because you're going to see more than two rate cuts in 2025 the -- charles: you have a lot of high beta names, if someone's under pressure, just be cool? it comes with the territory. >> just stay with it. stay the course. have and, ultimately, you're going to see a portfolio, it could be up 100%. i know we just came out of 50% over two years, but you watch over these four years -- charles: all right, you got it. liz claman, we're losing altitude pretty quickly. liz: then we gained it earlier, lost it, gained it -- [laughter] charles: yeah. liz: grab the bags in the seat front of you. we do have a wild ride with stocks on this tuesday, dow jones industrials in the green by 90 points. the s&p toggling back and forth into red and green, right now down 7 points. nasdaq is lore by 8. the russell -- by 83. the russell up 16 points. not because of anything that's happening right now, but ahead

of what could happen tomorrow. namely, we're talking about earnings. the official start of earnings season beginning tomorrow morning. the biggest of the bank behemoths report how their businesses fared in the fourth quarter. jpmorgan with its $686 billion market cap leads the pack right now. that includes citi, goldman and wells fargo, all of them the moving slightly higher. thursday nor michigan stanley is and -- morgan stanley and bank of america round out the big six. we've talked about that. let's go to the mag 7. let's roll these out so you can see how pretty much all of them a appear to have very similar intraday chart pattern. look at nvidia. down 2% at the moment. alphabet lower with by 1%. but their charts mimic each other. both managed earlier to climb a couple of bucks above monday's close, but right now they are both now south of the border. by the way, the slice you see coming off of nvidia brings its

5-day loss to 14%. lack at amazon and microsoft, two more magnificent seven stocks. same picture, except amazon was able hold on to the green a little bit longer this afternoon. apple moving down about two-thirds of a percent, the tesla got as high as $4422 just -- 422 after the opening bell. it was in the green for most of it. but it now stands at $401.81. it is down about a third of a percent. now, this could be concerns that the mag a enough sent seven are still overbought. and if you feel the same way, the floor show is going to tell you how to diversify in just a few minutes. some are wondering whether the a.i. land grab, the arms race, whatever you want to call it, is a facing a reality check. a, folk to if business exclusive with the ceo of what's being called the most reliable and informed a.i. search engine joins me live on the new executive order president biden just made today that directly

affects the entire a.i. sector. if so now, look, as we see just a bit of risk off in equities, it's risk back on with bitcoin after dipping below $90,000 yesterday. the crypto of record has climbed back above $96,000, so it's looking at a gain of about 1.6. we're going to the talk with ronen hollywood's is vis -- vice president of can crypto. snap is retreating on a report that with a tiktok ban looming, the chinese government is concerning letting tesla and x ceo elon musk buy it. to grade i think trimble live in washington, d.c -- grady trimble. i know you just spoke with tiktok representatives. what did they tell you? >> reporter: tiktok is throw thing cold water on this idea that musk could take over the social media platform, telling us that the company, quote, condition be expected to comment if on pure fiction.

but it's not the most farfetched suggestion. musk has a good relationship, as you know, with president-elect trump and top chinese officials because of tesla's business in china. musk himself isn't commenting directly on the "wall street journal" report that chinese officials have discussed letting him invest in or take control of tiktok's u.s. operations. but he did reply with a laughing emoji in response to a post on x suggesting tiktok users would be upset if he bought the a app. so he knows that this talk is out there. kevin o'leary, who's interested in buying the app alongside billionaire frank mccourt, also says it's unlikely to get regulatory approval because, as you know, musking already owns x. >> the speck speculation when there's a void of information is like a wildfire. just -- all i know, and frank would say the same thing, we're many a partnership. we're the only syndicate that put a real bid in front of the bankers, the shareholders and

the chinese government. >> reporter: even though tiktok has said a sale is not feasible. o'leary and mccourt are trying to buy some time for the company to consider their offer. and you know this well, liz, but a z mccourt told you -- because mccourt told you they aren't trying the buy the algorithms, just tiktok's operations. >> president-elect trump wins because it's not banned, the tiktok user base win because it stays lit up, american citizens win because they're protected, and the u.s. investors in tiktok win because they get real money for u.s. tiktok. and i think bytedance will let it go without the ip. >> reporter: we'll see with just five days until tiktok potentially goes dark in the u.s. its users are flocking to a shanghai-based social media platform known as red note to toest the possible ban and show they don't care about ties to china. are red note, liz s the number one free app in the united states right now on both apple's

app store and the google play store, so a lot of attention on that particular app as the tiktok ban goes closer: liz: folks, we're going to keep it in the far east because we have breaking news out of seoul, south korea. korean media reports authorities are investigating impeached president -- and this is a live picture at the moment -- they are at his official residence right now to execute an arrest warrant over insurrection accusations. those accusations are related the something going back to december 3rd when the president if summarily declared martial law which is highly unusual for a democratic nation. reports are saying around 6,500 supporters of the south korean president have gathered in front of the residence. you can see for the moment it looks rather peaceful. in the upper left-hand side, you can see there are authorities and officials who are attempting to execute that search warrant.

some south korean ruling party makers are forming a human chain to resist yook's arrest. last questions the events got violent, so they did affect the markets but only temporarily, so we will be watching the feed and bring you any news as it develops. it is right now just after one a.m. in seoul. back here to wall street and the markets, investors can't decide whether to hit the gas pedal or the brake. stocks mixed at the moment after this morn morning's producer price index which showed what manufacturers pay for goods and materials rose less than expected in december. that means prices are coming down, at least slightly, but still up. bond yields, which yesterday in the case of the 10-year had hit 14-month highs, initially dipped in response. you can see that after i want the say 9 a.m. eastern.

but intraday the 10-year then the went as high as 4.809%, and now it's at 4.79%. 2-year down about 1 basis point here to 4.37%. why these jittery moves all around? you could argue that investors now anxiously await more inflation data. tomorrow in the morning, 8:30 a.m. eastern, we get the latest consumer price index report. economists expect consumer inflation to have are risen .3 in december and 2.8% year-over-year. core, which is what the fed if scrutinizes because it eliminates the often-volatile food and energy prices is expected the climb to tenths of a percent month over month, a tad lighter than the .if 3% in november. and core year-over-year, yeah. see that3.3% number? if it goes in higher than that, that's not good. it's pretty much the same as the november read, and if we go higher than if 3.3, watch the

markets. they could move and take the news badly. if listen, should you trade on cpi earnings or something entirely different? let's get right to the floor show. joining me now, mark matsen and circle squared alternative investment gee jeff sica. -- jeff sica. mark, what are you trade on? is that the cpi number? the earning from the big financials? and, of course, that opens the floodgate for quarterly reports. >> yeah. i want to issue a warning to investors. you started off talking about the mag magnificent seven, most investors are dramatically overweighted to just those few stocks. i call it the s&p 500 cult. [laughter] to not drink the kool-aid. it was up 24% last year, the s&p, but half came from just these seven stocks. and historically, if you don't learn history, you're doomed to repeat it. from 1995-2000, the s&p made 32e 45%, but large stocks lost 50%,

tech stocks lost 75%. most investors have no idea how much danger they're playing with. you've got to diversify because no one know what is' going to happen. you've got to to own small, value, internationals. don't get caught trying the overweight just to those seven stocks. big danger. liz: sica's not a member of the cult, i know the that. jeff, what are you joining when it comes to to groups of sectors and names? subsectors? >> i mean, i think, liz, the primary focus for me is that i'm looking at the inflation as being the number one worry. because inflation is the carbon monoxide of the economy. why the market is being so volatile, it's trying to get a handle on exactly where we are with inflation. so what i see is i'm paying a will the more attention to these economic reports, and i agree 100% with mark in i saying that people have been overallocated

in those seven stocks. if you take nvidia out of your portfolio if you were in inhave vid ya, you haven't had the returns that a lot of people had. and you can't chase yesterday's stocks and expect the same returns. liz: okay. i know we have a lot of viewers who absolutely adore some of the mag 7, but also the sort or halo effect whether it's palantir or some of the other names. notwithstanding the fact that many of those have given people's portfolios a huge boost, you said the way to diversify is the go international and small and mid caps. let me tackle the international part of it. there's a big world out there. which countries? >> yeah. well -- [laughter] to answer that in short, all of them. we're actually in 76 different countries. you know, markets are largely random. you never know what country's going to be the winner if in any one period of time. over the last the ten years, the u.s. has been at the top which is a very dangerous sign for investors. is asia, europe, you want to be

diversified even in emerging markets. and i agree with jeff on this i inflation thing. most investors are kind of plague out on the yield curve into longer the term bonds. inflation goes up, you're going to get killed on those bonds. that way if equities cocrash, you can rebalance, sell that fixed income, buy them while they're low. this is the a very hardies palin to follow d hardies palin to follow. -- hard discipline to follow. liz: we are cycling through a bunch of other etfs that are country-focused. we found the ishares comprehensive coverage etf, 76 billion in assets right now. cost efficient. they've a got core emerging markets. is and interestingly enough, one of their biggest holdings is a bank in india that you absolutely love. so, folks, when mark if or jeff comes on and says i like this

foreign stock that is a little bit difficult to purchase on u.s. exchanges, hdfc, which is that big indian bank, is within iemg, that basket of stocks. to you, jeff, give me a sense of your outside trade at the moment. you know, we've got these wildfires and, of course, it's horrific from a human suffering standpoint. but there is actually something regarding real estate you've to been looking at. >> yeah. i mean, i think what i'm looking at is there's going to be a tremendous need. when all of this chaos ends, there's going to be a significant this need to rebuild what's been affected and destroyed in california. i think that there's going to be a lot of, a lot of focus on the government and and banks. i think what we're going to have to see is we're going to have the -- to see the private equity firms step up and begin to direct money towards california. i like stocks like arrows and blue owl -- aries, blue owl to.

and i do think the banks are going to have to unlock some of this liquidity that they've been holding on to for so long and begin to lend are it out to rebuild one of the most important states in america. liz: yeah. aries management and blackstone, they have scooped up a lot of homes over past several decades, since the financial crisis, i believe. good to see you, jeff. mark, always a pleasure. >> great to be with you. liz: to recap, the whales of wall street report starting tomorrow their earning. investors await tomorrow's cpi, the consumer price index, for another read on inflation and the high-flying magnificent stocks add the declines for a fifth session. onlying up, the dreaded -- coming up, the dreaded santa ana winds are back, reporting gusts of 72 mile miles an hour. last night look at this blaze called the auto blaze, broke out in ventura county, north of the other side -- wildfires.

firefighters say the real danger is starting now. we're headed live to los angeles for a live report on the effort toss the help all the victims when "the claman countdown" returns. dow up 43 points. we're coming right back. ♪ check in time is 3:00 it's 2:55.

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now issued a, quote, particularly dangerous situation warning for large swaths of l.a. and ventura counties. the national weather service is cautioning wind gusts ranging from 45-70 miles per hour could lead to higher risk of rapid fire spread and extreme fire behavior. fox business imadsonal worth joins us live on the ground from around acadia, california, with the latest on the efforts to help these newly-homeless victims. there's aerial shots of house after house destroyed and people have nowhere to go. >> reporter: liz, that's correct. i mean, at this point we we still have 88,000 people that are under mandatory evacuation orders, many of whom have lost their homes, as you're seeing. and as you noted, and i think this is so important, danger is still very much present and real. but the reality is there are already people that are dealing with the loss of a home and an entire life and how they rebuild

from something like that. one of the ways that folks are trying to help is with a distribution center like this. this is completely volunteer-based. everything you're looking at, this row of shoes, everything behind me, those who have lost everything can come here, try things on and start to rebuild their life. and we are talking about thousands of people behind me some of the volunteers and the folks who are here trying to pick if up the pieces after this fire. i mean, i have lance, my photographer, pan down. we just have so much clothing. it's amazing to see a community come together. but the sad second part of this story is talking to those folks who have lost so much and are trying the understand what life looks like as the fire hopefully recedes into the distance. one young woman, ursula are, had to evacuate. she didn't lose her home, but she says her uncle lost everything. take a listen. >> they're devastated. it's so terrible. it was uncalled for. so out of nowhere. you don't really prepare for

until it actually happens, but, yeah, i mean, i don't know. they're looking for resources, and i'm trying to send them as many as i can. >> reporter: so one of the challenges with this, this is completely volunteer-based here. they're trying to to get organized with goods, right? because you don't know -- this is not through fema or any official organization, so they want to make sure the people getting help actually need it. so we've been talking to folks, and the challenge now is because there are still so many red flag warnings in effect, people have not been able to get back to their homes. some are wondering whether or not their home still stands, others like ursula's uncle who knows it's completely gone. while the fire still rages, people have rehaving to think about -- are having the think about what happens tomorrow and the day after. liz: madison, it's nice to see the generous the city of people giving time, clothes and shoes. i got a call from somebody who lived in pacific palisades and said can you send me anything

from new york? they're been left with nothing. hay don't want to the spend the money, certainly, to buy the clothing because they still have mortgages on houses that don't exist anymore. madison, thank you. signet jewelerers is tarnishished at this hour, on pace for its largest percent decrease since you've got to go back to the lock downes of march of 2020. we're going to tell you what's got signet turning into a diamond dog. and the self-proclaimed crypto president takes office in less than a week, but will president trump's new sec really create a new bitcoin boom? we take a look at the new environment for digitallal asset players with robinhood's top crypto executive the, johan kerr bra. that's next on "the claman countdown." don't go away. ♪

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liz: the securities and exchange commission has hit online brokerage robinhood with a $45 million penalty. investors are piling into shares which earlier were up 9%. right now they've pared back a bit, just up under 6% at the moment. the sec said two broker-dealers violatedded laws related to their brokerage operations. the crypto business was not included in the scope of these violations and actually got a vote of confidence from wall street today. finish bernstein naming robinhood the best idea for 2025

the within global digital assets' coverage. the research firm saying that the sec appears poised to turn pro-crypto under a trump administration, allowing robinhood to lives more tokens and capture a larger share of the spot crypto trading market than it already has. robinhood crypto vice president and general manager johan kerr bra joins me now in a fox business exclusive. right now robinhood has a huge crypto business. what are you expected after january 20th after president trump's inauguratedsome. >> yeah, you know, i think we are very optimistic. we think that we are past the past four years where there was enforcement and regulation by enforcement, and if now we think we can actually create a framework where crypto company will be able to strive and actually will bring people back to the u.s. to build on top of luxury -- blockchain technologies and really build the next generation of the financial system. liz: well, i guess the sort of

ghost in the machine had been gary gensler, the current -- at least he's stepping down right before inauguration -- securities and exchange chief. what the do you hope to see from the new sec? just all regulation cut out there? doesn't that then put into peril the from if file of crypto trading? -- the profile? >> we actually at robinhood welcome regulation are. we think if there's a clear framework that we can work with, we'll be able to build a product that our customers want and at the same time protect customers because without any regulation, we have seen a lot of issues in the crypto space in the past, and we want to prevent that. so we are, you know, really excited to work with the regulator in the future and help them draft bills that can help us build the right product. liz: it was ftx, the brokerage run by sam bankman-fried, that that really hurt the price of crypto which i believe a couple

of years ago had climbed to above $60,000, and pit just crashed. >> that's right. and that's something where the right framework would have prevented, you know, what was happening around the custody and around the fact that they were lending -- blending funds between companies that they owned. and if i think this is something that could be easily prevented in the future. liz: if you could write a rule that opens up more opportunity to list new tokens, what would that look like? because there are thousands of tokens out there, and some of them are just a joke, are they not? >> yeah. mine, look, we try to be -- i mean, we try to be as agnostic as a possible because we want what people are excited about. we want to assure that people have access to the financial instrument that they care about. and i think a lot of time when we look at cryptocurrencies, we're only thinking about some of this mint coin. but there is also the technology behind it, blockchain technology, that we are really excited. and we think we can really build

on top of it. with stable coin, they're allowing 24/7 installments, and we think we can do the same thing with securities or stocks that will be tokennized and removing a lot of the issue that we have with traditionalal assets. liz: it wasn't like robinhood crypto was dodging any, you know, regulation. at the sec, i believe last year, sending robinhood crypto a wells notice which indicates there may be an investigation and potential lawsuit. where does that stand? >> well, we haven't had any if updates on this matter and, you know, we think that we've been really, really careful to play by the rules, you know? we are very focused on not listing a lot of assets. we never launch lending product if or -- product in the u.s. so i think for us this is really a demonstration that robinhood is going to work with regulator. hike, we went to the sec multiple time it is to discuss with them and register when gary

gensler offered the exchange to register. so this is the past, i i think, and now we can look forward to the next four years and hope that we can work with the administration. liz: well, is it possible that the new sec under donald trump could look at that wells notice and add suck subsequent investigation and say, you know what? we're done with this, let's put that in the circular file. >> i think anything is possible and, he has absolutely the power to do so. but what we are more excited about is is really how can we build the next generation of u.s. company, u.s. financial company. i think one of the main if focus at a robinhood has been the give access to americans and give them control around their financial debt balance. liz: well, now just so people know, you allow people to trained to 20 the different clip to currencies. what has been -- cryptocurrencies. what has been the newest one you just put on the platform? >> we add added a few in the

past few weeks, since the election. so, you know, we have different variety of clip to currencies and some that are -- liz: is doge in there? >> doge has been on the platform for is have -- a very long time. it's something that is very popular -- [laughter] liz: no game ty case anymore, no confetti explosions on the exchange -- >> we don't have confetti anymore, but we're really making sure we give the rail -- right tools for the investors. americans is and anywhere in the world were sometime excluded from financial decision, you know? you had to be accredited investor to invest in particular instrument. and it's something at robinhood where we are focusing on are removing the barrier to entry. for example, we allow fractional shares so you don't need to pay the entire share of amazon to invest in the company -- liz: yeah, the slice. >> exactly. so we are doing the same thing with crypto. we want to make sure people have

the right tools. we give them access to notification, more advanced platform that we launch last month, and the idea here is that, you know, ono matter what you believe around cryptocurrency or not, at least you have access and the tools for it. liz: i know, as we finish up, that you first became interested in crypto in 2010 when you were, what, 4 years old? [laughter] very young, i am sure. you were one of origin toes. -- originals. where do you think bitcoin coyne goes in 2025? >> i actually think we're very early in the crypto space. i think what we're all starting to see with institution coming in, with etfs last year, i think just the gunning, and we're about to start seeing companies building on top of it. and if you ask me where you think it's going, i could actually not tell you because it's been such a wild ride in the past 10 years. if you think about, a year ago it was 40k about, bitcoin, and five years ago it was less hand $10,000. so, you know, there is a lot of

things that will play around the price. but what we're really excited about is building on top of the technology. liz: and, boy, building robinhood's base of crypto traders. johan, please come back. thank you very much. >> thank you for having me. liz: signet jewelers is kind of looking scratched and tan tissued at this hour. we do have the stock down about 20%. the parent company of zale's and k jewelers lowered guidance after holiday sales came in weaker than expected. same-store sales came in down 2%, and this was during that crucial 10-week holiday period. and if you look for a reason, the company said consumers optedded for less expensive pieces. kb home trying to build its stock back up after falling 24 from from it september 19th high of $89 per share is. shares are moving up about 5.5%, but still just below $68. we do have it on the session, the news that the home builder beat on the top and bottom line for the fourth quarter.

kb home reported $2.52 on $2 billion in revenue. southwest airlines shares are ascending by about 1.33% on cost-cutting measures. the airline announcing today that it has paused corporate hiring and most of its summer internships in an effort to save money. southwest under pressure last year, certainly, by activist investors. also said it will pause if its annual southwest rally which often featured free concerts, djs, food and photo opportunities. and a.i. does it again, applied digital still gaining 1 1% after mccar erie announced to invest if up to to $5 billion in data centers being built by the a.i. infrastructure company. a.i. is not, though, as you to know, just about data centers and chips. one company coming for google's stalwart internet search engine leading some to ask, will perplexity be the google search killer? we'll pose that to perplex ifty

ceo iowa vin -- in a fox business exclusive. and tiktok influencers including 8-year-old new jersey resident goes by the rizzler, 8-year-old phenom descended on fox news radio offices to tape a podcast with me. he's been making a lot of money brand endorsing, like a lot of people on tiktok. listen to what he that has to say. you can listen to the podcast wherever you hear your podcast. stay tuned, we're coming right back. dow looks to be up about 100 points. ♪ the road to opportunity. is often the road overlooked. (♪) at enterprise mobility, we guide companies to unique solutions, from our team of mobility experts. because we believe the more ways we all have to move forward. the further we'll all go.

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prevent the u.s. if from becoming energy dependent on other countries. a final sprint from the biden white house to pour money into data centers comes just a day after the administration proposed new restrictions that would limit the export or a.i. chips to rival nations china and basically 120 other countries including some of our closest allies, mexico, israel and switzerland are. the company that makes the leading a data center a.i. chips, nvidia, is not happy. not only is the stock down about 2%, but nvidia's ceo called out the biden administration's new rule saying, quote, it's a sweeping overreach. a company that will be affected by both of these sort of conflicting executive orders that just have come9 from the current administration, in his only interview since the order came out, aravind srinivas joins me now in a fox business exclusive. you run perplexity a.i. which is

a highly rated a.i. site where people can search for anything. you've been on the show before to explain that all of the the sourcing comes up at the same time. give me your sense of how both of these -- one's a 3r0e78, and one's an order, affect you and perplexity. >> well, it's pretty difficult to say now. i think we're american company, so, you know, we still have all the access to the close and ope. the initiative to build data centers within the u.s. on federal lands is pretty interesting, to be very honest. like, it's good that u.s. government wants to lease out the lands for building even bigger data centers here. we're not in the process of training real large foundation models ourselves, so we use molds by d -- models of others and train on top of them. so if it helps to build even better models, i think it's a

pretty good thing. and if there's more players who can build big models, that's a good thing. though i don't think it's very good that we're kind of stopping the education e porting of models and chips to to other countries because obviously the more people use american chips and american models, the better. the ownership of the ecocan system is a bigger thing than just short-term -- and keeping technology -- [inaudible] or else china's just going to build better models in their chips and start to take ownership of the ecosystem. liz: well, i see both sides of this, i definitely do. i know that nvidia has invest in perplexity. nvidia has a far and away lead when it comes to making the very chips that run the a.i. data centers, the blackwell,s which is very expensive. i mean, they can't make must have of them. you've got smci. we're looking at 5-day charts of these companies that have started to get hurt as far as their stocks are concerned in the wake of these kinds of

executive orders, but we don't want to give china the lead by giving them the very material that can help them grab the baton and run away with it. >> exactly. so the chips act that was done a while ago is one example we should look at. if you're aware, there's a model that china put out recently called the the keep sea version 3 that's -- deep sea version 3 that that's close to american's close source frontier models. and it was -- h-800 chips which are not as good as the h-100 chips. so essentially, it's 2,500 gpus or that were used, lower than what was needed to the train the american frontier models. and that model is just trained for, like, two months on second-tier chips but a fraction of the budget, and it rivals

america's best models, and it's preetly open sourced. -- completely open sourced. that's actually not great because if people, developers in america start building on china's open source models, the ecosystem ownership is essentially china, not u.s., right? liz: well, exactly. but let's just talk about perplexity for the moment the register had a very interesting headline, and it said guide for the perplexed, google is no longer the best search engine. they call you, perplexity, the one where 90% of online searches globally, while they're on google, you know, you've got the chatgpt retaining 4% of the market share, but everyone says you guys are the best. how are you feeding your search engine now? last week at ce es elon musk did a zoom at a dinner that i was at. and i want you to hear what he said about how most of the information, if not all, on the internet has been used up, listen. >> the useful thing is synthetic

data because we've actually run out of all the book, literally run out of -- you take the entire internet and all books ever written and all interesting videos, we've now exhausted all of basically the cumulative sum of human knowledge has been exhausted in a.i. training. that happened, basically, last year. and so the only way to then supplement that is with synthetic data where the a.i. creates, it'll sort of write an essay or come up with a thesis, and then it will grade itself and sort of go through this process of self-learning with synthetic data. liz: so synthetic data may actually cause fewer problems. i don't know if it's reliable, but you had the problem when our sister company, news corporation, filed a lawsuit in october against you for basically utilizing the "wall street journal," the new york post, all of that content and not giving them any

remuneration. i mean, copyright infringement. where does that stand, aravind? >> so there are two ways of using publisher data, right? one is you want to train models on it like foundation models, which is kind of what elon is talking about in his interview. and i think that is not what we're doing. we're actually using them as sources for realtime information, basically the a.i. is going to plug into some of these sources to be able to answer your specific question, but there's no training. it's just being fed into the model, and the model is using that information in realtime to get you an answer pretty accurate backed by sources. so in the second case, there is no model training, there's no, like, copyright infringement because these model zs are just summarizing what's already existing and attributing to the right origin, right? so elon's point is that most of

the common sense that exists on the internet has been -- by these models, and that's pretty close to accurate. but at the same time, all the new information that keeps getting created on the internet almost on a daily basis like news and sports and all these things are still pretty useful to con i assume. and they're just interacting with these through the mold that has reasoning or smartation abstraction on top. liz: well, i know it'll be a big battle on who who gets paid for the content they create and receive, but we will be watching all of it. thank you very much for joining us. >> thank you. liz: we are coming right back. stay tuned, much more ahead. ♪ ♪ ♪ i have type 2 diabetes, but i manage it well. ♪ ♪ it's a little pill with a big story to tell. ♪

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shares of parent company edison international have dropped some 24.5% since january 7, the start of the disaster. despite the increase in scrutiny on areas electric utilities, count down closer is bullish on the sector in part because the fires have drawn scrutiny and investment of the utility sector and i have sort of a negative into a investor positive in a way? >> sure, despite the horrific events over the last three weeks and idea on utilities was data center buildup and you neat -- buildout and need electricity and grid and dividend yields being higher and utility sold off, that was the initial thesis and valuations was attractive, i would assume you'll have more scrutiny on the grid around the country, which leads to more capital expenditure by the yuletity companies to invest in want grid, which probably helps their rates.

liz. hearings about the grid and texas in snowstorms a couple of years ago and when does it become a federal issue? >> it's always been a federal issue and moten mentum behind the excuse and going for the revenue standpoint and going for them and the trajectory to be high and the ai is high and impinatatous for scrutiny -- impetus on the money and screwedny on the money. liz: what's the best way to invest? >> utility sector etf and a whole basket and god for bid someone went out and invested in edison, which is the utility under scrutiny from california.

liz: too much exposure. >> yes, and country wide exposure across various themes and too build up the grid and owning etf. liz: how do the dividends work and do you get the basket of stock s? >> you do. the average weight basket of dividend yield collectively. liz: interesting. we have the fed coming up in a couple of weeks. what are you expecting in light of the fact that we may get an interesting cpi for december tomorrow? >> really f fascinating in the bond market and talking about stocks but looking at spread between what's happening on two year treasure i reigns leadings and 10 year. different between the to. it's widening and investors getting more concerned on the data and 10 year at 4.8% and 2 year is hung wide and nearly half of 1% difference between the two and means that investors are starting to price in the bond market. that inflation is going to be with us for longer.

liz: john, good to see you. >> you too. liz: happy new year. here comes the bell. the dow is within this hour alone doubling its increase here and we started up about 90, 80 points and thousand we're up 227 points and even better than a double here. s&p up about six po points and nasdaq can't do it down 4 and will russell is a nice day more than 1% and up 24 points. that'll do it for the claman countdown. big day tomorrow, don't miss it. larry: hello, folks. welcome to kudlow, i'm larry kudlow. paid hegseth delivered a big win on capitol hill for secretary of defense and reaction from secretary kevin cramer in the room and congressman and navy seal derrick van ordin and bio