so, i understand the concern that folks have if we're losing tech jobs and tech workers.what does that mean for the economy? but there are places we can look with an even bigger impact. so, we analyze the economic costs of racial inequities in wages and in employment. that cost the bay area, nine- county bay area, 50% of our gdp if we could close those gaps. we see tremendous segregation happening. we know that segregation is at least as bad, if not worse than it was a decade ago, a generation ago. we know that, in chicago, for example, segregation alone cost the economy about $5 billion a year. finally, we have analyzed the economic impacts of unaffordable rents and found that if no one in the bay area were paying unaffordable rents, that would give consumers about $6 billion more in purchasing power each year. so, there are a lot of ways our economy is being impacted by this that is not just young workers taking their wealth and moving to another tech hub. >> what makes the bay area a good place to live, a place where people feel comfortable and enthusiastic about leavi

tech regulation is not that.how people favor regulation of big tech in general but this bill does something that is not popular, banning big tech from offering things like google maps, amazon basics. it has always been clear why smaller companies would benefit the senators have seen for themselves over the last couple months no voters are marching on washington to demand big changes to google search results were amazon prime, and that is just the reality. emily: charlotte, how do you respond to that? charlotte: i think it may not yet be a household discussion about competition and antitrust, but i think what people notice that these products are not serving them. they might not know that that is because of a lack of competition, because these gatekeepers don't have to face the new entrepreneurs who sometimes have better ideas, and that is why we are stuck with the same old products. so i think people are learning, and that is part of the effort of advocacy for this legislation. people are learning what the root c

there's regular tech, if you will, and then there's health tech, biotech, all kinds of companies.you see them, primarily, on the nortend of the peninsula. really, as you are saying, many of these companies are so big now that they have multiple offices, even within the bay area. we see lots of dc money coming to the bay area. texas, bc money? i don't think i can squeeze my fingers together enough to show you how small that kind of money is. so yeah, if texas is taking some of the growth, i said, god bless. good luck. you know? but we're in no danger of losing our privacy here, in the bay area, as the heart of silicon valley. people come, people go. people come to replace them. one of the things you have been tracking with policy link is the racial and ethnic makeup of the bay area. we have some graphics here that are based on some of the data that the organization has put together. if you would mind breaking it down for us a little bit. >> for sure. one of the things we look at through the bay area equity is the racial composition of the region. we see that, in 2000, the bay area

that means higher yields and bad news for tech. let's look at the broad tech sector.he nasdaq 100 and the faang indexes falling for a second straight day, falling more than 1%. it has been a week since we have seen declines of that magnitude. we are seeing asset rotation here. we are hearing from investors that they are preparing to load up with treasuries as they are getting to the cheaper levels. that usually happens at the expense of these high valuation tech stocks. all of that also weighing on chips today. look at the philadelphia semiconductor index extending its today decline to about 3.5%. before the fed minutes, we also got bad news out of china earlier this week. that is taking a double whinny toll on the index, down about 25% year-to-date. let's look at some interesting corporate stories today. we have quite a few. ed that them beyond -- bed, bath & beyond continuing its retail-fueled surge. that trade is back with a vengeance. i want to turn our attention to another stock on this board. it is manchester united, which of rally quite a bit. if you are wonder

tech specifically is changing course when we look at tech and the s&p tech index, we are breaking aboveey bearish resistance lines. and as we break above these, i think this will only foster more and more money to come into the area and, you know, when we take a look at a sector rotation chart, tech sectors is the only s&p group that is in the leading quadrant now >> so give us some of your specific picks i know you like microsoft and some of the cybersecurity names. what are the names you like and why? >> sure. thank you, julia so microsoft, as you mentioned, we have been very -- on this this is part of the theme of strong fundamental stories cyber. we think cyber is in a great area of more and more cash flows. but i'll just introduce another name micron in am set semi space. this is one of the most economically sensitive areas last week micron came out saying they will invest over 40 billion in the next eight years because of the chips and science act that was recently passed they did lower guidance, 2023 capex down demand ways for chips and pcs and smartphones. you know, the expectat

>> i think tech is reacting to the rest of the market i would say unlike 2000, this certainly isn't tech specific. however, i do think that we've seen the near-term top in tech, the nasdaq 100 peaked a week ago. it was up 23% from its mid-june low. it's down about of % i would guess there's another 10 to 16% to gochlt from a tech technical perspective, it became oversold that's practically screaming sell. >> what about the semi stocks in particular as a part of tech i know we have an awful lot of focus there, but for good reasons. there can be some good indicators. >> i think the risk across tech and into semis at this point is probably less p/e than it is earnings we've had interest rate hikes. the risks that a lot of strategists are talking about is that earnings late this year into next year are going to be disappointing. semis are cyclical, sensitive to the economy. we all know automobiles and other products are including more semis there was also a lot of double ordering, there's supply constraints and so forth micron has talked about some weak pricing i wouldn't necessarily say sem

look at mega tech cap stocks as good example apple and amazon, beat u.p.s. numbers came down then obviously the rest of them, like facebook, et cetera they missed. those numbers come down too. in general all big cap tech companies, september quarter numbers come down, even if they had a good june quarter. so you're still in early stages of that process after two years of estimates going up for the s&p. i think you're going to have a 20% revision lower on the calendar '23 numbers going throughs course of next year aza absorbing rates. >> and maybe you see three quarters empty the way you see it, if up to this point there hasn't been that catalyst? what's it going to be? earnings, language from the fed? what changes their minds >> remember, it's a time equation right? if you go back to the tech bubble, the global financial crisis, you had five rallies in the s&p up 18% to 21%. this is 13%. it's a time equation, and people are now, of course, making the argument, well, estimates will be set and they're lower, and heedable you go through the quarter and go throu

financial services has to use tech industrials have to use tech consumer uses tech to sell direct to consumers and gather data of preference, size, color, flavor, all the rest of that tech should always be your anchor because it is the essence of the under-pipinning of the economy. that is why when people say oh, the fed is raising rates who cares? you can't run the technology without technology regardless of what rates are. >> rich, over to you i know you have a lot of dry powder right now what are you waiting for if you hear kevin's argument you might as well put that money into tech right now. >> well, we agree with kevin we're overweight technology yet we have to clarify between zero cash flow technology versus large cap technology and we're clearly in the overweight of large cap tech the rationale is we talk about labor shortages. that is going to lead to more technology adoption. these companies are growing faster than the s&p. and they have large moats around their businesses and recurring revenues so when we look at the cash flow, if you look at an apple right now with the ca

and tech is still pretty pricey. obviously it has come down a bit over the last few months with some of the sell-off where are you at with it where is it in the portfolios you manage under weight overweight >> i think if we talk about the megacap tech these are going to be companies that, i mean, they're just mature, just not going to deliver the same earnings growth going forward. i don't think there is anything to write home about for those names. they're going to get caught up if some of the same macro head winds whether the slowdown in ad spending, lower cloud expansion, lower enterprise spending. so i think they could probably hang in here and are not expensive but it is probably not the place i am most excited about. frank, looking at valuations i actually am excited about the reset in certain valuations we've seen if you look at the nasdaq broadly we went from 35 times forward multiple to 23 we were a little bit lower than that i think that is the major valuation reset. by the way, within that, you can probabl

i want to take another look at another subsector of tech, dom, the legacy tech trade. we have disappointing results from dell and this has been another relatively good space for investors to hide this year. is that coming undone now? yes, they have dividends but slowing growth is a concern. hp and hbq to report too. >> it's not just that. but it's all about the relativity versus expectations for many of these companies, because of the tough comparable comparisons we had during the pandemic there were already expectations that computing providers, companies like hpe, hpq, and of course dell have seen a boom to their business over the course of the last couple of years given the pandemic and everything else we kind of have an idea that things aren't going to be add good but how not good versus expectations are they? that's why you see dell, and hp, some of the ones here taking it on the chin. i'm not sure if that legacy trade can be boiled down strictly to the relativity over covid comparisons, but for right now, given the best buy results, by the way, with particular em

when, when the public at large and look at tech giants like apple. i'm the rest of them. i mean, it only takes one good idea, one new development, so to, to make things quicker, faster, more efficient, and those tech jones back on topic. i mean, how do you see that development happening in the years has, i think, protect the rock of gibraltar. they've almost become utilities for the average consumer. and that's why you look at apple. you talk about install base mon, almost 2000000000, you know, in terms of consumers. and even when we look at i phone 14, i will down the road. ok apple in terms of have an a r b r. that would be apple blast. and we alternately, we baffled car in 2020 bad. you could the cloud in terms of microsoft, amazon, google does not go away. we're going to have clearly recession, but we believe it's going to be short and ultimately on the other side of this, that's why we want to be on impact in tech stocks, in my opinion, needs the best ways to get there is a couple of new developments happening well in the last few days, one was

spending the on tech.are going to see tech improve. the valuations, i think interest rates going up and the discount rate that is implied in that in terms of earnings has actually made valuations come down. but i think earnings, over time, will be great for tech companies. in slower growth periods, tech tends to do quite well. ed: you have been across the inflation story of the semiconductor space, what have you learned from chip akers the last couple weeks? mel: interesting, and i was surprised at some of the earnings and some of the forward guidance on the chipmakers. again, as the economy picks up, there will be more and more demand and i think there is great opportunity. they did very well today. ed: i love speaking with you because you take a broad view of the technology sector and are always focused on cloud and ai. why is it that you see such opportunity and what is sometimes regarded as nascent spaces? mel: the opportunity for productivity with all these technologies is tremendous. or into more com

"tech check" is just getting started. as a main street bank, pnc has helped over 7 million kids develop their passion for learning. and now we're providing 88 billion dollars to support underserved communities... ...helping us all move forward financially. pnc bank: see how we can make a difference for you. >>> let's get a quick check on tesla. shares are up to 20 -- up still 27% off of their highs up today nearly 2% they did fall as low as 630 shares mid june. they've now gotten energy. ceo elon musk tweeting tesla has now produced over 3 million cars in total falling as big as shanghai this is as some dive back in tech leslie picker joins us at the deadline >> lots of whales so far good whale sightings ahead of the deadline, saurus buying 30,000 shares and d1 citing another share of tesla these showcase the long positions held by fund managers on june 30th that's the last day of the second quarter they'll provide some insight into how professional managers capped off the worst first cap of stocks and whether they were p

and i think that's what you've seen. tech stocks under such pressure. and even though this is been said, sort of golden darwin, but the last years, that's why multiples of compressed to have me talk about recession. i mean, the global economy is a, is a huge question mark for many countries around the world. and for the businesses on, in those sovereign states, i mean, what are the main challenges for companies anywhere in the world, whether established, look, i think there's uncertainty across the board. i think the bigger worry is you know how this is going to. busy play out if it's going to be a software or hardware and how is that that consumers as well as the enterprise environment know, so it's a complex geopolitical as well. but i think when you look at big tack as well as you know, i work in the, even my assa, across the board, you get the man around the edges come off, but we're still very bush and tax documents to the 2nd half of the year. i think tech over cracked and i can tell you cover and tack over the last few decades. it's extremely neg

tech upgrades for your changing wifi needs.ions of threats. only from us... xfinity. >>> welcome back to "the exchange." the dow and the s&p had managed to briefly turn positive they're a little bit lower now we'll call it flat the nasdaq composite still down about .3%. it is a different story for airline stocks majors will be low ear head of the holiday weekend. and jet blue turned positive is a cording to a bank of america, bookings took a sizable step back last week falling 24% from 2019 levels those analysts warning that if the softness is not reversed in the next one to two weeks that puts third quarter out looks at risk phil lebeau joins me with whether labor day travel demand will be the boost that airlines need i'm particularly invested in this question. i have to travel back to san francisco at the end of the week. >> i think you're going to be okay in terms of how the airlines handle thing. provided the weather cooperates. look, august has been an interesting month. until a couple of weeks ago, they were doing better

so i think it ultimately shows what's going to be a bifurcation of tech. you've got to own the right names. but i think right now in terms of sentiment, it continues to be as negative as i've seen going back to '09, 2010, even despite some of the rally we've seen over the last month. >> that's interesting. charlie, some of the names that you mentioned that were covid beneficiaries, peloton, amazon, netflix, zoom, i don't see a lot of enterprise names in there i wondering if your thesis extends to the possibility that we do get a drawdown in business investment, where enterprise really becomes the locus of any weakness >> very possible i could be careful and say there are some tech names that i think will do fine oracle has a big enterprise business and big hosting bess that is reasonably priced at 14 times earnings but a lot of these names just aren't fundamentally you have to go back to valuation. i know that's boring and a lot of investors hate to talk about valuation but it really does matter we have a lot of technology names that have valuations that a

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now, whatsapp _ of tech this week. now, whatsapp is _ of tech this week. allowing people of tech this week. now, - whatsapp is allowing people to exit without other people being told about it, except the group admin. it told about it, except the group admin. . told about it, except the group admin. , ., ., admin. it is one of the previously _ admin. it is one of the previously features i admin. it is one of the i previously features being admin. it is one of the - previously features being added to control when you see people on line. presidentjoe biden assigned a law committing $280 billion to hi—tech manufacturing and scientific research. it comes amid fears the country is losing its tech add to china and will be used to boost domestic production of microchips. to boost domestic production of microchips-— microchips. this increase research _ microchips. this increase research in _ microchips. this increase research in developing i microchips. this increase i research in developing funding will ensure the united states leads the world is in these industri

there's nothing wrong with large cap tech i'm underweight large cap tech but still invested in it the reason i'm underweight is a couple of things one, the multiple still if you look at the xlk is 25 times. the best you're going to get from share price appreciation is earnings per share growth which is 8 to 12%. i think you can do better outside of tech. bryn and brenda are talking about this, frank, as the market recovers people go back to what they know which is technology. hey, i buy apple, i buy amazon, how wrong could i be and the etfs are heavily weighted in technology when you look at history, usually the sector that does the best in the preceding bull market is not the sector that does the best in the next bull market it was true for technology and then true for financials it's probably new enough simply because of the different in multiples on the xlk and the xlf. >> joe, i know you like to toot your horn but you pinged us when oil prices were going up and the nasdaq took a move to the downside today oil prices are down 2% and the nasdaq popping and taking some leadership. so

tech stocks, jd.com.lier, nettie's and activision lizard having scrapped the one of war craft smartphone game and development for more than three years. our market coverage continues as we look ahead to the start of trading in hong kong, shanghai and shenzhen. standby for bloomberg markets china open. this is bloomberg. ♪ millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network, with the carrier rated #1 in customer satisfaction. that's a whole lot of happy campers out there. and it's never too late to join them. get unlimited data with 5g included for just $30 a line per month when you get 4 lines. switch to xfinity mobile today.

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we have seen the lows around tech.athleen: wise, experienced traders and investors say you cannot pick the bottom. >> you would like tech, i wonder what you might say about chips, what part of tech looks good to you? >> are like the general in terms of tech, google, microsoft, amazon. these companies can absorb inflation. the outlook is rosy and more positive. i also think that the big tech has so many big levels in secular trends. you have subscription, data warehousing, data centers, e-commerce, you have products for apple, amazon that is going to be an ad company. as we come out of the bear market pullbacks and stock start to recover and generate revenue, they are on sale and will off of their eyes. -- highs. people are buying those stocks, far higher than they are not and they are too tepid about getting in now. it is wise to get into those trends. i know it has been a terrible week for semiconductors, the report that has come out from the companies, i think they are part of a future secular growth trend in innovat

i watering profits. tech giants. apple, for example, had so much extra money that it bought its own shares with more than $90000000000.00. that's almost as much as kenya's annual g d p. now though, as the world opens up, people are relying less on technology to shop, work and play up last it status as the most valuable company in the world. ellie, the sheer shares of technology firms like shopping fi, and netflix have been in free fall in the past few months. plummeting as much as 70 percent tech companies like amazon and apple recorder, better than expected results for the 2nd quarter earnings. but many firms are skating by hiring, and slowing down spending plans. while to discuss all that on joiner by daniel i's from new york. daniel is the managing director and senior equity research analyst. when bush security is good to have you with us and counting the cost, i mean, in general terms, daniel, what do you make a sort of the tech giant sales and profits in this quarter? i think overall some better than feared, i t

that's decision tech. only from fidelity. at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. >>> i'm carl quintanilla with jon fortt and deirdre bosa on the east coast, checking in on things half past the hour, more on software in a moment. but the dow swirling around, a mostly negative range, session low down about 300, currently down 187 investors are trying to find a bottom for tech having a hard time as the nasdaq continues to fall after jackson hole on friday mack santoli has been watching, we were told look out for withering liquidity next few weeks. >> that's part of the story, carl, both last week and this week and the general sense out there that if the fed chair does not want investors to get too comfortable about the outlook, then they're going to listen eventually, i do think there's a legitimate debate that's happening last

we have hired across all departments, engineering, marketing, hardware, field techs. can basically tell ziprecruiter who you need, when you need it, and they deliver. - [narrator] ziprecruiter. rated the number one hiring site. try it for free at ziprecruiter.com try it for free at ziprecruiter.com >>> let's get a gut check on yet another online retailer falling this morning posh mark slumping double digits after weaker than expected guidance sales came in better than expected for the quarter today's fall down nearly 12%, just adding to huge losses already in the year. posh mark is the outperformer, though only down 35% versus the realreal and stitch fix down 60% or more. looking like sales season for investors. is this a sector that is going to come back in the fall as consumers maybe look for better deals when they're shopping? be part of the retail ecosystem, the resale ecosystem >> i was just talking to the runway ceo and she said i think fashion is recession proof, and especially because so many weddings were delayed and people are going to weddings and they need

a lot of people think that, you know, this continuing rally hinges on tech and forget about it if tech starts to roll, if it gets exhausted, what will carry the market any higher than its already come to? >> well, scott, we talk a lot about the faang, the major mega-cap names and there are other tech names that are growing earnings out there that, for instance, fortinet and adobe and cdw, there are companies that have growing earnings on this environment that you can focus on and so we're seeing that those tech companies can take a leadership. obviously, we talked about health care and energy and materials and we are also seeing these smaller than the mega-caps technology companies can take a lead now in this market. >> let's do this, let's take a quick break. up next, we have a lot of committee moves. stay with us for the new buys and sells and kevin o'leary has many of osthe. we'll go through them next - common percy! - yeah let's go! on a trip. book with priceline. you save more, so you can “woooo” more. - wooo. - wooo. wooooo!!!!! woohooooo!!!! w-o-o-o-o-o... yeah, feel the savings

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>> one story is the tech sector.s recovered somewhat but in the period softbank is reporting on, the nasdaq 100 was down. there is a related but different story which is about chinese tech. you are more of a chinese expert than i am but a lot of companies in softbank's portfolio are chinese tech companies. even though the clampdown in china has relented somewhat there are concerns that china has permanently shifted and some of the growth we have seen in some of these firms won't happen again. tom: what other insights did we glean from these earnings around the private sector valuations? >> that is the juicy question. the stars -- where some of these former stars are now. look at bytedance, the parent company of tiktok down 25%. what we found in some of this reporting is an unrelenting look at the valuation of these companies and cutting them down to size. tom: where does that leave him and what he is looking at? >> he does not have a lot of great options. one of the strategies will probably have to be wait. the golde

you like tech. tech is showing leadership in this final hour of trade through the whole session.asdaq has been powering ahead. aspen technologies is one of these names. what must tech names that make it past your bar have to have? >> i think first of all we're really focusing on tech names that serve business. we don't really want customer, or consumer exposure. that is not probably going to do as well as something that is serving businesses. we want businesses with high switching costs. aspen tech, they help refinery run its business. you're not ripping that out of your refinery. you're not ripping that out of your chemical company. so it is mission critical software and it has high levels of returning revenue. these durable businesses have strong earnings. that is the type of tech we like. liz: as we look in markets, is this a bear market rally or start after bull or something else? >> hard to say, right? i think what is the real question mark is exactly how is the consumer going to fare? if we have a harder landing we expect and unemployment starts to really rocket it could be

our ed tech series starts next.s is bloomberg. ♪ ♪ emily: welcome back to "bloomberg technology." i'm emily chang in san francisco. it is the third back-to-school season since the pandemic bennett how we if,, work and learn--since the pandemic upended how we live, work, and learn. the number of students applying to u.s. colleges is in decline. enrollment is 20% less than it was in 2016. president biden's student loan relief is one example of the government's response to high tuition costs and growing guide. companies are facing college shortages, creating more demand for affordable education. the scoping companies --that is helping companies that puts students with credentials forward. here to discuss the future of education technology, jeff, thank you so much for joining us. a lot unpack here. tell us about the trends you are seeing and what that signals about changes in higher education and learning in the last two and half years. >> yes, the world has been changing rapidly, emily, and what we have seen is pre-pan

tech sector specialist at jeffries. i think tech is acting good, jared. i don't know what that informs us about rates. i think it plays into the idea that they don't need to stay where they are. but technically is this going back to let people in 20% below where it is right now? i don't know. do you think the truck gets backed up to where you can load up? >> so, to your point, joe, the viciousness of the rally is remarkable. the nasdaq is up 15%. we are talking in the last two weeks. semis are leading up 25% in that time period. software measured by the igb up 17% in that time period. a lot of this is a function of -- you were hitting it on the head in terms of peak inflation. look what happened to the 10 year yield crashing from 3 1/2 percent to almost 2 1/2 percent yesterday. this group is the most sensitive with respect to the interest rate environment. earnings have been better than any of us thought in terms of resiliency from the tech generals, amazon, google, apple. i can't emphasize enough in terms of positioning, positioning, positioning. tech is

we rarely see this from a chinese tech giant.y are seeing a decline of around 8%. .8% on the year. that is not as much as other analysts who are seeing around a 2% drop. a lot of headwind space in this company. you have those ongoing covid zero policies. the impact that has on consumption and we already discussed this government crackdown on the sector but a focus on this will be what we are here for, whether we will see any recovery in consumption there. if you just change it now, you can see that analysts have been quite slow to react to the headwinds that are facing this company. we are seeing the price target from analysts and the actual price in trading. >> we are seeing any kind of -- are we seeing any kind of reaction in oil markets? >> we are seeing brent crude, online. we did see that 3% drop in the previous session. we will have brent crude and about two hours from now. we have that opec plus meeting. but as well, the u.s. gasoline report showing the stockpiles there are growing. that is something that led to the declin

sector >> semiconductors in general are sort of beta, right, in cyclicality within tech and they'remany ways sort of the first to move on the upside and they do it with vigor and my own hunch is that semis are going to continue to be weak and that they are likely to inform the overall tech sector. nvidia is just one of the big ones >> the nasdaq 100 is up and some of the numbers are hugely and gaudy returns over the last 13 years or so, 39%, 32%, 36, 19 -- even though the nasdaq 100 is up off its lows significantly, it is still down for the year do you expect it to end the year negative for the first time since, what was it 2008 >> it would break the 13-year run. i would say it is inevitable let's do 99. i would say the odds of it beaten down are 99% and 1% for the chance that it somehow comes to life. >> stephanie, i want to give you the last word and carter looks at things from a technical perspective and points out a good moment on charts here and anything you want to add as we talk specifically into tech going into what we may are hearing from jackson hole. >> yeah. i think tech

welcome to tech check. i'm deirdre bosa ahead of a big interview you do not want to miss with ceo bob chapek stock is up after those results, and don't forgot about the editor in chief to break down all of today's biggest movers, all moving sharply talking about the american consumer. inflation data coming in the nasdaq up 0.8% you. julia, how can we not start with disney we've thought about streaming for so long as a technology play growth at any cost feels more like a media play. you've got to have your eye on profitability. that's certainly what we saw with the price hikes from disney and a lot of the commentary there. >> that's right. disney on the top line adding more subscribers than expected they did loose more than anticipated when it came to the direct to consumer business. the way they're addressing that, they're raising prices and this all fits in to the new profitability. morgan stanley said this is phase two, bringing the streaming into the profitable era, and i think we're hearing this from a

apple's new to this business it's a hard tech stock to build. i would guess it would take them two to three years to get into this business if they stick with it but i think they'll be forced to because i think ios developers are abandoning them unless they fix this >> so no competing with google in the short-term. thank you. >>> coming up, shares of elf beauty up more than 6%, raising a full year outlook. that stock's up 47% in the past three months the ceo's going to join us live with how he's managed higher gas prices, labor and supply chain challenges, and more than. chairs of papa john's meanwhile moving in the opposite direction. down more than 3% on an earnings miss the ceo mentioning the return to travel is one of the headwinds going to ask him about that. >>> as we head to break, let's get a check on the markets the dow down just over 100 points s&p, about flat. nasdaq slightly in the green the exchange is back after this. ♪ in any business, you ride the line between numbers and people. what's right for the business and what's best for

"tech check" is back in a moment >>> tech is under performing the broader markets to end the week theaq on pace for losses this week of about 2.5%. that would break that four-week winning streak, that pretty big rally we've seen in a lot of the growth names, too, over the last six to eight weeks. >> yeah, being unwound a little bit today. >>> meantime, what happens when you take two former bankers and channel their experiences into a television series? enter hbo's finance hit "industry" set in london and centered around the perspective of young professionals navigating the high stakes world of finance for this episode of "binge" we chatted with the industry cocreators and best friends as the show enters its sophomore season we talked about their transition from banking to hollywood and the future of streaming and content budgets. >> i'm curious to know, your overall view of the streaming environment and the content environment. what ambitions do you have going forward? where do you see sort of the landscape being the richest right now given that we're in this period of uncertainty on

growth tech stocks are down much more than 20%.e are hearing from allocators of capital to investors that numbers are coming in down 4% to 6%. that means that investors have not taken their medicine and there's going to be more pain in the market in the form of layoffs and in the form of something like 20% of all venture-backed companies are not going to survive. we saw this in 2000, 2001, 2002. what happens when the market pulls back? investors are more careful with allocation of capital. we are seeing also in company creation. investors are going to have to rationalize your company. emily: are you saying you think this is going to be as bad as the dot-com crash? >> this is a prolonged period. what's painful for tech investors and growth investors generally is prolonged market malaise, prolonged volatility, because it is a lot easier to come in and invest behind in a market that is a little more stable. when the pace slows, you have to rationalize where you put capital. you could see more than 20% of companies go out of business.

there were very few tech funds.ere are a lot more generalist vc's interested in tech because they see the large market size. it is exciting to see that more investors are interested in the space. i saw that jason horowitz is investing in core american infrastructure like health care and education. these signals are very important to the space. it is good to see more capital go into it. >> you're watching higher education and corporate learning. what is happening that we are not necessarily talking about enough? >> in corporate learning, i think although we are in a downturned market, the job market is still very tight so businesses, corporations are looking to upscale their own workers. we are investing in companies that are supporting businesses to provide career progression for their employees. that is a really exciting space. in higher end, there is a lot of legacy software that is running the backend of colleges today. we are investing in innovation in that space. >> there is a huge debate happening now about wh

all of a sudden tech is out of favor.saw this in 2000, tech wreck, and then rotated into financials and health care. all of a sudden we saw tech being the thing to lead us out of that downturn in 2021 coming into this year that tech trade, folks aren't willing to let that go just yet. the four mega cap tech companies that brought us down and back out through july are also the same companies leading this rally today and late last week that started -- whoever started to go backwards. so i think it's interesting that thematically people wanted to call the end of the tech trade and i think it's still a little too soon i think tech is still the play, especially mega cap tech, and i think that's what's going to drive this market. >> apple's outperformance has been -- i wondering if you think it's a reassurance or a red flag >> i think apple has become a little bit of an anomaly it's become its own asset class. the reason is because the iphone has proven itself now as more of a utility or durable good. whooup when you think abou

we can't say things like buy tech you need to say which tech names do you want to own you can't say buyemis. you need to say, which semis do you want to own. this is the market we're in where i think fundamental analysis is going to win the day. >> degas, are you swinging for the decks or going for the single like jenny? >> the way i look at it, i'm a quantitative manager so i blend the fundamental and the technical in my process. so as jenny and joe were talking about this, i could relate to both aspects of the discussion what i'm finding at this point in the market, you want to stay true to your discipline. we focus on reasonable valuation, positive or stable expectations, profitability and a good corporate citizen so with this type of market, you know, what we can do though is that you could be tactical you could do some tactical aloe indicaaloe allocations to the market. jenny made the company we talk about the technology companies but there's companies throughout every sector that can meet those requirements that i just got through talking about, that blends the fundamental and the

tech was up more broadly. the big breaking news aftermarket in earnings season is disney. so fascinating because it was kind of a mixed basket of results. the main takeaway, the company adding more. we got a .5% inflation in the month of july. you got disney raising prices. they are liking something. >> i want to dig into the disney results. a mixed bag, adding 14.5 million. the bulk of those came from india, others from other countries. >> i don't look at it as a mixed bag at all. it is blowout results. you are looking at netflix struggling to add subscribers with tremendous competition in the streaming business. disney is still growing tremendously. not only disney plus but hulu as well. when you look at this streaming business, although it is losing a lot of money, the future looks very bright for that. there are over $2 billion of profits and 5 billion of it just from consumer products. the operating results in this company have improved dramatically. >> a broad-based recovery. let's take a quick listen to some of what he had to say. >> significant subscriber growth in

, tech tickle tech. thank you for thought the u. s. federal reserve hiked interest rates by 75 basis points in june and july higher interest rates mean higher yields. but this comes at the expense of emerging markets. countries like argentina, egypt, ghana, pakistan, and turkey are more than ever at risk of going broke. according to the institute of international finance, as globe investors withdrew nearly $10000000000.00 from the so called emerging economy's $9000000000.00 from their bond markets, and $1000000000.00 from their stock market. the funds mostly went to the united states because of the high interest rates. and higher yields, particularly since the us dollar is regarded a safe haven, especially in the increased uncertainty in the global economy. not earlier i spoke to roger biz was asia pacific chief economist at s and p global market intelligence . and i asked him what the real life consequences for these emerging economies are when interest rates in the u. s. and other industrialized nation

i think the thing that sticks out to me is the two-way traffic on some of the biggest tech names andof the beaten-up ones that's the thematic link stephanie, you're saying it's skeptical on some and not on others what were the good buys then and what were the ones you want to stay away from >> no, look, think if you add in technology and com service together, it's 35% of the s&p 500 so i'm underweight i've been underweight maybe 20%. i'm still 20% of my portfolio so i think can you pick and choose in terms of what you want to oh. you have to have a barbell that's at least my strategy, kind of some value, some growth so i like ibm, for example, right -- on the value side and broadcom is a fairly new position because it, too, dropped and i thought it was pretty interesting at the valuation it was trading at. i owned ford and didn't have a great quarter, i bought more there. accenture, they have a great job delivering on top line, bottom line, every day they are making acquisitions to grow their business and that's a hidden cloud play with a hidden relationship with salesforce.com i don

the rally continues to fade with tech leading the declines. nasdaq's down 2% so should you bail on the growth trade or stick with it two banks out with two very different views on what's next we will debate and ask our market strategist how he's positioning now. plus the latest meme stock moves banking a billion from the crypto craze and will dragons or hobbits win the streaming wars we will have the story and the stock impact on today's biggest talkers. and palo alto, macy and is zoom video on deck with results after the bell we're going to get you set up for all three in earnings exchange but we begin with the markets and dom chu with the numbers >> please no spoilers because i have not watched the first episode of "house of dragons" yet. i'm just keeping a close eye on it but anyway, to jon's point, this is tilting toward the lower end of the range today it's been a decidedly down day for pretty much all of it so far. we're down 505 points, the dow industrials. 33,2 hupp the last trade there 4156 for the s&p 500 down 72 points 3/4% decline