Skip to main content

tv   The Claman Countdown  FOX Business  November 18, 2022 3:00pm-4:00pm EST

3:00 pm
thththk abouououall l l e rororf finananaing ananand thththe gogd wiwiwi theseseseolksithousehehed 5 billlllland rararaing $6 b a a a 21 1 1 unds raiaiaid 60 o o oilli valalalat 6and 're beg ciciciumstananand allthp fighghghng a a a stop p p ing du it's's's l l l oneneney y y d nsnsnse and d d es not helelel er to m... liz:z:z:hat t t bsolutututy e truth. somememef the smsmsmtestplplplwe d,d,d,harleseses es notototired oquit.nearshehehe
3:01 pm
i'm m m oking my y y tch, o hohohos tillllllewwner e e en adquarararrs of r r r th bathththom fixxpxpxpts yououou o shshsh up wihort t t thnicalalal inte and w w wts theto helplplpimetter undededetand t t techchchtat. d shouououn't bebebeaying g g tn that's's'sll i'm s s sing.e e ck keepepephe lock k k ithsn calllt alalaltimes s s d d d n't ki thm out ofuildininin ch no, w w we sasasat theee arles:s:s:e can'n'n'get out t te bububuding... hate t t tetelon mk sasasa willl be m d d dboostetete tweeeeee, , , a. and thththbears atatat t t thoud ofake e e ch othn n n thehehe jones inininstrial a a awingandw
3:02 pm
ints aussellllll iup byyyp abob2 e e e p upupup s s soints s s vy rrow t r r rge here.e.e. tion a streteteting g g t theohy mean,n,n,he theoooooo e s&p,p,p,ot mucucuch h h fferen nday morninini t brororoerndexre enpiked tuesesesy, onlnlnly to retrtrtrt lateteteonuesday, then rea a a t. sdsdsd it plplplmeteabout 505050 po retaililil stockckcks s s oughot lease e e st 48 8 8 urs ha ship.erovidididi balalall bababo kohls,s,s, tododod on n n urcren otocker up 7 7 75%, veryryrytot. rororo numbebebe for t q q qrte. ross s s sres up neaeaeay 101010
3:03 pm
anananthen i i if you u u ok ate gain of f f what's's's- and beat t t ird qur esesesmatesss, ananan you d d d't heaththth t t ofiting stststdy d d dand fr of acececeluent cucucuomersss ril.ititformalalal d d dssesnd a ewewew thahahan n n ve bgegege-- rerere p righghght nois at t t 3.49...5 it'sd 61% sisisijust oc1st. ag on e e e rkets,s,s, it'got to be energrgrg righththt tatata a looooook at crururuil e aftetetearket n n n oppingngng about 2.333333 b b b moreee imtltltl therice, $79.9.9..ringn crcrcrdipped belowowow $797979a, it's's'she w perererrming g g p ororor w and concncncns abo receseseson no here e e t t t.s., but
3:04 pm
globobobly, , , peremand d d ll down.n.n. he s&p&p&p 500, dididiondbacdown abououout 4%4%4%, mamamathon, a, g reurces all decently in the rehere. all right, after a week where we saw the october producer price index show actual indications that inflation is cooling at the manufacturing level, just a day later we got retail sales for october which showed consumers spent more than expected. so that's a bullish sign for the consumer. i mean, which is it? could any of the data provide a spark next week for either a bull run or a bear attack? because thursday, that's right, turkey day, it's the holiday, we're going to get a mass data dump ahead of it on wednesday. we're getting durable goods numbers, manufacturing numbers and jobless claims. might one of these be the catalyst, and in which direction could it move stocks? to the floor show, trader keith
3:05 pm
fitzgerald joins us live along with ubs managing director jason katz. okay, i want to start with keith right now. what does this price action tell you after a week that pelt like it was chock -- felt like it was chock full of pedheads yammering away, scaring the markets and, obvious, conflicting data? >> well, it's exactly what you said. it's like watching charlie brown in the old days, you know? i think what we've got to do -- [laughter] i think you're putting stuff on sale that shouldn't be on sale. so particularly tech and emergency, the laggards today, i think they're setting up for a classic run higher. this is scare all the weak money out the week before thanksgiving, traders are starting to go on vacation, volumes are thinning out, this is normal play to win or don't play. liz: all right. it feels like risk off for investors as they wait for some type of catalyst. >> yep. lee les all right. jason, what do you expect could be the catalyst, and do you think that's the right tack to take by investors at the moment?
3:06 pm
>> >> well, we've gone from obsession over inflation and now all of a sudden to not as worried about that. now it's worries about recession. and, look, the fed has said heir going to build this bridge 100 feet too long, better that than 100 feet too short. so the fed's going to hang around a little longer than we'd all like, so i think that markets are going to be really on edge here. we may because of seasonals run up to 4100, but don't see a lot of catalyst for much putt than that at least in the near term. liz: citi last friday, keith, was saying there will not be more catalysts until november cpi which come out the day before the december fed meeting and, therefore, you should get rid of your shorts on the s&p 500, go long treasuries because right now they've got terrific yields, but what else? i know you're a stock guy. >> well, i mean, i'm an opportunistic investor. right now you go to stores that are on sale.
3:07 pm
you don't go to 50% more sales. you cannot afford not to have technology protection. crowdstrike, for example, is one of the best players in the business. revenue, customer count, all those numbers are going in the right direction. the price is simply divorced from value right now. liz: yeah. we have seen prices though, in many cases, come way down. jason, charles payne was just talking about sam bankman-fried, saying he's a kid wearing a t-shirt and shorts and playing video games during fund raising calls and things like that. it feels like, as you have made the point, that it's no longer cool to sit at the kids' table -- >> or the cool kids' table in this case. liz: yeah. >> what i mean by that is what's taken us to the party over the last decade is not going to take us home. everyone's a creature of habit as an investor, and they clam clamor on terms of what has worked. lately it's been value, cyclical. the best offense is sometimes a good defense. so i'm long things like consumer
3:08 pm
staples. i am get exceedingly long health care which is, arguably, our number one sector choice. liz: health care. okay, that is very defensive. can i just say, you said the one that really kind of took you not party or is not the one to take you home, i'm hearing you say technology. >> that's right. i mean, look, 60% of the earnings from technology come from overseas. the dollar's weighting on that. you have consumer spending down, business spending down, ad spending down. you're seeing light club where the lights have come on, and all of a sudden the party's over because you see what you're dealing with. you're dealing with earnings that are probably not going to justify some of those multiples. liz: go ahead, keith. >> if i may, you know, and i think the world of jason, he's absolutely on it, but i think the distinction we've got to draw is not all tech is the same. it is a very different proposition to invest in an apple versus a peloton, a caravan that versus a microsoft. if you're making investments in tech, you've got to steak with the companies that are moving forward -- liz: but isn't that, see, this
3:09 pm
is what makes me nuts, keith, chips. everything needs a semiconductor, yet that looks like a very anemic trade day in, day out even when some companies are actually coming in with good numbers. >> well, i would submit you're absolutely correct. but that is political buffoonery. if you with operate under the assumption that sooner or later china's going to make a move on taiwan, we're going to have to bring those things home. so if you believe in that, u.s. chipmakers are going to be going to the bank because they're going to be the only place you can you can get the return and supply that you need. liz: warren buffett bought taiwan semi this week, and he's a longer term investor. >> chips are much more than just the pcs. it's the internet, everywhere. and i would agree with keith, it's not all tech is created equal. look at palo alto today. cybersecurity, the back end of
3:10 pm
technology. that's where you really find the opportunities. not so much in the seven names that have driven the s&p and the nasdaq in the last decade. liz: you know, taiwan semi is a $426 billion market cap company. that's the one we really need to show, and here it is. this is the intraday picture. it almost looks like the rest of the markets. it starts up, starts moving all over the place, and right now it's pretty much where it began the session. jason, keith, thank you very much. hope you have a wonderful holiday. in the meantime, this, i've not seen an ipo like this. we've got an epic coming-out party for the world's largest social networking app for gay, bi, trans and queer people. wait until you hear why trading had to be halted 17 times and counting. we've got 50 minutes left to trade, and grinder's ceo is joining us next on how he plans to keep this momentum going. yeah, what is his plan?
3:11 pm
"the claman countdown" is just getting started. back in a minute. ♪ ♪ kevin, where are you?! kevin?!?!?.... hey, what's going on? i'm right here! i was busy cashbacking for the holidays with chase freedom unlimited. you know i can't believe you lost another kevin. it's a holiday tradition! earn big time with chase freedom unlimited. ♪ ♪ your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit this holiday season save big on all the gifts you need for the gifts that keep on giving. because while they have no idea what's going on here... -hi. -...a little something of their own will get them in the spirit. they don't know why you'd ever leave the house like this... but they'll happily hold down the fort while you're gone. -smiles! -and let's be honest, they'll never understand this whole situation...
3:12 pm
but they do get this. thank goodness. great prices. happy pets. chewy. we're here today to set the record straight about dupuytren's contracture. surgery is not your only treatment option. people may think their contracture has to be severe to be treated, but it doesn't. visit today to get started.
3:13 pm
3:14 pm
3:15 pm
liz: a huge number of investors in the spac that took dating site grindr public odd are kicking themselves at this hour because they opted ore deem their stock for $1050 a share rather than -- 10.50 rather than participate in the merger, and look what they've left on the table at least so far? on its first day of trade, share9 of the dating app are -- shares of the dating app are jumping 184%. they went as high as 400% at the moment, but the stock is trading at $33. demand stark -- sparked so much volatility, the stock has been
3:16 pm
halted 17 times so far today. 45 minutes left to trade. the site is valued at $2.1 million. the los angeles-based dating app looks to further monetize it platform. grindr, arguably the most popular dating app with is 11 million active users. grindr says users spent an average of 66 minuteses a day on the app. together hose two, bumble and timber, only 32 minutes. how can grindr keep the momentum going? ceo with george arrison joining us live from the new york stock exchange on quite the day, george. i mean, you and your team were probably hoping for a warm welcome, but this is really over the top. what has today been like for you in. >> today's been amazing for our team, it's been aamazing for our users, i hope, and it's been amazing for equality and freedom in america. i'm here in the middle of the
3:17 pm
cradle of capitalism taking a company that was built by gay people for the lgbtq community, and it's done so well, it's actually kind of incredible. and to do that in a week when gay marriage was approved by the senate is even more surreal and awesome. liz: well, yeah. as we, a business network, look at this, i cannot remember a stock that was halted 17 times on its first day. to what do you attribute the interest? >> i think, well, partly there's a little bit of we don't have a lot of float right now because of the redealts, so probably that had an impact but, look, we have a great business. it's not a lot that you have public companies in technology that are both making money like grindr does and also growing at, you know, 30, 40% a year. so our job is to continue growing our business really nicely as we have by monetizing our product if being profitable which we'll continue to do, and that, i think, puts us in a really awesome position.
3:18 pm
grindr has an 85% awareness in the community which is super unusual to have given that we spend virtually no money on marketing. so that obviously helps our margins to be really strong, and it helps us to be, i think, where we are. liz: can i just clarify something, because you said we continue to make money. yes, you do make money but, you know, you had a net income loss of $4.3 million in the second quarter versus a $1.8 million profit a year ago. >> yep. liz: i get that you were spending money on going public, but this is not going in the right direction. how do you plan to turn it around, and will you be profitable as in right now or going forward? >> well, i think for next year we'll definitely be targeting to be profitable. year there are a lot of definite one-time costs when you go public, so that had an impact on our profits for q2 and q3, but we feel really good about our ability to generate revenue and do it at a low cost to be
3:19 pm
profitable in the future. liz: okay. your subscription price, $19.99. do you have any plans to either raise that, lower it? you're just going to keep it the same? >> yeah, so we're very early in our monetization joinny. one of -- journey. one of the things we want to experiment now is actually offering a lower-tiered subscription as well, right? our subscriptions do very well, but there's probably a set of functions that people would want at a lower cost range and also a higher priced subscription where we offer more functionality for someone paying a little bit more. we think creating that diversity makes sense. obviously, we need to test this, we won't launch it right away. but one of the unique things about grindr is while it's a very advanced product in terms of revenue that it generated, it's very early in its monetization journey. a lot of the functionality that our peer companies in the space
3:20 pm
already offer we actually don't offer for pay, and and so we have an opportunity to really kind of grow our revenue by just catching up in the functionality and in the pay functionality that our peers are already doing. liz: well, let's talk a little bit though specifically about the space itself. it is crowded, but so what. [laughter] so have been many different sectors are where a knew bee e -- newbie came in and just slayed everybody. match, for example, has had a very rough rear. match is down 65% year to date. bumble, down 30% year to date. so all of these promises of much better profitability for a company like bumble, i mean, investors aren kind of still waiting. >> yeah. well, we've proven that we can have a lot of growth already, we've done that really well for the last couple years, and we'll continue to do that. for us i think we do have a very engaged user base. you mentioned in the beginning people spend 61 minutes a day in the app.
3:21 pm
it's kind of incredible when you think about that. we released the data point that over 250 million messages sent a day in the app last year on average. i mean, those are pretty amazing numbers. of course, the users are the ones that make that a happen, so we are really grateful for their support for the product. but with a base like that, i think it's a lot easier to be in that position where you're positioned on growing in a profitable way which is what i think all good companies should do, and in this market it's particularly important: liz: you just put on the ceo hat in october. and there's a little bit of controversy that we should certainly address here and that is that you have made some somewhat controversial statements not just that you support conservative thought which, i believe, most of your, most of your people on, who are on the site are okay with. but because specifically you've voiced support for glenn youngkin, and glenn youngkin has been somebody who has talked about reversing certain things about gay marriage and grgs ay
3:22 pm
partnerships and gay benefits. what do you say to people who say, wait, why do we have this guy running the company? >> well, look, i think that my job as ceo of grindr is to build the best product i can build and help people connect to each other, and i'm very much focused on the future. i am a massive beneficiary of the incredible advances that this country's made in terms of gay rights and, obviously, we're not fully there yet. there are a lot of evil things that are happening in a lot of places towards people in our community, and grindr does a really good job in fighting those, and i hope to be at the forefront of making sure that a we continue to fight for the rights of our users and the lgbtq community at large. and, obviously, any politician who wants to take those rights away is, frankly, very wrong. but the flipside is this week 61 u.s. senators including 12 republicans voted to pass, you know, codify gay marriage in federal law. that's a pretty awesome achievement, and we need to
3:23 pm
focus that insuring by working together we can have more legislative wins like what happened in the senate this week. liz: well, as we were speaking, we started off with a gain of 175% on the stock is, but we have a very motivated investor audience who's been listening. you're now up about 204%. let's see what happens between now and the is rest of the session, george. thank you so much. >> thank you so much, i appreciate you having me on. liz: the ceo of grindr. halted 17 times. i don't -- can somebody let me know if that's the most ever? [laughter] all right. general motors is secretly hooking up with tesla owners. we're going to tell you what that's all about. and it is sentencing day for elizabeth holmes, the theranos founder guilty of bilking investors out of nearly a billion dollars. folks, we have just gotten word from the courthouse that they still have not sentenced her yet. there is so much drama going on in that courtroom as we speak, we are going to get reaction and the latest update from a white
3:24 pm
collar defense attorney in just a moment. closing bell 37 minutes away. the dow is holding on to gains of about 113 points. we're coming right back. ♪ ♪
3:25 pm
trelegy for copd. ♪birds flyin' high, you know how i feel.♪ ♪breeze driftin' on by...♪ ♪ know how i feel.♪ you don't have to take... [coughing] ...copd sitting down. ♪it's a new dawn,...♪ ♪'s a new day,♪ it's time to make a stand. ♪and i'm feelin' good.♪ start a new day with trelegy. no once-daily copd... ...medicine has the power to treat copd... as many ways as trelegy. with three medicines in one inhaler,... ...trelegy makes breathing easier for a full 24 hours, improves lung function, and helps prevent future flare-ups. trelegy won't replace a rescue inhaler... ...for sudden breathing problems. tell your doctor if you have a heart condition or high blood pressure before taking it. do not take trelegy more than prescribed. trelegy may increase your risk of thrush, pneumonia, and osteoporosis. call your doctor if worsened breathing, chest pain, mouth or tongue swelling, problems urinating,... changes, or eye pain occur. take a stand, and start a new day with trelegy. ask your doctor about once-daily trelegy... ...and save at
3:26 pm
3:27 pm
3:28 pm
liz: tesla shares are hitting a 2-year elope after the company said it has recalled nearly 30,000 model x cars in the u.s. over an issue that may cause the
3:29 pm
front passenger airbags to deploy incorrectly in certain low-speed collision events. shares down about 1.5% right now. the ev maker, in a letter to the ntsa, said that the problem will be addressed through an over the air software update. separately, tesla inadvertently, and this is really interesting, providing competitor general motors with a unique money-making opportunity. finish during gm's investor day yesterday, the president revealed that fixing teslas is a new and growing business for general motors. since 2021, gm dealers have repaired more than 11,000 electric vehicleses manufactured by tesla. tesla does have is a service network, but it has a had difficulty keeping up with the ev maker's rapid growth. plus, most americans apparently live within 10 miles of a gm dealership, so anybody with a tesla says let me go to gm. tesla expects its -- general
3:30 pm
motors saying it expects its ev development department to be profitable by 2025. rent the runway taking a stumble off the catwalk, down 15.25 the % at this hour. hover began -- morgan stanley downgrading from overweight to equal weight and cutting its price target there $10 down to just $2.50. they're a little behind, the stock's at $is 1.32, citing slowing traffic to rent the runway's web site. and in the last few hours, the u.s. department of justice has opened an antitrust investigation into ticketmaster parent livenation entertainment. the stock of livenation down 6.8%. koj investigation comes in the wake of the taylor swift concert ticket debacle that caused ticketmaster's site to crash and forced some fans to wait hours and hours to secure seats for swift's eras tour coming up.
3:31 pm
others were left empty handed. more than 2 million tickets were sold during the presale on tuesday, and the general sale was scheduled to open today, but ticketmaster canceled the whole thing yesterday saying there were simply not enough seats left. the singer herself saying it was, quote, excruise shading for me to just -- excruciating for me to just watch mistakes happen with no recourse. she continueed, quote, we asked them multiple times if they could handle this type of demand, and they assured us they could. all right. let's get to the ftx calamity. we've been telling you we're seeing a domino effect from the crypto exchange's stunning collapse on the rest of the crypto industry. coinbase down nearly 7% right now after bank of america global research cut its rating from buy to a neutral. the bofa analysts say coin coinbase is not another ftx, no, no, no, but that it will likely feel the pinch from the broader fallout.
3:32 pm
separately, analysts say the ftx collapse marks a detier rating industry which will hit all platforms. were about to get more on ftx. charlie gasparino's got more on that story as it develops. but in the meantime, this: we're on the cusp of a busy holiday season. but before it gets too crazy, we at fox business feel it's pretty important for all of us to take a moment to be thankful. i am thankful beyond belief for my two children, gabrielle and julian. i have had a front row seat watching them go from devil children -- i'm sorry. [laughter] i meant sweet children to -- [laughter] am so,o,o,o o o ulo lililialib.d
3:33 pm
rtrtrty y y goodod citizens will always prevail. we're coming right back. ♪ i'm so glad we did this. i'm so glad we did this. i'm so glad we did this.
3:34 pm
i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones ♪ ♪ mercedes-benz is turning electric...
3:35 pm
completely... on its head. bringing legendary design... and state-of-the-art technology... to a fully-electric suv. the all-new, all-electric eqb from mercedes-benz. what should the future deliver? (music) progress... (music) ...innovation... (music) ...discovery? or simply stability... you shouldn't have to choose. (music) gold. your strategic advantage. (music) visit
3:36 pm
3:37 pm
3:38 pm
liz: we've got some breaking news out of silicon valley, serious wrangling going on inside a san jose courtroom at this hour as the fate of elizabeth holmes, her nose founder -- who is facing up to 20 years in prison and nearly $804 million in restitution payments for defrauding investors -- could be announced at any moment, maybe it could be much longer, but holmes arrived at court for her sentencing at 1 p.m. eastern time this afternoon, and the hearing is still going on after a long series of objections from the defense. back in january holmes was
3:39 pm
convicted by a jury of three counts of wire fraud, unone count of conspiracy related to her now-defunct blood testing venture. at its peak theranos was valued at $9 billion. making holmes the world's first self-made female billionaire at the teem with some even calling her the next steve jobs and peteing her on the covers -- feating her on the covers of all these mags. holmes' theranos proprietary blood analyzer, she claimed, could run lab tests for more than a hundred different diseases on just a single drop of blood, but it was a fraud. claudia cowan live outside the courtroom. what's going on inside now in -- now? >> reporter: well, liz, because of all the legal wrangling over sentencing guidelines that's taken up this hearing so far, it could be a while before elizabeth holmes learns her fate. and she may also address the court herself in a last ditch plea for mercy.
3:40 pm
but she had nothing to say to reporters earlier today when she arrived wearing a black suit, holding hands with her parents and her boyfriend and clearly pregnant. she faces 20 years in federal prison and hopes sympathetic letters to the judge from her friends, family and even former colleagues will result in a lenient sentence. the disgraced theranos founder was convicted back in january on four counts of fraud after a jury found she knowingly lied about the effectiveness of her blood testing technology and bilked investors out of millions of dollars. according to court filings her row plantic partner, billy evans, sent a 12-page letter to the judge last week letting him know holmes is expecting their second child. they already have a 1-month-old -- 14-month-old child, and describes her as the best person he's ever met. the judge has received other letters of support from from investors and employees and even new jersey senator cory booker
3:41 pm
who wrote that holmes, quote, has within her a sincere desire to help others, to be of meaningful service and pezs the whats i to redeem herself -- possesses. no cameras allowed, of course, but we just got our first courtroom sketch cans. the defense says holmes should be sentenced to house arrest and community service, avoiding any jail time. federal prosecutors want her to get 15 years behind bars, pay theranos investors more than $800 million in restitution and many court today they've been talking about how she displayed a, quote, reckless disregard to victims. holmes has repeatedly tried to get a new trial to no avail, and as soon as she is sentenced here, her defense team will file an appeal. so a big question here, liz, will elizabeth holmes get to stay at home while she appeals her conviction or if he does get jail time, will she be ordered to start serving that sentence right away. remember, she's a new mother, she's pregnant again, and she
3:42 pm
has no criminal record. those could be factors in the judge's ruling. we'll let you know what happens. liz: oh, yeah. interrupt us, claudia, if something does happen. thank you very much. right will at at the courthouse. cofounder, managing partner and criminal defense attorney has represented defendants in a wide variety of criminal cases including white collar crime and health care fraud. so, rachel, as we await the judge's decision, what's your prediction knowing and having been a lawyer in those types of courtrooms, how long or if at all she'll spend in prison? pleasure. >> i think what is most instrumental in this prediction is what the probation officer has recommended to the young. to the judge. so you have the prosecutor's recommendation of 15 years, you have her defense team's recommendation of house arrest, maybe 18 years max incarceration. and then you have probation
3:43 pm
officer recommending 9 years of prison time. and that isly what -- generally what the judges pay the most attention to in cases like this. that is a recommendation that is supposed to be neutral, taking into all the facts, all the considerings and making a thought-out, middle ground recommendation in this point. so i believe 9-10 years is where we're going to end end up today. liz: there is a major focus right now on this case as far particularly as silicon valley is concerned. because there were some people who simply argued-overzealous cart before the hours salesmanship -- horse salesmanship. but instead, a jury actually said, no, this was outright fraud. she was lying and she hurt a lot of investors, and, you know, she didn't get convicted on the you hurt patients who believed some of the erroneous results.
3:44 pm
but what about the algebra of deterrence? this concept that, simply, you can insure that the penalty is meaningful enough in order to send a message to the rest of the world that these types of behaviors and occurrences must stop? >> i think that will not be lost on the judge, has not lost on this case. and the jury's finding was certainly not that it was overzealous, that it was knowing. and at one point in time maybe it was overzealous salemanship. but what had happened through time and through the amount of money raised was knowing fraud, and that is the finding. and i think the judge is very aware of that finding, the same judge oversaw balz wanny's case, and this was again the findings here. these people knew they were committing fraud, they were making misrepresentations, and they were getting money based on a technology that did not exist. and that a will send a strong
3:45 pm
message to start-ups in silicon valley -- liz: right. >> finish that they need to do due diligence and be careful. liz: ya wrought up the pregnancp the pregnancy issue. she's clear now pregnant, i believe that was confirmed by her partner in one of letters that, i believe, was put at the very top of the pile of nearly 200 letters in support of a no sentence or shorter sentence for elizabeth holmes. quite a few people are saying that's a sympathy play, she got pregnant -- listen, we don't judge why people get pregnant, but does something like that get taken into account for a lighter sentence? is there that possibility? >> i have seen this done before whether it be pregnancy because she's at the age of getting pregnant, if she's incarcerated, she can't get pregnant again. les so many reasons one could be pregnant at this moment. as for the judge, what i think
3:46 pm
it will more likely influence is the time that her sentence start thats. so if she is -- starts. so if she is sentenced, whatever the term is, they will likely give her time to give birth or, maybe bond with the baby and hen the sentence will start. i do not think the judge will take the pregnancy into consideration though in the amount of time the sentence is. liz: well, there's another scandal before we let you go, rachel, that is brewing right now in the business world, and that, of course, is the ftx crypto exchange collapse. sam bankman-fried, the young 30-year-old who had founded this and it turned out to be pretty much a house of cards. it has completely gone down, and there are investigations right now. what did we learn though from the theranos trial about how difficult it is to prove intent? intent to, you know, produce fraud instead of just, well, i actually believed that this was an operating business, and i believed in it, etc., etc.
3:47 pm
>> in a prosecutor's case, intent is actually always the hardest element to prove -- liz: right. >> -- what was somebody thinking at the time they were making some sort of misrepresentations. now, in this case they were taking customer money and putting it many hedge funds -- in hedge funds and basically gambling with the customer money. that's a little deeper of an intent because those are just plain mess representations that were made. [laughter] as far as that goes. so i think that a they have an easier case here than they did against elizabeth holmes. liz: well, rachel, thank you for talking us up to what is expected to be the sentencing of elizabetesesesn ththerananan l.l.l. shcococose, wawawas cococoicted d d dferentntntounts.s.s. we w w wl inininrrupr prograififif we e e see thththg hit t t e e e res. good tyou, rachehehe thu u u much.h.h. eakingwhich th dgnetme surrnding e x collse may
3:48 pm
le into the charlie has a breaking news next. closing bell, 13 minutes away. the dow is getting a more comfortable lead here, up about 206 points at the moment. we are coming right back on this fri-cay. don't call it friday, liz. ♪ ♪ your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit the day you get your clearchoice dental implants makes every day... a "let's dig in" day... mm. ...a "chow down" day...
3:49 pm
a "take a big bite" day... a "perfectly delicious" day... - mm. [ chuckles ] - ...a "love my new teeth" day. because your clearchoice day is the day everything is back on the menu. a clearchoice day changes every day. schedule a free consultation. when you're looking for answers, it's good to have help. because the right information, at the right time, may make all the difference. at humana, we know that's especially true when you're looking for a medicare supplement insurance plan. that's why we're offering "seven things every medicare supplement should have". it's yours free, just for calling the number on your screen. and when you call, a knowledgeable, licensed agent-producer can answer any questions you have and help you choose the plan that's right for you. the call is free, and there's no obligation. you see, medicare covers only about 80% of your part b medical expenses. the rest is up to you. that's why so many people purchase
3:50 pm
medicare supplement insurance plans like those offered by humana. they're designed to help you save money, and pay some of the costs medicare doesn't. depending on the medicare supplement plan you select, you could have no deductibles or copayments for doctor visits, hospital stays, emergency care, and more. you can keep the doctors you have now, ones you know and trust, with no referrals needed. plus, you can get medical care anywhere in the country, even when you're traveling! with humana, you get a competitive monthly premium, and personalized service, from a healthcare partner working to make healthcare simpler and easier for you. you can choose from a wide range of standardized plans. each one is designed to work seamlessly with medicare and help save you money! so how do you find the plan that's right for you? one that fits your needs and your budget? call humana now at the number on your screen for this free guide. it's just one of the ways that humana is making healthcare simpler. and when you call, a
3:51 pm
knowledgeable, licensed agent-producer can answer any questions you have and help you choose the plan that's right for you. the call is free, and there's no obligation. you know medicare won't cover all your medical costs. so, call now and see why a medicare supplement plan from a company like humana just might be the answer. 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 60% a year. and it's only available to mcsine internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.
3:52 pm
3:53 pm
liz: folks, we have the "wall street journal" just now reporting that ftx's sam bankman-fried cashed out $300 million of investor money just as investors were expanding their probe into the collapse and the company had already filed for bankruptcy. charlie, what do you have? >> lots of information on how how they might go about this. we should point out that i spoke to an investor today, this is how fascinating this thing is. he said one minute on thursday -- when did they declare bankruptcy? liz: friday. one week ago today. >> on thursday he checked his account, his wallet. he had, like $10 million many crypto in there. friday it said zero. liz: come on. >> i'm not kidding you. he's a major player: liz: how furious is he? >> can't believe it happened. he does believe they'll find the source because it's all in the
3:54 pm
blockchain. theoretically -- liz: it's supposed on the digital ledger that can see everything. >> if this is not the case, forget about -- [laughter] blockchain forever. if hay can't find out where this money went, then just kiss blockchain good-bye, because it's not worth the block -- liz: the promise. >> -- the promise that it's on. here's what we mow about federal prosecutors, they are expanding their probe. journal's writing it, we're reporting i. i hear they're looking at calling, as witnesses now, not, you know, targets, people who did business with him. and these are the people that, you know, were the celebrity endorsers. i hear they would like to talk to hem as witnesses. the people he did late stage deals with. he invested their money and what they did, you know, in return, their business dealings. so they're starting to put together a timeline: and here's kind of an interesting thing. i hear that one of their focuses will be on what he was doing towards the end before the thing blew up.
3:55 pm
he was in the middle east, what we know, in september, i believe. and he was meeting with sovereign wealth funds through various intermediaries. is and, you know, they want to know what he was telling hose sovereign wealth funds. concern those sovereign wealth funds. in september they weren't in critical stage about the blow-up, meaning the whole alameda, ftx enterprise of his, but things were getting nasty. the native coin, ftt, was starting to go down dramatically in value. there was a lot of -- so he was out raising money when ftt was starting to implemented load, and ftt was heavily invested in in alameda which is part of the way this whole thing unraffled. so you can see -- unraveled. so you can see where they're going with this. was he going to the investors in the middle east to essentially get money to plug the holes -- liz: shore up the balance sheet. >> -- or was he going there, as most people thought, to get
3:56 pm
money from them so their early stage investors in a potential ipo of ftx down the road. remember, the valuation was about $30 billion. i think that was the funding valuation that they were looking to achieve if they can raise a billion dollars by going overseas. but, and why would you give money to that? because you think you're going to cash out in an ipo where a valuation would be double that, $60 billion, right? so it was so weird because at the time he was looking for that a cash theoretically to help him get the ih -- ipo, his finances were starting to come apart. so what was he doing with that money, what was he disclosing to potential investors. and i'm telling you, that's how these cases are generally brought up, liz. you disclose one hinge, you do something else -- one thing, you do something else. you tell investors that you're in ftx, your money is safe, then it's not safe. you tell an investor in ftx we're raising money for a, an
3:57 pm
ipo, and guess what you do? you use it to plug a hole. you don't -- it's, these untended sort of purposes for cash is where you build a case. again, you know, early stage. you're not convicted of fraud until you're convicted. he's not even charged yet, remember that. liz: right. intent is the hardest thing to prove. and as we wait on, by the way, elizabeth holmes' sentencing, there is still nothing hitting the wires yet, we're just trying to keep you posted on that. but she was convicted of intent to defraud investors. out of a heck of a lot of money. all right. closing bell ringing in three and a half minutes for the week. let's take a look here on friday, dow jones industrials will close down, what did we start the show with, basically saying kind of flat, down just a quarter of percent. s&p down just under 1% and the nasdaq suffering more, down 1.75% on the week. let's bring in our countdown closer, because he says
3:58 pm
investors are playing the financial version of whack-a-mole, and there are better ways to make money. joining me now with $1.25 billion under management, tim pagliara. tim, go for it. what do you mean whack a mole? >> well, it's every time a problem pops up, we're trying to solve it. and these problems pop up faster than they can solve them. so you had, first you had inventory fulfillment issues as represented by target. by the time the inventory got there, nobody wanted it, so they've had to spend the rest of the year discounting it to clear out for new inventory. they're having to guess what the consumers want. then you had the whole issue of chip shortages. now we've got a chip oversupply. you've got a shortage of oil, a shortage of gas, they substituted coal, coal for it. you've got pent-up demand in wages. then you've got a shortage of labor. so every time they attempt to
3:59 pm
solve is one of these problems, something else is coming up, and it's a difficult environment for investors to navigate. liz: well, it's better not to navigate it and simply do what you say is a better path to follow which is what and what stocks might fall into the pick them up from the side of the road because they're actually pretty good val auations -- valuations names? >> i don't think it's an accident that berkshire hathaway now has a much larger market cap than tesla, you know? people are gravitating towards real assets just like you were talking about with the loss of the money to investors with ftx. cvs is another great example of a value stock. honed in on issues and solutions with health care. chevron, you know, is a great value. it became a great value in the face of shortages, but it was a good value with dividends before that. you got companies like williams corp., you've got bank of america.
4:00 pm
pleasure so people are gravitating towards companies that are well capitalized, free cash flow, able to deliver dividend increases and dividend payments, and that's a great place to be right now with all the other uncertainty that we're seeing. liz: just a quick mention, we want to just quickly look at grindr are. of course, it went public today, we just had the ceo on, and it had been halted 17 different times. grindr on the session looks to be up more than 200%. we do have a very big move there. i don't know if we can show that at the moment, but here we go. yep, 200, about 201 is %. and and as we continue to look at the markets on this friday, we want to say thanks to tim, and there you go, the dow increasing its gains here, up 205 points. have a great weekend, everybody. "kudlow" is next. larry: hello, folks. welcome to "kudlow," i'm larry


info Stream Only

Uploaded by TV Archive on