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tv   The Claman Countdown  FOX Business  July 12, 2022 3:00pm-4:00pm EDT

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probably ain't nothing but a number unless a clear detriment. something to keep in mind. you know what? i want to be careful how i make these age arguments because i ain't no spring chicken myself. nevertheless, people are concerned. you're in the capable hands of lauren simonetti in this last hour. i think we've got a sloppy bond auction setting the tone. lauren: yeah. speaking of chocolate chip cookies, charles, i mean, they're still good. [laughter] charles: at any age. lauren: and i thought you were going to call me a spring chicken, but no dice. thank you, charles. hi, everybody. wall street investors playing a waiting game, markets trading in a pretty tight range ahead of the big report that comes out tomorrow, inflation in america with june cpi. the dow and the s&p are looking at three-day losing streaks as oil tumbles below $96 a barrel. we have jpmorgan asset
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management chief global strategist david kelly here to tell us what he's seeing as the u.s. dollar strengthens, commodities weaken and the fed if gets set for, yes, another big move higher when it comes to interest rates. and it's amazon's prime day. not sure if people care as much this year. blockbuster deals on all sorts of products. our retail panel is here to tell us who's getting the best bargains, is it the consumer or the investor? plus, the crypto collapse turning downright bizarre. a pair of bankrupt crypto hedge fund founders appear to be the on the lam, what this all says about the crypto winter. and twitter fires back. charlie gasparino once again on the social media giant's reaction to elon musk just walking away from his $44 billion takeover bid for the company. charlie is going to break it for us. i am lauren simonetti in for liz claman. and a fox market alert, take a
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look here. the dow is down 69 points, the s&p is down half of 1%, the nasdaq down two-thirds of 1% but the small cap russell 2000 is fractionally higher. take a look at oil now. pell well below $100 a barrel, right now at 95.59. that's for wti, brent also earlier fell below $100. it's typically more expensive. opec warning that production, it's lagging behind the target that they set. oil's also being hampered by the strong u.s. dollar which flexed its muscles today. did you guys see this? if it's time to pack the bags and go to europe. the euro touching parity with the u.s. dollar for the first time in 20 years. look at that. it's just about there right now. the euro is down 12% this year, bogged down by high inflation and energy supply uncertainty from the ukraine invasion that has fueled recession concerns in europe. but, hey, recession concerns are
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are everywhere because inflation if is a concern being pelt all over the world. -- felt all over the world. wall street anxiously awaiting tomorrow's cpi which is expected to have increased 8.8% annually in june. some people, some economists are saying, nope, it's 9%. we'll see. investors also want to know how companies are managing these higher costs with second quarter earnings season kicking off here for our floor show. david kelly. welcome, good to see you. if both the press secretary -- look, the press secretary said cpi is backwards looking at old data. is she right considering breathtaking drop in commodity prices that we've seen in the past five or six weeksesome -- weeks? >> well, i think she is right in general here. i mean, we're going to get one more harsh month out of it because what happened was commodity prices peaked in early
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june, gasoline prices peaked at over $5 a gallon since early june, but since then they've been heading straight down. we may get with nine-tenths of a percent for july, but i think the heat wave's about to break here. we get one more really hot report tomorrow. lauren lauren even if the heat wave breaks and inflation starts to cool, it's still to too high especially considering the stick thier components like rent -- stickier components like rent, for instance. >> well, it is too high, but -- and i think it will come down over time. i'm much more worried about the federal reserve fighting a battle that they're eventually going to win anyway and putting the economy into recession. remember, there's tremendous drag on the u.s. economy right now. the deficit this year is going to fall by $2 trillion, the biggest percentage decline relative to gdp that we've seen since the demobilization after world ward ii. -- world war ii. that dollar is really hurting
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exports. so there's a lot of things slowing the economy down that's going to cool inflation down, but i'm more worried about doing too much and putting us into recession with that inflation not cooling. inflation will cool. lauren: that's interesting because jpmorgan says a soft landing remains a possibility. but, yeah, of course, there's risk of recession in the back half of this year, perhaps early next year. likely happening in the fourth quarter of this year, but then what are the possibilities -- and they see this happening next september -- that we start to see the fed back off and start cutting rates starting with 25 basis points? >> i think it's quite possible and, indeed, that's why they shouldn't go 75 basis points at the end of this month. what's going to happen is the economy's going to cool down, and i actually want higher rates in the long run. i think it's a bad idea to have very low rates for a very long time. it destroys everything. they're never going to be able
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to get sustainably high rates if they push up rates too quickly, put the economy into a version. the futures market is saying the federal reserve is going to have to cut interest rates next year, and at the moment i tend to agree with that. lauren: yeah. we were just looking at the major averages. they're all down, session lows for the dow. but the nasdaq once again is the worst performer. it's down not even 1% today, i don't want to overdramatize the situation, but again tech is weak. can you have any bounceback in the overall market if you don't have tech bouncing back? >> oh, sure you can. we had it after the great financial crisis. financial stocks were very low for a long time, but the rest of the market came back up. i think a lot of particularly mega-cap tech stocks have gotten too expensive, and when interest rates are higher, people rethink, well, what is it that i own. and when they think about what they own, i think the most expensive tends to get hammered the most. i think that's what we're seeing
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here. it is somewhat healthy, to be honest, that people are asking themselves questions about valuations here, and i think that's really what's hurting tech. lauren: we're in second quarter earnings season, you know in we started to hear from some companies, the big banks start on thursday. do you think analysts are finally catching up to where wall street is in discounting so many of these big, hot names with their share prices down sharply? i'm looking at jetblue, union pacific, lennar. are the analysts finally playing catch-up to the rest of the market? >> i think they probably are, but it is a game of catch-up. i think one of the things we find in earnings season is the dollar's actually very important. if the dollar goes up very strongly, that that pushes down all the value of those overseas earnings. they all come down, and that will hurt the second quarter earnings seasons, so i think we're going to see some disappointments on revenue. i think analysts are catching up, but i still think the
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earnings season may be disappointing relative to what analysts expect. lauren: david kelly, thank you so much for the time. >> anytime. lauren: president joe biden meeting with mexican president lopez if obrador earlier today, the north american leaders cussing the ongoing immigration -- discussing the ongoing crises at the u.s./mexico border. and later this evening the president will board air force one for his first official visit to the middle east. biden's 4-day tour begins in israel and will end in saudi arabia where he will address soaring oil prices and gas prices. we have edward lawrence live in jerusalem ahead of president biden's arrival. edward, what can we expect from this visit? >> you know, and that's the big question we're all wondering and the white house struggling a little bit to try and talk about those deliverables. but the president, as you said, getting on a plane, on air force one, coming here to jerusalem
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later on tonight -- or getting on the plane later on tonight. he'll be here in jerusalem tomorrow. on the verge of that visit, the white house has announced they used a drone strike to kill an isis leader in syria. the president's been making the case this past week that his middle east policy is making the globe more safe. he's also trying to reconnect a relationship with israel. now, while here the president will highlight the money that he's allocating to israel. national security adviser jake sullivan said with help from congress the u.s. is giving $500 million to the palestinians. the trip will be overshadowed, though, by president biden's visit to saudi arabia later this week. republicans say the president should go to texas or oklahoma for oil, not saudi arabia. >> he's going over there will to try and purchase oil from saudi arabia, that to me is just a huge mistake. so we'll see if that's one of the things he's trying to accomplish there when we can do that right here in the united states. i'm glad he's going to israel. israel is a key partner for us in that region, obviously, and
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always has been. pleasure. >> reporter: so faced with near record prices, 40-year highs with inflation and falling poll numbers, the president needs the price of oil to drop, but he's being coy when asked if he plans to ask for it from the saudi king. >> he will have the opportunity among this very broad agenda to talk about energy security with the leaders of the peck nations in the middle east -- of the opec nations just as we discussed when he was on his trip to europe and the indo pacific, and we will see what results come from that. >> reporter: but the white house has been very vague about what tangible things they're going to get from this trip. we'll have to see, lauren. lauren: yeah. i'm just thinking about that washington post opinion piece that the president wrote, right? 1300 plus words. and oil was mentioned just one time, edward. so you kind of have to read between the lines to see what he asks for, how he asks for it and
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what he gets. edward lawrence, thank you so much for covering throughout the week. >> reporter: big elephant in the room. lauren: clearly. the crypto craze is even crazier, if that's possible, after the three arrows capital founders go missing after their crypto hedge fund goes bankrupt. eco ceo and coinless co-founder andy brawl berg is here to put it all in perspective if, quite frankly, that's even possible. you can see the selloff does continue, the dow is now at session lows, down 157 points. the other markets are lower too. look at all that green that was on the screen earlier today and erased as we're in the final 49 minutes of the trading day. "claman countdown" coming right back. ♪ ♪ >> tech: need to get your windshield fixed? safelite makes it easy. >> tech vo: you can schedule in just a few clicks.
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♪ lauren: cryptoto currencies dropping at this hour on, you guessed it, recession fears. bitcoin, look at this, $19,597, down 2.5%. it is below that key $20,000 level that it seemed to be holding the past couple of days. and it certainly wipes out last
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week's high of just about 22,000. etherium and litecoin both down almost 5%. so the drama completely intensifies. do you remember three arrows capital? that's the crypto hedge fund, they filed for bankruptcy july 1st after the overall crypto crash and the usd stable coin implosion? if it forced $10 billion in as sets into liquidation. well, the company's founders, su zhu and kyle davies, appear to be on the run are. their whereabouts are not known. they were set to be many court for a liquidation hearing to the, but one of them -- today,s but one of hem didn't show up. one of them did remerge on twitter, and he accused liquidators of baiting -- there's his tweet. so this is a lot to digest. it's a lot for the nerves especially if you're an investor. and it may make future crypto investors stay away. with that, we bring in eco's
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ceo, andy, is this the time to be investing in cryptocurrencies? this is a wild story, that the founders of a hedge fund are mia. >> it's a wild story. i do think think the three arrows capital situation is not specific to crypto. in a lot of ways it looks like the archipelago hedge fund a couple of months ago. and that's something that can happen in equities as we saw. and investing in the crypto market is a risky endeavor. we're still early in this ecosystem, and i think what we'll see over and over again is early technologies are soltism would i tell someone to invest in crypto? no, not necessarily. it's a personal decision. we're hearing a hot from people right now that they are wanting more transparency into their money. people are feeling the pain of money right now whether that's inflation prints at 8.6% or as fees hitting them from every direction, and people want
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transparency in their money. crypto can sometimes provide that, so for certain people it is an interesting case to consider. lauren: but i thought bitcoin was the inflation hedge. not case. >> maybe eventually. i think in the early days it will function more like a risk-on asset. and that's okay. in the hong run, bitcoin -- long run, it seeks to be a storef vaut i bnhe elyayt i istill aativelyel ecivsseet.eeteetatwh weenk ahius pt cry ison a cyoyoan iyoes in,n ideu o's ao a thnolog al thn tolyol tanow benefit end users in ways other than just by trading on the asset. so while there's a lot of focus paid to the trading part of crypto, speculating in these markets, there's also the reality of products like ecothat are being built with this technology in mind. lauren: so, essentially, you need a strong stomach and a
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belief that in the future this technologying is here to stay is. but, i mean, bitcoin, ether, maybe a few other stronger players emerge here? what happens to the rest of the smaller coins? what does it say about them? >> i think the vast majority of cryptoassets will go to zero or be forgotten about. i saw that previously i ran a company called coin lift which facilitated digital asset product launching, and we saw thousands of projects apply to work, we only worked with a couple dozen of them because vast majority of them aren't good, and that's the reality of any new gold rush where people see an opportunity. but that said, just as in 2000, the bubble, great companies and projects will emerge. it won't be most of them, but some will find the next generation of financial technology. lauren: you brought up the crisis, and i'm thinking about the rockefeller chair, he kept parallelling bitcoin to amazon in the early '90s and how it dropped, like, 90% and
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then had this amazing comeback. and we amazon everything these days. i mean, do you see that happening with bitcoin specifically? if. >> i do think so. obviously, a different use case, but i do believe that bitcoins will be successful as a long-term store of -- store of value. replacing certain things like gold or other ways that people store value. other -- obviously, there's other use cases for many of those assets, but in part it is about storing value, and i think that's something that bitcoin is well positioned to do. while it's not risk-off yet, it has a pathway to get there. lauren: and it might not have reached its lows yet either. what do you see a -- as the low? i'm hearing a lot of 134,000 -- 13,000. >> it is impossible to say. it always goes lower than you ever think it would go or higher, and that's just the reality of operating in a nascent market. lauren: all right, andy, thank you. >> thank you. lauren: american airlines hits a
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critical post-pandemic milestone. details on that straight ahead in pop stocks. and let's check the big board. the dow jones industrial average down 140 points, the s&p and the nasdaq very toppy grading -- trading, but all three, including the russell 2000 which was higher, are now lower. we'll be right back. ♪ ♪ if liberty mutual customizes your car insurance, so you only pay for what you need. [ sfx: submarine rising out of water ] minions are bitin' today. ♪ liberty. liberty. liberty. liberty. ♪ minions: the rise of gru, only in theaters. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit
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voya provides guidance for the right investments. they make me feel like i've got it all under control. [crowd cheers] voya. be confident to and through retirement. lauren: we have a fox business alert. take a look at shares of american airlines. her soaring 9.5, 1470. american will report its first quarter hi profit since the start of the pandemic, expecting their revenue to rise 12% compared back to 2019 thanks to more bookings from quarantine-weary travelers paying higher prices and dealing with a whole lot of chaos just to go somewhere. and look at this, united airlines up 7%, delta up nearly
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6% at this hour. ca knew shares are also zooming, signing a deal with walmart to sell at least 4500 of its electric delivery trucks to walmart. the vehicles are expected to hit the road in 2023 but will begin deliveries around dallas in the coming weeks. shares up 58%, but it's a $3 stock. then there's the ev firm lordstown, replacing their chief executive. all part of a management shake-up in an effort to start production of their pickup truck. so edward hightower has been president since november. he will replace the current ceo who will become executive chairman. 4-year-old company plans to start production of its ev pickup with foxconn in the third quarter of this year, so very soon. stock up 4.6% at 1.81. ouch. all right, look at this, gap shares are falling 4.5%, hitting
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a one-year low earlier. gap issued a profit warning, said they're replacing their ceo, warning that second quarter revenue would come down, profit margin withs would be zero or, get this, maybe even negative. they're facing inflation too, pinches their bottom line. gap also saying their ceo is stepping down after who years and will be replaced by bob morgan on an interim basis until gap can find a permanent replacement. shares of peloton, ooh, can they fall even more? well, they're not, they're up. they're up 2.5%. here's the story. heir saying they're going to stop in-house production of their bikes and treadmills to cut costs. they're going to shut down the factories that were operated by tonic fitness technology that they acquired back in 2019, and the taiwanese manufacturer rexon industrial, will become the primary manufacturer of peloton equipment. peloton says hopefully this helps alleviate the cash burden
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on the business. they're hoping for a turn around. of we'll see if they can get one. if you had your eye on a new apple watch, maybe a generator, new pair of sneakers or maybe just some paper talls, because they cost an arm and a leg in this day, today might be the day for a pretty steep discount because it's amazon prime day. we're going to take a look at the online retail giant's annual event and tell you if it will even pump up the stock which is down more than 30% this year. let's check the markets, they too are down, the dow off 180, nasdaq falling 123 points, it is the worst decliner, down 1.1% at this hour. we're coming right back. ♪ ♪ i love all types of dancing... salsa, and even belly dancing! i am a triathlete. i've always been into health, and wellness, and fitness... i tried everything with diet and exercise, and nothing worked. there was just kinda this stubborn area on my stomach. but coolsculpting worked for me!
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lauren: take a look at amazon shares today. it's their annual prime day, it's today and tomorrow, but the company is offering many deals including, you ready for this?
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a of 65-inch alexa built-in 4k smart tv, originally 2500, now $1600. apple air pods pro originally listed at 249, now they're priced at about 170 for a savings of $79. but, look, the theme is inflation. it continues to hit consumer spending, and shop isers might look to take advantage on filling their shopping carts with necessities instead. and that is a theme we are expecting to see. let's bring in our two guests to talk about this. we have nick jones with jmt securities, an internet equity research analyst, and katie thomas. nick, katie, thanks for joining us. so, katie, is that really the trend this year, people are shopping for, like, diapers and baby wipes and pape you are towels -- paper towels instead of that fancy tv?
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>> we anticipated a shift in that direction, yes, lauren. historically, consumers have loved prime day because its summertiming allows them to shop for themselves guilt-free. so 87% of consumers are shopping for themselves. the main reason was, to your point, on tvs and air pods to treat themselves. now, close behind was historically stocking up on essentials, everyday necessities and staples, and so we do anticipate this year that those two will swap places and that more likely people will be trying to stock up on things they know they'll need and use as opposed to all of the splurges. lauren: nick, how can gnome's shopping for the stock -- nobody's shopping for the sock? >> yeah. i think there's increasing concern around impact of prime day overall on amazon, which we still think is a contributor. consumers still want to see it. there's rumors of even a 4q, second prime day which would be
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really interesting begin system of the excess capacity they have. i think shares are getting impacted by the software selloff. there could be with some concerns around aws softening a little bit. lauren: but, nick, would it be maybe concerns about fulfilling all of these orders? if even if there's a huge uptick in orders, that's exif especiallyive -- expensive. i'm thinking diesel prices, labor prices for amazon to fulfill, nick? >> that's a great point. they're adding a surcharge, 5% surcharge we talked about back many april. they talked a little bit about having connection capacity. we're pretty confident they have the logistics and the people to meet the demand marley as inventory -- particular particularly as inventory builds, becomes a bigger topic of conversation. and that's where i'd kind of point back to, you know, reports that there may be a 4q prime day. i don't think they would launch that if they couldn't give
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consumers what they were expecting. lauren: katie, how big of a concern is this inventory build, is my first question, and my second, is this high cost to fulfill online orders the reason why walmart is not answering am zune -- amazon prime day with their deals for days this year? >> well, you know, what we've seen from from who we've spoken to, it seems like the reason is inventory to. they already have a lot of great deals going on and specific inventory they're trying to sell off. so it seems like their take -- they're taking a bit of a different approach instead of going toe to toe with amazon like in years past. we think that amazon is equipped and strategic enough that they have, you know, really prioritized the deals that they know they can fulfill. so, of course, it's a lot of deals on amazon brands, the rings, the echoes, all of that, and orders they know they can full fulfill. it's not necessarily as robust
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across other manufacturers that we've seen in the same way, so i think that's the trade-off they decided to make. heroin lauren we keep -- lar lauren -- lauren: we keep talking about the strength of the consumer, how strong are they. everybody's talking about recession. but what about the small business? because the nfib came can out today and, you know, looked at all these small businesses that list their items on amazon. their optimism is down, their optimism into the future, nick, is at an all-time low. that can't be good for amazon, or can it? >> i mean, that's an area we're focusing on. consumer confidence is still weakening, but we still see demand for goods even though inventory levels, ratios are increasing, they're still relatively low to pre-pandemic levels, so we think there's enough dry powder in consumers' pockets to continue spending. but, you know, these small businesses, i think it's heading into uncertain times.
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lauren: can you parallel amazon prime day, katie, and the interest that we're seeing throughout the day today, maybe a little tomorrow, to potential back to school or holiday sales? >> absolutely. so historically we've seen at least last year with prime day people weren't really shopping for the holidays or back to school quite yet. it was a couple weeks earlier, it was late june last year. so you may see a little more of that and, again, just trying to be a little more strategy strategic. as i actually think that amazon, moving one of their dates to october during the pandemic, they realized that longer holiday season is really beneficial. people are more open to shopping, they extended the holiday season, and also having deals, so the consumer is really many that constant hunt for deals. i do anticipate we'll see amazon lean in heavier there and really extend that shopping season across categories. lauren: nick, katie, thank you so much for the time.
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and i do want to point out as we're doing this discussion is hitting session lows. thanks for joining us, we appreciate it. well, fine dining could be about to get even more pricey. connell mcshane is live in mississippi with more on the few challenges facing restauranteurs across inflation nation. let's check the dow. the big board is selling off to the tune of 300 points in the are red. so, basically -- [laughter] we lost over 100 points in that past discussion on amazon. the other markets are down too. "claman countdown" coming right back. it is getting ugly with the final 0 minutes coming up. -- 20 the minutes coming up. ♪ ♪ >> tech: when you have auto glass damage, trust safelite. in one easy appointment... ♪ pop rock music ♪ >> tech: ...we can replace your windshield and recalibrate your advanced safety system. >> dad: looks great. thanks. >> tech: stay safe with safelite. schedule now. >> singers: ♪ safelite repair, safelite replace. ♪
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♪ ♪ lauren: goldman sachs going techie. they've hired the head of alphabet's tech incubator in an effort to inject a tech focus into the bank. alphabet's jared cohen, a protege of the former ceo eric schmidt and founder of jigsaw, is going to help start a new innovation group if at the 153 -year-old storied investment bank. the new office will be led by cohen as well as co-chief information officer. now you know. just when you thought the cost of eating out couldn't get any pricier, restaurants are being told that their vendors will no longer be able to absorb the higher cost of the products that they sell, so they're being forced to pass them on to the restaurants. and that means, hmm, your local pizza shop or fine dining restaurant's going to have to decide if they can pass on additional costs to you, the
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consumer, customer, or maybe they just give you a smaller portion. we'll all go on a diet. connell mcshane is inside the wall street baking company many jackson, mississippi. this is another tough one for the restaurant. i know personally we don't go out to eat at much, and when we cook at home, we're not making steaks. we've could be graded our purchases -- downgraded. >> reporter: yeah, a lot of people have. it's interesting, because that's the consumer choice. on the restaurant side or here at the bakery, they have to pass along, to your point, at least some of these increase creases they're getting from their vendors, and that's why this talk about peak inflation, we're not seeing it here in mississippi, in restaurants generally. inflation's still the top concern. a new survey just out today, by the way, from national federation of independent business shows the number of small business owners who look out six months and say their conditions are going to improve, it's at an all-time low. >> my concern would be that when
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the bills come due and more bills are ahead of us, that discretionary if spending for restaurants may go down. so for me, kind of hold on to what we have with, do the best we can do. >> reporter: jeff good there operating three restaurants here in the jackson area. this bakery, also has a pizza place and a higher-end italian restaurant. he says there's been this recent change, relatively recent, that's led to even more price hikes. >> what we're seeing the last month is we've seen some of the most rapid increases in prices from vendors, many of which had not given us increases yet. >> reporter: sunrise fresh, a perfect example to kind of illustrate what jeff's talking about. it's one of his vendors, and the regional manager said he put off price hikes as long as possible on the produce he distributes. he was hoping this was just a normal business cycle. >> the cycles, you know, continue to repeat themselves, and that's why we really put it
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off as long as we could hoping to hedge that, that it would peak and come back down. >> reporter: yeah, come back down. hasn't happened, right? so they raised their prices, getting passed along here. i'll end with one real world example. avocado toast, pretty popular. it was $4.75 an order on the 020 menu. now it's $5.25. it's not a huge increase, 10, 10.5%, whatever it is. but cost of the actual avocado over the last year, it's just about doubled. so what does that tell you? if probably that they're going to have to raise this price even more and that inflation still hasn't peaked, at least at a place like this. lauren: i dare you to eat that, connell. i don't think your very specifical let will tolerate -- pallet will -- >> it tastes great. i like me some avocado. lauren: i'm surprised. come again? [laughter] >> reporter: no, i said do you think this'll survive on the plane? i could put it in my luggage for
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you and bring it back to -- lauren: i just love watching you talk with your mouthful. brick it back here. [laughter] -- bring it back here. lauren: i'm looking at the june inflation estimate everyone's talking about, the 8.8% rise. all the banks, their expectations, visa's the lowest at 8.6%. bnp pair baa the highest at 88.9%. no matter how you slice and dice it, it's going to be more or the same as last month. it's ugly. well, elon musk's twitter takeover saga taking a new twist. charlie gasparino breaks it coming up. and let's check the big board because everybody's worried about that cpi print that we get tomorrow. plus earnings season, what do companies say about inflation? what do they say about the strong dollar, right near parity right now with the require -- the euro? that's why the dow is down 215 points, the s&p and the nasdaq
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lower too. we're coming right back. ♪ ♪ what are you recommending for muscle pain? based on clinical data, i recommend salonpas. agreed... my patients like these patches because they work for up to 12 hours, even on moderate pain. salonpas. it's good medicine
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♪ ♪ if. lauren: it took us 51 minutes, but here's your elon musk update of the day. it looks like the musk/twitter battle will be making its way to court, but legal exert perts -- experts say it could comore damage to the shareholders of twitter and tesla. tesla still down. charlie gasparino here. no lawsuit yet from twitter, right? >> it's coming, probably. we should point out this story has so many different dimensions. he's tweeting at trump and -- lauren: into the sunset. >> musk's calling him a b.s. artist the, really funny stuff. it's a business story, it's a political story, it's clearly a market story. and it's a market story not just for twitter and musk, but for
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tesla shareholders. if you really unpack, look at when elon first said he was having second thoughts, may 13th or so. the stock is down from that point. we should have a chart of that. stock is down tremendously from there. so if you look at it, that, you know, really this is, i don't know, down 1 # 1% -- 11. that's twitter. tesla, we're talking about. lauren: there you go. >> okay. that's pretty -- oh, look at that. lauren: that's from april 14th. >> april or may? lauren: i think it was the day of the deal. >> it was announced april 14th, by may 14th -- lauren: when he had the doubts. >> still kept going. lauren: wow. >> it's interesting how he backed out as his currency has evaporated. so what's the problem for tesla shareholders going forward? if there is, if there is a ruling against musk, and ask, you know, if you're game planning this, we've talked to john coffey, charles el are sin
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at the university of delaware where the delaware -- is. investors, people who know corporate law, odds are many twitter's favor. that doesn't mean it's a good case, it just means if you net-net this out, elon waived due diligence, he signed deal, you know, he had to prove that these bots really are the big problem he says they are, and he has no real proof of that. so, net-net, it's twitter's to lose. but it could be costly for them. if they do, if elon does lose, a judge could force elon to pay a ton of money. he could -- lauren: more than the break-up fee. >> if elon says no, he could impound elon's assets. he's said -- to the legal authorities. and you know what that means, right? [laughter]
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a judge could essentially pound his stock which could cause a massive cascade -- lauren: the credibility of the court is at stake too. >> there's ways to to, and tesla's incorporated in delaware, like most companies. so this is a really tricky thing for -- lauren: what do you think is going to -- >> i can only go with what the general consensus of legal experts. elon's a wildcard, but if this thing plays out to form, it settles somewhere in the middle, and they don't want to wait a year to get this money. by then the stock could have a 0 in the symbol, right? -- 20. it's not that far off. tesla is losing money, it needs to get its act together and, essentially, repair its business model. it doesn't need this. so suppose if elon says 40. they go for i. -- for it. lauren: you think he'd go that highsome. >> well, he'd -- lauren: i think he cuts it in half.
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>> i don't think he's going to go 25. then they go to court. lauren: you think 40? >> i think if he says 38, 40. he has to pay premium. i think -- and, by the way, he's got issues too. remember, he could lose this and be forced to play. tesla -- twitter doesn't want to go to court for a year. i mean, this is crying for -- i'm not saying logic prevails, but logic suggests this is crying for a settlement. and that's what every single expert says. by the way, the courts have been there before, you know? it settles somewhere in the middle. i think there was a couple cases where, you know, contested mergers and, you know, they jus- lauren: i'm an e elon musk fan, i think he's a genius. i would not want to work for him or -- >> listen, i'm sure he's smart. he makes erratic calls, he says some really crazy stuff. 420, deal secure was a lie.
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b.s. so he's an erratic guy. i don't think, he's not the best ceo with. he's a little too out there. that said, he's smart. he's a free speech advocate, what's not to like about that. but, you this is an interesting one. he doesn't have good facts on his side. lauren: we'll see. charlie gasparino, thanks very much. closing bell ringing in three minutes. the dow fell 313 points to a session low. down 200 points to the downside right now. s&p and nasdaq on percentage basis, 1% each. embracing that, inflation data comes out tomorrow morning. copper prices, you see these down 30% from the record high in march. now the bellwether's bull, goldman sachs chopped the near price forecast to 6700. that is coming three months. our closer is still bullish on copper, george young. the poem manager of the valliere
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balance fund. george, why do you like copper? >> well, copper is one of the essential elements, commodities need across the board from electronics to electric vehicles. we just talked about tesla. balanced fund we believe in the long-term prospects. shelf life of copper is long. reserves are 100 years. most oil fields are about 100 years, 30 years, excuse me. they are very hard to find places this is domestic producer. it has international operations. good 40% is produced here in the united states. copper though volatile has huge demand going forward. we think prices are attractive, free port copper. we're buying that. lauren: buying the dip. >> yes. lauren: you like a company called pool. it is mostly domestic company, people moving to florida, to
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texas, hey, those are climates conducive to having pools year-round. is that why you like it? >> well that is one of the reasons we like it. i think the main thing for all the viewers, viewers who have pools you know what the maintenance is like. you can't escape the maintenance of the pool, 80% of what they do is maintenance related. like the golden gate bridge you're always repainting, always doing something with it. very consistent. only 20% is new home builds. that could be shaky with problems with new homebuyers. maintenance on pools is incredible. we think this grows 15 plus percent a year. low debt. great management. lauren: i want to get in caesars, if you can tell us why you like that one. >> sure. lauren: pool is down 31% this year. so is caesars. why do you like it? >> similarly recession-proof, whether war in ukraine, obviously horrible thing but people will continue to gamble.
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this is domestic oriented. we like small cap. this stock is down 40%. no matter what happens in the economy, gambling is something people will continue to do. sports betting is very important, big part of the story. big growth there. lauren: george young, thank you very much. markets finish off the session lows. [closing bell rings] we await key data, more earnings tomorrow. that will do it for "the claman countdown." here is "kudlow." larry: ♪. larry: hello, folks, welcome to "kudlow." i'm larry kudlow. so many people i suspect agree with biden press secretary karine jean-pierre who seems to expect if inflation peaked, on its way down, our troubles are virtually over. please take a listen. >> we expect the headline number which includes gas and food to be highly elevated mainly because gas prices were so elevated in june.


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