decades, known to the family and friends as carrie is 39 years old and always working. she has two children and yet she never gave up on earning a degree. i can not say how proud of her i am and her fellow students many also working parents. i've gotta tell you this is the kind of moxie that made america great. there's no talk of other people paying student loans or asking people for anything other than a fair shot. these young adults, they want a better life for themselves and their children and took it upon themselves to make it happen. so, to the graduation class of b ergen community college of 2023 i would say never give up but that's a lesson you teach us so i will say god bless you and thank you as an american, this fills my heart with so much pride. love you, so proud of you. liz claman, over to you. liz: you bet . i agree. bravo. great job to all of the graduate s who have worked so hard but especially those. the high stakes debt ceiling, folks, that meeting is about to begin at the white house. can we actually pull up the live

camera? we do have a camera shot waiting outside the oval office right now, and if we look at that i don't know if we can, there you go, so there are microphones waiting, okay? but right now, president biden is huddled with house and senate leadership working to hammer out a deal that would raise the nation's borrowing limit before early june when the u.s. runs out of money to pay its outstanding bills. we are expecting at least some of the bipartisan congressional participants who include congressman mccarthy and jefferies and senator schumer and mcconnell to approach the microphones after the meeting. will republicans get their spending cut strings attached before a deal is struck or will the democrats get the clean raise they and biden have said they wanted? by the way the same clean raise the gop gave president trump the last time this happened. coming up, two members of the problem solvers caucus join us live on the "clayman countdown." republican dan muser of pennsylvania and democrat josh h

arter of california on how to, if they are in the problem solvers caucus, how to solve the debt ceiling problem. can't deny it though the markets are a little bit rattled by the political stalemate. you've got the dow jones industrials down 239 points, s&p down 12 points the nasdaq been in the green most of the session here up 22, russel 2,000 is taking the out size percentage hit down about 1% or 19 points. there's also this. take a look at the dow heat map and if you look at the laggards a whole bunch of them are down more than 2% talking about chevron, dow, 3m, amgen and nike is the worst down 2.75 but i'll tell you something home depot which is just above amgen down 1.5% posted its worst revenue miss in about 20 years, and cut its sales forecast because inflation weary consumers are delaying big do-it-yourself projects. at a speech in dublin today listen to what cleveland fed president loretta mester said. she said inflation is still too

hot for the fed to stop. with rates right now at 5 and 5.25%, she said, "have we gotten to that rate yet" meaning that high rate where inflation be killed, right? at this point, "given the data, we've gotten so far, i would say no." so here is the question. had she seen the latest retail sales report before she wrote that speech? april retail sales slowed markedly. month-over-month, yes, they rose four-tenths of a percent but eight-tenths of a percent was the estimate. year-over-year they came in at 1.6% compared to march's 2.3%. but we showed you the nasdaq, right? looking good. tech once again looks like the haven or at least the honey attracting equity investors. nvidia, microsoft, lam research and verisk analytic all hitting 52 week highs this session. should investors forge ahead through the d.c. drama and go and very specifically pick out

names? that's what our floor show traders are here teddy weisberg and john nejarian. john, everybody keeps saying this is the debt ceiling theatre , i'm calling it the mou lan rouge dance. do you just say we can't control what's happening in d.c., instead let's just do our own thing? >> i would say that exactly, liz. i would say we're likely to see that either kabuki or the moulan rouge and we're likely to see that and if every time this happened you were to buy put or some sort of insurance to the downside you'd be broke, because this happens all the time. it never goes down other than just, you know, intraday, you get a little jerk here or there , 1%, 2% and then it flips right back so i would fade any of the panic that some people feel but the volatility is definitely elevated into this discussion. liz: well elevated into the discussion, it's only up 2% right now but it has had a pretty muscular move lately,

right? so you're not buying any insurance at the moment? >> no, because number one, it's more expensive insurance, so if you were to buy it, two weeks ago would have been the time to buy it. in the last two weeks volatility is up about 14%, which means that that policy would cost you a lot more to insure your portfolio, so at this point, i think it's money poorly spent to buy insurance right now. liz: ted, you don't often hear john say he's hands off with the options picture. where are you hands-on? >> well, hands-on, liz, it gets a little boring but the best trade when you don't know what to do is still cash and cash is short-term treasuries, money-market funds 5% risk-free. it's a good place to hide while all this uncertainty is around when you don't know what to do, sometimes the best thing to do is do nothing and i think 5% in short-term treasuries is pretty cheap insurance. liz: well the three-month we've

got up right now 5.16%. let's see if we can put up the one month, because to me, that is a big question at this point. i mean, people have to understand something, teddy. if you are getting a one month at 5.5% which is what it is right now, you have to hold, you have to keep reinvesting it for 12 straight months to get the full 5% so people, buyer beware, right? >> yeah, i think well that's true, and that becomes a little mechanically problematic, but certainly it's doable. i think you're better off kind of stretching it out a little bit but there's no question that the higher returns are on the shorter term. the further out you go with the treasuries, the lower the return, but the fact is, it doesn't have to be treasuries, liz. it can simply be money-market funds. a year ago, six months ago, folks were getting zero on their cash. now they are getting three, four

, 5% so there is a viable alternative to risk and the fact is the markets in general have done nothing for 12 or 13 months. you know, you take a handful of big tech names out of the composite and out of the s&p the markets going nowhere. i mean, its been -- liz: but if that is the case then you would think that big financials would absolutely love this. i'm looking at the majors here. jpmorgan, morgan stanley, pnc, wells fargo, citi, all down today not by much, but where, john, do you put the money if you're trying to catch those higher rates out of the treasury market? >> i'd do a little bit of what warren buffett did. warren buffett shifted his focus a little bit, got out of bank of new york, got out of u.s. bancorp and went for , you know, a little more into allies for instance, and i think that's a pretty good play, liz, and quite frankly after this big

sell-off, co america cma. if you're willing to take shots in banks, i think that is a double or a triple within the next 12 months, so i'm buying that. liz: a triple? >> a triple, because the earnings growth prior to the bank was four quarters in a row they've averaged 40% growth. that's the kind of company i want to jump on. especially after its been battered like this and like i say, warren buffett did that. michael bury is doing that. i'm not saying into that exact stock, but they are picking and choosing some of those. liz: i'm interested in this , because teddy, business insider which is a great website, i was reading them and they have marked out what morningstar analysts say are 10 regionals that have absolutely gotten, you know, thrown out the baby with the bathwater whichever it is. i wouldn't know i threw both out

comerica. zionsbank they like. go ahead. >> liz? warren buffett made all his money in the insurance business, not in the banking business, and the fact is if you are looking for a place to hide in this environment, i think one of the great sectors to be in is the insurance sector because i can't think of a sector that benefits more from higher interest rates with all their float so i coined of would avoid the banks unless it were the big money center banks and i would look at the insurance sector. liz: well let me just say that as you look at insurance or whether it's the banks, the federal reserve in the past 48 hours, neil kashkari of the minnesota fed, saying we are not done yet. we need to raise rates. just yesterday, we asked jeremy segal of warton business school and he said the banking crisis, the regional banking crisis has already done some of the work for the federal reserve but they don't quite see it. here is what he said. >> i believe that the

tightening caused by this crisis is equivalent to three or four 25 basis point hikes of the fed, and so they are in dangerous territory precipitating a recession. i was not in favor of the last 25 basis points. i was very pleased to say that they are likely to pause but there's still a lot of hawks there on the committee that just want to keep on raising it until they smash the economy. liz: is that really what's going to happen, john? smash the economy? >> well that's what i hope does not happen, but professor segal is absolutely right. several of these banks that went under caused consumers to horde cash. caused consumers to cut back. we saw it in the likes of home depot but that's not the only one. there's many retailers that are feeling that pinch and we're going to see about walmart, target, even tj maxx.

i believe a tradedown keeping happening, liz, but he's exactly right that by those failures, the consumer cutback horded cash and is loathed to go out and spend aggressively as they were prior to those banks going under liz: john, teddy, our two trader s on the floor show, thank you, gentlemen. >> thank you. liz: speaking of the fed, it's the fed's fault. that's what the ceo of collapse silicon valley bank today told congress that svb believed the fed's messaging that interest rates would remain low for so-so long but then svb was caught off guard and collapsed when rates suddenly began rising is commercial real estate making the same claim and facing the same outcome? with more than a trillion dollars in low rate loans coming due, how must the sector pivot as rates skyrocket? up next, the ceo of commercial property giant rxr scott redler is here with what he says might

stave off a crisis. closing bell 49 minutes away. we've got the dow jones industrials down 242 points it's not all home depot. i already showed you guys there are five totally separate names down more than 2% a piece. the "clayman countdown" is coming right back. ♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪ ♪ the future is here. we've been creating it for more than 100 years, putting the most advanced technology into people's hands.

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liz: well, at a senate banking hearing today, silicon valley bank ceo greg becker pointed his finger at just about everybody but his leadership and his management team for the march collapse of svb and the ensuing regional bank crisis it triggered. listen. >> importantly, throughout 202e messaging from the federal

reserve was that interest rates would remain low and that inflation that was starting to bubble up would only be transitory. >> there were a series of events, unprecedented events that occurred that lead us to where we are today. >> now this wasn't unprecedented. this was bone deep, down to the marrow. liz: we have some breaking news that we just want to interrupt for a moment. let's listen into the meeting, at least the start of it. they let cameras in for a second here for the debt ceiling discussion, and let's listen in for a moment and hear if anything was said before they really closed the door and find out what's going on. >> hello, folks. get a good picture of all of this. we're having a wonderful time. everything is going well. [laughter] anyway, i don't have any comment to make. we're just getting started, and will be available when this is

over. >> [overlapping speakers] >> [multiple speakers at one-time] >> it'll get much better. >> [overlapping speakers] >> give me a break. >> [overlapping speakers] liz: okay, i don't see mitch

mcconnell and i don't see hakeem jefferies. are they not there? okay, so they are supposed to be there as well, but this is of course speaker mccarthy, along with senator schumer, president biden, and kamala harris i believe about to talk about the debt ceiling, so if anything comes out of this because we've got those cameras standing by, we will let you know but that was a whole lot of nothing. he said i'm not going to make any comment and then of course we all start screaming. federal reserve vice chairman of bank supervising michael barr was also on the hill today not just greg becker of silicon valley bank. barr testified before the house financial services committee and said that the march collapse of silicon valley bank was a textbook case of bank mismanagement, not the fed, or anything else, and that some of their practices violated "basic principles of banking 101". he then took the opportunity to warn of the rising risk around commercial real estate loans, many of which were written by regional banks, with more than a

trillion dollars worth of those loans set to come due by 2025, pretty soon, what must commercial realtors do to avoid the same fate as svb? scott wreckler is the chairman and ceo of rxr with more than 30 million square feet of commercial properties worth $21 billion-plus in gross asset value. what is the solution before we see any kind of svb disaster? >> liz good to be here and taking it back to the regional banks because that's really where a lot of i think the challenges reside, which is that, you know, you think about the last few years. there's been enormous amount of real estate transactions, particularly multi-family buildings being built or bought that are financed by regional banks and financed with interest rates near zero and people had short-term loans that are now rising and as those loans need to be refinanced, those capital structures are broken, so the loans need to be paid down.

new equity needs to be raised, and we need to go through a restructuring process. liz: how hard is that to raise new equity in this atmosphere, when we already got this information basically that says and this is the quarterly activity report from cushman wakefield, big commercial real estate outfit that something like 20% of office space is simply empty, and who wants to loan to that? >> yeah, even multi-family and i use multi-family on purpose because everyone says commercial real estate but multi-family is where the regional banks have exposure and to your point right now, every bank is against having commercial real estate so newly-released are now not lending to commercial real estate generally across the regional banks. you've seen the same thing with the cmbs market and with companies right? they are under a lot of pressure from regulators and from shareholders, under a lot of pressure from their boards and rating agencies to say reduce your commercial real estate exposure so if we're going to fix the problem the private

sector fixes the problem and we'll find that equity infusion needed to rebalance these loans, you need loans. you need new loans to be actually made to be able to get the plumbing flowing again. liz: i mean, is your solution that the government hold a gun to the heads of banks? the big ones and say loan, loan? >> i think that there's probably a number of ways to do it but one simple way i've been thinking about this is right now , everyone's painting all commercial real estate with the same brush and so if you're a regulator looking at the banks book of loans and they say okay why do you have 25% commercial real estate exposure but what if you took that and said okay, these were loans made in the legacy low interest rate environment. they probably got problems. these are new loans. now let's now designate what are delineate new loans versus old loans and you can actually then look at them differently and better understand the risks that those banks have and if that's the case, regional banks should be incented to want to make new loans because they make them in a market where they get really high interest rates, not a lot of competition and they are able to actually pay the depositors the higher deposit rates they

need. liz: in the meantime though, x a solution you guys have to become creative and we're hearing about a lot of commercial real estate owners like you opening up the perks of all the buildings to the tenants, and that is apparently at least something that will get more people to fill those offices. are you doing any of that? what are your creative ideas? >> so what you're seeing in the office space is theres clearly a flight-to-quality. if you get people to come back to the workplace to your point they want them to have a lot of amenities, programming, they want them to feel energized, engaged and there's some buildings that can do that and some landlords that can actually do that and i think that is table sakes. if you can't do that today your building becomes obsolete and you can't fill up that building. liz: yes, yoga on the roof. i do have to ask you, that morgan stanley number of 1.5 trillion in commercial real estate loans coming due by 2025, what's the dollar figure of your loans for the same duration? >> we only have a couple of buildings in the next couple

years coming due, so we're not, they aren't something that's meaningful for our portfolio but i mean, again, to think office buildings are like $150 billion in the next year in like $500 billion in the next three years that are coming due, right so right now on the office side to your point different than multi-family there isn't a bid so if you need to refinance your office building the only one refinancing it is the existing lender that has to ultimately renew. liz: before we go, what rates are you being quoted when you go for loans, if you are, for new buildings? >> again, on new multi-family today it's really everything is off of sofer is when you're able to go. liz: which is? >> say we're 2.5 points over, so it's not crazy but what's happening is the lenders are lending to their best clients, for the best projects. so we're maybe not as impacted as others, but more broadly, that's where the issue is right now, and so again, you have to fix the plumbing. we have to create liquidity in

the marketplace or we're going to see what you just saw with sv b. you'll see that these banks, these regional banks are going to have their exposure of commercial real estate so people focus on not their duration, so what's your commercial real estate risk and they are the targets of shareholders and regulators that can create a more systemic problem. liz: that is an important warning. scott, thank you very much. >> thanks for having me. liz: scott reckler, appreciate it. good to see you. it is that time of the quarter when the big money discloses where they have invested. up next, a look at berkshire hathaway's 13 f-filing as it's called warren buffett plowing money into a financial, i mean john najarian said he was smart and pulled them out but he is putting it into a financial. closing bell ringing in 36 minutes. let's take a look at the markets here. same as when we began, about 25 minutes ago. the dow still down more than 245 points, s&p losing 12, the nasdaq still up 23.

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♪ liz: fox business alert. we were just talking about commercial real estate. there is some stealth news and stealth move in the housing sector at this hour. pulty group and d. r. horton are hitting all-time highs. homebuilder sentiment so the data came out and hit its highest level since july so it's not like the whole woodley is falling off a cliff here.

you've got d. r. up 2%. pulte up 6%. let's look at individual stock pops and drops. vodafone is at its lowest level, going back to 2002 to see this price of $10.30 a share this after the british telecom said it is cutting 11,000 jobs globally, or about 12% of the workforce. the cuts which are the biggest in company history will be spread out over three years. vodafone also chopped its forecast for cash flow this fiscal year to 3.3 billion euros. that's down from 4.8 billion. the company says the lower forecast is due to timing of payments for cable tv in germany because of a new law in that country. so vodafone down about 8.25%. we know what's in warren buffett 's wallet. capital one financial group, yes he's added to that so that's good for a 3% pop in capital one berkshire hathaway disclosed it has bought a $954 million stake

in the credit card-focused bank. at the same time, berkshire exited small remaining stakes in , you heard john najarian say it u.s. bancorp and bank of new york mellon. berkshire hathaway class a has shares not a typo, are just about at half a million dollars here, 499, 500 a share that's because its never split and it is up three-quarters of a percent which means it's up $ 3,600. m m & a trouble of the horizon. the stock has fallen 14% after the federal trade commission sued to block amgen's acquisition of the pharmaceutical company for $28 billion and an in junction was filed that if approved a judge could prevent the deal from closing entirely. the agency says the deal would allow amgen to "en trench the monopoly positions of horizon's thyroid eye disease and gout drugs" specifically those two. horizon therapeutics says that

it intends to work with the court on a schedule that would allow the transaction to close by mid-december, but this ftc doesn't like deals here. we've got amgen down 2.5%. the news is reverberating through the entire biotech space you see this often happen the f tc campaign cracks down on big pharma mergers like pfizer's acquisition for 43 billion falling on the news it's down 5.25% pfizer lower by one-third of a percent. by the way on friday, pfizer and cjen submitted paperwork to the ftc for its emergencier which be the biggest in bio pharma since 2019 if it were to go through the ftc has 15 days to object before the two companies go ahead with the transaction. good luck. the april retail report showing food and drink sales actually climbed to 9.4% year-over-year as americans appetite for dining out continues to be wetted

because sometimes, dining out is less expensive than shopping in the grocery store but do they have the stomach for forking over extra dough for the tips? especially when there was no service. this has become a thing, madison madison alworth is at bryant park with more on tipping fatigue. reporter: hey, liz. it's definitely become a thing. i talk with my friends about it all the time. now we're not talking about sit- down restaurant service where it's expected in the united states that you tip your server. we're talking about those little kiosk things that are flipped around when buying your coffee or getting counter service food and are being asked to tip. it's very effective and now, it actually has a nickname. people are calling this "guilt tipping" so like i said it's when you're checking out. sometimes even in self-service and are given the option to tip. sometimes up to 30%, and this practice that we're now seeing,e tips. 65% of people say they tip more when that screen pops up, and

one in three say that they feel pressured to tip. it happens everyday. it happened to me this morning when i went to get my favorite breakfast from starbucks which is egg white bites but they are mass produced to make them ready for me to eat just pop them in the microwave and was given the option to tip one or two or $3 and i thought i throw a dollar their way, but when we talk to folks on the street we have a lot of people saying this has become too common place and it's really impacting their bottom line when inflation is at an all-time high. this is what people had to say to us. >> i always leave like at least a dollar because i feel guilty. >> they flip it and they are like here you go and look away. >> we don't realize it but eventually after it adds up. >> sometimes i do if they are really nice so that just means everyone should be nicer and they get more tips. >> definitely guilt tip. i engage in guilt tipping. reporter: so, i think the hard thing with this , what i hear

from my friends is always the surprising areas in which these tip options pop-up. the worst one i've seen, liz, is i was checking out for an online clothing order and i was given the option to tip for the workers that work at this company. i don't know about you -- liz: stop. reporter: i've never been asked to tip on a clothing purchase. liz: kenny polcari and i were talking this morning on the phone, and we were talking about this and he said he was at mcdonald's, used the kiosk. no human interaction. used the kiosk in the store. he was getting a fail fillet o fish and just did it and called his number and said would you like to tip? listen i feel for fast food workers but let me choose, right let me put the money in the cup, et cetera. i don't know. i think it is guilt and i'm very vulnerable to guilt. reporter: it definitely is guilt social pressure around being able to see whether or not someone tips absolutely. liz: madison i like the egg bites too but they are expensive

i don't want to add anything more to that. thank you very much. we just saw president biden along with house speaker kevin mccarthy in the oval office, as the top brass of congress braced to cut a debt ceiling deal, so what we're going to do, because we're not in the room, is we're going to bring the room to you. we're going to get perspective from both sides of the aisle on the debt ceiling debate. democratic congressman josh hart er and gop congressman dan muser both members of the problem solvers caucus are going to give us the latest on what they are hearing from their cohorts and best ideas. gentlemen, stand by. our viewers are waiting to hear from you. closing bell ringing in 24 minutes. don't go away we are coming right back.

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you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. liz: okay, guess what? as you take a live look outside the white house, as we wait for republican house speaker kevin mccarthy to hammer out a deal, a debt ceiling lift deal,

with president biden, we now know that yes, senator mitch mcconnell did join senator schumer in there as did congressman hakeem jefferies, so both sides of the aisle in there , talking. joining me now, we've got both sides of the aisle represented. democratic u.s. representative josh harter of california and republican representative dan mu ser of pennsylvania and both are on the problem solvers caucus. gentlemen let's solve the problem. i am going to start with congressman multiples, because congressman, you all are saying that you have a bunch of additions, strings you would like to see attached but back when president trump needed to see the gop say yes to raising the debt ceiling with no strings attached, the gop did it without any problem. why should this time be different? >> well, that time, we had a bipartisan effort. we had covid was running rampant

through our economy, and our society and we all got together on some major spending packages that i signed on to as well, the care packages of $4.5 trillion in excess, but the problem is this , liz, and i think josh can appreciate this too. now, we're certainly in recovery and have been over the course of the last two and a half years, yet we still over-spent. i'm just not blaming democrats. i'm not just blaming biden but we over spent by nearly $5 trillion. our service on our debt has gone from $250 billion to $550 billion in this short time frame, so we have two big problems. one we have a debt ceiling going to be paid. we must pay our nations bills. we're stating that the american people don't want to see us hit that debt ceiling that fast again. we must show some sort of fiscal responsibility moving forward.

so strings attached. it's an overall game plan. liz: well but there are strings attached and a whole bunch we can go through in a second but congressman harter, what are you hearing because first it was president biden saying its got to be a clean debt raise, debt ceiling raise, and now its got to be and now we're hearing him say we don't negotiate in public which almost means to me that they are talking. what are you hearing? >> yeah. they are talking. they are negotiating and of course they are. the american people elected a republican congress and a democratic president. the only solution to this is to lead from the center. right now, speaker mccarthy and president biden are in the oval office. frankly i think we should lock them in there. throw some pizza under the door and not let them come out until there's a deal that is reached. i think that should absolutely happen because the consequences of a default are enormous, one way or another this is going to have to be a bipartisan deal. liz: one of the issues that the

republicans say they would like is a whole bunch. clawing back unspent covid funds for the debt ceiling, returning spending to 2022 levels but then some of it involves work for benefits. okay? so when you work for benefits, meaning work requirements for programs if you're going to get medicaid benefits, you've got to be, it's going to require ablebodied or childless medicaid recipients to work 20 hours a week or do community service and then there's the food stamp issue. i'm all for requiring ablebodied people who don't have dependents to be doing work for this , congressman meuser, but then the food stamp issue comes up, and i think that there are going to be some gives that the republicans have to say okay we'll leave that one alone. which areas might they do that on? >> well, i like what josh said very much. we're both on problem solvers and keep something in mind we should. joe biden in 2011 was the

negotiator for the obama administration related to a debt ceiling and he said you can't say my way or the highway, we need to cooperate so i don't know what's changed so much from then until now but regarding the snap program that you're referring to, it's very very important. now we have 42 million people that are on it. really at the highest levels ever, and there's been periodic times there have been, in fact, work requirements and look, the american people demand that. 80% i think of polls show that some level of work requirements if you're between 18 and 55 years old and have no child dependents, you need to show either some job training taking place, or work, or you can submit for a waiver. liz: right well congressman harder, what about that? >> look i don't think there should be any red lines in this negotiation.

that's not what a healthy negotiation looks like but there is only two things. at least a two year extension in the debt ceiling. that's imperative to make sure we don't go through all of this all over again until at least the next election, and a real crack at dealing with our long term fiscal challenges but if we care about the fiscal challenges that we have which are enormous and far more damaging to our economy at 5% interest rates than they were for much of the last 15 years, and we were at, you know, real interest rates, which were often negative, then let's look at the root cause of why we're in this fiscal situation to begin with and a lot of that comes down to high healthcare costs. it's not coming down because you know, starving folks are getting food because kids are getting school lunches in school. it's because we're paying double what most other countries in the globe are paying for the exact same pharmaceuticals, the exact same medical treatment so i actually think we should be very serious about making sure that we're cracking down on spending, but look at what's driving that spending and not put it on the

backs of folks that are trying to make ends meet everyday. liz: how about both of you guys come with me, we'll go to d.c., bang down that door and i want you both in there because you're both in the center and solving these problems. thank you both for talking about this. i know in cable news everybody wants a screen fest. i don't. i want solutions. so i really appreciate both of you guys coming on. thank you so much. >> we are problem solvers. liz: good for both of you. dow jones industrial down 275 points we're coming right back. don't go away. chase ink businesr card is made for people like sam who make...? ...everyday products... ...designed smarter. like a smart coffee grinder - that orders fresh beans for you. oh, genius! for more breakthroughs like that... ...i need a breakthrough card... like ours! with 2.5% cash back on purchases of $5,000 or more... plus unlimited 2% cash back on all other purchases! and with greater spending potential, sam can keep making smart ideas... ...a brilliant reality!

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switch to xfinity mobile and get the best price for 2 lines of unlimited. just $30 a line per month. i should get paid more for this. you get paid when you win. from xfinity. home of the 10g network. ♪. liz: we are hearing something about the robe bin hood of china. it has u.s. lawmakers growing increasingly concerned about chinese stock trading apps. right, charlie? >> you know how everybody is in arms about tiktok. i never really pot the connection totally if your son downloads a couple of videos or does a bunch videos, that the chinese using that to make a fake identity. this is huge story. we done a ton of reporting. i was person who broke microsoft would buy the whole thing. the chinese company that owns

tiktok want to sell it totally. we're still in limbo with tiktok, as ticktock is going on there is something closer to home on wall street, an my mating u.s. lawmakers. over something called webol. it's discount brokerage owned by the chinese. it is broker-dealer is dom side here. apparently if you have been following information trail like i have, letters like from ted cruz, tommy tuberville, jim banks, this is. senators and congressman mostly on the gop. bad sherman. liz: california. >> brad sherman. we they have information on webull you want to trade on any platform, it is a lot of stuff, whether that is being kept safe. whether that information, the

ability for webull to keep that safe is properly monitored by the sec and finra. now fin raw provides front line regulation. sec steps in after more serious stuff but here is what the congressman and senators including tuberville are saying, if a lot of your operation is over in china, apparently the data over there, have you gone to china, you, finra, bonn there to look at that information to make sure it is secure. just so you know, we should put up tuberville's statement. we have a statement right there. just basically saying, he also mentioned mumu. that is another chinese, they're another chinese discount brokerage. collect highly sensitive personal information true, for millions of u.s. customers, including personal identification information, social security numbers, blah, blah, mailing addresses, you can read it for you self. clearly if it is not kept safe

there is a problem here. i should point out, what makes webull different than moo moo. liz: bull. >> i was conflating webull and moo moo, sorry. what makes them a little different, moomoo got back to us. they have their information is here in the u.s. they basically went you there the whole thing. webull would not get back to us. this i'm telling you this is likely to heat up. there is select chinese committee in the house that looks at this stuff. jim banks is on the committee. he is one of the people who wrote the letter. i understand they're thinking of holding hearings on this. it will heat up because this is, liz, if you look at tiktok, getting all nervous -- liz: more hearings i get anxious. >> if you worried about impersonal information, right,

this is more, seems more invasive and it is over in china, you know every chinese company is kind of run by the communists, right? >> you say commies? >> i almost said commies sorry. liz: i hearing webull didn't call you back because they just don't like you. >> maybe. please call me back. liz: because you're full of bull. >> this could be a big misunderstanding. i'm not saying they did anything wrong. the silence though -- liz: deafening,. >> concerning. by the way they're asking for answers from the sec, finra, the congress, may 31 is the deadline. liz: good stuff, charlie, thank you very much. time to play defense, right now i don't know about you, looking at the dow jones industrials down 33 points. how do you do it? ross mayfield, 360 billion assets in under management. ross, what do you make what is going on the markets now. >> we think a debt ceiling gets done.

might take equity volatility to come to the table. we see short-term spike. we need equity market volatility to get policymakers to the table. this may be the first step in the process. liz: one of the areas you like, you like industrials, but you also like defense stocks. so when i look at some of these, it's not that they are maybe down on this day or that day, year-to-date, a lot of these names, whether general dynamics or raytheon, some other ones, they are not really breaking out. to what do you attribute that? >> yeah. i mean i think there is some concerns about the debt ceiling and the spending cuts that might come along with that, fiscal austerity could hurt spending in that sector. liz: good point. >> long term structural theme we like industrials. long-term spending locked in for the sector. increased spending not just in the u.s. but globally over a longer term. we think it's structural play for longer time horizon than just this year. liz: we look at a lot of the

industrial picture, it to me is pretty interesting to see there is money because of some of those government programs, but in the end where are you avoiding, what part of the market don't you like? >> yeah. i mean, probably not going to be breaking any news here but financials still look vulnerable. they're trading cheaply. if you really like value stocks you might get in there but with all the uncertainty with bank lending slowing down meaningfully in some pockets of the world, some pockets of the u.s., something we should steer clear for time being versus other sectors we see opportunity. liz: say hi to the gang at baird. [closing bell ringing ♪ liz: do you getting hit on home depot news and much more. we'll see you tomorrow. ♪. larry: hello, folks, welcome to "kudlow," i'm la