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Revenues for 2020 are 7. 7 higher than 2019 instead of using a heavy handed government putting long term restrictions on people, we decided to trust the people that they would be safe and secure and opened our economy if other states would like to see that type of economic recovery, maybe they should address the way they their states are being governed. I know the Federal Reserve is looking in ways of broadening the main Street Lending program, which i think we all realize need to be broadened theres some yaareas id like t see us take a look at and one of those industries that is interested in main Street Lending is specialized Consumer Finance firms which are nonbanks that purchase credit card receivables from card securing banks which enables consumers with sub prime credit to access a credit card which is some of the most vulnerable in our society right now. The ebitda rieequirements preve them from obtaining a loan would you consider modifying to allow the firms to access this program . Id have to look at that. Ebitda is a very standard cash flow measure if youre going to make a cash flow loan in our markets, youre going to look at ebitda. The alternative is something asset base ebased. I dont know these companies to know exactly im talking about ill take a look ill make sure our staff engages with some of yours another issue is back to the ppp program is the forgiveness of the ppp loan s cumbersome and its putting some of the banks that i braugought up early yeaia situation they are keeping the loans on the books longer than they intended to is there something we can do to streamline this Forgiveness Program so its less cumbersome so we can start getting loans off the books to open it up to make other more traditional Business Loans we have tried to streamline the process for the smaller loans, as you outlined i know there have some proposals in congress and part committees on that making sure we have the right balance. I assume with that youd be willing, if Congress Took some action there to work with us on that thank you both i know its been challenging times p pi times. I think the administration has responded well considering the severity of this crisis. I think we keep on track and keep pushing forward and we can get through this and make our economy as strong as it was, if not stronger i yields back. Thank you i recognize the gentleman from texas mr. Gonzalez for five minutes. Thank you i represent many Small Businesses in my district. Many whom are first and Second Generation americans who work hard to achieve the american dream. As the result of covid19 and subsequent travel shutdowns, family owns businesses are facing an unimaginable economic crisis with no ability to basacs a lifeline through main Street Lending program. Despate repeat requests from congress, including my own conditions did not warrant chan changes to allowing lending to asset based borrowers. Theres nothing else for these people to turn to. I want to make sure i understand your message to them right now we have money on the table. Programs that are not being used and programs that are being used but not quite compliant with the cares and the programs that have been drained funding because they worked. Your position is be businesses should be allowed to fail and hard working americans should lose their livelihoods and youll do nothing to help them you want to carefully follow the law, right, on the cares act we pass eed cares act and the extent youre not in compliance with the programs included there, its time to get that done failure to do so would not constitute following the law you either are or youre not complying with the law you do not have programs that comply with the cares act distributing of funding. We may be in a crisis now but im sure you can imagine what will happen after the crisis when we start picking up the pieces and scrutinizing the actions of your agencies right now were using the powers given to you for this purpose. Businesses need a lifeline they are not asking for a bail out. It creates the liquidsty that markets need and recognize that if all commercial Properties Start defaulting, were looking at another wave of a crisis, arent we . What are we doing to prepare now and help them and do the work now . I would say i think we are following the law. Let me just be clear on that second thing i would say is that we want to help the types of businesses that youre talking about. In many cases they need grants and not loans. As part of additional sba appropriations, we very much support long term loans. Particularly for the types of businesses that youre focused on what specific loans do you have available for folks like these small hoteliers . What i said was again, we support additional money to small hotels thats what they need. Additional sba loans are something that we have looked at as well as ppp loans they dont fit in many of the cases these small hotels do not fit into main street because they already have other indebtedness and many cases they are not allowed to take additional loans are too levered to qualify the small ones that do fit in, youre saying that sba has a program for them what i said is part of additional legislation, the sba economy has proposed additional money, long term money for Small Businesses as part of a new program. Thats something that we have looked at and we would support many of the small hotels that youre talk about dont have any revenues those hotels would qualify for additional ppp loans theres over 130 billion thats been appropriated by congress that we need authorization to use. That would be the best solution for them thank you i just ask that we stay cognizant of these folks they are good americans. They are hard working. They deserve our attention thank you very much. Thank you very much i now recognize the gentleman from tennessee for five minutes. Thank you i like to thank the witnesses for your leadership during this crisis i think you both displayed tremendous leadership. Secretary mnu yn chchin we talkd about the ppp and the Ranking Member talked about the 51 million jobs its estimated that it saved the caveat, maybe 12 million rural jobs in Rural Communities that it saved. Following up was asked a few moments ago as it relates to the forgiveness. What i heard from Small Businesses throughout my district, throughout the state of tennessee is were very thankful about ppp it literally saved our business. There is the concern about the complexity of the forgiveness. Have you considered administratively forgiving certain loans, say loans of 150,000 or less through administrative action . We have considered that we dont think we have the authorization to do that in the context of the law we tried the make it very simple for Small Businesses but were there were some proposals out of congress that said we should forgive those loans and we need congressional action for your interpretation is you dont have the authority to administratively forgive those certain loans, the smaller loans. Im using 150,000 or less. You dont have the authority to do that . We think we have the obligation to get the documents, have them fill out what an easy form and have the ability to audit those. Theres been some fraud and were working with our ig on that that we dont think it would be appropriate. If i can, we heard from people, all of us have about how ppp saved their businesses, kept their employees on the payroll one criticism, you all deserve credit for crafting that i do think frankly Congress Deserves credit that they acted swiftly and in a bipartisan nature the one criticism ive heard from businesses, specifically in my district is that they literally could not compete, some, with the enhanced unemployment benefit it was set too high. Maybe in an area like tennessee or mississippi or arkansas, maybe it was generous in other states, maybe its not i dont want to get ahead of the negotiations but if there is additional enhanced unemployment benefit in the next package, is there way to somehow tie that to locality at the time, we knew there were certain places that would be too high and certain be too low. We think the fair way of doing it was one number across the board. As part of executive action hes authorized that up go forward with 400. 300 if the stay doesnt contribute we have proposed as part of additional legislation having it at Something Like 75 of wage replacement. Would that be uniform across all 50 states or based on locality and ideally it would be each state would take some time for them to implement that technology it would be capped on 75 of previous wages thank you one more question. Im going to touch on something that i dont think has been asked today. Thats on phase one of our agreement with china that was executed earlier in the year obviously, we know we faced a pandemic are you right now confident that china can meet its commitment to purchase 36. 5 billion in agriculture products this year i believe they are on track for that were monitoring that closely. Thank you i yield back my remaining time i yields five minutes to the gentleman from florida thank you i would like to thank the cocha cochair id like to welcome the gentleman to the meeting its been very good hearing you all speak this morning representati representati representative taylor join me in a letter to both of you on the commercial Real Estate Market. I heard some of the talk earlier. It continues to be hit hard due to the economic shutdown that has resorted in store closing and halted travel. The koe covid19 pandemic turned commercial Real Estate Financial market upside down soon i was joined by representative taylor and over 100 of our colleagues Requests Department of treasury and Federal Reserve you are gently consider targeting economic support to bridge the temporary liquidity deficiencies facing commercial real estate created by the unforeseen crisis we believe that this is still due to Federal Reserve has the ability to bridge the gap to various facilities to help many businesses survive the economic disruption the Federal Reserve released an update on the main Street Lending program stating that condition do not warrant checking of this to allow it do yall care to comment on that first, lets me say chair powell and i both agree with you that the commercial Real Estate Market has an issue. I just want to clarify, when people talk about asset based lending, they traditionally dont include real estate in that the Real Estate Market is its own market so that wouldnt necessarily be part of an asset based program. There are structural problems. I know some people in the house tried to work on a proposal of preferred equity so that it could be going below the existing but chair powell and i will continue to work on this. Its an issue. We dont have a solution we wish we did do chairman powell want to comment too . I know i was on call with him several weeks ago about this issue. Yes both of us are very familiar with the letter you sent and have studied it carefully and have really looked hard at how we can reach the problem were talking about. A lot of the problem just isnt with commercial Mortgage Backed securities those loans contain a provision that says you cant incur additional debt. The secretary referred to way to get around that. That wouldnt involve the fed. That would be something for legislation. We do understand and appreciate this is a significant problem in the economy and can keep looking for solutions. We dont really have a solution with the tools that we have. I understand we dont have a solution when we turn back about 130 billion in ppp funds and then you find out all of these people that are suffering tremendously and they have coming up to releasing Something Like a large group of employees that depend on them. I think have the opportunity to talk to the chair, congresswoman waters about some things that were happening in her area out in california. Im glad that you all are considering them and we need legislation. I dont know how quickly we can get legislation through. I know the senate still hasnt passed anything. I dont have much time left. Im glad that you all continue to keep that at the fore front because a lot of these employees are just every day people that need help. With that, i yield back. Thank you i now recognize mr. Hollingsworth for five minutes good afternoon. I know its something you and i discussed at length privately, public, at these hearings. Im sure it has a lot of discussion and research underpinning i really appreciate you doing that i think its going to be a positive for the fed an for the American Economy Going Forward specifically, i want to turn to the temporary exclusion of treasuries and deposit at Federal Reserve banks from the slr. I know it was down through march of 2021 on some concerns that increased reserves during this period of time didnt want to count against them during sor. It was not extended to nor does it flow through the size indicator. I was wondering why that was the case an is there any further discussion or dialogue about extending it through the i understand cater i have to check on that im not aware of any of those discussions. Great if you wouldnt mind checking on it i think thats important to make sure we see that flow through given in the fourth quarter, i think many of our largest institutions are going to begin to see those impacts onto you secretary mnuchin the proposal is troubling. I think you said there doesnt feel like theres a good solution can you talk about why that isnt a good solution . Well, there are ideally, there would be rather lend debt and not to preferred equity. Havaluation issues, how do yu get paid back issues all of the above. One of the things i want to emphasize is theres real dispress madi distress in the community, theres real challenges. The longer we talk about solutions that arent real solutions, the longer it will take to get to a fix that will provide a real solution for those that are hurting across my district and my state. Thank you. I appreciate your clarity on that with that i yields back. Thank you i now recognize the jengentle l from michigan, ms. Tlaib thank you one of the questions i want to review with both of you. Chairman powell and secretary, what do you think your primary role is with the pandemic . Ill start with you. We are here to help the American People. Stabilize the economy thats a big part of you. How about you d thats correct. To operationalize. Prevent an economic collapse, right . For starters. I hope so too im going to start with you chairman powell. Every time ive asked you regarding state and local governments, you have insisted theres nothing the fed can do for states and cities in distress you created a Municipal Liquidity on my left to do that. The program is pretty restrictive. Is it true only the state of illinois has applied we have done two loans and that facility has resulted in 250 billion of borrowing in the private sector where there was none taking place before the facility was announced do you think state and local government going bankrupt would create instability in our economy . I think thats an issue thats outside my baliwick you dont think Social Security integral for states to go bankrupts states cant go bankrupt but cities can do you think it was an impact in the economy there yes i think so too. My district really hasnt been fitted from the program. One of the things i want to point out to you is you dont have to lend with penalty rates to state and local governments this regulation you have there able penalty rates, that wasnt created by statute that was created by you all internally its in our regulation and practice why not remove the penalty rate when theres a high end unemployment or when the state and local governments are at risk what that facility has accomplished is its opened up the private market state and local governments are b borrowing in record amounts at record low yields. Only two states apply, correct . Only two states have qualified how many cities. They are borrowing the Public Market in. For what i ins is for corporations the fed supports bonds within a fiveyear maturi maturity do you think corporations in debt are important than local municipality you have it for three years for local government state and local governments generally are not allowed to borrow to finance deficits they are borrowing is for liq d liquidi liquidity. Its a part of the market thats zero to three years thats about liquidity. Thats what we have been willing to lend. Ban lot going on longer term issues our facility is performing its backstop function and its enabled the private market to work well to serve state and local governments. Just looking at what happened in the city of detroit, im really worried that were not being flexible enough. Were not being able to accommodate for state and local governments. You know much of the policies are meant to stabilize the economy. We really have to uplift and make sure the communities are protected. I recommend you check out the bill that i have uplifting our local communities act. I really would appreciate that secretary mnuchin, we have to prevent an economic collapse do you believe another stimulus check could help stabilize the economy . I do. However, you have been on record for not supporting economic package that we passed in may that included another round of stimulus checks for millions of americans that are right now unable to afford their rent can you explain your position because i think the American People are confused. Does the Administration Support another stimulus payment the administration does support another stimulus payment. Youre willing to go ahead and support within the heroes act that payment but push back on what i call let them go bankrupt bill that the senate has proposed let me say i take great pride that the last two bills we did passed with overwhelming bipartisan support we obviously cant pass a bill in the Senate Without bipartisan support. Our job is to continue to work with congress to try to get additional help to the American Public i think you need to be very clear with the senators, really clear that direct payment to individuals is critical to preventing economic collapse in our country. Thank you very much were going to move to the last member who will be able to raise questions. Both of our guests have a hard stop at 12 30. Were going to honor that. Mr. Bud, i recognize you, the gentleman from North Carolina for five minutes thank you, chairwoman and secretary mnuchin. Thanks for being here. Today, less than 1 of the ppp loans nationwide have been processed through the sba forgiveness portal many Small Businesses, these ppp borrowers are waiting to see if treasury or congress be act on some sort of bipartisan forgiveness proposal that we see in the house and senate. The current one, as i understand it, the current process is confusing if a lot of Small Business owners and not what they expected when they first took out the loans the current process is also a real burden on Community Banks and that have a lot less resources than our large banks the time for such a streamline process to be put in place was a long time ago. It was weeks ago due to this delay, the situation with banks and borrowers is getting more and more urgent under your current authority, would you be able to implement a streamline process as outlined in the paycheck protection Small Business forgiveness act id have to look at the specifics of the act and get back to you. I believe the answer is that we dont have the authority to implement it the way it is in the act. Again, i would just say that the forgiveness portal is open were encouraging Small Businesses to apply and were working with sba to make sure they can process those as quickly as possible and provide Small Businesses tools to make it easy for them mr. Secretary, im glad that the portal is open and im asieming itasie i assuming its working. Is there any improvements you can do within your authority we developed an easy form so we tried the make it significantly easier were happy to work on a bipartisan basis with congress if they want to pass legislation that creates blanket authority for forgiveness. Thank you, mr. Secretary. Chairman powell, thanks again for being here at your last appearance before the committee, you stated our Banking System is robust and a source of strength throughout this pandemic. Specifically, you siets cited t unprecedented deposits, the continued ability to lend as evidence of the strengths of the u. S. Bank and the covid19 environment. Now, while Many Industries have understandably needed Government Support and continue operating du during the forced economic shutdown, the Financial System has been a crucial partner for the fed and congress in facilitating relief for businesses and households. I bring this up because i heard the recent actions take been congress and fed, they have called it a bail out for banks my question is, has there been a bail out for banks during covid19 no. I wouldnt say there has been. My office keeps hearing from companies unable to secure short term financing they are using their working capital. They were too large for ppp and dont have access to capital markets. How can the fed use its 133 to provide assistance to these companies . What can the fed do to provide assistance for them . On working capital, we did, in look at the idea of an asset based facility, we did a good deal of work in that sector. We came away thinking it was pretty broadly available im surprised and its not good thing that im hearing that its difficult for some well go back and look at that chairman, is there something i should relay to these midsized businesses that maybe they havent found or theyre not aware of that they should look to for support . Well, we have the main street facility which has three different portals and three different loan products and all companies are welcome to borrow there. We have, growing interest there. Theres the ppp program chairman, do you think there might be a gap between the ppp and the main Street Lending facility where some could get caught we have been looking for gaps we did look at working Capital Finance and did not see a big problem to solve there well go back and take another look at that thank you yields back my tile. Thank you all members have five legislative days within which to submit additional written questions which will be forwarded to the witnesses for their response i ask our witnesses to please respond as promptly as youre able without objection, all members will have five legislative days within which to submit extraneous materials to the chair for inclusion in the record this hearing is adjourned. The fed chair and treasury secretary wrapping up their testimony. The response to pandemic, the topic of conversation with fed chair powell saying the fed is committed to using its tools for as long as it takes. Mr. Powell noting improvement today in parts of the economy, particularly housing and the labor market for reasury the problem is the stalemate on capitol hill over more aid were turn our attention to the markets. Its good to have you with us. Stocks are attempting a bounce today. Were going to debate where your money is likely to go from here with our Investment Committee today. Mike wilson, i want to begin with you because thats our headline of the day where you are saying that the nasdaq 100 sell off is only halfway over. Thanks for having me. Its good to see you i dont know how much the sell off is going to be we never know exactly. This sell off has been ongoing now for a few weeks. The month of september has been pretty rough we have to recognize that august was a bit of a blow off move centered on those Technology Stocks thats where the correction has been the harshest. If youre going to have more of a correction that would make sense, the damage would be greatest there by the way, its a correction in a bull market. We got to extend it. Now we have visible things that people are worried about and just had this meeting with congress around the fiscal, the fiscal stimulus is the big issue. If that doesnt happen or gets delayed, thats going to weigh on equity prices in the short term, for sure the nasdaq 100 right now is down 12 from its high youre talk about the nasdaq 10 going back and testing its 200day moving average were looking at another 13 drown draft if your numbers are right. Youre putting some sense of idea as to how far down we could go from here thats exactly right. Were trying to figure out what the downside could be. That would be the draw down. Thats what you have to look at now is the technicals because its a correction. Thats our only guide at this point. Were still bullish on the recovery were still bullish on stocks going to next year we have to be lons wihonest wit ourselves. Were just retracing back to trend lines. Thats a natural place for it to draw down to if it continues we already took out the 50 day thats your next stop. Lets talk about whats driving this we think something will get done before the lek or after the lek. Theres probably enough gas in the tank to get us through we have the second wave to deal with we dont know what that will look like. Maybe that results in further lockdown and the election. How do you advise people then to think about buying the dip. No one knows where the market will go from here. If we did, wooeds be doing Something Else things could get ugly in technology, what are my viewers supposed to do with that its not just technology. The whole market is correcting yesterday was about the recovery stocks the recovery stocks got hit Hard Technology performed well in that its a broad correction like its been a broad rally. What were advising our clients is were fully invested. We have been buying stuff all along. All were telling folks now is this is natural. This is what you should expect we thought this correction would happen in august if you want to be flat out honest we admit we missed that by a month. Fine now were in it. We dont think were oversold enough were not telling people the try to trade this on the downside. Well be buying Technology Stocks into this sell off. Well be buying all kinds of stocks into this sell off. Be patient here. Lets look for things we want to own into nec year. Lets not worry so much about the next couple of months and take advantage of this dip you always have a gd way of putting things into perspective. Josh brown, you take all of this together and you put it where . I see you adding to crowd strike which youve owned adding some on as mike wilson just said on the way down yeah. Im actually ive been avenue ranling up in crowd strike im looking for stocks that didnt fall and remained under accumulation crowd strike wants higher. I was going to point out i like the fact that mike is using technicals because i really dont think you can look at Something Like a nasdaq correction and make calls on it based on fundamentals because the fundamentals for these companies are not changing if anything, they are only improving and zoom media is great example of why thats a foolish game to try to play. Here is a stock that goes from 480 a share down to 350 and then back up to where it is today. New record high, 490 all of cwhat i described just took place during the month of september and its only september 22nd in 22 days do we think zoom was worth of tens of billions of dollars less and then more in obviously not. I think that game is a technicians game and to answer your question, scott that you posed to mike, ill give you my take, i dont think the average Market Participant should be doing anything like trying to figure out a nasdaq correction ahead of time and how to play it during its not a game for someone who is not in front of their screen all the time and well versed in how to use technicals as support and resistance levels. Not a casual game. Know kus on what your game plan is dont worry about the heat index month. You have no control over it. No one knows any way and try to buy quality. Steph, are you looking the make moves in the market or are you like mike wilson, i think concerned is fair enough word that stocks got ahead of themselves enough that they got some considerable downside perhaps to get right, if you will mike said it. The market doesnt like uncertainty. We do have uncertainty, unfortunately, with the fiscal, with the elections, seasonally this is not a great time for the market or for stocks i think you do want to be patient. Technology is vulnerable the xlk is up 23 year to date but its up 60 from march we no a lot of these stocks, josh just mentioned oom, up 500 on the year look at apple an amd and nvidia. These stocks have had incredible runs they could pull back where i am looking in terms of where i want to be buying and im going to be very patient but lets look at auto, housing, lets look at manufacturing recovering in a v shape manner those are end markets where i think the momentum is going to build into next year there are Technology Stocks who have exposure to those end markets but i also want to own some of those other Companies Like housing and consumer and manufacturing. You want to stay diversified and stay patient mike wilson, youve looked at faang and apple has been in this bear market in its own right its down 15 month to date. Facebook is down 15. Amazon is down 12. 5. These are terrific companies and the market has reflected that they are correcting. In the context of the mood theyve had this year, thats not much pain. Thats fine. Thats good. That means the stocks are probably holding on the their upward trends. I think thats constructive. Those are stocks youll want to own into next year wu think we positively resolving into next year the real winners in terms of percentage change will be those companies that have not yet recovered in the stock market and not seen the earnings rebound because they cant were still recommending barbell of these Great Companies when they come in and they start to reflect the risk of higher rates down the road. Pete, i see you making a lot of moves and being a seller of calls. When it comes the stock, you sold citi as well. Give us the look inside your mind as youre doing all this and why now. In all honesty, im trading options. Options are the trading tool when were looking at the options position were buying it and looking for those opportunities and if we get any spikes off of that, were going to take off part or all of that trade. Last week, some of these things have moved nicely. We decided its time to exit some of these. It doesnt mean im not going to jump back in mike and i are good friends. Hes really smart. Hes been right on have you talked about the areas that have not participated we all watched jpmorgan. The xlf breaks down every time jpmorgan gets over 100, breaks down almost every time when are those going to start to move to the upside i got out of citiand added capital one for a different reason im curious for mikes perspective, are financials an area he thinks can be one of those resilient areas at some point and maybe start to make a move to the upside thats actually sustainable its not just a one or a twoday deal i sure hope so. Thats part of our call. Its long term Interest Rates and the election the election depending on which way it goes could have positive implications for financials or it may result in more onerous regulation that uncertainty is front and center for this particular space. The group is not discounting much of a recovery at this point. Its still one of the cheapest groups out there its not discounting rates moving up. If they were, you would see the stocks performing better the way i think about the Financial Sector is like a call option you have asymasymetric upside theres not a lot of down side i do like the space. Our view is predicated on our view that rates will move up the back end we made that many times and we have a strong view about the recovery were there. Hasnt worked. Its been one of our worst calls this year but were sticking with it. If it doesnt work, does that crush your overall thesis . No, not at all. I think it will become narrower market again if rates dont move up, i would argue that something has gone wrong with the recovery. That means theres a lot of as a rule ner blts vulnerability stock market why cant it mean where the fed is you can continue the move toward a vaccine. The economy can continue the creep in the right direction, which it is now. Its not where anybody wants it to be but its moving in the right direction. The fed is not going anywhere any time soon. You could sconceivably have a much further recovering economy and rates that are still low you could i really believe that the past we had quantitative easing and other recovery periods i would use 2016 as a pretty good proxy its the same set up going into the fall rates are low because of brexit. This time rates are low because of covid as you get through the events and things get resolved, i think the back end will move out if it doesnt, that means the recovery wont be that robust. I think they want rates to steepen. I really do. That will help their cause in getting money supply growth and getting the Banking System moving in the right direction. I think it all fits nicely were still constructive in that viewpoint. Brenda, youve heard everybodys opinion. What do you tell people to do . I think right here and now, we wouldnt disagree with mikes suggestion to have more of a barbell approach i dont think you want to abandon the tech names that have done so well i dont think we want to abandon that trade now we still see theres scarcity of growth and Interest Rates are low. Thats a recipe for that group to continue working here at the same time, eng you want to think about what comes next and have more of a forward looking view in which wasilcase we would recommends owning some of those names more impacted. We have actually been transitioning a bit of exposure into global value as well. Something in our view could have good long term performance if we continue to see a Global Economic recovery play out here. How about that, mike . This idea of going more global than where you are now brenda is doing that and josh and pete and steph have talked about this too what about that idea sgh we were in that camp as well. I dont think were that different brenda we want the buy growth stocks. Were in that camp we think some of the growth stuff got a little over cooked well buy them at better prices. With respect to the global, its the same idea. Rates moving up and the dollar weakening. It will drive capital to other parts of the world we think this is a Global Equity rally and bull market. Its not just in the u. S we think it will continue to br bro broaden out. I lied. I do have one more question. We didnt talk about the election what sort of risk . How should we think about that some 40 some odd days out . The market has been dealing government, the esg type stocks, technology which you could argue would do better under a Biden Administration with a democratic congress, and of course financials have lagged and energy those are two areas the democrats may want to overregulate if you take the view that grabs that outcome, its going to be a close election, then there is opportunity in the areas that have been beaten up and there is probably risk in some of the areas that are now assuming its going to be a blue sweep all i can tell you, scott, i think its going to be real close and thats going to keep the volatility high because i think the selection is going to keep uncertainty high until november 3rd, and maybe beyond, because of mailin votes and it will take a while to count them. Thats Morgan Stanleys mark wilson joining us. Mark, thank you. Weve got some calls for amazon and facebook. Were back in two minutes. We got no free pass. Everything we have, weve earned. The unmistakable lexus is. Get zero percent financing on the 2020 is 300. Experience amazing at your lexus dealer. Were on the halftime report. The dollar hitting its highest levels in more than a month. Im iuorio of Tjm Institutional Services is joining us now technically speaking, jim, where are we going from here, do you think . The 94 level is a huge level and a big Inflection Point weve been stuck in a channel from 92 to 94, and now that weve poked a little above that. Tomorrow if it settles at 94, i think its heading back to 96. This has huge ramifications for a bunch of markets, too. A lot of that nasdaq trade was based on the fact that all kinds of accommodation was being thrown at this market and people were getting out of dollars into relative safety. I think this is a pretty big deal i think this is how it resolved itself when its this big, i do worry about the quick poke about it and the rejection. If it does reject, then i think it goes back to 92 quickly good stuf tnkf,ha you well talk to you soon thats jim iuorio. Final trades ahead who is usaa made for . Its made for this guy a veteran who honorably served and its made for her shes serving now we made it for all branches and all ranks whether they served one tour or made a career of it. We also made usaa for military spouses and their kids usaa is easy to work with and can save you money on auto, home and renters insurance. Become a member today. Get an insurance quote at usaa. Com quote usaa. What youre made of were made for welcome back talk to us ive got melco. This is interesting because the stock has dropped back significantly in just the last five days or so. Theyre buying the october 17 calls. Stock was about 16. 50 at the time it gives you a little time for these to work. Its not going to be a quick expiration my other one was snap. Im right back in snap why am i buying it because theyre buying this weeks dry calls, about 25,000 of them, scott theyve worked this stock continues to go higher i think its going to break out. This is one of those that im trading. As soon as it doubles, im going to at a time least half and then ill hold the rest of it for at least a couple days. Good stuff, pete. We do have a couple interesting calls today. Steph, amazon gets outgraded to perform at bernstein they should have upgraded it back in march, they say. Year to date is 65 . Youve been trimming it, though, and youve been trimming it since about a month ago. Is this like a continuous thing that youre doing . Well yeah, i thought their quarter was flawless there was nothing wrong whatsoever 49 retail sales growth, aws backlog up 65 i dont know how much better it gets from here, though, and i just think a lot of good news is priced in. Its up 65 . It just had a quick 16 decline in the shares. So if it actually pulls back further, this would be on my buy list, but i thought it was prudent to take profits. Brenda, facebook, 300 at oppenheimer today. Its a price target raise. You own facebook we do facebook, if you look within the faang stocks, its one of the more attractive valued companies. Its one Everybody Loves to hate, but with over 3 billion eyeballs on their platform, its something that cant be ignored by advertisers we think the company will continue to do well. Lets do some final trades. Josh brown, you get the first one. Simon property group. In the mid60s i like the risk reward as a trade. I would use 60 as a support level for a stop loss. Were looking at simon today of about 1 . Pete, what do you got for us im seeing some paper out there right now with zillow. I like this name already, so im about to jump on it, but i think this stock goes higher and breaks 100 brenda . I shares. United health i think this is way overdone this is the one you want to buy on weakness. Were digesting what the fed chair had to say along with the treasury secretary talking about the pandemic response. The dow right now is down about 86 points. That does it for us. Thank you so much for watching the exchange starts now. Thank you, scott, and hi, everybody. The chorus is growing louder for congress to pass a stimulus bill as the fed chair powell now says its essential with a court fight looming, is there any chance congress can compromise and push the bill through. Well ask larry kudlow in a couple minutes apple down 20 from its highs. Dont call it a bear market just yet, though. Well look at the trend levels the stock is in danger of breaking cool day logic for

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