It boils down to a simple question, are we set up for a yearend rally or not . I think thats what our viewers want to know more than anything else. I think its possibly. A tug of war between high Interest Rates, geopolitical tensions, valuations that are high, and an economy thats strong, earnings are delivering and a consumer thats remaining resilient. I certainly think thats a possible outcome. Lets remember, if we rallied back to those july highs valuation becomes an issue again especially if its driven by the stocks that the magnificent 7 and rates have stayed higher, you have those same tensions at that point. When we look over the last two years, scott, markets havent gone anywhere, since june, markets havent gone anywhere, but were seeing a loft opportunity you underneath the surface because of the narrowest of these stocks, so i think the answer is yes, you have to be a lot more selective. 11 of the s p 500 reporting this year, netflix and tesla, those are critical. Yields are up a little today. The tug of war exists between the bulls and the bears on the yield front in some respects, yes, were up a little bit today. But theres at least according to the bulls of this the pivot, the bear case they dont care about this alleged fed pivot or not. Theyre like, yields are still going to remain high and the lag effects of tightening are yet to come. Which side do you fall on . Well, i think this short term oscillation that we talked about last weekend and scott, were going to get plenty of ammo from the fed this week, lot of people out speaking, we got powell here in new york on thursday. And so i think, this bull bear tension is really about what are we talking about, are we talking about the rest of this year, and i agree with rob, we certainly could be setting up for the potential for, you know, a high equity market from now until the end of the year, but the longer term lags of these rates it continues to be the open question coming into 2024. And how does that impact the consumer in particular, i think the other thing that you touched on is, you know, whats happening from a perspective on the rate market right now, we were worried about u. S. Debt and we were seeing the yields were ticking up higher and higher and higher and didnt seem like much of a ceiling over the last few weeks, then we have whats obviously happened in the middle east, youre seeing a little bit come back in the market, some additional positioning coming into the end of the year with people needing to bolster their fixed income exposure ahead of december 31st, you could get a bit of incremental treasury demand. All of that, though, is inconsistent with our view of 2024, which is going to be a more challenging environment and more dispersion underneath the surface. There are going to be winners and losers next year in the equity market and unlike this year, when we had a very small contingent leading the returns, we do expect to be more stocks that show forces in a more challenging environment. I want to focus on the next 2. 5 months before we turn our attention to 2024, weve had a good year in the major averages, under the surface the performance of nonmegacap tech hasnt carried through. What do you see it between now and the end of the your . 2. 5 months, are we set up for some kind of significant move higher . So, i think i think that we are and i would tell you that and i dont mean to start the show off disagreeing with rob i dont see valuations being the problem even if we do get back to the old highs that he sees them as, the russell 2000 has a p. E. And the mid caps of 13. The stocks arent expensive. Phenomenon of the magnificent 7 is whats making the market, the market looks like valuation might be an issue, solely because of the massive outperformance and the proportion of the indices these stocks take part. Theyre a huge component. Thinking about stocks as an asset class, the valuation is not the thing thats going to stop us here. I think the bigger concern is, can yrates spike in and commodiy spikes. Two reasons why were not set up for success. But assuming we dont see anything abvernt on that front, i would point out the best development that were seeing today away from just the headline index gains is brent. Last week, something very important happened, for the first time in ten weeks, we finally saw a contraction in the new lows versus new highs and thats for all stocks trading on the New York Stock Exchange and nasdaq. Last week it stopped. Thats way more important than the forward p. E. Ratio of the s p 500 just in terms of the behavior of what companies are doing in the buying and selling. 92 of the s p 500 is up today. Thats the highest reading since april of this year. So it looks as though youre getting that improvement for the first time in a long time, every sector is green. 8 of 11 sectors are up more than 1 . The only sectors arent, utility, healthcare, real estate, the usual suspects. For us to be experiencing for what weve been experiencing, geopolitically and only seeing a vix of 17 is absolutely remarkable. Earnings are coming up. So far, so good. Tech is going to be the most important. Two weeks of tech and Communications Services that are going to decide this thing, but if we get through those and a low to mid 70 beat rate thats where we end up. We justshowed the wall with all the green on it, joe, its a really wide day today for the market. Tony, the head of Goldman Hedge Fund coverage, said, the path of least resistance is higher from now until the end of the year. Confident in durability of the economy. And also likes the setup for tech stocks, calls it compelling. Sounds like, you know, how youre playing it, joe, youre expressing your bullish view through tech. In the qqqs. How were going to be able to progress higher. Yes, very thoughtful, wellwritten note by tony, i agree with all of it, its very rare, scott, that leadership in a year where youre seeing a positive performance overall for the s p 500, its rare that leadership would change this late in the year, its not as if here we are, october 16th, suddenly technology is going to take a backseat, youre going to see ochl the value leave the market, no, in fact in a positive year, its generally the leadership that will tend out to close out the strongest. Thats what im positioning for, thats what im seeing in market. Two of the more critical stocks in terms of the generative a. I. Story in 2023, theyre not going to be reporting in october, theyre actually going to report later in the earnings season, so nvidia will report in days s preceding thanksgiving. So theres potentially more positive news to act as a catalyst on the other side of the earnings and the fmoc report. The markets today to joshs point its a very, very strong cocktail of positive dynamics, first of all, you have a 10 year and 30 year yield which is rising. Market is shaking that off. Youre seeing very strong buying in futures market for both the s p and the nasdaq and crude oil is not trading with that heightened sense of urgency that it was trading on friday with the concerns surrounding geopolitics over the weekend. I like the entire dynamic with how were set up here today and its indicative with how were going to set up for the remainder of q 4. Josh makes a good point the valuation of the s p 493 is not the valuation of the s p 7. The magnificent 7. Those drive the market. Its hard to say broadbrush statement that valuations are too high when the overwhelming majority of stocks, you know, if you look at the equal weight s p for example, what valuation are we talking about s p 49315 times . Reasonable, theres opportunity outside the magnificent 7. But when you talk about whats going to drive markets its going to be the capitalization of those names thats going drive performance until the year end. What they do have going for them is window dressing, if you take the playbook from the previous two years and youre coming into yearend youre buying the winners and tax harvest the losers. A setup where Technology Got hit, it rallied very hard. Energy got hit the year before, it rallied very hard. So if you push that playbook to this year, you could see very much the same thing, now what that does set up is for opportunities selectively and i just be mindful of the selectivity, here are some of the issues out there, smallcap stocks, despite their valuation are deeply impacted by the financing markets, much more than their larger competitors, theyre impacted by supply Chain Management and cost of labor, so you have to be put all these things in your calculus. Is that not understood by the markets . No question its understood by the markets. Why does money keep going into the megacap names, why make it more difficult because theyre delivering on earnings. When you say, you know, you have to be, look under the surface for stocks that are going to do well, the prevailing thought in many corners is, dont make it harder than it as to be. From the beginning of the year until now, you can take you from here to there again. They reached valuation levels in real rates were climbing which is what the fed wants. Shannon, jn than said its just a matter of time. Just a matter of time until winners to come. He talks about tech. Its going to catch up to tech eventually. You buy that or not . Well, i mean, i think hes really looking at it from a mean reversion perspective and we have all these potential head winds coming into next year and why wouldnt you see that particularly because, you know, think joe or josh, one of you guys made a great point of the sectors underperforming today and theyre the defensive sectors, scott, there needs to be capital if we do see continued Economic Contraction and more caution in the first half of next year, that money has to rotate from somewhere. I think of it as rotation standpoint than fundamental flaws. Weve argued about this several times on the show. Cash flows, continued top line growth, ability to engineer that, thats what megacap tech has. Its about a rotation that we need to be happening to find investments in more defensive parts of the market and its more about the timing of that more than anything else. I think thats the question youre asking on the show today. Joe, im not sure theres going to be selling of those stocks to fund the buying in other areas. Now, let me bring up, too, you know, joe, we have an update, everyones been talk about the broad strength today, let me see apple, if i could see, intraday, before the program, that stock was red, which is unique in and of itself today. Its still red, why, because jeffries talking about iphone today being outsold by huawei in china. Sales are down 14 . One of the worst debuts in china for the iphone since around 2018. How much does this matter . I think it matters. Obviously, specific to apple, listen, the news came out earlier this morning and the market went down initially off the news the nasdaq futures came right back once again, so its specific to apple and i think theres enough broadbased strength in the megacaps that well see resiliency to the degree in which apple is going to be the weak link i dont think thats going to be the catalyst that reverses this overall positive trend. Yeah, rob, look, you own apple, youve been trimming it, you said today that a call on apple is a call on the market. Its neutral. Square those thoughts for me. Were set up for a modest run, maybe back to the july highs. Were not in the camp that were going to see 4700 on the s p. Were neutral apple, recognizing that were longterm owners of this stock and we have valuation discipline which may or may not be valued by others on this show but when the stock gets expensive we trim it down the trading rangers, you can trade these bookends to create opportunities to buy other types of names and so apples a great business, but youre in an environment where theyre expensive, having some deceleration in their business and being overweight doesnt make sense but because of the large cash balances they have an incredible ability to manage their shares outstanding and were not selling it for our longterm investors. Your thought on apple the significance of, you know, again, big up day and yet this stock is red and some significant concerns about the strength of the 15 . Theres no question that geopolitical tensions between the United States and china are an issue for apple, no question that apple has an uphill battle right now, id suggest this idea that things necessarily have to get significantly worse there is simply not true and thats why the stock is only off 1 today, its important to point out that apple is foxconns most important customer. Foxconn e employs 1. 2 Million People in china to work on things like, iphones, they are a top ten employer in the country of china, theres a very high degree of depend dense on these various entities. I think the market is smart and understands that. If you opened up the wall street journal and said, apple is struggling in china youre really not paying attention and i would hesitate that theres some sort of Market Impact coming to that insight today in october of 2023. So if thats the big drag on apple itself today, thats okay so be it, this is still one of the bestrun companies in the world, obviously its a premium valuation. Theyve earned that premium valuation. This is a stock that we need to hold up until yearend if were going to get that rally. Real quick, too, its not insignificant the business in china, 20 of apples revenue comes from china. If huawei has gained back a significant part of market share, the company exhibited slower revenue growth, apple and the iphone drives the whole boat, which it really does, thats certainly something to keep an eye on. Up next, cais founder, cha chairman, matt brown joins us. Dont go anywhere. We have a big show still ahead and were back in two minutes. Cmon, were right there. Cmon baby. Its the only we need. Go, go, go, go ah touchdown baby touchdown are your neighbors watching the same game . Yeah, my 5g Home Internet delays the game a bit. But you get used to it. Try these. Theyre noise cancelling earmuffs. I stole them from an airport. Its always something with you, man. Great solid greek salad . Exactly dont delay the game with verizon or tmobile 5g Home Internet. Catch it on the xfinity 10g network. We got a good day going on the market. Dow better than 300. Were back on the half. From Beverly Hills. Investors look to maximize returns at a higher rate environment. Joining us is matt brown, cais ceo. You have an interesting product that you directly connect Financial Advisers and asset managers, correct . Thats correct. How does this work, they can translate directly . What weve done is connected with the independent Wealth Community with a host of alternative asset managers, real estate, hedge fund managers, giving access to each other. Such an interesting environment that were in a new environment relative to where return expectations are in Public Markets, Interest Rates are high and some suggest theyre going to be higher for longer, what does that mean for alternative allocations . Were seeing a new era of access right now, average allocations to alternative investments have been quite low, below single digits. Institutions are close to 40, 50. Over the next decade, what were seeing a huge shift in allocation, the rise of threedimensional portfolio. More of a balanced 50 30 20. The big news there is, this is one of the biggest reallocations in finance, upward of 12 trillion will be reallocated from Wealth Management into alternative investment and hedge funds, private credit, were talking about private equity, im curious, as to someone whos running a Wealth Management firm, how youre thinking about the future of what the portfolio looks like, the way matt describes its no 60 40. It cant be. We talk on the show on our show every day about liquid markets but theres structural advantages in private markets. Diversification. When you think about forward returns, and achieving actuarial targets what some do all the time, theyre thinking, i have a 5 actuarial target how do i achieve that in a world where they may be coming down, and the level of control that can be exerted in the private markets is substantial both from an operating leverage standpoint, Financial Leverage standpoint and then opportunities that are created where forward returns move higher, when Public Markets get scared, private markets step in to take advantage. European debt crisis. Banking crisis. Private credit emerges as another solution. Yes, the cost of executing in that space has gone enormously higher because of the Interest Rates going up and so returns come down, but there are so many levers to pull as longterm investment owners versus traders. You think that, you know, ria have an easier time selling alternatives to their customers the typical mom and pop investor. Well, first of all, were a b2 b platform, theyre not selling, theyre advising, theyre building portfolio and convincing the average investor i think right now, the story is out there that the 60 40 isnt working and thetrack record of private equity, private credit, Hedge Fund Strategies are delivering return, thats pretty well proven, advisers right now dont lack demand for them, they lack access and education. As the platform steps in as the technology to make sure were arming the financial adviser, being the copilot if you will making sure theyre allowing for great products like alternatives to get into the portfolios to improve portfolios. I have a question, you look at the community, many of them are boutiquey, access is important to this, huge selection risks in the space, a company like yours is really stepping in to help those advisers not just construct but to get access, what has the adoption been like in that population towards these assets as they become more and more important. The adoption rates per case have been growing exponentially. The Adviser Community has had the demand but just lacked the tools to be able to really source, value wait, learn about the strategies and implement and execute fficiently. Manual processes that have burden the world of alternatives have gone away with platforms like cais. So, were seeing huge adoption rates. We measured that. We also measure deepening wallet share, to extend their relationship with their existing client. Many advisers believe that that their clients arent talking about it because theyre not interested. Were arming them to have a more holistic approach. Amazing statistic on this, if you look at institutional allocations, both rate of return and standard deviation, 2 lower than standard deviation. Excited for us to talk about something beyond stocks and bonds for a change. We just dont do it that a un. Our viewers are always looking for ways to make money in what is a changingened evolving environment. Thank you for having us. Best of luck on an exciting conference. Thanks, guys. Matt brown, chairman and ceo of cais here in Beverly Hills. The headlines. The u. S. Attorney is opening up federal hate Crimes Investigation in illinois when a 6yearold palestinian american boy was killed and his mother was injured. The suspect allegedly stabbed his mother and boy because they were muslim. Only about 24 hours for aid to enter gaza before the region runs out of water, electricity and fuel. Aid for gaza is currently stuck at the Border Crossing with egypt, the regional director said if time runs out a real cat strophe steps in. The Biden Administration reached a deal with the 4,000 migrants that were separated at the border under the trump administration. Allowed to live and work in the u. S. For three years while they apply for asylum. Scott, back to you in Beverly Hills. Up next, ark invest ceo cathie wood. I think im ready for this. Heck ya with e trade youre ready for anything. Marriage. Kids. College. Kids moving back in after college. Finally we can eat. You know you make me wanna. And then we looked around and said, wait a minute, this isnt even our stroller laughing you live with your parents, but you own a house in the metaverse . Mhm. Cool. I dont get it. Heres to getting financially ready for anything and heres to being single and ready to mingle. Whos ready to chacha . yeah, yeah powering Sustainable Growth in a changing world. Powering Financial Solutions that transform industries. Powering innovation with access to capital. Powering critical decisions with precise data and insights. Powering seamless execution in evolving markets. We deliver our entire global bank to power new possibilities for you. Barclays corporate and investment bank. Powering possible. 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. your shipping manager left to find themself. leaving you lost. 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 explore endless design possibilities. To find your personal style. Endless hardie® siding colors. Textures and styles. Its possible. With james hardie™. Were back on the Halftime Report today. Bitcane is rallying as we move one step closer to the firstever bitcoin etf. A special guest, bob. On a spot bitcoin e tf. Ark invest ceo cathie wood. It looks like the s. E. C. Is going to be forced to approve a spot bit coin etf. What conversations have you had . It was publicized and disclosed last week that we had responded to the request for information around our bitcoin filing. And we responded and thats basically all we can say. I think many people think the fact that the fed i mean the s. E. C. Chose to ask questions is a change in behavior and therefore i do think hopes are rising that a or a number of bitcoin etfs will be approved. My understanding is the court now is going to issue a mandate about how to enforce their decision here to the s. E. C. And theyre going to basically follow that mandate, everyone is assuming at this point theyll probably approve most of the bitcoin etfs by the end of the year. Right, i do believe maybe the reason theyre saying by the end of year, early next year, our final deadline is january 10th and i think were first in line and as you say, a number of a number of bitcoin etfs could be approved at the same time. Ark invest is up 20 this year, outperforming the s p. Significant outflows this year, can you talk about that . Youre outperforming yet youre having outflows, tell us what Impact Higher ratesare having on your holdings this year . A couple of things going on, if youll remember in late 20 and early 212 flows were enormous into our funds and i was uncomfortable at the time because we thought that there was a lot of momentum chasing going on and we said at that time keep some powder dry, little did we know how big the correction would be, this is sort of the flip side of that, were feeling much more comfortable right now, but we did have, through july, a very significant rally, i do think theres some profittaking there. And i do think as you say Interest Rates rising rates have concerned a lot of people, theres been a shift into cash and weve seen very recently a shift into bonds. And interestingly the flows into bonds would suggest that we should not be far behind, because if bonds are going to rally and we think they will at some point here, as inflation continues to come down as the economy continues to go through rolling recessions of sort, we think that the backdrop will be right for a resurgence in Growth Stocks generally and in particular long duration, growth assets like ours. My colleague scott has a question here. Hi, cathie. Great to have you back on the Halftime Report. Given what you just said, do you not believe higher for longer . I dont. And we dont. I should say. If we were paying attention to Company Earnings and some of these are companies were exposed to, others not, youll see at both the high end and low end of the consumer spectrum in terms of price point, youve got lvmh, both last week, were paying attention to Company Reports and i understand the Economic Statistics are volatile and showing strength and then weakness, were paying attention to our companies and it does seem like the consumer is starting to give way here. Yeah, interesting. Let me ask you about a specific stock that you sold and thats nvidia, do you regret selling it, you called, quote, really expensive, i will note the former p. E. Nvidia is half of teslas. How can it be so expensive without tesla being so, do you regret selling it . We own it in our specialized funds. Weve taken it down everywhere and this is portfolio management, we see nvidia, you might say its less expensive than tesla, we think the upside surprises on tesla during the next five years, remember, we have fiveyear investment horizon, substantially more than nvidias. Because most analysts dont believe awe on the us now, as a taxi platform for tesla is going to be pa part of the story, we disagree and with that we see incredible margin expansion. Nvidia is already high. Teslas are in the 20s and we think they will scale into the 60s and 70s as autonomous takes on. Tesla is the biggest a. I. Projects, autonomous project. Nvidia has been critical to providing the infrastructure to enable this and so many other things to happen, all praises to nvidia. We think that a lot of people understand how important nvidia is in this ecosystem and they dont understand how, how much each dollar of hardware spent is going to pull software through, we think its on the order of 20 times. So we think nvidia is going to be a good stock, we think the stocks in our portfolio and weve written a paper on artificial intelligence, entitled investing in artificial intelligence, where will equity values surface . You can read that on arkfunds. Com. Many think that the winners are going to be the megatech companies. Who have had such Strong Performance over the years. Were not sure were not sure, chatgpt could be the best thing that ever happened to google and it lit a fire under google to get its own a. I. Into the market more profoundly. Or it could be the worst thing in that its going to lose its advertising platform if were just on chatgpt looking for our answer and much more with cathie wood coming up at 1 10 eastern time shell talk more about bitcoin and shell talk at her concentrated tech investment picks including more on a. I. And her new foray into european investments. Thats etf edge on cnbc. Coming up, the pulse of the big money, how one top ranked wealth adviser is navigating ntis environme. Were back in just a couple minutes. This thing, its making me get an ice bath again. What do you mean . These straps are mindblowing they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. And you are . Im an investor. In invesco qqq, a fund that gives me access to. Nasdaq 100 innovations like. Wearable training optimization tech. Uh, how long are you. Im done. Im okay. Im so glad we did this. Im so glad we did this. Im so glad we did this. Im so glad we did this. Im so. Glad we did this. [kid plays drums] life is for living. Lets partner for all of it. Im so glad we did this. Edward jones every day, businessess. 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. Strong day on the street, were back on the half live today in Beverly Hills from the cais alternative summit. Wealth managers are rethinking how to construct wink fort polios in that environment. Also barrons hall of fame o adviser list. Great to be here. Conversation we had with matt brown a little while ago the future what was the 60 40 portfolio, is it dead, evolving, how would you describe it . I would be hesitant that its dead. It certain le evolving, however and the way theyre thinking about portfolio construction these days is that fixed income is back, rates are higher, fictioned income is back, i think it will be. Here for some time. We think it has an important place in portfolios now. If anything people should be locking in, we saw the 10 year treasury at 4. 7. This morning and theres reinvestment risk that people need to take into account and mitigate. But were also seeing increase from a portfolio perspective to recognize whats happening in the markets. Talking about the magnificent 7 and how they dominated the s p 500 were very mindful of that. All the performance this year has been in is p s p. Thinking about how to diversify around that. I would also say, with the help of cais weve been able to build up our exposure to private equity, private debt, private credit, on the private equity side weve now launched our fund with the help of cais. And increasingly what were realizing is that we dont need only to rely on the Public Markets for equity exposure, in fact while were at an alternative summit the way were seeing private equity, its an equity allocation and i think well see more of that because theres so much in the area of private equity and also because companies these days arent as reliant on capital, capital intensive because of the advent of technology. What percentage makes sense for, look the viewer who watches us, we talk about stocks 95 of time, what percentage makes sense to have in your portfolio and will that portfolio only increase as we move forward into a lower return environment . Yeah, sure. Ill give you a range, i think that you should be looking at anywhere from anywhere 10 to 30 , ill say this as well, again, its a question of whats an alts. Private equity, private credit. While we call them alts generally, private equity is really equity. Private credit is really credit. It depends on how you define these things. You have your private strategies, alternative strategies and then you have reals a at the times. In in terms of alternative strategies, what i would say is in this age of higher rates, theres frankly, less need for it because you can theyre generally designed to offer the kinds of stability and returns, yield income that fixed income can. So i think were seeing less emphasis on that. Josh brown who is on our program today has a question for you. Josh . Hey, michael. Isnt there some element of driving in the in the, you know, looking in the Rearview Mirror . A lot of the quote, unquote, diversification benefit of private equity versus public equity or private credit versus public bonds really just comes from the fact that you dont have daily volatility, you dont have price quotes. The people that go a 90day period of time thinking they havent experienced the same volatility as were getting in the public market, but then they find out later that there was a lot of correlation after all. Could you speak to that for a moment . Josh, what a great question. I really appreciate that question because it also sheds light on the importance of educating clients about what you just described, which is that when youre investing in private equity, it often looks a lot less volatile than it actually is, and youre absolutely right that people need to be educated, that despite the fact that, you know, youre seeing is in frequent reporting and market to market that there is volatility and you need to be mindful of that. Im just speaking to the fact that private equity is becoming more and more mainstream. Organizations like the case make that a lot easier. Indeed, were finding that that theyll work with the independent bias of the registered Investment Adviser because we increasingly have the depth of knowledge, the size, the scale and the ability to bring clients in an efficient manner into these structures. I appreciate the time. Thanks for being here. Thank you so much. Thanks for being here. Thats Michael Nathanson in Beverly Hills. Up next, the chart of the day is a Retail Stocks llngrayi the news in the s p 500. Joe owns it, well trade it and well do it next. When you think of investment risk, do you consider climate risk . Changing weather patterns are impacting the way we live and the value of businesses large and small. This can mean disruption to supply chains, changing demand for products and shifting regulation. What does this mean for your business, your clients, and your investments . Ice offers data and markets that can provide critical insight. Manage your climate risk with ice. birds chirping go. And go and go and go. but what if you. Stop . You work hard, its time for a bank thatll work hard for you. Everbank brings security and a guarantee that youll earn a yield in the top 5 of competitive accounts. Going, thats what got you where you want to be. Were the partners for your next move. Everbank. Advantage, you. Welcome back. Lets get to the chart of the day. Its lulu. Up 10 and its going in the s p. You own it in the t. It sure belong in the s p certainly the way that its embedded itself in society and when we look at the retail space this is the one retailer that hasdelivered consistent revenue growth. I also think the viewers need to think about lulu lemon in a nuanced way, and that they are benefiting from the glp1 weight loss drugs. Weve got a society thats going to evolve into the need for a different lifestyle, a different apparel and lululemon will benefit in that regard. So, shannon, how do you perceive discretionary and do you have it in the higher end with Everything Else or how would you describe it . I agree with joe on this that it is perceived to be higher end and what were not seeing, scott and whats unusual about this particular cycle is were all coming on talking about the potential for the consume tore slow and yet higher end retailers, lulu as being a great example of one are not experiencing pressure that you would expect in this cycle because were not seeing higher income households trade down yet. So, again, you look at the pressure Dollar General and with target in the middle of the store. Lulu is not experiencing that pressure because higher income consumers are just in a better place. Ea yh. All right. Quick break. Come back. Final trades on the other side. We have a big one on closing bell today, todd boehly, the eldridge ceo and well talk about tech and media and sports and a whole lot more and well do it right here. I hope youll join me in a couple of hours in this conference. Lets do final trades. Shannon saccocia, you go first. Ewj, the japan etf. We think that the yen will remain suppressed and valuations are not nearly as demannding as they are here in the u. S. Market. All right. Josh brown . Uber. The stock looks like its ready to make its next move. I still like the company into year end. Nice winter today. Uber, joe t. . Interactive brokers. Take a look at the chart. Its pulled back nicely toward the 200day moving average and it gives you point of reference for the stock. And rob sechan. The mother ship. Comcast, trades at 11 times 30 discount to its peers. Well see all of you on closing bell. The exchange is now. Thank you, scott. Welcome to the exchange. Im kelly evans and ahead this hour, new week, new narrative. Stocks and yields are both moving higher today. Strong earnings helping on that front, but deficit concern remain as the tenyear treasury yield rises. Well talk to two heavy weights in just a moment about the big issue that investors arent paying enough attention to and see what can be done to fix it