tv The Claman Countdown FOX Business December 30, 2022 3:00pm-4:00pm EST
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lauren: a quick check, a final check of this show for the markets this year and it is a selloff of 1% across the board. thank you so much for joining us for part of this week. i'm lauren simonetti, charles is back this week and kelly o'gray seizure disorders sitting in for liz. hi, kelly. kelly: hi, lauren. all red on the screen and
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fitting way to end the year and i'm kelly o'grady in for liz claman and under an hour left of trading in 2022. this will be a important one to watch, folks, and of course this is par for the course what you see on the screen given this year's dramatic declines and the dow tumbling 324 points right now. the s&p 500 down just over 1%, the nasdaq the same. and the major averages are preparing to close out their worst year since 2008. the dow heading for an annual loss of 9%, the s&p 500 sinking 20.1%, and the nasdaq, i mean look at that, by far the worst performing index down 33, almost 0.8%. let's dissect some of the individual names for a moment to see what's driving those substantial losses, the worst performing stocks on the dow getting cut in half this year. intel down 49%, sales force down just over 48% and disney; right,
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bob iger coming in at the last moment and earnings coming up and we'll really be focusing on profit, maybe not subscribers with streaming and they're down almost 45% for the year and look at s&p 500. generac, tesla and meta and generac down more than 71% right now and tesla and meta both down roughly 65% for the year and meta cut 13% of their staff back in november taking heavy losses on their meta verse bet. they're having their worst year on record and biggest losers on the nasdaq, take a look at ev makers, rivian and lucid down more than 20% in 20226789 remember rivian had one of the best ipos on record last year, now look at that. the stock down close to 83% and darling align -- pandemic
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darling align technologies down also. we have to look at big tech names as well, amazon down 50% this year. oh, i mean just erasing those pandemic gains. netflix down 51%. apple in comparison and not fair nearly as bad, only down a mere almost 28% marvel down, nvidia and amg both over 50% down and lot of bad news there but i'm be remiss if i didn't mention bright spots in 2022 and you'll notice they're mostly in the energy space. occidental more than doubling in year. exxonmobil, alb posting huge yearly gains and following a year marked by sky high inflation soaring interest rates and recession fears where does that leave us for 2023?
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well, let's get right to the floor show, joining me now are fidelity investments john gagliano and fitzgerald. keith, we're set with the worst year since 2008 and next week it'll be a new market and we're likely still looking at some of the same core problems; right, inflation, recession fears, fed rate hikes >> that raise is portanova taint in subtle distinction and inference it's terrible and 2008 all over and people remember the global financial crisis and they're forgetting your point and marketing came aaron rodgers and roberting out march of 200 -- aaron roroaring out march 200 af
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you're an investor i'm looking for stocks beaten to smith renos and ran down a -- smither renos and i'm -- i'm content to look forward to business conditions three to five years out and especially in the last hour whistled get off camera. kelly: you'll be making last minute trades. i like it. john, i want to turn to you so of course we'll have another fed meeting right at the end of january and they'll be looking at numbers like cpi and gas prices coming down. what are you expecting that we might see for investors and think about where to put your money come january. >> this is one of those -- it's like the largest confluence of things all happening at the same time. you mentioned cpi, cpi, the fed is in a tricky spot. it seems like they only seem to car about year over year and not
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looking at last quarter and was lean, that's a great example and gas prices and coming from new jersey and $2.99, $2.95. if you see that you're lucky. it was $4.25. if you think back to april of last year, it was getting closer to $5. when those year over year numbers come back, the feds going to be kind of stuck saying is this disinflation, have i overdone it? so i have to agree with keith, i think that don't fight the fed but if the fed's numbers are year over year and you're doing the math, things could look a little rosie come february, march, april when the year over year numbers are what they are. kelly: that'll be a nice christmas present certainly and i haven't seen gas prices that low. i'm normally out in california so, lord, something under $3 would be -- exactly. keith, i wanted to ask you, we mentioned rivian off the top there, they of course was one of the great ipos of 2021.
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we've really seen these ipos especially tech ipos fall flat. i was reading a steady publish earlier this month and deal proceeds at that point when they publish it had in mid december down 94% for 2022. are we going to see a boom back the other way, could we see the ipo space and tech ipo space gain steam in 2023? >> you know, i would love to be able to tell you that's the case, but i don't think so. the fed is gonna continue to oil markets and that by implication is going to impact capital markets and the bloom is off the rose when it comes to ipos. what's more likely to happen is you'll see a jump in merger and acquisition activity and companies like app and will microsoft go -- apple and microsoft go after the great companies out there and perhaps just struggling and perhaps under valued but it's not going to be an ipo market and an
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acquisition market and that's a sign of strength, not weakness. kelly: i love the point you make and we're see ago lot of consolidation in the streaming space, maybe we could see apple get in there. i personally from a consumer perspective would love for them to buy that and consolidate everything again and speaking of sectors, i want to talk with you, john. where should we be looking? energy has been really great for everyone so far this year that invested in that. where are you looking in 2023? >> so you definitely cover places that we shouldn't be looking. things like tech, tech, tech, communication services, stuff that worked great just ain't working no more. when we look beyond that, if we look -- i like to call them the triplets and it's industrials, materials, and energy. they kind of have to go together because if you're building a big truck like a giant caterpillar truck or john deer tractor, you'll need iron, aluminum, metals, plastic, glass, you'll need materials and that has to go up together and if we build it, how do we ship it.
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they'll have energy stocks. the industrials materials and energy have to go together and right now the hands down winner is healthcare leading the way for the last three months and that's a sign. when markets are bottoming and there's one sector buffing the trend, you have to pay attention. kelly: yeah, that's a great point and think about energy, when all of those containers get unloaded out of the port of la; right. you fill up with diesel on the trucks and send them across. r keith, pfizer, why? that's one of your picks. i can't get -- >> i can't get my hands on enough of that stock and they tend to bottom faster and fire about customizable medicine and people confuse it all the time in just vaccines but that's not the case with this one and big huge history and long dividends and great reinvestment and it's notable that china's elite are accumulating pfizer's vaccine according to news reports i'm hearing and a company that's
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firing on all sillen darling stones and yet -- sill linn darling stones and that's great. kelly: thank you both for joining us. have a happy new year. >> like wise. kelly: now this, epic political struggle coming to an end with house democrats releasing six years worthed of former president donald trump's tax returns and comes ten days after the house weighs and means committee released reports saying the irs failed to audit president trump during the first two years of his presidency and tax returns cover 2015-2020 and fox news senior congressional correspondent chad pergram has all the details on capitol hill. comma have you god -- what have you got, chad? >> kelly, $750 is what president trump paid in taxes in 2016 and 2017 and nothing in 2020 and no
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taxable north carolina from 2015-2017 and 2020 and house democrats tried to get mr. trump's taxes to see if the irs conducted a proper audit. >> the president countered that the committee was not interested in fully and fairly auditing. the president countered that the committee was not interested in whether the irs is fully and fairly auditing the president but rather the excite tee was interest -- committee was interested in embarrassing the president. >> democrats charge the irs fell asleep at the switch and the former president is required by law and mr. trump bucked a half century custom of presidents and candidates voluntarily releasing their returns when seeking the white house. >> or maybe he doesn't want the american people all of you watching tonight to know that he's paid nothing in federal tax. if he's paid --
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>> i paid millions of dollars in taxes. millions of dollars of income tax and there was a story on one paper. i paid $38 million one year and $27 million one year. >> show us your tax return. >> the law permits the weighs and means committee to examine tax returns and democrats use the release to underscore the rich don't pay enough in taxes. >> what that speaks to is the fact that we have a two-tiered tax system where working people are held to one standard and the very rich and the well connect redirect examination held to a different. >> in a statement, democrats weaponnize the tax system and warned "this is a dangerous two-way street. the top gop member on the weighs and means committee kevin brady says the release ushers in a "dangerous new era". kelly. kelly: thanks for breaking that
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down for us, chad. as always have a happy new year, chad. >> you too. kelly: the tight labor market driving them nuts and there's too much openings and not enough qualified candidates and some are relaxing their standards and resorting to hiring those with criminal records. we'll talk exclusively to one company that does background checks for employers and they'll tell us if they're ready to put felons to work. okay, let's check the big board, the dow, okay. we're not too bad. 230 points and we've got just 38 minutes left in trading. the "claman countdown" is coming right back. ♪
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kelly: next week we'll get the final jobs report for 2022 and while the dove market has been strong over the course of 202t there's been slights weakening and the number of jobs gained each month decelerated last year by more than 50% and peaked in march by 5.6% and almost every metric has been weakening with the exception of weekly claims. so the latest jobless claims came in at highest level since february. while this is a bit of good news for the fed. the labor market is tight and many companies are getting creative to fill staffing holes. one hr pro even told fox business that businesses should consider hiring people with criminal records. the man behind the background checks and morning side evaluations and managing partner dr. joshua eisen joining us in a fox business exclusive. thank you for being here on this final friday of 2022. i wanted to start so i have a basic understanding of how this
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works. so what's the process to get someone with a criminal background cleared to work for a company? i imagine there might be a couple extra hoops to jump through. >> really depends on the company or the institution. for example if you're dealing with the school or places where you have children obviously. there's certain types of criminals and that's mandated by law but by in large it's a company-by-company decision and more companies are now for example hiring formally incourse rated people of all -- incarcerated people of all kinds and it's dis-registration their. in terms of performing background checks, that's something that's become almost standard in most companies. kelly: so you mentioned that you are seeing formally incarcerated folks being hired by companies more and more. can you give some examples of the types of crimes that folks are willing to hire because i imagine that's also up to the discretion of the companies in the wide range you might be seeing. >> it's a combination of the
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background of the person but really also the experience in how many years they've been out of prison and many factors going into it beyond just the actual crime committed and sometimes even if you know what the conviction was for you don't have a complete sense of the crime without reading all documentation about it and somebody that's a repeat offender and hiring to be your cashier. again these are all business decisions. the background check is done so that an employer has information so that they can make decisions or follow the law. really depends on what the purpose of it is. kelly: of course we had a number of stats about how we've seen a tight labor market starting to weaken as well. do you think the shift for companies is coming because they're struggling to find people, you know, to take these jobs? >> certainly the labor market has stayed tight regardless of
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which the fed raised rates and whatever attempts have been made to stifle it and it's strong and, yeah, it's something that you're sighing. you're seeing companies definitely losen their standards to the extend they may do a zoom call instead of in-person interview or phone screen and simple 6 or 12 month contract where it's a coding job or testing job, something very quantifiable. there might be not be an interview at all. kelly: sure, that brings up a great point because we have seen companies start to say, hey, you put in an application and you're hired and we need someone to work the cashier or the restaurant or whatever. do you feel like there's a danger though by not having that interview process as we look ahead a couple years down the line? >> really again depends on the situation and the nature of the work. if somebody's job is for example to provide a very fixed amount of coding or copy editing or something like that, they do it at home and it's offshore that
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maybe you can forego certain parts of the process and quantifiable the more managed it is and easier it is to take that risk. that's a business risk that companies will take by in large we're seeing more companies stick to the background check, stick to the in-person interview and still certain basic human things that people want to go through before they make the commitment of employing someone. kelly: yeah, of course. especially if you're going to be working in person with someone or so many things they have to pass that we always used to say in consulting, the airport test and have good folks working with you. thanks so much, dr. eisen for joining us today and we appreciate you spending your last friday of 2022 with us. >> thank you. kelly: okay, southwest hoping to put an end to the chaos following last weekend's cancellations due to the wicked winter weather.
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southwest airlines travel melt down in recent memory and canceled in one week and southwest resumed normal operations today and after leaving passengers stranded, southwest was the grinch that stole christmas from many travelers this holiday season. let's go to lydia hu in the fox news room. you've been on this since the very beginning. lydia, what's southwest ceo said about the turbulent week? >> hi, kelly. we heard from bob jordan this morning and he acknowledged that the cause of the airline's problems this week went well beyond the weather and that the airline will have to make investments in improving operations. watch here. >> step one is to get the operation back on track. the best way to serve our customers ask to get the -- is
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to get the network going again. there'll be a lot of lessons learn that had come out of this. >> now as southwest says it returned to a full schedule, the effort to get passengers home and reunit traveler withs their missing bags, that is ongoing. the department of transportation requires that passengers be compensated for any lost luggage in an amount up to $3800 so it does appear there's a cap there. the department is also promising there'll be fines in the reveal and hotels, ground transportation, or if they fail to offer refunds for canceled flights. secretary pete buttigieg wrote in a letter "no amount of financial compensation can fully make up for passengers who missed moments with their families that they can never get back. he continued "that's why it's so critical for southwest to begin by reimbursing passengers for the costs that can be measured in dollars and cents" but there
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are lawmakers including progressive representative ro khanna calling buttigieg out for not doing more. khanna tweeting "nearly six months ago, bernie sanders and i called for buttigieg to implement fines and penalties for canceling flights. why were the recommendations not followed? southwest could have been avoiding that". executives promised to move operations and they'll take years in the short term what we're looking at was the fourth quarter and we can expect results of those likely going to take a hit. estimate on how much and think about this the last time southwest dealt with the massive cancellations over 2021 and that's when it canceled and it caused the airline then about $75 million and this time, kelly, we've surpassed 15,000
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flights, about eight times that and see how it shakes out. still have to follow here. here. kelly: very, very expensive for southwest. thank you, lydia, for that report for us. fox business alert, we've got the markets all in the red close to a percent disown and each of the major indexes and take a look at a couple of movers and details and both shaw and rogers communication getting a boost after receiving good news from canada's competition tribunal and potential merger has been under review and regulators announced on thursday that the combination of rogers with shaw is unlikely to result in reduced competition from consumers and decision allows shaw to selloff the freedom mobile wireless telecom unit to privately held videoron and still needs approval for the transfer of freedom mobile. investors also chipping away at
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semiconductor stocks and this year seen a bit of a whiplash in the industry and micron slashing production citing weak demand and micron lower today after research cut from buy to hold down almost 2% and lithium battery maker appointed former myocrohn senior vice -- micron senior vice president as micron mobile business unit and harold rhussing retiring on january 18th. rusk and zooming higher and deliveries exceed 20,000 units above the original forecast and also forecast 48,000 deliveries for the fourth quarter and a 36% increase from a year ago. you see the stock up there more than 4%. and thank god it is friday. it's the last one of 2022, and who better to spend it with than
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it have kelly: sam bankman-fried is expected to plead not guilty to eight counts of fraud and sbf due back in court on january 3 next tuesday and expected to appear in person and a lawyer for bankman-fried did not respond to the journal's request for comment and remember, there are two cooperating witnesses in this, including the former ceo of alameda research, caroline ellison and interesting to see if that goes to court. i want to check the cryptos at this hour.
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bitcoin down there, less than a percent but ethereum and litecoin, wow, litecoin almost up 3% there and a bit of christmas tree on the screen for you. now this, inflation cooled slightly in november and tracks bars and resta restaurants and t rose a half a percent at 8.5% year over year and charged annually in november at 9% full service and 6.7% at limited service restaurant. inflation eating at consumer's wall y yet ets and impact -- wallets and impacted the business and restaurant change in america and i'd like to bring in the tgi friday ceo ray blanchette here in a fox business exclusive. ray, great to have you on. i'm a huge fan of tgi friday's bred sticks so thank you for that and all you do there. but i want to start off,
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consumer spending; right. i just mentioned some inflationary numbers but your same store sales, they're up 8% versus the pandemic. we would have expected maybe some consumer spending draw back in terms of what we've seen in the inflation numbers and what's driving that? >> we've seen a resilient consumer and there's a lot of money sent out to folks during the pandemic and keep the economy going and that kelly: this is a time for people to come in and celebrate and chair a meal with people? >> people putting lives on hold
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and now you have a season where there's remnants and folks want to get back out and want to connect and socialize and be together. you know apart from some very devastating weather, certainly hearts and prayers have been out to the folks of buffalo. what's happening out there. it's been a robust holiday season for us. kelly: i've been in time squares and your location was swarmed with people. we mention that food costs are soaring and eggs up 29% and butter up 27%. how is that impacting tgif because we've heard other companies like disney say we're going to scale back our portions and h in order to not raise menu prices. what have you had to do to combat that rise in food inflation we see on the screen?
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>> we say let's not create a long-term problem out of a short term issue. we certainly didn't take all of the price and we absorbed much of it, what we could absorb, to give the consumer a bit of a break and what happens because grocery store prices go up and down with the market. restaurants have not taken full price and we're eating some expense. august was peak inflation and since august we've seen cost of goods come down almost 200 basis points. , which is really helpful. kelly: 200 basis points, absolutely. i want to bring in the labor challenge; right, because in addition to the cost of goods and everything the national
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restaurant says 58% is their biggest challenge and keeping those employees and how has that played out with your staff? >> we saw staffing as a gaining factor for recovery during the pandemic. we got out very early and realized we got to get ourselves staffed before our dining rooms reopen. we did a lot of things to reengage our team members so, knock on wood, we're fully staffed at tgi fridays but it's a constant battle. i think till we flip the narrative in dc around immigration and, you know, create a guess work or program, maybe not a path to citizenship, something that everyone can agree to because it seems like when you say the word immigration you get folks in
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here and ease some of the pressure. kelly: for sure, i'll be eating as many of the bred sticks as i can next time i head into tgif. thank you, ray, for joining us today and have a happy new year. >> thank you, happy new year. kelly: thank you. new year's eve ball is ready to drop in time square saturday night and today's count down closer has stocks he says can help you set yourself up for a prosperous new year. let's check the big board, we're down on the dow 156 points, just under a half a percent and got about 16 minutes left in trading. don't go away, we'll be right back. ♪
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serious allergic reactions may occur. watch me. kelly: break news, the moscow police department in idaho will be holding a press conference at any minute to give an update on the grizzly quadruple homicide of four university of idaho students. 28-year-old bryan ko kohberger s arrested this morning in connection with the stabbings and the scranton, pennsylvania,
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and fbi was part of the arrest and he was arrested on first degree murder charges for the november 13th killings and more details at the top of the hour and fox business will bring you that presser as soon as it begins. no one happier to see 2022 come to an end than elon musk. he's no longer the world's richest man and his ev company is on track for having its worst year in the stock's history. down 65% this year. no longer a trillion dollar company. it's market cap now $385 billion. webb push analyst shared list of ten things musk must do to turn around tesla and included naming a twitter ceo, stop selling tesla stocks, focus on tesla and not twitter and announce cyber truck delivery targets in the new year. i might add maybe not tweeting as much. that's my personal opinion. joining us now is baron senior
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writer allen root. got to have you on closing out the -- good to have you on closing out the new year and one of my favorite topics is elon musk and dan ives and anything to rebound tesla in 2023? >> hi, kelly, thank you. it's a good list. i think it's a good list and goes in sort of three categories; right. there's market based concern about ev demand and recession and car demand in general market share with more evs hitting the market and ives would like to see tesla set expectations and explain how all that will work out and he wants to overhang to end and he wants some more detail about some of these market concerns that have also driven the stock down in 2022.
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and i guess the third thing, you know, it would be great if rates peaked and the fed ended its rate hike cycle, which would be good for all growth stocks as well but that doesn't enter the list. i think dan hits the nail on the head and sort of summing up what's been most on the minds of investors. kelly: sure, we'd all love to see the fed stabilize and everything come together there. i want to bring up china; right. they're reopening and reverse covid policies and reports that some of the tesla factories in shanghai were struggling with staying open with covid cases, but if china's able to get past that and quickly, how does that impact tesla going into 2023? >> it's a really great point and the problem with china is we far away, tesla investors far away don't have a great idea of what's going on and supposed to be reopening and we hear that and then we hear about shifts
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going down and taking delays for demand and get rid of inventory and covid rearing ugly head and impacting the supply chain again and there's a lot of cross currents so you have to sort of step back; right. the current consensus is that ev demand will rise about 30% in china. biggest market for new cars and evs and significant growth in 2022 and more evs sold again in 2023. through all the noise, the expectation is ad market still grows and that'll be critical for tesla. if that estimate turns out rosie and it's bad news for tesla and everybody. these have been impacking the stock in december and, you know, you have to set yourself in a
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data ask see how it turns out. >> -- kelly: yeah, that 30% demand prediction would be quite something for tesla there. i want to ask you about twitter and i used to work in mna and when i saw he was forced to pay $44 billion for something that there's no synergies with the other companies and i almost had allergic reaction, he has to -- it's not a profit play and has to service his debt though and he has to keep his reputation with investors and is there a world where he's able to take twitter to profitability? >> the disaster of 2022 and asking a industrial reporter and can the media platform get to profitability. the crazy thing is it's impacting the car company so we have to have a view; right. i think that it will be great to hire an external ceo.
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articulate a strategy in terms of getting cash flow to break even. for the car company that means no more stock sales for musk and something that's been really irritating inve investors and nt something that's necessarily because they're worried that elon is giving up on tesla and more like you sold $40 billion worth of stock in the past year or so. it sort of sold in uncontrolled manner and people are buying shares and being front run by ceo and all frustrated. kelly: sure. >> that would be great and what auto investors and tesla investors want to not think about twitter and they want to have a ceo and a strategy and they want to have like a -- you know, path to cash break even and advertisers back on the platform and not think about it again. that would be the best for tesla in 2023. kelly: yeah, tesla shareholders would love to see him focused on tesla rather than twitter. thank you, al, for joining us today. have a happy new year. >> you too, kelly. kelly: the closing bell ringing
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in just five minutes and closing out the worst year since 2008 to the downside. no santa claus rally in the month of december unfortunately. the dow down more than 4% and s&p 500 down almost 6% and nasdaq down close to 9%. all three down sharply for the year and first negative year since 2018. the dow down almost 9%. the s&p 500 down 19.5% in the nasdaq completely slammed. i mean look at it there, down about 33% in 2022. just a few moments left of trading in 2022 as we prepare to ring in the new year. it's time to make those last minute trades count and ensure your well positioned for a prosperous 2023. joining me now with $19 million under management. sean o'hara. good to have you here. chevron is looking to close out a year very high in the green here. that's one stock that you like for 2023. we've seen energy do very well
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this year as a sector. why chevron? >> well, thanks for having me, kelly, it's an honor to be the last count down closer of the year. i feel honored for that. we've been overweight energy and healthcare all year and story on energy is being driven by free cash flow. the reduction in capitol expenditures and oil prices being relatively high helps that whole energy sector and what's interesting about chevron is that the stock prices actually going up slower than the overall free cash flow is rising and slower than the profits are growing. the problem with the broad market is that we're seeing a contraction in multiples and whole market will pay less for stocks in terms of how much they earn. but the energy sector, we're trading it really, really low multiples right now and the earnings and the free cash flow continue to grow. we're going to enter 2023 just as we are closing 2022 with a fairly large overweight in the energy sector. kelly: that's a good point about the multiples and you also -- i
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think are very bullish on expedia; right. we've seen the travel industry boom back after the pandemic, but expedia is down there certainly a little bit up today but down for the year. why expedia. what do you think will happen in 2023? >> we measure stocks on free cash flow yield, which is the free cash flow that the company generates derived by the energy cash value and they're a new name by the quarter and there's sort of this notion that people are not going to be buying things, they're going to be trying to buy experiences and get out and about. expedia will benefit from that and of the three names i gave you we're down for chevron, moderna, and expedia. expedia is most expensive on a screening basis and generate gobs of free cash flow. kelly: sure. and tell me a little bit about moderna as well. we've seen, you know, certainly the focus on those stocks, pfizer and moderna this year but why moderna in 2023.
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>> we own both right now and we've owned them all in the past alternatively but moderna made a ton of money during the covid crisis on the vaccine side and they basically banked all that money and they're building a war chest to use for r&d and trying to open up cash flow for new drugs and hopefully future cash flow off those in the future. they screened into our portfolio because they generate a lot of free cash and cash flow and in this environment, those are the kind ovstocks to get paid with high interest rates and not inflation and own company that give you current returns and it'll be discounted with the highest input costs of financing ultimately wind up costing people who have debt. kelly: well, so we've gone through a couple of picks but real quick, you know, should investors be more aggressive, take advantage of the dips or look more conservatively in the
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first half? >> i would be leaning towards more conservatively and seeing what's in the fourth quarter and up days and down days and real wild cards out there, what's the fed going to do? i don't think they'll pivot. i think they'll stay the course and i think jerome powell will ultimately get to that terminal rate of 5% so those that are hoping that happens and that's the spring work, probably aren't going to get that this year and as far as earnings are concerned, the market still -- overall market and can't make money but the overall market is still fairly expensive on a pe basis and if we start seeing revisions to the downside because of some of the difficulties some of these companies have -- kelly: there's the bell, sean. i'll have to cut you off. last hour of trading, guys. thank you for spending it with me. liz is back next week. kudlow is next.
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