Transcripts For FBC The 20240704

The dime. Liz for a second, the dow was positive. Right now its just straddling that flatline. Charles, i know you know this, we are tminus one hour from disneys earnings, and right now shares of the entertainment con glom9 rate are, again with, kind of straddling that flatline but slightly lower by 14 cents. Shareholders are still processing the big headline last night that penn entertainment, thats the Online Sports betting company, has struck a 2 billion cash and stock deal to partner with disneys espn. This partnership is going to give penn, whose stock right now is doing much better than disney ifs, up nearly 10 in the session, give them exclusive rights to espn bet for ten years. With disneys earnings on deck, this could possibly be one of the most scrutinized earnings calls of the entire season. Considering the disappointing Second Quarter results, investors are very anxious to hear better news from ceo bob iger, but itll take a lot to make them forget that since iger returned to the helm back on november 20th of last year, disney shares have dropped more than 4 while the s p 500 has soared 13 plus. Whos going to come out the winner in this pennespn deal . Coming up, jordan bender of jmp is here on whether the deal will turn out to be brilliant or a bust and for what side. Thats really important. To the markets on this wednesday, weve got some churn as we kick off the final hour of trade. The s p and the nasdaq are on a pace for a second straight day of losses. Right now were watching the dow because it had been in the green. It is still down now though at the moment by about 14 points. The s p 500 in the red by 7 points, the nasdaq down 81. The russell 2000 losing 10 points. Stocks though, you can argue these are slight changes, right . Not big, dramatic swings as investors await what could be a very major market catalyst. Julys read on consumer inflation out tomorrow morning. July cpi, as its called, expected to have climbed twotenths of a percent month over month, 3. yearoveryear 3. 3 yearoveryear. The core cpi is forecast to climb 4. 7 yearoveryear, just onetenth of a percent cooler than junes 4. 8 number. A surprise either way, you could argue, could gyrate the markets, but there is no denying inflation has come well off the 40year high that was hit back in june of 2022. Finish to the far right side of the screen, you see it there. So as inflation comes down, does that mean the bull market in stocks is here to stay . Lets get to the great scotts, scott bauer from the floor of the cbo, and here on the set, scott redler. Bauer, what is the sentiment down at the cbo right now . Liz, about a half hour ago i went into the pit, talked to about a dozen traders and brokers. Overall sentiment is different from what they want to happen. They would love to see the market continue lower because thats going to bring more volatility, probably better trade. But the overall sentiment is they think we are very rangebound, probably grind back higher going into the september fed meeting. So a lot of chop until then. That doesnt mean that we wont see, as you said, a move on cpi or ppi on friday. A move on the next jobs number, okay . And its actually getting busy here right now. But the overall sentiment is that this bullish market, even though weve sol off a little bit sold off a little bit, will continue at least over the next several months. Liz whatever i am hearing must mean that people are betting the Options Market on, what, volatility . Absolutely. And weve seen volatility come off those the lows that were, you know, the hoes weve seen in two the lows weve seen in two years. Volatility is still extremely low whether youre looking in the spx, at the vix, its still really low are. Now, you do see heightened volatility a little bit going into tomorrow and friday because of the economic prints, but if you look to the next week, it dives right back down to where weve been sitting. So overall, theres still a lot of come play seven is city out there. Liz okay. But i will tell you that these guys out here, at least the ones that that i spoke with, they think were going to have this chop grind higher, but theyre very concerned about the back end of the year, november and december. Liz okay. That is way too far out, although for you longterm investors, come on, right in you make good bets on companies that are quality going through hard times. That brings me to scott redler. Scott, youve made some pretty smart bets lately. The last time you were here, i randomly asked you your side window trade, you said im going long on boeing, and its done rather well since july. Let me broaden the discussion out for a moment. What do you think about the market, the s p, its going, where its been . Well, i agree with your other guest, scott bauer. He said something very smart, that traders are prepare for choppy markets since we put the peak in about two weeks ago. The s p is about 3 off the highs after a 19 plus percent move this year. The nasdaq was up 40 , its down 5 or 6, so traders dont think its enough, Market Participants would rather have a little bit more digestion. Tomorrows going to be very interesting. You know, what the street wants is they want a light cpi, okay . But what the rumblings are is that it might be a little hotter than expected, that thats why we pull in. If we do get e a light cpi, we probably get e a rally, but to me, i dont think its going to be sustained. I dont think were going to be close to the highs of the year in the next few weeks or months. I i think you can get better prices come september, october. Liz a light cpi would mean that the Federal Reserve might pull its foot off the pause even. They will not raise in september. If we maybe get that light, thats what im hearing you say. Thats the thinking. I kind of think that theyre going to go another quarter. They need to continue to stay the course higher for longer and put inflation to bed which which its not yet. Its coming down, but at this point we might get a little bump before it comes down further into the fall. Liz let me ask both of you about whats going on in tech. Today i mean, you cant say its a massive selloff, but there is a techled selloff that has a lot of red on the screen but particularly in the semiconductor area. Scott bauer, one could argue if you look at the socks, it has done so ebb incredibly well. This is the incredibly well. This is the bass with debt of semi basket of semiconductor stocks. Is it profit taking or something deeper here . I think its a little mix, liz. You look at the microsofts and nvidias of the world, the real big guys here, theyre down 10 off of their recent runs. Thats not, you know, thats not that big of a drawdown. But then you look at some of the other ones, some of smaller, you know, nasdaq growth stocks. Take an upstart. An a. I. , lemonade, stocks like that, that honestly have just been decimated off of the big runs that that theyve had. So i think that what youre seeing is a lot of profit taking off of these stocks that have run really, really far. And even though were seeing some of the big guys down a little bit, that profit taking, that cash is going to work with in the better names, in the better names like even a microsoft if down 10 or nvidia. So i think thats what youre looking at there, but there certainly is concern that if we get a hot read tomorrow, thats not good for, obviously, these growth stocks, its not going to be good for semis. You could see a further draw candown. But as you said, at this point its not that much to write home about, it really isnt. Liz redler, im talking to you guys like were on a High School Volleyball team. Redler, bauer. [laughter] what bents are you taking in Technology Stocks that that perhaps are starting to look more attractive . Theyre starting to. If you remember microsoft, apple, netflix, all of them were at alltime highs or 2023 highs into the print were sol off. I want to write down 170ish in apple liz 178. 94 right now. So we still have to be patient. To put a swing trade to work, i think we go lower. Microsoft is off 10 , we still have another 5 to go. Liz okay. Amazon and google react well to earnings, they didnt rally as much into the print, so i think traders are starting to stay with them even though we could see more of a corrective phase in the next 24 weeks. Liz although amazon had such a great response postearnings. Month to date its up about 3. 7 , which is not that exciting, but year to date up 65 . Right. But its still about 30 off the alltime highs, so thats why they reacted well. Apple was at alltime highs, so it had to come off of with a 30 pe, google and amazon did not. They responded well. I think traders are trying to buy the pull in there because the size of their moves prior werent as big or robust. Liz the great scotts, thank you very much is, both of you. Now the dow is down 30 points. The red continues on the screen but in either direction no massive moves. Disney ceo bob iger netting a chunk of money for disney right before the Earnings Report which is out after the bell this afternoon. How big a chunk . A 2 billion cash and stock deal with Online Gaming and Casino Company penn entertainment to launch sportsbook e e spn bet. Up next, gaming analyst jordan bender on whether teaming up with espn will catapult penn or leave it on the wrong end of the bet. Closing bell 50 minutes away. Claman countdown is coming right back. Dont move. 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Before golo, i was barely eating but the weight wasnt 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 wasnt. 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 investors are taking a bet on penn entertainment which is higher right now by 9 . But investors are folding on disneys shares. Not down too dramatically here, but they had been up earlier. Now you see disney down about 40 cents or half a percent. This ahead of disneys Earnings Report that comes out after of the bell. In a surprise deal, the Companies Announced a 2 billion partnership to create an espnbranded sportsbook called espn bet. Penns Sports Betting site will rebrand with the espn name this fall, and the entire holding of barstool goes back to the founder and president , dave portnoy. The entire stake that penn had bought. This after penn if completed its 551 million acquisition of the Entertainment Company on february 17th of this year. Disney ceo bob iger raising the stakes for espn ahead of the companys Third Quarter profit just minutes away. How much value is this kind of partnership really going to add to the Sports Network which is experiencing a subscriber decline . Jmp securities analyst jordan bender has a market perform on penn. Met me just start with this, jordan, who got the better end of the deal here . Well, you know, this is an industrychanging deal on, you know, for both sides of it. On the penn side of it, you know, they divested barstool. That wasnt a business that was working for them. Its a pretty well known fact that for some time that, you know, this wasnt a almost arrangement. On the call today the ceo even said barstool isnt a company that should be owned by a publiclytraded company. So you look at the reaction of the stock for penn today, it just kind of shows that the risk there was, you know, baked in liz youre talking about, lets just for those who havent covered the story the, youre talking about reputational risk. Obviously, barstool has a very young, male demo, and portnoy is still very involve in this successful company. But it got, it got penn into trouble in some cases or prevented it from getting the ability to launch in certain markets that do approve online gambling, right . Yeah, id say that is true. Is and, you know, with bar stool now leaving and for penn to say, you know, we have espn now, we have this more core demographic to the sportsbetting ecosystem, hundreds of millions of people to crosssell on to their online platform, it just feels like a little bit better of a fit for someone like penn. So as we look at the stock today, you know, its really that push of getting people in this huge Distribution Platform into the Online Gaming app. You know, thats one part of it, of getting people onto your app. The ore side of it is other side is how well you can retain them, the product you can provide for them. Last month penn actually integrated their inhouse tech staff. Thats what were looking for here, how well of an experience can penn provide these people crossselling from espn to their online app. We think thats the going to be the measure ofe the measure of success. Liz you know, penn gave back what it owned of barstool to dave portnoy for zero dollars, so dave gets a really good deal here. Do you think that disney commanded that pennty demanded that penn divest of barstool before it even considered linking up with espn . You know, its an interesting question. You know, im not sitting there at the negotiation table. I would imagine though that, you know, the writing was on the wall here. We knew that barstool probably wasnt the longterm solution here, that they probably decided to go their separate ways, you know, when disney entered the picture, im sure there was a little bit of that, that, you know, we just want a clean break. We want to create our own product. Heres what we have to offer, you know, in the long term disneys looking at the value they can credit. They can use the penn platform, and they can drive shareholder value for both penn and disney as well. Liz jordan, im a little perplexed on why you to think this is industrychanging. Im guessing you mean maybe for penn . But penn has a very small market share. When you compare it to draftkings and fanduel . You know, you look at the market shares of some of those companies, and youre looking at certainly something much, much bigger than what you would expect to see, and, you know, youve got penn at 2 with fanduel at 50 , draftkings 25 . Even caesars is bigger at 5. What is your expectation in terms of espn and its broad tv and digital reach and what it can do to to substantially increase penns share. Yeah, you know, thats a great point. And to this point, you know, media partnerships havent worked in this industry. Theres multiple examples across the online ecosystem in the last five or so years of, you know, companies coming together thinking the media asset is going to help drive customers into the sportsbook, and it really just hasnt worked yet. You can even look internationally, same kind of result. It just really hasnt worked. So, you know, when we talk about this industry changing, you know, you have the worldwide leader in sports in espn, you have a massive demographic of people who are willing to watch sports, bet on sports, and we havent really seen that type of person within this ecosystem partner up with an Online Sports betting operator. But they talked about on the called today, this is a showme story. To your point, we dont know if this is going to be 5 or if this is going to be 30 . So, you know, time will tell, but they did jay, the ceo, did come out on the call today, and he sounded very enthusiastic. It seems like they do have a good road map to launch this product. Liz well, he better sound enthusiastic, theres a lot of money here at stake. This is a very fickle user base. And im talking about people with who go online to bet. Theyre not particularly loyal to any one site. It almost feels like theyre always hunting for whos offering bonus cash, whos offering free dollars to get in and make a trade. So what is it that espn can possibly do beyond eyeballs, i guess, in advertising across many of their networks that will somehow make people tune out all the other apps and hold steady with penn . And maybe, maybe it is going to happen because draftkings is down 9 right now. Yeah. You know, i think a lot of the crosssell, you know, comes from espn, obviously, but i think a lot of its actually going to come from the penn side. And it goes back to who has the best technology and who has the best product. Liz true. Example i love giving is when you walk into a grocery store, you want the most options and products, and if youre not able to give your customer that, people are going to go elsewhere. Penn needs to fully develop its product, give people optionality. Who has the most parlaystyle bets, and that is how you retown customers within this ecosystem. You can give out all the money you want, and weve seen that over the last couple of years of just throwing money away, but it really comes back to the technology and being able to retain those players. So these two will work together. Youll at some point youll see integrationings between the espn app and penn being able to launch, those might be longer term, but thats coin of kind of how this relationship will interact. Liz jordans been up all night working on his reports and and dealing with this because it broke late yesterday. Penn stock up 8. 8 . Thanks so much. Thanks, liz. Liz roadblocks for roblox investors after the video game developer platform continues to bleed money. What is really going on at roblox . The story, next. Closing bell, 38minutes away. Dow jones industrials down 10 points, the s p down 9. Nasdaq down 93. We are coming right back. New projects means new project managers. You need to hire. I need indeed. Indeed you do. 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In other words, gamers are not spending as much as they had been. Roblox said it expects to continue posting losses for the foreseeable future. No wonder the stock is at a 52week low, actually, i believe its at an alltime low. The stocks alltime high all the way back in november of 2021 was 141. Right now roblox is at 30. 06. Sell yous getting a jolt of energy right now. Shares are bumping up about 20 , notching an alltime high. The maker of Caffeinated Energy drinks reported record Second Quarter revenue of 326 million, that thats up 1 12 from the previous year. The company noted that it was the second best selling energy drink sold on amazon during the quarter. Youre saying, well, liz, who was first . It was monster beverage. Cells yous having a great day, it stands at 172 can and change. Lyft shares doing a uturn after initially spiking on an earnings beat after the bell. So after market it was up, this morning shares started falling, and they have not looked back. They are now down about 9. 33 . What is driving the declines . Lyft says its doubling down on its competitive pricing which investors or worry will hurt or profitability. Yeah. Rivian landing at the bottom of the nasdaq 100 despite reporting a narrower than expected loss and boosting its fullyear production forecast. The sore spot causing the flat tire here of 7. 6 loss right now on the shares, well, the companys diminishing cash balance. Rivians cash on hand down from 11. 7 billion at the end of the First Quarter to 10. 2 billion at the end of the Second Quarter. So the cash burn is getting people nervous here. Luminar shares, well, theyre kind of dimming at this hour even as the company that powers selfdriving Car Technology for names as big as mercedes is forecasting fullyear sales will grow by, you ready . At least 100 . Is so why are investors hitting a blind9 pot when it comes to the spot when with it comes to the stock . And maybe some people see it as a buying opportunity . I bet founder and ceo Austin Russell does. He is next right here on fox business. Star quarterback Joe Theismann was basking in the sunlight after getting named mvp when the lights of football success went dark. How did he create a whole new life for himself as a sports commentate ther when right in the football prime he suffered a horrific, careerending injury . He reveals it all in the brand new ended sod of my episode of my everyone talks to liz podcast. Dropped yesterday. Folks, this podcast has been on fire. It has topped is 1. 5 million downloads because people want to know how super successful individuals turn stumbling blocks into stepping stones so they can do it themselves. And by the way, Joe Theismann did it not once, but twice in his career, two different careers. Stay tuned, youve got to check it out. My podcast is everywhere you get your podcasts, google, apple, spotify, fox news podcasts. Please, let me know what you think. Closing bell ringing in 29 minutes. 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Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. The biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . Liz luminar, well, its kind of reversing course at this hour despite popping yesterday in the wake of impressive Second Quarter results. This is the leader in Lidar Technology which basically enables selfdriving vehicles to see everything around them reported a loss per share but saw significant sales growth, revenues of 16. 2 million compared to 9. 9 million a year ago. Luminar also mountained its fullyear and longterm maintained its fullyear and longterm guying dance. The company not only expects this years sales to grow by at least 100 compared to last year, but it also expects about 5 billion in annual sales by the end of this decade. How are they going to do it . Joining me now, luminar ceo Austin Russell. Austin, welcome back. You know, that a pretty big jump in revenue this time around. What drove it, and what does the Current Quarter look like . Yeah. Well, you know, its funny, i think sometimes people are surprised when, oh, we actually were able to beat this out just as this past quarter we were able to beat all of our metrics, business guidance, but its really driven by the customers and partners that we have signed up for longterm agreements with. Were generally talking as long as a decade, you know, when it comes to different automaker programs and vehicle models, etc. So with that were excited to be able to continue to make that happen, you know, weve had great progress so far this quarter with nissan showing off the latest of our technology, mobileye launched a new program, poll star available at luminar if dozens of other, you know, programs making progress with us. Liz but last time you were here you had the big announcement about mercedes. Hows that going . Because that, to me, is a real gamechanger possibility. Yeah, were crushing it. Were meeting all the key milestones, you know, holistically, but also when it comes to the programs. Theyre actually an elite partner for this iris plus that we have as we call it, the nextgen lidar product. And thats something weve actually now already built up and are in the process of validating. So weve just starting to drive out about 100,000 kilometers, you know, for the initial data as we start the validation optimization process. Thats been going really well, and and, you know, i think theyve said theyre now putting us in the majority of vehicle models. Its certainly an exciting one altogether to have a mull by billion multibillion dollar deal with them. And it ultimately con relaters into revenue which is why converts into revenue. Liz i like how you lowered your Voice Society sotto voce, this is Something Different to the trumpet. I want to ask you about the role a. I. And Machine Learning are playing in your manufacturing, in what you are offering to now, what, 50 different can partnerships. Yeah, absolutely. So when it comes to a. I. , this is something that, you know, luminars actually been investing in since 2017. So we made a big bet on that early on. And every vehicle thats equipped with luminar, all the, you know, what, two dozen different vehicle models out there from different automakers and what not will ultimately have a. I. At the center of it and powering the core of what we can enable with the lidar and in many cases with our software. So thats something thats really special, and we have this thing called luminar a. I. Engine that weve more recently partnered with scale a. A. I. , theyre a Specialized Technology company in this domain thats exclusively providing luminar with system of the key elements in our industry to be able to help power a. I. Engines. So thats been an exciting one. And other subsidiaries, were continuing to be able to really take off with luminar semiconductors that also powers this, and even recent design wins and Major Contract awards that are powered by this at the lidar level were also having at the semiconductor e level. For example, for a. I. Data centers. People are actually now going to be starting to use some of the same luminar semiconductors that we use for high daughter actually, you know, in other applications. Lidar. So its really interesting and all coming together incredibly well. Liz well, i get that, and there are a lot of other names in the space trying to do what you do, is and some are succeeding, definitely. It was a while back and hes been on the show too, but the gm cruise chief, kyle vote, has said that theres got to be consolidation in the industry. Gm is using septon, all kinds of other businesses, is that something you hook at, some of the other opportunities, and you say, wait a minute, we should be acquiring other names right now . Yeah, absolutely. Actually if you take a look at hair own lidar division, i think they actually shut that down after trying to be able to do it themselves. [laughter] liz yeah. Its, not to pick on them, its really the same thing on an industrywide capacity. People try to do the same things that luminar has been able to do, but its been largely unsuccessful, i think, for every successful automaker and tier one. The reason weve been able to differentiate and win over the majority of deals in the industry is because of the fundamentals of the technology. We start from the chip level up. You know, we have a bunch of Breakthrough Innovations that have made this possible. Take the hardware, align it with the right software, combine it with a. A. I. , you know, its magic. When it comes together, today im here in the princeton, new jersey, offices actually, you know, funnily enough, it was formerly the ford lie lidar team as part of arkansas go. Thats something they hut down. That team decided to join luminar afterwards. So thats something we were able to bring on, so were always going to be bringing on the best and top talent. And even also at the executive level as well. We recently Just Announced a couple days back, a few days ago that Emily Schenck lin has joined us from spacex as seniormost marketing executive. Liz oh, i bet, i bet elon not happy about that. [laughter] yeah. Hes not happy for a few reasons. Liz he doesnt like lidar, but thats something weve addressed in the past. Austin, thank you very much for joining us. We want to keep hearing about the partnerships that you strike, so let us know, please, let our viewers know. Yeah. Yeah, were making it happen, absolutely. And theres a lot more to come. Is so thank you. Appreciate you having me. Liz you got it. Our pleasure, austin, thank you. One of the most dangerous games in the stock market right now is guessing the share price of yellow. As the Trucking Company stock spins wildly from green to red, back to green, back to red, charlie gasparinos next with the scoop on what really went down between bankrupt firm yellow and the teamsters union. And imagine, if you can, a mashup of ding dongs and twinkies. Well, dont imagine, were about to do it right here with the Hostess Brand ceo next. Hows liz hows business . The what are the costs there . Were going to find out. Closing bell about 15 minutes away. We are only toking right back. The losses on the dow are steepening here, down 80 points at the moment. At t. Rowe price our strategic investing approach can help you build the future you imagine. T. Rowe price, invest with confidence. This is american infrastructure, a prime target for cyberattacks. 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On the top of the pile oh. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. Wow, you get to watch all your favorite stuff. Its to die for. And its all right here. Streaming was never this easy, you know. This is the way. You really went all out didnt you . Um, its called commitment. Could you turn down the volume . Here, you can try. Get way more into what your into when you stream on the xfinity 10g network. Liz i mean, this is going to be a big economic number. As the markets await that july consumer Inflation Report tomorrow, 8 30 a. M. Eastern, we are with about to get a snapshot on food costs if twinkie maker Hostess Brands. The baked goods giant just reported adjusted earnings per share of 28 cents. That beat estimates. Revenue rose 3. 5 to 352. 4 million. The increased fuel increase fueled in great part by consumers craving of the lineup of sweet baked goods. Net revenue from that segment rose 4. 6 . Lets bring in president and ceo of hostess, andy callahan. Andy, from the standpoint of a a ceo who depends on the cost of food and food everything that goes into it, how closely will you be watching that cpi number tomorrow morning . Well, liz, we certainly watch it very closely. We watch both our business cost side, but were acutely in tune with how the overall costs inpact our consumers. We work very hard to make sure were meeting consumers where they are at the moment, you know, deliver that in the value that they expect are from us at the quality they expect from us, you know . We come out with ideas, we try to run our business as productive and efficiently as possible, and in these times were able to get through this year without really raising prices but finding other ways to bring value to the consumers when its family packs where they get to get a larger size but at a better value and we can pass on some of these productivities to the consumers and meeting with our consumers and customers to figure out a way the drive value. So were trying to we need the profit to informs back in the in invest back in the innovation that we love, but we try to meet consumers where they are. When it comes to the Consumer Price index, were in tune with it because we wan to be in tune with our consumers. Liz lets just look in the rearview mirror. Back in june the most recent number, you saw that sugar and the important sweets [laughter] segment that youre in, up 111 11 . Clearly, that is a cost that you have to shoulder. How do you balance that push where you have to spend more on your input costs and yet you dont want to charge must mers more money customers more money . We have a terrific procurement team, so we look at it through the longer phase where typically look nine months, sometimes a year out when it comes to making sure we have some level of predictability of our business. But we do exactly the way youve talk about, we have a Terrific Team that tries to drive efficiency and productivity into our business. We meet with our customers to make sure we can promote partnerships that really meet the needs of the consumers. So it really does come down to a disciplined, predictable approach to running a business, and ill put the Hostess Brands team up against a lot of them. They do it very well. Theyre talented, they care about each other. And so, but they care about the consumer. And so delivering value, as i said earlier, to the consumer is a really important part of the way we run our business. Liz there is certainly a move to eat healthier or foods and, andy, i mean, its just a fact of life [laughter] you guys are heavy on the sugar and the fat, etc. So how do you market that in a way with where you feel good about the product and the consumer thats getting it . Yeah. At a macro level, consumers are snacking more x theyre putting a lot more of their occasions into snacking and indulgent snacking specifically is growing at a greater rate than total food and a greater rate than total snacking. Thats been happening for a long time. But we want to do it responsibly. We want to to most of our products within the Hostess Brands portfolio is portioncontrolled. We dont want them to overindulge can, so we look at ways to make it more pure so when they have one of those occasions whether its a reward occasion or whether its breakfast, we want to do it in the most responsible way possible and do it as part of an overall balanced diet. What were seeing, dan oleary, our head of growth, talked about this at one of our investor conferences. Consumers take up increasingly, especially younger consumers, they take more of a Balance Sheet approach to it. They can have an indulgence and carrots and other smacks. We want to give them products that also were the number one zero sugar cookie business in america with the acquisition of our bortmann brand can which continues to grow. Weve rebranded it to zero sugar, so we want to give consumers a portfolio of choices to the meet their indulgent snacking needs but do it responsibly. Liz then theres the nostalgia. People love the twinkies and, oh, Everything Else. [laughter] good to see you, andy. Thank you very much. Liz, great to see you. Appreciate it. Liz on a down day and, by the way, the dow is down 174 points, twinkie is moving higher by, well, up liz another crazy bumpy day at this hour for Trucking Company yellow. Shares are down 32 , pretty much at the lows of the session right now as the Company Hires a boutique Investment Firm to handle its bankruptcy proceedings. Details of that partnership and inner arguments between the company and teamsters, charlie. Hiring the same people that sold hostess, the aforementioned hostess out of bankruptcy, took hostess in bankruptcy. It is interesting, an analog what is going on with yellow. Hostess back in 2012 had union issues. Teamsters were involved then. Bankers union was the more intransigent than the teamsters. Jim hi hoffa, jr. Was head of union. He was going to a restructuring deal. The bakers union balked. They closed down the place, locked the doors, ring fenced all the assets. People run sarah partners, Michael Kramer, if you dont know Michael Kramer, one of these Top Investment bankers people dont know about but he is the best at restructuring basically mixed and matched found buyers for the various brands. Hostess went to one. Wonder bread went to another. Hostess trades on the twinkie liz twnk. Great ticker. When was last time you had a twinkie . Liz a long time ago. We use food very expansively when you talk about twinkies. Liz a pure violation. I must admit i couldnt help you about laugh when he said people eat twinkies with carrots. Liz no, he said they balance it out and snack on carrots. By the way this stuff is delicious stuff. Liz the gores connection,. Not just the gores connection, Michael Kramer he is at his own firm, sarah partners, he will do the same thing. It will be a mix and match with established last truckload liz less than truckload. Less than truck lead companies, smaller truckloads what is yellow is in. Will match with legacy players, nonununionized and p. E. Firms, sell off the trucks and move the stock pretty easy. Why is the stock down today if they get so much money . Liz i was going to ask that. I said yesterday, i dont know the amount of Unsecured Creditors. They believe they will get significantly more than 1. 4 billion which is to the secured creditors. Liz look at this down nearly 40 . They think they will get more than 1. 4 billion. That will take care of the federal government. Remember they got a loan from the federal government during the pandemic, trump administration. They owe money to apollo. That is one of their creditors. That will take care of them. There will be money left over, significant. Question, how many Unsecured Creditors pop up, how many vendors involved in this . Maybe they owe money to people that made uniforms to the truck drivers. That is Unsecured Creditors that could eat a lot of money out of this, there is no doubt. That is a possibility. It would have to be a lot. If that doesnt eat all the extra money they got money will go back to the shareholders. The question is, the market is trying to figure this out, is this a two dollar stock or one dollar stock postbankruptcy . Usually in liquidations it is a zero stock. Like hostess, liz, which had really good assets to sell, twinkies sell, right . They also survive nuclear war and Everything Else intact. But you know, it has good, yellow has good assets, they believe they can make this thing work. Liz let me call a quick audible, charlie. We should look at disney stock. Were three minutes before the top of the hour. Disney reports after the bell. There is this whole penn gaming story that theyre linking one espn and you wonder what eiger is going to say about gussying up espn to maybe spin it off . You know it is funny, he gave an interview with cnbc which he talked about this but we on the claman countdown have been reporting way before that he was likely to sell espn or spin it off or monetize it in some way. Liz yeah. Possibly sell abc how do i know this, why did i report this on this show exclusively . I did it activist investors are in the stock pushing him to do that. I think well hear two things. He will be asked, well see if he asks, see if he bites, this is bob iger, you dont push him around too much he has been around a long time. He will have to address the espn situation, will they spin it off, monetize part of it, will have to address the abc situation. He is going to have to address succession at some point. Liz yeah. Lets see if any of these analysts have the cojones to ask ask him that, go there. Liz charlie gasparino, speaking of asking questions. We get to ask the questions. Were hosting the second republican primary debate. It will take place at the Ronald Reagan president ial library in simi valley, california. September 27th. Mark down that date, the economy, everything, a. I. , all kinds of issues, the labor strikes, all of that will be big, big topics. Mention donald trump talking about a. I. , hey, a. I. , a. I. Liz not talking about actual issues facing the americans at the moment. How does donald trump say a. I. . Marco how did i do it. Wonderful a. I. Wonderful a. I. I got the best a. I. In the world. Super a. I. Liz the dow is heading back down. Not at session lows at the moment. Still down 181 points on this wednesday and we are waiting as we said, disney after the bell. So much happening but tomorrow, cpi, the Consumer Price index number, inflation at the consumer level for the month of july, very important number. The Federal Reserve will be watching closely. [closing bell rings] it could move the markets. You have to tune in tomorrow 3 00 p. M. Even for the claim claman countdown. You hear the final bells that will do it for us. Larry kudlow and company next. Larry hello, folks, welcome to