Dow down about 30 points though fractional moves if you look at whats working in the trade, its not your Traditional Technology and consumer names its utilities, health care and materials. What is netflix big miss for the growth trade is this a warning shot of beloved technology darling getting too high expectation it might be tactically on the short term but i dont think long term. For you to see a true rotation out of growth into value, you actually need to see Economic Growth and acceleration and a little bit of inflation. While we are seeing improvement in growth, we still have a long way to go. Were definitely seeing the better growth. Look at retail sales, Industrial Production this week every week were Getting Better data whether it lasts or not because of the closure is a big question mark. We are seeing better growth. What we dont have is inflation. Thats what value needs to out perform growth for the time being, i think youll continue to see growth in value as i mentioned, tactically the stocks, the tech stocks are all over bought. They are very, very crowded. 20 of the s p is faang plus e microsoft. They account for 80 of the returns. Maybe we take a breather maybe these stocks sell on the news but maybe they give you an opportunity to buy back or add to on the weakness djenngenerajenny, youve beeg this expectation, do you feel vindicated here by the netflix sell off on the disappointment i dont think im quite in the position to be vinds indicated but im hopeful that the theme picks up and continues. What ive been thinking of in terms of expectations is they are handful of companies out there where the expectations its like a frog and princess. They move into a castle and live happily ever haafter. The rest of the market, my portfolio, theres a lot out there where the expectations are if they have been put out for the garbage, taken away and about to be incinerated. As we get earnings, im pretty excited to see those that have been thrown out be able to tell their stories. Show life, show they have growth show they have a future. Show they are producing earnings and real cash flows. I think it will be an interesting earning season i think netflix was telling today where they had good growth but it wasnt good enough based on expectations. Expectations are too high for a lot of the megacap Tech Companies. Courtney, what are you seeing from institutional clients on the tech trade and is this week the start of something bigger and longer what is kind of interesting is at luke capital where we cover institutional investors, were seeing folks trimming from a lot to have big tech names and using as an atm. Not because they dont believe tech, as i think its become a staple, not because of that or they think these companies arent going to do well. They are actually doing it because they have to reallocate. Are you doing that . Do you agree with that no. My personal portfolio, i dont have to trim from names i love like a facebook, theres no way to sell it right now considering the only alternative is a google i would keep it as long as i could or other names in the tech sector that i do like now. I am not trimming from those names. To emphasize exactly what you said just, 1 . 1 most of us are happy to get a positive 1 . Were not real thrilled about losing 1 . I think this is pause more than anything else. Im not over looking the fact that the stock is still down 6 or more that said they might add 5 million or 2. 5 million net subs im one of the guys licking his wounds after netflix im still looking for upside here yesterday when i spoke with a couple of be writers on cnbc about netflix and how tough this quarter is, we thought that this might be the break out this could be the first time they break that fever they they normally get in the second quarter. Own micro soft, apple. I think tech is just fine. 1 shouldnt scare people. Why did you sell in the last few weeks . Has that been over done . First, its up 64 from the march low. Thats number one. These advertisers pilling out is going to be a bigger deal than most people think and at the very least, it will cap the multiple theyre going to have to spend a tremendous amount of money trying to fix this and figure it out. Youre not going to get the operating leverage like we have been seeing over the last couple of quarters. I took some mup ooney off the te i was buying it in march and april and may. I feel like i made my money. Theres better places i could put my money by the way, netflix is still up like 60 or so for the year jenny, i feel like youre the closest one to getting into the value over growth, at least thats what your portfolio reflects and thats what youre talk about with expectation. The one question for people expecting value to continue the out performance as they have been so many times and theres been so many head fakes is if thats the case right now, why isnt the bond market backing that up. You dont dont get that rosy picture. I think this is where perhaps the said intervention has disjointed markets im in the sure that we can use the bond market as an i understand indica indicator i do think the gap is so incredibly wide. Its one of the widest historic points its ever been at growth was up about 15 on the year value is down about 15 on the year that spread needs to narrow because theres not that wide a divergence in the overall market between what the companies on each side of that have to offer in terms of future cash flow generation, future Revenue Generation i think i dont want to look at the bond market now. I dont want the look at the bond market either i was going to say i just dont want to look at it im all about stocks i think its appropriatearbell we talked about this a lot on the show. Theres pockets thats not been fit frd this reflation and the bond market and the fed doing their thing. I still think you want to own a combination of both. Well, industrials are the best performing sector on the week still down almost 12 for the year lets talk housing more strength here as builders ramp up production despite the pandemic june Housing Starts jumping 17 from may courtney, youve been adding to Toll Brothers. This is clearly a positive spot. Resaw new housing doing better than what we thought when you think about the trend, when you think about why i purchased Toll Brothers at the end of june and add it again when i was on the show on the 1st. I said work from home is here to state. Rates are at record lows you look at what millennials are doing, and this bodes well for millennials to buy homes and moving out into the suburban world but when you think about the lowes, home depots, millennials are out spending the generations prior when you think about doing more with your home that you have and refurbishing the new homes that you might be buying stephanie, i know youre exposed here in a few names. The one question i have on housing is the data looks good the 30year fixed Mortgage Rate dropping below 3 . How long can this continue if we are seeing double digit employment in this country with even the optimists saying it will take years for that to come down i think it will be very important in the next couple of weeks that Congress Passes a new plan plan 4. 0 in terms of fiscal package because they consumers do need help theres no question. The consumer continues to spend. Thats a huge number the retail Sales Numbers keep continuing to improve. Confidences is quite high and inflation is really low. The macro is okay for the consumer they do need some help Mortgage Apps are up refinancing up 12 you mentioned the 30year. This is very compelling. The problem is the Home Builders, they dont have enough supply i think you still want to own some of these names. Dr horton is the one i own its trading 11 times. They are seeing market share growth and they are seeing an improvement in in orders from this year to next year they still dont have enough product out there to sell. We should mention in the positive string of data points, Home Builders confidence is at the highest level since before the pandemic yeah and why not . So many people are seeking locations outside of where they are right now. A lot of new yorkers going up to connecticut and points elsewhere where wont be quite the density that they had in new york city its not just new york city. I say take a look at fastenal. This is one that supplies all manner of things for construction i think its up a little over 2 today. I think that one continues to perform well given the sub 3 mortgage you talk about drawing so many more people into new or rehabbed construction. On the rehab play, home depot continues to be a big winner its leading the dow today its been leading for a while now. I think youre in this name. Youre also in sherwin williams. Do you want the do it yourself refurnishing or refurbishing for us we use Free Cash Flow yield when ever we make a new investment the Home Builders werent available as investments but we love this theme. We trimd our home depot position about a month and a half ago it wasnt a statement on we dont love this investment it had just grown so much that it became an oversized position. We trimmed it a bit and are thrilled to see its going right back to where it was we are very long we think Social Security a terrific way to play the Home Builders as well as the broader economy. Any impact from the expiration from the stimulus benefits on the strength we is seenhousing. The bonus benefit. The mortgage forbearance will run out. Are we going to see an impact here i think its twofold. When i think about the positive side, i say, rents are more expensive right now than a lot of mortgages would be assuming that one, people are employed, two they they take the money they are saving and apply it towards down payments on homes when you take some of those things you can see how it is that you see improvement with Home Builders. Thats a big if and its a big if around whether or not we continue to see employment numbers do better. The consumer has the ability and some comfort in being able to take some of this Discretionary Income that they may have and put it towards these housing start numbers that were seeing. Im very optimisting and confident get the fiscal stimulus to see this pandemic through that people will come out on the other end ahead a lot of hope for fiscal stimulus an expectation that will come because its an election year. Congress better get to work on that tlans ports on a roll up more than 6 for the week best of weekly gain since early june you on u. P. S. And union pacific. Youre intari the airlines with delta. When i think about strength and tro transports, thats a signal that the economy is looking strong. Thats a v shaped recovery bet im not sure were getting that this week. Whats with the move i only want to talk about the alphabet with my 2yearold and 3yearold the numbers were seeing in transports the trucking numbers you think about the shipping and about what amazon is doing they are using trucks. Truckers prior to the pandemic were already very, very sparse, if you will. You saw a shortage in truckers as we continue to see the Trucking Companies doing better and the numbers that were seeing coming out of the summer, you look at jb hunt, they out perform. Theres a reason for that. I think continue the see that as it relates to the Trucking Companies in particular. The shipping will be huge. How are you going to get that amazon package its got to be shipped i wanted to get your take on uchl p. S. Which hasnt been quite as strong as the group whats the expectation in earnings its only up 2 year to date. It does have a 3. 4 dividend yield and has a good strong Balance Sheet as well. I think theres two ways you play out u. P. S they have a business to consumer piece. They have a business to business piece. The business to consumer is absolutely on fire as courtney just mentioned its not justamazon. Its u. P. S. And fedex as well. Im not as big a fan of fedex. They have some optional issues u. P. S. Will benefit from b to c improvement and eventually as you reopen and businesses can get open then they will start to see that improvement as well its flat on the year. The expectations are quite low this is the one im kind of playing. Health care hitting new high. Weve been looking at some of the big winners. The S P Health Care sector, one of the best performing groups second to utilities its also on pace to close at a new record dating back to the inception of the sector in 1989. Its also up about 5 in the last week. The health care spider, xlv hitting new intraday highs today for the First Time Since january 22nd thats a high. This tracks the Big Health Care names like j and j, united health, merck and pfizer Waters Corporation is up about 1 lab core up 11 week to date and zimmer up 12 . Back to you. Thank you jenny, you own a number of these stocks including pfizer thats having a good day. My question on health care is how much is being driven by covid19 given the fact so many of these Company Resources are all going there . Our company like pfizer, zimmer, we dont think much of it is being driven by covid19 all of these invest mented widel predated covid19 when we look at health care, were looking at them at these companies as whats going to happen when this is all over the covid19 and vaccine part is flash in the pan i dont know how profitable it will be for many of them it was negative because it put on hold all the elective surge surgeries they thrive off of they will continue to improve but the bottom line is are thesis on health care has nothing to do with covid19. It has to do with the fundamentals of these companies before all of this and well into the future jenny, what about increasing chances of a democratic sweep. Is that a risk to health care names or is that no longer a thing because were in the middle of a pandemic and we need them we have been thinking a lot about what the regulatory environment, if theres a lot of regulation that comes in, what that looks like. Historically that would have been focused on exactly lly who said i think that both of those industries right now might have built up so much good will that if theres a lot of regulation coming, they are not the ones that will be under attack. If anything, i would be more worried about the megacap Tech Companies and the focus of regulation on them in the next four years versus on health care and banking. I think its bailed us out of something that could have been even worse than it is. Yeah, seems to be a growing consensus. Ibb, bio tech also hitting new highs. Why are you still in it . Because you can make so much money all of those calls selling calls against it which is what ive been doing. Also, in onovio, that one had a significant pop today. I think it almost hit 28 27, 28 today i own both of those. Like you say, gilead, i think they are very solid. I think that the potential for the drugs like remdisivir and others have pushed up the premiums that you collect for being somebody that owns the stock and sells those. Thats why i continue to own gild lets hit software. Its been a tough week the igb etf tracks the group having its worse week since back in march josh thats the etf that tracks the cloud stocks its down about 6 this week its on track for its worst week since mid march and set to snap a fourweek winning streak granted this comes after a monster run. That etf is still up 770 from its march lows the surge is up to two broad reasons. One, business appeared better than expected and more of a structural change meaning we relay on these Cloud Services more than ever as we work, learn and play at home now da davidsons raises an important question here. He wonders given the pandemic and economic turbulence whether Cloud Companies will be able to close new business in the back half of the year before this virus struck despite that complicated backdrop and the big run, there are still smart places to commit capital here his top picks, twilio and zoom which offers a reliable product that will remain in Strong Demand back to you. Josh, lip ton, thank you very much steph, you have been adding to sales force. We know microsoft will be out next week. Sales force down 7 week to date to me, this is a group that was embl emblematic of the trade we were in the the market. The names were being rerated based on the fact these trends are forecast to stay for a while. What do you do with thee cloud names now and what do you make of the weakness . Ive been adding to sales force, ive been trimming amazon and i took that money and put it into sales force because it has lagged the cloud names its only up 14 year to date. Thats a lot less than some of its peers. They reported about a month ago and a pretty darn good number and they guided to operating Free Cash Flow of 16 to 17 . In realtime online demand was up about right in line as expected. I think that this is one that as i talk about total address of the market, the sass cloud segment within cloud, it could be a trillion dollar end market by the end of the decade i want to be part of that. I want to be in part of the leadership of this company and they are at the fore front of technology and still have a ton, a ton of room nternationally t grow and expand and gain market shares this is the one ive been buying and kind of a laggard. Trades at price to sales at eight times. Thats just a comparison, if you will hasnt been as hot for sure as zoom or crowd strike or some of these hours ibm, cocacola, tesla, microsoft and more well get you ready. Were back in two minutes. Dow down1 in 1pots hey lily from at t here. With some helpful tips. Tip 1 you can currently get the amazing iphone 11 for halfoff on at t, americas Fastest Network for iphones. Second tip you can put googly eyes on your stuff to keep yourself company. Uh for example, thats heraldo. Hes my best friend. Oh, sorry n