The god of [laughter] stocks. And right now were looking at the kind of session, charles, where we need to start with the intraday charts because weve already seen this mornings pretty powerful rally lose some momentum, but that actual could actually could change. Im watching a monitor right now because philly fed president patrick hard kerr who earlier this week said the fed could afford to end its tightening cycle is about to start a fed webinar on jobs and employment at any moment. As we monitor his comments and any marketmoving messages he may give, lets show you those intradays. At the open you see the dow spiked 455 points powered by the july consumer inflation data which showed that for the 13th month in a row the pace of rising prices slowed. Right now though the dow up 161 is. So weve kind of fritteredded away a lot of that. The blue chips along with the Broader Market still cant hold on to most of the gains. You can see the s p is up 12, high of the session a gain of 59 in part because, yes, inflation may be moderating, but its still the rising. And the fed as has made it very clear it does not want to stop until its sure that inflation wont reflate or reignite again. For its part, look at the nasdaq. Its holding on on to lets call it 34 points of the 225point gain that it saw just a few hours ago. Semiconductor stocks, some weakness there. Theyve struggled over the past several days. But disney, disneys actually helping to keep to both the dow and the s p above water. Shares of the entertainment giant are up 5 just a second ago, they hit session is highs thanks in great part to its theme park and experiences business which drove much of the 22. 3 billion in are revenues. While that revenue number missed analyst estimates, ceo bob iger gave investors hope that more cash might come in from its Disney Streaming business next year. Iger dropped a surprise headline that that disney will begin cracking down on password sharing next year because the losses from it are, quote, significant. They can already tell. I listened to the conference call, he said theyre monitoring it. Disney also raising prices on both disney and hulu subscriptions. So as disney hikes prices and the stock continues to move up its not hurting the stock, inflation overall appears to be moderating and treasuries initially reflected the markets belief that Interest Rates may come down sooner rather than later. So right now the benchmark yield up 7. 4 basis points to 4. 0 8 . You can see earlier it was below 4 . But so much depends on how the fed interpret withs the data we got this morning, and that all weaves into the Stock Exchange and the stock market. So lets get right to the floor show. Joining me now, Northwestern Mutual wealth managements chief Investment Officer brent about chutety and chief economist dana peterson. Dana, i want to talk to you first because this core cpi number, was it enough to stop the fed dead in its tracks from hiking Interest Rates again this september . What do you think . I dont think so. Certainly, when you look at the details, still rents are very elevated, and consumers are paying a lot of money for services that they experience like restaurants. Even things that they need like for motor vehicles. So were not really there yet, and i think the fed e is still going to be looking at another Interest Rate hike before year end. Liz lets look though at gasoline and rent. So that was the big point here. Rents were the piece of in that continued to go higher. Rents overall, shelter as they call it. How alarming is that to you, dana . Well, i wasnt reality surprised by the das gasoline. We know prices have been going up because Global Oil Prices have been rising because of a cutback in output. But certainly, the rents piece i think theres hope on the horizon. When you lag home price measures and you also looked at new rent data, the High Frequency data, both of them are signaling that any month now we should start the seeing rents come off and start slowing. But it may not be fast enough for the fed. Liz brent, what do you think . The markets seem to be very hopeful this morning. They kind of still are are. We still have green on the screen, but why the moderation over this past couple of hours who . Yeah. I think dana and i come to the same answer but in a different way. To me, current cpi has come down, a lot more than forecasted because it was tied to covid. Thats been the backdrop of the market to push higher. So you mentioned core still being sticky. If you take out shelter which, as dana mentioned, has a a lagging come pone, that is up 322. 5 component. So if shelter was9 90 of this, will be going down in the future and youve seen every other part of the inflationaritive come down, the bad news is that the last frontier for the fed is wages. Wage growth is still too high. Chair powell mentioned that in the last press conference where he said wages are not consistent with 2 inflation. If you look over the past three economic cycles, wage growth topped out around 4 yearoveryear. Were at 4. 8 . Unfortunately, the only way the fed has been able to get wage growth lower in the last three cycles was through a recession. Liz okay. So lets focus on this and how it weaves into the with stock picture here, dana. You talk about wage growth and they continue to still be higher, but it doesnt outpace inflation. So you see those wage pressures work their way into other parts of the market because, for example, restaurants. Restaurants have to pay people more and, therefore, they have to hike their own prices. Gets to be a little bit of a vicious cycle, does it not . How do you break that cycle as an economist . Well, its really difficult to do. We ask ceos what heir doing, ceos of the largest companies, theyre saying, look, we till think we need to raise wages by 35 over the next year. Thats a lot of money, and its really not sustainable. But until businesses see that people stop the quitting and that they can hold on to their best talent, then theyre going to be using wages as an incentive to keep people and also to bring in needed talent. So theres really a vicious cycle here, and its not clear how the fed can break that wage cycle that businesses are facing. Liz right. So weve got some opaque road ahead of us, opacity, rather. Is so, brent, are investors way too overexposed or just right at this moment to equities . , no, i think theyre too overexposed, and they need to Pay Attention to bonds which, again, are a hedge against the downside that we could see in equity markets over the coming months as the fed tries to break the wage price spiral that weve both talked about. The only way theyve been able to break it in the past, and theyre afraid wages stay elevated above 4 president which would bring current inflation back up. Thats what happened in 6682, and thats why i think theyre likely to hike unless they see wages go lower. And the only way theyve gotten wages lower in the past is to actually have a recession. So thats where i think investors, if theres going to be a recession, i think theres going to be pressure on the equity markets, and thats where i think investors should look at fixed income which offers around a 5 yield, and if we have a recession, i. Well do well in that i suspect well do well in that environment. Liz youre talking about Corporate Bonds but, of course, all the tbills still yielding 5 plus percent. Dana, ive got to just jump in here with ford at the moment. Ford and General Motors shares are plummeting pretty dramatically. Ford had an issue with a cyber breach of some sort, you know, basically what theyre saying is that they have a Software Patch that they are readying because they found a vulnerability, and cars are so technologically advanced at this moment. But when you look at yeah, gm is right now down about 5. 5 , ford is also down. You know, when you rook at look at what happens with gasoline but also with car leases, car leases were a big component of the Consumer Price index this time around, rising more than 10 . So what does that mean for the Auto Industry . Well, certainly its bad with news. And part of the reason why is Interest Rates are 525 basis points higher, and so that means that financing is much more expensive, and thats going to show up certainly in the inflation gauges. So a combination of people shifting their demand away from goods and towards services and also higher Interest Rates means thats not a pretty story for anyone whos producing a car and selling it. Liz okay. Well, there are local Car Companies u. S. And, of course, international. Brent, before we go, i know you are underweight large cap u. S. , youre underweight emerging markets. International developed, you are overweight. Where are the most underpriced sectors that you see overall . Yeah. I mean, certainly overseas stocks have been kind of on the back foot the last 3, 4, 5, 6, 7 years, they havent been in favor. The reason were underweight large cap stocks is because they are expensive. Theyve been kind of the only game in town. And certainly even in the u. S. , i know it doesnt seem consistent with an economic recession, but as the recession unfolds or as the market pulls back, i encourage people to look at a u. S. Small and mid caps which have already dispoint count some discounted some sort of recession and will do very well on the other side of what i believe to be a short, shallow e and mild recession. Liz great to have you both, brent and dana, as we continue to watch the markets still clinging to the green by a little bit of a comfortable margin here. A Marriage Proposal in the Retail Sector has onehalf of the couple at the very bottom of the s p 500. Tapestry getting shredded, down 16 after it popped the question to michael kors parent capris holdings in a deal worth 8. 5 billion. So while tapestry brand plummets, its a match made in heaven for ca capris shareholders. That stock is on cloud nine, skyrocketing 55. 5 . While those two awe appear to be walking down the merger aisle, Davids Bridal is trying not to trip on its gown as it attempts to survive bankruptcy with. A ceo has a plan for a a happily ever after. Hes here next as brides continue to flock to Davids Bridal web site and the stores. Closing bell, 59 minutes away. Dow jones industrials is up 155 points, the s p is gaining as well, and the nasdaq in the green. Were coming right back. You cant buy great conversations or moments that matter, but you can invest in them. At t. Rowe price our strategic investing approach can help you build the future you imagine. T. Rowe price, invest with confidence. west rose next big thing ready . Go im coming out with a bang blowin up im the next big thing everybody want my shine if you want a piece better get in line aint nobody do it like this go so hard no i just dont quit dont quit im coming out with a bang bang blowin up im the next big thing big thing dodo you like me now . Dodo you like . 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Call 1800miracle and schedule your free hearing evaluation today. Wow, you get to watch all your favorite stuff. Its to die for. And its all right here. Streaming was never this easy, you know. This is the way. You really went all out didnt you . Um, its called commitment. Could you turn down the volume . Here, you can try. Get way more into what your into when you stream on the xfinity 10g network. Liz gang, we have some breaking news we need to bring to you. Take a look at United Airline shares. Theyre flat at the moment. The airline saying moments ago all of todays flight doctors to the airport in maui, hawaii, have been canceled at this hour due to the wildfires torching the island. 36 people so far have been killed, and as the fires rage what united is going to do is take those empty planes, fly them to the island in order to rescue people, bring people off the mainland, off maui to the mainland of hawaii or some of the other islands that are not being torched by these fires in order to save them. There have been some harrowing escapes where people have jumped into the ocean. You can see lahaina, that town that everybody goes to when they go visit maui, is devastated. Totally and utterly devastated. Hundreds of homes and businesses have been destroyed. Well keep you posted on the story. All right, shifting gears here, its the retail engagement of the year. Only shareholders in the audience are leaving before the official ceremony. Tapestry, the Parent Company of coach and kate spade, is buying capris holdings, the Parent Company of versace, in an 8. 5 billion deal, all cash. It works out to 57 a share for capris. Capris is at a 53 and change right now, that is a gain of 55 . Big, big benefit for capris shareholders, but tapestry, you can see, down about 16 . As these fashion if giants marry, the king of Wedding Dresses is getting a facelift. Zion investment bought Davids Bridal after it filed for bankruptcy earlier this year. The deal would cut debt from 256 million down to just 50 million while keeping 195 stores open and thousands of jobs safe. The goal is to focus on the ecommerce side of Davids Bridal. The company is confident about this working. Earlier this week davids filed to officially dismiss its chapter 11 case, so heres the question what will the new Davids Bridal offer fall brides . Ceo jim mark ham joining e many now in a fox business exclusive. Tell us about the bones of this deal and how you expect that it will keep soft of this iconic brand alive. Well, zion is a longterm investor in davids, weve had a long relationship, and they work closely with the Management Team and understand all the tail headwinds the company was facing. So it was a natural to invest in Davids Bridal to keep the legacy alive and going and serving brides. Were very pleased to be here and have that opportunity. Liz lets talk about the brick and mortar stores. How many close . How many stay open . We closed approximately 100 stores representing around 10 percent of our 4 wall ebitda. The remaining twothirds, 195 stores were projecting, represented about 90 of the companys ebitda. Major market representation across the country. Davids is a destination, and we think its, you know, creates a a great opportunity platform for us. Liz well, for a 70yearold business to remain alive and kicking, that is certainly something that im sure employees are relieved about but also brides. First of all, september 23rd, apparently, is the most popular day to get married this year. [laughter] i dont know why, but whatever, thats what it is. If you say that close to 990 of all 90 of all brides in the at some point either go into a davids tore or go online. Store or go online. What are they going to find thats different in order to make sure that the company doesnt fall into the same manholes they had fallen into in the past . First of all, youre absolutely right. We were selling 1 out of 4 Wedding Dresses, significant market share targeted at middle america, and i think we were well positioned. One thing i said to you when we were together the last time on the segment was that we made a commitment and a promise to deliver every dress that was coming through liz and . We did, wety. We own our vertical supply chain, so those dresses that you see are our own dresses designed, inspired, curated, produced by us. Is so we were able to maintain the nimbleness, more than that, the confidence with the bride. Today what were focused on now, were talking about emergence, right . Were 100 focused on the customer, letting her know were there. Liz where is the Untapped Potential . And lets just put it this way, people are trimming their costs. The average wedding costs Something Like 30,000, so people are penny pinching more because theyre worried about maybe a recession coming. Thats understandable. But i know brides. The one thing they dont want to skimp on is the dress. However, this trend now where people want to rent dresses. But theres the also a trend where people want luxury for less. How are you going to tap that . Well, luxury for less, that is us. That is us us at Davids Bridal. Our prices will range in a bridal category from 199 to 2,000. And i will tell you, you could take that, you know, dress that is over 1,000 and compare it to any dress in a boutique, and the value that you get, its incredible. Finish so we are, i believe, in the sweet spot for the issue youre talking about with budgets, right . Our average Wedding Dress is 600 if aur. Liz wow. And youve got this digital plan here. Correct. Liz augmented reality. Is there a. I. Involved . Every business is talking about getting Artificial Intelligence involved to make the process easier and smarter. Right. We do use Artificial Intelligence right now in our chat bots, in our