don't buy small cap stocks. can't trust it until you get rate cuts. >> lean up in quality any small caps until we get the first rate cut and then you'll see broader participation, i think in that small cap story. we all know valuation, the story is in place for small versus large as well as value versus growth. i think there's four ingredients that let this bull market continue and i don't think it's necessarily the fed rate cut. i think it's liquidity, like you mentioned earlier, scott. i think it's a solid earnings story and we're seeing positive revisions right now. i think it's going to be bond yields that stay pretty range-bound between now and the end of the year, and then i'll bring it back to artificial intelligence. it's the innovation story that doesn't just impact tech, but is going to impact every corner of the economy, and i think those four cat lifts ultimately keep this bull market going. even though we all know an election year, likely we get volatility this summer. use weakness as a buying oppor

small cap stocks, also struggling. today the russell 2,000, down by almost 1% after a little bit of a pop yesterday. that even with treasury yields, falling sharply today, following an encouraging wholesale inflation reading, an uptick in unemployment readings. the ten-year was at 4.5 just a couple of days ago, about 460 two weeks ago. we start with our talk of the tape. can wall street stay patient as long as the federal reserve can? as we await confirmation of a soft economic landing? and where within this uneven equity market should investors be focusing their attention? let's bring in joe terranova, courtney garcia, and adam parker of trivariate research. joe, we got used to this idea that economic resilience, earnings come back, the fed not doing anything, but poised to perhaps easy was enough for the market to get by. maybe the breadth of the market is not necessarily showing a lot of cheer today, but has anything changed after the fed meeting, after some of those numbers this morning? >> i don't think any has ch

and small cap stocks. it. in fact just here recently we could see the bias is starting to shift just yet again but in the wrong direction. i want to bring in bank of america u.s. equity strategist and head of u.s. small and mid-cap strategy, golly, you've had a rough year because the area that you focused on had a rough year. just short term we've seen the tide turn. mid-caps bias to the downside. we know small caps, at least by the russell, midterm. i mean, how do you navigate in an environment like this when these large cap names are going through the roof? these, all the time and these keep struggling all the time? >> right. i think, both of the indices, the large and the small cap indices have issues. obviously the large cap index is very concentrated in a small number of stocks. the small cap index, you have a lot of stocks are non-profitable. a third of the russell 2000 has no earnings. a lot of stocks are very rate sensitive. there is refinancing risk. charles: that maturity wall everyone talks abou

you think about it, the price differentials between small caps, mid-caps, and the large-cap benchmarks. you think about the strength of the economy, it seems straightforward when you combine that with rate cuts. still come you haven't seen a sustainable broadening out. what is going to be the catalyst, linda? linda: it is a very unclear time.people are having a hard time figuring out where we are in the economic cycle because you have mixed numbers coming through. we even had that this week with regionals being mixed and housing numbers not good, but when you look at inflation expectations -- which are huge and could be good news for us as we look at the fed -- when you see jobs plentiful versus hard-to-find index -- which was great news this week -- it is all about jobs and it will be all about earnings. the earnings, and we will hear more and more in the next two quarters, will be much easier year-over-year comps for those cyclical areas that have yet to really catch the bid that we expect they will do. we are watching for earnings results, margin comments the second half of the year

they've got a visa cap without a cap , we is. they've got a visa cap without a cap, we did is.of it, which they did in 2020, and now they're going back to it. but without a number, it is utter chaos. >> the lib dems are promising free personal care for adults in need, including the elderly and disabled. so ed davey says he wants to pay carers an extra £2 an hour above the national living wage and add the £37 billion of investment they are pledging, he says, will ultimately benefit the nhs. he is himself a carer for a disabled son and has described the issue as a deeply personal one. finally, a labour candidate who has dropped last week after liking social media posts criticising israel and its actions in gaza, has now quit the party. faiza shaheen, an economist, was set to contest the chingford and woodford green seat held by the former tory leader, sir iain duncan smith. well she's accused labour of subjecting her to a systematic campaign of racism, islamophobia and bullying. miss shaheen may still stand as independent. she is to make an announcement tomorrow . and we'll have

again, if it is small cap project, anything goes back to small cap and large cap goes back to large cap. there are exceptions to these rules. state and federal office buildings, do not require local approval, so those do not come to the planning commission for allocation, but the program still requires we account for them. when those projects begin construction, we do have to take that square footage out of the large or small cap and for port and redevelopment projects, there are different types of projects and different parts of the port and different redevelopment plans with different rules, so whether or not those have to come to planning commission varies but regardless the program has to account for the projects and pull the square footage out of the respective cap. for city and county office projects, those buildings are completely exempt from the plan. not required to get allocation and they are not pulled from the program. very quick history, the program started as part of the downtown plan in 1985 and adopted by the board of supervisors, a temporary three year program and captu

everything was negative except for large cap anding large cap growth, large cap core.verything else all levels of value were down. mid-caps were down. small caps were down. sort of the same thing for the whole year. in a league by itself, large cap growth in league by itself. mid-cap up 4%. small caps up less than 3%. how long can this go on? that's what think keep asking. for get about the dominance of the "magnificent seven." now it is a.i. big 10, 20% of the s&p market cap. that is all you need to know. as far as the economy, this is really interesting as we go into this fed meeting, since the last fomc meeting couple things, inflation surprises are still up. even though they flatenned out there much higher than they were. growth surprises have plummeted. some might call this stagflation. for sure it is not the stuff of rate cuts. explains why now only one firm see as cut in july. on that note i want to bring in my first guest. he says the fed is likely to find itself behind the curve in easing monetary policy. crossmark ceo, cio bob doll. start with the rate cuts.

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tend to outperform large caps.ectors that i like, three of the four we like make up a lot of the bigger weightings within the small caps. katie: so basically you are saying that now is the time to reallocate to small caps if you haven't already? larry: yes, we never say you have to do it today but we always like the transition. now within the next month or two or three, there is a nice window to transition out of some of your larger cap space in the small-cap with the expectation that if we go into the end of this year and next year that small caps begin to be part of the leadership going forward. katie: i hope everyone at home is writing that down. let's acknowledge the fact that we are having this in mid june and approaching a sleepy summer season. you think about the trajectory towards the end of the year, should we expect any volatility in the couple months ahead? larry: during the summer months, i know that seven out of eight years the summer was a good time to invest in the market and has been up over the las

the big picture is that small caps, mid-caps, small caps for sure, not so much on the mid-caps but thearnings have been kind of going sideways. maybe they're more challenged by high interest rates and tight monetary policies. a lot of smaller companies are really suffering from a shortage of labor. i think all these companies will have to figure out how to use technology to increase their productivity. charles: i got about 40 seconds here. so your thoughts on the fed. when you saw the retail sales number, for instance, cross the tape, are you getting concerned at all maybe they're waiting too long to cut? >> i'm note, no. quite the opposite. i've been saying that it will be a mistake for them to cut because this really would turn into a melt-up very much reminiscent of the 1990s. you might have seen the atlanta fed came out with their latest estimates for how gdp is tracking after the retail sales numbers and production numbers came out and they didn't lower it much. it was basically the same, around three% and the consumer was lowered a little bit but they're still talking about 2 1/2

they think a small cap is a weak company but actually small caps, especially some are small companieser market and not a trillion dollar company but may be number one. >> thank you for that thesis on small caps. one more look at the features. dow hit its lows of this morning. "squawk box" starts right now. >>> good morning. stock futures pointing to a lower open. the fed kicks off its two-day policy meeting. we will get you ready for the trading day ahead. >>> apple unveiling long awaited artificial intelligence features for its software and devices but a partnership with open a.i. sparking backlash from elon musk who is threatening to ban apple's devices from its companies. >>> an independent panel recommending fda approval for eli lilly's alzheimer's drug. details ahead. it's tuesday, june 11th, 2024. "squawk box" begins right now. ♪ >> good morning, everybody. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and aunedndrew ross sork. this is feeling like a broken record when we see this again and ag

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they've got a visa cap without a cap, we did have a visa cap before. rid of it, which they did in 2020. and now they're going back to it. but without a number, it is utter chaos. they've lost control. and that's why this election can't come soon enough. because i think the country is crying out to say, just end the chaos. crying out to say, just end the chaos . let's insert some chaos. let's insert some control, turn a page and start to rebuild the country with laboun to rebuild the country with labour. and on immigration we have to tackle the central issue, which is that we need a skills strategy in this country. so we don't have to have so many people arriving on work visas and we have to hammer down on bad bosses who aren't complying with labour standards. and we would ban them from recruiting people from abroad if they don't comply with our labour standards. you shouldn't be allowed to recruit from abroad. >> meanwhile, as for the liberal democrats, while their leader sir ed davey, has been out campaigning in cheadle today and his party has today p

versus small cap. again, the yield's down. russell down. small caps down. that tells you everything about growth scare, right? otherwise you'd have russell up, but if you think that the most economic sensitive stocks within the market, small caps -- >> there's a group of people who think small caps can outperform in a flat to down tape. i don't get that at all. i think if you get way more bullish again, then maybe you could say it's risk on, i'm small cap, regional banks, more grungy. at this point where we are, we've had a huge move. i think you want to own the businesses that have pricing power, that have productivity, exposure to the right market. we know what they are and it's not a lot of small caps. >> what about financials? financials had a nice move and now not so much. >> i just downgraded them a couple weeks ago. i don't think they're going to benefit from a.i. in the first wave on the cost side like maybe health care or other places will. most financial business have to do things in duplicat

>> we've been a big believer in large cap over small cap. the russell 2000 has been a hedge for us for the last several years. i believe in most industries, we live in a winner-take-most world. scale really matters. i've been on the board of 15 s&p 500-type companies. when a bad thing happens to a business and you need to deal with it, having a scale is a huge competitive advantage. so there's a reason why companies that are small, in many instances are small, and big companies are big. we would prefer to invest in companies with strong macro tail winds, and let the macro inform the micro, so i'm generally a believer in medium to large-cap businesses over small cap businesses anywhere in the cycle. >> themes that you like, energy transition. when you look at utilities, for example, ai, we're talking about, there's not enough power to produce enough energy to make a lot of chips, to make this whole thing work, are you playing that theme, if not, is there another part of energy transformation that you're hot on? >> so we've owned utilities, wi

make or break hour begins with mega cap tech name reaching a new milestone today, and it's not nvidia. strike up the band. it's amazon. topping $2 trillion in market cap for the first time ever, we will talk about the stock's supercharged comeback with a shareholder who's buying more today and we'll do that in just a little bit. in the meantime, take a look at the score card with 60 minutes to go in regulation, get the feeling from looking at the major averages at a there's a pretty big wait and see ahead of friday morning's pce, inflation report, no big bets being put on the table today as a result. yields, though, have been creeping up. and that's something we're going to keep our eye on over this final stretch as well. there's the ten-year. at 4:31. i did mention nvidia earlier. yes, it is in the news and it is important today. the company holding its shareholder meeting and talking up its next generation of a.i. chips as well. we'll have a report on what ceo jensen wong told his investors this afternoon. it takes us to our talk of the tape. the amazon resurgence, how it's happened

we don't use leverage and small-cap space. by small-cap i mean companies with under 30 million.that we acknowledge can barely pair the rate of heavy interest rate expense. that hasn't been as much of an issue for us in the small caps space. kriti: last question to you, it's ecb day, we are a week away from fed day, talk to us about this interest rate environment, what kind of christian does it create in the private capital markets only talk about the keyword used, resilience. >> we don't bet on interest rates when we think about the deals we structure and the deals we bring to investment committee. while we are interested to see how this plays out, it hasn't been impactful on our strategy currently. but because we have a private credit platform here at vista we are bullish on the opportunity ahead and proud of the results that our team will build. kriti: senior managing director of vista equity. tom, back to you. tom: bloomberg markets today anchor kriti gupta with our exclusive interview. there is plenty more coming up. this is bloomberg. ♪ tom: it is the corporate story of the

they've got a visa cap without a cap. we did have a visa cap before. rishi sunak are you to get rid of it, which visa cap before. rishi sunak are you to get rid of it , which they you to get rid of it, which they did in 2020 and now they're going back to it. but without a number it is utter chaos. >> and that comes as more than 200 migrants arrived in the uk on small boats this morning. now major hospitals in london have declared a critical incident after a cyber attack . it's led after a cyber attack. it's led to the cancellation of operations today and the loss of blood transfusions. staff at king's college hospital and guy's and thomas's, including the royal brompton, all been told their sites have been hit by what is being described by some as a ransomware attack . some as a ransomware attack. three injured military horses who bolted through central london during a training exercise in april are, we're told, making a remarkable recovery . now the army says recovery. now the army says trojan, tennyson and vanquish are all back on duty and are expect

only 39% for mid-caps and just 36% rather for small caps. the situation now sending off alarms. according to bank of america, frank luntz gillum it is at a 30 -year high and the firm explains it this way as the overall economic side that is very questionable, jobs report last friday, most economic data releases have missed wall street's consensus. they say listen. daily moves relative to volatility are at extreme levels and that poses a risk and it stems from crowding positions, low liquidity, fomo, and investors rushing to sell everything when momentum turns. that's your concern, right? speaking of on the other side of this the economic side on jobs, you know, we've got a piece from arger labs infinite and this suggests the current trajectory of the unemployment rate is actually closer to the path of a hard landing than a soft landing. now my first guest acknowledges this is a unique bull market which has turned past rules upside down and on their head but also admits that two of the four legs have been tied together but he actually says that that all changes when the economy s

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if you just look at the market cap basis, it should be 20%.y should all be over 20% weighting but investment company rules don't allow you to do that. there is diversification requirements of the smallest stock gets capped. in the past, nvidia has been capped 4.5% but because apple is technically smaller than nvidia, they will be the one that gets capped so you will see an $11 billion potential sale of apple and then you will see 9-10,000,000,000 dollars of nvidia stock and that would happen on june 21. sonali: there are implications for nvidia but if you think about how much index funds on the likes of apple and large impact stops -- stocks could be quite a bunch more money flowing into nvidia and less flowing into apple. >> apple is on a tear right now with what's happened over the last couple of days but the impact is hard to know. this is not something that comes out of the blue and no one knows it will happen. the impact likely will be felt or at least known long before the trade happens. the date that matters is june 14 but the date the

if you take a look at some of these active fully managed small cap portfolios, you have the small cap value etf. that has outperformed. and you have the u.s. cash cows. there is an opportunity here if you pick and choose. are you better off, not overcomplicating it and just buying the s&p 500 or the nasdaq 100? shana: there's plenty of evidence that shows in small cap and mid cap and some of these less efficient areas in the market that it works and we're seeing that in this active small cap etf's. there's advantage there. good active managers, like small caps can consistently provide you with alpha. so i would be looking if i'm an individual infer, maybe i'm not doing the -- infer, i would find the good active managers to invest in. katie: what is going on? >> we have to, katie. the return of keith gill on reddit. katie: again. >> just a few weeks after his return to x. we saw the stock up at one point, 75%. the return of keith gill driving interests. a number of that coming on options as long as the stock trades above $20. but reiterating his willingness to buy into the stock and dr

once we developed our cap our cap set the direction, the context and the specific actions to achieve both those goals and the targets. so, that's--and then within the cap, we have 34 strategies and 179 actions. each strategy defines what success looks like and it also has climate and equity metrics. after we release the cap, we developed a monitoring evaluation and reporting system and this helps support the delivery of our actions in the cap and also collect the metric. and then we continue to track progress over time. over the last couple years we have been collecting information, we have been tracking progress, we have been establishing routines and holding meetings with city staff for robust dialogue. the last pgoal is to insure transparency. we want to make sure that this whole process is visible to the public and so we have a website that has a dashboard that shows our progress and our collection of metrics. i like to turn it over to my colleague, sylvan ludewigt and thank him for all his persistence collecting all this data and also developing the report in your packet. >> tha

that is bigger than the total market cap of amazon, the total forget cap of meta. back to its ipo, it has now posted -- i am not good with these large numbers. it is a six digit gain including reinvested dividends. it is just a remarkable ride. manus: a -- katie: an incredible race going on. accenture, the same story. emily: when you look at earnings, it wasn't all good on the top line, adjusted vps and revenue a slight miss but investors didn't mind. when you dig in, they posted a beat on their new bookings for the third quarter, generative ai new bookings totaled 900 million dollars versus $600 million in the second quarter. bookings overall were up 23% since last year and beat estimates. the stock is up 10%. you look at what analysts are saying, while the income statement wasn't terrific, the robust looking numbers should help the stock trade well. it is an ai morning. katie: tell me about dell. emily: this is a partnership with an elon musk of start up. musk said that dell and also super micro computer is also going crazy, will be providing super racks for the

we touched $3 trillion in market cap. we are going to get into this about valuations, comparisons against other peers on the s&p 500. waiting is important. i put that up as a precursor to my next chart with med the best performer on the nasdaq 100 from a points perspective. this is what we care about now. let's bring up the chart and look at nvidia's market cap relative to apple. it's so close right now. nvidia just a touch below 3 trillion. it was brief and it was short-lived. nvidia is only the third company to reach $3 trillion of market cap and the first-ever semiconductor name or chipmaker to do so. let's talk about which metric we decide if this is fair if it's a good idea or not. caroline: longer-term keep on buying into this. we have that perfect set up telling us once again apple is back but nvidia has just hit that landmark. it's all psychological isn't it? and in many ways so as the stock split. >> because it is the stock split driving this moving higher ahead of that because monday is when the stock split goes

caps.hey have not been benefitting from any of the trends in the past two years. >> i have time for one question, but two points. you still like the european small caps for the next 12 months and what are you seeing there? >> i'll talk a little bit more. usually small caps are trading at a premium versus large caps. why is sthat? they grow faster. that's a long-term trend. right now, the market is for the first time in 25 years, putting a discount on small caps versus large caps. if you expect a recession, i would agree and say there is more downside potential than long term. we no longer expect a recession. the recession is still priced in with the relative valuations. i think small caps is the place to be. if you have the catch up to large caps, you could have a double digit of small caps than large caps. that sis a concentrated market. >> i suppose that matches up with your sentiment around the second half of the year also being europe more favored. you are still seeing that potential fo

and it matters up the cap spectrum and down the cap spectrum. >> what do you make of the lack of volatility for the most part in the first half of the year? fits and starts there but nothing to point to say, wow, this is really volatile markets. do you feel like that's going to return in the second half because we're going to be talking more about rate cuts and the election? bespoke had a stat, which is really just astounding when you sit back and realize how reasonably sanguin has been. the s&p has gone 340 trading days without a drop of 1 to 2%. we're talking a year before a 2% drop in the s&p. >> because it's been biased to performance up the cap spectrum in that relatively small handful of names. and that's kept index level volatility relatively low. in response to the first part of your question, at some point i think the answer is, definitely, yes, the path of least resistance for volatility goes up. undoubtedly you can plug in fed policy uncertainty, election uncertainty, geopolitics into the mix of what could be the trigger for a pick up in volatility. just election related trends,

small caps getting hammered, narrowness of the big caps? >> right.o a lot of it is saying there is risk aversion, there is a lot of fear out there. we want to be in what a lot of investors view as the safety stocks and not necessarily as much as the, retail investor is also going into the household names, the names they know. charles: right. >> they're not going out into names that they're not so familiar with. it is not something you buy every day or hear about every day. so that lack of breadth is really concerning because we're just not seeing investors go all in into u.s. equities and the u.s. economy as a whole. charles: but they're all in on the leaders, right? >> right. charles: they're note afraid to be in these names that are more expensive and more expensive and yet everything else they're saying i don't -- not even not being in them, erin, these stocks are getting hammered. i have quality names getting hit for no other other than they're taking money out and chasing a handful of names. >> it is really constrained there is no alternative ty

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got a visa cap without a cap, we did have a visa cap before.ishi sunak. are you to get rid of it, which they did in 2020. and now they're going back to it. but without a number, it is utter chaos coming as more than 200 migrants arrived in the uk on small boats this morning. >> now major hospitals in london have declared a critical incident after a cyber attack. it's led to the cancellation of operations and the loss of blood transfusions for patients. staff at king's college hospital and guy's and saint thomas's, including the royal brompton and their primary care services, have all been told their sites have all been told their sites have been hit by a major incident. some sources telling senior representatives within the nhs that it is indeed a ransomware attack . now a group ransomware attack. now a group of british veterans has arrived in france to take part in commemorations marking the 80th anniversary of the normandy landings. earlier, there was an raf fly—past and crowds waving flags gathered on harbour walls in portsmouth as they set

all members of the $3 trillion market cap club. joining me now is alex kantrowitz.or being here. let's talk about the technology trade and if it can get any more momentum than it already has. >> look, as you mentioned reading up to the segment, nvidia was up 38% in the quarter to date. they have added 100 something percent to the market cap since the beginning of the year and surging. eventually the law of large numbers catches up to you. that will be very difficult to keep up the pace. can they keep selling and keep growing? absolutely. they are really leading the charge here. >> what exactly, then, is the case to be made, alex, for investors to keep looking toward companies like nvidia, microsoft and apple? we know the a.i. story is big for the mega cap tech trade, but there have got to be other companies that are maybe not as covered that are the ones that could see some of the similar types of gains even after nvidia posted a banner decade so far. >> dom, i think the concentration is going to continue to be in the large caps because this is a game of scale. the

so we left the cap and see how it is utilized. and then, so obviously my first meeting so wasn't around for previous conversation but to jennifer's point about the subsidy for rapid rehousing and hsh proposal 5 years and the mayor proposal is for 2 to 5 years, so i guess understanding anybody that needs to stay on it 5 years can but there is anticipation some won't need it 5 years and why the 2 was put in there. it is helpful to understand what the 2 to 5 means. echoing that question a little bit. and then again, as someone who previously worked on the expansion of the shelter in san francisco thinking long-term operation and echoing similar concerns that have been raised about ongoing operating budget for the site but that is a question for every site every year, so and the city usually man ages to find a way so i have full faith and confidence, and it is nice to have a little more certainty where possible about what that source-if we acquire a site and that budget cycle, what the immediate operating source would be. and also, i

we still remained opposite side, so we think it is large-cap source small caps.earnings. for the first time, not only did we see margin continue to grow but in the right direction. in our view, the last three quarters, improving margin all concentrated on tech. but there are some glimmers of hope. that said, our view is we remain skeptical because it is just one quarter and we are beginning to see cracks in the consumer, which means companies which took advantage of a one-time opportunity to raise prices are seeing a competitive reaction and are facing the situation where final demand -- people are becoming more careful about where to spend their dollar. that translates into some sort of margin pressure and where equity in markets need to pay attention is that, compared to historical ways the market reacts, some of the more defensive areas of the market are where there is still pressure. so if things were to go wrong the kind protection from staples may not materialize, so this is a complex market, highly concentrated and yet very high dispersion. they are strugg

if you are small-cap or mid-cap, that is not a great place to be.y slowdown. short-term, you still have this momentum type market, and as we have seen, you just need a couple stocks to work. you could -- lisa: so it could further propel stocks higher after. >> he would see growth outperform value. annmarie: i want to move to the politics of this. you are tracking trump to the s&p 500 and right into the 10 year yield. what are they telling you? >> i do not like to talk about politics too much. >> you have two really good charts. backing up a little bit, what we like to talk about with politics is that if the gop takes the senate, and it does come in our estimation it looks like a more out -- likely outcome than not. we think it is because the gmp is a little bit more business and economy focused. m&a has been held up by regulation. as far as the presidential election, we think it is a kueng toss. if you look globally, if you are an incumbent, and has not been a great situation. it has been very difficult. we stumbled on this chart with the probabilit

we are the only country in the oecd who cap benefit, and that's basically countries in the west who capts with regards to children at two children, most countries don't cap it for any number of children. i think there's spain, a couple of other countries, two child benefits not capped. is it benefits in relation to children . relation to children. >> so child benefit you can have my mum. >> to be clear this is principally around universal credit. yeah. there are several countries which cap it at 3 or 4 children, including spain. nobody else does it at two children. and i think it's a very , very, very bad idea. very, very, very bad idea. you've got about a million kids growing up in poverty as a result of this. in terms of you don't have to even agree with it as a policy or the role of the state or anything like that, pound for pound, in terms of how many kids it takes out of poverty for about £25 billion a yeanl poverty for about £25 billion a year, i think it makes total sense. and the thing is, somebody might say, well, we can't afford to scrap it. i would say we can't afford to have

we look at the s&p 600 small cap and maybe the wilshire 5,000 and the example of small caps that don't we conot like regional banks here and having said that, this is a market that can pick stocks and find ones that do well. >> nancy prial of essex investments and how do you feel, anyway? >> it is a concern. viewers are calling in and emailing and everybody's worried. >> if we had done this at the top of the show. >> we would not have allowed that to happen. >> i would not be sitting here right now. >> because my constitution -- we produce in great detail. if we ever did a cheerios taste test on the show it would be disaster. >> i wonder how much a chick-fil-a value meal is? $13. $12.75. >> your point being? youwanted to change the subject? >> how is that piggyback? >> pretty fascinating. >> up next, final trades. your shipping manager left to “find themself.” leaving you lost. 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 >> time for the final trade. let's go around the ho

over small caps.how much does macrostory play into your thinking here eric? i spoke with stephanie pomboy president of macromavens one of the best research firms out there she notes from latest cfo survey, she says in a special question nearly one third cfos positives indicate because of uncertainty about election postponing or scaling down delaying permanently canceling new investments when you look at corporate investment isn't that an indicator of economic stability? and looks like they're canceling plans to invest. >> it is a huge issue, maria. we do our cfo survey i encourage watchers check it out one thing we've seen is idea there is some uncertainty, cfo's in particular doing a couple things number one preparing for potentially more m&a, number two, spending more time, thinking about capexks where had the technology, cyber, things like ai, those are real trends, so still feels like a level of cautious optimism from cfo's but to your point can change most policy irrespective what side you are ow

they have increased the cap for export lending. i yield back because my time is up. >> i want to thank her for the comments and putting into the record the amount of small businesses that are helped. i always call them the small business bank. even if you help a big business, it takes lakhs of little businesses to get the parts and services. there is a ripple effect that affects lots of small businesses. we have the chairman of the small business committee with us today. it is a big deal to have you with us today. with that, we welcome the testimony of joe lewis. president chair of the board of directors of the xm bank. doing a great job of giving us an overview of the past. with that, we thank you for taking the time to be here. you are recognized for five minutes to give oral testimony. and will be made part of the record. a quick overview and tutorial here on the light system. when it is red, that is a stop sign. when you hear me like that, if you can wind up your answer to move on. as we indicated earlier, we will try to adjour

stocks will likely surpass that of large cap stocks and perk the interest of investors. >> small capsur, as well. what do you make of the arguments looking there, that we could have a leadership change, '99 to post.. dot com. >> it was the dot com crash. i don't think those transitions necessarily happen on the fly. if there were a way to look back at an example when that did work, it would be '94 into '95. that meant a slow and orderly fed easing cycle. after an internal correction in the broad stock market that hurt small caps a lot. when investors got confidence that the fed was able to ease into an expansion. a lot has to go right. i think the one thing i always would draw out of the recent action is that we shouldn't assign small caps any special presentations about the macro. we don't have to say, russell isn't performing. must be bad for the economy. it's been years now, the economy has been fine. the russell 2000 has been dead money. >> indeed. we'll leave it there. mike, jason pride, thank you, both. >> thanks for having me. >>> further ahead, heat waves on the way. drought a

_, , . benefit cap? it is a policy meaning that the maximum _ benefit cap?that the maximum amount - benefit cap? it is a policy meaning that the maximum amount of - benefit cap? it is a policy meaning i that the maximum amount of support you can get through the benefit system in some households, they are affected by both essentially, the government of the two child limit, they still would see the benefits rise that much because there'll be it by the cap instead. tt’s rise that much because there'll be it by the cap instead.— it by the cap instead. it's worse for labour— it by the cap instead. it's worse for labour because _ it by the cap instead. it's worse for labour because candidates l it by the cap instead. it's worse | for labour because candidates in the election, it impacts families of different ethnicities more. pakistani, bangladeshi families tend to have large children they will be worse off. , to have large children they will be worse off. ., worse off. those from those backgrounds _ worse off. those from those backgrounds are _ worse off. those f

large cap value tooked lead. it really has always been large cap.14%. small cap negative on the value side. again a lot of people keep looking for value. i want to bring in kaltbaum capital management president fox business contributor, gary kaltbaum. gary, is it time to look beyond the technology names and the large cap names? >> well i'm a big believer in letting the market show you. on thursday i got rid of my semiconductor proxy. i got rid of my nasdaq 100 proxy. i got rid of half of my nvidia. i should have sold it all the way it is acting today and there is other things, the good news there are other things showing up and the chart you just showed, charles, scares the willies out of me longer term, because it is that type of concentration and narrowness that usually leads to trouble. the good news again near term, the money flows are going elsewhere and i'm finding better charts and potential launching pads in areas that i don't usually delve into. charles: right. >> but looks like the financials, some of the economically sensitive, some retai

a cap, we did have a visa cap before? the european union, thatis when we were in the european union, that is the earning of it. this prime ministerfor all that is the earning of it. this prime minister for all his tough talk, is the most liberal prime minister when it comes to migration. those numbers have gone through the roof. flan those numbers have gone through the roof. . , ., ., ., those numbers have gone through the roof. . , ., . ., .., roof. can you guarantee it will come down under — roof. can you guarantee it will come down under a _ roof. can you guarantee it will come down under a labour _ roof. can you guarantee it will come down under a labour government? | roof. can you guarantee it will come i down under a labour government? we down under a labour government? , have a plan to bring them down, you cannot wish them down, the tories are plucking numbers and hoping for the best, you have to understand why there are high, the skill structure is not here, we need to fix and bear down on bad bosses who are under

say, large cap looks expensive versus small caps. recommending to our field small cap. but the devil's in the details. when you actually look at small cal growth universe, it really is just, inferior universe than large cap. right? way less profit margin expansion. way more companies lose money. way lower quality and quality works in growth. its sector constitution is inferior. i think small cap growth is an inferior asset class. if you mess there you've got to hope your stock picking. should have more stock opportunities for sure. a little bit more aristocratic but make that to offset underperformance of the asset class. >> one more thing. you alluded to. asked, sort of threw a question, open question out as to whether well is money going to come out of chips go into software? reminded me of a note you put out within the last week or so which suggested, don't be tempted to buy the dip in some of these software stocks. do you still feel that way? >> yeah. my general view, the equity market especially a.i. stuff, innocent until proven guilty. you want to own these a.i. s

they've not said what the number is, so they've got a visa cap without a cap. a visa cap before rishi sunak erg to get rid of it, which they did in 2020, and now they're going back to it. but without a number it is utter chaos. >> sir keir starmer now gb news can reveal that up to six conservative candidates are reported to be deciding upon whether or not to defect to reform uk. the candidates have to decide by friday when nominations must be in. one told gb news that rishi sunak's performance in tonight's leader's debate with sir keir starmer could impact on his decision . a group of british decision. a group of british veterans has arrived in france today to take part in commemorations marking the 80th anniversary of the normandy landings . earlier, there was an landings. earlier, there was an raf fly—past and crowds waving flags gathered on harbour walls in portsmouth as the men set off for france. they're carrying with them a commemorative torch from the commonwealth war graves commission, which will form the centrepiece at a vigil tomorrow . centrepiece at