Diesel. Were talking diesel engines with cummins, that big engine company. Ceo is here on fox business, so i hope you watch. The bears, folks, have called the cops on the bull party. As we kick off the final hour of trade, that partys breaking up. Stocks pulling back from record levels for a second day in a row. The dow jones down 470 points. That is a loss of about 1. 25. The s p down 66 points, and the nasdaq its a bigger chunk here, 2 loss of 323 points. And the russell 2000 losing 22 points. Now, one thing for sure the markets are getting no help this time around from semis, software or cybersecurity. Igv is, Ishares Expanded Tech Software etf, is down as you see about 4. 33 . The philly Semiconductor Index losing about 2. 7, and then the amplify cybersecurity etf, Ticker Symbol hack, is down 3. 5 but its not just stocks. Investors are showing some real caution aahead of jay powells testimony. The Federal Reserve chief appears before congress twice this week, first tomorrow at the house of representatives and then thursday, the senate. And then fridays big february jobs report, no doubt, is putting a cap on any bullish exuberance. Now, the fed certainly is in focus amid the fallout at new York Community bank. Shares today though, this is a pretty significant bounce here. After falling 23 yesterday, its back up about 15 plus percent. But that is, obviously, not enough to erase yesterdays fall. But if you even look just year to date, and we dont need to remind you were barely into the third month of 2024, that stock has fallennen 69 . Coming up, former fdic chair sheila bair joins the claman countdown to talk all things new York Community bank and to tell us why she is now saying Bank Failures are looming. All right. What exuberance there was in the markets earlier has settled down a bit, and when i say bit, i mean bitcoin. The morning the crypto turned on the booster rockets and blasted to an alltime high of 69,202 before then reversing, sinking right now about lets i call it is it 88ing . If yeah, sinking about a 8. 1 at the moment weve got it at 62,158. The momentum though the definitely started in january. Year to date bitcoin as a gained more than 50 well, is that about 50 . These numbers are changing every single second, especially with cryptocurrencies. Very volatile. Another record smashed, only the one today is holding, weve got gold surpassing 2100 per ounce. That would have been a record. And right now its at 2 2139 per troy ounce. As for ec by its, ono doubt ec bities, the dow is less than 2 Percentage Points if from the a new record. It closed at a record of 39,131 on february 23rd, right now were at 38,515, but the other indices are not far off either. S p yesterday, just yesterday, notched a new alltime intraday high before reversing. And, you know, the s p and the nasdaq both closed at records as recently as friday. All a last year do you remember Morgan Stanleys mike wilson . If he was bearish and wrong. But now jp porks morgan is saying bubbles are forming in the market and in bitcoin. As for the mag 7 stocks, theyre looking more like sag 7 stocks. Lets look at apple. Apple is falling at the moment another 2. 8 on a report or indicating china iphone sales are down 24 in just the first six weeks of 2024. Due to competition from the chinese phone maker huawei. And flint over toes tesla sharea shares. So Many Organizations and Media Outlets say tesla shouldnt be in the mag 7 anywhere, shares down 4. 5 on track for their lowest close since may of last year as tesla germany has been forced to halt all a work due to a suspected arson. The plant is expected to remain down for days as they figure out and tamp down on the fire. In the meantime, meta if also declining after facebook and instagram were hit by outages earlier today. That stock down 1. 6 . So lets get right to the floor show cuz weve got a lot of moving parts here. Blackrocks global cohead of fixed income etf, Steve Blakely and tom hayes who says, you know what . It is possible to brace for a correction but still be bullish. What do you mean by that, tom . How do you do that . Warren buffett said beware of geeks bearing formulas [laughter] and the narrative of the market for the last two months has been a. I. And bitcoin. Well, a. I. Is going to change the world. Its just not going to do it by next tuesday. The market is up 16 out of the last 18 weeks. We havent had a 2 correction in 87 trading liz thats it, a measly 2 correction . Measly e 2 correction. So last week and a half we were on the network for the first time, and you know ive been bullish for the last year and a half each when it was very, very lonely. We kid put a portfolio hedge on, index put spread to dampen volatility and give us excess capital if we get a 57 pullback to get long and constructive, so we are constructive, we are fully invested but now we are hedged for a normal seasonal pullback. Liz you initiated a tactical short. Give that that to our viewers in plain english. Yeah. So we went out a couple of months during the election years, february, march, april tends to be a weak part of the season. Weve run up quite a bit. Earnings are good, but were trading at 20. 5 times forward earnings. Thats a little rich ared. A little bit out of the money s p put spread, so you buy the near strike price and you sell the lower strike price, so if the market moves that 1 of equity capital, if the market pulls back 57 we make 5x on our money which gives us nice portfolio dampening. Liz steve, we had a lot of equity records, also some significant bond records at least certainly year over year. When you look at the record when it came to inflows into bond funds, 300 billion. 203. 7 billion of that was here in the u. S. And you guys got a huge chunk of that over at ishares. Does that continue and in what form . Yeah. I think were pretty bullish e on it because if you look at the landscape today, were at yield levels that are greater than they were 20 years ago, which i think is pretty remarkable. So theres tremendous opportunity in the bond markets right now. So we saw investors deploy over the last two years, you know, granted, some investors were early. We did have that runup to 5 . But now as we can see even from todays price action weve retraced. We could probably be sideways ear here if for a while as everyone sorts through what the feds posture is going to be. Were going to get more information on that this week. Were going to get more data coming in. Were very bullish on the idea of upping your fixed income allocation. We think investors have been fairly underweighted even after these flows. We think theres a lot of room to run are. Liz okay, so what is the best actual trade . If youre trying to look at the yield, considering also the current potential upside valuation gains as a rates fall as a rates fall, i mean, this is a lot of crosscurrents investors have to be faced with. Yeah. There are a lo of macro factors. If youre in the soft landing camp, then risk assets are attractive. So even if these tight spread if levels, high yield offers excellent carry liz what if im in a hard landing scenario . You want high quality duration, so that can mean longdated Investment Grade or even more, longdated treasuries. Liz how long . A 5, 7 . We saw over 20 billion last year, so well if those flows pick back up again. Liz well, again, just because the herd or is doing one thing, tom, doesnt mean that each investor has to do the same or follow that herd. What are you doing differently beyond what weve just talked about . As you know, they call me turnaround tom for a reason. We like dramatically out of Favor Companies that are high quality. So one is advanced auto parts which actually got upgraded today. The ceo, shane to kelly, he came from hd supply which was a 7. Billion business for home depot. Advanced auto e parts is down 70 . Hes been in for about a quarter. Before he could even find the coffee machine, he took liz hes one of those. [laughter] hes selling off the canadian business, hes going to delever the balance sheet, simplify the supply chain and distribution certains, and he took guy e dance up in his First Quarter 10 , and he said were going to have at least 250 million of Free Cash Flow next year which is critical in a turnaround a situation because you need the runway to get the turnaround in place. We talked about it in the mid if 50s, its now up over 70. We think this can go to triple digits e over the next 1224 months. Liz steve, jay powell is speaking tomorrow and then thursday. What are you expecting from him, and when are you expecting the first rate cut . If. I think what were probably expecting from him baseline is hes going to reinforce this narrative that they can be patients continue to watch the data come in. The markets pricing that in. You know, tom and i were talking before the show just how its shifted. We shifted from as many as a six cuts to a little over three and a half at this point. I do think the markets sort of centered on around a june, so well see if that plays out. But i think hes more than likely going to reinforce that message. Liz okay. Guys, we gotta run. Were very close to session lows, particularly with the nasdaq. The nasdaqs session low, new one, 329point loss, were down 324 point wees. Steve, tom, always a good to see you both. Thank you very much. You know, it it may seem antigreen, one Major Industrial making a very big bet that diesel is not dead. But the ceo of engine maker cummins is here to tell us why her company is pressing ahead with the next generation diesel Combustion Engine and how he says its actually part of her Destination Zero emissions plan. Ing can those two things exist together . If the ceo of cummins believes so. She joins us next, first on fox business as cummins stock hits an alltime high. And the Spider Energy etf up about threequarters of a percent right now to 86. 83 here, and we are looking at it over the last two weeks, a gain of 1. 5 . The claman countdown, were always gaining especially for you guys. We are coming right back. vo what does it mean to be rich . Maybe rich is less about reaching a magic number. And more about discovering magic. Rich is being able to keep your loved ones close. And also send them away. Rich is living life your way. And having someone who can help you get there. 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Where there are so few certainties. laughing look around you. You deserve to know. As we navigate a future unknown. Im glad i found stability amidst it all. Gold. Standing the test of time. Investment opportunities are everywhere you turn. But at t. Rowe price, were letting curiosity light the way. Asking Smart Questions about opportunities like advances in healthcare. And how these innovations will create a healthier world tomorrow. Better questions. Better outcomes. Liz on this super tuesday, inflation, of course, continues to take a front and Center Position as voters head to the polls. Gas with lean prices have actually been gasoline prices have been relatively tame for the past year, but what about the past 10 years . This week the average price of a gallon of gasoline in the u. S. Ticked up 9 pennies from haas week. Aaa says some of its seasonal driven by spring break driving demand, but the president ial candidates all have different positions on this. The Biden Administration has a history of taxing the fossil fuel industry, and republican candidate nikki haley has accused former President Donald Trump of supporting a hike in the National Gas Tax of up to 25 cents during his time in office. Meanwhile, diesel fuel has actually come down 2 cents over the last week. Cummins, the top u. S. Manufacturer of both diesel and alternative fuel if engines, is working to help customers spend even less. Its unveiled a new, more energyefficient engine that gets its customers one step closer to what cummins calls destination if zero. Joining me now first on fox business, cummins ceo jennifer rum if ze, and youre joining us on a day where i said it was at a high . Its at at an alltime high. Right now, 275. 23, never before seen. So you get to be at the helm of that. Thats got to feel good. Yeah. Yeah, for sure. Liz you know, diesel, lets talk about it. Because it was always associated with black smoke streaming out of tailpipes. How are you changing the con that diction that clean and diesel cant coexist . Yeah, well, i think weve been changing that, that story really for the last couple of decades. And the diesel engines that were producing today in the u. S. Have 95 less n work x and particulate emissions, and our strategy has been to embrace this need for change to drive innovation and growth. Its driven us to record revenue in 2023 of 34 billion for the company, and our Destination Zero [audio difficulty] strategy is all about how do we embrace the need to decarbonize our industry over time and use that to continue to grow cummins business. Liz i want to talk about this next gen15 engine. Give us some details on it and how it is transformative and brings you closer to that. Yeah. So as a part of our strategy, Destination Zero is really a dualpronged strategy the first focused on our core business and continuing to invest in enginebased solutions, and weve announced [audio difficulty] were investing a billion dollars in our u. S. Engine plants to bring these new engines into the market, high efficiency, lower missions, fuel flexibility. The 15liter will be the first of those products we lawn of. Here in the u. S. , the natural gas version this year, and then the diesel version or in 2026. And, you know, these are marketleading engine platforms that will be highly efficient, saving our customers fuel dollars and also reducing the co2 impact on the planet with these dieselbased solutions. And they have the ability to have fuel flexibility. So that natural gas engine with renewable gas, which is increasingly coming in to the market, can be a net zero co2 emissions. Its a really exciting part of our strategy even as we also invest in the zero Emissions Solutions including electrizers, Battery Solutions and fuel cells. And, you know, we announced last year that were going to be manufacturing battery cells in partnership with daimler truck, packard ev energy here in the u. S. To support commercial vehicle electrification. So a lot of exciting things happening. Liz well, that is the point, isnt it . I mean, you look at your customer base, and you have very big names, some of which you just mentioned. We can put up a whole bunch here that include volkswagen, volvo, stellantis. And, obviously, youre doing this because, sure, its good for the planet. But its the also important for business. Well, yeah. Liz and it appears to be working here at least in that case. Yeah. I mean, first of all, you know, those customers that were selling to, those are commercial trucks. Those are with uses, Construction Equipment right there at the hart of the u. S. Economy. Our Customers Count on us to provide the right solution for them to run their businesses and serve our needs. And then we looked at how we grow our business through meeting those varying customers needs. Now more than ever our customers want us to bring them a portfolio solution thatll meet their needs today, and and as those needs evolve and understand how to help them navigate the change that will be ahead. Liz you guys do, amidst all of the good news, have a little bit of a pr problem. Last year you were fined close to 2 billion for doing kind of an end run, allegedly doing an end run around the clean air act. And, in fact, that fine of 1. 6 billion was a record. And, you know, that, to me, does not look good. It makes it look like your company was trying to figure out a way not to comply9 with the clean emissions structure that the federal government is trying to do. If how do you convince shareholders and your customers that youre really serious about this now. Yeah. You know, cummins has and continues to be committed to emissions compliance. And, you know with, we first disclosed this review that was being done by epa and carb in 2019. We worked collaboratively with them to answer the questions and, you know, there was no evidence of wrongdoing by our employees. But these regulations are complex, and we work with these agencies every year to certify our product, to partner on what future regulations look like, and we needed to get certainty and move forward. So it was disappointing, certainly, the size of that a fine. Fortunately, we are in a Strong Financial position. We general a rated record cash flow last year, and were able to continue to invest in our strategy, seeing Strong Demand from our customers if for products today and, you know, we are continuing to make these beg investments to meet our customers needs and to ensure that we can help decarbonize our industry. Liz well, jennifer, well watch. And i agree, i think that when you spend a lot for r d, that means you are serious about improving the technology and looking forward, modernizing.