Earnings season boost from cisco which is at the top of the i blue chips as you can see, up 3. 5 . Shares hitting a 52 week high after cisco reported a top and bottom line beat after the bell yesterday due to its enormous market share as well as future a. I. Opportunities at the company. Investors responding, up 3. 5. Walmart also smashing earnings expectations, raising its fullyear forecast as well. The retailing giant saying that bargainhunting customers buying more grocery staples as Household Budgets remain under pressure which, of course, helped boost sales for the big box retailer. As you can see though, currently trading down 2 . Despite tight budgets, analysts pointing to resilient demand in the u. S. As one of the reasons why the 10year yield is soaring to 10month highs right now. As you can see, up 4. 309 . Investors still have concerns that hot demand could keep inflation and, therefore Interest Rates, higher for longer. Of a lot of people talking about that. Plus, initial jobless claims certainly support those worries. Coming in close to expectations and clearly showing a tight labor market thats barely easing. Its kind of defining the economic textbooks. Well get into that. What does this all mean for the fed, and what should investors be wary of . Lets get to our floor show traders. Prosper Trading Academy ceo scott bauer coming live from the cboe, and u. S. Banks a set Management Group cio eric freeman. Gentlemen, thank you both for being here. Scott, let me begin with you. You call this a controlled defensive approach right now. There are those that say this is healthy after all the gains we saw, weve seen a bit of a rocky august but nothing to panic about, right . Ashley, thats exactly what it is, at least at this point. And, yes, it is healthy for the markets. The reason im calling it kind of a controlled move is because even though were seeing volatility increase across the board, were not seeing the near term volatility in the vix or even in the spx which is right behind me. Were not seeing that near term volatility spike up or move higher than where it is a few months out there now. Is so theres no panic right now for investors or even the institutions to be running to get protection right this moment. So, yes, overall volatility is still up, and it should be. I mean, it was way too low where we were a month or two ago. But its not, its not at panic mode whatsoever. However, i will note that over the last few weeks or so we have seen a decided shift in the putcall ratio. So the amount of puts that are being traded versus the amount of calls that are being traded skew towards the put side. We have seen that over the last, you know, two, three weeks or so. Ashley yeah. Which goes9 with the sentiment that weve been seeing almost daily. Eric, let me ask you, want to ask about treasuries. I was looking up treasuries, the 1year, give you 5. 3 . The 2year, 4. 9 . What about shortterm treasuries are they a may . Yeah, ashley. As they say, when that plate of cookies or biscuits is passed around, make sure you take some, and this is one of those cases where we think investors should be involved in that. [laughter] whether its 6month or 12month or, you know, 24, 36month if type of instruments, theres a lot of hinges you can do in things you can do in shortterm fixed income. Given where Interest Rates are, youre right to point them out, that youre out at a technical level where we as investors really think about how compelling treasuries are versus stocks. Stock not just dividendpaying stocks, but also growth stocks. Our overall take theres plenty of things to do in this environment. We actually would be spreading out some of your exposure in that 6, 12, 24month type of treasury yields but also look at something, underloved parts. Of the equity markets. Energy, same thing with infrastructure, and then finally midcap equities tends to be something that most investors just dont own enough of. They tend to own large cap stocks or small cap stocks, mid caps tend to be an area where we think theres some opportunity. So those are all spots that wed be looking at in the current environment right now. Ashley very good. Scott, let me can ask you about a those big cap tech stocks. Obviously, they dont do well in high Interest Rate environment. Theyre below their 50day moving average. Is there a point with this where you say, you know what . Thats actually a good deal and you jump in, or is there more downward momentum to go in these big tech names . So, you know, the moving average is 50day, 100day, 2300day, those 200day, those are technical daters over a certain period of time, but the fact that we are seeing many of the big cap tech stock, the overall market, the spx, the dow even, russell, nasdaq below their 50day moving averages is a bit concerning. Now, if, you know, if i have been out of the market or even short it, would i start to cover, would i start to take some new positions . I would but slowly. Because what eric alluded to, youre getting, you know, a on 5 on money for a year. Thats pretty darn good. I think that, as a he said, youve got to dip your hand into the cookie jar, but i think that works both in the bond market, in fixed income and also in the stock market as well. So i wouldnt be loading up here, but i do think that, you know, this is an opportunity to pick at it a little bit. Ashley very good. Eric, i wanted to ask you about the fed. What did you make of the minutes from the july meeting . I found it all a little confusing. They seem a little divided. What did you make of it . It was almost like thats essay that you write where you just keep saying the same thing over and over again, but youre hopefully going to win on word count. [laughter] i think the ultimate view we have is its a very, very high bar for the fed to either raise Interest Rates or cut Interest Rates. Theyre in that spot right now where they can buy some time and really think about a higher for longer strategy. So i think you saw was a little more lets call it discord internally. The fed has been very, very consistent in terms of voters. If you look at places like the u. K. , its actually been quite different. Youve had a number of folks that vote on the fed equivalent saying some thing we should raise rates, some think we should cut rates. Bottom line, we think the bar is very high for the fed to do anything besides basically buy more time to see if inflation comes down. There is a huge difference between inflation at 3, 3. 5 and inflation at 2 . This time last year we were talking inflation of, like, 9 , so weve made some progress, but this last mile will be really, really critical. The fed probably stays higher for longer versus raising rates or, again, i think the bulls are really hoping theyll cut rates. We dont think thats going to happen anytime soon. Ashley well, there is that concern, and were hitting session lows as we speak, the dow off 242. Scott, we know, basically, that a very tight labor market appears to be underpinning the economy. But i was looking at the data points. Weve seen a solid increase in retail sales in july, a surge in singlefamily Home Building, economists raising their growth estimates for the Third Quarter. All of this, of course, raising the risk that the fed will indeed be raising rates again. You could argue the economy is heating up in some ways, not cooling down, which is very counteri intuitive to what the fed has been doing. But that said, its a very long question, does the fed raise rates again . Is it forced to do that . Well, youre absolutely right, ashley,s it is counterintuitive which makes the whole picture very, very puzzling for not just us and our viewers, but for the fed as well. Ashley yeah. So, yes, i do think they will raise rates one more time but, again, as eric alluded to, they are in that sweet spot where they can buy some time right now. But if this data keeps consistently being on the hot side or even just that the economy is really looking Pretty Healthy, then theyre going to have to raise rates again. Ashley i think youre right, and thats what more people are believing. Eric, you mentioned energy earlier, and im interested in that. I havent talk about the struggling economy in china, the data points and even the chinese apparently cant hide them. Theyre obviously struggling which could hurt global demand. Talk about a soft recession here next year. It seems that energy, oil in particular, would not be a particular good spot to go because of the lack of global demand. What do you say . Yeah, i think, ashley, theres probably some upside risk of demand. I think, number one, china is going to be in a position where they have to try a variety of stimulus measures to try to get their economy back on track, and that could include things like raising i should say, you know, lowering Interest Rates. But ultimately, china is trying to get more people to buy stuff. And if they cant, theyre going to have to buy stuff themselves. So things like further industrial buildout toes, while it seems like its unnecessary in china, that may be what they resort to. Theres the possibility of some more energy demand. The other thing too is supply is not a light switch that comes on and off. There are a lot of constraints on companies that have been forced on them by shareholders. So there used to be almost this pavlovian response where oil prices would go up, and youd see people out drilling. Drill count has been very, very flat over the past6 36 months despite oil prices edging higher. We think theres probably some upside risk to demand but also more constrained supply which leaves us a little more bullish than perhaps if markets are factoring in right now. Ashley very quickly, scott, with regard to china, i never seem to worry about them because i always think beijing will do whatever it takes to get back on track. They dont really have anyone to answer to. Do you agree . I dont know, ashley, because, you know, you look to the reports coming out, and they seem to be different week by week. Ashley yeah. I dont know what we can really hang our hat on, what we can really believe in. You know, it was just a few weeks ago that the demand side of things were ramping up, and now all of a sudden we see its not there. So i think that any market that were looking to follow whats going on on china, thats going to be a very difficult one and a dangerous one because i just dont think we can trust the data. Ashley yeah. I think youre exactly right. Out of time but great discussion, gentlemen. Eric, scott, thank you very much for joining us on this thursday. We do appreciate it. Thanks so much. Ashley thank you. Now to this story our pleasure new york city is the latest to ban tiktok on governmentowned devices. A report on why the big apple is joining the growing list of cities and states worried about the chineseowned app getting access to u. S. Data. Thats coming up next. As we head to the break, the closing bell will be sounding in about, what, 48 minutes from now. The dow off 283 points. The claman countdown coming right back. Im so glad we did this. Im so glad we did this. Im so glad we did this. Im so glad we did this. Im so. Glad we did this. [kid plays drums] life is for living. Lets partner for all of it. Im so glad we did this. Edward jones ah, these bills are crazy. She has no idea shes sitting on a goldmine. Well she doesnt know that if she owns a Life Insurance policy of 100,000 or more she can sell all or part of it to coventry for cash. Even a term policy. Even a term policy . Even a term policy find out if youre sitting on a goldmine. Call Coventry Direct today at the number on your screen, or visit coventrydirect. Com. Goli, taste your goals. Ashley new york city is banning tiktok from cityowned devices and requiring agencies to remove the app within the next 30 days. The scrutiny over the controversial app heating up across the country. Joining me now with the very latest on this is madison alworth. Madison. Reporter hey, ashley. So new york city has decided thatting having the chinaconnected app on its government phones is just too dangers. No more tiktok on mayor adams cell phone, also no more tiktoks from the mayor from new yorks park and rec nor sanitation. That last one definitely a loss, a very funny account with very duringty humor and not in the way that you think. Do you ever just wake up in the morning and think to yourself why, how come and how dare you . Reporter in 30 days no more trash talk because that is when this ban goes into effect. City hall saying in part, quote nycs cyber congressman determined that the tiktok application posed a Security Threat to the citys Technical Networks and directed its removal from cityowned devices. New york city now joins the evergrowing list of cities and states worried about china getting its hands on americans data with 37 states already implementing some level of ban or transition. Restriction. But despite the pushback at the federal, state and local level, the chineseowned app is expanding its offerings. Tiktok is looking to become a central part of americans Shopping Experience by investing heavily in ecommerce or with tiktok shop. Users can shop directly through the videos that they watch, a potentially lucrative revenue stream for the app that is already gaining traction with app users. When it comes to federal legislation, there is a bill supported by a Bipartisan Group of senators that would block tiktok from exporting it data to china. It stops short of a federal ban. And i showed you that map. A lot of these bans have been focused on just government devices, but in minnesota they recently passed a bill in montana, they recently passed a bill that bars tiktok across the state. Unsurprisingly, its being challenged by big tiktok, so we will see what happens there. Ashley . Ashley the story goes on. Madison, thank you very much. The very latest on tiktok. Nonprofit insurer blue shield of california making a Seismic Shift when it comes to its pharmacy benefit manager. Well is that report next. The closing bell coming up in about, what, 42 minutes from now, and we can see the selloff continues. The dow down nearly 300 points. Were coming right back. 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 . 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. phone typing message sound message sound shut it down blackpink in your area shut it down whatwhatwhatwhat . Im saving with liberty mutual, mom. They customize your Car Insurance so you only pay for what you need. You could save 700 dollars just by switching. Ooooh, let me put a reminder on my phone. On the top of the pile oh. Only pay for what you need. Liberty. Liberty. Liberty. Liberty. upbeat music awww. Awww. Awww. Nope. Constant Contact delivers the Marketing Tools your Small Business needs to keep up, excel, and grow. Constant contact. Helping the small stand tall. Ashley fox business alert for you, taking a look at the markets, we are down on the dow now about 300 points, down nearly 1 . S p, same story is, down almost 1 . The nasdaq down 157 points, down about 11. 22 . The eloff 1. 2 . Meanwhile, while theres growing uncertainty, we talked about it, surrounding chinas economy, chinese stocks making a bit of a comeback. Shares of alibaba up 1. 33 as informsering are hoping investors are hoping for more stimulus measures. Chinese media reporting the ccp indicated there will be policies in place to strengthen the economy. Tencent and nio also higher today as you can sea see. In fact, tencent up 6 . On the other side of the coin, wolfspeed shares, take a look at these, they are down 17, almost 18 after the company said it expects a much weaker outlook than analysts predicted. The Semiconductor Company expecting First Quarter sales between 220240 million, slightly lower than the 235. 5 million estimate and also expecting to lose between 6075 cents per share, much more than the 20 cents estimates. Stock down more than 17. 5 . And then theres this story, cvs stock is taking a hit today after blue shield of california said it plans to stop using most cvs Health Pharmacy benefit the Management Services and instead work with others including amazon and mark cubans drug firm in a bid to reduce drug costs for its Insurance Plan members. Not doing much for the stock, shares of amazon just down close to 1 . Well, while people head to amazon for discounted prescriptions, theyre also hoping to get some discounted school supplies. Why not . Retail giant walmart attributing revenue gains in the quarter ending in july partially because of early back to school shopping. And as schools start to reopen, yeah, there could be some sticker shock. Lydia hu breaks it down for us. Good afternoon, lydia. What should parents expect . Reporter to spend a lot of money this year, especially if you have got kids in Elementary School through high school. Those families will on average spend 890 this year on back to school items. Thats a new record from the national e a tail federation retail federation, 25 higher than what was expected last year. All in, the total is expected to hit an unprecedented 41. 5 billion. Last year the total was 36. 9 billion. The higher spending here, ashley, is driven by an increased demand for electronics and higher prices. Government data shows that prices are up for girls clothing and Boys Clothing and stationaryer in stationery as well. And other data from an ecommerce company, pattern, they show prices for a lot of back to school goods many of them right here, theyre all common things; index cards, notebooks, composition books, folders, even mechanical pencils, ashley. Theyre up in price. For example, pattern says mechanical pencils, 16 more expensive this year than last year, folders 13 higher. You mentioned walmart a moment ago. The cfo, john david rainy, talked about strong back to school sales just this morning on the