i'll ask charles schwab's liz ann psalmedders what we can expect in 2022.t's next -- saunders. ♪ ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq we have to be able to repair the enamel on a daily basis. with pronamel repair toothpaste, we can help actively repair enamel in its weakened state. it's innovative. my go to toothpaste is going to be pronamel repair. once upon a time, at the magical everly estate, landscaper larry and his trusty crew... were delayed when the new kid totaled his truck. timber... fortunately, they were covered by progressive, so it was a happy ending... for almost everyone. ♪ jack: the federal reserve is expected to make several interest rate hikes this year to bring inflation under control, but how aggressive will they get, and how will higher rates affect the market and your money? joining me

joining me now, charles schwab's chief investment strategist, liz ann saunders.r joining us on the show. >> my pleasure. jack: one of the really cool things about your research is you focus on the forward-looking indicators. what are the data telling you about inflation right now? >> there is some hope. first of all, we have what i would consider the reverse space effects that will start to kick in at some point. we have to remember what caused the initial eye-popping numbers in inflation in the middle part of 2021 was the comparison to the year prior when we were in lockdown mode and we went into that pandemic-fueled deflation era. and now, of course, as we get further into 2022, those costs go -- comps go up against much hotter numbers. if you look at ratios like ism, new orders relative to production or inventories, those tend to be leading indicators. those are started to roll over, so it's not universal. we still have the wage pressures. this is not an imminent decline in inflation. but looking at rate of change, that second derivative, and leading indicator

joining us now is ceo of charles schwab good to see you, walt.nk you for joining us. >> thank you for the invitation. i'm thrilled to be with you today. >> so talk us through the quarter. we're mentioning the shares are down but down less than srivals are you seeing a tradeoff? >> not seeing much of a change from a client engagement stand point. i'm in this chair now for the 14th year. i suppose the timing is bad. i should do "closing bell" more on the time of an earnings beat than miss but it is important to put things in context that we still grew revenue 13% year over year net income expanded by 22% when you adjust for one-time costs related to the ameritrade acquisition and expanded the margin so it was an outstanding quarter from a financial standpoint and i think when you look at client engagement we were fortunate the clients entrusted us with about $80 billion in net new money in december alone so whether you look at any aspect of the quarter and the year it was outstanding and did miss the estimates that analysts make a couple cents this

kathy jones of charles schwab. can we tease ahead to salida subramanian, joining us in the next hour? fed tightening into an overvalued market, the s&p is more sensitive than historically higher rates. if cash yields rise, they are margin pressures from wage inflation, supply chain issues. they continue. you mentioned that point where things change. is it 1% on twos? does that get it done? tom: no, i would suggest not, within all the literature i read. you've got the nominal space, the current yield with inflation figured in, and as kathy jones mentioned, her analysis of the real yield, the property of jon ferro, you can see that friday afternoons, but that is to me the key issue. you looking at the nominal space or the real yield space? i would always tilt to the most space because that is where the animal spirit of the country is. jonathan: if you are looking at real yields, are you looking at the levels or the adjustment we have seen so far your to date? the fact that still we have deeply accommodative monetary

there's just trying to track or on fidelity or, or charles schwab. they don't have a completely read it again and not in their favor. you just go out what game starts with a lot of money that the people that make the most money were the hedge funds in the insider traders. because there was a me over so $100000000.00 when they were 3 against any other things. you have things with people like goldman sachs who in the 2000 a housing markets, they shorted the market where they sold it to their class long. they got $4.00 and $500000000.00, but they profited over $1500000.00. and then recently there were cost moving the gold and silver market from 28 to to 16. they were flying $992000000.00. but you know, they made a trade so it's basically the cost of doing business. nobody goes to jail, they just pay fine. they continue, we do this over and over again. i said it was a 2008 if you remember, the regulators are captured in there were yes, you see, you know, watch for that. you have a mouse policy scheme. there were 6 subset of complaints. nobody did anythin

jonathan: liz ann sonders, charles schwab chief investment strategist.y up to speed with what is happening in this market. futures are down 47 on the s&p, down more than 1%. the nasdaq 100 is down by almost 1% as well. looking at apple, just about holding onto gains. still positive, but session lows up to 15%, even with solid numbers. lisa: people saying we will be rescued by the fundamentals, and if the fund mental's couldn't rescue this name, what will? this raises concern heading into an earnings season that might not be a strong as we saw from apple. jonathan: lvmh is down 0.9%. i'm getting a lot of messages about this. these numbers for most people were better than solid. they were great. kailey: blew past expectations. a really strong recovery in the luxury sector. yet it is not enough to see a firm reward for the shares. they started the day up 5%, but as we saw broader europe roll over, they are rolling over as well. jonathan: we are trading softer this morning. let's get to kriti gupta for her chart of the day. kriti: we have to talk about the c

way people expected them to grow when you think about morgan stanley and what they've done and charles schwab those are much better bought at a fraction of the multiples that a robinhood is trading at. and so, what's interesting to me, i just looked at coinbase which is down, maybe a buck only, coinbase obviously has had a very tough go of it, but we talked about it a month ago, would you rather be in coinbase or robinhood and you know, this quarter is horrific and it's only january whatever -- 27th or 8th -- i don't know when they made that guidance, maybe they just came up with it last night or today i don't know but i don't know that things are getting much better and it should be cheap and it will trade down, and will trade down, i wouldn't touch it but wouldn't short it either it's a no-judge >> all right conference call is 18 minutes in straight ahead much more on robinhood. tomorrow marks the one-year anniversary since they restricted trading on several retail stocks we'll hear from one that was awarded $30,000 because of this fall out first, visa conference call is underway and we'll

we are going to talk with a number of market experts thought leaders, from charles schwab, and galaxy digital, about these wild market notes coming off the fed decision, plus two big names reporting earnings after the bell. results from expert analysis of tesla and intel soon as those numbers cross. >>> joining us first of you all to weigh in on the press conference specifically, chief market strategist at jefferies and manager at asset hill management and very good afternoon to everyone. and come to you first of all, because what an extraordinary intraday turnaround in terms of market reaction. was your interpretation as confused, let's say, as the markets were if you compare and contrast the interpretation of the statement versus the press conference? >> no, i don't think it's confusing at all i look at the press conference very much as a valedictorian by chair powell they achieved their mission. they have super accommodating policy andhave a strategic pla and a tactical path to pull back from that. and so i thought he did a really fine job as he put it of saying we're going to be h

charles schwab and cvs health. your shipping manager left to “find themself.” leaving you lost. need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire every day in business brings something new. ma so get the flexibility ofn. the new mobile service designed for your small business. introducing comcast business mobile. you get the most reliable network with nationwide 5g included. and you can get unlimited data for just $30 per line per month when you get four lines or mix and match data options. available now for comcast business internet customers with no line-activation fees or term contract required. see if you can save by switching today. comcast business. powering possibilities. >>> shares of cigna are up 10% in the past month as mu money rotates out of tech. the ceo appearing at the jpmorgan conference today and now, david joins us along with bertha coombs. welcome back, bertha >> thanks very much, kelly, and thank you, david, for joining us you reaffirmed your guidance thi

toll brothers and so forth who will do well well, of course, goldman sachs, morgan stanley and charles schwabecause they have the ability to lend money through the margin lending process then you go to the banks, like jp morgan, bank america, citi also up about 2 to 3% today. so i think all of that continues. and i think the big thing that you said that i'm watching for, scott, is whether or not we do see very significant velocity surge in the ten-year. i am not anticipating that i think that's the outlier result, even though we made a move over 160 today. i don't think we make a big moon shot through 2%. i think that's like a ceiling. we hit that ceiling and then bounce and hang around that level for a long time, scott so that's what i'm looking for in other words, i think the wind is out there, but it's not a strong wind yet. it gets stronger as we get to 2% and if we hit 2% and bounce back, then i think we can handle the wind just fine >> you'll keep, joe, watching rates obviously as doc is talking it's the most relevant area to keep your eye on as we hit 161 on the ten year. john was talk

charles schwab is down 5%.>> and home builder sentiment is down for the first time in four months. material and labor shortages significantly lengthening construction times for new homes. however, sentiment is still at high levels. the new york state manufacturing activity decreased for the first time in a year and a half with new orders posting a sharp decline. you're now up to date. jon, back to you. >> rahel, thank you. >>> now back to the deal of the day, microsoft wants to buy activision blizzard for almost $70 billion. here to discuss serial gaming entrepreneur ceo raul sudd good to see you. can you imagine a world call of duty is an xbox exclusive. is sony going to allow that to happen what do you think are the chances this deal gets done with no conditions? >> i think the chances the deal getting done are quite high actually >> but with no conditions. >> well, i mean, there's a number of reasons why. they have -- there's first of all in terms of microsoft's technology, i mean, they have a massive metave

we'll be watching for goldman sachs, bank of new york melon, pnc and charles schwab. one winner on the morning session, up, charles schwab, up 2 and a third percent right now. take a look at goldman, the stock down 2 and-a-half percent. we'll get the numbers to you in about an hour's time. joining me now head of investment strategy, hank smith is here this morning. joining the conversation all morning long is fox business' dagen mcdowell and forbes media chairman, steve forbes. hank, as we watch expectations for interest rates on the move this year, what's your take on allocating capital in 2022 we are expecting multiple rate hikes from the federal reserve. >> well, maria, first of all, a correction is long overdue. we have not had a correction in the s&p 500 since the bear market almost two years ago and that is very unusual. we've had very, very little volatility over the course of 2021 and we seem to be making up for it right now. that said, look our expectation is for much more modest returns in the equity markets, probably single digits. but it's still going to b

we're joined by charles schwab, chief investment strategist.morping to you both i'll start with you. we did see that hawkish pivot by fed chair powell back in the end of november. we had fed minutes last week that continued to gyrate markets as well. what are you looking for in terms of commentary, guidance, from the hill today? >> so, i suppose he'll be peppered with questions regard to policy as opposed to what might be the standard questions associate would the reconformation and lorraine out this morning saying she's penceling in three rate hikes and maybe a chance of tour the pressure is on and a lot more discussion, especially in the aftermath of release of minutes about, not only potentially ending tapering sooner but initiating quantitative tightening in conjunction with rate hike i think that's been the reason we're seeing the weakness in the market we have so far this year. >> i want to get your thoughts on this as well. especially when we see a chart of the 10-year yield right now we saw it testing at 1.8% key level earlier in the we

since the stock went public last july last week, we spoke to the ceo of interactive brokers and charles schwab and got their take on whether this competition from robinhood was really a threat to them >> we never have lost market share to robinhood we have always gained customers from robinhood and we never lost customers to them. but i take my hat off to robinhood because what they have done by bringing 20 million young people into the business is absolutely fantastic. and you know, that helps us business wise because as some of these customers become more serious and they decide to have a more serious platform, then some of them come to us. we have roughly ten customers a day from robinhood >> we're not suffering in terms of winning clients who are younger. and of course, our average balance among those clients is quite significant. many multiples of the fintech type of firms that have historically pursued the millennial investor. >> and mike, i guess we saw that theme in terms of the monthly active users play out, that it seems to have peaked three quarters ago the question for them is whet

so here we go with the nba coddling china again >>> and reports expected from mellon, pnc charles schwab more when we come back d get sta. d get sta. ♪ ♪ ♪ digital transformation has failed to take off. because it hasn't removed the endless mundane work we all hate. ♪ ♪ ♪ automation can solve that by taking on repetitive tasks for us. unleash your potential. uipath. reboot work. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq the pursuit is on. yeah... oh. don'the pursuit ofit! outperformance at pgim. with deep expertise to outthink across multiple asset classes, actively managing investments in the world's public and private markets. outscale, with the resources to serve 1,500 clients in 52 countries. and outlast, with long-term conviction that looks beyond today's volatility. join the pursuit of outperformance at pgim. the investment management bu

schwab! ♪♪ >> charles: this new push on capitol hill gaining momentum to limit stock trading for members of congressn calling for changes since last year. congressman roy, congratulations. what is precipitating this? this is one of the weirdist thing. might be the only bipartisan thing going on in washington d.c. why is it gathering steam? >> thanks, charles. happy new year's to you. great to be with you. this is something that has bipartisan support. port legislation. we don't think that members of congress ought to be able to be capitalizing on their positions of power when you make important policy positions on big tech, big pharma, big insurance and in the wake of obamacare. you shouldn't be trading and making profits while you're serving in public office. you and i are market people. i want people to make their wealth and prosperity and come to capitol hill and serve. put yours in a trust or you shouldn't be buying and selling equities that you're voting on, issues and policies that direct them. >> charles: that makes sense. no one should believe that there's any improprieties going on. yet the

gang of america, schwab, a few others, regional banks acting great here. i think you stick with them. charlest of them report this week. i will get to earnings more, last week on friday there was 672 new lows on nasdaq. for the week 1145. these are mind-boggling numbers. >> it is. charles: does that suggest investors should give up trying to bottom fish right now? >> you never give up. you always keep focus. i can promise you in the next five years the biggest winners come from the nasdaq. right now they're simply in a bear market. if there is anything i taught people about bear markets price will go lower than you would ever believe as valuations go from extreme to the upside in a bull market to the downside. i have to tell you, i'm surprised at some of the moves in things, peloton, what the heck happened there? and so many other growth names. but never lose focus. what i simply do on a daily basis what companies are growing their business 50% plus year-over-year that are just getting caught in the maelstrom of a bear market for growth and high beta names. they will eventually come out of it