AI, Autonomy & Fed Speak: What's Moving Markets This Week?
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Welcome to a special edition of the undertake podcast monday version dand. They think guys to tell me here in naples flood and yeah, we're here where at the cmi event, I mean, this is pretty cool. We're a very neat little room here.

A lot of people floating ground. As a matter fact, I heard the advice. Ce von is here I going to find him.

yes. And that little old that you heard is for, of course, lizy's g. Thomas SHE have so far eliza.

how you I am very well little jealous that you're enables as .

the weather .

beautiful .

was like eighty two degrees yesterday, Sunny, it's gorgeous here. They have this great eventually going on. This is the global financial leadership conference.

They hold IT every year. We here, well, because you are a financial leader down me at least should be here. Actually, he would be the most credible from the resource al media team.

Now it's a great event and they raise a ton of money for saint jude. They have a program that happens here on wednesday. So that will be kind of exciting. here.

We are last up to do speak to fy later today that's going to drop. So a lot going on. But let's start a this a bit because you just send a note around that three different cell IDE firms have raised or updated their Price targets to think you mention golden sex, brian bel ski and Morgan stanly. So let's start there.

yeah. So this is the week where the big banks so the big wall street banks start to publish their following year outlook. So we've gotten the three biggest ones today already this morning. It's like they they all raise each other to put that out first and at the end of november. So we've gotten goldman's acts with a Price target of sixty five hundred and twenty twenty five.

We've Morgan standing with the same Price target sixty five hundred and two thousand and twenty five and then we have brian belsen y of beams with sixty seven hundred uh for twenty twenty five. So healthy, as we know, tends to skew bullish if a real strong skill in the bullish department. But as we also remember what happened to this year, we had a lot of Price targets that started the year seemingly high, seemingly, you know, maybe in the Normal range of what we would expect for returns.

And then the chase was on as spring came and all of those Price targets started to get surpassed and people were sort of falling over themselves to raise Price targets. And then that continue to happen for the rest of the year. So it'll be interesting to see if we have a repeat of that experience or maybe we have a reverse of that experience. But so far, the big ones that are out are pretty bullish.

Liz, we talked about this, I think, was a few weeks ago, golbin had this report out talking about future returns, the expect of the next ten years to be low single digit, something like that. And we've talked about this notion of the equity you have, you know the scp earnings yield is less than that of the ten year yield, which is at four point four six.

That often times would suggest that equity returns are going to be lower than expected at some point. Don't some of these things just kind of have to work themselves into the way folks are thinking about equity valuations? And we just talked about a sixty five hundred number.

You know the sp, that fifty nine hundred or so, you know sixty five hundred is ten percent higher. Next year, we've had two consecutive of assuming that we end you know in and around here two consecutive years above twenty percent returns for the S M. P.

Five hundred. And I guess the hard thing here is other evaluation. A lot of folks, and especially since the election, can't find too many reasons why the S M. P.

Five hundred sell up. Yeah I mean, IT is difficult to find also. I think we've been looking for reasons why I could decline for a while. So and and we haven't found them IT hasn't a occur, right? We had one little blip with the regional banking crisis and then IT all sort of stopped in and everything continued its upward trend.

So I think people have given up, self included, Frankly, have given up trying to find all these catastrophic things that could or should happen because some of this can just continue on, even if we think it's irrational. IT can continue on for longer periods of time. To be fair to golden, they were the ones that put out that report about I think IT was three percent equity returns in coming years， which sounds pretty muted, obviously so positive, but muted where you've got an average return on the S M.

P. Somewhere at ten to eleven percent range on an annual basis. So these Price targets are right in the neighborhood of average annual returns.

The thing about averages is that nothing ever happens on the nose of average. So the chances of us actually having a year where the S. P.

Produces attend to eleven percent return is rare. IT averages out to that over many, many years. The name of goldman's outlook this year is the year of the alpha bet.

Get a little cute little play on words there. But the alpha bet. So they're talking about entering a benee part of the cycle where things shouldn't be as exciting as they have been.

Obviously, we've got twenty five percent up in the equity market right now year to date. IT probably doesn't repeat that way. But to be fair, we all said that at the beginning of last year, this isn't gonna repeat. It's not onna happen again, and here we are. So I think a lot of these firms, rightfully so and smart, they are hedging the fact that what if this sort of euphoric period continues longer than we thought I would two years ago.

You thought jeff said you didn't think of that for yourself because I would have been a great title for one of your publications. But you'll come up with something i'm sure you you mention that you jealous not being here. We wish you were. But it's interesting that we had marko on mico colonization of jpMorgan on .

the podcast X J P Morgan.

X J P. Morgan, I guys should apologize. X J P. Morgan, last week. And we were talking about valuations and how you got there. And we had brian bell skills you mentioned on as well, I think, a week earlier. And it's interesting, I mean, Marcus, in the hall of fame, bryans probably gonna be in IT.

And how you can have two very intelligent people is a bit with two very different takes on all the data that's in front of i've always found that really ancient, but one the one of the data sets this in front of us are bond yields. And we have to talk about both the ten year yield, which once again is approaching four and a half percent, and the fact that the dollar continues to be, I don't know, pretty form this environment, which I don't think enough people to either of those things are paying attention list. I think one of the reasons is, and we've talked about this, there's this optimism that the rise and yields is predicated on a reemergence of restraint then of the economy and it's justification for her yell. So thoughts on that because it's a story is not going away.

First of all, I listen to this margo podcast and guy. I heard the word come out of your mouth, god, IT was a question. He was in .

the form. I am positive.

So asking maro about all political risks that we're out there, we to talk about china, taiwan, russia, ukraine, israel, all this and and IT was, what if all of these sort of gets solved, or don't turn out to be as catastrophic as we thought they might and IT turns into a golden that had to be done?

You had to confuse I. I will go back to listen, you know, those commercials they have now where there are bunch of people arguing and then somebody throws the red flag and I listen to the tape, yeah, yeah, i'm going to do that and I will get back to you, but please okay.

all right. So back to the ten year, I just said I just had to call you out on. So all right, to ten years. So one of the things that marco did mention on that package, which I thought was a very good point to make and and we know that marco has sued barish for a while, but a very good point to make was that when we're thinking about multiples, here we sit today, twenty two to twenty three times on the S M.

P for returnings, right about the same levels that we had in that you for that post cover euphoria period, where he also drew a parallel to saying we had excitement around tech at that point. We had a lot pala and a lot of the state hometown cks had taken off. There was obviously that mean stock crazy that occurred.

So there was A A concentrated pocket of excitement and the broader market got up to about the same level in multiples. But that was during an environment where yields were low, interest strates were at zero. And now were in an environment or same multiples.

But we've got yields where they did actually touch for in a half again last friday. We're below that today, but yields are much higher and we've got a fed funder, ry, that obviously went much, much higher. So the the weather is different.

And and this is something that I think about pretty often as a macro o strategist where you've got bottom up research analysts or bottom up of strategies that say the only thing that matters is fundamentals and earnings and the company strength. And I do think that, that is an absolutely crucial part of what drives the market, if not the most crucial part of what drives the market over long periods of time. But you still have to be aware of the environment that you're doing, that trading in and the environment that are doing that.

Analysts, this is a different environment than we were in, in twenty twenty one. And leading into that period in twenty twenty two or we had all the consternation about rate hikes and inflation and iai adia. Ta, it's going to be harder to maintain these multiples because of that environment.

You have to beat and raise. You have to do Better than you did last year. You have to do considerably Better than you did last year. And I think people just need to be cognate cent of that. If we topped out at twenty two, twenty three times in that period, can we tap out much higher than that right now?

There was a bloomberg ticket out that we talked that we read red inflation won't eb until the middle of twenty twenty six accord in in the scoggins ed. And I will tell you that's not specifically rent inflation, but the inflation story is something we've talked about for a while. And I think with some of the inflation data that we saw last week, again, I think yields are going higher not entirely because of that is but partially, obviously. So thoughts about that because you know jomp it's interesting you know he seems a little more um I don't know, forceful and some of the commentaries been making about hay if you think we're on autopilot on paraphrase and think again. So thoughts on the picture in the fact that drawn pounds probably here to stay for a while.

Well, yeah, I think if it's up to him, he's going to outlive is going to live out his term. He is not gonna pushed out. Uh, I do think that, pal.

And look, I don't know the man, I don't talk to him. We have no direct relationship. But just what i've gagged from some of his commentary, I think he gets frustrated with the line of questioning that he has to endure.

And I think he gets frustrated with just a suggestion that the market will change their mind, and I think he resists that entirely. Now I do think that there is always potential for the bond market to change the fed's mind if things stop functioning as they should and they issue that financial stability report. Part of this is wrapped up into IT.

The bond market can change the feds mind, but just simple equity moves are not going to change their trajectory. So when we think about inflation, one of the things that I think he continues to get frustrated by is the line of questioning around, well, how can you how can you have gained so much confidence if things have play told? It's not still moving down.

Some of the measures that maybe you don't look at are still higher. We've got this shelter problem. We've got this car insurance problem.

Yi at the list goes on. He is aware of all of these problems. I think part of the frustration is, is maybe there's a suggestion that he's like not paying attention. He they are aware of all of these problems. The comments that they continue to make are that they've gained confidence is moving in the right direction.

They also have to take into account the fact that you have the seasonality element that happens january, february of a new year where inflation does tend to run a little hotter. IT happened in twenty twenty four. They expected to happen again in twenty twenty five.

I'm not saying that that's not a problem, but I don't think we should expect them to react to IT because they're going to a look at this and say we thought this would happen. We're still looking at a six months rolling average inflation. We don't feel like this tells us that we have to change our stance. So we're just gonna be be take a pause for a month .

except for the fact that they did indicate yeah that they are going to possibly take a pause. And so they are the data dependent. So we seen what happened to fed watch tool and in the expectations for a cut in december.

And a guy domi is one of the ones out there saying on our podcast and on cb fast money that he thinks fed chair Powell has done a pretty good job. Then I think you should expect him to continue to kind of focus on the things that are most important to them. And I think that one of the most important things to you guy on me is to really be focused on this inflation, whether IT hence tends to be seasonal or not.

I think what are the biggest risk we talked about this with marco on friday is that trump comes in, he just fires him and you lose a certain level of credibility about the non parties and fed or not. And you know, a lot of folks are going to push back and say what he can do IT, it's illegal. Look at some of the folks that he's already recommended for this. I don't think he cares about that.

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Let's go to some single name circus. I think you know what you just said about what IT takes to kind of get things going higher. Is that much more difficult? And a lot of that has to do with multiples in the light here.

We do have a level of uncertainty, I think, which is not too this similar back to the early twenty, twenty two period or I guess late twenty one because IT definitely feels like there is a bit euphoria in around a small group of themes in the market. So there's two names wanna hit here. So in video reports wednesday after the close, and we gotten obviously talk a little bit about tesla, up nearly eight percent here today.

It's had an epic run, but there's some not going effects which watch going on with tesla and why it's going up and some things that are going down today. I think you're really interesting. But in video wednesday after the cloth, we've talked about IT as this macro event, there was something I read over the weekend that IT hasn't really played ed out that way while the stock has moved a lot post earnings that hasn't had that much of effect on the S M P five hundred or the nanas deck when it's had its own big moves, I think the implied moving the other bucket was about ten percent.

The stock had broken out above one forty, I think, two weeks ago or something has made new highs here. So guy, my question to you is we all know that this is gonna a good quarter, a beat and a rase is just what is the magnitude of that, right? And so there's a news over the weekend, the story out of the information talking about black well, which is the upgrade of hopper.

And this is insane demand. This is a gentle when I said there were some reports a few months ago about some delays here. This is a really important part of the next leg of the story here. But I if this is gonna be something that the company comes out and just dismisses in the demand remains insane. They're able to guide up in a way that suggests that what happens to the stock here and other macro implications .

to the store, the best what happened to the stock, I think, and the is people will take their born run. I think calls are out in terms of the put call ratio ots like two to one in terms of the skill and the favor of calls.

Maybe little bit lesson, by the way, IT is coming down a little.

But with all that said, you think this all started and I don't have in front of me exactly the date. But when they guided from a seven billion doll, quarter twenty twenty three, one eleven billion or quarter, the magnitude of that in percentage terms excited people. Now the magnus de, in terms of percentage terms is going down with each ensuing quarter.

But obviously, the absolute numbers have risen a great deal. So it's the magnitude of the guy to think that people look at number one and number two margins. I mean, they enjoying the same margins.

My senses probably, yes, because competition really hasn't come in a meaningful way. But those are the things I think the market is focused in terms of the blackwell overheating. People saying that stories been out before it's been put out again during a quiet period so they can address IT.

We'll see how that plays out. But I got to tell you, given what's going on with super micro, given what's going on with some of the other semis by the weight, again, micron is not a cop. I get IT, but think about the the reversal on micron since that huge move from about ninety, about one eighteen. Now that's below one hundred dollars quake cone's ted, really poorly since earnings release. Obviously, names like asml, I mean, I can list at least a dozen names that have not trade a particularly well in the same .

at when guy talks about the ecosystem. I mean, to think about that, you have the chip makers, you have the competence, the chip makers, which doesn't seem like there's a whole pack of a lot of them, right? So amy is fAllen, by the way side.

You have the memory, which is micron. You have the server makers, which was super mico and dal dal rowling here. I think they're getting some of that share.

If you're a customer of super micro and you see everything that's going on, you're probably going to look for a different sort of source. The hyper scales in microsoft, it's only about eleven percent on the year. So microsoft is one of the biggest customers of invidia. So lots of parts of the story have definitely really chilled out a bit, a little bit to list if you were to lose. Let's just say, oh, and then equipment maker so aimed was down nine percent on friday and sml had that horrible bookings.

If you were to see guidance that wasn't as high as many would and you see NVIDIA come in, which actually confirms the weakness, i'll say, in microsoft and some of those other names we just talked about, what would you think about the adec? What would you think about the S M. P.

Five hundred earth? Because I read something over the weekend if he was in the journal that a quarter of the gains in the S M. P. Five hundred this year are in video.

well, I mean, in videos up, i'm looking at live in a one hundred and eighty two percent year to date. So they've accomplished that. And and many of these stocks that are up triple digits have accomplished that on the heels of double or triple digit earnings growth quarter after quarter after quarter.

I think most investors, professional retail, everybody can agree that you can't produce triple digital earnings growth for ever into eternity. So at some point, IT doesn't need to come back down. I think Frankly, I think the market has started to anticipate that a little bit. That doesn't mean that there won't be a reaction if the guidance isn't as bigger people expect, but I think the market has started to anticipate that.

And that's why you haven't seen semis outperform as much as they have that you have seen things like software take over because people are taking their money out of the things that they think have have had a really good run on the heels of, of good fundamentals. But that can't go on forever and ever. amen.

So here we are, a period where things are probably coming back down to earth a little bit. Now that doesn't also mean that earnings growth for stocks, second video or the some of the next seven won't still surpass the earnings growth of other companies, but maybe not to the same clip and magnitude that they have. So I I think if this would have happened, let's say there is a company like in video that guided not as highest people expected.

And this was happening a year ago, I would have been much more painful for the market to digest, but today, I think it's a little less painful. But to guys, but I think IT was guy who said IT earlier. And and then you've made this point too.

Some of this money, some of the money that wrapped up in these names that i've had really big returns are in its in traders hands. So people that have held onto this for very short periods of time looking for that will that will quick return if the market moves the other direction, you're gonna see that exacerbated move on the downside for a while. And IT, I think IT would hit a level of resistance and IT would sounds off of that. But you know, it's OK. I I just think giving back a little bit in a Normal ization period is going to be healthy.

We ve got to talk about this tesla because since november six, the day after the earnings, the stock has gained three hundred and fifty billion dollars in market cap. Supposedly, elon mosque has been right at trump side for the last two weeks or so. And if you think about the trade that he did, IT has been one of the biggest returns that you could possibly imagine in the short period time.

And again, as guys says, you don't touch the money here. So until you recognize IT or not, the stocks up eight percent right now because over the weekend, you know there were some talk that they're going to roll back all this sort of regulatory the headwinds to autonomy. And if you believe that tesla and I think what did abc last week.

I mean, he believes that this is only a thirty trillion dollar market cap company.

That's the total amount of the you know S M P five hundred possibly market here or there. It's at one point one trillion direct gap company, up from about seven hundred and fifty billion. What I find most interesting is of too full, is that this stock, one of the biggest things holding you back had been a regular ory.

It's been that for ten years or so. So now that he is in this sort of camp, that they're going to get to full self driving faster than people think they might have autonomous fleets out there. And guy, this strikes me is that one of the beneficiaries of maybe tesla being restrained a little bit by regulation had been uber, uber partner with wamo, which is obviously google s self driving thing, that they have cars on the road.

They are in separate cisco. They're in L A. They're in photo x.

And they're in Austin thoughts, their guy because I think can you chase this stock here up so much? And still it's not back to its all time hires. It's strained about three forty eight in the autumn high I .

was what four or or the short answers I wouldn't be chasing IT. But again, you know, I wouldn't be chasing IT for this entire move higher. It's interesting, I will say that post earnings, we thought was a real good chance we trade up to show that two, seventy five hundred or so, which was a prior hard couple times, and that's what happened.

And quite Frankly, if you look in the aftermath, the stock actually traded away back down about two forty two. So that looked really bright but obvious sleep in the aftermath of the election. There's an excitement around this and a autonomous driving is can be a big part of this administration according to some of things that I read, tesla wins to that.

But to answer your question, no, uber on the other hand is i'm glad you brought IT up because quite Frankly, for the last couple of weeks, I mean, that stock is not traded well at all. I mean, it's been going down in a pretty precipitates way about where you get down about sixty five or so and were trained in sixty eight. Now that should be pretty big support.

So I mentioned uber and you mention tesla, but you know, uber is one of the top three holdings of the I Y T. The I yt, obviously bit on a big run that's the the transportation etf. So there are a lot .

across currency for sure. Yeah, I think the uber is one that's getting really. interesting. I would have thought that a gal a bit higher here in the stock had broken out. This really interesting.

I had broken out to new all time highs the day after the tesla robot taxi event. People were very disappointed what came out of that. And since then, it's sold up twenty percent or so. So you it's interesting one, one of the reasons were talking about test up.

Nobody knows you know how far this rally could go based on how they're positioning themselves right now, but IT doesn't mean that there's just going to be one winner that would be tesla, uber and partnering with wao. They already have a fleet. They already have the technology from way. Mo, I think it's going to be much quicker to market across the country than anything text could do.

The last single to say is that we're talking about with video in the sort of AI trade that might be you know, taking a breather here when I think about IT tesla is obviously a great AI play, right? Because what they're doing with their self driving and their autonomy is really about cameras that are making decision based on these algorithms. Where is mao is relying on a technology called lighter, which gives all these kind of like cameras on top of the things in the question is, do these things scale? So this is my question to you about these megatron.

Okay, if we see one softly, okay, in and around that, say the invidia story and make no mistake, about IT tested as a huge buyer in xi and all his companies of invidia chips. But if this mega trend is gone, to take a breather, and let us say, if you take a look at eli lilly and we're talking about regular ory, again, this thing is giving back almost, I don't know, half its gains from its hides. Guy, recently, if you lose some of these big stories is in the market, what are some things they're going pick up the slack. You financial bank stocks in particular trade very well, but there are single percentage, the S M, P, five hundred.

Well, to be fair, they not onna, pick up all the slack. I mean, there there has been so much enthusiasm and so much Priced movement over A I just in the last couple years. They're gonna be able to pick IT all up and keep us at that level.

But you do need those cynical stocks to come in, which I think has been most of the thesis around this post election trade. You ve got financials, industrials, all the the cyclical sectors that should do well if we have a higher growth environment in twenty, twenty five and beyond. Then we originally expected the mega trend idea though.

And your question was, was free sort of if we lose some of these stories in the market, I know you meant that over a short term period, in the context of a mega trend, you're going to lose stories here and there. You're going to lose momentum over short term periods as this thing progresses and as IT matures. IT takes years, if not decades.

I mean, I we've beaten a dead horse about the internet, but the internet took decades for us to figure out how all of that profit making was going to to occur. All the different ways that I could affect different industries. And IT IT became pervasive through every industry.

So I think this is a lesson if we do have a pause or even a pullback in the mega trend story of A I. This is a lesson that again, you do don't try to just choose a winner at the front end of a theme like this and think that you're going to a ride that through the entire theme, it's going to change. It's gonna move into different industries.

I think that A, I and and this is something that Kathy wood has said on C, N, B, C. And actually on my podcast, we'll drop, sorry, shameless, less plug and but the effect that A I will have on health care, right going forward, we haven't even really seen that yet. So things will change in years to come. You have to be careful in these mega trends, not to pick one or two stocks and say that there are the one that's .

going to do IT forever. Well, I actually think your internet noodge is is the best one right here for the future of A I. How does that kind of get applied to all these different you know, it's going to be transportation.

It's going to be financials and health care. I mean, list goes on and on. I think that's the next guy part of this trade that you start and you brought up this example of walmart.

I think he was about two months ago when they released a quarter where e commerce had accelerated, I think, to the one of the highest growth rates, twenty one percent. And they were talking about how generate A I solutions that they're implementing help them get to that level of e commerce. So to me, that's a really interesting part of this.

Next there two quarters ago was walmart made a point in their margins IT up that A I was obviously helping in facebook. The other company were seemingly AI is helping them. Those are the two that I can think of. I'm sure the small company google will be .

eventually because they have you know seven properties with over a billion users. I think half of them have over two.

They clearly haven't shown IT. Yeah anyway, so those are the ones it's stick out and you're right to bring up. Be like, by the way.

training the levels we saw in the spring and it's go north is down on the year. So these two companies combined in market cap or one point three or four trillion dollars, and now lillie is only up twenty five percent in nowas.

down in the year. Well, we've pointed out, listen, L I know is the name that we've loved collectively for years before anybody heard of G, L, P, one. Obviously, that sort of rocket ship to stock higher.

But IT also created a real evaluation problem. And I think the market is sort of stiffing some of the stuff out. That's just my sense.

But you we're losing farm up for obvious reasons. I mean, I think with the new administration, a lot of people scared to what's going to happen before we get out of here. Elizabeth, a lot of feed speak Austin.

Goals be tomorrow, as you can tell by my tone of my voice, I am not a fan, um he is not particularly well equipped in my opinion, but we have leading economic indicators for october. I believe on thursday. I know that something you watch and you are always quick to point out that all economic indicators are not created equally.

no. And Austin spoke last week because not .

particularly well.

I I can't imagine that it's going to be that much different, uh, this week anyway. The L E, I is, yes, that is the acronym. Leading economic indicators come out this week, keeping in mind a component of the alias is the S M P.

So you have this this piece of IT that basically is tied to market movement. So we've obviously had quite a big run since the election. I think the L I is probably um are expected to be positive because of that.

We've also have things like durable goods orders and not something that you want to watch, particularly in this part of the economic cycle. As we continue to wonder are we're gona have more growth than we thought before. Durable goods orders are things that can be a good leading indicator of demand going forward in what companies think is going to happen in demand going forward.

So I think this is important. I don't think it's something that's onna move the market. I also don't think it's going to end up being a huge surprise. If anything, if there is a surprise that might be a surprise on the upside and confirm the bull case of you, everything's going well. A point that I made last week and that i'll continue to make unless IT stops coming true. Is that the survey data that we get now, I think, through the end of the year even is going to be affected by the optimism enthusiasm that we had post election because survey data is simply that you just ask either consumers or you ask businesses they are feeling about different things or what their plans are about different things. So now that we have more clarity on what the next administration will look like and we have expectations of policies that will go in place, I think the survey data that we get and a lot of this economic stuff is going to look positive.

We have me address friday's Price action. You know, guy, you said to me friday afternoon, monday could be an interesting day. I think we had a nazi that was down two percent.

We had a lot, lot of names that we're just kind of get in slade. We already mention image after its earnings. A lot of stuff in around that.

I mean, IT was interesting that, that was like the first real day of fear that's been put in the market. I feel like over the last month, I feel like a few weeks ago, prior to the election, there was a day like that. I was LED by the as back to the downside.

So to me, I think it's interesting to kind of think about what sort of hands are some of these tech stocks in right now as we go into a seasonally strong period, obviously, for stocks into the end of the year. And you know, I think there's going to be a lot really good opportunities of the next five weeks or so. They kind of set some theme s up into twenty, twenty five and know.

So when I look at that kind of like uber here, I like the fact that when you have something swing so far to the other side in such a short period of time, usually IT kind of finds its way back an illiana novo. I might be more inclined to look at a novo that's down now down in the year, not that i'm buying weakness, but I say to myself, this has the ability to kind of reemerge from a you know grow standpoint, but also the valuation. Now guy mentioned the lilly that still has some room to the downside.

So nova looks kind of interesting to me. The bank stocks, okay. So if we have all these different groups that we're talking about from a potential regulation environment as we head into a new administration, well, those stocks were trading well when rates were coming down.

They're trading well when rates have coming back up. I think that's something that you could see a rotation out of. And I just want to make one last point.

As we talked about, who are some of the beneficiaries of generated AI? Well, here's one that I think is under the radar. Look at this duo lingo.

It's up forty percent of the year. It's up a lot more from its lows. And the reason bring this up today. As I was seeing both my college daughters over the weekend, both of them were keeping streets on duo lingo, learning a language that they don't even take in college.

So it's turned into this sort of social game of fied sort of thing, and they're using A I to basically do this process. As IT relates to you say the thing in italian that guide ty knows, you say italian is listening to you and it's correcting you and it's game of fine. The thing that's pretty cool and I know guys .

going to say sounds like my grandmother, she's D O.

But what i'm saying is this is kind of a cool story. This is a really interesting application technology. And I think you're to see this sort of thing here in there and you identifying some of these opportunities could be very interesting. So that's this my bit on some of those names, but I quickly on what we saw in the nas dc. And we're seeing a bounce today in sem.

We're seeing a bounce overall, I think limps to what you could see going for. It's a window. It's sort like August fifth was sort of that snap shot of what could happen.

Know again, with yields moving the way they are, I think there's some as lizy award concerns around what IT potentially mean to this whole technology trade, which is obviously deep rooted in the aspects. So I think friday was a bit of a cautionary tale. Now you're right.

This morning, at ten thirty in the morning, we're getting a bit of a bus. We'll see how long at last. And this is as important weeks I think we're going to have for the rest of the year then.

And yeah, no doubt, I mean, this what is the one thing before we get out to hear that you're most focused on this week? We talked about fed steak. We talked about some changing momentum. We talked about regulatory. We have in video here what what's one thing that you're most key on?

I mean, I I visit don't do single stocks, but you have to key on the video this week because IT does still have so much power in sentiment in the market. I don't have a projection about what's gonna en. I don't have a bier cell recommendation, but IT does feed into what the rest of the market thinks about the overall item.

We for fun, when I was a kid, we were not doing duo lingo. We were beaten the shit out of each other. And in basketball or something like that, it's just amazing how things changed. Well, I mean, kids for fun .

have stress. I like five years ago, my kids were keeping streets on snap chat, right? Which seemed like something that wasn't particularly useful other than just kind of staying in touch with like these real they are funny facial things with like all these like little you know bells and whistles behind him, a filter and then you to .

use the place I know we to go when people weren't on vacation, or they have people that would want .

to keep their street. correct? correct. Now the kids on vacation learning how to speak that .

language in the ety. And we are by no.

we do, right? Guidi, dana, and we're down here at the cm, E, G, fl, c. Chairman and CEO of cm is going to be on the pad later this afternoon to joie.

Danny moses is gonna with us. This you and guy are going to be helming the market call on wednesday. Maybe going to have a new piece out there. Maybe the title be .

something that really like .

the important part is your Cathy wood pod dropping because I can't wave scheduled .

to drop on friday.

Guys is going to go find that in his favorite podcast store is going to follow IT subscribe shirt. That's how people find IT. Thanks so much this for being here. We will see you again on wednesday.

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