Transcripts For CNBC Power 20240704

It is down 20 again. The s p is down 26. The nasdaq is thinking onto a onepoint game. Qualcomm is down 9 after a disappointing Fourth Quarter. There is a slowdown in smartphone demand. Expedia had bookings falling short of high expectations. And we are watching the yield. The 10 year is up 4. 19. It is starting to get back near those october highs, which Rick Santelli warned us about. Lets get back to mr. Santelli. It is the chatter today, rick . The chatter is that there are some issues. Whether it is how much the markets move. Consider this. The fed raised rates a quarter point on the 26th. On the 27th, we had the gdp much smarts stronger. It is virtually unchanged, but it moved about 30 points. The spread has gone from 100 to now under 70. This is huge. Many say, what is going on with the higher rates . Well, the biggest curve trade in history was the twos to tens spread. Now, youre looking at the other side of the mountain. If you look at tens, 4 1 4 on the 24th of october, high yield close, that is the whole thing. If you look at the 30s, it is 438 on the same session. Lets go talk to a traitor, shall we . Hi, jason. Hi, rick. It is good to see. There is so much to talk about. So little time. It looks like equity had a minor reversal today. What are you looking at going into tomorrows big july jobs report . It is quite impressive how well equity has held up today, with the cost of servicing the debt being a huge topic now, and fitch disagreeing and downgrading u. S. Debt, it has made it more expensive. The last time we saw the seven, we had a 5 selloff. This is pretty impressive that the stocks have held up, with tech being the sector that has done really well in the last couple of hours. If you are to pick a whisper number tomorrow, they are looking at 200,000ish. If youre looking at the jobs, they have come down a bit. What do you think for tomorrow and how could it move the markets . It is hard to see this market cooling down right now. I think the numbers are probably going to be impressive and jobs are going to keep being gained. The fed will have to make a decision based on the cost of servicing debt versus the drop economy. And that is all that anyone is talking about. Okay . People are saying fitch is wrong. Lets define gronk. In 2011, last time, there was a downgrade on the debt of the u. S. You know. 0 to 25. A quarter of 1 . Where are they now . 5. 25. Servicing debt is going to reach 1 trillion faster than any of us would like. That is not a good thing. Carl, back to you. Ill pick it up, rick. Thank you very much. Bond yields are rising. Jamie dimond and Warren Buffett say, dont worry about the fitch downgrade. Should we . Lets bring in kevin mott point may be the timing is weird. It feels like we are going to shine more light on the deficits and the debt situation. What is the investor application, do you think . I think the downgrade by fitch shouldnt have caught everybody by surprise. They were on negative watch for a long time. It followed suit with the downgrade by s p some 11 years ago. But it is now a split rating. Moody still has the u. S. At a aaa rating and a stable rating, as well. I think the implications on debt marketing are that great right now. Psychologically, it makes everyone start to question, how strong is this economy right now . If the fed continues to raise Interest Ratesin the face of it, not only will it make it cost more for the u. S. Government to service their debt, but what about the consumer that but 180 billion on their credit cards last year, that are now facing credit card Interest Rates of 21 . Each time they are raised by another 25 basis points. That makes the cost of servicing that that only go higher. The consumer now has to pay off Credit Card Debt as opposed to spend. Perhaps we will talk about recession again. I dont mean to strain the parallel here, but there is something that reminds me this year of 1987. Im not suggesting that there is going to be a crash in the market, but you had a market that was rising. You had Interest Rates that were rising. Eventually, the two collided. The market didnt like it. What you think of that as we head to the Fourth Quarter . There is day of reckoning coming for the economy, even by the feds projections, they believe gdp growth is going to come back to 1 . They are also forecasting the rate next year to come down to 4. 6 . The following year, the come down to 3. 4 . If im doing the math correctly, they are coming down 200 basis points. The fed doesnt cut the rate if the economy is doing well. This is an intended consequence of the rate hikes. If we know that rates are going to be lower for the next three years, that yields are going to be lower for the next three years and that inflation is going to come down, listen, no, you can start to see very attractive Investment Opportunities with that two year outlook. What am i buying . A couple areas that we like right now on the stock side of the equation are in the sectors of technology and also the sector of healthcare. Healthcare you can play through different ways. Largecap from cervical companies. They have grown their dividends at nearly 10 . You a smallcap pay, look at some of the smaller biotech names. Pick up activity there. When i look at technology, of course, the microsoft, the alphabet. How about Analog Devices . They had a fiveyear dip and a growth rate of 11 . They are in that allimportant chip space, focusing primarily on chip manufacturing in those areas. Those are different ways to play this slowing economy. Lower rates and the opportunities over the next few years. Now you have people worried. What if we dont have lower rates . We could show the dollar here, as well. The trading action the past couple of days, yet the dollar under pressure. Bond yields moving up. This feeling of almost, can we really absorb the issue . It will fund the deficit. And at what price . The fact that we have been funding it at 5 , of course Warren Buffett is happy to buy that. Who wouldnt by the 5 . Its a gift. The flipside of that is what it is doing to the deficit. I guess the real question here is, can we be so sure that we can go back to the old normal of lower rates and that happy environments . It is something a little bit more chronic. If we are patient, we can. We should remind investors of this diverse portfolio. If the dollar is under pressure, if it continues to weaken, if we cut rates and that brings down the value of it further of the u. S. Dollar, well, opportunities abound internationally in both developed markets and emerging markets. Maybe now is the time when you can diversify your portfolio into sectors Like Technology and healthcare with different rocket camps, such as the smaller cap. And to put it a different way, it is weird because he up to possibilities on Something Like this fitch downgrade happens. He could have the flight to safety. They can buy treasuries. They bid up the dollar. Or you can have the opposite. It is worth noting that we are seeing the opposite lately. The 30 years moving up, he says he is shorting it. Hes trying to time these things. We are not going to go there, but the reaction this week has been one that tells you not that we are benefiting from this, but it seems to be the opposite. I think if youre looking over the next few years, youll get the 30 year in the 10 year treasury, they are coming in anywhere between 25 and 50 basis points. That is it over the next few years. The shorter end of the curve, the fed funds are going to come down over 200 basis points. All of that movement will be taking place. So should i buy short duration bonds, short duration treasuries today . A twoyear treasury . I think if youre looking over the next two years, you want to be at the longer end of the curve. Yields are come down. It is going to impact the lower end of the curve, if you want to lock this in. That may be true. Do you think these yields are going away and this is the only time to get 5 , or i dont know where this is at. 480. You fast for the clock. Youre going to be at 280. You want to get it now. Those are even higher. The curve is inverted. But then you have the reinvestment. And where do you put that money into the market when yields are expected to be lower . You need to build a balanced portfolio. Municipal bonds is a great area right now because of the supply and demand that exists for municipal bonds. But the stock side of the equation, the next six months will be choppy. Next year is an election year. That will create untold levels of volatility. If we look over the next few years, when rates yield and it will be lower, i think the markets will be high. All right, kevin. Thank you very much. Coming up, the as have it. Two big tech earnings on deck. Apple reports its Third Quarter in a row of declining sales. Can turn demand around . Plus, amazon, retail usually takes up the bulk of the attention. Wall street is focusing on cloud this time around. We have a quick power check on the Positive Side of the s p. Clorox is up nearly 6 . Whiter whites, gaining, following positive results, Dxc Technology is down 30 . We will be right back. vo Verizon Small Business days are coming. From august 7th to the 13th. Now is the time to partner with our experts. Get started today with verizon business. Its your business. Its your verizon. Welcome back. Apple stock is up 15 . It is a strong run, yet iphone demand is expected to be weak once again when the Company Reports later this afternoon. Steve kovach is in cupertino, with a preview of what to expect from apple earnings. Hi, tyler. Revenues are expected to be down for the Third Straight quarter. It is up nearly 50 . Like you said, demand has been really tough on not just iphones, but all consumer gadgets throughout the industry this year. And the real question going into this Earnings Report is going to be whether or not we see some guidance from apple on the recovery in that demand. So we are also expecting some stories out of countries like india and indonesia, but not enough to make for those markets like china, which have had some very troubling Economic Data over the last few months, which is the opposite story of the united states. One thing im interested to hear from tim cook is any outlook or commentary from the strength of the u. S. Economy right now. And besides iphone sales which is the most important segment, but services is another thing to watch. We saw last week, meta and google reported a resurgence. Apple could benefit through their App Store Apps and things like gaming could also help with apple revenues. In the guidance that we are expecting to hear on the call, not formal guidance, but just some guideposts to get us through into this current quarter, morgan stanley, on the list, expecting a resurgence in group growth, which is an important part of this story as they hit this plateau. Steve, thank you very much. We will be waiting for your report later today. For more on apple, joining us now is krish sunjar. What kind of guidance can you give us. I guess we should not that this is their third fiscal quarter. It is usually historically their least favorable one. Hey, guys. Thank you for having me. A couple of things i would say. The june quarter is typically the slowest. Usually what happens in that june quarter, they have the iphones. They make up for the iphone that will launch in september. That is why seasonally, june is the weakest. We have the june quarter revenues down 2 yearover year. We are expecting september to be up here after your coming to those gym devils. Overall, the iphone has been healthy, despite the fact that smart phones have been lackluster this year. So the stock is up very strongly this year. We see 40 year after year. It has certainly slowed over the past month or so. What would you expect you have a 220 price tag on it. How would you expect it to react after todays report . That is a tough question. Im tried to figure out the next day reaction. Let me put it this way. One of the benefits that apple has had is going into this year, is the general view that we are going into recession and hard landing. People tend to gravitate towards safety stocks. Apple is one of them. They have a solid balance sheet. So i think those have been attractive. What has been added on top of that is the fact that many expected the iphone to start slowing because you see the weakness in the nonpremium smartphones, if you look at the chinese smartphones, it has not seen a recovery it. Apple is resilient. They came out pretty strong. That is added on top of the safety stock value of it. Everybody talks about ai. And nobody is doing anything about it. Now. Everyone talks about ai. Do you expect cook or anybody on the call today to talk about apple and ai . Or not . Im pretty sure it is going to come up and they are going to give an answer. I would say that it is more about the plans. Keep in mind, you know, the chips that apple designs, the letter a series and the letter m series have a neural engine built into it. They introduced some of the ai algorithmsin the chip that was launched in 2017 for iphones. So there are some ai capabilities built into some of these chips. The question is how much you want to extrapolate beyond that. This is a comedy that is largely driven by iphone sales. But that is not all they do. They have earbuds. They have ipads. They have macs. What about that side of it . People dont pay as much attention to that side of their business. Talk to us a little bit about that. Sure. You are right. The iphone has been the cash cow for the longest time. It has been remarkably resign. If you look at the hardware side of the business, you have the air pods and watches. I think it will be down this year. Last year was a very strong your bid this year, loosely, you have to factor in the metro. I think because of the hardware, this could come down. Last year, they had all of these other categories. This should still be pretty good. All right. Thank you very much but we appreciate your time today. We will be watching apples results later today. Thank you. But that is not on. Amazon also reports that the stock is up about 50 on the air. Theres a lot riding on the cloud business. Let me tell you why this is so important. It makes up less than 20 of amazons total revenue, but it is the revenue. It got advertising off the ground. Wall street is expecting growth of about 10 . That has come down significantly over the last few years. 6 4 ago, it was 40 . That has come down. If it is lower than 10 , it can fall into the mid single digits. That could create worries on wall street. It is not just the backdrop that is hurting this business. It is the profit engine of the comedy. Maybe there is something fundamental here like increased competition from the likes of microsoft and google. Another thing that we will be watching, investors will be watching is the spending. Remember that amazon spent all this money during the pandemic to essentially double its logistics footprint. Now, it has to spend on Cloud Infrastructure to allow its aws, its called customers to take advantage of this ai shift. That will be interesting. We will be on the lookout for that. The twin marks up, google, and meta, it was mentioned 37 times. We will see what happens on the amazon come. And lastly, i want to note how amazon has done. It has outperformed this year, but if you look at a 12 month basis, and even a five year basis, amazon has been the under performer. Investors have wanted to see that efficiency. That is going to be a focus at a time when spending might be going up. Back over to you. I thought it was a nice gauge of sentiment. It says something about the times, deirdre. Bank of america said the most asked about retailer that we are getting is not amazon. It was floor and the court. So either way. Yeah. Remember, their core business, it doesnt make nearly as much money and at a time, when investors are interested in profitability, that is aws. It is a much smaller business at this point. It is going ast, though. Thank you, krish sunjar one. Coming up ahead, a very important ip. The strike ridges on in hollywood. After the success of barbie, companies are looking for established ip. We will have more later. Tech check is powered by comcast business. Choose any car in the aisle. And manage your rental right from the app. So you can mix work. With leisure. Or leisure. With work. Giving you the control to find the perfect balance. Go national. Go like a pro. The biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. It still does. What can you do with spy . The first time your sales reached 100k with godaddy was also the first time your profits left you speechless. At the counter or on the go, save 20 with the lowest transaction fees and keep more of what you make. Start saving today at godaddy. Com welcome back to power lunch. The Energy Stocks are leading the s p. Everything run is happening. Rates are higher. Oil is higher. The dollar is weaker. What is going on . Remember, the Saudi Energy Minister called this the lollipop back in june when they first introduced it, saying it is the market sweetener. Russia extends its export cut, although that is tapering down a little bit. I think what is really interesting here is that the market was anticipating that saudi arabia would extend this cut, but they also said that they could extend it even further, or extend it and deepen it. So once again, showing that for the first time, they are really taking matters into their hands. This is from opec. This is saudi arabia acting on its own and saying we want to put a floor on the soil prices. That is moving. One other stuff to watch is son run. It was heavily shorted into earnings. I dont think that there is optimism about the solar market. There q3 guidance was muted. They didnt give any big projections for growth this year, but they did say that their Battery Storage attachment rates are growing. That is positive. That is highermargin for them. They introduced cash targets for the first time. I think it is more specific it is Company Specific rather than for them as a whole. It is for homeowners. You have solar and storage. California changed their Net Energy Meter policy back in april. No, it is more advantageous to have storage as well. That helps california. They have all those great problems. It behooves them to encourage consumers to get not just solar, but that storage. So if you can store some power, this is a big leap forward. Also if youre looking for great reliability and the idea that your power will move beyond, having rooftop solar is not enough. You need storage. If you only have panels, if the main grid goes down, your system will go down. It will only work if you also have storage. If youre looking forward to ensuring power relay but ability does reliability, you need storage. Former President Donald Trump is traveling to the Nations Capital to face charges in his latest criminal indictment. Trump is accused of breaking the law by attempting to overturn the 2020 election. He is expected to appear before a judge at 4 00 p. M. Eastern time. It is possible the Supreme Court could take up a debate over bathroom access for transgender students in indiana. That is what a federal Appeals Court said today, when it upheld the Lower Court Ruling that transstudents in the state must have access to the bathrooms and locker rooms consistent with their gender identities. The courts suggest that the High Court May hear the case or cases similar to it. And as someone tried to reach you about your cars warranty . The people behind some of those calls are being slammed with a big fine. The sec said today an International Network of companies were responsible for 5 billion robocalls, to 500 million numbers over just three months in 2021. Im sure i was one of them. The agency wants to find them nearly 3 billion for the operation. But they will move on to asking about student loans, which, you know, sometimes, pick up the phone. I said, pay those 30 years ago. 3 billions billion in fines sounds like too little to me. After the break, we will take a look at a Company Using storefronts and most to build courts for the vy erpopular sport of pickle ball. We will be right back. Next to no interest, the fees. It was just take, take, take. So i broke up with bad banking and moved to sofi checking and savings. Now i get higher interest, pay no account fees, and get my paycheck two days early. Get up to 4. 40 apy, pay no account fees, and up to 2m in fdic insurance. Download the sofi app and earn up to 250 when you set up direct deposit. Sofi get your money right. 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. When you look at pickle ball, you dont think it is anything until you get to the court and see everyone having a great time. So many people can play. That is one of the things that i pushed back on. He was like, come check this out with me. You see what is going on. That was kevin durant at the game plant summit, discussing the rise in the popularity of pickle ball. Where is the game going now . To the mall. They are trying to turn shopping malls and typical molds. We have was shaw, and steve kuhn, the founder of Major League Pickle ball and a former hedge fund manager. Steve, how fast is pickle ball growing . I have never seen a sport grow at the pace of this one. It is so much fun to play. He gets up plate with a wide variety of people and have the best time. This is exponential growth. Its unbelievable. And so, wes, what led to the idea of taking over old, sometimes dilapidated, sometimes vacant mall space, and turning them into pickle ball courts . So it is kind of twofold. One is that in residential areas, there is a noise problem. And then there is a lack of courts in the u. S. Right now, in america, for every one pickle ball for every 270 pickle ballplayers, there is one pickle ball court. It is a huge gap in supply and demand. The other aspect of this is malls need something to bring people in. They need Entertainment Concepts that are going to bring in people from all larger trade area. That is ultimately where it came from. So, steve, how many of these facilities are you operating now . How many do you plan to have lets say three years down the road . We are having our grand opening on saturday here in tempe, arizona, at pickle mall arizona. We hope and want to open eight by the end of year. The demand is absolutely massive. We have a great partner and seven properties, the biggest all minor and developer in america. I think they value what we are bringing to the mall. We are bringing experience. We are bringing new people to the shopping mall. So wes, what do you think let me ask you this. We are in the malls do these courts go . Do they go into old stores or bed bath and beyonds or what . Exactly. This store originally was a jcpenneys that went out. And then, it has been sitting vacant for six years. So 104,000 square feet that have been sitting vacant in the small, not bringing in any traffic. I have played a Little Pickle ball. I must say, i enjoy it because it is about my speed. I dont have to run as far. I dont have to run as far as i would on a tennis court. I think it is an easier game to play than tennis or paddle ball. I agree with that. And here is another thing. In an hour of pickle ball, you hit the ball 10 times as much as in an hour of tennis. I love tennis. I like to play. I like to watch it. Pickle ball, for a lot of people, it is a fun thing because you get to hit the ball so much. That is joyous in and of itself. But you also get better, quicker, as youre hitting the ball a lot. So gentlemen, i have to confess, i tore my achilles tendon last spring, not playing pickle ball, but when i went to my doctor to have surgery, i asked him, how is business, he said, the best thing for my business in the last two years has been pickle ball. Here is what i would say to that. There have been some stories about pickle ball causing injuries but what i would say is that the reason that is happening is because we have tens of millions of people having fun, getting out and exercising. The Health Benefits are vastly higher than any health costs. I found those stories to be silly, to be honest. Yeah. But if you have lead a sedentary life and pickle ball if solves a lot of bending and reaching and putting pressure on your knees and quick movements on the achilles, you can see where, if you are not accustomed to it, you might pop any every now and then. It is definitely a possibility, but that is what exercise is. Sure. You can run. I remember the crossfit think getting the same treatment. I think pickle ball is making tables lives much more fun i dont blame pickle ball for it at all. And i would observe, by the way, my husband is having a harder time finding tennis partners because everyone is playing pickle ball. The next generation, they are doing these sports instead of tennis. Anyway, just as a side note, so, wes, one thing i do appreciate is having more stuff to do at a mall. How many more malls do you envision yourself with . Youre in a stamford connecticut mall. They have had a lot of things like this. How many malls and locations do you expect to have . How much does it cost the play . Yeah. Right now, we are hoping to have 50 locations after your 2. And then for cost of play, if we can talk about it, we have a membership option. It is accessible to all income levels and demographics. I thought you were going to say 99 per year. Wow. All right. How often do people come on the monthly membership . Right now, we opened up our monthly memberships on monday afternoon. We have already had 60 memberships. Pickle ball people will play everyday. That is everyday. They get hooked. They get really addicted to it. It is fun. And i think it is good that you are doing it indoors because that thwock of the ball, it can keep people awake. Best of luck with the new venture. Thank you very much. Appreciate it. You are really seeing it everywhere. You see it everywhere. They are converting Tennis Courts to pickle ball. Exactly. Coming up, franchise feel. Franchise brands are helping drive results for american corporations. The super marios brothers movies let the great things for nintendo. Will the tank run empty if the hollywood strike drags on . We will discuss it, when power lunch returns. Welcome back. In the media space right now, it is all about the ip, especially as strikes. Content scarcity. Mattel and nintendo had success with their ips. Nintendo sought success with super mario and with its newest sequel to sell the. Hasbro has sold its units as the strike goes on. So it was refreshing to finally have new movies about new things and not just superheroes all the time. But the strike continued. Where else can people turn for ip . With these franchises, whether it is barbie or hot wheels, these are familiar franchises. But you have not seen them in the movie format yet. I do have to point out that the thing with hasbro is that going back to 2010, they thought they were going to make a big push into mainstream entertainment, and they bought this studio, e one that does the likes of yellowjackets and the women king and these Entertainment Properties that are not associated with their brand. They said, lets get rid of these Entertainment Properties that dont have to do with our brands. Lets hold on to the core family brands. So they are maintaining the ability to make content around the likes of their masks. And also, transformers. Transforms was a hasbro property that they turned into films way back when. I think theyre going to be working on trying to expand other franchises in the same way that transforms has had a long life. So i think the key thing is familiarity with being sick of it. What took mattel so long to make barbie . It was a film those in developed for many years. They wanted to do right. They have done plenty of animated films for kids. Mattel has. They hadnt made something that really had this sort of broader cultural residence. They went down the road for a while, trying to make barbie with amy schumer. They landed on margot robbie. These films take years to develop. The hot wheels one is one that has been in development for years. It could be a very big one. It isnt resistance on mattels part to using their toys and their library of toys. Now. They would still need writers. Yes. You cant just say poly market and make a movie. Right now, mattel has over a dozen other films in development. I dont know where they are in terms of whether the scripts have been turned in, or if they are concepts, but youre right. I now, we are in a weird period, where we can see a little in the kind of content that is coming on the tv because the tv industry is going to be hit first from the strike. That is where we will see the first impact, but all of these players, whether it is hasbro looking for the next transformers movie or how to turn another property into a film, or whether it is mattel, they all need writers. And those studios have managed to just finish shooting things, they are in better shape. In the fall, they will see film release schedules impacted. We will see tv releases impacted. So how will the broadcast networks of which we are apart, how will they compensate for the dearth of content . This fall, it will be a big focus on reality tv and sports. We always talk about how valuable sports is. This is another example of why sports is so valuable. Pickle ball. There you go. I think youre going to see a lot more docuseries. More pickle ball or whatever that might look like. Tv will be impacted first. There are some shows that have been shot. Netflix has many series that they shot and that they are sitting on. Youre going to see the film, whether it is based on a hasbro character or not, the impact will really be felt next year. Julia, thanks very much. It is always great to be here. Well, the fl preseason kicks off tonight with the annual hall of fame game in canton between the jets and the browns. Brian, are you going to watch tonight . But he is a jets fan. It seems like a great excuse to check on our stock standings. Check out boot barn, searching on a big beat for its first quarter. Charlotte flare continues to lead the competition. And, yup, we will track some other big members of the day. We will check on that after the break. 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. Ahhh icy hot pro starts working instantly. With two maxstrength pain relievers, so you can rise from pain like a pro. Icy hot pro. Time for todays threestock lunch. Were looking at three big movers on earnings and here with our trades, victoria green, gsquare private wealth cio and cnbc contributor. Lets start with clorox, shares up on a Second Quarter beat. How do you feel about this company . Look, phenomenal strong beat. My problem is the premium youre paying for the stock right now, theyre trading about 40 times multiples. Unilever, 14, 15 times, kimberlyclark, 15, 20 times and Procter Gamble at 26 times they have a history, the last two earnings they had a really nice pop on their Earnings Announcement and then given it right back they did that in february and in may. And so it is something im just not believing this and im a seller mostly because of the price and the multiple is such a why is it getting that multiple versus its peers . Growth rate or what are people looking for here the lifestyle factor has done well it grew 15 . A lot of this is a little bit of a holdover is from the pandemic. They have such strong name brands that people still love their clorox and there are strong Consumer Staples stock. Hard times to be owning a hard multiple staples in this cycle. Thats like the same as microsoft at this point. How about paypal big losses, down 11 , more than that right now the results were in line what would you do with the stock . This one im still selling. It is for two fold they couldnt hit. Even after cutting 7 of their workforce, they couldnt hit that margin estimate of 22 . They miss on that. The margin continued to shrink, struggling with the loan portfolio. Theyre having to write some off and they dont have a ceo. Theyre still searching for their ceo, so the direction of this company may change and theyre facing a lot of threats. Over the next five to ten years, fintech is going to change dramatically if you look at what apple is bringing to the market, google and the blockchain and the bitcoin Type Community may bring and how payments may shift, i think there is a lot of threats for this stock and going to be difficult for it to continue to grow profitability and grow margins. What are the other brands that paypal owns venmo venmo is the other big one venmo lets move on to etsy. Shares are down, despite a headline beat on revenue and profits. So, what do you think about etsy setsy is a buy. I think it is a fairly strong beat if you dig into the numbers, they looked at gross Merchandise Sales that grew in may and june and gave guidance theyll continue to grow in july this platform has been investing a lot in improving their search, bringing in a. I. To drive customers and theyre seeing in Customer Growth. There was some great green chutes in the Customer Growth side i think the stock is a buy they have great support between 80 and 82 and they invested in their platform and continue to grow and bring on new customers. So, look past the fact that they have no uptick to their guidance, it may be conservative vi tro to beat in the second half. On an upnote there, victoria green, thank you very much thank you, guys. A lot more stories you want to hit with just a little time left, it is closing time when we return with its customizable options chain, easytouse tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. E trade from morgan stanley. Power e trades easytouse tools make complex trading less complicated. Custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. E trade from morgan stanley. upbeat music constant contacts advanced automation lets you send the right message at the right time, every time. constant contact. Helping the small stand tall. 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. Welcome back three minutes, four stories. Lets start with the news about bud light owner ab inbev, beating forecasts and seeing profits rise year on year despite the boycott that led to that sharp decline in sales of bud light. The shares are up 1 , still down 5 year to date, but much more resilient, shall we say, tyler, than expected. This is kind of a surprise coming out of the controversy over the influencer whom they embraced or did an ad around that seemed to anger both progressives and conservatives. Absolutely. We saw molson coors, so many beneficiaries didnt expect they would be amongst those beating. Travel spending is heating up and the u. S. Seems to be losing out with Many Americans choosing to head abroad according to hopper, International Airfare with a 10 increase from a year ago domestic round trip prices are down 11 to 250 on average. Meanwhile, marriott reported growth in the u. S. And canada, up only 6 year over year, while its International Markets surging 39 . I think a lot of people postponed going to europe over the past few years and now are succumbing and going over there. Instagram effect ill call it. It is ill tell you. One hot city right now, as it has been is amsterdam. Yes. People are swarming there and theyre trying to it is not cool anymore. It is not cool anymore if you want to help yourself forget about a wasteful purchase, by the way, you should pay in cash. Stanford University Research found paying with cash makes it easier to forget a regrettable purchase ever happened it can lead to Financial Infidelity like hiding a purchase from your spouse. When you get a statement, it reminds you of the money you spent. I think paying with cash also makes you less inclined to do that i agree. That sort of spontaneous purchase because you have to pull out bills im the opposite. Or writing a check. Right, exactly. Finally, it is getting harharade and harder to bring home the bacon. Prices of bacon, pork bellies is what it comes from, the cut of meat used for bacon, prices going up it is not the same Inflationary Forces we have been talking about. This latest surge comes in part because of a New California law that requires pigs to be kept in larger pens for humane purposes. Yes as we have already seen the move, if you buy free range eggs, theyre more expensive than traditional eggs. In this case, it sounds like theyre not leaving the marketplace much of a choice. Anyhow, maybe a little less bacon on the burger. Maybe thats the goal. Maybe thats not all a bad thing. Exactly. Better for the pigs we got a very flat market today. Down a little bit, still feeling a little of the hangover, i would guess, of the downgrade by fitch. Watch bonds, watch the dollar an interesting couple of weeks watch power lunch tomorrow. Well talk about jobs and everything thank you for watching us today. Closing bell starts right now. Welcome to closing bell. Im mike santoli in for scott wapner here at post nine at the new york stock exchange. This make or break hour begins, the stocks atempting to find their footing today in the face of fast rising treasury yields, morning dip in stocks finding buyers in the s p 500 just below the 4500 level as another blast of big tech earnings and jobs report await you see the major indexes pretty much flattish going into those