Transcripts For CNBC Power Lunch 20240714

Cutting the cord for the Cable Companies. Well hear his surprising report as power lunch begins right now. All right, let less give you a check on the markets they are up by more than 11 for the dow. 289 points the dow up 300 points. At one point as the bond market stabilizes still though on a track, the dow that is for its third week in the red, nasdaq up a buck and three quarters all right, thanks we are looking to close out a wild week on wall street with 100 point swings in every direction. The dow still down about 3 on the week the big culprit, yields. Check out the ten year fall tog aing to a three year low. For more on whats been driving the action, lets go to dom chu at the New York Stock Exchange so kelly, we have a bit of a reversal over the past of the last couple of days and whats leading the charge with the dow, the s p 500 and nasdaq, right now, the dow is underperforming there. The s p 500 is up about 43 points stays here at session highs for now and the tech heavier north america dak if you will, getting more because theres a return by some traders to risk an sippeape the best performers, you mentioned the yield kcurve. As rates start to stabilize and it goes up even more positive, the financials, banks are starting to get more recovery in place. Also watch large and megacap tonl stocks. Those are getting a bit of a bid in this voirenvironment as well. You might suspect that ewe it will tillties, defensive sectors are the ones leading at least maybe i shouldnt say declining. Underperforming on a day like today. Those are things to watch and one other place were going to take a close eye on is whats happening with the Energy Market because crude oil prices have been b moving high er alongside the rest of the market, but not playing nearly as much as an upside as the rest of the eckqut markets are. The reason why is because opec has trimmed its demand forecast for Global Oil Demand as such, Oil Price Gains have been cappeded i want to call your attention to post 8 thats where chevron and exxon both trade exxon, somewhat par tticipating up by one and a quarter percent. Those oil companies, both members of the Dow Jones Industrial average, so well watch to see if these trades start to play catch up a little bit with the rest of the Risk Appetite but for now, back to you guys thank you dom chu. President tru speaking with three Bank Executives this week about the stock markets big drop. Kayla has the details. The ceos of three of the biggest u. S. Banks, bank of america, citigroup and jpmorgan, were all in washington for a previously scheduled meeting on regulatory issues. When the treasury secretary ushered the group into a room and said the president would like to speak with you about the economy. What followed according to two people familiar with the call was an impromptu roughly 20 minute discussion about the market and big picture issues facing the economy the ceos told President Trump the u. S. Consumer remains strong, but trade issues are hurting Business Outlook and Capital Investment one source says the president was receptive, but that quote he likes the tariffs. The group discussed the global flash points everything from hong kong to brexit to mexico and said those were the negatives on the board while the u. S. Was still a positive story and finally, the Federal Reserve. The executives told the president the quarter point rate cut isnt enough to spur capital flows and wont really be notice bable to every day americans that led the president to his familiar criticism of jay powell and something im told none of the executives on the call really wants to take the bait on thanks very much. With the news about bank execs meeting with the president with recession fears cooling off at least for this day, how should investors navigate the volatile market . Mark, steven, Portfolio Manager with fed rated cough man funds and ron insanaa. Welcome to all mark, ron, im going to begin with you about the tiresome subject of yield curve if i might again we havent talked enough about it all week long is is there an argument that the signal the yield curve ever briefly flashed this week is is different this time because the cause of the yield curve inversion is slightly different this time . Than in prior occasions. Do i have enough time to take that question apart. No, youre shaking your head i dont know. So the actual, the yield curve the Federal Reserve looks at which is ten years to three months, began its inversion if late march and has been inverted since then a longer term signal of impending recession. As to the reasons of this most cent inversion two year versusthe ten. Argentina blew up this week. There was r more selling of argentine bonds that prompted some Mutual Fund Managers to buy u. S. Treasuries. Yields are negative so youre seeing forced buying of u. S. Treasuries not necessarily a sign that investors are panicked about the pace of growth expect that the Global Economy is slowing down in china, italy, germany, u. Kchl argentina. Germany absolutely. Worth mentioning twice. Biggest economy in europe so i think you ignore it at your own peril. Everyone says this time its different and all recessions weve seen since 1967 have been b proceeded by an inversion of the yield curve. Mark, let me turn to you and get your reaction to what ron said and more pointedly, tell us how youre positioning your portfolios in view of whats been going on in the economy globally and in the markets over the past couple of weeks sure. Its a relief to rons comments. I agree its always dangerous to say its different, but theres some static in this signal and it has everything to do with the fact theres nearly 16 trillion of sovereign debt that is is yielding less than nothing at the moment and the gravitational pull and that pool of bonds thats growing is weighing on the tenyear bond by way of the fact that today it sports a negative 1 term premium, which is unprecedented. Were we to normalize the premium u, that would take our ten year yield to over three. Now i dont suggest we should be at three but anything above a two would at least flatten that if not resteepen it as a consequence, im not taking my marching orders from the aversion that occurred this week its u. S. Over nonu. S. Large cap over small cap small ball from a sector perspective. We want some offense with areas like consumer facing industries. Home billers, for instance, in addition to that, the hyper markets, but as well, some of the defensive sectors like staples zwrous keep an even keel with record to this volatility, which we dont expect to receive anytime soon i was going ask whos your steph curry, but steven, ill ask you. You also have some particular picks here you see plenty of opportunity in this environment youre not worried about the you know sort of big, scary csignal were talking about . Were very worried about those big, scary signals and look, you can debate Interest Rates all day long, but just listen to the deere Conference Call and hear the effects the trade war is having on them or just look at every macro indicator out there. Whether rail car, everything is slowing on the year over year basis after one of the most historic inflections of growth where you had nine quarters in a row of accelerating gdp growth on a year over year basis. Thats behind us were in the hangover phase of the party. For 30 years, weve been looking for enduring Growth Stocks companies that create their own momentum no matter whats going on because frankly hoping for a trade deal is not an investment thesis an we look companys ideas that can grow in any environment. So its really stock picking and you have several stocks that you like none of which frankly i have ever heard of. They are Smaller Company stocks, which doesnt mean theyre bad and your fund is up 25 this year or there abouts and why dont you just pick one thats a stand out for you. Sure, lets look at inspire ticker insp. This is a company thats noncyclical. Theyre a med Device Company focused on sleep apnea they have the only approved device that goes inside your body to help cure it right now, the Current Technology is a 40yearold pressurized mask and hose which is not really great to sleep with and heres something i dont use it anymore because you cant sleep. Its worse than having sleep apn apnea. There you go, ron but this is a company we think can grow for a long time and its really what we focus on at fed rated kaufman fund theres always opportunities out there for innovative small cap companies, but if youre hoping for some macro acceleration right now, i think youve got to wrong trade. Theres one interesting thing about this i think people have to think about when trying to position around it. Going into the 07, 08 crisis terrible, generational event still hanging over us today. Where is the u. S. Ten year we were probably upwards of 4 , maybe higher if we are going into a downturn, thats not as severe with our bond yields already at 1. 6 , how are people supposed to position for that do we just assume things keep going ever lower in other words, are we just saying we assume this event is is going to happen its going the play out a certain way, but yields are way below where they were before one of the worst Global Crisis weve ever seen. This is the concern the feds run out of u bullets as people like to say. If youre going in quarter point increments, they have eight cuts to zero or four to zero if they go 50 points and look, with rates this low, assuming you could get congress in the white house on the same page, you have some latitude for fiscal stimulus because it wouldnt cost nearly as much from an Interest Rate perspective. But you could do more. Now what happens here is the big question cowe do we remain an oasis in an area of trouble or are we going to catch the contagion around the world and force the fed and fiscal policymakers into doing something more we have some latitude. We are not out of bullets. The fed could go negative if themted t they wanted to the its a tax on depositors presumably forces money back into the system. No, no im not advocating for this. But thats one of the possibilities it seems extreme because were not in crisis. Back to quantitative ease in, too. There may be a country that will go into crisis. You dont know if its italy, were not in crisis. Were stronger, but rates are our tenyear is starting at 1 1. 6 tha all im saying mark well give you the final word on this what will you say to people who want bonds well i think bonds should play a role in our clients portfolio in proportion to the risk bugts just because yields are low doesnt mean we cant ask a governor on the volatility on a portfolio thats going to incur by way of all these cross currents were experiencing, not the least of which, trade. I think they can still be a part of it. I would be reluctant to chase longer duration securities because if we get some kind of reflation somewhere in the u. S. Or elsewhere, the duration f these instruments with such low yields are going to create a decline in bond prices not unlike you would expect to experience in the eck quity mart thank you very much coming up, two stocks making industrial sized rebounds today. First General Electric the street reaction to those bombshell accusations that hit the stock yesterday and deere took a big hit after cutting its outlook again, but its now higher lteou whats driving these turn arounds power lunch is is cocoming rit back two big industrializedbacks today. This after ge suffered the biggest drop its had since april of 2008 when madoff whistleblower just yesterday called the company a bigger fraud than enron and deere is up near ly 7 despite an ugly quarter. Here to discuss these topics are Morgan Brennan and anesh gupta ges ceo buying more shares yesterday which combined with his big purchase u tuesday nearly doubling his stake in ge. That plus a number of analysts and investors including citron batting down conflicts of interest, conclusions, also the rhetoric used in the report used yesterday. All thats helping to support shares today William Blair arguing it has adequate resources citi perhaps capturing it the best quote allegations have holes, but do highlight ongoing concerns we think the market left ges march insurance teaching with a bert understa better understanding of the companys liability. But also weary of the potential for another shoe to drop heres how leslie sideman responded yesterday. When i saw the report this morning and had a chance to just flip through it, by initial reaction was that i thought it was full of misleading, inaccurate and inflammatory statements so culp calling that report quote market manipulation as well but i would just caution gas price, this is a company been very hard hit. A lot of skeletons that have come out of the closet over the last couple of years its in the midst of an attempted turn around right now. I dont think any of this is is to say there arent accounting issues here. The sec and doj are both investigating some of f the practices at ge, but the claims that this could be a a company that could go into bankruptcy, the allegations of fraud, those are in question. The ris b ks around ge, is that priced in or not thats what investors are trying to wrap their heads around now to discuss ge and deeres earnings miss. That company has been caught in the trade war, but the shares are rebounding if you dont mind, just begin with General Electric. What are the main things you think investors need to be focused on there in terms of next questions and next steps . Thanks, kelly General Electric is outside of our coverage i focus primarily on heavy machinery stocks so agriculture, construction, mining and trucks. More so like caterpillar and john deere on deere, ask you b about their latest Earnings Report so basically, there was a lot of negative macro issues affecting the company. The poor crop season, the flooding, soybean sales coming way down from previous levels. Why are the shares rebounding today . I think youre seeing a little optimism around corn and soybeans both are up along with the stock market and you know perhaps there were some positioning issues into the quarter with people more negatively inclined. Maybe the results werent as bad even though sales mismissed, earnings missed. From our perspective t the reward is is neutral looking at the trade war and the larger than expected crop which we found from the usda last week off set by potential that that crop is is actually overstated in size and perhaps you could get prices of corn moving back up as we look into the later part of the year and were in an environment where the u. S. And brazilian tractor markets are relatively depressed related to history would you rather deere or cat pill lear. Guessing youre going to see deere in part because there are more pressure points for caterpillar. If Global Economy is slowing, they would be more exposed to that kind of business than i would guess deere not to mention the china trade issues yeah, thats 100 right, tyler. We think cat is in negative earnings revision cycle up to this point we have a slow rating on the stock and you know you could kind of point to price to earnings and saying maybe the stocks cheap here, but what happens when you get into these negative cycles is that earnings are tough to forecast so you end up needing to look at the price to sales multiple. And that would kind of be somewhere around a 0. 6 to 0. 7 times, which would imply about 30 lower from here. We dont know how quickly things are going to deteriorate so were not that negative yet. The overwhelming risks are to the downside we dont see drivers of demand improvement outside of mining. Its heavily reliant on global Macro Holding up on the side of deere, which we would be more inclined to be president obaositive on, 30 ofe from construction. 70 from agriculture and turf. Within agriculture and turf, you have the north american, brazilian markets, we think theres room to be more positive and if we got a rebound in corn and soybeans based on potential for a trade deal or a small rer than forecast crop, we would be inclined to get more positive. Well see if that comes around the pike. Thanks very much joining us to talk deere and caterpillar. Thank you there was a retail route on wall street this week even with the days rebound. E the tf tracking that group is still down 4 . A busy week of retail reports coming out take a look. Home depot, kohls, target, gap, theyll all report and those and many more. Can the earnings reverse down trend . Well talk retail after this by consolidating your Credit Card Debt into one monthly payment. And get your Interest Rate right. So you can save big. Get a nofee personal loan up to 100k. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Whlets do it. . Come on. This summer, add a new member to the family. Hurry in and lease the glc 300 suv for just 419 a month with credit toward your first months payment at the mercedesbenz summer event. Going on now. Welcome back retail gearing up for a bigger week theyre all among the retailers set to report results after macys quarterly win and walmarts, who will be the big winner next week craig johnsonand boar ris are your trading nation team gr craig . Well, i brought two charts in today. Look like were going to have more close outsales ahead. If you look at this etf, its trailed by 20 i got support that comes in, support needs to hold. If not sh , you could be comingk and retesting th inthe lows in 7 one stock thats standing out is tj max its tried to break out three times failed and at this point in time, 47 is the key level to hold if it doesnt hold, next support is going to come in around 45. So thats about 12 lower than where we are now doesnt look like a great risk reward set up. Right, but thats been one of the stellar performers now, so that would be an interesting boris, who are you focused on . The only thing weve learned is is a tale of two cities you buy discounters and Sell Department stores. Theyre having a kodak moment and not in a good way. In the sense theyre getting disintermediated so my opinion, i like t. J. Max against nordstrom or just stand back from nordstrom. The other thing thats interesting is that housing has been remarkably bad compared to where the rates are, where unemployment is is, where wages are and so im very weary of home depot and lowes. For home depot, i would probably sell the 195 puts to establish the position if it drop, but not be chasing any tratder over here wow, a kodak moment for the department stores. Thank you both craig and boris. For more, head to the website or follow along on twitter. Ahead on power lunch, the good, the bad, the ugly. Wild week on wall street some stocks held strong, but for others, it was ugly well bring you some of the names. Plus, a cord cutting contrarian. Craig moffatt out with a new note saying things could get better for Cable Companies hell join us to explain and the super bowl for super cars lets go to pebble beach and check out some of the cars up for auction. Welcome back im sue herera heres your news update at this hour greenlands foreign minister says her country is open for business, but its not for sale. The wall street journal first reporting that President Trump had brought up the idea with his advisers of buying greenland its a selfruling part of d denmark. Congress gos year long Ebola Outbreak has spread to a new province with two cases including one death confirmed. The movement of the potentially deadly disease to a new province highlights the difficulties that Health Workers in the congo are facing in controlling the outbreak the izzy military says the palestinian driver has been shot and killed after he rammed his car and injured two israzzies in the west bank. A man was hurt while a woman was moderately injured. And according to a new study, near ly 80 of 2,000 adults surveyed say they are stressed over the possibility of f a mass shooting. A third of the respondents say they have stopped going to certain places or events due to that fear. Youre up to date. Thats the news update this hour back to you. Thank you very much stocks are on fire today as you see there with the dow up 270 points better than 1 . S p up more than a third and nasdaq composite by one and twothirds percent check out bank stocks. They are soaring as yields claw back financials, the best performing sector today after a rough week. Bank of america, goldman, citigroup, morgan stanley, jpmorgan, the joint is jumping for all of them. Lets find out whether the joint is jump nging in the oil market. They told me it was you. I knew it was you all along. So oil market is is kind of jumping. Stick with me here prices are moving higher as recession fears begin to ease a bit. Gains more mod nest the eck qui markets. Wti looks set to close around 54. 89 a barrel while brent closer to 58. 70. Thanks to the latest monthly report trimming its demand forecast and sees a bearish market for the rest of the year. Crude still finishing in the green. Wti is up half a percent on the week brent is up fractionally thanks very much. Big swings on wall street this week sending investors searching for safety dominic is is at the New York Stock Exchange looking tat good, the bad and the ugly we have some of all of that so far in a very rocky week for stocks and the market overall. Lets start with the good part of the story that has to do with the American Consumer because it may not be on the discretionary side as much, but certainly americans continue to pay up for things like you know staples. Things like cereal and laundry detergent. The good staples are Holding Steady walmart up big thanks to earnings the Parent Company of arm and hamm hammer, theyre up 5 this week and General Mills up one and a third percent. By the way, church and dwight record high trade today. When it comes to the bad, its been more volatile with regard to trade cisco down 10 semiconductors down 9 and Juniper Networks down 6 as well and where it get down right ugly is what happens with the other side of that consumer spectrum like we were saying with with regard to the discretionary. Apparel and what not macys down 18 on earnings. Nordstrom down 18 down about 11 as well so as we talk about the idea that some of these companies could be the battleground for investors with regard to the next secular trend in consumer spending, its still the Apparel Companies when it comes to brick and mortar thank you very much lets drip deeper into technology with us now u is is steven, a tech strategist at Wolf Research good to see you. Thanks for being with us today thank you, tyler. I want to talk b about something that is at the tail of the note that i went over this morning before we get to individual stocks an how you think that things are going to happen, but what seems interesting to me was your sort of disarticulation of what could happen to Technology Companies large and small, if there is either a mild or a more severe recessi recession. Would you walk me through that because i found it fascinating i think this Earnings Period is showing us the economy is slowing. Youre seeing that in the hardware and Semiconductor Stocks i think theres a risk in a part of the market thats represented growth and god help us if value ever starts outperforming growth again. But its encouraging were not seeing tech get hit harder than the markets. Still one of the few places to get growth and having been around in 2000, while theres some similarities, we havent seen the kind of tech spending boom so i think tech is generally speaking, a place youre going to want to be and even in a downturn, theres going to be names that do well but isnt there, as i sense part of what you wrote, the idea that if companies do not have fortress balance sheets, theyre going to have a hard time navigating through that. Through a recession. They may have to look at different kinds of business come combinations, there could be a will the of stuff with companies we know, but still may not have the financial strength to power through. Well you do worry about companies that have taken on a lot of debt recently either to make acquisitions or to buy back stocks we are at a high in terms of i think ipos going public that arent profitable. At some point, thats going to matter a lot of unicorns arent going to turn u out to be unicorns one of the most interesting are semiconductors t reports are not great and theyre getting hit by automotive and industrial exposure yet the stocks doing well i was checking that 75 of Semiconductor Stocks are above their 200 day moving averages, which is better than any other tech sector, so either investors are looking ahead to growth next year or theres false hope thats a place that i think you could see hit if we go on to a recession. Right and the flip side, maybe the its a nice green schuette if were not. Where would you tell people to be right now what do you think is most attractive well, its hard not to go with some of whats been working. So frankly, the platform companies, googles and so forth are at risk for regulation if you break them up, which is difficult, probably would be a shareholder enhancing event and i was talking to a tech executive recently whos been in this position before and he said you either have to win fast or settle i think these Companies Understand that. So i think theres still opportunity there. I think some of the i. T. Hardware names that ive covered in the past are interesting that have really gotten hit dell, small name in storage, pure and even cisco, which has taken it on the chin this week, but its still one of the best performers and the networking space is the best place to be. So you like cisco, not armageddon, but swoon. We do my colleague and i still have buy on it. We think theres 20 upside in the stock. Clearly a lot of whats happening there is is macro. Theyre saying theyre not able to compete for Chinese Business anymore. But the fact is networking is the hardest part to do of infrastructure and hyper scalers like amazon still have to buy some networking from folks like cisco. Cisco also has a product if you remember back in the days, product cycle was everything tech was b about pt it still mattered to Companies Like cisco and they have a big one in their campus switch business, so we would be coming back to the stock here thanks very much for your time thank you have a good weekend and it was bonds gone wild this week. With Rick Santelli tracking the action at the cme. What did wlern, rick really amazing when you look at whats going on around the globe, the 30year bond, anniversary dates between something for all you began and elliot waivers out there today happens to be b the birthday of bonds. On august 16th, 1977 that the bond futures were born its different because tens minus twos never close before zero wednesday, which seems like a lifetime ago, they close d like. 005. I know its smant tick, but as a technician, closes are prioritized. A major difference that is they always u take away the punch bowl when you get curve inversions when the fed starts to act right . For inversions but the problem is is this time, they just brought us a bigger punch bowl it truly is different this time with rates dropping, long ends dropping faster. Normally, curve inversions are because rates are going up in the short end leads. Listen, we can all talk about it until were blue in the face, but we can postpone the discussion because it never closed inverted. Back to you. I like your drawings there. Very nice. Conventional wisdom says cord cutting is here to stay, but our next guest says the worst of the cord cutting may be over its been a wild week, too, for big swings on the dow. Weve got advice on how to deal with volatility coming up on power lunch. Traditional tv companies, cable, that is, lost more than 1. 2 million subscribers in the Second Quarter and the rate of subscriber losses in the u. S. Paid tv industry has accelerated over the past few years as illustrated on that graphic. Despite the trends looking grim, Moffatt Nathanson out with a new note today saying that things could get better from here joining us now on the cnbc newslinne news line is Craig Moffatt good to hear from you u. Lets be clear here, youre not saying that cord cutting is over or ending, but just maybe, maybe, the pace of it will slow. Why do you say that . Because thats right. Tyler. There are a number of let me, somewhat id owe sin cattic factors that could lead to at least some moderation in the rate of decline and again, as you said, what were talking about here is just the pace of decline. Not whether or not cord cutting is continuing and whether or not the trends will generally stay in the same direction. But first, you have remember, the cable industry is losing subscribers at about 2. 5 , but the satellite industry is losing subscribers four times faster. And youre starting to see signs that at least for the satellite industry, things may be bottoming out. Now it looks like directv will continue to be bad and maybe even get worse but the worst seems to be passing for dish network and again, not saying theyre not still declining. They are, but they are starting to decline at a slower rate. Is this because the people who were inclined to cut the cord, whether its satellite or cable, that High Percentage of them may have already done so . Well, there are a couple of factors here one is is for satellite, yes it may be that what you were seeing was in part a number of relatively fickle subscribers had been attracted by shortterm promotions and are running off its also the case as satellite loses more and more subscribers, its more and more rural and has fewer options and therefore gets stickier all were talking about is is relatively modest changes here on the margin. If youre a cable programmer an espn or cnbc, i would think there are ways you can u, if you have loyal audience as for example, we do, and many do. There are ways you can insulate against cord utting. Raise rates if your viewership is maintained. You can blunt the fact of the falling number of subscribers. If you are however a cable company, a come cacast, our par kai charter, for example, what are your options to combat this loss of subscribers . You charge more for broad band or find different Revenue Streams to derive from pay per view how do you blunt it . Thats an interesting question i think for the Cable Operators then well come back to the programmers in a second. For the Cable Operators, whats interesting is they dont actually care that much anymore if you cut the cord because the truth is video is not terribly procfit bable for them Cable Companies are not media companies. Theyre infrastructure providers. And its a bit like saying were in the transition from gasoline powered cars to electric cars and therefore were not going to need roads mim right . The a non seq. Wii tor these guys arent in the car business theyre in the road business and you need a road either way. The b Cable Companies are going to be fine in my experience over the last year or so, cable investors have gone from being nervous about video cord cutting to being comfortable about it to actually hoping video cord cutting is faster because it accelerates Margin Expansion as a b cable company. So its been a real evolution. Interesting then you were going to transition very quickly to the program providers. Whether its disney or nbc universal. Whomever thats right and thats a very different story i think youre seeing the world divide into two camps. The camp like yourselves at cnbc or you mentioned espn. The Live Programming that needs to be consumed live is staying within the think whats really g and whats driving cord cutting is that the entertainment only customer who isnt interested in sports, is defecting entirely to subscription video on demand, things like netflix and increasingly disney plus and that sort of thing that is very threatening for entertainment oriented Cable Networks less threatening for sports and news related. And live news okay we have to leave it there. Thank you for your insights. Always good to hear your voice lets do some more live news. Yeah. Its what dweo. Well be right back after this with more power lunch. Welcome back its been a crazy week on wall street many investors have feeling anxious about their portfolios invest in you, ready set grow as part of our partnership with acorns greg is a Financial Advisor and president of bona fide wealth. Tell us how people can handle their anxiety. Give me some strategy, doug. Panic and go all in no, letss zoom out on all the charts right . Quadruple in the u. S. Market in the last ten years, so if we zoom out well get better context of really how we should base our feelings. The things we can do if youre feeling nervous, how about raising cash liquidity is the best blanket i know is. Where do you raise that cash from should you be selling bonds right now or would that be the wrong thing to do . Might not be the wrong thing to do. You want to see if it fittings inside your overall Financial Plan if you dont have a plan this could be a call to action to go get yourself a plan. If you are looking for places to raise cash, take a look at cash flow where are you spending your money . Now, this is critical, its foundational i know its not fun to go back and look at 12 months of expenses, but go do that and see exactly where your cash is going and in short order you might be able to come up with that cash that youre looking for. Again, that safety blanket of 3, 4, 5 even up to 12 months of Living Expenses will go a long way if we hit a recession. Yeah. Its the best if you are of a mind i think a lot of people who prune their port foal yportfolios alse like this and maybe theyve gotten out of skew they forget to look at the tax consequences ouchb u oft often of the sales maybe if youre doing the pruning its good to do it on a 401 k or an ira retirement accounts are a place to go look so you dont realize Capital Gains on your assets youre going to be want to be mindful of the gains that they have but are there losses to count against those gains. Biggest thing people should not do panic panic okay i thought it might be something in that vein thank you very much. For more from invest in you visit cnbc. Com slash invest in you. Well be right back. You should be mad at airports. Excuse me, where is gate 87 . You should be mad at nonseasoned travelers. And they took my toothpaste away. And you should be mad at people who take unnecessary risks. How dare you, hes my emotional support snake. But youre not mad, because you have e trade, whose tech helps you understand the risk and reward potential on an options trade its a paste. Its not liquid or a gel. And even explore whatif scenarios. Wheres gate 87 . Dont get mad. Get e trade and start trading today. Could you email me the part great about geicon, tim. Making it easy to switch and save hundreds . Oh yeah, sure. Um. You dont know my name, do you . laughs nervously of course i know your name. I just get you mixed up with the other guy. Whats his name . Whats your name . Switch to geico®. You could save 15 or more on car insurance. Could you just tell me . I want this to be over. Richest car party of the year and who will be there but our own robert frank hi, robert hey, well, you know, in the past this was always about vintage classic cars but now theyre using it to launch their future and i want to tell you about two of the cars launched this afternoon the first one launched by bugati its a 10 million car theyre only making ten of them and this car sold out before it was even unveiled just moments ago. Ferrari of course one of the big names here is unvairling this. This is their first hybrid car and when i talked to the Car Companies and the collectors here basically asking them about the global slowdown they say basically you know, spending at the top spending for all consumers is very strong and despite all these new cars coming on the market there is no slowing of demand either in asia or the u. S so lots of optimism. Lots of sunshine and lots of ferraris here in pebble beach. Thats why theyre feeling so optimistic hard to be too upset some very complicated names to pronounce congratulations. Thank you, sir. And thanks for watching power lunch today. The closing bell starts right now. Welcome to the closing bell. At the General Electric post where that stock is almost entirely wiped out yesterdays losses surging 9 right now. The dow up 259 points with 59 minutes to go. Weve got everything you need to know to end this volatile week we certainly do im will fred frost. Lets take a look at what is driving the action stimulus from china and germany. Two countries who weekday has sparked a global selloff during the course of this week. Bank stocks in particular a lift and renewed ho