Of china casting a dark cloud other its economic output. Industrial production, meanwhile, coming in weaker than expected and, oh, yes, china unexpectedly cutting rates by 15 basis points. All kind of negative headwinds. Now on the other hand, strong data guest canically not helping Investor Sentiment either. Retail sales rose more than expected showing that the consumer here in the u. S. , very resilient. But you know what thats codes for, yep, the feds could have to keep rates longer for high higher can higher for longer, rather. [laughter] Neel Kashkari saying today we are, quote, a long way from cutting rates. Oh, great. Those higher rates, however, certainly have proven burdensome to banks. Today Credit Ratings company fitch warning it may have to downgrade several u. S. Banks including jpmorgan, the big financials all moving lower on that warning as you can see. Morgan stan hi down 1. 33. Morgan stanley. Regional banks also seeing declines on worries over tighter regulation, today the fdic signaling a potential plan to overhaul how regional a banks prepare living wills. Now look at the action here on a very down day, of course, western alliance, pacwest, key corp. , citizens financial all moving substantially lower, 3 or 4 . So could all of these factors pose a very real risk to the markets longer term rally . Lets get right to the floor show to dig into all of this. Joining me now is mullen camp or and Company Portfolio manager jeff mullen camp and always great to see you, trader steven sarge guilfoyle. Thank you, gentlemen, both. Sarge, let me begin with you. There was a laundry list of headwinds there. Certainly china casting a shadow over everything because their economy seems to be to really struggling right now. How much concern does that bring you for the markets here as we look ahead . Well, i have a little bit of concern. I mean, china was and is the second largest economy on the planet. They were the primary engine for growth for the global g dp over the last are, i dont know, 1015 years, but weve made it without them before, and we can do well without them again. Our economy, ive been wrong about the economy. I was calling for a recession of half a year ago. I mean, the atlanta the gd fed revised their gdp now model for this quarter, for the Third Quarter to 5 . I never saw anything like that coming. I mean, maybe i saw it comes recently, but not until recently. The Unemployment Rate ares down to 3. 5 , wage growth is higher than inflation, yet nobody feels happy, nobody feels that strong. Ashley yeah. I think you have to be in this market because if the economys going to grow, rates have to stay i higher for longer. Ashley i think, jeff theyve got to stay where they are. Ashley you got it. Jeff, let me bring you in. You may maybe higher for longer inflation suggests perhaps commodities and is highly cashgenerative companies, any in particular . This is a type of difficult environment, is it not in we have global concerns, fitch putting out warnings about major banks, and then theres the fed, of course, we worry good news is bad news. Theres so much to digest. Where are you in this environment . Well, ashley, the things im concerned about, one, much like sarge im interested in what the u. S. Economy is doing. Like him, six months ago i expect a recession. Like him, data recently had led has led me to have a much more positive outlook on the u. S. Economy, so i think thats a positive thing. But i do the think that inflation theres at least a pretty strong risk that its going to be higher for longer, and so the fed is going to have to react to that. Weve with already seen the fed in march react to problems in the Banking Sector caused by the increases in rates that they had instituted to fight inflation, and im kind of waiting for the problems that stem from their quantitative tightening, right . So the fed has now bumped into constraints in terms of how high can they raise rates, and so im looking for what are the constraints that are going to cause them to a little bit reevaluate the quantitative tightening. That the thats the picture i have for the future. I like a numb of sectors in the u. S. Market. I like energy, i think that will do well in an inflationary environment or just a decent environment. It doesnt have to be great. I mentioned transocean, the ticker for that is rig are. It looks to me like an energy discycle, a lot of the investment is going to yo go offshore. So thats something were interested in. Ashley got it. And there are a number of other companies that for idiosyncratic reasons are very interesting to us. Ashley very good. Sarge, met me bring you back in. I want to talk about retail sales, prizing on the upside surprising on the upside. I the even more surprise, the resilience of the household consumer. Were talking about debt going up and up and up. At some point somethings gotta give. What do you feel about the psyche of the u. S. Consumer that is so important in the u. S. Economy . I think i want to be pessimistic because i think thats the way we should be right now, but i we shouldnt be when we look at this data the, because i call it the fun index. Its the line on the retail sales that says sporting goods, hobbies, music and books, all right . Thats the stuff people buy new. That was up 1. 5 month over month, a 1 gain yearoveryear, so they havent been buying the stuff for about a year, now all of a sudden theyre starting to buy it. That means people are starting to feel better about things. This is a weak time of the year seasonally. I think as far as investments you want to be where the demand is. The demand is still for a. I. , so while its risky, i still think a. I nvidia and amd i still think software, microsoft and service now, and i think cybersecurity. Thats palo alto and, for me, crowdstrike. Stay out of the banks. Higher for longer, that compresses net interest margin, thats to no good for the banks and hurts their hold to maturity portfolios, those bonds that if they were marktomarket would show great losses. I think you have to stay out of the banks and decide precisely where demand is and be there. Ashley very quickly, jeff, met me bring you in on the tech side. Had a tremendous run, the magnificent seven, all of that. But weve seen some profit taking, but do you stilling like these names on the pullback . The a. I. Names im going to be a little bit on the flipside of the coin from sarge there. Im not a momentum player. Im primarily a value player. So to me, im looking through the banks recognizing all of the negatives he said are completely valued, im looking through the wreckage to see if theres a diamond amongst the wreckage. [laughter] and with tech everybody is so positive on it, im going to sit on the sidelines because my fear is that at some point the momentum will reverse, and im the wrong guy to get that right. So i dont think [laughter] i can personally make a dime there. Im the one waiting for the wreck withage, and then ill once again go through and see what i can find thats of interest. Its a little bit different methodology, but were seeing very similar things. Ashley i understand. Right. Hey, ash a. Ashley sift9 through the debris. Very quickly, sarge, go ahead. I just want to Say Something to jeff. He mentioned transocean, rig . That is the Top Performing stock in the portfolio. The stocks stocks under 10, so familiar with the name and that was an excellent choice. Thank you, sir, i appreciate that. Ashley there you go. [laughter] doesnt it make you feel good . We should all have a Group Virtual hug. [laughter] thank you very much, guys, jeff and sarge. Terrific information, you guys. I love the positivity. Thank you so much. All right, reports claim that striking hollywood writers are expected to respond to the latest proposal from major studios. The offer includes a concession about the use of Artificial Intelligence, but our next guest says a. I. Doesnt need to always be cast as the villain when it comes to film making. The claman countdown coming right back. Salonpas lidocaine flex. A super thin, flexible patch with maximum otc strength lidocaine that contours to the body to relieve pain right where it hurts. And did we mention, it really, really sticks . Salonpas, its good medicine. Let Innovation Refunds help with your erc tax refund so you can improve your business however you see fit. Rosie used part of her refund to build an outdoor patio. Clink dr. Marshall used part of his refund to give his practice a facelift. Emily used part of her refund to buy. I run a wax museum. Let Innovation Refunds help you get started on your erc tax refund. Stop waiting. Go to innovationrefunds. Com you really got the brows. 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. Ashley reuters reporting striking hollywood writers are expected to respond this week to the latest contract proposal from major studios after a monthslong labor dispute. Now, the offer reportedly contained a a concession on the use of Artificial Intelligence and credits human writers on scripts. The unions also asking for higher wages, streaming residuals and a. I. Precautions. But a guy who used to work for warner brothers,son finn sonny dylan loan just started a new Venture Capital fund that invests in Artificial Intelligence and is backed by former executives from major movie studios, and he joins me now in a to fox business excollusive. Here he is, sonny dillon. Sonny, great to have you with us. Why should, in your opinion, hollywood not fear a. I. Among the writers and the actors in theres a lot of fear about a. I. Essentially replacing them, right . Yeah. I think a. I. Has often been cast as a villain if are a story telling perspective. Eva, all terror, hal, the list goes on and on, so i think its very easy to demonize technology that in and of itself is fundamentally neutral, and if portrayed and used in the right way and communicated in the right way, we actually see a. I. As being something augmentive. We refer to it as augmented intelligence when we look at it from our funs perspective. But we see it as a horizontallyenableing activity. Ashley i think youd have a hard time making writers and if act the to haves accept that. The strike has gone more than a hundred days. There is a proposal from the major studios, can we get this thing done sooner rather than later . Yeah. Ill start by being very clear, i think that a lot of this stems from compensation. Training data thats used to actually train the artificial intelligencal a grit. Temperatureses al grit. S, if artists, sown mixers, directors, etc. , have contributed work to training that a. I. , they should absolutely be with compensated for it. So i think the new Business Opportunity thats emerging, the new Business Models that need to emerge, the legal frameworks for ip protection, for labor protection, etc. , absolutely need to be something that accompanies this fundamentally enabling technology. Can and i think that thats really where a lot of the conversation needs to be focused on, because it does open up huge new revenue streamses for the industry at large, and i think that those folks contributing to it absolutely knead to be compensated for fairly. A. I. And in itself is derivative. Its train off of something thats been done before and come up with new permutations, combinations of that said work, and i think its very, very important that people are very transparent in Silicon Valley about whose Training Data has gone into that, which movie dialogue has gone into training this character. The weighting of that balance in the algorithm should absolutely be used to compensate folks on the back end. I think thats a core part of this argument. Ashley right. Well, hopefully, they can come to that agreement. I want to talk about kyber knight. It lawned with a 120 inaugural fund. What type of companies, sunny, or investments are you looking at to put money into . Where are you headed . Yeah. Were a generalist, precede and feed fund based in Silicon Valley but investing primarily across the United States. We invest, like i said, Artificial Intelligence is a horizontalenabling technology for us, so weve been investing in a lot of different verticals that a. I. s been impacted, 3d printing of. Homes and robotics, leveraging Computer Vision which is a form of about official intelligence, we were some of the earlier investors in Autonomous Vehicles with Companies Like cruise automation. We also think theres far more ordinarily mundane industries that need to be impacted to the benefit of the consumer by Artificial Intelligence. Specifically how will you calculate your taxes, how businesses calculate their taxes, how insurance payments should be calculated, compliance and regulation, things like that, that that arent the most fun things, a. I. Can make easier, simpler and more cost effective. So were looking at businesses in all those, quoteunquote, boring industries. Ashley well, theyre not successes city. Doesnt matter if they can do the job and and cut down the time i personally have to deal with, that thats always a good news. Were out of time. Fascinate nateing conversation and the best of luck, sir, with your new venture. Sounds very exciting. Thank you very much. Thank you. Ashley okay. Thank you. And speaking of hollywood, nfl star Michael Ohers life story was turned into an oscar carwinning, 470 million movie. I bet you watched it. Its called the blind side. Now hes claiming its all a lie. What the heck . A live report coming up next. But as we head to the break, take a look at the markets firmly in the red across the board. The dow, s p and and nasdaq, as you can see, down close to . Well 1 percent. Well be right back. What do we always say, son . Liberty mutual customizes your car insurance. So you only pay for what you need. Thats my boy. 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Ashley well, markets continuing their selloff with just, what, weve got 30odd, 38 minutes or thereabouts left of trading, and we can see good riddance. The dow off 300 or thereabouts, the s p and the nasdaq down close to 1 . Thousand, to more fallout from those hollywood strikes that weve been talking about. Getty images feeling the impact, down as you can see nearly 5 after the company cut its fullyear revenue outlook by 222 million. Getty images 22 million. A today photograph Red Carpet Events and say the slashed guidance is due to the ongoing hollywood strikes. On a postearnings call, the companys cfo said it expects the strike to last through the end e of the year. Yikes. Another ev company has joined teslas growing lists are of charging partners. Fiskers stock, as you can see, up today half a percent if certainly a sellers market after signing a deal to adopt teslas north american charging standard. Fisker owners can expect to start using the charging network by 20 the a 25, so theyre going to have to wait a while, but teslas stock also down 2. 5 . Speaking of electric vehicles, vietnamese automaker making a riproaring debut on the nasdaq, more than doubling in its first day of trading look at that, up 194 after e it completed its merger with special Purpose Acquisition Company black spade. And discover financial stock plummeting after the ceo, roger hochschild, announced he is stepping down. The stock down so as well. The bank announced john owens are take over at interim ceo and president effective immediately, but the market reacting. Again, 10 down on discover financial services. All right, now this story. Was the feelgood 2009 movie the blind side based on a lie . Say it aint so, but thats what many people are wondering after former nfl player michael oher who the film is based on claims he wasnt actually adopted by the the family in the movie and now, well, yeah, you bet it was going to happen, its become a legal battle 678 for thest e on this plot twis