Transcripts For FBC The 20240703

All of us. Im cheryl casone, hi, everyone, in for liz claman. Were getting some breaking news on the uaw strike. Union president shawn fein on Facebook Live just announcing what he says he is calling a major breakthrough. Watch. Gm has now aagreed in writing to place their electric battery manufacturing under our National Master agreement. What this will mean for our membership cannot be understated. The plan was to draw down engine and transmission plants and permanently replace them with lowwage battery jobs. We had a different plan. And our plan is winning at gm. Cheryl the uaw also confirming no new strikes for the big three automakers. Grady trimble joins us now with more from wayne, michigan. Grady. Reporter cheryl, uaw president shawn fein said on that Facebook Live that it had threatened to strike at General Motors Arlington Assembly plant. That is a facility that manufactures some of General Motors most profitable suvs, think the suburban, the tahoe, the escalade. Those fullsized suvs. Because remember, so far workers are not picketing at those plants that headache fullsized pickup trucks and suvs. Of so the union says the threat of that is what made gm come through with this agreement on batterying to be, essentially what hes saying this is for battery plants to be filled with union workers. The question is whether thats all of General Motors future ev battery plants or just the one, i believe, that they operate right now. So so weve reached out to General Motors, were looking to get some clarity on that and to get General Motors side of the story. In the meantime though, you future on the fact that this is the first time you touched on the fact that this is the first week that the union is not escalating this strike. That really is a sign that theres been momentum this week, that perhaps there hasnt been in previous weeks. Listen to uaw president shawn fein once again describing the state of negotiations with all three of the automakers. I wish i were here to announce a tentative agreement at one or more of these companies. But i do want to be really clear. We are making significant progress. In just three weeks, we have moved these companies further than anyone thought was possible. Reporter okay, so fein says that the union is making the most progress on the transition to electric vehicles with General Motors, but it also gave credit to ford and stellantis for, you know, providing better may than General Motors has offered so far in their contract negotiations. Ford and stellantis have also offered to restore cost of living adjustments that the union had in place as part of their contracts before the 2008 crisis and the bailouts at two of the automakers here in detroit. Fein also said that theyre making progress on another Sticking Point in the conversation which has been temporary workers and the pathway for workers from when they start to when they make the top pay that they can make in their positions. Thats been a frustration for workers out here on the picket line, that they can be sitting right beside somebody on the Assembly Line and one of them will be making double what the other is making. So as you heard f if ein say, theyre making progress in their discussions, but theyre not there yet. We are also learning about more of the ripple effects of this strike because even though its not expanding, its maintaining or a staying as is in several plants at this point including this ford plant that were at and a ford plant in chicago. And as a result of these two plants and the walkouts here, were learning that there could be some more layoffs at a ford plant in cleveland, ohio, around 400, maybe 375 workers could be out of a job there, laid off because of this strike. On top of that, we know that suppliers, you know, are huge employers here in michigan but also across the midwest and and across the country providing parts that go into these automobiles. Suppliers have laid off hundreds if not thousands of workers already, and some of the smaller ones, a lot of them are mom and pop operations, some of the smaller ones, cheryl, have said they could go bankrupt if this strike drags on for too long. Cheryl s because this goes down the line, grady. Im surprised they didnt add additional bodies to the picket if line. I was with expecting that, so that was an interesting turn. Thousand we know its because they had this agreement that was actually looking, you know, better than expected ins with General Motors. Youve been great on the story, grady. Thank you so much for that live report and breaking news. Grady trimble. Well, were going to go ahead and start trading all of that activity in just a moment. First, i want to point your attention to the markets right now. As you can see, stocks have been on a wild ride today. Green across the board now, but but it wases a very different picture at the open. Okay, so right now the dow, as you can see, is higher by 376 points. But at pun wont in the one point in the session e, the dow was actually down 272 points. That was earlier in the day. And if you look at the spread, 710point spread on the dow from the high to the low. Now look at the s p 500. As you can see, it is also higher by 59 points. It had been down 38 points at the low. So another big range there. And then the nasdaq ripping higher. Take a look at this, this is your tech story, 229 points and change. But at the point of the low it was down 120 points. So a lot of this probably doesnt make sense to a lot of folks that are watching. Lets get to our traders because, you know, initially we saw them them selling on a much stronger than expected jobs report. Nonfarm payrolls jumped by 336,000. The estimate the was 170. Wage growth, on the other hand, it came in a little bit cooler than expected even with the backdrop of increased bargaining among the unions. And theres a union story as well with. Lets get to our floor show, our expert traders on standby, joining me right now, scott bauer from the floor of the cboe, and fit gerald Group Principal keith fitz keith fitzgerald. Scott, i want to start with you, you said this was a total shock today, what you saw in the markets. Why . Yeah, it really is. And, you know, the number came out, we had a sharp move to the downside. We got in, we got within a whisker of that 4200 levels on the s p which is major support. Thats the 200day moving average. And youve got every technician, every fund in the world looking at that number as a potential support area. And then all of a sudden, whoosh, to the upside. So this could have been a combination of a couple things. Number one, maybe after looking at the report or and seeing the wage growth part of it, that lessened or dampenedded, you know, some of the shock from this number. Number two, we have been in a very oversold market. So the opportunity for many of these funds to get in and for a lot of the algo trading to get in at a number just above that 4200 level, that could have been the opportunity this weve been looking for. Whats even more shocking to me, cheryl, is not the bounce that we with saw this morning, but the fact that this has continued building through the day. Im looking up here now, s ps up 62 points, 100point reversal from the lows this morning. So i think you have all of those factors. But i the landscape has not changed. In fact, the market is now pricing in a higher probability of a rate hike in a few weeks at the november meeting than it was earlier this morning. Its still only about a 60, 62 probability of no hikes, so 30 to, you know, 38 of a hike, but thats much higher than it was this morning. Cheryl yeah. It was a huge jump on a percentage basis this morning, because i watched it happen as i was doing the jobs report. And, keith, the other thing that i saw happen this morning on cue, to steal a phrase from scott bauer, keith, i saw the yield on the 10 of year go to levels we have not seen since 2007. And that to me this morning, and this was before the market opened, made me very nest. That was, to me, a bearish sign. But, you know, the story has changed throughout the day. Well, let me tell you, as a trader the fact that youre bearish is exciting to me because what i know, having spent 43 years in this business, is that the computers are going to look at that, and theyre going to say, aha, now we can buy. A lot of this was algodriven, deleveraging initially, and then when things got low enough, they attracted the fomo traders, that ignited the shorts. Longer term this count change, but shorter term this is a highly technical move led by nothing more than undervaluation. It doesnt change the longterm investment perspective. I wish that id been paying more attention, and id have had the opportunity to buy even more than i did this morning. Cheryl okay. You definitely are i buying the opportunity. Scott, im looking ahead at earnings season. We start a week from today with the bank, jpmorgan chase. Thats going to be friday the 13th, scott. Yes. And, you know, the biggest thing for earnings season across the board regardless of sector is not necessarily going to be the results, but what do they say moving forward. How much of an impact are these, you know, massive rate rises going to impact the Banking Sector and industrials and any sector that yaw look at. Finish you look at. That is going to be the key, is what is the guidance that many of these companies give. We already know that some of the earnings estimates which had been just drastically reduced, theyve actually started to rise up a little bit going into third and Fourth Quarter earnings here. So to me, the bottom line number is not going to be as relevant as what these Companies Say going forward. I truly think that we may have an upside going into the end of the year, but this rally today, im a bit with skeptical. Cheryl this has been one of those wild ride days that you scratch your head, but you figure it out. Keith fitzgerald, scott bauer, gentlemen, thank you so much. Happy friday to both of you, obviously. And most of you are probably shorting the market, probably happy with the numbers. Okay, lets take a look at a Mortgage Rates right now, climbing to 7. 49 . That is their highest point since december of 2000. Are rates going to hit the 8 print . And what will be the fall ott on the Residential Real Estate sector . Find out next. Taking a look at builders as we go to break, all of them are higher. The claman countdown will be right back. Fresh, warm hot dogs finish straight out of my torso , one for you, one for you. Oh, youre a messy one. Cool, right . So cool. 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About a cashew farmer from mozambique named carlos. Carlos lifted himself out of poverty with the help of techoserve. Go to technoserve. Org and see how you can support struggling farmers like carlos. Its a different way to make a difference. I suffer with Psoriatic Arthritis and psoriasis. I was on a journey for a really long time to find some relief. Cosentyx works for me. Cosentyx helps real people get real relief from the symptoms of Psoriatic Arthritis or psoriasis. Serious allergic reactions, severe skin reactions that look like eczema, and an increased risk of infections, some fatal, have occurred. Tell your doctor if you have an infection or symptoms, had a vaccine or plan to or if ibd symptoms develop or worsen. I move so much better because of cosentyx. Ask your rheumatologist about cosentyx. Cheryl Mortgage Rates is have reached their highest levels since december of 2000, and theyre scaring away potential buyers. If youre trying to buy a house, the 30year fixed mortgage, youre looking at 7. 49 . 7. 5, right . That is up significantly from last year when rates were at 6. 66 . Meanwhile, people are seeing these high rates and elect aring to push off that mortgage application. For the week ending on september 29th, applications dropped 6 from the week prior, 2 from the same 22 from the same time last year. So between rising rates and low ply pushing up prices, is there anything thats going to give here for home buyers . Buyers and for sellers . Lets bring in in a fox business exclusive, jason haber hey, jason, good with to see you. Its been a while. Cheryl lets talk about this. I mean, the predictions are already out there for 8 which seems like thats going to happen based on what the fed likely so is going to do. What is that going to mean . Were already this huge slowdown in residential. Whats next in. 8 is not great unless the house worth the wait. [laughter] what we tell everyone is really you have to find the right house, the right moment, the right opportunity for you if you going to be paying an 8 rate. We also caution if you are at an 8 rate and get into one today, you hope in the future, i dont know how long itll be, youll be able to refinance out of that into a lower rate but still have the home that you want with. So its a balancing act, and its a detailed conversation that every agent across the countrys having with their clients right now to prepare them for the 8 market or 7. 5. Its, you know, its much different than it was a year ago, a year and a half ago, and youre going to be here for a little while too. Cheryl 8 knocks buyers out, for sure. On the flip side, i always kind of want to throw this out there as an idea is that, okay, look, the seller realizes theyre not getting interest and theyre going to have to lower the price, you may be paying youre getting a better deal, but youre till going to pay the 8 . And, you know, you kind of know what your affordability is. You know what your monthly salary is, what youve got to spend on a car a payment, etc. , so you have the sense, most buyers do, of what they can afford if theyre being realistic. Do you see that happening at all . Yeah, we always say were in the Monthly Payment business in real estate. That. [laughter] cheryl thats true. Thein and yang, right the yin and yang. When prices start to soar, Interest Rates are lower. Add the end of the day, what matters is your Monthly Payment. But with for a while weve gotten buyers used to paying up and paying more for a house. What they havent done, the mental gymnastics yet, so to accept that higher Interest Rate which is different than paying the higher purchase price. And so its just a different power dynamic e. Cheryl i agree with you wholeheartedly. I know you to dont do commercial real estate, but i want to get your 360 view on it because, you know, weve been calling for this crash in commercial real estate this year and next year and, you know, those predictions are still out there. Im just kind of wondering what youre seeing. Are you hearing about a lot of pressure in commercial . Yeah. So so a lot of my friends in commercial talk about the capital calls that come in regularly. Theyre very nervous about 2024. Theres obviously going to be a great reset because of vacancy rates and how the world has changed postcovid. And so, listen are, very different dynamics, very different fundamentals from the Residential Market but something to watch really closely in 2024. Cheryl real quick before you run, you recently sold a place for 70. 5 million here this new york city, luxury market is your market. Jason, talk about the luxury buyer. Finish if a lot of times that person is recessionproof but maybe not. Everyones going to be a bit cautious. I dont care if its 70 million or 70,000. A budgets a budget with. And i think its important for everyone, i think everyone today is being budgetconscious, and what we try to do is whatever the rice price is, to find value for that buyer in the current market conditions. Cheryl all right. Jason, also too really quick, lets talk about nar because were seeing its the nar accountability project, youre the man of the hour here. What is your beef with mar . Its not so much a beef i would say. Ill say that they have not addressed properly Sexual Harassment and a toxic Work Environment at nar and at nar events, and the time for silence is over. Theres been amazing reporting on this by can deborah cayman at the new york times. Women have spoken up. But change hasnt come in the way it needs to, and were pressing a 4point reform plan, go to agents demand change. Com and learn more. Were not going to stop until our reforms are met and real change is brought to the National Association of realtors. Cheryl and you are the members, and redfin and rehabbing, youre not alone are, major names that are saying things need to change at nar. Nar count have its members, it doesnt have nar. Anyway, jason haber, great to see you. You too. Hopefully ill see you in the studio. Cheryl yeah, yeah, come and visit us. Well, fox business followed families that saved and scrimped to build, buy that American Dream home, but all of those stories are now profiled on my show, American Dream home. All episodes streaming right now on fox nation. Its called the taylor swift effect. Helping one stock shake it off. I was going to sing but i chickened out. Thats on a day when the markets are fluctuating. Find out which ones when we come back. Taking a look at your markets [laughter] i dont know what to say, what the heck . Dow up 360. Nasdaq up 227. 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This is btv business television. Coming up mayfair gold, canadas first Carbon Neutral gold mine. Gold terra, can this ceo do it again . Kodiak copper, is the supply going to last . Banyan gold, with over 6 million ounces, are they an acquisition target . Northstar gaming, the igaming market is taking off. Nighthawk gold, are they undervalued with their new resource . Watch at btv. Com. Cheryl we are now getting some breaking news out of stellantis following uaw president shawn feins update that we brought to you at the top of the hour. The automaker is saying it has made a proposal that provides significant wage increases, 21. 4 when compounded through 2027 the for all fulltime hourly employees. Stellantis also said it will contribute to retirement funds, increase paid holidays, theyre going to include juneteenth, raise starting wage rates for supplemental employees. The company saying, quote, we remain optimistic the discussions are providing a pathway to a tentative agreement. Job security for all of our employees including those in belvedere. So we wanted to get it that breaking news. Theres the stock, its up about 3. 25 . Also want to show you the markets because this has just been a wild ride. I dont know what else to say. Look at this, dow is now up 382, as you can see on your screen. The s p is up by 61, the nasdaq up by 239. I mean, that dow spread, i dont know, guys, 715 points at in this point . 710 still . What kind of day is that in anybodys mine, right in levis strauss, that stock is falling to a 3year low after cutting its annual forecast for the second time. The denim maker also missed analyst estimates for sales in the thursday quarter. The company says unseasonably warm weather in the early fall actually hurt its sales. Stock up about half a percent right thousand which is only 6 cents. Now. Bank of america reporting that appetitesuppressant drugs will have an impact on sectors like snacks, beverages, restaurants and tobacco. The Investment Bank says that people taking the drug may reduce their caloric intake by 13 leading to a decline in sales of snack foods. The bright side bofa says the apparel industry [laughter] okay, may benefit when consumers update their ward wardrobes with those new, slimmer bodies. Theres an angle on everything, right . Amc announcing that advanced ticket sales for taylor swifts eras tour concert film has passed 100 million in advance sales. Cinemark also reporting that presales for the movie is set a record that is 10 times higher than any other event film. Then concert tour film is set for release on october 13th. If anybody has daughters that want to go and you dont want to take them, call me, i will take them. Okay. The food and Drug Administration saying it is still not satisfied with how phillips has handled a major recall of their breathing aid machines. They want the company to conduct additional risk testing. Saying, quote, we do not believe that the testing and analysis phillips has shared to date is adequate to fully evaluate the risks posed to users from these recalled devices. So these devices used a type of foam that can degrade when exposed to cleaning chemicals. That would be that could cause an gyre to your airway. The Health Care Company says it has five independent labs. They tested the recalled devices, by they also agreed with the call for more testing and are now in discussion with the agency to get more details on that. Speaking of machines, there are now four Major Airlines that have reported finding unapproved components in some of their jets. Delta is the latest to say that less than 11th of its engines are affected by the fraudulentlydocumented parts. And at the Effort Center of the scandal is a broker called aog tech nicks. Fox business Ashley Webster joins me now. I can expect to see maybe some fake parts, faulty parts in my bike, but i dont think i want to see that in my airplane. No, you know what . Youre absolutely right, cheryl. Its a shocking story of a company accused of a basically selling bogus jet engine parts that were backed up by forged paperwork. Can it get any worse . Now dozens of aircraft have been ground for urgent maintenance as those parts were used in one of the most widely used engines in aviation today. The company in question is u. K. Based who sold the parts to other companies which airlines then use for aircraft maintenance. Now, its interesting because a lawsuit has been filed in the u. K. Already against the company that as it emerges the parts supplier may have engaged in a number of suspicious if practices including, get this, building a fake Online Presence to promote itself. So the question is how on earth could this happen. Airline pilots are supposed to undergo stringent safety tests to insure, of course, they are airworthy. Peeve part comes with a certificate that can be used to trace the components origins and inspection records. Thats whats supposed to the happen. So far, the questionable parts including everything from screws and bolts to more vital units such as turbine blades have been found in 126 engines across several airlines, american, united, delta and southwest airlines. The theyve pulled jets from their fleets for further inspection. The airlines said it will will not affect any schedules. We did receive a statement from Delta Airlines who told us in part, quote working with the overhaul provider, we are in the process of replacing those parts and remain in compliance with all faa guidelines because safety is always our priority. But no doubt the scandal is raising some serious questions about the e effectiveness of safety oversight measures in the Aviation Industry with in asking, cheryl, how could this happen . That ice a very good question and very shocking to say the least. Cheryl it certainly is. It makes people worried, especially those that worry about traveling, you know . Scared flyers. That makes that situation more dramatic. Ashley webster, thank you for that report. Its good to see you. My pleasure. Cheryl heres a question for you, can all tech manufacturing be move from china to the u. S. . And if so, what would that cost . The president of the Consumer Technology Association Joins us next in a fox business exclusive with an a answer. Taking a look at Semiconductor Stocks right now, as you can see, they are all in the grebe in the green. We will be right back. Tourists tourists that turn into scientists. Tourist taking photos that are analyzed by ai. 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S. Is in a position to grow the contribution of its allies. But which ones . Lets ask the president and ceo gary shapiro. Hes here in a fox business exclusive. Gary, this is a very fascinating report and very timely, obviously, with all of the contention we are dealing with when it comes to the u. S. And chinese versions. You know, do you think that working with other allies around the world i could get us less dependent if on the supply chain of china . I do, cheryl, and thanks for having me. Certainly with the geopolitical techs and the fact that china basically is the worlds exporter, we as a world have come to rely on them. In fact, about 23 of our Consumer Technology product comes from china now. So it makes sense to look at options given the politics and given the fact it just doesnt always make sense to have one solesource supplier. But we cant bring it all back here not in 10 years and not even at a reasonable cost. But we can do something else. What we can do is deal with our allies, our friends, our treaty partners and figure out where the expertise is and then share the wealth. Right now in a lot of ways we treat china the the same way that we treat those that are friends of ours, and i think we could forge relationships, enter tree risker cut tear tariffs, do all sorts of things to work with our allies and start a gradual process of diversifying the supply chain. Cheryl i want to list the countries, vietnam, india, canada, mexico, france and germany. What i thought was so interesting is that, you know, how dependent we are on maneland china that for computers, peripherals, communications, audio video, semiconductors. I mean, theyve got a 40 chair of global exports. I thought that had come down simply because a lot of u. S. Companies are trying to get out of china and go to places like vietnam or indonesia. But were not doing it fast enough apparently. Welsh it is such an inti intricate thing, at the only component level, the very basic level, chinas really good at producing these things. Also they are efficient and lowcost labor. But even chinas getting higher cost labor, and it makes sense to look elsewhere and the expertise is developing, but its slowly. I think companies are doing that on their own, but what we can do as a cup to make sure the process works were the. Because we learned about it through covid. Have to diversify that, and thats why we looked at this. It made a lot of sense and we walked away thinking, wow, theres things out there we can do. Theres the Transpacific Partnership agreement which basically is a trade agreement our asian friends have entered, and we have not. We are not part of it yet. Simply, we could have relationship es with india and vietnam. Now, we may not if agree with everything about these up countries, certainly india has some protectionist policies. Vietnam is communist but very embracing in the free market right now. But we share a view of democracy, of liberty, of the human spirit and of the fact that we want our children to have those human rights that we have in western europe, in south korea, in canada, australia, new zealand, parts of stall and south america. So we should be working with those allies of ourstreaty partners to say lets see what we can do to diversify ply chains. But at the same time, it is totally unrealistic to just turn overnight, shift everything from china. It could be more gradual, and even a cheryl right. Well, thats what apple is doing. We may have to work quicker on, but we can move slowly without costing the american taxpayer a lot of money. Because right now if we to that 500 billion as a real number and we figure we do it with our friends and allies, we can get it down to about georgia a quarter of that. Cheryl i hear you with. And and, obviously, you look at these notes coming out of all of the banks talking about the semiconductor industry, and youve got the Biden Administration bring some manufacturing back to this country, and i think thats a good thing. Before you go, ive got to ask you about the Consumer Electronics show. Januarys going to be here before you know it. Im curious what you think the vibe is going to be and the fields going to be. Because, look, we are in a high higher Interest Rate environment, and a lot of Technology Companies that kind of hurts hem with the bottom line. What are you expecting . Well, ces will be fabulous. The reason is because of Covid Companies have pivoted, theyve shifted to oil kno vegas innovation full speed. And were seeing greater participation than weve had last year in terms of exhibit space and exhibitors. The future of tech, the future of retailing, where were moving. We also have loreals ceo as keynoter. Theres a whole new beauty tech portion. But thatll go along with, obviously, Artificial Intelligence which will be pervasive, especially with generative a. I. Everyone will be talking about that and show what theyre using. And in transportation and mobility, its everything from selfdriving to things not only on the land, on the air, in the water. And, of course, theres Health Care Technology which weve been focusing on so much. And its interesting, the health care sector, theres so much this. And especially the number two participant is coming from korea now, and were seeing Amazing Jumps in Health Care Technology. But, of course, thats all around the world. Thats what it is. Its a global show, well have 130,000 people and 1 out of 3 if not more will be from outside the United States. Its the largest show in the u. S. If not the world. Cheryl it certainly is. And fox business had a longstanding relationship with you and that group. Gary schaap shapiro, we will definitely see you soon. Thank you very much. Cheryl all right. Well, lets stay with technology, a little didnt take here. Tesla see owe elon musk is under investigation over his refusal to testify as the sec investigates the billionaires purchase of twitter. Charlie gasparino coming up on next the move have actually result in musk maybe showing up. Closing bell rings weve now got about 4 minutes to go, and a lot of the social media stocks, except for snap, is move are moving higher. Well be right back. Is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Liberty mutual customized my Car Insurance and i saved hundreds. With the money i saved, i started a dog walking business. Oh. [dog barks] no its just a bunny only pay for what you need. Liberty. Liberty. Liberty. Liberty. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. I suffer with Psoriatic Arthritis and psoriasis. I was on a journey for a really long time to find some relief. Cosentyx works for me. Cosentyx helps real people get real relief from the symptoms of Psoriatic Arthritis or psoriasis. Serious allergic reactions, severe skin reactions that look like eczema, and an increased risk of infections, some fatal, have occurred. Tell your doctor if you have an infection or symptoms, had a vaccine or plan to or if ibd symptoms develop or worsen. I move so much better because of cosentyx. Ask your rheumatologist about cosentyx. Cheryl breaking news right now, according to a politico report, former House Speaker Kevin Mccarthy is considering resigning from the house before his term ends. A report says the speaker plans to that stay at least through the speakership election. Thats next week. At the same time, some republicans are reviving his name as a speaker candidate even as it remains unclear whether he would accept that. Ive actually got Charlie Gasparino on set with me. This is another twist weird twist. I mean, i cant tell you what hes going to do. I know people who know him pretty well. Hes probably sick of the you know what, right . One thing i will say from a market perspective, and ive been seeing a lot of wall Street Research tracking the distinction dysfunction in the Republican House caucus, tracking that with a spike in the 10year. So people are seeing, like, sort of weird volatility in the 10year beyond where the yield is spiking, you know, sort of matching up with this. Now, why would that be . Well, if the republicans are so busy, you know, committing reservoir dogsstyle politics on themselves, you know, blowing each other away. Do you remember that scene . Cheryl i do. Thats why im laughing. They were so busy doing that, there was no check on the Biden Administration, particularly its spending habits which arent very good. It gives the democrats a huge leg up in that and, you know, this is why you have this is why markets like divided government. But it divided government is democrats and republicans and divided further with the republicans, markets get wobbly. And thats what some of this research is saying. I saw it today and, you know, ill probably put more on my twitter page later. Cheryl youre covering tesla, so well pull up the stock, we already mentioned this, elon musk you know, elon musk faced issues with the sec during the trump administration, and one of the main issues was he said he was going to have a buyout this was when teslas stock was getting crushed, and he just blurted out he had a deal at 420. I think that had something to do with pot. That was the number. Yes, it did have something to do with bolt. In any event, it wasnt really a 420 deal, the sec dinged him. Whats happening now, and heres what, you know, if you talk to civil libertarians, you know, talk to alan dershowitz, i talked to white collar defense attorneys, they almost see a pattern where he became the sort of almost like a hero to the right, you know, opening up twitter to donald trump, putting voices that were canceled on twitter, conservative voices, you know . Or nonwoke voices that were canceled on twitter, putting them back on and saying stuff about the administration. The minute he started going there, there was sort of a weaponization of the securities and Exchange Commission and other, and other Justice Department against him. Theres, like, four sort of actions floating against him. There was one the other night. And im telling you, this is becoming a talking point in White Collar Crime circles, like, you know, whoa. All of a sudden this guy is, like, antiwoke, you know, pointing stuff out on twitter about Sleepy Joe Biden and then all of a sudden and i think he kind of uses those words, Sleepy Joe Biden. You go and theres, like, four suits. And its, you know, its pretty, you know, yesterday e the sec sued to compel musk to testify on the purchase of twitter last year, you know . All of a sudden, you know, theres some weird thing about him purchasing twitter. He took the it private, we should point out. Cheryl yeah. Also [inaudible] yeah. X sued cheryl two hearings. He was sued, twitter was sued in federal court in florida for, you know, for some sort of a marketing thing. Ordered by a judge to face class action claiming he defrauded former twitter shareholders last year by waiting too long that he had invest invested in the social media cheryl do you think its political . And the last one has something to do with an eeoc case. You know, whether its political or not, im just discrimination. So, hey, listen, i can just tell you that white collar criminal attorneys, civil libertarians believe theres a political element here. Now, we do live in an era where everythings a conspiracy theory, but, you know, used to be when i used to have to write term papers as a kid, if you wanted to prove your example, you needed three examples . I just gave you four. Cheryl you did. Thank you so much. Good to see you, Charlie Gasparino. Well, closing bells going to ring. In about four and a half minutes. The bulls are racing to the end of the bull. The dow, the s p and nasdaq seeing broad with gains, over 300 points to the upside on the dow. Looks like we are going to be, at least for the dow, were going to be green for the week, but the s p, the nasdaq looks like its going to be positive im sorry, actually i take that back. My apologies. The dow is likely going to be down for the week. All of these numbers have changed so much today, its hard to keep track. There are reports, and came out this morning actually in the journal, that exxon is nearing a 60 billion deal to buy pioneer natural resources. The stock took off in the premarket on this. Pioneer is up about 10. 5 , exxon down 1. 5. Our countdown closers bullish on exson with the stock up exxon. Lets find out why, what he thinks about this potential deal, more importantly. Lets bring in sound Planning Group ceo david stryzewski. And, david, if you are interested in exxon and you own some of exxon, then you woke up a happy guyed today. Guy today. Absolutely. Yeah, you know, developing resources takes a long period of time. I mean, were talking like decades in many of these case. So when you can acquire a competitor who can add value to what youre already doing, thats e a really important hinge to understand about deal and why thats important. Also to understand here today that, you know, President Biden in 2022 and 23, the price of oil was going up and so what did he do . He drained the Strategic Petroleum reserve by over 40 . You know, heres one of the things that we have to understand about this. Number one, if you actually study that, theyre held in salt caverns. These salt caverns have actually been collapsing and the integrity of them have been challenged as a result of youve got to flush all this saltwater in and, of course, salt in the water, it breaks things up. So our spr is actually kind of crumbling. We need to get fuel back in there really quickly. So players like exxon that are already positioned very well, u. S. Companies here that are going to be able to supply and fill this up, i believe, are positioned very well for the future and what we ultimately have to do as a nation for so many Different Reasons out there. But, you know, the world runs on diesel, and if we cant figure that out and figure out how to get, you know, fuel down in price, then were going to see inflation go much, much, much higher. So i believe that theres going to be investment into this. Its going to become favorable again even though theres such an anticlimactic way of looking at owl producers right now. Cheryl do you think the commodities are going to outperform technology . Because theres been a lot of back and forth depending on the day of whos the winning sector. Yeah. So as far as the technology goes, you know, technologys usually looking really far out into the future. So as we look far out into the future, well, thats not kind of where we are right now. We need things here on the short er term. Im really bullish on copper. I think uraniums a really important idea. These green ideas are wonderful, but weve got to be able to resource them. The challenge is weve hunlderred exploration hindered exploration, yet weve brought the demand up. So you just talked about elon musk. All these evs, i think that they take 85 pounds of copper per ev on average. And so, you know, weve got to be finding these resources someplace, and, you know, with demand up but supply not being able to rise equivalently, thats an opportunity for investors to be able to get in on something right now. And i believe that theres some amazing organizations here. Again, u. S. Based, wonderful. There are places that we can go abroad, but there are some players here today that are positioned well. And i think what led us into the bull with market is probably not going to be what leads here in the next decade as we have higher inflation, weve got with more volatility thats going to be taking the place. Cheryl yeah. Well, tech is so sensitive to that, david. Were out of time. David stryzewski, thank you so much. Lets take a look at this, guys, because were with up 285. We did not start the day this way. John paulty yore ya is going to be here monday. Dont miss it. Thats it for me. Now its time for some kudlow. Larry hello, folks, and welcome to kudlow. Im larry kudlow. Heres a warning on the economy when you look at th