i5 high valuation levels should not be a surrise. , high valuation levels should not be asurrise. , . americans _ a surprise. is the concerns americans don't _ a surprise. is the concerns americans don't have - a surprise. is the concerns americans don't have the | a surprise. is the concerns - americans don't have the buffers they used to, pandemic savings, those have been exhausted and therefore the economy is more dependent on income from labour? absolutely. as you recall, not that long ago economists estimated $2 trillion of excess savings on consumer balance sheets and most argue that has gone to zero and when you have companies starting to see the price increases they are putting and being met with resistance, they cut back on the price increases and have to worry about their income statement and they start cutting costs and labour is one place to do it. the word recession had been repealed from vocabulary is a little too soon. . , ~ , .,, too soon. earlier this week people talked about _ too soon. earlier this week people talked about the _ too soon. earlier this week people ta

but i think it is more to do with valuations.- to do with valuations.first half _ to do with valuations. in the first half of _ to do with valuations. in the first half of the _ to do with valuations. in the first half of the year, - to do with valuations. in the first half of the year, we - to do with valuations. in the | first half of the year, we saw tech stocks going up on the back of expectations from al on the boot we were anticipating but in the second quarter earnings do you think there is a worry ai is not getting the kind of return of investment? to be fair, i don't think we're at that stage where investments and ai are actually generating and ai are actually generating a lot of money today. think we need to take a medium to longer term approach. having said that, we had some anecdotal evidence during the results where companies are either seeing a increase in cloud revenues growth. in fact we see the big tech cloud growth accelerating, but investments would continue and we would rather see this as a long—term opportunity and not something tha

it _ on high valuations. let's talk about nvidia's share price. it was - on high valuations.'s talk about nvidia's share price. it was one - on high valuations. let's talk about nvidia's share price. it was one of. nvidia's share price. it was one of the hottest stocks. did things become overpriced and now this is just people retreating or is it a sign there is more danger in the economy than people had previously anticipated? i economy than people had previously antici ated? ~ ., ., anticipated? i think we have to oint out anticipated? i think we have to point out that _ anticipated? i think we have to point out that data _ anticipated? i think we have to point out that data has - anticipated? i think we have to point out that data has been i anticipated? i think we have to - point out that data has been coming in the week for about two months, and the narrative in the markets has been shifting. initially we were thinking about inflation as concern. that has tempered. now the narrative is moving towards the potential to monster man destruction and economic weakness. if you l

>> i live in the world of stretched valuations in san francisco. uber, i've been through many loss-making companies, it's always that moonshot, the future promise. look, uber is now profitable. openai has a long way to go. these are ridiculous, i've seen lots of ridiculous valuations. >> back in her day. >> for less of -- >> back in your day. >> been there forever. >> up ne, xtyour final trades. leo! [whistling] ever since we introduced him to the farmer's dog, it's changed his quality of life. leo's number 2's are really getting better. better poo, better you! that's a good boy, leo! ♪ oh in a harbor, there was a port ♪ ♪ the busiest port, that you ever did see ♪ ♪ now the boats move the goods ♪ ♪ good jobs for the people ♪ ♪ the people build the city ♪ ♪ and the city comes to life ♪ ♪ and the life has a rhythm ♪ ♪ and rhythm has a home... ♪ jpmorganchase invests in infrastructure to help create more jobs here at home. ♪ make the green grass grow all around all around ♪ ♪ make the green grass grow all around ♪ ♪♪ >>> tim, kick off the final trades

you have to be a bit thoughtful of starting valuations.ve seen that creep up in the recent month or two. underlining that are businesses that are heavily tied into the domestic economy. >> as for japan? >> we just think there's a huge change in government happening in the market space which gets the lack of focus it should have because we are focused on boj and carry trade and how it has unwound. the growth oriented businesses in japan and shifting to be more shareholder friendly can be a long-term driver of income. >> luke, i appreciate you coming on today. thank you for the conversation. >> thanks, dan. >> that is luke barrs at goldman sachs with me here in london. >>> when we come back, the democratic national convention kicking off in chicago. it will be another key test for vice president kamala harris. we look at what to expect on the other side of the break. stay with us. step one be terrible. step two be slightly less terrible. ugh. ah! come on. step three. que gusto conocerte por fin discover that practice doesn't make perfect. pr

>> you know, valuations, the most recent pull back in tech stocks, i will say the valuations look a lotasonable. even looking specifically on alphabet, for example, we're actually trading below 5 and be 10-year averages in its multiples. on an absolute level having 20 times, 24 times earnings seems high but historically alphabet has traded higher than those levels. with the earnings growth we're expecting, 30%, in the mid teens, following years, i think it justifies the higher valuations. >> see you soon. >> thanks. that's king lip. >>> up next, we track the biggest movers into the close. >> a top nike rival is making gains in the athletic footwear market. we'll reveal which name after this short break. - [narrator] wherever people go, whatever they do, food will be there, and so will we. we are lineage, the guardians, connectors, movers, and shepherds of the world's food supply chain. we are delivering innovative solutions to build stronger infrastructure and move food more efficiently and sustainably because we believe food should get to you anywhere in the world exactly the way it wa

is there a significant rationale besides valuation, and how do investors feel about it? mars, a deal for kellanova would help its expand its geographic footprint, but also expand beyond its bread and butter, which is candy bars. they make the mars bar. they make snickers. kell anova is all about the snacks, so this would help them expand into the lucrative area, especially always chocolate sales have come down. sonali: michelle davis, of course, when this m&a market is just coming back, and deal talks in a volatile market nonetheless. coming up, some people are betting on an emergency rate cut from the federal reserve, but there are others who say no way. we'll discuss that next. ♪ dangerous ladders. gutter muck. yuck. no wonder you hate cleaning your gutters. good thing there's leaffilter. our patented filter technology keeps leaves and debris out of your gutters forever. guaranteed. call 833- leaffilter to get started. and get the permanent gutter solution that ends clogs for good. they took the time to answer all of our questions. they really put us at ease. end clogg

is just okay good enough from where the stocks are trading from a valuation standpoint? >> probably not. listen, i'm not going to disagree. rick is usually right, and he's probably right there, but at the end of the day, the demand for these chips, obviously there's a transition issue with blackwell and go get dan ives if you want the details, but there's an issue with the transition, and i believe that's a couple quarters forward. from a broad market standpoint, there are other things going on post what happened with japan, some of the hotel stocks like expedia, booking, gm, ford, some of the card companies like american express, all the warehouse companies, walmart, target, costco. there's a lot going on in the market that's not just mega cap tech. from a waiting standpoint, obviously these are crucial names, obviously. for those of us who don't traffic in cap tech, there's a lot of other things you can do. >> you're making a case for the broadening. >> sure. mind you, i was making a case for the broadening before the broadening happened. >> yes, in fairness, you have.

or recognise better valuation or recognise better valuation.obviously asia —based investors understand the company better, they understand china better. they are less worried about the environment in china in general again from a political and trade perspective as opposed to the economy certainly the economy in china is not great. but to those investors buying in hong kong, not enough buying power, not enough ability to change the valuation relative to this big anchor, which is the adr positions. so upgrading it to a dual primary gives it the ability forfirst it to a dual primary gives it the ability for first of all for money to come in from the mainland through the connects and various channels like that, and various channels like that, and then the hong kong traded stock can start influencing the us adrs rather than vice versa. were main challenges they are facing? it's recently been seeing a hit in profits. even thou:h seeing a hit in profits. even though it — seeing a hit in profits. even though it is _ seeing a hit in profits. even though

some concerns about valuation. we did see a dramatic rebound. we also had the megacap results we saw out last month. all the major nvidia customers like microsoft, amazon, alphabet, meta, they reiterated they are going to continue spending on this. i think those two things people looking for a dip to buy. that spending tailwind. the confluence of those two things spurred investors to buy the dip on nvidia. you have seen the stock jump up about 30% off the low earlier this month. caroline: it's interesting chip makers have been what have dictated where the nasdaq 100 is gone. call it the poor nan's nvidia and people have been buying into that. texas instruments, here's a company that's curtailing some of its capital expenditure. what do you mike of t.i. today? ryan: they are maybe pulling back in their cap x. there is optimism that will lead to some improved free cash flow for them. a different kind of player. they are not as active in a.i. certainly not to the extent the major players are. people are looking at them as a way to improve their fre

the company is seeking a valuation.d plans and outlook for the company. >> what people appreciate most about klarna is two years ago -- we have increased revenue by 50%. we reduce cost by 30%. we are profitable. those raise eyebrows with investors. we have committed to continue shrinking the company. we have gone to 3500 in the last year and we are committed to continuing on the path. >> you have been an early mover with ai. pretty early on. what has been one of the surprising things that stood out to you? >> i think it is, to me, i was pulled into the hype a year ago. self driving cars, we used to read about them in the press and you would ask, where are they? in the year, the whole thing will have dramatically changed. you almost have the opposite. it is working. it will take more time before -- we are super excited about what is coming up. >> before we let you go, that is the expectation. what does europe and the u.k. need to do? is there anything they can do to win this listing? >> there has been so much discussion

apple never had the valuation in balance that an nvidia has. i always thought that was sort of a top. i was a little bit ahead on that in thinking, because they blew out a couple of quarters right after it, but i'm also thinking it still sort of sticks out in my head as a red flag, why are you buying back stock? >> when you're growing and your stock is appreciating the way it's been appreciating. all right, let's move on with more on nvidia, and bring in susquehanna's chris roland. let me get your initial impressions of the numbers that we've seen, of the guidance that we've heard, of the discussion that you've just been listening to, and then i'll follow up with a question. >> yeah, i think the group nailed it. we have been used to big beats or, at least 1 1/2 to 2 billion on results and guide, and this was a little shy of that. so, that is the market reaction here. i think the blackwell delays were very well-known. i don't think there's nothing -- there's nothing there out of the ordinary, and -- >> not worrisome there? >> no. and, in fact, i

valuation is easy to do.been about valuation for this stock for the last two to three years, and i've owned it. i've traded it a bit you've had a lot of luck if you've traded the stock. you've had 30% moves routinely up and down, and, in fact, it's up about 30% off that january 24th low i think you're staying here and i think, again, they've shown that there's less pressure on this company from the regulator in china, and that truly the operational side of the business is getting better. i like it. >> all right certainly, broadening out, maybe less event driven in the future, thank you very much, coming up, uranium stock soaring as the energy trade lights up what lies ahead for this emerging space, next. >>> tech is back in focus and nvidia is gearing up to shake up the street with next week's biggest earnings report, what to expect from those results right after this tony, its gone. no. how am i going to do this? welcome to the mdy mid-cap cup, presented by state street global advisors. today's challenge is

there is an ability to speak to the valuate creates.em of how you manage your sport rights. caroline: add in the nba rights moving to amazon. paint a picture of what the next spring season, what sports looks like i'm a how we are going to best interact with it, do you think, via streaming? paul: i think right now what we saw, the nba just came to market. what we saw clearly was that amazon came in and understood that there was a place for them to play in this, and ultimately streaming rights will go to amazon in addition to being shared across a number of other services. what this ultimately means is, there is strong value in sports. it delivers impact to both advertising and businesses being managed. the challenge is that for consumers it is going to remain a very difficult landscape to navigate. while the package looked to bring together some of those rights and offer a more efficient way to be able to consume a certain amount of sports rights, it does not solve the ultimate problem of having to navigate across multiple services, seek

you can't run from the market based on valuations alone.hings, support for the stock market. the economic backdrop you talked about, at least hinted. strong earnings growth? >> i really do want to hit on this. i think it is important to note while earnings expectations are declining in the back half of the year, for the hyperscalers, for the mega technology companies, i think we also need to watch and notice, really take note of the product activity productivity increases the layoffs they're doing and we could see some of these beats happen. nvidia earnings are scheduled to fall off of a cliff but when we think about where they are in terms of demand i don't think we can have them fall after a cliff in 2026. charles: is difference between growth rate and earnings. a company growing 100% a year won't always grow one hundred% but if it is growing 20%. let's talk about some of the things you do like, start with nvidia. >> yeah. charles: i'm going back to the heat map for one second. here we have nvidia. most wall street purists would never buy

they have the valuation that gives you support. i think this could be a clearout moment for lowe's, expecting a minus 5% comp. if the margins are okay, it may be all right. the market needs to worry how profitable companies are in addition to everything else and that's part of where the fear is. >> i think so, and it's amazing, go to our guests, if you bring the vix chart back up. the vix hit 80. it's back under 20. it looks like the skyline of dubai, this huge spike and it comes back down. what a week it was. look at that. am i wrong? if you're on the radio, too bad. your first guest sees a shift in the market, as mega cap growth starts to slow a little bit so let's bring a new voice into this conversation, that is sound income strategies co-cio eric bayrich joins us now, you heard a lot. patiently listening and waiting, want to comment on what you heard? what's on top of your radar? what's the most important thing for you right now? >> well, i certainly don't speak as quickly as you all do, but i'll try to cover some of the highl

. $23 trillion of cash on the sidelines waiting for better valu valuations.ou need the fed to cut and you need a recession. we don't see a recession. >> thank you both for being here. i appreciate it. >> thank you, frank. >> for more on the market, head to cnbc pro for insights and analysis. >>> we have more to come on "worldwide exchange," including warren buffett raising cash and cutting stake in one of the top equity holdings. we will speak to a long-time buffett watcher coming up. >>> and later, oil takes a hit as recession fears overtake rising mideast tensions. a very busy hour when "worldwide exchange" returns. stay with us. lyles will need a good leg here. can he deliver? here comes the pass! look at this kid! coming in tight on the line. team usa, what a run! it's gold for team usa. noah lyles with another gold medal. in case there was any doubt, who was the breakout star of these world championships. >>> welcome back to "worldwide exchange." look at futures in the red across the board. the s&p down 2.5%. the dow down 1.7%. the nasdaq is down 750 poi

>> i think it was mostly a risk management valuation decision. really, it was quite shocking, partly because, you know, he had pared some of the holding in the first quarter. we heard about that at the annual meeting. at the talked in glowing temples about apple, saying it was a great company, better than almost all other companies, so it was a bit of a shock. but i kind of -- that apple went up about 23% in the second quarter, and it was mostly -- at least in my view, based on expectations that ai and putting ai in the new phones would drive a stronger replacement cycle. my spirkz were make things were ahead of themselves. you really have to sell into strength and not necessarily weakness. >> sure. >> i think it's worth noting, he still owns a lot of apple stock. >> we're showing that chart that shows a takeoff pattern from may through june. we know the position was exited sometime before the end of june. perhaps le talked at the annual meeting and decided if it's going to rally like this, there's a lot to off-load. i guess we'll have to let the

>> we are waiting for an ipo to get the premium valuation.in those market conditions, we could not get that premium valuation. we will assess market conditions , but the idea is to get that premium valuation which we think it deserves. >> based on your outlook that you have just shared, there is something beyond prices. demand is strong. there are the u.s. elections that everyone is waiting to see. are you expecting this ipo to be in the first quarter in the next calendar year? >> i don't want to give a timeline, but it would be safe to say that any moves we make will be next year, yes. >> any next attempt to make will be next year? >> yes. >> ok. can i get an update on your decarbonization plan? you are already up about 100 megawatts. how much do you need to add to have 30% of your renewable energy requirements turn green by 2030? >> i think we will be around 300 megawatts of renewable power, roughly 12% to 14% of our current power consumption by march 21, 2025, so we need to get another couple of hundred megawatts, which that we have the co

we look at the valuation, 29 times forward earnings. mind, the possibility of growth is that worth paying up for? >> yes, i actually think that is true. that is a really important point you are making. they are actually shifting the business mod model. the contribution of ecommerce in walmart and target is playing a huge role in that margin expansion. i think that is understated and not looked at by the street. i do think it's an opportunity and it says these two companies are probably taking market share from amazon. amazon did not talk about that in the earnings report. it caught my eye to see the business and impact on margins. >> also that bulk business with sam's club and target doesn't have. we're almost out of time. the last point you want to make why walmart is a better buy than target? >> i actually think target is a little bit of a better buy. i think they are both good buys. i think consumer spending is slowing and it will stall out in the third quarter. i think these are both going to be winners at this point in time. as you

what about valuation, top of the program today, i read the list of how much valuations have come in, back from july, you know, double-digit percentage point declines. >> no question, values are stretched. market's priced for 15% earnings growth year over year, and that's the reason why we're seeing all this volatility, which should continue throughout the year. >> you mean valuations are still stretched in these stocks? >> yeah. we look at the cash flow and the growth of the cash flow, but multiple are stretched. there's still a lot of pockets of opportunity in the market now. >> where is that? >> the thesis is on utilities is we're underpowered in this country. we own two names, nextera and vistra. we've owned it since 2021. 2.2 billion, returning it to shareholders. keep in mind our utilities are in two states that have immigration -- population immigration, florida and texas. >> when you are highlighting utilities, that screams defensive. is that what you think the best strategy is right now, to be defensive, if you're going to buy anything, buy those types of stocks? >> when you

i look at the valuation.een in the last decade relative to its 12-month forward ebitda so i think this is a great opportunity. underperformed the nasdaq significantly over the last month. i'd be buying weakness. >> thanks very much for that trade. coming up on the show, a crypto comeback. why our next guest is looking at bitcoin miners for a major opportunity and how the ai surge is helping fuel that optimism. plus, wall street picking favorites in the restaurant space. why names like shake shack, sweetgreen and dutch bs. arore in the news and why they're loving mcdonald's. "fast money" is back in two. what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope for when life tosses lemons your way. cirkul, available at walmart and drinkcirkul.com. [ music ] >> before umgc, i was a pretty good teacher, but i needed my students to see that someone like them can make it and actually graduate, and do things better. that's why i decided

fast, too much, and now valuations are really stretched. that's sort of rick reiter's perspective, again, why he says the market's full and all of the good news like cuts, it's already in, are they wrong >> so they're not wrong. i just think that you have more of a two-way trade here than you did coming into the end of july, meaning there are plenty of people who are out there like adam who are simply more pessimistic on where this is going, and because of that you don't have everybody on one side of the boat. it's just a better market what we've learned over the last years, if you buy down 7%, 8%, it's never a bad decision 12 months later the speed with which it came down was tempting for a lot of investors to get in. now, i think if you go back in time, you know, september is never a great month, and i could see us retesting where we were a week ago on august 5th for data, whatever is going to happen there, but i don't think we really come out of this until the end of september, simply because we're in an election year it's really close,

>> yeah, at this valuation, everything really has to work well, right?e that this market is very large and has a lot of opportunity and is pretty meaningful, but the competition is not insubstantial, right? and the fact that we're having to resort to measures of people injecting themselves, it just tells you, a, how strong the demand is, and b, how desperate eli lilly is to maintain it and keep it and offset the compounders. i think longer term, you really have to -- we still don't completely understand what the long-term impacts are of people being on these glp-1s, and i think that's the part that's really tricky to be able to forecast and measure against. and when you have a valuation this high, that really makes it hard to feel confidence about those forecasts. >> julie, thank you. >>> we're going to go back to angelica now, with a statement on these drugs from the president, i understand, angelica. >> that's right, tyler. the white house putting out a statement talking about how they want to see drug prices across the board lower, and that the prices

i want to talk about valuations. the current set up in fixed income for you and the team? david: it's an incredible time in fixed income if you look at valuations. you can get almost a 2% real yield. you look at the tips market. you go back a couple of years, for a decade we averaged -1% real return in cash. that was the era of financial repression. bonds are providing more hedging value in portfolios as inflation comes down. you will see the countercyclical monetary policy. you should get more hedging value. it is not inconceivable in a severe growth downturned you get a high single-digit return in the bond portfolio. as the fed recalibrate's policy you will see curves normalize. that will drive money out of cash and into intermediate fixed income. we have seen more investors looking at the total return product. we should be looking at active, diversified and flexible strategies. if you look at bond indices, they are becoming concentrated. over 40% of the ag in treasuries. as deficits continue you will see the treas

tech valuations pulling back as stocks came down. they're still well above their historical averages. is this reset just the start of a further rerating or will coming rate cuts lead to a rebound across public and private markets? joining me now is r sean williams of value investment group. good to see you. >> good to see you. >> i know you're thinking a lot about the stocks given what's happened of late. tell me what's top of mind. >> it's a complex situation. how much has the world changed since i was last year like a month ago, but there are two camps out there and i fall a little bit on one side of the camp. there are people who think this thing is about an inevitable correction and the market his recently corrected and i was watching you earlier that says this is a run of the mill correction and you have that camp and then there is a whole different camp and this is a long-term shift in valuations. look, to me, i see this as a wolf biting ears situation where you have revenue growth and earnings and tech that create this enormou

valuations excessive, sure. we're down a little bit, granted at the lows, the s&p down 10% or so, equal weight half that. the economy to steph's point doing okay. ism services came out and grew, new orders went up, employment went up, we talked about how important that is. why are we talking about an intermeeting cut. >> the only reason people are bringing it up the point that rick reader makes. they don't need to cut because of current economic conditions. they need to cut because they're too restrictive going to cause more harm than necessary because they're going to be too late. >> if they are offsides on august 5th, then they were offsides on september -- i'm sorry four days ago whenever the meeting was. >> just take this into account. in 1997, they didn't raise rates because of the asian currency crisis. 1998 cut because of long-term capital. 2011, 2015, 2018. there were events that took place that kept them from doing something they planned to do or stopped raising rates an started cutting because an event

maybe the valuation is good enough, if you can see a path towards at least stable forward results. they report, i think, on august 30th here, so, to me, this is one that looks really interesting for a whole host of reasons, the balance sheet is in good shape. maybe it just needs a little bit of a change. find some great marketing person who has executed on consumer discretionary and you probably get a nice pop in the stock. >> tim, your choice? >> ah -- you know, at first i wanted it to be lyft, but i got back to snap. and snap, when you think about that user base and that engagement, we're talking about 425, 430 million active users, you've got an engaged user base. you have a lack of monetization. this is the story. it's gone on forever. and it seems like this management team has been unable to do it. they've certainly got a playbook that is supposed to be driving growth while staying some what cognizant of kind of where their core base is, and yet i think that's hurting margins. i think snap -- look at what's going on in the social media space. snap has been a disaster, and yet,

the quarter isn't a disaster, just the valuation that's a problem. >> it is profitability and valuationme pretty good partners in a.i., microsoft, nvidia, amazon, you would think, at a certain point, the stock winds up bouncy on this. it just hasn't seen that just yet because they're not getting the play or the a.i. nod just yet. >> got fundamentals, valuation, and they have missing out on that a.i. story stock that a lot of others in the tech space have benefited. >>> coming up, a deep dive into one activist investor with a very busy year so far. how elliott management is looking to shake up the likes of starbucks, southwest, and more. >>> plus, going long on longevity. inside the vc fund investing in the longest of timelines. the cofounders behind that one join us next. "fast money" is back in two. >>> missed a moment of "fast?" catch us any time on the go. follow the "fast money" podcast. we're back right after this. this is our future, ma. godaddy airo. creates a logo, website, even social posts... in minutes! -how? -a.i. (impressed) ay i like it! who wants to come see the future?!

or actually outgrowing the valuation.% eps growth. second quarter, the, peckation is 137%. we already know the street is around 75% to 80% for the third quarter. so, we know what's going on with the expectations. they're coming into a place where i think they can be more reasonable. i think people are looking for an opportunity to buy this stock. what happened both august 5th and some of the dynamics around market volatility are a function of how crowded this trade is. everybody's talked about the pent-up volatility here. but i think people are looking to buy the weakness here. unless there is something we're not going to get in, you know, in a day and a half at this point. it's something that the market is willing to live with. >> courtney, you're nodding. >> yeah, nvidia is not going anywhere. and the question is, are there earnings going to continue to axel rate as fast as they have? the bar does keep getting higher. that is the question. they're going to have other areas of the market that are accelerating. at what po

>> we're primarily looking at valuation growth opportunities.course, we care about the culture of businesses and whether we think the researchers, engineers, et cetera, have a productive work environment and we look at our own firm where we have a hybrid environment, where i think works out well for us. the same is probably true of the big-tech firms. a lot of the work people do is well executed at home, so it's not a particular concern for us. i know that's been raised in a couple of instances but not something we would be alarmed about. >> especially if you are among those use thing model. i can't imagine that there's something that nobody leaves the office. what is the most compelling thing about microsoft and why that one among the mag seven peer group? >> yeah. well, we see microsoft as sort of a heads you win, tails you lose when it comes to artificial intelligence. a lot of the artificial intelligence work is being done on the cloud and they're a big cloud provider. given the size of the company, talking about $3 trillion plus market cap,

we talk about valuations that continue to increase.s a scarcity value, no different than nvidia. when it comes to openai, nadella continue to win the race. >> so the greater picture for mega tech off the back of what nvidia delivers is what? >> bullish. this is i believe the start of tech rallies into year end. you've got the ai revolution coming to cupertino in terms of the iphone. this is the start. we believe -- it's not just about nasdaq, big cap tech, this is just the beginning of the next phase of the bull market, and i think it all starts tonight. >> okay, you're optimistic, it seems, from your notes, on salesforce, which also reports in overtime. you say you expect the start of an ai era from marc benioff and company. have they been spinning their wheels to this point? the stock has done nothing year-to-date. they've underperformed, obviously, the rest of tech in the nasdaq. what's been the problem and why are you optimistic now? >> it starts with our multiplier. for every dollar spent on a chip, we think $8 to $10 multiplier a

market doesn't care about valuation until it does. but you should absolutely -- listen, if you agree with him when he buys things and get e lated that he bought one of your stocks, you should be equally whatever, interested when he sells something. apple is obviously his biggest holding. but bank of america, i mean, again -- it's not to be mean or anything, we talk about this when it was a $44 stock, we said, there's zero reason this stock should not be trading at book value, which was $34. look what the low was today. that makes sense, as well. >> guy says this all the time. when passive goes active. so, berkshire went active, okay? and the top three holders now are vanguard, blackrock, and state street. all passive investors. they own 3 billion shares between the three of them. there's 15 billion shares outstanding. you can't get out of this. the fact that he got out of this, that's why the stock underperformed all spring while everything else was going crazy about generative a.i., and the last point, this product stinks. buffett mi

this was a monsoon lead valuation in india. to actual output, there could be a divergence between the outcome. september remains a crucial month where there can be a cash of sorts when it comes to rainfall. but so far, there has been [indiscernible] this should not bode well for agriculture output. but as i mentioned, we should be watching out for the month of september. not a big worry on risk that is emerging. is how the balance sheet of the households at the bottom of the pyramid is performing. remember significantly weak income growth coupled with high inflation the last few years has meant that bottom level consumption has been pretty sluggish compared to at the top of the. , or luxury consumption -- top of the pyramid, or luxury consumption. the bottom of the pyramid fairly high leveraged competitor the historical path. prolonged moderation inflation, a significant uptick in growth, or let's say acute [ indiscernible] the bottom level consumption in india will continue to remain one risk aspect to watch out for. paul: in

now we have valuation, economic valuation of environmental economics. the damage and damages that i will mention again, for example, air pollution, supposedly , diseases attributed to air pollution, death caused by air pollution, if these, as well as clean damage and waste management law , are among the important environmental issues of the country, which the new head of the organization environmental protection faces it. mohammad ali golkhah radio news agency mrs. dr. ansari, the head of the environmental protection organization and the honorable vice president are with us in the studio, mrs. dr. environmental organization, domestic challenges, the most important priorities of the environment in the external field, which priorities did you consider and what did you understand? to take care of them in the future? anyway, in the field of environment, we can say that the issue of environment is one of the most vital issues of our country at the moment and we have many environmental problems that sometimes turn into super challenges and the issue is that w

there are some questions around those valuations. thankfully we are over the hump, i would say.have seen this so—called magnificent seven report on they've all done pretty well. i'm hoping to see some stability coming into play around the tech stocks going forward, but the jitters we are seeing at the moment really do revolve around the potential for economic weakness going forward. that would impact the economy as a whole and really put pressure on the federal reserve to act. is this an inflection point, somewhat expected, or a blip? exporters take a back—seat to more domestic focused companies? this is the big question. we have seen the japanese yen underperforming for year upon year and for traders this has been a great one because it has been very consistent, but now things are turning. we are looking towards the bank of japan turning. we are looking towards the bank ofjapan and they are hiking rates at the time when central banks around the world are cutting interest rates. that reversal for the japanese yen all of a sudden sees these companies are benefiting from a weak ye

that stems from the valuation differences.e normalized to the pre-financial cites is levels, and the fed is about to start cutting interest rates. that makes fixed income relatively more attractive. equities on the index level look pretty expensive on a valuation basis. part of that is due to mag seven. i do believe that mag seven is likely to mark time for a while, to let the earnings catch up to valuation. and at the same time, the other part, the rest of the market looks more interesting. and indeed some of these dividend paying stocks, telecom equipment stocks, foreign exchange, you get pe below ten times. you get 5%, 6% yield. that combination is pretty attractive in a normal market. >> what kind of volatility do you think we're going to have between now and the election? was last week a -- a warmup act for what you could have based on polling as we get closer to election day? you referenced some of the more recent polls which suggest a much tighter race if not a different potential outcome than some were gaming out not a

the valuation is really low. they report shortly, i forget the date, but they've had same-store sales that have been a little bit anemic and we saw elf that really missed, and that traded poorly and ulta was down with that. and this is at the same time that se fphora is doing very we. very happy to have warren there. >> august 29th, after the bell, is when they report. i mean, the stock, this is a -- again, not that it matters, it was a $520 stock or so in february. fell on hard times. a lot of it on competition, slowdown in the consumer, but valuation is compelling. definitely here. and it is interesting. after they reported, there's a $500 price target on the stock. and they were sort of the outlier. i read it and it's interesting, maybe they're seeing the same things that maybe warren buffett is seeing. buying back stock, which is not insign insignificant. as much as i don't like chasing things into these announcements, this is one that makes a little bit of sense. >> what do you think of nike? >> you know, li

justify these valuations so some of the markets that look a little cheaper, for example korea had a really positive surprised with what we saw from samsung and chips being accepted by nvidia. that has been quite slams. that could have some potential to make a comeback, especially considering how cheap it's evaluations are. paul: we have been focusing a lot this week on the unwind of the yen carry trade. what is the future of the yuan carry trade? >> it is in line with what we see globally. locally it will be an unwind of carry trade's and the move towards safe havens until we see the fed really come through and say they will cut interest rates so unless we see a reduction on market volatility and see the fed start to move more towards easing of policy, the currency volatility will remain elevated and as long as that remains elevated is difficult to see investors jumping back into the carry trade just yet. paul: mary nicola their. it still to come we talk with adani's nephew, running the adani group energy business. more in our exclusive series taking you inside the indian conglomera

those are valuations that i think are a lot more interesting. >> record highs for lilly. another company that has also hit record highs today is netflix. this is all after the streaming giant closed its up front ad sales period with 150% increase in sales versus last year. netflix is advertising the president said in a note that the increase in sales was in line with expectations after the company brokered partnerships on a host of upcoming projects including squid games, wednesday. >> squid games? >> yes, squid games. >> and shae"happy gilmore 2" amt others, dan. >> we've been talking about the ad business for a long time and folks have said this was a huge about face, this he talked about never doing this sort of thing and, again, there's been a lot of like kind of volatility around the subscriber growth. if you go back and look at the last five years that's really what's driven the stock. we know they're going to stop giving that sort of data, but if you think about this ad-supported model and think about their crackdown on password sharing it's just pure margin. at a

expansion and we have to think about where we would get that valuation expansion.e think it will be in other parts of the market that didn't experience this big rise in valuations over the last 15 months. important to keep in mind. charles: they will have pretty easy comps when it comes to earnings growth over the next couple quarters. talk about the drive in this market, anticipation of a friendlier fed. when you say inflation moderated, more work to be done. you have the core cpi right here, what does that put you with respect to the fed. should they be holding off on a rate cut next month? >> we think jerome powell stated it loud and cleared friday on jackson hole summit. the time has come for jackson hole policy to ad just. we think for the september 18th meeting, first fed rate cut does enact we think that one should be followed by probably two or three more this year. we think both sides of the dual mandate are in focus of course. inflation while it hasn't gotten to 2%. it moderated pretty nicely 9% at a peak to 2.2%. more importantly the labor market the oth

>> you want a little tease into our upcoming nfl valuations.ell, well, well over $10 billion. i'll leave it at that. >> all right. mike, appreciate you taking time here. of course, we'll continue to get more of your reporting and our viewers can catch more of it as well. the sports section of our website, cnbc.com/sports where he will reveal cnbc's first official nfl valuations. you heard number one, but there's a lot of other ones to come. that will be next thursday. >> $10 billion. >> that's a pretty big number. >> jerry jones did all right. >> i was thinking it would be who are jim cramer is sitting down with later, the ceo of the chiefs. my hometown team. given their record. what do i know about sports valuations. >> they've done pretty well, no doubt. two championships in a row doesn't hurt. >> i can't imagine they're hurting for value there. he is sitting down tonight on "mad money" with clark hunt, the ceo of the kansas city chiefs and join cnbc and board room's game plan conference on september scan that qr code or visit cnbcevents.com/

i say that with the valuations are kind of hard to sort of go by.an ipo it's one day fine. >> if it actually -- >> exactly. >> given the profit-nonprofit sort of nature of the very unique organizational structure. >> yeah. >> of the company. that remains i think unclear. but to your point, a lot of the money that they raise is actually used on compute power that they spend with microsoft. >> right. so that's my point. i did not articulate it well. this is the last private round before it's about to ipo and the bank was oh, it was $100 billion and now ipo 150. you have to take that with a massive pinch of salt. everyone is a customer and partner and investing in each other. i don't think you can take those valuation multiples in any kind of true sense. >> we've got a lot coming up and a closer look at one of this month's top performing sectors, whether there is still time to invest in that sector. a lot of earnings to get to, whether it's lululemon or ulta or mongo, auto desk, wre gnge'oi to cover them all when we come back. ca. millions of americans

it is often what happens when valuations get a little bit lofty. news, every bit of headline news drives the market because algorithms are reading the headlines, the hedge funds are trading off the headlines, so you get these big outsized moves. if you put it in the perspective of the 40 plus years i have been, doing it historically this has been a time -- i have been doing it, historically this is a time where you want to build a list of names you own and as the markets settle in, vix comes down a little bit, this is an opportunity. the last thing i will say about this is the one economic number that has been little discussed and gone unnoticed was the improvement in productivity in q2. came in much harder than expected, up 2.3%. the previous quarter was revised up also. and i think productivity is going to be the keym the magic bulle -- key, the magic bullet, whatever you want to call it for economic growth in a lower inflationary environment. ed: take what you just said about productivity and i will post the question. what should the market do a

chain of petrochemical products and producing final products is their goal for export and higher valuation. mohammad ali qaimi, sed and broadcasting news agency. the eight-month delay of iran khodro to deliver dual-fuel vehicles to the applicants, while this self-driving group excused the lack of tanks , the tank manufacturers say they have the ability to produce all kinds of gas tanks, but khodros must fulfill its obligations. a lot of 6 tomans 12 according to the approval of the supreme energy council in 2019. let's say that if it enters our fuel basket we can manage it too , there is no gas problem to make this happen. we can actually replace gasoline in a way because the green variety itself helps to reduce consumption. iran khodro first announced the supply of a 100-liter gas tank as the reason for the delay in the delivery of dual-fuel engines . we went to the tank manufacturers. we have the production of tanks for all car manufacturers, we are a manufacturer that if our liquidity is not secured , we cannot supply them on time. the next problems, but when we follow the story from the

chris: the valuation got too wide. we were seeing more value in smaller companies outside of technology. you've seen a lot of that correction take place already. i would add in asterix. as we head into the election and volatility increases we could see a move back to big tech as a safe haven trade. lisa: the sleepy week everyone has been looking for for august, how much signal and noise are we getting? peter tchir was talking about the incredible volatility of the moment and how the market is getting jerked around by options trading and some of the other dynamics in markets. are you doing anything during this week? chris: i think it is a lot of noise. you look at the chart since the beginning of july. not much has changed in the economy and ultimately in the market, we are back to almost where we started. there are a lot of externalities. we are focused on longer-term growth. we are focused on policy differentials. lisa: based on the longer-term not changing and short-term seeing volatility, it seems like a good time t

i think it's all a question of valuation on the equity side. on the -- >> but, yeah. >> i agree with you. it's a long way to go on a single jobs report. >> all right. steve, great to see you. thank you. >> my pleasure. >> steve liesman. so, what's your take here on what happened today? >> well, i think basically the employment data we're seeing kind of confirms -- is kind of like confirmation of some of the worst fears i think some people may have had. we've had a lot of data that's come out that isn't necessarily all that positive. employment data was basically -- it wasn't sending any alarm bells. when we look at consumer data, we do see some. when we see business sentiment, we do see some. of course, we've had other leading economic indicators that have tipped in the favor of indicating that we might be getting a recession. when you start to see this, i think be we talked about this before, that employment will be a lagging number. i think this is sort of that confirmation. we're getting numbers that are woerts than the survey. we've obvious

final point on valuation. broad market, it's trading roughly two times its earnings. and nvidia trading .8 times. right? less than 30 times for over 35, 40% earnings growth. fundamentals are strong and valuation similar to that. >> unless a doubt on the earn earning's growth. get more guidance from nvidia. in terms of reports to delay to the blackwell chip, reports out of the information, interesting. we hear about delays to other hardware items. think about it. is it going to be a sale denied, or a sale delayed? in your view, these are sales that will be delayed. correct? that these sales will actually happen. it's maybe a push down a quarter or two quarters, whatever? >> yeah. so if we look at the nvidia proper product which is the product before blackwell. demand is off the charts right now. what we heard from super micro. guided well above consensus and a lot is actually based on the hover product. because we just have had a spirit of insane supply constraints in the industry, and just because blackwell de