ed yardeni says we have an insu inflection point. what is your wex word of the day? my word is recalibrate. there are reverberations and ripple effects from that. if you see follow through, look at the s&p 500 and it is trying to bounce back. the russell 2000 is up 1% in the pre-market. you till cwill continue to see taking from the mag seven. if that turns into reshuffling, nvidia is in over 500 etfs. that recalculation will continue. >> you did recalculation of your own. you bought the small caps a couple days before the cpi report. what is your outlook on small caps? tom lee saying it could rally 50% this year. he said that recaller. earlier. >> we have been chomping at the bit with the russell 2000. we did take an allocation. we did get excited on the fact interest rates will move lower. i'm not optimistic interest rates are going under 4%. i like small caps because they have been left out on the street. if you look at the longer chart, one-year, three-year, ten-year, it is a laggard. that will be contingent upon further profit taking in the mag seven. >> jeff, t

ed yardeni, the thing is, ed yardeni research president, ed, you're becoming more bullish.very time i read your work it feels more and more exciting. do you at least expect the rally to broaden out a little bit here? >> yes i do, actually. i think, as a second-quarter earnings reports come out, i think more and more companies are going to surprise to the upside and more importantly, i think more companies are going to start talking about how a.i. is actually, not theoretically, actually reducing their costs and increasing their productivity. so i think to the extent the market has been led by a.i. stocks, particularly the companies that make the shovels and picks like nvidia i think it is going to spread to a broader section of the market as we realize that artificial intelligence combined with robotics and automation and other kind of technologies that we have today can actually have a significant impact on cutting costs, increasing productivity and boosting earnings. charles: often when i hear productivity it sounds like euphemism for we were able to fire a lot of and pro

ed yardeni joins me now. welcome back. >> thank you. >> cpi better than expected. yields fall. parts of the market going up sharply today. what do you make of it? >> the bull market is broadening. there were concerns it was narrowing to the magnificent seven. today's an important day. this is the day where investors are starting to rotate out of the magnificent seven into the rest of the market. i don't think this is going to pull the s&p 500 down. i think there's enough money to keep the leading stocks that have done so well fairly elevated, but i think we'll see more gains in the s&p 493 as well in the mid caps, the small and middle mid cap stocks. >> this is the start of something. that's been the great debate, when this broadening would happen. there has been teases before. you think this is legit? >> i think it's legit partially because the fed has changed my mind in terms of where interest rates are going. we still think that the economy is is doing well enough with inflation moderating that there's no reason for the fed to lower interest rates. jay powell made it clear t

ed yardeni, byron york, greg valliere, jim bianco all on deck. plus is the small cap rally over already? investors seeking the comfort of megacaps which have been a tonic all year long. gary k, whether it is time to dive back into big tech. don't forget about the economy. it seems to be falling faster than the fed will admit. that begs the question. why aren't more market mavens talking about recession? one of the street's economists provoke thinkers about everything. my take on the shopping experience that is a lot different than what we were promised. all that and so much more on "making money." ♪. charles: all right, folks, it has been a tumultuous two weeks for the market. the only thing anyone really had on their bingo card the chance that president biden would drop out of presidential race. now the political landscape must be refactorred into market assumptions. investors grappling with number of things. bankrupt shaft to megacaps from small caps. market valuations, whether earnings will live up to the hype. the lingering effects of the cro

joining us now ed yardeni, president of yardeni research.stic. you think we may have seen the highs in the s&p now for a while, but nothing to get too concerned about. why? >> yeah, well, look, there's a lot of reasons why the market churn should move sideways here for a while. i think we've discounted that earnings are certainly doing well. the analysts are expecting that earnings will be up 8% on a year-over-year basis during this second quarter earnings season. we're expecting 10%. we think they're coming in reasonably well. in addition, i think the markets discounted the fact that the fed will most likely cut the fed funds rate in september, and that might be one and done. i mean, i know that there's a lot of people talking about more, but the economy's performing awfully well, but the big risks out there remain geopolitical. the crazy headlines today about turkey threatening to invade israel. i mean, just crazy stuff going on in the middle east, and the market so far has just blown it off and focused on the domestic situation. but i'm w

plus, ed yardeni is standing by to break down the closing moments of the session. okay, team! thank you so much i couldn't have done it without you. honestly, i don't do a whole lot here. i'm really just here for the at&t internet, it's super-fast 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? the network can handle it! i downloaded eight hours of true crime stories just during our last video call i'm learning a lot power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley power e*trade's easy to-use tools make complex trading less complicated. custom scans can help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley >>> we are now in the "closing

jonathan: ed yardeni.nough for flights which i'm struggling to get my head around. i am still struggling with that one. the airline's capacity has gone up too much, flight costs have gone down, then we see the seed is in atlanta with all of the canceled flights. these planes have been packed all summer and i did not see a real identifiable drop in ticket prices. lisa: not when you look at certain popular routes. we look at certain domestic routes that is what people are saying. you see that when you look at pretty esoteric cities. you can see the prices go down more significantly. i will not share those. jonathan: you can share that in the commercial break. equity futures on the s&p positive .1%. let's get you an update on stories elsewhere. dani: gm shares higher 4.6% in the premarket. they topped forecasts. profits surged 60% from a year ago thanks to demand from its gas powered pickup trucks and suvs in the u.s.. on the other hand there was a slowdown in sales growth for eb's which are losing money. it

we did not mention ed yardeni, long-time constructive bull, taking his year-end target to 5,800. >> heoes use the word melt up. i guess it's two words. it's continuing melt up. i just they that -- what can i say? it's one of the greatest markets ever, and i think it should be celebrated, because a lot of it -- yardeni talked about that in the piece. a lot of it is a.i., but yesterday, if you look at what happened with intuit, i said intuit is legislate people go and moving people around because of a.i., and a lot of people were saying, no, they're being hurt by a.i. but a.i. is so front and center, actually happening right now, and my prediction is that the company that would benefit the most from a.i. is? >> nvidia. >> no, they're the -- i meant a customer. >> oh. >> jpmorgan. >> that was unexpected. >> what? >> why? >> because jamie dimon's going to spend more time with nvidia than any ceo in the country. >> there's been a lot written the last few weeks about a structural rerating in your cost basis and banks, and what that means for return on capital. >> well, that's why i keep thin

ed yardeni will be here to discuss. >>> we start with the russell today which is ripping to say the leastld be the best day of the year for small caps today after that softer than

so cicero, francesco yardeni, james harrington and they agreed with the more or populist republicanshat economic wealth often translated into political power where they differed though what you do with that so the aristocratic types generally argued and john adams follows them closely you want to make sure that you have a one particular chamber reserved to those who are wealthy and a different chamber for the people. and you basically create political systems that are structured along class lines. the more egalitarian or populist, if you want to call them that, generally look for ways minimize some of those class differences. so so the the the gracchi and machiavelli even and i think this is the strand that jefferson to follow and when he talks the avoiding an agrarian law he's talking about avoiding some of the more heavy handed measures that you know americans at this time would have known from the reading of history. so the purchase of louisiana for him i think critical to maintaining republicanism in the united states at large it was basically to off some of the commercial that h

joining us this morning is ed yardeni., carl. >> took note of your note last week where you went to 5800. used the word melt up. has any of that changed? >> no. looks like we had a melt up but also a broadening melt up. in the late 1990s we had a melt up that stayed focused on the technology, this time around the melt up in technology and communication services at least in the past week as you folks have noted seems to be broadening out to the mid caps, small and mid cap companies, and i think that was very accurate in pointing out it has been some short covering and a concentration in biotech and regional banks. i think the widening out is going to increasingly focus on the s&p 400 and 73. in other words money may come out of the magnificent seven or money won't go into the magnificent seven and it'll get redistributed to the rest of the s&p 500. earnings have been flat for the past two years. >> you did say last week that you were wary of fed rate cuts because of the side lin cash it would draw into equities. >> right. >

. >>> we're joined by ed yardeni. feet seems like the labor market might be starting to ease a little bit which would be probably friendly for the fed's proposed action, inflation also under control. how are you feeling about all these things? >> i kind of view what's going on in the labor market as normalization. i think everybody's looking at the data and saying it's getting weaker. it's only getting weaker relative to some of the pandemic related points -- data points that we had a year or two ago. the fact of the matter is, most of the indicators suggest that we're back to a fairly normal labor market where jobs increased by 150 to 200,000 per month. wages continue to go up, beat consumer price inflation and the consumer has the purchasing power to continue to spend which is what drives the economy. >> any eyebrows raised for you when you see the nasdaq just almost -- it looks like a stilt amount and seeing that across the board. any trouble signs there? >> we've both been doing this for a while and both lived thr