Red after bopping when bob iger said he is confident Disney Streaming offerings refer profitable by the end of the year. Target shares jumping but still some areas of concern. Were going to discuss that coming up. But lets start with todays declines in the broader markets. Mike santoli joining us from the new york stock exchange. Mike, a day like this kind of expected after the rally that weve seen . For sure, court. In fact, maybe multiple days like this just because the s p 500 managed about a 25 gain off the october low. We have only had two down weeks in 4. 5 months. All those things suggest theres room for relatively routine backing up of the indexes. What is going on below the surface is a fit full rotation happening. The big winners in the nasdaq 100 in tech have been giving back some of those outsized gains youve been mentioning. You still have a 50 50 updown split on the new york stock exchange. Its not like everything is for sale. The s p 500 is back to levels we first got to only about ten days ago on the upside. Again, it is pretty much a skimming of the froth. But we would be mindful of just exactly how stupendously overbought things like semiconductors got and other parts of the high momentum areas of this market so you cant just say its a one day and done. Mike, its pretty interesting too as well. Were not going to call it a rotation because maybe its too early to call it that. But not every part of the market is down today. Were seeing some outperformance in financials, some of those valueoriented names. Albeit some have been beating up to heck in themarket these days. Sure. But still the banks jp morgan hits a record high. There is a little move out of certain big tech stocks into other big names like jp morgan. Which is why i dont think the little bit of unsettled markets today is really sending that much of a worrisome macro message. Its not as if people are necessarily panicking about a slightly softer ism services number, credit markets remain pretty sturdy. Cyclicals, industrials and consumer are doing okay if you look at the new high list, too. So everybody should be prepared for a little payback after the run we had. Well see how deep it goes. Mike santoli, thank you very much. Our next market guest is expecting an suspension in the rally in the year ahead but says that is contingent on the fed cutting Interest Rates. Lets bring in kevin monn the president and chief Investment Officer at henion and walsh asset management. Okay, so the fed needs to cut. Yeah. Youre not the only one who believes that. But take us through why it has to do it soon or not. Sure. And lets just remember back to last year when the mag seven accounted for 62 of the total return of the s p 500. Thus far this year, 44 of the return of the s p 500. Take out tesla, and its nearly half of the return of the stock market. So, theyre still dominanting but the bredst is starting to expand. For it to expand further, we do need the fed to start cutting Interest Rates. For the fed to cut Interest Rates we need two consecutive quarters of a slowing economy provided that inflation continues to moderate all the way out to july at the earliest. So for those Market Participants that are hoping for a fed rate cut sooner than that, think again. But then if they dont cut. Yeah. Is it safer to sit and wait rather than make any changes, i guess, one way or the other . Whats the bigger risk, cutting too early or waiting and seeing . Its a great question. We look back to the 1970s as the blueprint for what could go wrong. The fed cut Interest Rates back then prior to inflation coming to 2 . What did that bring on . Double digit levels of inflation. Paul stepped in rose to high of 20 . That brought on a recession. So theyre really trying to thread the needle. Bigger risk is to push the economy into a recession. If youre an informser, to your point, the mag seven pulled back for a little bit without theyre contributing, without tesla, 50 . So you cant afford to not have a significant position in them, can you . And i think they will move higher. Theyll drive the u. S. Economy ahead. Certainly names like microsoft ultimate winner of the ai race, names like amazon who continue to dominate the ecommerce space and nvidia, how can you bet against nvidia at this point in time, especially with the expectation that theyre going to deliver their next generation chip later this year. But there are opportunities beyond just ai. Consider cybersecurity, how about aerospace and defense or even some Consumer Staples and discretionary names. There are other opportunities out there. But for them to really take off, we need the fed to cut. All right. So, lets talk about why they have to cut in the eyes of the market. Yeah. They dont have to right now despite todays market action. They havent really done anything expectations have pretty much gone away for as many cuts as we saw three months ago, six months ago. Yet the market still hovers near record highs. People still get paid 4 to 5 on cash balances, yet they still buy stocks as well. Correct. It seems like everything is going up in value at the same time that the opportunity cost of giving up cash is still relatively high. What gives . I believe that the Federal Reserve wants to start cutting Interest Rates sooner than later. Why would they be forecasting three Interest Rate cuts of 25 bases points this year if by their own forecast inflation will only come down to 2. 4 by the end of this year. I think theyre more concerned with inflation staying below 2 . Remember where we were just three years ago, than they are with inflation actually staying too high. They have difficulties replaying the u. S. Economy. Pushing us into a recessionary period. If the fed does what they suggest theyre going to do and cut Interest Rates by 250 bases points over the next three years, both stocks and bonds should move higher. But we are going to be more selective over the next six months when the economy will slow and when, in fact, theres going to be a volatility. The pullback we are seeing today, i expect more shortterms of volatility ahead. Interesting stuff. Kevin, stay right here for a second because we want further thoughts from you. Target shares are surging after better than expected holiday release with improving margins and traffic, low r marked downs and lower freight cost that helped lift profitability. They are laying out decade long plan in new york city today. I was there. Just wrapped up. Ceo told me that he expects targeter will grow annual revenue average of 4 next ten years by opening po 0 plus stores, investing in current 2,000 stores, expanding same day services and taking advantage of share opportunities. For instance, like macys closing stores, potentially picking up some sales in those areas. Stores will open and areas of population growth, like salt lake city, phoenix, dallas, nashville and those surrounding areas. Theres a huge opportunity in same day delivery that frankly it just needs to fight a little more for. Thats part of why its updating this target circle loyalty program. Theres going to be three tiers. Target circle remains free but now the deals are automatically applied at checkout. Target circle card will replace the red card. Still give you 5 off everyday purchases and twoday shipping but now add extra time for returns. Target circle 360, thats the new paid membership that will start at 49 bucks for april 7th through may 18th then increases to 99 unless you have that circle card, that tier before this which gives consumers unlimited same day delivery on orders of 35 or more, twoday shipping, access to shipt marketplace which delivers from 100 other retailers in addition to target. It has two new private label brands called deal worthy and toys called giggle scape and relaunching up up brand. Investors care about that because target private label brings in third a billion dollars of annual revenue and contribute more than a third to its margins. Target laid out longterm plan to hit the prepandemic level of at least 6 going forward. So, learning what we learned about target, seeing target shares surge, i know retailer is not often an area that a lot of people come on cnbc to talk about when were talking about the growth that weve seen comparatively in the magnificent seven. But when you hear things like laying out a tenyear plan with these, you know, pretty decent growth targets, does it make you any more interested in a name like target . Retail is incredibly important because its an indicator of the health, the wellness and the confidence of the u. S. Consumer. As we know, the consumer accounts for 70 of gdp growth in our country. So i was very encouraged to see the results from target, beating on earnings, beating on revenues. Dus appointed to actually see year over year same store sales go down. Sure. Looking at their forecast for disappointing sales this year. But then what i took away most was them suggesting what i said earlier in this segment. Thats that the u. S. Economy is slowing. The u. S. Consumer is now starting to focus less on discretionary items and more on staples. And theyre being a lot more frugal there. So, if, in fact, everything tha lower tier brands, starting to focus more on 10 and below items, that could actually help them to weather the economic slow down very well. I also like target because they pay an attractive dividend and trading at pretty attractive valuation compared to walmart. Do you focus on big box, costco, walmart, target, that sort of thing . Is there any room for Consumer Discretionary at all, retailers that cater to maybe higherend shoppers, Department Store chains that sort of thing, niche retailers . Are those pretty much tabled for now given that thesis . I believe need to focus on have a brick and mortar presence and also expanding their online footprint. Target has done it. Walmart has done it. Amazon has led the way for years in that area. The American Consumer has made their choice. They prefer to shop online still. And theyre going to continue to look for more discounted items. What better way to do that than through online commerce. So i think those retailers that have that Online Presence can also cater towards lower cost items and not so focussed on big ticket discretionary items will do well in 2024. Very interesting stuff. Kevin mahn thank you for joining us. A check on china. First apple in the danger zone thanks to huawei. Details in tech check coming up. Target is detailing its 2024 targets. Well lay them out when we return after this break. Lets check it out. Says here it gets plenty of light. And this must be the ocean view . Of aruba . Huh. This listing is misleading. Well, when at t says we give businesses get our best deal, on the iphone 15 pro made with titanium. We mean it. Amazing. All my agents want it. Says here. inviting pool. Come on over too inviting. Only at t gives businesses our best deals on any iphone. Get iphone 15 pro on us. is it possible to count on my internet get iphone 15 pro on us. Like my Customers Count on me . It is with comcast business. Keeping you up and running with our 99. 9 network reliability. And security that helps outsmart threats to your data. Moaire dida twoo . Your data, too. Theres even roundtheclock customer support. So you can be there for your customers. With comcast business, reliability isnt just possible. Its happening. Get started for 49 a month. Plus, ask how to get up to a 800 prepaid card with a qualifying internet package. Dont wait, call and switch today welcome back. Well, apple once again weighing on the nasdaq today. Trouble brewing at one of its largest markets, china. New report showing iphone shares plunging 24 . Tell us about the details of this report. Huawei is obviously a very big competitor. Thats small but growing. Lets put that it way. Look, the headline here is counterpart research, looking at the first six weeks of smart phone sales in china, compared to a year ago. Iphone down 24 . That is the headline number and the other headline number, like you said, huawei is up the other way, 24 . Honor was up 2 . What does that tell you, it tells you we see huawei making phones again, marketing them kind of as 5g but also doesnt matter. It is bit by bit chipping away at the market share that apple gained when huawei stopped making smart phones for a couple years there. So that is one thing. The other thing thats happening in china is we just know the Economic Situation there, well get into that here in a bit, but the point being, consumer demand is low because of just the weak consumer overall. Then we also know whats going on china wholistically, not just the iphone and the december quarter, the Holiday Quarter for apple, sales overall in china down 13 m . Its not going to get any better. Yes, all of those points are valid. But the Chinese Government has its fingers on the scale here, right . Right. Because they told basically their citizenry and certainly their Government Employees that they didnt want people using iphones. Right . W. Yes. That kind of nationalism going on here. Correct. They were trying to focus on their own brands. Saying we dont want you to use apple. There might be security risks, blah blah blah. Thats probably the reason why. Right . Its a reason why. We dont know the extent to that. Youre referring to some reports late last year that no Government Agencies were basically told, dont bring iphones into the office, dont buy your employees iphones for a lot of same reasons we on the u. S. Dont put tiktok on your work phone or huawei. Thats part of the reason why huawei got out. We dont know how big that was. China down played ate little bit. Apple has been down playing it a little bit. Its unclear how much its that versus the consumer. But yes, to your point, little bit of nationalism playing in. Huawei, Chinese Company by the way, those huawei phones look and act just like an iphone. What is apples defensive strategy to gain some of that share back and more broadly investors and analysts think they can do it . This is not a new formula for apple. They have grown in china despite huawei being in the game for so long. Again, they had this grace period where huawei wasnt in existence basically. What can they do . Everyone is looking towards there ai announcement. I know thats part of it. The other question becomes in the fall with the iphone 16 upgrade, you know, how many people are going to want that is that phone going to be good enough to attract people to either stick with apple or avoid switching back to huawei. How much of a concern right now, we have seen reports that the online sites have cut the price of current model iphones by up to 180 per unit. Thats a concern as well. It can be, but that happens a lot. We dont see it so much in the United States with Price Fluctuations with the iphone, but we do see it internationally. Youll see apple kind of tweak prices in dimpbltd geographies based on Foreign Exchange rates. And other thing. One read could be, yes, its part demand, another read could be its Foreign Exchange, maybe a mix of both. Theres no one answer. Steve kovach, thank you very much with the tech check. Speaking of that China Economy side of thing that steve mentioned, economic targets for 2024. Eunice yoon is live in beijing with the specifics on that Macro Economic environment in the worlds second biggest economy. Eunice . Reporter thanks, dom. Well, the targets are more or less the same as they were last year. But because theyre coming off of a higher base, theyre viewed as more mbitious. So to support growth, the government said that it was going to focus and target a fiscal deficit at 3 of gdp. It will also issue new longterm bonds over the next few years. Some special sovereign bonds as well as some local bonds. And the money is expected to be earmarked for Major National strategies as well as strengthening security in what they describe as key areas. Now, the premier, who announced the targets at the start of the National Peoples congress, admitted that it will likely be very difficult for china to reach those goals. At the same time, he said that the country would stick with its policy approach of being proactive and prudent. Now, what might change, though, was also hinted in the government work report. And more specifically as you guys were talking about technology, that tech reliance and self tech reliance or tech Self Reliance was going to be a priority as well as promotingmade in china brands. Guys . Eunice, theres also a question about whether or not theres going to be any kind of impact from the kind of on going economic dialogue, possibly about trade policy and Everything Else that happens between the United States and china. Is there a sense right now that these targets are achievable in the greater context of its trade relationship and not just the u. S. But the rest of the world as well . Reporter well, because of the potential geopolitics getting worse, that is definitely seen as a hurdle to ch chinas overall growth picture, but on the whole, i think investors should expect that the chinese economy is going to continue to slow down. Weve seen that the authorities here are not really willing to stomach any large stimulus, but one potential way that has been discussed about investingis really to follow the government policy, which is something that people talked about for quite some time, but more specifically that the government is now prioritizing National Security over the economy. And if as a Foreign Company youre willing to help china reach its technology goals, then you might be able to benefit. Fascinating stuff, eunice. Thank you for being there for us on the ground as always. Well, Nuclear Renaissance with uraniu