A Critical Week for Stocks 11/4/24
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What's next for amErica the morning after breaking election results critical insight from campaign insiders, how voters are thinking about the economy SAT box, wednesday is special time. Five A M R C N, B C. I'm sa walter.

and you're listening to C N B C S halftime report, the podcast the most profitable hour of the trading day. We record this live weekdays at twelve eastern. Listen in.

K, thank you. Welcome to the halftime report of Scott walter front center this hour, the critical week for stocks, tomorrows election, a fed decision looming ing. I'll discuss and debate the road ahead with the investment committee joining me for the hour today.

Josh Brown, sankoh jot, nova IoT C T, we will go the markets. Carl just told you about the slide in the dw the day you can see IT down about one percent, S M P S down about a third, and the assets under about the same amount of pressure. Today, we layed IT all out there really the election, the fed decision text, still digesting um the earnings and and all that.

So i've got a lot of stuff to get you. I've got some moves that are important between joe tf. Josh has a new buy that will get you in just a second bite. I generally want to get everybody y's thoughts shine. I'm going to start with you as we do head into this critical week, just tell me what's on your mind and how you're thinking about what may transpire this week as as you think about investing here in the weeks ahead.

Well, everybody's talking about how do we position for the election, Scott. And so whether it's a trump portfolio or Harris portfolio, I think that we've seen over the course of this weekend and we've seen the um perhaps the the pitfalls, if you will, of trying to position ahead of of either one of those two outcomes. They're still a lot at play here where we've got the senate and the house both up for grabs.

You ve obviously got the White house up for grabs. And it's really interesting because we've talked about this over the last few weeks and that the market seems to be positioning for that, that triumph trade, if you will, and and perhaps even to a lesser extent of potential republican sweep. But I think really what you ve seen is that you've seen this um sort a move back to some of the areas that have done well.

So you've seen gold stronger a quarter today. You've seen large cap growth. You see a couple of sectors do well, financials considered directionally bitcoin, for instance.

So but you're not what you're not saying. You're not seeing the continuation from that third quarter yet. You're small cap value.

You're not seeing that participate. We're seeing china off. So I think that there is a very much a bit of a risk off sentiment that's going into this election. Not surprising, Scott, because Frankly, we don't really know what's going to happen.

So if we look on the flip side of this, the feds really important this week, we seen yields continue to rise that could potentially damp in some and damped in the broadening trade or some create some concerns for the broadening trade. But the last thing is got yids are gone to continue to be volunteer. And I think as we start to look forward to twenty, twenty five, thinking a lot about what the bond market is telling us is going to be important, particularly as we think about the fed for november and december ah.

we'll learn, I guess, soon enough. If the market got ahead of itself self on some certain trades, that's going to be something that's going to be interesting to watch as well. Let's just get to the move that I wanted to get to, josh.

Its for you, i'd find this really interesting, Frankly, you bought read IT. You want to tell us why you did that? I mean the stock surge after earnings last week, they did turn their first ever profit. But take me behind this trade. Why do why do you do this?

So I definitely do not buy the stock cheap. And my ultimate goal is to build a position here. And I think i'll be able to do so for the most part, closer to one hundred.

So I took a very small position in the stock, and I am counting on there being enough volatility where i'll be able to get bigger over time. But reddit just reported something last week that was absolutely explosive, and I don't think enough people in the market fully appreciate what's happening here with this company. IT was only their third quarter as a publicly traded company is not in the S.

M. P. Five hundred. IT was a company that was expected to lose seven million dollars. They ended up are earning like thirty million, a surprise profit.

And a lot about the situation reminds me of facebook in late twenty twelve, twenty, twenty thirteen, facebook had a terrible IPO for people I don't remember. IT came public at like forty two, fell to fifteen within within two quarters of having come public. And there was a huge drop in question about whether or not they would be able to make the trans transition from desktop to mobile.

IT sounds hilarious now it's like the biggest mobile open on earth, but like that was a serious concern with redit. Basically, they came out of the gates. That was a little bit of a monkey time to called public.

There were one of the first company out in the reopen of ipos. They try to give a whole bunch of stock to their users, which I found adorable and people just really didn't pay much attention. IT was worth eleven billion dollars.

IT was just not on people's rate. Or when you look at what they are saying to wall street about the state of their business now, you see those parallels. Active user growth year over year was forty seven percent.

Find me a publicly traded company that can say anything even close to that. Forty percent of the traffic is original ating from google. When you search for almost anything now in google, you're getting wet IT as a top one, two or three result.

In addition, they just made the change to how they consider their users the way that we saw facebook do back in the day. They now are reporting logged in users and non locked in users who are hitting the site from a third party. And when you add those two metrics together, it's ninety six million d use daily advertisers that the only number that matters in advertising and they are absolutely on fire.

So I think there's two ways to make money here. Number one, it's an advertising platform that is benefiting from the chaos of twitter or x or whatever we call IT. People are leaving there and going to read IT to be in touch with their interests and other people who are like minded, and they don't want to see politics all day long.

Number two, there's a data play. They have a deal with OpenAI. They have a deal with google. There will be more deals to come. None of these are exclusive where they are selling their data to the LLM that want to train their models using twenty years of user generated content from all over the world.

Last thing, because of AI, they are now able to translate all of this huge history of posts that they have from english to languages all over the world, literally overnight, which opens up an internet national audience. That that could seem reit doubling and trigger its revenue once the ad revenue kicks in from that effort. So i'm very interested to stay in the name and learn more and add to the position as I go. I don't think I bought a cheap today, but that's not the point. I think i've established a foot hold in a company that is on the verge of becoming a much bigger platform over the next three to five years.

Okay, good stuff. I want to the way early on here, thanks for revealing that. So you know, joe, your your rebaLance moves, we're going we're going to get you in a moment.

In some respects, that sort of speaks to the way that the market is still digesting certain learning reports that came out. But we embark on what is a critically important we given the events that lie ahead. I've got the fixed north of twenty two.

I've got the duck down three eighty five. I've got the nice deck down about one half of one percent. What's on your mind this week?

Put your political perspective to decide what's going on today is a lot of notes, but it's also a little bit of pricing out the trump reflation trade if you're looking to do anything today, said the other day by the V X X by some volatility and hope that, that actually is a losing trade because the rescue portfolio workout. Let's not forget the fact that there is a very important federal reserve meeting on wednesday. But I think this is a time for investors to be very conservative, be very judicious, allow things to play out. We'll be plenty of time on the other side to make portfolio locations if you feel that you need to as a result of whatever the configuration of .

governments going to be. Let's do these major moves that you have from the rebaLance because they're significant. You sold alphabet and apple ah now you're more underway the tech sector. Uh you're twenty two point four percent versus thirty two percent for the s and p five hundred place into the broader story coming out of what was a pivotal week for that space.

Take me through this. What's interesting about that is, yes, we are now significantly under way twenty two technology. But if you look at our industry groups, software is our leading industry.

At about eleven percent semis are are coming in a third. As IT relates to apple, the chAllenge for apple in what the rules are reflecting is on the quality side, not the momentum side. Momentum m fine.

And apple. Everyone who could look at a chart can see that. But the chAllenge for quality came in the decline in revenue growth and the consistent declines in revenue growth.

You look at this company over the last two years, revenue growth is basically flat. You pull back the lens over the last three years, europe no single digits on IT. So that's the reason you step to the sidelines with apple.

Look, we've stepped in. We've stepped out of the apple in the past. Sometimes that works, sometimes IT does.

In work, you allow other holdings within the portfolio to pick up. In fact, performance if what you did an apple didn't work. But but i'm fine with what we did here in apple.

I see IT. I understand what the rules are affecting is that relates to alphabet. alphabet. Keep in mind that because of quality control, we knew what the rebaLance was going to be monday to twenty eight of four P M. So if we would have been able to incorporate alphabet earnings and the Price action subsequent to that are not necessarily sure that we will be sitting here talking about alphabet moving to the sideline that the I know.

but that's why I most interested in that one out of the two. Because the earnings report may very well have reset the trajectory of the stock。 It's the dynamic in which you have to live by as the manager of your etf. But it's also of the peril, if you will, have to play by those rules ahead of what was a critical week for earnings in that space.

But I you know I love the fact of its rules space because you strip out the human emotion. And this was so many there's been so many exhibits of how that has worked over the last four years since we invented. So I mean, I look at IT from this perspective.

If I had discretion over IT, I look at out, look at alhamid said to myself, not so sure we would made that move. But the rules are the rules and you have to affect the rules. And it's about the facts.

It's not about the feelings. So what you're underwaiters the .

mega cap names too, right? I mean, the ones I really like and there are google as one of our favorites. So and I think they showed they were last week that they can execute, nurture, do well.

But yeah, definitely underway. IT is hard for us for diversification is reduce aries to have stocks with great than than five percent positions. So again, it's more rules based on that because you're just taking the risk kind of the portfolio not to say don't like those companies are really do, but the position sizes is less .

than what the S M P is. Yeah just what do you make of that move? Um look, I mean, it's rules based. IT is what IT is, but none of less is out of the jot. And we have a conversation about whether you think this is reset now after earnings for a stock that was under performer out of the mega cap space.

Yeah, so I solved some google before the earnings. The earnings were not as bad as feared. The stocks Spiked up.

It's given all of the back now and then. So it's actually lower than where IT was the day before they reported. So there's horrible momentum here.

The R S. I is now fAllen to about fifty four and dropping, and google is twelve percent of its fifty two week s. So it's not a negative momentum, is a non momentum situation.

And so if you think about IT in the context of hour list of the best ops in the market, it's no longer one of them. I think the google, apple, there's a lot of just fatigue with these names. So in video is doing the own thing right now. Netflix is doing the own thing.

But the rest of these names, microsoft, you look at the reaction, apple, 那 just like people are like， alright, what are you going to tell me next? And apples expecting twelve percent growth next year, which sounds amazing until you consider it's trading more expensive than its medium three year, five year and ten year periods. It's a twenty seven, eight and all, by the way, the greatest investor in the history of the world just jump two thirds of mistake on the market in the last three quarters. So it's a tough situation. So i'm not adding to either these names, and I think there's just Better places to be focused.

You know, sorata market gave apple. Since we've go back to that one, you can pull out that chart that we had. Again, I think IT was a year to date where you can see the ramp up from the wwdc event that we brought cast life from in the the late spring.

There you can see the rap. I mean, so apple announces that they're getting into the A I game, right? Everybody was waiting for that. And now maybe it's taking an extra minute or two to actually come to fruition. Maybe the upgrade cycle is gonna be more of a rolling event rather than a mass for a new phone.

I wonder to what degree is the stock at risk of retracing any of that move? Uh, as a result of what has been thus far, I think fair to say a lack luster. Um deb.

completely agree. And I think what the apple bulls who would say is you are having a ruling upright cycle. You will get to Christmas where people will go to the sixteen and then where the services go from there. And that's gonna the key. What upgraded services are people going to be using with the upgraded phones because that will drive margin, might not drive huge revenue, but IT will drive cash low in margin, which will then allow apple to stay at these elevated levels because people are actually transition. That doesn't happen and that happen slower than I think you do get that .

pull back Price target goes that two seventy five the day from three hundred reduced at loop even though they do relate that stock. Oh, by but you can see it's at two twenty .

and change judge brings up an interesting points about the retraction and alphabet. And if you look at the six of the seven mag seven that have reported so far, there hasn't been to buy the deep mentality in meta, apple or microsoft. They reported earnings.

They came out lower and they're continuing to trend lower. You're not seeing aggressive buying supporting those stocks. And now you have alphabet, which is rolling over below where IT was when IT reported. Tesla has similar behavior. It's not where IT was when IT reported, but it's certainly losing a lot of Price.

I think about that. There were two things going against IT. One was what earnings going to be and they pass the test. The second one is regulatory in the uncertain deal. What's going happen yeah in overtime is still an overhang. And and given overhang tomorrow, you're probably not going to people step into IT right now just to see what why should I get?

No agree with that, but I think it's important. What's the reaction you always want to do, what the reaction earnings .

and we heard all about.

well, it's going to be about the deep mentality for a lot of these mega cabinets.

In fact, IT hasn't been well, yeah, this is the Operated word. And then there's, by the way, josh burger cutting its apple state further by nearly twenty five percent in the third quarter, their cash ward reaches a record high. Their stake is down sixty seven point two percent from the end of two three last year.

I'm wondering what you make of this continuing cell down. And we can have to talk about bank of amErica because that's its own story, and we have talked about that. But as a relates to apple, it's just a lightning up by berkshire, just about anything that was large.

So I had my research team take a look at vertues cash pile as a percentage of its market cap. And IT is now at the third highest level, going back to one thousand nine hundred and ninety six. There are about thirty three percent.

In june of twenty twenty, I guess, after they liquidated all the airline stakes, they were at thirty four percent. And the highest level of cash road of the market capital ve ever had was june of two thousand five. They were at thirty seven percent.

So even if you Normalized that three hundred twenty five billion in terms of like the overall capitalization of broken, it's still pretty done near a record. My sense is when you sell something this fast or when burger sell selling this fast, historically, we've gone all away. So I have no particular insight and to whether or not this will be the case.

But if they take the apple position down to zero at another sixty nine billion, where to stop? We'll be at four hundred billion in cash if it's not replaced with some other purchase. Important to note last quarter, not only where they net selling vade buy back a single share of stock either, which I think was uh surprising the people.

So um I guess they are in the t bill and chill and they look at evaluation and apple and how much they've made from IT and they made the decision. Now is the time. I think it's notable though um because that was a very big buyer of the stock for a very long period of time.

Yeah, a really good point you raise. Um if a very big buyer becomes a very big seller up, watch the broader impact. I think it's relevant for whatever the reasons are. Who cares what the reasons are?

absolutely.

I think that changes the way to stop trades, quite Frankly.

IT change IT changes the way the stocks trades. You also don't have that understanding that there's that potential buying underneath the market.

If I see the buyback, you got that is the buyback versus about that.

right? It's like the options, right? When you exercise where is more right?

IT absolutely matters. And I think for people you know suggest that does not .

so shine um a take a view on the the mega cap trade now that we we've sort of dissected the the ones that have mattered the most. I've got a target race today, amazon over Morgan. I've got da David in preferring meta and amazon as the big data center build out winners in total. Now how do you view this trade moving forward?

Both scot, you know we've been um a little bit concerned about and feeling that these valuations were a bit vulnerable. I think it's really come there. There's and I think joe made this point before.

These are all very different companies with very different stories. And so if you are looking at this in my longer term perspective, from apples perspective, sixteen and the seventeen, there will be developers that are focused on creating Better experience for the AI tool. So that will come the google overhang.

I think if you look at amazon, you look at you know the potential for AWS to continue to grow. It's the dragging node. And so that's always going to be able to support the rest of their business.

But on the consumer side, that continues to and improving profitability business for amazon and and certainly something that you I think what's overlook for amazon in particular, Scott, that is essentially a logistics company now, right? They do more shipments on annual basis than U. P.

S. And so I think just each of these companies, you know, when you try to trade them as a block and you try to find that, that safety, the chAllenge is, is that there are becoming more capital. There's more fix, asset capital expands, uh, are happening here.

And so you have to start to value them differently. And I think at this point, you know there are other areas to go to. You look at the the point, it's a financial. So I think investors are looking around in finding some relative opportunity compared with these docks. I don't think that there is not going to be a by the dip mentality as we get through the end of the year just given the performance chasing that's gona go on. But I think in the short term, these are these are companies that have differentiated stories, and I think investors are starting to look at them on a company by company basis and determining if the Price is worth IT. Um given the uncertainty ty that we have over the six to .

nine nine months and pulling up shares of pantier, what are which investors have not have had to worry about by the deep mentality model the socks up one hundred and forty percent. You're a date. Why do I bring that up? Because they do report their earnings after the bill today and the joke still loans that speak about a stock that has at least maintained its in your case.

quality and moment your has and it's been a phenomenal holding arguably of our top holdings along with at of the expectations tonight for the startings of point, as I don't think i'm surprising anyone, they are very high. I mean, they really need to come out and exceeded an incredibly high bar. You're talking about a company that's now included in the S M.

P. Five hundred of software company that trades trades rather nearly a hundred times relative to wear oracles trading relative to wear microsoft is trading. The analyst community doesn't believe the move in palen teer.

If you go to the twelve months Price target, the twelve month Price target is twenty eight dollars. Twenty eight dollars were talking greater than thirty percent below where the current Prices today. So what do we need to hear from tonight? Fifty percent of the business is related to government.

We know that they have an AI platform, and then they are remarkably well positioned without A I platform to realize profitability. Now the enterprise segment of the business is growing dramatically. What the bulls wanted hear tonight is that the street is underestimate the effect near term of the A I platform to realize revenue growth and that this is something that is going to be experienced in current quarters, not futures quarters, that they could do that. The trajectory remains in place higher.

I forgot about one important piece of news as a relates to one of the biggest stocks in the market and at times the biggest because it's fluctuated with apple back and forth. Of course, in video. Sera and video is going into the doubt.

We learn that news the other day, uh, and that's going to be friday before the opening bell. Just give me a thought on that. If we talk about the influence of a selling, then influencing how the stock trades as a relates to apple, what does this mean for how the stock trades as a relates to the .

kid keeps his momentum, its relevance, it's taking and til out, replacing with video and basically saying, hey, this is a company that's going to be there for a long time now. You're gonna get that positive television that if he came into an S. M. P, because, because there are not that many people that buy the dark index, but the relevance of this to show that, hey, these products going to be here for a while is really good for the stop.

right? Speaking of semyon, last, last job. Before we go to break N, X, P, I.

That's after the close tonight. You ve sold that as well in your quarterly rebaLance. Tell me why?

And they were going to break bx, P, I lam research cases, sops or long time holdings for us. We're seeing a breakdown in some of the AI halo in video is absolutely performing well. Quality momentum, you see the Price continuing to move higher and higher. But let's remember right now, if you look at the socks, if you look at the soh, you're talking about Price that's chAllenging the two hundred day moving in average. So you don't see broad positive participation that you saw in the second quarter for the AI halo and the a jacket names OK.

So let's let's with the break in will come back, and then we have a double break out alert. Because josh is identified two stocks on his radar, he thinks are about to rip hire. He's going to tell what they are and will do IT next.

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What's next for amErica the morning after breaking election results critical insight from campaign insiders how voters thinking about the swag box wednesday special time by A M R C N B C.

I look back, told you josh was flagging two stocks he thinks are about to break out. Number one is delta airlines tell .

us more well, so delta has broken out and I think the break out is for real when you so i'm not in not in this name um but when you look at what at bastion has say when they reported in in late october, IT really gives you an idea that this thing is ready for a new range.

If you go back on a five year chart, which I think we're showing you now of delta, what you can see is that the sixty dollar level was overhead resistance for this stock right before the pandemics started. And then, of course, like everything changed, but this stock now, four years later, chAllenging that sixty hour level once again, but being in the best fundamental shape that this airline maybe has ever been in billions in free cash flow, uh, huge growth and just absolutely firing on all selling there. So I think it's onna punch through those old highs from back in, I guess, january, february twenty twenty prior to the pandemic and establish new trading range. I'm not currently in that one, but it's on my radar, maria reported this morning.

Okay, hang ga. once. Second, first marry at the other one. As you just said, I just want to get some thoughts on delta before we go to marry out. You own delta. I do everybody knows marry out now, but that's fine there. You on that and is a big .

position for you.

IT is and I will tell you, a bastion is team are one .

of them the motor go. And I mean.

I know it's just start to stop, but I can go on on about delta because this is one of my favorite talks. And and if you look at what management has done since covered, if you think about the focus has been on the business traveller s, on the consumer traveling the average. And they've taken that with their max partnership and brought on loyalty, premiering.

They focused on service. If you ve just even done delta one and you've into their new louds, the other part that I think josh hit on eighties in two years, they will have no debt, but they're spending money back into their business, into their service. And when you look at their competitors, it's jet blue, is frontier and spirit.

They are just so far above all of them that this eight times learnings and maybe they never get that multiple over ten. But the earnings growth and the cash low is why you want to be in this company. And a phenomenal ageing.

too. We talked about IT in the break, their benefit from some of the troubles, that jet blue and some of the other party lines, the consumers, they are gaining the market. Chapt, you did that.

I was a made delta and united airlines, two airlines. I was amazed at how strong the momentum is in both of these names, one hundred and twenty five names in the etf. This is the top ten momentum holding.

So speaking towards the january highs, and I think sixty two, forty pulled back the lens allow bit further, there's a role time high july of twenty thousand and sixty three, forty three. The companies got the revenue growth. It's got the great baLance sheet. United airlines as well, very strong revenue growth, around seven percent for an airline that looks really good. And both of these companies look great on charts.

You used to own, i'm going to get josh's explanation in a minute, but you used to own marriage personally, if not in E.

T, V. Owned IT in quite some time, underperformed slightly, fell off the the radar, if you would, from from a momentum perspective, IT looks like IT found its bottom in August. Let josh speak to that.

Well, IT cut its guidance. Josh, right? The earnings missed. What do you see that suggests it's poys to break out?

Look at the reaction. The stock is like almost unch. What's going on here? This is a stock that was fifty two week.

I as recently as october twenty first had its earnings this morning. I wrote a Better over over the weekend and didn't know what the earnings would be. But I was curious to see what the response would they are.

This thing could go Green for all we know. So what's happening here is that contrary to all the people who sit, look at things like isms and pm s. And all the other stuff from the one thousand nine hundred and seventies that no longer predicts anything.

If you just walk outside your house and not to a really novel approach, if you just talk to people and look at business travel and consumer travel through the lens of people and not manufacturing statistics, what you see is just an absolute branza for firms like mariot that have a tear available for every level of of income, whether which is the highest. And look in vacation, business travel, uh, low, low income, you name IT marriage is where they need to be. So I think the chart reflects that you have the fifty day, two hundred day moving average cross over, which you know I like um I don't believe in it's superstitiously.

Uh, I just think it's it's meaningful in terms of like what's the most recent trend. So I think the stock is setting up here. I do want to see IT make a new high before I would pull the trigger.

So that's about two sixty. The stock is two fifty six. So we going to keep in our on this one, along with delta.

Okay, good stuff to silvana. Now who has the headlines force today? Hi.

silvana has got good afternoon. Russia is suspected of flooding to put inventory devices on plants headed to the U. S. What's your security officials tell the all state journal, they believe the devices that ignited at two european and dh facilities and part of a cover russian Operation to put these insAnitary devices on cargo or passenger planes. The kremlin calls the accusations on substantiated claims from the media.

A string of tornado devastated oklahoma over the weekend, leaving at least eleven people injured and about one hundred homes destroyed, along with the number of power outages. According to the oklahoma city fire department. The national weather service forecasts the same storm system could bring more tornado s across the eastern portion of the state today.

And lawyers for rapper shanti comes have asked for a gag order on potential witnesses and their tourneys in his criminal case. In a letter to the judge overseeing the case, the attorney said that statements from certain people were undermining comes right to a fair trial. Scott.

so vanna, thank you. And it's so vana a now coming up the rise of the petra D T F bop soni looking at growing demand for two stock funds in today's etf edge this next.

What's next for amErica the morning after breaking election results critical insight from campaign insiders how voters are thinking about the economy swap box wednesday is special time five A M R C N B C.

I walk back boff. Soni has today's etf. H, I B. I.

Good to see you. You heard of single stocky etf. Are you ready for two stock etf with Michael vento? He's the founder and cio title.

One of the leading White label et providers might be recently filed for eight, two stocky. Tf, these are patrice go long, one short, the other have one to have long. And video short.

Intel, you've got another long tesla short for, you've got a third long amazon short. Maces, tell us how these work and when might we see them? We're not yet trading when we might we see them.

right? So these are etf that we filed for a title title. We help people launched and grow etps. They should come out probably about two or three months. And you've got a right all we can really say what's in the perspectives and right now says we're going to be long something like in video short intel, which is an amazing trade considering what's happening within video.

right? So but give us a more detail like this is actively managed, right? So how long like intel might to be or how long in video might to be, in short, what the turns.

So the perspectives has ranges. What IT actually will be in the end has to go through the process of working with the c. That's we do for our clients as we shuffle IT through the process and get people to wear.

they will need to be at the important thing here is the fact that, you know, have these paratroops is a unique idea of though we have single stock etf, we don't have these portrait etf though. This is a new innovation.

right? Yeah, yeah. I mean, that's what we do a title, right? We work with people to find ways to bring new things to the market.

There's been an explosion in etf issue. We keep talking about IT one trillion dollars and inflows, ten trying dollars in assets under management. We have close to five hundred new etf this year.

And you're in the center of creating a lot of bees. You had a very interesting one you just brought public here that trading down long bitcoin and long gold. What's the waiting here and and why is there a need for this?

yes. So this is a stack fund. So instead of putting one dollar in, getting fifty cents ago and fifty cents of a bitcoin, you're getting a hundred, one hundred percent of each.

So it's essentially leverage with two different assets. So you don't have the decay of the traditional leverage. This is for anybody who's scared to the dollar, the debasement. You're giving them hard money in the form of bitcoin and gold. So one dollar gets you two dollars.

Is that fifty percent bitcoin, fifty percent gold? What's the breakdown? And and to .

give you fifty percent times to it's it's half of each, but you're getting two dollars of exposure for one.

And again, you can you change that. This is actively manage.

So the perspectives tells us to stay as close as possible to that one hundred percent of each on any given day that we have to adjust IT, right? This is using futures and very southern tps to structure IT anything. What leverage is active in today's world?

We're right on the precipice of an enormous presidential election here. Any thoughts on how the outcome might affect etf or etf in twenty five?

I think that IT might slow down some of the gridlock, right? One thing that's been great for you, you ask, why are we growing so much? We've had good regulation.

So we had the tf rule that we had the derivatives rule. IT opened the door to all kinds of new things. We also support cruise and Nancy.

These are etps that track the political, the congress people when they pick a stock. It's amazing how those are doing well in this kind of environment. All sorts of products .

out there that are innovative. We going to have a lot more coming up on etf innovation on etf h that's one one fifty pmr time. I guess we'll be Chris hms, said head of e muri asset security, taught rosen blood is they had a research to verify that T T F edge that C N B C D com got back to you.

I can. Bob preciate you. Thank you, bob. Design to coming up cause the day we do have a big Price target move for a name that joe just added in his rebaLance sd wes bit last week, we'll talk about IT next.

OK top call the day sales force today because the Price start get got bumped to four hundred from three hundred. That's IT ever core I S I outperform thirty six percent higher. Um you bought IT last week, right so you love the name. So I mean, three hundred was going to be output in about a minute, so they go to four hundreds. That sound reasonable to IT.

Does I mean, again, that the valuations gone from twenty seven times twenty one on average. So if you think about what growth they have in terms of the data they have on the fortune five hundred companies and the software usage that's gonna forward, I think it's an incredible business that is just undervalue at this point.

alright. So you just added IT. That's what I eluded .

to in the teeth. Yes, all time high back and march IT, three, eighteen. The company has done a series of acquisitions that are clearly now beneficial to the bottom line, whether it's a real force, al source, agent source rather is doing really well .

for them to introduced that. The source, right? I think I was like, the first is the third time the charm page.

new soft, a source sort? O, K, I screw that one up. I did. But the AI platform is, is really for this company the foundation of where the growth is as we move forward. And a lot of people said, okay, they're going to get chAllenged by other A I platforms .

that the code, the only one that me.

In my life.

copy good space force, dream force.

new soft, you get any others right.

Trade desk about that one that was added to the U. S. One list at bank of america, josh Price target one thirty five attractive top line growth of high marges and compelling unit economics.

Yeah, i've been in this day for a minute. They have a really unique value proposition for advertisers that want to reach people who are watching streaming TV. At the same time, when you listen to the streamers from netflix on down, all of them now have announced an ad tear, are focusing on their ad here as the source of future growth.

The way you do that right is to bring in the trade desk and have then analyzed the viewership in real time and sell ads against what you have. And they continue, I think, to serve a really important function in the streaming revolution. So i'm stopping the name happy about how was done. And i'm taking with IT.

right? Charter got taken to a buy at b of a Price target to four fifty results Better than forecasts. They suggest there's a stock, three.

seventy two. Yeah, you have a couple of things that are going for charger now. So the growth of subs is actually increasing again.

So that's a really good positive. The second one, which the street hated was their capex s, and that is now going to be cut back. So I think you're going to see increasing cash low sub losses decrease more and basically more .

cash for growth roles. Um arkles effusive in their praise of and joe Price target fifty books best in class, leading market positioning, attractive business model, effective capital allocation, consistency of results, premium multiple think .

the momentum was significantly dented by last week's earning before yet they initiated neutral that the hurricane e chAllenge margins pest control company that's clearly right now as IT relates the momentum sideways okay.

up next and told he's going to join us with this miss. They work.

Kay, what's back? Senior markets competitive? Macca toley join just now with his mid day word, obviously a big few days ahead of the election and then, you know, a fed meeting that could formally, I use the word formally, reset expectations on what lies ahead. In terms of rate cut policy.

Yeah could got I mean, obviously, where market is close to one hundred percent, getting a quarter point now incrementally, as we get closer to whatever one's estimated of neutral rates on the economy hangs in their inflation flat lines, you have to least believe that maybe there's going to be some breaking of the outlook, think the market would be OK with trying to replace that on the fly given we're coming from a pretty strong position.

I mean, what IT comes to the the S M P. Five hundred has been just of retreating toward a neutral spot, you know getting a little bit more in baLance, ed yields coming down a little bit after a huge surge. M P, S, write at fifty day average here. So it's kind of you know in position to react almost symmachus ics. Either way, whatever happens in the next few days here.

So what do you make of the apple berk share news? You know the suggestion, josh mate, earlier that as they continue to sell down their position and maybe there's the idea that they would continue to do so, it's going to impact potentially the trajectory or at least how the stock trades because IT removes that to some degree, a bit of the flooring that's that's been there were along with the buyback.

Yeah, there was always a little bit of the halo effect in this idea that this rocks solid position that was held by burger for years was not going to be part of the the supply. And therefore, when apple buys backyard, never body else, that creates a Better supply demand baLance. I guess that's true.

The other piece of IT, though you may be countered of this, is every share that um burger cells IT can't be sold again. So if there's an overhang out there of this bag holder, it's it's diminishing. I think it's mostly about what we already know, which is apple is at least fully valued this way a more of A A high value stock than IT was when when burger bought IT initially.

And I just became such an outsize position and just continuing process of reducing a lot of those lobster bets within the portfolio. I'm not sure you want to conclude much more than that. Yeah, good stuff.

Seeing a couple hours on closing ballots might send tel, it'll you find this next.

By a reminder, for tomorrow, c abc live all night on election night, i'll have the results as they come in reaction from the biggest names in business and IT all starts seven oclock key turn from right earth in new york stock exchange. Looking forward to that, i'll have life coverage in the overnight hours with more results, asian and european markets as well and squad s going to pick up earlier than Normal five A M eastern time as well.

I hope you'll join me a couple hours from now on closing. Bell, adam Parker, Christinia, hoper off the modern, of course, the dinner valuation, Christine, as well. Less you find a trade. Shane, what you have.

utilities. We need a lot of power. Scott.

yes, we do shine. Thank you. J, B.

keeping on starbucks.

I think it's going to make another one one hundred no position currently.

okay. Thank you for that.

Three sixty three point. You know a lot of copper for all the energy uses.

we can have a lot to talk about. Energy are duty adding .

to shine its utility trade. ConStellation energy pulling back today.

It's an opportunity to in good stuff. I will see you on the closing down a couple of exchanges you've been listening to c, nbc's halftime report, the podcast. You can always catch us live weekdays at twelve turn only on C, N, B, C.

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