tommy show is the ceo of kbw. great to have you on. an important conversation. >> yes. >> everybody is going to be waiting for this fed easing cycle, but it looks like the bond market has kind of already done the job of the fed for it. >> yes. well, the first thing is i would watch the yield curve and the shape of the yield curve. we're watching it very carefully for the banks. this past week we had the twos, tens stop being inverted for a short period of time, the longest period of time in 47 years that that yield curve had been inverted. the one that matters most for the banks still a little inverted that's the three month five year that's the longest inversion in close to 70 years. >> wow. i sorry, what does that mean in plain language? whenever i hear the first time in 70 years you got my attention. >> here is what it is is the biggest component of bank earnings is net interest income which they earn on the spread. when the yield curve is inverted, assume these banks are operating with a big headwind blowing at them. it's a hard ma

the kbw banking index versus the spread, you can see the correlation is getting much higher.ssa, back to you. >>> still to come, a cautious tone growing around lululemon. n'vito y rket nagar,ou n'vito y rket nagar,ou dot want to miss this. (♪♪) car, this isn't the way home. that's right james, it isn't. it's next. car, where are we going? we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. call coventry direct to learn more. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. our friend sold their policy to help pay their medical bills, and that got me thinking. maybe selling our policy could help with our retirement. i'm skepti

jonathan: kbw regional banking index hitting a slide. christopher marinac remaining constructive.very modest this quarter. companies are being careful to extend new credit and most are wary of new lines. chris, welcome back to the program . banks have had quite a run. 20% in some places since the presidential debate. the move more recently, how would you describe that and how would you do stings between solid names that will improve in months to come and quarters to come and maybe the trash your names you want to avoid? -- trashier names you want to avoid? chris: we will be in a trading range until october. september should be generally positive. most banks are not seeing any new credit quality problems. when you talk about banks being labeled trash, that's the perception that credit will deteriorate in the quarters ahead. to some extent that's depending on the economy. we think banks will benefit from lower interest rates. the official fed policy cuts that they starting to month could be beneficial to the cost of funds for banks and interest rates widening. it will give relief to