and a certified hearing care professional evaluated my hearing loss and helped me find the right device calibrated to my unique hearing needs. now i enjoy every moment. the quiet ones and the loud ones. make a sound decision. call 1-800 miracle now, and book your free hearing evaluation. lauren: the traditional santa claus rally feels far away with the dow down 203 points and the nasdaq down 110. let's quickly show you generac and so it's soaring and stocks e up 150, 75% from here. that's what it's lost as the worst performer in the s&p 500 this year. kelly o'grady in for liz claman. kelly, good to see you. kelly: you took into consideration lauren. i'm putting out the milk and cookies. i don't know where santa is. lauren: keep pouring.

kelly: right, so good to see you, lauren. hopes of a santa claus rally fading as markets kick off the last hour of trading in the red and we'll have a really good hour here and hopefully move the stocks a bit but southwest is not feeling the love again down almost four% as its holiday flightmare continues with 2,509 flights canceled today and nearly nine% of all u.s. cancellations and deadly winter storm after the free fall and staffing shortages, schedule changes and rebook thousands of customers leaving most southwest customers stranded at airports across the nation at the height of the holiday season. let's go live to mike tobin live at midway airport with the southwest implosion. i can't imagine spending your holiday after all of covid in an airport. what's it like there?

reporter: well, it's pretty rough. what you see behind me is this purgatory of luggage stuck here in baggage claim and some bags were not supposed to be here and a huge mess matching the bags with people and getting them back to their destination and'unitted with their owners and theoners of the bags are -- the owners are stuck in other cities and southwest staff are stuck where they're not supposed to be all compounding the problem. look at flightaware.com, nationwide there's some 2800 flights canceled nationwide. those are just domestic flights. southwest airlines is responsible for 87% of those cancellations right now, 5800 flights. bags are stuck, southwest airline staff is stuck, as well as public and all they want to do is get home. >> our luggage is missing, it's mia. >> i landed alone entirely and hoping to get a refund.

reporter: now some of the blame is pointed at their business model, point to point flights instead of operating out of a hub like other carriers do and resulted to people and airports out of plain and others at southwest executives that neglected to upgrade their communication and logistic software and technology resulting in the meltdown and watch dog group openthebooks.com said southwest re-xiphod $7.2 -- received $7.2 billion in federal subsidy since the pandemic. >> they received a lot and we, the american people, we deserve a lot and after the airline melted down in the holiday christmas season, it's evident we didn't receive the benefits. reporter: the u.s. department of transportation says southwest airlines will be held accountable in terms of ticket refunds and in terms of things like meal and hotel vouchers, and they didn't say they're going to investigate this,

rather examine the facts around the big holiday meltdown. back to you in new york. kelly: mike, i'm sure customers are hoping for that and we'll keep our fingers crossed for them. live in chicago with the report for us. a fox market alert, stocks not hopping aboard santa's sleigh at this hour and i'm doing everything i can. dow, s&p and nasdaq all sinking on the session and s&p 500 and nasdaq heading for the third negative session in the last four and of course the nasdaq looking at two year low and contributing to the losses are declines in energy. eqt at the bottom of the s&p 500, down more than six%. we're also seeing a selloff in tech related names and chinese adrs and pinduoduo and jd buyer all down about four% and today's action adding to the gut wrenching declines and to put it all in perspective, the s&p 500 is seeing its worst decline

since the financial crisis back in 2008. those are pretty stark figures all around on your screen, including for one of the top tech names over the past decade, apple is the worst performer on the dow today, down nearly two% -- almost three% there but that number pales in comparison. another household name feeling the name is tesla. it's up about two% today. but down 68% year to date and by the way, yesterday ark invest cathy woods picked up 25,000 shares of tesla at its lows and see if that pays off. listen, not all is lost. our traders are eyeing stocks that could buck this market down trend and head for a winning 2023. let's get right to the floor show. joining me now is great hill capital chairman tom hayes and

another on the way. tom, i want to start with you. thanks for joining us. everyone is wondering about the santa claus rally and it's not looking good yet. in your opinion, couldn't we see a turn around and could santa come to wall street still? >> it's possible, kelly, and great to be with you. we have till the second trading session of january. what you saw is an abnormal amount of tax laws and people trying to harvest the tax assets before year end. if you look since world war ii, the market has been down four% or more in december, just four times the average return was up 20% and we don't know that's necessarily going to happen moving forward but because there's a tough december doesn't mean there's a bad 2023 and as a matter of fact we think even if the economy gets slower, the stock market can do better and the stock market bottoms historically se six to 12 months

before earnings bottom. kelly: we also have teddy weisburg that sad down to tell us -- sat down to tell us what stocks to go after. thanks for being here. focusing on the s&p 500 and at the beginning of the year, equity analysts were expecting that to end around 5200, over 5200 this year. what are you now thinking we might see for '23 when it comes to s&p 500? >> last year at this time actually on december 31st, 2021, the marketses finished right on top. basically we didn't see a whole lot of daylight for the balance of the year. in fact the daylight turned to clouds and a lot of clouds. now it's almost complete opposite of where we were last year and not quite at the lows of the year but clearly a lot of sectors under a tremendous amount of pressure and a lot of names are still making new lows. but a lot has changed in 12

months. the big change of course is the fed. the fed continues to be the 800-pound gorilla. it's a direction of interest rates, everybody chooses to ignore the fed. quite frankly if you ignore the fed, you proceed at your own risk because the fed is still the 800-pound gorilla in the room in my opinion and they have basically said interest rates will work higher, make not as fast but higher. everybody's looking for the pause, wishful thinking is never a good strategy and the reality is till something changes with the fed and the direction of interest rates, the markets in my opinion will continue to be troublesome. not going to be the end of the world because we know what the problem is, and we're not even focusing on the fed but until that changes, i think the markets are going to be pretty tricky going forward, perhaps the second half of the year will get better. unfortunately it'll ring a bell and not going to tell us when

the water is okay to jump back into. there's a lot of interesting stocks getting to the end of the year. the problem is i don't think the downside is completely out of the picture. kelly: okay, you bring up stocks, you bring up gems. i want to bring you and tom because i think we're all wondering, okay, where should we be putting our money right now. our viewers want to know that and i want to bring up one you brought up before and you were on the show in june and told us about cooper standard, it's an auto supplier. so why are you bullish on that? >> yeah, thanks, kelly. yes, on june 7 i came on, cooper standards up 25% even though the market's been down. they're the number one in sealing systems, globally think windows and doors and no. 2 in fuel and brake delivery and no. 3 in fluid transfer. they announced recently they're going to complete a refinancing on january 18th. it's fully backstopped by jp morgan and we think that's the

first catalyst and think this stock can be a double in 2023, a double plus and multi-bagger over years. why do we think that? this happens every recession when they trough, we have two years of backlog for new cars. the used cars will do poorly in 2023 and new cars there's two years of pent up demand and we think over the next couple years, ihs thinks that industry volumes get back to pre-pandemic levels and company earned $seven a share at its peak based on the volumes and only trading at $7.50 a share right now and put a ten or 20 times multiple traded in the past looking out to 2023, 2024 and 2025, this can have meaningful upside moving forward. kelly: i want to push you in a follow up and saying new car demand pent up for two-year-olds and entering a time where folks are tightening their belts and not wanting to spend as much and might be losing their jobs. do you really think we're going to see a boom of folks going out

and buying that new car, boying that new tesla or whatever brand they're looking at? >> yeah, kelly, we don't need a boom but a normalization and seeing the unemployment rate ticking up to 4.5, 4.75% and that's below historic means and average age of the car is 13.1 years. whether they want to or not, those cars need to be replaced and look al infrastructure package that hasn't hit the market yet and amount of f150 trucks on the road and we think things will normalize moving forward over the next year or two years and operating leverage in this business if they can get to $3.50, $four a share over the next couple years and ten times multiple, there's a high level return moving forward so the key is they took the number one risk off the table, which was the refinancing risk when announcing that tank action and that's now -- transaction and that's now backstopped and will be completed in january and will be back on in in a few months with another gain in the stock and

think it has a bright future. kelly: we'll be looking at cooper standard. teddy, what are your gems? is cash still king or are there some stocks that, you know, i and our viewers should be putting our money into? >> first of all, it's not all bad news. for seniors, people like myself, retired folks, savers, this is a terrific environment because you can get anywhere from 3.5 to four% on your money whether it's treasuries or money market funds without any risk so you don't have to basically deal with the stock market. so for some folks, what the current environment brings is very good news. on the other hand the best trade still as far as i'm concerned, i mean, i say cash is king is the three months treasury. because it is restless, almost four-point a five% on your money and why stick your neck out when there so many unknowning out there. but if -- unknowns out there and if you've twisted my arm and

said, teddy, that's fine but i want to buy stocks and the first sector i'd look at would be the insurance stocks because clearly they have huge reserves and they benefit from an environment of higher interest rates. second would be energy stocks because i think energy is fine and i think it's going to work higher. but most of all what we're doing this time of the year and this is more for a trader and not for an investor is every year at this time of year, we tend to look through the -- what would you -- the lumps of coal if you will, stocks making new lows with fundamentals are important and we look for stocks that are trading at their loys and using their -- lows and usually there there for a reason and multiyear lows and very interesting name there is and such as metatropics and tyson -- med tonics and tyson -- medtronics and tyson foods and this year the markets were so entad there's a lot of stocks to choose from. it's a much better strategy with

a good market like you ended 2021 but those stocks are not doing well and are easier to find. kelly: all right, lumps of coal and we'll find the diamonds and i was looking and almost 4.5% and that's a good point. thank you, teddy weisburg and tom hayes, we appreciate you joining us. while southwest struggles with real life planes and passengers, one company is using virtual reality to solve a major problem in the aviation industry. we'll talk to dynamic investor and board member sky dayton on how his company is trying to put the pilot shortage to an end. now the big board, the dow is now down 300 points, almost a percentage. we've got, you know, lots ahead of us here. the c "claman countdown" is comg right back. ♪

kelly: southwest holiday meltdown taking center stage but a bigger problem facing the industry, the airline industry there just aren't enough pilots and boeing estimates commercial aviation estimate they'll need 600,000 pilots over the next few years and 30,000 are needed annually to meet the demands in the sky and swift startup loft dynamics and tackling that shortage with the virtual reality simulation technology. the loft is looking to take helicopter similarration tech to new lights with airports and ex-planned in the u.s. market. here in a fox business exclusive is lock dynamic investor sky

dayton. thanks for joining us today. >> kelly, great to be here. kelly: i heard you're a jet rated pilot and i find that very impressive, but you know what it's like to be in the planes. talk me through how this virtual realities tech actually sim simulates that. >> yeah, great question. there's a couple way to train or fly airports and one is to fly the airport itself and expensive and very difficult and the other was in a simulator. so i have three jet ratings and to get those, i went and sat in a giant apparatus that sort of fits in a three-story building and costs $ten to $20 million and by training in that simulator, i was able to get in the actual airport and go fly. simulators work and it's how most pilots are trained today. the problem is as i mention they're incredibly expensive and

as a result there aren't enough of them. so i found this company in zurich, switzerland with a team that was the first to ever take virtual reality technology and combine with a pull motion platform and moves with six degrees of motion and get it certified by a major regulator and faa of europe, yasa, and as a result we have state of the art training that's equivalent to the aircraft and much less expin sieve, tenth to the twelfth of cost in a form factor that can be everywhere the pilots need to train. kelly: a tenth to a tw twentietf the cost.

these simulators are in the big cockpitt and takes up a bunch of room and is there tradeoffs and you know it's more cost effective and i love to hear a bit about the comparison. >> sure, sure. so the traditional simulators use the giant hydraulic act way torrs like a -- actuators and it's driven by a data senter and takes an army -- center and takes an army of technicians to run these things and replaced with virtual reality goggles on a moving platform where the physical controls are all present so the pilot can have all the same haptic feedback and force control and motion and everything to develop muscle memory and everything. but the visual is much better and actually much more realistic than looking through a piece of glass in a traditional simulator

essentially at a tv screen. thinking about helicopter training for example and you want to look in all directions including down and up and behind you. we can do that here debtor than a traditional simulator. kelly: yeah, you want to feel what it's like in a cockpit and you raised $20 million but the viewers are always interested to know what they can invest in. any chance of looking at ipoing in the future? >> you know, the team is focused on moving initially from helicopters now. we have the first models are for the two most popular helicopters in the world including air bus, turban helicopter and robinson helicopter and into fixed wing, which is airplanes this coming year. and really just heads down

building. so the background of the problem that you mentioned at the top of the segment around the need for pilots, you know, it's just -- we're not going to solve it with traditional technology. we need something different and we need innovation. and what this will mean is we'll anticipate the growth and need for aircraft, which is increasing and increasing but also if the future air taxis and future flight modalities that just mean more and more and more pilots. kelly: right. of course you've got the shortage but everything else that we're experiencing right now but i do have to say, sky, thank you so much for joining us. when you do ipo, make sure you come back on on the claman countdown. we'd love to break it in a fox business exclusive but appreciate your time today. all right, folks, the nation's lawmakers making yet another move to thwart the tiktok threat

and hillary vaughn is on capitol hill to tell us what's coming and happening next. dow, nasdaq all down a percent or more and we've got 36 minutes left in trading, we're coming right back. don't go away.

kelly: the house of representatives banned tiktok from all lawmakers and staffers phone and the house is the laterrest to approve such a measure. just a few weeks ago, the senate passed legislation banning this social media app from u.s. government devices and many states have taken similar moves to ban tiktok from government devices. for more on the tiktok ban and what could come next, hillary vaughn joining us live now from capitol hill. hillary, what's going on? reporter: hi, kelly. for now members of congress and their staff are banned from u using tic tock on their work -- tiktok on work phones but not personal devices and only applies to government smart phones but some lawmakers want to do more to get tiktok off all u.s. smart phones. >> they're using all kinds of technology to follow and trace us, bio-metrics and everything they can see on our phone and where we search, everything. it's really important that we keep the chinese communist party

in check and keep and prevent them from continuing to reduce the balance at a mass rate. reporter: a tiktok spokesperson pushing back against the ban saying "it's troubling that rather than encouraging the administration to conclude its review of tiktok, some members of congress decided to push for politically motivated bans that will do nothing to advance the national security of the united states". tiktok is trying to convince the united states they're not a national security risk and trying to get the green light for the app to stay live here in the u.s. while still being under chinese ownership as part of the beijing-based company bytedance. the communist party remains hands off u.s. use herb day that and -- user data and not all lawmakers are convinced. >> any business in bed with the chinese communist party take a real long hard look at what they're trying to do and they're doing it for decades whether

it's ip, stealing from american companies, whether they're using apps to spy on american citizens. reporter: senator marco rubio along with others propose add nationwide ban on tiktok for all americans but, kelly, with about a third of mens on tiktok using it every day, something like that would get a lot of blow back. kelly. kelly: for sure, hillary. i can imagine how upset the gen zers would be at that. live on capitol hill, thank you so much. a fox business alert. all in the red right now, dow, s&p 500, nasdaq, almost over 1.25%. so let's get to some stocks here. ark invest founder and ceo cathy wood not out of the woods yet. the ark innovation is woods' flagship fund and has key holdings in stocks like tesla, which we mentioned earlier and roku but it's erased all of the pandemic-fueled gains and what's

repeatedly defended the funds performance saying she has a five-year outlook for returns but looking at a five year chart of ark, it does not instill much confidence in the investment manager. ark is down 20% over a five year span and down nearly 70% this year alone, which notably is more than double the declines of the nasdaq. ark is on pace to finish near the bottom of all u.s. mutual funds in 2022. today ark adding to the declines slightly down a fraction of a percent there. shares of amc entertainment also sliding on the session, down over four% right now. this following request by adam aaron to the board to freeze stock pay in 2023 and aaron defeating i don't want more when the shareholders are hurting and the movie theater chain calling on other executives to forego raises to their cash salaries and in 2021, adam aaron received

compensation worth $18.9 million. it was a b beneficiary of meme stock media and in the last month,generac get ago refuel at this hour and they initiated coverage on the stock with a buy rating and price target of $160 and generac shares trading at $96 per share and do a quick check on amazon at this hour as well. that's down a little over a percent. this is interesting, the ecommerce giant is mulling a stand alone app for the sports content, that remains one of the biggest attractions for live viewing of course and amazon owns the rights to stream games including nfl's thursday night football but this one is really amping up the presence in the space. this report also comes after alphabet's youtube reach add deal with the nfl to exclusively stream the nfl sunday tickets package of games and alphabet

beating out amazon and apple for the moves and rights. the move is dramatically with comments from netflix co-ceo saying they don't see a path to profit in buying sports right and more to come in the streaming wars. up next, new details on what ftx founder sam bankman-fried bought with hundreds of millions of misappropriated funds. crypto pioneer brock pierce here next to assess the damage down to the entire crypto verse and the fox business exclusive. let's check the big board, the dow down 0.9% over 300 points and we have just 25 minutes left in trading here. don't go away. the "claman countdown" will be right back.

♪ choosing miracle-ear was a great decision. like when i decided to host family movie nights. miracle-ear made it easy. i just booked an appointment and a certified hearing care professional evaluated my hearing loss and helped me find the right device calibrated to my unique hearing needs. now i enjoy every moment. the quiet ones and the loud ones. make a sound decision. call 1-800 miracle now,

and book your free hearing evaluation. ♪you fill up my senses kelly: this story has certainly been like a movie from the very

start and now ftx customers are suing the crypto exchange in a bid to claim ownership in the digital asset holdings and more than a million customers alleges the now bankrupt ftx failed to segregate customer accounts and those customers should be repaid before the other creditors and sam bankman-fried faces allegations of misappropriating customer money for risky bets by alameda research and one of them includes a $546 million loan from alameda that bankman-fried used to buy his stake in fintech company robinhood and it's a curious turn given his claim that he knew nothing of the company he founded. ftx casting a dark shadow over all cryptocurrency. we have the bitcoin foundation chairman and early investor in bitcoin brock pierce.

brock, so good to have you with me today. we spoke right at the very beginning that this was all going down. i got your take and what has the ftx fallout and public down fall sbf had on the price of bitcoin and other crypto currencies? >> this has been the biggest scandal and the biggest event in our industry's history. the impact though is not as severe as it would have been if not for the other events that happened during the year. blockfi, three arrows, terra luna and the market had taken a pretty heavy beating before this occurred and it took us longer and it's been extraordinary and you come to a couple of things there. one, sam bankman-fried has already been alameda and something like 90% of the firm and taken out loans to buy

things and houses and otherwise he got out on bail. so he decided to change his fighting the extradition in the bahamas and be extradited and he said i only have $100,000 to my name. i don't even know how i'll be able to pay my lawyers and he somehow was able to make a $250 million bail. the largest bail in u.s. history and the news that came out today is that we should expect to see a plea agreement. he's going to likely be pleading guilty to some set of charges, probably similar to ceo of alameda and the cofounders in the next week or so and none of what he's told us makes any sense. i think we're all pretty skeptical.of things that happened leading up to ftx and we've seen a number of other bankrupt filings and

there's had bitcoin argo with a $100 million bailout and looking towards 2023, do you expect to see more of that happening? >> i think there's still some shoes to drop but we've likely seen the majority of it, probably the vast majority of it already happened and these are mostly coming from upstarts, organizations that hadn't survive what had we would call a crypto winter or a market correction. we've been through the cycles repeatedly and so these businesses either were overlevered borrowing from each other and that's where we're seeing this. it's really nothing to do with crypto. it's not a de-centralized finance issue, it's a centralized finance issue and something we've seen time and time again when companies take on too much leverage, not managing counter party risks, not marking the market correctly and not letting governance

or risk management in place and this is not a fundamental problem with cryptocurrency or block chain and it's designed to mitigate these sorts of events from happening and we're seeing financial institutions like we've seen for hundreds of years taking on too much risk and then the customers or the little people being the ones that are, you know, taking on the responsibility but without any government agency to step in and bail it out like we saw in 2008 or 2009. this is risks taken by management and little people getting hurt. kelly: sure, i want to get into the regulation pete but quickly, course correction piece and some saying bitcoin could drop over another 50% and it was on the screen there and hovering about 16,500. what are your -- what's your perspective? >> it's certainly possible.

i don't think it's likely. i think that right now the big news we're seeing is about dcg, genesis and gray scale. the forbes list just came out with their new numbers showing how the top crypto billionaires lost $132 billion of net worth, one of the biggest of which was barry silver and marked his net worth at zero and that's another major event. if that implodes for some reasn or market calls hits the strategies and michael sailor bought another $45 million worth of bitcoin in the last 24 hours but if another major organization were to implode or file for bankruptcy, i think we'd probably see the market come down. the type of event that would need to happen for bitcoin to drop by another 50% in the short term would be a black swan event and i don't think any of us are forecasting that and none of us saw ftx coming and it would take

another major event that we see on the horizon and not like we're out there looming. kelly. sure, none of the investors or celebrities saw ftx coming and we'll get into the regulation piece next time and thank you for joining us today, brock. we appreciate your insight. china's relaxing of zero covid policy was supposed to help the global economy but with hospitalling filling up, there may be short term pain for the oil markets and phil flynn is jumping in front of the camera to tell us how he thinks it will all play out for black gold. check the big board and the dow over a percent and maybe all red is just notes, maybe. all right with just 13 minutes left in trading, we'll be right back.

. .

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: we've got breaking news right now. the cdc has announced starting january 5th, passengers traveling from china to the u.s. will be required to present a negative covid-19 test before departure. the cdc reimplementing covid test for china travelers, first time since june.

they lifted quarantine and testing requirements for inbound passengers after it eased domestic covid restrictions this month. that resulted in a wave of infections which could slow down china's demand recovery, causing oil prices to slip. crude oil is down a little over a percent in after-hours trading t was down significantly more earlier. joining me price futures group phil flynn. phil, what does the covid out look in china mean for oil's trajectory as we to into 2023. >> oil got a boost when they announced dropping restrictions coming into their country. other countries like the united states and jop are now making sure people coming from china test negative. the big picture is china made a

commitment to reopen their economy. it is not going to be pretty. other countries gone through this when they lifted covid restrictions increased infections. once they get through that my expectations we'll see a big surge in demand coming out of china and the world will have a hard time meeting that demand. kelly: you brought up that point as china goes through the growing pains of reopening and easing those restrictions, once they move past that, there will be that demand. what can we expect the price of oil and that trickles down as we fight inflation in this country? >> i think it will be an upward trajectory. to see oil at triple digits next year. don't be surprised to see that over $100 a barrel. tough hook at the balance between the fight against inflation and trying to keep the economy from a recession. there is absolutely no doubt that china's reopening will put

new inflationary fears back into the marketplace. that could cause the federal reserve to be more aggressive that could slow demand. at the same time i don't think you will put the chinese demand growth back in the bottle. it is going to be coming. we better be prepared for it. if we're not, you're going to see prices go up a lot higher. kelly: sure. so i mean over$100 a barrel, that gave us a heart palpitations previously when we saw it. that also meant going to the pump there was so much pain. i saw a new report by gas buddy we could be looking at $4 a gallon again? do you expect prices to rise that high next year? >> i do. i think gas buddy is right on. they're looking what we look at. we're seeing demand destruction caused by rising interest rates will not be nearly as bad as people think. i also think you look at the u.s. refining sector, right? the u.s. refining sector has done an amazing job meeting

demand with less refineries. i don't know that they can keep that up f they're doing that 100% much the time they're bound to fall behind. that will cause prices to go up. kelly: absolutely. certainly something we don't want to see. i'm normally out in los angeles. i normally deal with $7 a gallon of gas. don't want to see anymore of that. thank you so much for joining us, phil. we always appreciate having you on. >> you bet. i send you cheap chicago barrels. we're a couple dollars cheaper. kelly: send that on. folks the closing bell rings in just over four minutes. we're all in the red, all down over a percent. the nasdaq performing the worst right now. but we've got new data from the national association of realtors showing that pending home sales index falling 4% in november, discounting the pandemic that is a record low. whether the fed hiking up interest rates or soaring inflation weighing on americans wallets the entire housing market is suffering of course.

but today's "countdown" closer says one material stock could help build up your portfolio. vance howard, ceo and portfolio manager of howard capital management. thanks so much for coming on. so you're saying that boise cascade company, that is one of your stock picks, why boise? >> the company, they supply building materials and you know right now i'm rehabing an older building myself t is taking us three times as long because of supply chain issues. like your last guest said a minute ago, china will open back up even with the cdc coming out what they're finding with, building materials readily available, speeding up process of new construction or rehabbing a old building we see boise cascade a pretty good buy for 2023. fundamentals are good. good stock to go into 2023 with, with the nasty market we had in 2022. kelly: how much is the housing

market in general affecting stocks like boise? i'm a potential homebuyer here. i hit the brakes on everything. how do you see that? >> kelly in the overmarket we're in a downtrend. two things you don't want to fight, the fed and a downtrend. if you have to fight a negative market it is going to be hard on every stock out there. like your last guest was talking about oiling we're bullish on west texas crude will go over 100 bucks a barrel in 2023. there is lot of reasons for that. you don't want to fight the fed, don't fight the trend. the trend is down. no matter your stocks here, pick your shots. hold a lot of cash. get your boise cascade are strong investments going out forward out of the bear market we're currently in. kelly: i was talking with phil like you heard. it made me think about the energy stocks will they be good

play complex year. you like chevron, why? >> i do like chevron but the like the energy sector as a while, kelly. i think energy sector that may be only sector that closes in the black this year. everything else will be in the red. that is interesting, if you think about it. very few times we don't have one more sector closes up in a year. one of the good parts about this bear market, kelly, seldom you have two negative years in a row. only happened four times. 29, once in the '40s, once in the '50s and 2002. the odds of market being higher next year are much greater than people anticipate. we're bullish going into 2023 we're not bullish at this point in time the first quarter i think will be very, very rough. it creates a lot of opportunities. you talks about energy stocks. they continue to go up. play them by chevron, play them by exxon or play them by wonderful xle, i buy the whole basket of energy. the trend is up and goes much higher in 2023 definitely for

sure. kelly: definitely we should keep our eyes on energy after the impressive performance this year. thank you so much for joining us, varnes. we appreciate your insight. we'll keep an eye on bows see and chevron. major averages close lower. dow, s&p 500, end at their lowest point since november 9th. we've got david asman coming up next on "kudlow" but let's just look at the markets. we've got the dow down a percent. s&p 5001.25. [closing bell rings] nasdaq down 1.3. that is the closing bell. i'm kelly o'grady in for liz claman. i will be back tomorrow. that will do it for the "claman countdown." "kudlow" is next. ♪. david: hello, folks. and welcome to a special edition of "kudlow." i'm david asman in for larry kudlow. well the human cost of last week's brutal winter storm keeps