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tv   The Claman Countdown  FOX Business  August 3, 2022 3:00pm-4:00pm EDT

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you've got to do your homework and go over in there and overso bounces overso and some of the names, this might be the beginning of something amazing and a lot may live up to the original hype. right, liz claman. elizabeth: right, and then companies collapse and have you see sofi's chart today? >> it's absolutely amazing. elizabeth: it's up 28.25% and we've got ceo coming up on what appears to be an absolutely pivotal quarter for the company. start with a fox market alert for the second day straight. fed rate hawks are dive bombing the doves and look at markets as we kick off the final hour of trade. the bulls sprouted wings with tech flying the highest and nasdaq is by far the percentage leader up 2.6% followed by s&p up 1.6% and we're looking at a jump here for the nasdaq of 321
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points. we're going to keep the bug right here on the lower part, swap it out with the dow because this is as we said, the real story for this rally. dow is up 448 points for a gain of one and a third percent. this as the hawks, the ones pushing for more interest rate increases to tamp down inflation, they are outsquawking again today. just a day after saying the rate setting committee is nowhere done raising rates and san francisco president mary daily doubled down just a few hours ago during a chat insisting the fed is not finished fighting high inflation and they're duty bound and he wants to see meaningful improvement and not just a few pennys, dimes, and nickels better. she didn't sound any alarms about a collapsing economy and indicating a soft landing is out overrich and this latest data point on your screen underscores that. the july ism nonmanufacturing index. this showed a surprise spike in
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the services industry and solid orders ending three straight monthly declines. what's the difference between yesterday and today if the fed hawk pile on hasn't much changed? china worries; right. make no mistake, china is lurking and slapping sanctions on taiwan but now that speaker nancy pelosi seen here departing the independently ruled nation without any direct sign of missile ataxoor anything yet, the markets have decided to keep calm and carry on. that doesn't mean china is having no effect on individual names but through sort of the prism of covid lockdowns. starbuck china sales plummeted 44% on the intense covid restrictions and the stock is holding up 4.5% and the international and u.s. business fully caffeinated and people buying those $7 frappuccino things. investors not as forgiving of the china -- on young china is
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kfc's largest market and the lockdown tamp down business and kentucky fried u.s. sales showed weakness as well and taco bell could not save colonel sanders and shares down 1.7%. who knows what the headlines will bring from hour to hour even within this hour but one thing for sure, our floor show ready to pounce on fearless trades for august. joining me with 185 billion in assets under management is comerica wealth management john litch. we said day-to-day or hour to hour we get conflicting data or headlines in some case muddy the investing landscape. >> thank you, liz. it is clear as mud when you think about all the macro signals coming at investors and mary daily no ambiguity in our comments and investors need to appreciate that. i don't believe the market
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really recognizes yet what 9% inflation means and even with some improvement going from 9 to 7 is one hurdle and going from 7 to 5 and 5 to 3. i would characterize today's market in the most recent four, five weeks is a classic bear market rally and probably one percent away from resistance. we peaked at 4800 in january and low of mids june in the 3600 area and the market is due to resistance around 4600 and i would encourage investors in the month of august, which again volatility picks up in the late summer months, think about energy, think about industrials, and then maybe barbell it with some safety stocks within the healthcare or maybe even the staples area. elizabeth: i'm glad you brought up energy. i know you have felt that energy was oversold and sort of ripe because it could be in an up trend. we just got inventory numbers that showed a much bigger than expected build and we're looking
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at crude oil down 3.8%. $90.81 and i know thanks to andy brenner that the actual sort of -- i think it was the july -- or the may. we are looking at getting very close to the march price so not too expensive certainly and moving in the right direction if you're a consumer. why do you still like that, mr. lynch? >> clearly i think the opec addition of 100,000 barrels a day and that clearly didn't hawk 3% off wti today; right. i just think we're in a situation, you know, you got spot price so also look at forward contracts out are significantly higher and they're rising. i think that is more descriptive as to what the spot price is telling us .t elizabeth: john, i want you to join the conversation. neil is a fed dub and nonvoting member making headlines right
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now and one thing he says, this is so captain obvious, he's saying the fed moved too slowly in 2021 tackling high inflation. thanks for that. i mean, i love neil but we were saying this a year ago january, watch out for inflation. it is not transitory or, you know, temporary certainly, but knowing all that we know and what john lynch just said, it's got to be appreciate that had the fed is very clear, we're raising rates. what are the best trades where you feel the august opportunities are still there? >> you know, it's really hard to have high conviction here with the fed cpi, august 10 will be out and we'll know a lot more. but, yes, back to captain obvious, you know, the fed is always like the worst dinner party guest, they show up late, stay too long and ruin everything. but that's their job, you know, their josh is to come and take away the punch bowl when the party is getting good. the fed is mid cycle into this
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but the market, who thought we'd see a 10% rally off the lows, and i'm on the same page as john, beware of 4200. that's a key level and as a technician, 4200 is key and the backbone of any economy is industrials, materials and energy. if you're going to build it, how are you going to ship it? the three have to go together and industrials have to lead the way. elizabeth: with the gain we saw a second ago, 482 points for the dow. for a second we exited correction territory so that's just a breaking data point cause we love our break data points here on fox business, most important thing to keep our viewers up to date. john, tell me what you don't like here. what worries you and which sectors are you avoiding? >> so, this is a tough market, you know, i have -- i'm fearful and hopeful all at the same time. there's sectors like china as a market as well as even bio-tech. these are sectors that haven't
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done anything in years, and they're retouching bottoms. china is touching a bottom it hasn't seen since 2015. bio-tech hitting a bottom not seen since 201. these are the lows -- 2018. these are the lows that have to hold and as the market is hitting the break points, bio-tech is one of the things leading the way. healthcare, part of bio-tech leading the way. elizabeth: john lynch, anything you say i'm not interested in going anywhere near that right now? >> you know, there's a safety play right now for utilities, and i just see -- i see a higher multiple than i'm comfortable with given the rate environment and a higher expense structure and i caution jumping into a reflex-type safety trade and be careful of the utility space right now. elizabeth: excellent point when it comes to high multiples. that was a problem about six months ago with so many of the high fliers of people piling in just at the wrong time our two
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johns, john and john, thank you so much for joining us. >> thank you, liz. elizabeth: stock story of the day here, joining the club is paying real dividends for one silicon valley disrupter. sofi ceo is joining us and why becoming a bank has his stock skyrocketing at this hour. how soon before his company kicks into high gear before turning a profit. closing bell ringing in 51 minutes and the dow up 462 just off session highs. look at nasdaq up 327, a gain of 2.6%. sofi ceo next and later brian cheski of airbnb.
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elizabeth: yeah, look at the dow. the dow is up 442. the nasdaq better by 315 and the move in sofi stock looking so fine in the final hour of trade. shares of the sin tack is surging 28% and trading around the april highs after an earnings report that beat expectations and showed adjusted net revenue grew 50% year over year to $356 million. sofi newly confirmed bank charter gave a huge boost to the lending business soaring 91% and that neutralized student loan and home loan originations that fell 50% year over year. now in a way the real fun begins. let's bring in sofi ceo anthony noto. anthony, welcome back to the show. listen, congratulations and i do have to ask, are we getting over our skis by asking when you might reach the holy grail of profitability? >> hi, liz, and thanks for
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having me. you know, we think about profitability coming in different stages. we're committed to dropping more and more profitability to the bottom line. we think about reinvesting 70% of incremental revenue and dropping 30% to the bottom line. we're on track to do over $100 million for the full year up from $30 million last year. but more important than the free cash flow, free catch flow helping grow the company and we'll use over the coming quarters. there'll be some volatility in cap backs and other metrics in time but achieving positive for eight consecutive quarters and next step is positive free cash flow. elizabeth: there's steps and yes, liz, you're getting ahead of your skis. that said, i'm interested in focusing on the hunt you have to land more customers, and you had a very nice customer build. you've got that big customer
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number. how many, can you giver us the very latest number and what's attracting them now? >> sure. we had 4.3 million members at the end of q2, up 69% year over year, pretty consist growth and second higher quarter of net ads and we pressure products up 79% and at 6.6 million there adding over 700,000. one of the things that's very different about sofi is that when we go to market, we have a one stop shop for services products and that's really differentiated offering for consumers and all in one digital platform and don't have to go to a bank or speak to anyone and easily accessible across borrowing, saving, spending and investing and that turns out in different markets is some business do well and some less well. a year ago home loans doing really well and down meaningful and personal loans are picking up. since we got our bank license, we've offered checking and
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saving with 1.8% saving on checking and that's unmatched in the marketplace and helping drive in more deposits which funds more loans and drives more spending when it's the main checking account for that member and drives revenue into the checking account. we have the ability for people to invest and have excess cash in their checking and can give them that alternative. we're seeing the strength in checking, savings, and invest in personal loans and then the last thing which most people don't realize is we are powering a technology platform that helps other sin techs and our platform with the technology segment accelerated 39% year over year at galileo. galileo. elizabeth: and fdic insured and that's an attraction for a lot of people. are you even -- yes, you're a fin tech but a bank as well. who do you look at as your rivals? is it the ally financials, singnies, the jp morgans or more of the other sort of up and coming companies?
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>> we are first and foremost a technology company. without technology, we offer nothing to the consumer and not manufacturing anything, we do not have branches. our platform is built on technology and without that, we can't reach our members. then on top of that, our business model is a financial service company. the name fintac is appropriate and monetize through traditional financial services methods. i would say there's not one direct personal that i'd compare us to. it's a combination for the companies that you mentioned. the market share we're taking is largely from big banks and large institutions, and we're focused on a younger demographic that's upscale. elizabeth: you know, the younger semi-graphic has student loans, wants student loans, payments. you saw a trench affair with your student loan business, which would make sense because you peaked right before the pandemic and right before the point where student loans, as
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you know, people just stopped asking for them and then president biden we're now heading into a two year moratorium on payments for student loans. he is in just days expected to announce whether he's going to forgive a bunch of loans. where do you see that part of your business going in the future? >> just to make sure the viewers are educated on this, we offer two types of student loans. one for someone going off to college, which is a new business and our largest and business prior to the pandemic was refinancing existing student loans and people take out federal student loans at a set interest rate for everyone and then when they graduate and have income and a higher credit score, we can save them money by giving them lower interest by refinancing through us. since march 2020, the government said if you have federal student loans, you don't have to make payments and that's the been the case for the last 2.5 years. if you're not making payments on high interest rate student loans, no reason to refinance
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into sofi and march in 2020, that business had just finished a quarter in which it had $2 billion in origination. this quarter was only $400 million and it's remarkable that we're hitting record revenue again this quarter and have for the last three despite that business being down to only 25% of what it used to be. here's the good news, that's not going to last forever. once the president makes a decisive announcement about what's going to happen to the student loan market, it'll likely bring demand back for that product. we're fortunate to diversify to the technology platform to build out the aws of it and other products to hit record revenue and that'll come back and be a tail wind as people start to refinance again. elizabeth: anthony, i've got to bring in the fed here. neil kashkari of the minneapolis fed is making comments right now that are hitting the tape that work into the banking world. number one, he's encouraging the new leaderships and vice
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chairman area, barr, to be looking at more stringent bank stress tests. there's that. and then on top of it, he is saying it will likely take several years to get inflation back to 2%. we're just slightly off the session highs at the moment, but the 10 year yield has turned around in a tick or two and the markets are reacting to what he's saying here. weigh in on it. there's so many really to unpack when it comes to inflation, and i know you have bigger loan originations for personal loans. do you -- can you deduce if people are needing more loans to pay for high inflation? >> yeah, what i'd say is our members need our help now more than ever. high interest rates, declining economy, the fact that inflation is so high is causing people to rethink everything about their financial lives. the most important thing for us in this environment is to make sure that we stick to our tried and true credit statistics and modeling for what we underwrite
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and how we price it and we're staying very discipline in that regard. our unsecured personal loans have performed quite well. the life loan losses that we target governs how much we underwrite, and that's the barometer for us. in this market, we're seeing people refinance out of short term debt because they don't have the money to pay it all off right now into fixed rate longer term debt, and that's benefiting their personal loans. in addition to that, we're seeing great demand on the checking and saving account sides because we're giving such a high interest rate at 1.8% and that's really unmatched on a checking account. elizabeth: you guys are giving the big guy as run for their money and we're watching it very closely as we have since you guys became a publicly traded entity. good to see you, anthony. please come back. >> thank you, liz. elizabeth: sofi shares up 28.5% right now. are mortgage brokers the new may maytag repairmen? not much work out there. high prices and climbing
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mortgage rates, we're heading to the garden state to hear what realtors are saying as they plant those for sale signs on the front lawns. closing bell, 38 minutes away. dow is still up 464 points, high of the session is 471. s&p gaining about 70 points and nasdaq up 325. "claman countdown" in full swing right now, stay with us.
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elizabeth: folks.
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rally is still in play but we have a fox business alert. the market shivered just a tiny bit there for a moment after minneapolis fed president neil kashkari speaking at a columbia law conference said it'll probably take several years to get inflation back to 2% and follow that had by saying, it's "very unlikely as a scenario that the fed would cut rates next year". translation, it'll take so long to get inflation back down to a decent level so don't get all excited that we might cut rates. might pause but not cut them. shares of moderna and pop stocks getting a booster shot. the drug maker popping 17% after reporting second quarter earnings that beat estimates and maintaining full year vaccine sales forecast. cancel vaccine orders from low income nations were offset by a new $1.74 billion deal with the u.s. government. moderna also authorizing a $3 billion share repurchase
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program. papal paypal announcing a share program and popping 8.8% and reported stronger than expected second quarter results and increased forecast and the $15 billion share buy back program and all that news is interesting to investors but so is this, activist investor paul singer elliot management confirming it has taken a $2 billion investment in the online payments company after reports surfaced last week about the fact that he might invest. elliot says paypal has an industry leading footprint and comes after elliot confirmed it is pinterest's top investor and happened yesterday and singer is getting paypal down for a list down 67% over the past year. food storage maker reported stronger than expected earnings with the stock jumping 28%.
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tup said they were able to offset lockdowns in china and lower consumer sentiment in europe. and investors are swiping left on match group shares today after the dating site reported a second quarter miss on the revenue. it shared weaker than expected guidance as post-pandemic dating boom ebs. shares down 17.5% as the company also announced the exit of its tinder ceo, the sixth chief of tinder to leave the dating app since its founding back in 2012. and then there's this, match is killing off its meta verse dating plan. and the crypto coins business as well. put a halt to that. you either date in person or not. come on. dating in the meta verse, whoo. the seller's market seems to be selling as as high prices and mortgage rates scare abay would be buyers from open houses. lending tree, rocket, are popping up just a bit right now
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but the 30 year fixed rate is still elevated after the federal reserve increased benchmark interest rate by 75 basis points last week. it's now at 5.43. certainly down from last week's 5.74% but that's the biggest weekly decline since 2020. 30 year rates were as low as 3.25% at the beginning of the year. yeah, 5.43%, you're still certainly considerably higher. get to madison alworth in colonia, new jersey, getting the scoop on what's going on for the housing market and potential buyers. >> reporter: yeah, liz, the market is cooling and things are slowing down. we were at a fever pitch during the peak of the pandemic and we've seen a slow down from that and i spoke to the realtor representing this house and says gone are the days of overpriced housing. you need to price your listing at its real value if you want your property to sell.
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take a listen. >> housing are still moving really swiftly, but they need to have a few things now that they didn't used to have. you could sell a card board box under a bridge last year and have a mark up of an incredible amount of money. now the condition of the house matters, the pricing of the house matters, and how you market the house. >> reporter: so, for the houses that haven't been priced correctly, we are now seeing record setting adjustments and red fin reporting 7.5% of home sellers cut their asking price weekly over the past month. that's a record high as far back as the data goes since 2015. even with the price reductions, mortgage rates are still around 3 points higher than a year ago so that is having an impact on how many sales we're seeing contract signings, which is deals that have not officially closed. they are down, let's see, they are down 3 points -- excuse me. they fell by 9% from may to
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june. 9% and that is about 20% below last year. you know, the market though like i said at the top, it still has a way to government prices are still up compared to this time last year. we could see that continue if mortgage rates continue to rise, we could see even fewer buyers head to the market, which would drive the price lower and realtors are expecting to see that. elizabeth: madison, thank you very much. i mean, we are hearing all kinds of anecdotal evidence that mortgage brokers are saying, oh my god, i'm so bored and seeing a market slow down. thank you very much. keep it right here for fbn prime's real estate block tonight. mansion global with casey mcdonald airs at 8:00 p.m. eastern and followed by american dream home with cheryl at 9:00 p.m.. that's only on fox business. airbnb breezing down the holiday
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road as the online lodging giant posts big numbers amid the post-pandemic travel boom. airbnb ceo brian chesky up next to tell us why investors might be snubbing the stock despite record bookings and why they might be on the wrong path. and talk about the road less traveled, ollie pop, what was the road like to get to make this product? creator ben goodwin turned his childhood into a multimillion dollar business and has a deal with the universe minons to make its own behavior, called banana cream, and i'm asking ben to reissue it because it sold out and i want to try it. the others are really good. it has 3 grams of sugar and he's called it the trojan horse of sodas because it's actually healthy. how did he create this with no experience in the cut throat world of beverages? you've got to hear his success story. it just dropped in my latest everyone talks to liz podcast
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episode. download wherever you get your podcasts. we're the largest audio library of great american success stories in existence. you know, it's a rumor i'm going with it, what do you expect me to do? it's a great podcast, hundreds of thousands of people are listening. closing bell ringing in 24 minutes and the dow is up 466. nice moves here. stay with us.
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elizabeth: well, earlier cause i just looked, home sharing giant airbnb was down more than 2% and now it's down just 1%. what's interesting here is we're even seeing any red because despite a second quarter report revealing the company had its most profitable second quarter ever, investors seem to not be thrilled. airbnb which, listen, they basely invented the home
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vacation rental, swung on profit and posted revenue in line with wall street expectation at $2.1 billion and year over year growth of 58%. the mass airline cancellations this summer weighed on airbnb experiences booked and shaves shy of investor expectation of 106.4 million but still, that number, airbnb's largest quarterly number ever. let's get to airbnb cofounder and ceo brian chesky. how is the current quarter looking because it looks like airlines are showily but surely getting their act together and not the flight cancellations like we saw around father's day which translated to airbnb's lower quarter : >> yeah, we saw an acceleration from growth from june to july and so we're feeling really, really good about the july month
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and going into august and, liz, just to put things in perspective, two years ago, we weren't even positive. during the depths of pandemic we were losing hundreds of millions a quarter and then last year, we've generated nearly $3 billion in cash flow and the growth was actually 64% if you exclude fs. so we feel really great about the quarter, and it's important to look at the improvement we're making every single quarter. elizabeth: well, that's my whole point, we are not that tick by tick, oh, look at it. all though we're really onto breaking news and the stock movement as it happens because we think that's extraordinarily important, but we also look at in the aggregate and bigger picture and to me, you guys are going in the exact right trajectory. that said, what can you improve and what have you changed because you are the king of trying to fig your out different buttons and different things on your website to maybe enhance or
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change a negative move from the last time. is there something -- if somebody finds their flight was canceled, are you implementing anything that would then help them switch an airbnb to another location of sorts? >> yeah, yeah. so we've done a few things i want to call out. first of all, we're constantly inviting. we really created this category and we'll keep re-inventing within this category of travel and new ones as well. one of the things we launched a few months ago is air cover. it's what it sounds like. we give you air cover, it's top to bottom protection for protecting a guest against the unlikely event a host would cancel the reservation or listing is not as it is described. if that happens, we have a team 24/7 ready to find help. since we launched this product, we've had a 10% increase are rebookings if people are dissatisfied with their airbnbs and offering travel insurance on airbnb. it allows if you can't travel, you can buy travel insurance and
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insure against unlikely events as well. we launched the airbnb category. for decades the way people searched for travel and typing a location into a search box. we think there's another way to search for travel, which is by category. categorize homes by what makes them unique and search for vineyards and homes on a golf course and castles. we think this is a really great way to help people find homes they would have never known to search for. we think some of these things are really going to make a dig difference for us. elizabeth: talk about europe a little bit. you guys had foreign exchange conversion, head winds, everybody's had that, but there are americans here who love this stronger dollar and they say, i want to go to europe, i want to go to paris. i want to buy the fancy purse. not me. are you seeing more state side going to europe with your bookings there? >> yeah, i mean, one of the things we're seeing is a general rebound across quarter travel and urban travel. just to zoom out for a second,
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our bread and butter before the pandemic was people crossing boarders and going to cities. when the pandemic occurred, boreds got shut down and not as many going to cities but then a boom in nonurban. people getting in cars and staying in airbnbs a couple hundred miles away. we've now seen people getting comfortable crossing boarders and cross continental travel and people from europe come together united states and people from the united states going to europe and it's been pretty strong this quarter. elizabeth: brian, as you're speaking your stock has come up off the lows and you're at session highs but still down about three quarters of a percent. the markets are looking strong and dow and nasdaq at session high and dow up 505 points. what are you seeing in all the areas of business we're in a recession, not in a recession. there's a big discussion, are we or are we not seeing the kind of contraction that people would
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categorize as a true recession. >> we're not seeing contraction. again, we're seeing a record q26789 -- q2. i mean, our revenue was up 58% year over year and generated over $700 million in cash flow and not seeing a contraction at all but we're seeing a lot of pent up demand are maining for -- remaining for travel and people will continue to travel and that's because airbnb offering value and people can save money and people want to travel and want to save money. elizabeth: yep, you guys are definitely adaptable as we watch your progression. brian, thanks, it's good to see you. >> thank you very much, liz. elizabeth: brian chesky of airbnb. the warner bro's discovery ceo axing the release of the dc comics film batgirl after it's been shot and paid for and that's just for starters. making a big announcement tomorrow.
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charlie will break it right now, next. closing bell we're 14 minutes away. dow is up a clean 500 points right now and nasdaq percentage winner here, up 2.7%. we're coming right back. the dow is on the verge of closing out of correction territory. stay with us, we'll see if they can do it.
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♪. liz: folks, we're getting breaking news right now. a report that republican congresswoman of indiana, jackie walorski died in a car crash. wnbu, south bend reporting the story. two others reportedly killed in the crash. this story is developing. as soon as we get more we'll bring it to you. let us transition to shares of warner brothers discovery. they are popping this hour, up about 4.7%, very close to session highs right now, getting a boost in response to some breaking news from our own charlie charlie gasparino. here is the tweet. warner brothers discovery ceo david zaslav will detail plans to revamp the company on thursday's earnings call.
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streaming platforms, hbo max, discovery plus, could lead to significant layoffs. charlie, clearly he has the machete out. >> this is clearly related, the stock is getting a pop off of this, did a long-term chart of discovery. liz: not pretty. >> he is saddled with high debt loads with they merged time warner, what was it called? i forgot the name of it. liz: warner brothers discovery. >> warner something. liz: warner media. >> warner media. when they merged that. liz: how quickly we forget. >> it has been so many iterations merged that with discovery, saddled with a lot of debt, issues with streaming content. first thing we reported he cut was cnn plus. that led to layoffs. what we're hearing there is further restructuring going on here. now it is unclear whether he will name, he will name this
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big, unfurl this big restructuring tomorrow or he is going, he definitely will be asked about it because analysts have been demanding this. this is what we hear. some combination between the streaming platforms, those two you mentioned. that is going to lead to probably a decent amount of layoffs and some more restructuring in management in terms of who gets what, who runs it. clearly this one gentleman, who i didn't know until now, he is the head of content. liz: casey voice. >> head of content at hbo, apparently will play a major role in the new revamped unit it becomes plus there will be unclear, who they report to and who the business guy on here. what is interesting about this, that you're going to have casey boyles,. liz: bois. >> unscripted content, reality stuff that discovery channel brings he will run that he will run the scripted stuff and do they, do they have a business
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guy that's running it? or do they just report to zaslav? it will be interesting how he unfurls this. clearly he will be asked about it tomorrow. i can't tell you if they will do a massive announcement. i do know that people inside of the company are talking about this because that is who told me. liz: casey signed a new five-year deal. >> definitely going to be there i'm just saying how they do this tomorrow will be interesting. i kind of think they will. they will announce this. here's why. the street is demanding that this company does better. it is interesting, the stock doesn't move unless they cut. liz: how about the bat girl? movie already shot, cost $90 million. zaslav pulled the plug on it. promotion, distribution? >> it is everything. liz: if i'm michael keaton, i'm annoyed. >> be real clear, they produced
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an incredibly woke batman. when they put it before audiences think they will get other stuff, old michael keaton batman, chris shin bale batman, they got something george soros would like. they turned their nose up on it. this did not do well in screenings. keep that in mind. liz: charlie, thank you very much. the stock definitely on the move. we'll keep an eye on it. closing bell four minutes away. the dow need to finish up 481 points. today it will exit the correction territory it entered back on march 7th. we're 459 points at the moment. there is this. goldman sachs initiating coverage of burlington stores and ross with buy ratings, telling investors off price retailers are a good defensive sector. our countdown closer, already on the case. loves soft price retailers, particularly two nails she believes will get their sea legs back soon. joining me, 48 billion assets
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unmanagement, cain andersen portfolio manager. >> these suffering from a lack of inventory. inventory drives these businesses. recession or not americans love a good deal. ross and t.j. are well-understood. less understood, armies, growsry outlet. they're off priced. more general merchandise. i think they're more insulated in a recession because they don't have much fashion risk. they provide good deal for consumers. they always love that. liz: our audience loves to hear names that are not on the beaten path always. ollie's, i find interesting, that jumped 25% year-to-date. as you look at some of these names not everybody is going to do well. why this what is the common thread? >> i think the common thread
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generally speaking they're in positioned to be run extremely efficiently. what they try to do is create a business model such that they don't need to buy the most expensive retail. they don't need to have merchandise that is really high fashion risk. all they need to do is create a great opportunity for customers to shop. the best part is, because they have premium brands, they can't actually advertise. your proctor & gamble doesn't want anyone to know how much sunscreen is selling for at an ollie's army. their cost basis much lower. they're able to weather any kind of a downturn in a cyclical changing economy. liz: yeah i think everybody is price comparing. i was at harman which i love, because i think their prices are slightly better but i want to try ollie's and see. sunscreen is expensive. my gosh. you like tech. tech is showing leadership in this final hour of trade through the whole session. nasdaq has been powering ahead. aspen technologies is one of
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these names. what must tech names that make it past your bar have to have? >> i think first of all we're really focusing on tech names that serve business. we don't really want customer, or consumer exposure. that is not probably going to do as well as something that is serving businesses. we want businesses with high switching costs. aspen tech, they help refinery run its business. you're not ripping that out of your refinery. you're not ripping that out of your chemical company. so it is mission critical software and it has high levels of returning revenue. these durable businesses have strong earnings. that is the type of tech we like. liz: as we look in markets, is this a bear market rally or start after bull or something else? >> hard to say, right? i think what is the real question mark is exactly how is the consumer going to fare? if we have a harder landing we expect and unemployment starts to really rocket it could be more problematic. we have a longer downturn ahead.
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liz: julie, great to have you. especially interesting day, folks. we're not at session highs where we're about to close. no exit from of course the correction territory for the dow. [closing bell rings] we got close but the dow is still up 410. s&p better by 62. nasdaq i said, big leader up 2 1/2%. that will do it for us. "kudlow" is next. ♪ larry: hello, folks, welcome to "kudlow," i'm larry kudlow. save america kill the bill. we continue that theme the more america learns about this manchin-schumer special the less america likes it. more spending will increase inflation. higher taxes will deepen recession. that's just common sense. now, a new poll in arizona, which happens to be senator krysten sinema's home state, shows 53% of respondents say that the senator should oppose


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