from large cap exposure right now. small cap earnings are disappointing. yes, they are positive, but they are only slightly positive. i think you stay high up in quality and look at large caps -- look, you cited month to date, you have outperformance from some of the financial names, and that's the conflict now for portfolio managers. where do you want to place your capital in the next earnings? >> i don't know. if you look at where the earnings growth is coming from, it's almost exclusively from the large cap -- >> wait, wait. >> that's where the earnings growth is coming from. >> bryn talked about this. 81% of the s&p 500 companies are beating earnings this quarter and that tells you it's not just -- >> no, no, don't look at that number. look where the real growth is coming. it's not coming from that -- it's coming from mega cap growth. >> with what he's saying -- i will be the first to acknowledge -- >> joe, it's joe. >> what? >> it's joe. >> i know who you are, i love you, man. to the top line growth being intact a

the european large cap equity market. >> see you soon.e thank you. >> up next we are tracking the biggest movers into the close. kristina partsinevelos is back with that. >> we have another public tech company urged to go private and a call for the bottom in toys and that's moving one company higher can you guess the mena i'll tell you after this short break. 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. you know what i'm saying? let our expertise round out yours. you founded your kayak company because you love the ocean- not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire (tony hawk) skating for over 45 years has taken a toll on my body. matci take qunol turmeriction. because it helps with healthy joints and inflammation support. why qunol? it has superior absorption compared to regular turmeric.

or so, i know everyone is just, before i came on, you talked about the small and mid caps, mid capse been the largest overweight, the jane brady group if you will, quietly doing really well this year. and again, small caps, we have a slight overweight there. and again, the whole theme, i just came out with that early, with better inflation data, we think small caps will do better. and small caps, two montreallys, last year and the last ten times they had that, they are up the next year. i know they are sideways the first months of this year, we're not giving up on that yet. >> you said you would never go against the professor, and you are in that one. and we talked about the rate cuts >> this is tv and i will make it interesting and go against the professor. >> he is on my podcast in two weeks but small and mid caps, i will bring that to him, we still like them, even if he doesn't. >>> up next, we will tell you what is behind some big moves today and we will tell you after the quick break. you founded your kayak company because you love the ocean- not spreadsheets. you need to hire.

i'm not talking about small cap. the sectors i just talked about, i had industrials, go back to that, right, some are reporting 20, 30% earnings growth, i've got orders coming out of of eaton up 27%. that's huge. the visibility that that carries. same thing with energy. and they still have the tough compares year over year. i actually think that sector is poised to rise higher. i'm double the benchmark. i see real value there. it's the earnings picture that's more important. if they can deliver, i think those stocks can actually participate along with tech. >> and we had rising rates and elevated rates all of last year, what was the single biggest explanatory variable, it was expanding multiples. no limit on stock price growth last year because rates were high and there appears thus far no limiting principle on stock price appreciation in the short term because the rates are going to stay high. >> sure. but, if the economy is going to slow even a little bit -- >> then we'll get rate cuts. >> and rates are going to re

it is 2% or 3% with small caps for the year, those small caps and mid-caps are flat. >> exactly good we talked about it last time, the gap is still very large currently with the s&p and the small-cap index is growing at a 23% discount to the s&p 500. historically in the last 20 years, the average premium is about 13% to 14% i think the reversion means the catch up is far from over. there is a lot of room for the valuation gap to close >> amy, i want to ask about this and we have people coming on talking about small caps i have no skin in the game the thesis doesn't pan out month to date, yes the small-cap index and mid-cap 600 is out performing the s&p by 1% if you look year to date, it is flat or up .13%. we continue to hear higher for longer doesn't that put pressure on the mid-caps >> yes if you look at index, there are a lot of low quality companies in the index this provides greater opportunity for stock pickers like us at alger we are boughttom-up oriented at alger. the rate hikes are turning into a tailwind if we look for companies with no debt or strong balance sheets and str

between the growthy mid and large cap technology names you just cited and the mega caps, besides the size, what's the main difference to me, the main difference is the mega caps represent stability, represent reliability, and have the ability to cut costs and get their way to better and better earnings each quarter. you cannot say the same, unfortunately, for roblox and shopify. that's a different driver of those stocks, that's the major difference that gives you the answer to the riddle shopify is fine but the outlook isn't as good as people thought it would be. airbnb is fine the outlook is not great, though not terrible so let's zero in on airbnb they had a great quarter i think everybody would say that's pretty darned good. nice earnings beat to 41 cents here is the problem. when it came down to guidance, rather than the 12% that the street's consensus was expecting, they said, things will be about like this. that's not good enough for what that stock price has done. that's why they lopped some off today. you see that repeated in the $50 billion, $70 billion, $80 billion, $100 bi

small cap stocks expected to begin to exceed that of large cap stocks but eric, my question for youcern i have in trying to decide whether or not to go overweight small caps is the larger debt issue that they have so russell 2000 has 832 billion dollars debt, 75% of that debt has to be refinanced over the course next five years, do you view that as a problem? >> well, i don't, because we actually have russell, fixed income high yield spreads as low this cycle very attractive fed raised rates, funds have come in total cost of borrowing not gone own nearly as much. on top of that the ability to bring finance in high yield market as strong as ever, companies can get he deals refinance in some cases hyperbole higher did the deal two years ago but based on valuations, liquidity small caps do not have a debt problem i think misunderstood by the market. maria: that is something we are all waiting for a bit of a broadening out good thank you, sir. >> thank you. >> all right. eric green joining us, president trump back to the courtroom day after a huge rally in new jersey, one possible vice

mid-cap small-cap growth and if you look at what the profitability filters, those complete for some long-term unstoppable trends that have been dominating the market, but haven't really caught up. >> i don't know if i'm ready for small caps. i need to see the profitability be witnessed 22% for earnings growth. why move away from that? why move away from the earnings growth of 5.5% that you get? if you want to move away from the engine of this year's appreciation, which to me, it is the semiconductor industry. i can stay high up the class with large cats. i can look at chipotle, costco, intuitive surgical or merck. i can look at goldman sachs, which is making a new all-time high as we speak today. i have got other areas and other sectors in the large-cap universe where i can find opportunity and i don't need to go to small caps. >> i don't think it will surprise anybody if we have a day like today. look at this. we are going to close above 5200 on the s&p 500 for the first time in a month and it's not being taken there by mega cap. it wouldn't surprise me one bit if tomorrow there was a lot of

large caps over small caps. we like staples over discretionary. we have two defensive sectors overweight utilities and stables because it protects against slowing growth risk. the main factor that has been working his quality. quality has been the most consistent factor and we don't see that changing. sonali: we will discuss the market now and outlooks with bloomberg's opinion columnist who watches it closely. interesting to see what was wall street's biggest bear, if not all of them, throw in the town. and set the bar higher for the s&p 500. was he right to do that? >> he's right to do that based on expectations at large. one of the things that should be highlighted is when you look at earning estimates for the s&p 500 for 20 tony four and 2025, it is bullish. there is no recession in sight in those estimates. if you look at the five-year trailing annualized growth of the s&p 500, that number is 7%, which sounds low, but still three percentage points higher than the long-term average, just closer to 4%. you look at estimates and the five-year tra

where i don't see that happening is in the small-cap world. small caps are still risky. sonali: is that because of the vulnerability to inflation or two interest rates? >> well, both. first of all, small-cap companies are more exposed to higher rates because they have higher debt levels, over 50% higher than large-cap debt levels are. on top of that, they have more floating-rate that. most of those companies locked in low rates at the bottom, the same as how many homeowners refinanced mortgages at the bottom, large companies did the same thing, turning out their debt at fixed rates. not only do small companies have more debt, on top of that they have more floating-rate debt. finally, look at earnings. for the first quarter, those earnings for the u.s. large-cap sector was between 4% and 5% so far. not bad, accelerating throughout the year. for the small-cap companies reporting so far, it's -16%. even looking farther out into the rest of the year, large-cap earnings will be up 8% or 9% this year. part of that is because of the higher debt level and part of it is because t

mega cap tech. shannon, make sense? >> we talked about this on "closing bell," about the choppy waters. the combination of micro and macro is working in our favor this week. if you think about quality and you think about the continual long lags, those long lags are going to continue to impact lower quality businesses with less free cash flow, less weaker balance sheets and less of a competitive moat and they are stronger companies. i think when you think about quality and you think about a factor that's been fairly consistent this year, quality is that. >> you know, weiss, tony has been so correct on the direction of the market and the kinds of stocks that are going to carry you, a bit of a pullback in mega cap tech. he's urged investors and we've told you what he has said about keeping your eye on the ball. go big or go home. stay with the freight train of mega cap tech and that trade is back because the nasdaq, as you know, is ripping, and the performance over one week, what a difference a week makes. look at apple at

a cap on that. that would _ doctors and nurses at home... a cap on that.at would have to go and that would come _ on that. that would have to go and that would come with _ on that. that would have to go and that would come with a _ on that. that would have to go and that would come with a cost - on that. that would have to go and that would come with a cost of - that would come with a cost of course which would be born ultimately by taxpayers opened lower skilled migration areas like hospitality, we could increase the wages in those sectors to attract more british workers but that would come at a cost as well and that will be passed on to consumers so it's worth bearing in mind that there is no free lunch, there are impacts which would be born. also worth bearing in mind the impact on the public finances, at least in the short term. we can look at a chart from the office for budget responsibility which is the government's official forecaster, and this shows, the blue line is the projection of the national that and you can see it fall in the final debt and

give the answer, alena, and he should bring a cap, cap, cap, check the cap, cap, come back, that wason, come on, guys, come on, when people answer the question even before, how is it formulated, what to do? what, according to the rules of the indoor pool, the visitor must bring with him for swimming lessons, obviously, ekaterina, i think these are fins, they help to swim, yes, fins, fins help, of course, but should he bring or should not, must katya, think, think, i ask you, i urge you to think, katya, katya, yes, no, this. later, towel, towel, towel, i changed my mind, towel, you came up with an idea, okay, towel, come on, it’s like that, but don’t let it. i am sure that you need to put on yourself and carry it first, then put on a swimsuit, a swimsuit, a swimsuit suit, those who are not wearing a swimsuit, what are they, this is my answer already, these are actually different things, a swimsuit and these are different things, show the swimsuit, that’s it, we have it in one answer, anna, your version is the following, you know, i know our champion evgeniy rylov, and he once told me

caps off by nvidia.ore defensive and cautious than i was last time, as you look at top lines, they are probably using ground. we are in a different world than we were. lisa: chris merengue, thank you, there's been a clear slowing down. why has that not been enough to offset the inflationary pressures that are sticky in the system. lara: several reasons. we can't underestimate wage components. it's something that is here with us. it's been with us for some time. labor market is incredibly tight. it's also the housing piece. hopefully, something we can dig into later. these rent prices has not come down as much is expected. if we get relief, i expected to be short-lived. q4 will be right back into a shortage again. it's a confluence of things. those are huge when anything about the household monthly budget. lisa: the rent is too damn high, that the potential calendar? [laughter] updating your stories elsewhere this morning, here's your brief with dani burger. dani: the chevron bid to purchase has has been

everybody keeps calling for a rally in small caps.y are flat year over year what is the catalyst small caps to move higher? now we're on possibly a no cut expectations and they are laggards >> you are right it is tied to the outlook for how well these companies will be able to refinance at better prices in the future so, that's catalyst. an gain, we see two rate cuts in the back half of the year still given this dovish outlook from the fed. just pointing out in that case, that would be the extreme end of what could the rally we would also expect that would work even if it is not as positive for small caps, a more benign environment should help the overall rally spread out even in the s&p 500. >> you know, to your point, materials and financials have out performed in the last month or last couple months. we have seen that broadening i want to talk about fixed income specifically u.s. bonds. the yields have become so attractive that it is pulling from the equity market we know the money markets are with 5% in the money market. >> we hav

some of its extermination cap the. this is the original o s s the previous asset to the c i a, the documents sent on the 21st of october, 1946 o. s. s agent m. as in bigelow, whose task was to locate and trace the gold looted by the nazis in world war 2 identified exactly what happened to the goal and that was taken and you can some of you actually in the independent state of croatia, he sent his report to mr harold glass, a director of mandatory was sent out to the us treasury building in washington dc. yeah, it's the full sequence content there. harold, the following report has recently been received from a reliable source in italy. it is sent to you in the belief that it may be of interest. the host to show organization, crow, sions, fascist organization headed by hand type avalanche. remove funds from yugoslavia estimated to total $350000000.00 swiss francs. the funds were launched in the form of gold coins above the funds brought from the 4000000 dependent crow at state where jews and serves were plundered to sup

microsoft is a mega cap. the way we would judge it is if we see countertrend rallies or bounce off of oversold conditions, right, salesforce is very oversold, look to see how it does in that bounce if it hits resistance and it rolls over, it could call into question some of the earnings estimates and some of this bullish sentiment for the software in broader tech space >> so microsoft's down about 5.5% on the week nvidia has been, you know, unbelievable to say the least. it's up 2% on the week apple's had a nice little comeback, it's going to be virtually flat on the week what about within the mag seven? the fact that you could have a microsoft do what it's doing, but nvidia and apple, right, the money rotates around within that mega-cap group >> yeah. we've seen telepsla fall out of that magnificent seven group this year. i think the real test for the mega caps will come in the second half of '24 into '25. that's because we see a meaningful earnings deceleration for a lot of mega cap names. nvidia's earnings

>> even if you're earning you could cap it at 30. yeah. you could cap it at 30. yeah.ld cap it at 30. and then and then some of that money could be diverted elsewhere. i don't think people earning £50,000 a year need the £80 a week. however, it is tough out there. >> yeah, well fair enough. bad news for me, well, what's the mail on sunday going with paul, cuts leave uk with just one plane for paras. dj d—day jump. nearly got it. none of us have got this headline right. basically, plans for a mass parachute drop over normandy to commemorate the 80th anniversary of d—day have been scaled back because cutbacks have left the mod without enough planes. so the original plan was to send 450 men. and it does say men in here. in four separate planes, turns out because of cutbacks, there is only one plane available. so i'm guessing there will be about 100 chaps jumping out . yeah, my argument. out. yeah, my argument. >> we have those planes that are waiting to go to rwanda. what are they doing? >> that's a steve lovely political bit of a satire. good point. where are they? i mea

so these are the, was just really sort of working up to the fact that these oil caps, price caps on what will compute kito think of. so i want to think more upset the, i think they, for some reason miscalculated this in time. the right. i mean, russia had that to be honest, since 2014, since the 1st sciences, which many of abuse, i may not be aware sciences was started starting to be a post in 2014, when the crimea became part of russia. and so russia is how about times is how about how has that time give me so you to pass for that and also to look at how a lot of the allies and a lot of bad friends have been dealing this, you know, roster is not the only oil producing nations on us that is experienced retaliation if you like from the united states and its allies. and there are other countries such as iran in venezuela that have found ways around the oil cap. not only that, right, but also russia has managed to sell it as well for a significantly lower price due to the way to get the structure. what say, i mean, you know, you and i live here, it's the only country i've ever seen in the w

some of its extermination cap the. this is the original o s s the previous asset to the c i a, the documents sent on the 21st of october, 1946 o. s. s agent m. as in bigelow, whose task was to locate and trace the gold looted by the nazis in world war 2 identified exactly what happened to the goal of this was taken in yugoslavia. actually in the independent state of croatia, he sent his report to mister harold class, the director of mandatory. it was such that the us treasury building in washington dc just the full sequence content there. harold, the following report has recently been received from a reliable source in italy. it is sent to you in the belief that it may be of interest. the goal is to show organization crow actions fascist organization headed by hand type avalanche. remove funds from yugoslavia. estimated to total $350000000.00 swiss francs. the funds were launched in the form of gold coins from the funds brought from the 4000000 dependent crow at state, where jews and serves with plundered to support th

cap. >> let's talk large cap. goldman sachs has been hitting a new all-time high almost every day. jpmorgan has been doing the same i definitely think we need to separate the kind of conversation we need to have we're not talking regional banks out of the russell 2000. we're talking about large cap money center banks or capital markets focused banks, things like that. >> when we look at the factors we use whether it's quality, sentiment, growth value, that sector scores pretty well. for now it's worked thankfully for us knock on whatever here, but i think that you still have strong trends in place. the underlying breadth and internals of that sector are really strong. financials is one of the s&p 500 financials is one of the sectors that's scoring the best in terms of participation among its members. >> bryn, what about energy i think we have some differing views of late what's been a disappointing trade and fits and starts should we believers in that, asking had somebody who's sitting in

than they are in large cap.i think they're part of every balanced portfolio diet. >> i think a small caps in that sense kind of like my 18-year-old son. he hears no a lot more than he hears yes. julie biel, appreciate it. >> thank you. >>> gamestop higher as the meme craze is being brought back to life by the percent who started it the first time around. roaring kitty. but how is it different this time. we'll discuss when "power lunch" returns. ♪ ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly. >>> welcome back to "power lunch." i'm bertha coombs with your cnbc news update. it's possible donald trump's defense team will not call any witnesses in the former president's criminal hu

, but which they prefer to call concentration caps was purely shown. yes. and if it's itself was the largest comp in all of world war 2. what's the most monstrous, in terms of how the people detained? what killed but and yes, and if it's the killing was conducted in the most terrible way. so they used a specially designed so called so it'd be a knife. people were killed with sledge hamis, even expectant mothers in late pregnancy. they devised incredible ways to make victims eyes pop out. because the had defeat independent state of croatia, tablets upset by wants to start each day with a fresh plate of sub eyes that jerry phrase was even written in a book titled by the famous italian writer, courtesy on, by the way, he describes this hellish scene on the other hand, the nazis fig creation, most to ship propaganda that he has some of it was a labor cab. now, they say stuff, every new special sensitive operation. how to demonstrate to the international community. that all was well and how to hide the heinous crimes in genocide that took place every day in

every time fed cuts rates small caps clobber large caps by 50%.e're not there, at least value names be prepared to go into nall smaller names when the fed cuts. charles: you got names sharing with us. could have sworn you were in carnival cruise? >> i did. made a bunch of money we'll do it again. what i like karn central they're finally making money. post-pandemic is demand craze. this is all-time high in bookings. secondly profit, could be scenario they make at least 15% earnings growth. biggest cruise operator in the world. demand is through the roof. the american consumer is not fatigued. they're out spending money. carnival cruise it. charles: cwt a water stock? >> they own several different states in the which is, expect a double in the next 30 years. these are safety names. i think we're in a time of volatility. i know it is a good market. i'm afraid of next two months. 2 1/2% dividend, 15% earnings growth. 10% cash on cash. this company does really well. great margins. it is safe. why not have safe in your portfolio. charles: water never go

charles: you like certain small caps here over large caps at this point?> i think we have gotten to the point, and, to the prior guest's point about reshoring, looking at companies within the u.s. that can really take advantage. some of the small caps are really oversold. we're talking some companies trading in like single-digit forward p-es, really, really cheap. i like small cap industrials. that has a lot to do with reshoring. goe group is global security. considering increased global conflict. charles: i saw small cap semis -- >> that is big thing, we didn't know we had them locally. based on the east coast, eco instruments. forgive me if i mispronounce it. charles: bco. >> they do materials for semis. that is lot about reshoring. charles: gallium was supposed to be a major replacement for silicon. i used to play the stock 20 years ago. that's why i remember it. bring danielle into the conversation. green on the screen. what ask the market reacting to? >> there was a nod, verb tense change in the statement. employment and nation goals, it used say are

and i think that rent caps, or even the threat of rent caps is not just a distraction. it is. see labour stick to its back, the builders pledge and actually get house building unlocked in the uk. >> i would agree with that because the moment i heard that i thought, i'm going to sell up, let's get rid of this thing that i haven't buy an actual house that i actually live in. freddie poser, thank you very much. from freistadt, is the director of that stephen pound, former labour mp, former property expert, no property expert. you're not a former one. you still are property expert ricardo blanco and also former adviser to the bank of england. roger gewolb, thank you so much for your thoughts and please, what do you think at home? gb news. com forward slash your say this is gb news. we're live on tv online and on digital radio. coming up we'll continue with the great british debate this houn the great british debate this hour. and i'm asking should rent caps be introduced? you'll hear the thoughts of my panel, lizzie cundy and matthew lazar. still to come, my difficult conversation

large cap, big tech, mega cap stocks have driven the indexes to where they are, but you think that may change in what you see as the dawn of not a new era, but a bit of a transition in the market, explain why. >> yeah. i think there's a dawn of a new economic cycle i don't think we're going to get out of this without a recession. i think one is likely in the future because i don't think inflation breaks without one we've been stuck in this narrative of the large cap names doing well and michael mentioned momentum as a powerful tool that people gravitate towards on wall street we have to put money to work on a daily basis people have gone to the more seemingly economic resistant names like those big tech companies, but i think when you see the side of this, interest rates come lower after a recession, i think for investors who think 12, 18, 24 months out in the future, i think there's opportunities for the market to broaden back out and bring in things like small and mid cap which trade at 14, 15 times earnings and even parts of the s&p 500 beyond those top 10 names which trade for 15,

this would be a market cap of $200 billion swing. that's larger than the market cap of 90% of the s&p 500 companies. >> you know what else swings with it? besides semis. >> that's going to do it for us at "overtime." >> “fast money” starts now. >>> live from the nasdaq market site in the heart of new york city's times square, this is "fast money." here's what's on tap tonight. housing headaches. the staggering new stat on home affordability, and what it might mean for home builders even as mortgage rates are expected to pull back. >>> plus, a real lulu lemon. share office the one-time darling at their lowest in over a year and down more than 35% from an all-time high hit less than six months ago. can the stock find its then or has it stretched past its limit? >>> and later, eli lilly hits a record high, and we are counting down to what might be the biggest earnings report this quarter. what is at stake when nvidia delivers results tomorrow? i'm melissa lee, coming to you live from studio b at the nasdaq. on the desk tonight -- tim se

market caps of $3.2 trillion and $2.9 trillion. our next guest sees a $10 trillion market cap. at your forecast i had something in my throat there, beth. good morning. >> good morning. >> how do we get to the $10 trillion is nvidia the most valuable company in the u.s. or are the other tech giants moving along with it? >> yes let me remind you that years ago, nvidia would surpass apple in becoming the most valuable company. now it is nipping at its heels what is unique from apple or microsoft, as you know, it is fueling the a.i. infrastructure. this is really important to understand our hopper infrastructure drove us to $80 trillion revenue blackrock data will be out before the end of the year that will bring us to a $200 billion data center by the end of fiscal 2026 meaning, this next cadence of blackwe will exceed hopper it will enable 1 trillion plus large language models where big tech is trying to go those components all together equal a large hardware data center then we have software coming which i could talk at length about. i won't. we have automotive this is very earl

is russia's cost of run-up significantly due to the price cap. before that russia was largely selling their oil to cheap places and using the g7 services to do so. today the cost of that has run-up significantly. they went after some tankers and they've had to build up their own ecosystem. which is been more expensive. our goal is to make sure in addition to reducing revenues we significant increase russia's costs so that ultimately they have less income to give to the kremlin to fight this war. what the kremlin is proving is they are focused almost exclusively on building a wartime economy and the best symbol of this is the fact when president putin replaced his defense minister he did so with an economic official. making sure the russian economy produces one thing, weapons to support this war. our goal is to make sure they don't have the goods they need to build those weapons. >> you are talking about sanctions and russia's economy, that's why we are together here. it was sometime ago that u.s. sanctions were supposed to grind russia's economy

i think their cap spend is going up 50% this year probably. look, it will probably go up next year and beyond that. we're in a world now where these guys have to spend now. there's a longer-term question that means you have to return these investments. and so you need to build business models that could eventually drive revenue or save the cost ideally. clearly there was no return on these assets and the whole thing would come crumbling down. i think they're getting returns on it where they clearly have a line of sight. and that shows some level where the revenue opportunity is this and the business opportunities are there. >> returns he's referring to is the spend on compute. it's hard for me to see just sitting where i sit and talking to people i talk to. it is hard to see that pullback in spending on compute happening right now. there is so much enthusiasm. silicon valley start-ups need to spend a lot on the compute as do fortune 500 companies. it's just like that's the part of the story that has to hold up. most of that interestingly is ou

all caps at this point in time. >> what about you? >> with laws caps at this point, the main thing is are stronger there. i do think if we have a stronger soft landing move like we had in the fall of last year were late last year, we want to see a shift in the trend. i think mid gaps are showing some improved relative strength. small caps at this point. >> are we going to be hanging on? i am trying to think of catalysts from the air. seasoned all but over. the meetings in the rearview. he said what he did. i do not feel like speak is really going to do much for us because we heard from the chair. is it inflation data? >> i hink so. it is inflation data. the phrase that you should be using wasn't data-driven. that is the fed. that is what they should've been saying but that is what they are saying now. if you get a couple prints that are not hot then people are going to think that the fed has more confidence. that is going to be really positive for the market. if you get the conomy to cool down, that's to be really positive for the mar

value, every type, small cap, mid-cap, large cap, core, everything, mid-cap, large cap.he only thing that rocked big time was large cap growth, right? large cap growth up 14.4% coming into the session. everything else is just starting to melt away a little bit here. that's not really a great sign. so you talk about breadth right? they have been talking, you heard a lot of guests to come on, the rally is beginning to broaden out. it is not just a handful of names. you know what? coming into january that was true. right into the april selloff, that was true. remember we bounced back from the april lows yet even as we hit all-time highs. look how further down we are from participating. these are stocks changing hands above their 50-day moving average. that number has come down dramatically, folks. that is not participation. that is not what we want to see. so you have got a couple things driving the rally. one is hope that the rally baton will shift from nvidia, right, this is nvidia, this is your mag-7 names, first-quarter earnings, that the rally baton will shift from tho

when, the moment the price caps are announced, to i price caps are announced, to that filtering to people'ss it that we are paying higher prices and to us entire or are we paying less now, have those prices filtered through to us? the prices have filtered through to us, the price, a couple of summers ago, was as high as £4200 a year and that's when the government had to actually take extra steps to protect customers from paying those figures. historically, it's true, even though prices are coming down now, no—one would describe 1500 — £600 a yearfor an average would describe 1500 — £600 a year for an average household honor energy bills as cheap or affordable particularly considering that before the energy market crisis began, a fixed deal was about eight — £900 a year. so, overall, based on the contents of the last couple of years, this is good news, historically, it's not amazing but unfortunately, that is a situation we are in and we can probably expect to be paying around these prices for the rest of the decade, unfortunately.- the rest of the decade, unfortunately. the rest of the deca

you're smallish on bull caps. believe it or not, small caps are outperforming the broader markets. you believe right now this might be a catalyst for small caps that if we get the idea that you're believing that jay powell is going to signal rate cuts, we're going to see more upside amounts? >> small caps are close to being in the bear market, down 19.4%. that's a big drop. valuations are extremely cheap. you buy on forward expectations. earnings growth for next year and the year after are looking at 15%, 16% for small caps. we do think small caps are looking pretty attractive from an valuation and fundamental standpoint. >> between goldman, always great to see you. >>> for more head over to c cnbc.cocnbc d cnb cnbc.com/pro for insights. >>> mayday today in europe, so people are off. >> majors are closed ta'u the a public holiday. here in the uk, the ftse 100 is open friday. it's moving slightly higher, at the moment up by about a tenth of a percent. it's worth pointing out that some of the companies we're monitoring within the ftse this morning includes fw sk. they have actually r

is the case for small caps valuation? julian: valuation is more important than it has been in quite frankly it is uncomfortable for us to talk about valuation. when you get to these kinds of extremes and they're not extreme extreme come in y2k, you got to 6300. we don't think that is the case this time that nothing tends to last when you get to the extremes. lisa: is that there is a broadening out and not just with small caps but with the idea that not everything is in a i play. utilities are an ai plate. how much do you -- ai play. how much do you ride this out from industry to industry? julian: the comparisons with the internet in the 1990's are apt but to get to full internet adoption over the course of the last 20 years, you had several recessions, several bear markets, it is not a smooth line function. we do think the potential for ai to secularly improve productivity across the entirety of corporate america is there. jonathan: we will get a bonus round with you. kit juckes is joining us. he said the lack of convicti

the, the g 7 decided to impose this cap. so what they didn't understand is it's a free market, right? so russia, you know, they said you could only buy of $60.00, rough as like we're going to sell the life and other countries as that. you know, we don't care what you say, we're buying it anyway. so it just has paid a lot of oil and they're gonna start at whatever price they want to have. somehow they get you around these sanctions. well, it's really simple or at the meet west and ensure is we just tired of upset because the truth is russia is no longer using that ships. they just using other people shipped from the other allies that they can show by them by being sued by countries like india, the u y 8 or even around the price cap has absolutely failed across the market. we expect that all of the car goes of russian barrels are now trading above the price cap. the new companies had been established in the united arab emirates, india, china, and so on increasing the tonnage. they controlled, buying older vessels, not operatin

into mid-and small-cap.he small-cap is stable now but a long time coming. we are looking at the normalization spread and remembering in the whole sphere of global markets it is imbalanced as well and the u.s. is continuing to dominate. katie: what is the catalyst when we talk about a broadening, into other sectors and also different market cap tears? you think about the small caps. is it anything but a rate cut? is that what we are waiting for? aoifinn: i think you are right. it will take something stark like that. but when you can earn the decent rates on cash, why would investors need to dip in? maybe it will be a reckoning in the big tech stocks more moderating after growth and expectations and we have seen they can be extremely volatile. we have seen moves in the big names of 10% in one day. that is not normal for something that would occupy such a large cap and probably more than investors can stomach and different from the type of performance you see in a solid earner. when the appetite for that dims a

the 11th hour and the night cap will be right back. right back.t's time to get away and cache in, at cache creek casino resort, to rock and to roll. to go all out or... go all in. with four stars and rising stars, northern california's premier casino resort is the perfect place... ...to do as much -or as little- as you want. make your get away now and cache in at cache creek casino resort. ♪ ♪ [sfx] water lapping. ♪ ♪ ♪ ♪ [sfx] water splashing. ♪ ♪ [sfx] ambient / laughing. ♪ ♪ >>> our night cap is still here with our mvps of the week. >> i'm here with blue. they look great in blue. my mvp is the men in blue an orange. the new york knicks. and particularly jalen brunson. last night, unbelievable performance. taking the first round of the playoffs against the 76ers earlier in the week at the garden. 20,000 people screaming. mvp. mvp. he earned it this week. >> they were also screaming f you to joel embidd. >> my mvp of the week are the asian american ceos . you have three of the four most valuable companies in the world right now, run by asian amer

growth outlook is fairly secure, also good for small caps.atie: sounds like there is still opportunity there, bargains to be found. let's talk about the large cap universe. we have not talked about tech yet. how are you feeling about big tech at the moment, especially what we learned over the past few weeks when it comes to the earnings power? katrina: earnings power is strong and that is what evaluations reflect. you can actually have these high multiples and the countries -- companies grow into those earnings numbers. i'm not as worried about them. in terms of the incremental capital and i look at investor portfolios, they heavily overweight into these growth names. as an investor, you need to have some balance in your portfolio. i've talked about the fact that we think there's a lot less divergence in the world. within portfolios there needs to be less divergence. if you are significantly invested in those names, i would pause and maybe think about taking profits and allocating it into the other parts of the market that will balance your p

what i've seen here, s&p 500 advance-decline line new cap, s&p mid cap, advance-decline line new highw high. that's a really, really broad advance in the markets overall. on top of that earnings increasing for the second quarter. we see record earnings estimates for the third and fourth quarter and continuing to hold up so the basic story on earnings this season has been, beat and at least affirm and in some cases raise. generally beat and affirm has been the story for the earnings. so i see low volatility, earnings going up, breadth dramatically improving. all of this is why i wrote a story this morning and mike talks about this a lot about analysts and strategists changing their number. belski did it yesterday, high on the street at 5600. a love lot of them below 5,000. >> the thing about 5600, less than 6% away and that's the high on the street. that tells you something, the median and the average sell side target for the s&p is below where we are right now. >> it's 5200. where we are round. >> tells me i've made the sausage. >> sure. >> is, you know, there's no value in that and t

you need a cap with no cap . there's no control. you no cap. there's no control.p on on skilled visas . need a cap on on skilled visas. you need a cap on student numbers. but of course, the governments aren't partial to that idea. >> i suspect the last week of this month will be dominated by whatever those figures are. so we'll see you again very, very soon. in a moment, i'm going to go back to what cameron has said about our weapons going to ukraine being used to fire at the russian mainland. i wonder, is this man who himself, as prime minister, was a warmonger. he took us to war in libya, got rid of the leader, led to the birth of isis . rid of the leader, led to the birth of isis. is he taking us down? a very, very dangerous route. we'll debate as is so often the case, i see stories that i think are fantastically good for us. stories i think could be very bad for us. and i always marvel that they somehow aren't on diary with the rest of the media. and whilst this story has been reported, i don't think there's been enough emphasis on it. our revered foreign secr

you can trim some exposure across the mega cap space, but i wouldn't touch that. that's what he said. >> i think there's going to continue to be this divergence and differentiation between where do i stay -- where am i holding pat, where am i standing firm, and where do i need to worry about some consolidation i think tech as a whole is going to be more interesting if you're looking at it from an active management perspective there probably are going to be nearer term winners and losers as it relates to nvidia, there really hasn't been, at least in our view, anyone else to take that mantle, to take the leadership in that space and so perhaps there is some additional protection. to your point, scott, there are so many buyers still out there that are not in that position. so it's hard to see a sell-off that wouldn't shift sentiment and have people move back into that stock i don't think that's the case across the tech landscape, though i do think there is going to be continued divergence >> unless they miss on earnings. >> then -- then all bets are off. by the way,

we have two dividend announcements from mega caps capex, free cash flow. you really want to run against that >> no, especially not if we're late cycle you want to be in large cap,quality businesses you want to be in businesses that can generate enough cash to internally finance their own growth i think one of the things somebody like apple is dealing with right now, it's tough to compete with the growth prospects of a.i. that every other company has been able to benefit from they haven't yet gotten onto that bandwagon >> maybe they have but it's been a narrative -- if, anything, it's been a narrative thing, right? >> yeah. >> and that's by the virtue of a calendar and timing, and they'll talk about it when they're ready to talk about it >> and i think that's okay i have continued to believe we've pulled this a.i. theme so far forward almost as if investors are expecting to get gratification by the end of the year in multiples and it's not going to happen, it's not how a theme works. it has to go through cycles, through maturing, so we understand how we mak

cap the let's see what happens to the children's cause. who was sent to you, send it fits, extermination kept the only subject caps that existed in world war 2. children aged up to 12 who was since there is a direct result of decorated venomous officer to, to vote times successful operations. the . 2 the . ringback the . busy the . busy busy the. 6 the, the intention was to present to you son, which is a working environment the we actually have pictures of a lot of really happened to, to send events. but these are images of $200.00 children that they close to should come under the above miller. she chose to showcase his yes and if it's reality to the international community, however, the truth is very different. being put in control of your son, if it's extermination, kept you both milch as a come under in 1942 came up with an incredible monstrous answer. 10 a guy there is intention was to totally conceal all traces of crimes and suggestions of genocide. so the only nazi country in europe. 2 although well, to have just like germany, so the

semi-cap equipment is up too much. all great business that will benefit but, if i have a 1500 base exposure in my portfolio and five or six names like this, nvdia would not be my first choice to lighten. >> jensen will be on overtime tomorrow. >> speaking of declines day over day, me and him in 25 hours. >> i always remind people, i don't take for granted, people know everything about everybody who come on. you speak to the semi conductor knowledge. >> if you told me 20 years ago that would be adding intel market cap on a one-day basis, i would have laughed in your face. they have done a lot of things right over the last 20 years. i want exposure to the best companies in the first and second year of a 10 year trend. i would rather keep that one and some of the tangentially related once people applying this is from a position of correctly overweight a lot and worried that you could have a correction. the stuff is higher beta. >> you are talking like palantir . >> that was on top of the list. higher beta to, shop at five

small caps are dependent on rates.we can saw them come down like we saw in early may, another moving backup, the small caps and the rest of the market are struggling. to the extent the fed can ease rates, that would be of benefit to go down the cap scale on company's more dependent on. katie: catch down. that was the phrase in looking for. walter, always great to speak with you. i really appreciate your time as we count down to the dell earnings. that is walter todd of greenwood capital. we will look at the companies making the most social bus today and our social climbers segment up next. this is bloomberg. ♪ ♪ to start a business, you need an idea. it's a pillow with a speaker in it! that's right craig. a team that's highly competent. i'm just here for the internets. at&t it's super-fast. reliable. you locked us out?! arrggghh! ahhhh! solution-oriented. [jenna screams] and most importantly... is the internet out? don't worry, we have at&t internet back-up. the next level network. i sold a pillow! katie: it is time fo