Yields we continue to grow lower in stocks. And everything about the q4 playbook begins in the direction for yields. I do not see any fundamental catalyst in front of us for yields to fall. The last several days and certainly in the previous quarter, the equity market is telling you what the playbook should look like, and you think about utilities and in q3, they bolted down 10 , and its not about a safe haven. Utilities are down today alone, and high yielding sectors are not advantageous. The only area of the market i believe you could have a degree of confidence that while rates could stay higher for a sustainable amount of time is the mega caps. We go through the reasoning behind it, whether its the strength of the Balance Sheets or whatever it might be, and i believe a lot of it has to do with positioning. You have seen the nasdaq is slightly higher while the s p is down. Its not coming from financials. Look at financials and they are down two to 3 in the last five days, and target is down 4 in the last five days. Retail is down. Nvidias higher, 6 . S amd is up. Yields are not coming down. Jpmorgan says challenging risk reward remains that way. And equity weakness is finished, not convinced. You have what . Only two times in history has it been negative for the Fourth Quarter, two times. The average return is 4 for the Fourth Quarter. Where you look at where we are at, 4 or 5 , thats number one. And number two, we think this is part of a broader normalization phase. Returns are normalizing for the next three to five years, and yields are going to normalize, and we think that the process has already started. Earnings will be better. Number three, in the Third Quarter, we have been key on that for a long time. We think the big part of the move is over and we are hoping earnings will be even better for the Fourth Quarter to get us to the 50 50. We are comfortable at 45 50. The feds Balance Sheet, right, thats normalizing to a degree that it has not in decades, really. That, weiss, seems to be the most profound influence on how some, including your pal, david tepper, are viewing the market according to the conversation we had on friday, and we can throw the quote up. Its not that complicated right now, youre just not in the qe times. Its not bad its just a different environment. Hes not overwhelmingly bearish, as you know, and its a reality check, weiss, on the kind of environment we are in and what that may mean for stocks relative to where earnings are. You have to determine because of both of those what the multiple in the market is supposed to be. Right. So i agree with dave, or he agrees with me. Whichever way you want to look at. We know how to look at it. Yeah, i do too, in full candor. You are in a restrictive monetary environment, but not just a little restrictive, a lot restrictive. To your point, we have a lot more supply coming on from the fed. Rates are going to go higher. Even if they stay where they are, theres no reason for the market to go higher where they are. Unless earnings come in good. Yeah. So i dont think they will. This quarter they may because we have seen a delayed reaction to monetary policy, and maybe that gives you your catalyst, joe, and i think it will be shortlived if it moves higher. Lets throw out the calender, and the last quarter will be a good quarter. Well, steve, you should address address me. Yeah, we can always look at the calendar, but thanks for showing up. We are talking tiers in the market. Heres what i would say. Rates are too high, plain and simple. We are seeing delayed reaction. We have had 15 years of free money, and theres no normal, and normally the s p equal weight, as you reminded me on friday, its flat, and the s p is up about 12 . Flat is a gift in a rising rate invinement. Why is it flat . Companies had massive Balance Sheets, a lot of cash, and consumers had it, and that has been depleted. With that being the backdrop, and with costs to the consumer, regardless of what headline or core inflation is, we know it has gone up because the price at the pump, and by the way, it has yet to filter through actual cpi, and dave does not see a disaster and neither do i, because the bank system is solid and in 2008 it was not. We should keep the tenyear note yield for the entire program, and thats where the story begins and thats where it ends. As long as it continues to go up, stocks will be challenged. Period, end of story. Scott, i couldnt agree with you more. I think the challenge for equity investors, we are entering into a new phase. Last year we clearly understood the fed was going to be aggressive and then even more aggressive, and then, wow, they were being really aggressive. In the first half of the year, we got this pump, if you will, especially with the liquidity infusion and the impulse coming out of the banking sector, and we got the infusion of liquidity and it reset, i would say, what the longterm expectation was on rates. We have seen the tenyear continue to creep higher and higher and higher, and if you were angering around the may and june timeframe, we were already at peak rates, and the market priced in what the fed had left to do this year, and by the way, there would be four Interest Rate cuts because of the looming recession we all telegraphed coming into this year, and now you are seeing a period of digest chun. The challenge is september was a tough time to digest that, and what is happening in Central Bank Policy outside of the United States right now and the divergence of that that. What we are trying to do now is figure out where is that top for yields, but if this is where we are going to be at, and maybe slightly higher because we are not seeing any abatement, how are you setting yourself up for 2024 . This is the quarter to do that in terms of what you think will happen in the first half of next year. How do you counter, brian, all of that . You are not naive to what is happening with rates, obviously. How do you judge what is happening there and maintain your bullishness through all of that . I think a couple things. When you take a look at average Interest Rates and compare them to the last three years, obviously higher for longer, and i am so bored with higher for longer. If you look at since 1950 when the markets are trading above average with Interest Rates, and the return ratio is higher and you are a stock picker relative to just buying the index. I think joe is right. We are going to have a period where the mega caps work. I think what has happened to the high yielding areas like rates and utilities made people learn you want to own Dividend Growth and not just dividend yield, and you want to own a bunch of things as returns moderate. The market told you we are head into the high single digit and low double digit return for several years. Its notable, joe, as you said, the mega caps doing well, and normally you would see the nasdaq moving considerably lower and its not happening. Why . Because the stocks like we are showing you on the screen here, whether its amazon, tesla, all higher on the day. I think theres a universal thought that we have to lose the concentration that has been so dominant so far in 2023, and in fact, i believe that only intensifies as you move towards the end of the year and you study the treasury market and ask yourself the most critical question as it relates to treasuries, and who will be that buyer of treasuries . A significant enough buyer that will bring yields down. The answer to that question is very difficult right now to try and find. Is it going to be Pension Funds . They are could step in but they will not be aggressive enough to press yields lower. We know theres a tremendous amount of issuance, and as long as you have the Structural Force in place, and i believe its structural, and i dont think this is going to be in place through 2024, and you have to identify the areas of the market where you believe theres not that sensitivity to where the move in yields might be. But there has been a sensitivity to growth and tech. One day does not a trend make, but its clear to track, when rates move up, nasdaq has been lower. You have been making that point i have not made the point, the market has been made the point. I will credit you, because i believe you are right to focus on that. Its important to also say, well, where, in fact, was technology coming from and where is technology now . You are talking about at the end of july when the move in yields really began. If you look at a 30year, its up about 80 basis points since the beginning of august. Scott, you are correct, the mega caps sold off, and technology and mega caps were already overbought at that point. Now where we are in the marketplace, you could make a reasonable argument that technology and mega caps have a little more of a comfortable valuation from where they were three months ago, and the fundamentals are still strong and the Revenue Growth is still strong, and the need to access the debt markets from these companies is not going to be there. Lets say arc, for example, the arc etf, it was down 9 in september. Why . Thats the month we saw rates rise dramatically, as they did. And we are talking about zoom and coin base and that was up today, and its about to go negative, and just to give you a flavor of what is in it, and thats far from all, but at least enough of what her holdings are, kathy woods, to give you a flavor. Where in tech is a decent place to be in rates remain elevated . Well, not ark, and its a binary fund, and she chooses to be that way. Its a strategy i wont say its bad or good, but you have to know that going in. Its still up 20 year to date. Yeah, and lets look at it for two years. I understand that. The place to be in is tech, and meta, its 16 to 17 times next year. I like microsoft. You will start to see starting in january, actually, the products flesh out and adapt ai into it, and thats going to drive revenues. Of course they both have cloud businesses, and those two stocks happen to be my two Largest Holdings of where i would be, and can you find other areas but lets not bet on consumerdriven businesses like cell phones and et cetera, and so going back to the semis. Amazon is another one, and i own a small position, smaller than the other two in amazon, and i decide do i want to be there or be bigger . I cant answer that. I may want to be bigger there because andy has been a better financial ceo, better than bezos. You have so much more data that has to go to the cloud, and you have to be safe in the big cap names that have fortress Balance Sheets and dont have to go to the market for funding, and thats what hurts tech stocks. You bought more oracle . I did. They missed the estimate which was 12. 47, and there was an overreaction. They are trading at six multiple points near their tenyear multiple, and talk about f fortress Balance Sheets, we just added to our more tactical s p 500, and number one because of the strong earnings going forward, and the cash Balance Sheet. It helps us to bring the multiple down with respect to the s p 500. I know you like oracle because you picked it in the stock summit. I want to talk about the playbook of sorts for the Fourth Quarter. I find it interesting here we are talking about a higher rate environment, which you agree will be with us, yet you like utilities and staples. Some areas that dont do as well when yields are going up for obvious reasons. Why do you like them . Well, i would say one of the things that i want to make sure that i identify here is that this Fourth Quarter could be a setup for complacency in terms of what happens next. Scott, we talked earlier in the show about how the last three years we have had negative returns in september and all three of those years we generated positive returns in the Fourth Quarter. To brians point, we could be in for that setup here and we could see a positive quarter. I want to make sure people are thinking about this in terms of we are likely approaching peak yields. Yes, the dynamics, if you will, and the enthusiasm and sentiment behind utilities and real estate is probably not going to play out in the first half of 2024, but i think if you look at the sectors that under performed this year, and, oh, by the way, we are now at more stocks with negative returns in the s p 500 than positive stocks just by a little bit as of fridays close, but i think you want to look at places like health care. If you look at reads, for instance, reads has an entire collection, and you may not see the opportunity there but they are tied in with the infrastructure spend, particularly in technology. We better perform in health care, and there are growth dynamics in that sector that are attractive. Think about all the concerns we had with higher costs, and a lot of those have been passed on. If you are worried about the consumer in 2024, and you are thinking about the shift from, you know, retail to necessities, Consumer Staples company should benefit from that. One of the things i would say for our viewers in the equity space in particular is take this quarter to think about setting up for a little bit more volatility and a little more uncertainty, and think about the places in your portfolio where you are underweight and add some to that, and just add to those exposures. Not that they will be in the best place this december, but looking forward through 2024, we are going to digest these higher rates and reset to our new level. This is where you will want to be when we start to see some of the consumer slowdown. Rates are one component in the 27 or 48 theory of yours. Yeah. And then this is the quarter we will get back to earnings growth, and then you have a lot to live up to next year, and why dont you think those expectations are over inflated . I think they bottomed out with respect to revisions, and not only for the current fiscal year, scott, but 2024 the revisions bottomed a couple months ago and started to recover quite nicely. That could still hold true. Yep. And estimated could be overinflated moving forward. One doesnt preclude the other . Yeah, especially the 24 numbers, right . Thats what i mean. Lets call it a 245, 250 number next year, and the s p is pacing up to a 223 number. Could they come down . Sure, they could come down. Analyst follow each other in the herd in beginning to increase their numbers, and any downward number will happen in the second half of next year and not the first half. What a is fair multiple do you think the s p could be trading on . All roads lead back to that, right . Thats the crux of the conversation is how do i know what the multiple of the market is supposed to be in a higher rate environment, in a qt environment . That is beginning, middle and end, the story. In a qt environment where rates most likely peaked, and coming out of a bear market low, you have six multiple points that come off of that low, and we are only 4. 5 from that, and the turn, we could have more of a multiple expansion, and the multiple is a trap question because is it 18 to 20 times . That would be great, but on the average side we are going back into normalization so it will be a higher multiple, and earnings are going to grow into that. The word we keep using is peak, and i take it not personally with you, but i take issue using peak when we are talking about yields. If you are thinking we are at peak yields, the right word to be using is elevated. You will see rates are going to be elevated for an extended period of time. If thats the environment as we are seeing today just look at today, the s p equal wait is down 1. 25 , and trust me, i run an equally weighted strategy. And thats the environment of an elevated yield setting, and i think the viewers and investors really have to think about that, not just for the coming quarter but was move into 2024. Russell, to your point, was down 8 from last month, and super sensitive to rising rates. If you listen to one sound bite in the show, listen to what joe just said. Elevated, staying there. Too many bulls are saying rates have peaked. I have to buy. Its not that they peaked. Maybe they have peaked. It doesnt matter to my very cautious case. It matters they will stay there for a while. Its not a temporary thing and that will influence spending behavior and the economy, and thats why i firmly believe we will go into a recession, not the soft landing. Stocks can go up. You have made multiple cases where stocks can go up with rates being elevated, and at some point you have to stop the elevation, you have to stop the speed in which they went up over the last 30 or so days, and it has a profound affect on what the market has done . Yeah, we came out of the pandemic where people could not spend money if you wanted to, and yeah, you could go to the mall and experience out to dinner, and that was a fire hose that came rushing in. Now that is gone. Now we are leveling out to slightly more normal activity and looking at the personal Balance Sheet and saying we cant spend. Stocks go up, but only to a certain point. My view is we hit that point on rates a while ago, perhaps six months ago, and its taking a while to catch up. Unless rates were abnormally low for an unusually long period of time, and maybe now they are abnormally high. They are. The fed is going to embark on a cutting cycle at some point who cares what they say. I am not saying next week. Who cares what they say . They have growth wrong and inflation wrong. Scott, they had everything wrong but at a certain point we are reacting to a Federal Reserve meeting weeks ago where we are hawkish. The only voice that matters is jay powell. Exactly. Take a look at what hurt civilizations. Take a look at south america where they are operating in 20 Interest Rates. Its disastrous. The only important thing is to get inflation back down to 2 . They have not said 3 . Some said they are going to 3 . They are not going to 3 , its 2 . Until they get there, its an issue. To me its just very simple its a very, very simple market. Coming up, we have our call of the day. Its a fresh 52week high, and expectations for shares to rise 20 from here. We will get the take next. Halftime is back in two minutes. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes [ cheers ] yeah woho running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Time for call of the day. U. S. Steel, the price target from 40 to 55. Jimmy owns khrcliffs, and do we like these stocks, yes or no . U. S. Steel, yes, because i believe a deal will get done and u. S. Steel said theres other interest beside Cleveland Cliffs. Theres three areas in the economy that demand will come from, commercial construction, and automotive, and i believe thats temporary, the pullback, and the steel price since april is down 40 . You have seen a little bit here of a pullback in the steel names, and i am comfortable buying some of the steel names because i think the demand comes back, and i think the automotive sector will bring back that demand. The Steel Dynamics is in the joe strategy. Would you buy letter x personally . Yeah, 32. 5, somewhere around there . Thats a spot you could buy, because i think a deal or at least some form of the assets are going to get sold. You just sold, speaking of scx, and i think this is purely what it is, its not a fundamental call. What the analyst is saying somebody will buy them, and there are a couple bids on the table and it will be worth 40 to 45, and its risky. We have seen deals walk away, and if Cleveland Cliffs is the winning bidder, it will take a while, because lena is not a capitalist, shes a socialist. But her hand might be weakened this deal would not close for a year or so. I would not own the steel stocks here. We have seen away from the strike, we have seen demand start to falter. Look at used car prices. Look at the incentives on new car prices. Its not where i would be. This is what dave says, the pillars of the economy, you want to see how the economy is going, look at housing and autos. Housing will come down, and thats on borrowed time because its a lack of inventory. Are you going out and buying a house . The Interest Rates, no, of course not. A great deal. Thanks, steve. Thats a big position. Talk to me in a number of months. I believe in the copper story longterm, and yes, in ten years thats going to be fine. When you make mistakes, period, steve, we are here to pick them all up. Go ahead. I think next year the market will be more cyclical, and copper and gold where they are neutral here in the u. S. , its not part of the index. We like copper from the longerterm perspective in batteries and the like. Materials will be a sleepy winter. A sleepy winter for materials. What do you think . I think materials are facing some of the same supply issues that we have in energy, scott. You know, brian makes an excellent point on copper. It takes a very long time to build a new mine, and we are seeing yields come way down on the copper facilities already in place. If you think of the infrastructure spend already pentup, and the upside could be china. We have not seen a recovery there, and we could swhere they spend it, and it could be sneaky, especially in some of the individual commodities. We will see if it sneaks up on us. Yes. Sivana has news for us. California governor gavin newsom has chosen Laphonza Butler to fill the seat of the late dianne feinstein. She is part of the organization that works to elect democratic pro choice women. She would be the third black woman to serve in the senate, and the openly lgbtq person to serve in the senate. The World Health Organization is recommending a malaria vaccine, and the shot was announced two years after the organization announced the first malaria vaccine. It will be rolled out in some african countries in early 2024, and will cost between 2 and 4 per dose. Beyonce fans will have another chance to experience the renaissance tour. The International Superstar revealed a behindthescenes movie about her tour will hit theaters in december. Renaissance, a film by beyonce will cover everything from the planning of the show to the tour. Up next, we have the top etf trends to start the Fourth Quarter. Halftime is back in a couple minutes. Gold isnt merely a commodity. Its an investment in people and communities. At osisko, we strive to build modern, safe, and sustainable mines that benefit all. Think big. Shape tomorrow. Osisko. Two big stories in etf to start the Fourth Quarter. The futures are trading right here and big influence trading in the bond fund. Lets go to brian lake, global head of Eft Solutions at chase morgan. And pro shares, ether strategy, the first ones, ether etfs. What is this all about . Yeah, its our ether strategy btf, and bete is the bitcoin ether equal wait eft. We are pleased to bring them. We are the guys that brought you the biggest crypto eft. Futures in an eft works well, and you can buy it in the brokerage account. What is the status of the bitcoin eft, and we are waiting for a decision on this. When will it happen . We know bito is a futures eft with a billion in it, and you have the combination of regulated futures in an eft. We think its a great solution. I will get a better answer out of you on eft edge. And shortterm, treasury etfs, and investors are loving the 5 yields, and now we have seen shortterm inflation, great corporate etfs, like the one you have there. What is going on . Why take the added risk of an Investment Grade . You can step out of cash, and the objective is to outperform cash, and the sec yield is 40 . And its a very attractive spot to be in, compared to the ag, you are getting 108 of the yield with only 10 of the duration. A pretty attractive place to hang out. Is this a permanent change with Consumer Behavior . Are bond funds like these going to pose a serious threat to stocks . Seems like it is. The money is staying and its sticky in the bond funds . Maybe, they are going to go back to playing a historical role and you want to have equities and a fixed income, and theres still a lot of opportunity on the equity side, and obviously jepq is an attractive strategy, and its the cover call on a growth basket and still yielding 13 . My point is investors seem unhappy with the risk reward ratio risk reward returns, and viewers tell me i know i can get more in stocks and i dont feel it right now. Thats the attitude right now, worry worrisome . Yes, and a lot of investors caught up on some of that, maybe, and i think they want to grind to the end of the year and see if they can get the five or 6 . That seems attractive. Coming up, 1 10 eastern time, along with more on the bitcoin eft. We will have more on that. Todd sohn will join us. Back to you. Appreciate it. Coming up, we have more Committee Moves to talk about. You got this. Lets go. Gobble gobble. Ive seen bigger legs on a turkey rude. Who are you . Im an investor in a fund that helps advance innovative sports tech like this Smart Fitness mirror. Im also mr. Leg day. 1989 anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq100 innovations. I go through a lot of pants. Before investing carefully read and consider Fund Investment objectives, risks, charges, expenses and more in prospectus at invesco. 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Get started for 59. 99 a month for 12 months. Plus, ask how to get an 800 prepaid card with a qualifying internet bundle. Comcast business, powering possibilities. Welcome back. Another trade to tell you about. Brian, kb homes. You know what Mortgage Rates are doing, right . Eah, they are elevated. We learned they are elevated. A little bit. You know what people are doing as a result of that . Not buying houses. Or waiting. You have to look forward, and this elevation of rates, the chances of rates to be lower a year or two from now is good, but the other thing, too, is kb, the stock is up 45 this year. They raised revenue guidance and guidance for 2024, and they raised the number of units they will be buying. A lot of the homebuilders, including pulte did a great job late last year and this year when Raw Material Prices were lower, including lumber, and they built a lot of products, brought a lot of products in, and you are looking at a huge increase in housing and the Population Centers that are growing, southwest, southeast, and i think kb is well positioned. Yes, they have had a great year and surprised many, up until the last month or three, right . As Mortgage Rates continued to climb, these stocks have trended lower. Yep. Giving up some of the gains they had. Yep. You dont see that as a potential overhang . No, because when you are buying a house, you are buying it for 30 years, right . Or at least hopefully, and you are looking at it from a longer duration type of asset. Sure. But fewer people are buying homes because of the amount of interest they are paying over the 30year period is elevated yeah, a year from now when you are looking out, you want to think contrary, and you dont want to buy or sell when things are happening right now. Weiss . Scott, i believe in giving back. Brian, let me help yourself. Help me. Yeah, theres no rush to buy kb, and when they come down houses are still not going to be that affordable. The affordability index is not there now, and these have moved up in the valuation, which is kind of bizarre. They have had good years, and inventories are tight and the market is still there, but its affordability. People dont look out 30 years, but they say i cant afford it now. I have to worry about other things like putting food on the table and pwbuying clothes. You stay where you are and wait for rates to come down. If you feel you have to do this, jump on one of the housing indexes, and you think you are picking the best one i say that to viewers, if you think you can pick the best stock and you want to take out the Economic Issues that can affect that sector, short the eft, but dont short the joe t. Utilities getting hammered today. We will get the take next, and we will show you the real time in that space. Down 5 . Were back after this. Ice works fast. Heat makes it last. Feel the power of contrast therapy. So you can rise from pain. Icy hot. Well, we are back and we want to show you in realtime what is happening in utilities. Down more than 5 . This looks like the worst performance in 15, 16 years. Lets show that one, too, and that was down 9 earlier. I will come to you in a second. Yeah. You own nextera. The stock is down 9 1 3 percent. What are you doing with this . I dont care what size it is. This is the best of the bad deal. When you look at the sector, debt to equity is going straight up and capital is going straight down. There you go. Thanks a joe . So this is the unwind of the renewable trade. The Ticker Symbol you have to watch is nep, Nextera Energy partners is down 15 today. Its got a market cap of 2. 4 billion which you own is nee and nextera owns energy partners. Wells fargo downgraded and cut the stock. Youll like this cut, steve. 80 to 33 they cut the Renewable Energy stock so thats whats pressuring right now, utilities and nee is over 14 of the xlu. The xlu was already reeling from a Third Quarter in which it was down 10 and its 3. 9 yield isnt attractive given where the tenyear is today. Shannon, i go back to you on this, we mentioned it earlier as one of the playbook areas for the Fourth Quarter. Im looking at this and im saying, really . The selloff is certainly, i couldnt agree more with joe. There was enthusiasm around electrification and spending that was earmarked within the ira for clean energy. I think the other thing that were forgetting here is that, again, right now its a trade in terms of both that clean energy trade coming off as well as the relative dividend versus cash opportunity. If you go into 2024, however, the shift from offense to defense can be very swift and utilities have historically benefitted from that as people seek shelter even in this elevated rate environment. So setting up for 2024 is really w where my playbook was focused. Weiss . Rising rates or even staying higher for longer, you cant get better yields than what you get in the utility sector which is typically why people buy them. So why own them. Why take the equity risk. Renewable, there are other issues. Its not just that Renewable Companies are tough to finance because rates have gone so much higher. Its also because it seems that at least in the headlines that the esg movement has stalled in the u. S. I dont believe that. Its still moving, but politically, thats what influences stock action. Theres no reason to own them and youre not at a valuation floor yet. Ive looked at nextera. I think its a Good Management and i think its a good story and its the wrong story for this economic environment. Well come back to final trades on the other side. Opportunity is using data to create a competitive advantage. Its raising capital to help companies change the world. Opportunity is making the dream of Home Ownership a reality. And driving the world forward to a Greener Energy future. [applause] sometimes the only thing standing between you and opportunity is someone who can make the connection. At ice, we connect people to opportunity. Are you following Halftime Report podcast . What a yreou waiting for . Follow the halftime podcast now. Available now in siding colors, styles and textures. Curated by joanna gaines. What do you see on the horizon . Styles and textures. Uncertainty . Or opportunity. Whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined Risk Management are needed most. Drawing on deep expertise across the worlds public and private markets in pursuit of longterm returns. Pgim. Our investments shape tomorrow today. Every day, businesses everywhere are asking is it possible . With comcast business. It is. Is it possible to help keep our Online Platform safe from cyberthreats . Absolutely. Can we provide health care virtually anywhere . We can help with that. Is it possible to use predictive monitoring to address operations issues . We can help with that, too. With the advanced connectivity and intelligence of global secure networking from comcast business. Its not just possible. Its happening. Old school wisdom, with a passion for whats possible. 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We mentioned that communications services, technology today. Those two sectors are the only green ones. Discretionary just trying to get there. Basically its flat, but man, utilities are getting smoked down 5 1 3 . Energy is terrible today, down 2 . Materials down nearly 2 . Health care is weak. Staples are weak. Well keep our eye on, joe, utility, too, as we head toward the exits today. Rates have been elevated and thats the picture youve seen on your screen for most of the day. Small caps are equal weighted, as well. Okay, shan, give me your final trade, please. Consumer staples. Discretionary to staples will happen and were particularly interested in beverages and hous household goods. Mr. Belski . Doordash. When im not taking steve out for thank you dinners, doordash. 400 million of operating cash. You own it . Yes, i do. Weiss . Short xhb. Youre just doing it on purpose. My you didnt say anything about the housing stocks and you wouldnt do that. My final indicator. Cybersecurity, crowdstrike, palo alto, fundamental t tailwinds. Of course, the exchange begins right now. Thank you very much, scott and welcome to the exchange. Im kelly evans and heres whats ahead and last quarters concerns. We kick off the week and the quarter with bond yields kicking off right where we left off and surging higher, the tenyear treasury and its highest level since 2007. Our market guests Sees Opportunities bonds right now because he still sees a recession ahead. Should you step in front of this freight train, well discuss that coming