tv The Claman Countdown FOX Business July 6, 2022 3:00pm-4:00pm EDT
list so listen the 50 wealthy, they're selling retail investors standing firm, what's ironic though is it's a textbook says it's the right move. you should be buying in this weakness not selling but the bottom line, the retail investor, ain't leaving. i love it i think that's the right thing to do. meanwhile we have cheryl casone in for liz claman, over to you. >> cheryl: charles the retail investor has to be smart because in the second quarter, stocks plunge in general lost more than 16%, so homework is good, everyone. now the question is what is the fed going to do at the end of this month. investors trying to read through the lines of the june fed minutes at this hour as fomc participants zeroed in on bringing down sky high inflation markets are trading in a narrow range in a choppy session the dow is higher by 147, s&p up 23, nasdaq up 80. our floor show traders are going to tell us what they make of last months read-out as the fed looks ready for even more rate
hikes, especially the meeting, the last week of this month. now, these higher interest rates driving up mortgage rates, making it even more difficult for first time home buyers to achieve the american dream. divy homes has a unique rent to own alternative and its ceo is here to explain in a fox business exclusive and chaos at the airports driving summer travelers mad. what is behind the disruptions at the airlines? and are there still summer deals to be had? we're going to take that up with the founder of scott's cheap flights. hello, everyone i'm cheryl casone and i'm in for liz claman taking a look at your markets right now the minutes from the federal reserve's june meeting indicate more restrictive tightening on the horizon. after initial sell-off, we are seeing some choppy trading right now, as you can see the dow is holding on to gains but its been very volatile, really since those minutes came out an hour
ago, as you could see the s&p is higher by 18, nasdaq is up 64, s&p is still though in bear market territory. the russel 2000 a little bit of pressure there. now all 10 barely flinching on the news, the 10 year, excuse me , the 10 year treasury barely flinching on the news. we'll get to the sectors in a second but despite phrases coming out of the minutes such as "significant risk" that inflation could become entrenched and"the outlook calls for a restrictive policy stance" which to be fair, fed chair powell did say in that press conference he held after that decision. this all might be because investors have had their eyes on an interest rate hike in july. let's look at this. this is very important fed funds futures showing a 90% chance of a 75 basis point hike this month , and powell told us 50 or 75, futures markets say they have to go big. let's get right to the floor show with our traders, fidelity
john gagliardi and seaport securities teddy weisberg and teddy, the fed, it was inflation, inflation, inflation, we got that out of the minutes understood, but what do you make of the bet here that we're going to get a 75 basis point jump at the end of the month? >> well of course, i know what you just showed your viewers, but the fed said, you know, 50 or 75. listen, it's sort of a bit of a game here. clearly, they have an agenda. i don't think there were any surprises in the fed minutes. i don't think there's any surprises with the prospect of 75 or , you know, i guess at this point 50 be better than 75 because as far as the stock market is concerned, but i don't think there were any surprises there, cheryl. i think clearly, june was a horrible month for investors across-the-board. the big test i think going forward is going to be the release of second quarter earnings and how markets of individual stocks react to that and we'll find out soon enough
if a lot of this negative news is priced in and we're going to see hopefully the negative news absorbed and maybe the market trying to make a bottom here. i'm not quite so sure, but that's going to be the next major event for the stock market >> exactly, teddy. a lot of the analysts we talk to on this network say you need to expect this as a retail investor through the end of the year. i have seen more bullish forecasting, john, that maybe the fourth quarter maybe where you start to see a turnaround for the markets, because bad news begets bad news that begets selling but then a bottom is found. >> cheryl, we're seeing a massive sell-off in basic materials, and no ones really talking about it yet, but we're seeing things like copper, aluminum, steel, iron, all down 20-30% and at the same time we are starting to see oil come up down 10-15% depending on which
day you tune in and that means that the fed is being effective. the question is will they over stay their welcome and that's really what we're waiting to see happen in july and again in september. >> teddy i'll take that back to you because one thing we did learn and this surprised me during the fed decision i covered it here actually, was that they made such a knee jerk reaction to the inflation data that they dot. we are going to get cpi next week just to let everybody know here, that's next wednesday, consumer price, that is the piece of inflation that's that 40 year high we talked about all the time here on fox business and on fox news so teddy, i think the question here more than anything is if like he's talking about commodity prices coming down. we're at march level for copper, wheat, corn, also john great point about oil. oil is falling so teddy, doesn't that signal to you that the producer price inflation is going to come down? that gets passed on to the consumer, and then all of this , these red arrows, red flashing signs about inflation start to
calm down. >> well, i absolutely agree and i think the observation is absolutely right on the money vis-a-vis the metals and now we're starting to see it in oil so i guess you'd have to say that to a large degree, that the fed has been effective. the problem, i think we all have , as investors and this is what makes it really really difficult, is the fed is sort of playing short ball here. they've been behind the curve for months. i think they are still behind the curve, and cheryl, you just mentioned it a second ago. is there a risk that the fed is in fact going to overreact with raising interest rates. they're trying to fine tune a giant oil tanker at sea and it takes a long time to turn a giant oil tanker at sea around which is equivalent to the u.s. economy, yet the fed is playing short ball, not long ball here, and it just makes it so difficult for the markets and for investors because you know,
we're getting all this knee jerk reaction kind of stuff and it's just very difficult, but you might point out that it's kind of interesting that the fed is basically trying to engineer a recession and the economy to deal with interest rates, and, i mean, that's kind of -- >> that's a bold statement, teddy. very bold statement. >> i'm sorry. that's a bold statement that you just made that they are trying to engineer a recession. >> well, i mean, that's how they are trying to deal with interest rates. >> interesting. >> trying to slowdown the economy by raising interest rates. >> yeah, well the bond market, john, we're going to leave it with you but the bond markets already pricing in a recession, john, so if that is the case, then, well, we'll see what they do. one more quick thing i want to ask you, john, about this report we got today on the labor market with the jobs report coming out on friday, john, and what's interesting about this talk about recession is you've got this really tight labor market and so that tells me that that's
going to keep consumer spending strong, and maybe you don't get that technical recession. if it feels like a duck, it quacks like a duck, it's a duck and this recession feels like a duck, okay? but at the same time, and sorry for the simple analogy i know you're both smarter than that but at the same time what the labor markets i have to question if we are going to get that true recession in every sense of the word. >> i talked to traders all the time and what they're trying to do, i hear people asking all the time is, do i tune out the economics to focus on the market? and my answer is the markets are what you're investing in. it's not the economy, it's the market, and even if you just took the market at its word right now, the s&p is down 20% today right now. if you're able to buy at the market with a 20% discount today , when the market goes back to par, you're not up 20%. you're 25. in fact if you had to index that was trading at 100 you waited
for 80, you'd buy in at 80 when it gets back to 100, you've got 25%, so it pays to have been patient if you got cash on the sidelines at some point, people are going to start to see the risk reward start to make sense where how much more downside do i have versus all that upside? and that's where the bottom is. >> i know a lot of folks out there right now i talk to sources of mine that say look i'm not looking for 15% in 2022 as an annual return. i'm happy with three to 5% i'll take that at this point and do you know what? this is one of those years that we're going to look back and go well 2022 oh, well. john gagliardi, teddy weisberg, gentlemen great to see you both thank you so much for being on the show as we watch these markets and obviously a lot of the red arrows you're seeing on your screen. so we've got a few stocks we want to go through right now. amazon is sweetening up its prime membership perks, but they are teaming up with just eat takeaways grubhub. this is a major deal for these two companies, for amazon and
for just eat takeaway.com. the e-commerce giant is going to receive warrants representing 2% of the food delivery company shares. in exchange, amazon prime members are going to receive a free one year membership to grubhub plus which waves delivery fees for users. if the deal brings grubhub enough customers, amazon gets an additional 13% of their shares. the agreement will renew every year unless one party terminates it, amazon and just eat takeaway as you can see both stocks are higher, amazon up by 1.5%, just eat takeaway is up by almost 13.5%. here is the other side of this though. food delivery competitors uber and doordash, yup, opposite story. they are seeing red and this is actually, it could be very bad news for uber eats and obviously for those companies as well. that new partnership, now let's take a look at rivian right now. they are saying that they are on track to produce 25,000 electric vehicles this year. that's going to meet wall street
expectations. the stock, as you can see , is higher by more than 10.5%. the administrations-backed electric truck startups saying it produced 4,400 vehicles in the second quarter that's a 72% increase from the prior. the company also delivered 4,467 vehicles, nearly four times more than the proceeding quarter. that stock is higher. starting in august, norwegian cruise line passengers will not have to get tested before board ing unless required by local regulations. that decision comes as cruises try to tap into increased demand for the summer season. but after two years of losses during the pandemic, the industry now faces surging costs, and an uncertain demand outlook in the face of a looming recession. norwegian, as you can see , is lower by more than 9%. carnival down almost 6%, royal caribbean down more than 6%. shares of rocket companies are blasting up. i had to say that, rocket companies as you can see right
there is higher by almost 5%. wells fargo upgraded the rating on them to overweight. wells fargo says the fintech which owns brands like rocket mortgage and true bill says negative sentiment over mortgage s may have peaked and the company could be poised to gain market share overtime given its scale. well, cancellation chaos at the nations airports driving holiday travelers batty. the founder of scott's cheap flights is here to tell us what the real problem is with the aviation industry and if you can still find a bargain, in the post-pandemic travel boom, take a look at the big board one more time before we go to break. these numbers have been back and fourth now the dow is up 159, the "clayman countdown" is coming right back. your record label is taking off.
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and so many more in the xfinity app. >> spirit airlines getting the rights today to operate 16 new flights out of newark liberty international airport. the u.s. department of transportation giving the low cost carrier the nod as southwest airlines departs from laguardia in new york city. the dodge saying it will improve competition and add cheaper
flights to the newark market. as the post-pandemic travel boom creates chaos at the nations airports, one company standing ready to find you the best value , on a budget is scott's cheap flights and joining me now is the founder of that company scott keys and scott it's great to have you here so much to discuss. let's start with newark if you don't mind, because we've got this fight between united airlines and the faa over at newark which is what's happening to the whole system. air traffic control is saying that the pilot shortage and buttigieg are saying it's a pilot shortage. united airlines ceo today said no it's the air traffic control shortage, labor shortage that we're seeing. what do you make of this back and forth between united and the faa? >> the truth is that it's both and, you know, the fact that airlines don't have enough, not just pilots but also ground crew , gate agents, and the fact that the government doesn't not only have enough air traffic control workers but they don't
have enough transportation security officers at many airports, and so it's this culmination of labor shortage across the economy and across the airline industry that's causing there to be massive delays and cancellations , especially during this high travel time and especially as many folks get back to taking their first trips since the pandemic began. >> you know, my source told me that the airline industry was expecting a u-shaped recovery. they got a v-shaped recovery. they got hit and surprised by the revenge travel story of the summer, everyone wants to get on airplanes. he said this is going to go to the end of the summer do you think that's true? >> i think so and i think that's why we're seeing so many of the issues with cancellations and labor shortages to begin with, because rewind to march and april of 2020. airlines are seeing travel demand drop, not the sort of five, 10%. they saw it drop 70, 80, 90% and
what they were facing was not a, you know, a short or medium term downfall, they were looking at an existential crisis in their view. would they even come out of this as american airlines, as a delta airlines, and so what they did was not only start offering buyouts for pilots, start offer inger are retirement but also pausing new hiring and by the time it became clear that travel demand was going to bounce back much quicker that v- shaped recovery like you mentioned cheryl, it was too late and we're still paying the price today for that dis investment in pilots and in labor across the airlines, and it's going to take sometime for that to sort itself out. pilots are not an entry level job. >> no, you can hire a pilot but you need six months of training to get them into the seat and when you had the senior pilots retiring or taking early buyouts during covid, you've got now the younger generation of pilots if they want to jump up a
seat or an airplane, get trained on a new one, that takes at least three months, so it's a mess. anyway, let's get to your company and what you're doing for your customers and assuming you have a lot of folks that worked with you that had cancellations i want to ask how you're handling that tough part of it but on the other side, how are you helping people find deals out there? >> cheryl let's start with the cancellations and advice. look, one of the main things that we've been trying to do throughout the pandemic is remind folks of what their rights are under federal law, and the fact is that when an airline cancels or significantly changes your flight, you're entitled to a full cash refund if you would like one. you do not have to take the flight voucher they offer. you don't have to take the travel credit or the miles if they cancel your flight, you're entitled to that cash refund and they might not always be proactive about telling you that. they might say oh, cheryl, we've already processed your voucher, click here to accept your travel credit and maybe in the fine print saying if this is not
acceptable call us at this number. so knowing what your rights are and that you're entitled to that cash refund is so important so that you make sure you don't end up with something less. >> love it love it love it you also have memberships, right? >> that's right. so cot's cheap flight operates is to make sure you never miss a great deal out of your home airport because you didn't happen to be searching for flights at that specific time. airfare is one of those funny things it is the most volatile purchase we regularly make. a flight from atlanta to amsterdam i remember looking recently on monday was $800 round-trip and on tuesday it was $300 round-trip and on wednesday it was $1,300 round-trip so we find those deals and make sure that folks don't miss them. deals like just this morning from san francisco to paris for $383 round-trip over valentine's day, or for the business class folks among us, there were just fares this morning from new york city to paris or zurich under $2,000
round-trip in the lie flat business class seats. >> scott as much as i hated sitting in an airport for five hours on monday you're making me want to get back into a plane so i appreciate that. scott keys good to have you thank you so much for all the insight we appreciate it. we want to show you live pictures right now. president joe biden is in the buckeye state at this hour. he's making remarks in cleveland about protecting the pension plans of millions of workers. it's tied to the american rescue plan. we'll have details straight ahead from the white house and what the president is doing today and what he's saying, actually, right now. take a look at the big board. dow is up higher up 187, the volatility continues you don't want to miss a minute that's why you're watching the "clayman countdown." we'll be right back. meet jessica moore. jessica was born to care. she always had your back... like the time she spotted the neighbor kid,
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you these live pictures from ohio. president joe biden announcing plans to protect millions of american workers and retirees facing pension cuts. again, these remarks are happening right now, cleveland, ohio. the president announcing that between two and 3 million workers facing cuts, due to investment losses, are going to be granted the full benefits they paid into for retirement. this is going to go through the american rescue plan. let's bring in edward lawrence at the white house with more, and we're listening to them on the commercial break where he's talking about obviously how important unions are in this country. reporter: and that's been the big push and solidifying his base going forward for support. you see the poll numbers the president has had, now president joe biden talking about the low unemployment rate, or near record low unemployment rate he has created, he says, in his economy. what we will not hear him say is he will not hear him talk of anything about recession going forward. now the president is laying out here a final rule from the
american rescue plan. money that can help pensions that are close to failing, through 2051 the money will make those plans solvent through that date. now according to the white house , we're talking about 200 plans related to as you said two to 3 million people on this. now the president will likely brush over the fact that inflation is near record highs here. the former chief economist for the international monetary fund says that he worries about an over-reaction to the policy mistakes that he says that he's seen. listen. >> i'm worried they are going to take one mistake, both fiscal policy and monetary policy, of just having run the economy much too hot, and go in the other direction and step on the brakes too much. reporter: and he says he sees those economists we're talking about helicopter money a year ago, slowly changing their tune to pullback on the spending. you see no pivot here at the white house as president joe
biden is pitching more spending to bring down inflation and today, specifically, in cleveland pitching that spending for the american rescue plan about pensions. back to you. >> captive audience there as well, edward. by the way we're going to get cpi next wednesday so depending on how that read comes out that could be another tough piece of news for president biden if we get that 40 year high again. edward lawrence live at the white house, sir, thank you very much. good to see you. well, first time home buyers slammed with high prices and high mortgage rates, but now, there's a unique alternative. the ceo of divy homes here on her company's rent-to-own a home model. take a look at the markets. during the president's speech there as he's addressing that crowd in cleveland we're hitting session highs just a little off of those right now but the dow is still performing strong. we're up about 213, s&p up 233, nasdaq up 103. we'll be right back.
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>> well, could the big apple be the first sign that the sizzling housing market is finally chill ing out? according to a report by douglas solemon, and miller samuel, manhattan apartment prices hit a record median price of 1.25 million in the second quarter but despite the listings , sales dropped 30% in june, but coming in for the quarter, at 3,834 for the second-highest since the housing move of 2007, so, with apartments in the empire state seeing a cool down, what does that mean for homebuyers? real estate fintech divvy is helping homebuyers rent-to-own their dream home without the hassle of a mortgage. it has secured over 2 billion in funding from d.c. firms, tiger global management and joining me
now in a fox business exclusive is the divvy homes ceo adina. it's great to have you here in particular because with mortgage rates rising we're seeing a lot of the first time homebuyers getting priced out. they could come to you and you could help them rent-to-own. explain the model. >> well first of all, thank you , cheryl, for just having me here. it's an absolute pleasure. yup, so divvy is a way to provide access to homeownership who maybe can't get it today and that's because mortgage prices have increased, because they haven't saved up the down payment, whatever the reason we're here to support them so the way the program works is there is a rent-to-own program. we underwrite our customers budgets and we'll say here is a budget for a $400,000 home in your local area, go out shopping the customer then picks out the home, pick out whatever home they want. we buy it on their behalf, they move in, they pay one monthly payment, part represent, part
equity and the equity building up their ownership in the home similar to how the mortgage you have principal and interest, and at any point in time they could refinance divvy out and roll on to a mortgage or cash out their equity and walk away. >> how do mortgage rates though affect that scenario? because they are moving a lot right now. >> that's a great question. yes, it went from about six months ago having interest rates for mortgages 30 year fixed i think at 3%. today, having it going up as high to 6%, 30 year fixed rates and then came back down a little bit to about 5.75%, and so the more expensive that mortgages are, the greater the population of americans who get locked out of the mortgage market and so as a result, this forces people to start looking for other options so you actually see something like a rental being quite counter cyclical. you have to look somewhere because you can't own, you tend to turn towards renting, and then turn to divvy, because
we're a nice hybrid option. we give you the benefits of homeownership in terms of taking out the homebuilding equity but it's the commitment of a rental. >> i want to point out to our viewers on the screen you're looking at the dow sitting at session highs up 255 what's interesting is because the markets had a rough first half of the year, and now, a lot of folks are looking at the real estate portfolios and going oh, gosh that's going to be a problem as well maybe i can't afford to buy a home and the markets not giving me a return what do i do? so i think that's an interesting entry point for a company like yours to get in there and just step in but let me talk about, you know, the locations, because are you finding that business is better in certain states, versus others like basically where are the hot markets for you right now? >> completely. so we operate across 16 different metro areas, 16 different regions. i would say what we're seeing right now is hyper-local in terms of what is happening with housing prices, and so you're seeing a market like phoenix
where inventory is starting to sky rocket and where i'd say it's probably an area where i be more concerned about where home prices are going to go for the next couple months so phoenix and austin are two markets like that. we actually don't operate in austin, and then you have markets like atlanta which is one of our core markets which is holding up significantly better. so what we're finding is one this is hyper local. two, we're seeing a really big impact from mortgage rates, and where those are going and three, it has to be with how much inventory has been built up over the last couple of years. you know, one of the things that divvy does so well is we provide certainty in a really uncertain market. we lock in payments for you and we also lock in a buyback price which means that you have the option to buy the house from divvy had to a preset price if the market appreciates to there and if you don't want to buy the house you walk away and cash out your equity so we're really focusing on how you can hedge your own buying power and
divvy is a way for our consumers to do that. >> i know we have to run but obviously the price of the home, the value of the home is playing into this as well. it's a very interesting way, i think again, for first time home buyers to maybe get into that home, it's another option. adena hefets, thank you very much for being here, it's a great topic as you know because for me folks i say this every wednesday, you don't want to miss the real estate block on fb n prime because guys that's tonight, "mansion global" with k acie macdonald getting everything started at 8:00 p.m. eastern time followed by my show "american dream home" at 9:00 p.m. eastern time. all those episodes are airing and running tonight. don't miss it only on fox business. all right, well again, we're off session highs on the dow, but the lake of the ozarks maybe the setting for the netflix hit ozark, but most of the production took place in georgia. now more states are looking to steal some of tinsel town's movie making magic.
>> crypto broker voyager digital filing for the firm becoming the latest casualty in the volatility in a digital asset market. voyager lost 650 million when crypto hedge fund three arrows capital went bankrupt defaulting on its loan to the new jersey based company. the crypto broker said the bankruptcy proceedings would setup a restructuring process that would allow to reimburse its customers.
cryptocurrency as you can see there is a couple that are slightly higher. bitcoin is at 20,000, ethererum 1,153, litecoin is actually lower. well, netflix hottest series is "stranger things" but unlike its season four settings in indiana, california, and russia, it uses $30 million per episode budget to shoot in locations across atlanta, georgia, albuquerque, new mexico and lithuania and stranger things is not unique as more locations try to grab some of hollywood's production business. kelly o'grady joins us live from paramount studios in los angeles with more on hollywood hitting the road. hi, kelly. reporter: hey, cheryl. well, stranger things is an excellent example of one of those iconic shows that doesn't actually film here in california , and it's all because of tax incentives. you have many states stealing share because it's attractive for netflix to recoup some of that money that they're spending when it's hundreds of millions
of dollars on a show. now i'm at that paramount studio lot and a lot of their productions don't film here either. more than half the states offer some form of a film incentive. you mentioned georgia. that's become a big winner because it has no annual cap. california restricts tax credits to 330 million annually, but last year alone georgia offered 1.2 billion and that same year the golden state saw 39% fewer shows filmed here and those losses are meaningful, between 2015-2020, california missed out on nearly 8 billion in economic activity and 28,000 jobs due to tax subsidies in other states. now the latest jump into the competition is arizona. this week the governor is going to sign a bill offering a tax credit equal to 15 to 20% of production expenses. it's an attractive move for the state as well. production crews spend more on just the fill film. the positive impacts for the community. >> so when they come in here they spend more on lodging, on food, renting vehicles, and
trailers, on construction supplies and that type of thing so this tax incentive really is a true boom for the state, and all the businesses here. not just people involved in film , per se. reporter: and cheryl, it's not just the tax credits that incentivize people to move. many states offer a cheaper cost of living. you have production crews going into mexico, arizona, and they find steady work and they say you know what? i'm just not going back to deal with the high cost of living in california. that may lead to even more california exodus, cheryl. >> and it's smart of arizona, kelly, because you can drive your production trucks from la to phoenix in six hours, tack on another four or five and you're in new mexico. that's brilliant, i think. kelly o'grady, you do win the live shot location game of the day at fox business. >> [laughter] not bad. >> not at all. good to see you kelly thanks so much appreciate it. well, black gold is losing its luster, as oil slides again today, but our countdown closer
thinks one energy name could be primed for a gusher. find out which one in moments and let's take a look at the big board we're well off of those session highs the dow high was 256, we are now up 166. we'll be right back. lemons. lemons, lemons, lemons. look how nice they are. the moment you become an expedia member, you can instantly start saving on your travels. so you can go and see all those, lovely, lemony, lemons. ♪ and never wonder if you got a good deal. because you did. ♪
>> all right, leaders on the sent all intelligence committee are caming on the ftc to launch an investigation into the video sharing platform tik tok over its approach to data sharing. charlie gasparino with all of the latest. charlie: this is starting to get trumpian, and if you remember during the days of the trump adminitration, there was a concerted effort by the trump adminitration, by various i guess departments in the trump adminitration including commerce, essentially to ban tik tok. we're not quite there yet, and remember, there was a whole dance with microsoft.
they almost bought it, but they didn't, because the chinese government didn't want to sell it. then there was a dance with oracle. they weren't going to buy it. they were going to do some sort of i don't know what it was, put it in a shell company and secure the servers that didn't pass with the trump people they thought that wasn't secure enough and now we're back to square one. everything was a-okay until relatively recently. brendan carr, commissioner at the fcc wrote essentially to google and apple and said listen stop carrying them on your apps. stop making them free, and stop putting them there, because they're sharing data and here is the evidence and he pointed to a pretty extensive buzzfeed story which had tapes of people at tik tok saying how the chinese, because as you know, tik tok is run, it's part of a holding company, chinese holding company , have a chinese government has access to data. and it's the same stuff that the trump adminitration -- >> fear of the trump adminitration. charlie: yeah and this is a lot of data like they have access to location and you go down the
line, and now, it's starting to pick-up steam again, so carr 's letter comes out. buzzfeed story, i wrote something in the past. it's now in front of the senate and the senate intelligence committee bipartisan, they are writing the ftc, which has pretty expansive powers to do something about this , and tik tok, from what we understand , their reaction is pretty interesting so now this is how you know it's serious. they know it's serious is that sources are telling the fox business network they are out there trying to hire lobbyists and pr people, people with experience and contacts to on the hill, both republicans and democrats because this is a bipartisan effort and this is senator warner on the senate intelligence committee, and marco rubio, the ranking republican to go up there and start pushing on the hill tik tok story and tik tok story is simply this. we are trying to safeguard all the data, the chinese government you know, we're trying to make sure it doesn't have access, but
you know the problem them they have is i'm telling you, i keep asking them. explain what buzzfeed said. are you going to deny this report that buzzfeed, and they quoted based on tapes. tik tok officials saying the chinese government has access. they don't deny that. it's the scariest thing and weird so i don't know how they are going to do this on capitol hill. my guess is that they are going to have to figure out some sort of a thing, and maybe sell it, because it seems like it's this bipartisan, they want bipartisan effort, essentially to ban tik tok. i mean, and listen i never thought -- >> it's still popular though. charlie: i never thought my nieces, my niece does dance routines on tik tok and apparently, adults are starting to do it too. i had a five hour delay on monday and i sat next to three teenagers. they spent nearly three hours, all they did was watch tik tok videos and talk about them for
three hours. i was like wow this is what kids do now. charlie: yeah, you can get a lot of data from that, and if you, i mean, you could just imagine what type of user data you can get from that if particularly also adults are getting involved in it. >> i know adults who love it. charlie: all right so if you think about that, if that's an issue, that's also an existential threat because that's where the data mining can begin, and it's different than, we're worried about facebook, facebook at least is an american company when they mine our data and target advertising, i get advertising for protein shakes and weight lifting stuff, food stuff. i mean, who cares. but the chinese government, i need makeup, but if the chinese government -- >> [laughter] charlie: is getting your data, that's a little different, so that's what we're talking here so watch this. tik tok is reacting as we are reporting, excuse everly, that. cheryl: u.s. official do actually said china is the biggest threat to this nation
that we're not talking about. that is as they're talking about relaxing tariffs. biden is talking about pulling tariffs on china which i think is horrible idea. >> he gets it, he is a democrat. you wonder what is going on the biden white house. they dropped the ball, face it is not exactly well-oiled machine there. you don't have to be partisan to say that. it is what it is. cheryl: charlie gasparino, great story. four minutes to the closing bell. dow off the session highs. we were really off the session highs. we could close in the red. we were up 256. now we're up only 25. take a look at oil, this is an interesting story, we're declining on the oil contract for the second straight day. we're below 100 bucks a barrel. will this help gas prices? we'll see. u.s. prices are in bear market territory. that is defined by 20% more
decline from recent high. energy stocks getting smacked as well. our "countdown" closer still bullish on one name in that group. i want to bring in portfolio manager of hodges fund, craig hodges. energy has been the savior for a lot of portfolios so far this year. do you think that is changing? >> well, it was the last remaining strong part of the market that over the last two weeks has absolutely been clocked and when oil stocks went up, it went up pretty much because of the commodity. there was no real multiple expansion in oil stocks. so they are incredibly cheap now and, you know, oil has come back into the mid 90s but can you imagine us thinking that the mid 90s are a low oil price? it is all relative. i guess your perspective. cheryl: what is your pick for oil and gas? i teased it. now we have to deliver to the viewers. what is your name? chesapeake? >> chesapeake.
they're known back in the old days for being the wild west, the worst balance sheet. it has all changed. they have one of the best balance sheets. here is a company probably over, trading about 2 1/2 times ebitda, 2 1/2 times ebitda, they will make 14 billion in free cash flow over the next five years. the stock is incredibly cheap. insider buying, you know, it has pulled back from around 100 into the low 70s. i think it's a tremendous opportunity. cheryl: might be an entry point right now considering what is happening with oil. you have two more names that you like. let's get to those. >> one, the theater business is booming now. cinemark, it's a dallas, texas, company where we're located the hodges funds. "top gun" did over a billion. minions over the weekend did like 128 million.
"elvis." "jurassic park." people are going to the theaters again. this stock is trading at 15. a year ago when theaters were not open and no movies to see the stock was 25. i think there is a real disconnect there. we think that will continue with a good slate of movies. i like cinemark down here tremendously. cheryl: i have 20 seconds. you like freeport-mcmoran. that is interesting we're seeing copper prices sliding back to march levels right now. >> the stock was 52 a month ago when they reported earnings. it is now 26, it has been cut in half but the problem, the problem, the supply of copper is an issue. the demand has gone down but supply will be an issue for years to come. this is a great opportunity to buy freeport on a 50% sale. cheryl: are you telling me copper prices might tick back up. for the home building industry, that was kind of a boost craig. >> short term.
cheryl: love the energy pick, if you're coming from dallas, texas, as you are that is all the credibility you need in my book. fellow texan, craig hodges. good to see you sir. [closing bell rings] looks like nasdaq will be closing high for the third straight day. the dow is up 60 points. we were up over 260 points. oh, well. that is it for me. "kudlow" is now. ♪. larry: hello, folks this is "kudlow," i'm larry kudlow. my message to those with prices at pump this is time of global war. bring town the price reflecting what you're paying for the product, do it now. first up if donald trump did