This hour. These are modest declines. Dow down 71 points. S p futures off 11. Nasdaq down by 44. At this point, the dow is on track for its fourth negative week in the last five and that is because of the treasury yields. They have been pushing higher and higher. The tenyear yield is 4. 95 . In fact, it did cross that 5 line that we were watching. Hovering at 5 . Yesterday, just after 5 00 p. M. , the tenyear yield hit the 5 level briefly. The last time we hit that level was july of 2007. Yesterdays move cameafter fed chairman pojay powell spoke and kept the door open to more rate hikes. We have models for everything and formulas for everything. We have to be focused on what the economy is telling us. Even taking lags into account. What is it telling us . Does it feel like policy is too tight right now . I would have to say no sdp. We will talk about rates and more with Raphael Bostic. Until recently, bostic has said were done. Jay powell said yesterday at the Economic Club of new york, where he was speaking, ideally the market has done it and if that continues, they would not have to necessarily raise rates more. He said the economy is looking very good. Right now, this does not look like a policy that is restrictive. Key words. Right now. Thats the problem. One week or two weeks or a month from now, we could look back and say you were way too restrictive. How about this . Recent Economic Data shows ongoing progress toward goals. What are the goals . To get inflation down. No, no. Recent Economic Data shows were making progress toward our goal. The economy is moving. Your goal it is not on jobs market. It is never a leading indicator. You are right. The alternative to this and this is what mohamed laid out. The fed should predict instead of relying on data. In the past, they have been really bad at it. Which scenario do you want . The idea he keeps talking about data dependent . They are predicting it will not slow. If you use the Rearview Mirror if you parse it, they are fine sitting and waiting. They will be data dependent saying they are not necessarily going to act, but if you see other numbers come through that indicate differently, you might get back into the game. If they stopped two months ago, there were a lot of people that said this is the last one. A lot of people that were willing to go out on a limb and say i can see ahead a little bit. It is obvious to me were in restrictive territory. Meanwhile, the fed has not found it. Restrictive territory doesnt do anything to the markets. Jay powell is saying that. He is in a different position. It is like the treasury secretary saying we dont want a strong dollar. A lot of people said it was obvious to them that the fed was finished. They may or may not be right. We may have overshot. The journal says it could be now we could have a mild recession. Economic activity. It is set to weaken in the u. S. Leading to a shallow recession next year. I agree with you and understand that. You are probably right. I think you are probably right, however, all the people who want him to come out and say were done he did say it. Finally. After everyone else said it two months ago. Three months ago. Four months ago. It is easy to be an arm chair quarterback in this scenario. Especially when you are just on tv. I can change it every two weeks. Then again im not talking about you. The chorus of people. Im channelling those people. If you go back, i guess we realize how bad they are at this from how long they thought inflation wasnt a problem. They couldnt look ahead back then. Why should we think they could now . I agree. I would like to see them stop raising rates, too. I think people who want him to come out and say that emphatically are missing the point. They will not say it. I think they bought themselves time. The 70s and 80s had never happened, then i think it would be ease eveier for them. In the back of their minds, they have this fear. A shallow recession is probably not as bad as just inflation that goes on for a period of years. Stop and start fed policy where you dont kill it and it comes back and rears its ugly head. I saw him yesterday. Im emphatic, too. I watched it. I said on the air that you have this job that nobody needs this. You know, i think liesman said it. At your age, why are you still doing this . What are you talking about . Hes fine. He can do whatever he wants. He was asked about that yesterday. He said he does take the job very seriously. He believes it is an important thing. That is what a Public Service is to take this incoming from people like not just me, but other people. I think you are probably right. I think the fed is probably done. I think they should be done. I dont think they want to raise rates more. 8 . In japan, you know, suddenly rates are surging there. Closing in on 1 . Let them float. It might happen some day. We have no one in the house. There are supposedly three leaders. Mccarthy, jordan and mc mchenry. What about scalise . Those are the three right now who are talking for the body as they are in the position, but not. It is the third time. Will it be third time is a charm for jim jordan and his bid to become House Speaker . He had viewer vo fewer votes his second vote. He ran into resistance from conservatives. Jordan is not expected to close the gap on the 22 votes keeping him from becoming speaker. In fact, i like all three. I have feelings about a lot of different politicians. I like Patrick Mchenry a lot when he has been on. I like jim jordan. Thats is a controversial thing to say. Mccarthy, i have respect for him. I dont know if he calls it gaetz and the crazy eights there. Interesting piece from kimberly. Every man is king. That is what we have right now. That doesnt work. Any one person can shut it down. Patrick mchenry is a man of principle. I kid him about that. Where he said if you expect me to completely break with convention and start passing laws when im not the actual speaker and that is the way it has to be, ill quit if that is what you are expecting. Hes been very firm about that. It will be difficult to change his mind. When mccarthy was here earlier this week and talked about it, he said watch the vote count with jordan. If the number of holdouts goes down, watch. It went up. It doesnt signal support. I cant imagine he can get some of the individuals in biden districts where the grasp is tenuous at best. If you vote for the flamethrower like jordan. President biden delivering the rare speech from the oval office laying out the nations case to provide more aid to ukraine and israel. Even won over some typical critical people of the president who said it was one of his best and strongest performances to date, eamon javers. Reporter fascinating to watch the reaction on fox and others. President biden found the line linking conflicts and made an argument for why americans should be invested in the success of ukraine and israel. Hamas and putin represent different threats, but they share this in common. They both want to completely annihilate the neighboring democracy. Reporter beyond that, the president explained why it is important to stop terrorists and tyrants. Why does this matter to america . When terrorists dont pay a price for terror, when dictators dont pay a price for aggression, they cause more chaos and death and more destruction. They keep going. The cost and threats to america and the world keep rising. Reporter biden made an oblique reference to china without naming the country. Wouldbe aggressors would be emboldened by lack of american resolve in israel or ukraine. On the home fraont, the presidet sought to say he sees concerns and all americans must come together. Finally, biden saw contrast with the americanled world of commerce and markets and hamas version of rage and war. We expect to learn more details this morning about the president s budget request for military aid to both countries and get a better picture of whether that package can pass in what you have discussed a deeply divided and dysfunctional congress. Back to you. All right. Wow. What do you guess . Eamon, we ask this every day. I dont think people who are in leadership positions in the house have any idea what comes next. What is the betting line . Reporter it is not clear there is anybody in the Republican Congress to get to 217 votes. What do you do with that . The reality is the Republican Party has broken down and cannot agree on a single leader for the conference in the house of representatives. What do you do . I have been watching for Hakeem Jeffries to come in off the sidelines and persuade five or six republicans to switch parties and join him. That is what happened when he switched parties. Just one man doing that. You see five or six people doing that here. The question is if Hakeem Jeffries wants to be speaker of the house in the last year of the presidency where you have the president polling in the 30s and not a lot of legislation going to get done in the election year. You know, democrats might not want the speakership right now. Can they reopen the house at all . I dont see a solution here. Im not an expert on this, but i have been hanging around capitol hill for a long time. We have never seen a situation like this, guys. I just never no. The horror of not those five, but a different eight to have Kevin Mccarthy as speaker. They were horrified by that. Can you imagine the horror of the average Republican Congressman to actually be somehow involved with Hakeem Jeffries in a gopled house . Who would that be, eamon . Reporter the first thing you do if you are Hakeem Jeffries and you want this, the first thing you do is look at the list of republicans in districts that joe biden won and won overwhelmingly. You look at those people and say what would it take to bring them across. Do you have to promise them a triple seat . It would be easier to put mccarthy back. He could peel off four of the eight to get him back in. Reporter it sis a different block. You weill not find five people. They are turncoats. They would run as democrats for reelection. They would. They would. It wont matter. Right. Promise you the chairmanship. It would be a bold and dramatic move. It is unprecedented in the house. It has been done in the senate. Does he actually want it . Bidens poll numbers are very low. It would be easier to peel off four of the crazy eight and put mccarthy back in. He had 96 of the republicans. 96 . Remember, easier for who, joe . Im talking about what Hakeem Jeffries play is and are you talking Kevin Mccarthys play. Is it easier or harder . Out of the 217 you need. It is easier to peel off those four than five to go with jeffries. Unless they turn into democrats. Then they were never republicans. It doesnt necessarily mean that. It means the Republican Party has failed to build a coalition to lead the house of representatives. You have the Republican Party fracturing into smaller parties. The maga party and the eight and you have the bad enough right now. Thats like nuclear to get as far as how bad it would be to do that. The question is how bad would it be for the five or six . Good for those five or six depending on the perspective is and what they want in their careers. That is an open issue. I dont know jeffries would make that move. Bidens poll numbers are low. It is the last year of the pres presidency. If you are jeffries, you might not want to do it. Nobody will flip unless jeffries supports them. Eamon, thank you. Eamon javers. When we come back, big clouds for solar stocks. That sector under pressure this morning. We will have the names to watch and we see weight loss drugs in kids near future. We will talk about that next. Announcer this cnbc program is sponsored by truist securities. Experience, expertise, excuse. all toooo youuuuu sean i wish for the amazing new iphone 15 pro jason sean do you mean this one the one with titanium . Its so light. Dont touch it. Maybe stealing wishes from the birthday boy is not your best plan switch to verizon and get iphone 15 pro on them. sean what . jason yup, and on an Amazing Network sean and i dont have to ruin anymore birthday parties jason yeah, that ship has sailed. Lets go get you the iphone. Here we go, come on hon. vo get iphone15 pro, apple tv 4k and 6 months of apple one. All three on us. Only on verizon. Power e trades easytouse tools, like dynamic charting and riskreward analysis help make trading feel effortless. And its customizable scans with social sentiment help you find and unlock opportunities in the market. E trade from morgan stanley. With powerful, easytouse tools, power e trade makes complex trading easier. React to fastmoving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you wont miss an opportunity. E trade from morgan stanley. Welcome back. Shares of Solar Companies plapl plunging this morning after the ceo calls cancellations and expecting lower Fourth Quarter revenue. Solar edge contributed this to higher inventory and slower installation rates. You can see the impact the fed is taking. Solar edge is down 25 . You have enphase off 15 p. Sun run and sun power down 7 . First solar down 5. 25 . Big concerns for demand overall. I was captivated reading this story. The green power grid isnt coming. I guess the point that is being made is that solar and wind are never close to where the power is being used. You need miles and miles of grid, of metal, to connect to take the power from where it is generated to where it is used. And we need the iaea which said we need 49. 7 million miles of transmission lines which would go around the earth 2,000 times if you tried to get to be built or replaced by 2040. The way you get that metal is buying metal from coalfired plants in china. Were never going to get there. It is not just a matter of getting the metal for the power lines, but then a problem with permitting to run the transmission lines across places. This is the issue for anybody who watches this closely. Thats what you need to get to the ev, the number of people to get those to net zero. Thats what you need. Check out the shares of the weight loss drugmakers. I have given this story to you, becky. They never do. Bloomberg reporting novo nordisk and eli lilly are testing weight loss drugs for kids as young as 6 years old. Do you feel okay . You never ask a woman how much she weighs. I know. Do you take a pill for everything . You remember fenfen . We found out running twice a week gives you as much endorphins instead of taking a pill. If you have been down this road where you have seen fenfen, you wonder about the side effects and if people can do this or if this seems too good to be true, maybe it is. Maybe this is a new thing. I have been wondering if this shuts down your desires for things or change your personality overall . Drinking you dont crave . Are the drinks you are looking forward to having something you like . Obesity is horrible. There are people who can use the help. My bigger problem is people who are using it who dont need to be using it. The off label stuff if you want to fit in a dress this weekend or something. I know what you mean. Or not a dress. I dont want ozempic face either. Joining us is stephanie link from hightower. Stephanie, looking at the markets, what is the most important thing you are watching . The earnings coming in or the latest comments from jay powell or what is happening in the treasury market . I think it is all three, becky. Obviously, everybody has powell on the mind. I think there was something for everyone from his comments why yesterday. He did acknowledge that we are starting to see tightening conditions, especially if you look at the long end. He also talked about remaining data dependent. Next week is a the really big week. We get a first look at the Third Quarter gdp. Atlanta fed tracker is 5. 4 . We will not see that at 5. 4 . We will see trend. The other data point is core pce next friday. That should be 3. 7 . Still elevated. We know the fed looks at this number carefully. They want it to be 2 . We know inflation is making progress coming down, but it is still too high. That is what people are grappling with. Are they done or not done . I think they are done. The economy has been very resilient. I think that will lead to better than expected earnings. We had 17 of Companies Report earnings so far. A small sample set with 78 are beating. Eventually earnings will matter. We have to really watch whats going on with the geopolitical side. The fed with an lot of moving parts. That should bode well for the yearend rally. It feels like an Inflection Point and people figuring out what you laid out. Have you added or dropped anything from your portfolio as you figure out what is coming next . You know earnings season is the silly season because stocks react really dumb sometimes. Yesterday, lam research reported a good number. I added to it because it fell 6 . Why did i add . They beat earnings and revenues and Gross Margins rose 129 basis points. Operating margins rose 319 basis points. These are year over year figures. It fell because they did not confirm the memory market has bottomed. The stock rallied 50 year to date because exp pepectations for memory to be bottoming. They increased fab equipment spend. They have better than expected and higher margins. The earnings power is 40 a share. None of that changed yesterday. I thought the reaction was silly. I added to that one. Stephanie, we appreciate talking to you and hearing your thoughts. I think you are dead on when you look through the numbers and try to separate. Have a great weekend. You, too. Coming up, is generation x ready for retirement . If you ask our producer, thats a big no. Can the big generation of nirvana and grunge catch up . We have ideas next. 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. upbeat music with the push of a button, Consta