dow now ticking up higher by 41, but this is the way we kind of roll. it's the last week of the year, this is the worst year for the markets since 2008 and low volume, a lot of traders and big money and investors made their positions for the year and this is happening and the quick stocks hitting new lows and watching storied stocks and high interest stocks and particularly when they're down the%. >> i'm calling santa and good to see you, cheryl. i'm kelly o grady in for liz claman while she deserves a --

enjoys a well deserved vacation and deadly winter weather dominating the headlines, 28 people confirmed dead in buffalo on what many are calling the worst winter storm in 50 years. state and military police have been sent ths as new york's second biggest city struggles with freezing temperatures and even more snow on the way today. snowfall totals in this weekend's buffalo blizzard totaling more than 4 feet and hard to wrap your mind around how high that is and two dozen deaths reported in other parts of the country with massive power outages across the nation and winter blast slamming holiday travelers and more than 3,000 flights canceled in the united states today. no airline of course getting hit harder than southwest as its stock hit session lows moments ago. lydia has more on the travel chaos and joins us now from the fox business news room. lydia, so good to see you but, i

mean, what an awful story for folks this holiday season. >> great to see you as well, kelly. it's frustrating and disappointing that this problem will continue probably throughout the week and southwest is continuing its sweeping flight cancellations today. it's leaving thousands stranded in the wake of this winter storm and president biden tweeted this afternoon about the massive travel nightmare saying the administration is working to ensure the airlines are held accountable. today more than 2500 flights were canceled and that's 63% of southwest scheduled flights and it made up about 87% of all flights within, into, or out of the united states canceled for today. many airlines were impacted by the storm but southwest particularly so, so many so that the department of transportation is launching an investigation calling the rate of canceled flights unacceptable and adding to the criticism here is the union that represents the

airlines flight attendamages, the union blaming what they call "years of neglect and thousands of crew members stranded across the country and some forced to sleep on cots in airports or some in hotels without power or water and far too many working long hours well past acceptable duty days and more". the airline, southwest, issued an apology yesterday in a statement saying it's working to reach all travelers working to work out new plans but southwest airlines ceo bob jordan told "the wall street journal" the company plans to operate at a reduced capacity about a third of the scheduled flights in the upcoming days and they're doing that because they have to give themselves the ability to get crews back in the right position to carry on. some passengers are saying that they're not able to rebook their flights until this coming weekend, kelly. that's quite a long time to be disrupted. kirks oh, it is, lydia.

i love how you described what the people are going through because that's what it's coming down to that you can't rebook this weekend? people are sleeping on the floor of the airport. thank you for that report, lydia. we appreciate it. >> no problem. kelly: all right look al fox market alert, no signs of the santa rally at this hour. the dow is holding onto some gains right now but has been seesawing between gains and losses and nasdaq, russell 2,000 all in the red and what's driving the action today? big tech and growth names are leading today's losses and you've got the usual suspects there, meta, amazon, apple, microsoft, alphabet, i mean all down across the board. let's take a look at nasdaq laggards, moderna, lucid, nvidia leagued the declines and at thea is the biggest laggard down eight% and this comes after news that the ev maker will slow production at shanghai factory

in january and tesla down 57% in the last three months. you've got eight% and the attention is split at twitter. the two year yield speaking to 4.4% and highest level we've seen in two weeks. now as we take a look at major averages this year, the dow down eight% and the s&p 500 down 19% and nasdaq down 33% and investors are looking for any glimpse of green on the screens and that brings us back to the santa claus rally. this is the time period between christmas and new years. it's produced positive results 78% of the time since 1950 is santa going to deliver this year? let's get to the floor show with trader scott shellady and steven

sarge gilfoy. steven, should people be putting their money in right now and santa was able to make his way around the world but will he be coming to wall street? >> i don't have a high degree of confidence and i'm tactically set up for a santa claus rally and i added to that and low position in southwest air. i added some nvidia and added to a and d bainitessing laws and position and a d is my stock pick in 2023 and up at real money pro. strategically i see rougher seas ahead and set up for potential recession going into the second quarter probably. when it gets to investing, not trading, i'm staying on the defense contractors and long on lockheed martin, raytheon, general dynamics, boeing and three and six month t bills and

high percentage of portfolio in sash going into the next year and you might as well make four% on it. kelly: yeah, cash is king. before i bring in scott, i want to follow up quickly, amd, advanced micro-devices and seen head winds with the semiconductor industry and we've got more we expected and why amd? >> okay, i don't think this is a home run right off the bat. i am in my position building stain. i'm down to about 20% of where i was last year at this time and i expect to be building this position throughout the first half of the year. when we get to the second half of the year. we're hopefully maybe china is contributing to the world gdp and top and bottom lines and maybe potential for peace? eastern europe and maybe setting up for something better than what i see in the first half in the second half, which is when i think the semis come alive and

amd is my favorite semis. kelly: scott, black to santa claus rally there's a lot of head winds going into january and we maybe will see a bump and it feels like the core issues are still there. what are the things you're going to be looking for in january in that first quarter to give you a sense of if we do see a santa claus rally, if that's going to last through the next year. >> first off, i like what sarge said and there's an inflation problem and you've got the fed out there saying they're going to see jobless levels rise and they're going to run the risk of putting us into a recession if we're not already in one and that's your backdrop going in 2023 and on top much that, everything we had to deal with in 2022 has not been solved, russia and ukraine, china and

taiwan and own inflation problems and we've got this inconsistencies between the borough of labor is it a it's icks and when it cops to jobs we've created and philly fed says 10,000 saying 1.2 million and that'll have to be rectified and i stand here and i know for a fact in 19 -- in 2019 we used more fossil fuels than in 2018 and same in 2020 and same in 2021 and i reckon 2022 will be the same thing. i think a lot of money managers are going to ask about there and energy saving on this year. i think that that's going to be the case going into 2023. i live in nashville now and tennessee valley authority which has been the gold standard of power instituted 30 minute rolling blackouts this winter already. that's an issue. so we've got skyrocketing prices

there, that's going to be a problem. i think the good place to be will be in some of the shun stocks, fossil fuels, that are going to be helping money managers out having a rough time last year. also having a bit of agriculture back and i love technology and i want to stick with agra technology and this will be one of the most expensive crop that america put in the ground in the spring of 2023 and they'll need all the help they can get because of all the baggage we're bringing in 2023 and we haven't solved anything and i like those types of things because we'll need those stocks to help grow the food because you've all heard the story of food insecurity. i like that type of stuff. i like tech but agra tech better and fossil fuels because of energy and getting better prices on those and i think it'll be a bumpy ride going into this earning season in january but in the long run, they'll be great places to hide out. kelly: yeah, certainly if you were invested in energy this

year, you did very, very well. the agriculture piece is interesting. i'm normally on the west coast and we're seeing so much drought and how that's impacting farmers and whatnot so i'm curious, i'll keep an eye on that and i want to switch gear as bit because the change that we're seeing in china's covid policy and then today of course. now international travelers will be let back in so, steve, i want to get your take this lyfting of the zero covid policy so dramatically quick. what do you think that's going to have an impact on the market. >> i think that's going to add to the global problem through the first half of the year and under those conditions i don't think anybody would visit unless they absolutely had to and leads me back to where i was before. in the economy and usa global economies hit that brick wall in

the second quarter and show the complexity of the fmc changed. bullards out, and georgia is out and three uber hawks and replaced by kashkari and two others with a more doveish group taking their place. as we hit that brick wall, there's a pretty good chance that these three can be convinced to take boot off the throat of the u.s. consumer, of the average american economically and maybe there is a chance for something, which is why i'm telling you i think the second half will be much better than the first. kelly: yeah, you know, i think that's an interesting point, you know, i certainly wouldn't want to travel to china right now, maybe bali is higher on my list. scott, last to you, dove tailing out of that we've seen tesla hit by reported, more shutdowns in their factory in shanghai because of covid. what are you thinking when it comes to tesla? is that a stock that our viewers

should be investing in? elon musk has eyes on twitter and eyes on spacex. what's your thought when it comes to tesla? >> yeah, it's a distracted stock to your point. also it's kind of funny and hailed as the electric car and supposed to be all the mandates for all the cars being electric and you'd have thought that would have been a good place to go but again, that was a little bit more hype than -- more sizzle than steak and that's paying the price for it right now. as far as china goes though, you know, the zero covid policy was a difficult one and now they've opened up wide open, nobody wants to see anybody get sick and die. absolutely not. however, they're going to get to earn immunity faster and that can be better for the long-term health of all economies around the world and supply chains because a lot of things are made and manufactured in china and also shipped via china so if they can get through their

issues and sooner to sarge's point, this might help him with the second half call, you're going to see that country get stronger and faster because of throwing it wide open rather than lingering and that could be something that can be very good as far as it goes, i'm more of a hybrid person but i want to hear the stories of how the electric cars did over the cold weather. we all saw how they did over the hurricane and there'll be more news coming out about that. it's an interesting time there and back to my first point and fossil fuel stocks just yet. kelly: yeah, it was a nice way to wrap it with a little christmas bow there. to your point, it'll be interesting to see how those cars fared and i'm looking at price tag of tesla saying not right now. gentlemen, thank you both, scott shellady and stephen gill foy

for your insights. we've got duck horn portfolio ceo to tell us that it's not just all about champagne the night the ball drops. check the big board and the dow is holding onto some gains here, 71 points, claman countdown is coming right back.

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first psoriasis, then psoriatic arthritis. even walking was tough. i had to do something. i started cosentyx®. cosentyx can help you move, look, and feel better... by treating the multiple symptoms of psoriatic arthritis. don't use if you're allergic to cosentyx. before starting...get checked for tuberculosis. an increased risk of infections some serious... and the lowered ability to fight them may occur. tell your doctor about an infection or symptoms... or if you've had a vaccine or plan to. tell your doctor if your crohn's disease symptoms... develop or worsen. serious allergic reactions may occur. watch me. kelly: the clock is ticking to the famous time square new year's eve ball drop and waterford cristals are installed and according to beverage delivery service drizely, proseco seen a 26% increase

since last year versus a six% drop in champagne and who better to talk about all this than a luxury wine company ticker napa and joining me is president and ceo alex ryan and, alex, so good to have you here talking about one of my favorite things, wine. thanks for joining us. >> thank you, good morning. kelly: yeah, fair enough. good morning. it seems to be morning for you. >> here in california. kelly: totally, i'm normally in california so i understand that. listen, i want to kick this off by talking about holiday sales. my best friend owns a wine shop and impossible to get on her calendar during this time of year hawaii have you been seeing in holiday sales and seeing during the runup of this time of year? >> we've seen a really solid amount of sales and not seeing much trade down and seeing our loyal fans flock to wines that are excited about that and throughout the holiday is one of the biggest season of selling

all the brands whether it's whites, reds, sparkly wines and the whole thing. the holiday sales are a resilient customer base in luxury and we continue right into celebrating of the new year's with our friends. kelly: well, i definitely will be doing that myself. i'm normally a riesling girl but i'll be tempted by a good red. i have one of your cabss here, it's a 2019. i wanted you to share with me a bit about the price point and also the taste if i were to open this up on new year's eve. >> well, that particular wine is one of our new innovations we came out with about a year and a half ago and the decoy limited from the napa valley about $25 to $27 and roughly that price point around the united states and naturally distributed and

rich, s soft, great cabernet and you don't have to overthink it and they want to enjoy but not overthink. >> i'll have to visit you out in california and i have to admit i'm normally, my taste buds are like okay, this is white and red. i can't do more than that. kelly: i do notice that you've got champagne or sparkling wine there. tell me about that one. >> it's some of the decoy brute rows sparkling wine and it's a share with your friends size. a sparkling wine as you mentioned with sparkling wine and rose is exciting now and we're seeing that in our particular avenue of the areas and california sparkling wines and the celebrations and cheering on the entire year so

we think there's something there we'll continue to produce what our customers want in that particular category. kelly: well, and prosecco is companier, which is always great when you're a customer and drinking magnums on new year's eve. i was looking at recent earnings report and beat estimates and reaffirmed 2023 forecast but your stock is down. i'm kind of surprised. i mean i drink a ton of wine during the pandemic so what's going on with the stock price but your earnings report was so good. >> i think people recognize it's a long-term play and you don't want to be a bouncing blow ball and slow -- ball and slowing into the future and the stock has done really, really welsh since the issue and price of $15. we think it's a tough market. be honest with that. we think we're holding our own and think we're hitting the fundamentals and continue to hit on track at plan so on the long

term basis, i think that we're in a solid place. i think that the future is really bright for luxury wine and right where we sit in luxury wine. kelly: you mentioned the long-term play here. i want to bring up the drought because that's certainly something that so much of the midwest and the western part of the country is dealing with. i've done a number of segments this summer in napa looking at grapes and vines that shriveled up. how were you expecting that to impact this next year's harvest and that long-term picture as well? >> it's a good question. one, we're farmers; right. we have to diversify to stay relevant in the farming space. we have a really well diversified production platform, which helps us kind of navigate things like droughts and peculiarities within the agricultural swings and we're in the middle of a huge rainstorm

and 2023 crop bodes well and things are exciting and we're get ago lot of rain and we're excited and long term we should be concerned with global warming and we're diversifying our techniques both in technology and good farming practices, changing plant materials and all the long-term things to deal with not only the figures of agricultural risk or importantly the long-term effects of global warming and we think we have recipe for it. grapes are mediterranean climate and used to cold winters and hot dry summers so they're apply suited to kind of those warming summer conditions that you noted. we think we're in a good place and want to diversify this and deliver all the great wins you want to drink. on either coast. kelly: i love to hear that and in 2023, i'll lookout for that when i find them on shelves. alex ryan, thank you so much. ceo of duckhorn portfolio.

>> happy holidays. liz: same to you. peloton getting into the refurbished business and investors don't see it as a way to peakeddal higher -- pedal into higher profits. check the market, dow, s s&p 55 and nasdaq. the rest are in the red but we'll be right back, don't go away.

kelly: well, folks, we've got breaking news right now. the house weighs and means excite tee plans to re--- committee plans to release former president trump's tax returns on friday and place intoed the congressional record on friday and the house performance session will occur around 9:00 a.m. eastern and there'll also be a formal announcement from the committee now likely -- actually kind of interesting to see if i pay more or former president trump will pay more and i'll be looking for that. checking trump's spac, digital world acquisition taking trump's social media company and truth social ad public down more than eight% right now on that news. fox business alert, it's a christmas tree on the screen, actually it's not. it is. the dow is in the green up a quarter of a percent and s&p 500 and nasdaq both sinking on the session. the nasdaq is down more than

one%. oh, yeah, over 100 points there and chinese stocks getting a boost on the session avenue the news that starting january 8, beijing will be reopening the border and remove quarantine requirements for arrivals and that move represents a huge shift from the zero covid policy china previously reported and chinese adrs are producing some gains in the final hour of trade. jd.com climbing to the top of the nasdaq rising along with ali baba and the strict covid measures and wynn resorts leading higher right now and mgm resorts gaining on the session. see mgm up about half a percent there and chinese ev maker neo on the other hand not being helped out of the covid news from china and that 10:00 o'clock is crashing and burning after the company cut

delivery guidance for the fourth quarter and neo expected to deliver between 43 and 48,000 vehicles in the fourth quarter and now it's projecting just roughly 39,000 vehicle deliveries and the automaker blaming covid-induced supply chain disru disruptions and bume for peloton down more than 70% this year and today the exercise equipment maker announcing plans to sell refurbished bikes at discounts up to $500 compared to newer models and part of the latest attempt to boost demand and quick check on cryptocurrency platform coin base and hitting a record low during today's session down 8.2% and of course we've seen it; right, the cryptocurrencies themselves take ago bit of a hit with this crypto crash we're seeing and bitcoin and ethereum sinking on the session and cannabis stocks getting smoked

at this hour. they're all down after reports that the fda is planning to make recommendations on how to regulate cbd in food and supplements and now cbd is no non-psychocompound derived from cannabis. time for annual holiday tradition of taking gifts back to the store to get something you really want. our retail panel is here with look at returns and what the sector has in store for the new year, check the big board and the dow still holding onto those small gains, not necessarily a rally here yet but the claman countdown will be right back.

kelly: shoppers clicked add to cart at a higher rate with online sales spiking 10.6% compared to in-store sales gaining 6.8%. let's break it all down with the retail experts, strategic resource group managing director burt flickenger and research e pert hetha herzog and thank you for jill joining -- joining me this holiday week. burt, that 7.6% number and inflation 7.1%, we are seeing people go back to the stores but how much of that is actually people spending more versus prices rising? >> kelly, to your important insight adjusted to inflation retail sales down about one% year-to-date and the big theme right now is record customer

counts in the malls and on the streets but nobody's buying. your coproducer referenced so well, they're showrooming so people last year had big bags, this year there are no big bags and only one out of ten people have bags and it's just one small bag. kelly: my producer is very smart. i had never heard the term showrooming and certainly something i do and go and buy everything online and then return it and that's why i want to bring you in. the national retail federation expects 18% of merchandise sold to be returned so what are you thinking that'll mean for retailer? a high number or low number versus what we normally see? >> i think we tend to see a lot of returns at a higher rate year-over-year meaning the rite will be higher that year than last year. that's mostly because it's so easy to make returns now.

so many digital retailers or retailers with a digital component and small businesses during the height of the pandemic really had to switch their businesses and make things more digitally easy for the consumer and that includes returns according to the data catalyst institute. so you're seeing people that are able to go out, purchase things and maybe showrooming to burt's point but they're buying things online at higher frequency and so easy to make the returns, it's happening at a faster pace. kelly: yeah, i want to follow up on that because it's certainly something that i do; right. i click add to cart and all of a sudden my credit card is ballooned out of control but i can always go and return that. what does that mean for the retailers? we're seeing them struggle with inventories. first it was too lit little andw too much and what does that mean when i'm sending all of my stuff back this week? >> you make an excellent point

and that whole process and i am to blame as well it's called bracketing. we as consumers tend to buy a bunch of stuff and then have it sent to our home and try it on or see if it makes sense in our holmes and then send it all back. it's a phenomenon that happened during the height of the pandemic and under lockdown and retailers made it easy for consumers to do that. but however retailers are adding on fees for the returns. best buy has been doing this for a long time and called a restocking fee, and what was happening is that you're right, with inventories going haywire on the front end, retailers had a hard time catching up on how to process the returns on the back end so the only way that they were able to efficiently do that was start charging consumers. kelly: yeah, i mean, certainly the lighting always seems different in store than when i try it on at home so it's important to get that home lighting. you know, something, hitha, you

said and i want to get your perspective on this, burt, shipping fees are also going up. ups. how is that going to impact customers not only sending things back but also thinking, yeah, okay, i do want to spend in january. i do want to update my spring wardrobe? >> kelly, you're right. shipping fees are going up, this is probably the last year of ubiquitous or close to free delivery and shipping fees reached records that you and your team reported internationally and nationally and my alma mater prince waterhouse coopers reported because of crime, covid, and weather, over 50% of all purchases will be done online to these important points versus in store. because of that, retailers costs are going up and profits are

going down. kelly: yeah, we see people slow back a bit and what space will be immune to this inflation, consumer spending trend? where would you expect consumers to be putting their money? >> kelly, you importantly referenced mastercard spending pulse at the outset and one of the real standouts is record level of overweight and obesity, 67% of women and close thomas tn and larger clothes, largest

shoes. clothes will be the number one non-gift exchange card item led by macys and toys r us, toys will be the number two gift item led by legos. kelly: can't go wrong with a good gift card. then you get to go and pick something out yourself. when hawkeyes are some of -- what are some of the stocks that our viewers should be saying, yeah, i want to keep my iowa hawkeyes on that or i want to -- eye on that or i want to stray away thinking about the santa claus rally heading into the next quarter? >> right, i think the markets have taken a beating over the last couple months and we're seeing record lows on specific stocks and i'm always a fan of app and will it seems to be -- apple and seems to be immune to plies hikes. we're having a lot of issues in china especially at factories, but this is a stock that seems to rebound over and over again. i should disclose i do own apple, then you also see amazon.

amazon again is taking a bit of a beating over the last couple months but it's something that i foresee in 2023 to sustain earnings. we're going to see revenue increase and they're increasing the fleet of their shipmements d they have their own shipment methologies and they're expanding that and trying to get bigger and better and we have the old standard of wal-mart. wal-mart again, you know, announced they're going to have issues going into 2023 with inventory levels, but i think that is also a stock to keep your eye on. kelly: yeah, to your point, amazon with that two-day free shipping. if prices are going to rise, that's going to become more and more attractive. i want to thank you you both for joining us, hitha and burt. burt, i'll forgive you for wearing that bills tie. as a patriot's fan, we can still be friends. >> you have seven championships and we're still looking for a

first one. hoping our new year's gift will be our first championship in 200 years of pro sports. kelly: all right, you guys are doing pretty good. thanks so much both ovyou for joining us today. we really appreciate it. all right, traders on the floor of the new york stock exchange may have had a rough year but today's countdown closer said the parent companies of the exchanges may bring you many happy returns in the new year and he'll tell us why in moments and let's check the big board and we're still holding onto some of those gains and 65 points up and the dow we'll be right back with just 12 minutes left to go in trading.

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first psoriasis, then psoriatic arthritis. even walking was tough. i had to do something. i started cosentyx®. cosentyx can help you move, look, and feel better... by treating the multiple symptoms of psoriatic arthritis. don't use if you're allergic to cosentyx. before starting...get checked for tuberculosis. an increased risk of infections some serious... and the lowered ability to fight them may occur. tell your doctor about an infection or symptoms... or if you've had a vaccine or plan to. tell your doctor if your crohn's disease symptoms... develop or worsen. serious allergic reactions may occur. watch me. hi, i'm katie, i've lost 110 pounds ask your rheumatologist about on golo in just over a year. golo is different than other programs i had been on because i was specifically looking for something that helped with insulin resistance.

i had had conversations with my physician indicating that that was probably an issue that i was facing and making it more difficult for me to sustain weight loss. golo has been more sustainable. i can fit it into family life, i can make meals that the whole family will enjoy. it just works in everyday life as a mom. kelly: americans are welcoming the delay of a new controversial irs rule that with increase taxes of millions of workers. gerri willis joins us with details from the fox news room. so good to see you. what is the story here? >> reporter: good afternoon, to you, kelly. that is collective sigh of relief by taxpayers after the decision by irs delay one year e-commerce platforms like venmo and zelle report sales of 600

bucks by users. some are hit hard by the rule. the kids online retail platform children's clothing say it should be abandoned all together. >> our sales in 2022 came from sellers who were over that 600-dollar threshold. so this really impact as large position of our community. most of whom are parents selling clothes, other essentials that their kids outgrown. >> reporter: congress passed the 600-dollar threshold for form 1099-k reports as part of the american rescue plan act nearly two years ago. prior to that platforms had to report $20,000 or more than 200 transactions in a year. the change expected to bring in $8.4 billion to the federal government over 10 years, that according to the joint committee on taxation. democrats said the move was essential to boosting tax compliance among businesses that underreport but critics said it

could wrongly hit people who use payment apps for things like splitting the cost after meal. the delay comes as the agency is suggest link to clear a backlog of paper tax forms. audit conducted by treasury inspector general found that the agency had yet to process, get this, 9.6 million tax returns. saying the irs will not meet all of its goals by end of 2022 will continue to v a backlog into 2023. irony of the rule democrats said this would target wealthy americans. this rule hits low and middle income americans. 40 to 50 million additional 1099-ks could go out if a permanent mentor solution isn't found. kelly, back to you. >> middle-class americans. i almost fell off my chair that could hurt folks routinely split the check, things like that on venmo. that is certainly me.

i don't know about you. i'm glad this isn't coming right now. >> reporter: they're supposed to do the right thing and only send the income, not a split restaurant check but how do you know what is going to happen the right way? kelly: right, exactly. thanks for so much breaking this down, gerri for us live out of new york. all right. so the closing bell rings in five minutes. markets still mixed. another stock, we have movers here. shares of amc entainment down 7% at this hour while preferred shares are up 8% or so. now the theater chain issued and listed preferred shares, ape in all that can be converted to amc common stock that fueled investor worries over dilution in the value of their holdings. amc is trading at its lowest level since february of 2021. has declined since the company on thursday said it would raise 110 million by issuing ape units

to entara plans to convert amc units into common stock. amc plans a reverse stock split amc shares at one to 10 ratio at a special meeting of common shares and ape units. lending tree shares followed since the lowest since 2013. down roughly 5%. okay, so potential santa claus rally likely won't help the stocks of major exchanges coming off the floor in 2022. the cme is down about 24 year-to-date. the new york stock exchange parent company is also down 24% year-to-date. the nasdaq has fewer losses but still hovering down 12% this year. the exchangeses are down but our "countdown" closer says they're not out for the coming year. timothy chubb, he is the chief investment officer. $4 billion in assets. you're clearly the guy to ask

about this. why are you so hot on the exchangeses? >> just taking a step back, we're fairly bearish on equities right now. we still think a lot of earnings revisions see flow through in 2023. that has been perhaps a little too optimistic. this year has been one where investors favor companies with more immediate cash flows, cyclical businesses, businesses tied to the consumer staples and a lot of those sectors that really not paying up or taking on that duration risk of expecting these cash flows to come back through over five to 10 years. so if you look at the bottom 20 percentile price to cash flow multiples you know that is really been the worst part of the market this year. those with the lowest multiples have been the best part. really the environment we're headed into with a lot of economic concerns, reoccurring revenue is extremely important for us, having visibility, doable into durability into

earnings. they provide wide moat business. they're really the staples of the diversified world. not only consumer staples with customers but also in their product base too. a lot of these businesses 40% of the revenue is reoccurring. it is guy diversified from index subscriptions to asset linked fees. things like paying for you know, etf that has s&p 500 index ultimately that has a service charge associated with it. so at risk assets may rebound next year not only see those fees continue to increase but also the same with the ratings business which is the really predominant part of revenue profile for these companies which benefit from m&a activity and debt issuance. kelly: real quick, viewers wonder where to go if there is no santa claus rally? where do we go in january? what is the one stock you mention that should keep an eye

on? >> i can't talk about individual names unfortunately. medical technology, especially life science interest and consumables is a great place to hide out with theme of reoccurring revenue a lot of these instruments are high ticket items. you might see a headwind next year as businesses hospitals, especially pharma companies tighten their budget a little bit. for those sold these instruments have a on going maintenance. think about the bio farm that end market. they have switching costs that move on. [. [closing bell rings] high production methods -- kelly: timothy thank you so much for joining. hold on to those gains in the dow. "kudlow" is next. ♪