tv The Claman Countdown FOX Business August 30, 2022 3:00pm-4:00pm EDT
good things. the most important thing is live for your dreams but never give them up. if you're young, forget about being an organizer, recruiter. i mean, you can do that later. hi of something amazing, something that really moves your heart, something that you wanted to do since you were and kid and, please, whatever you do, folks, ask kids what they want to do when they grow up. let them tart to think about it. at least that's my idea. lauren simonetti has her own, and she fills in for liz claman. lauren: thanks, charles, good to see you. stocks are sinking for the third day in a row, the dow is down 365 points, it was down 450. look, you can blame the deluge of data, particularly the jolts jobs report, rate hike jitters. dow is down 1.1%, broader market's down 1.3%, and the tech-heavy nasdaq down 1.5%, again, all three down three days in a row x. he were actually all up in the green when the market opened. and then the turn. it happened at 10 a.m., that's
when the nose dive began exactly when the jolts report hit the tape, and, well, it hit pretty hard. job openings unexpectedly rose in july. there are more than 11.2 million jobs open. that is double the number of available workers. then we got the consumer confidence number for august, a lot stronger than expected. it was the first time the index rose in four months as more people said, hey, we'll take a vacation, we'll buy big, expensive items mt. next six months, and investors got the latest case shiller reading, rates rising at a meteoric pace for the month of june but slower than may. that drag canned on many of home builder stocks today. you can see lennar down over 1%. today's data dump has investors convinced that aggressive rate hikes are going to continue, and the new york fed if president, john williams -- a voting membe. this is what he told "wall street journal."
quote: i do think with demand par exceeding supply, we do need to get real interest with rates above zero. we need to have somewhat restrictive policy to slow demand, and we're not there yet. we're still quite a ways away from that. federal reserve president rafael bostick also chimed in saying if incoming data shows inflation has begun to slow, it could be a reason to dial back the size of future rate hikes, but he is not talking about cutting. and investors are running scared. but, hey, sometimes the fed starts one way but acts another way. let's get straight to the floor show and our traders, tom hayes, scott hellty. tom, my chance -- shellty. any chance this is all tough talk by the fed? >> yeah, i think as we a talked about last week, lauren, this is talk hawkish, act dovish. it's a continuation. this strategy has proven extremely effective when you look at break-even inflation rates which the fed is mostly
focused on, 2 the.71%. -- 2.71%. the most important numbers this month are not the jobs report that everyone's worried about, it's the ppi and cpi a that comes out on the 13th and 14th which fed president bostick said today if that comes in a little bit later -- lite leiter, maybe --ing lighter, maybe the fedgoes a little bit lighter. we'll see the jobs report on friday, the it's expected to be strong, but like last month, focus on the inflation numbers. lauren: and we get those cpi numbers, like you said, tom. scott, i was looking at this consumer confidence, gangbusters report for august. what gives? yeah, gas prices have come down from their record highs just a few weeks ago, but is that the reason why those planning to take a vacation in six months hits an eight-month high or purchases of durable items, that's up ooh?
are we not being influenced by inflation? >> oh, i think they are, but i think they were looking for any bit of good news, and they celebrated in a short-term good mood. i view those numbers just like i viewed the bear market rally we just had, scratching my head, like, that what gives? people kind of felt better about their situations. that's when we have those numbers taken. and so let 'em have a little bit of happiness, because i think what's many front of hem is a lot of pain. the fed is going to raise interest rates. fed is going to raise the unemployment rate. now, if we have any type of inflation when it comes to energy, that means we have energy inflation at the same time we've got food, fuel and shelter going up, i don't like what that's saying to me here. so that means i feel like we still have some aggressive rate hikes in front of us. however, we will overshoot. they always do, and then we're going to have to dial back with maybe a cut sometimes next year -- sometime next year. they're emboldened, they're
angry, they want some credibility back, so they're going to hike until it's too late k and then they'll start to dial back. lauren: so the post-powell pain persists, tom. i worked on that, four ps in a row. [laughter] what are the chances, yeah, there's going to be a slowdown, maybe headed for recession, how bad is it going to be? >> well, look, it's natural to have consolidation in the market after you've had a huge move off the june lows. people are buying insurance after the house is on fire as they usually do, so points to we're probably going to consolidate for maybe a little time longer, but i think the path of least resistance as we look out a few months is going to be higher. this has served up a temporary opportunity to look at buying high quality businesses at a discount on this pullback, on these fed fears. and the recession we've had the two with quarters of megagdp growth. -- negative gdp growth.
recession fears today are the highest since april of 2020 and march of 2009. those were lows, those were periods when you wanted to be a buyer with not a seller, and that's where sentiment is right now. and everyone continues to look in the rearview mirror versus looking forward. analysts were looking for earnings estimates to come down 20 the % in q -- 20% in q2. this market is holding up, this economy is holding up mt. face of a lot of different headwinds with, and i think as we move forward and you buy quality that's been marked down, you're going to to do can very well 12-24 months out. lauren if you look at apple, microsoft down 2% in this young week, scott. is that going to be an opportunity to buy or do you see new leadership in the market? >> no, i still love big tech because, you know, with one line of code they can save a million people, right? but it's still not the right time. i i still feel as though, yes, whatever time of year you buy
this market today or tomorrow or next month, in a 20-year period you're going to do very, very well, right this but i still hi in the short term we have some ugliness ahead of us, and you're going to get a better chance to buy big tech names between now and, say, thanksgiving. keep that powder dry. and also i think you should be in energy ooh. we're not getting rid of fossil fuels, folks. you're just going to get a better chance to buy them between now and thanksgiving. lauren: not to mention if we get one bad hurricane in the gulf of mexico, up goes the price of oil and gas. scott shellady, tom hayes, thank you very much. and did you guys see report in goldman sachs says inflation in the u.k. could hit 22%. the the energy sector is getting slammed, oil, arbob, nat gas down sharply, energy is the worst performing sector, some of
the biggest names getting hammered. down 6% for chesapeake, but that's today. overall high energy prices are driving up cost of electricity across europe. you have fall, cooler weather just weeks away, and that's got some people wondering if we could see the same scenario play out right here at home and our bills go up, up and up. jeff flock joins us live now in philadelphia, pennsylvania, with the latest. jeff. >> reporter: in some ways,s different in europe and in some ways similar. first, the ways different, lauren. i'm at a substation in philadelphia, electric substation, where prices are going to go up by 11% on thursday of this week, but that's nothing compared to europe. and if take a look at why. it's about natural gas. cost of natchal gas here, 9.33 today when it opened. yesterday in europe, the same million btus of natural gas,
$79, almost nine times the cost many europe. that's led to price increases for europe from $133 for the average customer mt -- in the u.k. last year to $345 this year. and that's leading germany, for example, the city of hanover, to cut off had water to its public buildings, italy to limit a/c use, spain to cut off lights overnight to to public buildings and france to find fine shopkeepers who leave the a/c on and their door open. very different than here in the u.s., but energy experts say there are some similarities too, and that's not good. listen. >> les several countries in europe that have their op own natural gas resources and have failed to tap into those resources. unfortunately, europe's kind of been plagued with the same problems the u.s. has been plagued with. we've got these lengthy environmental reviews and permitting processes to build
new energy infrastructure. >> reporter: and consequently, the prices, lauren, here rise as well. and i point out you that is really a regressive tax on the poorest among us. take a look at these numbers. you make less than $38,000 a year in your household, you're paying about a quarter of that for your energy. if you're wealthy and you're making over $240,000 you're only paying less than 5%. and consequently, a lot of the poorest among us are not able to pay their energy bills right now. 20 million at last count behind in their energy bills, owing a total of $23 billion. some of us are always behind, but $23 billion compared to about $10 billion this time before the pandemic. lauren: i remember when that report crossed -- >> reporter: through the roof. lauren: to think that so many homeowners can't keep the lights on, it's really scary stuff. jeff flock, thank you.
good perspective. well, at&t trying to bring the 5g pooch closer to fruition -- future. what a a plant in arizona will do to connect homes and jobe withs -- jobs out west. and live from the grand canyon state in a first on fox business. but first, we check the big board with, look at what's worse. the dow is sill down 244 points, it had been down 450. it had also been up over 100. that's volatility. "claman countdown" coming right back. ♪ ♪
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lauren: corning is heading out to the wild west. in just minutes the tech company alongside at&t will officially announce a major manufacturing partnership from arizona. the two with companies unveiling plans for a new optical cable facility in gilbert near phoenix. the plant will add 250 new jobs and will be up and running by 2024. commerce secretary gina a rah mundo will join the ceos at that big announcement, but before they do that, they join us here. let's bring them in to discuss the new plan, john steng key and corning's ceo wendell weekes. congratulations, gentlemen. john, i want to start with you. why arizona? if. >> well, look, as wendell and i discussed, this is -- we have a lot of infrastructure that we have to build out west, and we're looking for opportunities to ultimately put a little more resiliency in our supply chain. we felt arizona was a good place to be partly because of its location, but it's the also a
great state to operate and to do business in. and our additional announcement that we're going to start building fiber to local are residential and and business communities here is really a reflexion of the great rate of growth in the state. a great place for us to go and build infrastructure. it's flexible getting permits and we can get the workers to do the work. lauren: sounds like a home run. wendell, talk to me about your expertise, which is fiber. i mean, it enables communations that are so fast, continent to continent. it's amazing. why are you betting that this is a better way for people to connect to the internet? and what's the upside for you here? how many households actually have that access, and how many do you want to reach? >> well, pinier opters is reallt of the technology of the future, but it's available today. actually, since we invented optical fiber back in 1970, the
world has installed enough fiber to go back and forth to the sun about 20 times. yet only 19% of americans are directly connected by fiber, and that's what's leading great companies like at&t to tackle the problem of how do we connect the unconnected with a infinitely upgradable, infinite sort of capacity network not only for today, but for ten years from now. lauren: so, john, if if we have all of this fiber laid down, why aren't more people and companies accessing it? >> well, it's the last mile that's the challenging part -- lauren: always is. >> there's been an awful lot of core infrastructure put in place. now we've got to to get out to the homes, we've got to get out to those smaller businesses that haven't a had the benefit of fibroer. and through some of the great
engineering that corning's doing at in this particular facility to allow us to deploy it faster and more efficiently, with the opportunities we have with the good policy that's being put in place, some of the opportunities to ultimately receive some federal subsidy to go into those areas that have been harder to build to because there isn't a market demand for it to support the investment case, the the time is really now. and i think the more exciting part is as we start to see the services come out that consumers can take advantage of, this is going to hit right at the right moment, i think give an opportunity for those high-demand upstream and downstream band wid circumstances that anybody who's got fiber on that last mile is going to make a big difference in the market. lauren: you dropped big words, federal subsidies. and, wendell, the bipartisan infrastructure law requires that infrastructure made in the usa to get that federal funding. are you really able to do that,
that you can satisfy if huge demand for the internet? because, you know, some trade groups have come out and said this is, like, really hard to domestically source all the products that we need. we need waivers. is this doable, possible in the numbers that we need? >> well, in the case of fibroer optics -- fiber on the ecs which is what corning does, not only did we invent it, but we are the world's largest, lowest cost, highest quality technology leader. and actually the two largest fiber optic plants and lowest cost plants in the world are right in the u.s. so this is a technology where we lead. it's our job to make sure we have enough capacity mt. ground to serve -- in the ground to serve the surging demand. that's what announcement is about. since 2020 we've invested about half a billion dollars. it doubles our ability to supply fiber optic cable to the north american market. >> lauren, i think we've done a
lot of work here, and as wendell said, we've bot the fiber piece of it all figured out on how to make sure it's domestic-sourced, domestic-assembled. we have a. union work force that's ready to operate it, support our customers op on it. and, look, our scale at at&t, it's kind of capability you need to go into the other parts of the supply chain to have the success to move some of that manufacturing into the u.s. it's going to take some time. it's hard work to do, but i think through concerted efforts like what wendell and i have managed to do here and other, you know, opportunities that we can chase, we can make incremental progress on that, and i think it'll be good for the country overall to move forward with fast employment, get as much manufacturing in the u.s. as it can and then get the economic benefits of putting fiber in place that are going to make us incredibly competitive moving forward. lauren: so how many jobs, how many plants are we really talking about this, and my
follow-up is do we have the skilled workers? we got that jobs, the jolts report, today. there are 2 jobs open for every 1 person looking. >> well, actually, the biggest job requirements are how do we actually install the network. and john's a real expert on this. and the other piece of the ability to get this done that john has leaned into has been how do we train train the a big enough work force to be able to install these networks across the country. and, john, maybe you'd like to share a few thoughts on that. >> if we look at the fore cast of how much current companies are investing in telecommunications infrastructure right now because of the good, pro-market policies that we've seen out will plus what the -- out there plus what the infrastructure act is ultimately going to bring into the industry over the next couple of years, we're looking at something along the lines of possibly 850,000 new jobs --
lauren: whoa. >> -- in telecommunications to do this infrastructure deployment and servicing that wendell suggested by the time we get to the end of 2025. that's really significant, and it's going to require a lot of training. and that's why we started this program with wendell's e expertise, his company's skills to teach those skills into employees, take it out on the road, transfer it to others so that we can see that uptick. and, look, competitive for employment right now, but these are really attractive jobs. they're solid middle class wages, and our company they come with benefits, they come with a lot of other opportunities to be part of a large, credible, world class organization. and i think when the opportunities are there, people will migrate to them. lauren: john, wendell, thank you for the time and congratulations. >> thanks for having us. >> thank you very much. lauren: mitt. let's take a look here, best buy bucking the overall red trend today. we're going to tell you why, what they're doing right in today's pop stocks.
and later, some call it prank ifen -- franken food. actually made many those silver jugs. could lab-grown chicken solve the world's food shortage in the ceo of supermeat is here to tell us how it's done and how it's scalable. it's a fox business with exclusive. let's check the markets. down for the third day in a row as yields spike as pain of the powell speech persists into the second week. the dow is off 240, nasdaq down 127. we'll be right back.
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lauren a lauren fox business alert, markets still down. could be worse, but it's down three days in a row, and august is shaping up to be just an awful month for the stock market. everything down more than 3%, and we're heading into the worst year -- worst month of year for stocks, which is september, unfortunately. but i have a winner, be best buy. it's sitting on top of the s&p 500 after the electronics giant reported fiscal second quarter profits and revenue that fell, but less than experts forecast. and earlier the month they cut hundreds of many-store jobs, all many an attempt to reduce costs. but when you say back to school season was off to a strong start, we're liking the way the holidays look, you get a 2% rise in your stock when everything else is down including meme stock bed bath & beyond. it had been up for three days in a a row. it helped it rise more than 40%
in that time. it's now down 11.5%. that rally began after bed bath & beyond said it would offer business and strategic update before the opening bell tomorrow, and reuters reports that the company's nearing a deal with investment firm sixth street for a loan of $370 million. looking they need to convince their vendors it's okay to give them goods to sell. they will get paid for those goods. that's how bad the situation is at bed bath. chinese stocks buy due and alibaba not faring well after some u.s.-listed chinese companies were selected for audits. on friday beijing and washington cut a deal that would -- shares of baidu were higher after the chinese search giant reported send quarter or revenue that beat analyst estimates but fell after it was passed over for that audit, and it is down 7%. copper prices also down after
hawkish warnings about future interest rate hikes. lowering demand for the metal that is used in so many industrial uses. shares of copper miners tumbling today. freeport mcmoran, the largest publicly-traded copper, is one of biggest losers. and coming up, america's farmers or facing headwinds never before seen from mother nature's wrath to sky high fertilizer prices. grady trimble is headed to the heartland for a looked at how the future of farming is mobilizing to battle the forces pressuring the nation's bred basket. and let's take -- breadbasket. and cryptocurrencies, sub-20,000 over the weekend, bitcoin, well, it's still sub-20,000. $19,900. e thief yum's up just a bit -- etherium's up just a bit. "claman countdown" coming right back.
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lauren: well, the market selloff includes a drop for tyson foods after its indiana pork plant has been banned from exporting meat to china. tyson did not say why it has been halted, but said its products are safe, and it does hope to resolve the matter. stock is down 1.4%. meanwhile, u.s. farmers are facing their own struggles as record high inflation, temperatures and drought are the biggest threats for this year's harvest. let's go live to grady trimble in iowa with what the future of farming looks like. i mean, what kind of picture are you going to paint for us, grady? it sounds pretty ominous. >> reporter: yeah, that's problem, or lauren, because right now it's tough times for farmers. but the farm progress show where we are is all of high-tech solutions for the future.
what you're looking at behind us here is a combine and a grain cart, and you might not be able to tell from distance can, but this is self-driving technology. it drives itself. so this is type of technology you see here looking to the future, but at the same time, brent johnson, who's an iowa farmer and also with the iowa farm bureau, will tell us it's tough time for farmers right now between fertilizer, fuel prices expect drought that you're experiencing here and farmers all across the u.s. especially to the west of here are experiencing. >> yeah, no question about it. weather's always a concern, that that's perpetual with. butting you know, the fertilizer prices, fuel prices, chemical prices, we've seen unprecedented rise in those input costs for farmers across the entire country. >> reporter: we talk about inflation a lot, you know, it's right around 9%. you mentioned hoe that your fertilizer costs are way higher than that. >> yeah. you know, a year ago when i was buying my fertilizers for this year's production, some of my
fertilizers were $2 -- 200, 900n one year. >> reporter: and i know there are concerns that could get worse because of war in ukraine, but you said there are some solutions the biden administration could take today, some steps to help solve this problem or at least bring down those costs a little bit. >> yeah, absolutely. one of the things that iowa farm bureau, american farm bureau has done is found some of those opportunities that the president through an executive order could remove tariffs on fertilizers imported from other countries, and that would reduce some of these input costs a little bit on the near term. and reduce some regulations and some red tape on some production facilities domestically that we could increase our domestic production and find some intermediate solutions and that buys us some time. >> reporter: and, lauren, the message we're hearing time and time again from farmers is when you see the higher prices at the
grocery store, you might think farmers are doing pretty well in terms of the profits that they're making, but when you talk about the costs of what they need to grow their crops and soybeans and feed for livestock, that's gone up exponentially, so they're not making any more money right now. in fact, a lot of them are making less, right? >> yeah. well, concern is actually next year, 2023 and 2024. we've got some real concerns for profitability on the farm. >> reporter: so a bleak future, but there's a lot of positivity in terms of the technology as well, lauren. i'll end on that silver lining. lauren: yeah. they know you can only hike prices so much, and then you kill demand which is what they don't want to do. grady, good to see you, thank brent for us as well. palmers here are focused on the -- farmer here are focused on the future. one start-up is growing chicken meat many a lab. israeli-based tech company supermeat is producing poultry meat in the laboratory.
it aims to increase food safety worldwide with its lab-grown chicken meat. and joining me now in a fox business exclusive is the supermeat ceo. ito, welcome. thanks for joining us. >> thank you, lauren. it's a pleasure and honor. lauren: give us the abbreviated version of what manufactured meat -- i hope that is an okay description of it -- what it takes to actually make it. >> well, eventually i hope that users call it meat. what i think is interesting with cultivated meat, that's the term that we usually use, is we feel that the vertical forming of meat. we take cells from an animal, first category that we're targeting for market is poultry, but we're working on beef and porkother categories as well. so so you take cells prosecute
animal, and hen you -- from the if animal, and then you feed them in a fermenter which is what we currently use to produce cheese, and we we just grow it this many a fermentation process and produce the meat that we all love to eat every day. lauer lauren so how long does it take, that whole process? how long does that take? and when you actually have that piece of chicken, what's the shelf life? >> that's great questions with, lauren. first, i think, you know, when you rook at poultry -- look at poultry, chicken meat, for example, which is the fastest growing meat, it takes around 42 days for pulley-bred -- fully-bred chicken, and with cultivated meat, that could take just a few days. because here that's the beauty of it, you can just produce what the market demands. so if the market wants chicken breast, then you just produce the muscle, the breast.
if it wants more pat or more thigh, you can produce that. and at thanksgiving you can just produce more you are key and not have it grown all year round like you have to today. so these are some of the great benefits that come with kind of technology. lauren: is that your goal, ido, to have americans sitting around the thanksgiving table having a cultivated turkey? >> definitely, and it's going to happen sooner than you think. lauren: how soon? >> well, we're looking to roll out our poultry products that would be both chicken and turkey by the end of 2023 or early 2024. lauren: wow. so end of next year. i know you're going to tell me it tastes the same or it tastes better than real meat. is that actually the case? i mean, if we did a taste test right now between a real piece of chicken and cultivated chicken, would i know the difference in. >> well, we actually did that. we brought master chef judges a
couple of months ago, and it was covered by "time" magazine live. and they couldn't tell difference. lauren: oh, wow. >> you can check it out online. there's a video. and that was 100% cultivated meat compared side by side with traditionally-produced meat and without seasoning, without any difference in preparation and with a blind tasting, and and it was covered live, and hay couldn't tell the difference. lauren: was that in israel in. >> yes. lauren: okay, so when is your product coming here to the? because i want to take part in that taste test. >> well, first, your welcome to israel. we opened a concept restaurant experience, the chicken, where we're hosting people in tests like these. and we're coming to the u.s., as i said, by the end of next year. so it's very soon. but in the next couple of months, we're going to have some very interesting surprises that
we'll be happy to share. lauren: supermeat ceo, i, the o, we thank you for the time -- ido. >> the thank you. it was a pleasure. lauren: of course. elon musk is doubling down on his intent to abandon his twitter acquisition. what the tesla ceo now said in a new sec filing. we're going to discuss and break it down with charlie gasparino right after this break. check the big board, you know, holiday-shortened weekend -- week. ing stocks are down. i mean, the dow is still down wolfe 200 points and down for the third day in a row. we're coming right back. ♪ ♪
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lauren: okay. breaking news, president joe biden speaking on the campus of wilkes university in pennsylvania. president is discussing his safer america plan to reduce gun crime and violence. the president saying moments ago when it comes to public safety, funding the police, not defunding, is the answer. we're going to keep an eye on that event and go back to pennsylvania, the swing state of pennsylvania that president biden will be in three times this week, if there's any news
we want to bring you. and let's take a look at snap. their parent company reportedly laying off 20% of employees, haas about 6400 people. that according to a report on verge are released just minutes ago snap has been planning layoffs for if several weeks, and they will begin tomorrow. some departments will be hit harder than others including the team developing mini apps and games. the stock is down 3.2%. and shares of twitter, yeah -- [inaudible] thanks to fresh battle between with elon musk and the company he doesn't want to buy, twitter. tesla ceo filing another letter with the sec stating his intent to ditch his $44 billion takeover of twitter, and twitter hitting right back. let's get to the drama with charlie gas prix know -- gasparino p. every day. >> he says he doesn't want to buy it. we don't know -- lauren: what did the filing say? >> it doesn't matter because you can cut a deal on the side which
a lot of people think is going to happen as thing goes to trial. a lot of bankers who were involved in the deal. now, maybe heir hoping for a big payday because, of course, if the deal doesn't happen, they don't get the bun. -- the money. but they still think they're going to meet somewhere in the middle. if you notice, even with latest piling where he says i've got more proof -- lauren: the whistle blower is the proof? >> mudge saying essentially he's got direct evidence that they're underplaying the bot problems more than 5 percent. even with that filing, the stock is at 39. that's not a tremendous decline from yesterday, and it seems like that's kind of where the market thinks this deal's going to end up. maybe 40, maybe a little less, but somewhere in this ballpark: because if they really thought this deal wasn't going to happen, has a $20 the number on it. it doesn't have a $30 number on it. and it's sill at 39.
so in any event, that's what we have right now. we have him using mudge's latest miss i have. it's -- miss i. it's interesting because when they bo to -- go to court, presumably we'll get to see some of this stuff. does twitter really want to see that in court if it's compelling stuff? lauren: they're trying to push the court date. >> i understand. that probably won't happen. my point is, you know, there's y want to to go forward and pay 15 billion? the judge might say, are listen -- lauren: you mean $15 billion? oh, i hadn't heard -- i'd say, no p he doesn't. >> yeah. t it's below the 44 billion, but it's still substantial. does he want to pay 15 billion, so there is a rationale. and then you throw on top of it does the judge want on responsible for selling the company to musk when he says he doesn't really want it. the whole thing's kind of a mess right now. but my guess, my -- i'm telling you, i'm many that $15 billion
example that the judge whacks him, says you don't have to buy the whole thing. you, you don't, you don't get to back out of this totally. lauren: and that sends a message that you are the world's richest man and you're playing with people's money and real companies -- >> and you knew knew, by the way, you knew there was a bot problem, because he said it. he was discussing bots all the time. again, twitter's bigger problem is not musk backing out, it's if they lied or fudged the numbers and if mudge caught hem fudging the numbers in public disclosures. then all bets are off. the sec's going to come in and, you know, they're going to investigate and look at jack dorsey, what he knew, look at what dick costolo knew, i mean, that's where this thing gets really interesting. and, again, you know, musk may throw them. with him out, an investigation, this stock could take, the stock could be really problematic. you know, i'm, i don't give
stock recommendations at all. by the way as i'm talking the markets are starting to like puke here a little bit. lauren: can you see anybody stepping up right you now being interested in buying twitter? >> no the problem with twitter it has horrible cash flow. you take private equity out of this. it woe be a good thing to merge with facebook, some platform like that. but if the justice department, fcc not letting facebook doing a minor acquisition no overlap, with this firm that will provide the new a.i. technology, talking through the break you can do workout videos in an a.i. environment, they're putting brakes on that thing. they're suing to prevent meta from buying this firm. they will not allow facebook. if you take private equity out, you take social media out because of the regulatory landscape, antitrust landscape, who is left but a crazy billionaire?
it is either, is you warren buft going to buy it? i don't think so. who has that type of money. peter thiel doesn't actually have that type, he is really rich, 6 billion, we're talking even if it's a 20-dollar stock, you're talking it is still a, if it's a 20-dollar stock, doing a little math in my head here like a 20 billion-dollar company still. he doesn't have 20 billion. lauren: we'll see how it plays out. trial set for october. i was going to say next month. we're not quite there yet. charlie gasparino. thank you. let's check the markets. closing bell in four minutes time. we're selling off more as we push into the close. 1% plus declines across the board. investors play a defensive strategy because they are worried that the fed keeps hiring. our "countdown" closer has three stocks to advance your portfolio to play offensive in this market. joining us now the cfra chief investment strategist, stan
stovall. good to see you. >> good to see you again, lauren. >> i'm looking at stocks you like. you're playing defensive sectors, energy, health care, utilities. tell us what you like and why. >> we're heading into september which is the worst month on an average price basis. also the only month to fall more frequently than it advances. not surprising like captain reno from casablanca, round up the usual suspects, you get better return from energy, health care, utilities. sticking with the theme for the month ahead, target resources, unitedhealth group, nisource are three companies we currently have strong buy recommendations on. i can go through each one if you would like to. for targa, they're up 50% in past few weeks, you think there is room for more gains? >> absolutely. you're looking energy sector with 45% year-to-date advance,
53% discount to its average p-e ratio over the last 20 some odd years. i think that the energy situation is not going to be going away. as a result, want to have a company especially like targa mid stream company that focuses on natural gas and natural gas liquids. this company turned the corner on natural gas needs and increasing its cash flow so our analysts like it very much. lauren: what is the new leadership in the market? is it defensive. do you think big tech has come down a bit? what takes us to the next level? >> i think we have to get through this level first. i think we're retesting the june 16th low. i believe the low is in and the test will succeed because we recovered 50% of this bear market advance on august 12th. no time since world war ii did
we recover 50% and then go on to set an even lower low. so short-term, i would stick with the defensive plays but i think a year from now, october 31 of midterm election years, through october 31 the year after the market was higher 100% of the time, posting 21% average total return. i would tend to think those groups that were worst become first in that year ahead. we have to get through this retest before that happens. lauren: sam, that is why you're so good. that is the historical perspective. september might be crummy but the low is already in and we're about to kick off what could be a historically strong year. one final question for you, do you think investors have realized that recession is very likely here? i say that with commodities selloff that we're seeing today? >> i think it is. our expectation is that we will be falling into recession or at least the mber will tell us so
fairly soon. the reason because since world war ii every time we have year on year rise in cpi above 6 1/2% we've had recession and a bear market. lauren: yep. sam stovall, perfect timing, we thank you. perfect expertise. [closing bell rings] down three kays in a row. that will do it for "the claman countdown." "kudlow" is next. sean: hello, everyone, welcome to a special edition of "kudlow," i'm sean duffy in for larry kudlow. president biden is speaking in wilkes-barre, pennsylvania, our producers are listening and we'll keep you updated if he says anything interesting. joining me brian kilmeade, host of "fox & friends," host of "one nation" with brian kilmeade. thank you for being here. talking about crime today. did he poll th