did i screw up my tweet? did i call him a commissioner in my tweet? no. in any event this moved the stock of virtue today, that is pretty simple. gensler is promising a plan to restructure the securities market, probably the biggest change in market structure in two decades rule mns under bill donaldson. that is it long time ago. liz: oh, wow. >> basically ad loud for many different exchanges, off, non-lit exchanges known as dark pools. the sec thought that was good

thing to have competition among different exchanges to lower prices for consumers. in some measures it really did although there is debate that it did. gensler is kind of going back to the old days. he wants old retail trades this is the proposal now, who knows how it might change, it is very controversial, all retail trade go through some sort after lit market, meaning the new york stock exchange, the nasdaq, some sort of a trading alternative trading venue run by someone else. liz: run by the cme? >> something that is lilt. i don't know all the details because it's not out there yet. no one has seen the proposal. he is talking with market players. that is i'm getting with people he is having direction conversations with and his rationale, the current system, the old way created by bill donaldson back in the day, where there are dark pools, market

makers like citadel virtue much order flow, get paid by brokers like robinhood, pay robinhood a fee to match orders, he thinks that is too opaque. he thinks maybe there is funny business done there. that is what we're doing, what we're hear something coming possibly as early as november. we should point out the word is, this is going to be some sort of a soft rollout if it does happen. it will be done in tranches much won't happen overnight, according to the plan. we haven't seen the plan. again i'm talking with people who spoke with gensler and it will be pretty controversial. i will say this, when he, listen obviously the people at virtue, by the way see that sharp down, that was my tweet today on this story. liz: that is what i want our viewers to look at. this is not good for those names certainly. >> for virtue an citadel. it will crimp their profits. it will end pay for order flow.

they will come back and say, which they have with gensler, you realize we take order flow from robinhood, an robinhood made this point to them, and we match all buyers and sellers. we don't have an auction. even crummy trades might not be priced right, we take it on the chin, we'll lose a few bucks to make it over here. what they're telling gensler if you do auction on these supposed no one shows up for the auction and retail prices, retail pays more money? , if you have an auction you might not be able to have zero commissions. one of the props gensler has, this could put a monkey wrench in, maybe delayed past november, he actually has a lot of opposition from gop members of congress. there is kenny g, kenny g, you're mimicking the apes in my ear. he is not only having some opposition from republicans or a lot, he has got some opposition

of democrats who are really worried that will take something that works into something that doesn't work or may not work as well because this is big stuff. again, huge story. i know it sounds like it is in the weeds. if you're an average investor this will really impact you. you might be paying full commission. liz: big change if they were to come to pass? >> right. liz: thank you, charlie gasparino. nasdaq has been seesawing throughout the session but mostly red for the second half. we're down at the moment by 51 points. low of the session was a loss of 105 points for the nasdaq but the highs with up 156. for the year-to-date picture down 32%. it has fallen into bear market. it happened earlier this month. for every 10 people who say don't touch tech, you have one scott lauder in, horizon chief investment officer, 1.4 billion in assets unmanagement.

you say time to go tech. why? >> i think, liz, first of all thanks for having me on. there is a part of tech that makes a lot of sense here and the part of tech more the services side. think your googles, microsofts, those type of names. those names are really battered hard with the large interest rate rises this year. large interest rate rises mean multiples have to go down. with the high multiples, they are rerate ad lot. that part is done. we're getting into the cycle where earnings matter and those companies are earnings monsters. those are the names in tech we want to be exposed to. we don't want the cyclical side of tech like semiconductor side but the services side. liz: we're cycling through some of the etfs here, the services picture, sfw, this is for software does not look pretty at all -- xsw. what about the chip world.

obviously once we have a snap-back it will be a ripper to the upside. would the semiconductors be the winners here? >> they will eventually but probably not yet because the semiconductors are really, really tied to the global economic cycle. they're also tied to the work at home phenomenon. so you know, everybody trying to buy things early in the during covid. they needed a lot of chips. so chip demand went through the roof. we're going through the other side. we're going through a chip demand lull for a while. probably on top of that the situation in taiwan and china. that is lot of uncertainty to the chip supply situation. chips is probably not the place you want to be for the next few months. getting toward middle of next year, it will probably be the place to be. liz: bring up the fed because you know every conversation about stocks falls with the fed. we are expecting to see another 75 basis-point hike but if you look at some of the latest wagers on the terminal rate for the fed funds rate, which right now as we know is nowhere near

5%. it looks like by march of next year we would see it just above 5%. what does that say to any sector out there that depends on borrowing money? >> well, it means, you better be careful, you know, if you did not term out your liabilities, if you didn't take advantage of the very low rates for a very long time you will probably be in some trouble for a bit. the big change over the last couple months isn't necessarily the market pricing terminal rates or the top or peek being around 5%. the real big change the market is saying hey, listen we'll not start cutting until sometime during 2024. that is a big change and that has driven the last leg down over the past six weeks. [closing bell rings] liz: scott, great to have you. too bad for the bulls. it's a red day. we started off with a lot of muscle because of good earnings but lost it all. that will do it for us. we will see you tomorrow. ♪. larry: hello, folks, welcome t