Link, hightower chief investment strategy, cnbc contributor and pretty good golf im told. Hmm not so much. Good to have you on how do you review inflation data and did it change any of your expectations about race, the fed, the markets and it didnt change my thoughts. We are making progress, though, brian, on the numbers. Right . Look at, say, cpi, 4. 7 year over year, 6. 6 at peak. Making progress. The problem, rents are still sticky, 99 of cpi shelter. And increased. 5 from. 4 number is getting to 2 where the fed wants get to to for cpi. A long ways off. Then look at, by the way, you follow energy really close right . Look at ppi numbers today. Acceleration month over month in headline number. Nots even including the 24 gain in Energy Prices from the june lows i think next month, next couple of months, youll see elevated ppi numbers. Then add in the economy, which is a real bright spot. Nobody thought we would see gdp accelerate each quarter this year everyone said beginning of the year, First Quarter peak in gdp. Wasnt 2 First Quarter 2. 4 Second Quarter and atlanta fed gdp at 4. 1 in the third i think the numbers coming down not 4. Wont the cpi, ppi, the other pi, magnum, whatever you want to talk about, wont meet large numbers and not grow anymore because theyve grown so much. Say inflation is coming down r down only because it went so high each fn it tapers off, troubling. Sure youve been to the grocery store. I know. Its not pleasant. Prices still high, and you have an economy thats hanging in there, which is going to lead to increased inflation going forward. So, to me, i just dont think the story is over. You asked about the feds in my view, i dont know if theyll going to september may pause, right still on the table the point being is, rates remaining high a longer period of time and not easing anytime soon may spend a year and a half trying to get it under control and dont have it under control. Only to hang around and ease by the way, look at another bright spot. Not only is the economy doing well, leading to decent earnings highlighted at the top 80 of Companies Beating and thats broadening and different last couple of weeks encouraging. So a big part of inflation is wage gains and wee being capitalists want everyone to make as much money as he or she deserves good for them. Yep. They will go towards inflation, example, a stock you like talking tab before the show. U. P. S. Big new deal with the teamsters union. U. P. S. Driver with tenure making 170,000 a year. With benefits, good for them by the way, love my u. P. S. Driverer time shows up. Because economy is doing well. Comes to my house not a stock you like huge cost increase for ur. P. S. , butty like u. P. S. Waiting for this. Expecting it didnt know the actual numbers numbers came in. Reset numbers lower, and now its out there thats fine. Going to cost them a lot but meantime, just reported earnings they had better u. S. Package growth, the economy. Better pricing and productivity and efficiency measures underway stabilize margins and move higher gradually when you have a good top line and better margins, positive operating leverage and getting credit now 17 times forward, massively underperformed, fedex. Almost 40 , 50 year to date and ceo. Not betting against her. Take a huge unknown, now a knownknown. Not a knownunknown. Bring up guys, threeyear chart home depot another company you like interesting take make a bear case easily. Higher rates, but also say wait a minute no ones moving. Nobodys moving. We know that data worse in four years guess what stay in their home because of interest rates, fix it up. Yes meantime, new home sales are at best level since march of last year a little of that kicker too. This company is doing a great job increasing market share, they, too, productivity under way. A Great Management Team and initiatives, ecommerce, pro, fixing the supply chain. Not a big problem for them i like them. A little risky because they report earnings next week. Right . So what. Ill buy more if stock is weak. Numbers arent at good . 80 of the company, earnings i know. A good cfo. Right. The number to get to. Im winking. Right this is what i do. Try to buy best in class on sale right . Home depot, number one in the industry u. P. S. , number one in the industry both stocks lagged yeartodate, had issues, but given traffic they will fix them and, the track record, and understand the quality and what you get i like both names and have extra cash around earnings season on purpose for this very reason. Dry powder, called, i believe. Sit tight. Bring in a couple new voices to the conversation as well malcolm, cic Wealth Management and from wealth enhancement group. Malcolm also a cnbc contributor. Malcolm, start with you. Anything you heard from steph that you agree or disagree with . Yeah. I think i agree with stephanie on this one and about the economy overall than where powell is probably going in thinking focused on core cpi number entire time. Made it clear core cpi, owner kwiv learnt rents since the very beginning were the thing really thattal would move the number and make the decision for him. I think probably committed a little bit more to a raise actually in september. Stephanie sounds like they is but i think were thinking similarly in the sense that the fed is not done. Whether a pause in september and then hear Something Else in november or we hear a raise in september and thenner in raise in neff depending how aggressive they decide to be either way, feds work not done. Last couple pounds fed trying to shed of inflation oust economy will be hardest and stickiest. Thats where being willing to stay disciplined and stick with it will matter, i agree. Unless the Federal Reserve somehow knows how to bring down rents or give people pay cuts i dont see how theyll impact wages or shelter from a market, investing perspective, do we care if the fed ra raises once or twice hero stays here one of the fastest cycles in history already jnktsz i think we do. The reason they want to control shortterm rates, let us feel less prosperous to spend a little less. Make it more expensive to upgrade to the next house makes me feel less prosperous, cant get the next tesla to feel a little more prosperous compared to my neighbors whose cars are also in the driveway sentiment perspective that additional couple Percentage Points with interest hikes will make a difference psychologically. Ultimately what the fed is after. Convincing us to stop spending money. I think is actually already happening. Probably find out a little of that with home depots numbers talking about. Some other retailers about to report. I am. I think the consumers tapped out and were about to find out how close to end of the rope. Your take on all things just talked about or throw something new in why not. Its friday. Have fun. Brian, thanks for having me i do think that it does have a big impact in the market when you look at the the expectation for fed rate cuts in 2024, theres a probability of a cut, i think, as early as march or april of 2024 i think that needs to get priced out of the market. You know i think the fed will really want to hone in on the fact that they are going to see rates higher for longer really needs to get priced out of the market. Thats going to impact yields, impacting valuations on the equity side. How do we make money now . Up 17 nasdaq up i think nasdaq 100 up 41 , 40 . How do we make money from here on out sure. I think multiple ways. A. , fixed income still attractive with really good deals. Take advantage of the great run in equities. Take some off the table and maybe launch into some of those deals. Secondly, from individual stock perspective, we think you can take profits in some of these great tech names not get out of them. Want to stay in them for the long term. Find the opportunities find the home depots, the u. P. S. We like cvs same reason. Throwing out names randomly, u. P. S. Didnt sound like an accident. Theres 5 trillion on the side, right . Sideline who are these sidelines the cash sidelined what are you talking about . Cash. Getting something on the cash but on sidelines too many things really, so offsides in terms of negativity. So dont you want you want some cash allocation i dont ever want to have no cash anywhere. No. There are alternatives now we havent seen them in the last ten years. 5. 5 for a taxfree cd, not bad. Save 3 , 4 , 5 , not great. Longterm average s p 500, total return 7 . 7 a nice run this year not saying it cant continue i think shop around personally the next couple of months but people chase to end of the year for sure i think theres money on the sidelines for people not believing, the economy is held much more than people expected earnings held in maybe dropping in earnings a great job in terms of margins. I have ideas its not like, not the highflier technology company. Maybe boring to have to talk about u. P. S. , talk about home depot. Making moneys not boring. By the way, ford, 25 Company Going total revenues 20 . Margin expansion of 100 basis points per year. Free cash flow growth of 20 i can find names to buy, just not the whole index, but pockets and love the fact broadening out in the overall sectors thats, to me, super healthy and i feel a lot of cyclicals. Energy doing well ah malcolm, i dont know if stephanies looking at my notes. Save this for last call, 7 00 p. M. Because i like you, roll it out now. Sop. Oil and gas. Up seven day s in a row energy best performing sector last couple of months. Still no ones talking about almost like going whisper oil. Whatever any Energy Exposure . Would i im not a fan. Do i personally . No thats not the place that i like to make money the Energy Market moves way too fast for me, and doesnt necessarily have rhyme or reason to it in a lot of the cases but i did have it on my bingo card you would find a way to work chevron or exxon into the conversation to that extent, if energy up seven days straight and you and i are having a conversation about it, i guarantee you Jerome Powell and others know income, commodities increasing food stuff, for example, definitely going to be impacted nearterm thats also leading me to believe september were actually going to see another 25 basis points. Wow so critical. People dont realize it. Think about oil and driving a car. Half of oil is autos the other half is Everything Else roofing materials. Plastics pharmaceuticals. Tires, asphalt this is oil, back up. Probably close to 100. Pray no more storms in gulf of mexico any more exposure . We do own chevron and exxon. Not too far out there. However, consumer is more sensitive to gasoline prices than they have been to interest rates. So it will be interestiing to se the economic slowdown everybody talked about actually starts to happen if we continue to have oil prices go higher. Steph i am 1,000 basis points overweight energy. I own chevron but also like this company slb. My biggest formerly known at schlumberger. And Massive Technology company totally underappreciated with all that theyre doing. Pricing power and margins going higher every single quarter. They raise guidance. Great little story also talking about energy. Kind of like a barbell, right . Original thing. The original thing. Right. But i also am overweight industrials. Even with higher input costs . Also because seeing massive demand from onshoring, reshoring, Energy Transformation electrification. The grid. I know. Inflation reduction act, when you think about it, putting a lot of money, hundreds of billions of government money, taxpayer money and private capital to work. Lets hope, anyway power lines. Right . Whatever you need to do, actually need power lines. We do quantum services. Yep, yep. Grid. Twr, sticker. Twr, like it. Ir. Also Like Aerospace cycle right . Aviation cycle and ge missing money now. Thats really a change in the last the two quarters from both of these companies i like the spend from ge Ge Health Care done really well i think a lot out there. Sounds like the market theme guys, today. Kind of how i live my life boring as the new sexy just did. Yeah. Exactly right. End on that goodness. Thank you boring is the new sexy lets not only talk it, lets live it. Live it. We can live it. Guys, its friday right . Right. A check of top stocks to watch as he wed into the close for that Kristina Partsinevelos joins us here on closing bell. Kristina i dont know how to live boring and sexy. Talk about chinese tech names. Sge. Com, ped worse performers in the nasdaq continuing to drop after the Biden Administration declines to ban u. S. Investments into china computing and Artificial Intelligence sector. An effort to stop Chinese Military from accessing American Technology other issues, though financial troubles at a chinese Property Developer and a drop in Chinese Consumer prices. Thats why j. D. Down to 5. 5. It appears people are more than willing to dish out thousands of dollars for a soho house membership private club post add stronger than expected Earnings Report with its membership wait list at an alltime high 95,000 people waiting to pay at least 3,000 to 5,000 per membership 95,000 people on the soho House Network . Assume not just one in london or here no, no. A wait list to actually get a membership not their members. No. The wait list to get a membership 95,000 people . Yeah. What recession, right . Apparently not in the arts. Go to the soho house, im told, and its one of the the art cool kids. You know just like you. Kristina, thank you. Thank you. Uhhuh. Uhhuh. And we are just Getting Started here on closing bell. A lot more to do up next, trading the tech pullback the xlk. Not a jaguar, the an atm down more than 2 . Apple dropping is that allowed . Anyway, seeing ugly moves out of tech earnings recently star analyst, his forecast to the sector and how hes navigating all of this our question du jour is it time for you all there listening to be peel back on stock . Twitter, now known at x. You are watching the closing bell right here on cnbc. Doors can lead us toward whats important. Your dedicated fidelity advisor can help you open those doors. By working with you on a retirementincome plan designed to balance growth and guaranteed income. Because doors were meant to be opened. Progress toward global net zero will take big thinking put into even bigger action. It starts with us developing and deploying Carbon Capture and storage to help lower our carbon intensity. While also developing partnerships to create worldclass storage hubs to help other industries, like cement, reduce their emissions too. Innovating toward Lower Carbon Solutions today, while helping others do the same for the future. Thats energy in progress. Nice footwork. Thatman, youre lucky,ess. Watching live sports never used to be this easy. Now you can stream all your games like its nothing. Yes thats what im talking about. [ cheers ] running up and down that field looks tough. Its a pitch. Get way more into what youre into when you stream on the xfinity 10g network. Welcome back to closing bell. Dont look now the tech rally a huge rally most of the year. Losing steam over the last week or so. Data dog, super micro, nvidia among this weeks worst performers even apple dropping lately your next guest expects any pull barq like this one to be short lived and reiterating a bullish call for as much as 15 gain for techs. Macro tech i guess, for end of the year bring in wedbushs stan aye. Seeing from enterprise spend, i think on terms of where we see guidance, and i think the ai revolution, Fourth Industrial Revolution is now taking hold. This is halftime of a new tech bull market under way. Whos going to drive it stocks go up when theres more buyers and that sellers. I think big apple driving look from a cloud perspective, seen optics from microsoft, of course, amazon, and google when we see going into the second half, will we believe ultimately spending could increase 400, 500 bits op the cloud . That ultimately driven from what we see on a i driving cybersecurity and broader enterprise and i think many investors here are not positioned well where we believe going into 2024, we see another 20 to level. Did you hear stephanie link a few minutes . If did you, reiter erate for viewers. Crushed. Fell like 20 last week. Cybersecurity palantir, a name you cover and like if this is the future, we know what a threat cyber is, why arent investors, why are they selling at the drop of a hat with a number thats slightly missing . Right now theres nervousness. Right . Just in terms of fed drop and maybe some of the names, not yet seeing a powerball of growth but a table count. Look at pounds here. Microsoft continues to be our top pick and i think out there is apple surprisingly a year from now looking at 3. 5, trillion dollar market cap and we think a mini recycle ending sentiment glass half i say glass half empty relative to tax and abelieve this is get out the pop for a moment a massive secretary half rally for tech stock, and love the electric truck and suv makers . To me they are when i looked what tesla is doing, look what rivian, between many winners. Rivians finally turned the corner from supply chain demand looks strong. This green tidal wave is playing out and i continue to step back here its a 1995 moment not a 19992000 moment internet, 1995 biggest financial tax credit seen in 30 years, which is why a bright green light, despite many young buyers around here. Listen it feels like Artificial Intelligence, ai, is maybe the could be the biggest transformations thing maybe, perhaps tell me if this is hiyperbole since basically creation of the World Wide Web j the way we change the way we work had dialup modems things like that feels like a netscape kind of moment anyway if that makes any sense. It does and it is. I think thats why its a 1995 mode not 19992000 talking incrementally a trillion