tv The Claman Countdown FOX Business September 15, 2022 3:00pm-4:00pm EDT
obviously these two use cannot coexist as a official policy. we're blessed to be miserable yet among the most happy people in the world but at the same token, folks, we're on the cusp of blowing it. we have to be careful not to self-destruct. remember how we got here and we can move the needle and get even happier. make i'm wearing rose colored glasses. liz claman, over to you. liz: well, i'm wearing the righa deep oberchene. life obsis too short to be unha. charles, thank you. we'll kick off the final hour of trade on this thursday afternoon by looking at second day of selling out of the past three sessions. at this hour, you can say the session is not exactly at a kind of trying to drink from a fire hose state. it's pretty orderly but the dow jones industrial is losing 102 points and tried to make a go of it in the green about an hour and a half ago. no so much now. we have s&p down 35 and nasdaq
losing another 142 points and russell down 8 points but look where the s&p is right now. when i say right now, i mean the level. at 3,908, 3908, we're not all the way down to the june lows, which you see in the year-to-date picture but the s&p about 700 points lower than where it stood in march. even with the dow jones industrials trying to punch into the green, not quite making it but at the moment down just about 130 points or half a percent, the gravitational pull for much of the entire week has been to the downside, especially after the market tuesday receiverred its biggest losses in two years. the dow has not come close to recovering the 1300 points vaporized two days ago when the hotter than anticipated consumer inflation number spooked the investment horses. if you're long financials, let's say consumer cyclicals, healthcare, those are the only sectors to the upside at the moment and everything else in the red.
biggest laggards is energy, followed by utilities and tech. the laggards in big tech land, two chip related names, both more than $200 billion in market caps and semi-conductor quit giant and chip device designer broad come is moving lower by 2% a piece and sales force is the second worst performer on the dow jones industrials. who's the worst you ask? microsoft, mr. softy down about 2.7% and here's the news, regulators in the united kingdom are escalating their investigation into microsoft's planned $75 billion or $95 a share of acquisition vi blizzard and whether the pairing could harm. act vactivision blizzard is war.
the berkshire hathaway scooped up more shares bringing the total holding of the video game maker to 68 million shares or 9.5% of the company. we'll see if that 76 print here can get back up to 95 or up to 95. the buyout price for microsoft. as markets remain skiddish ahead of next week's federal reserve meeting, treasury yields continue their march higher on the belief that jay powell and company will hike rates at least another 75 basis points next wednesday. the yield curve inversion between the two year and ten year, this is often a harbinger of recession. now at its biggest bend this month. we're looking at about a 42 basis point inversion there. let's bring in the floor show. here to tackle this situation and your money, your investment, co-cio of multi-asset solutions group oturu goldman sachs asset management maria and says
there's one haven she says is the place to park your money as you wait out the storm. we are also joined by trader john corpina from the floor of the new york stock exchange. john, i'll begin with you. some are surprised we haven't seen much bargain hunting selloff. what is it telling you? >> liz, we're not seeing it yet but we're feeling a big weight on top of the market. we had this significant selloff on tuesday and seemed like there was a lot of real pent up energy behind it and every headline talks about testing the june lows and that puts the weight on top of the market here. yes, we know that there's certain stocks and sectors that are cheaply trading at this point. we're just not guilty seeing that come in yet. orchestrating the fed moving and 75 basis points and we keep giving ourselves excuses to wait and the longer we wait, the more the market will drift lower.
we'll continue to stay in this pattern of just uncertainty and no real conviction, but it's going to take us some time to get out. but the headlines putting pressure on the market are true and they're the ones that have been true the last few months and they'll continue to be true. liz: one of those true is that rates are going higher. i know you both saw, and john i'll get your thought on this and then maria, we both saw all of us that ray dalio of bridgewater is the billion mare and largest hedge fund on planet earth maybe, he came out and is saying that he expects the fed to push rates up to 4, 4.5% and in doing so, that will have a corresponding hit to markets, hit to the stock market of 20%. john, i mean, do you believe that? >> i think there could be significant ripple effects to that. let's just keep it real simple and bring it down to mortgage rates. as mortgage rates continue to trade higher over 6%, purchases, home purchases are not going to
be able to pay for the price of homes they were it 3, 6, 9 monthsing and sellers have to come into the market there and mortgage prices will continue moving higher and higher and less spending that people have in their pockets to fix up their homes and buy extra clothes and food and extra expenditures and less money coming into the market. the ripple effects will show us that as rates move higher, less money coming into the market and they'll be more pressure on top of it. liz: all right, john, thank you very much. john corpina. i want to turn to maria vasalu of goldman sachs and you can look at all of the assets and multi-dollar assets. what are you looking at the fed and what it will do next wednesday? >> the fed needs to reestablish its credibility for defender of price stability and now inflation is entrenched in the
core and they have to re-anchor inflation expectations so they are basically having to choose between short term pain or long term pain. if they don't tackle inflation now in a very decisive way that'll be a drag on growth going forward. i believe what they're going to do is choose the short term pain, really hit the economy now by creating demand distraction in order to root out inflation and promote a growth and trend and healthy levels going forward. liz: maria, 22% odds of a 1% hike next wednesday in rates. what would that do to the stock market psychology? >> i think more than whether we're going to get 75 basis points or 100 basis points, what matters is the guidance they'll provide going far.
toward and in the terms of the market when it rallies, that works against the fed. the fed wants to tighten financial conditions. the more the stock market is holding umm or moving higher, the more they're going to tighten. liz: you have at goldman sachs asset management about 200 trillion in assets. we'd love to know what areas you see as opportunities? first you say what, stay in cash till things get worse or better depending on how you see it and then what? >> well, in this kind of situation, cash is king because you need to keep dry powder but there are going to be a lot of opportunities going forward so what we want to be is we want to be opportunistic and nimble because every time you have this big transitions from one state of the world to the other, you're getting a lot of dislocations and that means a lot of mispricing in the market as well. so investors need to be ready to
step in and scoop up those opportunities. liz: okay, dislocations where? >> well, they will be across the different sectors. i think what i would be looking for is good operators. this is going to be key. i'm going to be looking for sectors that are going to do well in this new economy that we're going to be facing. liz: such as? i'm thinking high-tech or semiconductors. i mean, the new economy will very much be driven by anything that has a chip in it; correct? >> suddenly everything that has a chip in it and the fact that tech has sold off so much, that's good news. there was also tech that shouldn't have been priced where it was priced so one has to separate, you know, the real winners from the others, but i
think tech was -- there will be opportunities in tech and opportunities in sectors that use tech to pl produce more efficiently and improve productive. perhaps turn into this alternative energy as well. liz: ament hearing you say though -- i am hearing you say don't do it yet. there will be more pain to come. what will be the signal? and to that end, is there anything in treasury yield or bonds anywhere on the scale that you would say there's a opportunity? >> yes. i would still wait because we're still having uncertainty about the terminal rate of interest rates will be. inflation hasn't really peaked and because it's now reeling the core, it's going to take some real demand destruction for inflation to -- distraction for inflation to come down and we're
seeing in happen because real wages are not growing. they're shrinking and as inflation is holding up, that eats into -- liz: any wage gains have been vaporized by high prices; correct? >> right. so in the mean -- we think at some point there would also be opportunities in the fixing of market as rates go higher, we don't think that the shifts will be parallelled but we're going to see bigger inversions. liz: which part of the curve? >> i would prefer the sen-year sector but not yet. i would wait a little bit more before getting in perhaps around 375 or so. liz: we're at 3.458, folks, for those listening on xm113 in the car. hold ton to the tiering wheel at the moment -- steering wheel at the moment. do you get the sense that we will see rates at what ray dalio of bridgewater predicted at 4, 4.5%? >> that would be a really bad
outcome for many. i think this is a doom scenario if it's going to happen. it means that inflation is much more persistent than anybody expected. it means that it's much more of a global phenomenon and frankly with a pace that the fed is raising interest rates and the policy works with the lag. we haven't really fully seen the effects of the existing hike so far. if they need to go that far up, that means that, you know, the downside can be really, really low. liz: with all the assets that you look at over at goldman sachs, can you tell me what looks most vulnerable that you would just stay away from? >> credit looks vulnerable at this point, especially high yields. liz: so corporate bonds. >> yes, i would stay away or reduce my exposure the same with
em. em can be very vulnerable because of the strength of the dollar. liz: emerging markets. >> yes, these are some of the arareas that we prefer to be underweight. we're also very careful about europe. we think that europe is going to have a really tough winter but the pain is not going to end this year. this is probably a multiyear face for europe so it would very much between on fiscal policy, and also geopolitical developments that affect europe. liz: well, maria vassalou of goldman sachs asset management, thrilled you're here but you're saying more pain to come and then pounce with the pile of cash that our investor audience is holding onto. >> yes. liz: thank you very much, good to see you. ford trotting out the mustang dark horse at the detroit auto show. the new breed of muscle car proving that gasoline powered engine is not dead yet.
we're going to head to the motor city where in a fox business exclusive, ford ceo jim farly is going to show it to you and we'll show you the kick ford shares are getting from it. closing bell 47 minutes away and dow down 198 and hit session lows on s&p 500 so at the moment, that session low would be a loss of about 50 points and we're watching this very, very closely at the moment. stay tuned. it's been a rough couple of days but we're here for you. the cl "claman countdown" is bak in a moment. ♪
as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network. with no line activation fees or term contracts. saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities. ™ when people come, they say they've tried lots of diets, nothing's worked or they've lost the same 10, 20, 50 pounds over and over again. they need a real solution. i've always fought with 5-10 pounds all the time.
eating all these different things and nothing's ever working. i've done the diets, all the diets. before golo, i was barely eating but the weight wasn't going anywhere. the secret to losing weight and keeping it off is managing insulin and glucose. golo takes a systematic approach to eating that focuses on optimizing insulin levels. we tackle the cause of weight gain, not just the symptom. when you have good metabolic health, weight loss is easy. i always thought it would be so difficult to lose weight, but with golo, it wasn't. the weight just fell off. i have people come up to me all the time and ask me, "does it really work?" and all i have to say is, "here i am. it works." my advice for everyone is to go with golo. it will release your fat and it will release you. liz: folks, we're heading to new session lows. right now the dow is down 219.
s&p lower by 53 and now we've got the nasdaq down about 2034 points. all -- 203 points. ford shares they are -- at least earlier -- yep, cantorring a bit higher as the auto giant unveils the mustang sports car at detroit auto show but it's what's under the hood that's equally intriguing and it has a good old fashion internal combustion engine and sidestepping the auto maker's move to electric. comes as car prices hit record prices last month because of lingering supply chain problems but grady trimble is live at the auto show. grady, you spoke with the ford ceo jim fa farly. he doesn't expect the problems to get better any time soon >> reporter: unfortunately not, liz. he said computer chip supplies have improved a bit but ford is still having trouble getting parts from other suppliers and
he's expecting the supply chain challenges to last well into next year. hopefully it won't impact production of the new ford mustang that they just unveiled last night. this vehicle is a bit of a statement from ceo jim farly that even though the move to evs is important, there's still room for what you just called the good old internal combustion or ice engine. >> we have ice business, which is growing like the fuzz mustangs and super-duties and the electric that will be 2 million units and that will be largely growth and on that one, we're number two already behind tesla in electric sales. >> reporter: and a big part of ford's business already, electric aside, is the commercial business. farly see as lot of growth potential on the commercial side with electric vehicles. >> a lot of our professional
electricians, plumbers and muay mis-palties police cars and ambulances and they're eligible for large insenteddives they've never -- incentives they've never had before and will help accelerate the electrify indication. >> reporter: could be wrong but don't think you'll be seeing a police officer driving one of these around any time soon. people here, liz, at the auto show are interested in the latest and greatest vehicles that all of the auto makers have to display. they don't talk much alabama the price and the price of a new vehicle hit a record high last month, the latest month we have numbers for, 48,300 is the average transaction price for a new vehicle. that's the highest it's ever been. liz: i am looking on carvana at a used mac400 mustang ev, $64,000. >> reporter: there's one right there. liz: yeah, they're the hot thing even in the used market. oh my gosh. all right, grady, we love seeing
all of the bling over in detroit at the auto show. keep bringing it to us. thanks. grady's already off and driving. stranger things can happen, netflix on the rise after one wall street research firm makes a bold prediction that could turn i its subscriber malex upse down. closing bell 39 minutes away. we're falling and have the dow down about 211 now and nasdaq down 198 and s&p lower by a full one and a third service percentagepoints and we're comit percentagepoints and we're comit back. ♪liz: fox market alert.
yes, we are still languishing pretty much close to session lows here. malaise waiting ahead of the fed, the big decision will be announced next week on wednesday and the news conference, so mark your calendars literally right now, the news conference with jay powell, the head of the fed, will be during this hour on wednesday, and we'll see -- we'll be all over the markets every part of it. okay, adobe shares, we need to get all over that. cratering to the bottom of the nasdaq 100 and investors are cashing out and this stock is down 17%, that's the worst percentage drop since i believe 2010. unhappy with adobe's deal to
purchase figma with the cloud-based software company at $20 billion. cfra research doesn't understand why adobe wants to buy a company that overlaps with what adobe already offers and why adobe is paying over 400 times the revenue this year. adobe reported third quarter earnings higher and fourth quarter estimates is lower. not a great day. wynn resorts and the hotel and casino company ex-paneledded it is convention center and believes it'll drive a lot more events to the location and that means revenue. wynn popping 6.25% and we have las vegas sands catching a bid here as well. it's up about 3% after the kansas city chiefs sue know submitted -- casino submitted a new ten year gaming session in
the chinese mecca for the gambling. the launch of cesar's sports book and casino truck tour. stocks lower after the financial protection bureau announced it will start regulating the industry by aligning the sectors rules with those of credit card companies. so a lot tighter here. launched an inquiry last year that concerns of buy now pay later companies was accumulating debt and they'd get swamped by that and down 2.5% and paypal 2.7% and the streamer upgraded from inline to outperform. netflix up 4.6% on that and expects its ad-supported tier to reach 40 million subscribers by 2023 and the investment banking firm believes they haven't been factored into wall street's estimates of netflix's
valuation. netflix stands at $234 a share. it's up 45% since hitting a 52 week low on may 12 but still looking at a 60% loss year to date. all right, how long before netflix has a series about an ai truck driver. it's happening in real life. robots on the road. kodiak robotics taking the semi-trucks on a 5600-mile round trip long haul and we'll talk to the ceo about the challenges his drone truckers faced and tie up with warren buffet's pilot convenient stores and truck stops. this man showed up to retail job in new york city in his dad's pickup truck filled with the few possessions he had and about no money to his name. today he leads one of the most lucrative clothing companies in the nation. hear how hands end ceo jerome
griffith left farmland in pennsylvania and being the first to go to college and where tech athletics stand today, ceo. his story is my latest everyone talks to liz podcast and it is going to inspire you to reach high as well. available on apple, google, spued fie, wherever you get yout your podcasts. we're checking the dow, 30 minutes away. six stock in the green here led by united green group and goldman sachs in third. "claman countdown," we're number one and we're coming right back. ♪
a 24% pay increase. it also allocates $1,000 a year in bonuses, both of which are retroactive to 2020. railway workers will get an extra day of paid leave per year and that make it is easier to take medical leave as well. workers will pay a large share of health insurance costs but premiums capped at 15% of the total plan cost. president biden saying this afternoon that the agreement sidesteps what could have been a major supply chain disaster and says railroad workers deserve the new deal having held up the economy during the lockdowns. >> during these early, dark, uncertain days of the pandemic, they showed up so every american could keep going. they worked tirelessly through the pan pandemic to ensure famis and communities got what they needed during early part of the difficult years and the rail
workers will get better pay. liz: and health benefits as well. railroads move two fifths of long distance american freight and one-third of exports. when the trains aren't running, the system falls in great far on the shoulders of the trucking industry already suffering severe driver shortages. enter kodiak robotics looking to ease snafus and the company's autonomous freight services have the ability to travel 5,600 miles in less than five days and has successfully completed a full trip from texas to california then to florida and back. joining me now in a fox business exclusive is the company's cofounder and ceo don bernards don burnett.you made it happen. how difficult would it have been knowing we're down 80,000
truckers at this point? >> it's really challenging. so americans are pretty intimately familiar with the supply chain crisis is the a point and certainly disruption in the rail industry is going to only exacerbate that problem. real every day people are feeling the challenges there and that would certainly increase the burden on the trucking industry for sure, but as you mentioned the trucking industry itself is facing quite a shortage and really when you think about this, it's all about the resiliency of the system and ultimately that's what we think autonomous trucks will deliver. liz: yeah, the driver shortage has been chronic. this is a very tough life to live and very isolating. especially when you saw diesel fuel prices and a lot of these independent truckers were having to pay, it just wasn't making financial sense so we lose even more truck drivers. tell me exactly how your autonomous driver works. >> sure. so we're foe cussing on as you
mention the toughest portion of the overall trucking industry and that's the long haul, over over-the road servd that's hundreds of thousands of miles over the highways that trucks have to drive. there's a lot of great truck drivers in the country but what we're see asking that most of those truck drivers would prefer to do the local regional driving and sleep at home at night, see their families every night, so the challenge is really on the long distance routes. what kodiak is delivering is a fully integrated autonomous driving system and can drive safe, reliantly "coast-to-coast" and effect the comply chain and there's otherwise drivers that continue want to do the job. liz: what challenges did the
autonomous driver face, i guess, and how did he get over it? i know you had a safety person in the cab of the truck just in case, but did you ever have to use that person? >> absolutely. so it's really a testament to how capable this technology is that we're able to drive so broadly. we got our start in texas based out of dallas and we've been really focusing on texas for the last three and a half years and now in 2022, we're showing that this technology can be applied broadly across the u.s. interstate highway system. of course there's lots of challenges that you encounter. we encountered weather in the southeast. there's always, you know, really tough traffic conditions, but our system is able to handle those. we can drive over bridges, through tunnels and in weather. we operate day and night. we have a safety driver monitoring the system but within the next couple of years, you'll see the system able to drive without a safety monitor in the cab. liz: you've got --
>> the system still requires that driver today but soon the driver won't be required. liz: there's a partnership with pilot j, these are truck stops and auto stops as well. warren buffet is an investor in pilot j. my interest here is how do you gas up if there's no driver? >> well, we're working on a hub to how about model for our autonomous systems. the autonomous truck will driver from a highway adjacent hub or terminal if you will down the highway to the other end where it will pull off and pull into another hub or another terminal. we'll have a person stationed on the ground in those facilities who can then hop in the vehicle, pull it up to the fuel island, fuel the truck just like the trucks have been traditionally been fueled. liz: i see. i see. okay. where does this go from here? you began at google as a software guy helping on their autonomous vehicle project,
which eventually became wamo and we've covered them extensively and developed auto bought by uber and that was ai and autonomous. where do you envision kodiak really going? >> absolutely. as you mentioned, i've been working on this technology for over 14 years. i've seen a lot of challenges that the industry has faced, and i've seen this technology come from basically a fledgling research product into the production system that it is today. really for kodiak this is about showing the public and demonstrating our safety capabilities broadly across the u.s. highway system, working with folks like pilot on these terminals, working with commercial partners as we've announced recently to demonstrate the feasibility of this technology to provide the resiliency to the supply chain and value on the long over-the-road routes.
liz: do you foresee a full-time without truck drivers? that's part of the reason why there's a large quit rate. they don't know if they'll have a job in the next couple of years. liz: people have to realize this -- >> people have to realize this will be a very slow gradual transition. we like to say truck drivers that are driving today are going to retire as truck drivers so this shouldn't scare anybody. we want to do those jobs that the truck drivers don't like doing and the trucking companies are having a lot of hard time finding and filling those roles so it'll be a very slow and gradual transition, it's not going to happen overnight like a lot of people like to say. i think we c still rely on our models, we encourage local and regional driving, which is what truck drivers want to do and works basifier everyone and helps provide resiliency to the overall supply chain. liz: don, we'll watch this development and it's really fascinating. thank you so much. keep us posted. >> thank you. liz: investors riding the
so many people are overweight now and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now, there's golo. golo helps with insulin resistance, getting rid of sugar cravings, helps control stress and emotional eating, and losing weight. go to golo.com and see how golo can change your life. that's g-o-l-o.com.
liz: okay, what we're definite i getting a rate hike next wednesday. that's what the market absolutely believes with higher rates on the horizon. wall street now predicting a slew of bankruptcies and restructuring of companies that failed to make good on their debt payments. something the big banks already are posed to capitalize on. let's get to charlie casamino. does this -- gasparino. does this mean the banks will be putting out restructuring? >> absolutely. the market is starting to trade like we're getting a one point, not a 75 basis point. i believe the 1 point when i see it -- 100 buy sis points when i see it but that's how i see it because it was up today. yes, listen, every major bank including morgan stanley and momorgan stanley came out and sd
we don't have plans. that means tomorrow we're going to start. it's one of these corporateoeuphemisms and across the board they're looking at cuts. one place we know they're not looking at cuts is in their restructuring departments. these are not the biggest departments on wall street, but they -- and they almost got a bit of a jolt to life during the first three months of the pandemic where there were bankruptcies and because of all the aid -- the fiscal policy that aid in businesses because of the ppp loans on top of all the stuff they gave to airlines and on top of all the stuff they gave out including very low interest rates, that helped with banks lending to these companies, you know, you'd have to be doing something really special to declare bankruptcy after, you know, up until very recently. we've had some bankruptcies
recently. revlon was a zombiish company. liz: because interest payments were due. >> bed bath and beyond is on the verge and it's starting to happen. wall street is basically looking at this picking up steam even more and being a sort of growth area for restructuring. one firm, that's talking about expanding their restructuring department fairly significantly according to how many people i have that, it's morgan stanley and there's no comment and they're not denying it but we understand that they're clearly looking at potential that there'll be so many -- with rate hikes, with companies unable to make debt payments because they borrowed to much. with so many zombie companies in debt, they're going to have a lot of restructuring work and they'll be doing a lot of stuff with bed bath and beyond type -- liz: explain what restructuring guys do. >> they do a couple things. if you're in company and can't pay your debt and roll over at
decent terms and it's difficult because of interest rates going up, you need to sell stuff and started restructuring your balance sheet or you do stuff that gets you in bankruptcy or do what's known as prepackage bankruptcy that's a precursor to the full chapter 11. you basically restructure your operations. you try to cut deals with bondholders and try to say, okay, bondholders, you owe part of our company now. can you give us a break and we lengthen out maturities and all this stuff is heavy duty financial engineering. there are outside firms that do this for a living. that work with the bondholders of puerto rico to try and -- its
not really seeped into the broader fortune 500 so-to-speak just yet. a lot of people predicting it l. i don't know but i can tell you when wall street starts looking at this, they're saying this can get pretty hairy. we should point out there's never been a money printing interest rate experiment like over the last three years. encouraging borrowing debt at some extremely high level. the leverage loan market is 1.5 trillion market. it's grown. this is pretty big stuff. a lot of companies are in debt. and a lot of these companies, you know, who knows how they manage their operations. apparently a lot of these loans the way they work, you get a -- it's a four-year loan or
five-year loan and you get the balloon payment to pay it back at the end. liz: >> thinks of 2008. liz: mortgages. >> 2007, 2008. almost the same thing. you hope to refinance it at lower rate. banks are going up, banks getting stingy. you need to do what i said, restructuring. one company looking to expand it, where i have had conversations with people that know exactly what is going on morgan stanley, if they're doing it, jp is doing it, goldman sachs is doing it. this is trend, something to keep an eye on. it will be a interesting story, the story is not one of growth, ipo growth. ipos are getting crushed, right? deals are getting crushed. it is about something else. it is restructuring because of too much debt, higher interest rate environment. liz: charlie -- >> did i put the viewers to sleep on that one? liz: i was riveted. >> [laughter]. liz: i was riveted.
>> there was no, you didn't yawn, you didn't move your jaw like yesterday. liz: my god, you outed my tmj. >> you weren't doing tmj movements. >> charlie, thank you. i'm wide awake, the closing bell, four minutes away. dow and s&p at closing levels since mid-july. clock it here, 30,996 for the dow. we're at 30906 for the s&p. loss of 39 points. last week, dow, s&p, nasdaq they all plotted gains for the week. this week we're on track for red arrows of tomorrow's closing bell. in this atmosphere, up, down, all around. very hard to gauge where individual stocks may head. our "countdown" closer says the solution lies in this atmosphere, basket of stocks that help you catch a sector wave without getting swamped by a single stock that takes a hit. joining me tom lyden who manages
more than $6.6 billion. give us etfs right now you feel will catch a wave in this very weird atmosphere? >> well, etf flows can tell you a lot, liz. we've seen over $400 billion in new money coming in this year. we're on path for the second biggest year of flows. so in a time when equities, fixed income have been challenged it is very telling. we're also surveying advisors all the time. off of the june 16th lows, we've seen additions back into growth, back into the s&p but more importantly back into small caps. when you look at some small cap stocks there is advantages because, a, they're nimble, and most importantly, they're not affected by falling foreign currencies. they do most of their business in the u.s. which is great. also they're in a situation where they can buy, good and services overseas.
iwm, russell 2000, that is great advantage. utilities tend to do a great job, time when market is not doing as well. we're thinking about recession. because people are always going to pay for water, pay for recycling, pay for gas, pay for electric, pay for sewer. that is not something we get rid of, look at xlu, the state street utilities etf that is up 16% off the low. liz: that is the dividend play there which is nice if you're in utility. >> almost three% people looking for safe dividends. all of these are reflects around the dollar. we're keeping an eye on the dollar. the dollar up 6% off the recent equity lows. boy, i know you have got your trip booked toe paris, don't you, liz. liz: yes i do. i will be there in november, thank you. and the dollar ask crazy strong. i will not tell but the pair of shoes and deal i got on those.
>> i know. liz: uup is up 18% year-over-year. it has had a very nice move, 14% year-to-date. you think this still continues? >> it will. well, especially, when you think about europe, think about the tension over there. you think about the energy situation as we get into the fall. we get into the winter. it tends to be during these times of uncertainty, that globally investors go to safe havens like the dollar. liz: tom, before we go, the etf concept, this way, if you're in a big tech etf, you still catch the upside move from some stronger names, right? instead of getting swamped by one, for a doak bee today, it is really getting hit hard. >> back to what advisors, advisors are smart. they now are feeling like hey, stability here. sure the last week wasn't that great however more have been sidelined growth and technology are now seeing some pretty big buying opportunities. they're picking their spots.
so for investor they don't have to be concerned. there are ways to sidestep general areas of the market, like big cap, those megacap companies that have been challenged in those tech companies that have been challenged over time. [closing bell rings] liz: great to see you, thank you very much. tom lyden. there are the closing bells. health care, financials only sectors to the upside. the dow closes below 31,000. we'll see you tomorrow. ♪ larry: hello, folks, welcome to "kudlow," i'm larry kudlow. so just hours before the deadline much-feared railroad strike was finally settled. now that's a good thing because it would have wreaked even more havoc on already slumping economy. supply shortages would have driven inflation even higher. as far as the settlement goes i don't know every detail yet but the headlines sounded rhinably reasonable. basically it's a 24% wage hike over fiv
IN COLLECTIONSFOX Business Television Archive Television Archive News Search Service
Uploaded by TV Archive on