in 2003, 15-24 year-olds used to spend 160 minutes a day with friends. now it's down to about 50 minutes. what do you blame that on? >> social media and tech. >> travesty. if you ask them the minutes with their friends online, the number would go straight up and it's devastating. >> that tells you how much time on your iphone every week. i hate that. no, it's a problem. we need to be with people in person and social media is great and it's not the real deal. charles: come back to the next category. listen, everyone is on pins and needles and red on the screen and lucky for you, taylor riggs in for liz claman. you've got a big job. taylor: talking about the godden bachelor. no, we'll do nvidia. thanks, charles. we're beginning in final hour of trade with fox business market alert. you're watching all of the record high slip away at this

hour. i'm taylor riggs in for liz claman. it would be a record close and slipping off the one-half of 1% and s&p 500 and nasdaq off on the 1% and nasdaq turning negative for the month. but, the only stock that this market is focused on is nvidia. dan ives and web bush calling nvidia the most important earnings of reporting this year. goldman sachs the most important stock on planet earth and ameriprise financial saying it could have more impact than jay powell's whole speech last week. if that's not pressure, i don't know what is. last week daniel newman of the future group told us all of wall street dependent on how this earnings report goes. take a listen. >> the entire market is at risk. you could almost cross off every other economic indicator going to come out this week and nvidia not showing up and that's not just hitting the number. that means beating the number.

there's not a lot of room for error, but i don't expect one. i don't expect any errors here. it'll be clean. to the best of my recollection it could be volatile and correlates to 1% move in s&p 500. remember this, the stock is up 150% this year. and up nearly 1,000% from that october 2022 bear market low. i am pleased to say that's where we're beginning with the floor show. joining me now, asset management strategist dan greenhouse and david kudla. what are you looking for today, david? >> good afternoon, taylor. well, i think everybody looking for a blowout on earning ands we've seen 14 out of the last 1n earnings but, you know, with the whisper numbers, we need to see

something big. we want to see revenue beat and earnings beat and beat by a wide margin. we expect that with the weight of the world economy and world stock markets on nvidia's shoulders, that's what we all hope as investors that we do see in an hour. taylor: dan ives at web push bush said this is the new oil and gold in the new economy. do you agree with that sentence isn't the impact nvidia has on the broaderrer market? >> yeah, listen, i find it often difficult to argue with dan ives. he's generally right about these sorts of things and he's probably right in that description of today. i would push back on the idea that the entire global economy is hinging on the earnings report. i don't know if david is being hyperbolic but the park is dependent on the ai trade and not just the semiconductor

stocks but hvac and market and had nvidia at its core for sure and at the same time i wouldn't go as far to say the global economy is poised to fail if nvidia is reporting $29 billion instead of $30 billion. >> dan, i was being hyperbolic for sure. with a bell weather stock for ai, we can all agree on that and because we know how instrumental it is in that technology that's going to be transformative. it's going to usher in the next industrial revolution. it's not like eds but a lot of hype and now they've gone flat, this is real. and it's going to be meaningful. taylor: dan, where are we in terms of this pullback we've seen from record highs; right. it was just yesterday we were sitting here less than 1% from market highs on s&p 500 and slipping relatively close and seems to be like we're sort of in this waiting period. i don't know if it's rate cuts or nvidia, but sort of this

quietness underneath the surface. what is sort of that next catalyst to push us forward? >> listen, the answer is the next two important economic reports and going to be the cpi, which is before the fed meeting and the jobs report before the fed meeting and that'll tell us or help 2346 whether or not the fed from market cuts back to the basis and the market is assured of a rate cut or believes it's assured in the rate cut. only question is by how much and those two reports become the important ones to watch for presumably determining how large that cut will be. taylor: david, do you agree? >> i agree that they've signaled, jay powell signaled at jackson hole that it's time for an adjustment in policy and means easing and it'll start in accept and we're gone -- september and we'll be back and forth based on economic data whether it's 25 or 50. i think they'll start with 25 just for symbolism and the sake there's no indication or anyone takes away from it and they're

behind the curve and should have cut 25 in july and not surprised to see 50 for another cut by the end of the year. >> i would be surprised if we got 50. obviously we showed on the screen, there's about a 33% or one in three% chance -- sorry, 33% chance of 50 basis points. i'd be surprised. like i'm one of these people clearly i think the fed is off sides for lack of better word in terms of where the fed funds rate is relative to where it should be is probably a little toiboid wide but the idea that we need to cut out of the gate by 50 basis points implying they're off sides and i don't see that in the economic data report inflation day that . the economy is still doing quite well and job losses are low, yes, the unemployment rate is ticking up and david didn't suggest this at all but for the viewer at home, there's a legitimate debate about cutting at all. again, i think they're probably going to get 25 basis points and justifiably so and don't see any

reason for 50 50-basis point h. taylor: given outlook on recession or not and rate cuts or not, where's the right place in the markets and keeping ai and nvidia aside. what gets you excited? >> i'm with you on 25 versus 50 and depends on the dana later in the year hawaii this is -- what we have going on right now is a economy that's still chugging along, we've got inflation that's on a glade path to the fed's target and center creed niren the landing, we can brossen out and capping so strong for so long and look at small caps. look at value. for investor withs extended bond duration and monday market or ultrashort maturity, this is the time to be doing it because we're going to see the fed funds rate come down and interest rates come down a little.

taylor: my first love is the bond market. >> seeing david. taylor: the bond market. we'll leave it there. dan greenhouse and david kudla, thank you for joining me. really appreciate it. meanwhile some break news, israel's military launching a massive operation in the west bank and 10 hamas mill substantiates killed and israel is -- militants were killed and israel is rooting out hamas for further attacks and the top commander in the army now controls 500 square miles of russia's kersh region. today the ukrainian defense minister held a briefing with the nato ukraine council to share details on the situation and it is military needs. meanwhile, the biden white house working hard to keep china on the sidelines of the ukraine russia war. national security adviser jake sullivan spending the last three days meeting in beijing with chinese foreign minister wang yi

to deescalate military attentions and agreed to a call between joe biden and chinese president xi jinping and closer coordination between the two nation's top leaders and according to the washington post, china, they're waging war in cyber space in a spy campaign against american citizens. they're using some of the top internet providers to do it and that's where we're going to go next with grady trimble. he's joining us live from the fox business washington bureau with all the details. grady. reporter: ashley: taylor. these hackers in this case are believed to be going after intelligence from government and military% personnel working under cover according to the washington post report you referenced, which describes the attackings as unusually aggressive and sophisticated. so here's what we know from lumen technologies that monitors for hacking attempts.

the chinese state sponsored group vault typhoon is responsible for attacks hitting four u.s. victims since june. they went after servers used by center service providers here in the u.s.. and new today, the fbi, cybersecurity, and infrastructure security agency and other u.s. government agencies revealed that cyber actors associated with the government of iran continued to target u.s. organizations. those agencies say this includes organizations across several sectors in the u.s. including in the education, finance, healthcare and defense sectors as well as local government entities. they say they hit other countries as well to include israel, azerbaijan and the united arab emirates. >> we are under a tsunami of cyber attacks from iran and china. we have to go on offense, demonstrate strength, and start

imposing consequences and can't expect every company, every port, every pipeline to just play perfect defense against the state actor like chinese intelligence. reporter: if you don't think is a financial story, take a look at this. just last month, fed chair jay powell said that one of the greatest risks to the u.s. economy is cyber attacks. >> haven't had a really big successful cyber attack on financial market utility or bank. that's the kind of thing, which i think is the stuff of lying awake at night. reporter: these latest attacks follow warnings from fbi director christopher wray earlier this year saying cha china's cyber capabilities dwarf ours 50-1 and that psychoer attacks on critical infrastructure like oil and gas pipelines, public utility like water and pose a threat to american safety. could be a big problem if we don't take care of it, taylor. taylor: pretty scary stuff,

grady trimble, thank you so much. meanwhile foot locker stumbling out of the blocks after second quarter report failed to impress investors. we'll tell you what the sneaker store chain is doing now to stop the bleeding. and later, a weekend day away from nfl's opening day and league is opening it is doors to some new players. we'll tell you why private equity could soon find itself in the owner's box. the "claman countdown" is coming right back. ♪ when the sawdust settles and the engine roars the thing you care about is a job well done. but when you get your tools from harbor freight something about the job feels different - your wallet. whatever you do, do it for less,

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taylor: update on super micro computers. yesterday we report that had hindenberg research disclosed

accounting manipulation at ai server maker. well, fast forward to today, super micro computer delayed the filing of annual 10k report and said they needed more time to assess the effectiveness of internal controls over financial reports and shares are plunging a and off almost 20% today. still despite the recent slump, smci you're up about 50 -- over 55% year-to-date. not so bad. okay, switching to these retailers and it's been an ugly day for abercrombie fitch. the company lifted annual sales forecast after topping expectations for the second quarter and they're citing robust demand for logosless t-shirts and a tile i'm not wearing is the wide legged jeans and falling short of consensus and projected operationing

margin next quarter down signaling a potential somehow down. a look at foot locker and that stock getting kicked to the curb. that's a good pun. off about 10% today. now this is after posting a wider second quarter loss. the company lowered gross margin expectations all due to higher promotions. also said it'll close nearly 660 stores worldwide and move the headquarters from new york to st. petersburg, florida. meanwhile tale of two retailers because take a look at nordstrom moving to upside and up more than 3% on the day. this is after the apparel company reported second quarter adjusted earnings per share that came in ahead of estimates and the retail giant did beat on this quarter's earnings, executives issuing a bit of a caution outlook for the rest of the year, big retail roundup. we're all over it. meanwhile it's one of the fastest growing sports in america and now one fitness chain is hoping that pickle ball will boost its bottom line.

the lifetime founder and ceo is here next to tell us how he plans to do it. it's a fox business exclusive. and of course i want to remind you to tune into the big money show. brian brenberg, jack jim jordans and i kick it off at 1:00 p.m. eastern here on fox business. we're coming right back. ♪ limu, someone needs to customize and save hundreds on car insurance with liberty mutual. let's fly! (inaudible sounds) chief! doug. (inaudible sounds) ooooo ah. (elevator doors opening) (inaudible sounds) i thought you were right behind me. only pay for what you need. ♪ liberty, liberty, liberty, ♪ ♪ liberty. ♪

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taylor: national football league owners voting yet to allow a select group of private equity firms to allow up to 10% of team stake. it's the last major sports league to allow private equity. national baseball and national basketball and hockey league and major league soccer all allow private equity open of up to 30%. we go to kelly o'grady in the fox business news room. what do you know? reporter: hey, taylor, out of europe investment firms can own soccer clubs outright. nfl resisted this outside money for awhile and international expansion on the horizon, felt like it was time. 10% investment coming with other restriction and if i weres have to make a minute mall investment f 3% and hold for at least six years and they'll have to act as a silent partner as well and very different than that traditional pe investment where they certainly take a more active role in managing things and kansas city chief owner

clark hunt on the key priorities. >> first thing was to create investment policy that compliments the nfl's strong ownership policy. second was to attract a diverse group of best in class institutional investors and third create new source of capital that allows nfl clubs to continue to grow and enhance the fan experience. reporter: taylor, who does this make sense for? the teams obviously and average value of nfl team is $6 billion and that number is soaring with how infrequently teams come on the market and really few individuals that can afford buying a team and provides cash for owners to pocket or then go back and invest that in the team. from the pe side, this doesn't follow the traditional formula and pe money chasing ipo or near term exit and shelling out hundreds of millions with very little required incite into the team's financial picture and seldom opportunity to cash in.

teamuations rarely driven by profit and i'm thinking the attraction here is more being apart of 9 exclusive club getting in on the ground floor and investment space loosening over time. taylor: having pe and talking nfl and i need my niners to get another shot at superbowl. item reporter: i'm with you on christian mccaffery. that's my take away. taylor: the word east most valuable sports league, pick el ball is the fastest growing sport in the country. lifetime looking to capitalize on it. the health and fitness company is the nation's largest pickle ball provider with 668 courts across its gyms and they plan to have one thousand by the end of 2025. lifetime is ramping up luxury in austin, texas, with a new athletic country club opening also in 2025. the company is expanding its wellness offerings to provide a

spa experience complete with hot tubs, cold plunges, saunas and steam rooms. the fitness chain has become a med spa of sorts with the centers with people to conduct a assessment with medical proals for a healthcare program and there's a training program for members on weight loss drugs or those glp1s. that's all to help them better meet their goals. lifetime group holding, the stock has risen up 60% year-to-date. joining me in a fox business exclusive is the lifetime founder, chairman, and ceo. thank you for being here. first, talk to me about pickle ball and the -- pickleball and the demand you're seeing? >> first of all, thank you for having me. pickleball is really a sport that has all the elements necessary for something to be

excessable to all kinds of people. one that all family can come together and play. old, young, middle age, and has the potential for being exciting, exciting spectator sport as time goes on. i think the game i believe started as doubles game and fantastic from social aspect and sing 8s game will be exciting venue to watch. we are seeing no reason to expect that this will not be the highest participated sport in the country. country based on everything we're seeing over the last two years. taylor: the big investment you're making, how are you sure isn't just another fad? >> it's an interesting question so when i first started the company, very clear that all aspects of health and wellness will come and go. the moten dallas cowboysty of

exercise is -- modality of exercise is something that changes and health and well being is a trend that's here to stay. lifetime is a mega provider and offer a breath that nobody else comes close to from the largest provider of tennis, squash, largest provider of pickleball and you can go on. largest provider of full service spas. our customer comes from all aspects of healthy living and healthy aging in a gym. nosolike a country club and all of those things in one. it's the visit every single year. we are growing pickleball, growing tennis, growing personal training, we're growing it all. it's really a full spectrum. so if the pickleball at some

point starts slowing down, which all sports do, it will be simply the weak players that just get into it and will basically see it in the health club space. people come and go but lifetime has been around for 30 some years. taylor: goody verseification of revenue on your part i'm -- good diversification on your part i'm sure. talk to me about weakness in the consumer and weakness in the low end consumer, but we're starting to hear cracks that more of the high end consumer is being a bit more discerning with their spending. how do you ensure that you're able to tap a healthy consumer, particularly with elevated price offerings? >> it's a fantastic question. when you think about all those things that a company can do to innovate new products, deliver service and quality and all the things that are within control of an executive management team and execution of their facilities, basically that has

potential for incremental 10%, 20%, 30%. the gdp of macroeconomic could be up a couple percent or down a couple percent. sown less there are seismic events like a great recession or like a covid where they're basically shut down and not allowed to operate, our executive team is capable of navigating and right now we're not seeing any weakness whatsoever. all of our businesses are humming along. taylor: interesting. you talk about a seismic event. i am not sure in my life i've seen a bigger seismic event than these weight loss drugs. typically from my standpoint, i think if i'm on a weight loss drug, i don't need to go to the gym. prove me wrong. >> all right, that's probably the best way anybody has asked it, taylor. let me respond to that. so the drug is here to stay and

i've been on tv shows now for a year talking about this. the drug is here to stay. the big pharma is behind it, there are great science supporting it, everybody is after it. it's the next gold rush. there's legitimate solid science that helps you actually lose weight. how does it do it? helps you control your appetite and eat less and you're going to lose muscle mass, then you're going to lose bone density. you can avoid that avoid it but you have to compliment the weight loss drug with exercise, with weight lifting. i've been a big believer that these drugs will help the entire health club category and won't hurt it. initially it sounds like, yeah, if i do this, i don't need to work out and you lose the weight and lost your muscle and body starts looking what i call

skinny fat, you need to go workout. state of america if you look at planet fitness, they're low end and we're high end, but they're a great company. look at all different companies, nobody's results are seeing any impact but positive from the weight loss movement. taylor: okay, i asked you to prove me wrong and you're getting there. i like the skinny fat. i like that saying. bahram akradi, thank you for joining e many. i appreciate it. >> thank you for having me. taylor: the 2024 presidential campaign is hitting battleground states really hard today. trump's running mate jd vance concentrating on the rust belt of pennsylvania and kamala harris heading down south to georgia to kickoff the bus tour. a live report from the beach state on all those campaign movements. and of course it's a biggy. all eyes with the ai champ is

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taylor: jd vance speaking moments ago in'rendition of anthony epa and visited a logistic company to discuss the economy and policies and the trump vance ticket is focusing on the rust belt state this is week. meanwhile vice president kamala harpeharris is headed south at e savannah hilton head international airport in savannah, georgia, at any moment. she's set to go through the she's set to go with running mate tim walz on a big bus tour.

mark meredith joining us live from savannah with the details and the campaign's attempt to keep georgia blue in november. what are you hearing, mark? reporter: good afternoon, taylor. a lot of fighting for georgia and vice president harris touched down in savannah and making multiple stops in more rural communities before spending the night down here downtown and the harris campaign is trying to invest in areas where traditionally democrats have not had a whole lot of luck. the state party has opened up dozens of field offices across the state of georgia hiring a 190 different volunteers and questions of whether harris can win in the state where trump continues to lead. politico writing it's a high risk, high reward strike thaty returning to the trail after the convention to visit a state that many democrats feared was out of reach in recent months. a new york times poll likely georgia voters showing the former president is leading harris by about four points within the margin of error and democrats won this state four

years ago by less than 12,000 votes and governor tim walz was in boston today and he'll be in georgia this afternoon if he's not already here. while in boston, urging international association of fire fighters to back their campaign and the union has not made an endorsement yet and walz made a direct pitch and had to use a baseball analogy to get the point across. >> game seven of the world series, we're down a couple rounds but we have the rally hats on. we have runners on base and heavy hitters are on deck. the hometown is going wild, sisters and brothers in labor, it's time for you to step up to the plate. reporter: unclear how soon the union may make an endorsement and the teamsters have not made an endorsement and thinking they'd act soon after the convention and vice president harris is expected to meet with the group soon and there's talk with you see the teamsters teams back trump, at this point it's wait and see. taylor: we'll come to you on the updates.

mark me meredith, thank you. lit columbia realm and all too fierce competition in ai. nvidia may be undisputed leader in graphics, processing units, you know them as gpus, but there's a new player that thinks it has an enemies on the chip maker coming to specialized ai chips. they call those asics. etched is a startup founded by two harvard dropouts making a big bet on the ai boom. the founders claim they have an 18 month head start on nvidia with their chip, they're calling it sohu and they think their chip could be really could drive etch, the company, to be one of the biggest companies of all time. joining me now in a fox business exclusive is etched cofounder and ceo gavin berte. great to have you on the program. talk to me about your chip and tall our audience why it's different than nvidia gpus that we hear a.c. >> great to be back on the show, taylor.

at etched, we're building very specialized chips. today all these things like chatgpt or stable de-fusion that has ai images are powered by the same underlying algorithm called the transformer. nvidia, google, and other companies make flexible chips that can be per taint to run different -- pertinent to run different kind of models and ours run the single kind of transformer models and exchange for specialization, it's much, much faster. almost 20 times faster than leading nvidia processers. taylor: does that help then with computing power, you know, when we talk about ai, it's all about how much energy it is sucking up so efficiency is key. where do you fall in that race? >> efficiency is to key, taylor. we see the models getting bigger and bigger and bigger and more and more important to amertize the cost across many users at once. with etched asics, serve many

more users with the same number of chips allowing you to have much cheaper costs and dollars per user or cops with energiousage per user. taylor: dan ives calls nvidia the god father of ai and what makes you confident you could be in that space of a god father? >> we have a specialized bet. if we're wrong and one kind of model is not the future, well, our company will fail. but if we're right, transformers are the way of the future, we can be the biggest company of all time. i'm lucky i have a great team around me too. cto mark and was cto at cyprus before this and sold for $9 billion and hired in one of the leaders of nvidia's hdx platform team to be our vp of platform. taylor: i admire and appreciate the honesty about the specialized approach about what it takes nor your company to succeed or fail. you were last on with liz claman

when she was here in june. what progress report can you give us since then? >> well, made a great deal of progress on the chip side. we're ready to begin production before the end of the year. taylor: can you expand on that a bit? preorders or any idea who some of your customers are? >> i can't share too much right now but tens of millions of hardware reservations and looking forward to sharing more in the coming months. taylor: any time line on the go to market strategy? >> welshing the most important thing is for us to ship before nvidia's blackwell processers. taylor: that's huge; right? >> talking about the delays. i think wall street is worried about it as well. i don't know if he'll hear about it in the earnings report later today, and nvidia only provides guidance at one quarter and it's a thing a lot of investors are thinking about. taylor: the delay in blackwell chchips from nvidia helps you gt your market out before?

>> for a lot of competitors, it's a great opportunity. taylor: okay. talk just more broadly about the ai space. we have breaking news headlines coming up in just the last few minutes. there's a fundraising going on for openai, latest that's going to value the company of over $100 billion. we're hearing from "the wall street journal" and thrive capital leading with a $1 billion investment. what does that signal to you about the fundraising opportunities within ai? >> i think is signals the market is hungry for ai investments. people leave that ai is going to happen very soon. i think the key to this requires a lot of capital and a lot of gdus. or other asics like the ones we build. investors are hungry and going to spend the cap x required to build out the ais. taylor: well, gavin uberi, you want to thank you for coming on

and join us again when you have more update ons your business. best of luck. >> great to be on the show. taylor: securities and exchange commission continuing to drabbing down on crypto ahead of the 2024 election. charlie gasparino has details on sec's open season on open seats. charlie is here and he's breaking it all down next on "claman countdown". ♪ clem's not a morning person. or a...people person. but he is an "i can solve this in 4 different ways" person. you need clem. clem needs benefits. work with principal so we can help you with a plan that's right for him. let our expertise round out yours. ♪ when the sawdust settles and the engine finally roars the thing you care about most

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taylor: bitcoin falling below $60,000 again as stocks continue the tech led selloff at this hour. the drop comes after the ceo of world's nft platform, received a wells notice from the securities & exchange commission. that is the regulator claiming that nfts may qualify as unregistered securities. the move signaling to the crypto community that gary gensler doubling down on his crypto crackdown and what could be his final few month as the chairman of the sec. let's do more now with charlie gasparino. what do you make of this? >> well, what is interesting you have mark cuban who he like and admire. you have anthony scaramucci, both entrepreneurs, you have ro khanna, the congressman from

silicon valley running around tieing to tell crypto people, high level crypto people democrats really don't hate crypto. the biden administration, biden-harris administration really likes this industry, open arms. then you have while they're doing, that talk about disconnect. you have gary gensler just going full ball, bore into regulating crypto through enforcement. i can't imagine anybody will fall what cuban and scaramucci are selling but here we are. listen, this is the largest nft platform, openc. they have weird names. taylor: openai. >> any event, wells notice, we should unpack, wells notice is when the sec's enforcement staff alerts a company it has agreed

to recommend charges to the full commission. taylor: but it doesn't actually mean charges are imminent, right? >> it usually means it is imminent. taylor: it is? >> doesn't mean definitely 100%, but i give it like 95%. taylor: interesting. >> it should come on pretty soon. the wells process allows the company to go in there and argue. i guess they could say no. i'm pretty sure crypto friendly commissioners like heather pierce will say no, this is throwing in the in the face of mark cube bang, scaramucci, basically saying to the crypto business you guys are out of your mind you think you will come here, trump basically all but said we'll do a safe harbor for crypto. back off the industry. taylor: right. he owns a million dollars of ethereum. he is putting his money where his mouth is. >> i wonder if he knows he owns it. taylor: like a hard wallet. but you can't find it. >> i want the crypto, i want the

crypto. i made the crypto. [laughter]. that's pretty good. no, but i just wonder, does he know -- it doesn't matter. he opened up, he reached out to them. he was at the bitcoin conference. he is a rock star in the crypto community. if this election which it is not decided by cryptos, trump would win. taylor: yeah. >> i think scaramucci and cuban should just go home. go home, mooch. taylor: 30 seconds, nvidia, what are you looking for? >> just how much they beat. if they beat expectations by the way, i will give you a little story. taylor: yeah. >> i was finishing up work yesterday. my broker called me, nvidia, markets are going to rip tomorrow beat expectations i think they are. buy the s&p. i said i know i've been there before, pal, not happening. so we'll see if i screwed up. but i think, if they beat expectations markets rip

tomorrow. that doesn't mean it is always going to rip. it doesn't mean, by the way, you remember the markets ripped on the netscape ipo in 1995? taylor: it didn't work out so well, did it? >> it did but we don't use netscape anymore. we use google chrome. taylor: charlie gas. love having you across multiple stories. closing bell rings in five minutes. major indices down 170 points. it will turn down negative for the meant. the dow on pace to snap a three-day winning streak. the s&p 500 now on pace for the second day of losses all in the last three. everyone is keen on nvidia's earnings report in just over a couple minutes here but, remember, this is not the only company reporting after the bell. there are others, right? crowdstrike, hp, netapp, oct amount, sales force is a biggie,

they're set to unveil their numbers. today's down down closer says there set per investment to pad up your portfolio as the summer comes to a close. sx investment management senior portfolio manager nance prial. thank you, nancy, quickly for joining us. before we get to the some of the other ones what do you think of the hoo and hah over nvidia. >> it is a bellwether stock in today's market. it is a large percentage, not only in the s&p, not only in the russell indices but the semiconductor indices as well. it well could be market moving the thing we don't know what is really discounted. they could beat but if not by enough they could go down. they could miss, if better than the fears were could go up. we'll see. we believe the spend on a.i. is going to continue. i don't know nvidia will be the long term winner. there will be a the love opportunities for a lot of companies as a.i. gets

implemented as the tool that it is. taylor: are some of those within the smaller cap space where you really look? >> there are some of those in the small cap space. they tend to be in the unexplored corners if you will of small cap. we particularly like some of the software companies that are utilizing to deliver, i'm sorry, product tivity gains to both their customers and themselves. as well as the companies helping with managing all of the data that needs to be used and generated with not only a.i. but all the data driven strategies out there. a name in particular that th isa beneficiary of that is a company called av point, avpt, tied in with microsoft's copilot. they are winning contracts and beating and raising. really interesting small cap company, about two billion in

market cap. taylor: the biggest criticism i get about small caps, people say they're small for a reason because they cannot grow and cannot scale. could you agree? >> i don't agree at all. all of today's big companies were small companies at some point. what got them out of small company and small cap dumb if you will, is there ability to grow their business, scale their business and then get discovered by investors. we look for companies with moats with sustainable competitive advantages, and with management teams that understand how to take a company from 100 million to 500 million, to a billion and on up. that's what gets you small cap stocks that can become large cap. taylor: we just have about 30 seconds. can small caps do well if we stumble upon a recession or a deceleration of growth? >> well, those are two different questions. taylor: well-said. >> small caps can definitely do well if growth decelerates. particularly the day when the

valuations on small cap are already discounting a recession. a recession is probably a little more problematic in the very short term but, coming out of that slow down, small cap stocks tend to be the best performing areas there and again, at less than 20 times earnings for small caps and less than 10 times earnings for micro caps, we think a lot of that is in the price of the stock. taylor: they did really well during the trump 2016 era, when small caps really took off. nancy, we want to thank you for your time. [closing bell rings] the as you sankey the dow snapping a two kay winning streak as we await the nvidia report. that is coming next. that's it for claman. "kudlow" is next. ♪. david: hello, everyone, welcome to the a special edition of "kudlow." i'm david asman in for larry kudlow. kamala harris flip-flops are piling up all over the place. first it was the economy, energy, he