Stocks Jump As America Votes… And Cathie Wood Weighs in on Tech 11/5/24
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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 workbox wednesday is special time. Five A M R C N B C life from .

an asian markets. I've in the heart of new york cities times where this is fast money here, what's on tap tonight, markets running in this election day as we started to get early reads from the holes. But where do we go in the days and the weeks to come? We sit down with the ark invest co.

Kathy would to find out how he thinks the results will impact highgrove, th investment and super micro focus the same my company posting its first orange support since it's LED lead auditor quotes to try to say and what to make of the numbers and how to trade that sector. Plus pantier pops to record high win, investors lose their bed on the icing the stock and boling's machine is approve the deal to end a seven week long strike. The trades on all of those moves are coming up.

I am important reagon in this thing. Former coming to life from C O B at the as deck on the destiny you have tims's more cared fireman dan Nathan and guy adami. And we start with some solid market gains.

This election day, all three indexes up a percent more. The sp MaaS like less than two percent from record highs, every sector in the S P. Up today, with consumer discretion and industrials leading the gains, and mag seven names also higher today in video, overtaking apple to become the biggest publicly traded company for the first time since the june.

So is today's action the market? Are we breathing a side of relief that we will soon be able to put this election uncertainty behind us? Tim, what do you think? What is the market telling us? How are you feeling the people you're talking to? Where are we right now?

I think the vict tells you a story of a market where there's a little less volatility but is still trade twenty. And I think the market is also has some sense that um there could be a continue here that maybe is unexpected. So I am not sure what the outcomes going to be.

Member books, we don't predict that stuff here. I just think we're going to get back to an earning season where we actually had pretty solid numbers out of, say, mega cap tech companies where we also heard sectors like industrial sector is like banks. We've en financial outperform.

I think that the set up in november is that this is the best year month of the year for stocks. The backdrop when you had an I S. M services, we all know the bigger part of the U.

S. economy. That's the and two years came out today. The labor market looks fine, the fed's gona go and they probably going to cut twenty five basis points. The market without elections should be going higher.

Uh, even though we're the up almost four teen percent off of the country day low on that faithful August with when we all thought that the world was troubling. What we learned since then and now is one the job markets not falling apart. The U.

S. Economy is is probably a bb train growth. And the fed, excuse me, the fed is your friend. That's where I choose to open because I I think no matter what happens in terms of the polls between now and when we actually know, and that's part of the unknown for markets, is I think markets will get back to the reality of where we are with this economy right now. And I think it's a pretty good backdrop for socks.

That is an interesting point, careme. Whoever in here is the White house does take over a pretty good economy. Obviously, we're talking about many stocks near record highs, market broadly performing pretty well. I mean, doesn't matter who wins the White house for markets.

I think IT matters. If there's a sweep, okay, then I think we would see a Mandate from where one side or another. And so that can lead to very different markets. But I think who knows how it's going to come out. And I think the likelihood of a sweep, I don't think that's the most likely, but I think that would be even if actually it's not a sweeter, just extremely close IT may be hard to get anything done. And I think for the markets, that may be a very good case scenario.

Yeah, I believe that this was happening. Link was saying today that sort of the markets almost want to have the split congress.

yeah. I mean, again, I think there's party two likely outcomes. One that Harris wins and you have a split government and then another that you have a republican sweep. If if trump wins, then they take the senate and they keep the house. And I think that that's kind of contrary.

There was some of the things that people are saying why the market rally the way I did, you know, we heard trump trade, trump trades, you know, all that stuff for a long time. I don't think there's really any evidence that the stock market trades Better than he does under a republican president. As IT does a democratic president.

I can go back just in the last twenty five years, some of the worst market periods were under republican presidents. And at the end of the day, I think today's rally speaks to more what tim is talking about, that the economy is, know, we have a two point eight percent GDP. We have unemployment at four point one percent.

That's still at fifty year lows, right? And we have inflation that is down from nine percent to below three percent. Now i'm not saying that's the rosie pictures mean that could be late cycle sort of action.

But I think q 3 earnings told us to tims point also that things are OK right now， right? And there's still high expectations for twenty twenty five. I think fact that has year of the year earnings growth at like thirteen, fourteen percent.

Now a lot of us coming into this year didn't think we're gna hit that eleven percent bogie year over year earning growth. And that looks like we are going to. So again, I think that the economy is OK. That's probably one of the reasons why I think the market goes up no matter who wins in ubs.

Saying the equalities are attractive regardless of the result.

Guy, well, let's change in the last time you were here in may for you without question. Well, about but terms of the market, not a lot of change. I think everybody saying sort of similar stuff mean, if you look what we've done over the last four, five trading sessions, we've basically got back today and friday while we lost wednesday and thursday and that sort of been the pattern one or two big day settled.

The market recovers over the ensuing weekend. We're seeing now the only differences to tips point we have a vics is still either side of twenty, which may just be election concerns, you know people obviously hedging against that or into that or in the weeks after that. But with that said, all the same teams are working.

You know base continued to trade pretty well, uh, all seemingly this this you know renewed sense of the economy and the economy doing Better than people think. Those trades continued to well. And Frankly, precious metals continue to work as well, which is somewhat I know IT doesn't make a lot of sense, but that's been the thing quite time yeah that's funny to me in this U B.

S. Report there. Just talk about how gold remains a valuable hedge against st, sort of uncertain everything. This where we are is the right?

Yes, yes. What's the reason why I can't investing gold? I can't find IT. And I so precious metals are certainly your friend. When there's political chaos, they are your friend. When there's some type of a deflationary force out, there's sometimes they're not your friend in an inflationary environment.

And if you look for the period where gold actually under performed in the last three years, IT was during that period and IT was under performing barely actually on a real tive basis. IT was out performing in an absolute terms. IT wasn't go in higher.

So guys, right? I think we've like gold here for a while. Think we've like precious metals here. We've noted that silver is performed over the last few weeks.

IT probably will continue to, but gold is a function of a long term trend, which is, say what you want, it's not even about to follow the U. S. M.

It's really a case where central banks have been diversifying really since the last, I don't know, twenty five years that i've been looking at a gold is that this has been a trade that certainly that's part of the dynamic. The other part of the dynamic is there is a deficit. There is a fear out there that there is fiscal um you know just lack of of restraint out there.

Whatever party in power, by the way, look around the world and you can probably see a lot of the same thing. That's why gold works. That's why I would not run too far from that trade.

You're writing down something over their care.

Yeah no I I don't know gold. I always joke that, oh, no, everything is good for gold. So you should have gold. I do a bitcoin and had to for a long, long time. IT was supposed to be some of the things that is not a storm of value that really has worked IT.

IT really does not become useful for your trands actions, but for the fear of fia currencies, which we are in a situation where a fia currency could really be devalued, right? Um I think the case is, is there unfortunate it's sort of shrouded in regulating hassles that as those have been dismay that it's done much Better that sort of my fiat currency hedge, right? Fair enough.

Well, we've got an earnings alert here, I think on trump media shares down after hours. Julia boston has those details for us if she's ready. July may not be there.

there. I'm here. Quality, true m media technology taker. D, J, T. Shares are down now, about one percent. This, after the community reported, is quarterly results, of course, reporting on election day. Here, the company reporting one million dollars in revenue for the third quarter, in addition to four point seven million dollars in interest income. The company also reporting in the Operating loss of twenty three point seven million dollars in a net loss of nineteen point two million dollars. The company is stating in the release that IT quote continues to explore additional possibilities for growth, such as potential murders and acquisitions with companies that would benefit from trump media and technology and branding, including in the realm of thin tech shares. Now down two percent.

courting you back over god. A thank you very much, Julia, for that. For more, let's bring in buki advisors. Peter bookbinding ter, thank you so much for joining us. You're really appreciate you being here with us on a very, very active day for markets, of course, as well for the world and in our political landscape.

What do you think investors or should be position right now, as we said, where we have no idea what the outcome will be, will IT be a sweet? Will IT be clearly one can or another in the White house? Where are you advising?

Well, policy was, if there's display congress, the fed meeting on thursday is going to be more relevant to then who's the next present .

even though we're pretty sure they're cutting rates and you still yes.

But I think the the bond market has been the most interesting thing to watch since the fed last met in september when the the ten years of seventy basis points since they met. Now if you're a responsible central banker.

you have to ask ourself .

OK and is there I hate it's acting more and I okay. Interest rates have gone straight up since I cut rates gold in an all time record high credit spreads are extraordinary ily tight inflation prints have been a little bit of blood expectations. You look at the last CPI jobs, dad is very confusing.

I think you've got ta look in the marine, say, do we really need to cut? And if I do cut, maybe I pulled back the expectations for december. So I think we really need to see this bond market action here and getting back to whoever gna win, regardless of who wins.

Debt and deficits in the U. S. Are going to continue to go higher spending. A twenty three percent of GDP is not going to stop.

And whether we raise taxes, lower taxes, whatever, IT usually hovers around seventeen percent of GDP. So I think that the bond market is sort of taking control and a sense of of the narrative OK. And I think we need to pay pay attention to that.

okay, but we're brothers of who wins. I mean, they don't control the fed, right? The fed is is why does that message change back to your earlier point? Well.

I think from an a dusting stamp point, we're obviously focused on who's going to win. But I think where interest rates go, where earnings go, is gona matter how much more in terms of policy, whoever wins, the most important thing is what happens to the trump tax cuts next year. Outside of that, I can think of anything that is as important.

Yes, the terms matter, but you know both sides kinds like tabs. I'm not a fan of them, but they're there. But again, legislatively, it's what happens to those expiring tax cuts.

Peter, in the notes that says the bond the equity market will care about yields, but not until six percent, which makes me believe you think there's a more than remote possibility to ten years yellow go to six percent.

So how do we get there? Well, will be washington, dc. That will only care if IT gets there because everyone says, well, either candidates not talking about deficits, when will IT matter? When will IT matter? And that six percent is when I throw out where you can be sure on the full of of of the senator, the house people going to say, oh boy, uh, we need to start paying attention to this because that's the sort of the crisis level.

Now whether IT gets there are not sure. I do think that we retest five percent, which was the high of last year. And this four thirty level is really key in the ten year because it's the fifty percent retracement know that five percent on the upside, the three sixty that we saw a few weeks ago. So this four third really matters.

Peter, of think very much being here with us. Peter book, far of blicky financial group cio and cmc contributor. Or we should add care. And what do you make of the rate picture right now? And where we are have had a lot of action theirs in the bottom market, clearly very important.

I know I see I kind of think they should paw. I think you are pause with a more maybe some David reorient or because .

like you yeah things of yeah both ways.

I mean, inflation is sort of doing OK right. Um so I don't know. I guess I feel like they have covered to do that if they want that.

We had a rea mesa on the other night. You seem pretty confident, who knows? But twenty five basis points is the right path. I don't know. I don't think it's really necessary. And and what is the bond market telling us that it's moves so much since that fifty days point cut, right? And the academy to be great.

Yeah and you mention this again. The facts was to be a political I I think canada, trump has mentioned on a few occasional over the last few couple months that he thinks that the White house, the president should have a say in monetary policy and you just made a joke about whatever that was about central bankers.

Can you imagine what would happen if I did become a political entity, an ARM, the president, we and I just think that that was a respected worse. I mean, maybe, you know, I mean, we ve got chicken and we ve got turkeys. No, I mean, the end of the day, I just think that that's just one of the other fears that we would have. I mean, you're talking about fears of devaluing fiat currencies. I just can't imagine and that turns this into republican.

Is the reversal on about rock quick in the bomb in terms of the tilt, if we can put up a tilt chart, I mean, there was one point today with a tilt was falling out a bit reverse midday action closed, which means ten years old actually went down. I think they close around four or twenty eight off, about four thirty five high. That's interesting, a sort of duck tail, something katy stocked instead on the show.

We can a half or so go SHE thought I was an ensuring place for yields to pause and maybe head lower in the short term. And Peter just talked about the technical set up for that as well. IT makes a little sense. I'm still one of these people, though they think and agree with Peter. I think we're headed to five percent maybe by the end of the year, and i'm not sure how the equity markets going to react.

Well coming up after hours action and chairs of super microphone in its latest orange report, the numbers, the troubles we're going to dick into this name next, plus talentless earnings pop, what does investors piling into this software high fire coming up right after this sick with us?

You're watching fast money here on C, M, B, C will be right back. What's next for amErica the morning after breaking election results critical insight from campaign insiders how voters are thinking about the economy wednesday special time, five A M R C N B C.

Welcome back to fast money. We haven't earnings alert on super micro. The ebata text talk down following its first report since its lead auditor quit. That conference calls underway or seem mode has the very latest ma what's going on?

Hey, corny, second quarter earnings is excuse me, second quarter outlook is a lot lower than wall street had anticipated to sign that the flurry of accounting concerns are potentially starting to wait on future sales. Now on the earnings call right now, super microsys your trolley. N.

G. Says it's in the process of engaging a new auditor and, quote, working with urgency. IT follows news last week that earth and Young resigned as super micros auditor, citing transparency, feeling concerns of a potential d listing from the nazi.

That deadline is approaching november sixteen. Super mico did share that a special committee investigation found no evidence of fraud or misconduct and recommended a series of measures to strengthen its internal governance. IT remains unable to predict when its ten k will be filed.

Super micro does face two fierce competitors in the A I super market deal in hp enterprise, but capturing market share doesn't happen overnight. Industry experts we spoke to say what set super micro apart is its design expertise and Price. One customer telling me it's A I servers are about forty percent cheaper than its peers. We are looking at shares of the company down about thirty percent. And after hours court.

see. Thank you very much. Falling along with that, I can imagine that conference call me to have been a little contentious when they were talking about the order care. And I mean, how much headline risks in the stock giant.

I mean, there's a lot of things, but I mean, there's the auditor thing, which is huge. And if you let that red that letter resignation, that really wasn't delighted at outlet deal. And so i'm sure they're really trying very hard.

I have no doubt they're trying really with urgency, with urgency as they need to be right. And then remember on this sort of horizon is do they get kicked out of the S A P five hundred and right, there's that. But then there's also um they there um the chAllenges don't impact our ability to service customers.

I find that potentially hard to believe, right? You've got to think that your employee basis kind of spoke by this and acted right. And so I mean, there's just a lot of things going on that aren't great.

I don't know they should if I I always think companies shouldn't give guidance anyway, but I feel like if you are in this situation, even for guidance for a quarter that is closed but not yet, I know I am a little skeptical on that. The announced with that, they don't that there's no impact on the financials. I'm a little skeptical about that. I don't know I could be the case, but I feel like that auditor resignation is so important so this is when I am long puts uh just you know so you know where I stand on IT um but I think I wouldn't touch you here at some way that i'll cover him because the risk reward has changed. But I don't think this is down three boxes enough to like, well, i've gotta jump in and I don't .

know why they decided they needed to give guidance. And what's the disconnect between E. Y. And between the special committee, special auditor committee, special investigation committee that seemingly found nothing wrong. I mean, there's obviously some sort of cases m there and then you have to deal with the delisting from the nassik, which they probably can get themselves at the february of next year in terms of calendar, but that's still hanging out there as well. So if you pop a long term charter, the thing we've talked about IT for a while, IT feels like a set IT back to hide single digits low, like, you know, eight to twelve dollars, where IT started this whole run back a year and a half two years ago ago.

Well, let's get the latest read on the election as we are starting to get the first example. And mega seller has the latest from dc making working in place right now.

Hey, that's the first round of exit post out just now at the top of the hour, giving us our very first glimpse at any results in this election and telling us a little bit about how voters were feeling as they left their pulling places, both today and during early voting. So take a look here. We have the result of on three of the economy focus questions on the question.

First of how voters would gage the state of the economy, only five percent called IT excEllent. Not really a surprise, they're given inflation. Twenty eight percent called IT good. And a plurality here. Thirty five percent said not so good, while thirty two percent, just about a third there called IT poor.

On the question of your family finances, compared now versus four years ago, twenty four percent almost a quarter calling IT Better today, but forty five percent almost half saying that their families finances are worse today. All about thirty percent that IT was about the same. And then finally, I had to had here on the question of which candidate you trust more to handle the economy.

Fifty one percent said trump, but forty seven percent said Harris. That is an issue on which Harris has been focusing most of her campaign. There had been a much larger gap there in polling as to who was the Better candidate for the economy there.

So for Harris to be within four points, that's probably hopeful sign for the democratic campaign, although of course, the trump campaign would say we're still leading. There is always been his top issue. A couple of caveats on this.

This data will continue to update throughout the night as more results come in. And we also will get later a look a chance to look at poll results in the bottle ground states, specifically showing us how voters there are feeling in the states that matter the most tonight here cording. But for now, just our first limp, at least as how voters are on the economy. Back of you.

Hey, making its time. Texture journalist, is there any sense how the exit polls or how the voters are able to reconcile job in employment market and labor market that's arguably never been stronger with wage games, with wage growth and an economy that seems to be apparently not well like now in the hardest st issue .

for the bad administration in the Harris campaign for years now that even though all the fundamentals of this economy have been so strong, voters consistently say that they just don't feel IT. And the issue for the campaign has been, how do you message on an economy you can't quite celebrate your wins if nobody feels like they're doing that well? So that's the issue that we've been dealing with.

Herri has really gone out and try to come back IT with with approaches saying things that SHE would do a ban on Price skew ging, for example, help with down payments for housing. So that is going to be the disconnect here if you see that the economy is strong when you're looking at the data. But if voters don't feel IT, can you make that trickle down to the campaign? One of the things that we're going to figure out tonight.

I think him making this the stock market over coming in consideration because obviously were sitting here all time hires that people just feel disenfranchise are not part of what's been an incredible run over that will figure about the last know four years, the last eight years, effectively.

I think so many people don't think about that. They might vegan, know what their foreign is up. The majority of the country doesn't at least not very much in the stock market. So IT doesn't seem to come up very much except in this sense of sort of consumer sentiment or how the economy is doing. I think that contributes to this overall feeling of how the economy might be doing, but not that much because like we were just saying, you know, they don't think that the economy is doing that well. So even though the stock marker is doing that well, when Prices are still high, home new loans are still high and expensive, that's what matters more day to day.

Fascinating and stuff magan. Thank you so much for bringing a to us. And obviously, we're going to be checking back in with you throughout the hour and throughout the evening as well.

Then I want to turn to you. I thought I was very interesting in Megan's numbers there that that forty five percent of americans feel that their financial condition personally is worse today than IT was four years ago. What does that tell you about as they're saying that walking out of the polls.

listen, it's been a tough you know, on five years. And you know, I go back to twenty twenty and to twenty twenty one. I mean, to think about ppp, the pay check protection, I mean, a cap, a lot of these folks, I mean ten of millions of people of float.

And then we had this huge savings rate in the kind started to pick up because the monetary in the fiscal. And so I just think it's kind of curious at this point that, yes, I know a lot of americans are dealing with a very difficult time as IT relates to the cumulative inflation, but there was also a lot of spending. We would not had the numbers that we did in twenty, twenty and twenty, twenty one.

I think people were just following IT. So again, I think you know, it's two sides of the same corn. And at the end of the day, and I think the by administration has really born the brunt of this despite supporting the economy in the beginning and really get them based of IT.

Just seems to me that that that forty five percent number is all about inflation. And inflation is is Frankly, print on board administration of the last eight years. It's also pinned on how about the central bank have a monetary poli.

Haven't we talked about for years that the central bank has had rates pinted zero and that the fed has that a proportionate impact in terms of liquidity, in terms of acid Price in place in you kept by a house? I mean, i'm not blame this on the fed, but let's be clear really, since the financial, the fed has been the most important factor for inflation. And if people don't think that the independent central bank doesn't have their hands on this um they're actually missed in the story.

The inflation has become a very, very, very big deal for many people. Unfortunately, don't always sort of read between those lines and think about how we got here and who got is there. Don't miss the cnbc.

Special election coverage will have results as they come in and reaction from the biggest names in business all night long. IT all starts at seven P. M. Eastern from the york stock exchange right here on C, N, B, C coverage like you won't find. Anywhere else, there's a lot more fast money to come .

here is coming up next. What will the elections mean for big tech and the growth trade? We're sitting down with arco Cathy wood for a closer look. What's IT take high fliers as amErica casters vote, but first plentier pops post earnings inside the money.

That in times we're back right after this. What's next for amErica the morning after breaking election results critical insight from campaign insiders how voters are thinking about the economy swag box wednesday is special time five A M R C N B C .

broken back to fast money plentier hitting a record. Hy today shares surging twenty three percent on an earnings beat and positive guidance. That's stock now the second best performer in the S M P this year.

Plentier passing in vidia and is now up nearly two hundred percent year today, second only to via energy. IT just joined the S. M.

P. In september. Dan, can this one keep on climbing? Is this our new invidia of the year? no.

But I mean, obviously I can keep on climbing. I mean, again, twenty billion dollars in market cap today. When you think about that, that seven times they are expected sales this year, IT trades at one hundred and sixteen million.

Our market cap is trading this year forty two times sales next year thirty four percent. Here's the problem. Sales are only growing at about twenty three, twenty four percent for the next couple years.

That's expectation. So they're gona have to have some material changes to the demand picture and and you know for this thing to keep going. I mean, listen, when we talk about stocks, even grow stocks that are trading forty one times earnings, you know mean that sometimes is very expensive, especially on A P E, to growth. We're looking at, you know it's growing earnings up a very little bit. So to me, this one doesn't .

sense too fast.

Yeah, I mean, this was interesting how excited what alex harper was. No, what a character anyway, right? But I mean, he couldn't sound more bullish that you they have described the quarter.

We might as well just go home now. And what is unrelenting was at the word, I think, unrelenting demand. All that sounds great. Hard to know. I just always come back evaluation and this one's little hard for me there.

I'm along the stock. It's very expensive and and you know the questions, do I take some profit? Probably not.

But I I recognize IT for what IT is absolutely an AI proxy. It's it's an AI proxy in in the correct that's what they announced. That was the exciting part of IT.

It's also counting governments gone wild and they seemed that the inside track or government contracts dances right. When you get thirty percent growth on thirty five times for the sales. Um that's not a great that's not a lot of growth for that kind of of a multiple. Um the senses that they really do have a kind of the gold standard of of of of a customer based that will continue to grow and actually build around them. I'm gona hold on something .

to see real quip with the end. I said R, B, C, capital, raise their Price, arguing, oh god, the reason from nine dollars to eleven dollars, Morgan stanly had a twenty hour Price target. They just said, you know what, would not playing that game anymore.

But there's still, I think, underway the stocks. So in order to justify the market cap that three and a half million dollars next year, you should look like twenty two. And we're no we're close to that. So tims, this is a great stock tims on a great job, but it's a deep end of the poor.

Now sure. Asking, is this the next? And video, I mean, in video doubled their sales from twenty three at twenty seven billion to fifty five years, and then they went from fifty five million. We've never seen anything like that in the history of the stock market on those sort of numbers. So we need to think in about sort of numbers with pantier doesn't look that.

but also headlined at least. And I don't know what the timing is on this, and these were probably in place, but five hundred and eighty million dollars a stock from insiders is coming into the market of the next six months.

All fair points. While coming up, we are sitting down with the art invest u. Cathy wood, born in debt, look at all the election could impact, take trade mistakes for the high flyers and the group gets up next. Plus is IT rally on in china what renewed stimulus es could mean for the country, struggling economy and its biggest companies.

mr. Moment of fast catches anytime on the go followed the fast money podcast. We're back right after this.

Well, come back to vast money stocks jumping on election day. The deal surging four hundred and twenty seven points. The S.

M, P, getting more than one percent than as extorting nearly one and a half percent. Meanwhile, buying shares falling today. And this is even after the machinist union voted in favor of a new labor deal last night. That's a big step, told ending a more than seven week long strike and a couple after hours headlines to bring you. We're watching amazon after jeff zo failed to notice that he's planning to sell about three billion dollars of the stock.

Boin split, or spirit error system is flag in its earnings report a growing concern risk and the wall street journal reporting that A I start up perplexity is finalized a half a billion dollar funding round that could value the company at nine billion dollars, a lot around up there in the tech right. And the ark innovation fund is up more than three percent today and nearly twenty two percent over the past three months. The fun, though, is still down almost eight percent this year.

For more, let's bring in Kathy wood, CEO and chief investment officer of ark invest. Kathy, it's great to have you here and on this election day, a very partners to have you. We understand, of course, that the performance is kind of lack to say, at least down about sixty eight percent since biden has been in office. Are you hoping for a change in the White house?

Well, what's been interesting about this campaign season is both candidates have sounded more and more like when IT comes to innovation. Our focuses only on truly transformative uh, innovation and so uh and and this seems to be a bipartisan issue. The best example of that is what happened with crypto this year.

Uh, we had one party for at the other seemingly against and clearly the electorate spoke very loudly uh and so they're now sounding very much like, I think, uh, the decreasing regulations is critical, keeping taxes low critical and really, uh, incentivising animal spirits is really what we're all about. So uh, I think I think there are both sides want innovation. Maybe one is leaning a little bit more towards regulations coming down. That is very important before .

I move on to the traders know tesla a stock of course we talk a lot about IT was higher today but elon, a very vocal trump s supporter if trump t does not end up in the White house again, is that going to be trouble for for tesla at all down the road if Harris takes over the presidency.

I don't think so. Our theses uh short term anything can happen and and volatility around uh this important day, um we wouldn't be surprised. But uh if we're right, an autonomous so robot taxi the robot taxi autonomous taxi network opportunity ah is as big as we think IT is a any setback would be a great buying opportunity.

Cathy Carry finder man, thanks so much for being on. So one thing different about four years ago is interest rates are entirely different. How important is that, that the fed keep cutting to for your portfolio?

Yeah it's really interesting that um many people equated uh zero percent interest rates with a boom in our strategy. Um our strategy in two thousand and seventeen and eighteen had really good years. I think eighty seven percent up in in seventeen as interest rates started up and then we were up in a down year in two thousand and eighteen.

So this correlation to interest rates has been a phenomenon associated with this time. And I think the reason was the shock going from you basically twenty five basis points to five point five uh percent uh, was a real shock to the system and and certainly reverberated. Do we need lower interest rates? Uh, I think the interest strates not continuing to go up unless we're in a very strong innovation LED a recovery than interest rates, short rates, uh, could could stay around these levels.

We don't think they will. We think we're in a bit of a sinking spell here, uh, and that we'll need, uh, a bit of time, maybe some new policies, uh, and then we'll be on our way. So uh, we don't think we need a uh, interest rates coming down necessarily.

Um the other thing that has happened over the last six years is this concentration in the market, the likes of which we have not seen since the great depression. We think that the market is going to start broadening out in the next few years ah that should also help our strategy. Um and uh so the the last thing that has happened is our multiple enterprise value to ebit done multiple is as close to a market multiple as I have ever seen in my career. So are those three interest rates a concentration moving into broadening out and and the valuation of our portfolios, we're feeling really good. Hey, Kathy.

So tesla is the largest position in the art innovation fund. IT looks like from some of the headlines you've been selling a little bit over the last week or so and you just robot taxi and autonomy and the opportunity there. I look at tesla is down forty seven percent from its all time hires.

You just mention the concentration of mega cap. It's the only mega cap stock that's basically text toc that's not near it's all time highs. Why do you think other investors are not appreciating what you see as far as the opportunity for robot taxi and autonomy?

sure. Um well, I think in terms of the way it's analyzed, we still if you look at the uh endless coverage is uh h it's mostly auto animals, still a few more text. And this is not an auto stock now, certainly not a traditional one.

Uh, it's a robotic stop. So autonomous vehicles are are robots. They'll be electric and uh there powered by A I those are three different kinds of analysts.

We have three analysts working on this and we've defined the market differently from, I think, A A lot of other animals and we've done a lot of original research. Uh, I we put our model out there. Uh, you can you can uh, play with IT and move around the variables if you disagree with some of our assumptions. But if we're right, this is this story has just begun cati.

We have to ask. There have been a substantial amount of outfits, by our calculations, about two point eight billion dollars from the arc investment fund to obviously, we talked about your performance in the beginning. While you certainly have had periods of time, you've had banner returns right now and and lately, IT hasn't really been part of them. So why should investors sort of feel confident in everything that you're saying now in your strategy? Why should they put there are money to work with you and in this fund?

Well, first of all, in terms of talking about this year, um yes, as you say, we're down this year. Uh, last year were up sixty eight percent and we ended at at that point. So we do have some point sensitivity going on here.

Uh, the second thing is uh, as as I think Karen mentioned, uh, many people have associated h our portfolio with low interest rates as certainly algorithmic trading seem to do that. Um I think that's going to change. Uh and if you look at our portfolio, um IT has been if you take out the boom and the bus around covered uh IT IT is basically been flat uh for six years.

Uh and yet over this time and and today was a beautiful day for this over this time, the progress that our companies have made is astonishing. Uh and in that category, I would put health care uh health care is going to be transformed completely by technology and pressure therapeutic beam. Uh uh therapists and other uh companies have developed cures for disease in two thousand eight.

Uh the we were wondering, is this a is this technology safe? Uh uh, crisper gene editing today, uh, not only is IT safe, but it's been approved in the U. S.

U. K. And europe is being reimbursed for a patient at two point two million dollars.

Again, one, those two point two million dollars. why? why? Because these patients have taxed the system economically. Of course, they've had a terrible problem with their health. Now that's being cured.

And instead of, uh, paying five hundred thousand dollars a year for therapy and still having these people hospitalized, they're going to be cured. So we think a lot of what is going to happen. This is probably the most profound application of artificial intelligence and sequencing technologies and resort gene editing.

Uh, we are going to see real results as we move people out of hospice hospitals and into cures. And that saved costs will save the system. But I will also go more and more to these therapies.

And of course, the cures that could potentially save lives is probably most important of all time.

Thank you for joining us.

Thank you for joining us here on this very important election day. It's great to have you well coming up. We are diving into the traders post election pics, which stocks could surge no matter who wins. Find out right up to this.

Let's get to check on super micro falling as much as seventeen percent. The CEO saying revenue was down as customers are waiting for in videos s new chip. The stock trading at its lowest levels since last november done fourteen percent.

No matter of the election outcome, investors might want to prep for big market moves. Check out the performance of the S. M. P.

Five hundred and the weeks following the last five elections and twenty twenty stock rows, five percent in the week after and nearly nine percent in the month after election day. So we associators for their best picks heading into the results. I hedge an outcome insensitive play, trader choice.

guy short, T, L, T. In other words, yields are go in high. And Peter book for are actually talked about that earlier to show.

And i'll sort to say here, I think regardless of who wins and quite Frankly, how senate presidential nominee, presidential elected person yields go higher in this environment, either side, it's gonna dress. I think the irresponsibly on the fiscal side, and I think it's going to continue make yields push share. So despite the fact the tilt reverse today, guilds to go on higher T, L, T, lower.

okay.

Then yeah, this isn't the head or anything like that. I just think that could be a decent trade over the next couple of weeks. Look at google.

Good quarter. Good guy. Good valuation. Pulled back to that break out level from right before the earnings. I think you get this thing back towards one eighty five or so then not too distant future. So I like google here and care.

yes. So I think markets don't love uncertainty. So I think to the extent that we get certainty, that's good for many stocks. But I like T J X. I like that if it's a decent retail season, T J X can sort of directly do well. If it's not a great season and you have a lot of inventory left, T J X can buy that at a good Price and then end up doing well. So either way, I feel like it's kind of insulated.

T, J, X, okay. And tim talked we talked about gold.

So i'll talk about airlines, which first would be delta. Again, they gave a fourth quarter, died. What's happening with airlines? As you actually see margins come back delta at the top of the heat, their margins are going to be a three or basis points year over year N P S. Of thirty five percent. I'll also just thrown out for canvas because I think the irony is, of course, under biden, when biden and then the senate flip, I should say, yeah, was the center flip back in in two thousand and twenty one IT was seemed to me game on for cannabis and the by administration really kind of up the ball. Frankly, I actually think under either administration cannabis legislation, but cannabis progressed from an administration perspective, it's gona move farther and might even move .

farther under trump. I want to go back to you just for second, for kind of a jumping all because you use T, G, X. Walmer was an all yesterday.

What do you make up that? Well, I like IT. It's just, I mean, both of those are expensive, but I like the both could have been either one.

And you think walmart does well, potential I do. I either way yeah because I could I could see that too. And I was wondering ing if that was part of the reason, at least that we are seeing that as an all time guy feel created in to say, no, no.

I mean, walmart, we've been taught about forever. I mean, valuation is concerned, but IT hasn't really mattered. Red, I mean, if you look at the stock and didn't know what I was, you would swear the technology stock.

But with that said, I mean, that seems to be waller ts world. Everybody else is living. But tej x is probably the same type of company.

just a little cheaper evaluation mart would like IT to be like to be thought of as a technology company. They are working on that. They can be a part of, well, all right, well, up next starting time final for ads.

A fast hour at time for the final trade. Let's go around the hall until you get to start.

Thank you for being important. Great to see you tell the airlines thirty five percent E, P, S. growth. You are real. I think it's going on higher.

And yep, thanks also pitching um my final trade is good enough for the insult IT matter what happens in the election. So good enough for the final trade as well t then yeah .

you like the google. I think you play the cosplay Better.

And guys, it's nice to have you back. Thanks to growing family, beautiful family. It's wonderful tomorrow. He had a birthday yesterday. Exciting and .

move in.

New mot mining from fifty eight to forty five is overdone. Court, I think you got a new point here at the forty five level.

Okay, clearing up good trades all around. Happy the election day to everyone that I get another vote. You have vendor polls might be closing soon to be on where you are. Thanks for watching fast money, mad money with tim cramer starts 味道。

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