with all that cash. fed admits that their monetary policy is not audited. of course, it's one thing to demand audits and know that it will be done effectively. one of the sad lessons we're learning this week comes from the great financial crisis when all of hose big accounting firms rubber stamped all that wall street garbage that was going into these packages, they were giving them aa status. -- aaa status. we found out svb, signature bank and first republic all had one thing in common, kpmg. the post postmortems on that accounting and auditing stuff after the great financial crisis that took a long time to come out, i'm not saying anything question their -- nefarious is happening, but the coincidence is worrisome. we need to audit the fed e and find a way to audit the auditors. enjoy this last hour of trading -- liz: you should keep talking, we were just up 620 points -- charles: it's called the cp effect, i've tried to tell you. liz: you got it.

breaking news, what goes down is now going up. folks, as we kick off the final hour of trade, the markets are very close to session highs, and while they move up, jaws are dropping on wall street as the regional bank sector does concern i mean, this is insane, yet another loop. the worst-hit bank yesterday pacwest is doing an absolute moonshot, trading has been halted 10 times. we've got it up 85% right now, that is a record 1-day gain. if you stretch it tout to a 2- day picture, just yesterday it touched a record low. look at this 3-day chart as you see, i mean, it's pretty stunning after pacwest confirmed it was exploring strategic options including a sale. it took a brutal thursday thrashing which chopped 50% off its value. that's all erased today. but pop that you see now, or it's on no new news. you cannot say same for the markets. with the dow very close to the session highs, up 584 points,

the s&p up 80, the nasdaq zooming higher, these are the first upside moves for the three indices this week. now, if you stretch the it out for the whole week, look at the, the dow can's tuesday loss of 367 points was the worst of it. wednesday's 270-point drop came after the fed tightened interest rates for the enth time in a row, and -- can tenth time in a row, and yesterday the regionals debacle sliced another 287 points off the blue chips. the news bringing out the bulls, hands down it is apple. look at apple at the very top of the dow jones industrials, a gain of about 5%, let's call it that, after the tech giant beat on earnings, revenue and iphone sales. investors really don't seem to mind that mac and the ipad revenue missed or that the overall revenue of 98.4 billion is the second quarterly drop in a row. you can see disney is second in place here at the top. chevron is up about 3% after

that. american express, a nice move of 2.7%. then there's the robust april jobs report. a stronger than expected 253,000 non-farm jobs were ad to the payrolls -- added to the payrolls while the unemployment rate dropped from march's very low 3.5% to 3.4% april, tied for the lowest rate since 1969. driven in part though by 43,000 people leaving the work force. immediately treasury yields surged by 10 basis points apiece. they're moderating just barely though, the 10-year is at 3.44%, the 10- 2-year markedly higher than yesterday perhaps on the belief that the goldilocks jobs report we just got means a soft landing for the economy? if what because the that mean for stocks? joining me now, head of global research at bank of america securities ethan harris and fitzgerald group principal keith

fitz-gerald. ethan, look at the markets right now. what is at the heart of this if a strong jobs report normally would mean the odds of another rate hike are now higher because the economy's still running hotsome? >> well, i think you can always interpret it who the ways. on the one hand, the report's telling us we're nowhere near a recession, that's still very much a forecast and not a reality. but as you point out, it also keeps the fed in play. i think investors are thinking threshold to get the fed to the hike again is quite high, and this doesn't quite meet that. the other story i'd say is you talked about the pressure on regional bank with stocks. remember, they sold off on virtually no information earlier in the week, and now they're rallying on almost no information. it's a very speculative market, obviously, right now. liz: i'd say. in fact, there is a lot of talk the, keith, that regional banks are now new meme stocks. all you have to do is look at the 2- day charts of these things. i mean, yesterday zions bank and

comerica were down something like 8%, now they're up 12%. pacwest, obviously, western alliance. these are huge moves in opposite directions. a too dangerous for you to dive in the here? >> well, they're not too dangerous if you to know what you're doing, but they're socks that i don't care to touch the right now because of the quantitative underpinning s of the marketplace. this is like going to las vegas and spinning the wheel, you know? i don't care to play that game. i want to take dips and look for great big names that have been beaten down, they're putting up great numbers. apple the the playbook today. liz: yeah, okay, apple. exactly, you look at it, and it is dragging everything up because, of course, it is the most heavily waited on -- weighted on the as much -- on s&p. very important name, it's up $8.27. keith, was your chance to buy it yesterday or the day before versus today? >> wail the, i don't think today's a bad deal. i mean, you're going of some volatility because computers are going to take it the other way

as soon as we're done talking, liz. but longer scheme this thing is still on its way to $200, it is still undervalued. the if you look at the move into india, into personal finance, i think this stock is going to be substantially higher several years from now. so, no, i don't think today's too late at all. liz: ethan, is today too late to to turn around and say, oh, now the federal reserve concern you just referenced that the bar is very high for the next rate tightening. obviously, that would be the 11th which is the highest and fastest of a rate-tightening cycle in 40 years. but what happens with the stock market each time we get a stronger consumer price index number, of course, the consumer inflation level? does the market tank if it's too hot? today it's a good number for jobs. >> yeah, i'm concerned going forward. i mean, what bothered me in today's report wasn't the strong payroll number, but it was the strong wage number which is telling you that the labor market is not cooling off.

another low in the unemployment rate, the lowest in five decades. this would all be great news except i don't understand how this is sustainable. the fed has to get inflation under control. the problem with supply chains seems to be fixing itself, and so that's not a big inflation concern any longer. but the labor market is completely out of balance, and so they're going to keep their foot on the brake. they may not tighten again. they're certainly not cutting anytime soon. i cannot percent the life of me understand i -- for the life of me understand why the bond market thinks the fed's going to cut at the first sign of weakness. liz: september, still about 51% odds that -- [laughter] we'll see a 25 basis point cut, that's the fed if funds futures, the market's sort of mechanism where it gets to bet on what the federal reserve is going to do. keith, we got some pretty interesting stock stories x the regional banks, one of them you've absolutely loved here and that is tesla. suddenly popping up about 5 plus

percent. the headline here is thats the raising prices in china. i mean, if it's tuesday, are they raising and thursday they're dropping prices? i don't know. [laughter] but, boy, is this a sliding scale. yeah, right now moving up by 5.6%. >> well, but again, remember, volatility's the life blood of profits, right? and you can take two views. you can either say this is negative and go hide in a bunker or you can say it's positive and harness it. i'm with the school of thought that's going to harness. i think as much as we all love to hate china, the fact that they're increase -- they're increasing in china, that's a positive. it's going to be volatile but a positive nonetheless. caster charles -- liz: i agree. i was listening to to the gary kaltbaum earlier, and he said it's a great day when this country has huge job expansion. that's not -- >> bingo. liz: concern a bad thing, certainly. so, ethan, where to do you like the portions of the market that

are most fertile, in your opinion? >> yeah. i mean, i don't call portions of the market. i would say i'm most worried about parts of the market that are depending on the fed coming to the rescue in the case of a recession. you know, a lot of this resilience of the equity market is because they've kind of accepted the idea that there's a decent chance of recession, but then there's this sense of consolation, oh, well, but then we'll get lower interest rates, and things will be fine. i don't think that's right. and so, again, a i'm not a stock picker, but i think anything that's -- anyone who's trying, is making that kind of assumption for their sectors is probably too optimistic. liz: yeah. well, i would say and i'm looking at the sectors at the moment, the market is moving incredibly fast, folks. the dow up ab even 602 the points and climbing right now. this is one heck of a rally, keith. is there an underloved sector or

segment that you say is really time to look at with a much clearer eye? >> well, tech, for sure. and, you know, this is -- people still don't understand the impact that this is having on our world. and to ethan's point, you know, if you focus on specifics, tech does not depend on the fed, contrary to what a lot of people think. they're putting up great numbers anyway, despite it all. that, to me, is an illumination and a sign of strength no matter how bad the headlines get. liz: listen, i'm going to call an audible here, but you've got to punch up the vix. it is plummeting. meaning that it is a risk-on atmosphere right now. ah, thank you, team. this is awesome. we've got it down 16.6% at the moment. folks, you can interpret that to mean that people are diving into stocks right now. certainly a day of momentum to the upside. it's kind of obvious, liz, but i think what isn't obvious is the fact that tease regional

banks -- these regional banks can be very dangerous because they are spiking today, they were a disaster yesterday. and you can see right now, i mean, look at this gain for western alliance, up 45%. truist, up 10%. we already talked about zionss and comerica. again, we have an eye on the markets. thank you both so much for opening our eyes even more to some of the individual stories here and the narratives for it. one thing missing in apple's earnings that we didn't actually talk about just now as apple soars on the stock market right now, talk of a.i. is apple blowing off the artificial intelligence craze or just keeping its own plans on the down low? venture capitalist and star of the all in cast david sacks has a totally different take on a.i. and the stocks that are swirling around it. and worries that it could be a job killer. 3:30 p.m. he joins e ex-- me exclusively on that and whether the regional bank crisis is worse or better than it looks.

david sacks is one of those voices that everybody listens to the, or should. a surprise profit paired with a surprise loss? warner brothers-discovery shares all over the map today, down more than 2% earlier, and at this hour up nearly 4% after the media company report reported a surprise loss and a surprise profit. its streaming unit swung to a $50 million profit in the first quarter compared with a $654 million loss a year ago. but overall, profit fell 44 cents versus an expected 1-cent gain. wbd blames the drag on the studios segment where shazam was a flop at the box office. speaking of the box office, movie theaters hoping the just-released guardians of the galaxy volume 3 will keep them flushed with filled seats and stuffed coffers. up next, the ceo of movie theater operator cinemark is here in a fox business exclusive on their post-pan can demick comeback and the potential

impact of the writers' strike. closing bell, 48 minutes away. the dow up an even 600 points. "the claman countdown" is coming right back on this friday. ♪ ♪ i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones ♪ ("next big thing" by west rose) ♪ ♪ ♪ ready? go ♪ ♪ i'm coming out with a bang ♪ ♪ blowin' up i'm the next big thing ♪

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amc shares, unchanged at the moment after beating revenue estimates. cine mark reported a loss of 3 cents per share. that is actually a huge improvement from last year's loss of 62 cents per share. but between the writers' strike and talk of a shallow recession coming, can the recovery roar ahead? let's ask the ceo of cinemark in a fox business exclusive, to the breaking news, sean gamble. sean, i was checking show times across the nation for guardians of the galaxy, and i saw one as early as around i think 10 a.m. in los angeles this morning? >> yeah. liz: tell me what the ticket sales up to the second, if you can, look like right now. [laughter] >> well, ticket sales have been exceptionally strong. we, as you mentioned, we had a great opening night last night, and we're really encouraged for a strong run for this film. we think it's going to the delight marvel fans all around. liz: could you say that it might be one to have better ones of the year overallsome i know that

super mario brothers has done incredibly well, but looks like this one will knock that off the number one list even though mario's in its third or fourth week, i think. >> well, it certainly has the potential. but i think this year is great news for movie going is there's just so many fantastic films coming out over course of this year, sost it's got a lot of tough competition, big moves -- movies with lots of appeal. liz: oppenheimer coming out, barbie, spider-man, that's the animated one. huge blockbusters, not to mention the next indiana jones portion of that longstanding series. but when you look at some of these movies and you wonder if the box office is looking as good as it is right now, and i believe you saw something like 43 million more movie goers year-over-year, up 30% for the quarter. when do you foresee profit about about, sean? >> well, you know, to start off, the year has been off to a

fantastic start. you just mentioned it, our north american box office is up 40% year to date. actually, april it was within 5% of pre-pandemic average, and that average included avengers: end game and infinity war, two of the biggest movies of all time. the second quarter is looking t going to have overall volume of film releases comparable to what we would have expected in a pre-pandemic slate, so we're really encouraged. i mean, our even da for the first quarter was up 240% year-over-year, so our financial health and strength just continues to to improve. we actually took the opportunity to pay down $100 million of debt that we took on during the pandemic. everything continues to move in a really positive direction. big picture consumer wise and certainly for our company. liz: notwithstanding today where the stock was up and now it's down, your stock is up 85% year to date. when i look at what the annual

low was, $8, you're now at $16 and change. that's got to be extraordinarily encouraging. but i think they want to know, i mean, if you're only -- your profitability miss here, you're down 3 cents, i mean, not far to go before you're profitable. can i push you a little bit on that? will you foresee it being this year? >> yeah, i think we're certainly trend the anything that direction. from a pure bottom line, our overall operating -- our cash flow generation flip process last near, and we certainly think -- last year, and we certainly think we're heading in that direction this year and beyond. as box office continues to improve, the impact of the various strategic initiatives we're working on to drive incremental attendance and our own box office market share, productivity, new revenue sources, all that we find to be very encouraging, and we're really optimistic about the continued improvement over the course of this -- liz: you know, the thing about black swans is you don't see them coming, and the writers'

guild is right here in front of us. i wouldn't call it exactly a black swan, but obviously the writers want to be paid what is fair and they feel they are worth ever since the rise of streaming. so i would think that this is hurting live television and streaming a little bit more quickly and not so much feature film writing and what you guys are waiting on because there's such a long lead for some of these movies. have you anticipate thed, have you looked at what the effect might be of the writers' strike on your business? if it goes longer, if it stretches out. >> certainly, certainly. i mean, you just said it, you know? unfortunately, it's come to this. this obviously has a meaningful impact on people's lives, something we're going to watch closely. but you just said it, the case for the movie industry, it really depends on how long the strike plays out. you know, in the short run the majority of films other the -- over the course of this year and next shouldn't be materially impacted based on their stage of production. longer term, it just depends on

the overall length. we're certainly hopeful for everybody's sake that the negotiations are resolved quickly. liz: well, the problem with a lot of the post-covid months in the wake of that after the lockdowns were with reopened was that there was no slate for a lot of these movie theaters. you guys have more than 5,000 screens, and, i mean, not much of exciting stuff to put on there. what do you think could be the next billion dollar movie coming up? i mean, avatar was just a huge win. >> yeah. next billion dollar movie, jeez, there's a lot to choose from. little mermaid is coming up, that certainly has potential. there's, i mean, we saw -- just came out of cinemacon last week, and movies like the flash, indiana jones, which you talked about, the next mission impossible, all these movies have huge potential to cross that mark certainly op on a global basis.

so we would expect there'll be likely multiple films that'll cross that mark over the course of this year. liz: sean, people don't know you, perhaps, and your background, but it's more fun being in the movie business, isn't it, than being cfo at general electric back in the day, which is what you were? [laughter] >> yeah, i can't throw any shade on my former employee. there was great roles, fantastic learning ground, and i'd say every industry has elements to it that are really fascinating, but the entertainment space is definitely a fun place to work and operate. liz: yes. media and entertain. , what we do, obviously. thank you so much for joining us exclusively. >> likewise. thanks so much, liz. liz: and it's not just movie theater audiences coming back post-pandemic. in-person group fitness is also cycling back to gains. next, the ceo of cycle bar is here to give us his take on how the indoor cycle brand's franchisees are spinning their small businesses forward. and fitness isn't just good for the body, it can turn entire

lives around. it did for my newest podcast guest, devon still. as a kid, the former nfl defensive end turned to football at the age of 10 when he found himself a child of divorce and poverty in a jail cell for stealing a bike. at age 10. his move to get back on track by heading to the gridiron ultimately made him a high school star, landed him multiple college scholarships and eventually drafted by the cincinnati bengals. too bad it wasn't the browns, but -- just when you think everything's going great, well, his young daughter got a devastating cancer diagnosis. hear how devon pulled off comeback after comeback with including, yeah, saving his daughter. it's my newest episode of everyone talks to liz podcast. download it now. we are coming right back with much more including david sacks of craft ventures. ♪ ♪

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liz: yeah, it's a green rally. everything's up. if you look specifically at the nasdaq composite. right now it is up 282 points. if it finishes, if it closes with a gain of 289.55 pointed today, it will exit bear market. and launch into a new bull market. right now, as you see, still kind of a whisker away from that, spitting distance, a whisker, whatever analogy you want to use. let's look at some individual stock stories. not everything is up. no lift for lyft shares after a weaker than expected second

quarter forecast. you've got the stock down nearly 20%. the ride-hailing company forecasting sales of $1 billion for the next quarter while analysts were projecting $1.08 billion. for this quarter though lyft did report a net loss of 7 cents a share. the stock has just been awful over the past year, down 50%. investors, though, are betting on draftkings after the company beat first quarter revenue estimates, hitting a 52-week high after posting revenue of $769.7 million. that is a comfortable beat of the $704 million expected. the stock charging higher by 16%. you know, the first quarter is usually very profitable for online betting companies thanks to the super bowl and march madness, but craft kings remains optimistic for the rest of the year, forecasting revenue of between 3.14 billion and 3.24 billion which is actually higher than the previous guidance of 2.85-3.05 billion. and wall street's putting the

pedal to the metal not in a good way though when it comes to peloton's price. they are cutting the targets right and left. the fitness subscription company shares are up about 3%. they had been down earlier. they posted wider than expected losses yesterday. so jpmorgan cut its price target from 17 to $14, goldman sax cut it from $14 down to $10. they are both behind the 8-ball. that stock has a long way to go, it's at $7.87. but it was not all bad news for peloton. their connected subscriber numbers did rise 5% year-over-year, however, total app subscriptions fell 13% from last year. but if you look really deep into that, it could be because more people are now taking in-person classes again. exponential fitness reported results third, and invest -- thursday, and investors are very bullish on the boost to the the its full-year sales and new studio guidance. exponential is a publicly traded

company, the stock is up 40% over the past year, but it still embodies the spirit of small business because they have a bunch of brands. franchise-based companies including pure bar with, rumble, club pilates and cycle bar, which is already, by the way, showing meaningful in a tight economy. how is the small business doing it? cycle bar president trevor lucas is here in a fox business exclusive. trevor, you know, how much better does demand look for your classes? your in-person classes compared to a year ago, two years ago? >> yeah, we're seeing an exception exceptional increase in command and members coming into our studios. it's been pretty steady really since we've got come out of of the pandemic, but we really saw it accelerate in q1 and that's why we were so excited about the numbers we were able to put up as a whole. members are coming back in a big way, filling up classes. we have a lot to do to increase across the board. liz: i guess if you look at the really good news here, it

appears while we've heard this evidence constantly over the past year, people are holding off on spending on big ticket items but not on experiences. does this count as an experience? >> 100%. we look at our business as very experiential. our customers, when we ask them, they often the -- they talk about us as being community and home and where they meet their friends. we can augment with our glow in the dark rides and bringing another element to it to attract folks in. so we don't see our business as discretionary, and folks are showing that, and that's what we're seeing that they're continuing to spend their dollars in our studios. liz: you know, the fitness indicator was flashing very bright red signals during the lockdowns. and, i mean, i don't know how you guys were managing to survive, but you did. in fact, with 2 the 80 stores now -- 280 stores now, i guess studios i guess you would call it, tell me what you're hearing from your franchisees?

>> the vast majority of our mom and pop, they own maybe one to two studios, really they're reason we made it through the pandemic and really tying into the communities. what's great about our business model is that we're able to be this bigger company where from a global perspective we can be really consistent is and drive different pieces into the business, but we can also be extremely locally relevant. and that's because of our franchisees on the ground. they connect with their communities, they can partner with their favorite chair is or local businesses and bring them in. it's t those connections on small business side that really have allowed us to thrive really since the end of pandemic. liz: and it's no small feat that you have survived and are thriving, i mean, maybe for different reasons, flywheel died. you could argue that peloton killed flywheel and then the pandemic coming, reopening killed peloton in a certain way, peloton's sill sort of alive. there is a cycle bar in fort lee

where i live in new jersey, i love it. how do you avoid becoming sort of aiester year type of model -- a yesteryear type of model concern model when people are working out at home or just outside? >> that's a great question. st the us continuing to innovate and building upon what we've built at studios. our model and the way we want to attract folks in to the us is we're very inclusive. we want it to be for everybody, and our goal is to bring fitness to everybody. and we can augment that in different ways with our partnerships. of we have our x plus platforms so folks can work out digitally, we launched a partnership with princess cruises where folks can work out on their vacations, and then we have our x pass so if people get bored with riding a bike, they can try any of our other mow callties through our . as long as we can bolt on these different piece is the and allow folks to spread their fitness dollars out among our portfolio and our brands, i don't think

we'll lose them, and we'll keep innovating and building and getting them to continue to come in. liz: yeah. well, as i said, you made it through the crisis just three years ago, and i'm sure you can make it through a shallow recession if there is one. trevor, great to see you. >> thank you, liz. i appreciate it. liz: national venture capitalist award winner alan patricof told us yesterday artificial intelligence -- and he was really serious about it -- he saysst it's not a fad, it's a revolution. now a bona fide member of the paypal mafia, craft ventures cofounder david sacks weighs in to talk a.i., the impact of the regional banking collapse on venture capital funding and maybe we'll ask who's to blame. david sacks, always opinionated, he's here next in a fox business exclusive. closing bell, 24 minutes away. holding on the 54 point -- 547 points of gains for the dow. we are coming back in a minute with david, don't move. ♪ ♪

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liz: oh, ye, a.i., everybody's talking about it. well, not everybody. earlier this week ibm told "the claman countdown" that artificial intelligence will impact jobs and get ridden of some -- rid of some positions in the back office, but arvined had said -- he's the ceo of ibm -- there's far more potential to benefit the work force. but you know what? surveys show millions of jobs could be vaporized by the technology. that was the hot and kind of testy topic in the latest episode of one of the most popular business podcasts around, all in. david sacks along with david freeberg. in the episode, it was said

because of the lightning fast proliferation are of a.i. and how it can already do what 30% of knowledge if workers or tech workers can do, he's learning how to code again and that the high-tech world better wake up to disappearing jobs. but there was one voice on podcast that pushed back, flipping the whole conversation on its head, and he joins me now live. paypal cofounder and craft ventures' partner david sacks is here in a fox business exclusive. i mean, you look at some of these socks, it just so happens today a.i. stocks are doing really well. obviously, the googles and the microsofts, the c3ai, all of this this other stuff that's out there, nice moves here. but, you know, your theory about job losses is that there won't be any. in fact, tell us whats the, because i think this is really interesting. >> well, i think my friend jason is right that these tools will give knowledge workers let's call it a 30% boost in what they can get done. but does that mean that 30% of

knowledge workers will lose their jobs, or does it just mean that the average knowledge worker gets 30% more product incentive wage increases have to come from somewhere if you want to have real wage increases, not just inflation. and where wage gains come from is productivity. so i think a.i. is a very profound productivity tool and helps knowledge workers get more done. i think that it's very hard to replace if a human entirely. you know, automating 30% of their work is not anywhere near 100% replacement. so i don't think we're going to be eliminating jobs or the need for certain job functions anytime soon. i mean, that is a long-term risk, but i think in the short term this is going to lead to productivity, a big productivity boost. liz: you look at what all these companies are coming out with, it feels very much like what we had in the back of, you know, 3-d printing and then, of

course, mock meat. every time you saw impossible meat, you know, get some type of deal, everybody went and looked at beyond meat's stock and then, of course, the metaverse. we have alan patricof saying it's a revolution. where do you stand on it? >> i don't think this is a fad. i actually think this is a very profound new technology wave. i think this is in the top three technology waves that we've ever seen in silicon rally, the other two being mobile when steve jobs launched the app store and the other one being the internet if itself. i think it's right up there. i think it's bigger than mobile. i think it's going on the on -- to be the on par with the internet itself. i did not say that about web 3, about a bunch of other things that were sort of pretenders to the throne after mobile. i think this is real deal. liz: apple, interestingly enough, mentioned a.i. three times during the earnings call compared to, like, 499 and 50 from microsoft -- 49 and 50 from

microsoft and google. they were throwing it out constantly. do you think apple's behind the a.i. curve or they're just keeping their cards close to the vest? >> i think that a lot of these big companies have the resources and capability to do something, but i do think that most of them have been caught flat-footed here. it was really the launch of chatgpt on november 30th last year by openai that woke everybody up to the power of these large language models. basically, it allows you to interact with the computer just using let's call it a natural language interface. in other words, you can just tell the computer what you want it to do. and that really wasn't possible before. and in response to that, the a.i. just keeps surprising us with new capabilities, new use cases. so i think it's very important. i think that, again, it was not one of the big tech companies that drove this. it was openai that i think drove

the breakthrough even though it was google several years ago who came up with the idea of the transformer which is sort of a key enabling technology. but i think they've been caught flat-footed. i think apple, a little bit flat-footed. probably the big tech company that's done the best is microsoft because they made a deal with openai, and they've been able to benefit from that. liz: okay, bag to requesting and apple. >> yeah. that's not to say they won't catch up here or, you know, have a profound play that they can make, but i do think they're all a little bit shell shock here about how quickly a.i. is moving, and they do need to cop up with a strategy pretty quickly -- come up with a strategy. liz: you were just talking about wages. we just saw wages rise, but heir not rising as quickly as inflation continues to stay hire. and, david, you know, it's like the fed thinks there's one solution to inflation, and that is to kill demand. is that the only way to kill

inflation? >> i was really surprised by powell's comments in that that recent interview where he said -- he started by acknowledging the point that we had the worst inflation in 40 years and he said in response to that we have to the raise interest rates. and then he went further and said that we have to slow down the economy and we have to slow down job and even wage growth. so he's kind of made it his objective to kind of kill jobs and wages. i don't think that's a great way of looking at the problem. i mean, the fundamental problem here is that the federal government both fiscally and the fed monetarily created way too much money. and that's why price levels have risen, you know? prices are simply, you divide, you divide the amount of money, the money supply, by the amount of goods and services, and that gives you the price levs. and if goods and services have not increased but you've flooded the market with liquidity, obviously, you're going to see a huge rise in inflation. but i think the response to that should not be to target or or the wages of the american

people, but first of all, to have had a more responsible monetary and fiscal policy. washington needs to stop spending so much money it doesn't have -- liz: amen. >> and then on the supply side, we need to boost the a amount of goods and services in the economy. in other words, we need to boost output. and there's a lot of ways to do that. so, you know, i thought it fundamentally showed a lack of creativity by powell to say this is the only thing we know how to do, is kill the economy, kill jobs and kill wages. how about focusing on boosting the supply of goods and services? liz: exactly. boost the supply. i just don't know if powell can do that this. that may not be in his toolkit or their so-called mandate. >> right. liz: i do want to quickly, because you're usually up in san francisco, and all we're seeing is the commercial real estate market implode in the big with cities. huge vacancy rates. there are some people who look and say, hmm, i'm a vulture, i might pick up something on the cheap here. these trophy properties in san francisco office buildings are going for $60 million.

which is nothing really, i mean -- [laughter] i'm sure the pour of you on all in podcast could pool your money together and pick one up, but the vacancy record's around 30%. that that's a record for office as. is there an answer for that? do you see an opportunity or a worry? >> well, both, i guess. i mean, the vacancy rate in san francisco is 30%, and it's still going up. i think other cities have this problem too, but san francisco is definitely the worst. and so the problem is let's say you're going to pick up that building for $60 million, and i agree that it's a good deal in the sense that the replacement cost for that building would be at least 10 time toes that amount of money, which is why you don't see a single crane in the sky in san francisco. there's no point in building anything new. the problem is let's say you buy that building on the cheap. where's your revenue going to come from? if vacancies are still growing. there's just not that much tenant activity the, in other words, not that much demand right now. i think at some point the demand comes back, but it's going to

take years and years to absorb all that vacancy. so only parties that i think can buy here are basically investors who are willing to to land bank, who are basically willing to sit on that property for years and years. liz: right. >> they're not going to want to finance it with debt because they can't really model out the principal revenues from that asset. so i tend to think that for a long-term investor who can land bank it, it's probably a pretty good deal, but it's not a good deal for someone who needs to finance that purchase -- liz: well, that's a heck of a carrying cost for a long time. >> that's right. liz: david, it's great to see you. thank you so much for joining us, and are you going to take, are you going to start brushing up on your coding like david is? [laughter] of. >> well, the great thing about this new chatgpt, it's a chat bot. you just talk to it. you don't need to know that much code to use it, that's e what's great about it. liz: got you. y liz: got you. y great toea see you, david can sacks. we wh are coming right bace

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liz: here we go. we have three minutes before the closing bell. nasdaq turned positive for the week. you can thank regional bank stocks which are making the whole market bounce.

pac west is a strange story. it was tanking yesterday. it's up 81% now. is this a healthy bank? what does wall street say? charlie: i think this is starting to bleed over in congress. if you talk to my sources, they are worried about jerome powell. the fed is not just the keeper of interest rates. it's the fronts line regulator of the banks. how did they miss what's going on. we have had relief rallies around first republic. but the fed and the treasury, but mostly the fed is the fronts line regulator does not look good here. we did not give it enough talk.

let's put you be gary gensler's statement from yesterday. it's an odd statement in isolation if you see it. do we have it? liz: i don't believe we do. but he was taking aim as the anybody saying it's manipulating. charlie, he said if you are manipulating stocks we are coming after you. he's talking about the short sellers. saying stuff is worse than it is and we have evidence, we'll come after you. i will say this, they tried that during the financial crisis. it failed. to me that's a move of desperation. that shows this is worse than what it is. they never trotted out this short seller garbage. when they pulled this out in 2008 do you think the banks weren't impaired in 2008?

they band short selling for a period of time. short selling. during the financial crisis. they brought it back. but for a time on bank tooks you could not short. liz: we have a couple seconds left. is this a bounce or a real rally? we have a strong jobs number today? charlie i don't -- i think balance sheets are impaired. liz: all right, here we go, folks. the markets are going out with a bang. session high for the dow was 620 points. we are below that at the moment. but the nasdaq doesn't look like it will exit bear market territory. "kudlow" is next. larry: hello, weom