Transcripts For CNBC Squawk 20240704

A quarterly beat despite increasing costs Berkshire Hathaway including d. R. Horton and lennar weve gotten another warning from fitch, this time the Rating Agency telling cnbc it may be set to downgrade dozens of banks that could include jpmorgan chase. Lets begin with the markets. A lot of credit card data said retail was going to come in strong here. Look, the fed has tightened we know that i dont want a big jackson hole boom, but the economy the consumer is strong the enterprise is strong the weakness is, what, in trucking, in some really bad retailers . David, at times you have to play a game where you find this weakness i need to know where theres weakness give me some weakness. China go to china, young man. China is not in america i just want to give you a little well, you didnt specify geography to be fair no. But in the absolutely china is weak. I wont give out numbers about unemployment because theyre all in school. Many of them are in school at least thats what the chinese are saying might not be as strong because, frankly, when you read the ev numbers, not that strong. But i. C. E. Is still strong, internal Combustion Engine oil is strong, medical is strong, pharmaceutical we also had the beginning of the infrastructure money its all strong. Why should there be weakness its still strong, that makes it so Interest Rates should go higher the yield curve is coming with the tenyear moving up going higher i always said that would happen. Everyone laughed at me did they really laugh or do you just imagine. Laugh at me as the blood came down on my head. Thats over. Now it looks like the economy is strong never got weak this whole soft landing, hard landing, ive been disputing it the whole way. Its kind of hijacked by episode 6. No spoiler alert. Kind of like lga, theres weather we need look, whats the weakness in tech we have ai ive been looking at Companies Involved with infrastructure the orders are coming in they are so huge caterpillar had an amazing quarter. The only real weakness out of norfolk southern, the rails have experienced some weakness. You think it would reflect on something involving the economy. David, retail almost across the board, i dont think home depot was bad at all furniture was down 1. 8. I thought we were going to have superduper negative. Instead we have minus two. Supertyduper the notes from the analysts are relatively posive. Relatively . Give me a negative. I cant really find one comps were down less than anticipated. They did beat earnings because they seemed to reduce sg a a significant amount really going to wear a home depot hat . Why not you know who was on the podcast last night we should just start labeling up im just saying we have an economy over than fitchs ridiculous fitch is trying to be lets get in the spotlight. Lets call cnbc. Theyre fighting for relevance by coming to us and saying theyre going to downgrade Jpmorgan Jpmorgan remember Morgan Guarantee . Remember the quarter the idea of downgrading jpmorgan its the Strongest Bank on earth. Who is the Strongest Bank in europe amazing every chinese bank is pathetic fitch comes after the Strongest Bank on earth . I come after fitch weve dealt with that now we dont have to talk about it later. The gold fitch. Can you imagine, if youre jamie dimon right now, lets see how were doing . Quaking in his boots. Jamie dimon is killing it wells fargo is having a great quarter. Doesnt matter to fitch. Hey, were fitch, lets get our name out. Its working. Anything you want to add on home depot . Not yet what Warren Buffett is doing with the Home Builders, what home depot is doing about betterthanexpected same store numbers. Retail sales number we got this morning which includes autos, if i choose autos ive got a strong number whats going to be difficult is were going to have the the fed at 5. 5 the 20year at 5. 75. Thats my prediction sometimes silence is nice, dont you think, carl . Refreshing. A reflection on the desk. What im really worried about is china now we come back to what i said i give you an answer and then i get now you come back what do you do . You suspend hey, the numbers are really bad lets just get rid of the numbers. We do this for the cpi in 1982 we decide to take housing out of the cpi, homes out of the cpi which is ridiculous. If we had homes in the cpi now, it would be red hot. Although we do owner equivalent where we ask people to estimate what they would pay in rent if they had to rent their home. Thats true we do do that. We do do that cpi a lot higher as a percentage component, it was the largest. Theyre going to stop reporting youth unemployment last check was 21. 3 in june. Barclays today cuts to 4. 5. Know mirra says faced with im nant downward spiral with the worst yet to come and this rate cut will be of no little help. Japan, one of the strongest countries on earth, really did set back that was to a declining birth rate bad demographic. Gave them decades. Remember, they were the biggest market in the world in the end of the 80s. I do look at the chinese economy and im desperate to find some strength and i cant theyve been shut down no one wants their desk there. Katy huberty with an amazing chart of net foreign direct investment, four straight quarters down. Do you read her stuff its nothing compared to what it has been. Everyone is afraid to invest there. Because if we get a different president , youll look back and say why did i do that . What do you mean . Its about what the chinese are doing. Im just saying that then President Trump really made it so that you were against u. S. Policy if you invested doesnt appear its been any change on the front with the current administration. Talking on technology which is an incredible thing now i dont know if you caught the saudi arabia uae race to buy nvidia chips. I did are we moving on from china . Not at all. King abdul, university of science and technology thats who ordered the chips according to the ft, many chinese nationals work at cal. Maybe thats the back door to get the h100 chips to make it so you have a super compute. Pimco yesterday, closer to the end of outbound capital regardless of who sits in the white house come 2025. I actually think the russians had to counter their inflation because its entirely possible that the economy is falling apart. The chinese may not be taking all the oil. We do know the ruble fell to the lowest level in over a year yesterday. Do you think it could be the beginning total worst situation develops where the russians actually know theyre at war i dont know. I dont know i think its important. I do know chinas real estate sector which is the linchpin of the economy continues to suffer greatly. Do you know the blackstone of china . They do not appear bailing out some of the nonstateowned enterprise in the country. This could be an s l situation where, if the chinese were smart, what they would do is close all these companies and recapitalize them. They seem to be reluctant, almost as if its a crony capital lift environment, not a true capitalist country. I would go so far as to say a communist country. Yes, i believe they would say the same a bit of a different system. I think the market is good here i think our market is good we import from europe. The buck stops at the atlantic it does. The buck stops at the atlantic who reported today cardinal health, that was good home depot is going to prove to be good. Come on. Why are we hostage are we hostage to china thats crazy town. Nobody said we were hostage to china it has the worlds second largest economy. There are definite linkages that we should be aware of. Are we hostage to singapore do you know sc, c limited . Thats the Largest Company in china Largest Company in singapore. Its the equivalent of sub stack meets master class meets economist, meets new yorker, meets square the hundred i call it. Carl, i have no idea, do you . Nope, no clue dont understand what hes talking about. Dont you remember when they came up with the hundred thats what c limited is like. The hundred. You went deep on that one. Thats what t limited is like, one of the Largest Companies in singapore that blew up entirely. The hundred. Im glad you told me about the Largest Company in singapore. One of the largest. Used to be a 32 billion company. Im saying we cant import asia and send our markets down. Thats not right okay okay, jim okay. Take a look at the premarket. We are looking to open lower here well get to buffet and the Home Builders as jim suggests got some calls on service now, walmart, obviously nvidia again today. More squawk on the street continues in a moment. sfx people cheering sfx Stock Exchange bell ringing sfx people celebrating sfx people celebrating sfx Stock Exchange bell ringing as we mentioned earlier, Chinas Central Bank cutting key rates for the second time in three months as the data comes in weakerthanexpected. Our eunice june can talk about that, as well as the metrics they will no longer give us, at least not for now. Talking about youth unemployment before i get to that, what you said, the central bank move was quite a bit of a surprise. The central bank reduced the oneyear mediumterm Lending Facility by a biggerthannormal margin of 15 basis points. In addition to that, the bank cut the sevenday repo rate. This is a key rate that homes to guide shortterm liquidity for banks. At the same time we got this terrible Economic Data, very down beat for july the retail sales really stood out. They rose by 2. 5 . That compares to the year when a lot of people were under lockdown that gives you a sense of how bad the retail numbers fixed Asset Investment mixed private investment shrank by. 5 real estate investment, huge driver for this economy also sank, down by 8. 5 urban unemployment worsened. Youth unemployment, as you, carl, were saying, kind of a big question mark here last month in june it was at 21. 3 . So 1 in 5 young people werent finding a job. The government now says theyre suspending reporting this data as of august they say that they need to change the methodology because they said that the current methodology wasnt really reflikting whats happening in the economy. Eunice, if you suspend one group of numbers which is the teenager, the younger people, why not suspend many numbers why give out so much information. I dont understand where it stops. Well, thats a very good question we have had Economic Data suspended by the chinese authorities in the past. But with this set of numbers, we actually started it in 2018, and then they started. The reason why they are calculating it or decided to calculate it this way originally is because they wanted to look at the numbers by age group. Now they say that no longer necessarily applies because its supposed to cover those 1624. They said those that are 16 up into their early 20s are oftentimes already in school so they think this doesnt really reflect the true nature of whats happeningin the labo market. Eunice, we were talking at the desk earlier, the property sector so important there. You mentioned the reduction in Interest Rates there doesnt appearing the a willingness on the part of the government to really step in particularly for nonsoe property developers. Where do things stand there . What are the expectations and why would the government choose not to act when this is such a linchpin to the overall economy . Thats a big question people are asking here as well because there is a feeling that with, for example, the Property Investment number looked terrible home sales are bad new Housing Starts also really seen as boding very poorly for the Real Estate Market so a lot of questions about why the authorities are not coming in the problem seems to be, as we can only guess, that theyre worried about theyve been signaling about their concerns about the debt theyre worried about this potentially becoming a bigger issue. Also in terms of giving out money, theyre also theres been a lot of reporting by the local authorities, especially auditors saying that vouchers in the past and certain subsidies havent gone to the right places, that theres been quite a bit of corruption involved in that because of that, we havent actually seen the authorities here, especially at the top, willing to take on this issue in the way that a lot of economists think needs to be done pretty interesting all around the world were watching it. Hang seng close to onemonth lows eunice june, thanks. One more look on at the premarket here squawk on the street is back after a break. 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. fan 1 there ya go thats what im talkin about josh allen is this your plan to watch the game today . hero fan uh, yea. I have to watch my neighbors nfl sunday ticket. josh allen its not your best plan. But you know what is . Myplan from verizon. Switch now and theyll give you nfl sunday ticket from youtubetv, on them. hero fan this plan is amazing josh allen another amazing plan, backing away from here very slowly. fan 1 that was josh allen. fan 2 mmhm. vo for a limited time get nfl sunday ticket from youtubetv on us. A 449 value. Plus, get a free Samsung Galaxy z flip5. Only on verizon. Let Innovation Refunds help with your erc tax refund so you can improve your business however you see fit. Rosie used part of her refund to build an outdoor patio. Clink dr. Marshall used part of his refund to give his practice a facelift. Emily used part of her refund to buy. I run a wax museum. Let Innovation Refunds help you get started on your erc tax refund. Stop waiting. Go to innovationrefunds. Com you really got the brows. Lets get to a mad dash and well have an opening bell about 7. 5 minutes from now on, were not talking semis. My daughters birthday, 32. I gave her on sneakers they reported the numbers last night. This is six kenconsecutive recod quarters he has to be on the 11 00 today. Whats interesting about this, david, the swiss frank that did them in. It was very strong i think if you look through the swiss frank which, by the way, we werent able to when they reported here. If you look through, you realize theyre smoking hot, and it is the Fastest Growing Sneaker Company theyre really cool the rogers, im taking lessons. We have a lot of on sneakers sitting around my house. I like my pair but they squeak a lot. They also get pebbles yeah. I need like an oil can. This differs from the likes of an all berg, for example. This is much different this differs all berg is a terrible brand that was hot for, i dont know, six weeks. This on is going to be i think when you have them on the 11 00 which, i believe, is not you. No. I think youll find they tell a very good story. The swiss frank has been fi finished for a long time the store in williamsburg they built is gorgeous. Its the showroom. Thats where it should be. Williamsburg is just much cooler than any place in manhattan. Thats true a lot more cool people. Much cooler people. Water mill. Not cool. Very cool opening bell five minutes from now remember, you can catch us any time anywhere by listening to and llinfoowg squawk on the streets opening bell podcast you ok, man . The internet is telling me a million different ways i should be trading. Look whats up my trade dogs . You should be listening to me. You want to be rich like me . You want to trust me on this one. [inaudible] wow yeah its time to take control of your investing education. Cut through the noise with bestinclass Education Resources that match your preferred style of learning. Learn your way. Not theirs. Td ameritrade. Where smart investors get smarter℠. Warren buffett and Berkshire Hathaway making a bet on Home Builders the Company Announces positions in horton and nvr. Their net buying of stocks has gone the other way. I thought that was very interesting. That was a true recognition of the housing shortage these are not so much nvr i like nvr horton and lennar along with toll and pulte have all had amazing numbers. More importantly, the Gross Margins keep going up. They should have been squeezed by now a lot of buyers in cash. David, we just dont have anywhere near the houses we need in this country. Even with 7 mortgage weve cited the statistic many times as a percent of overall home sales, new is larger than its ever been because theres so little inventory right now of existing homes being sold in part because people dont want to part a low mortgage. Stewart miller, if people want to understand the state of the housing, stewart miller, executive chairman of lennar explains exactly how many homes are dubbed yearly. Toll brothers talked about basically were building houses for people and we dont we cant make enough. Well do it and everything is sold the average house now is a Million Dollars for Toll Brothers up like 40 in four years. Although page one of the boise idaho paper today is about firsttime home buyers coming back to the market there as weve seen some corrections around the country. Boise bozeman is where snowflake is i think were at a moment where i saw San Francisco numbers [ bell tolls ]. Amazing were back im not jay powell obviously jay powell took a little heat, the s p 500 incredibly you mean desantis saying he wouldnt reappoint him, renominate him. Desantis is desperate to try to make some news. President trump made some news last night, too. I saw you mentioned that this morning. The coconspiracy, as we know from president reagan when they did the rico, its very hard someone always wants to squeal on another person so they dont go to jael. Here is the opening bell, at the big board, fiscal note, Software Data Media Company in d. C. And vinfast auto, vietnams leading automotive manufacturer. Reminded me of getty which is a spac getty reported a number remember they had what you said might be a questionable takeover bid . Yes that was some time ago, yes. I did question that. They reported a number they indicated it may be illadvised to try to buy the company. Speaking of questionable takeover bids, yesterday we got this bid from ez mark for u. S. Steel. For lorenzo no for u. S. Steel ez mark announced this allcash offer. Wanting to buy the company for 35 for cash and stock no advisers, no financing listed they mentioned an Exchange Offer but they say its an allcash bid. Its weird. Who are they . Theyre a private company, privately held Investment Firm theyve done real business i dont want to in any way say theyre not. They owned wheeling pittsburgh steel. Really . I think they do about 500 million in revenue i cant quite figure out why if you were going to be a part of the u. S. Steel process, you didnt just submit your bid as part of that process, that you put a press release out. If youre going to be taken seriously in any way, youve got to detail why and how youre financing it, who your advisers are. None of that is part of the s mark released yesterday. The key question, would cleveland steel get antitrust given particularly how the percentage that they would control of the feel for automobiles and whether the oems would object, even though the unions were in favor what percentage worldwide do the combined companies have, david . I dont know. U. S. Steel and cleveland i dont know. How about 1. 6 . If youre pro id vooing 60 of automakers in this country, you may get pushback from the oem. They could. Right now were in one of those rare moments where were blocking other countries steel from coming in anyway, wanted to put that out there. The stock had moved on that. This is going to go on for a number of months it would appear would private equity have an interest cleveland post, the scene is a strategic buyer cash flow is extraordinary. At cleveland cliff. He joend us yesterday on the 11. We asked him why given the more favorable Free Cash Flow profile of cleveland cliffs, why you would be going after Something Like like x. I asked if this was beach front property or more of a gut job, a renovation sadly i think a gut job over and over and over again. Cleveland cliffs, by the way, that started during the era when rockefeller was in cleveland, one of the great steel companies. It was actually mostly an iron company then i think hes made it so its not an iron company, just a major producer of very good steel. Hes buying a company that just moved to new u. S. Steel is better than the older u. S. Steel. The steel business is hard and only one company that knows how to do it. Nucore. Analysts keep chasing their numbers. Theyre in the best position to deal with you mentioned getty we also have a vietnamese ev Company Going public for spac later today. Im antispac i wanted to come to wheels up we wouldnt typically report on something with a 35 million market value, but i will tell you from what im hearing theyre going to announce a large restructuring that is not going to include bankruptcy, but will include about 350 million coming into the company. From who . Much of it from delta much of it from delta. Well, they have a lot of planes maybe they want the planes. Customer deposits, bonds, reserve is a going concern for wheels up. Again, its massive dilution. Talking 350 million coming into a company with a 35 market cap. Im getting pieces of this i dont have the release in front of me. It appears that essentially dem that will control wheels up. In addition to the Capital Infusion we heard about the other day . I believe so. This is the full plan. The memesters might want to buy it because theyre chuckle heads. This is really unbelievable. They own a lot of planes i think maybe delta wants what they own i think wheels up has been a complete and utter disaster. One of the great disasters of our time. It hasnt been good so they own 85 king air light jet, 28 hawker, 15 these are owned or leased. 15 citation, those are very nice, citation x, super mid sized. Thats a great list of planes. I understand the average age of the planes is old, but thats a nice pickup for delta if they can get that fleet again, well wait to see what the release says in terms of specifics. What im hearing is that large massive dilution again, i just want to point out that our market is trading off the wrong places its already better than it was. It is true that typically not buy stocks when Interest Rates are going like this, obviously going against the market i do think were trading off countries that have nothing to do with us im just not buying it the Interest Rates are actually going back down. Its tame. Oil cabot and simrex. I think oil is weaker. I dont know its more china, china not taking as much oil from russia i just think all these numbers make it so our country is actually much stronger than everybody else the money is probably coming here and not going away despite what david said about wheels up. You look at china look at uk wage growth in q2 inflationary my wife wanted to look at property over there. I said weve looked at property everywhere in the world. Can we please hold off on london finally some elasticity in the cramer household. Id like for you to look at property in london for me. Next summer or soon . She wants to buy we have a studio in london. Theyve got a desk. Take the show on the road you want to come with me and make olive oil yes, i would like to do that. I would like to make olive oil all i can tell you is that, david, the whole notion of uk being anything like us, its a travesty two different universes. Meanwhile, goldman is going down again i guess weve got the full i guess more solomon talk. Enough already. By the way, its not down any more than the rest of the banking. Jpmorgan down 1. 4, based on the fitch possible downgrade the entire sector is down. Watch service now, huge price target, 650. That stock does well already up 4 if that stock goes up 10, then look out bears im not just thinking about fields, although i might take him. Nvidia is up 14. Come on. Are we down today with nvidia at 14 you have temper, lobe, tudor jones. Ubs today, i love this line, they are essentially playing the role of king maker if you look at how the stock compares to yearonyear comps, rarely peaks they go to 540 there you go. I talked to david about during the summer. Talking about the four horsemen. I had five of them so it didnt work i wish hed focus right now on the panthers so they would be more competitive that division seems up for grabs, david yesterday we were talking you seem to have an expectation nvidia might have a little air pocket down, then it went straight up. No, no. So what i said was, if youre worried about nvidia i got a lot of heat this weekend for telling people that i like nvidia you didnt say in any way you didnt like it, didnt own it. Yesterday you were saying i was sick of the people attacking me for saying you put me in nvidia its the greatest call ive ever had in my life and i was almost thrown into the schuylkill river. You crushed me thats what i was talking about. It did come out i wanted nvidia to go down i didnt it did make me unhappy i like nvidia. I just wanted those people shaken out, the ones who attacked me. Thats all you attacked me on that stock . On that stock . I know there are plenty of others, but not that one never mind. We didnt mention because you were out friday, the ft piece about you and the headline jim cramer is kicking butt was the headline. You didnt see that you see everything i took the day off. You see stories and publics that dont exist and you missed the ft story saying good things about you. This is what i did on friday there was really a nice piece about me . Yeah. What did it say it said the long jim story is working much better than the short. Thats right. He should be shores inverse jim cramer. Even the creator of these, kind of like the setup here. He doesnt care because either way hes got both i thought you were going to say im small potatoes it was a good piece like the inverse clown . Yes, yes. The long jim is working much better im going to leave, get myself there it is that story you didnt see that . I didnt see it. Its an old picture i look great there no, i didnt see it because i was picking tomatoes by the way, guys, when you come up to the fourth floor, i have 20 really great beef steak tomatoes with your name on them. Thats a nice article i would assume you had seen it how is it possible you didnt see that because im not the ego maniac that you think. Jim, gm, in addition to buffet Home Builders trimming that steak by quite a bit actually got some attention. Davids friend elon musk its almost like thats what lina kahn should look into is he trying to put the other ev makers out of business because of his competitive advantage his competitive advantage dont you think kahn will defend the unions . I have no idea what she would be willing to do or not. Thats not going to work thats a hack view which i think would pretty much fit in lockstep with what shes been doing. The question right now the federal hack tc. The question is whether or not theyre going to sue amazon for the full breakup because apparently many people believe last night they had their sort of final meeting, their last rights meeting i should say on amazon saying why shouldnt we sue you to break you up. You short amazon and invite me to your funeral by the way, as weve said many times, were the ftc to be successful and amazon would break up, it would probably be remunerative for shareholders. There are lifetime employees who are unbelievably good at the ftc now working for what i record as the most political people ive ever seen run that great agency i think its time for resignations in order to show what they stand for. Well, you raised an issue we did raise with lina kahn as well which is the staff and whether theres friction and morale. There have not been to the point, there have not been significant resignations. I dont know what theyre waiting for. This thing is so political, im waiting who else can she come after . We got a call even with the negative comps in the quarter, july comps were almost flat. Came back a bit on that. I think what people have to recognize whats the matter what people have to recognize that hope depots numbers were so terrific i cant believe we can sit here and look at the market and make a decision as many people did this morning that home depot was bad. Now theyre looking at the company saying i just shorted one of the Great American icons. Not i con, the margin call icon. Im talking about icon, i c o n. Ive said it, all i have to say. Really . Youre done . Not until i see that ft article. I cant even begin to imagine you didnt see it. We wont dwell on it any longer. Leave it up. Ai kicking butt i dont know about ai. Shes going to be like lets buy that place in london its an expensive area. Really quick on disney. You mentioned desantis comments, less than half of all viewing for the first time the meeting with the writers, jim, reportedly some offers on residuals and guarantees on ai do you know on the netflix call they said 37 this thing is now its cascading as we talked about the acceleration, the cord cutting again, coming into this year there had been an expectation that it would slow instead its accelerated in terms of peoples willingness and execution on saying no, no more cable for me. Video for comcast and i do work for comcast, is not nearly as important as the other five. No, never has been. Its not a himar engine business it is important for Cable Networks that rely on many people paying for them each month that dont watch them. That would be like david zaslav. It would be warner brothers, disney Cable Networks. Our parent, fresh 52 weve got the wind at our back look at that 46. 81 on comcast shares. By the way, on disney, dont forget as well, were past the quarter now and everything else. Pelts is still out there, did show he increased his stake in shares of disney talking about nelson peltz who had a brief run at a board seat publicly ive also been told privately continued to sort of ask but will he come back publicly again is the question carl mudder cant possibly be happy at 87. He cant be happy. We know core mudder hasnt been happy for some time you have the old fco out there lock, stock and barrel im staying away from that i think the market is in a better setup than people realize. Travel trust really like this action. We should not be trading off of beijing. We should not be trading off singapore, not trading off of uk we should be trading off the good old usa. With that, well see if equities can get a bounce. As yields come back a little bit. We did get the pop in yields in the wake of retail sales by the way, were not done with data business inventories and Housing Market coming up in about 10 minutes. Kashkari is a voter. Dow down by 7. Dont go anywhere. Banks for the fifthconsecutive day. You will see discover on there as the cfo steps down effective immediately. Dow with opening losses that appear to be stabilizing down here 220 dont go away. You founded your Kayak Company because you love the ocean not spreadsheets. You need to hire. I need indeed. Indeed you do. Indeed instant match instantly delivers quality candidates matching your job description. Visit indeed. Com hire time for stop trading. Ive been partial for old dominion but the Morgan Stanley has giving me xpo. Theyre raising the price target from 45 to 65. I have norfolk sournl, where its not been that strong. Well have to talk about how that is possible thats one of their Growth Business and then, i have tom jorden, who some feel is the actual dean in the oil business he incentivizes. If you are cleaner, you get more money. Thats a visionary way to approach the oil and gas business we got wells downgrading energy downgrades of marathon and phillips, as well. The refiners are downgraded theyve been redhot people have been calling them the golden nature of refining. I think we could be in the golden age of natural gas if this is going on it gets cold in europe, they will be providing the natural gas. Wewill talk about when the temperature starts to change check it out. The ftp, just search jim cramer. The dow down 210 mad money 6 00 p. M dont go away. My cpa told me i wouldnt qualify for the erc tax refund, so i called Innovation Refunds. Their team of independent tax attorneys will work with your cpa to determine if your company is eligible. [whip sound] take the first step to see if your Small Business qualifies. Good night hey corporate types. Would you stop calling each other rock stars . Youre a rock star. You are a rock star. Rock stars. Please do you know what it takes to be a rock star . Ive trashed hotel rooms in 43 countries. I was on the road since i was 16. Ive done my share of bad things. Also your share of bad things. We know that using workday for finance and hr makes you great at your job. But that dont make you a rock star. Ted ted ted oh ted in finance. Youre a rock star hey liz in hr . Can you do this . Unless you work with an actual rock star. You are a rock star thank you whos the new guy . Hi, im ozwald. Hello ozwald. Give it up for pam. Pam, you are a rock [silence] i wasnt going to say it. We planned well for retirement, but i wish we had more cash. You think those two have any idea . That they can sell their Life Insurance policy for cash . So theyre basically sitting on a goldmine . I dont think they have a clue. Thats crazy well, not everyone knows coventrys helped thousands of people sell their policies for cash. Even term policies. I cant believe theyre just sitting up there sitting on all this cash. If you own a Life Insurance policy of 100,000 or more, you can sell all or part of it to coventry. Even a term policy. For cash, or a combination of cash and coverage, with no future premiums. Someone needs to tell them, that theyre sitting on a goldmine, and you have no idea hey, guys youre sitting on a goldmine come on, guys do you hear that . I dont hear anything anymore. Find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. Good Tuesday Morning welcome to another hour of squawk on the street. Im sara eisen nasdaq is down half a present. Treasury yields at the highest levels of the year wire tracking to 2008. A lot of data. Were going to get more this hour heres three movers were watching starting with home depot beating estimates. A smaller drop in sales growth than expected. More than those results and what they signal in a moment. Discover falling the Company Announcing the resignation of its ceo effective immediately. Shares down almost 20 age r and watching nvidia, almost 100 higher ubs calls nvidia a kingmaker were getting more with inventories. An important day when tenyear note deals have spiked to some of the highest levels since 2008 where we close, at 4. 25. Were below it and business inventories are unchanged. Following so far, unrevised up 0. 2 for the previous month we have the market index out for the month of august. For that, we go to diana it was a big miss for Builder Sentiment. It fell 6 points to 50, on the association of monthly Home Builders index that was the lowest since may, when it lost rose to 50, which is the line between positive and neg negative the builders say rising Interest Rates and High Construction costs, are the biggest issues. Rates are solidly over 7 and have been holding there with a 30year fixed rising to 7. 24 yesterday. Of the indexes three components, current Sales Conditions fell 5 points to 57 sales expectations in the next six months dropped 4 points to 55 buyer traffic down six points to 34 rising rates are causing builders to use sales incentives again, after dropping sharply for four months. The builders cutting prices rose 25 . And the share of builders using overall incentives rose to 55 , higher than julys 52 and lower than december of last year where it was 62 . Big miss for Builder Sentiment while we have you, very notable that Warren Buffett has been buying housing stocks i know youve been digging into this he looked into these investing in d. R. Horton and lennar and nvr they build the entry homes and theyre affordable theres no affordability on the existing home side the same with lennar nvr is interesting because its located in the northeast and the midwest, which are areas that were not as hot as in the west and the south. This is all based on Mortgage Rates. Do these high Mortgage Rates keep homeowners in their homes, meaning they wont sell, and that puts the inventory on the market diana, thank you very much. A lot to get to there, including big tech moves a lot to talk about on the broader markets and the data front. I think we should talk about retail sales that was a surprise, if youre betting on the consumer, but not if youre betting on the fed the big surprise was more than expected and you look at the control number, it takes out the volatile series like restaurants and autos and gas. Up 1 . Remember the atlanta fed gdp tracker . Risk is to the upside on Economic Growth. If youre the fed and you want to bring supply and demand in more balance, then its not good news better Economic Data, more Consumer Spending power, could suggest that inflation could tick back up it could suggest it is it likely can we have Economic Growth without sparking more inflation . Thats what the market is betting on that. With the market betting on that and looking expensive, relative to history, the risk becomes does the market need to focus on the 70s, it wasnt a Straight Line down it popped back up. The fed is acutely aware of that import prices up again, which was hotter than expected we need to see more months we have been seeing disinflation thats a good sign gas prices are back up Consumer Confidence is not that bad. Asset prices have been strong. Real wages are finally rising. Wages are rising faster than inflation. All of that is good but could be inflationary i think you see the reaction in the pressurery we have been moving our bond market on global data, as well china is interesting theyre in deflation if demand from china continues to slow, demand for commodities would decrease, as well thats probably why theyre forecast, if you look at dallas and cleveland, probably inflation is coming down faster than they thought. Not less, faster in the u. S. Yes were getting mixed signals theres china data and the market did not rally off of the rate cut in china usually the markets celebrate. It did not restore much confidence there we did see china moving to try to drop some of the economic wee weakness i know i brought you sticky inflation numbers. We got the fed Consumer Expectation numbers. We have a great chart and that shows the decline. The blue line is important its one year and it continues to go down the fed watches that and its important. Its mixed signals here. Nobody expected the economy to be picking back up with the Federal Reserve doing as many rate heights as weve seen so far. Tl atlanta fed might have a clue. If you had told me we would be going into acceleration in the Third Quarter. The markets have done well and the earnings revisions are better do we have to go longer on rate hikes . Not price in a rate cut. Those are the debates right now on the economic narrative. Why would we be trading off of things like u. K. Inflation . Come on. Its been a global phenomenon theyve been trending so much higher no offense to the u. K. Treasuries are a global deep market why do we trade off the fact that japan is change its yield curve control . Did you see the japan gdp . 6 a weak yen it boosts your exports that economy has been booming. Our next guest thinks the fed is done hiking rates and calling for a soft landing Morgan Stanleys global chief economist, seth carpenter. Thanks for joining us. Great to be here. We talk about you and Morgan Stanley quite a bit, howresolute the market has been. We should go back to the beginning of the rate hike cycle. We said a soft landing was the most likely outcome. That was not a popular view. Theres a few key components to it the fed stratstrategy. That was their intent. How is this different from the 1970s and early 80s one of the key differences, is paul volcker, running inflation down, if it causes a recession, so be it if you look at their protections, they say three years is just fine the other part of it, the labor market went into covid. The economy rebounded much faster than the labor market did. Businesses are at this point, back filling, open positions we think thats going to keep us from tipping over. You have the extra resilience. Is the fed done . Did todays sales mean they have to do more in there . We dont think so. They did as much as they immediate to do. They will be libdeliberating and sifting through inflation. The data is coming down as fast as we expected it to if we look at the monthly prints, they are slower. Theyre going in the right direction. Were adding an inflection point. Not everything is negative or positive you have data going in Different Directions youre sure, no one expected inpoliceflation to go back up t. Youre sure its not going to pop back up again . If any economist tells you they are sure, you need to walk away. I feel good about it consumer goods and rent inpolice station. Inflation. And the other twos are trending down we are seeing that happen. Look at everything thats gong on with pricing in automobiles rent inflation its now a very well tread path. And the bureau of labor statistics takes spot data and translates them to official statistics that will be trending down for the next six months or nine months where were left, is the other services outside of housing. Those bounce around. If you look at the last four months, soft prints. And you have moderate prints am i 100 short . No doesnt it make you nervous that the data is coming in stronger and hotter . Some of the other data strong jobs market it takes some times to hurt inflation. Thats not whats happening now. They are trying to soften the economy. Financial conditions have not been tight anymore no two ways about it. Theres been strong pockets. My u. S. Team, we were above con sen us the to be told the sales report back to school prime day, all of which contributed there. Theres some pockets no sense, the economy is falling off a cliff. Thats part of the soft landing approach is it going to accelerate from here i dont think so people are trapped in their housing. People that have 2. 5 to 3 mortgages do not want to sell unless they have to. That makes the new homes go up as a share overall level of housing activity, its stuck at bottom it is not surging back would you say the piace of shelter disinflation is what youre sure about . That and goods inflation being in negative territory. Thats 75 of court cpi. And theyre firmly there and strongly there for the rest of this year. We mentioned no more hikes. Are you in the Second Quarter cut camp we have theres room for a wiggle in either direction, honestly if we saw more slowing than we would pull forward if we saw faster, maybe. The fed is trying to walk the line balance, where are nominal Interest Rates were at march if for the first 25 basis points cut. A very gradual quarterly pace. Could we be wrong . Absolutely nothing has shown me so far. What is nominal gdp Third Quarter tracking praebobably in the 5 range so inflation is coming down if we look at the last couple monthly prints, that showed decline in the trends. Are we there as the fed putting up a big banner that says Mission Accomplished absolutely not that would be a mistake. Next week at jackson hole, he will hammer the message. Were not going to give up were dedicated to getting inflation back to target were starting to see the fed and other people shift that conversation to where is the peak, to how long do we stay at the peak i think thats where we are right now, at the transition point. Seth, great chart learned a lot. Seth sharpener the from Morgan Stanley. Heres the road map for the rest of the hour squawk on the street is going whale watching some of the biggest investors this hour. More on Chinese Technology stocks some of those are seeing pressure as inflationary fears grow another e. V. Name taking on tesla today. Well talk to the ceo later this hour were down 300 on the dow, 4350 s p. Stay with us welcome back to squawk on the street vin fas getting public lets get to phil lebeau with a special guest. Good morning, phil lets bring in ceo of vinfast. You just started trading a of people have this question why do public through a speck right now . Why not pursue a traditional ipo . Thank you very much its a big milestone today and get the Company Vested in the u. S. We were ready to do a traditional ipo. We pursued the path for almost two years. But the markets have been challenging. We decided to decouple the listing. We got the backing from our Parent Company and we went ahead with the listing. As you know, specks have did withaled for the last two years. Is this a smart time to bring it back to market i know you want to raise funds for your expansion but is this a smart time you saw how the market reacted when we opened today i think its a way to get listed in the u. S we didnt think about the anticipation we would change today with us, hopefully. You are building a plant in North Carolina, where you expect to begin manufacturing, with the first models rolling out in 2025 how much will this be a challenge for you . Will you look at the u. S. Market its the most competitive in the world. You had to look at this and say, were taking on the big boys if we can succeed in the automarket we think theres a huge potential in this market thats why we make our investment in the manufacturing facility in North Carolina the whole world and the u. S. In particular, moving from Combustion Engine to e. V. S vinfast, with the full lineup of vehicles from small vehicles, to fullsize. We have an e. V. For everybody. We stay true to making e. V. S accessible to everyone you want to make them accessible you know theres price cutting going on within the industry right now. Can you succeed . Can you be profitable, given the price cutting going on even more what is expected with e. V. S in the u. S we say with the strategy. We price our vehicles competitively. But keep in mind, that our vehicles come fully loaded with features also, a lot of the comparable models on the market and we price them properly we have some vietnam, with the market with the labor costs low. We put together a good supply chain. We believe on the path to profitability. Now, youre off and running trading on the nasdaq. Thank you for joining us this morning. Sara, back to you. Phil, thank you phil lebeau, thank you for bringing us the interview. Unusual to see that these days it is a 23 billion company. Its 99 controlled and owned by shareholders. The largest single shareholder it was small it was not a large amount. Very little public float you heard phil asking why a spak i guess they wanted to get to market quickly its unclear how much stock will besold and whether or not it will be sold by the shareholders to raise money or if there will be shares sold primarily if its public to follow on offerings that will raise more equity. When you look at the companies that have gone public, related to e. V. S, theres a lot of loss. Hasnt been a good run. No. When we come back, were going to break down all of the latest information from the 13f filings we got from ackman, lobe, making big bets on a. I in their final years. At this Holocaust Museum in israel, you see the names; the faces, of jews that were brutally murdered. This great cloud of witnesses cries out to us comfort, comfort my people. Were in a race against time to reach every holocaust survivor in israel and the former soviet union. Many are poor and hungry and they have nowhere to turn. 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Please, do something now. Sleep more deeply and wake up rejuvenated. Purple mattresses exclusive gel flex grid draws away heat relieves pressure and instantly adapts. Sleep better. Live purple. Right now save up to 900 off mattress sets during purples labor day sale. Visit purple. Com or a store near you. The first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. We just got an order from dinosaur, colorado. Start an easy to build, powerful website for free with a partner that always puts you first. Start for free at godaddy. Com some of the worlds top investors revealing their portfolio moves overnight. Leslie picker has been watching that for us. She joins us with the details. All night long. Just kidding some managers in digging through the filings, they are doubling down in big tech in the runup of the Second Quarter. The others, crystallized their gains. Youre pairing back exposure to the sector stakes in alphabet and amazon were cut in half microsoft, was trimmed tiger boost its stake in meta at quart ers end and it bought more nvidia. Selective in the tech space. Other managers buying into the rally. Don loeb telling investors its exposure to microsoft and amazon and google were offset by losses elsewhere. And we can see from the filings that their point did boost the stake in amd and microsoft took a position in amazon, worth 500 million and sold half of its stake in alphabet, googles Parent Company. Thats the one they did pull back exposure. Apple is bullish on tech adding to chinese tech names, as well. Two had slashing stakes in alley babby, jd. Com and li autoto name a few. They may have changed in the six weeks since june, especially for the managers who tend to trade more frequently. Q2 had been bearish for quite some time. Not believeling the rallies. The performance of many of the managers, tiger, loeb, hasnt been good. Tiger was up the first 15 of the year historically, they have been trailing the broader markets having any exposure to the shortside, especially last year, and a lot of the managers, loeb talked about this. We saw some of the filings we dont get a full picture of the short exposure we get a sense with put options. Thats something we saw with michael barry. He had notional values of puts against the nasdaq or etfs etfs that track those. And we received a letter from David Einhorn where he said he had some portfolio protection and hedging, giving where things were a lot of information. Interesting, leslie. Leslie picker. Still to come, the retail outlook with one analyst who says buy depot ahead of more results from that space. What investors need to know, as the nasdaq 100 just about 100 points shy now of its 50day dot vi ara ngo away. Welcome back im Pippa Stevens with your cnbc news update. Donald trump says he will release a report on Election Fraud after a georgia grand jury indicted him on accusations he and his allies tried to overturn the 2020 election. On his truth social platform, he promised to share the report next monday. The Fulton County District Attorney in georgia gave trump and other defendants until august 25th to surrender on felony charges hawaii Officials Say 3 of the 99 People Killed in the mau wildfires have been identified so far the county plans to release their names after their families are notified according to authorities, only about 25 of the fire zone has been searched so far meanwhile, a new analysis from moodys analytics finds the Economic Cost from the wildfires could total 7 billion thats about 1 billion more than the hawaii governors prior estimate carl, back over to you pippa, thank you very much. 1 declines on the s p and the nasdaq, down not that far behind lets get to kristina with more. Every sector is trading lower, following disappointing data and surprise rate cut out of china were looking how that is affecting the chinese tech space. The etf down 2 . Jd. Com, and pd holding and baba, with an weak start to august 10 cent music is an outperformer app the subsidiary had a slight beat along with the big jump in paying users kristina, thank you retail, a big week for earnings home depot reporting a Second Quarter beat on the top and bottom lines sales lowering as consumers withdraw from purchasing big ticket items ceo ted decker on the call, noting a revolving consumer dynamic. Heres what he said. As we continue to navigate a unique and uncertain v environment, our focus is operating with agility, while driving productivity and efficiency throughout the business in addition, and as we mentioned at our Investor Conference in june, we operate in a large and fragmented 150 billionplus adjustful market we remain committed to growing the business and believe we are well commissioned to capture market share lets bring in marcus lassar, who has a buy. Michael, encouraging news here, when it comes to being betterthanexpectations and better than last quarter in terms of the trends. They did reiterate guidance that implies what for the second half good morning, sara. What it implies for the second half, is the cycle is going through a bottoming process. Theres more evidence than not, suggests that Home Improvement demand is stabilizing. And more specifically, it suggests that comps are going to continue to be down in the low to single range in the next couple of quarters thats prudent in light of the volatility of the consumer environment. However, if i told you that the companys only going to see a midsingle digit decline in comes, even that its padded 5 million in sales, you would say thats a real win, given what has happened im sure, the Home Improvement projects over the years, and saying theres only a couple percent less is pretty remarkable not many Home Improvement projects at the household, i should say thats more a reflection of me, not anybody else i live in an apartment in new york city. Is it because of home depot, are you saying they are faring better than the rest of the category and gaining share or the category didnt have as sharp a slowdown as it could have postcovid . Its some degree of both. I think home depot is no doubt performing an executing at a high level both on the diy side as well as the pro side on the other hand, the category is faring well some of that is inflation, as like for like prices significantly. And some of it is the fact that consumers are engage ing in ther homes because theyre spending more time at home, unlike the hardworking anchors, most people are still having some degree of work from home that means that, as they spend more time at the home, theres more dents in the walls, crashes in the floors, that need to be repaired thats been good for Home Improvement demand the margin beat and some better sgna. I wonder if you think investors are hungry for more turns in operating efficiency or if they have done enough i think it remains to be seen, what the sustain of the margin has been. What home depot is doing is investing back in business its been in the associates to a tune of 1 billion increase in wages this year. Investing in technology. Allowing computer vision, to aid in the process of identifying inventory. This can be a profitable business when the cycle turns. We dont have evidence to suggest when that is going to be the case it will see a nice amount of upside we saw the take on the Different Companies that will be reporting earnings walmart on thursday, you cover that company, as well. Stocks moving up in the earnings print. Has it gotten ahead of itself . Youre right, david stocks been a beast we think thats warranted. Not only is walmart at the right place at the right time. It has a threepronged story, offering value to xaers to take out tasks that were labor intensive. And the pools that will drive the profitability of this Business Model to be better over time this is working the this quarter. To the extent weve seen high multiple stocks pull back on earnings because their valuations are full, that would just presents an opportunity to get more involved in walmart, which should be a good multiyear run from here. You cover target. You have a buy on all three. Which represents the best value of the three yeah, sara. Obviously, target represents the best value theres the most uncertainty our highypothesis that target should have an operating margin on par to prior to the pandemic. It added about 35 to its sales base over the last few years it has encountered ed ed turbs it sought to right size its inventory in this environment, where consumers have shifted away to impact the profitability. The theory is, as some of this noise settles, targeting will be in the good position that will see profitability thats on par with the past. That should drive significant upside over time making the optimistic case for all three, walmart, target and home depot michael lasse, thank you very much still to come, can the tech rally roll on to the end of the year the next guest seems to think so well discuss that dont go anywhere. Our top eligie spend category. Hi. You dont have to keep tabs on rotating categories. This is the only rotating i care about. Or activate anything to earn. Your cash back automatically adjusts for you. Can i get a cucumber water . Earn 5 cash back that automatically adjusts to your top eligible spend category, up to 500 spent each billing cycle with the citi custom cash℠ card. I love it. [voice vibrating] ill show you whats happening with the s p 500 its been weak all morning long. Losses decelerating. Its brought down by materials and financials and trading color here for you 4446 is the 50day moving average. Its an important level. We bounced off that and tested it the last two trading sessions watch that w if we break blelow, island could cause problems and were just above it. Tech stocks are part of the pullback the next guest says thats just a brief pause and the rally will resume after labor day, largely driven by spending on things like a. I lets bring in dan good to have you you continue to be bullish you say a. I. Is a 1995 moment happening before our eyes. What does that mean . I mean, it started the internet, in 1995. Its not 19952000 its the big transformation tech trend weve seen in 30 years i think youve seen some of the tech stocks pull back. Were right now, on the midst of a transformation tidal wave of spending that we could be 10 of budgets going into next year thats the green light on tech despite some white knuckles. The tidal wave is spending that the market able to suss it out, led by a handful of stocks, led by nvidia. How is that going to impact tech more broadly to that point, its about the second, third, fourth plays. Were seeing use cases for a. I. That are up 4x, 5x this is the drumroll of inflection growth. You look at names like microsoft and google and mondo and its an a. I. Play, as well this is led by software and chips. I think next week when we hear from jensen and nvidia, it will be another reaffirmation of what were seeing from the checks across the u. S. And asia use case up 45x. I look at use cases were looking for a. I. , were look right now at use cases that are in the 50, 60, 70. If i go back even call it a few months ago, were looking at 10, 12, 15 use cases across finance, marketing, health care, and Life Sciences thats whats happening. You had the initial buying now, enterprises and consumers every enterprise we talk to, 70 , 80 of the time is what are the a. I. Use cases thats why i believe some of the reactions of microsoft, off some of the other i the way im seeing it, this is really halftime of the super bowl part of your note argues that all of the worries about china arent going to affect, say, the projectry of iphone sales at apple. How can that be . Yeah. I think the big thing with china for apple, the hearts and lungs of the growth story. We believe iphone units will be up you look at iphone 15 over 14. Were not seeing a downtick in the channel going to midseptember launch i think the important thing to hear is that you have about 100 million iphones in china that havent upgraded in fourplus years. Theres pent up demand theyre gaining shares im not saying its rosy macros. Thats why cupertino continues the play chess while others play checkers i think iphone 15 is going to be, in my opinion, really a jawdropper, relative to expectations for right now with the street has for iphones going for next year. All right even with the concerns around china. Dan, i just want to go back to the a. I. For hype for a moment with all of the big trends i get that you are bullish on it and it will comprise more and more of enterprise and i. T. Spending, how do you separate the winners from the losers . It cant be that any company that talks about a. I. Goes up, can it theres always a hype cycle. And when that happens, theres money being thrown after companies that put out press releases that dont necessarily have the real goods. We spend the last six months on the road, trying to understand across europe, across asia, across the u. S where who is winning, where the trends are and how you play it you cant find an Office Building like a spread sheet, that many of us call a hype trend. Its a 1995 moment we sit here a year from now and look back on this, as a gamechanger that will affect tech for years and decades to come dan, we know youll be following it well be following you appreciate it. Thank you. Thank you another great summer outfit more on the markets with Bruce Richards, cofounder and ceo of Marathon Asset Management why he is saying the soft landing camp is wrong and where he sees opportunity. Dont go anywhere. Dow is under pressure, about 270 lower. Markets in the red all sectors in the red, many by 1 including materials lets bring in bob pisani. 61 declining to advancing stocks its choppy. I dont think you can blame all this on china although the news out of china isnt great economically you can see china etfs all down today. Mchi down. Down, there you go i shares the symbol there thats leading to the downside but market leaders this quarter. Its been a great quarter for banks. Put that back up here. Energys had a fantastic quarter. Banks and energy are market leaders and theyve been drooping in the last seven, eight, nine trading sessions transports were strong techs been underperforming so thats no surprise there thats weaker theres your leadership board for the quarter and its not looking good in the last few days here. So the Leadership Group had a great quarter for the banks. Comerica, keycorp drooping again. Caterpillars been fantastic and thats been drooping a alphabets been sideways and United Health had a fantastic quarter to start out the quarter and overall, thats been drooping as well. So the leadership droops arent there and thats been a problem for the market look at the s p. Were down nine out of the last 11 sessions. Its not people selling. The volume is light. Volatility, vix is 15. Macros still supportive of the soft landing chinas an exception valuations are a problem and they have been for a while i look at this for the pay trades this is the way you want to i think look at this the pain trade is what would cause the greatest amount of discomfort to the greatest number of participants the market is positioned for a soft Landing Strong growth today with retail sales and generally higher yields thats the pain trade. If that starts happening, the market is off sides and i think that is starting to happen right now. If you take a look at these yields we were talking about this morning that carl just referenced here, a little bit of relief today, but you look, were sitting here the highest yields since november of 2022 on the tenyear thats a major problem for the stock market right now Steve Liesman was talking about no landing not soft landing no landing and no landing is exactly this no landing is when the yields keep going up and the Economic Data is still strong and the fed has to keep keeping rates higher for longer i know were in a seasonally weak period and china is an issue but the pain trade here is starting to happen the yields come up the Economic Data remains strong and i think thats a real hiccup for the markets right now. Why doesnt it mean earni earningsest estimates are going to confirm trough q2 were in the blackout period, not official were halfway through the quarter. Todays the halfway point. Analysts say absolutely nothing because all the numbers are in unless we get some gigantic Economic Trend something really, really weird, nobodys going to change their numbers now for the next three, four weeks or so so the numbers right now indicate bottom q2 trough, q3 higher, q4 higher, q1, q2 higher 15 higher in earnings if the ange analysts are right, this time next year. Were positioned for the soft landing. The markets having a hiccup were down nine out of 11 sessions here and its not just because of china there is the pain trade issue. Where are we on valuation again, it just depends on how you measure it you want to measure forward numbers. Q1, 2, 3, 4. On that level, 19. 7 earnings rich, isnt it . More than rich. 17 is the norm when you were close to 20, the s p is rarely at a 20 times multiple for very long at all. Historically, just doesnt stay up there very long thats why you say the valuations arent compelling its a long, its a high multiple its a lot to ask for the stock market to stay up there right now. I dont think theres anything look, if we were, the market was truly panicked, the s p, the vix would be at 25 the volumes would be much, much higher than were seeing now were only 3 off. But this is how these things happen remember, what i said last week. 5 down happens very slowly because people buy the dip and theyve been trying to buy the dip for the last two weeks but past 5 , that goes very, very quickly. Interesting there was a turn around this morning on yields because we shot up and theres been buyers coming in on treasuries may be helpful bob, good to see you. Thank you a lot more quk tsawonhe street straight ahead dont go anywhere. Op calling each other rock stars . Youre a rock star. You are a rock star. No more calling coworkers rock stars. Look, its great that you use workday to transform your business. But it still doesnt make you a rock star. So unless you work with an actual rock star. Hi, im ozwald. Hello ozwald. Pam, you are a rock i wasnt going to say it. New natures bounty hair growth. Clinically shown to help grow thicker, fuller hair with just one capsule a day of advanced hair complex. Conquer hair thinning. And fall in love with your hair all over again. Only from natures bounty. upbeat music [narrator] what if there was a hearing aid that could keep up with you . notification dings this is jabra enhance select. Its a smart hearing solution that makes hearing aids more convenient and less expensive. It connects with your phone so you can stream calls and music. With jabra enhance selects premium package, better hearing doesnt have to start in a doctors office. 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Ali mccarthy on finding value in cheaper cyclicals about 1 declines even though yields, which shot up after retail sales this morning, have come back. Tenyears back to 417