and then mega caps next week, too. what's your sense? >> i think the mega caps are the key point here which is that's what's so very different than 2022 when fourth quarter was really weak, we saw weakness into the end of the year despite seasonality because of tax loss selling. the mega caps have been weak all last year and so people were using that as a way to recognize tax losses. that's not happening this year. and maybe it will be delayed in wanting to recognize tax gains which just means the area people will be selling into will be smaller places like the russell 2000 or utilities, staples, health care, those likely can't pull the overall index down. now we would watch the 200 day moving average closely. we bounced off it earlier today. we bounced off it a couple weeks ago. if that doesn't hold, it likely lowers the probability of a big santa claus rally. but if it does, we could see the chase in the window dressing into year end. >> what happens, dan, if the earnings next week, and basically all of the mega caps except for apple a

these are the stocks going from the smallest market caps to the largest market caps.rmers? that's right, smaller caps. guess which one has most significant gains, larger market caps. that is maybe logical. from time to time the small caps exhibit a little bit more moxie. last week, small-cap growth, core, value were best performers. outgrowth of mid-cap stocks. anyway, small caps looking pretty intriguing. every time we see this is a flash in the pan. they go on to move even lower. i want to bring in kaltbaum capital management, fox news contribute gary kaltbaum. it has been a remarkable year but maybe not as remarkable many say shouldn't the large cap capitalized companies out there have the best stock market performance? >> all i can tell you, charles, i really think the big institutions are reaching for liquidity and the liquidity is in the megacap names. that is why they outperformed quite a while. nasdaq up, three to one advance the negative declines, russell 2000 getting whacked again today, not to mention the mid caps. i still think the train is going down the

debt on the balance sheet, and a lot of small caps aren't profitable. so what you have to be careful of is the balance sheet. we think we are late cycle usually small caps only sustainably outperform at the beginning of a cycle when there is liquidity flooding into the market so small caps, you can have a big bounce, 10%, to get you back to the 200-day moving average, that is not likely to be sustained. unless we start to see support from policy. >> you said policy i think fed meeting. right? >> yes. >> i said to mike santoli a couple of hours ago, i thought you could make the argument that this was the most consequential fed meeting where nothing is expected to happen they're not going to raise rates, we don't think. but i wonder what they're going to say relative to where rates are, and feel like the move in rates has given them the flexibility to be patient, but if that's the feeling among chair powell, and others, the chair didn't really give us that feeling in the speech that he gave at the new york economic club recently, where all of that was on

we moved past the bank part of earnings, sort of, and we have five or seven mega tech caps out of the way, and -- >> apple is later in the week as well i think as far as earnings, you know, the read continues to be okay, but then it's the guidance that is a little more worry some in some of the cautious commentary >> let's get to the judge. >>> welcome to the "halftime report." i am scott wapner. the fed meeting, apple earnings and jobs reports all on deck likely to move markets with me, joe terranova, steve weiss and jim lebenthal. checking the markets, i said we have a bounce and we do across the board. there you go a pretty good day on this monday which is the most important, joe, fed decision, apple earnings, jobs report, treasury, refunding, kwhich i know you hav been watching, so what is most important? >> treasury refunding. >> of all those, really? >> yes, i believe it is. secretary yellen's comments last week seem to indicate maybe the treasury is not going to pull back on the type of supply they announced in the month of august they certainly cannot surprise the market here.

cap is not going to come under pressure as well.ven then makes me hesitant in absolute terms to look at the russell as a long. in relative terms it's starting to look attractive relative to the mega cap growth. >> you think yields have peaked? we get the issuance announcement on wednesday, fed decision same day, jobs on friday. where are we on those? >> about a week and a half ago we published a note the same idea we look at systemic signaling, a handful of pattern based algorithms that identify trends in the market that give you risk-reward. those suggestions starting to buy treasuries we did suggest a long in the five-year note and think that looks like a peak. if we're right on the equity call and equities come under pressure that's only going to help and break the bond stock correlation and that will confirm the durable bullish reversal the technical signals aren there there and we're acting on it. >> jason hunter joining us >>> up next we're tracking the biggest movers as we head into the close. kristina partsinevelos is back w

again -- >> can't do it by cap? has been fixed upgh yes i think has just at theunt that it should be spending it lead some play in thes as it did in the founding era sums not exceeding statutes. remember those were annual appropriations -- >> where do you get that from? >> i think comes like it if i think the text of the appropriations clause, i think that's a core element of an appropriation by also speeded the word appropria , like what in the text ofhe appropriations clause makes it so that the rment is that the government can only come by the government has to fix the amount. >> was three things, your honor. the verse is i think that it is in there and what an apprion is. ot to be the alterations, alteration to spend amount of money. secondly, any spending -- >> what is the fixed amount part of that? >> sure, that's what getting at. ly spin has to be in conseq of an appropriation process got to be in consequence congress is judgment. in the delegate to the executive the aty to make that frontlineetermination, th

when you think of small caps, that's a huge segment. which small cap? if you're an index oriented investor start with the s&p 600 as a basket. the russell has more than 30% of stocks are zombie companies. i don't think this is the time up get zombie-type companies. >> i understand regional banks are within small caps, too. liz ann, do you think -- speaking of banks -- a couple days away from earnings season really kicking off with the banks, how about that sector? >> well, we need to start to see some greater participation. we're about to celebrate the anniversary of the low in the s&p 500. you've had zero participation, in fact, still negative for the bank index. that's never happened in history. i think you need to hear better news from the small and regional banks. >> are we going to get out of the gates okay on earnings or just have everything you talked about bubble up on the surface, uncertainty, ceos like jamie dimon saying, who knows, maybe another hurricane, geo politics are front and center. consumer spending and credit. you know what i'm gett

you can move down the market cap and industrial space to mid-caps and capture the opportunity of whereestment is going. we think that is a great place to think about allocating your portfolio as we head into next year. guy: emily, good morning it is guy. a lot of people have been intact and looking at the magnificent seven. we get many of these names over the next few days reporting. if tech stumbles, or industrials somewhere. you should look for an alternative. should you think about rotating your portfolio out of tech into industrials? should you think about abroad diversified portfolio in your equity book? talk me through where we are right now, where we then, and where we are going and whether or not this is an inflation point. emily: yeah, we look at industrials and mid-caps is a great way to diversify from the tech exposure. we been overweight technology stocks really primarily for the function of our preference for quality. we've been looking first -- for sectors with good return on equity, low interest burdens, and frankly the poster child has been mega cap tech but when you lo

big cap techs? one. >> okay. what do you think there is more of a market impact on, the positive report from netflix or the negative impact from tesla? without question i think it's the negative impact from tesla. >> i would say it's a moment in time, so whether it's a day or two days, it's a moment in time. >> but the market is in a critical place, steve. >> the market is, but i think the danger would be to read through the positive earnings of what is good for the economy is good for the market. >> you can't say it's good for the economy -- >> that's my point. >> it doesn't have to be good for the market and can be good for the economy. >> well, if you get microsoft and meta putting up good earnings and apple is floating along, by definition it will be good for the market overall. >> that's why the s&p and nasdaq are up what they are up on the year. >> exactly. >> it would seem as though stocks are down, but they are not -- many stocks are. >> yeah, own those three specifics or own the qs, but don't own the oth

small caps as you have pointed out have had a good time, but small-cap valuations are on an absoluteive basis, looking stretch. we do expect some degree of olatility and therefore large caps and small caps, even structurally over a feyear. it -- five-year stretch will be positive. >> flows negative in september, is that the start of a new trend? >> i think a lot has to do with how globally interest rates are behaving, and also in institutions where investor flows are concerned. what is the offset for indian markets has been the sticky domestic institution investor flows, and as you know, there is a systematic investment plan which works in india driving strong domestic flows, which offset some volatility where buyers are concerned. however, over the last few months, buyers and from a net flow perspective are fine. valuations are something that are making us uncomfortable, especially where small caps are concerned. >> valuations has a was been something that people have pointed out with india as being elevated. it's always been inexpensive market. the thing is, that should not be much

caps.g 12 times earnings. s&p trading 22 times earnings. being cheap in itself is not a catalyst for outperformance but i think the catalyst for small caps to do well if we stay out of a recession. large caps there is probably some truth. but i think small caps you get the best upside. charles: even with the large caps, you mention "the magnificent seven," the p-e ratio is 17, something reasonable, manageable, not a dark cloud hanging over the global economy. the central banks are always pointing out something else than doing their jobe. i like you brought up the small caps. russell up for days in a row. this is one of ugliest performances we ever seen on the russell 2000. you can't pick the bottom on these things but you feel pretty good about the risk/reward, don't you? >> strong relative outperformance, russell is up 5% the last few days. if you look for area of the market i think this is reason why small caps may rally. if we stay out of recession, say we have a mild recession the base

, because they are covered with another cap that repels antibodies and immune cells , pounces on thetibodies that are very universal to all influenza viruses, this is the idea, today, thanks to virtual reality technologies, we can move... to any space, not leaving the house, we have access to images and sounds; for the fullness of sensations, only touches are not enough, and this is exactly what haptics does, the task of this technology is to transfer kinesthetic information and create believable simulations. i study not only haptics, but also computer vision, mobile work technology, but it was with haptics that i began working under the guidance of our professor dmitry teteryukov. for me, this is an opportunity to work with something unique, with something that was invented here in other laboratories; it’s not even like that, it’s tactile the delta finger device, it is attached to the hand, helps a person wearing a ver-helmet to feel three-dimensional tactile feedback at the fingertip. the design feature is the use of a reverse delta robot mechanism. it consists of a base, three par

i think it should be okay. >> shannon, take us beyond the mega caps.hat you'll be watching more than some others? >> yeah, i mean, we have a number of large industrials next week, scott. i think that's another key point is this relative re-acceleration in manufacturing and the potential for infrastructure spend coming out of the inflation reduction act, does that create -- kevin made some trades in his space with cat. does that create some fundamental enthusiasm for the industrial sector, or does it -- is it just too late cycle to get excited about cyclicals. looking at expectations in the industrial space is an interesting point outside of the mega cap tech next week. >> what about you, josh? >> look, i think this is going to be a tough market regardless, and i think what you want to focus on, the thing that worked all year, is quality. you take a look at every sector in the market, the stocks that are on top in terms of returns year to date have one major thing in common. they're the in common -- they're the best companies with the best balance sheet

on the owehand, they've been talking about small caps and it's the mega cap story today.hat one of these final surrender moves that people feel okay, we can't hide there. the economy is good until further notice can the rest of the market have a little bit of a bid. that's where we are. >> let's see the resolve of the alleged dip buyers that's what it's going to come down to. those who said don't worry, if the stocks get sold off hard the buyers will come in and snap them up. it remains to be seen at what level they do that. >> it does you have to keep in mind even though these aresharp moves in alphabet and meta you're going back one and two months where they got up to these levels, and it creates this idea maybe there's a little more to chew through on the downside before you have a new group come in in general it's hard to kind of reconcile corporate earnings coming through well, the economy still with a little more momentum and cyclical stocks brutalized for two months. something has to give in that equation and maybe the market saying that's kind of a last gaps of ec

scott, you are correct, the mega caps sold off, and technology and mega caps were already overbought at that point. now where we are in the marketplace, you could make a reasonable argument that technology and mega caps have a little more of a comfortable valuation from where they were three months ago, and the fundamentals are still strong and the revenue growth is still strong, and the need to access the debt markets from these companies is not going to be there. >> let's say arc, for example, the arc etf, it was down 9% in september. why? that's the month we saw rates rise dramatically, as they did. and we are talking about zoom and coin base and that was up today, and it's about to go negative, and just to give you a flavor of what is in it, and that's far from all, but at least enough of what her holdings are, kathy woods, to give you a flavor. where in tech is a decent place to be in rates remain elevated? >> well, not ark, and it's a binary fund, and she chooses to be that way. it's a strategy -- i won't say it's bad or good, but you have to know that going in. >> it's still u

weighted than market cap weighted. and really just, you know, use cash as a place to deploy when those opportunities come up. >> i noticed your speck lar themes, which you say are necessary in this environment. you had the obesity trade on there. that's already worked so well. do you still think there's room to run? >> here's my response to that. there's probably not the same amount of initial upside, sort of similar to the a.i. trade and what happened in the first quarter of this year. but we are talking about a theme that i think if you actually dig into the numbers of the health care system and the issues in this country, there is definitely still room to run with true commercialization and sort of acceptance of these drugs. again, i think similar to a.i., there's not a broad understanding systematically of how they're going to affect the world. to get back to that, when we think about investing, you really have to look at the intersection of history and graphics. when you see some of our themes, reshoring, industri

wayne rooney had nine caps _ really short out of the goal!en - really short out of the goal! wayne rooney had nine caps when he - really short out of the goal! wayne | rooney had nine caps when he went really short out of the goal! wayne . rooney had nine caps when he went to euro 200a. bellingham has 27. the man from stourbridge has gone to spain and already earned a nickname — eljefe, the boss. he’s spain and already earned a nickname - eljefe, the boss.— - eljefe, the boss. he's been the catal st. - eljefe, the boss. he's been the catalyst that _ - eljefe, the boss. he's been the catalyst. that gives _ - eljefe, the boss. he's been the catalyst. that gives us _ - eljefe, the boss. he's been the catalyst. that gives us something j catalyst. that gives us something when you're in a type situation and you can read a lot of things. i think that willingness to engage with the crowd, they're rare traits and a player. with the crowd, they're rare traits and a player-— with the crowd, they're rare traits and a player. next month, england could no

aquutly than large caps. large caps provide an element of stability in the portfolio. if we look over the past 10 to 15 years, small cap values underperformed quite significantly. valuations are pretty attractive. we do think there's some near term and long-term attractiveness there, but if we're talking about a patch where we can have softness in the economy, where maybe the best days of the data are behind us and we need to wait for that stabilization to kick in, it could be a while before small caps reverse here. we're not calling for a quick reversal, but we do think on a medium term outlook, small cap value still has attractiveness, it's just based on valuations here. >> virtually no movement since the days right before covid took off. thank you. have a good weekend. talk soon. >>> let's turn to the vote for house speaker. third vote has begun as congressman jim jordan tries once again to gather support. emily wilkins in d.c. with the latest. what are the indications, emily? >> reporter: sara, so at this

because number one, most companies that the cap was put in place to in full. so on are just blatantly ignoring it, we're seeing that and ignoring it because they've got lots and lots of ships for us . and what, what that cap basically said is it said look, if you ignore it, then you wouldn't be able to insure the vessels that you use to transport prussia oil. so they've got loads of progress. he makes a point, lots of what he goes, rusty old call go ships, perfectly happy, but someone's input. if i'm a businessman, i've got to ship doing nothing along. i'm going to think, well, i'll just use that ship because, you know, i'm not going to try to insure something as well as to me anyway. so that's really what's been going on. and on top of that, it just depends that the rest of the business community, the oil and gas community, just the task. and there's actually an even most stopping just to split. typically we can actually look at now within the article, which i think sort of highlights my point even further. the result is that there is no enforcement of the ca

that's an all caps, if you're listening. bill barr is a loser, all caps. judge chutkan and special counsel's team have not yet responded to the social media attack on bill barr. the remarks are part of a pattern for the former president. while the gag order was on pause last week, trump lashed out at another potential key witness in the case. mark meadows. on tuesday last, week trump weighed in on a report from abc news that meadows, trump's former white house chief of staff had testified in the case under an immunity deal. and a social media post, trump insinuated that meadows testimony was a, quote, a lie. common judge chutkan now concluded would have been a violation of the gag order, writing in her decision last night, quote, this statement would almost certainly violate the order unr any reasonable definition of taetg. the statement singles out a foreseeable witness for purposes of characterizing his potential unfae testimony as a, quote, to lie, quote made-up to sece immunity, and attacks him as a, quote, we cling and coward if he provides out unfavo

tech. >> it feels like that because mega-cap tech has had earnings resilience and if you look over the last sickle, tech had better downside performance in recessions in its earnings than even utilities did. the problem with it is that you can't pay any price for defensiveness or for safety or for quality, and the question is if you see these valuations continue to expand as the only game in town, do you run right into having those high interest rates put pressure on those valuations and what degree of resilience are you pricing in. >> how are you feeling about yields? are you feeling like we're nearing's top? with such a swift rise in september. the market was unsettle as a result of all that, feeling toppy now? what do you think? >> yields are over bought or bonds are oversold. we've seen this move be near parabolic which means you could see some digestion that could provide some relief in the fourth quarter, but i think if we look at the trend in yields it is still respoundingly positive to the upside any then when we think about the fundamental dine aches where supply is coming in

we were talking about the small caps and mid caps. if you get multiple compression and advertising slows down and multiple compression on the big stocks, you still have other places to play. that's why being in the index will be tough. you can play around the edges and do well. >> for most of this year he's been negative. >> astute enough investor if he sees something different he'll call it differently. a lot of people -- >> i understand, but the recession call is one many people have made, and it hasn't happened and the likelihood seemed higher the last couple of months and now is coming back down perhaps again if we don't get another rate hike. >> are we getting the recession because the fed went too strong or because we have a demand issue? if it's the first you could be down 12%. >> i don't think it is. >> you're two days away from the one-year anniversary, jim, of the october bottom in an environment not everybody is on the same page suggesting we're good. there are a number of people who think that was a bottom, maybe not the b

gentlemen, welcome to the cap stage. [cheers and applause] >> thanks for having us. very excited to be here. welcome. we are going to get right into it. he has a vote to take and my first question is very easy, how long does it take to pick a speaker? [laughter] mr. jeffries: when it comes to the other side of the aisle, quite long. but it is time to end the chaos, dysfunction and exciplism that we have seen from the beginning of this congress all the way through to this moment and my colleagues on the other side of the aisle in terms of their inability to get to someone who can win a majority of the house of representatives as is the charge of the party that has been given the majority by the american people or sustain someone at that number. our view has been we are going to continue to extend the hand of partnership to try and find bipartisan common ground with the other side of the aisle whenever and wherever possible and defend values and democracy and push back against their extremism whenever necessary. [applause] >> reasonable idea. two-part question. one, if

andrew is making a bold call on small caps.tourists tourists that turn into scientists. tourist taking photos that are analyzed by ai. so researchers can help life underwater flourish. ♪ ♪ ♪ every day, businesses everywhere are asking: is it possible? with comcast business... it is. is it possible to help keep our online platform safe from cyberthreats? absolutely. can we provide health care virtually anywhere? we can help with that. is it possible to use predictive monitoring to address operations issues? we can help with that, too. with the advanced connectivity and intelligence of global secure networking from comcast business. it's not just possible. it's happening. carleton: andrew for the longest time small caps were not the place to be but apparently you're seeing something different. >> they had a tough five years or ten years, small caps are flat and s&p is up about 14% but it may finally be time to consider small-cap for evaluations about 12 times forward earnings in 18 for the s&p 500. if the economy proves to be res

gentlemen, welcome to the cap stage. [cheers and applause] >> thanks for having us. very excited to be here. welcome. we are going to get right into it. he has a vote to take and my first question is very easy, how long does it take to pick a speaker? [laughter] mr. jeffries: when it comes to the other side of the aisle, quite long. but it is time to end the chaos, dysfunction and exciplism that we have seen from the beginning of this congress all the way through to this moment and my colleagues on the other side of the aisle in terms of their inability to get to someone who can win a majority of the house of representatives as is the charge of the party that has been given the majority by the american people or sustain someone at that number. our view has been we are going to continue to extend the hand of partnership to try and find bipartisan common ground with the other side of the aisle whenever and wherever possible and defend values and democracy and push back against their extremism whenever necessary. [applause] >> reasonable idea. two-part question. one, if

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if you look at small cap, small cap has been a disaster in terms of returns when you compare it to inflation, compare to money market yields. >> no one is suggesting that equity returns were great. let's stay on the rate of change, zero to raise it by 525 basis points in 14 months, obviously you'll have a reset of expectations of equity returns. but the predictions of the most dire fallout from all of that hasn't materialized. >> the story is not over yet. we just got to 5.5% four months ago, the ten-year yield hitting new high now. excess savings are the lowest they've been. so the story is not over. and i think this is all happening at a time where the consumer is getting very vulnerable. my premise has been the lack of upside in the market. based on where we are, what the head winds are and the not great returns. you have plenty of down side and so many other places you can be to earn a return and take less risk. >> the bulls -- i hear eric saying clearly the bulls are too quick to say we're good because we haven't had a recession so far. so we're going to be good. completely ignoring the

i think here and now still favors some caution. >> what about mega-caps in general. now, presumably, you might think those are going to br break down as well and it's not just nvidia. throughout the summer, the mega-caps significantly diverged to the upside, but you never really got any sustained confirmation by small and midcaps or the average stock, to be honest. the average stock peaked february 2nd and never reclaimed that level so we continue to see evidence that more and more of these big-cap names are playing catch down to the average stock and even within the magnificent seven, tesla is down 10% from the october 2022 lows. we've seen other names kind of falter so i think they're continuing to see this thinning of the leadership stocks and ultimately as bear marks markets unfold, that's when you get the last man standing which is the crux coming after the king and you best not miss and that's nvidia. it's the best-performing stock in the s&p 500 year to date and from the october lows and we think it's probably the last man standing and that bring the nasdaq do

art cap going on. hoping to get something people are using his books could see and would return him to those books that are classic and children's literature. they are as up-to-date today. they have such intimate experiences of children who are universal. it in the hands of people who use it with the kids. i am kind of like you are. i don't think i am a good person to decide how well this is done. scott you askingg me to evaluate my 10 grandchildren i can so they are all wonderful. [laughter] i feel kind of that with the book. the reaction of got the most from the book are people who say i read your book and now i want to go back and read his book. that's really what i want people to do. but had one really special thing that happened that might lead to something i could not thought about. dsbut in my son's best friends when he was in high school is now teaching in atlanta in a predominantly black school. she is teaching ap english. when i went out there i visited and had a book signing out there she ca

we have a small overweight to small caps. if we think we are getting to the peak in yields with the fed likely done hiking and with the economy on firm footing, the small caps look good. one final comment, you look at forward pe multiples. small caps are cheaper to large. that is an area we like. small caps and sicyclicals sdpcyclicals. >> we are watching the ten-year bond all morning long. thank you. ryan detrick, thank you. >> thank you, frank. >>> turning to washington and president biden making a primetime oval office address. biden making his case to the american people that the u.s. needs to support ukraine and israel as the war with hamas continues. alice barr joins us now. >> reporter: good morning, frank. president biden insisted that american leadership holds the world together in the second oval office address of the presidency underscoring the gravity of the message he wanted to deliver to the american people. as war rages in the nortmiddle and ukraine, president biden states the conflicts directly affect america'

up in large-cap's. lori: think about it from a valuation perspective. most sectors looked cheap, but where it gets interesting is the cyclical site errors. it is -- healthy sectors, like industrials come also look cheaper relative to large-cap and the small-cap space. if you look at valuations at consumer discretionary, they were deep, around recession type lows, last summer. we are seeing that pain very widespread. gina: given we are in the midst of earnings season, is there anything you're getting out of earnings that is maybe not getting picked up by the markets, considering the markets are so captivated by what is happening in these macro indicators? lori: i think people are misunderstanding what is going on with inflation moderating and what that does to companies. when we compare our numbers versus the street consensus -- we use the bloomberg data to monitor the street consensus, and it does a good job of articulating how margin expansion will do to sectors next year. we do not do margin expansion

large-cap equities in large portfolios. we have a preference for domestic over international equities. look at the megacap names as being the poster child for quality, which is our favorite thing to screen for right now. we talk about more durable profitability. i certainly see some more durability there. i want to be clear, we are emphasizing midcap xwequities b we're underweight small cap. we don't want to own that. small caps should be better poised to do well early in the cycle. finally, i've been doing this job for about a decade now. this is actually the first time we've been overweight bonds in portfolios. it takes a lot for us to love bonds. we all know that equities are a much more powerful compounder of wealth over time. so we'll probably go back to an overweight to stocks once we see this downshift in bond yields play out, which we certainly expect as economic contraction on both. >> bond yield are the highest since '07. that makes sense. i don't disagree. i talked about it in april of 2022, my 2-year-old, i coul

if you look at the small cap stocks with the russell and micro caps, all of the names have been rollingto ask the question of small or medium businesses with the ad spend on facebook and that starts to deteriorate, then it stands to reason the stock will move. that is what we see now. >> the cap x comment and they are moving away from the metaverse and now trying to be a a.i. play. >> i think it is still too much of a spend gene munster compared the spend to apple he said there is no way this should be comkcommecommensurate when things are going well, they will look past it. when things look sideways, people become focused. i get the move away from the metaverse. it is long overdue shiny object think about facebook and google as well. now people are talking about it more it comes down to ad spend and that's what people are concerned about. >> one more point on meta, guy you are talking about the valuation of the companies meta trading 21 times forward earnings does that justify the valuation? >> the trade is cheap. you can make a compelling argument the problem is if things start to dec

those are the mid-caps you talked about, the small caps you talked about.her chart shows s&p info tech which versus the unprofitable tech names. you know, for a while there unprofitable was crushing everyone right? that is when money is sloshing around. when money is tight that doesn't happen. >>> that is exactly the point this is a little too indiscriminate. the period of 2022 was the period of stupid growth phase right? any kind of growth whether the company can survive or not was rewarded. then we go in the other direction, fear everyone is bankrupt. no one can make it unless you have absolute fortress balance sheet of huge, huge resources. so again you probably have seen some indiscrimenant selling and growth without a lot of balance sheet risk as one of the undervalued assets. charles: going through the report, there was this feeling of caution still. is that where you are right now? is it still a, is it cautious optimism that -- would that describe where you are? >> there are multiple issues, for one, the two pillars ever investing, growth and income.

andrew is making a bold call on small caps.t (fisher investments) it's easy to think that all money managers are pretty much the same, but at fisher investments we're clearly different. (other money manager) different how? you sell high commission investment products, right? (fisher investments) nope. fisher avoids them. (other money manager) well, you must earn commissions on trades. (fisher investments) never at fisher investments. (other money manager) ok, then you probably sneak in some hidden and layered fees. (fisher investments) no. we structure our fees so we do better when clients do better. that might be why most of our clients come from other money managers. at fisher investments, we're clearly different. ♪ ♪ every day, businesses everywhere are asking: is it possible? with comcast business... it is. is it possible to help keep our online platform safe from cyberthreats? absolutely. can we provide health care virtually anywhere? we can help with that. is it possible to use predictive monitoring to address operations

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our view were overweight large cap tech will continue to do so on pullbacks like what were seeing nownd at some point we will add more to those positions. if we look out over five years with a higher interest rate structurally environment, we want companies that generate large amount of free cash flow and have low debt on the balance sheet. jack: some examples google, microsoft, depot comfortable with the stock. >> absolutely. >> and apple, the recurring cash flows, large moats around the business, the general sense of the transformation of technology and a.i. and all the aspects of that are embedded in the companies. jack: is there a danger that five years you could look back and say those were the nifty 50 of our age or do you think are more enduring companies. >> way more enduring think about google $106 billion of operating cash flow and 77 billion of free cash flow that is after all the x-uppercase-letter in r&d that their spending and embedding in these companies inch tremendous value that is not reflected in the income statement, i think there is a long runway and a.i. could be

andrew is making a bold call on small caps.tay right there. in continuous improvement... like rounded corners that resist peeling, with an array of active ingredients... and sizes to relieve your pain. salonpas. it's good medicine. ♪ tourists tourists that turn into scientists. tourist taking photos that are analyzed by ai. so researchers can help life underwater flourish. ♪ before and bath fitter. before and bath fitter. if you have a before bath, now's the time to call bath fitter to get a beautiful after. with our unique tub over tub process, there's no mess or stress. spend smart on a beautiful new bath done right backed by a lifetime warranty. join over 2 million happy customers who know it just fits. bath fitter. visit bathfitter.com to book your free consultation. carleton: andrew for the longest time small caps were not the place to be but apparently you're seeing something different. >> they had a tough five years or ten years, small caps are flat and s&p is up about 14% but it may finally be time to consider small-cap

>> i bought it last year and xbi, for the viewers, is the small and mid cap versus the larger mega cap. it had been trading from october of 2022 to, really, a month and a half ago. when it gets to 90 i would sell calls. it's really broke undown and i want to reunderwrite would i buy it today? no. so i sold it. i bought, which i've talked about before, poct, an innovator, they do a very simple put call spread but i get 15% protection on the down side for monday's close and upside, so that gives me 36.0 and about 49.50 with a one-year observation. i'll take that all day long. >> today's top performing sector and when a difference a day makes. yesterday got obliterated. how the committee is positioned talking cruises, casinos, home builders, we'll do it next. since my citi custom cash® card automatically adjusts to earn me more cash back in my top eligible category... suddenly life's feeling a little more automatic. like doors opening wherever i go... [sound of airplane overhead] even the ground is moving for me! y'all seeing this? wild! and i don't even have to activate anything. ooooooh

when you put a cap on, what's the cap actually mean?mber of >> does it mean the number of people skills that are people with skills that are coming the country? does it coming to the country? does it mean the number? do you put did you the of people in you put the number of people in age groups terms those age groups in terms of those that want come into the that want to come into the country? because you're looking that want to come into the co the y? because you're looking that want to come into the co the demand se you're looking that want to come into the co the demand and ju're looking that want to come into the co the demand and supplyoking that want to come into the co the demand and supply of ng that want to come into the co the demand and supply of your at the demand and supply of your economy. i appreciate that. at the demand and supply of your ethink1y. i appreciate that. at the demand and supply of your ethink that's i appreciate that. at the demand and supply of your ethink that's a appreciate that. at the demand and supply

a big cap tech is helping. but higher rates, higher dollar. just killing.l estate investment trusts. we talk about this a lot last week. smile, anthony. here's dominion. another new low. the low list is littered with utility stocks. these things have collapsed in the last two weeks. one thing you can't see up here, current yield, 2.6. on a utility. these normally yield 3%, 4%. they're all the same. doesn't matter what business they're in, what part of the utility business, where located. eversource, another one here. down 4% right now. 5% dividend yield right now. again, 1%, 2% -- 1, 2 points higher than they normally would be. keep an eye on that. it's an ongoing story. consumer discretionary had a big problem because the impulse is higher rates, pressure on consumer, sell discretionary. sell autos, sell anything related to that. sell housing stocks. autozone, which had a decent earnings report not long ago, september 19th. this is one of the highest priced stocks in the s&p. i think it's third highest. it's going nowhere essentially in the last, oh, coupl

let's dig into the mega cap names. apple up 1.5%.oft. up more than 2.5%. meta 3%. alphabet up 2%. nvidia up 2%. and amazon, up better than 1.5%. so look, the question, scott, is did we hit the bottom for tech and now we're seeing it come back up? analysts had a good note out this morning, highlighting the quote, meaningful pullback from all of those names i just went over, over the last few months, and actually they don't see a recession coming for tech earnings. but are expecting a slowdown in earnings performance going into 2024, and look, we're just a few weeks away for most of those names reporting, netflix is up first and in less than two weeks, scott. >> thank you very much. >>> turn back to mark santoli as we approach two minutes left. that's the premise of tom lee getting to 4800 on the s&p with the market still getting there, because you're going have a pile-in to mega cap between now and the end of the year. >> it's always plausible, and in this case, too, that is where the earnings growth is coming from. if you looked at t

it was already a strict spending cap. it was going to reduce nondefensive discretionary money by $49 billion. then, the house republican appropriations bills cut 58 billion dollars below that for ongoing programs. if you add up the total spending for nih and cdc and the epa and social security administration, it's 58 ilion dollars below the deal. in addition to that, they cut back a bunch of other types of spending by 94 billion dollars. that's like underfunding the deal by $152 billion. within the last week and the speaker mccarthy has indicated they are planning to do another $60 billion beyond that and they have locked in around five ilion dollars but we will see where the rest comes from. that's why we are in a difficult situation. house republicans have created these massive cuts compared to what the deal was six months ago. host: you can ask about the funding process, (202) 748-8000 for republicans, (202) 748-8001 for democrats and independents (202) 748-8002. you can text us your thoughts at journal@c-span.org (202