Well. They move lower, too. If theres a bit of a bright spot today, it is in tech is that has dated positive numbers. All better than 1 . Energy is the weakest vector today. Keeping an eye there over the final stretch as well, 83. Thats a decline of 2. 5 . All of it takes us to the top of the table. Goodenough earnings begin in just a couple of days to send docs into a year ending runup. Lets ask dan greenhouse. Alternative massive out late strategist, hes with me once again in post nine. Rates have largely been cooperating in the last few days, will earnings . I think the answer is yes. I think this idea that earnings just need to be satisfactory or not is sort of secondary to the yield storage he just brought up. What i mean by that is, pretty clearly you have seen a relationship between the two since the end of july. Rates and stocks. Love the bank of japan, they all hit at the same time at the end of the month. That was essentially the peak of the stock market. Youve traded down ever since, and then the last few sessions, equity markets began to rally again. I dont think this is saying anything anybody doesnt know, but it does underscore that right now, thats the important thing. Is the beginning of the end for equities in the low term. Its a satisfactory earnings that are going to be good enough. Again, this is a yield story right now, obviously something more terrible in the middle east notwithstanding here, but the earnings are going to be fine whether they are down 1 and that theme is probably going to be alidated. If ever they seem to not matter so much, this would be that moment. They came out within the last hour or so, the majority judged one more hike likely appropriate. Some judge, no further hikes would be warranted. You know what the tenure was the last time of the fed meeting on september the 20th . Tenure was. 437. You know what the tenure was this past friday . It was. 479. In other words, you had a 42 bit jump in the tenure. The bond market has done a lot of work to the fed, to the point where had every fed speaker thats come out lately day, you know what . We probably dont need to do anymore as a result to a taken yield. Some spoken or not Voting Members. Thats critical to keep in mind. Were going to go into a quiet period coming up soon ahead of the next meeting, but how do you sort of where we are today relative to where we were on the question of rate and what the fed may or may not do . I would take one issue with one word you use, which is probably. I would swap out possibly. I think you are better saying that than i was. The point is the same. We are maybe a little too nitpicky here, but listen, the speeches have been on balance in general and have been of the idea that we are the end of this thing. Whether theres one more hike or not, two more heights or not, here at the end of this, we are not ahead. But to the point, i think lori logans speech, the president of the Federal Reserve back in dallas, hurst each got a lot of attention because she is explaining why we are probably at the end of this and why moving yield gives, and some fed members mind, room to do it. I think its important for them to do this speech and learn where people are coming from. It is not unfamiliar with this, like a modified policy. Anyway, yes. I think you are towards the end of this thing, you are coming out of the earnings recession and getting back to the original question we posed at the out that. When we put this together, again, something that with banding, the bias is probably there. So the bias is there . There is a good debate whether or not the market is primed for a year and run partly due to rates coming down, this positioning, if you want to describe it that way. And the earnings story actually being decent enough to take you into the end of the year. I think so. You are coming out of the earnings recession as you will, and whether you are up or down is irrelevant. Obviously, the banks go first, and theres a lot of consternation about interest margins and losses in various books, et cetera. Thats going to be a problem for the banks at the out that. But when you get into the consumer names, i think the bias is probably to the upside. Despite not being prescribed to anybody outside of the upper out east in l. A. Is having a dramatic impact on certain areas of the market, which we will get you into later in case you havent been following a tick by tick in every center today. We will show you coming up. Some have suggested today to me that simply coming out of an earnings recession is good enough. I would push back on that and say, if you look at where the projections are, not only for quarter three or earnings, which are about to be reported, but the turn into next year, we are starting to get to some pretty optimistic levels. How important is it to meet those levels, not just the fact that we are coming out of an earning recession, so we are at least trending in the right direction. Lets play toward it. I think in general, the answer is not very important. If we are orecasting three quarters out in the actual number comes in at 6 00 or 12 00, that is largely not going to matter for the equities over period of time. Obviously, there will be tradable fluctuations in the interim, but in general, earnings go up, stocks go up, thats how it works. I will get back to the yield story, and you see it here. To me, the yield volatility is the problem. Its not just that yields went up, is that they went up pretty dramatically. That throws a wrench in the works. When you look historically, my work is out with that grade inflation and volatility, which is the greatest problem for multiples. Despite earnings roughly and expectations being unchanged over the last few months, mark markets came down. Hotter than expected ppi this morning. You can strip some things out and maybe wasnt as hot as the headline was just, but does raise the bar in the pressure now for tomorrows api . I will also say no. A year ago, no one in this market thought about ppi. I thought you were going to say yes. Is the story being told that inflation is moving in the right direction, but you cant have a reversal of fortune as it relates to inflation, or you have a greater chance of a reversal of origin with stocks, because it keeps things unsettled and the fed more uncertain. You got to keep the trend intact. I forgive the viewers for not remembering everything i say, but ive been mentioning lips this though everything has been memorable, i will throw that out. Listen, im weekly for a reason. But in all seriousness, its been a theme of mine that at the end of the fourth quarter, the enthusiastic decline in inflation is going to abate. In the next few months should be that. Its not only energy. You got airfares and a couple of other things that are going to go support tomorrow, but the next few months, probably, the market is going to have to wrestle with that. But this is not aesops fables. The inflation rates are coming down. My point all year remains that you are not going to get to two percent on an ninterrupted decline. Its good to be a little choppy or from here on out. Lets bring out george jackson. Its good to see you again. So are we set up well, or are there still too many risks in your mind . I think very tactically, there are still too many risks in my view. I think tactically, probably to the next meeting. I think it still remains to be seen what the fed will feel like if they have enough ammo or if they will go on pause here. Im a little bit more the hawkish camp. I think they will have enough evidence to maybe go again. When you look at the revisions to the payroll numbers over the last three months, the three month moving averages jumped up from 150,000 to 260 thousand. You can almost argue theres been a reacceleration and hiring over the last couple of months, and this is sort of further corroborated by the job opening number, and we will see how that shakes out in september. Also, when you look at the skew in the members, just about every Voting Member views court pce is skewed to the upside from here, where you have no members seeing it skewed to the downside. When you look at sort of the broader growth narrative, our numbers are converging with the atlanta feds gdp tracker and now 5 . Our numbers are now closer to 4 , but we are still looking at some pretty firm growth numbers. You put all this together, and the last point i would make, when you pick up on inflation over the next couple of months, im a little bit worried about new and used cars with the strikes. They are already at low levels of inventories, and the strikers at another level of an addition to the other sect. Obviously, energy is wellbeing a wildcard. Look, i think they wanted to put the date nail in the inflation coffin, and thats if they want to go again before the end of the year. Theres a lot to get to within that. The first thing i think of, what is good news just become good news . Why cant we accept the fact that we may have a soft landing . Job Growth Continues to be robust, but at the same time, you left this out, by the way, wages within that same report came down. That is arguably more important than the headline number of how many jobs were added, is it not . Well, remember, sincerely 1980s, the average Wage Inflation rate has been about 3 . Over the last three years, consumers have enjoyed wage and leishman of north of 4 . I certainly acknowledge its in a downward trend. But now were with its out today, we see positive wage group growth and the reality is, theres an old adage, a penny saved is a penny earned. A penny earned is a penny vent. As long as theres a meaningful takeup in the unemployment rate, i still think consumption remains fairly firm over the next couple of quarters, and i dont think we moved back to good news and good news until the fed is done hiking, and that will be until next year. Thats your opinion, obviously. Its not you can pick it whenever you want to within the labor of work to make a case. If you are more negative stocks, then you say the economy is too strong. The fed needs the employment market to slow down. Thats actually good. Increases soft landing. Wage growth coming down, that is most important. And with the moving yields we just talked about, theres no way the feds going in november, no less december be they are done. I am generally of the view the good news is good news. Obviously, theres moments in time where productivity is the market is focused on it a little more. But in an environment like now were were worried about a recession for a year, good news is good news. Creating good jobs is better than not. For investors out there, when im looking at the investment lands gave, we worry about this because the fed is going to interrupt this. Theres too much wage growth in the feds are going to shut it down. The fed has told us, numerically and what we call the summary of economic protections, that they are not going to. They can talk and tell me and talk and tell me, but the numbers they put on the page, that until they stop doing it, reporting the sep, which they should, but until they stop doing it, tell me that they are not what interrupt the mansion in order to get the inflation rate down where they wanted. If you knew that the fed was done, we have a crystal ball and we look into it and they are not going to do anything in the next move is going to be a cut would that make you more positive on stocks . That would make me more positive on stocks. Its interesting. If we were to look at a 180 day rolling correlation between docs and bonds, it fascinating. An overlay with the fed funds rate. Either they are tightening monetary policy, the correlation is positive. Once it goes the other way, the correlation turns back negative and bonds are back to being in the balance of the folio and you potentially get a relief rally coming from risk assets. And its interesting. Typically, the long rates tend to peek about three months prior to the last rate hike. Maybe weve seen that peak this month, late last month, and you actually get maybe november or does number on the hike. But investors should not wait for the fed to start cutting rates to start moving back into duration assets. On average, over the last five cycles, the 10 year has fallen by about 100 basis points after the fed delivers the last rate hike, and then continues to move about 30 basis points, but suffice it to say, dont wait until they start cutting rates. Wait until they are done. If they said we are done and we have a perfect crystal ball, i would start over on assets, particularly growth. I think growth needs to charge to the end of the year to the beginning of next year, and then you need a little bit more balance, given real rates would be positive. The problem i have with what you just said, the longterm yield will decline by 100 basis points. Investors should get into Long Duration, and also, we should start getting along with tech stocks at the same time. But what im curious to explain that dichotomy is, the reason yields come down is because theyve done enough damage to combat the cause a recession. If im going into Long Duration assets on the idea that the average will become the reality over the next x months, why would i want to put that into the environment that will be recessionary and probably come with it associated decline in earnings . We have to remember that tech is still considered a Long Duration equity. An environment in which yields can come down, and i do think that you will get a more evaluation driven rally coming from the growth of your Long Duration hearts of the market and an environment in which rate can come down. To your point, you are absolutely right. What i want to highlight is, the economy can be on two different cycles, right . Stocks will sell out before the economy starts to fill it. The bond markets will start to respond in accordance to that slower growth, lower inflation outlook. So maybe we have kind of already seen a bit of that correction, or that sort of weakness from a valuation perspective, and i think thats how you get that sort of evaluation driven rally coming from those longer duration growth equities. You are really doubting that growth is going to be the place to be . I mean, you ask why, i will tell you why. Balance sheet. Right . You can play defense and offense in that. Offense, you are going where the proverbial puck is going. Ai and everybody else are playing defense because of the Balance Sheets i suggested. And then more guaranteed earnings. Even though, you know, Revenue Growth for a lot of those Mega Cap Companies is gone down over the last few orders. Dont you believe that that is where you are going to get more guaranteed Earnings Growth than some of these other, more cyclical dare i say, more risky areas of the stock market . This is a complicated conversation. Were not going to solve it at the end of the a block. But listen, you got a couple of narratives going up. One is ai, and what effect that has. You got all the infrastructure spending. Its going to benefit some of the industrials. Positioning a portfolio in an environment like that is more difficult than usual, and its always very difficult. That said, if you are going in the environment it was just laid out, if you are going to have a recession, even the impenetrable Balance Sheet that 50 companies in one that make up that magnificent seven of tesla, which seems to be way more influenced by Interest Rate than anybody else, i cant believe anything is insulated. They may go down like everybody else, but are going to go down less. A lot of those names, presumably, or going to be insulated. Even though they come with already higher valuations. We will see you next week. We already booked you for next week. Am i . s the mac thats the way you said it. Tune in. Thanks, we will talk to you soon. Your jackson joining us. Lets check for stocks to watch. Exxon and Pioneer Resources on the move after they said they would buy the shale driller in an all stock acquisition valued at roughly 60 billion. The deal will more than double. This is the oil giants largest deal since buying mobile in 1999. In just a few months after they bought the pipeline company, the deal is expected to close in the first half of 2024. Brinks is denying a writers report that they are in talks with rival ncr about a merger with their atm unit. And e. R. Has been working to separate it Digital Congress from atm division and plans to complete that process on october 16th. The company said this morning that the ceo will retire once the separation is complete. We are just Getting Started here. You know the sox is up nearly 40 this year. Now top chip analyst joins us just after the break. And his forecast for the big chip names during earnings season. As we set out, a check on burke and doc. That stock look at that. It is lower by 20 . Remember, we priced it at 46. Currently trading at warty. Brings us to our question of the day. Would you die that by that . Its trading below the price. Maybe you are getting a deal. The results later on within the hour. There are some things that go better. Together. Burger and fries. Soup and salad. Like your Workplace Benefits and retirement savings. With voya, considering all your financial choices together can help you make smarter decisions. Voya. Well planned. Well invested. Well protected. swords clashing voyahad enough . Ed. No. Arthritis. Here. Aspercreme arthritis. Full prescriptionstrength . Reduces inflammation . Thank the gods. Dont thank them too soon. Kick pain in the aspercreme. Upbeat music upbeat music we are back on closing bell. Semi conductor stocks having a strong bid in october. But will the bounce have staying power . Lets bring in stacy rask on a bernsteins. You want to answer the questions first and foremost . I guess we will find out in a few weeks when earnings starts. What are you inclined to think coming in . You are right, the sector has been pretty strong here today. Its been strong so far this month. For the last three or four months, it hasnt quite been as strong. The Broader Market has hold off from the julys. That being said, i am a little nervous overall. These valuations, they have been very high. Close to 24 times earnings. You also to go back and find the absolute multiples that are that high, and Something Like a 25 rhenium. Overall expectations are fairly elevated. I think going into earnings, it really depends on the in market, too. This is an it asynchronous cycle. Different markets are happening at different points. Things that were very strong drink covid that rolled over ha looks like the inventory correction in the channel was most done. Overall demand looks like it has stabilized. Smart phones have been awful. They still look pretty bad, but it some point, they have to be closer to bottom that up top there. Traditional data center is pretty weak. Cloud spending, shifted to gp. Ai is off the charts, as we know. I think the more incremental worry going into this season is more on the industrial in the auto side. These were very robust during covid. We started to see some cracks, thats one in particular we will be watching as we get into the end of the year if the strength certainly starts to wane. I have other questions, obviously, but xpi this is what you just said about autos. You worry about that name because of the strikes . Well, the strike is sort of on top of it. Im nervous about a lot of them for a while. We have the divergence between Semi Conductor shipments and car shipments has been getting bigger and bigger and bigger. To be clear, ive been nervous for almost two years. Otto has been amazingly resilient, but we started to see cracks from other companies that have play in that space. As far as i know, things still look okay. If otto is okay, that looks pretty good, but audit was 60 of their revenue, so thats what makes me a little bit nervous. I am nervous in general with auto. The strike, we will see how long it lasts on top of everything else. I got to be honest with you, i had a little bit of a chuckle. I saw some of the notes that suggest you have mellowed on intel. I am like the guy was in a deep slumber on intel, and he may be opened one eye. How do you mellow from that state . As you know, and i think what you are referring to, we get upgraded thats what im referring to. The title of that is, we hate this call, but fine. That call is on the back of seeking channel normalization. The channel has normalized. The company is actually possibly preannouncing last quarter as well as this quarter that it should be good. They already say they are coming up into the upper half. Thats all good. My guess is going forward, each of those revenues, maybe we can be some upside. I think theres some question on margins now. The cfo was certainly talking down the gross market trajectory next year a little bit, so thats an uncertain kind of thing. I think they are doing the right thing. They are sort of identifying some big buckets of cost that they are going after. They are sort of woken up to the fact that they need to be more competitive from their manufacturing. They will never be competitive building an external foundry model. They do have a lot of wood to truck from here. In a minimum, it looks like the business has bottomed. I guess you have to start somewhere. So your top picks are nvidia and broad calm. But i want to ask you the question this way. I think the story is well known. I had a Portfolio Manager within the last day or so on this program suggest amd over nvidia. The point being, the nvidia story is mostly known. Its in the price. Amd has some new chips coming. Amd has some new chips coming, and lisa sue deserves some, you know, good feeling here, to, not just giving everything to jackson wong. Sure. Lets take that. Nvidia is not an expensive stock anymore. And i can still make the argument that those sell side forward earnings may still be too low. This has been the scenario with nvidia. The stocks have gone up a lot, but the earnings have gone up a lot more. It is actually not an expensive stock if they think they can make the numbers. I think they may even be able to do better and thats what makes this product cycle incredibly strong. They are not done by a long shot. I think there are some tactical concerns. Theyve got a very big ramp built into the back half of their business. I think that is doable. Most of it is the el capitan supercomputer. The street estimates, that may prove to be a little overly optimistic, so i think theres some tactical risk to the numbers. And another ai story, its not really happening until next year. Weve only just barely sampled the parts, so at that point, and video will be launching blackwell, which is their next generation part. There is some i have sympathy for, which says the opportunity is so big, it doesnt matter. They will get 5 , and i would say, if that happened and they got 5 billion, yeah. It would probably be a good stock. A scenario that that is that big, i would rather own nvidia in that situation. I think the demand is there. We will leave it there and continue next time. Thank you as always. Up next, fivestar stock picks. Kevin simpson is back, bringing down his latest trades and how he is navigating all of the sons certainty in the markets. Thats all coming up next when closing bell comes back. captivating music the first law of thermodynamics states that energy cannot be created or destroyed. but it can be passed on to the next generation. you founded your Kayak Company because you love the ocean not spreadsheets. You need to hire. I need indeed. Indeed you do. Indeed instant match instantly delivers quality candidates matching your job description. Visit indeed. Com hire we are back. The major averages bouncing off session lows as stocks grapple with the hotter than expected inflation read. Our next guest, making some big moves within his portfolio and seems to always be doing that, which is why we like having kevin empson here to tell us. You are pretty active in the market. What does that say about your psyche and where we are right now . We are still trying to find opportunities. Some of these moves are because the stocks of over performed we are bailing on things. If a relative stock loss, independent apparently, the penalty is too much. He did a great show earlier this week about growers, which is a world that i live in. I feel like theres momentum starting to build up under the surface. Big distinction. I think the high dividend stocks for many years was a proxy for next income. You look for that when theres no alternative. Now you can get five, 6 of the money market now, and that feels great. I some i saw something that said there was 5 trillion in money market right now. Not surprising. We had a bunch of focus on naples docs that have gotten hammered. Some are rebounding nicely. Pepsi stock was up. You sold general mills. It speaks to sort of this pain you endured, and i suppose you threw in the towel and that, enough is enough. Thats a problem. I cant believe how poorly it has traded, we want to have a relative discipline, we are what to it. We still have exposure to the space with cocacola. It has performed well, if it has anything to do with what pepsi did to kind of mirror that. Did you buy more cocacola . On his low back . We havent done pepsi in quite some time, we have been buying cocacola pretty aggressively on the pullback. I think that there is value there. Theres a dividend growth, just a stalwart company. I think coke will follow. You bought more cisco. Cisco i bought for the first time in a long time. And that wasnt really the catalyst for it, but i think if that does go through, it does help with a lot of things having to do with cyber security, software, its a company that even in the absence of this deal brings money. The 3 dividend, its just a constant pipeline for cash flow for shareholders. This next one is an interesting move you made in this bill unfolding story in the middle east, and we dont know which degree its going to escalate the aunt where it obviously is. You trimmed lockheed martin. The day after the news broke, the first trading day was monday after the weekend, you saw the fence stock shoot higher. You sold into some of that strength . We been selling about. 450 for relative underperformance. Thats how lousy the sector stock has been. Were looking at this opportunity that speaks nothing to what happened over the weekend and more to the fact that i think there is dysfunction in washington and is going to take some time for them to get their act together, and that they support israel and continue to support the ukraine and still have some lockheed martin. We have been selling it purely as an underperformance and relative price movement, having nothing to do with the tragic events. Sure. But if you think the defense spending is going to continue to increase, and maybe, you know, the defense hawks, if you would, are even more bold and now to put more money into defense, wouldnt those continue to go up . Ive had such a lack of confidence in washington over the last year. I hope we can get back into that stock. Its a stock id like to buy again. If we are looking at it from here priceperformance, we cant wait it out. You really covered visa. We wanted to write a call into that strength. Theres been a lot of volatility. Thats only 4 of the money, scott. But if you annualize the premium, it comes out to a 25 annualized union. We fight for every penny. Always active, some kevin simpson. Thanks for being here. L lanning. Up next, a stunning testimony in the sandbank and free trial. You wont believe some of that testimony, in fact. We are life from outside that courthouse right after the closing bell. Will be right back. Together, we built something truly beautiful. It takes years of dedication to get to this milestone. The New York Stock Exchange is a symbol of what america is all about the potential of an american dream. It is day one. A lot of work has happened to lead to this historic moment. The only way you can move a Society Forward is a true expression of freedom. were going to go back to Pippa Stevens now for a look at the key stocks she is watching with about 15 minutes to go. Is caesars is higher, a buy rating on the dock. Raises its price target on the stock. Its created a solid buying opportunity and the catalyst is on the horizon, like the upcoming f1 race in vegas and next years super bowl. Solar Company Technologies jumping after goldman upgraded the buyer rating. The new 28 target includes 60 of the potential based on improving Gross Margins and strengthening utility scale. Share still down 17 in the last month. Thank you so much. We are following, as i said, the latest development in the sandbank when free trial. Caroline ellison, his former girlfriend on the stand today. Kate rooney outside the courthouse with the latest. And to stay the least, this testimony today has been shocking, if not explosive, kate. Scott, that is completely right. Ellison has been calm and collected. She broke down on the stand this afternoon and started crying when the prosecution asked her about what was a chaotic week when their companies filed for bankruptcy. She said she felt an overwhelming sense of relief when the chat truth finally came out. They showed some tax between them, and she said, the best mood ive been in in a year when this is all going on. She did feel a sense of guilt about some of the people who we entrusted us and betrayed. And trying to raise emergency funds, they named names like sequoia, apollo, silver lake, they were trying to get investor money, and earlier today, she described living in a const in state of trend. Every day, she said she was worried about not being able to meet withdrawals. She said he knew about this. In order to plug the hole that he has, she said he tried to raise money from the saudis. In particular, Prince Mohammed bin salamon, and at another point, she said alameda executives paid a 150 million bribe to Chinese Government officials to unlock some of the accounts they had on a chinese crypto exchange. It has been some tension between these two in the courtroom. Both are avoiding eye contact. Big ben freed looking stressed at certain points. Testimony continues this afternoon. We will bring you the latest. Thank you. Last chance to weigh in on our question of the day. Would you bought by the birkenstock ipo today . Had to closing bell on acts. Weavth he e results just after the break. Im maria alvarez, owner of marias cakes. And im axel, proud to be her state farm agent. Her baking superpowers have brought sweetness to our community. I make delicious cakes to make special occasions even better. Maria doesnt just bake; she also creates opportunities. Small businesses like marias, open doors for communities to thrive. Support your community. Support small business. To the results of our question of the day. The majority of you wow. Thats a big discrepancy. One of the largest i think weve seen ever. 89 they know. Remember, price 46, trading well below that right now. Including some breaking news from our own leslie picker. We will drill down what is behind that jump and how its impacting other parts of the healthcare sector. That and much more when we take you inside the market tone. Theres challenges, and i love overcoming challenges. When better money habits® content first started coming out, it expanded what i could do for Special Olympics athletes with developmental needs. Thousands of bank of america employees like scott spend countless hours volunteering to teach people how to reach their financial goals. It felt good. It felt like i could take on the whole world. Power e trades awardwinning trading app makes trading easier. With its customizable options chain, easytouse tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. E trade from morgan stanley. Power e trades easytouse tools make complex trading less complicated. Custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. E trade from morgan stanley. We are now at the close of bell markets. Mike sent holy here to break down the crucial moments of the trading day. Leslie picker is with us on birkenstocks market debut, and some breaking news coming up. And angelica on nordics latest breakthrough, and the impact its having on a number of docs today. Back to green, as we approach the close. A lot of the mega cap names a little volatile today. Most are green. It was relatively comfortable after a few days ofs writing higher. I do think that we have big picture, the evidence of 100 crude oil is not really with us at the moment. We have yields coming off the boil, and fed officials not looking to work too hard to add to the tightening conversation. That to me, also seasonal factors are starting to work in your favor. That explains how we got up to where we are. Is it interesting to me that for a second day in a row, the s p 500 tries to get above one of these very widely watched levels, and that is like, the bottom end of the zone were people think that maybe we can hit some friction. We will see if it does or not. Yesterdays high was about 10 points higher, but it does seem that once the market breaks down and what you have some of the macro factors look less scary, people suddenly feel underinvest. You really did have a lot of aggressive liquidation, especially by the systematic traders coming into last week. We mentioned its been a bit of a rough debut, if we call it that. And you have some breaking news forests, which im really hyping up. I dont know if its i hope we can deliver. But just, kind of as you do the step backs, of why would you lead toward the client on the first day of trading, especially with something that price for the middle of the range or below the middle of the range, it down 12. 5 right now. Just chatting with some sources, getting some color on what that looked like. At the outset, you dont see any major issues here. Im told that the vast majority of the allocation, was with top 20 investors. These are people that you work with to ensure that they are holding the stock for the long term, not flipping it on day one. Only about 5 retail, 5 hedge funds. You see a bigger proportion of retail, bigger proportion of refunds. That will indicate potential issues because the risk of them flipping is higher. But heres the big challenge with this one. Valuation. This is not a market where you push on valuation. Im told that during the process and these conversations, there were a lot of discussions about valuing this company on the basis of especially these brand footwear calms trade on price to earnings. It looked somewhat more favorable for birkenstock, and therefore, thats kind of how these valuations were justified. Even though they price in the middle of the range, it didnt necessarily guarantee a higher more demands. The investors in the market are just kind of sick of it. This is what is really interesting about the ipo market right now, because we have enough of these deals that we can kind of figure out where the similarities are. We are seeing all these deals get oversubscription numbers. He saw the writers piece from last week that this is going to price behind because they had enough demand there. Look what happened. But then you also are seeing such languishing aftermarket ordinances. The weird disconnect between whats going on in the roadshow and whats going on in the aftermarket. That is something that i really havent seen in my 10 years of covering this. I think that lived up to the hype. I mean, where else are you going to get that kind of detailed information . Angelica. Novo nordics. Big story today, not only for that company, with the residual impact on many other stocks. They are ending a trial about one year early, and that trial was looking at olympic, which is the diabetes drug. That trial was looking to see if people have type two diabetes and chronic kidney disease, to see if that would help slow the projection of the chronic kidney disease. And its really a good thing that they are ending it about a year early, because it means that it already met the threshold to declare that. And they are saying that they will have the full results early next year, in the first half. We will see more than, but investors are really excited about this, because could be another opportunity for those and pick. Thank you, angelica, for that. And the impact on some of these others docs has been pretty dramatic. If you look at some of the hospital names and then the medical device makers are almost all down. I had someone reach out to me in the medical community and suggest that this looks way overdone. Yeah, its clear investors are very skittish. What they see is very few beneficiary disruptors and in an entire industry that can be, in theory, disrupted. There deftly rushing to price those things in in an aggressive way up front. I do think that when it comes to certain types of medical devices, ive always had this the first element of the bouquets for a lot of these Artificial Joints and knees was, the average age of americans is going up. It was very much part of that story. Its really a refuge to the twentysomething percent. Less kidney disease, youre going to have less demand. But i agree with you. People are kind of selling first and we will figure it out later. Its the knee jerk and the reversion. You can almost look at it like, look oh google traded down on a relative basis. They all of a sudden decided they were going to be in that loose stock. They were up 40 year to date. Its up 4 in a week, so we got about a minute left, and lets focus on what needs to happen tomorrow morning from a cpis 10 point after the ppi perplexed some on where inflation is going from here, and it definitely had an impact, it would seem, on the bond market. It halted some of the buying on the short end, for sure. Obviously, its the core. Everyone is focused on Core Services outside of housing. Lets see if theres any surprises in there. If not, i think the market can live with it. The responses to the cpi number have not been all that dramatic increase month, because the numbers of incoming and relatively close to estimates. Its not as much of a Spring Loaded release as it was last week. But the bond market if in fact, we can take any comfort in that. The folks for more mel here, they are talking. I guess they had good reason to. Wheres the chili . I will send it into overtime. How about that . Thats the scorecard on wall street. Im here with morgan brennan, and head on the show, Artificial Intelligence stocks getting a boost this week, and an accounts analyst has put a price target on nvidia. That applies another 50 upside. Plus, we talked to the ceo of online marketplace stock x about birkenstocks. A flat footed debut, and the