tv Cavuto Coast to Coast FOX Business December 9, 2022 1:00pm-2:00pm EST
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neil: that might apply to other matters but not shares of lululemon. no matter what day of the week, there are 7 days a week but who am i to question one of the most successful groups of all time. it is 1:00 pm on the east coast of the united states. glad to have you, america. connell mcshane is following this closely. they were very famous band. i want to get your sense of not every one in that sort of pro-market move. >> reporter: did you stop wearing lululemon? the company is struggling today.
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neil: america with those images. >> market overall, under 3 hours to go until we close the weekend not a lot of movement in either direction but certainly a down week for stocks unless something really dramatic happens, a 2 week winning streak for for the market so you have the s&p and the nasdaq down in excess of 2% this week, nasdaq 3%, down less than that but most of this has been building on in one way, shape or form concern about recession. with the wholesale inflation numbers showing up, a rise, higher-than-expected number, stocks between gains and losses, we have a mixed picture with the dow down in the other major averages higher. let's get to lululemon, lower today throughout forecasting profit and sales that might
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fall short of analyst estimates with the holiday quarter for the company and if you look at this inflation is making shoppers cautious about high prices you pay for lululemon, analysts expected them to have revenue of 2. $65 million but the company's ranges likely below that, 2.61, the same thing on profits, expectation, companies between 420, and 430. for what it is worth there were analysts, morgan and piper sandler, you see stock down 12. 5%. %. we are watching general motors today with its battery plant in northeast ohio voting to unionize, gm's talk turns higher, this was an overwhelming vote to join united auto workers union. this is a joint venture between gm and lg energy. the vote, 710 to 16.
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for anyone watching, some sort of test of their ability to organize workers that make parts for electric vehicles, some people are talking about this is the test that was passed with flying colors. on the detroit automakers have these battery plants in the works, bringing partners from south korea so we will watch how this goes in terms of unionization. they could have a tougher time organizing in southern states, less friendly over the years to unions in ohio but this one is good for the unions in ohio. neil: thank you, great job. connell mcshane, to alexandria huff, the white house celebrating what seemed to be a positive trend on gasoline. very soon we could be seeing prices dropping below where they were last year at this time, lower after that. what are we looking at? >> reporter: the white house is seeing this as a mile marker.
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they released this yesterday, quote, the national average retail price per gallon of gas is $3.33 down one dollar and $0.69 since june and saving american families with 2 cars an average of $180 a month. inflation is down from where it peaked at 11. 7% % in march, the extra 180 is a race and than the sum due to inflation. a bit of surprise came when the labor department reported november wholesale prices rose 0.3% compared with the month before excluding food and energy, 0.4% higher, economists are predicting that a be 0. 2%, the price index showing companies more than expected means there's pressure to pass that down to consumers and consumers are operating with $1.5 trillion in additional savings from covid stimulus programs but forced to spend more and when it runs out that could spell trouble. the federal reserve benchmark rate heading above inflation. all concerns there but according to the white house
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they are not concerned by the prospect of possible recession saying they are not preparing for one. they feel the economy is growing in the labor market is strong. neil: if you are planning to go to disney world whatever you are saving on gas you might pay in higher ticket prices in at least 3 of the parks there. fox news contributor dan g geltrude is here, familiar with having a good time. as our orlando expert this continues a trend. don't know why all 5 parks shouldn't go double digit up about 3 have. this is getting eye-popping. what do you make of it? >> disney has been good throughout the years measuring demand as well as price and they have been getting it and all i can tell you, to january 2nd disney world sold
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out except for 3 days in the middle of the week next week and other parks are sold out. i must tell you i was worried when they went above $100 on whether there would be pushback. i think they have a good understanding. the one thing they have to watch out for is there has been a lot of media reporting indifferent newspapers here and around the globe about the cost to an average 4 person family going to disney world, staying at hotel, having the turkey legs which are very good by the way. eventually they will have to figure that out and bob iger has said he's going to be looking at pricing going forward to make sure it is in good line. neil: i'm not up on the details but one thing i've noticed is by design, they have not
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returned to pre-covid levels and that is by design to keep the park at least somewhat bearable for those who are there even if they are paying through the nose. not that it is a wonderful experience but less of a taxing one going from ride to ride, event to event. even if you are paying more. what do you think of that strategy? >> gary is right in terms of it is all about measuring demand. the market is going to dictate what disney and other forms of entertainment can charge. let's look at what was going on with tickets for taylor swift or bruce springsteen, thousands of dollars through ticketmaster. those prices would not be charged if people didn't have the money to spend. adele tickets are out of my price range but i believe that one to you but people are spending so what does that say?
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demand is going to stay there. what happens? are we really getting more supply out there? a little more. that's why inflation is going to stick around for quite some time still. neil: he's right about that. maybe dan should change his mind. this demand on the part of the consumer to pay higher ticket prices, higher resort prices, higher disney world prices is indicative of a consumer that hasn't completely lost his or her steam because restaurants are booked solid, broadway shows are brooked solid. my point is if you are in a world of hurt or moving to a recession we have a funny way of showing it. that is what i am saying, what do you think of that? >> i think we are still in that arena of people just wanting to get the heck out, travel around the globe, go out because we
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have a long time sitting in. that's a component of it. i want to say my big worry is two little things, savings rates are plunging and credit card usage is skyrocketing and i wonder how long it will last. right now it is and i can tell you in central florida, in the new york city last week, restaurants were packed, business is brisk. if you try to travel in and around the disney area it takes half an hour to go 3 miles on i 4 it is so packed so far so good but again, credit card usage skyrocketing, savings rates dropping like a rock, eventually that will hit a wall. neil: you should try what dan does, taken away from this craziness. where do you see things going? eventually the consumer racks up a little more debt and able to balance it so far but where
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do you see that going? gary clearly has words, do you? >> it is a worry particularly with credit cards because you have interest rates going up and people don't seem to be afraid of continuing to swipe away and worry about it another time. with the fed having a 2% target for inflation i don't see that happening. what i think is going to happen is particularly because of the job market, wage inflation still a tight job market, 10 million job openings out there which means you still have employers really looking to get people to work because of that, inflation will stay high because businesses have to pay for those workers. ultimately what comes out of that is inflation can't get to that 2% because the wages are not going to drop. we will end up getting 2
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inflation and inflation's target is going to be 4% or 5% and that is how it is going to be. neil: i want to thank you, always good to have you on. you might have noticed the doom and gloom they laid out, the dow down 80 points. market averages down for the week. as things stand, almost 3 hours to go. wrapping up this trading week. ♪ ♪ i will do anything to see it through ♪ because the stakes will show ♪ feeling it now ♪ that could hold us back ♪ fall down ♪ this revolution ♪ the time will come for us to find
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impacted around the country. 80% of the nation's hospital beds are actually fool right now, up 8%. just over the past 2 weeks, this surge in patients coming as hospitals are grappling with staff shortages. we had a chance to talk to an emergency room nurse who says staff shortage is making it difficult to treat the number of patients coming through the emergency room, patients waiting hours in an overcrowded emergency room waiting room and once admitted some of them are being placed in hallways for treatment. watch this. >> it is not life saving equipment and they are in the hallways. it is dehumanizing experience and also dissatisfying for the nurses.
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>> reporter: part of the problem is ongoing shortage of hospital staff impacting what he says is the quality of care not just here but across the country. health affairs into straits the industry lost 100,000 nurses between 2020, and 2021. even here the nurses union says there are 600 open positions in registered nurses across the hospital system. recent survey of 1000 nurses conducted by one paul shows that 9/10 nurses believe the quality of patient care is suffering due to the ongoing nursing shortage. the greater new york hospital association made a comment for this story on behalf of the hospital and said the hospital is committed to retaining and recruiting nurses but not just nurses are at issue. also doctors as well. the american medical association have an estimate
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that 20% of doctors could leave the profession due to burnout of working through covid and this busy season caused by respiratory illnesses. it seems this is a problem that may not get better anytime soon. neil: very worrisome. mild friend at saint joseph institute for autoimmune diseases, very calming presence in the middle of all this as he was during covid. are you worried, do we have something to worry about? >> this is déjà vu all over again, we expected a surge of covid. it's a little early that the holidays are upon us and we said if you recall that when crowds get together in closed spaces anything can happen. new variants can appear. we are hearing masks are coming
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back and advising people to wash their hands and in our own institute we wear masks and are very careful. and you have influenza. we have to get people to get the flu shot, to get the covid booster. neil: here's where my questions come in, politely but dismissively, if you get these boosters, in a short period of time. >> a lot of people say that is the case. some of us are advocating that you get the booster and the flu shot, a lot of people have bad reactions to vaccines, no question about that especially people with autoimmune disease. i see an uptick in symptoms in
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people who get these boosters shot and get the flu shot as well so it is not exactly comfy to say to patients get them altogether because they will be knocked out for a couple days and i am hearing that all the time. a person without any predisposing condition could probably face symptoms that are intolerable. neil: the pendulum has swung away if anyone hears the thought, wearing a mask or getting out another booster, this would go crazy about it and say i'm so done with this yet we hear about these spikes, china, and focus the 0-tolerance policy but what is the healthy balance? >> got to use your head, if you're in a bar celebrating with your company's christmas
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group it is probably a good thing, nobody will wear a mask at a christmas party. nobody wearing a mask. that is probably realistic but if you have somebody with symptoms, people who know they are coming down with something, intentionally go to the party because they don't want to miss it. they are super spreader's and everybody is going to get sick. that could be for the flu or respiratory virus or covid 19. people have to use their heads and think about the other person's. neil: very good seeing you. have a wonderful and safe holiday, thank you for keeping us safe. in the meantime, aol cofounder, what we learned, the head of a live trend including the latest
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neil: we had the watergate transcript of the pentagon papers and now into the twitter files, don't know if they are up to the magnitude of the prior cases but griff jenkins joins as out of washington. there's a lot there for anyone's appetite. >> reporter: a lot to unpack and the second drop of twitter files. it has me wondering of twitter executives lied under oath when they said they were not shadow banning users.
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one of the tweets saying the visibility filtering is what they view as shadow banning. 's with xi reported in the tweet, twitter denied it does such things, 2018 twitter's legal policy and trust head had a product that said we don't shadow ban and we certainly don't shadow ban based on political viewpoints or ideology and jack dorsey said this on the hill. >> are you censoring people? >> no. >> twitter shadow banning prominent republicans, is that true? >> no. >> that may not be true and conservatives were largely the targets. take for example stanford, arguing covid lockdowns would harm children, twitter placed him on a blacklist which prevented his tweets from trending, consider the possible
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right wing talk show host dan bonnegino was left with a search blacklist and this one, twitter said the account of conservative activist charlie kirk do not amplify. also revealed there was a small brain trust that called the shots that included jack dorsey, and senator tom cotton. >> remarkable this was happening and you had executives lying in public and misleading the public under oath. >> we are not done yet. matt i.e. be -- matt taibbi will have the next drop of the twitter files. neil: the aol cofounder, the rise of the rest. good to have you back.
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>> good to be with you. neil: what do you make this back-and-forth, working in concert with government authorities and the rest. we don't know all the details but elon musk is saying he doesn't like what he sees. >> there's a couple levels to it, elon is a great innovator, making a lot of decisions but starting to realize even though building rockets that can take you to space or electric vehicles is really hard some of the issues around media and society the twitter has evolved in have a nuance to it, and also broader trends as groups talk about the past, a policy becoming more innovative in terms of innovation in silicon valley was operating on its own and policymakers not just in washington but other places, a
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mega trend over the next decade. neil: i wonder if that includes politicians from both parties weighing in on successful media juggernauts, ftc trying to put the kibosh on microsoft's $75 billion. for activision, where are we going with this? >> each one is different and we will see what happens with the ftc and microsoft. there has been some discussion about the movement and what will happen next but it doesn't surprise me there's more scrutiny of silicon valley or back lash against big tech. i read about this 5 or 6 years ago in my first book, the third wave. as the internet is more integrated and central to society, more central to industry it is naturally going to get more attention from
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policymakers and regulators and now that it is meeting the real world impacting things like healthcare and food, some basic needs, you are seeing more government intervention. some of this could be unhelpful, slowing down innovation and sometimes it can be helpful including what congress did this past summer, the chips and science act is important to bring semiconductor production back to america and authorizing $10 billion with the workaround, how do we not back entrepreneurs on the coast, places like silicon valley or new york, across the country creating jobs everywhere across the country. that's a welcome development. neil: i am intrigued by the startup opportunities but i wonder about the backdrop, it does seem the browbeating of technology stocks is an
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understatement, and maybe relax soon, smaller versions of them don't seem to be welcome versions. >> this is a back lash to get major companies that have an impact on business and society. there is broad bipartisan support, i met with a bunch of republican senators and democratic senators focused on what they can do to make sure america remains the global leader in innovation and a more inclusive innovation economy, backing more people and places, that the thrust with broad bipartisan support. there are many things, the issue of innovation and entrepreneurship is one of the areas people are united in trying to make sure the next wave of innovation is more dispersed across the country and the great thing about the stories we have invested in 200
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companies, bus tours and 50 cities, remarkable entrepreneurs in the cities that would surprise you. and the ecosystems, the next 10 or 20 in the lead, new york and boston continue to be strong, we will see other cities rise up and that's why i wrote the book, something most people don't understand. neil: do most people understand math? if you're looking for regulatory taxes that could explain what is going on? >> to some extent but if you look at venture capital, 75% of venture capital dollars, california, new york, massachusetts, 75%. some of the cities and states have low taxes have not gotten the fair share of venture capital, starting to change, that will accelerate in the
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next decade. we are focusing on policy and the convergence of those two over the next decade where a lot of opportunities are, we back the company in illinois doing some amazing things around precision medicine that historically people think would be in boston or silicon valley. in chattanooga and indianapolis, national and detroit, many cities around the country, the story needs to be told which is why i wrote the book. people will be surprised how many companies are the giants of tomorrow, building across the country or the coast. neil: don't know if elizabeth warren has read your book but i'm wondering given her anger at the tech giants. there is an animus building.
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xi is a poster child for that but not the only one. i wonder if it is the sheer -- the tech giants that could rein them in. >> the biggest companies and wealthiest entrepreneurs. if you look what is happening across the country, the next generation of companies taking on big areas, how we eat and invest and move around and pretty basic things building on the strengths of those cities and why there's a political back lash is in the last 10 or 20 years, it is limited to the coast, disruptions have destroyed jobs, we haven't been backing and of companies in the middle of the country to upset job loss with job gain. as a result many people in many parts of the country feel left out and left behind by backing more entrepreneurs, we can
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start changing is that, companies creating thousands of jobs in the middle of the country, not just big tech companies on the coast. neil: always good having you on. the cofounder of aol, as the world moves on. the meantime, talk about technology, netflix stock jumping, wells fargo the latest to say this property could be on fire. if that has anything to do with this hairy and megan documentary series, can't imagine that is the catalyst but who knows? after this. ♪
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neil: keeping track of the push, madison alworth has more. >> reporter: they rx going slavery reparations. this summer the summer a bill passed in the new york state house called for a commission to study the impact of slavery in -- it failed in the senate. this renewed push comes after a california panel created by governor newsom estimated $569 billion is owed to descendents of slaves for an estimated $223,000 per person. new york exporting the same. the following comment in support of slavery reparations saying in part, quote, the negative affect cannot be remedied on an individual basis but by systemwide governmental
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policies that direct these issues and provide remedies to the population. new york state is well-positioned to set that standard on what harm these reparations should look like. opponents say it is political and doesn't solve anything. >> everyone should heavy will opportunity and we should ensure that the situation rather than try to get a windfall to some people who might have been related to somebody else 150 years ago. >> we fought ability civil war to abolish slavery. america paid a great price to do so. to bring this up now, 200 years later, and saddled this expense to our economy is unnecessary, divisive and wrong. >> reporter: there are questions around how to prove someone is directing related to a slave and if families that came to america after the civil war should be responsible for these payouts.
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the types of reparations extends beyond money, new york wants to consider reforming laws to stop this and official government apology for slavery. neil: thank you for that, keep us posted. you have probably wondered what home owners will do if you are interested in buying from that homeowner but what if i told you a lot of places, new jersey for example, chances are that home isn't owned by an individual but an institution. we will explore, we will explain after this. ♪ (other money manager) different how? aren't we all just looking for the hottest stocks? (fisher investments) nope. we use diversified strategies to position our client's portfolios for their long-term goals. (other money manager) but you still sell investments that generate high commissions for you, right? (fisher investments) no, we don't sell commission products.
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neil: you always wonder what is on homeowners minds was what i told you it's not just the he or she but could be a business, institution, conglomerate, not just one human being, gerri willis following that phenomena and particularly in the garden state. >> reporter: there is a lot going on. achieving the american dream is tougher for prospect of first-time homebuyers. it is companies, not people who are buying available
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single-family homes. for example from new jersey according to a brand-new report conducted by the department of new jersey community affairs one in 17 residential properties were owned by investors. in 2,020 the number doubling in in the last 10 years but new jersey isn't alone. llc trust, banks and government are all buying homes at record pace across the country. pew research estimates investors bought nearly 1/4 of all single-family homes sold in the last year. experts say institutional investors are driving prices up for first-time homebuyers and even prospect of renters. listen. >> a tremendous amount of underlying demand for housing. that demand is there, just a matter of -- there is too much underlying demand and we are under built structurally for housing in the us. >> reporter: there's some good
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news for prospect of homebuyers, some of this investor demand is cooling. they are reducing buying activity in those high charging markets, lower by 30% but that might not last. firms like jpmorgan may increase exposure to the homebuying basis when rates for home prices begin to ease. neil: i wonder what the wall street journal chief economics correspondent thinks of this, always good to have you on. what do you make of this phenomenon? and llc could be a single individual who doesn't want his or her name known but here's the trend. what do you make of it? >> this has been happening since the aftermath of the housing bust in 2010 when housing prices were so cheap but there's a surfeit of homes, investors started buying them up. it is important to remember there are millions of homes
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rented out in this country, a lot of them are owned by mom and pops. larger investors pick up a small slice of the rental market and the bigger challenge for first-time homebuyers is mortgage rates have skyrocketed over the past year. they were 3% a year ago, they are above 6% right now, they were 7% last month and that is a tremendous hit to affordability. looking at a huge increase in the monthly payment. that is why home prices are coming down in a lot of parts of the country. neil: the real estate investor, one of the more successful of the last century, who doesn't feel prices have come down enough even with interest rates moving up at a blistering pace. i want to get your reaction.
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do you think it is too late? going into recession? >> going into recession, the odds are very high. whether that recession will be painful or not remains to be seen. it is hard for me to believe we are not moving into an area with higher interest rates and a lot of people sitting on the sidelines avoiding making commitments. >> the gist of it is in this environment rates have to go up more and looking to be a vulture investor taking advantage of this, prices haven't come down enough to see
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that happen. that is a double whammy. if he's right, what do you make of that? >> definitely a double whammy. a lot of people say historically 6% mortgage rate is not that high but it overlooks the fact, the price of the entire housing stock of this country, sub 4% mortgage% mortgage, mortgage rates were below 4% most of the last decade and 3% after the pandemic. home prices went up a lot after the crash in 2,008, a lot of home price increases. home prices went up 45% over the last two years so it seems likely prices will come down in some parts of the country. we have forecasters like john burns who are very accurate. they are saying home prices will come down 20%, and you put a recession inerrant it is hard
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to tell what will happen because as people lose their jobs, not able to make their home payments, these things, economists call from nonlinear where once things we can a little bit they can we can a lot. and uncertain outlook now. the other side of this could be if inflation comes down quickly and interest rates don't have to go up a lot more there could be more strength in the housing sector but that seems like a difficult thing to bet the house on. neil: the last housing direction was a crash. do you envision anything like that in the 12% to 20% figure? it would be better than prices cut in half where people lose their homes altogether in record numbers. for that activity that we saw than in a lot of stuff baked into some of this now. >> i don't.
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that is largely because underwriting standards have been better over the last decade. you don't see a lot of adjustable-rate debt or teaser loans that will reset to higher payments. people have to qualify for the ones they have now. as long as they have jobs, if prices come down 10% or go up 40% you have a lot of equity. if you bought at the peak and didn't put a lot of money down it seems a different situation but doesn't look like we will see something on the order of what we had in 2006, 7, 8, 9, we could have something from the early 1980s where you have a sharp race in interest rates, one thing different in the post pandemic bubble is home prices going up a lot more before interest rates shot up so there is a little euphoria there but
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nothing like what we saw in the 2007-8 subprime episode. neil: thanks for taking the time. we are following the major averages, all underwater for the week, the battle over wholesale inflation report. it was a little worse than thought but year-over-year not as bad. strong sentiment news on the part of consumers who don't seem to be panicked, making the markets think maybe they should be more panicked so they don't know what to make of the bottom line. more after this. ♪ good luck.
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