time for "final trades." bryn? >> free port-mcmoran. >> josh? >> pfizer, above $30. >> blenda? >> danaher. >> bill? >> uri. >> "the exchange" starts right now. >> thank you very much, frank. welcome to "the exchange." i'm kelly evans. and here's what's ahead. was yesterday's selloff a healthy correction or reason for concern? one of our guest says the rally is in tact, but it will be hard to make new highs until one thing happens in particular. he'll tell us what that is. and gene munster says the pullback creates a great buying opportunity. we'll talk to him about that.

three more names on deck to report. in a sector of have and have-nots, later on. dom chu has the numbers, and we are seeing a bounceback. >> i'm going to put nit perspective. it's grown across the screen, and we are just about near or at session highs. the dow is up 491 points, really the outperformer today, up about 1.25%. 40,3 ha. the s&p is at 5478, almost 1% gain. but yesterday we lost 128 points, so we have got an fraction of that back in trading today, up about 52 of those. so the nasdaq composite, up about one pulper sent, as well, 17,500 or thereabouts is the nasdaq. threematically speaking, airlines are in focus. skies were turbulent and getting friendlier right now. american airlines and southwest, two of the names that are

outperforming today. american airlines, the earnings report was generally good. they cut the full-year forecast, but still with southwest, better than expected earnings report. a lot of investors trying to figure out the worst for some of these airline stocks is behind them. by the way, southwest is going to end open seating. so that's another headline there. jetblue caught up in that upward move for these stocks, so keep an eye on these friendly skies. and then in the opposite direction, on the ground, ford motor. those shares are plunging by 16% right now after a mixed earnings report. earnings came in better than expected. they did incross their free cash flow forecast while affirming, just affirming their full-year profit forecast. that was a little disappointing to some investors to the tune of 16%. but still, ford, autos and airlines, i feel like i should be phil lebeau at this point, but those stocks are the ones to watch. >> you are on his territory. dom, thank you very much.

a torrent of economic data out this morning. senior economics reporter steve liesman joinstous break it all down. steve? >> hey, kelly, good amp. second quarter gdp surprising to the upside. all while consumers seem to be hanging in there, and business spending looks to be an unheralded economic bright spot. here's the data. second quarter gdp, 2.8% above expectations, higher than the 1.4 in the prior quarter, but not as great. consumer spending, that's a healthy number, up from the lackluster first quarter. business spending, 5.2%. that's up three quarters in a row. pce inflation, down and down big from the 3.4% in the first quarter. now, while the economy and the underlying fundamentals look healthy, i don't think that the fed is going to get too concerned about the growth acceleration. a big part of this upside and

surprise was an inventory swing that made q1 look worse but added 0.8 percentage points to q2 gdp. while the single quarter number shows the economy speeding up, better way to look at it, the two-quarter average shows a slowdown from that rapid growth where we closed out in 2023. the better inflation numbers make more sense in the context of a slowing economy. well, the data prompted markets to reduce somewhat the probabilities of rate cuts. but futures market remained priced aggressively here for the remainder of the year. september, 100% probability of a single cut. november, 69% probability of a second cut. december, 64% chance of a third cut. i would say it would be a bit ironic, kelly, after all of this year, if the fed ends up at three rates it forecasted tat beginning of this year. >> wouldn't that be ironic. steve, thank you. now to the discussion on the economy and the fed.

my next guest have similar sounding names but different views on what the fed should do. joining me now is richard burnstein and brian weinstein, head of global markets at more gap stanley. great to see you both. brian, you think they better cut quickly or they're going to be behind. >> well, listen, kelly, we've been on this show talking about this all year. you're finally seeing evidence, we know inflation has gone down. we have to change the story. growth is slowing now. so the fed needs to calibrate. they don't need to start a 100 multiple base cycle, but they need to show the market, 5.5% is a little too high, and i think they can come down, probably not jowl. >> rich, why doesn't that sound reasonable to you, especially september? >> well, kelly, i think two things. number one, you have to remember

wall street, we're liquidity junkies, right? we can never have enough liquidity. so every opportunity we get to suggest that the fed should be cutting rates, we always say the fed should be cutting rates. that's been the story now for a year plus. and so that's the backdrop. number two is i think we have to step back and say is the economy weakening enough for the fed to really decide to cut rates here? is there a scarcity of capital? is is lending starting to seize up? is the banking system weakening? you put that in contrast to the november election. now, the fed never really pays attention to the election, and rightly so. but in the absence of a truly weak economy, why would they stoke the issue of fed independence prior to the election when they don't have to ease? there's nothing here saying that there's a dire need to ease.

>> are we conflating, rich, a weak economy with needing to ease, when they could ease because of lower inflation? it's the same old thing they've been talking about, if inflation comes down and you don't lower the policy rate, you're tightening. >> well, to some extent, that's absolutely right. but if you look at some of the leading end kay fors that caused the inflation problems last year and the year before and the year before that, if you look at container rates, you see rates skyrocketing. supply chain disruptions are not over, in fact, they're coming back. so what's the rush here? >> let me come back to this with a new data point. we know it's within a weird week for these. rick santelli, how did the auction go? >> well, you know what? all that green in equities put all the investors in a pretty good mood, because they really like the seven-year auction. they were grabbing them like

french pastries today. we're talking about 44 billion seven years completing 183 billion in coupon supply. the grade i gave it, a-minus. if you look at all the eternals, the bid to cover, the best since october of last year. the indirect, best since august of last year. the dealers took the smallest amount since june of last year. the only fly in the ointment was a bit light on direct bidders, you know, the pension funds, the insurance entities. but those whichentities would r have tens and 30s. but it really was a good auction. i think yesterday's auction was weak based on the equity markets putting a bit of fear inside the investors. today, it was the exact opposite. seven year is always a bit of an oddity on the yield curve. it's slowly starting to build enough pool of liquidity to be taken seriously, but it was a very good auction. and it underscores the give and

take in the marketplace from the change in the equity perspective in 24 hours. the yield curve is still the least inverted it's been in a while, but you are seeing a flipping where the two year is closer to unchanged, and the long majorities have more buy pushing their yields down, the exact opposite of yesterday with less intensity. back to you. >> i was going to say the same thing. the 30-year is unwinding much of that move. thank you, rick. brian, i was going to ask you about that. i wanted to say what's going on with the yield curve, why the steepening, is it the yen, is it dudley, and now as i'm asking the question, it's starting to unwind some of that move from yesterday. >> yeah, i think richard is on to something. we are liquidity junkies. the fed is going to ease once, we're just calibrating, kelly. so what's happening with the yield curve, what happens when we know the fed is going to go, so i think they go in september. and then you throw in uncertainty, right?

25 basis points, does it matter amongst the political shenanigans we're seeing? i don't think so. so the fed has to ease. we know the fiscal story is getting worse and the candidates aren't going to stop spending. so you put election trades into play. i do think it's easy not to own the long end when you have the uncertainly, more easing, inflation likely to tick up, the containership pricing. you do see signs that inflation is not going back to 1.5. so if the fed is not going to 3.5, i think we've done the right thing. it will be harder from here. i just don't like the long end of the yield curve. it's the wrong place to be. >> i appreciate that. that's what rick was saying, you don't think it's fiscal or inflation, steve? >> i just think that there is a decision that average investors have to think about here. you're looking at -- let me just

give you the right number here, i have to put my glasses on. a 4 to.22 ten-year. how long are these rates are going to be around for? i think brian has the right question, i'm not sure he has the right answer. i think if you ask brian, he would acknowledge some doubt here, how do we rotate here given if the fed does some of these rate cuts? what happens to the long end? what i mean is, the bottom line here, are you going to look back on this moment and wish you had locked in some of these higher long-term rates? now, there is, of course, money to be made by playing the short end, because that would be the one that would move the most. but you may not end up with these rates by the time all of that is over. i just wonder if you look back at regret not having take an piece of some of these long rates here. >> brian, you can go ahead.

>> well, listen, it's fair. we can certainly rally here. i would say 3.90 on the ten-year note is where i would want to be. i don't think it's the beginning of a big long-end rally. the money goes from market money funds into five-year treasuries. i just don't think you'll see the rotation all the way up the yield curve. i like credit, i like moving out from twos. again, steve could be right. the long end could rally, and no question we've seen lower rates than this. i'm just not in this camp. >> that means the mortgage rate will not fall precipitously, which is a problem, as well. >> kelly, i would -- >> yeah. >> i would just offer one other idea, which we've talked about. the spread of the 30-year mortgage over the ten-year. there's room for that to come in, even if the ten-year doesn't fall. the mortgage rate is trading very expensively relative to the

ten-year. >> it is. i'm just wondering how do they do that without -- given their priorities on the balance sheet and all the rest of it. maybe, rich, we'll give you the last word here to bring this together. soz >> kelly, i think the thing that's missing from most discussions is where is the scarcity of capital, where is the tightening of credit conditions that would force the fed to cut rates? i get the issue about inflation, i get all of that. but let's remember the key word is the fed is a central bank. and without credit tighteni ing i'm not sure there's a need to rush to cut rates. it's the central bank and lending and credit is key for them. lending hasn't gotten tight at all. we know how many private debt deals are going on. where is the tightness in the credit market that says they

should be easing? >> is there any argument to be made for getting in front of it, making sure we don't get to a point of tightness? >> well, certainly. but i think you would want to see leading indicators rolling over before making that move. and right now, leading indicators are troughing. so, again, you know, the fed's going to do what the fed's going to do. they're not calling me up asking whether they should ease or not. but if i were jay powell, i would be giving this a lot more thought than i think wall street is giving -- is thinking about it right now. >> jobless claims are better. they're doing that summer seasonal thing again. gentlemen, thank you all today. appreciate it. i want to draw your attention to shares of uber and lyft, which are higher on reports that california's supreme court has upheld prop 22. it's that 2020 ballot measure treating the drivers as independent contractors. we're seeing not much move in

the shares, which have already had to contend with this reality. the supreme court upholding that va ballot measure. my next guest says the nasdaq's 3% drop yesterday is a buying opportunity, and he's eyeing one group in particular, aggressive spending plans. let's bring in gene munster. gene, okay, let's rewind. tell me the story of the 24 hours that goes back to alphabet's earnings and what happened to the market and whether it was justified. >> so, alphabet didn't give any new incremental data points about the progress that ai had made over the last three months. that spooked investors. they had rolled out their generative sear to have the u.s. and uk, and investors were hoping they were going to say something more around the mon teization piece. they said that cap ex would be

above what it was in the first quarter, so some were reading that would be a slowdown, so that combination really spooked the ai trade. so i think that was the genesis of this pullback. it kind of gets us to down 8% or so from the july 10th high, at least for the nasdaq. not similar to what the pullbacks we had, kind of during '94 to '99. but to answer your question, kelly, that was the reason for the pullback. >> so that's a good setup for what you're going to say next, about where investors should be looking, and why you have confidence that this pullback was, i don't know if we would say undeserved but not something to worry about more broadly in your opinion. >> exactly. and so think about the ai trade in terms of these segments. i think the next one to two years, it's all about cap ex. they need to continue to invest to stay relevant. last night, zuckerberg was on a

podcast. he said if they don't keep spending in ai, they may miss the biggest opportunity in the next 10 to 15 years. they may overspend, but they cannot slow down. so i want to zero in on that cap ex piece because it's critical. as long as the infrastructure is being in place, as long as these big tech companies continue to invest, which i think they will be spending more than what most investors believe over the next couple of years on cap ex, as long as that happens, number one, the chips, the hardware companies will continue to work, and separately it lays the foundation for the applications to work. we saw a bright spot in service last night. so i'm most optimistic, because that cap exnumber, if i was going to boil it down to one point, it's going to be higher for longer, and that's good for ai. >> so as investors think through their portfolios for the next year or so, do they leave mega cap in there, or do they move to the sidelines, maybe go with the beneficiaries of the spend and

wait to see how it works out? >> well, if you believe -- i mean, there's just a central question that all investors should ask is, do you believe or to what degree do you believe ai will be transformative? if you're in my camp, which it will be more transformative than the internet, the small and big companies are going to participate. so i think the answer from our perspective, when we think about our flagship tighten fund, on the -- the best position company is google, the only one with a foundation model, and so kelly, to answer your question, both are going to work. if this ai ends upcoming close to what some of the hype is, i think it will exceed it. we'll see a three to five-year bull market that will end in a spectacular bubble burst. but we have a lot of opportunity between now and that three to five years. >> it's so interesting how we're aware this is the case, yet like you said, if it ended now, the

history books wouldn't recognize it as a bubble. gene, thanks. appreciate you checking in. speaking of tech, don't miss a rare interview with the head of whatsapp next hour at 2:00 p.m. eastern. coming up, the spread between small caps and the mag seven continues to widen. after the break, bank of america tells us how they're positioning. plus, we talked about silicon valley's tilt for the trump campaign, prior to harris' move. now dozens of allies in financing, including big names on wall street, are doubling down on efforts to get her elected. and here's another check on markets, which are near session highs, with the dow up 1.3%, or 504 points. the russell 2,000 up 2.5%. the nasdaq and s&p up a little over 1%. back after this.

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welcome back to "the exchange." small caps are on a tear, rallying about 10% in the past month, but my next guest says they are no longer cheap, and the next leg will require strong earnings. joining me now is jill

carrie-hall. you're like a celebrity this month, jill. lots of questions i can imagine. welcome. >> thanks for having me. >> what do you say to the tourists who are suddenly all over the small cap space, what would you tell them? >> look, i mean, i think there have been a lot of positive drivers for small caps, and you know, when we had gotten more cautious on the russell back in the spring when we continued to see, you know, higher than expected cpi data, a lot of investors were looking to the fed as one necessary catalyst for the russell to continue to move higher. we've seen some sustainably lower inflation prints, more confidence that the fed will cut, and we saw that in performance. when you look at the russell, you've seen highly leveraged stocks as the best performers. we've seen a general risk on, we've seen some short covering, and the technicals are positive,

and we started to see some inflows. so i think there's a lot that is still supportive, but i think as you mentioned, what a lot of investors are now focusing on is earnings. you know, we have seen a profits recovery start to take hold within the overall u.s. but when small-cap profits get hit harder, they bounce back faster. we haven't seen that this time. since the start of the year, estimates have been cut lower and lower. >> if people are curious about the valuations, you have some good data. the russell 2,000 is trading at 15.5 times forward earnings, which is more or less the historical average. the only place it's cheap is next to large chaps. so you might argue, well, do they have to revert lower, is it possible they revert higher, but you're not looking for multiple expansion here. >> when you looked at the recent rally, it's been all multiple expansion since it's been revised down further. small caps are no longer cheap

on an absolute basis. but they're certainly pricing in, starting to price in more good news. they are still very cheap versus large caps. a little bit less so when you take out the magnificent seven, but trading at a discount. valuation tends to matter the most over the long-term, so if you have a ten-year time horizon, that tends to be highly explanatory. so i see small caps as offering better return potential over the next decade than large caps, especially after the decade of underperformance that we have seen. and i think there are some positive medium term themes. cap ex recovery in the u.s., reshoring, these are positives. but near term, if we want to see the rally continue, investors are going to be focused on whether this very back-ended loaded profits recovery can come to fruition and focus on guidance, because so far the trends within small caps have been much weaker.

>> and my final question would be about that, and i should mention you're also interested in european small caps and more value areas, if you wanted to get specific. but on this profit and earnings question, what are your expectations for the next 12 months? >> i think initially, at the start of the year, when you look at what analysts were expecting, they were expecting by this earning season, small cap profits would have recovered positive and would have been outpacing large-cap profits growth. but small-cap profits growth is still very negative. when you look at the s&p 600 consensus, it's down year over year across the board for most sectors. guidance is still below cons consensus. and when you look at the proportion of beats, we've seen a healthy proportion, but most companies are still not surprising to the upside on sales. so i think if we can see a beat and raise quarters, we can see commentary more positive within

small caps, giving investors confidence that the big back end loaded profits recovery isn't just an unrealistic hope. so it's a good time to be selective. there's still a lot of opportunities within small caps, as you mentioned, within value stocks but ones that have positive rather than negative revisions, profitable companies. even amid the recent risk rally, you saw stocks of positive estimate revisions among the top performers. so i think there is that focus on the fundamentals. >> some words of wisdom and a good reminder. jill, thank you for your time today. >> thanks. speaking of small caps, value stocks within the russell like she said are outperforming their growth counterparts over the past month, but you have to look with the ones with the actual earnings. russell 2-k, more than two standard deviations. this spread has widened. the small-cap growth down more than 6% and value up more than 4%. still to come, the

semiconductors unable to rebound from yesterday's selloff. check out the declines across amd, asml, qualcomm, taiwan semi, upwards of 20% for amd. it doesn't stop there. it's not in the smh, but down 21% in the past two weeks. lamb, nvidia, broadcom also down between 12% and 18%. we'll get more of todd's biggest movers when we come back.

welcome back to "the exchange." markets are positive. the russell is not here, it's the leader, the dow is up 429 points, somewhat of a rebound from yesterday, but the nasdaq only up half a percent. here are some of the names hitting new multiyear lows today. lulu lemon, it's been a struggle for this one, down 9%. las vegas sands, down half a percent. lamb weston, after that horrendous day yesterday, down another 2.5% today. again, the french fry restaurant

trade not going so well right now. wynn resorts up fractionally, nooik, nike, as well. raytheon hitting an all-time high today, up 10%. and let's get a check on the ipo of the day. lineage is one of the world's largest temperature controlled warehousing and logistics company. making its public debut top of the hour, just now shares priced at $78 last night, opened at $82, so it's been a decent year for ipos and lineage will continue that lineage, you might see. now to bertha for a cnbc news update. >> i see what you did there. pro-palestinian protestors are gathering near the white house, where joe biden is meeting israeli prime minister benjamin netanyahu. it follows yesterday's protest outside the capitol with netanyahu's speech to congress. harris will also neat with

netanyahu this afternoon. the california supreme court upheld a gig worker law. a ballot maesher in 2022 allows more than a million drivers to be classified as independent contractors rather than employees. that passed with 59% of thte but challenged in court. and the u.s. figure skating team has been officially confirmed as gold medalists from the 2022 beijing olympics by a sports court ruling. the judge's dismissed russian appeals to be reinstated as the team event gold medalist, which it lost following it star stater's disqualification in a doping case. the u.s. team will receive their medals in paris. so you get a winter sports team getting their medals at the summer olympics. >> better late than ever, but they missed all of the attention that could have come.

bertha, thanks. >> at least they get to go to paris. coming up, former president trump making gain in silicon valley, and dozens of harris' allies on wall street are doubling down. and as we head to break, take a look at the worst performers in the s&p, including lamb weston. crowdstrike after its massive i.t. outage, and lkq. back after this.

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welcome back to "the exchange." change research's latest poll is showing a shift in the race for the white house. the survey conducted after joe biden dropped out of the race has harris taking a slight lead over former president trump, and she's gaining traction with donors from coast to coast. cnbc.com reporting she's on track to raise over $100 million from the tech community alone and had a call with wall street heavyweights. brian is here with me now and so

is james. great to have you both here. brian, just jump in and add some extra detail here. >> we've been saying it, and i'll say it again, the donors are coming home to the vice president. the reality is, this is a look back and look forward story. weeks ago, i couldn't take a call from any of these people who were not upset with joe biden's debate performance. now that he's endorsed her, the money is flowing in. as of today, a democratic online fund raising platform has processed over $200 million since sunday. >> the biden administration was raising like $100 million a month. >> thereabouts. this is unprecedented. i don't even have a number to contrast it with, because -- >> how does it compare to trump? >> i don't think donald trump or any other campaign to my knowledge has raised that amount of money in a matter of days.

that is -- by the way, the campaign is saying they raised over $20 million. the $200 million is spread around, so the money has been pouring in -- >> so the democratic party in general, any number could be local races, it could be causes. >> that's right. and so that's just -- the harris campaign, they're saying they raised over $120 million. and the meetings that we're hearing about that you alluded to in your introduction, speaks of that. these are some major financiers on wall street who met with a member of her campaign, rufus gifford resumed a call yesterday. what the talk of the town is how they could raise money for her. the same thing has been going on since then and before that call. it's been the steady drumbeat of people being invigorated because joe biden is off the ticket and harris is now leading. >> jimmy, i would love to know more broadly, but there's been a lot made of her, the xipt about her on tiktok. i wonder if that's the same phenomenon as the trump campaign

using facebook very much to its advantage back in 2016. >> yeah, i think that's a great comparison. i think there's no doubt that already the harris campaign has been more effective on that very important social plat toplatfor think that's a big plus. she's still going to have to raise plenty of money for more old fashioned kind of campaign. and even more so than donald trump. she's going to need that money to define herself. i think -- listen, people have very firm opinions on donald trump at thi she? is she going to be another version of joe biden? is she going to be more sort of the senator harris who is to the left of joe biden? she needs to define herself and she's going to need that money to do so. >> so her statement about israel yesterday was quite interesting.

it was vehement. chuck todd, i was listening to his podcast, said trump could replace vance on the ticket if he so chose. it's not necessarily a done deal. he made that pick before she was who he would be running against. i wonder if he would change it now. >> he might have picked someone different. but what's the wrap on donald trump, and the democrats that he's the chaos candidate. that if you don't want more chaos, don't vote for donald trump. replacing the vice president after the convention in reaction to what the democrats have done would make him look weak or silly. again, it looks like the gang that can't shoot straight. saying this, hei would expect h to keep jd vance as his vice president. >> what then are your thoughts for investors about the way this

race is shaping up thus far? >> listen, it wasn't long ago a lot of investors thought not only were they going to get a president trump second term, but a republican senate and senate house, extension of tax cuts, deregulation. silicon valley folks, some of them are giving money to donald trump because they like the deregulation. they don't want a lot of heavy ai regulation or lighter than they'll get from biden or now from harris. so that was the situation then. now i think, you know, the situation is like -- you might get a president harris with likely a split congress if she should win. what does that mean? are we going to get bipartisanship, gridlock, an extension of the "inflation reduction act"? i think it's a far more uncertain environment than what seemed like two weeks ago when it looked like republicans

across the board. >> normally markets don't like uncertainty, but markets do like gridlock. if it's shaping up -- if jimmy is right about the way this shapes up, it's the kind of status quo that goes over pretty well with markets. >> that's right. i think what jimmy touched on also was this question of policy of what the vice president's policy is going to be looking forward. >> harris? >> the vice president, harris, yeah. there are questions about that among donors. that came up in the call on wednesday with the harris campaign. these questions of exactly where does she stand on tech regulation and the economy. harris did talk about raising the corporate tax rate to 35%. she's said that. so now the harris campaign is going to have to think about, how are we going to formulate the new policy proposals moving forward? and why does that matter? these donors have to go to their networks and say look, these are the policy where is she stands today and try to raise money that way.

they don't have those talking points or points that they can take. >> that's a great point. we'll see who she picks vice presidentially speaking to give those hints one way or the other. thank you both. appreciate it. coming up, shares of tesla are higher and good for about 20 points on the nasdaq 100 after dragging tech lower yesterday. tesla still down about 6% on the week, while the smh is up more than 3% this week. we'll talk about what's driving need these head winds when we come back. daughter: it's a lot of fence. dad: you wanna help me? dad: aim at the wall, but get closer. daughter: (gasps) what the?! daughter: alright. dad: side to side. when you work with someone who knows a lot and cares even more... you can do this. ...you're unstoppable. (♪♪) wow... are you kidding me? you can do this. at truist, we believe the same is true for banking.

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way. cirkul, available at walmart and drinkcirkul.com. welcome back. as you heard earlier, it's been a tough couple of weeks for semi. what can you tell us? >> well, chips have been riding

the ai wave this year, kelly, but with the recent selloff, artificial intelligence beneficiaries, quid pnvidia, qu, are well off their highs. some debating whether the selloff is justified given that ai is where these companies are seeing growth. last night, i spoke to ibm's cfo who said while i.t. spending and the environment is strong, he's seeing clients divert money away from discretionary spend and to ai, topping $2 billion, 25% coming from software. service now ceo underscored that point, saying enterprises are investing in business transformation and they're investing in ai. next week, we'll hear from nvidia's ceo when he sits down with meta's ceo mark zuckerberg on monday.

and amd, intel, arm holdings later in the week. am analysts say these report also give us some end case whether ai spending continues and whether the market thinks these stocks should be trading at a premium. strategists say they're still positive on the semiconductor sector, but becoming a bit more cautious on the non-ai chip names like the equipment and analog players. kell? >> we were just talking about that with gene munster. he mentioned service now in his podcast where zuckerberg talked about how they have to spend and not fall behind in the next 10, 15 years. >> yeah, that seems to be the case. the demand is continuing to rise. you're seeing venture capital firms buying nvidia chips and renting them out to portfolio companies. there was a story about them using that strategy. and then there's china, that continues to buy nvidia's older data chips, even though they

have huawei trying to make a competitor on the ground. >> enough to be green today. thank you so much. we appreciate it. coming up, we have the action, the story and the trade on reits, running shoes and rails in running shoes and rai in today's earnings exchange. that's next after the break. ♪ (alarm sound) ♪ amelia, turn off alarm. amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen. ♪ (suspenseful music) ♪ why not? did you forget something? ♪ (suspenseful music) ♪ my protein shake. the future isn't scary. not investing in it is. you're so dramatic amelia. bye jen. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

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welcome back. reits, running and rails all reporting after the bell. let's get to the action. deckers and nor folk sovereign. great to see you, ari. looking for commentary on the key tenets. what would you do with it here?

>> i would start off saying, the cleanest shirt in a dirty pile of laundry to use that cliche. we're continuing to recommend underweight exposure in the sector. i think the trend of underperformance is impact. with that said, the best of would be digit at realty, for a key on relate eits, it's the stock to own it retraced a bigger portion of its market. it's right into the 50-day average at 149. we'll see how it responds to earnings, but there is a bit more down sight, even to 146 topped-out headwinds, but an up trend nonetheless the ceo, by

the way on power will join us tomorrow to discuss those results. we're looking forward to that. decker, hoka and ugg on owner, concerned about traffic and brand strength. tell me, hoka is not over, ari? >> no, we're more upbeat on this one here. consumer discretionary is a whole market weight on it, it's a sector the haves, and have-nots. it's a stock that's become tactically attractive, down over 20% from the early june peak, the key being it's coming off a position of strength it's maintaining the support levels in proportion to the strength going into it that 200 day

alternate 803, some people may want to wait for some signs of stability. skechers also reporting after the bell, and a pullback trend as we see it. a partial victory in a fight against the ceo gaining three board seats, but falling short of the seven-seat goal. morgan stanley noting lower revenues. the stock is down 4% year to date. what is going on with this one? i think the sector neutral call is for cap goings over

transportation, including the rails, which is injure trendless. i think the key point for us is it underperforms. that would mark a higher high, but, again, on a relatively basis still weak. there we'll leave it, ari, thank you so much. we look forward to seeing. "power lunch" is up next. i'll seal you on the other side of this quick break. your record label is taking off. but so is your sound engineer.

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lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance. welcome, everybody, to "power lunch" form she's kelly evans, i'm dominic chu. ebbs and market flows, investors still digesting yesterday's breakdowns in technology stocks. we'll discuss. he's the ahead of whatsapp. he'll join us live to tell us what we have learned. let's get a check of the markets follows the nasdaq's rough day. >> most of those mag