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tv   The Claman Countdown  FOX Business  November 6, 2023 3:00pm-4:00pm EST

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few years. it is ridiculous. it is not going to work. i am old-fashioned. wondering why the need for all of these fancy words when there are so many words out there. a lot of words i can get you straight to the point. you will not lose anything in translation. i think these fancy words or parts of the problem. as a used to say they are all just a bunch of crock. [laughter] with that, 30 minutes left of trading. we were up, we were down, we are starting to move a little bit higher here. this is what consolidation looks like. i would not be upset at that at all if we close right here. i would be really thrilled about it. yet the right person getting you through the next hour of trading liz claimant. it would be nice to see us consolidate a little bit higher after last week. >> still a couple more days to go here. >> we may be closer to the end
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of earnings season, but quarterly reports still have the power to turn the markets read. you have to look at dish. the pay-tv provider is cratering to a 25 year low. down 24% right now. in the drop, it is the worst performer on the s&p. the s&p would certainly be higher if it were not for dish. we will have the details of why this is happening to the pay-tv provider coming up later in the show. let's get to the markets on this monday after stocks put in their best weekly performance of the year. they have kind of slowed their stampede to a trot or a mall walker kind of pace. [laughter] you have seen those people. dow jones industrial up 60 points. the s&p is gaining three. we have the nasdaq up 23. russell could not hold any gains so far it has been flat. flat was the best we saw today in the russell right now, down 22 points. russell jumped the highest of all the majors within 7.6% last
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week. small and mid caps right now not a surprise that we would see a little bit of a pullback here. it is a fresh week with fresher earnings to come starting with goodyear tires with reports after the bell today and then tomorrow, looking at a read on homebuilding from dr horton. also getting ebay. wednesday is a big one. we are getting warner bros. discovery disney media and entertainment. news corporation and lions gate revealed media and entertainment news corporation and lions gate revealed these earnings. pointing out that the punishment not so much for missus perhaps but a week forecast has been way harsher than rewards for beating estimates. look at apple. thursday warned the holiday quarter would be pretty much the same as a year earlier. the stock fell three plus percent. it closed with half a% slide.
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then it got swamped by a flurry of price target cuts on the very day the nasdaq was totally powering higher. up one and a half% at the moment october 30, here is another one. with the drawing its full year 2023 and 2024 outlook. the stock got slammed. it is up 8% since the start of november. they are not the only ones getting this punishment. estée lauder may be up one and a half% today, but it has suffered a 13% bruising today. these individual stock earning stories, the source of the energy to power the entire market last week came in from plunging treasury yields. as we kick off the final hour of the new week, going assize 4.93% on halloween, right now four-point two and a half weeks ago hissed
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5.23%. stocks are not exactly roaring higher right now which leads us to this question. what's the market jump last week nothing more than a bear market rally and is that interest rates or the consumer with the firmest grip on the steering wheel when it comes to stock direction? here to answer that is head of i shares investment strategy americas at black rock. november is typically the best month for stocks. this is not a typical november. usually we do get the european rally in the stock market. if you look at november, you saw some of that. i would say a big portion of why we got that rally, to your point , was a huge drop in yields we saw last week. it was a trifecta of lower than suspected treasury announcement. somewhat weaker than expected
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data. and then, most importantly, a signal from the fed. a signal that they may be done with their hiking cycle. that is when the bond as well as the equity market last shot to. >> they paused for the second time in a row. however, we have heard jay powell say inflation is not down to where we wanted to be. this brings up this question about whether or not it was a bear market rally. if you look a little bit deeper than just 4.9% gdp, first print for third quarter, you start to see a few little green stick. that is with specifically, and lisa cook, speaking today and she said you've got to be careful and watch the consumer who has the lower credit rating. the lower credit score because they are starting to struggle a bit. >> absolutely. such an important point.
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especially when we look at what happened last quarter with the gdp. we know that the markets don't necessarily focus on gdp third quarter. they are looking ahead at what is coming. what is coming is a little bit of a slow down led by the consumer. we are already seeing a little bit of that drawdown in savings across all types of consumers. certainly on the lowest. if you look at the savings rate broadly as a percentage of disposable income, that is already down to the high threes. that is up from the 7% where it used to be. consumers are still spending when you look at disposable spending and some of the retail data we have seen so far. obviously, this is a big week. coming out the cost of saving down from their savings. >> let's just talk about the bond market for a minute. your colleague the bond numeral. he is still absolutely loving the short dated treasuries. also pushing out a little bit
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more to the two in the five-year period when you look at i shares , there are opportunities to capture that. which area do you like on the curve? >> i love that question. i do agree with him on the belly of the curve. that is what we are telling investors to step out of cash. what we mean by that specifically is that right around that five-year which is a sweet spot, something like agg or something like the ie i which is the three-seven in the treasury market will give you exposure to that. the two things at play here, you do want to step out of cash. it has been incredible. >> 5% or money market. >> you have done better than perhaps if you were in the long end of the treasury market where you may have done better. certain month you may have done better than certain sectors.
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october was a tough one for the market. now is a time to step out. especially with these incredible yields. we had a rally last week. treasuries have moved higher. take advantage of that in the belly of the treasury market. >> first of all, when you say disposable income -- let's say people have some money and they want to be in stocks. they want to have a little bit of some of the names that really look like they can run. what is that opportunity there? >> we think individual should absolutely be invested. even though we think there may be a little bit of a slow down. earning so far have been fine. we do not think that there is a deep recession. >> it is where we think investors should be going. looking at those industries and the companies that give you the
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free cash flow. give you the margin resiliency. give you the high quality large-cap companies that you want to own in a slowing environment. >> here at the top holdings. microsoft, esau, meta and apple. they are vulnerable, are they not? at least some of them to a consumer who is becoming a little bit more retrenched and nervous? >> think about what else is happening to many of those companies. yes the consumer slowing down, but some of these names are where we will still be needing to spend. in a world where we think interest rates have more or less peaked, where growth will slow down, but not create where uncertainties still remain hi, quality is what you want. the other thing that is very common is that the leverage, the debt is low. in a world of rates that are pretty high now, you want that lower leverage as well.
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all of those is why we pay that large-cap quality names. we have some of our countdown closer saying look out for the rally instead of the santa claus rally. sure enough, we got it. do you suspect that we will continue to see really solid weeks leading up to thanksgiving early december. >> i think that we could. there is so much cash on the sidelines. i was looking at the numbers. a trillion dollars of numbers moving into the market funds. >> yielding 5%. >> if you are invested in the market in a year like this depending on where you are, you are up even higher depending on what you have chosen. i think that they can possibly continue to do well. not just looking here to thanksgiving, but looking at a further horizon in a world where growth does not fall off a cliff
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the fed is done with their hiking cycle and at the same time, many of these high quality companies are really being able to generate that cash flow and that resiliency. liz: thank you. i am just looking at the smp. it is been pretty miraculous year. year to date up 13.5% as you said. if your financial people are not doing that for you, yell at them or move the money. you should be able to at least match the smp. thank you very much. great to see you. was it elon musk that warned that ai may take down civilization we should all be really scared of it. it now looks like the only thing that musk. was falling behind his ai rivals he has just released his answer to chat gpt. will his chap bought rock him and sock him? silicon valley tom siebel is here in the foxbusiness
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exclusive on the suddenly sizzling ai race and to stance to take or keep the leave. coming right back. forty-nine minutes away from the closing bell. the big names here and then of course an exclusive with tom siebel. your sleep number setting. and now the new queen sleep number® c2 smart bed is only $899.
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real-time access of up-to-date information from x. because the info was totally reliable? i don't know. still in its early testing stages but will eventually be able to x premium members with a new entrance to the competition let's bring in one of the ai adults in the room tom siebel. helping businesses to the u.s. army. tom, great to have you here. there is this, to. just announcing its new more powerful jeep pt turbo model during its first in-person event just an hour or two ago. what does the chap bought race look like now that they are upping its game and elon musk is entering? >> i think the bottom line is the innovation that we will expect to see in these models,
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coming one, two, three, four, five years is just mindnumbing. they will innovate and innovate and innovate. whether it is elon or facebooker whatever it may be. we will just see massive innovation and increased functionality that will be available to the government and the defense industry and consumers delivering much more probable technology. unimaginably powerful technology had almost no cost. >> almost no cost. microsoft slapped a price tag on its earlier iteration of $30 per month. people do not seem to be blinking because they are using it in unbelievable numbers. this is what elon musk says it does. it is able to answer "spicy questions" that are rejected by most ai systems. he says it understands irony better. i don't know if most people are
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looking for facts and ways to write speeches and things. maybe that is part of it. it almost seems like it will be the class clown. is there a market for that? >> clearly one of the smartest guys in the history of the information technology. you just cannot count him out. he tends to do things a little bit tongue-in-cheek. he has innovator. he is an entrepreneur. he is the smartest they get. you cannot count him out of this you will expect massive. they will be doing everything that they can and they will be leapfrogging one another. >> do you get the expense that they will be squished by the side of the road like a bug because they have invested billions of dollars? >> i think that it is assumed
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that one of microsoft are open ai or google or facebook are going to win this war. i don't think there's any reason to believe that. when we get to the internet, when we get to all of these new technologies in the past, some company that nobody ever heard of. there was a time when nobody ever heard of google. remember that? google was nobody. so, you know, i think that the winner will be we will see who it is. >> you guys are already winning. in your area of the industry, by the way, for people that don't know, i introduced urc adult in the room when it comes to ai. you started this back in 2009. you saw the trench. you saw the opportunity. use all the possibilities there. you help businesses create all
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kinds of ai driven applications. what is the most exciting thing that you feel you have created or accomplish in the past year just coming up on the anniversary of chat gpt. >> we did get started before everyone started talking about. we spent about 15 years and more than a couple billion dollars building a technology platform that allowed organizations around gas and utilities in defense and intelligence manufacturing healthcare telecommunications to build massive scale enterprise ai applications. now these new developments that we are seeing supervised learning, unsupervised learning, generative ai, large language models, we are able to take advantage of these technologies immediately to the benefit of the united states government, united states consumer, manufacturing companies. we got started about 15 years before anyone started talking
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about. >> that is how you got that ticker symbol ai. i want to ask you about the stock. you have had an incredible year. it is skyrocketed about 140%. when you look at the stock internals, one of the things that we notice is 40% is shorted what does wall street have wrong and does that frustrate you? >> well, i think at large, late 2023, if we are going to short the ai market, that is a pretty bold that. we do not know how big this market will be, but it is in trillions. it is, you know, not the leading company in enterprise ai will be one of the leading companies. in the long run, i mean, $100 million cash in the bank, theory well-established
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organization. what it all sorts out, i think it will be a great company and the stock will just take care of itself. >> not in 2024 when you have telegraphed that you will not be profitable because you will be taking all the prophets and putting them back into growing the company. correct? >> we are investing in growth in ai in a huge way. the opportunity probably doubles the size of our market opportunity. this is just huge. >> tom, come back. it's always good to see you. thank you. >> news from elon musk southern company. tesla planning to build and affordable electric vehicle at its giga factory in berlin. we have heard that before. how affordable, there may be a price tag now. find out next. thirty-seven minutes left to trade.
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meandering kind of where the markets are going. they have been down, they have been. right now that dell is holding onto six points of gains. flat to slightly higher. we were just talking about elon
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musk. let's get to tesla. ramping up efforts to appeal to the mask market. musk has long dreams appears to me making it one step closer to reality. the ev makers planning to produce a cheaper model at its factory in germany. the press tack 25,000 euros or just under $27,000. where is reuters getting this? they visited the giga factory just outside of berlin where a source says he inform staff of the plan. shares were higher earlier, they are down about a half a percent now. catching the tailwind ahead of the earnings report on november 21. bank of america analyst who has a buy rating and a $650 price target said he expects the ai chipmaker to beat court of the expectations and raise its outlook for the future. did say earnings may not matter as much to investors than the
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detail ceo giving on the earnings call regarding how u.s. restrictions on ai product shipments to china have impacted business. hopefully, we will all get some insight on that. currently up one and half% at $456.52. we told you at the top of the show dish was the worst s&p performer today. dish network losing connection with customers. at the lows of the session down 35% after the company swamped with surprising loss in the third quarter. dish network's revenues also came up short of expectations driven by a loss of about 64,000 net paid tv subscribers during the quarter. shares are on pace for their largest percentage decreased six august of 1998. constellation energy is surging six and a half% right now. on track for record close after the clean energy provider posted a quarterly profit and raise its
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failure profit forecast. extreme weather boosted electricity demand. shares currently topping the s&p and the nasdaq. hedge fund hot show writing a brand-new open letter to harvard 's president asking his alma mater to do something about the rampant anti-semitism on harvard's campus or face funding consequences. yes. he is ready to pull the plug on the money. details on that next. israel projects growing calls for cease-fire in gaza as the forces are said to deepen their offensive against hamas and rescue the hostages stuck in the tunnels. the former u.s. ambassador to israel under president clinton joined us next to discuss whether ac's buyer is possible under what circumstances and whether he should even be called
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♪ 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? ♪ bill ackman using the twitter bullhorn to blast is alma mater. he posted on the social media network. calling the anti-semitism on harvard university campus dyer and much worse than realized. they met with jewish israeli and non-jewish students on campus last week in an effort to
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address the issue and he calls the university presidents choice to not condemn pro- palestinian demonstrations on campus a " failure." lydia, he was the first after the october 7 massacres of 1300 israeli civilians. he was the first to say, you know what, when the student groups signed april hamas letter let me know who the students are so i don't inadvertently hire them. he has wrapping that up now. >> taking it a step further now. demanding the university suspense students now that are found to be making hateful speech or have been seen and that viral video that you have probably seen physically accosting another student on the harvard university campus during a pro- palestinian rally. we asked harvard whether those suspensions will happen. the university just got back to
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us pointing to prior statements that say these incidents remain under investigation. that is exactly what alarms ackman. it should not take the university a full investigation to know that the conduct of students are pro- palestinian rallies warrant a suspension even if the speech is protected under the first amendment. he says harvard is a private institution with a code of conduct and the speech is making jewish and non-jewish students feel unsafe. he says that should be enough to amount to a suspension. in his open letter to harvard published over the weekend he said he met with more than 200 students. "jewish students are being bullied, physically intimidated, spat on and in several widely disseminated videos of one such incident physically assaulted". message boards complete with anti-semitic statements. on-campus protesters knowingly called for violent insurrection
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and use of elimination language seeking the destruction of the state of israel and the jewish people. the letter comes as an example on college campuses. university of massachusetts student was arrested after allegedly punching a jewish student and spitting on an israeli flag on friday night according to the university the student was released on bail and is prohibited from returning to campus. we have heard as you know from deep pocketed donors who are now threatening to pull back on financial donations. they have all weighed in. what is different now from ackman? he is suggesting that harvard and other schools are now being discriminatory by allowing these demonstrations and not taking action. to him, it is a civil rights issue. the schools could lose federal funding because they are now allowing an unsafe environment for jewish students. billions of dollars. federal dollars potentially at
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stake here. >> such a disgrace. an absolute disgrace. jon huntsman, they have donated billions and hundreds of millions of dollars. he has not even jewish. he is more men. he is very unhappy about all of this. as we continue to watch us, thank you. college campuses continue to grapple israel must now grapple with iran's ever-growing presence in this war and pressure from countries around the world for israel policies fire. the biden administration says it is not one of them. the white house announcing today plan to send $320 million in weaponry to israel. that according to the wall street journal. national security council coordinator john kirby confirmed the united states continued support of israel. >> we do not support a general cease-fire. we do support humanitarian processes in play.
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aid and hostage release. a safe passage of civilians from one area to the next. >> and yet, calls from other leaders about a cease-fire continue even as iranian state media confirms that state leader bet with the leader of -- but they say it did not play any role in the surprise attack on israel last month. let's see if we believe that. israel is also dealing with attacks on the lebanon region. it was retaliating and striking has blood targets in the country just hours after a shower of rocket streaked over the lebanese border right at israel. let's bring in the former united states ambassador to israel under president bill clinton. he also served under ronald reagan. he is a first foxbusiness interview. ambassador, first, do you believe that the supreme leader
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of iran when he says we had nothing to do with the october 7 planning. >> well, i am not sure i believe the supreme leader, but i keep my eye on the administration not directly charging iran as being involved in the military operation in an operational sense or directing it. but, the reality is that iran is a major supporter of hamas politically and ideologically. armed supplies and financing. so, it is a thin curtain there. it is important to note that the administration itself has not drawn that line that they were involved in the actual operations of october 7. >> the wall street journal did initially come out with a very
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detailed and well sourced article saying that it did, but at the moment, you are correct. the administration is not ready to make that connection. let's talk about the cease fire and whether israel, if you were still the ambassador, if you would say to them, please, have this cease-fire. by the way, if israel calls a cease-fire with hamas, who is to say hezbollah up in the north which is an absolute proxy for iran would stop their attacks. >> that is a good question. the point is that i think the administration is not itself asking for a cease-fire. many other countries are asking for a cease-fire. especially in the arab world. what they are asking israel to do, that is one of the reasons secretary of state antony blinken went to israel and sat down with the prime minister is what they call a humanitarian cause and in order to allow
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badly, sorely needed food, fuel and relief and medicine to get into gaza. as a result of the israeli retaliation against the attacks on october 7. so, there is a bit of a difference between a cease fire which is more permanent than a humanitarian cause or humanitarian causes. but it seems what i have read, netanyahu is even rejecting or fighting back or resisting against even a humanitarian cause because the israeli military, having a very strict military game plan that they are putting into effect to try to eliminate the military capabilities. >> and the hostages.
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let us not forget the hostages stuck in underground tunnels. >> a very important part. >> crucial. a very important part of that. you have to connect any humanitarian pause or cease-fire to whatever negotiations are going on in the background to release the 240 odd hostages. that is a critical issue. >> definitely. that is obviously exactly what benjamin netanyahu said was the prime focus. it was eliminating because it cannot stand in swirling over the borders and chopping off heads of babies, putting them in ovens. i am sorry for our viewers, but that is what people do apparently need to hear because a lot of people do not seem to get this. let's just talk specifically about the political atmosphere surrounding this.
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nikki haley put an op-ed in the new york post and it is a pretty serious one. it is entitled peace is not possible with terrorists, hamas must be destroyed. she outright says that we have to send a message both through israel and ukraine that evildoers so to speak on the russians and thomas cannot go unpunished. >> obviously, israel had to react to the october 7 attacks by hamas on israeli citizens in southern israel. you know, this event of october 7 is equivalent in my eyes to the yom kippur war of 1973 when israel was attacked by both syria and egypt. a surprise attack that took israel off guard. caught off guard by the october 7 attacks by hamas. it was an intelligence failure.
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also it failure policy. because netanyahu especially has government were playing hamas off against the palestinian authority and allowing certain support to come into hamas in order to keep the palestinian authority and the palestinian leadership divided for various reasons. but, they also thought that they had deterred to a large extent. that proved to be false. so, this is earth shattering what happened on october 7. i think after, i don't know what time frame this will be, but after the military operations by the idf against hamas and gaza are completed, there has to be a day after scenario of what strategy will work that has long-term security for not only israel, but for the palestinians and the countries in the region.
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>> the palestinian people deserve better. the civilians deserve better and gaza. >> absolutely. ambassador, thank you. thank you very much for sharing your perspective on this. >> my pleasure. liz: retailers calling it quits across the nation. mcdonald's closing its doors after three decades in downtown san francisco. target did not even get to open its doors at the philadelphia location. find out why next. closing bell ringing in 12 minutes. best buy target macy's now.
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jeff? >> reporter: they pulled out of the deal. this was the newest target in the u.s. it is in university city neighborhood here in philadelphia. under construction right now. we just got word this week they have bailed on it. we have renders, that was going to look what it would be looked like. it was a site that would be redeveloped. it is not a bad neighborhood. target as you know, liz, had huge issues with the retail theft thing. they said this year they will lose half a billion dollars more than they lost last year. they have closed nine stores, not counting this one across the country. seattle, portland, san francisco, oakland, new york city. all urban areas. all of them with a lot of difficulty with retail theft. so it is not just target just to be clear. i think you know this. u.s. chamber of commerce said they surveyed s&p 500 companies this year and so far mentions in their earnings calls of the
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losses associated with retail theft up 43% this year and that number that you quoted earlier, 112 billion with a b dollars, man, who is paying for that? i think it is you and me. i leave with you this one. what are states doing about this? what is being done inn general? states, 19 of them, now passed laws toughening their retail theft statutes. you know a lot of prosecutors in towns like this one, philadelphia, you know you got to steal i think it is 400 some odd dollars before you get prosecuted in any serious way. the theory was, well you know, we want to use our prosecutorial resources to do violent crime but you know, this has a pretty big impact too. if they thought that was going to have a chilling effect on folks ripping things off, i don't think it did. liz: that is so, so sad, so sad. jeff, i would love to say thank
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you but it is a really depressing report. thank you very much. >> reporter: kind of that. liz: it is a business story. we got to tell our viewers. it may or may not really start to affect the bottom line. jeff flock, thank you. closing bell, we are four minutes away after the best week of the year. the bulls kind of slowed down their stampede. all the major markets are up slightly before the closing bell. investors will be keeping a close eye -- you thought fed chair jerome powell was done last week, done making appearances? oh, no, he will make opening remarks at a federal reserve conference on wednesday. as we await those remarks our countydown closer says the fed is done raising rates for the year. time to put money to work in specific places. ross mayfield, an investment strategy analyst at baird. ross, markets, i mean still pricing in a little bit of a chance of a rate hike in
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december, tiny but you say, fed is going to pause once again and it's really an opportunity to put money to work. where? >> yeah, absolutely. we think the fed pauses. i think the jobs report showed a lot of weakness, softness in that area is the final nail in the coffin there where we're putting money to work? i think the soft landing case is still on the table. you look at something like industrials which are a little cyclical but have tailwinds and nice quality businesses. it is a nice diversified sector. it is not heavily cone straighted at the top but other industries. defense have a lot of tailwinds. we still like tech. the valuations are not crazy. a high quality businesses low debt, so those high rates are not as big of a headwind. still opportunities for investors even after the rally last week. liz: let's talk specifically about some of the sectors that you absolutely think have an opportunity to move much higher,
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or markedly higher, something that will beat the s&p? we all want to beat the s&p performance. >> yeah i think looking to something like energy or industrials is the place. we're at a point it feels like rate cycle. fed has quit rising. look away from the cyclical and value stocks at this time there are structural tailwinds for things like industrials, federal spending, countries putting money into the aerospace and defense budgets or where you have to the supply demand imbalance. oil moving higher on geopolitical turmoil. the companies are better run than they were in the previous decades. we like high quality cyclical value stocks even at this point in the cycle. liz: longer term interest rate environment, placing any money in a certain part of the yield curve? treasurys have become that must have conversation no matter what
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you're investing in. >> a lot of our clients are wealth management clients. they're older. they have been waiting a long time at some real yield, some high quality yield to live off of. the fact you have treasury rates at the long end of the curve, four 1/2, 5%, we've been talk to clients putting money into bonds. we're not calling top in yields. there may be still room to run. it is an opportunity after 15 years of rate repression for folks to get some income and clip a coupon to live off of. we love high quality bonds here adding to duration. we think it is a great opportunity. liz: rate repression, i like that. that is an interesting term. great to have you, ross. thank you so much. [closing bell rings] here is the closing bell on this monday. we see the nasdaq, s&p and the dow eking out some green at the moment. tomorrow we have earnings from rivian and ebay and tennessee senator marsha blackburn. ♪. larry: hello, folks, welcome to "kudlow," i'm larrku

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