they're supposed to -- i'm sure they mean well, right? but you've got to wonder sometimesthe they're august their book although you never know, right? dalio, he seems infatuated with china as he is perplexed with the united states. and everyone remembers, of course, soros, george soros became a billion their when he broke the british pound for personal gains. but if i was a billionaire, i would think i would be happy go lucky. the more money i've earned over the years, the more circumspect i've become about things i could simply ignore. it's weird to know there's probably more optimism at a local trailer park than among the private jet masters of the universe crowd. just something to ponder, right, liz? liz: like travi coy, i want to be a billionaire. ♪ have a good weekend. did you see $10 swing in tesla? first, it spikes as high as $177

and change after elon musk revealed the name of the new twitter ceo. that happened this morning, nbc universal ad chief linda yaccarino, and then you see it completely reversed when investors balanced the idea of elon kind of shifting his focus back to tesla with a massive recall of chinese-made tesla vehicles. right now tesla at $167 and change. now, yesterday in this hour, remember, we broke the news of elon's tweet hinting he had picked the leader for the social media site. the stock popped 2. as you see, we've lost all of that and more. let's get to the markets here which are right now in the red. a worrisome read on consumer sentiment and you know what? some absolutely bad news on when the u.s. will run are out of money to pay its bills. that's what's driving the price action as we kick off this final hour of trade for the week. okay, let's look at the dow, it's down 156 points. the preliminary may consumer sentiment read hit the tape at

10 a.m. ian. you see that? 10 a.m. eastern. that was the end of the gains, right now the blue chips at 33,151, losing about half a percent. same pattern for the s&p 500 because not only did consumer sentiment index miss every single benchmark from current conditions to looking out for expectations, but wait til you hear what the congressional budget office predicted just before noon. it was enough to spook the nasdaq which coming into the session kind of looked like it would be the only major that would be in the between for the week. right now the nasdaq is can down 95 points, kind of straddling the flatline, sometimes green, sometimes red. so we're going to check it closer to the final bell. let me show you what the nonpartisan congressional budget office blurted out today, the very day, by the way, that president biden and congressional leadership postponed what was to be their second meeting to discuss how to avoid e hitting the debt ceiling. the congressional budget office says the u.s. faces, quote, significant race of default in

the first two weeks of june without a debt limit increase. right now you see the debt, $31.7 trillion. here's how much money is apparently left at this hour to pay our bills and obligations. the cwo says as of this past wednesday with, treasury's cash balance is $154 billion. kind of pleasely. and, by the way, $41 billion in available borrowing capacity. but you know what? financing needs for the month of may are estimated to be between $200-300 billion. folks, if you're not concerned, you're not paying attention, so so i'm really glad you're here because so far the stock market is not reflecting all of this angst. but to be forewarned is to be forearmed. where you are seeing it, in the bond market. at this hour look at shorter data -- shorter dated t-bills. people are pouring their money into the one-month t-bill, 5.6 points to the upside, the yield for the 1-month 5.5%.

by the way, it has jumped 143 basis points month over month. 3-month treasury notes yielding 5.18%. anything 1-year, by way, and under is called a note or a t-bill, so investors would rather park their money in something staple -- stable. note i said could start whipping around because at least one of our floor show crew says the politicians are selling fear while our trader says knowing what happened the last time we got too close to the deadline, he's not taking any chances. former wells fargo economist, brian jacobson. and trader scott bauer who's making trades to prepare, and we have ross gerber of gerber kawasaki, he's going to talk about the tesla news. brian, staffers on both sides of the aisle are meeting even if the big guys are not. but you're calling this locking of the horns on the debt ceiling

just theater. it's kind of smoke but not fire? but even the first act of this play has audience shift anything their seats and piling into treasuries. why are you not worried? >> yeah, thanks for having me. our investment policy committee, we've discussed this quite regularly as far as how should we be positioning client portfolios in anticipation of if there will be a default or not. and a lot of us have lived through a number of these debt ceiling debates in the past, and we do know that politicians love deadlines. and one of the problems is that there really isn't a hard deadline here. so even though treasury secretary yellen said june 1st, it could be as early as that that they actually run are out of this maneuvering space under the debt limit, it could be as late as august. and maybe that's part of the problem, there isn't a firm deadline for them to actually focus their attention and get something done. but we do think after trying everything else besides the right thing, they will eventually do right thing and either raise the debt limit -- liz: yeah, yeah, yeah, but guess

what? we know if because we've kind of seen sort of the prequell -- [laughter] i'll call it the prequel to this movie, haven't we, scott? if you go back to the last time we got this close, it was 2011. and if you look at what the markets did from the april peak of 2011 to the, i think it was the october drop, looked at what happened. the s&p dropped 19.4%. think about that, you guys, 19.4% over just a couple of months. russell was down nearly 30. the nasdaq, you know, best of the worse, i guess, down 16%. what are traders doing to prepare for -- look or, even if we do get the debt ceiling fixed, the gyrations that happen before it comes. >> no doubt, liz. and we have live through this before and, yes, there absolutely is political ranging. but in the past -- rangeling. in 2011 you had both sides of the table there with a somewhat

amicable relationship which at least on the surface right now there is not. you've also got one side right now saying are let them be bought. you know, the front-runner of the unone of the parties debt them default and the other side saying they want a default -- liz: so what's the trade? we have investor audience members watching and saying just kind of tell me what to do so i don't get torched. >> absolutely. so vix is still very low. so, you know, if anyone just wants easy, cheap protection in the marketplace, you can go out and buy upside vix calls going out june, july is, you know, pick your month where you think that big time -- that's the real easy trade. also in addition to what you said about the s&p's dropping from, you know, almost 20%, we saw a major, major change in bond yield. we saw the longer end of curve -- [audio difficulty] go from over 3% down to about 1.8%. that's another way you can play

this right now. the way i would do that is by buying a bond etf. there's a 20-year bond etf call tlt right now. liz: yeah, i know. >> that would be another way the play it. you don't just have to buy the etf, you can buy call options to the upside again. it would be like buying the long end of the curve, you know, so the price of your bond goes up as rates come down. those are two real easy ways to get in to try and mitigate some of the concern over this. and if you're looking at individual sectors, well, back in 2011 as equities were taking it on the chin, defensive stocks, utilities, consumer staples, that was the place to be. and there is a 3x, there is a 3x utility etf out there, a bullish etf out there. it's called utsl. another way to play, you know, for a little bit of defense here. and you know what? yes, there's political

wrangling, but we've lived through this, and i think this one is real. liz: okay. we've got to take it for its word at the moment. so, brian, i know that we look at the positives too on this show, and that would be the earnings season. more than 90% of the s&p has already reported, and it looks a lot better hand expected. i mean, when you look on any given day the leaders of the s&p, it's because they had great earnings. right now news corporation, the sister company of fox, is just skyrocketing. it's up 7% because it posted higher hand expected revenue in the latest quarter. the dow jones segment was really good. you get the winners there, but that's kind of rearview mirror looking for the all market, is it not? >> well, yeah, it's. and if we actually think about what was going on with guidance from companies, they've been trying to lower the bar for future earnings seasons as well. so we had a great 77, 78% beat rate during the current earnings season, and they're been trying to lower the bar for the second

quarter and even beyond. now, when i'm thinking about how things looked, say, back during the previous debt ceiling debacle, what was going on with earnings season, it wasn't nearly as good. so corporate america seems to be in a slightly better position. plus we don't have -- we're not dealing with that whole greek debt drama thing that was going on back in 2011 as well. a key thing will be whether or not if there is an agreement, will there be some immediate austerity or not, because that the really dampenedded growth expectations coming out of that august 3rd, 2011 two, budget -- 2011, budget control act that they signed. liz: dow jones industrials down about 120, we're off the lows of the session which would be a loss of 198. we're watching tech, we're watching utilities, we're watching all of these sectors. brian, scott, thank you. i want to shift to tesla. shareholder ross gerber is here, his firm has 440,000 tesla shares worth about $75 million. stock had been higher today, it was higher yesterday in this final hour because investors,

they interpreted that by elon naming a brand new head of twitter, that would direct his attention back to running tesla. but there are all these headlines about the tesla that now have the stock reverting down about 25 the %. which side -- 2.25%. which side are are you on here? >> well, i'm not on a side. i think them, you know, getting a great ceo to run twitter is great news for tesla and twitter and elon. you know, it's kind of a coup that elon got such a high quality, experienced ceo who will definitely bring advertisers back to the platform and hopefully free up a little bit more time for him to focus on tesla. this is just a win across the board. liz: but yet china recall, this happened overnight. just about every single car that tesla has churned out on the ground in china has been recalled, i believe the information was that there are concerns that there were regulators that did not allow drivers to turn off the braking or provide enough warnings when

driver cans stepped on the accelerator too quickly. i'm not worried so much about recalls because they can do a lot of this via software update- >> the it's all software. liz: yeah, it's all software. but there's also a class action suit here in the united states that's been filed. >> yeah. you know, this is nonsensical sufficient stuff -- stuff. the term recall is from a different generation, and today when they say recall, what they really mean is a 30 minute update of the software on your exciter. so if apple had to issue a recall every time they updated the software on your phone, you'd get a recall every four weeks from apple, right? so the it's a modern technology product, and and it needs to be updated. there's nothing wrong with the cars in china and the headlines have blown this well out of proportion, and tesla's able to fix these things very easily. liz: ross -- ross, i've got to get your thought on tech

overall. is it the place to be? it's actually shown some pretty decent muscle lately. >> absolutely. you know, i think in a lot of people now foresee microsoft, apple and google as stronger than the united states government itself. and so it's become a safe haven as set. well, if you're buying treasuries when they're saying they're going to default, isn't that counterintuitive in they're saying they're not going to pay on the treasuries you're going to buy to hide. so maybe you're better off just buying apple, because we know that's not going away. if all hell breaks loose, we know google a's not going away. so i think that supports these stocks during these times of uncertainty. liz: yeah. apple, year to date, 32% gain. ross, thank you so much. good to see you. >> yeah, good to see you ooh. thanks for having me. liz: we've got microsoft defending its act activision blizzard acquisition today in federal court as video gamers try for a second time now to stop the merger deal. s that is not stopping the tech giant from going all out to

expand its push to the hook up business clientele with its sizzling hot chatgpt offerings. it has just landed the parent of office depot. up next, the ceo of odp is here on how it's using microsoft's a.i. offerings to add muscle to its business. closing bell, 47 minutes away. we do have dow in the red, and i'm keeping an eye closely, the that is cac is down about 86 points -- nasdaq. the s&p losing 21 points, that's a half a percent loss. we are coming right back with on this friday. so glad you're with us. ♪ i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living.

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and i remember kind of thinking like, "oh my gosh, i think we could be sisters." because i think we looked... yes. right. yeah. and i don't think at that time- i think you're the one to tell me that we had the same birthday. yes. it's really unbelievable when you think about it, because it's been, like, really over 20 years that you were my mother and father's banker, you became my banker and now fran is in her third year of college

and you're her banker. it's so unbelievable because i'm just 20 years old. [laughing]

liz: we have this alert, we are closely watching shares of microsoft and activision blizzard because it's not just

the federal trade commission that's breathing down microsoft's neck. when it comes to its $69 billion acquisition of the gaming giant behind call of dutyied today microsoft's in a san francisco federal court facing down gamers who climb the merger would harm competition. now, just keep in mind the judge has already dismissed these gamers' original complaint claiming that the argument they put forth was, quote, insufficient. she said come back with something more robust because for now we don't like it. microsoft down just under 1 percent, agent vition blizzard up -- activision blizzard up a quarter of a percent. the company is pushing fast and forward with deals relating to its artificial intelligence offerings. odp, the parent of office depot and office max, has already said we're in. what will it cothough for the office supply king and its shareholders? joining us now in a fox business with us clues -- exclusives, ceo jerry smith. what are you using chatgpt for?

>> we have a culture of a low cost model, with we've driven about a half billion dollars of cost out over the last six years, we think it's a real productive tool for our associates, and we're using that to derive process reporting analytics, to help our code more efficiently and we worked with microsoft to so this early and all three of us said let's just -- jump on this. we actually had our own version behind our firewall. but i think it's a game-changerer inflection point for corporations in the future. liz: okay. but can you be specific? say, for example, how would a middleman using chatgpt to save the company money -- >> here's the perfect example. i brought net promoter score which is a testimony for customer service for our customers. liz: okay. >> we had employees looking at that report by report every single day. we can run that data through the chatbot, we get a summaries report. rather than reading reports, the

team can say what's the actions to go off and fix that. that's one example. our hr teams are doing a great job united stating it from a job description, offer letter, all kind of level work we're all -- liz: you must love the microsoft guys. >> we do. st a great relationship. we love the fact it's, again, our model is how do you drive cost out of the business, how do we become more productive and then really drive that efficiency. liz: you know, there's a big question, of course, that drives productivity, but what about layoffs? this is what the ibm ceo just told us last week when we asked him what types of jobs would be lost, and and he kind of counterbalanced that. listen to what he said. >> i do believe, and i've said in this before, that a.i. is going to replace many clerical white char jobs, and that's the kind which i expect a.i. will replace over the next five years. but it's not as simple as jobs go away. the number of jobs though perhaps in customer care, in coding, in business process and

developing artificial intelligence is going to increase so much that the net increase is going to be positive while there's a movement from one area to the other. liz: yeah. he was sitting there with the sap ceo who's done what you guys are doing, they are bringing it onboard. if i were to to bring you back in a year and you're sitting right here, will you still have the same number of employees or the -- or fewer? >> here's what i tell my employees, we're going to be more productive. we're 50% office depot, office max. we have a growing business, a new supply chain division which we leveraged our next-day deliverly to the 99 president of the zip codes, 9 million square feet and we have a technology platform. here's what i tell them, i want you selling more to customers, driving a better business model, driving more productivity versus doing rote-level work -- liz: so face to face. >> using it almost as a co-pilot. liz: let me say this, 2017 you came onboard from lenovo.

since then the stock has spike rather dramatically. i was just looking at it, over that time up 73%. that's just the past five years, not even the six. you were not there in 2013 when office depot was able to merge with office max. >> right. liz: but the federal trade commission gave them grief for about seven months. this is not now, today, a friendly merger type of ftc at the moment. lena khan has made it very clear that she's really, you know, scrutinizing these deals whether right or wrong. but as you look at what's happening on the landscape, would you argue -- because you just reported killer numbers -- >> correct. liz: you beat on revenue, you beat on earnings per share. would you argue that that merger was great it and probably saved jobs? >> i think the office depot/office max merger actually was a huge benefit for the company. when i took over, that merger had sort of processed through the organization, so what i did with the support of a great board and a great management

team, is we pivoted the company. we have, again, 50% of the business as retail. and here's our challenge, we think we're undervalued because we're valued as a retailer. i've got a $4 billion b to b business set growing the on top line and margin dollars. that should be a different multiple than it is today, and i've invested in the supply unit, that's where we're going to focus on. and obviously, over a period of time our job so to drive shareholder value, but we're super excited with the potential of the business. liz: maybe the markets will give you credit. >> we hope so. liz: thank you so much. why are weekly jobless claims jumping to the highest level since 2021 when there are literally millions of job openings? even way up in the state of maine. maine is staring down a record-breaking number of tourists expected this summer. that's a live, gorgeous picture, and we know it's live because our great forever stuck his thumb there. we love it live.

[laughter] all right, we're going to take you live up to the pine tree state next to show you what businesses are -- there are facing when it comes to a shortage of workers. closing bell 36 minutes away, we're coming right back. ♪ ♪ ♪ i have type 2 diabetes, ♪

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central banks are buying gold at a record pace. galantas gold has discovered high-grade gold in a world-class district. fully permitted, galantas gold is ready for production. the industry's biggest investors own 60%. visit galantas gold liz: fox business alert, we are looking at the markets on this friday with 31 minutes left to trade. not great pictures here, at least at the moment. the dow is down 109 points, the

s&p down 20. and the nasdaq down 82. first solar, though, is shining. how about that? brightly shining after announcing it will purchase european thin film e solar tech firm evilar for a deal up to $8 million -- 80 million. 26% to the upside for the stock. the purchase price, $38 million, will be paid at closing and up to an additional $4 # million will be paid if certain milestones are achieved. hay special specialize in a certain type of solar cell that is more efficient than conventional ones. inphase is right behind news corporation topping the s&p 500 there, it's up about 3.7% to $166.75. solar edge gaining 1.7%. we are now hearing names, report that the names which banks might get to participate in the largest ipo of this year, bloomberg saying that goldman

sachs, jpmorgan, barclays are slated to participate in softbank's public listing of arm, its chip design unit which is expected to raise $10 billion. we told you yesterday arm's blockbuster earnings helped mitt gate softbank's record $32 billion. arm will list on the nasdaq and could day buy as soon as september. softbank down another 3.33%. nintendo, let's take a look at that one. the video game maker releases its much anticipationed game the legend of zelda: tears of the kingdom? i'm not cool. tears of the kingdom. the game is expected to be the biggest release in years and sells for $70. nintendo's up 2% at the moment. it also is finding success with the super mario brothers movie, oh, my god, that's huge. it's earned more than a billion dollars at the global box office and is the biggest video game

adaptation in history. princess peach. austin, you have to call me princess peach from now on. >> okay, princess. liz: thank you. while gamers stay busy with zeld a a -- [laughter] investors are tuning out netflix which is down is 1 is.7% after "the wall street journal" reporting that the streamer is planning to reduce spending by $300 million this year. netflix's cost cuts come as streamers face a tough competitive land scape. by the way, as you remember, disney said this week that subscribers to its flagship disney+ service dropped by 4 million, 300,000 of which came from the u.s. and canada in the most recent quarter. the summer travel season just around the corner, and as popular summer destination portland, maine, gears up for the influx of business, a state tourism survey finds that 70 percent of businesses there say hay don't have enough workers to handle the inflow of tourists that they are expecting to see after memorial day which, of course, is at the end of may.

let's go lye to hadsonnal worth at oldport in portland, maine. madison, what is the issue here? who wouldn't want to work up there at least for the summer? it's wonderful. >> reporter: it is the absolutely gorgeous. and as you can tell, the good weather, it's come early. this is peak weather for mental health i mean, it is sunny, it is perfect on the water. the issue is lots of people like me, hay want to come and visit, they're expecting this to be a record summer when it comes to the tourism, but it's a record low for employment. 70% dealing with shortages. we're on a boat with discovery portland. this is a flagship business here, and they say that they have never struggled so hard. the owner, kathy, she said she's at 75% employment. the biggest struggle she's having is ticket sellers. i hay usually have 12. right now they only have 6. that's a huge issue because if you can't sell the tickets, you don't run the tours. now, like i said, her company, a staple to the area. they not only offer cruises like

the one that i'm on, but they also have trolley tours. you think about that, her business feeds other businesses. she says she's never had so much trouble finding people, and that's a big issue. specifically here if portland where -- here in portland where they rely on five months to pay a full year of bills. >> it's like we can say, well, we'll -- you know, come november things will get better. october 31st, we're cone. so if we don't -- we're done. if we don't hire enough people and we have to turn business away, it will absolutely affect our bottom line. >> reporter: despite her situation, think of portland discovery tours knows businesses that have less than 50% employment across the board. because of that she says she knows many businesses that have closed as a result. now, liz, you said this off the top, this is typically a job that people want. you're outside, you're enjoying weather. it's popular among high schoolers and college students, but kathy tell us us -- tells us

she's seeing those applicants in lower and lower numbers and the ones that do come in are not qualified. her and her husband, they drive the trolleys if they need to, they work the boatsthey need to, and they work the stands if they need to. liz? liz: i don't know. i would go work right now for maine cabin masters, you know, brian and ashley and the gang. i have a thing for maine cabin masters. maine is so fabulous. [laughter] let's hope that they're -- >> reporter: it's beautiful. liz: you know, i'm sort of feeling like they're going to have to hike wages. madison, thank you very much. madison alworth gloo. the holy grail of surviving can can -- cancer is the ability to discover the deadly disease even before tumors appear. up next, the ceo of star rah labs, the company that says it has developed a blood test that can do exactly that. we are going to grill him on his cancer detection blood test that is now many in a fresh trial phase. it has already had some pretty sun thing results, but we've got

to get more details on this. and my guest this week on my everyone talks to liz podcast started his home cleaning company, two maids and a mop, by working nights as a cook and planting real estate signs on weekends for a nickel apiece to save start-up money. he also got addicted to success and he started another company, pink zebra moving company. s the aimed at making moving actually a nice experience. that, i've got to say. i mean, who couldn't want that? [laughter] we are going to have the closing bell ring in 25 minutes, but you can hear my podcast, download it wherever you get your podcasts. look at dow, it's cutting most of its losses, now down just 45 points. ♪ ♪ (vo) while you may not be running an architectural firm, tending hives of honeybees, and mentoring a teenager —

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and create the outdoor living space you've always wanted. else nutrition is disrupting an 80-billion-dollar global baby food industry with the world's first whole plant, dairy, and soy free baby formula line. their patented products are available in over 11,000 stores and growing rapidly. else nutrition. century lithium is advancing their clayton valley project towards production, with the goal of becoming a domestic lithium producer for the growing electric vehicle market. nevada's lithium is the key to america's green future. century lithium liz: whatever you're doing, i need you to put it down and listen to this story.

we are possibly looking at the miracle in cancer detection. is it really? the one that the world has been waiting for since the beginning of time? biotech tzar labs says it has created the first pan cancer test and claims a single blood test predicts tumors a year before they form. i know you guys have questions, i certainly do. we have the guy guy who is behind this company which made the discovery. tzar labs founder and ceo. ash, you have to tell us, first, how it works. >> so, liz, firstly, or thank you for inviting me. if i can actually just make it clear, there are three claims that we make. this is the first pan-cancer blood test. not only can we detect all cancers, we can deeducate the it earlier than known technologies because we can detext it even before the cancer has formed. not only can we detect it, we can tell you which cancer and where it is forming. that's claim one. claim two, this is the first

prognostic case for cancer, we can tell you you do not have cancer and will not get cancer for one year. if you live in a safe zone, we know that the fastest cancer doesn't move to a stage in one year. you can see the use case of a test like that. we all need to do thissest the, and we will catch cancer at stage 1 or before went when it's infinitely more curable. claim three, we can tell you the mutations and dysfunction properties that you get from a biopsy of the tumorrish tissue. -- tumor tissue -- liz: versus a biopsy, which tends to shake up the cells and make a tumor grow more -- >> exactly. it speeds up a the -- the activity the of the tumor. you will only get the knew asian the readings from that tumor. we are claiming we can give it to you for all the tumors. sometimes there's a secondary tumor. now, to your question, how is this possible and we are not magicians, nor are we the smart guys under the sun. we literally got lucky.

we were a drug company that was working on a cancer drug. while working on it, we made a miraculous breakthrough, we realized that these cell -- the drug was acting on a certain population of semicells. we realized that these stem cells are getting a change which is what is creating cancer stem cells. the cancer stem cells create the cancer cells, once the tumor forms -- liz: often too late. >> it sheds its outer layers which are call cdcs, and when they break down, they release -- [inaudible] the entire liquid biopsy space, every that you've heard is looking at ctcs, c the dna, crna. we found a causative marker that shows up a good 12-18 months before the tumor even forms. liz: let me stop you there. you had a very small study in inya, 1,000 people.

that is tiny. now you are recruiting for a u.k.-based study. sample size? >> it's actually going to be a less than 100-patient study. effectively, what the u.k. guys have said is we will give you credit for your indian study, we just need a recognized study, and we're going to do it for one cancer. liz: all right. there are people out there and journalists who are cynics because i came from from local news where we accuse of everybody of everything first and then ask questions later. you have to tell us exactly how this isn't something -- have you shared this information? have you had peer reviews? that was the problem with theranos and elizabeth holmes. >> correct. liz: everybody gave her such huge kudos, she was on the cocover of magazines saying her tiny blood test could -- deeducate the all kinds of problems. it was a complete fraud. >> as far as i'm aware, she never published. we published one and a half if years back. but what a number of harvard and nhs sign it wases had requested

is they wanted us to put out science. our paper got published six weeks back in oxford academy of stem cell review -- sorry, stem cell journal where we're disclosed the science. and like i said, we explained the theory why we are getting such high accuracy as compared to other liquid biopsy companies and why it works on other cancers. liz: ill lumina's grail, they say they can detect 50 cancers. >> if to you look at illumina's data, the i was personally present in 2019 where they claimed that they had got 18% success for 12 cancers at stage i. and if you look at all the blogs, every oncologist said we don't need a blood test at stage iv, we need it at stage i. they went back and said they were doing the study, please take a look at the clinical data that has come out, right in they keep quoting the average of all stages, look at the stage i and

stage ii data. that is the fundamental problem with liquid biopsy companies. and i can el you what the problem is. your body, my body, has 5.5% liters of blood. i take out went 1% of the loose -- .1% of the blood, i -- [inaudible] even with a small sample ors there was no tumor cells. liz: when the study starts, we want you to come back because we want to follow this. we want to see the success or failure, as or. you've got to let us know. we will continue to follow this story because a lot our viewers are very concerned about this. thank you so much. >> i look forward to it. liz: we are coming right back. nasdaq has turned positive for the week, and charlie gasparino's coming up. don't move. ♪ ♪ dad, we got this. we got this.

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♪ liz: can we put up shares of pacwest right now? and an intraday would be helpful because they are heading back down to session lows. pacwest down 5%. this, of course, the california regional. it dropped 23% yesterday. is this short selling or a real fear flight? and will sec chair gary gensler take his advice? >> jamie dimon's advice.

liz: did i miss that? i know what jamie said but -- >> well, jamie dimon today is the latest ceo and, i guess, major player to come out and be for a short-selling ban on regional stocks. regional bank stocks. we should point out during the financial crisis bank stocks, you could not short certain bank stocks, particularly the main, big company bank stock, the jpmorgans, the bank of americas. they were just bailing out the financial system back then, they thought a short-selling ban would add some stability to the markets and is just the opposite happened. when they banned them, people thought it was even worse than what they were disclosing. so the se e c, from what i understand, despite the fact that jamie's out today and jamie has got a major voice. he is the ceo of the biggest bank in america. he's considered a rock star ceo. but still i don't think it moves at least as of today, it's not moving the dial from what i understand at the sec. here's what they might do, they might do something sort of intermediary, something like a

short selling disclosure rule. right now you don't really have to disclose if you're a short, so they might have have to say -- and just in case people don't know, that's when i bet against a stock. it's a trading tech technique. you buy shares, sell it immediately and then wait for the shares to -- borrow shares, there's two the sides to the story. a lot of people say the short sellers spread rumors, maybe unfounded rumors, about stocks to send them down and to capitalize and make money. others say, well e, the short sellers are telling you things are bad in certain sectors. the problem with the short selling ban with regionals, and i'll tell you, look at that first -- pacwest, that's the latest one that's under pressure. we've had three that have gone under right now, this is the latest -- liz: all the while, the federal reserve and treasury is -- are saying the worst is behind us. >> i don't believe it and, obviously, the market doesn't believe it. the problem is i don't think this is short sellers spreading

rumors. it is clear that what pacwest down the other day, like, 30% on top of the other losses, was that it disclosed something very obvious,es the losing deposits. liz: 95%. >> right. that's -- 9.5 percent. >> that's a lot of deposits. by the way, what is the solution? one solution they can't really do, and that's jack up interest rates on savings and checking accounts. the reason why is because they're kind of locked into a business model right now. banks always, always lag money market funds when the fed raises rates, in raising their own rates because they have so much money sort of out there long term. it's hard to sort of pay more money when those long-term loans, by the way, could be losing money. so remember, it's a different business model, and so it's impossible for pac if west, just so you -- pacwest, just to so you know, to compete with a money market fund -- you're getting 5% in a money market fund. and that's where i think a lot

of the problem is. liz: charlie, with the short selling and banning that, there are a lot of smart people who don't think that's a good idea. why not just reinstate the uptick rule which back in the day meant if you were shorting a stock, the only way you could continue to pile on it and shorting it was if there was at least one trade that was even just a penny higher in it slows down and pauses -- >> i think stock pumpers like that. remember, i think -- and i'll debate anybody on this thing. there is much more problems in fraudulent stock promotion than there is in short selling in illegal ways and manipulating. so i think that's a problem. and, again, liz, this is not a problem of short selling. this is a problem of people just taking their money out of the bank for a lot of reasons. maybe they're worried about the loans they extended, but also you get 5% really safe in a money market fund. liz: thank you for butt tonk your shirt. >> okay, you want to see my gold chains? liz: no, i actually don't.

>> i'll show you. look at this. liz: that was the thing, comes on the set -- >> look at this. liz: i'm avoiding my eyes. oh, my god. >> they went really fast. [laughter] liz: closing bell, four minutes away, all the major indices are down at this hour but nasdaq's barely holding on to gains, just about a half a percent higher for the week. dow jones industrials will have lost are about 1%, s&p a third of a %. let's bring in chief investment strategist and overall market guru sam solve value. we've got all kinds of issues, not to mention this regional bank crisis. what are you doing right now? what are you seeing is the best place for money to be right now? >> well, good to talk to you again, liz. we're in that period, sell in may, but i tell investors, retreat or rotate, don't retreat. that you're actually better off going toward those sectors where the demand for the products and services remains fairly static.

in particular, consumer staples and health care. because those, at least on a relative basis, are going to be outperforming the market. and even in this pre-election year which usually does well, the may through october period had shown pretty numic returns. liz: -- anemic returns. liz: yeah, that's true, ask people are hoping that technology will be the area where with there might be some revival of what we saw about a year and a half ago where it was the place to be. do we get back to to that momentum type of trade? >> i don't think we get to a momentum kind of trade. in many ways i think investors are hiding out in technology. they're moving away from the deep cyclical areas like industrials, materials, energy because they see a slowing u.s. economy. so i think that they're going to be looking toward technology on the non-defensive side but then

also looking at utilities, staples and health care on the more defensive area. liz: okay, okay. but, and yet you like pfizer, that's one of your picks. talk about why pfizer. we just had the ceo last week, and lots of good things happening, and yet the stock hasn't really broken out lately. >> right. well, pfizer obviously did very, very well during the covid situation. right now investors are a little bit worried that they're not going to have their mojo to be relying upon. but actually our analysts are saying that pharmaceuticals could do relatively well because now we're getting back to a more normal kind of an environment in which you are going to have elective the procedures, where you are going to have more normal kind of use of medications and just people going out, etc. here's a company that's raised their dividend in each of the last ten years, now yields more than 4.25%, and our belief is that because it is in this

fairly defensive health care group, that it could be at least a relative outperformer if not an absolute positive return arer. liz: which worries you more, hitting the debt ceiling or the fed tightening at the june meeting? >> well, i don't think they're going to tighten at the june meeting -- liz: they might, they might. you never know. >> you never know. but we believe that they're done. i think the debt ceiling is the bigger concern, for me. looking back to april 29th of 2011 through december 3rd, the market was down 19.4%. all sectors -- liz: yeah. >> -- and nearly all subindustries. liz: indeed. we did show that today. sam, have a great weekend. happy .. ♪ larry:hello, folks, welcome to code low. i am larry kudlow.