Joseph. Were happy to have you here. Always. People have things. Its summer. If they asked me next week, i would say no, im on vacation. Even to spend time with you, i would turn that down. You know what, i take everything you say seriously, because it just makes me, right, i believe you. Yeah. Theres no reason to not believe me. Its not necessarily sarcasm. Not necessarily. Lets take a check on u. S. Equity futures. Joe mentioned towards the end of the session, we came off in the middle with the higher beyond yields, take a look at how were set to open. Look looking to lose 8 at the open, the dow looking to lose 49. After a day of declines. The dow fell 291 points on track for the worst week since march. The dow, s p and nasdaq are down more than 2 of the week. For the dow, its the first time it closed below its 50day moving average since june. Check out the pullback in technology. We have been talking about this for some time. The declines are stark. Apple, meta, microsoft, each more than 12 off the years highs. Metas decline makes it the fifth of the magnificent seven to fall in correction territory. Amazon and microsoft are above that. Tesla is in bear territory. And bitcoin is a proxy for risk on, i guess we should not be that surprised that it finally succumbed. It was weird, they were starting to write the articles that its suddenly less volatile than stocks. Then yesterday it was like, i dont know, someone looked around like wily coyote when hes like, you know, chase sglg o chasing. Over the cliff, hes fine and he realizes hes headed down to the bottom of the canyon. Lets look at treasury yields, which could be worse, the tenyear, kind of stopped before it went surging through 4 30. And then the twoyear still below 5 . This remains to be seen what happens. Does it indicate higher for longer . I dont know. Maybe thats what some people are saying. No one is talking about more than 25 or 50 more hikes by the fed yet. Right. But im not convinced i was thinking they should have been done. Now i dont know. Recently data points with the economy and the amount of money going into the system still for years to come with the ira and the infrastructure. Maybe its good, maybe its bad. But its going to be coming. Thats going to be a lot of demand. How much inflation do higher Mortgage Rates engender. It seems like it cools things, but then again it makes things cost more when you buy a house. Thats true. But then people just dont buy a house, which is how things slow. 20year highs. Right. The issue is that a lot of people, theyre locked in, right. We have that locked in problem because a lot of debt is fixed. Theyre not moving. So how does 7. 2 on the 30year, how does that actually translate . It affects new buyers right now, but for a lot of people in their homes, theyre not feeling the higher Interest Rate. I was trying it figure out why people are so miserable about the economy, and the recent polls all show that. People are miserable. Because how much are you paying for 12 eggs . How much are you pay for beef. A bag of doritos. If inflation rises sharply for a couple of years, like eggs, for example, then it starts rising less slowly. The rises of two years, are they still there . Youre still paying more. Then i looked at gas prices again, which are back to an average of i think 3. 80 or so, and we hear a lot of bragging from the Biden Administration. It was 2. 39 when he came in office. Quickly did the math, 60 higher on gas prices. And then the iras largely viewed as actually inflationary, despite the title. 1. 24 trillion for renewable. Maybe it will work, though, i dont know. Stocks tumbled in asia. Evergrande filed for chapter 15 protection in u. S. Court late yesterday tas it pursues a debt restructuring plan, and contagion fears from chinas real estate sector. Its weird. China could help us tame inflation with lower demand. Because their economy stinks. Yeah. Were still global. Were still pursuing a global trade agenda, dont we want the Chinese Consumer to buy all of our stuff . I dont understand how we can say the decline in the chinese economy is going to be good for us. At some point its not good forfor us. When the chinese economy is ar roaring, that helped us. Why is the opposite not true on the downside. If youre used to watching the today show, which is a great thing to watch, and suddenly you tuned in and saw the logic of the things i talk about, you would be like im going to the today show. Because its so dismal . No, because everything that you think would happen would be a positive, you have to look at like, all of a sudden its actually not a positive. We had a great jobs number. Markets going to go down. Many people are worried. Nothing makes sense in the economic world. It is a dismal science, economics. Hang seng closed today in bear market territory, down 20 from januarys highs. Thats obviously indicative of whats happening. And Chinas Central Bank stepped up the intervention from yuan, setting the midpoint at 7. 2 against the u. S. Dollar, more than a thousand basis points stronger than consensus estimates and the yuan fell to a 16year low against the dollar on wednesday. European markets right now in the euro zones have been in a recession. I saw at least the natural gas stockpiles which are looking good. Winter is coming. Do you watch game of thrones. Winter is coming eventually. Yeah. Not ready yet. Its august. End of august, practically. End of august. We mentioned the top, the price of bitcoin tumbling about 9 keeping below 25,000 on binance. That comes amid a risk off trade on wall street and as u. S. Interest rates hit multiyear highs, the price of ether dropping 11 , the s. E. C. Is poised to allow the First Exchange traded funds based on ether futures, so far the regulator has not allowed an etf based directly on cryptocurrency but in 2021 it allowed trading in a fund that allowed bitcoin fut futures contracts. Were barely getting to ether futures etf. Were not even talking about a spot, the first one will be bitcoin, maybe. I mean, yeah, if there is one, it will be bitcoin first. Maybe. This year. Everybody thought it was this year. I did. I really did. Do you think that now . No. You still do . I dont know, whats genslers problem. I think it would help, and i also was listening to jay clayton, you hear when jay was here. Oh, you werent here. The fed three times this week, werent you or just twice. Kelly was on twice, and you were on twice. Yes. Okay. Generic female anchor. Do you remember jay clayton . No, just knowing anything that happened earlier in the week. Thats true. I can talk about things in college and high school, though, i can remember so youre at that point. Yeah. Youll see. Drug maker maker novartis, last sandoz accounted for operating profit. The division faces mounting pressures in the u. S. Off patent drug sector. Kelly was born in 1986. Shes a youngin. She thinks, 4 , whoa, she thinks 4 is like, whoa. 4 for what . Like an Interest Rate on a tenyear, i mean, if you can get 4 4 , just having seen the normal Interest Rate was 7, 8, 9 . Right and that still didnt stop stocks from being preferred in terms of Building Wealth long term. If you think youre going to build wealth with a 4 , 30year. You might make money. We may go into a slow period where some of these rates end up being good for part of your portfolio, the stable part that you want. But i think you really need to, as a young person, you noeed to get used to equities long term, dont you . Of course, thats the only way youre going to beat inflation over the longterm. And build wealth. Activist, Starboard Value has built a stake of more than 5 . Outback steak house owner, blooming brands, according to a wall street journal report, it wasnt clear what change starboard might be pushing for. One of the restaurant chains top five shareholders, in addition to outback, it owns italian grill, bone fish grill, and flemings steak house, and pushed for olive garden parent darden, up 240 since the proxy win gave starboard full control of dardens board. I have been to an outback recently whren we traveled in te last couple of month sgls. Did you have the onion . No. Its dipped in batter and deep fried. And they slice the onion, so its maximum coverage, onion per batter ratio is one to one. More batter than onion. The onion is just a Delivery System for the fried batter and salt. Do you know the calorie count on that . I have no idea. I could give you a guess. Whats one serving, though, a whole onion. They bring it and you share it, but its probably 1,400, i would say at least. Maybe 2,000. You can have one onion. You wonder why we have a problem with, whats the latest, im trying to say, people in large bodies. Individuals in large bodies is how you politically correct way to say that. Used to be full figured. Dont use the f word, dont use any f word. How about trump giving christie grief about being fat. How about that. Do you believe that . Does that seem smart . Does that seem smart . No. Glass house. Watch out. Lets get an update on the devastating wildfires in hawaii. Mauis Emergency Management administrator has resigned a day after he defended the decision not to activate emergency sirens in response to the wildfires. He said the sirens are used for tsunamis, where theyre trained to seek higher ground. Higher ground would have been a dangerous decision. He said he was resigning for health reasons. Hawaiis attorney general said she will tap an independent investigator to review the state and local response to the wildfires. At least 111 people have died in the fires and the death toll is expected to rise as search dogs continue to comb the wreckage. Along with the story is the bizarre vulture, i guess, this is the way the world works. People going in knowing how valuable that real estate is going to be and scavenging, trying to buy up and it will be back. Theyre looking at prohibiting outsiders from buying any property during this. It will be back, but you know that money talks and Everything Else walks. Is that good or bad, five years from now, maui is totally rebuilt, and lahaina town is back, and its a thriving tourist place, and this is what it looked like five years ago after the wildfires, and this is what happened with development. Is that good or bad, thats what im asking . Its good theres hope for the region, but whats lost is still lost. Would you want to stop it completely from people who can go in and rebuild it in an unbelievable way, is that the right move . No, if you have local business owners, you protect them. I dont know what right way to do this is. It is some of the most valuable real estate on the planet. Exactly. Palo scheduling its Earnings Release on a friday afternoon. The big take aways from retail earnings week. The sector point to go losses as we head into fridays session. Youre watching squawk box on cnbc. Young lady who was, mid 30s, couple of kids, recently went through a divorce. She had a lot of questions when she came in. I watched my mother go through being a single mom. At the end of the day, my mom raised three children, including myself. And so once the client knew that she was heard. We were able to help her move forward. Your client wont care how much you know until they know how much you care. Book a work trip. Earn onekeycash. Shake some hands. Do not forget to laugh. 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Again. ronald and reclining back jerome cause we work hard and want to relax harder. damon we, the lazy, are taking back lazy. doreen . On our lazboy furniture. vo lazboy. Long live the lazy. The first time you connected your godaddy website and your store was also the first time you realized. Well, we can do anything. Cheesecake cookies . The chookie manage all your sales from one place with a partner that always puts you first. we did it start today at godaddy. Com wow, you get to watch all your favorite stuff. Its to die for. And its all right here. Streaming was never this easy, you know. This is the way. You really went all out didnt you . Um, its called commitment. Could you turn down the volume . Here, you can try. Get way more into what your into when you stream on the xfinity 10g network. Nice footwork. Man, youre lucky, watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes thats what im talking about. [ cheers ] running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Welcome back, deere reporting earns of 10. 20, better than the 8. 20 the street was looking for. Revenue topped estimates coming in at 15. 2 billion, raising the profit outlook for the full year, citing strong demand, in this case, for large tractors. On todays squawk planner, after the cloetsing bell well t a rare Earnings Report from palo alto networks. The stock is down more than 18 . Analysts are speculating that the company may have some news they want to hide by picking friday afternoon. Analyst dan ives called that decision a pr disaster and he had been a big fan of palo alto. Joining us, stephanie link, cnbc contributor, great to see you. I think youre probably not in palo alto, but i want to get your take on a Company Announcing a friday night Earnings Release. It does seem a little suspect. Yeah, it definitely does. And i wouldnt be surprised if it is weaker than expected, especially after the stock was down 25 on the day, but i do think, melissa, if palo alto is weak on the news, and its been weak, post fortinet, both names are a buy. The Addressable Market is Something Like 280 billion between now and 2026. Thats a 16 cagr. These companies are growing top line, double digits, margins are expanding and if theres a pocket of weakness because of enterprise softness, which we know about, i think you want to take a look. That gets to the bigger issue, and what point, Even Companies that are growing but have high valuations at what point do higher rates get them, and should that factor in at this point in time . Absolutely. Higher rates for longer, certainly its going to hurt Long Duration assets, thats technology, thats Growth Stocks in general. But i do think that the long term, you know, i kind of look at the total Addressable Markets, i think its really important because long term, they do have the wind at their backs, and so you want to be patient. You certainly do not have to chase anything in terms of on the up side. I own, by the way, fortinet, and when it was down 25 on the day, it hurt, but i was buying, and i continue to buy because, again, long term, i like the story very much. For fortinet is gaining market share. Palo alto, if it were to pull back 10, 15 , you want to take a look for sure. Stephanie, have you mentioned deere in the past . Yeah. You have . I have, yes. Ive owned it in the past, joe, as well as caterpillar. Yeah, yeah. And im sorry that i sold deere, and ill tell you why. I did. I know you talked about it. Yeah. I know. And i like it very much. Precision ag farming is really something that is amazing thats happening at that company. And whats happening is its enabling the company to actually includes their margins as a result. Right . The more efficient crop, more efficient plantings, more efficiency for the farmers in general. Therefore, they have been able to raise their margins for a long period of time, right. I mean, they think they can have sustainable margins in the double digits between now and the end of the decade because of this technology. So i sold it, i made money in it. The name i like, actually, joe, is cortiva, that one is a little less popular, for sure, but i like the whole space for sure. If you say big green tractor. Yes. Absolutely. Thats a famous song by an artist who i dont think were allowed to. I love jason aldean, hes had recent controversy. I dont know whether its good or bad. Thats the first song i sort of liked with country. About 15 years ago. Have you ever heard it, steph, big green tractor, its about beer. I have. Also kenny chesney, he thinks my tractor is sexy, he has a song out there too. Tractors are sexy. I have learned a lot this morning so far. You have. Thanks, stephanie, im glad you know what im talking about. It was a huge hit. Huge. It was. Maybe you can sing it. You want to take a ride on my big green tractor, maybe well do something after. That doesnt sound its good, im going to play it for you on the break. We got to go. Were g to oing to break and playing it for you. 1950 calories in the blooming onion. Just one day of calories. But the other 50 splurge on something else, you can have a piece of gum to get to 2,000. And were also going to dig into the true cost of paying for college, and the best strategies for saving. And looking for Financial Aid. Thats next, as we head to break. Check out the shares, please, or if you would of Applied Materials, the chip makers earnings beat estimates, Fourth Quarter guidance coming in above expectations, 3 1 2 gain in the stock, strong demands from the chip merak, setting up new production facilities. I wonder why. No big deal . Go on. Well, what if you partner with ibm and red hat, use a hybrid Cloud Solution to connect data across clouds, then analyze all that data with watson. Okay, but this needs to meet our. Security standards . Yup. Compliance standards . Mmhmm. So they get the insights they need.