Closing Bell 11/01/24
42:35 Share

Welcome a closing valle. I'm Scott walter, front center right now, very big week ending an uncertain one about to begin as the full market tries to make sense of all of its stocks rally across the board. We're going to ask our experts over the final stretch what lies ahead in this last and very important hour.

Take a look at the score card with sixty minutes to go in regulation. A weaker than expected but noisy jobs are for all but being brushed off by the markets today, which are being LED higher by amazon and the consumer discretionary sector. Most of the mega cap hired to, with the exception of apple, following that companies earnings last night, you see that stock down about one and a half percent.

Other big winner today, intel, and shortly, which is bouncing back following its post turning sell off IT. Just take us to our talk to the tape. Two months to go for stocks and a very big week ahead with the election of the fed meeting looming large.

Let's ask our panel what's really at stake. Step any link of high tower advisers, greg branch, but branch global capital advisers and eeco yoka of a wealth enhancement group, steff and greger C, N, B, C contributors. It's good to have everybody with us.

A nice to see you back here with us. mr. S, so what what you can view the market.

so it's still neutral and and other than the election, I am really searching for a cattle s to believe in either negative or positive.

And when we look at the election now, of course, there's some d risking here that goes on no matter what the outcome is, with one candidate on another level down, when you transition from candidate to elected official, we get to weed out some of the retina c and and noise that was never going to make IT into policy anyway. So I think that that's A D risking event as well. And then thirdly, both of these candidates have been an office before. So we know what sectors and industries they've been supportive of and where we might see a very particular specific.

And so you've been willing to stay neutral, I think, for a while right um in the slow lane, so to speak, all this traffic been passions in the in the left lane. And why have you refused to hit the peddle join the rush because because you've missed out obviously on a good amount of this rally. sure. This full market.

I think my answer is typified by some of the market activity we've seen over the last month, and that is the data still kind of mixed. Um so earnings growth for five, three quarters is great. However, this quarter at three point six percent as opposed the last quarter thirteen percent, that bears some watching on the inflation front, obvious.

Ly, we continue to experience this inflation and IT remains a topic that most don't want to talk about. However, the core number has shot back into the thirty basis points range for for month of a month. Core growth for the last two, two months down.

Uh, so wherever I look, there is a data that makes me optimistic, but still things like that give me pause with that. And and I think I will become more bullish when I find multiples and consensus expectations leaving room for outperformance, and I just don't see that right now. Staff.

what do you make of that?

Well, I think we should .

applaud two point eight percent GDP growth because that's above trend, well above trend. I think the labor market is softening, but it's still on on baLance for the most part. If I look at a and initial jobless claims, if I look at the three months moving average for non farm peril here at one forty versus two fifty, eighty years ago.

So I understand that we are certainly slowing there. And that's the reason why we have a fed that is embarking on a fed cut cycle. We have lower inflation at an employment cost index of point eight this week that which was less than expected, a pce at two point one.

And consumption, the consumer is hanging in there to everyone s surprise. Look at final sales to domestic purchases of three point two percent. That is a very healthy number.

And of course, you have this manufacturing renaissance. All you need to do is point to eaten quana services G E ver nova as examples of this renaissance thing tied to the grid and power and electrification. And that, of course, is tied to A I.

So I added up and I see total revenues at five percent and earnings right now on my numbers are up nine percent. So I think that's very healthy. I think we have some volatility into the next week. We have got a lot going on, but I think that once we get through IT, I think we rally in november and december as people chase because they're under performing. And you ve got six point four trillion dollars in money .

markets Greenings first is a year ago of eight point four percent. Not sure where your .

number the set has from. What I .

think bottom line is, is the economy is undeniably good? yes. right.

great. okay. Well, because you said the data is mixed in total. Is that really, mick?

Let's let's stay there for a second because I second a lot of what stephane said, you know, not only is GDP great, right, but the third quarter doubled, sorry, the second quality double, the first quarter number, the third quarter number show is going to show acceleration as well. Um but to what extent is IT too good is my concern when we see the core number jumping back into the thirty basis points, look, i'm not the only one who is concerned that perhaps they moved too far too fast .

and did they did one hike of a fifty basis point I get .

and here we are back in the thirty basis point four month over month again. So my bed is, my bet is will be twenty five, uh, for the next cut. And the concern will be, let's make sure that this doesn't accelerate for me.

I A big your porn, but i'm going to bring in Steve leeman and i'll come to in a moment. But I just feel like now a good moment to talk to Steve, our senior economic reporter. I presume you've heard the conversation from the beginning.

Do you want to wait in on whether I mean, I say what a greet too pessimistic, but he admits that the economy is good. He's just thrown a bit, I supposed by the most recent inflation report. So it's coLoring is overall view I think about what might lie ahead.

Yeah, I don't think greg is wrong IT to to be concerned about those rites. I think Stephanie has IT right. And i'll put an aster's next next to that, that the economy does look like it's doing good and doing well and should be set up for corporate profits.

The problem I have that is not really something I have an expertise in is the market seems to have value that pretty well, right? So you look you take a look at the longer term, look at the market and it's come up pretty strongly. There is an expectation out there.

I think that things go along, right. You've had stronger growth and expected. You've had a stronger consumer hanging in the you've got tion coming down and the job market hanging in there.

Scott, my canvas of a economist today know they say, well, if I made them make a call on this very distorted number, they would say unbaLance IT was softer than they expected. And that's because a they were below expectations. Even though the strike effects and the hurray e effects were anticipated, they were greater than expected.

But you had this downward revisions. If you look inside the numbers got I take a take a look yet, a fifty k decline, for example, in temporary help. And then I went back and look at different weather things out there.

When we have big Spikes in people not being there for weather, there's you go there's a temporary helped down forty nine manufacturing. That's your strike right there. So maybe it's one hundred thousand, which means you are only at one twelve if you do very, very strict math on this.

Maybe there were a few other places where the hurry ane or the strike showed up. But then you look at some of these weather events and they come back pretty strong. Look at that one point eight million weather apps is in january.

And ninety six, the blazer of ninety six IT was. And then each time you had to Spike in temporary help loss, people say i'm going to keep my temporary help at home if I can offer customers at the office or at at the store. So that's part of IT, but still you were still only at one twelve.

So there is some weakness and the markets OK. The fed is still gone to cut with the debate being I think the market has just a little bit wrong. It's not about will the fed cut this one through next month. It's about where the fed ends up and really the markets having an interesting terminal .

rate debate right now. But I think also, Steve presume that you saw the great get piece in the journal as well about know the headline being the next president inherits a remarkable economy. That's the headline of his peace in which he talks about the growth is being great in its own right, but the quality of that growth, that's the word that he uses. And I watch you to way in on that too well. And I wonder if those who are concerned or not saying on what's happening are truly appreciating the productivity gains that we've already seen and the ones that we anticipate as a result, in part because of what artificial intelligence is doing and changing the way we live, work and just about everything .

else is facing a first of all, Scott, as you know, the economy is a disaster, right? You know that that's what has been said about the economy. It's just not in the data.

People feel poorly about the economy part because of Price increases. But what greg is getting at is the gazza an dollar question. If there is more productivity in these numbers, then just straight buying and selling a stuff, but we're getting more efficient. And and that's do you want to tell you, sy, any time there is a bump up in productivity in the short term, the Better bet is that it's temporary. It's always the Better bet.

But if something profound is going on that has a big, massive, huge implication for the stock market, the economy and the federal reserve, got there was a day this week there were two headlines on the front page of the journal that I thought we're repeats. One company was looking for fifty billion dollars investment AI. The other was looking for forty.

I thought they're misprinted the numbers and repeat at the story. No, they were not separate story, not the same story. They were separate stories.

Ninety billion dollars just in one day being announced of investment. And remember the old Green span sort of saw on this thing. What he would say is if people are investing in IT, there's probably some value there.

Yeah, I mean, it's I guess it's gonna continue to be a pretty you know good debate on on this topic. Steve. Thank you. I want to turn all of this back back to the market because I A, if you believe that the economy is in as good as shape as most people would not only believe, but would have you believe the and the feds cutting interest rates? And what does that mean for where we go from here?

sure. So you know I when I look at earnings growth in this past earnings season, we've had a pretty solid earnings season. He has been been fantastic.

Or the ball park, it's pretty solid. We've had over seven percent of the companies that have reported beat on earnings, sixty percent beat on revenues. So I think that continues to be a positive.

And then to Steve point about productivity. I mean, we saw IT from google quarter. They talked about over twenty five percent of new code being written by A I.

Amazon talked about IT on their quarter in which they had right um Operating efficiencies in A W S, with Operating margins expanding by seven hundred and eighty basis points year over year. So we're seeing at the largest tech companies, and that's going to trick down eventually over the coming months. Other companies stuff.

What do we learn this week from these companies other than the fact they're just not going to trade IT doesn't appear at least in the near term as a monos, right? We're differentiating ourselves. We're separating ourselves from the pack. Amazon, obviously, which you added to last week into the number, is having a great day. Apple sort of and meta and microsoft felt pretty sharply after their own learnings.

Well, I think it's a lot about expectation, Scott rates. So I think amazon had very low expectations, but the quarter was actually outstandings. I had just mentioned the margin side of the story is really very, very powerful.

They expect in margin retail in north amErica by one hundred basis points, international by three hundred and sixty basis points and in A W S, seven hundred and eighty basis points. We also saw a margin expansion in other sectors though, Scott, we saw margin expansion at dr. Horton n in their housing business.

We saw margin expansion in chat. We saw margin expansion again in in some of the max seven, not all of them and even a little bit at apple, right? So number one, it's a it's I think earning season.

It's gonna good revenue numbers but Better margin story. And I think that's a twenty, twenty five story as well that number one. Number two, free cash flow is just enormous.

And the big names that reported this week, the hyper scales, they're going to spend two hundred and seventy billion dollars on A I this year alone. That's up forty one percent and probably a two hundred and fifty billion next year. And we got that in spades.

So this is not a bubble in terms of AI. Are some of the stocks expensive? absolutely.

Our expectations really high for some of them. absolutely. That's why you saw microsoft and and an alevtina well mixed results. I mean, microsoft was was down and meta was down, and I know that was a little bit Better and and amazon was a little bit Better. So I think you can pick stocks and look for strong fundamentals where the companies are delivering and where they are investing for growth in the future and where the expectations, though, are a little bit less. And that's the story of amazon and an alphabet.

I mean, great. You big take away, I I suppose is that if you're cautious on the market overall, you don't sound really that causes from your notes on this group that you think breath is going to narrow once again and that this is the the place that you want to remain.

Yeah, that's right. You know when you look at again the fact set numbers for the S M P, the overall was three point six percent. But in communication services driven by meter um and and by google, that sector was up twenty percent.

And so generally as as we get into the territory, we're Steve said we are where things seem fully valued, where we don't see an acceleration necessarily across the board and earnings. Will investors retreat to those that have much superior earnings power? And the staff pointed out much superior casule generation.

Well, that's that's one of the debates. Um I mean, the the market some would suggest not that Steve was necessarily saying himself that while the markets Priced all this stuff in that it's fully value now IT already knows, right? The earnings growth is good.

It's gonna remain what we think pretty good. The feds cutting um the multiple was kind of, you know maybe rich, maybe not, maybe not. Because if you can maintain this kind of economic growth that we have, if you can maintain the kind of earnings growth that we we have, you're going to get a reduction in interest rates. Firmly believe that there's no reason to think we're not. We make IT fewer and slower.

right? But we have to find a right for sure.

And the neutral rights, i'm sure, higher than what the effect. And initially thought I was think we going to agree on that problem. okay.

And then you're gonna unleash this pent up demand. And what some have called smart investors have called animal spirits that are just waiting right to do M. A. And you're gonna paint a picture that just doesn't look nice and beautiful to hang on the wall.

IT doesn't look up. IT doesn't agree. I'm not barish. I'm not saying that, that we should go out and share anything. All i'm saying is that we we can achieve a good return right now without taking on excess risk.

And to me, that means focusing on companies that I am confident no matter what happens with the microenvironment because there's all kind of political and macro s that we haven't even been touched upon. But in an environment that may get more, i'm confident and i'm more confident investing either in things that have a structural supply demand imbaLance, something like. Shipping or the GP1GP one companies um or or these technical that continue to put up thirty percent plus rings growth。

Yeah so I what's wrong with that point of view? right? I mean, it's this is narrow.

Greg is narrowed his horizons on where he thinks the best risk reward is in this market, whether it's mega capital, whether it's gop. One staff has a newbie this week of eli lilly on the pullback. So clearly, SHE used that too. But giving your perspective on that, sure.

So know I think what everybody he's sort of getting that is that, you know diversity is important, right? We need to have some tech exposure. You know, we continue to see the growth that's coming out of a lot of these mega cap harper sailors.

But diversifying outside of tech is also very important. You know whether he is adding to health care or even some of the financials know they were one of the first report. And you know jack Morgana had a great quarter, and we think we should still have some exposure there, uh, despite rates coming down. And so you know it's really about having that full diversity .

stuff a front run your move here um the the fact that you bought lilly this week on that pull back that I had talked more .

about that yeah I mean, it's not cheap, Scott. So i'll give you that. But IT is the number one franchise in one of the hottest places of to be in terms of weight loss and diabetes.

You're talking about between the two, about a five hundred billion dollar total addressing market by the end of the decade. And i'm probably low by a factor of two or three times. This is, as I mention, the number one player, and I think that they just delivered forty two percent total revenue growth in the quarter.

If you want to x out the diabetes and weight loss drugs, they still grow their legacy businesses. Seventeen percent in revenues. Find me any pharmaceutical company that is growing at that level with the best in breeding company management, with prescription transiently ally in weight loss and also diabetes, up twenty five percent, twenty five percent sequentially.

And so this is not a demand problem. This is a supply problem, but I would go back to the market as a whole is you're write, it's not cheap, but there are themes. Animal health is one, financials are another and uh, housing is another. Animal health, there's lots of places to find cheaper stocks beyond tech and even intact. There are some stocks that are still very attractive.

You just got to be selective about being the idea of, okay, forget and we've had this conversation this week, we had been, I think, having a debate. Well, if not mega cap, then what about small cap? Because you figured a drop in interest rates would help those stocks finally do something. What about midcap stocks, which which seem to be in in a potential sweet pot? I think IT was tony pascuaro who talked about a them being a gem jump sitting out there waiting to be discovered.

And I think over time that that's probably right right. Because as as we search for the neutral rate, as we are in the midst of not just the U S. But a global rate cutting program, um the reduction in the risk of financial interest impacts the midcap in a small cap more so than large cap uh the increasing demand as we pick up demand a globally, I think benefits the mid as well, probably far more so than the small caps.

Still, Scott, even as I go down capsize, I look through this as with the same prison as I do with large cap. And so if I want some mid cap exposure, i'm going to a look in shipping at zum or masters and a in the U. S. That can take advantage of the supply demand structural imbaLance that we see coming out of a european.

Let me just finish with you real quick and and then will wrap the conversation of I mean, market is about to post its second great year in a row, right? Um what what gets you off the neutral bench? I I have a hard time and we always have this debate.

I have a hard time trying to figure out, if not understand, how somebody who has missed for the most part, I think that's fair to say the bulk of the move over the last two years now decides, knows the time to change their mind and thus their view, right? Because the market wasn't trading at twenty two times right before. The market did not have the kind of earnings growth that IT had before.

The fed was not cutting interest rates like IT was just now, and it's going to continue to do so. I could understand having a negative view at that particular time because I think environment has turned out to be Better than most people thought. I would agree, but that you haven't changed of you as a whole, right? You have not.

Well, I think moving moving from being barred shed to neutrals was a pretty significant change. Um I also want to correct the record that the market a year ago this time was at forty one hundred and so you know one hundred percent sure there's been a human gest move in the last year. Um but even those of us who were barish got to participate by participating at the short in the curve, did we we put up twenty four percent? no. But again, not all of our clients want to chase the smile and off a some of our client are much more concerned with principle preservation and they appreciate that folks like me save them from severing. And twenty percent down decline in two thousand and I just cut.

cut off I was on .

so I think um what gets me from neutral to bullace? Ka, and i'm waiting for IT and I want to be so that you and I argue this for one. But but so that the thing that gets me there is either I want to see multiples come in a little bit because I do believe that we're somewhat fully Priced overall.

I want to see consensus numbers that I think have upside to them so that we are generating a level of upside surprises that will sustain a tAilin. And that's when I think i've become broadly more, more, more bullish. But you're right, I think the sectors that I talked about, the sectors I have talked about for a year, right? So it's not that I have participated in know.

of course, all right. No, I I appreciate you articulating your view, most especially for for our viewers to have watched many of our conversations and says, oh, he's neutral. He's naked on the market again.

No, no, no. Netra neutral.

just want people to family, understand and myself included to brance. I thank you. Step, thanks to you as well to pip of Stevens. Now for look at the biggest names moving into the close paper.

Hey, Scott, Steven on is in the Green after the oye giant b top and bottom estimates during q 3， returning a record seven point billion dollars to shareholders during the quarter of via buybacks and dividends. The disputed hest acquisition does remain an overhang, but CEO mike worth told cnbc he's confident in their position on the arbitration and that they'll see IT through.

And rival exxon is modestly lower following a mixed quarter, production grew twenty four percent a year over year to nearly four point six a million barrels of oil equivalent per day, which helps offset ongoing weakness in the companies. Were finding x on did also raises q four divided to ninety nine cents per share. Scot.

people like that. Thank you people. Stevens, we're just getting started here on the friday edition.

Up next apple share, slippery post turning star analyst day woodwind standing by with this first take on that report and his forecasts for iphone demand heading in the year. And that's critical. We here from him, we will hear from him next. Apple shares under some pressure today after earnings, investors weighing iphone sales growth and record services revenue against the lack of clear commentary on AI driven demand to me. Now top apple analyst eric ring of Morgan stone is good to see you.

Welcome back. Thank you very much. Talk good to see you as well.

So post report, you suggested that the shares are gonna remain think the words you use range bound, but you think the downsides limited, expand on that. So why? First, I can understand what you would say range found, but why do you think the downside is, is limited?

sure. Maybe the caviar to that, that statement is if we see a deterioration in the data, then of course, there might not be limited downside, of course. But knowing what we know today, if I think about my earnings for fiscal year twenty five of around seven, seven dollars and twenty five cents, apples been trading close to about a thirty times multiple.

Maybe you discount that a few turns just to be conservative. You're looking at something like two hundred, two hundred and five, two hundred and ten dollars stock. It's two twenty two today. So so we're talking about relatively limited downside in the event we don't see the data deteriorate again, in the event we can look forward and get excited about apple intelligence, the iphone seventeen and look beyond just the near term. My Price argee two hundred and seventy three dollars. You know there's more than twice as much upside that I see kind of new year term outside, even though I of course, I did say and and I stand by IT, that I think the stock will will be ranged bound for a handful of weeks until we get close to the end of the year.

We got no real guidance on on A I demand for q 4。 So it's one thing as an investor, i'm not sure what to do about that. But how do you as an analyst to relying on you feel like you you're being forced to guess on what you think demand is going to look like in the fourth quarter, what the degree of any upgrade cycle may be because we just really don't know.

sure. I am. I don't think it's necessarily very different from any other december quarter. There's always an unknown going into the holidays with a new product. What is different about this cycle, of course, is that the key feature has been apple intelligence that is really only available to us consumers as of this monday. And so IT is just so early to make a claim on whether apple intelligence can drive that inflection in iphone demander.

Not that maybe there becomes a bit more guessing game this this holiday period relative to past years, but this is always the course of business, which is let's track demand, let's track what's coming out of the supply chain. Try to tie those two together to make an informed decision. The way the forecasts that we've come out with the december quarter, about one hundred and twenty three and change of a billion of revenue is, is the latest viewpoint that we have today.

But we'll have to continue to track the quarter again. The are very important. They can fluctuate significantly year to year. That job is no different this year. It's just there's there's an added dynamics and added factor and apple intelligence, the newness of IT that might make this a little bit more of a dynamic quarter than than last quarter.

I'm trying to, I guess, entertain the idea of what happens if this is a very prolonged and rolling upgrade cycle, right, which is very, very hard to calculate coming out of the pandemic, which is obviously you rehab voc on supply chains and consumer behavior.

IT just worked the way we live for a few years.

and I think you can make the assumption that IT may do so for the next few years. When IT comes to consumer products, we don't know what we really need yet. We don't know what we really want yet. And thus, this might be rolling, right? What to do with that, right?

I saw I think you are seeing that with the iphone sixteen today, which is apple intelligence is really too new to to drive those real optics and upgrade rates yet. But it's kind of lingering out. There is something that I think that consumers are interested in but need to learn a bit more about.

And of course, for those of us that aren't in the us, need to actually be able to to upgrade to generally speaking, consumer electronic spending today is is quite weak. It's been quite weak since the middle to end of twenty twenty two. And we published on this monthly, there hasn't really been any end in sight to this pain.

We see a lot of chAllenges in the consumer hardware world. And so that's why I think you're seeing part of the iphone sixteen performing the way IT is, is because of the macro in terms of the rolling kind of upgrade cycle. Of course, that potential exists where I stand back and I kind of look on this cycle or apple intelligence.

And what's coming to market is, one, there are still seven hundred million plus iphones that are three years old that are not eligible to run apple intelligence that need to get upgraded. So that basis there, there is pent up demand and e longah. Replacement cycles, and you just need that catalyst to turn this from a potentially rolling upgrade cycle to one that can be a bit more severe to the upside.

And when we look to the iphone seventeen, again, what we've been talking about is apple intelligence will be in the market for about a year before the seventeen is released. And so the consumer will have a Better understanding of what that can do from a utility values standpoint and help to drive upgrades there. Also, you we still do think there will be a slight form factor change, even if minor, with the iphone seventeen switching from a plus model, which kind of gets lost in the mix to a slim model, which can actually be very attractive for users that are looking for a different form factor than they've been able to get. Form factors are usually a big factor in driving upgrades historically. That's why the iphone seventeen is interesting because you have apple intelligence, you also have a bit of a form factor and you have them coming together in one year.

interesting. Leave IT there. I ark. I appreciate your time, as always to comment on closing bell with us. Eric would ring organ stand up next black hole capital low. Tony is here we get his first reaction to amazon's s report, will find out how he is navigating the tech sector amid market uncertainty. We're back up to the break.

Shares of amazon rAiling on strong quarterly results, investors rewarding the company's ability to baLance profit, growing A I spent with CEO. Andy justice saying on the call last night that amazon will continue, quote, aggressively AI investments, joining me now as low tony of flexos ital is a cnbc contributed. It's good to see you. Welcome back.

Thanks for me when you .

make those comments. He also called IT maybe once in a lifetime type of opportunity, clearly setting the stage that they're not going to stop spending a lot of money. Their cap ccs was up eighty one percent year on year. Remarkable yeah is .

remarkable. But I think when we take a look at the magnificent seven that have reported in total, we can see that the AI ability to drive revenue is here and a key player is obviously amazon. So yes, those investments are paying off.

In fact, another comment that the CEO made is that their AI sweet of products is actually growing three times faster than AWS at this similar state. Now think about that comment and think about how significant AWS has been for amazon. So to make that comment, I think that portends what the future holds. Amazon with A I do .

you think that amazon was the best of the group this week? How would you how would you put a report card out?

That's a great question. When I think about some of the other folks had obviously you microsoft had great results. Alphabet had great results when you really narrow win and focus on both cloud. But I think the an apple I think one comment that I would add to your prior guest is the apple, apple ability to really increase that services revenue, which is going to become more important to give them a little bit of a cushion around the dependence on hardware. Yes, I would say that, that amazon's results were were quite impressive. And I would say this particularly the way that amazon is positioning itself, leveraging the ability to have that customer base from AWS to not only provide their own sweet of products from amazon around AI, but also, you know they also can offer competitor solutions as well for bruck.

I want to ask you a brought a question and low about the environment out in silicon valley, if I may, and is because something called my eye only earlier this week.

And IT was a comment that the linked in cofer read hoffman made about the climate in the valley because of the political discourse and the different sides that some large names there have taken in this election, to which he described the rift, one that might be long lasting, one that might have interfered red with business in the valley, the idea that some L, P, S. Or investors have chosen sides in the way they're investing now and my in the future. And i'm just wondering what you make of that. If there is the possibility that, that could reduce the pools of capital to some venture back companies based on which venture firm that they have been backed by. How do you take that issue in total about you know what you're seeing, who you're talking to out there about that issue?

Yeah, thanks for asking that question. One of the things that I have noticed within the past couple of years is the increasing importance of policy for those that are playing within the private company ecosystem. We know that for public companies, they have spent money around their interest in washington, dc through lobbies or through having their own government affairs folks.

We're now seeing that same thing happened within the valley. And I think, you know, if we were to take a look at a couple of administrations, both this current wide administration, as was the trump pence administration, the bite administration has been very systematic and aggressive, filing a record I that think fifty um lawsuits against technology companies and it's really suppressed the activity. IT was a little bit more selective during the trumpet administration, but none the less.

We are now looking at a probably about a ten year low in imminent activity. Why is that important? Well, is important because it's a reflection on the leadership of these agencies, the ftc, doj.

In my opinion, we need to remind ourselves that not only are we suppressing the available capital because when we think about emini activity, that's a strong way to get capital back to investors like the limited part that invest in venture capital funds. Venture capital funds look for the next google, microsoft and facebooks. And the inability to have that capital return means that the L, P. Are not investing back enough into the venture capital firms, which kind of suppresses our ability to drive innovation, I think is also important thinking about IT from a perspective of amErica as a company, we need to maintain our competitive position globally.

And I think a lot of the suppression that we're seeing around imma activity, IT also suppresses our competitive nature when we start to look at the ability for big tech companies to pull in a and then provide those products to the customer based and then also thinking about A I and really how we're trying to, I think, in my opinion, with these current administrations, our agencies overregulate, AI, the market can figure that out. And I think looking backwards, which is the way that a lot of times we're making these types of policies is the wrong direction to look. And unfortunately, I just don't know if we have the right town leadership to understand how dynamic that changes are within our industry, especially around A I, I can barely keep up. So i'm not sure how folks that so much on their plates and you've chosen to go down that career .

path can keep up to be continued low. Appreciate your time, as always, as low to any of ital. Join y up. Next we track the biggest movers into the close. Pip of Stevens back with that hybrid.

a one chip company is trying to write the ship and jumping after earnings, the name to watch coming up next.

We're less than fifteen from the closing bell back to pipe Stevens down for the stocks that he is watching. Pippa.

hey, Scottie, of us are surging despite A Q 3 miss on the top and bottom line， including a sixty year over year decline in earnings. Dorchy bank, which has a buy on the stocks, said the company is positioned for a return to growth in twenty twenty five at the modest detriment of the second half of twenty and twenty four. And intel is the best performer in the draw after reporting a surprise profit for the third quarter.

Revenue also came in ahead of forecasts, with intel raising its guidance. IT comes amid the chip makers restructuring initiative, which CEO pat gelsinger calls one of the most seminal in the companies is history. Those shares up eight percent.

Scott cup, thank you for the Stephen. Still ahead, we will tell you what's waiting on wafer in todays sex, and we're back up to this now. The closing bell markets on cording reagon, with more on the move in way for the day filled with the latest on the boeing strike plus pop, is only breaking down the crucial moment into the cloth courts. Great to have you back. A.

it's good to be back here. And I gotto tell you, sure is a way fair. Slumping here of Scott after reporting Better than expected sales and profit. But he was the earnings were really driven by expense controlled, not really stronger sales welfare reports, fewer active customers and fewer orders delivered compared to last year.

The every daughter a value did grow more than four percent and all the earnings calls, the una shah said the quarter all continuation of choppy macro trans and the consumers remain traditional ous shell that wave there is, quote, seeing a broader pulled back by shoppers in the leap to the election, attention focused away from the homer right now, particularly, he says, in bigger home purchases, which of course, is where way fare skills. Now quarter to date, trends are flat to down slightly, and executives on the call expect roast profit margins also to be the lower of guidance. IT gets more expensive for a way for to be able to drive sales and game new shoppers going forward. I card you.

Let's go to reagan back with us. I feel a, if you don't first succeed, try, try again. And I guess that's something how that goes. So we'll vote .

again third time. This is the third time the machines will be voting. And look, this is a far richer offer than they voted on yet a couple of weeks ago or even back in september.

Thirty eight percent pay raise over four years enhance four a one k signing bonuses has been bumped up to twelve grand, but still no reinstatement of the pension, which is what many machines would like for CEO Kelly or perd. He believes that this is hopeful. The deal that finally gets the machine is thirty three thousand back to work today.

Send out an employee emails saying it's time we all come back together and focus on rebuilding the business and delivering the world's best airplanes. There are a lot of people depending on us. As you take a look at cheers of boy, keep in mind that the machinists will voting on monday's ad.

We don't get the results until late monday night. So tuesday morning, we'll know whether or not the workers will be going back into the plants eoe, perhaps as early as wednesday morning. Scot, back to you.

right? Thanks, phil, and see what happens once again. That's our fill above our bob. So obviously, we're going to have a nice day here, the first of november for trading um but we've soften a little bit into the clothes. And I noticed that some of the mega cap stocks that we're higher today have turned down.

Yeah, I think the key story here's we still have a decent economy and the real story is strong earnings and that's overcoming these concerns and these election genitals that we are seeing. You look at the orange were seventy percent through. I just went through them today.

We have eight percent growth in the S A P, the tech sector, nineteen percent growth in the earnings. And it's been going up in the last couple of weeks, not down in the fourth quarter numbers, which is what are really holding up while text going to be up another fifteen percent and they're not cutting those numbers. Appreciative stock, Scott.

And that is why the sp is only two percent from a ute high. If you want two problems, one, the markets expensive. You know, the bad thing about good markets is it's hard to impress people.

But I think more importantly, those bine IELTS on a daily basis every day. We get worries about that. And you don't want the bond vigilantes controlling the market.

A lot of this rally is just based on reasonably low rates. If that gets out of control, it's going to be a problem. And it's got that's why there's been this change in tone. That's why we're not going up anymore. We're back where we were a month and a half ago in the middle of september, I think largely because .

of the concerns of that. yes.

Well, we do, bob. Thank you very much. Just bob asian.

We do have a few important things in front of us, namely the election on tuesday, which course we're going to be alive all the evening, seven and midnight here on C, N, B, C. And early sack as well. Don't want this. We see on monday, of course, as we size up what lies ahead between the vote and then the fed, we can do more than that.