>> welcome here that -- welcome. taylor: quick check on these markets. silliness going on. green on the screen, so we will have some fun. s&p 500 is 42.94. that was an interesting number that we touched last week. the bulletin continues. you are finally getting some

underperformance by the russell 2000, but that is a big help performance in the last few weeks. the inverted yield curve on the 210 has continued edit coming down by five basis points. it is the duration and the magnitude that captures my attention. jon: absolutely. you think about that s&p today and a rally off the lows. the nasdaq has had an even bigger run. when you look at stocks, you still have a tug-of-war between macro stories alike china versus willingness of investors to jump into some stocks china, we have seen weakness in crude prices. concerns on the demand fund, not to mention the story of what will happen with supply of oil one forward. chevron is under pressure, alibaba has been under pressure today.

but the buying of disney with dan loebs fresh push and disney responding. we continue to largely m&a front with unity under pressure after not showing an interest and investors trying to figure out the next steps. one of the other areas we have been watching is the real estate market. new york city brokerage compass is fishing -- facing pressure after the company has yet to generate an annual profit. joining as now is patrick clark. patrick, is not just the people jumping into the market in a frenzied way. it felt like going back to the pandemic. it is those who saw opportunity to build in a big way. that was the story of compass for a couple of years. what is happening now? patrick: going back a decade, maybe longer, there have been

opportunities to disrupt housing. there are good to $20 worth of housing in the u.s. every year. compass has raised money to take that opportunity on. we are doing so. they have gotten quite big and got to a point earlier this year where all of the said it was no good to be a real estate company. there shares cratered along with other companies. i would like to figure out what comes next. taylor: are they just a first of many to follow? patrick: yeah. there has already been a handful that have reported weak side -- guidance and seen their shares go down. redfin was trading close to hundred dollars a share 18 months ago, now under $10. one of many for sure. jon: you have the zillow story we will watch closely as well.

in terms of paying for employees, this is a company that was aggressive in finding top talent, but we have heard about a lot of layoff stories recently. they are no exception. patrick: they have laid off 150 workers already. their agents are independent contractors. they have hired engineers, support people. they are certainly under continued pressure to pull in the costs. taylor: what did we learn from the national association of homebuilders this morning? later on, we will be speaking for -- with ceos from the homebuilders perspective. are you hearing? patrick: boulders are worried about inventory. sales are moving so late and they are art of the housing market in particular. it is one of several negative

signals or caution signals after what has been a sustained period of go, go, go in the housing market. jon: can we tie that directly back to mortgage rates. in canada, we just set the fourth straight month in a row of prices pulling down cap often, people look at interest rates rising in this country is the chief reason why. patrick: rates are a huge part of it. at some point, interest-rate are what they are, although they have been knocking around a bit. never the less, -- nevertheless, most buyers and sellers understand that the days of sub 3% interest rates on your mortgage are gone, but it is rates plus economic uncertainty. if there is a recession and you are not sure if you're going to

have a job, now is not attempt to buy a house -- not the time to buy a house. taylor: appreciate it, patrick park joining us -- patrick clark joining us. what the economic data means for the equity markets, our strategist. for more, let us bring in max, chief investment officer. max, from your perspective, how are you thinking about some of the big rebounds we have had off at the june 16 low? max: what we have seen has been really, really low volume, a lot of fun and more investors who tend to be more dynamic in their views. -- as they often do at the worst time, right at the bottom. then we have seen some

interesting effects where markets were discounting any negative indication. when powell said we may do a summary five basis point hank recession, that is stopping just really short of saying we are going to get a recession. when we see companies have negative earnings, rally the next day in the markets kept going, they are up. it is a rally is looking more and more like a house of cards becoming a side scraper. jon: that consciousness feeds into what taylor was talking about, that you have different views out there. jp morgan says some of the interest rate sensitive stocks could see more momentum in the near term. they are looking at the shape of the yield curve and the argument they seem to be making is that

it has to been received but for value to take the lead in this market again. your reaction? max: there is rationale and saying you would need the curve to the reese people in the four traditional value to be better, but we have to think about this beyond this common factor notions. it is about profit, margins the most, so if you are looking for companies who are going to be resilient to the headwinds we will be facing into 2023, i would look for companies with resilient balance sheets, with margins that will not get pressured by either a demand slowdown or a -- or continued supply chain issues. also, companies that do not have a lot of leverage on their balance sheets. that will help straddle growth sectors like biotech as well. taylor: with your work with ai and charter programs, is the big

issue those type two errors, avoiding the how to lose money. is that more of an issue right now? max: i think it is. having a large exposure, the dust to the market would be uninvestable. i do think where we are, you mentioned the 4300 level, if we break past that, it will be a catalyst for more folks to go in. you can see these bear market rally continue but there will be an inflection point. expecting things to go down, if they beat too early. we will see a correction, but i will devise being more cautious precisely because you want to avoid being either too early or too late, depending on which side of the point you are on your -- on. jon: earlier, you are talking about margins and profits.

generally speaking, we have not moved through the bulk of earnings season. we will hear from some of the retailers this week. what are you going to be watching for on the earnings side, which depending on how that plays out could influence the direction on stocks. max: when it comes to retailers, i am looking at are they actually moving inventory? has buildup gone down sufficiently to where they do not have to move it so quickly and really take a bigger margin pit -- hit? also, what is demand like? i look at different geographic areas. when we hear from retailers are we seeing more demand in higher income states versus lower in some? time to extrapolate from that about how we are going to see things move in the next quarter.

from a macro perspective, i think consumers are going to be looking more cautious, both for the current environment and also the future as we have seen rents go up and at the same time, we have not seen wages paid cap. that -- wages pick up. that is something where we can extrapolate. jon: hopeful context. we will watch for walmart, target, lowes to report their quarterly results. chief investment officer joining us with his perspective. coming up, a deadline day for 13 apps. this is bloomberg.

taylor: this is bloomberg markets. as you mentioned in the previous segment, 13f filings are beginning to file in. sonali is here with what investors are watching. sonali: the aggregate numbers

are interesting because you are seeing a signoff of technology names but it does not hold true for all of them. some of the most prominent were being bought by the likes of soros where you set the big new by, apple, amazon also becoming huge names. they most bought was elf out but you are not seen everybody buy in at once. you are not seeing that herd mentality but the likes of harvard, georgetown, soros getting into alphabet while you sleep tech being more probably sold it let's take a look at some of the names, soros, we have in, we are waiting to hear from stan drunken miller and we are starting to hear from activist investors, third point, elliott.

activism is a strategy this year has not done well but there is hope that could turn around. jon: i love that you brought up all of that. i have a two-parter for you. because of where we are right now, every time we've got a new activist story, it gives a new spotlight to a stock, maybe one that has been under pressure. we will continue watching that part, but the fact that we have so many different investing styles, hedge fund strategies, is it going to inform you on what has not been working in these last few months in that community? sonali: definitely, in addition to those highflying tech names, you also have buying safe assets, ets tied to treasury and gold. you are seeing investors is starting to caution their wagers. they have sold more than they bought, do they have cash sitting on the sidelines?

interestingly, it shows how investors are doing. for the year, they are down in the double digits if you are an equity fund whereas in the last month, they started to post some green, but nowhere near as green as the bottom -- broader market. taylor: you mention activism. the moves around disney get captured? typically, if you're that big, you would file a 13 the filing. some of the moves follow the herd mentality. did people buy into disney? by and knowing there was activism? or did they buy and because of the amazing performance. the third quarter moves will be just as interesting. i would also say a merger arms is another interesting and exciting strategy. you've seen some major deals --

twitter, unity -- fall through. a letter people getting burned, but active vision still holds on strong. it will be interesting how it shakes out in the year. three months cannot define all these books. jon: how would we cover regulatory disclosures without you, sean l.a.. will check in with her later for more. when we come back,--brothers is out with its -- dutch brothers is out with his latest result. we talked with the ceo. plus, navigating inflation, supply chain disruptions, the tight labor market. this is bloomberg.

jon: this is bloomberg markets.

dutch brothers is out with its results as it approaches one year is going public. the company reported a revenue of 44% year-over-year. joining us now is there ceo. -- their ceo. it is a this interesting that is a company who had an ipo at not that long ago and has been steadily building for three decades. you're used to different economic cycles. what has been happening these last few months? joth: it has been interesting. we have seen markets shifting. when i say markets, i mean places like the central valley of california responding differently because of gas prices and markets like texas

continue to do very well. it is hard to put your finger on one particular headline for one macro trend. i think every market has seen a different impact on the consumer or consumer cycle. we have seen this since last fall. it has been an interesting time, unlike anything i have ever been part of in watching consumer behavior. taylor: analysts are pleasantly surprised at the margin of recovery, the profitability that appears to be sustainable. what is behind your pricing power? joth: we have been very careful and mindful of the customer. we have looked at pricing and how we implement pricing. we have watched cost of goods. typically, we -- if we see a blip in costs, we will stay away

from reflecting that to the consumer, but as the rings like -- as we see things like coffee and dairy -- dairy is up 25% from a year ago, then that is something we need to pass along. we have been mindful of customers. we have not had too many price increases print their reflecting on a third one we may take in the fall. jon: you have been honing that understanding of the consumer for a long time. and the secret manual, which is always allowed for your consumers to have more input in the process hundreds of stores, but we should be clear that you guys have talked over the next 10-15 years having upwards of 4000 shots. i am sitting in canada out wondering what global expansion ideas you are thinking about. what is your long-term plan? joth: if you have a disciplined

approach and a disciplined plan that your team and believes in and can execute against, i do not see an issue with the 4000 locations. we have slowly built capacity over the last 30 years. most recently, we have added 300 plus locations and looking forward, if we get into a good rhythm, we think there is plenty of opportunities for dutch bros. throughout the u.s. we have not evaluated plans beyond international plans at all. right now, international would be florida, georgia, north carolina. taylor: i want to pick up on something that we mentioned, a potential third price hike this fall. what needs to happen for you to go through with it or not? if so, what is the percent increase? joth: we are mindful of the

customer. our pricing has been 3%-4%. we have watched how well that flows through and consumer acceptance. we are playing catch-up. most cost of goods, we have not taken the christ we have seen on the p&l and our margin impact, so we are playing catch-up to the goods being taken hits on over the last nine months. we will look at it in the fall. it is more about timing for us we decide to take it. taylor: appreciate you spending time with us. jon, we take a look at these equity markets, further green, up 13 points on the s&p, 42.93. some analysts were looking at 4200 is the wrong number.

maybe it for 400 is the next stock higher. you do ceo's falling on the day. -- you see yields falling on the day.

>> the most crucial moments in the trading day, this is bloomberg markets, to close with caroline, romain, and taylor. caroline: it is 2:00 p.m. in new york, we are live, this is bloomberg markets to close. we have a rally that runs on, extending a four week run as activity plunged by the