tv The Claman Countdown FOX Business May 16, 2022 3:00pm-4:00pm EDT
the names you know are not going to come back. you want to be prepared for the eventual rebound because i think it's right around the corner. we'll see what happens you don't necessarily force things here, but know that this market is still the greatest money making machine ever, don't be part of the giant washout so wall street can pick-up your stocks at a cheaper price. you want to be the one buying, you want to be the one in the driver seat, right, liz? liz: oh, yeah and you saw that 13 of buffett's filing for berkshire and occidental petroleum and activision blizzard, thank you, charles. dow bulls making a late afternoon stampede, the blue chips down as many of 268 points this morning, now, up about 241, the s&p up 12, as it joins a late session reversal of fortune the nasdaq still lagging as former goldman sachs ceo lloyd blankfein now warns about a recession ahead. our floor show traders are here to tell us which stocks to pick
whether blankfein is right or wrong. the crypto bargain hunters nowhere to be found in the wreckage of last weeks crypto crash, the so-called stablecoins terra and luna at this hour near worthless after melting down last thursday, below their dollar peg. we caught up with bitcoin mega bull tim draper at a major crypto conference in new york city. find out what he really thinks about stablecoins, if you should actually be worried about a coinbase bankruptcy, he's an early investor in coinbase, and which tech giant he says bitcoin resembles the most. he makes the comparison that i think you need to hear. retail in the spotlight as the nations biggest names in shopping reveal their quarterly reports but even as interest rates rise and consumer debt nears $16 trillion, a firm is standing firm on its buy now pay later business model. a firm ceo is here live to tell us why his company isn't just another fintech and how he sees
the nations retail landscape amid the inflation storm and rising interest rates. let us begin with a fox business alert as we quick off the final hour of trade on this monday, the markets are mixed but mostly higher except for the nasdaq. we've been swinging between gains and losses all session long as inflation continued to apply pressure, but so does the federal reserve, as its interest rate setting committee primes the rate hike lever for the june meeting, this guy, former goldman sachs ceo lloyd blankfein, issuing a warning, telling face the nation, that companies and consumers must brace themselves for a recession blankfein says the fed is working to dodge it, but that the inflation picture is too hard to fine tune. the retail sectors quarterly reports will give investors a gauge on whether consumers are starting to lose or at least close their wallets as inflation remains persistent. joining me now, traders kenny polcari and scott redler. scott, how much conviction do you put in the reversal that we seen over the past few hours,
and for that matter, what lloyd blankfein is saying? >> well, let's just put it in context, because talking about conviction on different timeframes, the reversal in the last half hour is constructive but really it was a reversal on thursday that caught my attention. remember we talked about 30, 50 and the s&p cash as a spot, 20% to maybe cover some short, dip your toes in a little bit, so that was thursday, friday we have follow through. today we wanted to see , do we digest or do we fall apart and as of today, as today's actions pretty constructive, obviously we don't like any names leading because that means oil is higher and it's not great for the consumer, but overall, the over sold that started on thursday, i think you still continue to about 4,150 and still be in a recession in two quarters from now, but there are different ways to make money as the market trades. liz: okay well tell me how to make money, scott seriously, right now, because we are seeing depending on the day, moves to the upside or the downside in
the final hour of trade, and it just doesn't look like the conviction is there on at least the upside part of it. >> well you have to put it in relative terms. right now, i'm relatively bull ish until we get to about 4,100 or 4,150, we're at 402. at the top of the hour, there was a great setup, i'm on facebook, i'm playing apple to the upside, so right now i'm tactically trying to make long but then i'll be very careful if we do get to those levels in the next week or so, because you know, it's hard to really say that the lows of 2022 are in , but you can have tradeable balances within the context of a bearish take like we've had. liz: kenny, we are looking at consumer debt reaching 16 trillion and listen, the fed says this is something to be watching. we have student loan debt that's still very much in play, even as there's a moratorium on paying back some of it and yet
you're liking some of the retailers. which ones will holdup in this type of atmosphere as rates go higher and inflation stays where it is. >> so liz, we've been talking about the consumer staple names, it's the core basic consumer staple names that are going to work out. walmart, ross store, kohl's, target, tj maxx, because those are places even during a recession that people can go and find bargains. it's going to be the discretionary retailers, i think, that will have more difficulty because as its name says they are discretionary. awes the consumer can make a decision do i need to spend my money there or do i not. would i rather go and buy food and diapers and toothpaste and soap or do i need to buy some discretionary item that i don't really need, so i think they are going to separate that way and that's where you have to keep your eyes on them and also the consumer staple names are typically big mega cap multinationals that are large market caps that pay good dividends and they quite honestly are flat on the year right now.
the xlp is flat on the year when the broader market is down 18% so those names have been holding in very well. liz: yeah, yeah, i know, and you're right. we've talked on this show, i want to say over the past two weeks where we're talking a lot about need vs. want. you just use the word need a couple of times and i'm with you there. i think that it's maybe one of those , well, need exactly. >> you don't think what? liz: diapers [laughter] i know your son's older than that, but listen, he still wants his nike, scott, so there are going to be names that seem to holdup even if they aren't necessarily a need. >> yeah, well i think what kenny said with walmart is interesting because tomorrow we'll see how they report so we'll see if the average consumer is pulling back because you would say walmart is somewhere we go to shop for value, something that you need, so at this point, we're trying to look to see when does the slow down that everyone's been talking about happen, because as of now, you still
have airlines booked up, you still have restaurants packed, so the wallet even though it's hurting a little bit from energy prices, people haven't really pulled back so i think that's why tomorrow you'll see a real focus on the retail. liz: glad you just brought up energy. kenny i'm looking at energy it's the leading sector right now out of all of them followed by healthcare consumer staples but we suddenly have crude, quietly, jumping above $113 a barrel, and we know that gasoline is at all times highs. tell me how you think that plays out. >> it's only going higher and i actually said it in my note. today i said it in my note last week. i thought if we pierced $113 a barrel, that we were going to challenge the $120 a barrel we saw a couple months ago and that's the way it's playing out and as painful as that is i absolutely think that's the way it's going because the europeans are now banning the russian oil supply, everyone is scrambling to figure out where they get this extra energy, opec came out and said we can't replace
what's lost so therefore, there's going to be upward pressure on energy, so i continue to like the space. i continue to invest in it, i am invested in it. i bought stock on pullbacks. i am not chasing it though. liz: okay, yeah, be careful about chasing. great to have you both, kenny, scott we gotta run so much going on here fox business alert. take a look at rivian shares, they are stalling out at this hour. we are getting word that production of the amazon prime van made by rivian maybe in jeopardy. so the stocks down about 5.6% but it is horrible over the past year, down 75% over the past 52 weeks. here's the deal. court filings show the ev start up has sued a seat supplier. the commercial vehicle group also on your screen, down just 1 %, accusing it of violating supply contracts regarding seats for the vans, amazon has ordered for prime delivery. so rivian is saying you know what? the parts dispute is going to affect slow down production of the van.
the news comes on the heels of word last week that ford sold another 7 million shares it held in rivian and so we do have amazon down about 1%, we don't have ford on the screen but let me just check it ford is down 2% from roadways to runways, spirit airlines flying hyatt this hour after jetblue launched a hostile , now it's hostile, all cash takeover bid of $30 a share spirits up 13%, now spirit had rejected jetblue's offer a couple of weeks ago on regulatory concerns and had instead said you know what? we're sticking to our sale to frontier. frontier is also moving higher by 7% because spirit says do you know what? we'll review jetblue's offer and we will inform our shareholders of our position within 10 business days, jetblue on the losing end today down 4.8%. the golden arches are leaving russia, after 30 years, mcdonald's says it's quitting russia due to an unpredictable operating environment related to russia's war in ukraine.
the fast food chain expects to record an accounting charge of between 1.2 and $1.4 billion following the sale of its 847 restaurants there to a local buyer and by the way that buyer cannot use mcdonald's menu, golden arches, or official name anymore. mcdonald's pretty much flat on the session. regulatory filings reveal former president trump will have to wait for six hours before repost ing his messages from social media platform truth social on other platforms. the special purpose acquisition company dwac, which will take truth social's parent trump media and technology group public filed a statement with regulators and said it expects to close the deal in the second half of 2022 so dwac moving higher by 8.3%. and even a major reversal by noted netflix bear and wedbush analyst michael pachter not doing much to lift up netflix
shares, upgrading his neutral rating on netflix to outperform citing the streaming companies decision to now spread out its content. he says that's going to limit subscriber churn which in turn may help netflix exceed second quarter guidance, but netflix only getting a pop of just under a quarter of a percent. last week stablecoin collapse may have shaken out more than just the speculators in the space. venture capital legend and bitcoin believer tim draper declaring there's no point in a crypto peg to the u.s. dollar. i caught up with tim today at the 2022 draper home security token summit here in new york city. up next, wait until you hear what he has to say about unstable stablecoins, his big bitcoin price prediction plus an early investor in crypto exchange coinbase, what did he make of the ceo declaring coinbase is at no risk of bankruptcy. we are 49 minutes away from the closing bell ringing dow is holding on to gains of 176
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it is resuming its slide at this hour after suffering a drop from 31,000 to well it depends on what you're looking at but around 26,000 in a single day last week. the largest crypto by market cap has now lost 22% this month alone. we do have it right now, down about three-quarters of a percent to 29, 735. the fall triggered by thursday's stunning collapse of stablecoins , terra and luna, as recently as a week ago, the two had a combined market cap of $45 billion. now, they are just north of worthless. terra and luna are linked to the dollar via a sort of complex algorithmic mechanism that clearly did not holdup amid the broader market volatility last week. stablecoins a top issue at the 2022 security token summit in new york city, where i sat down on stage with bitcoin bull tim draper. the famed silicon valley venture capitalist is best known for
early investments in tesla, skype and spacex among others and owns more than a billion in bitcoin. i began by asking him about the investors and the tokens that was swept away by last week 's storm. >> oh, i think you are going to see , this is, you're going to see the slide just the way you saw it in the dot com world where it was pulled out and a lot of these dot coms slowly disappeared, and it will be more of a concentrated group and, i mean, ultimately i think it's just going to be the ones that have really good engineering teams and have built really good trust with their following. liz: so do you think stablecoin survived this last episode? >> oh, yeah, i think they will because people want a digital currency that's tied to the dollar, for now, but why bother? why bother to have a stablecoin?
it's a bridge to bitcoin. why think we have to have stablecoins? why do you think that, why do we want something that's tied to a fiat currency, when what we really want is to move away from government currencies. we want to move away from these inflationary politically- controlled currenc ies that don't do the economy any good. liz: coinbase had the worst day ever on may 9, and first coinbase comes out and assures people that they're not going bankrupt. >> [laughter] i know. don't think of pink elephant. liz: well yeah and immediately they do. then tuesday -- >> but it's crazy because they have $7 billion in cash and they're not burning that fast. liz: okay but tuesday they come out and say in the event of a bankruptcy, customers parenthetically, unfortunately, be considered unsecured creditor s, meaning the billions
they have be wiped out in those wallets. you are a lead investor in coinbase. >> absolutely. liz: what did you make of that? >> and i keep all of my bitcoin and all of these things in coinbase so i'm very happy with coinbase. i think the regulators have, they've made him put that statement in there. he has spent a lot of time with regulators. i would like brian to spend more time with his customer, [laughter] regulators will spread this sort of thing and put those negative thoughts into your head and it doesn't help the company. what helps the company is innovation and trying new things , and nft program and all those other things that he's doing. i think the regulators have been so all over him that he is spending more of his time talking to them than running his company, and i'm very concerned. liz: is there anyway that you see coinbase suffering a
bankruptcy? >> oh, god, no. no, that's a ridiculous thought. i mean, even in a down quarter, i mean, they lost some couple hundred million dollars, which seems like a lot of money, but it was, they've got 7.1 billion in cash. they are fine, and when things get better, they will be back to just printing it. liz: there was contagion. bitcoin wavered and really started shaking, went down below 30,000, went to about 25,000 and change. where do you believe bitcoin ends the year? >> well i've predicted four years ago, as i did before with you, by the way, and i nailed it , 10,000 in three years, 250,000 by the end of this year or early next year, bitcoin is going to soar, and i think it's one of those things that we've
got and speculators were in there, and a lot of traders have made a lot of money on bitcoin recently over the last year or so, because they play it between two prices, but at some point it breaks out. it broke out on the downside recently, and eventually, it's going to break out on the upside , because the people who like bitcoin because they wear the tie and it means freedom and trust, those people are such believers that they are going to stay with it through thick and thin, in fact, when bitcoin drops like that, they look at it as an opportunity to acquire more. bitcoin is kind of the micro sauce of the cryptocurrency world. microsoft took all those applications that were created on their platform and then they started making them themselves. well that same thing is happening now in the bitcoin community, so all the nft's and
all the smart contracts are all going to be able to be done on bitcoin, and so then, why do you need the other currencies? and i think there's also a point where i can buy my food, my clothing and my shelter in bitcoin, where i no longer need fiat currencies. i'm no longer at the mercy of my government. liz: 250,000 by the end of the year. we shall see. oh, by the way tim draper partner in dfj, the venture capital firm, that is providing some of the money to fund elon's twitter acquisition, as twitter shares erase all gains, the stock had made since elon disclosed his stake. i asked draper to make a prediction about whether elon's deal goes through or falls through. that is straight ahead, as the world's richest man finds himself in legal hot water for one tweet about twitter. we've got breaking news and the
latest drama in musk's $44 billion takeover, that is straight ahead. closing bell 38 minutes away, we've got the dow jones industrial still holding on to about 109 points of gain, the nasdaq can't quite make it here and the s&p has just turned negative again, down about 5 points, don't go away. (vo) while you may not be running an architectural firm, tending hives of honeybees, and mentoring a teenager — your life is just as unique. your raymond james financial advisor gets to know you, your passions, and the way you help others. so you can live your life. that's life well planned.
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liz: do you believe elon's acquisition of twitter will go through, and at what price? >> oh, i think it'll go at a lower price now that he realizes that a lot of these twitter people are really bots, but i love that he's coming in there, because i think he believes as jack dorsey did, in free speech, and twitter has been like the arbitor of whose allowed to say what, and what are they thinking?
liz: venture capitalist tim draper predicting this morning what elon musk just apparently said moments ago at the all-in tech conference in miami. let's take a look at twitter shares as we give you the headline right now. still down about 7.25%, bloomberg reporting elon musk just said that "a viable deal for the social media site at a lower price is not out of the question." musk and twitter ceo parag agraw al going back and forth this afternoon on how many of the platform users are bots after elon musk said twitter's legal team accused him of violating a non-disclosure agreement after he revealed the sample size twitter uses to hunt for fake accounts. let's get to kelly o'grady joining us live from los angeles we've got so much breaking news here, it doesn't appear to be helping the stock that both tim draper and elon say he might get a discounted price for this company. reporter: yeah, definitely doing nothing for the stock but liz,
we have quite a tweet war brewing between elon musk and twitter ceo. the deal of course is on hold while musk investigates whether spam bots represent only 5% of the platform's users. he just speculated it's at least 20% of monetized users but twitter ceo parag agrawal is defending the platforms numbers claiming the company shared the bot estimation with musk a week ago and also dismissing elon musk's push to perform his own audit. "unfortunately we don't believe the specific estimation can be performed externally given the critical need to use both public and private information. externally it's not possible to know which accounts are counted on any given day. now a researcher just refuted the claim on twitter and musk offered a response to the ceo saying, "so how do advertisers know what they are getting for their money? this is fundamental to the financial health of twitter." now, liz, what's curious is the future with the company is unclear. he's acknowledged his possible lame duck status and is due a $42 million payout if fired
after musk takes over, regardless the exchange highlights a fundamental criticism of the billionaires, the platform lacks transparencies. you mentioned the possible price negotiation. twitter's trading well under $40 billion or $40 right now. that's $15 billion below the deal value. but as this exchange grows more adversary, some are questioning if musk is looking to walk and if so he would face a $1 billion breakup fee and billions in lawsuits but if he were to surface in a public way, the company misrepresented info, that would give him juice, liz. liz: okay, again, we're keeping an eye on twitter which by the way, shares are now at $ 37.70. remember, his bid, everybody, is 54.20 a share. you've got tim draper who is part of the team raising money to help elon musk get this twitter acquisition through, and yeah it's probably got to come down from 54.20 that's for sure. thank you very much, kelly
o'grady. fintech stocks slammed as investors pullback, but a firm believes if the fintechs firewall because its buy now pay later model sets it apart from all the others, the ceo explains why he believes the firm can survive the federal reserve's rate tightening cycle. that's next. closing bell 29 minutes away. now the s&p is lower by 6 points , nasdaq down 110. the dow is the one area of green here because the russel is also lower dow is up 87 points.
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over-month and that would actually match the march increase but it's half the increase reported for february. the data point comes as big names from walmart to target, lowe's, and a whole bunch of others release quarterly results this week giving investors a gauge or a window into american consumer sentiment. many of the companies reporting work with a firm. shares of the buy now pay later lender actually got a boost late last week after the company reported a narrower than expected quarterly loss, but quite frankly the stock has seen 75% chopped off this year to- date so right now, a firm down about 3% it was actually higher earlier let's bring in match levchin, the firm ceo and co-founder. let's get to the consumer ahead of the big numbers tomorrow. how are your customers shifting or slowing their spending as we continue to see persistents inflation for decade highs? >> so i think inflation is definitely on people's minds. i think it's now a very very
aware topic. folks are coming to us, frankly, to help them regain some of the spending power they are los ing because of this high inflation. there's also a very clear rotation of segments, if you will, connected fitness with older age this time last year, today it's definitely not the faster-growing segment. on the other hand, there is 120% year-on-year growth in travel which is both understandable and i think heartwarming people are finally getting out of the lock downs and traveling. liz: yeah, i remember in the beginning, with a firm, i believe that one-third of your revenue came from peloton. that was one of your very first partnerships, and obviously, we know the situation with peloton is shifting as well. we are going to get retail sales tomorrow. i have no doubt consumers are spending. your full year gross merchandise value of what, 15.14 billion shows that, but consumers are notoriously behind the 8 ball when it comes to reading the
writing on the wall and if you read the writing on the wall , including, you know, lloyd blankfein, formerly as ceo of goldman sachs, we're heading for what could be a recession. how would you at a firm prepare for something like that? >> you know, i think it's definitely on the minds of every ceo out there, especially in the payments business. we track all of our consumer behavioral data, especially by that i mean repayment data and to date, there's really not been a service in the force if you will, but our business design, if you will, is we don't lend money if we do not believe the bern par borrowing can pay us back. that's the cornerstone of not charging late fees or doing deferred interest all the stuff the industry is infamous for , it's all about hedging your bets vis-a-vis well maybe this consumer is not okay but we'll make money on them anyway, we only transact with consumers we believe through our under writing models will be fine
paying us back and as recession causes people to lose their jobs , et cetera, that is when i start worrying. to-date, america's fully employ ed. i think consumers are spending money they are earning and prices are going up and the fed is trying to do something about it but fundamentally a vast majority of the folks borrowing money from a firm and beyond are very well-employed and capable of paying their bills. liz: well that's good to hear but this is where i worry. we were in an atmosphere of free money, you know, easy to borrow, very low interest rates, near zero. somebody pays the merchant, that be you in exchange for the buy now pay later. the problem is when the cost of capital goes up as rates rise, you know, you're shouldering that. i know you have different ways where you fund, but have you modeled for a meaningful jump in interest rates and how you will be able to service the loans that you owe or the debt that you owe. >> absolutely, and that's
certainly front and center to a lot of our planning. we are very very very prepared for all sorts of neutralities. we obviously track the curve. we are very careful about both what the fed might or might not do, but without diving into extreme, like how do you hedge interest rate change we are weep -prepared and manage the rates that we pay as we borrow so that we can lend. liz: i know in your quarterly report you announced you're expanding with shop a friday. we just spoke with the president last week, we love their partnership with you but where else does this opportunity go and can you meaningfully assign a number to your bottom line that would come from the shopify deal? >> i think it's probably a bad idea for me to disclose numbers that we don't talk about elsewhere, but we love our partnership with shopify, that's the right verb to use. they have been an exceptionally great partner and we like to believe we paid them back
similarly. the particular expansion is really cool in a sense that we launched a year ago and we really only delivered one product to them which is this really short-term six weeks really really simple product that works great for beauty, for fashion, less expensive product. there's lots of other stuff people sell on shopify anything from really exotic plants to all sorts of hardware people manufacture in their spare time. those things cost a lot more money and the six week retain ment cycle just isn't long enough so we're finally bringing to shopify sellers all sorts of terms that they can offer to their shoppers so we expect a meaningful contribution to the business from that overtime. liz: max, i know that its been a very rough time for many companies. obviously, even the apples of the world have sold way off. we're seeing a lot of discounted shares elsewhere, but when you guys went public, i believe your market cap was around $25 billion. it's at 5 billion right now. how do you engage with investors
who are lifting their shoulders and saying what do i do, max? what is the answer and when do you foresee something like this solidifying and turning the stock around? >> you know, as one of the largest perhaps the largest individual shareholder of this company, i amex teamly aligned with my both retail institutional investors to see the stock go back out. i think that's probably the best conversation opener i have to come up with. the only way i know how to do this that is independent of market cycles and sort of disruptions that we seen plenty of in the last few months is continuously delivering great results. the thing that i can tell my shareholders is look, overtime it is a weighing machine not a voting one. we will continue delivering on all the promises we make and overtime, this will be rewarding to us and to you. liz: it's the one problem with going public, right? you've got to answer to the shareholders on a quarterly basis and things take a long
time. >> i've got broad shoulders. liz: i get it max good to see you thank you very much. >> thank you for having me. liz: the collapse of prominent stablecoin uft and its sister token luna have left the crypto world reeling and retail investors devastated by heavy losses. what is next for the embattled crypto verse? charlie breaks it next with the closing bell ringing in 18 minutes. the dow has its gains here we're now up just 14 points, stay with us. is it possible the only thought that comes to mind is... ♪ finally? this is financial security. and lincoln financial solutions will help you get there. as you plan, protect and retire. ♪
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and the lowered ability to fight them may occur. tell your doctor about an infection or symptoms... or if you've had a vaccine or plan to. tell your doctor if your crohn's disease symptoms... develop or worsen. serious allergic reactions may occur. watch me. liz: yeah, we are keeping our eye on the dow it just got within a whisker of going negative right now it's up about 8 points. the crypto sell-off has left investors scrambling and in some cases, extremely dire straights.
charlie gasparino is on the story. charlie: liz, someone who covered the financial crisis as you did, you know, there was a lot of people lost money, and people took their own lives amid that whole crash, and it's unfortunate but it does happen and what we're hearing now at least these are unconfirmed reports. i've not been able to confirm them and i've reached out to the suicide prevention hot line and spoke to counselors on this but there's a real worry of a rash of suicides amid the crypto crash that's going on, because people in this market put so much of their money into it, they've lost so much, some people all of it, and if you look at social media and the message boards, and there's a real issue here. now, again, i've called the suicide prevention hotline, spoke with one gentleman. he said, you know, they get a ton of calls from all sorts of people. he didn't want to get into break it down in terms of are the
people calling now involved in crypto and losing money, but he did say that the characteristics of somebody that puts all their money into one asset -- liz: big mistake no matter what it is. charlie: those are the people that have the characteristics they might do something awful and take their own lives. now, i should point out, we should put the suicide prevention hotline on the screen , the 1-800 number. if you know someone and they're talking about this , step in and get them to talk to somebody, because i will tell you, someone covered the financial crisis and saw people do this. i also saw people who lost all their money and they had families who made it back, who survived and got better, that they learned a lesson from los ing money, in terms of how to take risk and they lost maybe their house, they lost their fortune, but i know plenty of people, including people at lehman brothers who lost almost everything and came back, and so you could, you will come back
from this. this will be a lesson and it doesn't, and taking your own life is just not the answer here , because it's an extreme extreme reaction to losing money particularly if you have your health and everything else, so i'm just saying this is a real issue. liz: well stablecoins as you know collapsed. they are near worthless right now. i just talked to tim drape drap er about those and he said the shakeout is very real. he's not a fan of stablecoins which are supposed to be pegged to the u.s. dollar. i talked to him today and he said why bother with stablecoins charlie: he's a little bit before the fact now. all i can say is or after the fact i should say. he should have been making that call a lot earlier, because people, a lot of people saw this coming. i will say this. there's two stories here. this is going to be a pretty tough correction in crypto, as the fed raises rates. i know tim draper told you, he sees bitcoin at 200,000, that ain't happening.
if -- liz: by year-end he said. charlie: that ain't happening unless bitcoin and crypto delineates from the market and it's not. you know, everybody thought it was an inflation hedge and it's not. it's literally tracking the market so if it doesn't of course an inflation hedge, because inflation is raging and the fed is raising rates i just don't think, i think he's crazy saying that. liz: do you think the ethererum co-founder-charlie: let me make this point because this is a serious story in this regard. crypto is going to go through a correction. meme stocks are going to go through a correction. all these high fliers that everybody thought would never go down are going to a correction that people were lured into these stocks based on false hopes that stocks never go down. i will say this. some people are going to lose everything. the initial reaction is to spare reach out to people. talk to people that have been there before because i've seen this before. you, if you learn from this , you'll come back, you don't have to take your life.
this is a huge big story and i'm just telling you, liz, i saw this happen in 2008-2009. it's probably going to happen here. it's not fun. it's a story that we have to cover unfortunately, but there is an answer. the answer is reach out for help you can get help and it's not the end of the world. liz: yeah, the confidence needs to be reestablished. the ethererum co-founder is suggesting if stablecoin particularly terra/luna, if they want to reestablish strength or at least belief in it or faith , they should make some of the smaller holders whole, using , you know, that is just another bad idea as we continue to watch the story and thank you , charlie, very much. we appreciate it. well nothing runs like a deere and today's countdown closer thinks john deere stock
ready to plow major profits into your portfolio and by the way it's one of the few stocks out there that has been able to do one thing in particular. we're going to tell you what that is, when we come back. don't go away. dow jones industrials holding on to 51 points of gains right now. . . i have moderate to severe ulcerative colitis. so i'm taking zeposia, a once-daily pill. because i won't let uc stop me from being me. zeposia can help people with uc achieve
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♪. liz: well six minutes to go and can the bulls hold on by their little fingernails here? we do have the dow jones industrials up 28 points, s&p down 17, the nasdaq struggled for most of the session down 150 points. by the way the dow, nowhere 317 point intraday gain. it is on pace for second up day in a row. nasdaq is on the pace to snap a two-day winning streak. big green tractor maker deere and company on track to release second quarter numbers this friday and our countdown
closer says it is monday. get in on this. 18.2 billion in assets under management. he is plea checking deere to grow big profits. we have cio david spika. i get it. we teased into this, david, deere has been able to do something interesting, remain green year-to-date, up 9% year-to-date where as so many others are down but tell me what it is within deere that you think is an opportunity for the longer term portfolio? >> one of the big mac crow issues now, liz, food pricing, access to agricultural commodities. agricultural commodity producers need equipment. this company will grow 15% plus. yes it does report on friday. we think it is very well-positioned to generate clear earnings visibility in this environment. liz: you like medtronic,
canadian pacific railway. those are two disparate names. considering medtronic, medical device-maker give us the outline for this company, health care will be the part of the need versus want decision making that consumers will face in this inflationary environment. >> we're in high inflationary environment. probably in stagflation now. growth is going to slow. you want to own strong companies with strong earnings visibility. medtronic is that. they are plus yielding 2 1/2% dividend. this company is benefiting from much greater ability to get elective procedures that covid cases have declined. medical devices are in good position to excel in this environment. liz: tough to excel in this environment. i will call an audible. >> is somebody has to. liz: boeing is down 2%.
it has all kinds of issues. as you look at a name like that. it is one of two in class. it only competes with air us about. how do you pick a spot at this point where there are some question marks? at the moment we saw the dow jones industrials turn negative. back up now 12 points. it is still a questionable environment, is it not? >> it is. one thing you have to be careful about buying companies cyclical in nature that have to have strong economic growth to outperform like boeing. we like quality companies with strong visibility in health care sector, the industrial sector where you can really see the growth rate for those companies and these are companies can form well even as growth slows and inflation takes off. liz: i know and inflation has taken off. >> it has. liz: about 30,000 feet. david, great to see you, thank you so much. david spika. >> thanks, liz. liz: folks we need to look at
the markets. the dow does not appear like it can hold on to the green. it is just straddling the flat line. up down, up downs toggling. as we turn negative in the final moments for the session. [closing bell rings] remember we get retail sales tomorrow morning for the month of may that may color the markets and push them one direction or another. we'll be all over it for the final hour of trade that will do it for us. "kudlow" is next. ♪. larry: hello, everyone, welcome to "kudlow." i'm larry kudlow. so it may seem farfetched but it occurs to me that now would be a good time to talk about a return to a balanced budget in washington, d.c. that's right, a balanced budget. amidst uncontrolled federal spending and deficit finance and borrowing and money printing and let's not forget we have a president who actually believes more spending would actually curb inflation i think i'm