tv The Claman Countdown FOX Business December 6, 2022 3:00pm-4:00pm EST
remember, these are companies that have just gone public since 2021. they have these evergreen provisions. companies with these provisions include e-commerce and a couple spacs, a couple of them are trading for a buck. some are much lower than that. remember, they all went public at 10 but many of them went much higher off the high, genetics testing groups like 23andme got a lot of hype down 48% year-to-date. the ceo of that company can get as many shares as she wants. this is something, just imagine, you're getting crushed, you put your life savings into something you have to move on and take the lumps while these ceo's can just reload. liz claman, can you bring this market back? liz: that's almost like the fed printing money. i'll just print more shares for myself. charles: exactly. it's not cool. liz: let me try, but it's not looking good, folks, we've got breaking news. we are looking at a market that is heavy on the risk off.
this time it's not due to good economic news that's scaring investors into thinking that the fed would stay on its hyper- aggressive rate hike path like yesterday, right? the sell-off is picking up steam as growing recession fears have shoved what started as sort of a modest decline to start the session into a full-on sell-off in this final hour of trade. dow jones industrials off the lows of the session, still lower by 463 points. the s&p down 69. nasdaq getting clipped by 245 points, the russel losing 32 points. i want to focus on the s&p for a second here heading for a fourth straight day of declines. still though, hovering around the flatline over the past week. the energy sector though right now is the biggest problem on the entire session, as crude both west texas intermediate here in the u.s. and brent, that's the international benchmark, notched two-day losses of nearly 7% apiece. if that were on a single day, people would say oil is crashing so, it kind of has crashed over
the past 48 hours. wti finishing at $74.25 in the regular session. that's its lowest level this year. we're at $79.81 in the after market. the sharp two-day reversal in part triggered by the dollar, which once again is muscling higher against a basket of global currencies. against the u.s. dollar index, the grain back is up about a quarter of a percent plus the u.s. energy information administration today cutting its 2023 world oil demand growth forecast by about 160,000-barrel s per day to 1 million-barrels per day, and in essence that just, it weighs into the is there going to be a global recession. let's go to the two-day picture here because it's heading for combined loss of nearly 1,000 points for the dow jones industrials. boeing and disney are the problem here leading the blue chips lower. boeing is down 3.7%. you've got disney down 3.4%. the only thing we can really see with boeing is that the
international air transport association says that airline recovery is fragile but in danger by a lack of spare parts and aircraft company delays which are "angering the carrier" so they are saying speed it up, boeing, and airbus, right? goldman sachs, visa, and microsoft also pressuring the 30 stock index for the blue chips. now while today's moves might not be considered so horrific and compared to some of the volatile action we've become used to, if you look at the market as a voting machine in the short-term, clearly, the bears are heading for the w today; however, as the father value investing benjamin cram is really famous for saying listen, warren buffett is one of his accolades, in the long run the market is like a weighting machine or voting machine assessing the substance of individual companies and over the past two months the scales are actually tipping toward the bulls. as of last friday the dow had climbed 20.7% from its lows hit less than two months ago. s&p gains over the past two months put it in the 98th
percentile for two-month returns going all the way back to 1936 so why is pessimism and fear still pervasive? well lately markets have changed like that, in a flash. last wednesday, the dow, can we remember this? zoomed higher by 657 points and remember the nasdaq that day? just last wednesday, popped 385 points. so after the solid two-month performance, bank of america now says you know what? the s&p just after jumping 20% could plunge 20% in the coming months, and we will likely see a bottom during a recession, not beforehand. it is not just the averages during crazy swings. walgreens, netflix, honeywell, cisco, starbucks, look at the pops of anywhere from 20% to more than 40%. united airlines, and yes, boeing , which is having a really tough time right now, they've all seen major gains. now while amazon, tesla, crowdstrike, docusign, those are the guys who suffered more than
20% over the past two months, with all of this whipsaw action, i know some of you are asking, do we need to become traders, liz, really rather than investors? let's get right to our floor show traders joining me ryan pay ne and sarge guilfoyle. epic trader working on the floor for so many decades of course time is an investors friend and over the long term stocks are the best thing going but how do you invest in, i was thinking about netflix. if you put money into netflix three months ago you'd be up 35% do we need to actually start becoming traders? because that does not thrill a lot of people. >> well, i do believe that the average retail investor probably needs to start thinking more like a trader. i've actually been writing about this for about a year where i think people have to shorten their horizons and narrow their scopes. traders can move like mercenar ies with really tactic ally as opposed to strategically, where investors,
a lot of them aren't in this business so they are taking the advice of others, trying to act strategically, and i really don't think, i mean, yes, you need a strategic long term view but i think you maybe need to balance that with a tactical view because there are so many strings and they happen so much more quickly than they used to that you have to try to take advantage of at least part of that. liz: ryan? you've said traders and investors have to watch very carefully, because they can turn on a dime. well we know markets have turned on a dime but the question is how do our viewers remain agile while still doing their regular job? not being traders. >> yeah, well, sarge, it's a great respectfully here but the bottom line is it's impossible to trade this market because you miss that move over the last two months, the dow jones up 20%, you don't get that back, liz. i think the key this year is diversification is going to save your financial soul, i could put it that way because if you look at your value stocks almost positive for the year. the uk market is actually gone positive for the year.
latin america is positive for the year, commodities are up this year so the key is to be diversified if you were just sitting in a concentrated growth portfolio like most investors are, you've got your head handed to you but if you're diversified you're only down less than 10% this year. that's not that bad and you don't have to figure out when to be in and out of the market. liz: it's very hard and i'm sure i don't help because i'm sitting here looking everyday here at 3:00 p.m. eastern for the final hour of trade, sarge, and yesterday, market internals were atrocious. i think the losers were out pac ing the winners 6-1 on the big board, so how do you resist that and try and hover a little bit higher to see the two -month picture? >> well, i mean, we've had basically a bull market for almost two months now. what the s&p has handed us has been a broadening descending wedge to get a little wonky, which has been a place since the start of the year. what happened last wednesday when the market spiked is that a rising recent wedge ran smack da
b into the descending wedge and we're having a technical reaction which is exacerbating the pressure caused by the elevated payrolls and the hot ism services sector print. those are only excuses. this is really a technical blow off i think where there was forced profit-taking. now we're at the lower end of that rising wedge i was just speaking at right now. we should have a positive day, at least in the morning, you should get a nice pop, if we don't, well then we're looking at 50 day moving averages. liz: yeah, and i need both of you to make our viewers money right now. ryan, what would you buy here? you just touched on latin america. how do our investors dip into that? >> you can buy the index, the latin america 40 which gives the top 40 companies in latin america right now. they have everything working in their favor. they are commodity exporters and that's huge demand around the world. china is not even reopen yet, liz. that will be a huge boom for their economies and they are actually starting to lower their interest rates as opposed to tighten. in fact if you look at brazil went from 2-14%. they are starting to actually
ease off the gas pedal, which can be very good for their economy as well and they also have the advantage of what we call like near shoring, instead of going to china to import our goods we're actually starting to go to mexico, so all that is boding really well for their economy, still trade dirt cheap here and don't have to worry about if i get a yield to lunch. i can own that for a long time here and hopefully make out well here. all due respect there, sarge. liz: well ryan is working with the , do we all need to become traders, like stat. >> i'm crying over here, arrange -- sarge. liz: can you give me an idea about what is still so dislocat ed it hasn't come back but you think it might? >> well, i'll tell you exactly what i've been doing. i've been reducing exposures to the banks because i don't see a bright future in a recessionary environment or an inverted yield curve environment that goes on for all eternity. i think the banks will have a hard time. as a tactical trader, i've been adding to my materials the last couple days because the dollar
has been hot so i've been adding to a ccj, that's a uranium play and lthm which is a lithium play but strategically for the folks at home i've been adding to cybersecurity names because they have been beating down, haven't really come back yet and took a recent beating as a matter of fact and that's where the future growth is so i've been adding to crowdstrike, all o alt o networks, and a small long for tonights earnings. liz: crowdstrike got hammered last week, and palo alto got sort of dropped down in the tsunami of the problems there. really quickly. neither of you guys mentioned bonds. i'm looking at the 10-year yield 3.51%, more interestingly the two-year 4.35%. >> yes. liz: you talked about diversification. that's an old tune, but where are your bonds? >> i've got a little bonds here too. we have the best rates in over a decade so you can lock into real bond yields now. they aren't at a business mall
levels anymore, and one point here it's not a foregone conclusion we're going into a recession. the fact that we had a good jobs number and inflation on the ground floor is going down, we can actually have a soft landing i'm one of the only people saying that but i think it's a reality here. >> if i can shoot a lot of holes in that job number, you want me to go there? it goes on for a while. liz: yeah, and sarge was in the military. he was a marine and in the army so he can shoot. thanks, gentlemen. ryan, sarge, always good to see you. >> [laughter] >> i appreciate that. liz: he did. he really did. two of techs biggest names, these are internet leaders specifically, buried in today's sell-off at this hour, but one of the nations top internet analysts is here exclusively. he's bringing his shovel to dig up what he now says are two stock market treasures. we're going excavating with evercore's mark mahaney, next, with the closing bell ringing in 49 minutes folks yes we are looking at the second sell-off this week and a pretty decent side one, two-day cratering and
liz: well, with the nasdaq selling off about 252 points right now, meta is one of the guilty parties. one of the worst performers on the nasdaq 100 right now. it is tanking about 6.6%, a report on the "wall street journal" anticipating meta's advertising revenue could take a major hit after yesterday's ruling. it's not an order but it was a ruling by the european union regulators that the facebook and instagram parent should not require users to agree to target ed ads. both platforms allow users to opt out of personalized ads based on
activity across other websites but not on its social media site an airbnb is also getting buried i just want to check where it stands, yeah, it's the fourth- worst performer on the nasdaq 100, down about 5.7%. recession worries, fueling fears of a slowdown in the travel industry next year, even though the home rental site just reported very strong bookings during the quarter. big picture. meta has sunk 63 per% year-to-date while air ash dropped 40%, that is picking up the shovel and start digging for stock treasure here in a fox business exclusive evercore isi fundamental research analyst mark mahaney. mark, what is it just what you see in meta specifically, that tells you now that it's a gem and not fools gold? >> well, you start off with the valuation, so the stocks trading at around 12-13 times gaap earnings.
second is it looks like it's starting to recover from two of the biggest hits that it had about a year ago, the primary one being the apple privacy changes. the apple privacy changes gutted online tracking for , you know, small market or small business marketers and for platforms like facebook. it seems like facebook is being able to put together some of those signals and then you're also starting to see a stabilization for facebook after declining pretty sharply early in the year so that's kind of the pitch on meta going into next year. they also finally started to get religion when it comes to cost and this is the big news, liz. look across these covid winners companies over-extrapolated. so did the market and so did i too from the covid trends, and companies were built, amazon acknowledged that they were the first to do it earlier this year but now we're seeing companies in a time of softening economic environment they have to cut costs, they have to
tighten their belts. facebook just told you they are going to do that with a 13% reduction in force so when you finally get cost religion at a company it makes it more invest able. that's why i like meta here. liz: okay and i'll move on to your two ultra-favorites in a second but i do have to ask, how do you value meta when mark zuckerberg, the ceo, is still diving head-first into a technology or this digital space living space that has no real toe hold in meaningful numbers, the metaverse. >> well, you can value it because you've still got, you know, clean gaap earnings and free cash flow generation and again, this thing trades at a discount to the market, 12-13 times earnings, so essentially the market is saying that facebook is the next yahoo. it's going to be deteriorating asset but the user metrics continue to grow and the engagement metrics continue to grow. they may all fall off, make it tiktok takes the entire market away but core facebook, i'm see ing core facebook maintain
its share of social media usage, so i think the use cases are also different between facebook and core, between core facebook and tiktok. so that's why i think there's still a lot of value. liz: it's interesting, you describe and you are now stocks that you feel and these are internet stocks that you actually feel are resilient during a potential recession and arguably defensive? is that right? and these are uber and netflix. >> so if you're going in for the next couple of quarters you've got to assume that a retail trends online advertising trends, you're looking for something that's somewhat resilient against that. okay, here is netflix. it's cheap entertainment. don't forget, the golden years for hollywood during the great depression. now netflix is offering you all that entertainment for 6.99 a month so it's the cheapest high- quality entertainment package out there in the market. my guess is that and it's also a
new revenue stream by the way so what's so interesting is you want a company with the new product, new revenue launch that's netflix and by the way that's why the stocks up 80% since the middle of the year. the market has turned on netflix and i think there's a lot more upside to the stock market. uber is also more of a utility than consumer discretionary spend. i don't think people will cut back on mobility because they still have to commute and when they do social outings on the weekend and they want to come back from the restaurant they are still using uber and when they go to the airport even when we're cutting back on travel, when they do i think people will still use uber coming back so the use case is still very much intact. it's more of a utility, not consumer discretionary and we have a free cash flow inflection on uber. that's why the stocks up 40% in the back half of this year and there's a lot more to run on. liz: these dislocations have finally gotten so wide and dramatic that you say this is really the time, and you don't want to get out too far and realize wait, i could have, would have, should have. one bit on netflix.
they do have some pretty big hits at the moment. obviously the crown, season five you have the harry and meghan series that's going to be coming out. netflix really feels like it is still very much the king of streamers, and i mean, i don't know, paramount is getting slammed today, so is that really the time where you say just get it. just get netflix even though its come back a bit? >> well, i think it's because you've got a new revenue stream here. look, the company didn't have advertising. not one built, not one ad, until just about a month ago. they launched in six months a global advertising model. that's pretty impressive. it's still far and away the largest streamer and by the way i think we're past peak competition. when people get fired as the ceo of google, i'm sorry as the ceo of disney, for spending too much on the streaming business, that tells you you're going to have rationalization ink across streaming landscape and the one company that's out there that is still the leader that has the
-- and be nicely profitable, i mean, so i think you're going to actually have more gains going to a winner in the space and the winner in global streaming is netflix. liz: he likes uber, netflix, meta, also a lot of the online travel companies like booking .com. mark, good to see you. a little bit of max head room going on there, sorry about that but hey, we would rather hear from him in that regard because he is saying you've got to start picking up some of these names now. we are looking at pepsi sending a chill through its workforce on a report that the soft drink and snack giant is about to bring off the lay off knives. charlie gasparino, who warned months ago, this was coming at pepsi, breaks it next on what could be mass job cuts, when they might be announced and what other companies could learn from the staffing moves, that's next. closing bell is 37 minutes away, and it is still a pretty dismal picture if you are a bull, nasdaq is the percentage loser here down 2.5%, dow down 1.5% or
477 points. add to that yesterday's loss of picture. of the things that matter to you most. i promise to bring you advice that fits your values. i promise our relationship will be one of trust and transparency. as a fiduciary, i promise to put your interests first, always. charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com at adp, we use data-driven insights to design hr solutions to provide flexible pay options
and greater workforce visibility today, so you can have more success tomorrow. ♪ one thing leads to another, yeah, yeah ♪ get refunds.com powered by innovation refunds can help your business get a payroll tax refund, even if you got ppp and it only takes eight minutes to qualify. i went on their website, uploaded everything, and i was blown away by what they could do. getrefunds.com has helped businesses get over a billion dollars and we can help your business too. qualify your business for a big refund in eight minutes. go to getrefunds.com to get started. powered by innovation refunds.
hi, my name is tony cooper. and if you have both medicare and medicaid, i have some really encouraging news that you'll definitely want to hear. depending on the plan you choose, you may be eligible to get extra benefits with a humana medicare advantage dual-eligible special needs plan. all of these plans include a healthy options allowance. depending on the plans available in your area, you could get up to $1800 a year to help pay for essentials like eligible groceries, utilities, rent, pet care and over-the-counter items. like vitamins, pain relievers, first-aid supplies and more. other benefits on these plans may include free rides to and from your medical appointments. you could pay nothing for covered prescriptions all year long. most plans have dental coverage, which includes 2 free cleanings a year, plus
dentures, crowns, fillings and more. they also have vision coverage, including eye exams and eyeglasses. and hearing coverage, which includes hearing tests and hearing aids. you could also get many no-cost vaccines, including the shingles vaccine, at in-network retail pharmacies. plus, your doctor, hospital and pharmacy may already be part of our large humana network. so, call the number on your screen now to speak with a licensed humana sales agent. you may be able to enroll in one of our plans several times throughout the year. wouldn't you love benefits like up to $1800 a year to help pay for eligible groceries, utilities, rent, pet care, and over-the-counter items? so, if you have medicare and medicaid, call the number on your screen now and speak with a licensed humana sales agent. if you're eligible, they can even help enroll you over the phone in a humana medicare advantage dual-eligible special needs plan. so, call now. better
care begins with listening. humana. a more human way to healthcare. kevin, where are you?! kevin?!?!?.... hey, what's going on? i'm right here! i was busy cashbacking for the holidays with chase freedom unlimited. you know i can't believe you lost another kevin. it's a holiday tradition! earn big time with chase freedom unlimited. ♪ ♪ liz: yeah, we've got a market sell-off here, and now, we look like the dow is down about 494 points and dropping. take a look at shares of pepsico they're off the lows of the session, not by much. down about 1% at this hour the
company memo is out, right? it's informing employees it plans to lay off hundreds of u.s. jobs amid what it describes as the unquestionable success, quote, of its business model. joining us now with more details charlie gasparino. charlie: i want to say i don't mean to laugh at people being laid off because that's not what i was laughing at. i was laughing at the tone deafness of putting out a memo saying, you know, and we exclusively obtained the memo. i have it. we've been reading it and shaking our heads at this. you know, there's no good way to lay people off, but i think one thing you should probably do if you're corporate america is not saying how great things are doing and then say, okay, you're going to lose your job. that's kind of what pepsi did yesterday. i got the memo from people who are getting the lay off, being told they are being laid off. liz: these white collar jobs? charlie: yes, and mostly in the corporate offices in purchase, is it purchase?
yeah, it's purchase. liz: new york. charlie: westchester county which is essentially the north american headquarters and i hear a lot of it has to do with frito lay. there's a big chunk of this going at the frito lay subsidiary of pepsi which apparently is not doing very well and it's kind of interesting that soft drinks and , you know, potato chips you'd think are recession -- liz: they were during the lockdown. they did very well salty snacks. charlie: you know, during recession-resistant right? like booze and other things like that that people do when there's a recession but apparently, they aren't taking any chances, and you know, here is the thing. this is across corporate america right now. i could tell you that every major company right now is planning for a recession. morgan stanley came out today, laid people off. i think 2% of its workforce we should point out we reported that months ago they were considering that. there's all the companies. it's beyond tech. it's unfortunately throughout corporate america, and it's all because, you know, despite the
fact that the markets are down today but they have been up recently, you know, people are pricing in a recession and here is the thing that i don't get with the markets going the way they are. they are often up on better news on interest rates, right? liz: yes. charlie: when jerome powell kind of backs off 75 basis points to says it's 50, you know, they go up, but then they failed to sort of like read beyond the headline he's going to do 50 but guess what he's going to keep raising 50 even longer, maybe. so we're in just, we're still not through the interest rate cycle and we're still not through the economic impact of the raising of interest rates. i mean -- liz: its got to work its way through the system. charlie: yeah the economy is going to go down more, we still have inflation, and the only way to get rid of it minus, you know , sort of supply side fiscal policy which you aren't going to get out of the biden administration, you aren't going to get , you know, deregulation and stuff that increases supply, is the heavy hand, heavy hammer
of fiscal policy. liz: can we go back to the memo that you got your hands-on? charlie: yes. liz: it said our unquestionable success of our business model, you're losing your job. charlie: yeah -- liz: i'm with you on that. that is just bad. charlie: what's fascinating about the memo and i'll probably put it on foxbusiness.com is for paragraph after paragraph after paragraph, it's all this chest pumping. we've been since 2018 remaking the business, i'm paraphrasing, we've done all these great things. you're part of an amazing team. liz: you were. charlie: all of a sudden, unfortunately, we have to cut jobs. to me, there's no -- liz: but you're making money, or just don't inflate your workforce during boom times as much. charlie: there's no good way of doing this. i'm reading a book about jack welch's and ge's rise all fall and they used to call him neutron jack, because he would wipe out 100,000 jobs at once out of ge's sprawling
infrastructure and culture but is that worse doing something like that or giving someone a memo saying we love you but we're going to fire you? liz: it's very tough times but mark mahaney was just on the internet analyst and he said when you have layoffs like 10% or more like amazon and meta that's when companies start to get their belt tightening in order and at least make a bottom charlie: we don't know the exact number here. i'm hearing from my sources, like hundreds of people, okay? liz: charlie, thank you. charlie gasparino. fox market alert here we go off the lows of the session still looking pretty bad but the nasdaq is kind of the worst here, down 2.25%. lower by 255 points. there is one shiny object at this hour. signet moving higher on track for its largest percentage gain since june of 2020, popping 20%. look at this , holding the gains intraday. the world's largest retailer of diamond jewelry, they count kay
and zales, as some of their brand reported earnings per share of $0.74 more than double what analysts were expecting and they raised its full year 2023 outlook attributing its forecast to current business trends. that i don't understand. what do you mean business trends people are laying off people but whatever. i looked and said is it more weddings? not really. it's recent acquisition of online jeweler blue nile this summer was a winner, the company says. speaking of online, online brokerage robinhood, the commission-free-trading app popular among younger retail investors slipping 2.9% after announcing it's rolling out a retirement account with matching funds for its mobile app users. it will offer customers a 1% match on its traditional or roth ira's doing nothing for the stock but the offer brings robinhood closer to competing directly with established brokerages like fidelity, charles schwab, morgan stanley's e-trade. they can be wait-listed for the
retirement accounts and will receive access on a rolling basis in the coming weeks with full availability in january. nrg may power up vivent, it's will acquire it for $12 a share but nrg's own shares are going lights out hitting a fresh 52- week low down 15%. the texas-based company said the transaction will fit its effort to become "the leading provider of essential services and home and businesses" and it has 12 million customers using its technology platform to integrate various home device functions, so they want to do a buyout of $ 12 a share. vivent is almost there, it's at $11.91. techs flying higher by about 5% after the u.s. army announced its awarded the companies bell unit to supply new long range assault helicopter. the contract for the bell v 280 helicopter could be as high as $80 billion according to analysts. there's a joint bid from
lockheed martin and boeing. sin city biggest landlord super sizing as it brings the rest of mgm grand and mandalay bay into its vast portfolio of real estate. the ceo of vicci properties here in a fox business exclusive on his latest vegas land grab. it's a fox business exclusive you don't want to miss. the vegas strip maybe known for gambling and amazing restaurants but do you ever wonder what life be like without takeout at the palm of your hands? yeah i don't want to have to sch lep on to the vegas strip if there's too many crowds. my everyone talks to business podcast that just dropped today, i sit down with the guy given an ultimatum offered $500,000 to fund his online ordering idea on one condition. rip up his acceptance letter to harvard business school and quit his current job. guess what he did? yeah, he started ripping. hear the amazing story of olo founder and ceo noah glass, put his heart and soul
into inventing the technology that many of us cannot survive without today. or certainly during the pandemic. you can get it on apple, google, spotify, wherever you get your podcast, be one of the million- plus who have listen ed to my everyone talks to liz podcast. thanks so much. closing bell we're about 24 minutes away. dow is still flagging here at 33 , 507 down 439 points. this... is the planning effect. this is how it feels to have a dedicated fidelity advisor looking at your full financial picture. this is what it's like to have a comprehensive wealth plan with tax-smart investing strategies designed to help you keep more of what you earn. and set aside more for things like healthcare, or whatever comes down the road. this is "the planning effect" from fidelity.
regardless of your health history, offering values based affordable health care cost solutions. learn more today at yourchm.org about health care that puts you in control. he always went for bad debt. we had a lot of expenses. the intro offers were hard to pass up. then the interest payments started. the debt just kept getting worse. mmmm so we broke up with bad debt and got a low, fixed rate sofi personal loan for our big expenses. and the couch goes back tomorrow. break up with bad debt. fund weddings, home renovations, or consolidate debt. view your rate at sofi.com sofi get your money right. [ marcia ] my dental health was not good. i had periodontal disease, and i just didn't feel well. but then i found clearchoice. [ forde ] replacing marcia's teeth with dental implants at clearchoice was going to afford her that permanent solution.
[ marcia ] clearchoice dental implants gave me the ability to take on the world. i feel so much better, and i think that that is the key. if you used shipgo this whole thing wouldn't be a thing. yeah, dad! i don't want to deal with this. oh, you brought your luggage to the airport. that's adorable. with shipgo shipping your luggage before you fly you'll never have to wait around here again. like ever. that can't be comfortable though. shipgo.com the smart, fast, easy way to travel.
liz: with the market sell-off, it's not a surprise the casino stocks might be in the red at the moment, and they are. anywhere from about three- quarters of a percent for wynn resorts which is pretty much what they are losing along with pin national gaming but caesars down 2.5%, las vegas sands down 1.8% but this week, m gm, even though it's down a bit here, got a boost to its rating from truist securities which upgraded it to a buy from a hold
due to a jam packed 2023 schedule in sin city. it's up 6% in just the last week , following another announcement from gaming reit, v icci properties the company known for scooping up las vegas properties. some even call it vegas' landlord is taking full ownership of the mgm grand las vegas and mandalay bay buying blackstone's 49.9% stake in the casino resorts. joining me in a fox business exclusive on what it means to scoop up these iconic names is the leader behind vegas' largest property owner, ceo edward paton iac of vicci. iconic, obviously mandalay bay and mgm. what is this going to do for vi cci? >> yeah, so liz, good to see you again. what this does is it further solidifies our position as las vegas, the las vegas strips biggest real estate owner. we now have total ownership of
10 las vegas assets, mgm grand and mandalay bay are two of the 10 and it gives us more exposure at the south end of the strip which right now is discovering new vitality because of allegiant stadium which we just learned yesterday is the most visited stadium on earth over the last year, not simply because the la raiders but most of all because of all of the concert business is doing , so we couldn't be more excited to further our position here. liz: what i find really interesting about this deal, and i'd love to know how it came about, is the debt issue. yes, you are assuming the block stone debt that was on these pieces of these properties, but because it was struck so long ago, the interest rate on it is so much lower. can you give us some granularity about that? >> yeah, so the way i would put it, liz, is that when we did the deal we did last week, with blackstone, we really accomplished two things. we bought the blackstone interest in two iconic
properties, but we also bought blackstone's interest in a very valuable piece of paper. that is the cmbs loan that is on the two properties that right now bears a coupon of 3.55% and that will be the interest rate that we pay between now and into 2030 and exactly to your point, that is incredibly affordable, very cheap, you might even say, debt. that we get to enjoy for another eight years which makes the economics of these deal for us very attractive. liz: and you know what also is so attractive is your dividend, obviously, what 4.58% at the moment, and when investors are now looking for quality names that have sold off, which yours kind of hasn't you're up 20% year-over-year, i think that they look at a dividend and they say wait. i get paid for this too to own the premier vegas landlord here, and let's be clear. you own the property, you don't operate the actual casinos.
those are still mgm, et cetera, correct? >> that's right. our three partners on the las vegas strip are mgm, caesars, and apollo which operates the v enetian in partnership with us and exactly to your point, we simply collect rent. we aren't exposed to the operating volatility so our cash flow stream is very predictable, and does grow, which makes our dividend both very predictable and a dividend that has grown at a compound annual rate of 8% since our emergence in 2017 and i think right now i was really listening with interest to the interview you had with charlie gasparino and right now, any investor has to think about how do i protect myself in 2023 when the market could be as choppy as it is right now and may continue to be through the end of 2023. when you can get the kind of dividend deal you get from vici with the opportunity for growth in 2023, and capital appreciation, you really get a chance at total return in 2023 that is very
positive, when it may otherwise be hard to find positive. liz: considering the last time we spoke, we were still very very hit hard by the lockdowns and people hadn't come back to vegas in such large numbers. it's so nice to see you guys having come through it all, edward. >> we have. we're the top performing reit in the s&p 500 year-to-date by a large margin, and we think we have a lot of runway ahead to continue to create value for our shareholders. liz: ed pitoniak of vici, good to see you holding steady, more than that standing tall. please come back. >> thank you, liz. liz: anytime. president joe biden in phoenix right now. he's meeting with apple ceo tim cook as taiwan semiconductor increases its chip production investment in the grand canyon state. apple will be one of its customers. we've got the details straight ahead. closing bell 13 minutes away. we are coming right back on this
hi, susan. honey. yeah. i respect that. but that cough looks pretty bad. try this robitussin honey. the real honey you love, plus the powerful cough relief you need. mind if i root through your trash? robitussin. the only brand with real honeyand elderberry. we all have a purpose in life - a “why.” no matter your purpose, at pnc private bank we will work with you every step of the way to help you achieve it. so let us focus on the how. just tell us - what's your why? punch up your portfolio with benzinga and world renowned trader chris capre. learn the lucrative options market and how to effectively trade in a bear market, starting at just 99 cents. benzinga, take control today at bzoptions.com
do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back. millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them... add a line to your existing plan, or see for yourself how easy it is to save by talking to our helpful switch squad at your local xfinity store today. well, we fell in love through gaming. but now the internet lags and it throws the whole thing off. when did you first discover this lag?
i signed us up for t-mobile home internet. ugh! but, we found other interests. i guess we have. [both] finch! let's go! oh yeah! it's not the same. what could you do to solve the problem? we could get xfinity? that's actually super adult of you to suggest. i can't wait to squad up. i love it when you talk nerdy to me. guy, guys, guys, we're still in session. and i don't know what the heck you're talking about.
liz: breaking news. take a lynch look at picture of president joe biden, taiwan semiconductor site which will be the second mike crip factory in the state. it boosted original 12 billion-dollar investment to $40 billion, all in the grand canyon state. also in attendance taiwan semi 's first customers, nvidia ceo and apple ceo tim cook. apple is looking to move the iphone production out of china. susan li in with taiwan semi's investments help the tech titan accomplish those goals. >> reporter: we heard from apple ceo tim cook at the tsmc arizona event. it will be the single largest investment ever in the state of arizona. apple is ts mr. c biggest customers. they make most of the chips that
to into apple devices. it's a chance to create high-tech american jobs, the jobs of the future, the jobs that could define our future. tsmc 40 billion-dollar investment it will create 10,000 total tech jobs in the state. 4500 direct tsmc hires. the investment reportedly encouraged by apple who wanted to make more high-end chips in the u.s. instead of in asia after the chip shortage cost companies hundreds of billions of dollars in sales. also ongoing disruptions in the china the past few years with the zero covid policies means the world's biggest company trying to fast track the supply chain away from being concentrated in china according to reports. now if the u.s. is offering subsidies and grants and $52 billion chip act. that is pretty attractive. that is luring chip giants to invest tens of billions across different states. samsung invested a reported $200 billion in texas over the
next few decades. meantime in some other apple news, we got the past hour, looks like they're scaling back on the ambitious self-driving plans for the future electric car. according to bloomberg the debut will be delayed by a year 2026. it will cost less than $100,000. it will need more of those tsmc made u.s. chips. apple will accelerate the plans to spend $340 billion in the u.s. over the next five years as well. so that is a lot of dough, a lot of cash there. liz: oh, absolutely. i find it really interesting. you've got nvidia of course which has been a powerhouse over the past call it five years. also as one of the customers for taiwan semi and all of this coming to the united states. >> reporter: yeah. liz: good stuff. president joe biden there greeting everybody. we shall be continuing to watch all of that. susan thank you so much. by the way i was just looking into this, electric vehicles
need 3,000 semiconductor chips, 3,000 of them, one single ev. all the names, ford, general motors, tesla, they will need a lot more to reach those demands. closing bell, we are four 1/2 minutes away. ford is one of those names. ford just struck an interesting ev deal with dhs. that is german owned by deutch post. deutch post is down 2/3 of a percent. ford down just under 1% but they are going to be providing quite a few of these to dhl. you look at these kinds of deals being struck during times including save for example, with vici with the markets overall seem very shaky. these are precisely the time to actually start scooping up any kind of distressed assets or striking these kinds of deals. we do have the dow jones industrials well off the lows of the session. let me give you some clarity on that.
at its worst point the dow was down 528 points. it is still down 353. still an ugly picture. s&p down low of the 80. russell losing about 28 points. nasdaq laggards, lucent has been at the top. i've been scoping all of this, wondering what is the news? there is not much news on lucent. we have energy companies in the red. energy is the worst-performing sector right now, that of course has a lot to do with the fact that oil has been plummeting here. worries about recession. so you see names like enphase energy, you see names like nrg which we already discussed. one of the higher laggards in the dow jones industrials is chevron. we have valero energy, kinder morgan, exxonmobil, conocophillips, eog losing anywhere from two to 5% for eog resources.
as we continue to look at all of this, i want to stress very much so, bank of america, we started the show with this, a loss of more than 20% but remember the dow, the s&p have come up more than 20%. you can see the fear starting to climb into the vix. this is of course wall street's fear gauge, up 6 1/2%, still rather low at 22 points. we had bob doll here recently, one of the gurus of the market saying i would have so thought we would go back up and test the recent multiyear highs of 40, showing real concern and of course the, you know the worst of the vix, we have not even come anywhere close to that. i was telling you about the average vehicle, the ev that uses as we said 3,000 chips in it. ford will need a whole lot more because as i said they struck this agreement for delivery package company dhl, 2,000 ev transit vance by the end of 2023? ed, ceo of international assets.
four billion in assets under management. you say go for ford here. why? >> well, liz, you know, ford has sold more evs in the united states than any company not named tesla. liz: yeah. they really have crushed it. they're coming through. they're striking these deals but why, ed? ford has been trading in this tight trading range. i mean i don't know, was it a year ago maybe got as high as $15 but it can't seem to break through that? >> liz, it has been a tough economy all around. so the market itself has done very, very poorly. it has been a drag on a lot of different stocks and ford has been adversely affected by that. we think ford is a screaming long-term buy. we like the fact they split themselves into two divisions. the ice and ev business.
we think that allows them to unlock potential. you like exxonmobil and j.p. morgan. what will we hit the market bottom, it has been a tough two days, ed? >> i would love to give you a good news but i'm a bear. we go three steps forward, two steps back. we'll overreact to good news. we'll overreact to bad news. we have something, i don't know what will be the final event but we'll have a cataclysmic style event a inflection point, second quarter, third quarter. [closing bell rings] >> the market sells off. liz: catalyst mick events, i always look forward to those. ed, thank you for joining us. major averages close lower. day two, the s&p tumbles for the fourth straight session "kudlow" -- larry: welcome to "kudlow," i'm larry kudlow. we'll just