good monday morning, i'm melissa lee along with mike santoli. straight ahead, the ceo of on semi will join us. the ceo of xerox is here as well a check in one year into the job. plus post-earnings reaction as losses there widen. later, rockefeller on why big tech leading the way on a.i. is dysfunctional. market holding onto last week's gain. modest moves s&p 500 up about 0.8%. small caps are outperforming again. russell 2000, the 2,000 level on the russell 2000 has acted as a bit of a cap over the last couple of years but we're challenging it once again. it's the story of, it's a

multitude of stocks working, at least in the latest phase of of rally. >> in today's session, for instance, broadening continuing. we have performances by energy for one, financials, industrials continue to chug along in addition to tech stock holding up, still holding up. >> yeah, exactly the market continues to chew through a lot of the big picture concerns thrown its way. the latest one is the broadening of the rally funny enough, now one of the bearish talking points is that d disinflation could be negative you are seeing a lower pace of revenue corporate beats. it's funny considering that last year was a panic in the bear market about will inflation be under control? now inflation is what skeptics are resorting. it is the last trading day of july while our next guest says he doesn't know what to expect for the month of august, he's confident we'll be higher

between now and the end of the year though he does point to four major headwinds that could stand in the way joining us now, bespoke investment co-founder paul hickey at post 9 good to see you. >> good to see you >> i don't think any of us can claim we know what's going to happen over the next month, but i'm curious, what gives you confidence based on how the market's behavebehaved. >> i think you were talking before about the disinflation. there's always an excuse people are always going to bring up excuses what we've seen in the market over the last two months is -- let's go back to lows in october. the rally was on hopes it was on hopes that inflation would subside. it was on hopes that central banks would become less aggressive it was on hopes that the economy wouldn't fall apart in the process. in the last few weeks those hopes have become a reality. if you look outside today in new york, there's not a cloud in the sky. sentiment on the part of investors in the last two weeks has become very confident that things are going to work out great. i think in the short term, a

reality check or gut check would be good. and i think in the intro you mentioned four headwinds headwinds facing the market but they're, yeah, what ifs i would talk about there. >> in other words, they're not necessarily roadblocks they're kind of, we have to get through these potential challenges >> they're things people are going to bring up and worry about and -- >> you mentioned sentiment, valuation probably another one. >> yeah, valuation in the market is not cheap by any stretch of the imagination. when you go versus interest rates, it's still not cheap. it's less attractive when you look back historically, you take the earnings yield of the s&p 500, when you look at different levels of the earnings yield, whether it's higher or lower than the ten-year yield, the forward returns are not that much different they're very close so to put all your eggs in one basket on valuation which is the worst timing tool you can imagine with respect to the market, i think that's something you have to keep in mind there when it comes to valuations.

>> are you surprised on any level, paul, that we haven't yet seen even the seeds of a selloff at this point? you mention the rally was built on hopes hopes, hopes, hopes. all of a sudden we have clarity now. it looks like there's a soft landing here it seems to me it would be sell the news >> so you talk about the lack of a selloff. last week, you know, the dow winning streak record, winning streak you have the nasdaq 2500, above the moving day average, that doesn't happen very often. the s&p 500, overbought short-term, overbought every day since the friday before memorial day. and the nasdaq, the reason for mai tai today -- >> i was wondering. >> the nasdaq has been overbought every day since cinco de mayo. it's a one-way market that the market has done very well. and you need to see some sort of gut check, as i was saying before when you come to all those mentions in those extreme overbought readings i mentioned, they don't happen in bear

markets. they occur during bull markets when you have the nasdaq 100 25% above its 200-day moving average in the past, every time it was higher a year later. that's like 14 different times during the 1970s. >> getting and staying overbought is a bull market phenomenon, as we mentioned a few times here although i do think, even if you want to dismiss as i like to dismiss stock versus bond yield analogies to what fair value is, because it seems to be noise it was anchored in whatever regime you happen to be in at a given moment absolute valuation does not seem that friendly at the index level right now. that usually determines longer term forward - >> at the index level it's not very attractive. you have the seven mega tech stocks which most are above market valuations. you look at the russell 2000,

stocks with earnings in ruffle 2000 trade for like 12 times earnings they're very cheap even the s&p 500, when you're looking at companies besides those mega cap stocks, valuations still aren't cheap. buy everything here. but they're much more -- it's much more reasonable back drop, i think. so, disinflation, i think that's the key to watch we've had inflation readings come into more levels. that's going to cause a bit of a -- the gains or the improvements in inflation are going to be harder to come by. that's what we have to watch for in these earnings reports and see what companies are saying. >> at the same time options premium, very cheap. with the vix below 14. that's got to help investors stick with it. >> that low valuation, that's complacency short term, you would like to see a little bit of an uptick keep people on their toes. >> argue impli it'ably it's hit

bit of a floor >> thanks for having me. let's turn to another big story in the economy, the collapse of trucking company yellow frank holland with more on the impact to the industry >> good morning to both of you yellow is shutting down operation leaves $5 billion of freed volume annually up for grabs, that's 3 million shipments per year for a customer like walmart or home depot. the majority of the business is in less than truckload space they put pallets or boxes in one truck. rivals in the space outperforming over the last week as investors assess the potential boost to their business at the same time, transports are set for a number of tailwinds in the second half. talking about the summer produce season, the fall harvest season. of course, the holiday shopping season analysts say destocking retailers, retailers holding less inventory, now appears to be reversing remember, just a few months ago, we were worried about a freight recession. now dow transports are trading

near a 52-week high and rates are bouncing off lows. so, there's still negative year over year. you have to remember, this is on some very difficult comps. this time last year, rates were close to all-time highs and so were diesel prices most large transport companies generate revenue to a fuel surcharge to their xhcustomers. yellow shutdown could leave 30,000 without work. many of them are drivers this now creates an influx of experienced professionals during a very tight labor market. most recent earnings, night swift, jb hunt, the biggest container shipper, both cited higher wages for their drivers and tight labor market is an issue. now you're getting a big influx of very experienced professionals. >> how long before we see yellow customers start to show up at other companies? >> we started to see that drift, if you want to call it that, already. some people stuck with yellow because they were a lower cost carriers but bigger names like

walmart or home depot, they're blue chip customers. they spread their business around, so they started moving that volume to other companies the question is, is there someone that can be a big winner that would be meaningful for that company right now yellow is also exploring a sale of its third-party logistics business that's basically b2b, getting your inventory here, u.p.s. is a big player in that space is somebody going to buy that? are they going to keep all their customers? is that even possible with such a disruption and breakdown of this company it remains to be seen. >> frank, usually when you see a long-time player go into bankruptcy, it's an unhealthy balance sheet matched with a fundamental challenge. that seemed to be the case with yellow what does it mean for the rest of the industry? some people are saying it's an inflationary prompt for the broader economy, at least in the short term is there, in fact, as much of a driver shortage as the industry has claimed forever? >> we've been talking about the driver shortage for a very long

time there are fewer carriers we saw rate increases and that makes it harder for an independent operator to operate his truck. if you're one person with a few trucks, the higher the cost of capital goes, it's harder for you to stay in business. we saw a dramatic shift from goods to services. a lot of carriers on the smaller end boosted their capacity thinking, we keep buying things online when that volume is not there and the rates fall, it pushes a lot of them out of the business. so, is there necessarily a driver shortage? it depends on who you ask. certainly you have to pay a higher premium for drivers, still. as i mentioned, jub hunt and night swift saying that. some saying, i can work over here because there's more competitive pay. >> thank you frank holland. still to come, an exclusive with xerox ceo one year into the job. plus, take a look at the best performers for the month of july in the s&p 500. regional banks generally leading

the way and a big rebound trade. more "squawk on the street" after this good night! hey corporate types. would you stop calling each other rock stars? you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business. but it still doesn't make you a rock star. so unless you work with an actual rock star. hi, i'm ozwald. hello ozwald. pam, you are a rock- i wasn't going to say it. ♪♪ ♪ ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪

♪

crude this morning both on pace for the best month since january of 2022. that move being driven in part by the expectation of sizeable supply deficits in the second half last week goldman telling cnbc to expect deficits of 2 million barrels a day in the third

quarter as demand reaches an all-time high since the start of this year, though, wti and brent roughly about flat, melissa. if you go back, $85 in wti is the barrier between, you know, the kind of ukraine war, upper end of the range and before that october of 2021 we were in the mid-80s. so, if we're there in a couple of months, you're flat on a two-year basis that's okay, but if it's much higher than that, it might be a challenge. >> right i think that what is really worth noting is the move in just the past month plus. i mean, since mid-june or so since the last fed meeting, oil is up 14 plus percent. >> it's been a huge accelerator. let's get to xerox, shares up 10% year to date as they get ready to mark one year since our next guest took over as ceo, raising guidance in 2023 joining us at post 9 in a cnbc exclusive, xerox ceo steve bandrowczak. great to have you with us.

>> great to be back. >> you increased your 2023 cash flow guidance. i'm wondering what you're seeing in terms of enterprise spend. >> there's a couple of things for us first of all, pleased with the momentum over the last five quarters of consecutive growth year over year expansion in the second quarter in terms of our operating margin what we're seeing is two things. one, our customers are moving to value. they're looking for where can we drive value inside of their enterprise very specifically things like how do we help them with driving productivity you think about the hybrid workplace and distributive workforce. they're looking for solutions that help drive productivity and help them drive their bottom line we've been doing that very successfully >> in addition to print, analysts point out that it seems you're offering more in terms of services that could be a good recurring revenue for you. can you give us an idea of what those services are and what percentage you are seeing now versus what you hope to see in the future >> yeah. if you think about print today, the ecosystem in and around

print give us a lot of opportunities to drive productivity for our customers things like digital services, where we have cloud print and we have the ability to be able to look at that information and drive productivity simple example, think about universities today where they have documents but we can do things like language translation, mrajerrisms in law firms we can help them drive productivity and analysts as a service a.i. on top of documents so, the ecosystem we play, we help drive digital services around the ecosystem and help our customers drive productivity >> how do the economics play out? i'm curious. your guidance is for flattish revenue. and then somewhat improved free cash flow and better margins but how much is sort of print declining as other stuff you hope makes up the difference >> you take a look at the last four years we've seen the industry decline 2%, 3% on the top line and yet we've stayed flat. we're driving digital services in and around that that really is focused around

value. if you think about our systems today, we have an operating system, a chip and a screen. and we're developing solutions in and around that so that we can help our customers drive productivity think about inside of hospitals or inside of universities. there's not enough administration staff there's not enough people to do the administration task. we're helping them with digital services in and around those areas to drive productivity. >> getting back to the question that i asked you before, i mean, what percentage is print versus services now and where do you see that, you know, in one year's time, two year's time, five years' time >> in terms of growth, we need to growth our -- >> i'm trying to get an idea - >> double digits, yeah. >> magnitude - >> single to double digit, growth opportunity there and trying to drive our digital services for sure. >> where do the services offerings that you provide fit in the kind of work flow i'm wondering. you mention all these things and it seems like you've got a microsoft wanting to be

everything to everybody in the office. >> we're a trusted partner when you say trusted partner means we've been inside ecosystems for our customers for years. we're behind their firewalls they trust us with security. you think about the importance of data and documents and the ability to understand where information is coming from, where it's going to, and how do you secure it. we've been doing that for 100-plus years customers trust us that gives us the right to start to play in areas like artificial intelligence and a.i you know, we think about augmented virtual reality and where we're driving and disrupting the service space those are areas where our customers trust us, where they have empowered us to go and drive their productivity >> to mike's point, though, you're competing against giants like microsoft and customers trust you. they also trust microsoft and microsoft may already be in their enterprise how do you compete do you compete in terms of the different kinds of customer you get, whether it be by size or industry >> think about the enterprise

versus snb in the enterprise space they have skills, capabilities in the i.t. space they have the same enterprise challenges but they don't have the same skills. you i path is a great partner of ours if you're a small snb customer, university or hospital or law firm, you don't have the skills to implement a ui path think about the understanding of the process, understanding of the development of the work flow, understanding how do you drive productivity we've developed those tools and those capabilities same thing in the a.i. space think about si for a.i. in the snb space. we bring solutions >> steve, thank you. >> my pleasure. on semireporting sults this morning. the move up has shares hitting another all-time high. the stock rallying 73% this year with this move the ceo joins us later this hour plus, speaking of new highs, wa

watch sofi the stock is down 25% over the past two years ceo anthony noda joined us last year i asked him about student loan payments and how that will impact the business. >> as it relates to student loans, there's 40 million americans that still have federal student loans they haven't refinanced sofi in our history has not refinanced more than 1 million people on their federal student loans. there's still 39 million people out there for us to help lower their cost of paying back their student loans. that wasn't in this quarter. in this quarter our student loan business was relatively depressed. we don't expect a meaningful pickup until the end of this year delivery service. business was steady, until... gogo-foodco. go check it out. whaatt?! overnight, users tripled. which meant hiring 20 new employees - and buying 20 new laptops. so she used her american express business card, which gives her more membership rewards points on her business purchases. somebody ordered some laptops?

cynthia suarez. cfo. mvp. built for cynthia's business. built for your business. amex business.

european markets set to close momentarily. inflation in the eurozone falls to 5.3% today. food and beverage stocks lagging behind investors looking ahead to thursday and the bank of england's decision where they are expected to hike rates for

the 14th consecutive time. the story abroad takes place further east with more weak economic data out of china manufacturing pmi contracting for a fourth straight month in july while construction and services activity disappointed all of this pointing to more stimulus coming or at laci needed with the chinese economy's 5% growth target at risk for a second year in a row. people were hoping for the stimulus for a long time it's coming in bits and pieces but not like this huge full-throated package we got from beijing in the past. >> not like the old days when you can -- almost the authorities could just say it and it happened and you spilled a lot of capital into the markets. although, the stock market in china has been trying to respond as if it's going to be somewhat more effective i was looking at the chinese index relative to emerging markets excluding china and they actually had a good little rebound in this recent push. we'll see if this is a change of the story or just more of the same. time now for a news update seema mody has that for us this

morning. hi, seema. >> here's what's happening at this hour. a new indicted employee of former president donald trump appeared in a federal court in florida just moments ago mar-a-lago property manager is accused of attempting to delete surveillance footage at the palm beach club the justice department was trying to obtain that footage as it investigated trump's alleged miss handling of classified documents. he did not enter a plea since he has not secured a florida-based lawyer. west african leaders are threatening military action against niger. the leaders calling for the ousted president to be reinstated within a week meanwhile, pro-coup supporters attacking the french embassy amid claims they are planning to launch an operation to free the president. the first u.s. nuclear reactor built from scratch in

decades is now operating in georgia. according to georgia power, the reactor went on line today and will generate zero carbon electricity for generations to come pretty cool. melissa, back to you. >> thanks. seema mody. ahead, while investors may be applauding the earnings of big cap tech names, our next guest says the wave is dysfunctional. ruchir sharma joins us to make his case (vo) verizon small business days are coming. from august 7th to the 13th. now is the time to partner with our experts. get started today with verizon business. it's your business. it's your verizon.

( ♪♪ ) ( sfx: people cheering ) ( sfx: stock exchange bell ringing ) ( ♪♪ ) ( ♪♪ ) ( sfx: people celebrating ) ( ♪♪ ) ( sfx: people celebrating ) ( sfx: stock exchange bell ringing )

some wall street moves sendinging some stocks lower salesforce as morgan stanley goes to ee equal weight. let's go post to post with bob pa san i for a look at what else is moving. >> good to see you back. we're flattish on the day. we're struggling to get through the 4580 level don't kid yourself we're at new highs in the middle of the summer. quite a feat with the s&p up 3%. i want to point out the broadening story the last day of the month here energy stocks have been a big beneficiary. oil is poking over $81 right now. that's a big move up something very curious is happening. the oil service companies are having a fantastic month slb, halliburton, up 19, 20. the stalwarts, the broader

energy companies, the exxon and chevron are flatter. it's really oil services companies doing well another interesting play is to try to watch artificial intelligence as a story expand out. we know the microsoft and nvidia stories. there's an attempt to argue some other companies outside of tech, like old industrial companies are potentially a.i. stories here's inger so will rand, up 25% just recently. this is this year. this is the second largest industrial compressor maker in the world. the argument here is their very position for automation, industrial automation, anything that does that is ripe for intervention with a.i. and that's a big potential people buying partly this stock on this. eaton is another one it's up 30%. they do power management for industrial facilities. so, the more factory automation you get, the more smart devices, you have ever more sophisticated power management systems

essentially. the argument here is anything related to industrial automation is related potentially to artificial intelligence. i know it seems like a stretch, but remember, folks, they're trying to figure out what other companies besides microsoft and nvidia are going to be part of this a.i. revolution we'll talk more about this at halftime report in just the next hour guys, back to you. >> thank you. as a.i. dominates the tech sector this year, the next guest is zeroing in on one key trend for the "financial times." he says points to deep dysfunction in the system. here to discuss, rockefeller international chairman ruchir sharma you say these big tech companies are actually bad monopolies. why is that? >> what i point out in the piece, if you look at research, it shows if you see the past innovation surges, you had the main frame surge in the late 1960s. we had the pc surge in the early

1980s. obviously the internet -- the initial internet in 2000 in all those instances we had relatively new companies and much smaller companies at the forefront of the innovation surge. what's very different this time with the a.i. wave, these companies are already dominant in the pre-innovation wave and now they're dominating these mega cap company in the a.i. wave as well that i point out is something is not right with that because that by definition is a disruptive industry and there should be a lot more new players there's a lot of talk of new companies coming and startups coming, but the number of startups in america is declining. these mega cap companies go on dominating that's what i point out this is so unusual and possibly dysfunctional. >> what is your definition of dominating publicly traded companies,

market cap, sales? if you look at, for instance, openai, it is not an openly traded public but it was a major force in a.i. and how consumers perceive a.i so, what do you mean by dominating here? >> yeah. dominating largely looking at market cap in terms of what the gains have been and that's what i did with previous instances as well you're right some of this is speculative, some of this is betting on the future this has gone on for too long. there will always be exceptions. openai is one of them, even though it's backed by one of the mega companies still, there will always be exceptions but the broad trend across tech, this is, in fact, broad across industries, is the concentration, which is the degree of concentration we have, particularly from a market cap perspective is unprecedented and the past innovation waves we didn't have this that's what i'm trying to point out here is how different and possibly dysfunctional this is it gives them an incredible

amount of power, incredible amount of lobbying power, power over regulations which are formed in washington we can see that in the data as well if you look at the top spend on lobbying, it's these tech companies now dominating that list as well >> is your concern, aside from the potential political influence, on an economic basis, is your worry that we won't get the kind and magnitude of innovation that we otherwise should because these are the companies leading the way or is there some other issue >> yes, i think it's both of those. one is about the power they have and two, as you argue, has to do with the fact, will it stifle broader innovation if you look at the number of startups, even as we keep hearing of startups, but they're really going down across america, the number of new startups that is problematic for me because over time, that will strangle innovation, i think.

>> you stop short of saying that these giants should be broken up is that ultimately where this piece is going >> no, i mean, i think if you're careful with that because obviously you see what happens in china when they try to trample big tech and led to a massive dent in private sector confidence out there you have to get the balance correct here i say that the argument that these companies will keep dominating because they need to dominate sources acquired for a.i. are so huge that only these companies can do that. i would be careful of those documents. those are self-serving arguments being put out there. and i think you have to also look at the tradeoff for society in terms of, yes, these companies have done a lot of for innovation they're obviously the pride of america and across the world but there's something wrong with capitalism if you keep having the same companies dominate decade after decade. that is not what capitalism

should be about. >> interesting piece ruchir, thank you. >> thanks. the ceo of on semi is coming up after the break the stock going back to its ipo in may of 2000, up again today on theacofetr an peed results as auto chip surges has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

with your hearing, if you start having a little trouble, you're concerned that it's going to cost you money. to this day i only paid what i had to pay for the device... when i go back everything is covered. there's so much you're missing by not having hearing aids. we'll find you a hearing aid that fits your lifestyle and budget at one of our over fifteen hundred locations. call miracle ear at 1-800-miracle and schedule your free, no obligation hearing evaluation today.

wrooef been talking about the rally starting to broaden out. look at month-to-date winners for the month of july.

boeing is up 12.5%, 3m up almost 12% and goldman sachs. onsemi, shares higher this morning although giving back gains after posting a beat across the board in second quarter with guidance coming in above the consensus as well. joining us in a first on cnbc interview, onsemi ceo. >> thanks for having me. >> where specifically is the upside quarter come from i know you have lots of exposure to the automotive and industrial end markets. >> both markets came in very strong for us given the underlying mega trends and the investments we made starting two years ago. we actually combined auto and industrial, now 80% of revenue we also posted a record automotive revenue crossing the $1 billion market.

that strength, i would just put it as a general statement. it's within these markets where we invested in the electrification mega trend, the charging infrastructure, charging infrastructure as far as industrial goes, the strength in these as these customers is what gives us solid results. >> does that mean your guidance does not necessarily reflect an upbeat view of the automotive cycle itself, broadly into next year or you're saying the bigger trends are in your favor >> the bigger trends are in our favor. even outside of the silicon car buy, which is a big part of our growth in electrification, even without that ramp that we started, you know, late last year into this year, the core business is also growing there is points in demand as well as he we see it in those two markets. on top of that, we have the mega

trend of electrification, ramping nicely. >> can you walk us through, help us understand an internal combustion vehicle and ev vehicle, what is the difference for onsemi, or the margin on chips that go into each of them, how is that different? >> if i just do -- let's talk about the purely the drive train. everything else interior and so on you can take it as a constant drive train specifically for onsemi, we have about $50 worth of content in an i.c.e. engine, or internal combustion that content per car goes to $750 about $700 more of content when that vehicle goes to electrification. the biggest difference is the inverter or motor that runs it you also have to think about, if you open the hood, you have all these belts under the hood that drives a lot of compressors and

pumps and so on. when you have a motor and you don't have an engine anymore, all of these are also motor control, which is driving content for us so, the content gains are not just on the drive train itself or the propulsion but everything required under the hood to drive the vehicle. >> what's happening in terms of capacity additions we know there is this semiconductor production investment boom going on does it bump up against the categories that you are in mostly are we looking at a time down the road when we're going to have any kind of an increase in capacity such that it will affect industry margins and your margins? >> yeah. we don't see that specifically where we are investing two pieces of it big investments for us are onle silicon car bite, we see that environment still constrained over a multiyear period as that business ramps just to put it in perspective,

penetration of evs into total vehicles made it only going to be about 50% penetrative by 2030 this is a multidecade brand. therefore, that technology ramp and capacity put in is going to remain a little bit constrained. for us specifically on everything else, which is where the concern may get, we actually are going to a fab right strategy we divested four fabs last year to really refocus our capacity footprint as we transform our business and the ltsas, or long term supply agreements we've been talking about and have engaged with our customers, give us a very clear visibility on where to put that capacity so we don't run up into this concern that you mentioned. >> what percentage of revenues is directly attributable to evs and sort of the new energy

economy? >> well, today it's not a big percent of our revenue as it ramps, it's going to become more and more as the evs -- unit of evs start going up again, back to the $50 to $750, so for every one car that goes into ev, we'll have tremendous growth that comes associated with it. that's really when we will start changing that mix to more ev specific >> appreciate the update thanks so much >> absolutely. thank you. let's get a market flash with phil lebeau. >> take a look at shares of afternooner aviation, up more than 25% at one point earlier today this stock was up as much as 28%, 29%. afternooner announcing today it has secured a contract with the u.s. air force this is worth $142 million the dollar amount is not huge but this is the fifth dod contract that afternooner has

landed since it went public. it is involving the delivery of six of the midnight ev, vertical takeoff and landing used by the air force. shares of afternooner up almost 30% on the news. still well below the spac price of $10 a share we will probably get q2 results in the next couple of weeks. that's when we hear from all the evtal startups >> thank you. coming up, walmart spending $1.5 billion to buy out tiger's stake in indian startup. a look at the growth strategy is next take a look at the chart adg arhet ginally lower bu trinne t highs of the year

. walmart paying $1.4 billion to buy out tiger global's remaining shares of the indian startup flipcard deirdre bosa with more on what it means for the fund-raising environment. >> as we talk about on "techcheck," the funding and valuation environment for startups remains challenged, unless your business is generative a.i we haven't seen tech ipos come back big multibillion dollar exits are harder to come by these days tiger global has notched one after a rough 2022 in which it saw many public and private tech

investments decline in value i was able to obtain an email that tiger sent to investors telling them it has sold its remaining stake in indian e-commerce flipkart on $8.6 million investment in 2009 that's a pretty return, indeed and a much needed win for tiger. we should note this is actually a down round meaning it values the startup at a lower price than its last fund-raising round, suggesting that late stage valuations are still deflating and fund-raising is still tight. not just in venture capital but at crossover funds like tiger, soft bank. tiger writes it is grateful for the opportunity to invest in flipkart through the, quote, early chapters of its growth tiger is typically a late stage investor where there's far less

upside or when valuations are coming down, like they are right now. examples are tiktok, and getting in early may be the new strategy tiger built a meaningful position but as they come down, it's

been a rough year and you know, it doesn't look like it's going to end anytime soon. however, when you get maybe the tech ipo window come back open, maybe there's more exits but what it really means is the funding environment is hard. you see tiger and many other crossover funds have trouble raising money at the targets that they have put out there. so soft bank as well. so that's really sort of the immediate effect is less money to play around with. but it goes further at the earlier stages. so you can see more of that happening. >> yeah, you mentioned the ipo window hasn't really fully opened just showing hints in that direction. so this -- sale of this additional stake to wal-mart, maybe makes sense but also say something about this particular investment? having more value to the strategic partner, rather than just out on the open market? >> absolutely. and you bring up a really good angle of this that i wasn't able to get to but that's this battle over indian e-commerce. this is happening between amazon on one side which is

making big strides. has put billions of investments into the indian e-commerce base and flip cart which now just goes to wal-mart. so wal-mart is really cementing its stake in the indian e- commerce company which really sets off this interesting battle between wal-mart and amazon. in india. which you know, we spend often talking about these days is sort of this emerging really exciting area for companies, particularly in tech to go into. >> oh absolutely. yeah, it's -- the new battle front one of the big ones anyway. dee, good to talk to you. thank you very much. after the break, rent relief may be in sight for the first time since the pandemic began. that story is ahead. and a quick check on shares of today's direct listings at the new york stock exchange. shark ninja, the stock popped 30% at the open and now up just about 21% from where it first traded. we're back in two. you can find us in

es and small towns across the us, where our focus is to always support the people who live and work there. because you call these communities home, and we do too. pnc bank.

ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. ♪ (upbeat music) ♪

( ♪♪ ) woah. ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall. welcome back. increasing supply is helping to bring down rent prices and we have more on the numbers. diana. >> reporter: apartment went growth went negative in july for the first time since the

start of the pandemic and that is according to apartment lists. rents though 0.75% from last year. that may not sound like a lot but it's indicative perhaps of a bigger slide to come. rent growth peaked at astounding 18% annually in 2021. month to month rents were up just very slightly. but that's slower than historical averages. new renters come out of college. why are rents cooling? vacancies hit 7.3%. in june 2020 surpassing that. we've been warning about this you? fly coming on and here it is. there are currently a record number of apartment units under construction and moving toward completion going locally, rents are now falling hardest in what were deemed the zoom towns during the height of the pandemic. rents are down most in boise, idaho and then among the bigger

cities, rents dropped most in the past six months in portland, oregon, phoenix, and austin. rents though are still strong in boston, providence, rhode island, and mike and melissa aisle sorry to say, new york city. >> definitely we see that here. in terms of though the absolute rent. i would imagine the average absolute rent is still higher than pre-pandemic levels? >> i mean it's still very pricey out there. but just to see the gains are coming back. that's a help. we started seeing that in home prices. and of course that will help the rental market as well but i would just pick a note in that this is apartment rents and rents for single family homes not cooling so much. not enough supply. the really on the apartment side of rentals, that's where we're seeing it easing it not unfortunately only single families. >> that's interesting because it gets to my next question and i was wondering about which is where this places us with the rent versus buy equation. i guess you are suggesting it's

not really directly comparable. >> it's going to depend very locally market to market on that rent versus buy equation. both are extremely pricey and then you factor in mortgage rates which were up around 7% now and still seem to be holding there. not dropping back on the 30 year fixed. which makes more people want to rent single family homes which drives up the rent as well. >> thank you. >> a lot of other annals though. wall street's latest means stock might have last night's leftover dinner in it. shares of tupperware are on a tear up big again today and up more than 150% just in the last five days. the stock has risen about 300% in the next month and stillnegative for the year. more than a fourth of the public flow was sold short as of july 15th. the stock does have a very small market cap sub $200

million. >> before the moved to sub $200 million and by the way the reason is the company itself has said they're likely to not be able to meet the july credit obligations on their lending facilities. they have not filed a 10k for last year because they have material misstatements they believe. so in other words, just a completely fundamentally broken company that a lot of people assume the equity value is perhaps nothing at some point. and yet it's kind of going up on a recognizable brand name and who knows what other kinds of chatter? >> it's interesting the playbook for a lot of these sort of i don't know if we still call it the reddit community. the meme stock investors has been high short interest and that didn't quite work in terms of resulting in the mother of all short squeezes for names like amc. that applied the other companies and it has in fact worked. >> in the short term it can be self-fulfilling if you have a big enough short interest and keep going back to recognizable company name. it seems like just travels

better online even though there is really nothing it seems behind this particular move. >> everybody has a container right? >> by the way they call tupperware stuff that's not actually branded tupperware. generic. >> band-aid or something. well, where are we in the markets here? just about flat. >> holding on to last week's gains pretty much. >> nice to be with you and over to the halftime with frank holland. welcome to the halftime report. i'm frank holland in for the judge. front and center this hour, the state of the rally as we kick off what appears to be a very critical week for your money. we have more key tech earnings coming our way plus a jobs report on friday. our investment committee is standing by to break down what's at stake in the coming days and joining us for the hour joe terranova and steve wise. first a quick check on the market as mike and melissa just mentioned fluff flat right now. the