Transcripts For CNBC Power Lunch 20240712

Will be fought in the swing states of course were going to take you to the mustwin county in michigan. Critical state and a county that could tell the story and later, sec chair jay clayton warns Corporate America about a heightened risk for Cyber Attacks. Hell tell us whats keeping him up at night. As power lunch starts right now. Hi, at thisltyler, hi, every tech is lagging again and as the hours roll on, its getting worse. Lets go to bob pisani for more details. Whats going on is theres a little bit of a rotation here. Stimulus is coming back. Some are investing in the idea theres going to be stimulus however, its coming at the cost of Big Cap Technology and all those workfromhome stories, kelly, that worked so well three or four months ago amazon, thats a sixweek low for amazon right now apples at probably a fiveweek low, microsoft, facebook, nvidia, also on the down side. Its the same with those other stayathome, the not mega caps but the stocks that did really, really well at the stayathome story, the docusign, the zoom video. What are they doing . Theyre playing the quasi reowing plare reopening play gap and tapestry have been up, small caps have been outperforming. What does it suggest stimulus possibilities but you got to sell off some mega cap and workfromhome stocks to deal with it so the bull is still out there maybe the election will be over in time here stimulus talks will resume further central bank support, maybe we get vaccine data in the next few days but theres a lot of bad stuff out there, too. We ho tknow the reopening story reversing. Call it lockdown light no stimulus deal, i dont care what anybody says, theres still no deal out there. If the reopening isnt going so well, we are overestimating 20 21 earnings numbers thats the problem the market had last week. Those numbers may not be right thank you very. Technology stocks, bob just pointed to several of them and they are lagging the Broader Market our next guest says to expect an election and then an injection, which will accelerate that trend. Lets bring in david, chief Investment Officer at City Private Bank we know about the election, david. Whats the injection is it the vaccine or an injection of stimulus or both . Its actually both but the title was really meant to toke us on the vaccine. We just published a piece that really took a look at all of the different vaccines and where they are in phase three trials what we see is sometimes between late november and early january, were going to have the results of all four of these if several of them are efficacio efficacious, there are literally hundreds of millions of doses being produced right now that can be distributed next year that means we could see the end of the pandemic in the end of the second quarter, certainly in the summertime of 2021 we think investors really havent thought about that, we could be seeing that event take place. What are you modelling as the efficiency or effectiveness rate of these injections . Vaccines weve taken a look at three different rates. A rate of 50 or less would be poor something between 50 and 75 would be good, anything above 75 would be excellent were expecting it to be in the middle of the range, meaning that harvard representatives expect it to be around 70 effective, meaning it will prevent the disease or give you a muff mich milder case of coronavirus. Lets keep our fingers crossed and assume your scenario is krcorrect, that we might geta vaccine and stimulus whenever the election is decided. What about a rotation away from the past leaders we started to see some of. Technic of the Technology Companies go down. What could take their place if thats what youre seeing. What youve just been talking about on your program is the rotation is from technology, from those stayathome stocks to those that would do well in the postpandemic era the way we looked at it is covid changed the price of security when it came and will change the price of every security when it comes back the differential between growth and values stocks is at an alltime high in 30 years. Companies like travel, airline, things that will do well section months from now and probably emerging market stocks youll see this resurgence of travel but youll see an enormous resurgence in trade we like banks because banks have done pretty well through this crisis, havent had the losses that people expected and weve seen the Interest Rates go back up the at theyear has gone up 15 basis points over the course of the last three weeks all of these are areas where investors would be wise to rotate from the things that did well under covid to the things that will do well when covid lefs and theres quite a few of them beep think investors should be doing that now in anticipation of the fact that these two things, a vaccine and economic stimulus are both highly likely to occur between now and lets say the end of january quick final question. I have to ask for a fast answer. Does it really matter who wins the election tomorrow . The short term to the market or are all of those opportunities or dangers already priced in, or most of them i would say the economy is going to do well regardless of who wins, but theres going to be a huge difference in trade in the event that Vice President biden wins, trade will become an area of great growth because thats an area that President Donald Trump actually limited and was really focused on and in the event that President Donald Trump wins, youre obviously going to have a more favorable tax environment and regulatory environment. But for investors, and this is critical, it really it matters more that they be invested in the right things in their portfolio. Politically of course, a whole different story. We want our clients to be fully invested we dont want our clients to be holding a lot of cash. The new Economic Cycle will begin in 2021. We need to be very cognizant of that thank you very. Good points there. Appreciate it. Kelly. This morning the final Economic Data point before the election was pretty strong the u. S. Manufacturing index rose to 59. 3, its highest since 201. Joining me is nathan sheets. Nathan, it good to see you first and foremost, lets talk in the rise in covid cases we dont know what tomorrow may bring. Is that increase in cases enough for some kind of action on the stimulus or are there just too many balls in the air right now . So im optimistic about the outlook for stimulus over the next few months at some point. I think the question of whether it happens in the lame duck, there are a number of factors that will shape it certainly the trajectory of cases is going to be a key one and i think the other key factor is whats going on in the economy. And as you said, the recent data have continued to show somewhat more strength than we would have expected, particularly in the good sectors, consumer good expenditures have been very vongavon strong i think thats spilling over into manufacturing more broadly. So all of this is very, very good news. I mean, i was shocked when that number came out this morning because it was already strong. And the fact that it got even stronger, even though in that past month we know that the case count was rising, cases were spreading, was really surprising so that would all, i guess, feel better or sit betterif says if didnt have that concern that covid would sit through the winter and the election tomorrow so if we do see an acceleration in the virus from here, i think almost inevitably its going to take a toll on the economy, while the resilience of spending has been remarkable so far, i just dont think it can go on indefinitely now, that of course raises the big question of where are we headed with the virus. And are the measures in place sufficient or are we going to see now a more nationalized, generalized spread, like theyre seeing in europe, thats going to require broaderbased lockdowns . I would say in that scenario it will hit the economy, but then that in turn also increases the probability that well get stimulus quicker right ironically we have to do worse i guess in order to get that we were speaking last hour with some people who said if it is a blue wave, they dont expect any stimulus bill until after january, seat the new senate, they craft their own package, et cetera but what happens if people feel like we cant wait that long what are the odds that you think a Lame Duck Congress could get at least maybe some small are ta smaller, targeted bills done or is that totally out of the questi question i broadly agree if its a blue sweep, the democrats would strongly prefer to wait until january when they can control the terms of the discussion and have more effect on the outcome. That said, if cases are accelerating, it is going to be harder to wait moreover, if youre in the nonblue way scenario, i think the probability of stimulus would be somewhat higher in the lame duck than in the blue sweep. Put it together, i think there is probably a 50 chance well see stimulus before the end of year that would come during lame duck and another 40 that we get it in january or early february. So those are the probabilities that im thinking of in this area yeah. Its something to keep in mind because if it doesnt go the way that everyone seeps to expect with the blue wave tomorrow but that means that theres more chance we get a stimulus bill before the end of the year, perhaps the market takes that quite nicely theres a lot of conjecture between now and then stick with cnbc tomorrow night for election coverage. It begins at 7 p. M. And, well, it never ends. It going to keep going and going and going. Its going to be an allnighter. Energy up 3 and materials also leading the way higher technology, weve been talking about it one of the laggards you see there along with Communication Services ant discretionaries the sec chairman, jay clayton will be on sounding alarm about increased Cyber Attacks across america. Hell join us after this you can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save hundreds on your wireless bill. Plus, get 300 off when you buy the Samsung Galaxy note20 ultra 5g. Learn more at your local xfinity store today. Welcome back the head of the sec has a stark warning for Corporate America, improve your Cyber Security immediately. Jay clayton joins us alongside bob pisani thanks for joining us, clay we spoke last week and you said Cyber Security concerns were fo foremost on your mind. Are there specific attacks that have occurred recently bring us up to date. Thanks for having me on again. We spoke at the end and i used the term cyber hygiene look, cyber risks have not gone away with the unfortunate unforesceneries beieen risks we covid and theyre still there and there more than ever let me put a point on that, bob. We have a Cyber Security and Information Security agency. Its part of dhs just in the month of october theyve issued 30 alerts these alerts are instructive because they go across industries, they go across firm size, they go across consumers and Cyber Security incidents are on the rise. And its something that we all need to ten to Pay Attention to. I know companies are burden in many ways, our registrants are burden in many ways right now but this is one of those things we just cant lose sight of. You put out some very specific warnings in the last couple of months i read one on ransomware and you brought it up to me. Youve seen an increase in the sophistication and number of attacks against brokers and dealers, the financial system, using different kinds of ransomware, which ive talked to your staff, implies theyre getting a lot more sophisticated. Tell us a little more about this is this really a major concern for the Financial Community . Yes, bob, it is a concern its a concern for the Financial Community. Weve seen some stories about Public Hospitals recently and denial of service attacks. Weve seen denial of service attacks in our financial industry fortunately they have not become systemic usually thats because of good information sharing across firms and across the government. One of the things i want to emphasize is that people should reach out. Youre not alone in this if your firm has a denial of service attack, reach out to the sec, reach out to the banking regulators, we coordinate. We have been able to share that information quickly and make sure that other firms patch. Patching is extremely important. If you look at the web site that i mentioned, youll see that many common many, bob, Common Software systems require constant patching. People need to continue to patch. I cant emphasize enough that cyber hygiene helps us all mr. Chair, its kelly here. Im curious if this warning that youre delivering come on election eve, if that timing is just a coincidence and also since we saw the attacks on the new Zealand Stock Exchange earlier this year, would you include our stock exchanges in this warning as potentially at risk well, kelly, good questions look, any time that theres general uncertainty and i dont know, i think the covid situation is probably more so than any particular election in that way, but lets say any time there is uncertainty, threat actors generally increase their activity was this planned that way . No is it serendipitous that were talking about it today i think so to your very good question about infrastructure, clearinghouses and embasxchanges and the like,s we do focus on those they have a specific regime through our sci, these 40 or so entities through the united states, were in Constant Contact with them and they do cooperate with each other. As you point out, if you were going to pick a target, you would want to pick a Critical Infrastructure target. Clayton, what should you do if you are the victim of a rans ransomware attack. Say youre the ceo of a Small Company or youre an individual what do you do like i said, on the individual level, use multilevel password protection. Transition to businesses, first thing do you is you have good backup systems you have multilevel backup systems. Very sophisticated attacks actually attack your backup system you need to be cognizant of that and think about that then if, unfortunately, you are subject to an effective dial service attack, reach out to law enforcement, reach out to us we can help you with our experience and we can get the information around so that it doesnt get around the rest of the system but dont pay it, right well, im never into that kind of thing. I mean, pay let me put it this way paying only asks for you to pay again. All right sec chairman jay clayton, thank you very much for your time today. Bob, thank you bob pisani and kelly as well we are just a day away did you know this . Were a day away from the president ial election. Joe biden leads most of the National Polls but as covid cases arrive, where does that leave the longawaited stimulus from congress . Plus emerging markets. The etm turning positive for the year and one portfolio is going ll in on the group. Hel explain why when power lunch comes right back keeping your oysters growing while keeping your business growing has you swamped. you need to hire i need indeed indeed you do. The moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base so you can start hiring right away. Claim your seventyfivedollar credit when you post your first job at indeed. Com promo but before we sign i gotta ask. Sure, anything. We searched you online and maybe you can explain this . I cant believe that garbage is still coming in. That is so false frustrated with your Online Search results . Call reputation defender today to join tens of thousands whove improved their online reputation. Get your free reputation report card at reputationdefender. Com or call 18778668555. See yourself. Welcome back to the mirror. And know youre not alone. Because this. Come on jesse, one more . Is a reflection of an unstoppable community. In the mirror. Welcome back to power lunch. Im seema mody check out the emerging markets turning positive for the year today. China, which accounts for more than 40 of the emerging market etf is a hot button issue, no matter who wins the white house. Lets talk about it with the trading nation team. Ari and chad chad, just one day ahead of the election and youve turned bullish on emerging markets from zero to overweight tell us why you think the election outcome could be a good thing for this specific sector so we are overweight this sector for the first time in three years. The reality is is the big picture is that 85 of the global population is domiciled in the emerging markets with less that be 50 of global gdp we see the emerging markets as better relative value as well as growth and as we go into 2021 in the later half, we think as covid passes, Global Growth will reaction sell ratr reaccelerate and youll see Commodity Prices go higher and will benefit emerging markets. So were taking a broughtader exposure with the emerging market this is not based on which candidate will win the election. We think that Global Growth over 2021 will benefit the emerging markets overall. Ari, weve seen an impressive rebound in chinas Economic Data over the last two weeks. Is that reflected in chinese stocks so far . They are, yeah. This is one where the charts are aligned with chads call the reason why is that emerging markets really have been a story on china tech, which has become a much bigger part of that emerging markets index versus the more commodities exposure in the index 15 years ago one etf were bullish on is the china net etf. Its shown strength on the pullback and its breaking out versus the emerging market index, een the chart im showing shows the excess returns versus the bench dls ma benchmark. So this is whats contributing to it. The final point is just how broadly strong the strength has been as well ten cent, alibaba, ticker yy i could go on with that. When you see that type of broad base strength, when its a thematic like that, it becomes one of our ideas thank you for joining us today. For more trading nation head to our web site and follow us on twitter. Still ahead on power lunch, it your mon its your money, your vote the big day is nearly here well speak to the director of the center for politics about what to expect and why biden is pulling in billionaire donors and looking for an edge on the election steve grasso will lay out which names to buy based on who wins the white house. Its all coming pup donup dont go anywhere. Now a word from our sponsor many traders like to watch technical patterns one of the popular ones is called the golden across where the 50day moving average moves up through the twoday moving average. It can be an effective spot for a ocorstk etf in an up trend. As business moves forward, were all changing the way things get done. Like how we redefine collaboration. How we come up with new ways to serve our customers. And deliver our products. But no matter how things change, one thing never will. You can rely on the people and the network of at t. To help keep your business connected. Welcome back, everybody. Here is your cnbc news update at this hour. In france, another 52,000 cases of covid19 confirmed today. That is a new record for the country, suggesting the lockdown put in place on friday has yet to produce its first effects british Prime Minister Boris Johnson defending his decision to impose a Second National lockdown 40 days after the governments scientific advisers recommended such a move. Johnson saying it was right to try local measures before enacting sweeping restrictions ball motimore ravens quartec marlin humphries asays hes has the coronavirus. The Green Bay Packers player also has an infected and Cleveland Browns are Holding Meetings today after a player says he has covid19 symptoms. Kelly, barks to yck to you. Them like everyone else trying to figure out what to do when you get covid and have to keep going what an odd election eve day this is look like in the stock market you have the nasdaq down 30 points, twitter is the worst performer in the s p 500, down 5 the s p up 26 points, the dow is up 1. 3 or 336, with Strong Performance from names like caterpillar today, from certain parts of the retail complex, oil has turned around mid session. They say theres a value over growth play in the market today. The question, ty, is whether to read into that anything tomorros outcome . Maybe we wont know soon enough but we are hours away from leelection day weve already seen record turnout and mailins Vice President biden in early polls has a 10 lead but in some of the key swing states, that race is a lot tighter. Bitter lessons from four years ago, larry sabato. Let begin at the end i want to hear you give me your predictions for the presidency, the senate and the house of representatives. Then well work our way back sure. Presidency, we have joe biden at 321, you need 270 to win donald trump at 217 and i should tell you that the vast majority of the reactions weve had to this release today is that we have undershot bidens total by quite a bit, though im very comfortable to have undershot it on the senate, we see it as 50 democrats to 48 republicans with two up in the air because we think both of the georgia seats, both seats are up, will probably go to runoff in early january. They require 50 plus one. It doesnt look like any of the candidates will get 50 plus one. In the house we see not only Democrats Holding the house but gaining somewhere around ten seats. So as we look at that prediction of 320 i think you said and change, how does biden get there . What states is he able to flip what are the ones he must hold on to and what about florida yes we have florida in trumps column i think its a total coin toss could easily go to biden we put it in trumps column because democrats have done very poorly there in the last few years and even with the polls looking like democrats will win, as in 2016 and 2018, the republican won so we think its a decent bet at least that trump will carry florida. We also kept texas in trumps column im sure you see the latest spate of polls in the last 48, 72 hours that have indicated a total tie, occasionally biden up by a point. We think texas is still republican enough so that even though its very close, which is amazing for texas, we think trump will eke that out. The latest polls in arizona have it closing up to a total tie there are going to be some very close states, but all you have to do is get to 270 and beyond and youre president elect the calls that surprise me there are North Carolina and georgia. Georgia hasnt voted democratic for a long, long time. What are you seeing there behind the numbers and then as an overall matter, how confident are you in your prediction of a biden win . Of a biden win, im pretty confident. Thats not to say trump cant pull it out there. Our pathways to 270 for him, including a large unregistered turnout, that is trump people coming out of the woodwork, as happened in 2016 in key states like wisconsin and michigan and pennsylvania, much like the last time as far as georgias concerned, a whole series of polls have had biden up there, but also we had an early glimpse at this in 2018 when democrats came extremely close to carrying the governorship with an africanamerican woman you know, that would have been unheard of in the old georgia, the last democrat to carry it, youre correct, was bill clinton in 1992. But states change. Your virginia went from strongly republican to strongly democrat. Colorados done the same thing some states have moved in the opposite direction to the republicans so it happens. What about ohio it has been a bellwether, a tell tale state for decades you have ohio going to mr. Trump. Yes well, youre correct ohio last failed to produce the winner when jfk ran against nixon and jfk won. Also, no republican has ever been elected president or reelected unless they carried ohio were keeping it there because trump won in a landslide in 2016 and while he clearly has lost some support and ohio will be closer, maybe much closer than it was in 2016, i think you have to give him an edge there and weve done the same in iowa where it was a near landslide for trump the last time. All right, larry. Great to see you as always fantastic work check out the center for poll tex a politics and the chrrystal ball well all be watching tomorrow night. Kelly . Let take you to one of key states now Brian Sullivan brings him and us to clint, michigan layeries larrys for gotten u poll tex than ill ef know what do i know except the eyeball poll guys. Were in belmont, michigan anecdotally, the eyeball poll is at about 50 50 in terms of signage. Trumps got the advantage in terms of bumper stickers and home signs in all of seven or eight states that weve gone to but the tv ads, every commercial break is three ads, generally two for biden, one for trump he has outspent trump 98 million to 28 million in michigan as of this morning every commercial break, guys, the ads. Can you see early voting, you talked about it. Its almost double in michigan talked to a bunch of these folks earlier, some of them waiting in line for an hour i can assure you its cold, its windy, got a lot of firsttime voters out here. They are not going to be denied their chance to put their vote in got a mom with her son in college, first time. I expect larry very much i just wonder if its going to be closer than people think and thats just from literally just driving around eyeballing some of these key counties. Yeah, no, i mean thats what were all wondering, brian were wondering if the polls are going to be as wrong as they were in 2016 or if all the changes and differences can be more confident in those projections this time. The other thing is we might not know for a while youre in one of the states thats not going to count mailin ballots until the polls close at 8 00 tomorrow evening, right . Yes theyre processing them. Theyre sorting them and getting them ready but the county cant stop until tomorrow. Trump only won michigan by several thousands votes. Obama won by over 100,000. We all hope for a clean election and a clean outcome. Maybe know tomorrow night. When you look at the numbers and you dig into the math, county by county, some of the rules, it just seems like this could be a market event if it stretches on for a while, it could be something that were not sure of as of midnight tomorrow night or early in the morning on wednesday but we all hope for a clean election, whatever the outcome may be, thats a fair statement. From belmont, michigan, im Brian Sullivan, on the road. Road warrior. And its a good point theyre going to try to at least prepare those ballots to process them more quickly this is going to be an Election Night like none other. Breen sulliv Brian Sullivan has been on the road for us all week cnbc will have election coverage all night long, agabegins at 7. Eastern time and goes until the dawn this mornings rally has faded. Tech stocks are now the drag on the overall market we do have some sectors that are rallying nicely like industrials, caterpillar, materials, energy. Energy yeah, right. 4 higher. 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Dow is punching back up 400 points now were going to go to the bond market and Rick Santelli two days of tens shows us everything we need were sticking close to the best of the highest yield weve had since joune. You can see 90 basis points with that high close. We have been dabbling around 87 basis points october wasnt a kind month for bund yields. They couldnt keep up with treasury yields and im talking about on the high side because higher yields at least on some level are considered to be an optimistic viewpoint of the economy. If we look at the bdollar index this is the fourth session we may close higher on. Where is the weakness coming from europe in general. Look at the euro dollar, looking to close at the weakest level since the third week of july kelly, back to you rick, thank you very much as the candidates make their final push, so do their supporters were going to look at the big money thats continuing to flow and not just in the president ial race we are also watching the nasdaq, which has been leading declines today, but it just briefly turned higher. It do its down just about a point right now and down about 4 in the past week. No matter where it fluctuates today, tech remains the worst performer, twitter down 5 were back in a couple uber and lyft are like every big guy ive ever brought down. Prop 22 doesnt help their drivers it denies them benefits. 22 doesnt help women. It actually weakens Sexual Harassment laws, which are meant to protect them. Uber and lyft arent even required to investigate Sexual Harassment claims. I agree with the la times no on 22. Uber and lyft want all the power. So, show them the real power is you. Vote no on prop 22. Record amounts of cash pouring in before election day joe biden for example, has 800 bundlers among them, some of those people who each raised 100,000 for his campaign the Milwaukee Bucks owner raised 3 million for biden else not just the president ial election huge money behind senate and congressional candidates, too. Ylan moi has that side of the story. 2020 is going to go down as the most expensive election cycle in history the center for responsive politics estimates it will total 14 billion. Thats almost evenly submit between the president ial election and the down ballot house and senate races business groups alone donated 4. 6 billion thats about a billion more than they gave back in 2016 and the Top Industries that have donated include securities and investment firms, thats wall street attorneys, education and real estate n. A change from the last election most of that money has gone toward democrats with the exception of real estate, which has remained solidly republican. But it is not just the white house that is driving all of those dollars. The senate races are also smashing records the battle in North Carolina between gop senator thom tillis and democratic Cal Cunningham have set a new milestone of 285 million. Meanwhile other big money matchups are happening in iowa, south carolina, and arizona. All of those racing topping 200 million. Guys, what we are seeing is that all this money flooding in is a proxy, another sign of a historic level of engage meant that we are seeing in this election just all the way down the ballot kelly . Makes sense ylan, thank you very much very much with the latest for us in washington. No matter who wins tom you may want to make some money the next four years. Up next we will get you one biden stock and one trump stock so your bases are covered. Tch t forget, you can always waor listen to us live on the go on the cnbc app power lunch is back after this infinite what ifs . And contingency plans. Creating funds that help target gaps in client portfolios. Tap untapped potential. And strengthen confidence in you. Flexshares. Powered by over a century of investment expertise before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. For a prospectus containing this information. Witenergyng, and change came to every part of our universe. Seismic or small, it continues. Change is all around us. Shaped by technology and human ingenuity, we can make it work for you and your business. Before money, people tools, cattle, grain, even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. Welcome back just one full day of trading left before the polls close tomorrow night how should investors be positioned heading into the big event . Joining us now with what to buy if either candidate wins is fast moneys steven grasso. Good see you i think you have got one biden stock and one trump stock. Lets start with the consensus, which is a biden win what do you buy. You have to go with the value play, the rotation out of growth into value knee jerk reaction is alternative Energy Stocks are going to run think solar, think tan, thats the etf, tan then you can get into the diversified chemical space i have been in trinseo tse. It is up 30 recently. I think it has more to go. And most of its earnings are european based why is that a good thing because Corporate Tax rates under a biden plan are going to increase so that offsets some of the risk you would get from buying one of those value plays. Steve, it is interesting you mention that i want to circle this back to what we are seeing in the market today. You said if biden wins you want to pick value stocks again, our association might be if President Trump wins you pick value stocks in manufacturing and all of these thing kinds of things do you think thats whats going on in the market today where we are seeing value outperform growth considerly and twitter more than 5 , worse than the s p . Into i think th. I think, to your point, the reflation trade is going to kick off the value play in a biden win meaning there is going to be an absurd amount of spending they are talking about 10 trillion in spending bills what does that mean . Rates are going higher if rates go higher, you dont want to buy tech stocks. Under a trump win you want the same tech stocks that have gotten us this far in a biden win rates should be rising aggressively. Thats what we have teen in the tenyear exactly what we were talking about last hour. Another counterintuitive stock pick, steve. In the case of a trump win you are saying buy app he will why . First of all, both republicans and democrats have wanted to break up these socalled monopolies, maybe i should take out the word socalled if you look at what happened with the rotation from tech the growth, what has gotten hit the hardest . Apple sold off the most. Apple sold off 25 recently. In theory, that should rally the hardest. Now, remember, kelly, rates rising, number one rule in investing, dont buy Growth Stocks because they cant pass along that commodity like costs to the end client. So it is a depreciating asset on what they are selling. Sow you want to be in value. You want to be chemicals you want to be in paper, industrials, manufacturers thats the first knee jerk thing is you have got to remember also kelly the major head wind, cap gains taxes are going to double under a president biden. Right into that means if you have gains in all of these technology plays you want to sell them now, hold on to your laggards and buy them more aggressively going into a biden campaign. Makes sense, steve. Thank you. One stock to buy, trinseo, if you think biden is going to win. Apple if you think trump is going to win you have one more day to mick your bets. Thats a good playbook steve just laid out there with good reasoning. The dow rallied in the past hour by 180 points. We were down a little bit below 200 when we began. The s p is higher by 1 . The nasdaq is the laggard as Technology Shares move lower kelly . And value overgrowth. That apparently is the biden play in the market today thanks for watching power lunch, everyone cant wait to see you tomorrow closing bell starts right now. Good afternoon, everyone. Welcome to the closing bell. Im wilfred frost along with Sarah Huckabee sanders stocks kicking off election week on a high note gaining background after a brutal end to october though offtheir best levels of the session. The major averages are mostly higher though the nasdaq is lagging entering the final hour of trade investors and the entire world are awaiting tomorrows election result the latest nbc news wall street journal poll has have been biden up mor