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To strengthen names like amanda. It is a big day for earnings. Take a look at some of the biggest earnings winners. Vantec names like paypal, robin hood, sophia, surging double digits. Cvs is jumping, too, taking the drug source higher. There is moderna up up 70 leading the s p 500. Ahead, carlisle groups the David Rubenstein will join us with his thoughts on the market rally, the state of public equity, antiInflation Reduction Act. Lets get to this route it was talks surging even as a number of officials came out with a hawkish tone. Here is jim bullard, st. Louis president. We still have some ways to go to get to a restrictive monetary policy. I have argued that with the hotter Inflation Numbers in the spring, we should get to 3. 75 to 4 this year. San francisco fed president mary daly told reuters that if inflation keep soaring, a 75 point basis hike in september may be appropriate. 50 would be reasonable. She said this week that rate cuts in 2023 are not her modal outlook. Joining us now, chief Market Strategist tony flyer. Did the market not believe these fed officials that are coming out and trying to walk back . There is a little momentum that we have and people are remote more focused on that and maybe they became a little overly defensive around the low. Now we are up over 14 and they are ignoring issues out there. It is interesting that jim bullard said we are not restrictive. We are at 225. He wants to go to 3. 75 to 4 . I cant see how that is a great thing. There is that and the fact that we are starting to get a mismatch between when the market is pressing the fed and where the fed is saying. Is at a risky thing for he market . You will in the middle of the initial the initial fear is that what is the fed going to do and how they impact the economy . That was the first move lower. Now we are in okay its not as bad as the economy because it works with a live. Our call for the fall, once we look through the summer rally which i think we are pretty close, you actually get the fear of what is happening. Interest rates work with a lag. This is a pretty funny range. It takes three months to 18 months. Tires the spread of what economists think. Lets take the shortest, three months. We are discounting the first 25 basis point hikes. It looks more like the economy slowed down because of the fiscal cliff, the ending of extra Unemployment Benefits and other pandemic related fiscal stimulants. As we go to the end of the year, we will have to have the impact of those higher rates. Again, the whole premise here where i screwed up in 2020 was after the initial surge, we did a good job of identifying that. Where i made a mistake was i didnt get bullish right away. I thought the market would test the low. I ignored the fed had started easing. That is what is different. Not only is the fed not started easing, they have not announced they are buying corporate debt like they did to gain a changing decision on april ninth, they are telling you they are in a double rate from here. Your calling into the summer rally. I think we are really close. Tony, we are 14 off billows. That is where we should be after the oversold conditions where we were going into june. We hit the median plus a little bit of what upside you should expect. The short answer is yes. Again, the conditions they were not just the oversold conditions, it was that the economy was in recession. I disagree with that. It takes time for that to take place was 7 nominal growth, topper is still above 300. There are things that you look at and say they are down from peak but nowhere near recession levels. I think that is what we have to look out for at the end of the year is as you get that weaker data if those indicators come in close to a recession level of what is going to mean to the idea that we will have a soft landing. Why do you think and this point the market has not priced in a session or deeper economic slowdown . We know it happens in history when the fed hikes like this. 100 . Down over 30 for the nasdaq, yeah. It was pricing and some semblance of a recession but we are not there anymore. Because of how far down it would at how much he discounted it even if it was too early, but that now thats not the case. We are up 14 . I cant come on tv and say to you and the viewers we are discounting a recession because we are 14 higher. We will test that low in some way. It will be historically unique in my data. Because the fed hasnt started easy. That is the difference between now and 2020. I want to look to take definitive weakness versus changing this kind of strain. Where would you be . Would you go back to the defensive groups that worked well when the market was more worried about recession . Utilities in staples . Those types of places . Aggressive traits that people put on an anticipation of a summer rally or whatever you want to call it. I dont think you want to get super bearish, you want to neutralize. It is a do no harm in the situation. A month and a half ago were so long the expected rally just like right now it works so long. Its all wrapped around the fed. I guess we will see what happens we talked about the fed being in a box. Statistically it will be too hard to get to the level they want before the next meeting. The owners equivalent makes up such a high level of defeat. The thing that blows me away, its my entire career, the fed looks in the camera and says it is more representative of real inflation, not the cpi because of the significant overweight of owners equivalent rent. Somehow the fed let the narrative go to the cpi. With us said again, you cant statistically drop it to where they stated they want to be by the next fed meeting. In our view, to really turn the tape here, you need to fed not to say we will do 50 instead of 75, that generated a summer rally. You need them to say we will not raise rates anymore and if the data gets worse we will ease. That is what kick starts the next real sustainable the data, the sustainable bull market. Our inflation could be, wti is at the lowest level since february. We have to leave it there. Thank you very much. Have a great day. We have a news alert on the Inflation Reduction Act. Elon with the story. The Congressional Budget Office estimates the democrats the reconciliation package would reduce the deficit by 102 billion over the next decade. That number does not count the impact of enhanced irs tax enforcement, and 80 billion in that bill that would go toward collecting additional taxes. The cbo says that would generate another 204 billion in revenue over the decade. You add those together and you get 305 million in deficit reduction matching democrats estimates for the impact this bill would have on the deficit. Really keypoint for senator joe manchin as you know. The cbo saying 102 billion for deficit reduction, add in the tax enforcement piece, you get another 204 billion. They are looking at the death of deficit. They dont have estimates on what it would do for inflation. Democrats are saying the deficit reduction is one of the key reasons why inflation would go down over the longterm. There are differing estimates on that. Democrats are porting to that reduction as one of the reasons why inflation would come down, to. It doesnt start until year five. It doesnt help inflation right now as we have been talking about. Thank you. After the break, kkr out with a new warning saying a slowdown for high income spenders could be on the horizon. We will talk to the author about the market implications. We have an exclusive interview with David Rubenstein. Stocks surging at 450 points on the dial. Every sector is positive except for energy. You are watching closing bell on cnbc. Nurse mariyam sabo knows a moment this pure demands a lotion this pure. Gold bond pure moisture lotion 24hour hydration no parabens, dyes, or fragrances gold bond champion your skin in order for Small Businesses to thrive, they need to be smart. Efficient. Agile. And thats never been more important than it is right now. So for a limited time, comcast business is introducing Small Business savings. Call now to get powerful internet for just 39 dollars a month. With no contract. And a money back guarantee. All on the largest, fastest reliable network. From the company that powers more businesses than anyone else. Call and start saving today. Comcast business. Powering possibilities. While we are sensitive to the impact inflation and economic surges are having on consumers, it is critically important to understand we are not currently seeing any measurable reduction in customer spending or any evidence of customers treating down. That was Ceo Howard Schultz on last nights Earnings Call. Kkr is out with a new report raising red flags and spending writing, quote, we expect a material slowdown and personal consumption is the high income consumer slow spending over the next 12 months. Joining us is kkr head of Global Consumer and real estate macro. Welcome, paula. What are you saying that Howard Schultz is nothing . We are seeing a ton of different data sources that high income Consumer Spending is the last leg of the stool that is supporting u. S. Economic growth were we are noticing and why we expect the slowdown over the next 12 months is high and income Consumer Sentiment is below that of other consumer income cohorts. Is a really important flight that we track. Other thing we are looking at is personal disposable income is negative, down 4 yearover year. If you put those together, what we expect is over the next 12 months with equity market relatively that that Consumer Spending will slow. Response to Howard Schultz is, what is important is what we expect is tradeoffs between Consumer Spending categories. It is not that all sectors will fair the same. Given that we see high Interest Rates and low and real disposable income it is those durable goods categories where we expect to see material slowdown and spending. That is why it has been confusing to track what is going on with the consumer, even if you look at profit earnings from walmart or target. It is not like they are talking of demand falling off a cliff. They are talking shifts in prioritization and getting inventories wrong because of the sudden nature of the move. It is hard to tell what the underlying trend is. This is a complicated environment for investors. Not only do you have fight inflation and slowing growth when you you have impacts of covid which really shifted the way Consumers Behavior what about service . Where we have seen the biggest pockets of strength and earnings is travel hotels, casinos. No evidence of slowdown and we are not hearing it from those ceos. That is where we would expect to see continued strength. Services rebound on the back of covid is where pentup demand for travel and leisure is coming through in high income spending. We expect that to persist through the fall but then start the slowdown thereafter with continued equity market. Next year this all catches up or what . We continue to slow down until the recession subsides. Services will hold up. It will do better than goods. Next year we start to see some slowdown in services. What does that mean for investors when it comes to Retail Stocks . It has been winners and losers given the categories and the income groups at Different Companies have focused on. We are longterm investors. We are less focused on individual stocks today. The big things we are interested behind our personal care, vehicle maintenance, nesting related stocks or names and those are names that will benefit from the covid theme. Were more individual stay home longer. Furnishings or offices for the remote work or food at home. Those things continue to persist. It is an economy driven by Consumer Spending . Not recession yet what do you think . We expect the recession over the next 12 months. A mild recession at this point. What prevents us from thinking this is a gmc type severe recession is there is actually a lot to be excited about in terms of Balance Sheets that are still strong. The labor market is still very strong. Even though i am talking about a material slowdown, it is not that i expect a gmc type contraption. We dont have those levels. We dont at all. We are seeing debt to income ratios are back to precovid levels. What the signals is just a widening of the credit is consumers settling in to ramping up spending back to those levels. You are getting consumers dipping into savings and dipping into borrowing. It is changing. , for joining us with those inside. Paula Campbell Roberts from kkr to show you where we are on the market. Still holding onto nice gains. 1. 6 higher. We are not higher for the week. The nasdaq zooming because the three bestperforming groups are Consumer Discretionary informationtechnology communication services. The nasdaq is up 2. 6 . Citigroups u. S. Equity strategist scott kroner on todays rally and what to do with technology after the master expect rebound over the last month or so. The naaqsd 100 now up over the last month, 14 1 2 . We will be right back. Treasury yields have turned lower. Todays markets down poured focused on seasonality and the s p. How the s p 500 this year is tracking against a composite of cycles that show the tendencies of what the market might have been expected to do in 2022. Is is called the Ned Davis Research cycle composite i said at the beginning of the year is a broad sense of what not only the seasonal factors that the fouryear election cycle as well as the tenure decade cycle your heading into. Does that matter . History says this is of the year should look like. In blue, the year is tracking relatively well. I want to emphasize the magnitudes are very different. Actually got down to a 20 decline. Obviously the average of and down is much more muted than that on all of the cycle composite years. It does show you a june low would not be unusual in this scenario, as well as weakness in general and the first half of the year. A lot of electionyear stuff has to wait until after you at the election itself and the Fourth Quarter tends to be strong. It does show you a general tendency of what history says might be the way the winds are blowing. Especially if you think we have gone up the gym. That would mean a new high. There is a lot to assume that i wouldnt want to make those leaps. This is where that is out in front of us. Up next, cofounder David Rubenstein weighing in on the stick market rally and the outlook for a dealmaking in this environment. Dow is up more than 460. We will be right back. Oooh were firing up the chewy app. What do we want delivered every month. Hmm. Clumping litter . Resounding yes. Salmon pate, love that for me. And some of those catnip toys. Just choose the frequency. And ship it. We did it. I feel so accomplished. Now you can pet me. Ok thats enough youre literally so annoying. Just kidding love you. Great prices on everything pets want. Chewy. Do you have a Life Insurance policy you no longer need . Now you can sell your policy even a term policy for an immediate cash payment. We thought we had planned carefully for our retirement. But we quickly realized we needed a way to supplement our income. If you have 100,000 or more of Life Insurance, you may qualify to sell your policy. Dont cancel or let your policy lapse without finding out what its worth. Visit coventrydirect. Com to find out if your policy qualifies. Or call the number on your screen. Coventry direct, redefining insurance. Stocks in rally mode today on track to snapping a today losing streak. Our next guest says markets may be bumping for a while. Joining us is Carlyle Group cofounder David Rubenstein. Welcome to the show. Nice to see you. My pleasure to be here. You get a view across streams and sectors. Do you think we are in a recession . I dont see it yet. I dont think there is likely to be a recession in the immediate future. The fed has done a reasonably good job of catching up to the problem they have is not anticipating inflation being as high as it turned out to be. The markets are anticipating that the fed has got it under control as much as you reasonably can. Markets reflect the fact that the economy is not heading into a recession anytime soon. The bears would say that means there is still downside ahead because the market has to price in a recession at some point if we do get one. Do you agree . The markets are reflecting the fact that the fed has increased Interest Rates by enough to make people feel we are not likely to go into a recession because people are recognizing the feds actions are working and inflation is probably coming down and people are not going to take actions that reflect the recession as imminent. What do you think is ahead . Now there is a debate about whether we are closer to the end, which is what the market suggests. All the fed speakers at the last 48 hours or so seeing quite the opposite. My guess would be that the federal increased Interest Rates you see by 50 basis points and probably in the two subsequent meetings this year 25 basis points apiece. It is unlikely that he will see increases next year. The market is telling us they dont expect to see increases early next year. The fed strategy seems to be working reasonably well. Admits that they missed the ball a bit on inflation early on when it was not transitory. It was more significant than they thought. To use the inflation coming down quickly based on what you see from your companies . Inflation doesnt come down very quickly. Inflation gets embedded into a system. It takes a while to get it down. Will work for the government if you chairman of the fed that when you get inflation into a system it takes longer to get it into the system, get it out of the system and getting it into the system. Right now it will take a while to get it down to a level we like i do think that the actions are making some progress. The market has been reflecting that. What kind of environment is it right now for your business, for dealmaking . It seems like fundraising has not slowed to a halt. That is still happening, right . Deals have slowed down . We are making a slow down a little bit but there is activity going on. Interest rates, while they are higher, and the bio business, Interest Rates are important but not as they were 20 years ago because people are borrowing a lot less money. A lot of the private investment deals that are done are not using leverage at all. Interest rates are always important but not as important as it was through our industry. The industry is finding itself not easy to get deals done because there is a gap between buyer and seller expectations. You see a fair number of deals getting done. Financing is available when people want and. What parts of the economy would you feel like we would see more activity . Financial services are ones that tend to do reasonably well when Interest Rates go up. Financial services will do well in the future. Healthcare is increasing a big part of our economy. I worked in the white house 30 years ago. It was 70 of the gdp and is over 20 . You will see more and more money going into healthcare in my view. I had to ask about the Inflation Reduction Act. A lot of politicians have promised to get rid of carried interest. It looks like it might happen with this deal if the senator from arizona is on board. What would be the impact for you and the industry . The name of the act is wonderful. If every act that was named sufficiently that way lived up to its promise it would be a happier society. The interest of a congress aside for 15 years and it is unknown today what will happen. The private Equity Industry is in good shape. The private Equity Industry and investors are likely to get good returns no matter what happens. So you are not fighting this . I am not in the daytoday efforts. I have long past given of dealing with capitol hill doing lobbying or anything like that. I have not talked to members about it and i dont expect i will. We have heard the private Equity Industry as a whole argue that this will hurt jobs and Small Business and it will hurt our economy if we get rid of carried interest. I am interested that you are supportive of this. I just that i am not person personally involved in lobbying members of congress. I do think that the industries positions are well known that. By people in capitol hill. The private equity is in pretty good shape. Investors are interested in the private equity because it gets good returns. What happens on capitol hill will be reasonably well. People in the industry prefer a son certain outcome over another outcome. Lower taxes. What do you think of the bill overall . Were you suggesting that it is mislabeled Inflation Reduction Act . I asked senator manchin about that yesterday. He thinks it will reduce inflation. Nobody really knows of course. Every act has a wonderful name. I wish all the acts live up to the name. Everybody hopes it will produce inflation, but who knows. Even under this act, no one is projecting of inflation will come down because of this. It will take many years. You dont know whether the actual live up to the name of the act. We just dont know. It was notable that five treasury secretaries came out together, prior treasury secretary say they are supportive, as republican or for president bush. Anything that can be done to reduce inflation is a good thing. Their view is that this is better than nothing. Right now we dont have this legislation. Not every piece is perfect. Their view would be inflation would be higher than we like. No doubt that we have inflation in the system. It will take time to get it reduced. Some things that were done at the beginning turned out to be more inflationary than anyone thought other than larry summers. We know you have a new book coming out in september, how to invest. Remember your previous book how to leave for you and a lot of the great leaders of Corporate America who impressed you the most . What i try to do is to find what it is that makes people great investors. From people like stan or seth carman or jim simons or michael morris, they all have characteristics that make them talented on what they do. All of them are really to defy congressional wisdom. You have a with ethic that is pretty impressive. They all come from modest backgrounds. They all have a good facility for numbers. They like to make the final decision. I think investors, if they get this book and read it, i hope they find they learn more about the investing world before. All the profits go to childrens hospital. I am not looking to make money from this book i will give the profits away. Thank you for joining us. Always appreciate the time. David will be one of the featured speakers of this once delivering off a conference which returns in person. You can scan the qr code on the screen to register or visit delivering alpha. Com. Here is where we stand in the market, holding onto the gains. They are nice gains. The both of 470 points on the dow. Every sector of stronger Consumer Discretionary is leave a charge and having a great day. Some of these retailers with a rally. Amazon is there and tesla as well. Stocks are playing a big role. Nasdaq 100 as of 2. 8 . We will reveal a stock that is skyrocketing after blowing the lid off its earnings report. There is your clue. Later we will talk about the huge moves for finn tech stocks with an analyst bullish on paypal, robin hood, and so five. Check out todays self mover, it is tableware. Investors unable to contain excitement for the stock today, of 34 . The company ceiling in a prophet that doubled analyst estimates, blowing the lid off of top line forecasts because pricing actions were able to upset gross margins. The stock is down nearly 40 this year. It has been hammered after they had to withdraw Financial Guidance in may. We saw insideruyg sie binnc then. Having a strong daytoday of 34 . A top analyst weighs in on todays been tech rally. Story plus under armour is hired to its outlook. When we take you inside the market so with the dog 64 points. We will be right back. 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. 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. We are in the closing below market zone. Commentator Mike Santilli here to break down these crucial moments of trading day. Citigroup scott kroner on todays Market Action including the nasdaq mike i will start with you. Up a 500 points making new session highs. A few moments ago treasury yields turned lower and were higher on the day. It might be confusing to some with what we heard from the fed today and yesterday is that they are not in the move to pivot here. They are still worried about high inflation and still say they have a lot of work to do. What accounts for this rally . Whether there is a pivotal not a pivot is months away. There is something that will eventually become more relevant if the fed feels like loosening financial conditions is not what they want. They feel that the job against inflation is not finished. For the market to really remain under a lot of pressure, you probably needed a little more ammo for the recession. Case in the immediate term. You have the Service Number that is good enough. It has not morphed into a trace for the upside. It shows you professional money was skeptical of the initial valley and feels compelled to add more risk. That is what is tactically going on right now. We have not gone a lot from companies that suggest some kind of a precipitous downturn in the economy is underway. We have migrated back to retreated on the s p two months ago at the beginning of june and treasury yields are lower since then. Oil prices are a lot lower since then. That is not that can season even if the fed wants to move against this. You mentioned the services number, it was a gain and supposed to be a decline. New orders were up four points and we saw prices indexed there down to the third month to the lowest since biggest monthly decline since may 17th and lewis in february. That is partially probably what got people in a good mood. Boy, they are on fire. Paypal jumping after beating expectations for its most recent earnings announcing a 15 Buyback Program and saying it joined forces with Elliott Management to create value. There is robin hood beating the streets estimates and announcing more layoffs. That stock is up 12 . Look at sophia, 30 after topping estimates and giving of the fullyear guidance. Joining us is analyst on dola. He has a buy rating on all three and feeling vindicated. We have given you a lot of grief for continuing to pound the table on these names when they had been big losers in the bear market. Today we saw the fundamental shine through. Which did you like the best . Thank you for remembering the grief. They are like my kids. I love all three. I think there are different stories. What you have seen with paypal is a culmination of the work we have done showing that margins are too low. They are not buyback shares. Everyone is giving them tough love to put it nicely. That one is going well above 100. I think so five showed the world that it is in much Better Business that everyone s fearing that it is. That one gives success. The cost basis was almost too high. You are looking at margins Getting Better and the loss is getting less fed. I think all three, if we talk a month from now, will be at a higher place. Robin hood, lets zero in. Clearly the market likes this perverse thing where it likes layoffs because it cut cost and get the margins better intact. Doesnt it speak to the fact that this company is suffering under the weight of higher Interest Rates and a full market that has faded away . Yeah. I call this the postcovid hangover. Robin hood was the epitome of covid, people sitting at home and trading. Obviously laughing that first half of 2021 is the most insurmountable thing. I am glad it worked beyond this period. It is just a factor of this postcovid kind of exuberance we are seeing. They over hired. The revenue is not just justifying this big of a cost basis. Overtime it will regulate itself. It is great to have people of it. Its probably not even touching that right now. You have a 14 price target. This is a rating we are seeing for this group. Where does it take valuation . They are all down at least two thirds from the highest. I think a lot of the action is still consistent with maybe we got to negative in the short term. There was a Short Covering rally. They do have movement on margins they can do on the cost side. I would put robin hood to the side because it is not clear that franchise is particularly durable. Paypal is the obvious exception just in terms of the size of the franchise and the fact that it is intergrown and it has a reasonable evaluation. It is below a market multiple and should have decent growth longterm. That is the one that is interesting as opposed to sophia and robin a lot has to go right in terms of Customer Acquisition over the longterm for them to carve out a place. Do you think paypal has the most upside of the three . I think paypal is the safest bet because it is in good hands right now with Elliott Management stealing the company. There is a lot of functionality on other big holding. At the ready was the ceo of paypal. There are a lot of things going on that we might not be aware of right now and there is a lot of upside from here. Thank you for joining us. Under armour shares are higher today. The company matched estimates. It expects a more promotional environment and foreign exchange. The dollar is crazy strong. At the head of arm under armour told me. I spoke with ceo colin brown who was ceo oh under patrick frisk who stepped down from his position in june. Brown was somewhat upbeat on the u. S. Consumer saying we are seeing some retail slowdown but i think the consumer is relatively healthy. Employment a strong. We expect a stronger back to school and when it comes to the promotional outlook the company is giving. Higher inventories across retail and not using of supply chain issues which opens up more merchandise. The quarter was better than feared just like a lot of earnings we have got the season. A lot of the bad news has been in the stock. Under armour has a lot to prove on the growth side. Now it has to do that in a challenging macroeconomic environment. Kevin plank, the founder and chair of the Company Opened the Earnings Call saying they are focused on the search of a ceo and a decision will come by your and. Colin brown told me he is a candidate. The question is what is the readthrough for lulu lemon and nike . They are all dealing with these problems. Foreignexchange and under armour has more bread issues to work out. Much smaller, we are talking about a 4 billion company. Stock is trading not far above the lows from the covid crash in 2020. Obviously it has been washed out. It doesnt necessarily have as many lovers to pull or enough brand equity to lean back on. It may be a more has to go along with liquor where it returned work times and things like that. It is tough to find the next catalyst unless it will be a management change. Which we are expecting. Adidas reports tomorrow morning. We will hear from the ceo. Technology is soaring in particular today. With us as u. S. Equities strategist scott corner. July was a bear market rally, it looks like it is extending into august. Do you continue to buy . Especially in the tech space . We have to be aware of what the set up has been. If you think about the s p and the nasdaq, those mid june troughs, the s p was down 24 . The nasdaq was down somewhere closer to 33 . Within that if you had some Industry Groups such as software down closer to 40 . The combination of rising weight headwind combined with the expected concern regarding earnings related to recession fears is on display front and center for the nasdaq. No surprise as we have gone through the q2 reporting period, we have seen earnings more resilient as a way of describing the reporting period. You are necessarily getting a reflex motion higher aspirates have now shown a little bit more accommodative path. What i would say in terms of where we go to from here, we have recognized the other positioning and deleveraging taking hold within the Broader Market over the past couple of months. We are also approaching s p year end target of 4200. I think we want to be more attentive to Stock Selection and expected dispersion around that. But also argue and a soft learned landing scenario, the s p and Broader Market can still work higher from here. Is that the key whether we can pull off a soft landing. If so maybe we have seen the lows . We think in terms of a mild recession scenario we have been using 3650 as our line in the sand. We nearly touched that when the market bundled around 3670. If that is pricing in a recession, anything less and recession is a positive. That is when you come back to the picture and the rate backdrop. As we look forward, we still think there are effects between Economic Indicators and earnings readthroughs. Were still of a view that the first half of 23 will be more challenging from an earnings perspective. Hard to say we are out of the woods but a much more comfortable that what we are getting from their in the reporting period is a heightened degree of resilience and confidence that we can weather a mild recession more foolishly than perhaps many going into this. Just to take it back to technology, that is what has been in the driver seat. It was hit harder during the downturn. Does this past earnings season, and the fact that we are still below 3 on the tenure, does it change your view on gross stocks . I think it has to. We have been taking steps down this path. Two months ago in early may, we were on style agnostic, setting up for growth rotation. We are behind the curve on this now. We upgraded software from underway to a market week to reflect this a month or so ago. I still think that is an important toggle. Keep in mind the tech sector and the growth component of the market in general. The derating is rates will rise in the first half of the year was somewhere around six multiple terms. Call it a 30 derating. You are pricing in a lot. The snapback opportunity is still significant. I want to be wary that we are not completely out of the woods in terms of longerterm economic readthroughs. Which we are seeing is a better than expected earnings response to the inputs we are dealing with thus far regarding inflation and Interest Rates. Thank you for sharing your view from citigroup. We have got just about 2 minutes to go in the training session. I want to ask about the internals and some of these moves. The winners are being handsomely rewarded. Moderna of 17 and huge moves. There is a tailwind, a bit of an upside chase. Apple as of 3. 7 and it is back 7 of the s p 500. A lot of drafting behind. It is about to to one advancing to the client. Wanted to take a look on the twoyear basis of the ipo atf because so many stocks look like this. So many hypergrowth stocks, they basically look like a huge decline off the highs. Just this mini uptrend, it can go up 30 from here and still just be bumping up against this downtrend of the 200 day average. That is a lot of thinking as these upside air pockets. We see the volatility index coming in hard down two points, about 21. It makes all kinds of sense. The market is where it was two months ago. Macro variables have become less stressful since then. The dow is up 417 points. Just off the hives which we saw moments ago. Biggest contributors to the game, microsoft, apple, salesforce and home depot. You have a few exceptions. Energies are weaker today. Chevron, walmart and caterpillar are the drags. S p 500 going strong up 1. 6 which takes it higher for the week as we hold gains into thursday and friday. Every sector is higher and technology discretionary for consumer names and communication services. And the nasdaq, the biggest one of all of 2. 6 . Moderna is in there as well. Some big earnings lynn ayers. Matter having a nice close as well. That is it for me on closing bell. See you tomorrow. Welcome, everybody, to overtime. You just heard the bells. We are getting star trek started as always. More earnings of at this hour. We are waiting for results from booking holdings at mgm. Both good reads on the health of the consume

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