>> after fed speaking get, there's a flight to good quality. it is growing revenues. and and for price to earnings ratio. >> you see they have improved dramatically. >> sooner than administrative costs. and anyone who watched you and follow you, thank you, merry christmas. over to liz. liz: breaking news, in lower

manhattan, luigi mangione, accused of killing the ceo of united healthcare is meeting right now with attorneys and preparing for today's hearing. last time we saw luigi mangione he was being escorted off of a helicopter by the police department at the manhattan helipad, he faces one count of first-degree murder. he agreed to be extradited to new york state to face first-degree murder charge. he had been captured in altoona mcdonald's five days after the shooting death of 50-year-old brian thompson who was gunned out it outside midtown manhattan. they were filled with fury to the health insurance industry and wealthy executives after he suffered chronic surgery related back pain. unitedhealth is one of the losers, one% to 2%, it is 18%.

we have a reporter on the scene at the courthouse and we will take you alive for the very latest. let's get to the markets. we could call it a one legged hop after a beat down. let's show you two day charts which illustrate the wednesday washout compared to the moves in this hour of trade. 149 is nice but barely begins to erase the 1023 point route the dow endured during this hour yesterday. boeing and nvidia are working to keep it in the green. flip it to the s&p and we have a broader index up 14 points after getting shredded yesterday to the tune of 178 points. the nasdaq is up 53 points but got smacked by the wrecking ball and is digging out from

the 716 point route triggered after the federal reserve granted the markets 1/4 point cut to interest rates. problem was federal reserve chair jay powell lit a fire under bond yields. 4.572%, though 2-year had been higher, it was reversed down 3 basis points to 4.32%. powell said on average the fed's 19 rivers cut their 2025 rate cut expectations from 4 down to 2 because the economy is strong and the current level of inflation is above the 2% comfort level. it wasn't just bond prices or equities. take a look at bitcoin. it is now $10,000 off its recent high of $108,000 standing at 890,068.

the fed has shown us its runway which they say could change depending on the data but let's bring in 2 of wall street's bigwigs to help your portfolio regain altitude if you lost anybody. senior portfolio manager jason katz and jpmorgan managing director and portfolio manager phil are rally. it was before the christmas party began. what do you think of this so-called balance. >> so much for holiday cheer. we didn't have a parabolic rebound. i'm glad we didn't see volatility to the downside. trees don't grow in the sky. it's not a surprise we see the fed pass the baton from monetary policy to the incoming administration's fiscal policy. the giveback was healthy.

liz: the market was overbought. we had seen incredible record after record, basically the end of last week so when you see something like what the feds said, what do you tell your clients? >> using would be nice to have. we are 10% overweight stocks and today, 10% overweight stocks. 60-40 is 70% out location. liz: any cash? >> no cash. if the economy was interest rate sensitive and you needed this easing for economic growth it would be way up. i'm trying to understand why was the worst day since 2001 but at the end before, they were sitting down interest rate cuts.

the fed slowing interest rate cuts. i don't see anything that changes the fundamental story. liz: in the last 45 minutes of yesterday's trade, the dow losses began to snowball. it went from 700 to 900, it can show what it did and ended up down 1100 points. we see this in the rest of the business media but it was interpreted to the factor that donald trump along with elon musk came out and said we don't like the stopgap measure to keep the government open and running, we are less than 48 hours from the government shutdown if they don't get a different stopgap bill so can you give us a sense of which one weighed more?

>> we were talking about it in the green room. he is administering from the sidelines. the reason the dow took a brent of that, the big capital gains people want to avoid are not on the cohort of dow stocks but the nasdaq. they were more compelled to lighten up in areas with minor gains. liz: if you look at a day like yesterday, that's an opportunity. we try to let viewers know that in retrospect there's an opportunity to get discounted stuff. what stuff do you like? >> we are focused on the us, a 15% probability. that's the lowest, it could never be 0. a combination of mid-cap is

less rate sensitive than some and in the s&p, if this is longer, we don't get any cuts which is based on strength of the economy, that's an opportunity for the free cash flow that did well in the first half of this year. our fundamental story is unchanged. 5% nominal growth forecast, if we get that, you know what the risk is. liz: 3. one, better than the previous one which was 2. 8 so are there sectors that look really ripe to you right now that maybe aren't so expensive at the moment? >> real estate painted with the same brush, it is not all created equal, we have proven overly high rates, dreadful office market and we talked about this countless times.

you have logistics for e-commerce and real estate that looks attractive in data centers and student housing so real estate looks attractive. i look at the whole ecosystem around energy so the electrification out there, powering of ai data centers so anything utility related looks attractive. liz: these are data center rates, digital realty trust, you don't do individual names but this would be part of capturing the crest of the wave. >> without a doubt. the picks and shovels to the goldmine. liz: what do you avoid? i'm sorry. i've got two bigwigs here. i've got to decide which one. >> one thing we are avoiding is cash. cash, even though it gives us close to 5%, lower %, lower now, we think we can outdo that. the biggest risk for us right

now, this cycle kept us on our toes since 2020. the fed has to say we hike rates. that's the biggest risk. liz: he said yesterday i don't see that. >> 0 probability to any of that. liz: great to have both of you. happy birthday. i love having you guys on and our viewers love it too. we have breaking news. the suspected killer of brian thompson just sat down inside the federal courthouse in manhattan. 26-year-old luigi mangione after being extradited from pennsylvania indicted on first-degree murder charges but now, now he faces new federal charges including two counts of stocking, a firearms offense and murder for use of a firearm which makes him eligible for the death penalty. alexis mcadams is live outside

the manhattan federal courthouse. you've been following every step of the way. they must have brought in a back way but what are you hearing? >> reporter: according to police sources, cpac 11 is telling investigators he was telling pretty good, feeling confident as he was on his way into the court hearing in pennsylvania, waived his extradition at he's in new york city looking at four federal judges along with a dozen other state charges. watch him walk out of this helicopter. the reason they had these investigators from federal, state, local task forces is they wanted a show of force as they walk with him and that orange jumpsuit, shackled and handcuffed and his wrists and feet. they say he is very dangerous. so many people, which is disturbing as i covered this talked about how he did a good

thing for the community and the good thing for the country by taking out a healthcare ceo. they want to show he is far from a hero. he's looking at spending life behind bars or the death penalty as you mentioned. let's talk about the charges, new information we are hearing. a dozen, if we want to pull up his mug shot. investigators say he has been writing about this attack for months. you see those charges on your screen. back in august according to these new documents, he was saying the details are finally coming together, they put out a picture of the gun that he used. he didn't just use the gun but made the gun according to police. one thing luigi mangione wanted to make clear is this was trivial, easy to put together. all he did was use some elementary social engineering, it was easy to make the gun and a lot of patience. he wanted to target brian thompson. this is what this is about.

we talk about surgery all the time, brian thompson was here from minnesota and was killed according to police because of his job. he didn't have united healthcare so they are trying to figure out why he targeted the healthcare industry, specifically united healthcare. we keep a close eye on what is happening in the courtroom but investigators of pennsylvania said he talked about his haircut this morning saying he got it trimmed while he was in prison in pennsylvania and he will be in front of a judge on some serious charges in new york city so we have to see what happens next. liz: do we get any revelations as to how he knew, how he found out where brian thompson was going to be, the exact location in midtown when he murdered him allegedly? >> reporter: that is the question. he was on the phone according to police, he picks up the

phone 30 minutes before brian thompson is killed. who is he talking to? he did this on his own accord, did the planning himself, funded it, took money out of his own atm account. it is going to be a lot of unanswered questions, more charges could be coming, they will throw everything they can at him but how did he know? he was stocking him in new york city for 10 days but brian thompson was only here for a couple days. somebody might have been helping him. we will work to find out more. liz: thank you very much. sam altman's newest venture sparked the need for more energy sources. ai data centers are up across the united states. the altman backed company which is a publicly traded stock just inked a new deal. we will tell you who it isn't how the stock is moving, more in a moment. later, wall street still digesting the fed's inflation

prediction and rate cut forecast. joe mobley is here to tell us why the market got so spooked during powell's presser and how he sees things shaking up in the new year. "the claman countdown" shaping up, the dow up 140 points. to go further, you need to be ready for what's down the road. as energy demand continues to rise, we're harnessing breakthrough innovations to increase production in the u.s. gulf of mexico. our latest deepwater development, anchor, produces previously inaccessible oil and natural gas, allowing us to deliver the energy we all need today so everyone can follow their own road. that's energy in progress. (vo) what does it mean to be rich? maybe rich is less about reaching a magic number... and more about discovering magic.

rich is being able to keep your loved ones close. and also send them away. rich is living life your way. and having someone who can help you get there. the key to being rich is knowing what counts. (♪) car, this isn't the way home. that's right james, it isn't. car, where are we going? we're here. (♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com

liz: fox business alert, shares of palantir, after the ass software company said there are contract with the u.s. army, $619 million.

a new agreement is expected to operationalize data. ubs initiated coverage on palantir with a neutral rating with a target price of $80, shares of the ai data software, 101%, 337%. keybank don downgraded the software maker, price target, it is down 10%. revenue estimates talk about fiscal year 2026-27. and 16.3% of wedbush initiated, with an outperform rating.

and wedbush analyst, and it was well positioned. and sam altman, yesterday, also a new agreement with data center switch to deploy 12 gw of nuclear power, shares of aqua up 245% over just the last three months. lamb westin holdings getting fried to the bottom of the s&p 500, declines coming after the maker of frozen french fry and other proto-products and announced it was replacing it ceo and cutting its guidance again on weak demand. ceo thomas woerner has stepped down and left the board, he will be replaced by michael smith, the chief operating officer since may 2023. weak demand.

i had french fries twice this week. donald trump could be barking up the wrong tree when it comes to his canadian terror threat. john brown harris stevens tells us how higher priced timber could heap the housing market from branching out. vince freeman is next on a fox business exclusives. ♪ ♪ ur american factories. today, we're nearly 30,000 u.s. employees strong. in more than 60 u.s. based facilities, across 16 states, we couldn't be more proud to play our part in supporting americans who work the land and build a better tomorrow. ♪ nothing runs like a deere™.

chase knows how to put the hart in your local community. evan! you're helping them with savings, right? (♪) somebody just got their first debit card! ice cream on you? your money is a part of your community, so your bank should be too. like, chase!

independence, with that declaration, america was born. inspired by a belief in the god given rights of every human being, and in the good that comes from exercising these rights well. the founders of our great nation chose independence, as do we. hillsdale college accepts no government funding, because independence makes possible the good to which we aspire.

need a last minute gift idea? get the weathertech gift card! for laser measured floorliners, cargo liner, pet feeding system or the new garage wall protector. get your gift card instantly at wt.com

liz: the fed's third interest rate cut of the year is not helping homebuilders. lennar stock dropping to a 1-year low, down 4.7% after the company reported the miss on fourth-quarter and third-year earnings expectations. lennar's ceo says the housing market prove to be far more challenging than it first appeared and specifically cited rising mortgage rates which even as the fed has cut rates, the past three out of four months, still climbing. look on your screen. the national average for the 30 year fixed mortgage rate today is 6.84%, 11 basis points higher than it was before the cut.

to find out when these mortgage rates will be coming down, leader of the luxury real estate space, best friedman. the fed has cut rates three times and mortgage rates are still, almost like you can't dig them out of anything below 6% as far as buyers would like to see. >> reporter: takes time for the rates to come down. powell is being very cautious in managing expectations. we are not going back to 2% to 3%, consumers need to understand that 6, six. 5 years where rates are going to be where they dip below 6. it takes time to have its affect. liz: when i bought my first house i got 6.3% and thought i did great. >> mortgage rates used to be in

the double digits. talk to old-timers and people who had 18% rates. they still think this is low but we are used to the to and about 3 but we have to understand that 6% is the new normal. i encourage buyers and sellers to get backed into the market because housing is for the long term but you can't rely on your stock portfolio but it is great to see the stock market has returned today and is doing better. it gives you salvation. you can raise a family. it is safety net. away to build intergenerational wealth. i hope we still have buyers and sellers get back to the market next year. liz: we have existing home sales that increase more than expected during the month of november up 4.8% month over month, 6.1% year over year but are you seeing more buyers come off the sidelines? >> we are starting to see people get into the market so it is taking time. buyers, depends on the place

where it is. the demand, challenges we don't have enough supply, places like connecticut, hamptons, palm beach, we need more supply. liz: we got housing start yesterday, going into the ground to start building these homes. >> one of the things we need to do is get approval so we can build and to hoping the new administration, less regulation but most things are state and local, we need to work for example albany. city council. but those are the challenges, and to collaborate and work together to build more homes in this country. liz: let me do that in the form of donald trump's threatened to tariffs.

whether they are allies with canada and the tension like china so we get a huge amount of timber, and they are the ones who supply us with lumber to build houses. what does that mean for lumber prices? >> that concerns me. if we have that, prices go up. we have more issues in a slow and staggering housing market. i'm concerned about that. in the event -- liz: look at this lumber chart, two months. lumber prices have been coming down. over the past few days lived on pumping up because people are concerned there would be a run

on lumber ahead of potential tariffs. >> that could pose a real challenge.the good news is if lack of regulation, lifting the salt which expires next year, that could be helpful. i don't think we are out over the words. but we've been in a challenging market and then things pick up, to be positive from a difficult market. liz: there is not in my backyard and banana build, nothing anywhere near anything. children and grandchildren --

>> that is our biggest challenge. something like 60% of adults from age 20-34 living with their parents. we have that issue in the united states, they can't afford to rent or to purchase, we have to think about that, they need to do those things, we need to do better, america. we need to build more housing. liz: good to see you. fed chair jerome powell's dark room. he talked about darkened rooms creating a dark mood on wall street. chairman and ceo joe mobley a is here to tell us what he made of the selloff and if he can see the light at the end of the tunnel when it comes to the fed's inflation fight. "the claman countdown" is coming right back, stay with us. ♪

patients who have sensitive teeth but also want whiter teeth, they have to make a choice- one versus the other. new sensodyne clinical white, it provides 2 shades whiter teeth as well as providing 24/7 sensitivity protection. patients are going to love to see sensodyne on the shelf.

when i got diagnosed with skin cancer, it was right under my eye.

i was told that surgery was the only option, and i did not want to get cut open on my face. i asked my women's group to pray for me, and one of the other ladies told me about the procedure that her friend had and it was gentlecure. if you, like millions of others, are affected by skin cancer, it's important to know that surgery isn't the only option. there's another choice, gentlecure. gentlecure uses low energy x-rays to kill cancer cells with a 99% cure rate. plus, there's no cutting, no surgical scarring, and no downtime. i had no pain. i have no scars. and i'm cured. amazing. to learn more, call today or go to gentlecure.com.

liz: we knew this would be a crazy hour. there may be a plan that has come together to avoid the government shutdown before the midnight deadline. fox news report house republican stephanie vice and tom cole said nevers have cut a deal. reuters is reporting the stopgap spending plan would keep from avoiding a shut down, no details about what is in it yet but actio said earlier reported, speaker johnson a donald trump's team are trying to write a new federal funding stopgap plan because trump and musk did not like it. and include disaster aid and an extension of the farm bill that would push off a debt limit fight for two years. we are waiting on details. we have reporters crawling the capital at the moment. as soon as we get them we will bring them to you but let's

bring in chairman and ceo joe mobley, they may be in the short-term effect the stock market about what do they do long-term? >> no impact whatsoever. you need to go back 25 years. there was always our conversation or debate about our they going to come to agreement? the entire country will come to a halt. it turns out to be a shut down, the country never comes to a halt. in regards to what is coming out now, there's an agreement, i could appreciate trump and musk being involved from the beginning. musk's job is to eliminate expenses, we would just as soon not be there but they may be trying to warm up for what they are going to want later on but i don't anticipate a shut down by any stretch of the imagination but i appreciate trump and musk making their

points. liz: there have been government shutdown before but it starts in the stages and is not initially everything. the impact as far as the overall, and impact on the markets early on, is there going to be a shut down. a significant shutdown. liz: it enables us to reach our obligations, to pay our bills but $35 trillion and counting in debt right now so where you see it doesn't matter yet it is starting to matter, isn't it? >> the answer is absolutely but $35 trillion is a lot of money. the debt ceiling, where gdp is,

business people in general to have a growth that solves a lot, i would love to see us having an impact, $35 trillion is too much but we have been living with the debt ceiling for a long time. rather see it come down as well. liz: the service alone is more than what the defense budget in its entirety years and we just heard fed chair jay powell say don't count on four rate cuts, the rest of the fed in the average when they all did that plot, their prediction just two cuts. he said it's important to move slowly because things are looking stable but we are not sure what will happen. here is how he put it and i will have you comment. >> some did identify policy uncertainty as one of the

reasons they are writing down more uncertainty around inflation. the point of that uncertainty is common sense thinking of that when the path is uncertain you go slower. it is not unlike driving on friday night or walking into a dark room, you slow down. it may have affected some of the people but there is a range of approaches on committee. liz: who among us has not stepped on a lego brick in the dark in the middle of the night? it hurts. do you see anything worrisome in what he said? he is saying this because the economy looks to you how? >> go back, the market has been wrong in terms of prediction of rate cuts. they've been wrong for a long time. part of the reason for the negative reaction is short-term oriented, the markets has four rate cuts, 3% level we might be

and we are going to look at the data and make a decision as we go. right now right now there's reason to be comfortable but let's see where we are. we go from four rate cuts with the possibility of 0 or one of two. i could see a little bit of a reaction. what we can count on they are not raising rates. liz: let's look at the markets more broadly. bitcoin is up $10,000 from its recent all-time high of 108,000. the robin hood ceo was on last week. earlier this week, i can't even remember. it was tuesday. you've been there too. he felt encouraged by donald trump's administration sounding a different tone about mergers, acquisitions and regulations because two sectors matter a

lot to him, crypto had a are and here's what he said and i love your thought on this. >> i haven't been shy about expressing my disappointment and general sense that the current administration has been headed in the wrong direction, rampant regulation by enforcement, open warfare against the crypto currency industry in america as well as taking a very anti-ai posture and that was bad not just for robin hood but customers, the industry and america. liz: you agree with that? >> i do 100%. we've not had a new administration in support of bitcoin, crypto in general. now we have a president who 75

years ago wasn't crazy about crypto, now he wants to be the crypto president, the united states to be the capital of the world, musk's advisers, everybody is appointed to his cabinet is pro crypto so you can't eliminatt to mimize the regulation, lower taxes and want the state to be the center of the universe when it comes to crypto, that is so incredibly positive compared to where we were 18 months ago or two or three years ago with this incredible run. a bit of a correction. it is a buying opportunity. liz: either john maynard keynes or winston churchill, they are both attributed to this quote, when the facts change, my ideas and my thoughts change and what do you do now? just because something was appropriate at one stage which was being fearful of crypto doesn't mean it is an appropriate today. >> you have to adapt and adjust.

it's not usual easy status quo. there's change with trump coming in and a different cabinet and musk and vivek ramaswamy, they are pro-business, they are pro crypto, they want the markets to do well and i can't imagine we won't have pickups or blowups but can't imagine the next few years would be incredibly bullish. liz: a hope your next few years are incredibly bullish. thank you. have a great holiday. the knives are out in trump's kitchen cabinet. the world's richest man putting congress in chaos by cutting the prospects of the end of the year spending plan. charlie gasparino is coming down to the set. he has some insight into elon musk's might on the hill. he breaks it down next on "the claman countdown".

the soul searcher. and - ahoy! it's the explorer! each helping to protect their money with chase. woah, a lost card isn't keeping this thrill seeker down. lost her card, not the vibe. the soul searcher, is finding his identity, and helping to protect it. hey! oh yeah, the explorer! she's looking to dive deeper... all while chase looks out for her. because these friends have chase. alerts that help check. tools that help protect. one bank that puts you in control. chase. make more of what's yours. to go further, you need to be ready for what's down the road. as energy demand continues to rise, we're harnessing breakthrough innovations to increase production in the u.s. gulf of mexico. our latest deepwater development, anchor, produces previously inaccessible oil and natural gas,

allowing us to deliver the energy we all need today so everyone can follow their own road. that's energy in progress.

liz: all right. don't forget to set your dvr if you can't tune in tomorrow. okay. you see the guy on the left? big toy ceo. he has one toy that is selling out right now because of the kid

in the middle. he's 8 years old. his name is the rizler. he's a huge tiktok influencer. he has done a rap for mga's toy company, we're going to to show it to you. he's here in a a fox business exclusive, and isaac will join us too. and todd mckinnon, okta's ceo, big tech, big cyber skirt tomorrow -- >> new meaning to everybody speaks to liz. liz: the rizzler. breaking news, republicans are telling fox news now in the last couple of minutes they do have an agreement on the bill to keep the government funded for three months. kicking the can down the road. congresswoman anna paulina luna saying moments ago that a vote is expected the take place tonight. the contentious debate over the spending bill was sparked wednesday night when elon musk took to x to condemn the

150-page document saying -- 1500-page document saying shutting down the government is infinitely better than passing a horrible bill. and he also said any members of the house or senate who voted for it -- because he felt there was too much spending in it -- deserved to be voted out in two years. charlie gasparino -- >> president musk, right? liz: yeah. well, almost. he's the so-called kitchen cabinet because he doesn't have is an official role in the u.s. government, but he's got the beginsu five -- ginsu knives out. >> we've been covering it so long on your show, i think back in 2018 we reported how the company, tesla was almost in bankruptcy -- liz: yeah. it went through a very rough time. short sellers -- >> short tell sellers were coming. by the way, he admitted we were -- he said we were really close. sec was closing n accounting issues, whole thing. and you go from that to where he

is today which is president, i don't know, what would that be? not pro tem, there would be, i guess, president in waiting? liz: head chef of the kitchen cabinet. >> it's really a remarkable urn the-around. -- turn-around. first off, trump isn't even president quarter, and elon muss having more impact right now than joe biden. which is fascinating. or legislative debate. knowing what i know about the sort of inner workings of maga and what's going on at mar-a-lago, there's a little bit of a hunger games aspect. elon is in every meeting, apparently, from what i understand. he's very key, in with trump. but, you know, there's competing forces. if he keeps exerting this type of influence, i mean, i can't help but think there's going to be, like, some sort of -- someone's going to step in. something's going to happen. we saw, like, the sort of contra

temps between scott bessent, treasury secretary nominee, and howard lutnick, commerce secretary nominee, as they were vying for that treasury secretary position. scott ultimately was named -- liz: but, but elon was siding with lutnick, and he didn't come out on the winning end -- >> right. and remember what i reported after that, fives are out for lutnick at that point. lutnick annoyed a lot of people, including the j.d. vance contingent of the kitchen cabinet. so you can see the sort of demarcations being drawn between camps here. it's t never a good thing when you have that. and, you know, this is, you know, elon is not an elected official. he's not even -- he's an adviser, and he literally almost, you know, sort of put the nation's budget in jeopardy for a couple, for a while, you know what i'm saying? that's, like, pretty remarkable. although you've got to ask yourself if he's president, that would be remarkable. a guy from south africa who's de

facto president? if. [laughter] liz: i doubt donald trump will allow that. >> you don't think -- liz: he is very much the one i pulls the strings. >> you know -- didn't they mention, some of his people are talking about make elon peek -- speaker of the house? liz: apparently, it can legal wily happen. >> and, by the way, we haven't even gotten to -- this is going to to be a big story going forward, the conflicts of interest involved. there's a good part about it but, clearly, there'll be issues that we're going to have to cover when this comes to regulation, how it impacts what they do the on the side. liz: charlie, thank you. charlie gas prix know. okay, folks, we are now three minutes away from the closing bell. major earnings from nike and fedex after the bell, if fedex up about 1% just ahead of the report. fedex is a bellwether for the industrials sector, and quite frankly, for the consumer sector because they're delivering a lot of packages.

our countdown closer says that group of stocks could fare particularly well as the fed cuts rates. rob hay worth manages -- you're a big whale, rob. $489 billion as the senior investment strategist at u.s. bank wealth management. but only two rate cuts next year if you believe the fed. you still think that sector will do well? >> i think there's still room. this is an economy that's been doing very well and the beneficiaries need to broaden out from what we've seen in the last two years which is pretty much the technology growers. we think that there's room for this economy to to kind of expand if out especially as long as we have a tight labor market, right? we continue to have people employed. and eventually they'll need more goods, so there's room for it to improve. also when you take a look at that industrial sector, there are some artificial intelligence beneficiaries in there because we need more equipment for data centers and utilities. there's some room for improvement in that industrial sector. liz: okay, i've got to point out

that almost all the gains in the dow have been fumbled, and at this very moment the s&p and the nasdaq are barely positive. they were just in the red a few seconds ago -- red a few seconds ago. so we're not getting any bounce from yesterday. what does that tell you? >> i think the market -- well, one, we're heading into holiday season, big options expiration tomorrow, so there may be some nerves. two, interest rates are higher, especially long-term interest rates. and i think this is a market that's trying to understand how much leash is the the federal reserve going to give the economy considering how strong it's the been, right? we just had a positive revision to third quarter gdp this morning. the atlanta fed's now forecast is over 3% for the fourth quarter, so this is actually fairly good economy, and i think this is a market that wonders if it needs to ratchet back some expectations for too much growth to start the year. liz: okay. and in the end, is there anything that you are avoiding, rob?

>> we're really, actually, a little more cautious on investment grade debt. we're really trying to take opportunities in credit and get to opportunities in global equities. we think global equities still beat bonds in this environment as we've got this higher for longer regime. liz: great to see you. thank you, rob. >> great to see you. thank you. liz: here we go with, folks. what happened? the market gains vaporizing in the final moments of trade. the dow had been up 460 points during in this session, now up just 14. looks like the s&p is negative by 4 points. nasdaq down 20 the after having been in the green. so tomorrow the final inflation reading of the year, pce for november. that could move markets, for sure. i'll see you tomorrow. ♪ larry: hello, folks. welcome to "kudlow," i'm larry kudlow. so kill the bill and cut taxes instead. and while you're ait