there? >> all right. let's do jim. >> delta air lines between friday and today it's down less than 1%, and that's the market's way of saying there are clear skies ahead for delta. >> we did it. >> no ts afootnote. >> flight cancellations are still in play and we got through all of it. >> committee, thanks, guys very much. that does it for "the halftime report." "the exchange" with kelly evans starts right now. they nailed it. thank you, dom. welcome to "the exchange." i'm kelly, vans. here's what's ahead after a very busy weekend and more democrats announce their support for v.p. kamala harris and how it's changing team trump strategy and whether it should make you change your strategy. this is the most investable election in his professional career, does he still think that or is the reshuffling now changing his election baskets? he's back. and tech rebounding today after

last week's massive rotation from tech into small caps. is the small cap bounceback over or will they continue to outperform from here? one of our guests still sees significant upside ahead and she'll tell us how she's positioning in that trade. speaking of markets, the dow is up 185 points at the high, down 65 at the lows and we're at about a quarter percent and 1.3% gain for the nasdaq and continuing what we saw with a lot of strength and that said the small caps are adding two-thirds of 1% and after last week's bad week. the nasdaq on pace for its best day since june. nvidia leading the charge and the tech rebound. take a look, it's up 4% on a pretty impressive bounceback helped in part by what we saw recently with the momentum coming to the fore and what played out with the presidential election cycle last night and the price target increase from luke capital and piper sandler, and sciti opened a positive wath

and that's helping momentum there. moving on, treasurys. we'll check the yields holding steady as we're gearing up for fresh inflation data and the pce is out friday. watch the curve as well and we're watching steepening and that's one proxy for checking how those odds look. on the flip side of that, the green stocks are bouncing back and they've been under pressure the increased chance of a trump-vance ticket and today gettinga harris bump and pairing with steeper gains and a decent amount across the board and 1% to 2% in other cases. bitcoin, slightly slower giving up yesterday's bounce and still hovering around 67,000 right now and politics is where we begin with president biden withdrawing from the 2024 election and endorsing vice president harris. it's the latest twist in what's been an unprecedented election season and we do have team coverage. emily wilkins in washington with the latest and leon panetta, former defense secretary and cia

under president obama and chief of staff under president clinton. governor of new hampshire, dan clifton is head of policy and eunice is live. emily, what's the latest? >>. >> hey, kelly, kamala harris is kicking off her first official day of campaigning at this point and it is only looking more and more certain that she will be the democratic nominee. she had her first public appearance just a few hours ago and the first one since biden passed the torch. it was a pre-scheduled event with ncaa winners, but harris used the opportunity to praise biden and his record. she didn't say anything about her own run, but she did tweet that she will be headed later today up to wilmington, delaware to biden's campaign headquarters and will say hi to the staffers there and the democratic party is continuing to fall in line behind her. we still haven't heard from the top democrats in the house and the senate with chuck schumer,

but we have heard from number twos and senator dick durbin and councilwoman katherine clark both came out with statements of support today as well as campaign armchair susan dell benny and all of them throwing their support behind harris. while some are calling for an open process harris doesn't have any serious challengers yet. most names that have been potential contenders have thrown their support behind her this includes josh shapiro, ben cooper and gretchen whitmer and pete buttigieg. all of those names are being float as potential vice president picks who can help harris in the midwest and key swing states, but kelly, we still have a lot to go and a lot that is uncertain about what this process is going to look like now that biden has withdrawn from the race. >> one person we also haven't really seen is president biden himself. any scuttlebutt on that? >> biden is still in wilmington, still recovering from covid. he says that he is planning on

getting out again later this week. he still has this meeting with netanyahu who is now in d.c. planned and so we are expecting to hear more from biden over the weekend. in a statement he said he would be having a speech and directly addressing the american people, but we just don't have any particular timing on that yet, but certainly we would expect him if he came out with the harris endorsement to continue to calling for unit and the path forward. democrats don't have a lot of time and it's only 105 days to the election and much, much less time until that national convention in chicago where democrats are going to have to lock down whoever their nominee will be. >> for sure, emily, thank you very much. we appreciate emily wilkins. the president's surprise withdrawal re-shaping the race. one of my next guests says it now puts a spotlight on trump's age. what a weekend makes, judd greg along with former cia director and former clinton chief of staff leon panetta. welcome to both of you.

senator, i'll just start with you. do you think this shines the light on trump's age or does he seem to be younger than -- still by comparison to biden? >> he definitely seems younger and no question the age issue will be played fairly aggressively by vice president harris, but the bigger issues here, very much bigger issues and the biggest problem is that trump is going to have and vance is going to have is that this isn't about the base. they can't continue their name calling. they can't continue the vitriol and the recriminations. this election is about independents in swing states and independents are historically women, quite honestly, educated women and they're not attracted to the that style of presentation that trump has, and so if he's going to broaden his capacity to do well in the swing states like pennsylvania, michigan, wisconsin and nevada, arizona and new hampshire, north carolina, he's going to have to get away and he'll have to

change his style a little bit. i thought he would personally, and i thought he would be more gracious to president biden and he called him crooked joe and unfit to be president. that was foolish and it doesn't fly with independents. it doesn't fly with a lot of people. it doesn't fly with me as a republican, but as a practical matter, that's where it will be set with the independent states. i think vice president harris is going to have a pretty good chance at picking up a lot of those folks. >> do you want to build on that, secretary panetta? what would you say about the way that this has been handled so far? maybe it's the right move for president biden to lie low or will it just invite questions about whether or not he should finish out the term, for instance? >> well, i don't think there's any question that joe biden made the right decision with regards to stepping down. it was pretty clear that if he had stayed in the race that it

was very likely that he would not only lose in november, but probably impact on both the house and senate races. that dynamic has now changed. look, we've had an unprecedented year of events beginning with the debate and then the assassination attempt and now joe biden stepping down, and i suspect we'll be on a roller coaster between now and november. it's a little difficult to tell how this will play out, but i think -- i think joe biden is right that right now it makes it a little tougher for the republicans who were targeting joe biden as the opponent in november. they've now got to switch gears and my sense is they're having more of a difficult time trying to adjust to that. so i think it will be a very close race as it always looked

from the very beginning, and i think the democrats by virtue of what joe biden did have put themselves in a stronger position for november. >> what do you make of former president obama's move here to not endorse the vice president yet and potentially to invite some kind of primary or small contest amongst the other candidates? >> well, i wouldn't read too much into that. i think that a lot of people are kind of looking at the lay of the land and trying to decide what the best place is, but i think in the end, i can't imagine that former president obama is not going to support kamala harris for president. i think there will be some that will want to have a little more open process at the convention. i think that's probably not a bad idea to at least have some competition there and to have

kamala harris earn the right to be the presidential president for the democrats. so i think there it will be some that will sit back and see how events play out through the convention, but i think anybody who is a betting person, i think the reality is that harris is going to be the pick, and i think the real question will be who her vice president will be. if she picks somebody from pennsylvania, and the governor from pennsylvania and the governor from kentucky and really balances the ticket i think she'll be in a much better position. >> sure. >> that is what most of the party is going to be looking at and how that ticket is better balanced for november. >> senator, that now has people questioning whether the vance pick, you do wonder if biden had dropped out before the vice presidential selection if trump might have gone a different way now. >> i don't think so. i think he very much sees vance

as the future of his populist moment and vance is, but it is a narrowing movement when you are running in a general election. there's no question about that and it's an honor to be on with the chairman and secretary, director panetta who has been an exceptional public servant in this country and i think he's right. i think the nominating process is over, and i expect president obama is holding his fire so it doesn't look like it's a fait accompli and makes people more comfortable about the choice he's made, but the vice presidential choice is key, which if she chooses shapiro from pennsylvania or cooper from north carolina, two states which are swing states and critical states and they don't carry pennsylvania. that will be a very strong ticket. this race has a lot still to see, and it moves very quickly, and a day can be a big day and a lot of things can happen in a

day, but this will be a very strong race from vice president harris and we are going to see president biden -- president trump also run a very strong race, and it's going to be interesting, to say the least. >> quick final question, secretary panetta. many said last week that biden wouldn't drop out before this meeting with netanyahu this week. do you want to comment on that now that he has? >> you know, trying to second guess when these decisions are made is not easy to do. i suspect that the combination of having covid plus all of the pressure that was coming up through the democratic party for him to step down, and i think all of that pretty much combined for him to make the decision, i'm glad he did.

i think what it does now is kind of gives the democrats a chance to get their act together and be able to put on a good convention and be able to get a good ticket. let me also pay tribute to judd. he's a good man. i worked with him in the congress and one of the issues we both worked on was fiscal responsibility. >> oh, boy. >> right now we're dealing with candidates on both sides who don't think much about fiscal responsibility. >> panetta-gregg ticket. >> this race has a long ways to go. i would vote for you on that front. gentlemen, thank you very, very much, for all of your efforts on that front and for making the time today. we really appreciate it. >> thank you. >> thank you. >> former secretary panetta and former senator gregg. our next guest told us last week 2024 is shaping up to be the most investable election of his career and did weekend's developments change that in let's bring in dan clifton.

all right, dan. tough act to follow there in some ways, but what do you think investors need to have front of mind with these changes? >> first, let me say that was an excellent panel to discuss the complex political environment, but from an investable perspective not much as changed. we've just gone through these four extraordinary events in u.s. politics with really no precedent and the confluence of all four of those hitting is such an extreme level of political uncertainy and over the last seven weeks the s&p 500 is up 6%. so there are limits to how much the political events will have impacts on the broader equity market and we think there's sufficient liquidity being provided by the treasury and we will continue to get that liquidity increase in the month of august and probably around $250 billion coming in, and so there's a cushion to digest some of this political uncertainty. that being said, the differences between donald trump and vice president harris are just as wide as they were with president biden and that means that you're

really back to those four big key investment landscape. number one, the supply chains and what you see is a narrowness of trump's line of winning. you have mexico outperforming today and that's exactly what you would expect if you think this this race is going to begin to narrow. then you look at some of the sectors that are underperforming today like energy or like health care. two areas where vice president harris has been more aggressive and you're starting to see a big coming in to say clean energy like solar today. so you are just starting to see the odds kind of narrowing down a little bit, but the funda fundamental thesis around these have not changed and of course, you have the deregulation proposals that are out there for profit education for profit prisons, tax preparers and medicare advantage and you'll start to see that narrow. the question is whether vice president harris can make the case if she'll get the chaos under control and the chaos of inflation and the chaos of

immigration and the chaos of crime and those are things joe biden haven't been able to do and she'll have to make that case for that, and that means that you'll probably have to release some policy proposals that are different from joe biden and we'll probably see that over the next couple of weeks. this is like a whole new campaign starting with a hundred days to go. >> isn't it? >> it's super exciting, but it hasn't changed the fundamental investment implications of the election. i still think they are there today. >> it's not going to change the implications of who wins, but suddenly that question is much more unclear. so even you guys say the change in candidates by biden stepping down has lowered your odds from a trump win from 75% to 55%. that's almost a coin flip. >> yeah. you went from the debate about acuity to one about policy now and the turnout model is different. the biggest change that you've seen since friday is that the odds of a republican sweep has come down. vice president harris will do better in new york and california where the swing districts, congressional

districts are and the democrats will have a better chance at keeping the house and if that's the case then the inflation reduction act will not be in much risk and the clean energy stocks will outperform and those are the things that have changed, but the binary outcomes are largely the same. the race is going to be closer and she's going to have to prove that she'll be a presidential candidate that can overcome the deficiencies that president biden had and it's too early to say. she's probably a better candidate than republicans are given credit for and democrats aren't as excited right now and there's this huge, collective sigh of relief that biden is out, that harris is in and that there's actually going to be a debate between the two candidates themselves. >> i should mention as people are saying, maybe shapiro is the favorite of vice president and you would put senator kelly of arizona in the number one position as getting the pick. on the trump ticket, i can argue that the vance selection can have policy implications if they

influence the administration. they all seem like variations on a theme. >> yeah. by the way, they're all moderates, but, the reason why i believe that kelly is there, he's got experience and he helps in arizona where the democrats are losing. he also could help you in those blue wall states and it provides a nice contrast to j.d. vance, and i agree, trump had a real chance to expand his ceiling and go for somebody else and he chose not to do that and that worked for the biden race. it may not work depending on strategically how vice president selects her presidential candidate and her vice presidential candidate. cooper from north carolina and shapiro from pennsylvania, beshear from kentucky and north carolina and they'll all have a nice contrast and cut out some of the advantage that trump was looking to get with j.d. vance. >> the larger trading pattern, energy, health care

underperforming and clean energy reflects the lower odds to something closer to a coin flip in the race. >> appreciate it. >> dan clifton with strategic and baird. president biden bowed out of the race. eunice yun is live from beijing. what are you learning? good evening -- or middle of the night to you. >> that's right, kelly. well, the chinese foreign ministry declined toed by own biden exit and harris' endorsement and saying the two are internal affairs and the expectation now is that the harris administration will adopt president biden's policy and those policies have been seen here as damaging and both with the economic actions and the chip controls as well assed coordination for regional allies. kamala harris has been out to the region several times and most recently in southeast asia where she was highly critical of china. what would be missing from her

administration is that personal longstanding relationship that president biden has had with chinese president xi jinping and the two have known each other from the days as vice president. the state media took this opportunityto be able to attack the u.s.' democratic system and the xinhua news agency said this evening that biden's exit exposes the chaos, they say and the embarrassing reality of american politics. however, people are still very fascinated, kelly, over here in the entire u.s. electoral process. since we talked last the term biden drop out has hit over 500 million views and people have been saying that they are totally shocked that somebody of his stature can walk away from a seat of power. >> although some would argue he was pushed, eunice, which is a

concept the chinese are more familiar with, and there might not be as such distance as a harris or whoever the democratic nominee is and the biden administration has picked up where the predecessor left off. >> yeah, and that's part of the discussion that we're seeing here. a lot of chinese have been saying that it really doesn't matter at the end of the day who is going to be leading the democratic ticket or trump from a chinese perspective that both are going to be very tough as you were just talking about and biden and the biden-harris administration has been much more consistently tough on china and very critical of china and then president biden during his days in power had the trade war, the sanctions on whahuawei and one difference is that president trump had been a businessman and had been much more transactional especially on issues that were seen as pertinent to the chinese such as taiwan.

so they're seeing that there could be some more wiggle room and more negotiation with a president trump. >> that's a great point. eunice, we appreciate it. thank you. our eunice yoon in beijing. speaking of china, we'll talk trade volumes with beijing dwarfed by our trade with mexico and canada. up next we'll talk about how they're preparing for november's election and what it means for the real business and trade. tech is rebounding with the tech outperforming the other averages and was the rotation with the small caps short lived and we'll debate that. "the ehae" ixcngs back after this. >> this is "the exchange" on cnbc. a so, any pre-launch concerns? what if nobody buys them? that's mean or, what if everybody buys them? oh, i hadn't thought of that that's probably not gonna happen can we handle that kind of traffic?

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welcome back to kw"the exchange." vice president kamala harris is set to become the nominee. wells fargo is out with a note saying the second trump presidency would be bullish for the rails given his focus on regulation, domestic upon innence and lower corporate taxes. joining me discuss in an exclusive interview is lorie tekorius with a leading freight rail carmaker globally. welcome. >> it's great to be here. >> i'm sure you are thrilled to talk politics, it does seem like cross-border and freight traffic is one of the areas that has the biggest fallout lately from the

presidential consequences of what we've seen. >> absolutely. well, what's interesting is, you know, the rail freight industry, we've been around since the 18 -- 19th century, right? we've been around and we've seen lots of different presidential candidates. we've seen lots of different presidential administrations and just like other ceos you wake up and go on with the day just like you have to do. >> reflecting on the trump administration, 2016 to 2020, did it change with what happened with freight traffic and all over the country. >> some of the things that happened was safety and infrastructure. you need some gondola cars that carry the cars that support those kinds of victimment and we've seen that kind of demand. anything that help his the economy, helps consumers, that benefits the railroad because so much of what you and i buy at the stores or on the internet

some way, shape or form it's been moved in a rail car. whether it's an automobile, whether it's a washing machine or whether it's some small gadget that you're buying on amazon, it or its basin greed ye ingredients travelled in a gondola. >> did you say gondola? >> it's like a big cradle. >> and it carries what exactly? >> you can put scrap steal, coiled steel and all kinds of big, bulky products that don't need to be covered and secured by the weather. >> it sounds like a lot of president biden's initiatives to increase infrastructure spending across the country would be bullish for gondola activity broadly speaking. >> yes. what's nice is we're hearing it on all sides of the aisle is the focus on investing on infrastructure and where we need upgrades around the country. >> the equity analysts are trying to think about angles, but what i'm hearing from you is either outcome might be

supportive of rail activity if maybe for a slightly dint kind. my guess is if we're talking about reshoring we're not talking about gondolas so much, we're talking about everyday commerce and some of that coming from mexico and canada instead of on a ship in asia. >> exactly. you're seeing the companies doing the near shoring after covid and with the supply chain issues you're seeing companies shifting manufacturing going on in northern mexico or support. so while we're building rail cars in mexico, we are also building them in arkansas and we are sourcing some of the materials from mexico from the united states. so the focus on crossing the border and being able to have commerce -- commerce move across the border freely is great for the united states, it's great for north america. so that's where i really hope that we continue to focus is how do we build the north american market more strongly. >> in other words, you don't want to kind of -- you don't want it to be mexico wins -- or mexico can win at the expense of china, but not that it comes off

completely with the u.s. and cuts off our closest trade partner. >> mexico is our number one trade partner and we need to recognize that and it's been great for the united states, as well. if we were to bring everything back to the united states i don't think we have a workforce to support that. we do need our partners in north america to make all of our countries greater. >> that's interesting. of course, things are charged with migration and all of those issues, but leaving that aside, it sounds like outcome regardless, you think the rails should benefit from generally increased gdp and increased activity. there was a pan chemmic of massive volumes and the hangover period and the chips have been down and that sort of thing. where are we now compared with the whole cycle? how has that played out? >> for any of your viewers that like to look at information and data there are boat loads and rail carloads -- >> sounds very greenspan-esque. >> yeah. we are seeing it. it's poor comps if you look a

year. we are seeing loadings going in the right direction and this is from the freight industry perspective, i look at what's not only great for greenbrier, as the railroads improve their operations and as we get better with the cars that we design and build it's just better for all of us. so that's the focus there and you're right when it comes to the border. my focus is on commerce. >> yeah. rail carloads should be up. are those publicly released? >> i'm sure you can find it on the internet. i heard a little bit about that. >> i think you should make it publicly released and you make this a big data point and we can all find out more about what's going on. >> lorie, thank you very much for your insight. >> thank you very much 37 i appreciate it. >> 30 years celebrating going public from the greenbrier companies. >> thank you. the momentum isn't helping crowdstrike. google downgrading it to neutral saying it might take time for the company to repair its image after the massive i.t. outage

and it may hurt signings and it is trading at 66 times forward earnings and at the highest multiple across the entire software coverage even with another 13% drop today. we'll have more reaction from wall streeont this issue later in the show. "the exchange" is back after this.

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♪ ♪ welcome back. we've got more breaking news in the race for the white house. emily wilkins with the story. emily? >> hey, kelly. well, yes, now we can say that former house speaker nancy pelosi is out with a full-throated endorsement of kamala harris saying both personally and professionally she supports harris saying it's with immense pride and limitless optimism for our country's future that she endorses her. personally, she's known harris for decades and both of them from california and politically, make no ms. take. kamala harris as a woman in politics is brilliantly astute, and i have full confidence she will lead us to victory in november. she is the former speaker of the house and still has a lot of sway on capitol hill. it's almost impossible to overstate now much influence she's had when it comes to talking with biden about his exit from the race and when talking to members about the right time for them to put

forward statements. she has been one of the people who have been conducting the democrats in this last month since those concerns initially rose with biden and her endorsement of harris today really leaves only sort of two major democrats that we haven't heard from yet. chuck schumer and hakeem jeffries, but of course, we have heard from both of their number twos and others in democratic leadership fully back and support them. only at this point it seems like a matter of time and this is just more momentum for kamala harris eventually becoming the democratic nominee and just now questions as it to what that process looks like for her to formally cinch the nomination. >> obama, too, though, right? he has yet to endorse her as far as i understand. >> that is true. i have my head up on capitol hill, but you're absolutely right. we haven't seen that yet from obama. i think there are a couple of other prominent democrats who have yet to weigh in, but really, you are seeing so much momentum behind harris at this point that you almost have to wonder who they would want to

endorse at this point if not her. >> fascinating. we will have the latest there on pelosi. let's get to bertha coombs for a cnbc news update. the israeli military ordered the evacuation of a part of gaza that it designated as a humanitarian zone as it plans an operation against hamas militants. israel says the militants have embedded themselves in the area to launch rockets. it comes as prime minister benjamin netanyahu is traveling to the u.s. to address congress and meet with president biden while ceasefire negotiations continue. california's largest trial court system remained closed today as it tries to recover from a ransomware attack friday. state officials say they believe the attack on the superior court of los angeles was not related to the crowdstrike global outage and a preliminary investigation showed no evidence that data was compromised. the court system is also the largest in the u.s. with 36

courthouses serving 10 million residents. and the united states postal service released a brand-new stamp today honoring legendary "jeopardy" host alex trebek on what would have been his 84th birthday. trebek died in 2020 from pancreatic cancer. the forever stamps feature the clas classic jeopardy-style answer. >> is it a -- 8-year-old kelly is freaking out right no. >> i would definitely go buy those. >> i think they're 73 cents now. >> is it that much? >> have forever stamps. >> see? that's a great investment. someone needs to run the numbers if you bought them ten years ago. thanks very much. bertha coombs. we're kicking off the busiest week of earnings season with tech, media and staples and we have it ahead of coke, spotify and nxp results and is it time for tech to bounce back?

one of our money managers says we're about to turn the corner on a serious rotation in the market. details next on "the exchange."

welcome back to "the exchange." tech is bouncing back after we saw that big rotation into value and one of my next guests says last week's move are typical for the start of the new bull market and see small cap outperformance ahead. joining me now is nancy prile and brian levitt is the global market strategist at invesco. welcome to both of you. nancy, i think that's you talking the happy talk about small caps in the market, is that right? some people think now it's over. it's over, but sticking with it. >> absolutely not. i mean, remember, we are coming off one of the most dramatic small cap underperforming cycles that we've had. in fact, it's the second worst period of underperformance since 1926 and one of the large nest relative underperformance. this rubber band was stretched incredibly tight with the move and away from small caps so even though the moves have been very dramatic and we would not be surprised to see it pause a little bit here, we think that the combination of ownership and

low valuations and better earnings growth coming will lead to what could be a very, very robust small cap cycle. >> brian? >> i'd like to comment to the pause and here is why. we look at the tactical indicators which is rolling over. growth is slowing globally led by some slowdown in the u.s. that's typically not a prime spot for small caps. now, the market got a little ahead of itself with expectation for rate cuts so you get a small-cap pop which was great. in the near-term, i would say i agree and it's more of a quality mega-cap type of world as the u.s. economy moderates, but we have to remember we are peak inflation, and peak rates and peak tightening and we will see the yield curve normalize and over the next few years small caps should do well in that type of environment. >> i think you're stretching to agree. i fail like you disagree. >> i'm not stretching to agree because i really do believe the normalization. the small caps need a catalyst. value needs a catalyst and so

right now you're not going to see growth go to a new level. so that catalyst doesn't exist. instead, what you need is we need to come through the economic soft patch and then be convinced that the feed has the yield curve without a recession. >> nancy, what do you think? >> well, i agree, we have the catalyst with the most recent inflation print that that was if you use the analogy with inertia body in motion staying in motion and that was the change in force that caused the shift in where the market is going. we also think that the fed will be able to engineer a soft landing. so i don't disagree that we're seeing some slower economic growth here. we think we are poised to see that begin to reaccelerate not necessarily this quarter or next quarter, but over the next couple of quarters as these lower rates take hold and as the lower inflation takes hold and very importantly, as the

fundamental forces of reshoring manufacturing and building out the power grid and the development of ai, et cetera, really continue to drive the u.s. domestic economy. >> i agree completely. and so, this idea of a soft patch where investors may need to be a little bit defensive here. i agree with it, but it's not the time to be bearish for markets over the intermediate term period and invests on are sitting here looking at 80 and 81 and they're looking at 94 and 95 and that was the soft landing example and 80 and 81, and you were thrilled and 94 and 95 you didn't have a recession and you were still thrilled if you had invested when inflation had peaked and the fed was done tightening or had backed off and to me, i know we're spending so much time to talk about politics and the focus kamala harris and

to me it's about the direction of the economy and what the federal reserve is going to do. the economy is slowing a bit here, but the fed will respond. so, you know, it will be a good backdrop for equities over the next few years in my opinion and it should broaden out as we get through the soft patch. >> will there be a couple of names in particular that you think can shine? >> there will be, and i will touch on that, but i would like to make one other comment that it's important to remember in small-cap investing that it is a part of the market where you do not actually want to be a massive investor. stock picking matters in small caps and finding companies with tailwinds and earnings growth that can outgrow is most important in that context. we are particularly excited about companies in the industrial areas and one of the areas we really like is the pfas for mediation and forever chemicals and that's a part of environmental clean air, environmental spending that is bipartisan. everybody wants clean water and

so clean harbors and that is a good place on that and we like health care as a place that has lagged. >> because we have a pfas problem, so we can't buy individual stocks, but if i being i would want to own them from all of the drama to clean this up and clean harbor, i familiar with them and this comes to secular stories. >> nobody wants forever chemicals in their water? >> no, we don't or the expensive -- and a few people to do their research. thank you, both both. brian levitt on these markets. crowdstrike lower again and the worst performer in the tech sector as the massive outage lengtherers saying this tee key is key on to, and it is up 22%

from last week. we'll be right back. ♪ like you never did see... ♪ ♪ now the cloth is strong ♪ ♪ stronger than the flames ♪ ♪ the flame is in the heart ♪ ♪ and the heart is in the work ♪ ♪ the work builds the life ♪ ♪ where we're safe at home... ♪ jpmorganchase invests in manufacturing to help create stronger communities. ♪ make the green grass grow all around all around ♪ ♪ make the green grass grow all around ♪ ♪♪

we are still seeing green across your screens today with the nasdaq leading the way up 1.6% and dow the laggard about in the middle of the range at 109 and don't sleep on the ten-year at don't sleep on the ten-year at 426, by the

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only xfinity gives you the most powerful mobile wifi network, with speeds up to a gig in millions of locations. and right now, get up to $800 off the new galaxy z flip6 and z fold6 when you trade in your current phone. get the fastest connection to paris with xfinity. welcome back. we have semis, songs and soda. with reaction and the trade on the semis, on spotify and coca-cola. here with the trades is the founder and cnbc contributor. the grab bag. it's great to see you. let's start with nxp. it's up 20% this year. the semis are broadly higher after notes on nvidia. they are working on a correction

for nxp down the line. what can you be doing with the stock here? >> a cautious buy for hme. you're looking at the end user for a lot of the products, there's demand struggles. and demands going at in 2023. we've seen the challenges and done a job of inventory. look at the distributors. the distributors see 2 1/2 months of inventory on-hand. they lowered that to offset the decline, as remedied by the peers. if you look at how the stock has moved, it will be a cautious buy. nxp is in the job of mitigating the risks. >> how about spotify? they are up 72% in the year since. deutsche with positive listenership. expecting spotify's contents investments on cash flow, a

number of interviews here, with the audio book bundles and that kind of thing. is this a buy for you? >> it's a buy. that's why i'm holding. the numbers last quarter, really strong. year-over-year growth, with the supported subscribers. one thing they focus on, the content, the executionible strategies for margin and cash flow. i like spotify here. if they do a good job of negotiating better terms in the future, that's something that investors will have to look at, that will bode well and they can submit the costs, around $9 billion in 2023. >> true. it's a steady performer, continuing to be steady. finally, coca-cola. they were on pace for their tenth-straight positive month. a 52-week high. they haven't missed in 20 quarters and it feels like the same period of time.

jpmorgan shifting from volume to value. and it will buoy slowdowns and domestic sales. i can't believe they are turning in consistency like this. everything we know about coke and soda, and they don't have the snacks business that pepsi does, do you like the stock? >> i do like the stock. one of the ones you want to have in your portfolio, to offset some of the growth things in your portfolio. it's been increasing. one thing i like, if you electric at north america organizic growth, pepsi, keurig, dr. pepper, it was tough to have growth on that side. if you look at what the margins have done, it's focus to peers a lot higher. that's a good play for investors. and with products, done a good job of getting rid of those. >> managed to do it.

mbs.l see if they do it with nuer thank you. that does it for the exchange. "power lunch" is next after a break. they wear business sneakers and pad their keyboa as muc. you need tamra, izzy and emma. they need a retirement plan. work with principal so we can help you with a retirement and benefits plan that's right for your team. let our expertise round out yours. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought

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