cheryl: breaking news, markets are near session lows right now as we enter the final hour of raiding the on this thursday this. but -- trading on this thursday. while the battle of the bearing rain bulls continues on wall

street, president joe biden has set the stage for a high stakes war with capitol hill over his budget proposal. you are looking right now at live pictures, this is the president. he is in northeast philadelphia. he is delivering remarks and talking about his 2024 the budget proposal. he is laying out all of the details. it's 182 pages, this budget blueprint. there are a lot of big ticket the items on here, but in the proposal one of the big things he's saying he's going to reduce the federal deficit by nearly $3 trillion over the next 10 years. raising trillions in taxes, he's going on the taxing the wealthy. he wants to anyway. he wants to ax the corporations including, get this, the a 25% minimum ax the proposed on the top .01% of the wealthiest americans in the nation and boosting investments many childcare, education, housing and health care. hello, everybody. i'm cheryl casone in for liz

claman. grady trimble join joins me live on capitol hill. grade key, i'm not sure if the news is in philadelphia odd the or on capitol hill as i know speak or mccarthy has already said this budget is d.o.a., dead on arrival, when it gets to mccarthy and the house. what do you think the president's trying to do here with this plan? >> reporter: i think any budget from if any president is sort of seen as b.o.a. when it -- d.o.a. when it arrives in congress, cheryl. the president is signaling his priorities to congress and, perhaps, to voters. you noted he's speaking right now in a battleground state, pennsylvania. >> my budget reflects what we can coto lift the burden on hard working americans. and there's more than one way to do that. bring down everyday costs. >> reporter: the budget is drawing the ire of not just house speaker ken mccarthy, but republicans across the board because of the slew of tax hikes

it proposes. the billionaire tax you mentioned raises the corporate rate from 21 to 28%. it also scraps oil and gas subsidies among other tax hike proposals. the committee for a responsible federal budget gives the president some credit for that deficit reduction, but it adds that that it doesn't go nearly far enough in tackling our national debt. finish that national debt, it says, would grow by $19 trillion by 2033 under this budget, and crfb also says the spending proposals are excessive which is why republicans and even some democrats are open to cuts. >> i'm open to whatever makes this place work and live within our means. think about this, 21 years in a row we have spent more in this country than we took in. we've been deficit spending for 21 years. pretty soon it becomes funny money. >> reporter: we have yet to see the counterproposal from house republicans, could be a while before we get our hands on

that. but house gop leaders out with a scathing statement calling this budget proposal reckless and saying that the federal government has a spending problem, cheryl, not a revenue problem. cheryl: yeah. and that came from kevin mccarthy and some of the other republican leaders in the house. i'm glad you brought up the committee for a responsible federal budget, because maya macguineas, she said most of this massive borrowing is the result of policies put in place years ago by democratic and republican administrations and congresses alike. so they're really laying out the blame both sides of the aisle, grady. >> reporter: yes, and i spoke with senator joe manchin about that today, and he said, look, we are paying for the sins of our past. he mentioned the deficit spending we've been doing for the last multiple administrations. and now it's up to this congress and republicans have taken it upon themselves in particular to get a handle on that. so it'll be interesting to see

that proposal from house republicans to see if they can rein in some of the spending in a way that is politically possible. cheryl: politically -- >> reporter: because, obviously, they don't want to cut social security, medicare and other programs. cheryl: yeah, prescriptions for seniors, things like that. i know that's been discussed in the president's proposal, but you're right, it's going to be interesting to see how they propose to actually keep the government running. obviously we don't have an agreement on that as well for government spending, but hopefully hal be the next hurdle we cross in washington. grady trimble, thank you for the live report. >> reporter: you bet. cheryl: now to the markets, they've been reacting ask so has jay powell reacting to inflation. a lot of folks have said that inflation coming from all that massive stimulus spending we had over the last two years. now to your markets right now, want to show you this. four of the biggest u.s. banks have lost $47 billion in market value today. jpmorgan lost about $20 billion.

bank of america lost roughly $15 billion. wells fargo dropped $8.5 billion followed by citigroup at $3 billion. fear is overtaking the financial sector. the parent of silicon valley bank announced a $1.7 billion share sale. so the firm is dealing with cash burn due to declining deposits from start-ups that are struggling with a venture capital funding drought and think about the higher interest rates. that's also a factor in this. so the top decliners in the s&p 500 include san francisco-based bank first republic, and then else with in the markets we've been -- elsewhere in the markets been keeping a close eye on the dow and is really in the last few moments we have hit session lows. right now you are seeing session lows on the dow jones industrials, down 439 points. so we are breaking session lows at this moment. s&p as well hitting new session lows, 60 points to the downside. and the nasdaq, the tech-heavy

nasdaq, is also hitting session lows, down 189 points. now, all of this market is on the heels of jay paul as we look ahead now -- jay powell as we look ahead to the february jobs report. that is out tomorrow morning, 8:30 a.m. eastern time. so today we got initial claims for the week that ended march 4th. they came in to # 11,000 -- 111,000, above the estimate of 195,000. initially, the markets liked this news because they thought, okay, maybe the tight labor market is starting to show signs of a crack. which would be a good thing for the markets. but now here we are looking ahead to tomorrow. what does the february jobs report portend for the markets and, obviously, for the fed? let's bring in our floor show experts right now, we've got teddy wise -- weisberg and scott bauer. teddy, i want to pivot back to the those financials and those losses we saw on the books, you know, for jpmorgan and friends. is this an inflection point for

you where maybe you start to look and say, okay, i'm going to actually buy into some of these financials because we're in such choppy waters right now in. >> well, no. and i think the choppy waters are exactly why not only would with i not buy the banks, there's a lot of things i wouldn't buy. i mean, we are, cheryl, we're in very difficult markets. there is no real catalyst out there for the bulls to the hang their hat on. yes, we get a couple of good days usually followed by a couple of bad days. basically, just kind of walking in the soft sand now for weeks. january was a good month, but since january it was -- the markets have basically gone nowhere, maybe a slightly negative bias. we all know the reason, it's primarily interest rates and higher interest rates. it makes it very, very difficult for the equity markets in general. i mean, what's going on in the financials today is sort of a knee jerk reaction to what has

taken place with the bank in silicon valley where they've taken these big losses on positions they've held, primarily bond positions. whether or not that's true for these other big money-centered banks, we simply don't know, but they're obviously a knee-jerk reaction to what's taken place in california. but overall, difficult markets. the best trade continues to be, in my opinion, short-term treasuries. i mean, folks can get 5% give or take a couple of blips on their money today with virtually no risk. why would you basically stick your neck out and buy stocks? cheryl: especially we were talking yesterday about the inaccelerated yield curve, we -- inverted yield curve, and that portends, predicts a recession. we shall see. scott, let's pivot back to the jobs story. we got those the claims told, a little bit hotter than expected. but all of that optimism is gone. we've had adp, we've had jolts now. what are you expecting in the morning in particular if, if there's a revision to january?

and it's lower? what does the market co? >> and i, i actually think that we will see a revision to the january numbers which were just such a blow outnumber. blowout if number. i think it's a combination of what do we see in february. if february is a strong number being 230, 24 to -- 240, 250 which, obviously, is not as high as january was but still a very strong number, that's going to be a big problem. i think we come in right around that 200 number which is what is expected, and i would think that january is going to get revised down. but the market activity you're seeing right now, cheryl, over the last 45 minutes or hour right now, there's a lot of people anticipating the still a very hot number storm and that this market is headed south because of that. you know, the weekly claims that we got this morning, great. service the higher than expected. -- it was higher than expected, the market wanted to see that. but that that's really just a

one-off. that hasn't been the pattern. so still we start to see a pattern like that, i don't think you can look at that one number. but tomorrow's the big one, and, you know, if this number is, again, 220 or higher and we don't see a revision in january, it's going to be a downside play, it really is. cheryl: well, it's been a rough week for markets. we're obviously down for the week. real quick, scott, i've got to ask you, you like jpmorgan, and teddy is staying away from financials. why jpm, scott? real quick. >> i'm sorry, cheryl, could you say that one more time? it's a little loud here. cheryl: i know i can hear it. jp mayor began, scott, last world. >> oh, yes. jpmorgan, i know teddy doesn't like the banks right here, i think it's worth taking a shot around the 129-130 level with a quick sop the on it. i love these overreactions, and i think this is one of them. cheryl:st the at 130 right now on your screen. scott bauer, teddy weisberg,

guys, thank you very much. appreciate it. >> thanks, cheryl. cheryl: all right. well, an avenger taking on the cyber verse as "iron man" robert cownie if jr. jumps into the -- downey jr. jumps into the cybersecurity space. his new blockbuster investment, that is coming up. and we're going to talk to billionaire pioneer gil sh with wed about the online are threats facing american governments and businesses from bad act ors in the real world. that's a fox business exclusive. back to the markets, again, we are sitting at session lows for the dow jones industrials, down 448 right now. "claman countdown" coming right back. ♪ ♪ you'll always remember buying your first car. but the things that last a lifetime like happiness, love and confidence... you can't buy those. but you can invest in them. at t. rowe price,

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cheryl: "iron man" is taking on cyberspace. robert doneny jr. has a new investment in cybersecurity start-up our a rah. the actor has joined the board of directors and launched a 10 is-year partnership as brand ambassador. aura has raised about $200 million in series f founding boosting its valuation to $2.5 billion. while "iron man" lends a hand to cyberspace, cybersecurity pioneer and billionaire gil shwed is here in a fox business exclusive to the give us a window inside how checkpoint software is working to safe forward the world's cyberspace. welcome, sir. it's good to see you, gil. >> hi. good to see you. good afternoon. [laughter] cheryl: so what do you make, first of all, i'll ask you about very famous actor getting into the world with of cybersecurity, online safety? is the space getting too

crowded, or do you welcome the competition? >> first, we welcome it. there is a lot of good companies and good ideas in our space. they don't compete with us. but our space is crowded, and is one of the challenges that companies have faced is way too many -- to choose for, and i think we will see a lot of consolidation many in our marketplace soon. cheryl: bill, i want to ask you about something happening ear in the united states that was pretty -- here in the united states that was pretty surprising. the fbi announcing late yesterday that members of the u.s. senate, members of the u.s. house, they were the subject of a hack attack. a health care company was broken into. but thing bigger picture concern and they've all been made aware, but personal records, social security numbers, mainly their the health care records were hacked into. if the u.s. government is that vulnerable, if the u.s. senate is that vulnerable, how safe can the rest of us feel ab online security? -- about online

security? >> first, we're all vulnerable, and government specifically is very high on the list of arguments being attacked. but this is actually a good example that you don't have to be attacked in order to be a victim because, actually, the company that was attacked was a health care provider and not the government itself, and i think our world today is very much interconnected, and we are all at risk even if we secure ourselves. we also have to make sure that that the entire ecosystem is being secured. cheryl: well, i think it brings up the broader picture, is and that's something that your 2023 cybersecurity report from checkpoint actually showed, was it still is health care is the number one target of cyber or criminals. why is that? >> health care in terms of ransom, it's a good target because the damage is high, and the health care providers are good targets but mainly, the main reason is that health care, the level of protection is kind

of limited. it's not great. and there's a lot at stake, and the systems themselves are very, very vulnerable. if you look at the hospital, it has hundreds of different systems based on very old computers that actually the quites that are within the devices of the hospital, and these are pretty easy targets to penetrate, unfortunately. cheryl: the other vulnerability that your research found was the education sector. what is valuable in education to hackers right now? >> well, education, by the way, very low investment in cyber protection. education in many cases especially universities and the high education tend to be more open than other organizations. and the actors are simply going where it's relatively easy to go to the. so i think the combination is dangerous. cheryl: so a new term that has been gaining ground and traction

in your space, in cybersecurity, is the term hackett visk. and there seems to be a rise of hacktivism in conflict zones, in particular in eastern europe. what are you seeing with those threats, and how can they be combated? >> so hacktivism is when hacking is combined with some, like, motivation, some ideological motivation. it's not new. it's the happened many years before, and actually what you're announcing is it's getting very professional when it combines even political like the ukrainian basically recruiting an army that can attack russia, and the army's not just based on people in ukraine, it's based on everybody that wants to help them all over the world. it's in many cases combines actually organization that even have financial motivation, but on top of the financial motivation, we also have some ideological and in many places

we see it in europe, in the middle east, we saw it in many cases in the u.s. so, like, all the forces are coming together. cheryl: yeah, interesting. and also i know the next problem tier is going on the, obviously -- frontier is going to be, obviously, artificial intelligence. gil shwed, it's always good to the speak with you, sir. >> thank you very much. great to see you. of. cheryl: all right. well, switching gears, january saw the largest monthly crop in construction jobs -- drop in construction jobs ever, so what does that mean to the company that makes the materials construction workers use? is the u.s. in the midst of a construction crisis? we're going to ask the ceo of -- north america, it's a fox business exclusive. closing bell is going to ring, we are now 38 minutes away, and the dow has really, really taken another turn down. in the last 10 minutes, we are now down absolutely at session

lows, 592, 593 points right now, s&p down 82, nasdaq down 2 the 5. you heard scott bauer at top of the show say a lot of traders are now talking about the a stronger than expected february jobs report. that would be a big market negative, and here we go with the dow down at one point more than 600 points. we're going to the stay on these markets for you. we'll be right back. ♪ ♪

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cheryl: new data out this morning from bank of america institute offering an in depth hook into the american consumer. bofa's consumer checkpoint report shows a substantial the uptick in spending in the services sector. as you can see, spending on airlines grew 21 percent year-over-year for the month of february. spending on restaurants grew 7% over the same period. but take a look what fell, spending on goods. in particular, furniture and home improvement. earnings from lowe's and home depot confirming that. so despite a slowdown many in housing and housing-related spending, construction materials maker saint gasbain saw record or growth in 2022. can it continue? joining me now in a fox business exclusive with the north america ceo mark rayfield. mark, thank you for being here. >> thank you for having me. happy to be here.

cheryl: 2022 was a good year for you, but what is 2023 going to look like? in an lists and economists say that housing in particular is many in a recession. >> great question. as you say, 20 the 22 the was a fantastic year for us, and the company really transformed over the last five years by row ate thing about $9 billion in turnover out into the company by getting rid of non-strategic, lower margin businesses and acquiring a lot of businesses in north america that were additive and margin add tiff. so concern additive. it's a transformed company going into 2023. i know you're a day data the-driven person, we believe the strong fundamentals, there's still 1.7 million homes under construction today which is slightly down from a month ago but still a very large number. there's 300,000 permits that have been pulled and not yet started, which is the highest number in 50 years. and there's a deficit of about 17 million homes that need to be built over the next decade to

catch all from the last decade of underbuilding and for household creation going forward. so on the new home front, the fundamentals are very strong, and on the renovation front you have a lot of people that you you know and i know that are in homes and mortgages 4%, about 73% of them. some have no morages at all, and they -- mortgages at all, and they will continue to invest within some degree to their home. the renovation and remold eling space is also -- remold el -- remodeling space is very good. cheryl: home depot and lowe's kid show us the window that that is lagging a little admit, and housing starts fell 4.5% from december. to january. and then mortgage demand, i mean, it bounced back, just recently bounced back, but it hit a 28-year low. >> yeah. so housing starts have drop down, but if you listen to some of the national home builders now, they're still seeing homes turn pretty quickly as they come

on the marketplace. so i think you have a buying public that is, has strong down payment ability, and that's one of the biggest hurdles in buying homes. and we'll have to make a decision to accept a short-term rate that's unappealing to find the home they want. i think the affordability is really not the issue, it's really a mental thing getting over the fact, which i think they've done now, is buying at the top and maybe fear of missing out and trying to buy something they love now and worry about the mortgage rate a few years down the line. cheryl: you refinance. i hate to -- you suck it up, kind of a simple 'em the, but you do. [laughter] you get the high rate now, and you refinance in a a couple of years. i mean, that's the layman's view. >> that's it. cheryl: i want to audiocassette to you about another big story and that is the work from home trend post-covid, that's still a part of a lot of cities' dynamic. in new york city we're seeing a

lot of office buildings being converted into residential spaces. does that help your business? >> it does. when you convert you have wall systems have to go in to, of course, separate the spaces, you have a special need for noise attenuation, so between ceilings and wall systems that we make, it will be key for those kind of renovations. so all those renovations both commercially and residentially help our products. we're two months into the year, and we're seeing good demand, and we're seeing demand that i think is better than most people thought in the industry going forward. cheryl: all right. well, it's the certainly an interesting time to be in the world of real estate, and there's so many tentacles to it, and yours is definitely one that is still growing. mark rayfield, thank you for being here, we appreciate it. >> thanks for having us. take care. have a good day. cheryl: and if you don't want to remodel your home, we are helping people find their american dream home. my show airs in the real estate block of pbn prime. -- fbn prime. it is the every wednesday night

right here on fox business. and there's a few of the beach episodes that we've been bringing you, we brought you those last night. and by the way, everything streams on fox fox nation. if you want to catch up, all three seasons are streaming right now on fox nation. all right. a fox business alert for you right now, markets are selling off at this hour. right now the dow, as you can see on your screen, is down 491 points, but at one point we were down more than 600 points, and that was just a few momenting a ago -- moments ago. we are seeing an incredible amount of volatility right now. if the s&p 500 is down more than 2% today, that will be the worst day of the year and also, not to put a finer point on this, but the dow jones industrials did go into negative territory for the year earlier this week, and we're staying there. just to explain this, again, scott bauer pointed this out, there's a lot of sense among traders that we're going to get that jobs report tomorrow, and

it's going to be the stronger than expected. and if you don't get a big revision to january, you get something in the 200,000 range -- the estimate is 205,00a negative. liz will be back on monday, maybe she can turn this around. [laughter] okay, some stocks we're watching right now, it9 city is falling after jeff jeff ilys double downgraded to underperform from buy. the firm side of the companies need to spend more on marketing as buyer churn increases. the new $85 price target slashed from $150, 'em plies that shares could fall if -- implies that etsy shares could fall another 25%. bloomberg is reporting uber is considering spinning off its freight if logistics division either via a sale or a separate publicly-traded company. the freight unit had $1.5 billion of revenue in the fourth quarter. according to the report, uber wants to to focus on ride hailing and on food delivery,

that is uber eats. shares of silvergate capital tumbling after the crypto lender announced it will wind down operations and liquidate silvergate bank. the happened very fast. the news comes about a week after the bank warned it may not be able to continue operating and following a series of financial challenges and government investigations. all of this was in the aftermath of the collapse of ftx which was a customer of the bank. take a look at all the cryptos right now, actually. you can see lower across the board for bitcoin, etherium and litecoin. so let's focus on bears and a green arrow on your screen. build a bear workshop is surging after fourth quarter earnings beat annual sales on strong demand for toys. build a bear workshop also declaring a special dave dividend of $1.50 per share payable to current shareholders

on april 6th. and look at build a bearment we need a little happiness and sweet kids on our screen right now, don't we? 23% and change is the upside move if on build a bear. well, the semiconductor shortage may be over, but now a new shortage could hurt chip companies looking to build up fabulous new fabs. we're going to take it up with the ceo of wolf speed. that's a fox business exclusive. taking a look at the big board, these markets have been incredibly volatile. it's one of those days, folks. the last 35 minutes are just a head-spinner. we're now down 470, we were down more than 600. i've got 25 minutes to go and as you know if you watch this show on a regular basis, you just never know what's going to happen. "claman countdown" gonna come right back. ♪ ♪ if your business kept on employees through the pandemic, getrefunds.com can see if it may qualify for a payroll tax refund of up to $26,000 per employee. all it takes is eight minutes to get started.

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cheryl: well, with the application process for chips and science act funding opening in weeks, concerns are growing that a national chip manufacturing expansion could hit a big bump in the road, the u.s. work force shortage. a new article from bloomberg looked at how the ultra-right the labor market could impact how quickly plants get up and running. just six months after intel broke ground at its ohio outpost, the company is scrambling to find workers. it plans to import at least 40% of its crews from areas outside of columbus. wolf speed is another company with big chip plans. in the last year, it broke ground on a fabrication plant in mohawk valley, new york, as well as the world's largest silicone carbide facility in durham, north carolina. joining me now in a fox business exclusive, wolfspeed ceo greg lowe. it's great to have you -- >> thanks for having me, cheryl. cheryl: thank you for coming to new york the, i'm sure north carolina is much prettier this time of year. i want to start with some news

that came out of tesla that actually your company took a little bit of a hit, or at least the stock did, when they were at investor day, one of the executives said they were going to be using 75% less silicone carbide. obviously, you recovered from that, but explain to our viewers what happened there, why you got wrapped up in that. >> well, basically, the demand for silicone carbide is skyrocketing right now, and we're seeing it, of course, in applications such as electric vehicles, silicone carbide enables a car to go further with the same amount of battery, so it's a big value proposition. and it's the opportunity for us is just getting stronger and stronger. i've had a number of calls this week with our customers and basically the feedback that i'm getting is we need more, not less. so, you know, there's just a surging demand. now, interesting yesterday i had an opportunity to meet with 500 or so application engineers from our partner arrow electronics, and these are folks that go and

design in silicone carbide and work with customers in broader application, industrial application, energy storage applications and so forth. and silicone carbide is now being adopted across a broader range of applications such as those things as well as, believe it or not, vacuum cleaners, we're designed into a vacuum cleaner which is kind of entertaining. silicone carbide's going everywhere. my viewpoint based on everything i understand from a tesla perspective is what they're doing is they're taking silicone carbide and actually taking it to a lower, more entry-level vehicle, a vehicle that's going to cost substantially less. my viewpoint is that's actually accelerating the demand for silicone carbide. of course, the power for that car is going to be less, so they're going to the use less silicone carbide in that car can, but it actually expands -- cheryl: interesting you say that, because there's a lot of pressure on elon musk to come up with a lower priced vehicle, and he did not deliver that. and his sock the actually got hit based -- can stock actually

got hit based on that news. nothing to do with you on that one. the chips action application -- act application process, the south korean government and officials are complaining about the process under the biden administration. they say that it's unfair, that they don't want to have to put money and guarantee there's going to be the, say, childcare for workers. an american worker would say, obviously, we need these thing, and we want to get more women back into the work force after covid. what do you make of the complaints from these south korean officials -- >> you know, i don't really understand where they're coming from. i would say that that you want to create an environment where with people are excited to be at work, where people can afford to be at work, you know, with children and so forth. cheryl: sure. >> we just had national women's day the other day and, you know, we as a company have a very, very strong affinitive -- affinity towards encouraging more women to get into technology and so forth. the last four year, around 50%

of our interns have been female. so engaging with universities and so forth to get that that pipeline stronger is a key thing. cheryl: getting women into s.t.e.m -- >> absolutely. cheryl: -- which is a very big movement and something i'm passionate about. i do want to ask you, let's go full circle, to the labor issue. are you having trouble finding people to hire in are you having trouble. >> we're putting our factory into production right now in upstate new york, in now hawk valley -- mohawk valley, and we've been very, very successful in i recruiting, you know, ex-military people plus university graduates up there. in north carolina we have a strong partnership with nca and t the university, one of the largest hbcus in the country. they're right down the street from us in greensboro, north carolina. cheryl: that's very exciting. jobs here in this country, i know you're expanding in germany, but american jobs, and you're finding workers.

that's good news to hear. greg lowe, thank you very much for coming in today. nice to meet you. >> nice to meet you too the, thank you. cheryl: moving to another story we've been following, silvergate capital not only digital the assets company that's in trouble. crypto exchanges may be facing a class action lawsuit. charlie breaks it coming up next. taking a look at the big board, what a day at the office. now we're going back the other direction. dow is down 522. we were down more than 600, so we're off of session lows, but anything can happen at this point. we're seeing a lot of volatility, excuse me, in this last hour. dow down 533. we'll be right back. ♪ ♪ is different than other money managers. (other money manager) different how? aren't we all just looking for the hottest stocks? (fisher investments) nope. we use diversified strategies to position our clients' portfolios for their long-term goals. (other money manager) but you still sell investments that generate high commissions for you, right? (fisher investments) no, we don't sell commission products. we're a fiduciary,

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♪. cheryl: well it has been a rough couple months for the crypto industry. now crypto u.s. exchanges may be in the cross-hairs. joining us with more is charlie gasparino. >> i don't put a lot of credence in potential class action lawsuits because it is almost a ambulance chasing business. i am on this one, give credence, the guy bringing the case, tom grady, he is the tom brady of lawyers that bring cases on

behalf of investors. he has been around for years. he has gotten in politics. gotten close to ron desantis. on florida education commission. for 40 years he has been bringing cases to wall street. from what we understand he is targeting the crypto industry i shut point out we did a full write up in foxbusiness.com. he put out a press release. i talked to him. he is lawnping an investigation looking for clients for a class class-action lawsuit against crypto exchangeses. >> coinbase? >> kracken. robinhood, a discount brokerage. here is his thesis. all these cryptos, 90% of them, 99.9% of except for bitcoin, maybe etherium, maybe not even etherium, they're all unregistered securities. if the sec wins the case we talked about john deaton, ripple case of sale of xrp, the sec can

go after any of these things as unregistered securities. they trade through exchanges. what he is positing, what he is going to posit in a likely lawsuit, he hasn't filed yet, put out a release about an investigation, if you're an exchange transact these things you're aiding abetting illegal transfer of a illegal coin essentially and that is where this thing gets really funky. what is interesting about class action lawsuits, again a lot of them are bs. cheryl: not all of them. >> you're right. some of them have incredible impact. i remember the enron class-action lawsuits against enron, brought in big firms, citigroup was involved, first boston, they were all involved, those things got billions of dollars out of the companies. they set precedent. they led to major stories about this stuff. and again, it was done, those

were done i about milberg weiss, ironically at the time was later on. but, it set, it had an impact. tom grady who is the tom brady -- cheryl: you still want to say tom brady but you're doing a really good job. >> he is the tom brady of protecting investors or bringing cases on behalf of investors against big firms, you have to see what he comes up with. i guarranty it will not be one of these things slapped together if he does bring a case. the full write-up is on foxbusiness.com. again, they do this stuff, a real lawyer brings these cases it puts pressure on the securities & exchange commission which is already leery about exchanges, crypto exchanges following what happened with ftx. one key point, robinhood had no comment, own base had no comment. kracken had no comment. in the past they said they done

everything legally. coinbase, are u.s. domiciled exchanges. cheryl: publicly traded. >> massive disclosure rules. that is in their favor. back to you. cheryl: charlie gasparino, fox foxbusiness.com the piece is up. >> yes. >> off he goes. charlie is i'm out of here. we're not down 600, i will give you that. we're down 494. the s&p down 67. nasdaq down 217. the dow is definitely in negative territory for the year. the bears are winning right now. investors are bracing for that big report tomorrow and scott bauer, i want to reiterate this again he said at the top of the hour, there is lot of talk among traders, that number tomorrow will come in hotter than expected. the estimate is for 205,000 non-farm payroll jobs but everyone is looking for a revision from january which was a very large number a big shock to the market. if that doesn't happen, you get

something above the 205, maybe 220, scott said, watch out. all the abouts are off. that is a big piece what is happening right now. banks, other financials are selling off as well. the losses pushed the s&p financial sector down 4% for the worst day since june of 2020. rob howorth manages 393 billion as senior investment strategist at u.s. bank wealth management. what do you say to viewers on a day like today when you see volatility that is really off the charts in this last hour? >> for us right now we've been a little more defensive in our views anyway. we still think we're in the middle of this chop period between 3800, 4200 on the s&p 500, we're waiting to see where does the fed, when does the federal reserve get to peak interest rate hikes? that is really what we think the market is waiting for. again, why everyone is keying so hard on friday's jobs report. is it so hot the fed will go

beyond current expected 5.25, 5.5% peak on the fed funds rate? will they have to go farther or is the economy actually slowing down? there is a lot of concern today that some stress, some of the news across the financial sector, particularly, may mean federal reserve doesn't have to do as much. that is why we saw rates soften here in earlier in the day. now the stock market is taking the brunt of that change as well. cheryl: interesting. you would think you would see reverse psychology on that. talk about oil production real quick. we have not looked at energy during the show. you're looking for opportunities in the energy sector. crude is at 75 and change. what is it that you're looking at? >> we're looking towards cash flow. we think across the energy sector especially for infrastructure in particular prices holding up at these levels are enough for companies to produce cash flow, pay us our

differ end dids, and that we can be paid to kind of wait here. we don't think we need a really bullish price scenario. although the challenge is, as we head into this summer driving season, inventories are slightly behind where they should be. we still have the strategic petroleum reserve to refill. so there is a little demand coming in here behind in the energy sector that could really help out over the rest of the year. cheryl: interesting. also, too, we have not really focused too much on tech this hour. the nasdaq in the red as is the dow, the s&p, but you think there is some opportunities in tech even with the fact we'll see more layoffs in the sector? >> i think in the near term it's tough story but as we look over the longer term the reality is there are, you know, innovation remains such a vital part of this economy, and we are seeing a lot of demand for growth, particularly across consumer discretionary, media companies,

and technologies as companies look for improved automation, a better online presence to enhance customer experiences, and then better analytics to better target their marketing dollars. so there is lots of room we think in longer term for innovation. in the near term that may be more challenged as we continue to deal with the federal reserve rate hikes. cheryl: rob hayworth, thanks for the commentary. we watch a market that had a rough 60 minutes. thank you, rob. [closing bell rings] major averages down as bells begin to ring. we were down more than 600. the dow dropping for the third straight day. that is it for "the claman countdown." "kudlow" is next. larry: hello folks, welcome to "kudlow," i'm larry kudlow. a lot of news today, but we're doing this special s