students in that missed school over and over and over again. yeah, they weren't all shoplifting, but the rationale is the same. there's an easy way to navigate life and not play by the rules. ultimately, this is not about politicians though, folks. it's about voters. why the heck do we keep putting people in power who are encouraging our children to steal? why? better take a stand. or it's going to get a whole lot worse. liz claman, back to how yo. liz: plastic cassio watch, digital, 1978. let's wear it. it's a really sad state is, isn't it, charles? really. charles: really tough. liz: as we kick off the final hour of trade, we need to take a look at invidia. with just over 24 hours before the chipmaker reports quarterly earnings, a boom in the stock this morning has turned into a bust. minutes after the opening bell, shares rocketed to an all-time high of about $481 and quickly

lost propulsion. right now very close to session lows here, we're at $458 and change. that is a reversal, now down about 2 the.5%. and if you think nvidia's kind of acting like a meme stock, sort of is. it's number eight op on the -- number one on the site that tracks meme stocks on reddit. propelled by its leadership position in a.i. chip manufacturing. yeah, there's a lot of froth and excitement about nvidia. a lot of it is certainly justified, but just yesterday silicon valley angel investor jason call cannabis appeared on "the claman countdown" with this warning. >> this is very overheated. it's the biggest name, but you have to ask a fundamental question, will they have a a monopoly? that is the question. will they have a de facto or monopoly on these chips? i think the answer is, no.

liz: nvidia close to the bottom of the nasdaq at this hour. the tech-heavy index is still gaining about 27 points but no real repeat of yesterday's 206-point gain. a gain, by the way, oddly led by nvidia yesterday and also tesla. tesla had a spectacular session on monday, spiking 7.3%. right now it's gaining another three-quarters of a percent. year to date up about 90%. that's been a real winner at the moment. and as we look at the broader picture, the point loss that you see on the dow jones industrials, down 141 points, that makes it down 5 out of the last 6 sessions. the s&p lower by about 6 points. and with no major catalysts until nvidia earnings until tomorrow and then federal reserve chair jay powell's speech friday from jackson hole, wyoming, investors are warily watching bond market as the 10-year yield stays at a 16-year high, 4.32%. yesterday it was about 4.33%.

by the way, just last month it was at 3.95 president. the 2-year yield, which is the most sensitive to federal reserve policy, vaulting above 5% and right now is at 5.0 # 4%. before i came down here to the set, it was at 5.03 percent so, listen, the trend is up. with treasury yields surging to their highest levels since before the 2008 global financial crisis, how long do stocks really happening on before a real correction? let's get right to the floor show. joining me now, charles schwab chief investment strategist liz ann sonders, one of the most widely followed and respected on wall street. we've already seen the s&p pull back, what, nearly 5% since its intraday high of last year. does that trend continue, and what kind of pressure are rising yields exerting on equities? >> i think that's a big part of the weaker equities story particularly given that the rally since last october was all multiple expansion. there was no contribution from

the denominator in the pe equation. and then you saw the upside breakout this yields and all else equal, that puts more pressure on the more highly valued segments of the market. i think the other issue has been what had become a pretty frothy sediment environment. and the last thing i'd say is, you know, prior to -- excuse me -- prior to early june, we had that concentration problem -- liz: yeah. >> you had seen only 15% of the s&p outperform the index. sorry. liz: that's okay. >> i lost my voice -- over the prior 60 days. liz: while you clear your throat, believe meing i've been there, and i'm the only one on the set. that's what i think people are are wondering about, the treasury yields continue to rise and normally that would certainly are shake the equities markets. we're not exactly earthquaking here, right? to me, i looked at this and i

say, well, the nasdaq's still rising. >> so it's orderly so far. but if you look at the period up until the recent high on july ie surface the breadth didn't look great. and unfortunately in this pullback phase, the breadth is actually a bit worse than what you're seeing in terms of just the pullback. so i think this is the kind of market where you can't just look at what, at the index level is happening. you have to look under the surface. and we're seeing metrics like equal weight, the average stock being down relative to the s&p to the tune of more than 10%. so i think it's some of the under-surface stuff that maybe is more connected to the surge in yields, the concern about fed policy, the stickiness of inflation, all the uncertainties that we talk about every day. liz: well, certainly not under the radar, above the radar today. you've got s&p downgrading at

least five banks, the regionals here, and we can look at some of them. they are not doing well today. it's a tough owner operating condition, that's what s&p mentioned. you've got associated bank corp., valley national, comerica, key corp., umb financial, all of them down anywhere from 2 to 4% now, 4.5% for associate bank corp.. borrowing costs continue to surge. how much does that color an investor's thinking? >> so i think unique of this environment particularly since march when we started what maybe we shouldn't call a crisis, i think jamie dimon call it an incident but whatever we want to call it, you've seen the significant underperformance on the a part of the financials. and it's often the case that we look to the technology sector to see if leadership resides there, and that a usually gives a sense of whether a rally or a bull market has legs. i think unique in this environment is that i think to

some degree necessity of financials just start to participate because if it was some brand new, booming bull market that began last october, the absence of participation by the financials would make it the only time you have seen something like that. is so clearly a second downgrade is, matters. and i think we're now dealing with the whole concept of long and variable lags and the ripple effects into the lending environment. and i think that we'll start to see that this some weak weaker economic growth which, by the way, may not be a bad thing from the fed's perspective in terms of an ingredient to continue to bring inflation down. liz: well, thursday the jackson hole meeting of central bankers begins and, of course, we know fed chair jay powell will be peeking on friday. if you could, if powell telegraphs another rate hike or maybe two -- kind of doubtful, two by the end of this year -- how should an investor who has a

decent time horizon look at stocks if they react negatively? is that a buying opportunity? >> well, it depends on the investor. there's no cookie cutter answer to that. it depends on the overall expose were to equities, are they doing some sort of dollar cost averaging or periodic rebalancing, and pullbacks do offer an opportunity. but that's not a blanket recommendation for everybody. if i think we've had this year a few bouts where leadership has gone well down the quality spectrum in terms of the types of factors that were working where you'd get a pop in higher volatility, higher beta the but, you know, no earnings profile kind of stocks. we've been saying you want to, you want to fade those rallies and continue to lean into quality of oriented factors. and what's interesting about that is that would have kind of had you in or kept you in some of the mega cap names that were

dominant at least through june of this year. companies that have strong balance sheets and have that strong free cash flow meaning that they're self-funding company. they don't need the capital markets, they don't need to go to the banks system, positive earnings revisions and price. we continue to think that's the way you want to focus on the equity side of things, stay up on quality. even though it's not my area, that's been our same mantra on the fixed income side of the equation. liz: well, yeah. the super seven stocks that really dominated up until mid-year, i guess, the microsofts, apples, nvidias of the world. breadth though overall, market breadth, deteriorating, is it not? what signals does that send to you as somebody who is an investment strategist looking across the spectrum at how to invest? >> well, it tells you that this is sort of a true pullback. whether it ultimately becomes significant enough to be defined as a correction meaning 10%, i'm

not sure that the minutiae of that matters. but you do want to to see improving breadth. in fact, at the october lows of last year even though the indexes at that time were taking out the june lows, under the surface you were seeing improving breadth. that's not happening this time. now, at the beginning of june when you had all of the performance since october account for particularly since this march period accounted for by those, the magnificent seven, super seven, whatever you want to call it, only 15% of the s&p was outperforming the index over the prior 60 days. you actually started to see some beneficial convergence meaning pullbacks started up the cap spectrum, but you were starting to see broader participation. that didn't last very long, is and now the breadth deterioration is a little bit more froth. and i think we need to start to see some stability there to get a sense that, okay, we at least

in the short term have some stronger footing. in terms of what the investor should do, it goes back to the disciplines around diversification and rebalancing. what i already talked about. these are boring things, i know they're not headline-grabbing, maybe it doesn't make financial tv, but it's really the way to navigate through most market environments -- liz: well, we're mt. business of making quality financial tv, so it is quality advice. that, i think, is the host important thing. and as always, thank you for giving it. we appreciate it. >> my pleasure. liz: liz ann sonders of charles schwab. we're keeping our eyes, we said, on treasury yields. as the 10-year goes, so goes the cost of new mortgages, hitting the highest e level in decades. homeowners locked into cheap mortgages are not upgrading to another house or a new house, they're upgrading the homes they have. enter the novogratz, courtney

and robert have a whole bunch of bundles at price points so reasonable, they're selling out. what because -- does that stay about the state of the housing industry? with the dow jones industrials down 10 a -- 015 point, "the claman countdown" is coming right back. ♪ ♪

new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. (woman) what if my type 2 diabetes takes over? what if all i do isn't enough? or what if i can do diabetes differently? (vo) now you can with once-weekly mounjaro. mounjaro helps your body... ...regulate blood sugar... ...and mounjaro... ...can help decrease how much food you eat. 3 out of 4 people reached an a1c of less than 7%. plus people taking mounjaro... ...lost up to 25 pounds. mounjaro is not... ...for people with type 1 diabetes or children.

don't take mounjaro if you're allergic to it,... ...you or your family have medullary thyroid cancer,... ...or multiple endocrine neoplasia syndrome type 2. stop mounjaro... ...and call your doctor right away... ...if you have an allergic reaction, a lump or swelling in your neck, severe stomach pain,... ...vision changes, or diabetic retinopathy. serious side effects may include pancreatitis and gallbladder problems. taking mounjaro... ...with sulfonylurea or insulin... ...raises low blood sugar risk. tell your doctor if you're nursing, pregnant,... ...or plan to be. side effects include nausea,... ...vomiting, and diarrhea,... ...which can cause dehydration and may worsen kidney problems. (woman) i can do diabetes differently with mounjaro. (vo) ask your doctor about once-weekly mounjaro.

wow, you get to watch all your favorite stuff. it's to die for. and it's all right here. streaming was never this easy, you know. this is the way. you really went all out didn't you? um, it's called commitment. could you turn down the volume? here, you can try. get way more into what your into when you stream on the xfinity 10g network.

liz: home buyers have not seen mortgage rates this high in nearly 23 year. according to mortgage daily news, news daily, the average 30-year fixed has climbed to 7.48%. just a year ago the 30-year fixed stood at 5 a.5%. millions of homeowners hocked

into much lower rates remain cemented in place and have all but given up their hunt for a new place. that behavior shift is benefiting boutique furniture biz the novogratz is capitalizing by offering affordable furniture in a box, bundling pieces to complete a room. the bundles being snapped up by consumers looking to enhance their homes for hybrid work or having to prepare for college graduates moving back home because they can't afford a mortgage. joining me now in a fox business exclusive is the founders, robert ask courtney novogratz. boy with, i'll tell you, this is a weird position. have we ever seen this before where low inventory, skyrocketing rates can and people locked into old mortgages that are around 3-5%? >> i don't think we ever have seen it. you know, we've been in the real estate game for a long time. and for the last five years, ten ten years, people are, like, where do you think real estate's going? the i can't tell you that, but i

can tell you, you know, a year with ago and beyond rates aren't going any lower. so i'll give you the facts. now it's a little trickery out there. >> i think it's uncertain times, and so most people are not looking to upgrade or change their homes, they're going to enhance where they live right now because of the mortgage rates and they're locked in at a good price. liz: well, locked this or stuck. >> stuck, yeah. liz: some wand to expand, don't they? is. >> we saw a lot of growth of movement during covid, but now it's polar opposite. 90% of potential home buyers are staying in their homes, enhancing their houses, and they don't know how long they'll be there. liz: this concept that you guys came up with, you have a living room in a box, we can show that first. comes with several pieces. where did the concept come from, and describe what it is because i was looking on the site, many are sold out, it looks like there's demand. what kind of demand are you seeing? >> it's a great demand. when we design for ourselves or our family, it's do our work.

having adult children, robert and i thought let's deliver a room in a box. we do all the curating for you. it's stylish pieces that are affordable, and so you get the anchor piece of the rug, the sofa, the lamp or if it's a kitchen, your kitchen set or your bedroom or home office. because of can covid, so many people are working from home and that shift is here to stay. and so they want to enhance their environments where their work space is, and so we provide that. it comes, liz, to your door in a box. we've done all the heavy lifting for you, and you can kind of layer with throw pillows, a lamp, a blanket, whatever you need for that space. >> yeah. i mean, courtney's right, we were in a temporary place a couple years ago, and we had in our living room all the things were novogratz, and this image of the place showed up everywhere in a lot of magazines, and we came up with the idea then. everything in that room was under $9000. >> yeah. well -- 900. think of college students, for

example, liz. most of them are deciding to live off a campus because it's more affordable or about the same cost as living in a dorm. so they can basically be across the country, they can click and buy it, shop the novogratz, and find their pieces that are space-saving, you know, units and furniture that we've picked out. liz: we look toward names like lowe 's and home depot. lowe's just reported earnings today, and they did have somewhat of a warning. they're doing incredible business. for people who want to diy and do these particular upgrades like plumbing and things like that. >> right. he liz they expect home improvement gland to slow in the second half of the year. what do you see? >> you know, i don't know if it'll keep the pace, but home demand is hot, it's here for a while. i think covid really started something that's not going to just go away. i think people aren't going to be moving as much as hay once did, and i think home is everything to people. so home depot, lowe's, our brand is in both those places, doing

quite well. but i think we're going to see more growth. liz: okay. i have to transition to the real estate market. you span both sides. you sell, obviously, direct to consumer, you have a licensing business with your furniture, but you also flip homes. i mean, you've done an incredible one in california, i saw it. it's just outside beverly hills proper in the hollywood hills. and you've got to tell me about where that stands, because it had listed several months ago at around $17 million. there's been a price drop. what's going on in that world? >> well, l. l.a.'s getting hit by a few things. you have measure ula which is a mansion tax. it came out of no where 900 days ago on this where -- 90 days ago where anything over $5 million gets a 5% additional charge. it basically halted the high-en- liz: you're kidding? it just froze the high end. >> literally stopped it. liz: unintended consequences.

>> exactly. they didn't stop about all the construction being stopped, the guy that works on the pool, the landscapers. like everybody in l.a., dealing with interest rates and having a up couple big strikes going on right now. liz: oh, yeah, it's a chilling effect -- >> yeah, and definitely not healthy for the city. liz: vermont, new york, hawaii have the mansion tax -- >> new york's a had it for quite some time, so i don't think it was such a shock. l.a. came out of nowhere. and l.a., there's a big construction business there, people flipping homes, different than new york. i think new yorkers are using to it, it's been around. liz: the house that you renovated, absolutely stunning. what do you expect? how long do you carry manager like that, and and do you store see another price drop? >> well, for robert and i being home flippers before it even had a name, we were constantly moving in downtown manhattan. so we're always either living in

our houses, or we rent them out from time to time. >> we live through september 11th here, and we lived through -- liz: downtown. >> -- sandy, we lived through covid -- enter flipping houses. [laughter] >> i'm a firm believer a rates are going to come back down. not to those lows again, but you'll see it stabilize soon and a slow, gradual downturn. liz: new york federal reserve does a quarterly list of, you know, where we stand on mortgage originations. mortgage originations in the first quarter dropped to a 9-year low. again, you probably see a reverse response to your furniture business then. >> uh-huh. >> yeah. because, you know, people are shopping not just with furniture, they're looking for value. and our brand has always been affordable design that people can afford. >> it's attainable. and people, i mean, they -- if you look at anything, say you're going to go buy a bed, our bed is incredible prices, and it's quality, and it competes with

everybody else, high and low. liz: in fact, "the new york post" listed the talulah bed as one of the best, most comfortable -- >> named after our daughter. [laughter] liz: exactly. and your other daughter, bela, we're -- bellamy, we're family now -- >> yes, we are. liz: it's an interesting window to look through your business. thank you very much. >> thank you. liz: the novogratz. driverless electric shuttings -- shuttles are tooling around atlanta. up next, we're taking you along. there's ashley webster. he is hopping along the cumberland topper when we come back. all right. we're hitching a ride, ashley. closing bell, 36 minutes away. dow jones industrials still down about 13 a 5 points. the nasdaq up 22. we are coming right back. ♪ ♪

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. >> woman: why did we choose safelite? >> vo: for us, driving around is the only way we can get our baby to sleep, so when our windshield cracked,

we needed it fixed right. we went to safelite.com. there's no one else we'd trust. their experts replaced our windshield, and recalibrated our car's advanced safety system. they focus on our safety... so we can focus on this little guy. >> singers: ♪ safelite repair, safelite replace. ♪ if you have this... and you get this... you could end up with this...

unexpected out-of-pocket costs. which for those on medicare, or soon to be, is a good reason to take charge of your health care. so consider this. an aarp medicare supplement insurance plan from unitedhealthcare. why? because medicare alone doesn't pay for everything. and what it doesn't pay for, like deductibles and copays, could really add up. even thousands of dollars a year. medicare supplement plans help by paying some of what medicare doesn't... and making your out-of-pocket costs a lot more predictable. call unitedhealthcare today and ask for your free decision guide. learn more about plan options and rates to fit your needs. now if you like this... greater freedom... you'll love that medicare supplement plans have no networks and no referrals needed... see any doctor. any specialist. anywhere in the u.s.

as long as they accept medicare patients. these types of plans also give you more flexibility when traveling in the u.s. your plan goes with you... anywhere you go in the country. even better, these are the only plans of their kind endorsed by aarp. call unitedhealthcare today for your free decision guide. so if you have this and want less out-of-pocket costs... and more peace of mind... consider adding this. an aarp medicare supplement plan. take charge of your health care today. just use this...or this to call unitedhealthcare about an aarp medicare supplement plan.

liz: fox business alert, we are looking at a market in the red at least at the moment for the dow and the s&p. when with it comes to driverless vehicles, atlanta has become the place to see them in action. general motors' own cruze began testing there last month. while rival beep has partnered to provide free driverless electric car rides to braves games, we thought, let's take our viewers along for a drive. ashley webster, tell us all

about this. >> reporter: it's very cool, liz. this is the cumberland hopper. this is the name of this all-electric, autonomous shuttle, if you like. i don't mean on-- come onboard. it seats 10 people and, yes, you have to sit. you sit down, you're strapped in. but essentially what this is operated by is software. we can come in here, i can show you on the screen it has a predetermined route that goes around the business park to the shopping area and, yes, even to the atlanta braves' stadium which is just a stone's throw from here. all predetermined. there is an ainadapt onboard that stays with every trip to make sure everyone is buckled up and also to perhaps manually override. but it can stop on a dime if there are pedestrians or cars in the way. top speed, 15 miles an hour. it doesn't go that fast, but it's free and gets people around. i want to bring in kim menafee, executive director of the cumberland community improvement district. kim, this is a pilot program,

but so far what's the response been? >> the response has been outstanding. we've been thrilled at how the community has used the shuttle. we have had over 300 riders -- 1300, and 90% of those said they felt safe and they would love to see more autonomous if mobility in the district. >> reporter: so it's free for now, but eventually t it's not going to to be free, right in. >> we hope it'll be part of the transportation network within cobb county where we're located, so that's yet to be determined. but it's very -- something that we want the community to take advantage of. we're very invested in providing community-oriented transit to our community. >> reporter: and assuming it goes well, and it is so far, will you where expand? >> yes. the long-term plan, the cumberland homer -- hopper is part of a project that the cumberland community improvement district is developing called the sum bearland sweep, and it will be -- cumberhand sweep, and it will be three plus miles with dedicated walking and biking lanes and an autonomous i shuttle system.

we envision eight a or more shuttles that will serve this community. >> reporter: thank you. beep has this same kind of service, autonomous shuttles, in about two dozen cities across the country. and especially here in atlanta, i don't know if you've ever experienced atlanta's traffic, it's a lot like l.a. [laughter] you pretty much know what we're talking about. anything to get people out of their cars into perhaps an autonomous shuttle is a good thing, believe me. liz, back to you. liz: ashley and i know, what a mess, right? so hopefully that'll certainly cut down on it. good to see you, ashley. thank you very much. all right, fox business alert, we are looking at the markets at the moment and, again, it's been in this pattern for quite some time during this session with the dow and the s&p down, the nasdaq is up. now just by 7 points though for the nasdaq. all right, it is game on for microsoft and activision blizzard. the tech giant submitted yet another revised keel to -- deal

to u.k. regulators for its takeover of the video game company. those regulators had rejected the initial proposal and in response to their demand, it's called the cma, microsoft will not acquire cloud rights for existing pc and console games or for new games released by activision over the next 15 years. see, they're trying to appease these regulators. shared of activision blizzard up under just 1%. shares of japanese investment giant softbank are trending slightly lower after being higher at the bell after the company's chip-designing company arm officially file for a nasdaq listing yesterday after the bell. that was much-awaited. now, arm -- which is going to list under the ticker symbol arr armh when it was called arm holdings -- it plans to price its offering the following week of october, so no word on valuation. a reminder, softbank bought it in 2016 for $32 billion,

expected to price more than that, certainly. macy's shares have touched a 52-week low today. and we are just about off that low at this moment to $12.66. stock is selling off following its second quarter earnings report. the retailer reiterate a cautious outlook for its full-year profit guidance citing consumers who are prioritizing paying off their credit card and student loan debts over making retail purchases. gotta make a choice when times are tough. checking other department stores, they're really all getting swamped here. kohl's lower by 10%. nordstrom down merely 10%, and target is down about 2.6%. flip it over to shares of novavax, they are jumping close to 14% right now as the covid-19 vaccine maker said its latest vaccine is effective against a new strain of the virus known as the eros variant in clinical trials. the new shot is expect to be

rolled out to the mix in a few weeks pending approval from the fda. and speaking of covid, if one company enabled the world to communicate during the covid lockdowns, it was zoom video. the stock experiencing wild gyrations over the last 24 hours. right now it's down about 2.25% but had been way 7:as investors balance a winning quarter and an a.i. strategy with wary wall street analysts who are cutting price targets. next, the zoom chief financial officer joins us live on how their a.i. offerings are plague out and on the down-sell pressure zoom is facing among its business clients. and performing well under pressure is something everyone in business has got to learn to do and, boy, could we all learn some of those skills from pro wrestler ric flair. this man morphed his muscles into millions through unbelievable pressure. how's this? surviving a plane crash, battling alcohol abuse and through great personal tragedy. you want a master classes in

turning stumbling blocks into steppingstones? you'll get it from my brand new podcast episode. it just dropped a a few hours ago. spotify, apple, iheart radio, wherever you get your podcasts. the claman smackdown -- i mean countdown -- comes back in a minute. dow is now down 183 points. ♪ ♪ ♪ 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? ♪ ♪ ♪

♪ ♪ ♪ we don't just have everything... we have your thing. ♪ 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. - [speaker] at first, just leaving the house was hard. - [speaker] but wounded warrior project helps you realize

it's possible to get out there - [speaker] to feel sense of camaraderie again. - [speaker] to find the tools to live life better. - [narrator] through generous community support, we've connected warriors and their families with no cost physical and mental health services, legislative advocacy, career assistance, and life skill training for 20 years, and we are just getting started. the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first. start for free at godaddy.com blackrock silver is bringing new life to one of the great american mining camps in the silver state of nevada. with a new resource estimate imminent, one of the highest grade silver projects in america is about to get bigger. blackrock silver. ♪ (upbeat music) ♪ ( ♪ )

( ♪ ) ( ♪ ) -awww. -awww. -awww. -nope. ( ♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall. dad, we got this.

we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones liz: this has been an interesting stock, shares of zoom video with have been all over the map today after the video conferencing company initially surged on its earnings report after the bell yesterday. the stock cratered at the open, is now well off its intraday lows and is standing at $65.73, down about 2.25%. so as investors assess's from zoom's push into artificial intelligence the its future as more businesses bring employees back to the office, we're going

straight to the source with zoom video's chief financial officer, kelly steckelberg, in this final hour. you beat on the top line, you beat on the bottom line. we know that wall street is traditionally all about what have you tone for me lately, as in the last two seconds, but what do they have wrong here? you see the stock pop and sell off. >> hi, liz. yeah, we were really pleased with our q2 results. we beaten on both revenue as well as profitability, can and we raised our outlook for the rest of fy-24. and i think they're really focused on looking at the growth of some of our newer products, zoom phone which is our cloud pdf solution, zoom contact center which is our modern cloud-based contact solution, and, of course, all of that is being supported and underpin by the future of a. a i. and everything that can do for our customer as well. and that's what they're really

looking for, is as we move out of fy-24 and into fy-25, how to do we really see that reacceleration of growth. liz: well, how much -- you just mentioned zoom phone. morning star feels a major key to your future growth is zoom phone and you've got, what, about $500 million in annualized run rate that that you've reached. they feel that that zoom phone and the contact center are very crucial. you know, what do you expect from that division in the near future? >> yeah. so is as you said, we announced yesterday that zoom phone is, has over $5000 million in annualized run rate, crossed over the 10% of revenue mark, so really thrilled with how that product is performing. and it's 4-5 years old at this point, so it's had some time to come to maturity. we expect that momentum to continue. and then zoom contact center, which is a much newer product, it's only a little over a year old, but we expect it's going to have that same a trajectory.

we are thrilled that we've had some customers that are buying, you know, 2-3,000 seats, and we really want to continue to grow into those larger enterprise customers. we announced that we have over 500 customers on zoom contact center today, so really expect that momentum to continue and that it will be a key growth driver in the years to come. liz: we mentioned enterprise and that, of course, is where the real money is. and this is why i'm not going to quote specific analysts because a lot of them were actually or at least some of them were contradicting themselves. they said on the one hand you guys have been successful in upselling product to certain enterprise customers, and then on the other hand there was down-sell pressure meaning people are saying, you know what? we're running a company here, we've got to find ways to trim. which is it, kelly? >> yeah. so we are very disruptive in terms of our pricing approach. so we present a great pressure oi. we can help our -- roi. we can help our customers as

they're transitioning from potentially an on-prem legacy solution to zoom phone. they are significant savings in roi. we do have system of our enterprise customers which, unfortunately, have experienced reduction in their employee counts, and in that situation we work with them to make sure that they're getting the real value out of their meetings licenses, for example. but potentially, preserve some of that spend with them, upsell them into zoom fen or zoom scheduler which is -- phone or zoom scheduler or zoom rooms toport the hybrid work environment. so there are some trade-offs sometimes happening in these customers, but we want them to really see the value that zoom can bring to them, and we actually can help them save money especially if they're using legacy competitive solutions today. liz: well, this goes back to what happened in 20020 and that was, obviously, the lockdowns where every -- i mean, we've got to credit zoom for keeping us all in a position where we could

actually communicate and continue to do our jobs. interestingly, we still at "claman countdown" every morning do our meeting by zoom because we're kind of in different parts of the building, it's just easier, but it works incredibly well for us. and, therefore, i just wonder about this return to work situation. you at zoom, your ceo who's, you know, been on our podcast, he's done so much here with us, i look at what he said which is come back, what, two days a week. i'm sure there's been pushback from your employees, but the theory was -- and "forbes" pointed this out -- if you guys are pushing for people to come back to work, that must mean that zoom takes less of of our presence when it comes to meetings. is that true? i mean, how do we flip that to see it as more profitable for you? >> yeah, that's not exactly true. i mean, hybrid bid and remote -- hybrid and remote work is certainly not dead, and it's not

dead for us. we're asking our employees that are near an a office to come in just two days a week, and that's actually only about 35% of our employee base, and we feel that that's needed because it brings them together. as you say, they want to collaborate, but also to drive innovation we're in the best position to leverage our products, to understand how they work best in a hybrid work environment. and we believe that it's, we need on the ones driving that and testing it. and we absolutely -- that hybrid work and leveraging zoom is here to stay for the future. liz: there is a search, no where near as bad as when omicron hit back in the start of 2022, but there is a surge in covid cases in some hospitals they are seeing an increased rate of infection. we, nobody wants people to be sick again like they were, but do you expect, do you prepare for an uptick in something like that? >> well, the great thing is that

everybody now is familiar with zoom, and we all know how to leverage this technology to keep ourselves safe, first and foremost, keep our employees safe but also keep our organizations productive at the same time. we have amazing partners that provide us with capacity as we need it if there were to be a surge, so we are -- we learned a lot over the last several years and are very well prepared to serve our customers in any need or demand. liz: boy, did we all learn a lot over the past a couple of years. kelly, it's good to see you. please come back. we're watching the zoom story and -- [laughter] boy, it's never a dull one, that's for sure. thank you very much. >> great to see you or, thanks. liz: preparations underway for tomorrow's gop presidential debate. fox news set to host the first rnc faceoff in milwaukee, wisconsin. we've got a lye report on -- live report on the tbrowbd from the scene regarding the economic issues on the agenda.

by the way, they're at the forefront of what voters need to hear about. closing bell, 12 minutes away. now the dow is down 200 points, a bit of a deceleration here. we're watching it closely. stay tuned. ♪ ♪

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 [ applause ] >> the day you get your clearchoice dental implants makes every day a confident day... a never-hide-my-smile day... a life-of-the-party day... a take-on-the-world day... a believe-in-myself day... a flash-my-new-teeth day. because your clearchoice day is the day you get your confidence back for good. a clearchoice day changes every day. schedule a free consultation. . .

she runs and plays like a puppy again. his #2s are perfect! he's a brand new dog, all in less than a year. when people switch their dog's food from kibble to the farmer's dog, they often say that it feels like magic. but there's no magic involved. (dog bark) it's simply fresh meat and vegetables, with all the nutrients dogs need— instead of dried pellets. just food made for the health of dogs. delivered in packs portioned for your dog. it's amazing what real food can do.

here's why you should switch fro to duckduckgo on all your device duckduckgo comes with a built in engine like google, but it's pri and doesn't spy on your searches and duckduckgo lets you browse like chrome, but it blocks cooki and creepy ads that follow you a from google and other companies. and there's no catch. it's free. we make money from ads, but they don't follow you around showing the millions of people taking back their privacy by downloading duckduckgo on all your devices today. so... i know you and george were struggling showinwith the possibilityople takiof having to move.acy how's that going? we found a way to make bathing safer

with a kohler walk-in bath. a kohler walk-in bath provides a secure, spa-like bathing experience in the comfort of your own home. a kohler walk-in bath has one of the lowest step-ins of any walk-in bath for easy entry and exit. it features textured surfaces, convenient handrails for more stability, and a wide door for easier mobility. kohler® walk-in baths include two hydrotherapies— whirlpool jets and our patented bubblemassage™ to help soothe sore muscles in your feet, legs, and back. a kohler-certified installer will install everything quickly and conveniently in as little as a day. they made us feel completely comfortable in our home. and, yes, it's affordable. i wish we would have looked into it sooner. think i might look into one myself. stay in the home and life you've built for years to come. call... and take advantage of our no interest

♪. liz: eight candidates have now officially qualified for the first 2024 republican presidential debate which is set tomorrow in milwaukee, wisconsin. the pressure is on for each one of the people on your screen to grab voter's attention on major issues not the least of which is right up our alley on fox business, the economy. let's take you live to milwaukee, grady trimble is live in front of fiserv arena. in the brings district of milwaukee. >> reporter: liz, we've been tacking to voters in the milwaukee area. two issues come up over and over. the economy for one and the border. the latest "fox news" polling is right in line what voters care about across the country followed by guns and climate change. >> just came out of the grocery store. inflation is a big one. where did whole economy has gone

is not good. >> when biden took over it is definitely, they made changes that caused the inflation to go up, the border is out of control. you know, those are two of my biggest issues. >> things are very expensive. things that used cost not too much money are much more expensive. >> reporter: so right now eight in 10 voters say the economy is in bad shape. tomorrow night those voters will want to hear from the candidates on the debate stage about how they plan to turn it around. it is also worth noting where the debate is taking place and also where the republican national convention is taking place next year, here in wisconsin, a swing state, and that's important because several of the voters we've talked to say they could be persuaded. >> what i will say about wisconsin is it's a purple state. you cannot win the white house electorally without a state in the midwest and wisconsin is going to be a pivotal state to winning back the white house for

republicans. >> reporter: president biden was just in this city exactly one week ago trying to sell "bidenomics," so tomorrow night will be a chance for republicans to propose an alternative to "bidenomics," liz? liz: all right. the excitement is brewing. grady, you're lucky to be there, thank you very much. be sure to tune in 9:00 p.m. eastern tomorrow for the first gop presidential primary debate. it is on fox news. closing bell, we're four minutes away, folks. dow, s&p, both squarely in the red. keep an eye on the nasdaq. it has been jumping back and forth between gains and losses right now, up about 13 points. you don't have to look at the calendar to know that we're facing back to school in the face and whether it is notebooks and crayons for kids or laptops and furniture for college students, our "countdown closer" says he has the bark to school trade. joining me, robert schein.

robert, there is always a trade, isn't there? this time around you have got three names you feel are best capitalized. give me the names and tell me why it is these because there are a lot of competitors out there too. >> we're back to school. we're right in the middle of it. we personally have two girls in college and two kids in high school. so back to school is a 94 billion-dollar industry right now. additionally families are looking for value. we like it. j max and we also like walmart. walmart is killing it. we spend a lot of time at walmart for the shine family getting our girls ready for college. inventory management, e-commerce, we have it dialed in. if we have a recession walmart stands to benefit the most. tj maxx, we're seeing consumers across the united states with the economy trading down and if you look at the retail sales not all companies are created equal. tj maxx is best in breed and they're really killing right now. liz: all three of these names

are subject to what we heard from dick's sporting goods and a lot of other retailers and that is shrink. a fancy word for theft do you look at things like that? tj maxx has actually managed to get its arms around that problem but talk to me how much that weighs in because when you look at what happened to target a quarter ago, they lost or anticipate ad half a billion in losses from shrink? >> shrink across the e-commerce world, theft of stealing, that's a huge problem. that needs to be addressed. >> yeah. >> conversely there are companies using that a little bit too generously in their earnings reports. you have to sift through sort of the companies that will be the winners and losers and that are actually executing, whether a good market, or bad market or good economy, bad economy. companies trending in the right direction, apple, tj maxxs, walmarts are trending in the right direction, you think about

sticking with those, staying away from the others. >> they have actually done quite well. tj maxx particular year-to-date, year-over-year. same with apple, year-to-date certainly for apple. we're a day or two away. thursday begins the central bank symposium in wyoming. how much closely will you watch that? how does it play in the overall picture es especially comes to consumer stocks and particular names? >> we're watching and anticipating. jackson hole was a big event for the market. the market is trading down in anticipation of what might come out of this. the hungish fed approach we believe will continue to and persist. rates higher and longer is take-home pointe we are looking for next week. i think markets are anticipating that as well. liz: sure looks like it but the bond market has been absolutely insane. as we look at two year which crossed 5%, folks, 5% today, i'm

just going to give our viewers one last look here. two year yield at 5.039% and climbing. and of course we're watching every single tick of it. [closing bell rings] liz: robert, thank you my friend. dow in the red second day in a row. s&p a bit of a loss 13 points. nasdaq too close to call although now up 7 points. that will do it for us. see you tomorrow. ♪. larry: hello, folks, welcome to "kudlow," i'm larry kudlow. while it's quite true that year-over-year inflation is cooling as the fed has slammed on the brakes it is also the case that people are working as unemployment rate is low. it's good but what the bidens don't seem to understand is that their economic polls are hovering in the 30s because average working folks are losing affordability on a daily