sense and that will continue and maybe even accelerate ultimately that's really good for the u.s. in the u.s. people, the u.s. defense base, now we have the incentive and we have the memes mode of opportunity to get back to building our own stuff again as opposed to exporting ious for other stuff from china. >> i love your work i appreciate i learned every time i talk to you and read your work. i know it's a complicated system it's an embedded system. but it feels like if were going to do it this might be the time. thank you so much i wish we had more time. we will carve out more next time. we learned a lot from you. thank you. market has been up all day. it's kind of intriguing we were met with the tariff headlines that have hit the market on occasion but today is different i'm not sure why but the last hour of trading will be gangbusters. liz: it always is but we are waiting we are waiting for the official word on those tariffs

in the breaking news is charles is right the market is on phase four now by president donald trump's threat on friday and the subsequent comment over the weekend that he will impose 25% tariffs on all steel and aluminum imports from all countries including mexico and canada while the threat has not been formalized yet, the dow jones industrial does not seem to care up 128 points at the moment. the s&p this is a nice move of two thirds of 8% 40 points for the upside, the nasdaq at 203 and we have the russell 2011 points. ahead of what could be the tariffs on foreign steel coming in stocks of the domestic producer are firming up pretty dramatically look at cleveland cliffs, big winner. we have clf up 15% new corporation up 5.7% followed by steel dynamics, commercial metals, u.s. steel, everybody's getting 4 - three, 204% bump, we

should check aluminum producers the big-name century alu aluminm alcoa up 2.5%, century up more than 10%. it is going to take some time to see whether domestic steel and aluminum prices jump in the wake of the expected tariffs. were about to get a fresh picture of overall inflation currently stands. if you look at what were waiting on we have a jampacked earnings and economic data calendar this week, so much for investors to keep an eye on we have the names that might be in your portfolio, coca-cola reporting tomorrow with marriott, shopify, doordash, supermicro computer, craft times, robinhood, cme, palo alto networks, i could go on and on, they are filling out the rest of the week. big inflation data coming on wednesday with the january consumer price index. the producer price index on thursday. we are looking at can we show

the cpi the consumer price index is inflation at the consumer level is still not expected to get down to the 2% level which is the feds target rate. i guess we don't have that. do we have that? nobody is talking to me. i am waiting. here we go year-over-year the headline number 2.9%, the core this excludes volatile food and energy prices, that is even further out than 2%. it's expected to commit at 3.1%, friday we are looking to see if prices have risen how will january retail sales come in we will see if the consumer is becoming more cautious. mcdonald's kicked off earnings this morning. if the burger giant stock is any indication or the earnings report, the consumer has gotten a lot more cautious. while mcdonald's is jumping to the top of the dow. if you look under the meat patty, deeper into the earnings you will find mcdonald's posted

the biggest u.s. sales decline in nearly five years, some of this can be blamed on the e. coli outbreak in october the efforts to luer customers back with limited and discounted offers did not really work as the company said the slight pickup and store traffic was blunted by smaller average amount spent per customer per visit, by the way we have a double future this week starting federal reserve jay powell. he will appear before the senate banking committee tomorrow and house financial services on wednesday for the semiannual congressional testimony, let's bring it to the floor show state street global advisors chief investment strategist michael roney and trader scott bauer, both of whom i'm sure have put their popcorn orders in. are you waiting on powell or low volatility here in a market that appears to be very comfortable at least at the moment? >> i think the market is too comfortable quite frankly.

it is a great trading environment. a fantastic trading environment. it's really difficult for people separate trading and investing but the low volatility that we are at right now is not going to last li this we will continue to see news coming out of the white house the administration which is going to affect the market. anytime we get a little bit of a reprieve i am a buyer of up vix contracts and prottion in the marketplacand i'm not suggesting that the market is gog lower. what i'm suggesting is the volatity is not going anywhere. i love the market where it is right now. there is a few places that i think are really really opportunistic right now. you know as we talk about is always great to have that protection when you can get it and not when you are forced to run after now is one of the times with the vix trading at these levels.

>> are down for nap% to below at the moment. when you look at everything that is happening here with the market and waiting on tender hooks it doesn't look like the market is concerned is this a chicken little thing the sky is falling tariffs are coming. they will eventually come president trump has said that. as the market you mirror to that and how you play that as a strategist who has a lot of money under management. >> i think it's right for the market to look beyond the threat of tariffs in the federal reserve, trade represents 24% of gdp in the u.s. when we look at how many sales the s&p 500 companies generate is about 16 and a half trillion 1 trillion comes from canada, mexico and china. overall there's a lot of good news going on earnings are outstanding, small businesses are gaining confidence, manufacturing is rebounding. there is a lot of really good news that is driving markets. the way i think i'm playing for

sure looking at areas where the earnings growth gap is closing between investment and technology. liz: where are the area. >> small-cap, financials and contrarian idea would be on the healthcare side financials is where the earning growth is faster than the market they treated at a cheaper market multiple and are insulated from some of the tariff threats because they generate most of the revenue domestically. liz: if you look at the six-month picture for the xls the six-month picture up 22% that looks great. but if you look at the small-cap sps and the six-month picture is up 8%, we have been waiting to see a huge breakout for the small and mid-cap. what is going to trigger that. >> the biggest ingredient to trigger that is the fact that beginning in the second quarter, small-cap stocks are expected to generate more earnings growth than large-cap stocks the reason large-cap have beaten small-cap for eight consecutive years that is where the earnings growth has been that saul expected to change in the second quarter.

when and if it does you can see small caps will outperform they treated a cheaper multiple, tight credit spread should benefit them add in m&a, lower regulation and taxes and potentially lower interest cost leader favorable for small-cap. liz: that's a big potential, the fed is expected to pause once again scott bauer. if you look at the trading environment versus the investing environment those are two very different things, are they not. the trading environment we see steel stocks biking cleveland cliffs up 15% in anticipation that people will be forced to buy u.s. steel, u.s. manufactured steel versus perhaps the tariff expended foreign steel that might be coming in. do you look at that and say let me be a buyer of u.s. steelmakers? >> i personally don't even from the trading standpoint. what i look at and agree with

michael completely financials to me are one of the sectors that i think are going to absolutely have an incredibly blowout quarter next quarter we producing results but would you look at the backdrop in the landscape and especially from a trading standpoint here, the sector this is going to break out. they are going to have like goldman sachs, j.p. morgan, bank of america, i think that the revenue that they will have from trading revenues are going to be absolutely incredible. michael mentioned m&a, who does not benefit, not just small caps that will benefit a lot of the financials as well. this is an area that i like both as a trader and as an investor longer-term somewhere that i want to belong. when you talked about the steel stock that scenario or one-off when the news is right there. >> let me jump in if you look at

the last time president trump impose tariffs on foreign steel. one year february of 2018, one year later we can show you this on a chart four out of five of the big steelmakers were trading lower, the stocks were down. michael is not indicative of what can happen this time around. it's not last under necessarily a boom for stocks. >> trying to trade trump tariffs is a mistake by investors. that is a perfect point, 2018 they put in the tariffs, they did not even last year it was used as a negotiating tactic to get mexico and canada to the table for usmca and that is ultimately the negotiation that happened and we all moved on and the stocks fell after that initial bump. i could easily see something happening here again. i would caution investors not to trade on the fed, not to trade on terror threats trade on the fundamentals in the fundamentals look pretty darn good right now.

liz: great to see you both michael and scott, nice backdrop what is unveiled lift ticket, talk about inflation. >> it's a lot of money that's what you have to go the epic pass. that's the way to go. >> that's a monopoly. great to see you, super microcomputer stretching out the super rally once again in the a.i. data server company is flying to the top of the s&p closing in on a stunning six-day win streak what has investors plugging in, find out next. later the a.i. revolution race, why is amazon web services making the controversial chinese chap but deepseek available to all of their customers, matt garman ceo of aws is here and a fox business exclusive to answer that question. and there is a method to that move. the rockwell automation ceos also here on how he's incorporating a.i. into his

robotic manufacturing services and boy is it paying off with the stock, "the claman countdown" coming right back, the dow 34444 right now. take a picture, and dirty change. i'm thinking of updating my kitchen... ...thinking of redoing our kitchen. ...we are finally updating our kitchen. for all those people who never seem to get around to it... —...a breakfast nook. —chase has financial guidance. let's see how you can start saving... —really? —really? at home or in-person. that's guidance from chase.

liz: fox business alert lift and bubblelike shares are powering higher we have lift up 5.5%, bubblelike 12% audit announcement from the rideshare giant that it will launch a fleet about how to miss robo taxis powered by mobile lie as soon 2026, the right heel company robo taxis will begin service to the mobile app in dallas, texas and expand to

other u.s. markets soon after, the reveal comes as lift is on deck to report the fourth-quarter results after the market closed tomorrow. if you look at uber which is partnered with alphabet google, wei ♪ ♪, wilbur is up 5% and got a huge bump friday because hedge fund manager bill ackman said he owns a big chong, he revealed dot of uber shares he's a big believer, that rally is continuing in alphabet is up two thirds of 8%. look at super microcomputer, again surging to the top of the s&p 500 up 16.7% ahead of the second quarter earnings report and ahead of a business update, scheduled after tomorrow's closing bell. investors are very eager to hear with artificial intelligence server maker has to say about the financials. the nasdaq gave the company until february 25 to file the delayed regulatory filings from the last fiscal year with the sec to avoid being delisted from

the exchange, this comes after us mci's auditor ernst & young resigned in october state is unable to be associated with the financial statements prepared by management, since then supermicro has signed on to a new accountant bdo. we are expected not tomorrow, sense one week 47% jump just in the past week alone for sm ci let's look at semi conductor different story, those are falling 7% hitting a two-year low the biggest loser on the s&p in the nasdaq, this is a chipmaker with the fourth-quarter earnings miss and issued weaker than expected guidance on simi san fourth-quar revenue 1.4 billion at the top and the street was looking for 1.69 billion, the ceo said automakers and manufacturers have too many chips for the products that they expect to sell, what a different senses supply chain crisis. the company is seeing weaker

demand for the semiconductor chips. the ceo said 2025 remains uncertain but remains committed to the long-term strategy. shares of fox business parent company fox corporation up under 1% and the media and entertainment announcing the acquired podcast company red seat ventures fox announced the move to purchase the digital media firm as it looks to tap into younger audience with the growing podcast market, red seat said the 17 shows drove over 200 million monthly active use in november the company will operate as a standalone entity under fox to be media group. as fox adds to its empire the philadelphia eagles put an end to another empire last night by knocking off the two-time defending champion kansas city chiefs 40 - 22 in the super bowl , while the game is lopsided the commercials were either really

big hits or misses. fashion designer entrepreneur rebecca minkoff is here on the brand success that she saw in between plays of the big-game. a timely and serious new episode of everyone talks to liz podcast the star quarterback known as one of the most unconventional qb's to ever play bernie kosar of the cleveland browns was able when he was a player to instantly analyze opponents and on orthodox side that had remarkable accuracy and made him not just beloved but revered, he won the super bowl with the cowboys is now facing the most fearsome opponent of his life, like many other quarterbacks before him he has been diagnosed with parkinson's. due to the multiple brain injuries he suffered on the field but in my new everyone talks to liz podcast episode bernie kosar outlines what he started senses diagnosis that has his symptoms getting sacked. hear what he's eating, drinking and doing with doctors to be

parkinson's. i need you to hear his story it is inspiring and amazing they iheartradio wherever you get your podcast we are in the top 5% of the podcast. we are coming right back. don't go away.

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commercial that blew up headlines even more in the eagles blowout against the chiefs was nikes at. watch this. >> you can be so ambitious you can't browse you can't stand out whatever you do you cannot win so win. liz: the nike ad is quite a pivot from a performance marketing strategy to make it a branding statement the ad features out please including wnba caitlin clark, shikari richardson, the company's first super bowl commercial after 27 years on the sidelines nikes commercials were not embraced the stock is underperformed the rebels did the super bowl make nike cool again he's made a

career out of making simple products, uber cool rebecca minkoff entrepreneur and founder of the rebecca minkoff brand she came to new york two decades ago with the passion fashion one investor, her brother a short time later she designed the iheart new york t-shirt, the actress wore it on late night tv ended immediately skyrocketed her fashion empire, let's say her tiny fashion to an immediate empire, rebecca's iconic morning after celebrating the 20th anniversary rebecca is the author of the new book fearless the new rules for unlocking creativity, courage and success, rebecca you are the steward of cool and so many ways. you speak cool, what did you think of nike super bowl ads make nike cool again, that has been an issue for nike. >> i've never not thought nike was cool but the fact that their embracing women at a critical

time for women in sports is really unexceptionable branded number because they're talking now a language they should of been talking about for several years. >> when you look at the messages in the commercial a lot of them are things that you embraced years ago people will tell you you cannot make it in fashion, you're a girl from florida with no college degree, no fashion degree, no mba in your very first rule in your book assign your own permission slip, give yourself permission to stop asking permission, what you mean by that. >> so many people have these amazing ideas they will go to their friends, their loved ones, husbands, wives, what do you think they are asking for permission from these people to say yes go ahead if you were to listen to anybody you would be all over the place, yes, no, maybe you could go into debt and fail you have to have that within yourself i am enough my decision is enough i'm going to be the one to say go for it and it doesn't really matter what

anyone else thinks. >> you been very blunt about what i mentioned you don't have the formal education. you are so win the costumes for the high school musical back in the day and you have to tell your parents i don't want to go to college. ethical get a better education by going to new york interning for $3 an hour. you struggled isn't that part of your rural? >> it is part of the rule you have to do the hard work and there is no quick fix there is no will bring success as i like to say, is the one area and you know this from your career it takes time and hard work and effort to get to where you want to be. liz: a lot of stumbling. those teaching the most valuable lessons. one of my chapters i say sometimes you win and sometimes you learn we need to rephrase failure rate is always a learning opportunity. you don't have the i want to crawl under here and hide whatever i learned from this and how do i bounce back stronger. >> talk about your iconic piece that you walked on the street of new york city and bought the

iheart new york t-shirt you bedazzled it and tore it up and got an actress to wear it. advertising is so key is it not. it could make or break a product. >> you need advertising, pr, grassroots and community you need a lot of things today, back then i would say it was easier you needed a celebrity tabout sd open doors. i always say it did not mean i was an overnight success and suddenly rich and that stores would not hang up the phone when i called that was the benchmark that that shirt got me. liz: it was nodded no but it was a maybe. those are the steps that have to go into it what you make of retail in the state of retail today. there is so much that is supply chain all throughout the world president trump is knocking tariffs all over the place threatening them as well we don't know what the picture is going to look like how to somebody who is watching you in situ as a huge global success rebecca minkoff products are sold all over the world how

would you advise people to wrap their arms around an uncertain outlook. >> i would say control your destiny or your own e-commerce and owned social selling platform whether tiktok or instagram shop i think you need to control your mailing list and how you speak to your customer, the rest is gravy but a profitable margin, positive business it's okay to grow slower, we don't all need to become billion-dollar brands and when you put profitability first and your consumer first the outside world and the fluctuation will be less hard-hitting if you are secure at home. liz: take crazy side window moves you signed on to be a friend on the real housewives of new york you were not actually whether the real housewives, you were a friend you're looking to join the next season. >> i did mike tobin the water and i decided it's not for me i've incredible opportunities right now with the brand and my podcast in my book and my four children i think i'm good.

>> if anybody's complaining i don't have the time, rebecca made the time it's great to see you. >> rebecca minkoff the book is called fearless the new rules for unlocking creativity, courage and success. thank you, top silicon valley tech leaders brushing up on their friendship as a.i. revolutionary descend on paris for the a.i. summit is money the best weapon. if so amazon has $100 billion to spend much of it going to amazon web services. coming up aws. >> garmin is here and a fox business exclusive on where all the money might go to build out a.i., rockwell automation rocketing to the top of the s&p at this hour wait until blake is using a.i. to help his manufacturing customers make artificially intelligent doctoring floors, hardware meets a.i., the c "the claman countdo"

coming right back. stay tuned.

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liz: first the summer olympics now paris is lighting artificial intelligence torch tech luminary including brad smith google ceo sundar pichai and sam altman had descended on a.i. action summit 2025. it did not take long for altman to make headlines in a blog post last night the man behind chat gpt said the cost to use a given level of a.i. falls about 10x every 12 months and lower prices lead to much more use. in a decade perhaps everyone on earth will be capable of accomplishing more than the most impactful person can today. it take to bring the cost down e-commerce giant amazon says we will do it gearing up for what is so far the biggest but ceo on

the earnings call last week saying the amazon will spend $100 billion in x-uppercase-letter this year with the vast majority earmarked for amazon web services cloud business, joining us in a fox business exclusive the man leading the aws charge amazon web services ceo matt garman, welcome to the show. it feels like a bit of a contradiction, spending an eye watering amount to bring the cost down you agree with sam altman moore's law that computing power will become faster and cheaper. >> absolutely i agree with what sam said. we've seen over the last couple of years that the cost of a.i. has come down quite dramatically as he calls out and every time we see costco down we see usage go up by that much more. we anticipate that continuing to happen here and that's part of why we are making investments so we can make sure we support a customer's needs many of the customers out there and largest

companies in the world are building the a.i. and fish structure on top of aws so that is what we are investing in to make sure we can meet the needs of what people are looking and hoping to do. liz: let's talk about that. when you look at what the ceo said last week, $100 billion in the vast quote majority will go to you guys how do you plan to spend it open the window on where you see it having the most impact. >> a lot of that is to build all of our global infrastructure. if you think of what goes into a cloud computing we take a lot of them walk away so the customer can come in and launch the high-powered machines in the clusters and take a village of a.i. and build cool things for the consumers but behind the scenes there is a lot that we have to invest in we have to buy land, data centers we have to pay for power we have to buy chips were building our own

chips. and then servers and install these. we spent all of that ahead of our customers using it. a lot of the investment that you see from us and have over the years we've been doing this for over 18 years and aws we spent the cap ex ahead of when our customer comes in uses it. they use over the next year, two years, three years and five years sometimes 20 years if you think about data centers and power infrastructure. the way our business works we have to put the cap ex ahead of our customers coming in in the business but we are so excited about the potential for a.i. in the demand we see coming from all sectors of the industry it really is impressive and when you see what customers are able to do once we get the power of this technology in their hands you see customers like nasdaq that are using rm for in-service to go and look at market manipulation of potential issues in the market and are able to track that down 33% faster than they otherwise do and just at the early stages of what the technology can do. i was talking to h to folks at e

healthcare, they are building a new large language model using aws infrastructure in stage maker and they will apply it to the 3d mri machines to go would find issues with the patients they could never find before their finding magnitude more findings inside of the mris than they otherwise would have. we see a lot of customers doing cool things like this but it takes investment for us to have the infrastructure in place so they can deliver the value. liz: hopefully at a lesser price, the annual run rate of $115 billion is stunning. that is bigger when it comes to revenue run then target, disney, fedex, tesla, speaking of which, this is just hitting the tape. elon musk has a group that is just made this is according to the wall street journal $197.4 billion bid for control of openai.

it is so evident to anybody who understands what's going on elon musk has pitted a battle with openai about making it profitable versus nonprofitable. what do something like this say to you when the games of brinkmanship plus you at amazon or tried to put together the best quality stuff for the most number of companies? >> how we think about it there are a lot of interesting models out there. it is not surprising that people are investing a lot of the space. there is a huge potential impact to the world as i called out. at amazon how we think about it we want our customers to have access to the best technologies. from the very beginning we built bedrock in stage maker to really give customers access to a wide variety of models out there in a wide variety of capability so they can build their capability on the technology. we partner with many of the different model providers and we

build our own models ourselves, amazon couple of months ago released the frontier model called nova and they're quite popular with customers and why people are getting out of the models and we think of on-time there could be a lot of different models that customers will use and we know that customers are to be billing smaller models and built from their own set of custom data. we think there's could be a little broad set of different models that people use. >> you author and topic, medic, luma, all on a bedrock which i find really interesting because that's why people get to choose what works for you, they can build agents to execute tasks. i want to end out here everybody

it appears uses aws. do you have something like 90% of the fortune 500 in a huge percentage and fox uses it. we use aws. it is the demand exceeding your capacity and how long before that evens out? >> today like you said many of the largest customers in the world are running their businesses on aws and it's in the early stage of what the cloud migration looks like. when we talk to customers. we know 85% of the workload is running on prim. a small amount of workload that it moved to the cloud. while we've done well and we had a lot of traction behind the business but there is a ton of business that we can help out there that's why we continue to invest in the future. our goal is to make sure capacity is not limited for customers to be able to grow and unfortunately we know in the last year or so the

infrastructure around a.i. has been limited by supply chain as many of the pieces ramp up but were optimistic throughout this next year of the supply chain will open up and customers can once again be unconstrained to build what they want to build. liz: demand is a good thing, fascinating times. thank you so much for joining us. >> thank you for having me great to talk to the head of aws matt garman. we just talked about how artificial intelligence is enhancing cloud computing. how does it affect the way companies physically manufacture products. our next guest is at the very heart of that rockwell automation the world's largest company dedicated to industrial automation and robotics in it uses a.i. to help customers streamline task work more efficiently and turn out product. the stock is soaring up 13 it at their present after the company posted a beat top and bottom line for first-quarter earnings rockwell posted earnings-per-share of the dollar

.83 at well ahead of $1.50 1.88 billion in revenue that was in line with expectations but joining us with the fox business exclusive rockwell ceo, great to have you back on the show your industry has changed markedly because the recent investment that you made in a.i. i know earlier you mentioned your the implemented price changes because of the tariffs on china let's start with china first we are expecting at some point today president trump will make an announcement on imported steel and terrorists being slapped on that. what price changes have you made it are you bracing for more? >> we implemented price changes to cover the impact of the already announced tariffs. china is relatively small part of our business is less than 5% of our revenue. about 6% of our cost of goods

come from china. it is not a huge impact but we reacted quickly to apply the tariffs and that's what we've done at this point. liz: your american companies let's be clear are the ones if they use steel and aluminum will have to pay the tariffs. when you say price changes and if the president comes through with 25% steel tariffs on all foreign imports coming to the u.s. have you model for how you will implement different price hikes? >> i don't think those will impact us directly. what we are looking at is the total picture of tariffs plus incentives to manufacture in the u.s. and is a big manufacture in the u.s. on her own right but also with the u.s. as the most important market we think that

these policies taken together will be net positive for rockwell because we serve american manufacturers and we think overall the policies tariffs and all the other things that are being contemplated should create a more positive environment for manufacturing in the u.s. liz: how can you give us an example of a.i. helping in a positive way manufacturing when it comes to robotics and everything that rockwell automation does. >> sure, think of a classic control system with inputs and logic and output think of input as machine vision to be able to apply a.i. to make quick decisions on a packaging line with robotics the logic to use a.i. to simulate different process configurations to make them run more efficiently the output the motion control like

the mobile robots which already have gpu on board to be able to plan the path in the safest and most efficient way in the maintenance for the ability to predict with the complex systems need maintenance. there is a huge amount of data that flows through the plc and the opportunity to harness the to simplify the whole business of automation is really pro profound. >> we love to hear this kind of stuff it's nice to talk about software. we want to talk about the hardware and how a.i. works its way through it. thank you for joining us. >> thank you. >> we are coming right back, when we come back we're going to show you microsoft and how it's reacting to the headline we brought you with elon musk and his group possibly making a bid for control of openai.

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more on the breaking news, wall -- strike that street journal's report on elon musk's $97.4 billion pursuit of openai. yes, to buy a controlling portion of openai is impacting microsoft and tesla shares and i'll take tesla first. the high was 362 and it is now fallen to $351 back down where

it started and on this news going for consortium of investors led by elon musk and the bid to buy the nonprofit and controlling open ark is than chatgpt. how is he goes to fund that. is he going to have to sell tesla shares and microsoft for it is part has fallen off the highs of the session and it was at about $415 and now to 412 and microsoft invested at least 10 billion in openai and a big breaking story here, which brings us to this breaking news in the last hour, u.s. district judge george o'tool jr. will pause the ban for a buyout of federal worker till he issue as ruling on preliminary injunction and the program giving federal civilians a resignation and paying them through september

and the buyouts are part of president trump and tesla ceo elon musk's larger doge initiative aimed at shrinking government spending, which saved the federal government on this doge clock at least $79 billion so far. get to fox business hill virion live from capitol hill. hillary. reporter: hi, liz. doge bombarded with lawsuits aimed at trying to stall the progress and handcuff efforts and president trump said that despite what these rulings are, doge will not be deferred. >> when a president can't look for fraud, waste and abuse. we don't have a country anymore. no judge should be allowed to make that decision. it's a disgrace. some stuff we're find sergeant fraudulent and maybe less debt than we thought of. think of that . a lot of things are happening and elon is doing an excellent job. reporter: department of homeland security and fema finding themselves in the doge hot seat

and fema sent $59 billion last week to luxury owe tells for migrants and going to re-coop the funds and this problem not isolated to fema and musk saying "funds diverted from almost every part of the federal government and appears to be significant funds siphoned from social security to pay for illegals. liz. liz: thank you so much, hillary vaughn and l3 harris unveiled a new ground breaking technology that allows a single person to control swarms of iowa autonomous drones and it's on your screen right now. what anybody can do with this technology. $6.1 billion in assets under mangioniment and portfolio manager and burns mckinney. why do you like l3 harris? it's the the forefront of many things. >> it sure is. there's a handful of reasons and from the top down, right now the

defense sector is an important place for investors to have some exposure. geopolitical hot spots are increasing and not decreasing and typically defense names uncorrelated to the terms and in the case of l3 harris and despite the great new technology, there's valuation is the first thing that jumps off the page. right now get it for the low teen multiple. a lot of defense names are trading close to 20 times earning ands the name with dividend yield hirer than that on the market and cash flow to support it. really ever since l3 and harris merged, there's a name they made themselves the top six defense contractor and the thing that scale is extremely important in that industry and they have been on the cutting edge of technology as well as you noted. liz: scott, pe of about 19 and seems awfully calm compared to a lot of other technology stocks. what is the dividend?

>> the dividend yield has been hovering around the 2% range whereas if you have an estimated 500, 1.5%, and i think more importantly for investors and look at dividends and support of that dividend. they have a free cash flow yield of a 5 to 6% and three times of the dividend and there's a lot of support that can pay it as well as raise the dividend and dividend growers are really one of the best places for them and >> we like that. lauren: and the stock going up and going to be very much and going for the closing bell and going with jam packed hour with just 10 seconds to go and green on the screen. let's see what happens in the after market and with the breaking headlines we brought you and seeing more executive ororders. ♪ lauren: hello, folks, welcome to kudlow, i'm larry