been 660 to the a 58% in just one year, these jobs reports are starting to hemorrhage. fewer businesses even take the survey, a lot of jobs are duplicated. so i can tell you right now this 9.5 million number is a lot lower hand that. to me, this is an economic sos. by the way, it's two months behind, so things are probably a lot worse right now. as far assed today's session, i really think it's an effort to jolt jay powell and company. i've seen this a million times, and it feels like the market tries to influence the fed. we'll see what happens tomorrow, and i know fed -- jay powell says he doesn't watch the moment, but he's -- the market, but he's watching, right, liz? liz: they get clues and signals, for sure. you so right. we begin with breaking news. just a day after analysts insisted that jpmorgan's dramatic weekend purchase of first republic would stabilize

regional banks, look at the stock market. s the recoiling from -- with fear from the mid-sized banks. hook at the markets at the moment lows of session. the loss at the very worst part of the day the for the dow was down 65 is. -- 651. s&p down 45 points or 1%, nasdaq down 114 or just under 1. russell 2000, the small and mid caps get hurt often on these types of days, it is down 2% or 36 points. so what constitutes an ugly rout? flint over, look at pac west, western alliance, comerica. pac west down 24 the %, it was lower by 35%. we've got western alliance, these are all, of course, regional banks, down 16%. comerica down is 11%, zions bank down 11%, key corp. down 8%. comerica and zion both are hitting 52-week lows. instead of providing ballast for

the ship, jpmorgan scooping up first republic and sparked investors to look for the next weak link are. basket of regionals is cratering. the r -- kre regionalsback etf plummeting to the lowest levels of october of 2020, down 6.9 33%, justh -- 6.9 33%. many of these banks have been caught flat-footed. fed chair jay powell has been very clear are, rate hikes to slay inflation will continue because the labor market is so incredibly right. but is it? the latest jolts data which counts job openings fell more than expected to 9.59 million. that's actually well below the 9.77 million estimate. now 9.5 million job openings, you could say still very

encouraging, but it is the lowest since april of 2021. pair that with sources telling reuters morgan stanley plans 3,000 the layoffs. the bank shares are down two percentage points right now bringing the two-day losses to just under 5%. and the market's seen an exmotion of headlines today about a.i. and the damage that artificial intelligence might do to the work force and is doing to some stocks. look at this, shares of digital textbook and tutoring platform cheg crashing to a 6-year low after ceo conceded on his earnings call last night that chatgpt is now having significant negative impact on new customer growth as students simply turn to the free chat pot bot -- chat bot more and more for homework help and guidance. hook at that, down a full 50 percent at this hour $8.75. and then we got a may or yo headline coming out of ibm. the company behind watson,

remember watson? it won jeopardy a couple years ago? well, ibm has struck a deal with a german software giant, sap, to embed wattton's seasonal into sap -- watson's technology to power its digital assistant a move they say will help human workers increase productivity. but how many jobs will it replace? we put that question to ibm ceo arvin krishna and sap if ceo christian kline. they are coming up at 3:30 p.m. eastern time. you'll only see them here on fox business. you know, too bad watson can't stabilize the stock or the oil markets. we've got oil getting sucked into the vortex. it closed out this afternoon i want to say, yep, down about 5.25% to to crush 71.66 a barre. dragging big oil, the refines, the drillers, the whole shooting match down with it. we picked and chose a couple of names. chevron down 4%. it is the bottom of the dow

jones industrials right now. apache down 7%. exxonmobil is swooning 3.5%. transocean down 3.25 the, ticker symbol rig. investors are fleeing the sector after china released data overnight that showed manufacturing contracted last month amid a cooling in the global demand for chinese-made products. guys, i mean, energy's the worst sector the, but every major s&p sector is down at this hour. we've got the fed announcement bearing down. let's get straight to the floor show. joining me now, robert heller and carnivore raid thering ceo dutch masters. robert, what are the odds that the fed looks at the regionals today and looks at the markets and looks at volatility the right now which is, by the way, off the highs of session, but it was spiking about 13%, and looks at the market swooning and decides, you know what? st time to pause if interest rate tightening? >> yes. i tend to disagree with you there, liz. you said it very well, but the

federal reserve has to balance the long-term inflationary pressures that they are facing versus the short-term solvency issues, liquidity issues at the banks. and if hay postpone -- they postpone is increase in the fed funds rate, they will not eliminate the need for it. so later on it will get much worse. and like we had it under chairman volcker, there will be a counsel-dip recession. double-dip recession. so i think the fed should go ahead and do it. liz: okay. can you just clarify one more time when you say "do it," what is "it," robertsome. >> increase the fed funds rate by 25 the basis points tomorrow. liz: you don't the worry that this is going to, when combined with all kinds of other issues like the regional bank problems, not to mention the debt ceiling bearing down, janet yellen is saying that now it's june is -- june 1st, a much more urgent

timetable than originally thought, that that's when the u.s. will run out of money to pay its debt obligations. we also have steven mnuchin telling a crowd in california this afternoon that congress must raise the debt ceiling very quickly. so you don't worry that all of these things combined could make for a pretty serious fed if accident? >> well, we have to come to grips with the inflation problem. we can't postpone the issues. we can't postpone the hard lifting of interest rates upwards. but we cannot eliminate it. and later on it will be much more ugly. liz: all right. we are just getting this urgent from chad pergram, our fox news reporter who's on the ground at the capitol the, u.s. senate republican leader mitch mcconnell says president biden has no choice between accepting the house bill or negotiating a deal with kevin mccarthy, of course, the speaker of the house. dutch can -- dutch, listen, it's

so much bearing down on markets right now. and then you have got to look at the regionals for the moment so much for all the analysts who said that the jpmorgan, you know, swooping in and pucking up first republic if for a song would stabilize the markets. what are you thinking? is there anything that makes stocks a attractive right now. >> well, i have, i have a real opinion on that which is, nice try, guys. [laughter] the jpmorgan move was a nice try, but you didn't fix anything, and we said that from the beginning, you really didn't step in and fix anything. i'm going to the talk about two things, the fed9 and the markets. i think fed is going to the raise 25 basis points, and then i think they're going to the talk very dovish. that's why we closed out our short position this morning, and we went long. we think we're going to go long. we vent very -- went very long in the technology sector. and i'll tell you, i don't think that the s&p is going to go much

below 3800. and i'll tell you why. 25% of the the index is technology. apple and microsoft, 13, 14% of that index, and the bottom line is if you don't have those stocks go down, the s&p's not going to go down. and those stocks have already done the hard work, they've already cut a million people, they're going to cut a million more, and their earnings came in pretty good, a little soft, maybe growth is a little slow, but that is not end of the world. as for the banks, yeah, there's going to be more broken banks, and that's going to be an issue that -- [audio difficulty] they need to step in. liz: well, yes. the last time we talked though you were short s&p, i think by -- >> yep. liz: -- you had a huge chunk of all of your money poured into shorting the s&p. you're saying that's changed. are you still long nugget? you still long gold minersesome. >> yeah. we're long the gold miners, and we're short the market through

drv which is an inverse etf shorting the commercial real estate market. liz: well, that brings me back to you, mr. heller. the real estate, commercial real estate market is stumbling, at least certain parts of it. we're talking office buildings and perhaps shopping centers because buildings are half to a quarter full. and that could be the next leg that could, the next shoe to crop off the leg. [laughter] so what is your thought of what goes on in that meeting tomorrow that they will signal a pause many in june? >> i, first of all, hope that the fed stops signaling. they've been signaling so much, people running around waving their arms -- of. [laughter] >> good, i hike that. >> telling us inflation is well anchored and other things that never came to be true. the fed should just stick to the fed acts and do what it needs to

do like volcker used to do quite a few years ago. liz: yeah. well, what do you think of our mr. heller, dutch? he kind of called it right, didn't he? >> no, i love that. i totally agree with him. st the, like, stop having 12 people run around saying different stuff. i totally agree. liz: well, or we'll hear what they say to. guys, we cannot stress enough that we will be carlying that news conference live -- carrying that news conference live, and i wish you guys were in as reporters hammering the fed on all the questions we need to ask. but we've got our own reporters there who will be killing it as well. robert heller, dutch masters, thank you so much. >> thank you, liz. liz: with the u.s. set to to end the covid-19 public health emergency next week, the blockbuster question investors want answered now, what does pfizer have in its pipeline to replace the windfall it got from its covid vaccine and paxlovid? pfizer ceo 58 bert boar allowins

us live next. the dow is still losing around 35 51 point -- 351 points but off the lows of the session. don't go away, we've got to see where this one moves. ♪ ♪

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liz: a beat on both its top and bottom line not enough to lift pfizer's stock which is moving low lower by three the-quarters of a percent. the revenue and earnings while they did beat were down a third from from a year ago. why is that the? sales of covid's vaccine plummeted 75% compared to the same quarter last year.

and while sales of antiviral or pill paxlovid jumped 2.8 billion year-over-year, pfizer kid the say that it sees paxlovid revenues for 2023 of approximately $8 billion, that is down 58% from last year. as pandemic gets further in the rearview mirror, what's the next big thing for the big pharma company? we want to bring in the chairman and ceo, albert bourla. great of you here. listen, the covid vaccine was a lifesaver, but now you're anticipating cover all revenues to declean year-over-year. what is -- decline year over year. what is pfizer's plan cho to change the narrative in 204? >> thank you for having me. our mission is to make breakthrough that saves patients' lives. so that's what we continue doing, and that's what we plan to do. we, as you know, we have announced a major acquisition of a company called citizen.

s the a proposal acquisition. it is still under regulatory reviews. the company has a technology that's called adc, what mrnas are for vaccineses. you can use the technology to attack cancer cells of different types. so cancer is one of the fastest growing therapeutic areas, it is a concern for every household in all, every single corner of the world. and pfizer's committed to provide the solution as we did during the pandemic. liz: i know it's a hong way off because there's so many steps to take, but could it be a blockbuster drugsome. >> oh, yes. and not only one, many. many. they have four drugs that have been approved not long time ago, and eleven major projects in their pipeline, ads, with this edge. imagine the capabilities of pfizer and expect wonderful job that the people of citizen have

cone, but now the capabilities of pfizer with the scale-up in manufacturing, clearing of development, medicinal science, i think we can make a huge difference in the -- [inaudible] liz: there are people watching right now who east have cancer or have is lost somebody they love to cancer. so they're waiting with baited breath. but this approval process of the fda having to go through so many steps, you know, we look back to operation warp speed which eliminated many of steps so this country could very quickly come out with a vaccine which you and moderna were able to do, and that was a heroic move. do you think that that we need to move forward with being like operation warp speed for therapies for very, very difficult diseases like cancer and ahs? -- als? >> i think so, i think so. if everybody's asking if we were able to do it for covid, why not for cancer? why not for alzheimer's, als? i think we need to learn from

everything that went well during covid and, of course, everything that didn't go so well during covid is. and then improve our processes so that we can bring way more medicines faster to the patients that need it. liz: well, senator gillibrand of new york state is trying to push through legislation, and she's introduced it, that actually could accelerate the fda's drug approval process. are you part of those conversations? >> we are discussing everything that has to do with -- on health. although we do not take position here, on the two sides of the aisle, everything that can enhance the ability of science to bring medicines to the world is something that we support. liz: you know, we talk about diseases and problems people face all the time, migraines. you've got two drugs, one is nasal spray for migraine, another is the odt which you got through the acquisition of

biohaven. i would think that those could be real winners. can you talk about the future revenue that those drugs might be able to bring as a windfall for pfizer? >> oh, i think they are winners, the first one alone has made the huge, tremendous difference in the life of people. it is a life saving event when people are taking this medicine. and that is seen in the way that it is prescribed right now, ands the endorsed by patients all over the united states. now we are bringing another one which is for more acute cases, and i think the two of them can make a huge difference. we spoke at the acquisition could bring $6 billion of revenues. liz: $6 billion in revenues. i knew there were a lot of people out there -- [laughter] i know some of them who get migraines. albert with, please come back. we want to continue to follow the cancer story, the biohaven therapies that are coming out. we really want to continue to bring that story to our viewers.

>> absolutely. thank you very much. please forgive me the -- thank you for giving me the sage to communicate with your viewers. liz: oh, it's a pleasure. we have coming right back with much more ahead. still red on the screen at the moment. ♪ ♪ (vo) verizon small business days are back. april 27th through may 3rd. get a free tech check and special offers. like a free 5g phone. get started today with verizon business. it's your business. it's your verizon.

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we have got the s&p down 44, the nasdaq losing # 17. 117. well, this is interesting, the shoe is on the other9 foot for activist investor or carl icahn at this hour. the stock of his icahn enterprises is dropping 20.25%, touching a 3-year low after famed short seller hindenburg research said the company is overvalued and that icahn is operating a, quote, ponzi-like economic structure. icahn enterprises issued a statement denying hindenburg's short selling report and said, quote, we stand by our public disclosures. investors are sipping up molson coors at this hour after the brewer posted first quarter profits that more than doubled expectationses. that's good enough for a 7.5% pop here. sales also topped expectations, ruing more than 6%. -- rising more than 6%, benefiting from price hikes and continued demand for brands across its portfolio including

newer, innovative lines simply if spiked. uber getting a big lift after reporting first quarter results that beat estimates. it's jumping 10.6%. while the ride-share giant did post a loss of 8 cents a share, i mean, the company is not profitable, it was slightly nay narrowerrer than the 9-cent loss expected. revenue did decline to 8.82 billion. the ceo crediting artificial intelligence for uber's strong start to the year saying uber's use of a.i. to predicting quote, highly accurate arrival times for riders has improved the user experience. big move for uber. but will a.i. improve the workplace experience? a major announcement by ibm and sap indicating the two tech giants willing -- to bet on it. sap will infuse watson into its suite of software as a money and time-saving digital assistant.

but what about the human assistants and workers? next in a fox business exclusive, ibm's ceo and sap's ceo discuss the deal and its consequences for both business and employees. closing bell, 32 minutes away. i'm watching the nasdaq here. it is down about 1% at the moment although well off its lows of 197. it is down # 18 at the moment. we're coming right back with ibm and sap. ♪ good luck. ♪ ♪ dad, we got this. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones

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civilization if taken so far that we eventually forget how the a machines work. and ostensibly they then control us. that's not holting -- holding back the rise of a.i. with microsoft and google diving in. but before there was bard from google and chatgpt, there was ibm's artificial intelligence tech watson. and today sap and ibm announced they will infuse watson's a.i. engine as a digital designed to save workers time and the company money. joining me now in a fox business exclusive to to talk about what watson will do for sap employees but also to address the potential of a.i. to replace jobs is ibm's ceo arvin krishna and sap ceo christian kline. welcome, both of you x and con graph alations on the keel. arvin, people know watson as, you know, cognitive learning

machine that won jeopardy so many years ago, but this is a whole new level of capability and application for a global tech company like a -- sap. how did the deal come about? >> so, liz, it's a pleasure to be here with both you and christian. watson has come a long way over the last decade. if i look at it today in the context you're talking about, using watson's natural language capabilities combined with sap's business process expertise and then unlocking that so that people can begin to leverage the a.i., to make the sap users, not just employees, a lot more productive, leverage questions in natural language as opposed to having to know where things are and to really help them launch into all of the sap cloud applications using watson embedded inside sap products is why we are so excited. we really believe this'll make life a lot easier for the users or allow them whether they're looking for a purchase ore or for buzz trip planning to make

them -- business trip planning to make them way more productive. liz: christian, i'm hearing this is going to help productivity. it's almost like a digital assistant. time is money and, obviously, every company wants to, you know, save money as far as partnership is concerned. walk us through exactly what watson will do for your staffers at sap. >> yeah, happy to do so, liz. and i guess the partnership could not come at a better time because you are spot on, every ceo, every cio is looking for further productivity gains, how to improve margins and profit especially in this environment. and what we are doing together with ibm if watson, i mean, our software is powering 80% of all business transactions worldwideful and imagine -- world wild. and imagine how many millions of venues are asking for certain information. work flows out of the sap system and with ibm watson and the digital assistant, or we are

changing the game with regard to working with our software. so you can ask the software any question for a p and l department, for a workload, you can ask for predictions about the demand and if there is enough supply in the company. so it it will really change the game on how to work with our software and boost the productivity of the end users and, finally, our end customers. his liz arvin, when you're making a deal like this, upon what do you draw as far as input is concerned so that watson can hearn and continue to help but also, as we say, cognitively grow? >> yeah. so, liz, a big part of what really brought us together was our focus on enterprise a.i. as opposed to only consumer a.i. and by enterprise a.i., we have to commit hard to christian and to the sap engineering team that the data that is being used on behalf of a client remains -- there's no learnings from there

that go elsewhere. of course, we expect sap, they're a demanding engineering company, so they would always want to work with their engineers to know is what we're offering extremely good, is it best of breed, can it perform in the environment, because it have the user experience that their end users want. so we kind of work together with all of that, and the engineers came together and agreed, yes,es this is a great path forward. and, of course, we have to commit that we keep improving it and all those improvements flow back into what sap is using. and one final piece, we have to be careful, many of the users don't really want their transactions floating out there i'll call it in the wild. we do need to provide the protections, the privacy and the security that all of the sap users with mission-critical applications are used to. and that's kind of where the engineering partnership of two hike-minded companies comes together. liz: christian, i'm very curious about the financial structure of this deal. how do you put a price tag on it when you're negotiating with

arvin and the gang at ibm when watson, by definition, is a learning machine and you want to wait to see what the payoff is? [laughter] >> actually, you can, of course, you know, understand that we cannot go into every detail. but what we want to make sure is, of course, that we can, of course, offer to our current customers, you know, contracts which are embedding irk bm watson and our sap software on one contract, many one commercial deal. and, of course, what we also kid is we compared our market price to others and, of course, we also insured that we can offer that at a competitive price, at a very competitive -- for our joint customers. liz: arkansas arvin, let me bring up the machine-made elephant in the room. obviously, everybody's worried about their jobs in this new a.i. world. yesterday you said that eventually would -- you would see a.i. replacing 30% of your

non-customer-facing jobs that you have at ibm within five years. can you give us a number of how many non-customer-facing jobs you havesome. >> yeah. so yesterday i did say we have about 26,000 of those roles, and if you can see it two ways. one, we do want our company to grow, so as we grow, you would expect those to the increase, so a big part of the decrease will be a lack of increase. and also we have, as many people do, close to 10% i attrition in the work force. i do believe, and i've said this before, that a.i. is going to replace many clerical white collar jobs, and that's the kind which i expect a.i. will replace over the next five years. but it's not if as -- as simple as jobs go away. perhaps in customer care, in coding, in business process and developing artificial intelligence is going to increase so much that the net increase is going to be positive while there's a movement from one area to the other. and that, by the way, has been the nature of technology for 250

years. liz: but you -- >> in some areas, gets better in others. just. liz: just today we hear that cheg, the online educate thebook company, says the absolutely seeing a negative impact from chatgpt. here comes watson, arguably much smarter in many ways when it comes to business to business type of operation, and they're simply wondering, you know, i'm fearful of losing my job. christian, have you modeled for what kind of impact it might eventually have on your work force? >> i mean, liz, you know, talking to our customers and, of course, also applying to technology inside sap, what i can tell you most of our customers use our embedded a.i. which is built for businesses actually the not -- the costs and and head count proportionally to the -- on the top line. so we talk with our clients about how to the help them to put out share service, now, of course, a.i. can take over such

a lot of these activities. if so it's about cost avoidance. and hen the second part is as long as you have the growing business and you are transforming your business, you need different skills. so this also allows you to reskill your work force, not to just, you know, cut your work force. liz: do you foresee, arvin, a future where you may have half the number of workers at ibm that you do today because of a.i.? >> no, i would rather, liz, go the other way. maybe the our business is priced to to size -- only slightly more workers, not twice as many. i think that's much more likely. and this is what i go. to people who face up to our clients, our customers are going to be needed. it's the much more the back office whether it's data entry, whether it's doing routine, repetitive work, those are the things that a a.i. is going to help automate at least over the next decade. liz: i want to thank you both so much for coming on here exclusively to unveil this partnership.

it is a major deal when it comes to big tech, b to b, a.i. and all of the developments around it on a major day the for you. so congratulations and thank you, arvin krishna and christian kline. thanks to both. >> thank you, liz. >> thank you. liz: dow jones industrials down 376 points. we are getting ready for the big interest rate decision tomorrow, gaming out fed day with bond behemoth deputy chief investment officer jeffly sherman. this as bond yields -- jeffrey sherman. this as bond yields plummet. that's next. ♪ >> woman: why did we choose safelite? we were loading our suv when... crack! safelite came right to us,

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hi, i'm jason and i've lost 202 pounds on golo. so the first time i ever seen a golo advertisement, i said, "yeah, whatever. there's no way this works like this." and threw it to the side. a couple weeks later, i seen it again after getting not so pleasant news from my physician. i was 424 pounds, and my doctor was recommending weight loss surgery. to avoid the surgery, i had to make a change. so i decided to go with golo and it's changed my life. when i first started golo and taking release, my cravings, they went away. and i was so surprised. you feel that your body is working and functioning the way it should be and you feel energized. golo has improved my life in so many ways.

i'm able to stand and actually make dinner. i'm able to clean my house. i'm able to do just simple tasks that a lot of people call simple, but when you're extremely heavy they're not so simple. golo is real and when you take release and follow the plan, it works. liz: securities and exchange commission chief gary gensler may have political aspirations in his future. charlie, what's the scoop? >> for some reason it's hard for me to the picture gary gensler shaking hands with a lot of people and kissing babies, but -- liz: why? he's a nice guy. >> i know he is, but he's not -- isn't a warm, avuncular type person. it's increasingly clear that he's not going to get the treasury is secretary the spot. janet yellen's going to be there amid a banking crisis, it's hard

to change horses in the middle of a banking crisis -- liz: and a debt ceiling. >> we've got to get through that. the likely replacement for yellen, still the name you hear is secretary of commerce gina rah mondeaux, considered a rising star within the administration, has business experience. not a bad choice. he wouldn't be a bad choice either, goldman sachs, mit, smart guy, sec chair. on top of that, so if you start thinking the through, he's a maryland resident, and this is where the speculation goes. ben cardin, the senate from maryland, has announced that he's not running for re-election. of and guess what? the rumor mill is now picking up once again -- this happened before, by the way, people have talked about this in the past, that gary gensler, who does have aspiration, he's an ambitious guy, will run for that seat. we did put a call in to the sec to get a comment, we've not heard back from them. as soon as i do, i'll put it out on twitter -- liz: do you think they're going

to reply? [laughter] >> i think they might say the usual b.s -- >> liz: he's focused on the sec -- >> no plans another the anything else, i got that, but i'll put that out there, maybe he is. but there is no caught, i'm hearing this from multiple d.c. sources that he wants to do it. the question is, is he the type of guy that can make that jump from sort of bureaucrat to maybe senior bureaucrat, sec -- liz: it's been cone before.. -- cone before. >> who? liz: oh, i was just throwing it out there. i thought you'd know. [laughter] >> who's the last sec chair that that became a senator -- liz: oh, not the sec chair, but a bureaucrat. [laughter] >> we do have a, we do have a real estate developer that became -- liz: yeah, we do. he might become president again. >> we sure do. >> there are stranger things. you get the party behind you, it's kind of, it's a blue-leaning state the, obviously.

larry hogan, i know, won the governorship, blue-lean aringing state. you put it together, there is some logic here. again, i can't see gary gensler hugging and kissing babies. one other thing about his political future, the republicans -- he doesn't have a lot of friends on hill and in the business community. his changes to market structure that he's planning is being pushed back by just about everybody or from even, like, firms like blackrock which are - liz: why not jamie dimon for treasury secretary? >> yeah. you know why? why not harry kink? liz: they don't want to -- harry fink. >> -- larry fink. >> held tell them what they don't want to the hear. if you listen to janet yellen, i feel bad saying this about an old or lady -- liz: what? >> she's been very, very ineffective because she's a bure california i just feel bad criticizing it. liz: she's a lady? >> i do have feeling. liz: just criticize away no

matter what the gender. we're all treated equally. >> i know, but it's just the way i was brought up. liz: okay. >> but i feel badly saying this about her, but she is ineffective and inept and not good at her job, okay? and she's a yes person to the biden and his spending mans. jamie dimon and larry fink will say, no, you know? you can't spend that. they would say the student loan thing is a blowout that you don't need right now. they would probably say the inflation reduction act, you know, prime minister, it's not reducing -- mr. president, it's not recushion anything. i know that's what larry would do, so they ain't getting this job. you usually get in this job bureaucrats. gina raimondo is considered a very formidable person, she may be much more of a mold of the jamie dimons and larry finks. not totally. those guys are, like, entrepreneurs. larry fink started his company from zero, built it. you don't tell people like that

what to do. they kind of tell you what to do. same with jamie. jamie's been up and down on wall street and built a great bank. buying first republic recently, as you know. so i don't see them as taking that job. but that that as it may, gary gensler is an ambitious dude. politics is probably in his future show somehow -- somehow, doing something. the sec might be his last stop in the biden administration. and we've got this little senate seat -- liz: i'm being told that there's some babies on the phone, they would not mind gary gensler kissing them, so -- >> you know are -- liz: you don't see it. >> i don't know what babies -- [laughter] those are babies with a high tolerance for pain, met me tell you -- liz: you are one to talk. i'm sure they just come running to you. charlie, thank you very much. we've got some breaking news with about six minutes to to go before the closing bell, the senate banking committee just announced it will hold hearings on the recent bank failures, and those hearings will be held thursday.

the committee web site says it will be holding executiveses accountable after recent bank failures. stocks have been cratering more than 1%, but if you really look at the region regionals, they have been in serious trouble all day long. and you can see pac west western alliance down 16%. go down the line, comerica, zions keycorp. they're struggling at the moment. doesn't help whether some bank failures or first republic, silicon valley bank, signature, some cases top executives were selling stock before the troubles came to light. all right, either way if you are not right here with fox business tomorrow you will miss what could be the most important fed announcement in years. the fed's interest rate decision hits at 2:00 p.m. eastern tomorrow. charles payne will carry that. the fun really begins when jay powell's live news conference starts, 2:30 p.m. eastern spills right into

"the claman countdown." we'll at the same exact time correlating all kinds of market data on the screen how it is affects what he says. fewer than 24 hours before the highly anticipated announcement the bond market sending off pretty serious signals. here to read them ahead of the fed, jeff sherman, chief investment officer of bond giant doubleline. great to have you back. five minutes before the closing bell. the two-year-year-old tumbled below 4%. what is that telling me right now? >> it is telling me that the bond market thinks that the fed is too tight. that is what an inverted curve signals. we've been saying for a while how challenging the jay powell to go up if the two-year is below 4% and they're talking about hiking rates. that being said, 86% hiking tomorrow. the fed will deliver on that, because they don't want to upset the market whatsoever. we're arguing if bond market signal they should cut, maybe

she shouldn't hiking at this point. remember jay powell will walk up there, talk about inflation, employment cost index. signs of inflation is rolling over but in general he wants to be adamant about being and inflation fighter. so they will deliver the hike. the bond market says this is the last hike at the end of the cycle. at some point they will have to start cutting. liz: what is the trade, jeff? last time we spoke you are buying longer dated treasurys, are you still? >> we haven't really changed our positions since the last time wechatted, liz. that is kind of interesting, if you think about this is right back in the teeth of when the new facilities are being created by the fed. we since had another bank failure yesterday. you were talking about the regionals being under duress today. i think the markets is now circling around these other regional banks, saying which one is the next shoe to drop? so ultimately, you know, our position hasn't changed much in the last six or seven weeks. as i told you last time i was on, effectively we were talking

about buying longer duration assets to try to insulate a piece of our credit portfolio. we still think the trade is staying up in credit quality. the crisis is not behind us yet. you can see it today. there is blood in the water once again. liz: yeah. >> so ultimately until we get to the end of that you want to stay up in quality, you want to continue to have that. given where rates are in this range, it doesn't make sense to us to be adding to duration in this position. liz: yeah. >> we'll see what jay has to do with the dance tomorrow. liz: listen, i'm not one to hammer on people when they make, when they make comments that come out wrong the next day but david smith, who is analyst for banks yesterday right here on the show had said, oh, the reason that some regionals were down slightly yesterday because they did not win the first republic auction. but that is not the case. i don't, he is not the only one. so many bank analysts, jeff, oh, this will stablize the system. why should anybody listen to

these people? >> well, i mean, look, this is part of the mantra on wall street. no one wants, no one wants to predict the next negative thing to happen here but ultimately what happened in the marketplace once first republic is gone the market will sense out who is the next weakest link. so far the old story there is not just one cockroach. we got rid of a few cockroaches but the problem is there are a few more on your list. you listed them off this morning. we'll have to see how this week holds up. this is the challenge that jay has, remember the fed is the regulator of these banks, right? we had a scathing report they were lax on regulation and now we have a problem. it will take something to save all of this. just because jpmorgan buys first republic doesn't mean we're out of the woods yet. we think it is important to stay high in quality, be defensive right now. you don't have to run for the hills but this is not the time to be stretching your portfolio and taking more risk.

i disagree with the banking analysts that this is all behind us. i think there is more to come. we have to be very cautious in the interim. liz: we have 10 seconds left. a quarter of a point tomorrow. will they calmly signal there will be a pause in june? >> i don't think they will calm. they want optionality. i thinkth done at this point in the cycle? does it matter? it doesn't. liz: jeff, thank you very much for joining us. here we go. markets finishing in the red, off session lows though. dow jones industrials off 364 points. [closing bell rings] nasdaq a little deeper into the red down 133 with the s&p down 4. you have to -- down 48. you have to be here tomorrow as we break down the fe