stock market that's getting rocky. a bond market that older folks put all their money in the bond market and that's looking sloppy and understand why these are happening. i don't know if it's too late to push back or if enough people are paying attention and we're expressing the fact that the american dream is sort of falling away and falling away from the grip. as i say that, this market is drifting as well. we didn't have a knee jerk reaction from 2011, but it could happen and this last hour of trading will be really, really something to watch. good thing liz claman is back. liz, i'm buckled up. liz: yeah, and you got to stay there because we are seeing losses, chars, as i know you've within watching. acrel late into the final -- accelerate heading into the final hour of trading and we're getting pitches downgrade of the credit rating from wharton economist jeremy seeing and will he's joining us in a fox

business exclusive in his first interview since pitch stripped the u.s. of the triple-a rating after the bell yesterday. is the market underplaying it? should you pay more attention to it or does he agree with former pressure reigns leading secretary larry summer's assessesment that the downgrade is bizarre and inept? those are larry summer's words. we are getting reaction to it now from current treasury secretary janet yellen speaking in virginia with 59 minutes left to trade, the markets are waking umm perhaps to the realization that this downgrade might have a bit more left to it than thought. dow jones industrials down 314 popoints and you can see as wel. the s&p 500 is on track to close down more than 1%. yeah, we're at about 1.25% to the downside, 57 point loss on the s&p and that would be the first 1% move in either direction for the nasdaq -- for the s&p in 47 sessions. it's been awhile since we saw 1%

move. and the nasdaq down 20284 points. 284 points and that's not even the low of the session, it was down 369. we should look at vicks, volatility index, wall street index and exposing the jitters and up 15.25% and some could be due not just to the pitch situation, but to a signal we got this morning that the u.s. economy is running at a fast clip and could mean the federal reserve will continue to raise interest rates. that signal, avp report for july, precursor to friday's labor department noted that private sector added 324,000 jobs during the month, well above the expected 189,000. this o adds to the head scratchr of the downgrading and janet yellen came out swinging in virginia. edward lawrence was in the audience.

edward. reporter: yeah, liz, she's not extra points and about this obviously and -- happy about this obviously and fitch downgraded to double a plus because of continued deterioration in the economy over the next three years. also they mentioned this back and forth over and over again, this game of economic chicken between the white house and congress over the debt ceiling. a treasury secretary janet yellen calls the assessment flawed and using flawed data saying it's unwarranted and says "fitch's decision is puzzling despite f economic strength in the u.s. and strongly disagree with fitch's diggs and believe -- decision and believe it's entirely unwarrant". they blame foreman president trump for the downgrade and look at federal debt here and it's manageable now even though it costs more to service that debt with interest rates around 20-year highs but that may not always be the case as interest rates do rise. other market experts say this is a debt bomb that's just waiting to go off.

>> fundamentals will matter whether it's three months from now or six months from now, but you're on an unsustainable path with the reckless spending and where we are with interest rates. reporter: committee for responsible federal budget says this is a wakeup call for congress and the president to do something about the government spending. back to you. liz: one of the interesting things we're watching, and it's not just the treasury yields spiking to year-to-date highs, edward, is the dollar. it wasn't imploding in any way shape or form. so we keep hearing people saying the dollar will no longer be the reserve currency of the world but look at this, every foreign currency is lower against the u.s. dollar right now except for the yen. obviously it looks like it still holds the reserve status. what are you hearing? >> yeah and the feeling within the administration is we'll hold that reserve status for some time to come but market experts

and one came out and said this is one more chip away at that reserve currency, and folks outside the u.s. around the globe could be looking into the u.s. saying, geez, what's happening? listing all of the things going on with raising interest rates and the debt ceiling game of chicken that we end up playing and with the budget impasses we have every time a budget needs to be renewed and that's one more chip is what his concern is but as of right now, the administration feeling they're confident the row serve currency remains the reserve currency and won't change and the susan li a good place to put the money. liz: if i had a grain back for every time somebody said the dollar wasn't going to be the reserve currency anymore. but it is interesting to see, folks, that we are now looking at dow jones industrials like about 312 points and lots of red on the screen. what's green is volatility index, fear index for wall street up about 15%. we're keeping an eye on that. and what about the commercial real estate picture?

we keep hearing that's the locomotive that slams into the wall. well, the owner of one of the largest portfolios of gaming and hospitality destinations properties just announced it had great earning ands it's got a brand new partnership with boogie spa chain canyon ranch. we're all over markets and asking the ceo next. closing bell, 55 minutes away and if you look specifically not just at the big board, which is down 314 points, but the s&p, we are watching that one very closely. losses right now topping 1.25% and nasdaq is down nearly 2%. stay tuned, we're coming right back. ♪ the chase ink business premier 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! the ink business premier card from chase for business. make more of what's yours. ♪ i have type 2 diabetes, ♪ ♪ but i manage it well. ♪ ♪ it's a little pill with a big story to tell. ♪ ♪ i take once-daily jardiance, ♪ ♪ at each day's staaart. ♪ ♪ as time went on it was easy to seee ♪ ♪ i'm lowering my a1c. ♪ jardiance works 24/7 in your body to flush out some sugar! and for adults with type 2 diabetes and known heart disease, jardiance can lower the risk of cardiovascular death, too. jardiance may cause serious side effects including ketoacidosis that may be fatal, dehydration, that can lead to sudden worsening of kidney function,

and genital yeast or urinary tract infections. a rare, life-threatening bacterial infection in the skin of the perineum could occur. stop taking jardiance and call your doctor right away if you have symptoms of this infection, ketoacidosis, or an allergic reaction, and don't take it if you're on dialysis. taking jardiance with a sulfonylurea or insulin may cause low blood sugar. ♪ jardiance is really swell, ♪ ♪ the little pill with a big story to tell. ♪ this is spring semester at over 13,000 us school districts, which have become top targets for ransomware attacks. but there's never been a reported ransomware attack on a chromebook. which is why thousands of schools like the fairfield-suisun unified school district switched to google tools for education. so they can focus on teaching and 22,000 students can focus on learning, knowing that their data is secure. ( ♪ ) this thing, it's making me get an ice bath again. what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep,

so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. back in the day, sneaker drops meant getting online to wait in line. now with xfinity mobile... ...we get the fastest mobile service and can get the freshest kicks asap. i got this. save hundreds a year over t-mobile, at&t and verizon with the best price for two lines of unlimited. nice job, little sis! they grow up so fast... i'm a fan. from xfinity.

liz: vegas is supposedly so incredibly hot but investors are taking their hands off cesar's roulette wheel and the stock down four full percentage points sliding after the casino operator reported a surprise profit loss and a shift towards services and higher cost and expenses that hit revenue growth and cesar's landlord on the other hand had a great second quarter and vici properties own 50, 5-0 gaming destinations and 18 cesars casinos and beat expectations. joining me in a fox business exclusive the leader behind vici's ceo edward. this is greet for you guys but

we know people have been flooding back to las vegas. i know you don't speak for cesar's numbers but how are you able to do so well, of course you're the land underneath the casinos at a time when people are coming back, but we still have inflation certainly at the services level. >> yeah, liz, good to be back. we're the owner of the land and buildings as well. we're very excited about the results that cesar announced yesterday and we believe mgm is announcing today and what we think is getting lost in the cesar's results is how strong the operating performance was both in las vegas and the regions. day-by-day we're getting more and more information about the continuing strength of the economy. liz, you would have seen today the adp jobs report, which almost doubled expectations. we're going to see what the jobs report is on friday. there's no question that the american consumer continues to have high animal spirits. liz: yep. and by the way, the one month,

three month picture for cesars and other casinos looks particularly good. you announced -- and this jumped out at us, you must be doing really well because you announced you're entering a important partnership with -- we call @ boogie club salon canyon ranch, health and resort, $150 million in preferred equity you're putting in as sort of a initial investment on top of the $90 million that will help expand the resort line. what's the end game here? it almost feels like that's a big chunk of money. you guys going to eventually buy canyon ranch? >> well, actually we are going to own the real estate of the tucson and lennox resorts and the real estate of the newly developed austin resort, that should be online by 2025 or 2026. in partnering with canyon ranch, we believe we're partnering with one of the most powerful luxury brands until the world right now

that's going to benefit tremendously from this secular trend towards wellness and life enhancements being driven by the demographics of the baby boomers and broadly speaking, there's a big focus on wellness and no more powerful brand we think globally in wellness than canyon ranch and we're really excited to put our capital behind them to grow the resort portfolio globally. liz: california, arizona, soon austin. not to mention the berkshires but you guys expect to build out 15 more over the next ten years. looks really interesting here. you really are building out many ways. you just struck deal withs four canadian casinos; correct? beyond north america and our neighbors in canada, where do you see future expansion? >> yeah, we see future expansion in gaming and nongaming in canada with eight assets once we

close on the deal with century. we're interested in the uk, europe, australia and new zealand. a lot of the british commonwealth countries and namely europe because what is really the global energy behind these experiences. liz: yeah. i get it and i look at all of this and i think, is it really though very, i guess, open to the vis attitudes of the economy and do you worry about that at all and what are you seeing with the economy? >> we see strength at consumer level and in particular with the businesses that we're principally invested in, whether it be gaming, high end resort golf like cabinet, high end luxury wellness like canyon ranch, these are categories that improve in the resilience

through all cycles and prove resilience through the great financial crisis, prove their resilience out of covid. so obviously we have to be conscious of the way in which the economy's evolving, but generally speaking there's been a long term secular trend on the part of consumers preferring to spend time and money on experiences versus things and that'll continue to run forward here for the next couple decades. liz: you've made it through very tough times certainly during the lockdown and we followed you every step of the way. thanks, edward. good to see you. >> thank you, liz. liz: ed pitoniak. the yield on that stock, vici, 5%. coming up, is the downgrade deserved? wharton professor jeremy siegle standing by live to join us next with his very outspoken reaction on fitch's downgrade of u.s. credit ratings. stay right there, professor. closing bell ringing in 44 minutes. dow jones industrials making a

new low here down 345 points and s&p down 64 or nearly 1.5%. the nasdaq dropping 312 points and we're coming right back with wharton's professor siegle. ♪ your best defense against erosion and cavities is strong enamel- nothing beats it. new pronamel active shield actively shields the enamel to defend against erosion and cavities. i think that this product is a gamechanger for my patients- it really works.

your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

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

308 points in the paints or two full percentage points and after fitch ratings downgraded the long term rating for the u.s. and bearish sentiment is rearing its ugly head on wall street. fitch cut long term default rating for the u.s. from triple-a to double-a plus citing fiscal de-steeruation over the next three -- deterioration over the next three years and a lot has to do with the overspending in congress. downing me live with the fitch downgrade is wharton professor jeremy siegle. did the downgrade reserved? >> no, it's ridiculous. the fed can always pay off the debt. the fed can print the dollars to pay off the promised debt.

there's no possibility of a default. i said that when s&p downgraded in 2011. by the way, the market reaction was four times as bad as what we're getting today. i also said there's no way the government can default on the debt. in fact, over the next ten years we had the lowest interest rates in histoand i greatest demand for -- in history and it ain't going to happen. liz: what do you think of fitch's timing? they cited this, you know, fighting in congress between republicans and democrats, which ask very true. very true. we got very close to the debt ceiling deadline last time around. then they lifted it but, you know, it's been several months and that was june. it's weird timing, is it not? >> it is. it is very unusual timing because there's nothing -- news about the deficit getting word. we have a trillion and a half

seth deficit and gdp not as bad as in the last four or five years that was really just nothing that seemed to me to suddenly say, hey, this is a time to go for it. now there had been rumors several weeks ago that fitch was on the verge of doing it and maybe final mee meeting and rept came through but, you know, very honestly, we don't have to worry about any default on the debt. that is not going to happen. liz: let me push back on don't have to worry, the fed can always print more money. isn't that the problem, professor, that we now are looking at the debt clock that's pushing $33 trillion, more than a trillion just since we lifted the debt ceiling recently. this is an issue, is it not? at what point does something begin to buckle badly? >> yeah, i'm not saying that debt doesn't matter and, you know, forget about it, certainly not one of those. what i'm saying is the

government will pay off the debt in dours. the question is what are those dours worth. if we get a totally out of control deficit. i don't see that for a number of years, but long term the picture does not look good. then, you know, it's a question of how much inflation are you going to have? how much is the dollars that, you know,s fed and the treasury going to pay off, how much are they worth? and how are we going to deduct that? how high interest rates will go. if foreign holders and domestic holders say i don't want the debt. interest rates go, 5, 6, 7, 8% and at that point, the government has to face it and until that crisis hits and people say, gee, this is really going to crush the economy. you know, i think the stalemate in washington, in congress is going to continue. liz: to that end, we're at 5.25% on interest rates now. that would mean that next year, just to service the debt, the

interest will be a trillion dollars. so why is the u.s. dollar not flagging here? i mean, we've seen very interesting behavior where the greenbacked to and most opportunistic the -- green back today and most of the major currencies against the yen are down against the u.s. dollar? >> yeah, that's because the interest rates even with this, you know, potential debt default are most attractive in the u.s.. we have the highest short term interest rates, the highest even long term interest rates of all the industrialized countries. money is still flowing here, and they do remember what happened in 2011 after that downgrade that was just a temporary reaction and then the dollar took off after that. you know, it certainly is a little temporary ding here in the market and, yes, we do have long term problems but, you know, there was just no news

that would say that, oh, my god, thing haves suddenly gotten worse today as they have been compared to a week ago or a month ago. liz: yeah, that was a little strange. i don't per port to understand -- proport to be on the inside or understand what's happening. there's fine people on the inside of fitch and larry summers came out swinging that the move was inept and bizarre. we have strong data that are right in the rear-view mirror, adp came out and private payrolls way outsized compared to what was expected. we know that gdp for the second quarter, first print came out last week, better than expected. durable good sales, better than expected. what do you expect the fed will do in september? >> well, and not only that, not only has growth in the first half been better than not only the fed but i think any forecaster -- forecast, the at

atlanta fed third quarter gdp running at 4%, which is really unbelievable and that's what happened and bondholders looking at strong growth and actually asking themselves, hey, you know, the fed may not be done raising rates and -- liz: what do you think? >> this economy is chugging. liz: what do you think the fed will do? >> at this point, there's so much more data yet to come out, and we'll see. payroll is obvious. we've got adp and it has not been particularly good at forecasting the friday payroll so we'll see. it's come out strong last month than the payrolls so we have a, you know, where she a come more payrolls and to see where whether we see that slow down in the economy, i think the fed is really data dependent on if there's a slow down or not. if there is not, i think very well could be another quarter point hike in september. liz: yeah, right now i'm looking

at fed fund futures here and 17.5% odds o quarter point and 82% that there was be a pause. professor, i have to ask you about a recession. what do you think the odds are of obviously the federal reserve says its team no longer sees one at the moment. >> yeah, i've downgraded mine. i see it as -- i had worried earlier this year, and i would put it at one-half and impact on to about one-third now and in it happens, it'll be shallow. it is also dependent that if we see a slow down in activity, the fed has to act quickly and cannot be shy about lowering rates just like it's been so hawkish on raising. it has to be two sided and if it says i'm going to keep it this high in the face of deteriorating activity, that will increase the chance of a recession. however, we certainly do not see any deteriorating activity so far in the data.

liz: and aside from the fact that the markets are hitting session lows right now with the dow down about 390 points, putting today and maybe some of a couple days of yesterday and last week aside, this bull market seems insash issue at the moment. insatiable at the moment isn't that a warning sign or do you feel s&p can hit 5,000 by the end of the year like many gurus on wall street are predicting? >> i still think the momentum is upward despite today's selloff, the money is still flowing in and there's still a tremendous amount of skeptics. now, i don't know about whether five thousand will be it, but, you know, we're within a6% of the -- 5, 6% of all time high and i can see that all-time high being challenged before we get bears moving into the market. i still think the short term trend is up despite today's selloff. liz: okay, all time high will be challenged before the bears come

in with their claws to slash. in that case, is there a way where you look at the entire market and whether it's derivatives or put some call where is you put at least some type of protection into a portfolio that works best? >> would recollects if y wow, if you're a long term investor, i'm not scared at the levels and i don't advocate being a timer on these and buy puts on the s&p and gives you downside protection or better yet sell callouts that give you ink and they do cap how high it will go but give you income in the meantime. that might be a better strategy if you really worry about it. but if you're a long term investor, i would still hold your stock portfolio. we're nowhere near as crazy as we all saw in 2000 at the tom of the internet bubble. we had a pe of 30 and now

there's a pe of 2021 much more reasonable than back then. so long term holders do not fear, short term holders might consider some protection, but i don't see any immediate threats. and in fact, i still think short term trends are upward. liz: short term trends are upward. front pushing festivus sore, a lot of -- professor, a lot of great information coming out of your wharton brain. thank you so much. we really appreciate it. jeremy siegle and checking other market movers and we hit fresh, fresh session lows and dow jones industrials down 400 points and we're about there, down 398 at the moment. the s&p is losing 1.5 full percentage points here. down 70 points and nasdaq down 336. we should look at electronic arts. video game publisher losing ground at this hour, down about 7.6% at the moment, even after the company posted record first quarter results. ea says first quarter success

was driven specifically by fifa 23 and star wars jedi survivor game and the ea path to going forward is strewn with obstacles and has the fifa three decade coming to an end and not great timing because everyone is waking up to soccer. fifa2023 was the last iteration of the companies and increased competition in the space and lower spending among gamers. as a result, ea is guiding for weaker than expected second quarter net bookings. pinterest, that's getting pinned down by the bears after it is second quarter results revealed expenses are outpacing sales just like cesars. pinterest down 4% said its total cost and expenses grew by 11% year over year and sales only rose by 6%. on the positive side, social media and image sharing site saw a 30% increase in global add impressions and monthly active

users rose 8% year over year. pinterest stands at $27.74. humana look healthy and rising by 7.25% and health insurer saw a lower than expected spike in nonurgent surgeries despite the previous warning that pent up demand would drive a surge in medical claims. generac, it's flaming here by pretty big margin the manufacturing and given resent extreme weather events but the company said softer consumer demand for home improvement impacted shipments of the home stand by generators. that stock at $116 and change. generators right now and heat

reprieve in the northeast up for lounge and dealing with power bills and we've got a ceo of new jersey-based utility pse and g of skyrocketing price of powering up the ac. that's next. and, you know, dawn ago t-shirt is one way to stay cool and that's why you have toasty listen to my -- little did he know getting a "real job" would lead to hundreds of millions in the t-shirt business. download his incredible story, the true classic founder and listen to the podcast wherever you get them. pscg and eceo is next.

♪ let innovation refunds help with your erc tax refund so you can improve your business however you see fit. rosie used part of her refund to build an outdoor patio. clink! dr. marshall used part of his refund to give his practice a facelift. emily used part of her refund to buy... i run a wax museum. let innovation refunds help you get started on your erc tax refund. stop waiting. go to innovationrefunds.com you really got the brows.

♪ (phone typing) (message sound) (message sound) ♪ ♪ shut it down ♪ ♪ blackpink in your area ♪ ♪ shut it down ♪ ♪ what-what-what-what? ♪ ♪ this isn't just freight. these aren't just shipments. they're promises. big promises. small promises. cuddly shaped promises. each with a time and a place they've been promised to be. and the people of old dominion never turn away a promise. or over promise. or make an empty promise. we keep them. a promise is everything to old dominion, because it means everything to you.

salonpas lidocaine flex. a super thin, flexible patch with maximum otc strength lidocaine that contours to the body to relieve pain right where it hurts. and did we mention, it really, really sticks? salonpas, it's good medicine. with your hearing, if you start having a little trouble, you're concerned that it's going to cost you money. to this day i only paid what i had to pay for the device... when i go back everything is covered. there's so much you're missing by not having hearing aids. we'll find you a hearing aid that fits your lifestyle and budget at one of our over fifteen hundred locations. call miracle ear at 1-800-miracle and schedule your free, no obligation hearing evaluation today. - [narrator] wounded warrior project helped me find the strength to go further than i ever thought possible. - [narrator] i was able to come outta my shell and really connect with others. - [narrator] so i can feel like part of a team, part of the community again. - [narrator] it's possible to live better.

- [narrator] it's possible to have a voice and to be heard. - [narrator] to feel understood. - [narrator] to find peace. - because i've experienced firsthand that anything is possible. (inspirational music) we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of people sell their policies for cash. even term policies. i can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're sitting on a goldmine, and you have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear

that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. ♪ (upbeat music) ♪ ( ♪ ) constant contact's advanced automation lets you send the right message at the right time, every time. ( ♪ ) constant contact. helping the small stand tall.

liz: athey say on game of thrones, winter is coming. we really know it seeps obstructing cerumen suds to bring up cold weather while blistering temperatures torch much of the u.s. this summer, but extreme weather comes in many temperatures in the nation's electric grid has been strained in many parts of the country to keep up with the demand in cold and hot climbs. but with national gas prices plunging 50%. why aren't power billing coming down? president and ceo of psc and g.

new york's long island as well and new jersey. down 1% according to june cpi report. electricity prices were up 3.5% month over month, 5.5% year over year. it just makes people wonder why their utilities are continuing to rise when we know that natural gas prices have come down year over year. >> yeah, liz, thanks for having us. you know, you're right. i think if you look at some of the numbers that you just quoted across the country, there are certainly pockets of the country where we're seeing high prices and they've continued. i think some states though have weathered the storm pretty well and i'll speak to specifically new jersey. we were able to reduce our gas prices by almost 3% by putting in some new rates for customers over the last several months, which has been a good relief for them. it'll pay dividends when winter

does come. so we'll see that continuing as we go forward. new jersey is unique because we can make the adjustments as prices adjust in the marketplace. on the electric side, we've ways to feather in prices as they've gone up and feathered them in as they've gone down. looking year over year, new jersey only had a 3 bernards healthcares increase in their -- 3% increase in electric prices and looking back over three years, it's been the same amount and the result for the customers is on an affordability basis, we've been in the top 10% in the nation for our customer base. that's just great news. we've been holding it around 2 to 3% of median income. liz: i wonder where my discount went. was it lost in the mail in i got the largest peg bill in the mal

and it must be some kind of disconnect depending on what's going on. how are you preparing for those kinds of issues, whether it's supply, demand, blistering heat or freezing temperatures. >> liz, when we get done, give me your address and make sure someone checks that out for you because there's a disconnect there. liz: there may need to be a tweak in the meter. >> we can always refund that for you but, no, we're trying to do a number of different thins. we have our own cost controls in place on a regular basis as a company and have done that. what new jersey has done is they've lever that had in -- they sell on an auction basis, one-third, one-third, one-third each year. you see that average price and by doing that, we've been able to keep prices down for customers. it's that all of the above strategy we've had in place for quite some time and as a result the customers have benefited from it. liz: how did you guys bolster your grid to ensure there wasn't be outages?

>> our story goes back to 2003. not many people want to talk about it, but you go back to the blackout of 2003, and we started to rebuild that transmission grid that you're seeing on the screen now. that process started in 2003 and has continued to today. we've done most of the large work that we needed to do in the state of new jersey, and then in 2013, super-storm sandy hit us and that provide us with the opportunity to rebuild and re-design many of the substations and switching stations. again bolstered the reliability. our focus now is on last mile into the momentum and making sure that reliability can be as good as those high transmission lines that we were able to start rebuilding in 2003. lots of work to do. liz: ralph, i got to bring up nuclear. we had oliver stone, the director on and he's put out a very pro nuclear energy

documentary. it really makes sense. it is so much cleaner than obviously thins like coal and fossil fuels, all though nat gas is really clean, but you have two nuclear power plants. tell me what your lobbyists and what you try to tell washington dc about making more nuclear power plants. >> yeah, look, you're dead on. nuclear is absolutely from a cost standpoint, lowest cost carbon-free generation we can have. all in, our price structure has been -- has stayed really good for our customers and the regulators have seen that. that's why the state of new jersey stepped up and put a zec process in place to help the plants stay open when prices were depressed in the marketplace and the federal government has done the same. it's not necessarily lobbyists doing that, but i think folks are just copping to realize the value -- coming to realize the value of carbon-free generation

that those plants provide to the customers in the area that . goes beyond that and becomes a national security issue at some point as well. liz: ralph, thanks for coming on, and i already am hearing from some viewers saying my bill hasn't come down yet but listen, we're watching it all so closely and pass those savings onto customers when and if you can. >> well, liz, we're going to follow up with you and make sure you don't have a third party supplier. liz: i better not, i'm getting a pseg bill. thank you, ralph, good to see you. >> thank you, take care. liz: did you hear this, striking hollywood writers are holding first talks with major studios on friday. the first time since going on strike way back in may. is there a breakthrough? we have a live report next. closing bell 14 minutes away. the dow is off the lows but still losing about 340 points. listen, the horses have been spooked a bit by the fitch

downgrade of u.s. credit rating and nasdaq is still down about 300 points. we're coming right back. ♪ (vo) while you may not be a pediatric surgeon volunteering your topiary talents at a children's hospital — your life is just as unique. your raymond james financial advisor gets to know you, your passions, and the way you give back. so you can live your life. that's life well planned. after advil dual action back pain... yo! uh! ha! ha! [dog bark] what? my back feels better. before advil... new advil dual action back pain fights back pain two ways. for 8 hours of relief. meet the future. a chef. a designer. and, ooh, an engineer.

all learning to save and spend their money with chase. the chef's cooking up firsts with her new debit card. hungry? -uhuh. the designer's eyeing sequins. uh no plaid. while mom is eyeing his spending. nice. and the engineer? she's taking control with her own account for college. three futures, all with chase. freedom for kids. control for parents. one bank for both. chase. make more of what's yours. . . acks. but the same ai-powered security that protects all of google also defends these services for everyone who lives here. ♪ ♪ ♪ 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? ♪ ♪

municipal bonds don't usually get the media coverage the stock market does. in fact, most people don't find them all that exciting. but, if you're looking for the potential for consistent income that's federally tax-free, now is an excellent time to consider municipal bonds from hennion & walsh. if you have at least $10,000 to invest, call and talk with one of our bond specialists at 1-800-217-3217. we'll send you our exclusive bond guide, free. with details about how bonds can be an important part of your portfolio. hennion & walsh has specialized in fixed income and growth solutions for 30 years, and offers high-quality municipal bonds

from across the country. they provide the potential for regular income... are federally tax-free... and have historically low risk. call today to request your free bond guide. 1-800-217-3217. that's 1-800-217-3217. ♪. liz: "fox business alert," and

fox market alert. dow down 323 points at the moment. still a lot of red on the screen. the vix is still spiking about 15%. nasdaq down 298 points. s&p still down about 1 1/4% which is where we were at the top of the hour. warner brothers discovery set to report earnings before the bell tomorrow. here is what analysts will really be looking for. they will be eyeing the effect of the ongoing writers guild strike quickly approaching its 100th day. as the writers union is set to resume settlement talks with hollywood studios this friday. to kelly o'grady. kelly, the studios yesterday broke the stalemate. they reached out to the writers. good sign? >> reporter: that's right, liz. i actually want to bring this to you. this is breaking news, sag after florida, the union that represents the actors, they're urging their members to come back to the table now that the writers are coming back to the table. the studios reached out to the

writers guild. they proposed a meeting to reopen the talks. writers have been on strike since may 2nd. that makes it exactly three months today. for the writers two bilge sticking point. also for the actors as well by the way, artificial intelligence and streaming residuals. the writers are afraid a.i. will outright replace them but make them only as clean up crew on the script which pays far less. writers seek better pay when content is put onstreaming services, tv shows run fewer episodes than the old 22 episode run previously standard for networks. i spoke to a strike captain about returning to the table. here is what he had to say. >> we're waiting for them to return to the table, to really talk about the issues that concern us as creatives, as the people who made these companies billions in profit. when you look at all of the proposals we put on the table, we want to negotiate with the

studios, we understand it is a conversation, but when you add up all of our proposals we're asking for 2% off the billions that our shows make these studios. >> reporter: danny also shared that the wga recent requests on a.i. were completely rejected by studios. the counter by them a yearly technology meeting to discuss ongoing concerns. we reached out to the, we remain committed to finding a path with mutually beneficial deals with both unions. if they can't come to agreement we would get some of hollywood up and running tv shows and comedy shows could be written but nothing could be filmed unless you have actors to perform them. the writers strike in 2007 caused 2.1 billion in economic loss according to the milkin institute. imagine what this could be now in addition to actors. send it back to you. liz: come on now, i don't want to see this. not good, not good. let's hope that the two sides

can at least come armed with a few olive branches, that sure would be nice. thank you for the news, kelly o'grady. closing bell five minutes away. the fear gauge hasn't moved it is up 15 and 3/4% high of the session at this moment. as for markets are off session lows. we've gottens after the bell. if we look at some names on deck for earnings, ahead of it, paypal, qualcomm, occidental petroleum. joining me now value engine chief equity strategist and portfolio manager jordan kimmel. what do you make of the price action today and as you weave in the story of the fitch downgrade are you still bullish? >> liz, i'm bullish for a few months from now. the fact is just last thursday we hit this kind of a level of overexcitement and extended

overbought market. so we live in extreme times. personally i think a lot of machines are trading on moving averages right now which is a dangerous thing. so you know, value engine capital myself, we're highly disciplined, quantitative, try to be as unemotional as possible but you know, this is probably not just a one day sell off of the market t does need to cool off a little bit. liz: here is what i want our listener investors and viewers listen to you. everyone always says is it time for growth stocks or time for value stocks? you found a couple you say check both boxes? >> not only check both boxes but all boxes. my whole theory is based on value, growth, momentum, all three of them. if you look for example, agco, which is, company that does automation on the farms. so it is a nine pe.

compounding it over 50% growth rate for the last couple of years. i brought you just a few months ago, jakks pacific. jakks pacific has a great niche in terms of licensing really hot products, whether they are dolls for movies or super mario brothers. they're trading at around a five pe and the profit margins are three, four times all other toy manufacturers. so you know, what it is, is it is a matter of not chasing the momentum. the whole thing with a.i. got a little overheated. i'm holding more cash frankly than i like to but you know when it comes to companies, warren buffett likes to say, you do not buy a farm based on tomorrow's weather forecast. you have to do a little bit better than that. i thought you did a great job earlier in the session with professor siegel and everyone's worried about a default which will not happen but maybe, liz, maybe this fitch rating gets

politicians to think a little more, they just can't overspend. maybe we get a little more transparency soon, to see the cost overruns and these terrible spending of our money. we don't mind paying taxes if it is spent right. liz: jordan, of all the names, you've got industrials, you've got consumer names, your tech names, you say these check all your boxes and some of them are definitely in the early stages, let's put it that way. for example you've got c3 dot a.i., splunk, palantir, you like that one. broad come, everything is down today, arguably i would say you're saying everything is cheaper? >> everything is down today. the fact some are less cheap than others. crowdstrike is something where you know, the cybersecuritys really is important. they're one of the leaders in it, they're a little expensive. a.i. craze got people to buy everything, when you shake it

out a year from two now, a.i. and palantir will be the winners in this group very clearly. they're a little expensive right now, frankly, so we're holding a little bit more cash a little bit more price dip, little more cooling off the overheated market before you pull away and pull out the positions fully. liz: so good to see you, my friend and i thought that interview with jeremy siegel which we will put up on foxbusiness.com was very important. not only did he say that the downgrade was ridiculous, he said long-term investors should not sell. there is no possibility of a default. [closing bell rings] liz: he feels this market will continue to do very well and the economy looks good too. major averages closing off the lows of the session. the dow fell as much as 404 points. down 345 now. ♪. larry: hello, folks, welcome it "kudlow," i'm larry kudlow.