lauren: it is the next to last trading day of the year, and it's a good one. all is 11 sectors up. the s&p up 67 points, the nasdaq up 2.5% and the dow adding 1.1%. that's it for mt. d for "making money." >> i'm going to try and keep the trend going that you've had here. it's a lot of pressure, but we'll give it a go. i'm kelly o'grady in for liz

claman today. no grinch on wall street today as the major averages try to squeak out any semblance of that famed santa claus rally. meanwhile, the. crypto market is getting a small boost. bitcoin, etherium, you know, all up about a practice of a percentage there. reuters is reporting a major development in the ftx scandal. the founder of the now-bankrupt crypto exchange, sam bankman fried, is expected to enter a plea next week, the criminal charge is he defrauded investors. he faces two counts of wire fraud, six counts of conspiracy. if he's convicted on all counts, he faces a maximum if sentence of 115 years behind bars. that's a pretty long time, right? and, of course, the damage is big. the exchange lost about $8 billion in customer money, filed for chapter 11 bankruptcy back on november 11th. what we expect?

if -- what can we expectsome joining me now is forensic accounting and expert witness bruce davinsky. you have seen so many of these in your illustrious career. i want to start with this, you are the lead witness for the koj in the madoff case. this case came together very quickly, especially when they didn't have the records that, you know, madoff had that folks were able to go through. so can you talk me through how prosecutors are building this case, were able to build this case? >> sure. kelly, great to be with you today. so one of the things that allow the prosecutors to build this case so quickly was the two co-conspirators that have already pled guilty, caroline ellison and gary wang. when you have two co-conspirators hard cooperating with the government -- that are cooperating with the government, that's a big factor for the prosecutors to get a jump-start on what they need to do. there's all kinds of information

that they'll gather and have already been gathering from those co-conspirators to be used existence bankman-fried in the -- against bankman-fried in the criminal case can. and there's a lot of things those two the people can lead them too. and i'm sure they're talking to other employees as well. and there's a lot of information that a those prosecutors gain by dealing with people who come in early. kelly: walk me through what some of those things were. i'm imagining slack messages, records, things like that. if you were to go to trial, it would be pretty damning, right? >> sure. so they're going to be looking at documents like bank statements, they're gong to be looking at slack messages -- going to be looking at slack messages, telegram messages. a lot of those messages are encrypted, but if one of the co-conspirator toes and cooperators gives the government their the cell phone, they can get into all of those encrypted messages and see what they were talking about. that a goes directly to the intent of bankman-fried in what he was trying to do in perpetrating the fraud. that's a huge advantage that the

government has in a case like this to try to piece together what went on. they'll take those the messages and piece those against bank statements, against loan documents. they'll look at computer programs. there were allegedly the wang doctored-up computer programs to allow alameda to have negative balances in their accounts when they were so-called borrowing from f, x customers. all of that is triangulated from witness testimony from the two co-conspirators who have agreed to testify against bankman-fried if he goes to trial. kelly: right. and there is this reported plea that we're hearing that that he would want to avoid a trial. i want to play a sound bite from some of his previous interviews to kind of give a sense if this were going to trial, what he might say. >> i really deeply wish that i had taken, like, a lot more responsibility for understanding what the detail as were of what was going on there. i knew that legal was involved,

i knew that other groups at the company were involved, that that there were -- drafted up. i made a lot of mistakes, things i would give anything to be able to do over again. i didn't ever try to commit fraud on anyone. i was kind about the prospects of ftx a month ago. i also, frankly, made a mistake that i feel pretty embarrassed to have madement -- made. kelly: that's been his defense thus far, pretty hard to believe from an mit grad that who got all of these investors to invest billions. is it smart to enter a plea? if. >> i think it is. he never should have gone on tv and done those interviews. you can look at his body language, his shifty eyes, all of those things that the prosecution would use all of this and play in front of a jury even if he decided not to take the stand. he's put it out, it's public record, so i think it's very damning. i do think if the reports are

accurate today that just came out that he'll be entering a plea, i think that's probably a wise move for him. i'm sure his criminal defense lawyers are working with him and advising him. you never know, people get into the courtroom, and you think they're going to plead guilty and at the last minute they decide to go to trial. i think that would be a mistake if for him. i think there's a plethora of information to be used against him in a criminal trial. they'll bring somebody like myself in there to put it all together and make it in front of a jury, put all the pieces to the puzzle together. kelly: and real quick before we go, i mean, of course this is about crypto. it's hard to get lost in it, but this is fraud, and there were customers who lost so much money. are they ever going to get their money back, do you think? >> sadly, i don't think they're going to get their money back. there was a lot of money spent on all kinds of businesses that bankman-fried invested in. it was kind of a crypto e so cosystem that he was building, many of those wizs have no concern businesses have no money. unlike the madoff case where the

trustee did a fabulous job bringing money back for the victims, and it took a long time, i don't think you're going to see money for the individual victims, the bank victims or even some of the institutional investors in this case, unfortunately. kelly: yeah. and as we've discussed before, bruce, folks in the madoff case, creditors are still waiting for that money to be clawed back. appreciate you breaking it down for us, bruce. good to see you and thank yous -- thanks so much for joining us. >> happy new year to you. kelly: you too. southwest feeling a little bit of the luv from investors today, up 1.2% despite the holiday flightmare continuing with another 2,if 62 -- 2,362 flights canceled. southwest airlines told employees it stabilized the meltdown and will proceed if with normal operations friday by reopening ticket sales and resuming regular flights. let's go live to mike tobin at chicago's midway airport. so, mike, what are lawmakers saying about southwest's holiday

flightmare? >> reporter: well, they're saying they haven't been able to get all the moving parts back in place, and executives are promising now they can close this ugly chapter in aviation history promising a return to normal operations tomorrow with minimal flight disruptions. plenty the of flight disruptionsed told, 2400, almost 2500 flight cancellations across aviation in the u.s. today. but most of hose belong to southwest -- those belong to southwest airline. that drops dramatically with the promise of only 39 flight cancellations tomorrow. but still the people traveling southwest, they've had must have. enough. >> i mean, i'm on medicine -- [inaudible] my medicine, my charger, my -- everything, my perfume, all my personal stuff was in the suitcase. and and some presents too for christmas. >> so my concern is really one of my bags is all christmas gifts. i just really want that back. >> it's been a nightmare, i

mean, it really has been. no doubt about it. >> reporter: the ugliness isn't all over.. -- if you look at our live picture, this is the line to get into southwest's baggage services, and these are the poor people trying to find their bag. if you look out at normal baggage claim, this is the area that was cluttered with all of those bags that didn't have a home yesterday. it doesn't mean these things have gone back to their owners, a lot of them have been moved to an airport hangar here at midway airport. you've got a lot of people who, of course, want their stuff. this ugly chapter is still bumpy, but southwest executives are promising they're getting things back on schedule. kelliesome. kelly: yeah, i'm sure all the customers are hoping that. think about that, you can't even find your bag. thanks so much, mike, live for us in chicago at midway airport. all right, so could santa claus finally be making a magical stop on wall street? let's hope. our floor show traders here next on today's rally and if it's here to stay. now let's check the big

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kelly: maybe hearing some hooves. the bulls are making an i appearance as stocks rally in the second to last trading day of 2022. the dow is up 236 -- 362 points, the s&p 500 up 1.8%. the nasdaq, #.6%. everything's in the green, that's what we love to see. the nasdaq bouncing off its lowest levels since july 2020, and the russell 2000 up 42 points, 2.5% there. so today's jobless claims data, that's easing the rate hike fears and fueling the

snapback from yesterday's 1% decline. that's a lot of what you see fueling that green on the screen. initial jobless claims rose by 9,000 to 225,000 last week, that was in line with estimates, and the number of workers claiming unemployment benefits jumped to its highest since february. and, of course, you know, it's always a little bit weird, but bad economic news right now means good news for the market because this is a bit of what the fed is looking for. diving into some of the specific movers, you've got disney and apple leading the dow higher. disney up 3.4%, and they're followed by microsoft, intel and salesforce. we talked about whip saw action, just yesterday disney and apple were the biggest laggards on the index. disney is having its worst year since 1974 despite the fact that "avatar" did just cross the $1 billion mark. apple is up, oh, let's see, 3.2 -- actually, 3% or so today

after closing at a one-and-a-half year low are. netflix is also having a rather noteworthy session. of course, they've had a number of series and movies, a lot of viewing this holiday season for them. they're up about 5% today after falling in yesterday's session. how can investors capitalize on all of these volatile moves? let's get right to the floor show. joining me now are traders scott fullman and dutch can -- dutch masters. gentlemen, thank you so much for joining me. green lighting up the screen right now, which we love to see. scott, i want to start with you. were seeing thattal rally today, but this is going to be the first time in, likely, you know, four years that these benchmarks are going to be ending the year on the down the side. we saw the jobs data come outed today, that does raise some of the rate -- ease system of the rate hike fears. what are some of the indicators you're looking for in the next quarter? >> sure. thanks, kelly. we're looking at a number of

things. first of all, the fact is that the market has been beaten up pretty good and, you know, year to date the s&p's still down close to 20%, the dow is down 8.5%, nasdaq's down 26.5%. and there's a lot of issues out there that have been beaten up. but we're watching, we want to see exactly how businesses are going to operate going into the new year with the fed still tightening. and i'll tell you, the fact is that they're probably going to overtighten because that's usually what they do. but usually we'll see stocks pick up when we hi that it's going to be a -- think that it's going to be the a rough first and possibly second quarter before we actually see things start to turn higher into the second half of the year. and i know dutch, i think he agrees with the same thing. but the fact is, is that when we're looking at the indicators, we're not just looking at the unemployment numbers, we're looking at inflation nation. obviously, that's a major, major concern still with the fed if out there.

and we're also looking to see how gdp is going to come in for both the fourth quarter and the first quarter of next year. that's going to tell a lot. we think also retail sales, something has to be watched. we're not sure that this was such a great holiday shopping season. cel yeah, sure. though i suppose if you look at my credit card, it would look like it was a great holiday shopping season. [laughter] to your point, there's a number of indicators beyond jobs. of course, china also will play a role as they come out of this covid lockdown. dutch, i want to get to you with specifically about the s&p 500, because we've seen this all over the place this year. i mean, back a couple weeks ago, mid december, had a bear market rally, hit about 4100. do you feel like we're finally starting to normalize though in the numbers that we're seeing now? and what might you expect it to drop to come next quarter? >> right. thanks, kelly. yeah, we've been short off and on but mostly on all year.

so we had a pretty good year from a performance standpoint. the s&p has been in a clear downward-sloping channel. we get these really wicked rips to the upside, you know, in these bear market rallies. they can be quite violent, and they can happen over the course of just one day like today and the last one that we had was a one-day rip to the upside. i don't know if we're going to get any follow through here, you know, tomorrow and into next week. but i completely agree with my compatriot here, my comrade on wall street. i think we're going to have a really bad q1. we're just now beginning to see, you know, the index dive back down into the channel today, today is a one-day rip, i think, in my opinion. if i was worried about my short positions which, you know, we're very short, i wouldn't be booking a massage over at canyon

ranch spa today which i'm going to go to after this. [laughter] i'd be on the screen. kelly: [inaudible] [laughter] >> yes. i know. prix plug, right? kelly: yeah, yeah. so -- >> i think we're going of to have a s&p off another 15%. the qs are going to go off another 20. we're going to see some accelerated selling. we've already begun to see it because the nasdaq was off, like, 10% or something in the month of december can alone. that's a horrible year, and it happened in just one month. and so i think the acceleration and panic selling is just about to start here. kelly: yeah. well, i want to dive into some specific sectors though because as our viewers think about where to put their money, scott, you're hot on the consumer staples sector, specifically p&g. tell me more about that. >> so from a technical and macro

standpoint, when you look at what's happening in the marketplace, you want to be defensive. and one of the sectors that's in that defensive grouping is the consumer staples. and what we've been doing is searching out stocks in that grouping that are outperforming, you know, that are leading. and procter & gamble is one of them. we're looking right now, we have a first measure target on it of $17 # 7 which gives it about -- 177 which gives it about 16% upside from here. and in addition to that, it has a yield of 2.4%, so investors will also get a little bit of buffering as well as a little bit of aid from the dividends paid by p&g. kelly: yeah, just looking at it, it's down 6.3% percent year, that's certainly one to watch. now, dutch, your performance with your portfolio, 321% on the upside year to date. that's very impressive. sounds like you've been doing a

lot of short selling. tell us what you're thinking about for this next quarter. i hear rumors that you're short on real estate. >> yeah. so i think that a lot of the short money, the easy money on the short side's kind of been made, okay? and we rarely have a year like this where you can short consistently and make a lot of money. this is a very rare thing. however, we don't believe that the real estate market has properly adjusted to the downside given the new rate regime that we're under. the cap -- -- the cap rates haven't come in enough. we're just now beginning to see all the data come in over the last couple of months in the real estate showing that the home sales have basically gone to a freezing stop. we have a lot of guys that we are in ouch with in the home building -- in touch with in the home building area, and they had goals of selling 25 homes in x, y,, and market or they -- and z market and they sold zero or

just a few. it's over there, okay? we use an inverse etf, but we also go short correctly to home builders like lgih, lgi homes, and the reason is we know hgi markets to the first-time home buyer and offers all kinds of no money down incentives. and with this new rate regime out here, none of their clients are going to qualify, in our opinion. so we've been shorting that from about 102, it's down around 93. we shorted slg at about 39, or it's down around 33, 32. we covered that slg short after just a few weeks down to 32.25. but i think the real estate market has a lot further to go down. we think the dow and the s&p, our target's about 32 so -- 3210, so what are we, a good 4-500 points away, right? if. kelly: right. it's a good point about the first-time home buyers.

we've got housing data later in the show. gentlemen, thank you both, we appreciate you being here with us today. >> thank you, kelly. kelly: okay. so next up, used cars sat on the lot as prices skyrocketed this year, but grady trimble is finding that there may be a glimmer of hope for those looking for a cheap ride. we're headed for the land of lincoln for a live report. let's check the markets before we go, the dow up 337 points. the s&p 500 1.8%. nasdaq, 2.6%. we're coming right back, don't go away. ♪get ♪ can help your business get a payroll tax refund, even if you got ppp and it only takes eight minutes to qualify. i went on their website, uploaded everything, and i was blown away by what they could do. getrefunds.com has helped businesses get over a billion dollars and we can help your business too. qualify your business for a big refund in eight minutes.

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kelly: another pandemic trend falling to the wayside, used car prices may have hit their peak finally. automotive analysts at jpmorgan are predicting with new car production improving, used car prices next year could drop as much as 20%. grady trimble is live at an illinois car dealership. grady, i mean, tesla's up like 8.5% right now, and you're seeing a significant price dip in used teslas there, right? >> reporter: used teslas, kelly, have dropped about 17% in price from their peak in july. so right around the $56,000 mark now compared to $67,000 the just a few months ago. we're at a buick/gmc dealership

where woody woodring, people are trying to trade in their teslas to you. why is that? >> well, they're trying to get their money back out of them. some of them bought them with the intent to flip it like you'd flip a house because they were that hot. they're still hot, don't get me wrong, they're just not able to flip hem for what they would expect to make a profit, so now they're trying to get top dollar for them. >> reporter: and they're sill ec -- still expensive, regardless. we have the numbers for an average used car in november, around $23,000. that's a big drop from last year around this time. you're seeing that. some analysts are saying it's going to keep going, down 10, maybe even 20% next year. you're not buying that. >> i'm not buying that jump. i do buy the jump from, the drop from last year to now. that was just things were crazy hot. now, you know, i think it's a respectable market, and we're going to have to still maintain decent used car values to keep selling the new cars. >> reporter: i was going to

say part of the reason we saw used car prices go sky high is because there weren't as many new cars available because of chip shortages, part shortages. your inventory still hasn't caught up. >> it's not caught up, and we're just not getting a people premium for the -- premium for the cars, full price for them. right now we're back to discounting the cars, and our goal here at our dealership is to trade for the car on today's money. whether we make a little, lose a little, we want to own that trade on the right money. >> reporter: the good news is used car prices have come down, the bad muse is that interest rates have gone up and are going to keep going up. so if you have to borrow to the to buy a car, you're going to be paying more to borrow. so win and a loss. [laughter] kelly: i know. it's such a good point, right? you don't want to spend the money for a new car, but financing that used car, you're also in a tight spot. i guess best to hold on to it right now if you can. thanks so much, grady, live the for us in chicago.

okay. we've got a fox business alert here. the major averages all up more than 1%. you've got the nasdaq up 2, almost three-quarters of a percentage. so much needed between on the screen right now -- green on the screen right how now. ev makers are zooming to the top of the nasdaq led by tesla which we were just talking about, rivian and lucid as the u.s. prepares to introduce incentives for delivery companies to switch to electric vehicles. so the program is part of the inflation reduction act. it's going to offer tax credits of $7500 or $40,000 depending on the size of the vehicles. so companies like fedex and amazon would qualify for the $7500 for many of their electric vehicles. those tax credits can be combined with voucher programs in california, new york and other states that are working to convince companies to switch to zero emission vehicles. those incentives are going to kick in on january 1st of this

coming year, but of course a big hurdle is going to be building out the charging infrastructure to accommodate that push to avoid cramping the supply chain. you imagine if those amazon cars were going to congress out in the mid -- konk out in the middle of getting to you. i'm sure you've all noticed your egg prices rising. an egg producer reported second quarter profits that missed wall street's estimates. the stock down almost 15% there. the mississippi-based company attributes the miss to higher feed costs which offset rising egg prices. and prices jumped 49% in the past year in big part due to the bird blue. your hens can lay the eggs, millions died in 2022 the as a result of the deadliest outbreak of avian flu in u.s. history. that's why you're seeing that. cal maine expects rising corn and soybean twices to continue to affect cost in 2023. ge health care technologies inc., that's going to become an

s&p 500 stock on january 4th after it splits its company into three separate spi entities. the split is scheduled to happen on january 3rd after the market closes, next tuesday. ge announced back in november of 2021 that after the splint they would create ge health care. investors will get one share of ge health care for every three shares of ge they own right now. it will replace vornado realty trust. and lockheed martin is filing a protest with the u.s. government accountability office after the army aa worlded textron its contract to build a new fleet of helicopters. lockheed had teamed with boeing to offer an all new helicopter named the dethe find x. -- defiant x. the army didn't immediately respond to requests for comment. they have the power to recommend reopening competition if it finds in favor of those

protests. now, the fed pouring cold water on the housing market, but as jerome powell and company begin to slow rate hikes in the new year, what's 2023 going to bring for the real estate market? we'll take a deep dive into that in a few moments, but first ors let's check the blue chips. dow is up 355 points, just over one percentage right now. we've got a lot more good stuff coming for you. we'll be right back. ♪ ♪

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kelly: mortgage rates giving the housing market a bit of whiplash this year, to put it mildly. after trending lower for the six weeks, they're back on the rise. the average 30-year rate rose to 6.59% this week, and just this time last year they were only 3.24%. so so after all the housing data we got showing mortgage applications and home prices falling, what does this mean for

the real estate market in the new year with more rate hikes on the table at the federal reserve? joining me now in a fox business exclusive is the international chief economist, erin sykes. erin, so good to have you with me. i'm particularly excited to talk to you as i think about buying my first home. i want to get your perspective, we saw the case-shiller index come out earlier this week. prices didn't slow as much as expected. but then we also had pending home sales reach their lowest level on record excluding the pandemic e, dropping 4% in november. are we seeing a stale stalemate in the market here? >> a little bit. you know, we, we have sellers that still want 2021, peek of -- peak of the market prices, and then we have buyers that want a discount. and i think the key is there's negotiable it's no surprise and

it's no news story that rates have increased by double year. but what i think is left out of that conversation is that they're actually still over a full point below historic averages. so even at 6.5%, our historic 50-year average is a 7.77% 30-year mortgage rate. so things are not that bad. i know we tend to talk in extremes, but there's a lot of buying opportunities, and don't forget to negotiate. i think the problem is that sellers just -- or buyers, heir in this take it or leave it whatever the posted price is, that's what i've got to say because that's what we saw over the last two years. but that's not it. take a bite, go to the showing and negotiate. we're back to, you know, normal times. kelly: well, i love that you brought up the context on that mortgage rate, because i know i've lamented how high mortgage rates are. my parents have said to me,

well, our first mortgage was 16%, 17%, right? so this looks low in comparison to something like that. but we are expecting the fed to hike rates at the end of january and likely beyond that even though the pace of those hikes have slowed. so what might you expect mortgage rates to hit come this next year? >> so i think we actually saw the peak of mortgage rates around 7.25 the % a couple months ago. we've pulled back a full percentage point since then, and there's a lot of inputs into mortgage rates beyond the fed if funds rate, and it has to do with personal credit, and it has to do with employment rate and, you know, where you're i buying. there's a lot of regionalty in terms of mortgage rates and also in terms of prices. so you have to take that into consideration, and, you know, look at the buying opportunities. only dead fish go with the flow, so if you want to make money, if

you want to make a good investment, sometimes you need to be a little bit contrarian. we've already priced so much into the market because we have been talking negatively for the last few months. but that is a blaring red sign for opportunity. kelly: you talk about opportunity. certainly, the numbers that a we're talking about, these are national averages when it comes to how much prices are coming down. but it varies region by region. so what are some of, you know, the gems that you're seeing if folks are willing to move when they're thinking about buying? >> yeah. so one of the interesting things is that l.a. has pretty much been the most stable in terms of inventory and prices. we're seeing year over year pretty much flat many l.a. -- in l.a. we have miami which is still a very hot market, might be affected by the crypto fallout. we have to see about that.

but it more or less moves on the socioeconomics of latin america. and because there is so much disruption in south america, we see a lot or more money flowing into miamiment palm beach -- miami. palm beach. if you take out our giant, record sales, you know, above $can 100 million in palm beach, our prices have held flat from. inventory is starting to tick up, so you have more option. pleasure the hamptons, still very strong market. more inventory and it's also off season, so now is time to shop. and then new york. i mean, who wants to pay an average rent of $6,000 a month to live in manhattan? it's. time to buy. home ownership is the number one biggest wealth billedder in america -- kelly: sure. >> -- so take this opportunity and grab it if you're in one of these op por tune markets. kelly: and to add context to that 60 -- 6,000, what are you going to get in manhattan?

it's going to be a postage stamp, essential hi. >> nothing! kelly: yeah, exactly. thank you, erin, for your holidays.. -- thoughts, happy holidays. pot is now legal in the nation's biggest market. we've got the ceo of true leaf to tell us what the opening of the empire state means for the growing industry. but first, let's check the big board. the dow up 359 points. don't go away, we're all mt. green here. "the claman countdown" is coming right back. ♪ ♪ with my credit cards wasn't good. i got into debt in college and, no matter how much i paid, it followed me everywhere. between the high interest, the fees... i felt trapped. debt, debt, debt. so i broke up with my credit card debt and consolidated it into a low-rate personal loan from sofi. i finally feel like a grown-up. break up with bad credit card debt. get a personal loan with no fees, low fixed rates, and borrow up to $100k. go to sofi.com to view your rate.

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when people come, they say they've tried lots of diets, nothing's worked or they've lost the same 10, 20, 50 pounds over and over again. they need a real solution. i've always fought with 5-10 pounds all the time. eating all these different things and nothing's ever working. i've done the diets, all the diets. before golo, i was barely eating but the weight wasn't going anywhere. the secret to losing weight and keeping it off is managing insulin and glucose. golo takes a systematic approach to eating that focuses on optimizing insulin levels. we tackle the cause of weight gain, not just the symptom. when you have good metabolic health, weight loss is easy. i always thought it would be so difficult to lose weight, but with golo, it wasn't. the weight just fell off.

i have people come up to me all the time and ask me, "does it really work?" and all i have to say is, "here i am. it works." my advice for everyone is to go with golo. it will release your fat and it will release you. >> [cheering] kelly: there you i have, folks, first legal sale of recreational marijuana in new york city, just a few hours ago, housing works cannabis company opened its doors in the east village part of manhattan. this is a huge step forward for the weed industry. they expect the big apple could be the largest market for recreational marijuana. we have truly ceo kim rivers have, what this means for the industry going forward. exciting day in new york. we saw the first sale.

i'm glad to have you with me, like i just said, analysts are predicting new york could become the biggest market. what say you? are we going to see a huge boom here? >> i think that today obviously is a historic day we celebrate when there is milestone within the industry. it is interesting to watch cannabis and reform of cannabis happening up and down the east coast. certainly new york has taken a very different approach than other states and it reminds us as well we live in a world where, in the u.s. anyway, there remain this is checker board like map as it relates to cannabis legalization and that business regulation. it is interesting today, one in every three americans lives in a state where some form of cannabis is legal. we've certainly come a very long way in a very short period of time but we're still in a really booming industry. the cannabis business or industry as a whole in the u.s.

is expected to basically double within the next five years. a lot of runway ahead. that is in spite of lagging of congress to put for the really any meaningful reform from a policy perspective and unifying policy perspective in d.c. so today is a great day for cannabis. certainly excited about new york. we have connecticut coming right behind with first recreational sales shotted for january. the number of other markets slotted, maryland is one for this year. we're excited we're launching our first melodies pens is ary in georgia. florida has recreational hopefully on the ballot next couple of years. lots, lots of growth ahead. certainly today in new york is a step in the right direction. kelly: i think it is important context you brought up how different it is state by state. i'm normally in california. in the years that i have lived there it has gone from illegal to an essential service during the pandemic that remained open

and so it really is so different. i would ask you would you ever open one in new york now that this boom may start to happen? >> you know for us, each state the analysis each company goes through entry into the state is different. true leave we're fork focused on we're on a sustainable model in the long term. we're taking a wait and see approach in new york. there is a lot to still figure out there. how illicit and regulated market come into focus. of course never say never for us. we're bullish on the southeast. you may not know us, we are, we have 8,000 employees, we have over 181 locations across 10 states in the u.s. we're in the southeast, the northeast, and the southwest. we have over four million cultivation of processing. we are focused on places where we can have scale and scaled

production and to penetrate a market. it is really important for these businesses to really focus on cash flow. due to the lack of, again federal movement on things like essential services such as banking i think it is very interesting congressman schumer who of course is majority leader in the senate is from new york and many of these businesses, particularly minority and, minority-owned, small businesses are really addition advantage being in the cannabis space without access to banking. so we're hopeful that this congress will take up safe banking. it is passed the house seven times. we hope under senator schumer's leadership we'll start to see some movement on the federal side so we can be treated like any other legal business in the u.s. we, as another example, are taxed as if we were selling heroin or cocaine and even though we are again a legal business, as you mentioned ironically, an essential service during the pandemic, all 8,000

of our employees were working during the pandemic and providing much-needed and real leave to patients across the states we operate in. kelly: yeah, i think it is an important point about the banking. we've struggled with that in california. you actually still see these illegal dispensaries around. they are hotbed for crime. that factor has to be ironed out. kim, thank you, we appreciate your time. >> thank you so much. kelly: the closing bell rings in just over four minutes. markets still hoeding holding ie green just off the highs. dow 360 points up. just a few minutes left of trading. as the market attempts to get a running start into the new year could this rally have some legs? our next guest says there is potential for the markets to rebound substantially as we get further into the year. joining me invest net solutions co-cio that sdeloria. you have 600 million in assets

under management. you're certainly the person to talk here. we're moving into more fundamentals driven market. everyone is looking towards the first quarter. what are factors they should be looking at, what are the key indicators you are looking for? >> sure. thanks for having me. those assets are managed by variety of asset managers. i get space from several different economists resources, et cetera. i aggregate that to give you overall insights that i get from those different places. what i would say high level, is that there is some coalescing around this idea as we move into 2023, we do still have pain to work through in the market. volatility, we haven't necessarily seen earnings drop to the extent we would expect to. we know that recession is probably on the horizon. recession will be a risk for the next couple years but as the moves past and i will say, the caveat here is you know the market expectation that the fed

will pivot quickly is, you know, we know there is good reasons to think that the fed will not pivot quickly. they will continue with kind of a strict stance, a hawkish stance. but as we move into the latter part of the year, and that does ease you, if we start to see job losses that can move the fed and then you will start to get some movement. so what i would say to ininvestors is, you have to kind of hang on, right? this is a long game. don't look to what happens in the early part of the year. consider that, if you kind of hang on there is a decent chance for a nice rebound in the latter parts of the year. kelly: sure of course u.s. stocks have dominated over this last cycle but, it is important to think about diversification, especially as we see china opening up. so i wanted to get your perspective what investors should be thinking about there as we see them start to repound from these covid closures? >> excellent question. we all sufficient from recently

bias, right? we -- saw thousands and thousands of investors, there is this movement toward last several years of u.s. dominant focus because that has been where the game has been, right? the u.s. has outperformed f we think back 10 years ago, the lost decade, it was reverse. you had a lot of decade in stocks if you were in u.s. stocks, if you were invested in the s&p 500, you came cumulatively lost money over that decade. what that tells us markets are cyclical. u.s. dominance trade with international dominance. we had u.s. dominance. folks positioned that way. why would i invest overseas. there are a lot of important reasons thinking overseas, valuations are lower. we know there are headwinds there as much as here in terms of inflation but central banks haven't been as harsh there and let's face it, if you don't have international markets in your

portfolio you're missing out on 50% of the world's productive capacity other than what you get international companies from the u.s. remaining globally diversified especially as we move into different times where the u.s. dollar may start to weaken further into the year. as fed pivots potentially, we might see weakening in the dollar. that also helps international stocks. kelly: great points about the diversification especially as we see these companies start to come back. dana, thank you so much for joining us today. we really appreciate it. have a happy new year. folks that will do it for the second to last day of trading. [closing bell rings] the we have the dow up 333 points, s&p 500 up 1.7%, nasdaq 2.6%. that will do it for me. "kudlow" is next. ♪. david: welcome to a special edition of "kudlow." i'm sean duffy in for larr