tv The Claman Countdown FOX Business October 5, 2022 3:00pm-4:00pm EDT
faith and not afraid to say it. he was adopted the day after he was born and if that's causing him any anxieties, he's not showing it and he's setting the world on five. 62 home runs in the record books and a accomplishment that we all should applaud, even you boston red sox fans. thank you so no. 9. 99.we all needed that booster . cheryl kansa kasoni in for liz . liz: we have an eye on energy as opec and non-opec partners agreed to cut oil production by 2 million barrels per day to boost prices and major policy reversal for the alliance and major pain for consumers at the pump. crude oil, wti up 6.16% and west texas crude rising to three week high with 11% in the past week
and investors weigh the impact and cut oil on pace for the best week in seven months. prices still down though from over $120 a barrel. we hit that marker back in june but again, we are higher right now a little more than 1.5% with oil at $87.90. shares of top oil and gas producers reacting favorably to the decision. exon as you can see is higher by about 4.5%. haliburton, pioneer, phillip 66 apache helping to prop up the rest of the major averages as well and this is the sector to watch today is the energy sector. now, the broader market recovering from the lows of the session, the dow at one point down 430 points at one point during the day. right now dow is up by 55 and this is really just changed this breath in the last five or six minutes now. we're sitting at session highs now for the dow to again turn just positive moments ago.
s&p now going positive. s&p having been flirting with the flat line and now at one point down 68 and now it's up by three and change as you can see on your screen. nasdaq is lower but at one point it was down 266 points so to see the nasdaq down 11, a good piece of news on this wednesday. turning positive moments ago, all of these indexes except for nasdaq heading into the final hour of trading stick with me. this comes after a rip roaring two-day rally to kick off the week with the dow gaining 825 points on tuesday. the dow, the s&p 500, the nasdaq surging more than 5.5% on monday and tuesday on a series of weak, economic reports, but this morning's stronger than expected 80p jobs report put the rally on pause. 80p reporting that the private sector added 208,000 jobs in
september. that was slightly better than expectations and the estimates for 200,000. this positive data took only investors that the fed has its work cut out and raising rates at the next meeting. taking a look at ten year and yield on treasury there ticking higher on all of this news. that happened this morning as well and it has stayed strong throughout the day. the yield 3.765% and a gain of almost 13 basis points and the dollar, this is a big story today for the markets, the dollar seeing green for the first time in six days. here's the question, is good economic news bad news for this market? i want to bring in brent shooty, he's a chief investment officer at northwest mutual with $237 billion in real assets under management. it's great to have both of you here and, brent, i want to start with you. you know, it's true with inflation and the fed, it's like
good news is bad news and bad news is good . are we in a recession, aren't we? it's kind of hard to parse at this point why the market reacts to person ceases of data and ignores -- certain pieces of data and ignores others. >> is that a question? certainlies reactionses have been fierce the last -- certainly the reactions have been fierce over the last few days. the reality is each and every day the support of inflation and forward looking is supports are pulling back and 80p showed a decent number but it's a lot lower than what it has been and thinking about the other things, isms and supply chains are moving back to moray mall. price -- normal, prices paid coming down and demand coming down and things are becoming more ball languagessed and inflation expectations are low anchored and the market is sniffing that inflation could be coming lower in the future and the risk is the fed keeps ongoing looking at back ward looking numbers. liz: true that but inflation sitting above 8% and we'll get
cpi actually next thursday, that headline number, which really the fed for the first time in a long time has been pivoting on a dime looking at headline number, not just the core and that's with the energy obviously and food prices and things. this morning's decision was a quick decision with 2 million barrels a day and equates to more money and obviously the saudis and russia to a certain extent, they're calling the shots, and this pushes inflation higher. the biden administration seems to have no control or no sway if you will with opec+ and they tried to talk them out of this. not happening and they're concerned about a global downturn. >> if you're in the business of pumping oil, you want to have a high oil price and the way to do that is controlling supply. you're right, we are in the upside down. right now everyone's looking at
their 60/40 portfolio, upside down. bonds, upside down. stocks upside down. stocks -- bonds we get it. rates are going up and the rates of your old bonds are worth less than the new bonds so we get that but stocks, you're expecting to see inflation, stocks have always been a great place during inflationary times and stocks upside down. what's going on and it's all eyes on the dollar. you said it before, and as the dollar goes up and the dollar has been on a tear all yearlong. as the dollar has gone up, all assets price and dollars have come down. even things, oil, price of cop per, you name it -- copper, it's all come down and breaking in the dollar eventually that'll be a break in the market everyone is looking for. cheryl: from an investment perspective, sure, brent, but on the other side of that, i look at the dollar in relation to multinational corporations. earnings, here we go. for the second quarter about ten
days from the first reports from the banks. what are your expectations from earnings? >> i think a lot of the expectations are baked in and the way i'd handle it than thinking about the earnings is being names that have mortgage nows safety against earnings in the future and there's baskets of stocks, baskets of sector neutral value stocks that traded at 10% free cash flow yield or 8.8 times their ear earning ande there you have some room against falling earnings expectations, which i do think will come down in the coming quarters. cheryl: okay. john, last word to you, your expectations and junior strategy really. how do you invest in a market like this right now where the news is so convoluted and up is down and you called it the upside down like stranger things. i caught the joke. how do you handle that? >> it is the opportunity that clients have been begging me for. clients said if only the market would come down 10, 20, 25% and
here we are. this is the opportunity. that doesn't mean it's the low but it's a low. and at some point you're going to tune in whether it's a year, two, or three years from now, we'll be back above 4800 on the s&p, and if you buy now, you're not up 25% as the market is down. you're up about 34% from where we currently stand to 4800 of the old highs. it does pay to buy the dips as always. cheryl: buy the dipso, maybe be a little selective too. >> i would be selective. cheryl: john gagliardi and brent shooty, i appreciate your time here. take a look at twitter, this is the stock to watch today. never boring what it comes to elon musk. shares of twitter down a little more than 1% coming off of a big surge yesterday following mr. elon's announcement that he wanted to go through with his
$44 billion acquisition of the company. does he really want to go through with it? musk sees the deal can only go through if the whole trial at delaware chancery court was called off and they're still going through with the purchase. tesla is under pressure today and cash that musk needs for the deal would mean a sell down of the stock and he's on the hook for $33.5 billion of the purchase price of twitter. he's talked about this extensively and tracking the saga from the start and i heard you say earlier with neil cavuto that he's personally on the hook and it could have been worse for him if this went to trial. >> well, yeah, what i also reported is that he always -- this was a game for him this whole notion that they were bottombottom panel bots and he - bots and he wanted out of the deal. he never wanted out and i'm getting this from bankers that
spoke with him. his intention even when he was saying i want out and knew he was headed for court was to renegotiate downward from the $54.20 a share price. this is according to bankers. he was forced essentially to agree to pay the full amount, which is what he's doing now. all though there's always a wrinkle with him. let's just see how this plays out. cheryl: never over till it's over is what you told neil. >> because he -- i mean, the trial was not going well for him, the discovery was horrendous and e-mails where -- remember his excuse was there were too many undisclosed bots that twitter was hyde hiding the bacon on real number of fake accounts but he knew that from his conversations with dorsey, he knew there was a bot problem and this judge looked like she was going to hand them an easy victory and force him through the deal after a five-week trial where his name would have got dragged through the med and
tesla stock would have taken a bigger hit. my guess is they always put up stuff at the last minute and now saying the trial has to be off. that's the judge's call and, you know, i'm pretty sure twitter will withdraw the lawsuit at some point. you never know with them. they hit him so much. he caused so much internal strife at twitter. they may go through with this thing. cheryl: with the lawsuit? >> just to screw him. just to turn the screws on him because they know they have a very, very strong hand going in. you know who made a lot of money on this were a bunch of hedge funds and i can't tell you my sources, but last week i reported the arb play on this was easy and the hedge fund went out and researched the law and delaware chancery court rulings and they knew that -- they didn't believe that the whistle blower -- remember there's a whistle blower out there. cheryl: i was going to ask you about that but go ahead. >> saying they're hiding the bacon on them -- cheryl: i thought that was going to help musk.
>> i that night i did think so and all went long on twitter shares. it's very interesting. we'll see what happens and where they essentially agree on and i'm sure elon would like a lower price and that's why he did this whole dance according to my sources but we'll see if they go there. it'll be, you know, i would say this is not over just yet. cheryl: yeah, he was negotiating for a better deal as you should, as he should have. >> well, i don't know. cheryl: $44 billion for twitter. >> he should have negotiated for a better agreement before agreeing not to do due diligence on the bot. for a really smart guys he's really amateurish. you root for him because he's for free speech and wants to cleanup the bouts and get rid of fake accounts and verify vas users and more diverse political views and not the views filtered by silicon valley lefties and that's the positive but the negative is how he handled himself, which is bizarre.
cheryl: i'm sure there's more on this tomorrow. charlie gasparino, thank you very much. i missed you at the gym today. >> i was there. i just got out. cheryl: i went before you i guess. see you tomorrow. >> you work out harder than me and that's saying something. so. yeah, i've seen you in action. cheryl: anyway, rising interest rates having a chilling effect on the housing market. million dollar listing star is here in studio to tell us if he sees the market headed from the penthouse to the outhouse. great to see you, ryan. hello. tangig board, the dow as you can see up 54. "claman countdown" going to be right back. ♪
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cheryl: mortgage demand being driven to lowest level in about 25 years and buyers are pulling back from purchasing a home and mortgage applications falling 13% this week hitting 37% year over year. interesting time to be in real estate so with all of this weighing on the housing market, where do we go from here? maybe change is good. joining me now in a fox business exclusive is the ceo founder and broker ryan haunt. i love talking real estate with you. we see the market changing. on a national level, new york is a different animal and we'll get to that in a second, but on a national scale, people talked about the covid bubble and the
valuations were too here . maybe they're coming back down to ea earth now. >> listen, if you look at transaction volume, year over year right now we're down about 25% nationally. it sound terrible and everything is in the red, but we're up over 25% year over year from 2019, and that's really the last normal. the last two years were an all out sprint and you can't sprint forever and i heard you talking about working out in the earlier segment, you can't sprint forever, you have to slow down and catch your breath and sprint again and that's every market. rates are much higher. if you look at national median price, it's just under $450,000. your average american if they bought a house last summer compared to buying a home this past august, their monthly payment with where rates are now has gone up over $1,000 a month. their wages haven't gone up. the cost of all goods have gone up so a lot of people are saying, let me wait.
this isn't 2 2008. this isn't the housing crisis and everyone that bought a home from 2008 to 2020 can afford it. they've been overly qualified and it's a pain in the butt to get a loan. they'll say i'll wait. let's see how things go and that's okay. cheryl: yeah, let's talk about sellers. service connecteds will have to get realist -- sellers will have to get realistic with prices, are they? >> they are now, now. cheryl: a few months ago didn't seem to be so much. >> a few months ago everyone turned on the tv and watch you and fox and say, oh, things are changing so pricing is coming down in its reflection with interest rates, and it's okay. that's what's supposed to happen. for sellers that are real but what's interesting is there's not desperate sellers, not yet. sellers want to sell but see if i can match the market otherwise i'll wait. if you look in new york city and look nationally, inventory is still at near historic lows so buyers are saying houses are
less affordable because of what i have to pay per month and sellers are saying maybe i won't sell because where are you going to go? it created this stagnation, which is really, really interesting. cheryl: i want to talk to you about the luxury market because that's obviously where your bread and butter now is and that's manhattan. you've got an over $2 million listing -- >> $250. cheryl: $250, penthouse, central park tower. how long has that been on the market. if that sells at that price, that's amazing. we've never seen that in new york. >> we've seen some major sales. the penthouse at central park south sold under $200 million. life changes and people spend more money. cheryl: the wealthy buyer is still health yes. >> they're out there in ways that people don't understand and they're looking for flights to
quality so they're still looking for great goods and places to put their money, and real estate is an amazing place to do that whether it's in florida, even today, or new york city or an amazing penthouse on central park. i have shown the penthouse at central park tower that's $250 million and 1800 square feet more than apartments that are 2,000 square feet. cheryl: that's amazing. let's talk about florida. obviously the hurricane has been devastating to the people of florida and will be to the real estate market in florida. so many people moved down and relocated in the northeast in particular and a lot of new construction was underway, a lot of new construction that wasn't completed and seeing destruction and obviously the insurance side of things as well. your take? >> well, pre-ian, if you look at kind of the cost for insurance for anyone that's in the floodplains in florida, it's been about three times higher than the national average.
even before. hurricanes are not new to florida. when you buy in florida, you know what you're buying into. it's like you know what you're marrying. hurricanes hit the state and you need to be prepared for it. so while it is absolutely devastating, while it's going to be very, very tough to recover and incredibly expensive for certain parts of the state, things get rebuilt and people move forward. there's a lot of business to be done in florida and it's a great place to work from now and there's amazing tax incentives and it's a great state to live in. i think we might see a dip but it'll only last potentially four to six months. cheryl: ryan, i can't wait to see what happens with your $250 million listing here in manhattan. if you're interesting in the $5 million home watch the american dream house and see that. i'm hosting the show. great to see you, ryan. >> thank you so much. cheryl: american dream home, we're back on tonight and going country again and introduce you to al life-t ali and tyler goine
their city home and look for a country side home. it's part of fbn prime's real estate lineup only here on fox business. all right, chip makers and big banks on today's pop socks, while they're moving and that's all straight ahead. taking a look at markets. the dow up 93 and what a different the day makes, s&p up 10 and nasdaq umm 16. we'll be right back. ♪
cheryl: fox business alert for you right now. markets as you can see all moving into the green. the nasdaq now also positive up by six points and s&p up by nine and the dow is up by 83 points. remember, at one point the dow was down 430 points. s&p down 266 so major reversal of fortune as you can see for your markets and about 30 minutes to go till the bell rings and advanced micro-devices is moving higher up about half a percent and wells fargo cutting price on the stock from $130 to $90 citing weakening demand at amd center. the brokerage cut 2023, '24, '25 earnings for revenue and the data center worries they deepen. taking a look at nvidia, intel, and micron all of those stocks
are higher at this hour. atlantic equities downgraded goldman sachs and morgan stanley about how it could be affected bay potential recession. goldman was downgraded to under weight and morgan to neutral with a cut to $85. goldman down about 1.71% and morgan stanley down about three quarters of 1%. slumber down after its partnership with gradient and the agreement introduces technology that will allow the production of battery grade lithium with less water and in a sustainable way. slb getting a lift along with other energy names on the opec+ production cut. slumbergea up.
the facility makes a line of steel conduit. they blame a surge of imported steel conduit from mexico for this closure. mexico and canada were excepted from steel tariffs under president trump's usmc agreement and taking a look at steel dynamics and you can see that is higher and new corp. is lower, united states steel is lower. well, president biden on the ground in florida right now. he is surveying the damage of hurricane ian. he's in one of the hardest hit areas: fort meyers. we're going to head south for details on the president's trip and we're going to talk to one insurance company owner about how her company is handling all of the claims flooding her office. take ago look at the big board once again, what a difference a half hour makes. the dow is now higher by 89 points. again, way off of session lows, we'll be right back.
cheryl: break news right now, president joe biden is in fort meyers today where he just finished touring some of the damage to the area. he and the first lady met with small business owners and local residents impacted by hurricane ian as well as officials including governor ron desantis and senators rick scott and marco rubio now the president also just spoke a few moments ago in florida saying that it could take years for florida to fully rebuild and warning that this hurricane won't be florida's last.
he also said the white house is working with the state to set up spots where florideans can go to apply for insurance as well as fema assistance. still the state is left with massive amounts of damage and horrific loss with deaths in florida and the carolinas topping more than 100. and now a new issue is coming to light, excessive water damage to cars that were swept up in flood waters. madison alworth is in grove city, florida, with a warning about how this could increase instances of fraud in the used car industry. madison. >> reporter: cheryl, it's incredibly disappointing but whenever you have a huge dis-disaster like ian, can she remembers take advantage of that situation and try to swoop in. we saw a ton of damage from hurricane ian and we're talking about houses and cars still coming in on estimates in terms of how much, but we're in the tens of billions and some of that is the cars themselves. people that were trapped in flood waters or had their cars
lifted and deposited elsewhere. now, those cars with water issues, they're supposed to be completely off the market and deem imoperable and destroyed in florida. the problem is sometimes scammers will take the cars, lift them to other states and then they will sell them there. this is a huge problem and obviously on top of all that, it makes our used car shortage even worse and it makes it harder for representable and licensed sellers to get their inventory out the door. i'm here with matt, who's the co-owner of seaside motor co. this is your first time back at the car lot since hurricane ian hit, you're not far from the water here. tell me about the damage and what are you dealing with in your inventory? >> looking at some wind damage, debris damage that hit the vehicles. so far from what i can inspect, that's what i can see. >> reporter: you've been walking around and you were opening up the car doors to look for water damage on the floor of the car but have to get a mechanic in
here. what's the purpose of that and why take that step? >> to really inspect the cars like he did when i first got them to make sure they're safe and reliable and my customers won't have any issues going forward such as electronics being wet or computers or damage that could have been caused by anything that i can't see with a naked eye. >> reporter: this is a hot market for used cars and there's a shortage. you'll have a shortage here and some will not be operable. what's that mean for your business bottom line and customers that desperately need cars as theirs were damaged by hurricane ian as well? >> give us some time. we're going to rebuild and i'm going to be here to support engelwood and my customers and the surrounding areas to get a nice, safe, reliable vehicle. >> reporter: thank you so much. cheryl, i mean, you see it from a personal standpoint, people losing their personal vehicles and here in the inventory as well. hopefully some of the cars will be saved but obviously when a huge storm like hurricane ian
rolls through, a there'll be an impact on the personal and business level. cheryl: whole parking garages gs ratratter reports of vehicles jt gone. one of florida's largest public insures, citizen's property insurance estimated customers will file more than 225,000 claims. that's about $3.8 billion in losses and that's just one insurance agency. state's insurance market is already one of the most expensive in the country with florideans paying more than three times the national average and about 12% of florida home inners do not have -- owners do not have property insurance because it's so expensive and more than double the national average of 5%. a lot of risk in florida. joining me in a fox business exclusive is fwsl president and deborah hoffmann giving us her perspective. deborah, it's great to have you
here. you have three offices in florida including one in fort meyers. first, are your people okay and your offices okay? what's going on? >> yeah, thank you so much for asking. we do have three locations in southwest florida. we have one in naples, one in fort meyers, and then one up in port charlotte, which were some of the hardest hit areas in the state of florida. so far everyone is doing well. cheryl: oh, good. good. i'm glad to hear that. let's talk about the industry because, you know, you're in different businesses whether it's home, vacation rentals, floods and business. do you find there's an overwhelming amount of claims, not just overwhelming amount of claims if we've even gotten that far but are adjustors able to get to where they need to be right now to start to survey the damage done? >> yeah, so let me just give you a little update there. obviously the most heavily
impacted areas are fort meyers beach, sanibel, pine island up the coast and port charlotte and punta gord and we're in the process of taking claims and filing them and getting them to the appropriate carriers and so many in a complete loss don't even know who their insurance is so we're navigating through that process right now. adjustors are getting assigned and they are handling claims in the order of priority and then in the order of which they were received. so get your claims in early. cheryl: how do you decide what's the most important claim? how does that work? >> oh, that's definitely a challenge. most of their claims if there's standing water, if there's danger, you know, if there's holes in the roof, you know, those are going to get priority
over something minor like a torn screen or some broken glass. cheryl: this storm has really brought to light an issue that i don't think we really talked about enough and that was the state of insurance companies in florida. in fact, before hurricane ian, you had six insurance companies that had been declared insolvent and 12 or 30 on the state watch list as far as tee terrificking and correct me on -- teetering but correct me on that number. doesn't that exacerbate the problem and put more companies at risk of going insolvent that in tern means the customers may not get the payouts needed or they'll have to get bailout money from the taxpayers. >> so, you're absolutely spot on there. florida does have a very strained prop market currently. there's an insolvent companies that are no longer writing business in florida and several
others that have pulled out and, you know, this isn't just the result of the weather that we have in florida. it's also impacted by fraud, frivolous claims, scammers that are coming into our market, getting our clients to sign off on third -party right benefits so they can mitigate the claims, which gets more expensive when that claim is filed overall. the hurricane ian will definitely make that a lot more challenging for us. carriers, i believe, will continue to pull out of the state. we are very fortunate. we do have some carriers in southwest florida that are starting to bind coverage again, which is great news. because obviously if you can't
get insurance, that also impact new home sales, closings, you know, and new businesses that are looking to come into the area. cheryl: because it's so expensive. i mean, these policies are -- i mean, you can understand why in florida because of the cost of these policies that people just don't get them. that's a very, very risky decision and if there's a mortgage involved, the bank won't let that fly. come back to the show and give us an update and there's a lot of work to be done in florida. we really appreciate your time. >> thank you, and thank you for having me. cheryl: all right. well, big story today, can't get away from it. opec+ has american drivers over a barrel as they're slowing production of black gold but how much pain is it going to cause at the pump? we have grady trimble with that story from a gas station in chicago when we come back. and a look at the being board, dow up 53 points right now and
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♪. cheryl: well, story of the day, take a look at oil right now. we are higher by 1 1/2%, 87.82. now we're not at 120 a barrel but remember, that this opec plus news this morning really roiling the oil markets. they announced the plans to slash oil production by 2 million barrels per day. that is a staggering amount of oil. this is the biggest cut since the start of the pandemic. the average retail price of gasoline sitting at $3.83, unless you're in california. it's a lot more out there but likely these, these prices you're going to see will go higher as oil producers scale back the output t will take a while. go live to grady trimble at a gas station in chicago on how opec my caused more pain for the pump for americans. grady? reporter: we're paying more than the national average by a buck.
undoubtedly other parts of countries will pay more because of opec's move. gas buddy patrick de haan, might pay 15, 30 cents more per gallon of gas depending where you are in the country. what he is saying like in the west coast, california, or great lakes region like here in chicago prices could come down a bit. because they have already been soaring lately due to the refinery issues. other parts of country, the south south, east coast, northeast will be hit hardest by the opec decision according to dehaan. in terms of real world implications after two million per barrel per day cut, some opec countries have not been hitting production targets already, so the actually cuts will be 800,000 barrels per day. it is less, still significant and a snub at president biden who recently visited saudi arabia a few months #to
ask them to drill for more oil. the e obviously the white house is not happy for the opec plus decision. karine jean-pierre the press secretary said aboard the air force one, shortsighted decision, in own self-interest opec plus made the decision. so we see it as a mistake. the biden administration also announced today that president biden will continue to direct releases from the strategic pet they will yum reserve if they are needed. this comes after the% secretary told edward lawrence yesterday they would not keep drawing from the strategic petroleum reserve. seems like they're keeping that as an option, cheryl. of course democrats, white house, they don't want to see gas prices on the rise like they are right now with the my terms just about a month away. cheryl: you know what, grady? the white house obviously putting out that statement because there was so much pressure from janet yellen as
you mentioned from pete buttigieg, them going over to the saudis, the president biden was in saudi over the summer trying to get them to not cut production and that fell on deaf ears obviously. then the white house saying today how disappointed they are because of the worry about the global recession. so it has been quite the story today. grady trimble, thank you very much for that live report on gasoline prices. it affects all of us. as you can see we had a little bit of a reversal in the last few moments. dow be s&p, nasdaq are all down. i want to emphasize we're well off session lows for all the major indices. the dow at one point was down 430. we have about five minutes to go. we told you how atlantic equities is bearish on goldman and morgan stanley but the firm says wells fargo, first republic, bank of america appear to be able to weather a downturn. b-of-a happens to be one of our "countdown" closer's picks.
cio president lee munson. always great to hear from you. earnings start with the banks. will start with jpmorgan chase just a couple weeks away. what do you expect to hear from the banks? we had lowered expectations for the second quarter. that played out as we know, with them hitting those lowered expectations. what do you think happens now? >> i'm not sure we'll need to lower them quite so much. i think a lot of bad news is there come on, let's be reasonable. we have, i think investors psychologically have discounted mortgage revenues down to zero, right? that is what we're looking at. we're looking at a 30 year rate over 6%. we think, how will we take money? we have to look past the news, think, industries deposit basis, those are sticky. as we see short term treasurys go up, those are dollars that the banks will make in the net interest margins. i think that will be more
positive news. i think trading isn't going to be bad news for some probation that still have trading revenues. you know what? m&a is a wild card. i just don't know. i rather tell you i don't know. i think there will be better times ahead. when you look at some banks, you ask yourself were they making lower lows like the general market did when we look back in june? for a lot of these the answer is no. bank of america has to be my personal favorite. jpm is fine. citigroup is a perennial value trap and wells fargo you have to know more about their regulatory issues than i do so i stay clear of it. i also want to make a comment. i see the goldman sachs is downgraded. i'm actually long that for myself, for some of my clients. i think people aredown grading some of these brokerage firms far too much. goldman would be my favorite. i would say think forward and remember in another year or so, these mortgage rates will have to come down, the fed will have to get their foot off this gas
pedal and we'll see better times but market will price that in months before it happens. cheryl: with goldman sachs in particular, the thinking goes in particular with goldman, it is investment banking revenue, it is commodities, it is fixed income trading. all of that, it is not going to be a good quarter, not going to be a good year but for any of them. in particular goldman is a little more sensitive to that. as far as jpmorgan chase, i see your point. look jamie dimon is still running that bank and his comments about the economy, he has been very clear. the one thing i'm curious about is with wells fargo. wells fargo the biggest chunk of their business is mortgages. more west coast than east coast but we've seen a shift in housing. demand is down. wouldn't that hurt wells fargo's bottom line, just in a general sense? i'm not asking to you get too into the weeds but i think that is a theme we'll get with them? >> if you just want my general read, absolutely 100% agree.
remember last quarter management came in and said our number one job is to shrink our mortgage department. we want to be less reliant. so again if you've got a good line on how that's going, then you need to invest accordingly. for me, i'm not sure how much lip service that is where they just want to tell wall street what we want to hear, which is less reliance on mortgages but i think we've come so quick so fast you've got to know the stock, forwards, backwards, you have to be on the inside to really understand the scoop and i think most investors should just pick something else that doesn't have the exposure. cheryl: lee, i got 10 seconds with you, final thoughts? >> final thoughts. higher prices are ahead. can't tell you about timing but i would say between now and a year from now what you buy today, if you buy in the value spectrum i think you're going to be rewarded. i'm bullish. cheryl: bullish. definitely sector by sector these days. lee munson, thank you so much,
it is great to see you. what a difference an hour make. the show is never boring. liz claman will be back tomorrow. maybe she will have less volatility for you. again major averages all lower once again, briefly going into positive territory. [closing bell rings] but again the dow down 430 at its low. not right now. that is it for "the claman countdown" and me. "kudlow" is coming up next. ♪. larry: hello, folks, welcome to "kudlow," i'm larry kudlow. so opec plus went ahead and slashed two million barrels a day from production despite the pathetic entreats from the biden administration. the president and his minions went begging hat in hand and they got nothing. because of mr. biden's miss begotten unscientific hysterical obsession over climate change, his holy jihad against american fossil fuels we now find
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