HELLO AND WELCOME TO MARKET DOMINATION. I'M JULIE HYMAN. THAT'S JOSH LIPTON, LIVE FROM OUR NEW YORK CITY HEADQUARTERS. WE ARE GIVING YOU THE ULTIMATE INVESTING PLAYBOOK TO HELP TUNE OUT THE NOISE AND MAKE THE RIGHT MOVES FOR YOUR MONEY. >> AND HERE'S YOUR HEADLINE BLITZ GETTING YOU UP TO SPEED. ONE HOUR BEFORE THE CLOSING BELL RINGS ON WALL STREET. >> YOU KNOW, I THINK THE CONSUMER HAS DEFINITELY BEEN A LITTLE BIT WEAKER SINCE 2021. AND WE'VE SEEN SPENDING IN DISCRETIONARY CATEGORIES, NOT QUITE AT THE LEVELS THAT WE SAW PRE OR DURING THE PANDEMIC AND COMING OUT OF THE PANDEMIC, WE'RE DEFINITELY SEEING EXAMPLES OF CONSUMERS TRADING DOWN, LOOKING TO BUY, YOU KNOW, BETTER PRICED ITEMS AND MAYBE NOT GETTING THE PREMIUM PRODUCT, BIG PHARMA COMING IN TO HELP NOVAVAX OUT, NOVAVAX INKING THAT DEAL, $1.2 BILLION. AND THAT INCLUDES, CO COMMERCIALIZATION OF THE COVID VACCINE. THAT'S THE ONE THAT'S CURRENTLY ON THE MARKET, AS WELL AS FUTURE THE COMBO FLU AND COVID VACCINE THAT THEY'VE BEEN WORKING ON FOR QUITE SOME TIME. IF YOU RECALL, NOVAVAX WAS INITIALLY WORKING ON JUST A FLU VACCINE BEFORE THE PANDEMIC. SO THIS IS KIND OF GOING BACK TO THE ROOTS. WE HAD A REALLY STRONG QUARTER. >> WE GREW 26% YEAR OVER YEAR. WE EXPANDED OUR MARGIN TO OVER 18% AT THE RESTAURANT LEVEL, AND WE COMPED 5. SO WE THINK THAT THE CONSUMER IS STILL VERY RESILIENT, AND WE'RE VERY EXCITED ABOUT SOME OF THE THINGS WE'RE PUTTING OUT THERE. YOU KNOW, WE JUST LAUNCHED STEAK THIS WEEK ON TUESDAY, WE LAUNCHED A GRASS FED, PASTURE RAISED STEAK AND HAD A RECORD DAY FOR THE COMPANY ON TUESDAY. SO A LOT OF GOOD MOMENTUM ALL AROUND. >> WE GOT ONE HOUR TO GO UNTIL THE MARKET CLOSED ON THIS FRIDAY, SO LET'S TAKE A LOOK AT THE MAJOR AVERAGES SPONSORED BY TASTYTRADE. WE'VE GOT THE DOW HERE. LEADING GAINS ONCE AGAIN TODAY AND SET FOR ITS EIGHTH STRAIGHT GAIN. EIGHT SESSIONS IN A ROW. WE'VE GOT IT RIGHT NOW UP ABOUT 100 POINTS. ABOUT A QUARTER OF 1. THE S&P 500 UP ABOUT A 10TH OF 1. AND THE NASDAQ LITTLE CHANGE SLIGHTLY TO THE DOWNSIDE. ALL OF THIS STEMMING BACK TO WHAT WE HEARD THIS MORNING ON CONSUMER SENTIMENT AT A SIX MONTH LOW AND INFLATION EXPECTATIONS TICKING UP. NOW, LATELY WE'VE HAD A SORT OF BAD NEWS AS GOOD NEWS DYNAMIC IN THE MARKET. BUT ON THE FLIP SIDE, WE HAD SOME FED SPEAKERS TODAY SAYING THAT THEY WERE GOING TO HOLD THE LINE WHERE THEY EXPECTED LIKELY TO HOLD THE LINE ON RATES THIS YEAR SO THAT DOESN'T HELP MATTERS THEN FOR STOCKS EITHER. AND IF YOU LOOK AT WHAT'S GOING ON IN THE TREASURY MARKET, WHEREAS THAT WORSE THAN EXPECTED DATA THIS MORNING MIGHT LEAD YOU TO BELIEVE THAT YIELDS WERE LOWER. THEY'RE NOT THEY'RE HIGHER BY A LITTLE BIT TICKING BACK UP TO 4.5% ON THE TEN YEAR. SO LET'S LOOK AT THE SECTORS HERE IN THE S&P 500 TO SEE HOW THAT ALL OF THAT IS SHAKING OUT HERE. THAT'S A YEAR TO DATE. SO LET ME CHANGE IT ON OVER TO WHAT WE'RE SEEING IN TODAY'S SESSION. ENERGY IN THE LAGGARD POSITION HERE TODAY ALONG WITH CONSUMER DISCRETIONARY AND REAL ESTATE. CONSUMER STAPLES AND FINANCIALS ARE UP THE MOST TODAY. BUT REALLY NOT NECESSARILY A LOT OF RHYME OR REASON. AND I WANT TO TAKE A QUICK LOOK HERE AT THE TRENDING TICKERS THAT WE ARE WATCHING HERE ON THE YAHOO FINANCE PLATFORM TODAY. AND THEN WE'LL DIG A LITTLE BIT MORE DEEPLY INTO THEM IN JUST A MOMENTHERE. SO HERE IS WHAT IS TRENDING TODAY. LET'S WAIT FOR IT TO POPULATE. WE'VE GOT NOVAVAX WHICH IS ALMOST DOUBLING IN TODAY'S SESSION UP BY 94% ON A NEW PARTNERSHIP WITH SANOFI HAVING TO DO WITH ITS COVID VACCINE. TAIWAN SEMICONDUCTOR TRADING HIGHER BY ABOUT 4% AS WELL. SO THOSE ARE A COUPLE OF THE TRENDING TICKERS THAT OUR USERS ARE TAKING A LOOK AT TODAY. >> JOSH. ALL RIGHT JULIE, LET'S CHECK IN ON ANOTHER TRENDING TICKER HERE SWEETGREEN SHARES ARE SURGING AFTER THE COMPANY RAISES ITS SALES PROJECTIONS FOR THE YEAR. SO THIS STOCK MOVING HIGHER A COUPLE, COUPLE OF METRICS TO POINT OUT REVENUE DID TOP ESTIMATES. THEY ALSO DID RAISE THEIR SAME STORE SALES FORECAST FOR THE FULL YEAR. SO NOW THEY'RE TELLING THE STREET WE'RE LOOKING FOR SAME STORE SALES GROWTH. THEY SAID IF AS MUCH AS 6. SO THAT WAS A TICK UP. ANALYSTS AT CITI LOOKING THINGS OVER NOW THEY ARE ACTUALLY NEUTRAL NAMES. SO THEY'RE ON THE SIDELINES. BUT THEY SAY LISTEN THIS COMPANY HITTING ON MULTIPLE CYLINDERS. THEY HIGHLIGHT THE TOP LINE MOMENTUM. THEY'RE SEEING IMPROVING MARGINS AND NEW PRODUCT PIPELINE. YOU KNOW THIS STOCK JULIA SURGEON TODAY IT'S UP ABOUT 175% SO FAR THIS YEAR. >> SO YOU'VE PROBABLY HEARD ABOUT CHIPPY THE ROBOT THAT MAKES CHIPS FOR BIG AREA OF FOCUS. BUT THERE IS ALSO A SALAD MAKING ROBOT THAT APPARENTLY THERE'S A LOT OF ENTHUSIASM AROUND. >> INFINITE KITCHEN. >> INFINITE KITCHEN. >> IT SOUNDS JUST SO BIG BRAIN, DOESN'T IT? INFINITE KITCHEN AND THE COMPANY SAYS IT'S GOING TO OPEN SEVEN NEW LOCATIONS WITH THAT SALAD MAKING ROBOT THIS YEAR. >> AND THEN THEY'RE GOING TO RETROFIT 3 TO 4 RESTAURANTS WITH THE ROBOT AS WELL, ALSO JONATHAN NEIMAN, THE CEO, SAYING THAT THOSE ROBOTIC KITCHEN LOCATIONS WILL GENERATE SALES OF ABOUT $2.6 MILLION THIS YEAR ON AVERAGE. SO THAT'S INTERESTING AS WELL. SPEAKING OF JONATHAN NEIMAN, YAHOO FINANCE IS MORNING BRIEF. HAD THE CHANCE TO SPEAK WITH HIM TODAY. AND THIS IS WHAT HE SAID ABOUT THE LATEST RESULTS . >> WE DO EXPECT TO BE ADJUSTED EBITDA PROFITABILITY PROFITABLE THIS YEAR. WE HAVE NOT GUIDED TO A TIMELINE ON ON NET INCOME PROFITABILITY, BUT YOU WILL SEE SIGNIFICANT LEVERAGE ON THE BUSINESS THIS YEAR AS WE CONTINUE TO GROW OUR TOP LINE AND HOLD OUR G&A RELATIVELY, RELATIVELY FLAT. >> SO, YOU KNOW, PROFITABILITY, WE STILL NOT QUITE THERE AS OF YET. ALTHOUGH IF YOU LOOK AT ADJUSTED EBITDA, THAT'S THE THAT'S THE METRIC. YEAH >> IT HASN'T I'LL TELL YOU IT HAS NOT DISCOURAGED INVESTORS 240% OF IT'S THE NVIDIA OF SALADS. THAT'S WHAT IT IS. >> IT'S THE NVIDIA OF SALADS. WELL OKAY WAIT WAIT YOU YOU FOLKS IF YOU DON'T KNOW THIS FAMOUSLY JOSH LIPTON HAS NEVER BEEN TO A CHIPOTLE. >> NOT THAT I CAN REMEMBER. >> HAVE YOU BEEN TO A WHICH ACTUALLY IS JUST AS BAD AS SAYING YOU'VE NEVER BEEN. HAVE YOU BEEN TO A SWEETGREEN? >> I HAVE NOT, I HAVE NOT I THINK IF I'M GONNA MAKE A CHOICE, THERE, IT'S GONNA BE THE BURRITO, JUST SO YOU KNOW. BUT I'M OPEN SWEETGREEN I WAS OFF IT FOR A WHILE. >> I DID IT TOO MUCH. >> YEAH. NO. BACK IN. NO, YOU'RE BACK IN. MAYBE WE'LL GO NEXT WEEK. YEAH. >> NO, WE WON'T. DON'T LIE TO ME. >> JOSH TAKING A LOOK NOW AT SHARES OF TAIWAN SEMICONDUCTOR. THAT STOCK IS RISING AS APRIL SALES JUMPED NEARLY 60% FROM LAST YEAR. WHY DO WE CARE ABOUT TAIWAN SEMI JULIE? BECAUSE LISTEN THIS THIS IS THE BIGGEST CONTRACT CHIPMAKER ON THE PLANET . THAT'S WHY WE CARE. THEY HAVE GOOD NEWS. THEY SAY LISTEN APRIL SALES ROSE 60% TO ABOUT 7 BILLION FROM A YEAR AGO. AND WHY WE TALK ABOUT THEM. THEY MAKE CHIPS FOR PRETTY MUCH EVERYBODY WE TALK ABOUT ON THIS SHOW. RIGHT. APPLE TO QUALCOMM TO AMD TO NVIDIA. EVERYONE YOU CAN THINK OF, AND SO WHEN YOU SEE THAT KIND OF STRENGTH FROM TSMC INVESTORS I THINK BEGIN TO THINK, OKAY, WELL MAYBE SOME OF THOSE CUSTOMERS ARE SEEING SOME BETTER TRENDS AHEAD FOR THEIR BUSINESSES TOO. YEAH. >> I MEAN, NOT ONLY IS IT THE BIGGEST CONTRACT CHIP MAKER, IT'S PRETTY MUCH THE BIGGEST ONE SPECIFICALLY FOR NVIDIA TO MAKE ITS MOST ADVANCED CHIPS. SO THAT'S ALSO WHY PEOPLE SEE THIS AS A SORT OF BELLWETHER, IF YOU WILL, OR A GOOD INDICATOR AS TO WHAT'S GOING ON IN THE BROADER INDUSTRY. AS WE KEEP REMINDING FOLKS, WE DON'T GET NVIDIA EARNINGS UNTIL MAY 22ND. SO PEOPLE ARE READING EVERY LITTLE TEA LEAF THAT THEY CAN GET HERE. TAIWAN SEMI DEFINITELY PART OF THE THOSE TEA LEAVES TO SEE HOW THE BROADER CHIP INDUSTRY IS DOING AND MOVE, REALLY MOVE THE CHIPS AS A WHOLE IN THE TRADE TODAY. >> INDEED. MOVING ON. STOCKS MIXED TODAY WITH THE DOW ON TRACK FOR ANOTHER DAY OF GAINS HERE. THE HEADLINE FOR THE ECONOMY CONSUMER SENTIMENT. WE KNOW THE PRELIMINARY REPORT FROM THIS MORNING COMING IN MUCH LOWER THAN ECONOMISTS HAD ANTICIPATED. FOR MORE LET'S BRING IN DAN SKELLY, MANAGING DIRECTOR AT MORGAN STANLEY WEALTH MANAGEMENT. DAN, IT IS GOOD TO SEE YOU SO I GOT SOME MORE GREEN ON THE SCREEN TODAY. THE DOW HERE ON TRACK FOR ITS EIGHTH WINNING SESSION IN A ROW. DAN, WHAT DO YOU MAKE OF THIS MARKET AND WHERE DO YOU THINK WE GO FROM HERE. >> SURE. AND THANKS SO MUCH FOR HAVING ME ON THIS AFTERNOON. SO WHAT WE WOULD SAY IS THE SELL OFF THAT WE SAW SINCE LATE MARCH WAS REALLY MORE OF AN ADJUSTMENT SELL OFF. RIGHT. AND YOU SAW, FRANKLY, A LOT OF THE SAME LEADERS HEADING INTO THE PEAK IN MARCH OUTPERFORMED DURING THE SELL OFF, BE IT TECHNOLOGY OR ENERGY OR SOME OF THE OTHERS. AND YOU ACTUALLY SAW SOME OF THE TRADITIONAL AND MORE YIELD ORIENTED SECTORS CONTINUE TO LAG. SO AGAIN, THIS INFORMED US THAT IT WASN'T SO MUCH A GROWTH SCARE. IT WAS MORE OF AN ADJUSTMENT IN THE MARKETS WHERE THE MARKET OBVIOUSLY, AS EVERYONE HAS TALKED ABOUT ALL WEEK, CONTINUE TO PRICE OUT AGGRESSIVE FED CUTS, AGGRESSIVE FED CUTS. >> BUT THAT'S NOT WHAT WE'RE HEARING FROM THE FED RIGHT. YOU KNOW YOU HAD A COUPLE OF OTHER FED SPEAKERS TODAY WHO SEEM TO INDICATE THEY'RE GOING TO BE QUITE PATIENT. DO WE BELIEVE THAT? >> SO LISTEN, I WOULD SAY THERE'S BEEN IN OUR ECONOMICS TEAM LED BY ALAN ZENTNER HAS HIGHLIGHTED THERE HAS BEEN SOME NOTABLE SURPRISES IN THE FIRST COUPLE OF MONTHS OF THIS YEAR THAT WE COULD ACTUALLY SEE REVERSED IN THE NEXT COUPLE OF MONTHS. SO NAMELY, SHELTERS AND RENTS WE THINK MIGHT BE ON MORE OF A DISINFLATION PATH IN THE SECOND HALF. WE CONTINUE TO SEE WIDE SPREAD PENETRATION OF IMMIGRANT LABOR, WHICH IS HAPPENING AT LOWER WAGE CLIPS ON AVERAGE. SO WE THINK THE SLOWDOWN IN WAGES THAT WE'VE SEEN SOMEWHAT MAY CONTINUE, AND THEN JUST LASTLY, GOODS, SEEMINGLY CONTINUED TO DIS INFLATE WITH CHINA EXPORTING DEFLATION WITH ALL THE EXCESS CAPACITY GOING ON THERE. SO, LOOK, I THINK THERE'S SOME REASONS TO BELIEVE SOME OF THESE SURPRISES MAY REVERSE. OUR OFFICIAL CALL AT THE MOMENT IS FOR STILL THREE CUTS STARTING IN SEPTEMBER OF THIS YEAR. >> DAN, I'M INTERESTED AS YOU LOOK AHEAD HERE, WHAT DO YOU THINK THE NEXT CATALYST IS FOR THIS MARKET? SOME ARE ALREADY LOOKING AHEAD TO NVIDIA EARNINGS . WHAT DO YOU THINK. HOW IMPORTANT IS THAT PRINT FOR THE MARKET. >> SO THAT'S AN EXCELLENT QUESTION. AND I WOULD ARGUE A LOT OF THE PE UP IF YOU WILL FOR NVIDIA HAS ALREADY BEEN REVEALED BECAUSE WE JUST HEARD FROM ALL THE BIG HYPERSCALER TECH PLATFORMS OVER THE LAST TWO WEEKS, INCREASE THEIR CAPITAL SPENDING. SO THE LIKELIHOOD THAT NVIDIA IS GOING TO AT LEAST MEET , IF NOT MAYBE EVEN AGAIN EXCEED EXPECTATIONS HAS BEEN RISING AS ALL THE BIG TECH PLAYERS ARE SAYING, HEY, WE'RE SPENDING MORE ON THESE THEMES. WHERE ELSE DOES THAT PLAYING OUT, VERY KIND OF, NUANCE IN SOME OF THE POWER PLAYS. YOU'VE SEEN UTILITY, NUCLEAR AND GAS PLAYS START TO SEE BIG EARNINGS REVISIONS BECAUSE ALL OF THE BIG TECH PLATFORMS ARE SPENDING ON DATA CENTER INFRASTRUCTURE. THIS IS ALL COALESCING AROUND THE SAME THEME. YOU MENTIONED, WHICH IS NVIDIA'S LEADERSHIP IN AI. SO YEAH, I WOULD SAY IT'S CERTAINLY A CATALYST. BUT MORE TO THE POINT, WE WANT TO SEE OVERALL EARNINGS ACHIEVABILITY. AND AS WE'VE NOW PRINTED 90% OF S&P MARKET CAP WEIGHTED, THE REALITY IS WE'RE ON TRACK FOR MID TO HIGH SINGLE DIGIT EARNINGS GROWTH THIS YEAR, WHICH IS KIND OF A SLOW GRINDING CATALYST, BUT ONE THAT WE THINK IS IMPORTANT AMID ALL THIS UNCERTAINTY, AND WHEN YOU'RE LOOKING AT WHERE TO DEPLOY RIGHT NOW, WOULD YOU RATHER PLAY SOMETHING LIKE NVIDIA DIRECTLY, OR ARE YOU LOOKING AT THAT SORT OF AI ADJACENT ECOSYSTEM? >> YEAH, ANOTHER EXCELLENT QUESTION. >> AND LOOK, EVEN LOOKING AT THE FIRST FOUR AND A HALF MONTHS OF THIS YEAR, THE MAGNIFICENT SEVEN FROM LAST YEAR HAS NARROWED INTO THE FAB FOUR. AND YOU'RE NOT SEEING ALL OF THE SAME MONOLITHIC PERFORMANCE THAT YOU SAW 18 MONTHS AGO. SO WE'VE HAD EXPOSURE TO NVIDIA. WE CONTINUE TO IN THE PORTFOLIO. BUT TO YOUR POINT, WE ARE SEEING THIS TREMENDOUS OPPORTUNITY ACROSS OTHER IDIOSYNCRATIC, ECOSYSTEM AND INFRASTRUCTURE PLAYS LIKE POWER, AND POTENTIALLY GAS. WE'RE SEEING THAT ALSO JUST IN WHAT WE CALL THE FORTUNE 100. THE COMPANIES THAT ARE WELL CAPITALIZED QUALITY NAMES, FRANKLY, ACROSS A HOST OF INDUSTRIES, WHETHER IT BE MANUFACTURERS, HEALTH CARE, FINANCIALS. AND TO YOUR QUESTION, THIS IS WHERE YOU'RE TRULY STARTING TO SEE SOME PLAYERS STARTING TO KIND OF GRADUALLY ADOPT AI AND STARTING TO SEE SOME IMPROVEMENT IN THEIR EARNINGS. NOW, IT HASN'T BEEN WIDESPREAD JUST YET, BUT THIS IS ALMOST ACTING LIKE A PUT OPTION ON THE REST OF THE MARKET, BECAUSE I THINK THE GENERAL CONSENSUS IS THAT MORE OFTEN THAN NOT, AI ADOPTION IS GOING TO LEAD TO BETTER EARNINGS POWER. >> DAN, NEXT WEEK YOU KNOW WE'RE GOING TO HEAR FROM SOME SOME RETAILERS. I WANT TO GET YOU OUT OF HERE ON THIS INCLUDING THE WORLD'S LARGEST RETAILER WALMART A BELLWETHER FOR THE CONSUMER. WHAT IS YOUR GENERAL TAKE THERE DAN. ON THE CONSUMER RIGHT NOW, YOU KNOW, HEALTHY, RESILIENT OR SHOWING SOME SIGNS OF CRACKS. YEAH I DON'T MEAN TO PUNT ON THE QUESTION, BUT IT'S A MIXED BAG. >> AND IT'S REALLY A REFLECTION OF THIS PHENOMENON OF A TWO TRACK ECONOMY WHERE INTEREST RATES HAVE REALLY BECOME THE DIVIDING LINE BETWEEN THE HAVES AND THE HAVE NOTS. THIS IS PLAYING OUT ACROSS, FRANKLY, THE CORPORATE SECTOR IN TERMS OF LARGE VERSUS SMALL CAP, COMPANY THAT ARE STRONG BALANCE SHEET AND NET CASH AND STRONG FREE CASH FLOW VERSUS UNPROFITABLE. AND TO YOUR POINT, THIS IS PLAYING OUT VERY ACUTELY IN THE CONSUMER SECTOR. AND WE'VE HEARD ABOUT, THIS KIND OF, AGAIN, BIFURCATION AMONG CONSUMER SPENDING TRENDS IN THE LAST THREE WEEKS VIA EARNINGS SEASON. IN A WAY, FRANKLY, I HAVEN'T SEEN AS ACUTE IN YEARS. AND SO IF YOU JUST LOOK AT A HANDFUL OF EXAMPLES, WHETHER IT BE RED GIANT SPENDING AND MORE ROTATION TO FOOD AT HOME, WHETHER IT BE THE DIVERGENCE BETWEEN CORPORATE TRAVEL WITH SOME EXPECTATIONS OF FED CUTS, AS WE TALKED ABOUT AND POTENTIAL M&A AND DEAL FLOW VERSUS DOMESTIC VACATION SPEND, WHICH WAS A COMPLETELY KIND OF REOPENING REVENGE TRAVEL TAILWIND A COUPLE OF YEARS AGO. YOU'RE SEEING THIS BIFURCATION IN TERMS OF THE HIGH END, THE WELL CAPITALIZED COMPANIES AND EVERYONE ELSE. AND THE QUESTION HAS ALWAYS BEEN EVERYONE'S TRYING TO FIGURE OUT IS IT A HARD LANDING OR A SOFT LANDING? THE WAY I'M LOOKING AT IT IS MORE SO IN TERMS OF THIS BEING AN UNKNOWN FLIGHT PATH COMING OUT OF THIS PANDEMIC WITH HISTORIC INFLATION AND THEN AGGRESSIVE FED TIGHTENING. I DON'T THINK THERE IS ANY PLAYBOOK FOR THIS, BUT THE ONE THING THAT WE CONTINUE TO LOOK AT IS WHETHER OR NOT THE ONE TRACK CAN CONTINUE TO HOLD UP THE OVERALL AVERAGES. AND I THINK THERE'S SOME MEANINGFUL EVIDENCE THAT THE SECOND TRACK IS STARTING TO DRAG THINGS DOWN OVERALL PRETTY MEANINGFULLY. SO THIS IS SOMETHING WE CONTINUE TO , MONITOR CLOSELY. >> DAN KELLY, THANKS SO MUCH. HAPPY FRIDAY. >> HAPPY FRIDAY. THANK YOU. >> THANKS. WE'RE JUST GETTING STARTED HERE ON MARKET DOMINATION. >> COMING UP NOVAVAX ANNOUNCING A MULTI-BILLION DOLLAR DEAL WITH FRENCH DRUGMAKER SANOFI. THOSE SHARES ARE SOARING. AND THEN SOME WE'RE GOING TO SPEAK TO AN ANALYST ON THE OTHER SIDE ABOUT THAT DEAL. AND IT'S THE LATEST EDITION OF OUR SERIES, GOODBYE OR GOODBYE. WE'LL TAKE A DEEP DIVE INTO TWO STOCKS TO HELP YOU MAKE THE BEST CHOICES FOR YOUR PORTFOLIO. STAY TUNED FOR MARKET DOMINATION AFTER THIS . >> NOVAVAX SHARES ARE SKYROCKETING. >> UP NEARLY 100. THE MOVE HIGHER COMES AFTER THE COMPANY ANNOUNCED A MULTI-BILLION DOLLAR DEAL WITH FRENCH DRUGMAKER SANOFI. THE TERMS OF THAT CO-EXCLUSIVE LICENSING AGREEMENT INCLUDE CO COMMERCIALIZING NOVAVAX'S COVID 19 VACCINE, AS WELL AS DEVELOPING A COVID 19 INFLUENZA COMBINATION VACCINE. HERE WITH MORE ON THE NEW CHAPTER FOR THE BIOTECH COMPANY, WE'VE GOT MAYANK MAMTANI B RILEY SECURITIES MANAGING DIRECTOR AND GROUP HEAD OF HEALTHCARE, AN INTERESTING SITUATION TODAY THAT SEEMS TO HAVE EFFECTIVELY BROUGHT BACK NOVAVAX FROM THE BRINK. THERE WERE CASH CONCERNS AROUND THIS COMPANY. IS THAT HOW YOU WOULD CHARACTERIZE THAT ANNOUNCEMENT TODAY? >> YEAH. THANKS FOR HAVING ME. YEAH, I THINK THAT GOING CONCERN STATUS ON THEIR BALANCE SHEET THAT COMING AWAY IS A BIG DEAL, OBVIOUSLY HAVING A CONGLOMERATE, A VACCINE BELLWETHER LIKE SANOFI, CHOOSING TO PARTNER WITH A COMPANY LIKE NOVAVAX, WHICH DOES HAVE THIS ADJUVANTED NEXT GENERATION RECOMBINANT PROTEIN PLATFORM, OBVIOUSLY, IS A VALIDATION FROM A PLATFORM TECHNOLOGY STANDPOINT. BUT THE BIG TAKEAWAY FROM, WHAT WHAT HEADLINES HAVE BEEN ABOUT A YOU KNOW, FRENCH CONGLOMERATE RESCUING, A US, PHARMACEUTICAL COMPANY THAT WAS STRUGGLING IN A POST PANDEMIC ERA, THAT THAT IS ABSOLUTELY TRUE. AND IT MAKES, THE COMPANY AND THE STOCK INVESTABLE FOR MANY INVESTORS TODAY, YOU KNOW, MORE THAN INVESTABLE. >> IT WAS INTERESTING JUST TO HEAR SOME OF THE LANGUAGE YOUR COLLEAGUES WERE KIND OF USING ON THE STREET TODAY TO DESCRIBE THIS. YOU KNOW, I SAW ONE ANALYST SAY THIS WAS TRANSFORMATIVE FOR THE COMPANY, IN HIS WORDS, DO YOU THINK THAT'S TRUE, TRANSFORMATIVE, OR IS THAT OVERSTATING IT? >> I THINK I HOW I LOOK AT IT IS, IS MORE LIKE A NEXT CHAPTER TO BE WRITTEN IN THE NOVAVAX STORY, AGAIN, I DON'T WANT TO BE IN ANY WAY, NOT BE HONEST ABOUT AND OBJECTIVE ABOUT THE REALITIES OF WHAT NEEDS TO STILL HAPPEN, ABOUT THE, EXECUTION ON THE COVID MARKET AS A WHOLE, OBVIOUSLY, YOU KNOW, IN THE IN THE PAST COUPLE OF YEARS, WE HAVE COMPLETELY MISREAD HOW THE VACCINATION UPTAKE RATES WOULD LOOK LIKE. AND THEN IN TERMS OF NOVAVAX BEING ABLE TO COME TO THE MARKET IN A IN A TIMELY WAY, LIKE IN LINE WITH WHEN WE SAW VACCINES IN THE, IN THE PHARMACY STORES AND THE PHYSICIAN OFFICES, HOW WE SAW FROM PFIZER AND MODERNA THAT THAT WAS JUST NOT THE CASE. BUT BUT FROM WHAT TODAY'S DEAL IS TELLING US THAT, YOU KNOW, UNDER THIS NEW MANAGEMENT REGIME WHICH HAS SEEN , I THINK WHAT'S TRANSFORMATIVE HERE IS THE RELATIONSHIP THAT THEY'VE BUILT WITH THEIR PARTNERS, INCLUDING IN THE FDA, WHO ARE ALLOWING THEM TO HAVE A PATH, YOU KNOW, WHICH IS VERY STREAMLINED WHEN IT COMES TO HAVING A VARIANT BASED VACCINE. BUT I THINK I'M SURE YOU ARE INTERESTED IN ALSO UNDERSTANDING THE COVID INFLUENZA COMBINATION VACCINE THAT, THE REGULATORY PATH FOR THEIR LATE STAGE VACCINE, THERE HAS ALSO BEEN AN ALIGNMENT WITH THE FDA, ON, THAT BECOMING AVAILABLE FOR THE PUBLIC IN 2026, ONLY A YEAR AFTER WE COULD SEE SHOTS FROM MODERNA AND PFIZER, WHICH WHICH IS PROJECTED TO BE NEXT YEAR. AND WE'LL LEARN IN SHORT ORDER SOME DATA ON THOSE, ON THAT COMBINATION PRODUCT, IN THE COMING MONTHS. >> AND MAYANK, OUR HEALTHCARE REPORTER, ANJALI KHEMLANI, HAD THE CHANCE TO TALK TO NOVAVAX CEO JOHN JACOBS. AND THIS IS WHAT HE TOLD HER. HE SAYS, WHAT THIS DOES IS IN AND OF ITSELF, IT DOESN'T SAVE NOVAVAX. BUT WHAT IT DOES IS NOW PUT US TOWARD A FUTURE OF GROWTH. BACK ON OUR BIOTECH STRENGTH, BACK ON A PLATFORM BASED GROWTH STRATEGY THAT ALLOWS US TO DRIVE GROWTH. NOW, AS YOU JUST MENTIONED, THERE ARE POTENTIALLY OTHER PRODUCTS OR AT LEAST OTHER COMBINATIONS COMING DOWN THE PIKE HERE. BUT YOU KNOW, WHAT DOES THE FUTURE GROWTH TRAJECTORY LOOK LIKE FOR NOVAVAX ? >> YEAH, I MEAN, IF YOU IF YOU TAKE A STEP BACK ON ON THE SIZE OF THE MARKET OF THE OPPORTUNITY, WE ARE TALKING ABOUT, AND IF YOU JUST LOOK AT FLU AND TAKE OUT THE PANDEMIC FROM THE PICTURE, YOU KNOW, WE WERE VACCINATING ROUGHLY, NORTH OF, YOU KNOW, 50 TO 60 MILLION, ADULTS EVERY YEAR. AND A LARGE MAJORITY OF THEM WERE ELDERLY. RIGHT. THE VACCINATION RATES TEND TO BE HIGHER THAN THAT. SO IF YOU THINK ABOUT THAT MARKET IS AT LEAST WHAT YOU WOULD LOOK TO PROTECT. AND THERE IS OBVIOUSLY A DATA, YOU KNOW, AN AS YOU MIGHT AS YOU GUYS ARE AWARE THAT NOVAVAX WAS WORKING ON A FLU VACCINE BEFORE COVID EVEN CAME ALONG AND THEY HAD POSITIVE PHASE THREE RESULTS. SO WHAT TODAY'S, UPDATE AND DEVELOPMENT DOES IS ACTUALLY BRING THAT BACK ALMOST FROM THE ASHES TO BE ABLE TO DEVELOP AS A STAND ALONE VACCINE, A FLU VACCINE, AND THEN THE COMBINATION INFLUENZA VACCINE WOULD BE IN ADDITION TO THAT STANDALONE FLU VACCINE. SO AGAIN, IT'S A LITTLE UNCLEAR HOW THE MARKET WOULD SEGMENT OUT WHICH, PARTS OF THE POPULATION WOULD ONLY PREFER FLU AND NOT, YOU KNOW, TAKE A COVID COMBINATION. BUT I THINK WE'LL SEE THE GUIDELINES AND THE MEDICAL PROFESSIONAL BODIES, YOU KNOW, THE RECOMMENDATIONS AROUND HAVING PROTECTION FOR BOTH AND IF SAFETY AND EFFICACY AND IMPORTANTLY, IMMUNOGENICITY, WHICH WE'VE SEEN ALREADY ON A STANDALONE BASIS FROM THE COVID VACCINE FOR NOVAVAX AND ALSO FROM THE FLU VACCINE, THERE'S A VERY HIGH LIKELIHOOD OF SUCCESS FOR THEM TO HIT ON THIS PHASE THREE TRIAL. THEY'RE LOOKING TO EXECUTE. AND THEN IN TERMS OF THE MARKET OPPORTUNITY, AND ESPECIALLY IN A PREMIUM SEGMENT MARKET OR ELDERLY MARKET WHERE IT'S A LITTLE UNCLEAR HOW THE MRNA COMPANIES WOULD, PAN OUT IN TERMS OF THEIR PROFILE. YOU KNOW, YOU'RE LOOKING AT THEM TAPPING INTO A, YOU KNOW, MULTI-BILLION DOLLAR, MARKET OPPORTUNITY THAT THEY COULD, YOU KNOW, SHARE, HAVE A, YOU KNOW, ANYWHERE BETWEEN 20 TO 30% MARKET SHARE. SO THAT, THAT I THINK IS THE WORK THAT NEEDS TO HAPPEN FOR PEOPLE TO GET COMFORTABLE IN THE STORY AGAIN. >> AND MY FINAL QUESTION HERE, YOU KNOW, THIS COMPANY HAS BEEN UNDER ACTIVIST PRESSURE, SHOCK CAPITAL. >> I'M JUST CURIOUS HOW, IF AT ALL, YOU THINK THE NEWS TODAY KIND OF IMPACTS THAT DYNAMIC. >> YEAH, WE TRY NOT TO COMMENT ON ACTIVIST. SITUATIONS, BUT I THINK JUST AT THE HIGHEST LEVEL IT WAS, I THINK DIRECTIONALLY, POINTING TO THE THINGS THAT THE MANAGEMENT WAS ALREADY WORKING ON. AND TODAY'S DEAL ACTUALLY, CONFIRMS THAT. RIGHT. LIKE ONE OF THE, RECOMMENDATIONS OR, YOU KNOW, ASKED FOR THE FOR THE MANAGEMENT WAS TO ENGAGE IN A PROCESS OR ENGAGE WITH A, CREDIBLE PARTNER THAT WE HAVE IN SANOFI, THAT THEY, YOU KNOW, THEY'VE BEEN WORKING ON FOR SEVERAL MONTHS, DEALS LIKE THESE DON'T COME TOGETHER, AS YOU KNOW, OVERNIGHT. SO I THINK THAT, MAYBE THAT URGENCY TO ACT OR DELIBERATION, WAS, YOU KNOW, CATALYZED BY HAVING AN ACTIVIST, INTERFERE. BUT CLEARLY MANAGEMENT, HAD BEEN, YOU KNOW, LOOKING AT SOME OF THESE STRATEGIC OPTIONS FOR A LITTLE WHILE. AND AS YOU KNOW, OVER THE PAST YEAR, THEY'VE, CUT COST, YOU KNOW, RIGHTSIZE THE ORGANIZATION AND THEY CONTINUE TO DO THAT INTO THE, INTO NEXT YEAR. SO, GETTING THAT BALANCE SHEET, YOU KNOW, ISSUE THAT THEY HAD TO, GET OVER WAS ALREADY IN THE WORKS AND, AND EXECUTION RELATED ISSUES THAT WERE, I THINK, ALSO POINTED OUT, FROM A REGULATORY STANDPOINT, FROM A COMMERCIAL STANDPOINT, THOSE WERE ALREADY THINGS THEY THEY WERE, YOU KNOW, ON TRACK, ON TRACK WITH AND HENCE YOU KNOW, YOU SAW A PARTNER LIKE SANOFI BUY INTO, THEIR STRATEGIC OPERATIONAL PLAN AND HOW I THINK EVERYONE IT'S A WIN WIN FOR EVERYONE, INCLUDING THE ACTIVIST INVESTOR WHO WAS, VOCAL ABOUT ABOUT THE COMPANY IN THE PAST FEW DAYS. >> MAYANK, THANK YOU SO MUCH FOR JOINING THE SHOW TODAY, HELPING US NAVIGATE AND MAKE SENSE OF THIS NEWS. WE APPRECIATE IT. >> NO PROBLEM. THANK YOU. >> THE BIDEN ADMINISTRATION REPORTEDLY SET TO ANNOUNCE HIGHER TARIFFS ON CLEAN ENERGY GOODS FROM CHINA. ELECTRIC VEHICLES ARE EXPECTED TO SEE A HEFTY LEVY. YAHOO FINANCE'S PRICE MERIDIAN JOINS US NOW WITH THOSE DETAILS. PRICE. >> YEAH. >> HEY JOSH YOU KNOW NOT A SURPRISING TURN HERE. WE KNEW THESE WERE COMING BUT I GUESS WE'RE SURPRISED ALSO TO HEAR ABOUT THE REPORTS ABOUT HOW BIG THESE TARIFFS MIGHT BE IN PARTICULAR FOR EVS. THE WALL STREET JOURNAL REPORTING THAT EARLY NEXT WEEK WHEN BIDEN SUPPOSEDLY WILL GIVE THESE NEW GUIDELINES, THEY'RE GOING TO QUADRUPLE THE SORRY, THE TARIFF FOR EVS TO 100% TARIFF ON EVS. CURRENTLY, THERE'S AROUND A 25, 27% ISH TARIFF ON JUST ALL CHINESE CARS IN GENERAL. BUT THEY WANT TO MAKE IT 100% FOR THE EVS. AND POTENTIALLY WITH THAT, THAT WOULD MAKE THOSE CARS, YOU KNOW, NOT COMPETITIVE HERE IN THIS MARKET. YOU KNOW, IT REMAINS TO BE SEEN SORT OF WHAT BIDEN WILL DO, BECAUSE THERE'S ALSO A THREAT IN MEXICO WHERE CHINESE AUTOMAKERS ARE MAKING CARS IN MEXICO. WHAT HAPPENS IF THEY IMPORT THOSE CARS? WILL THEY WILL THEY BE CONSIDERED, YOU KNOW, FREE TRADE CARDS BECAUSE FROM MEXICO OR THEY'D BE CONSIDERED CHINESE? WE'LL SEE. WE'LL FIND OUT, I GUESS, MORE INFORMATION NEXT WEEK, POTENTIALLY, WE DID SEE SOME SHARES OF THE CHINESE EV MAKERS A LITTLE BIT LOWER EARLIER TODAY ON THAT NEWS. BUT, YOU KNOW, FOR THE MOST PART, THEY MAKE MOST OF THEIR MONEY FROM THEIR DOMESTIC MARKET AND ALSO SOME PARTS OF EUROPE. SO NOT REALLY GOING TO HIT THEIR THEIR SORT OF BOTTOM LINE JUST QUITE YET. BUT IT IS A SORT OF A BIG HEADLINE NUMBER THERE IN OF COURSE, AN ELECTION YEAR. >> RIGHT. AND MORE QUESTION WHAT HAPPENS DOWN THE LINE FOR THEIR GROWTH PROSPECTS. I WANT TO SHIFT GEARS HERE THOUGH, WHILE WE HAVE YOU, BECAUSE ELON MUSK IS CHANGING HIS TUNE ON A SUPERCHARGER NETWORK. HALT. I YOU KNOW, I DON'T KNOW WHO'S GOING TO DO THE WORK AT TESLA ANYMORE, CONSIDERING HOW MANY PEOPLE THEY LAID OFF IN SUPERCHARGERS. BUT TELL US WHAT WE KNOW. >> YEAH, I'M SORT OF LIKE A BACKTRACK HERE FOR, FOR ELON MUSK KIND OF, TRYING TO FIX SITUATION OR CHAOS THAT HE CREATED IN THE FIRST PLACE BY BASICALLY NEARLY, LAYING OFF EVERYONE IN THAT SUPERCHARGER TEAM. YOU KNOW, THIS IS A PRODUCT THAT MANY PEOPLE THOUGHT SORT OF SEPARATED TESLA FROM THE REST OF THE PACK. ALSO, WE KNOW MANY LEGACY AUTOMAKERS SIGNED UP WITH TESLA TO BE A PART OF THAT NETWORK FOR THEIR EVS. SO A BIG DEAL HERE. BUT BASICALLY, MUSK SAYING TODAY EARLIER THIS EARLIER TODAY, SAYING JUST TO REITERATE IN A TWEET, TESLA WILL SPEND OVER 500 MILLION EXPANDING OUR SUPERCHARGER NETWORK TO CREATE THOUSANDS OF NEW CHARGERS THIS YEAR THAT'S JUST ON NEW SITES AND EXPANSIONS, NOT COUNTING OPERATIONS COSTS, WHICH ARE MUCH HIGHER. SO HE'S SORT OF SAYING NOTHING TO SEE HERE. WE'RE GOING TO KEEP ON INVESTING. DON'T DON'T THINK DON'T LOOK AT THOSE REPORTS THAT SAYING THAT I LAID OFF EVERYONE, INCLUDING THE WOMAN, REBECCA TANUKI, WHO ACTUALLY, NEGOTIATED THE DEALS WITH HONDA AND GM AND FORD AND OTHERS TO KIND OF JOIN THE NETWORK. SO SORT OF A BACKTRACK HERE. I THINK THERE'S A LOT OF PARTNERS, NOT JUST AUTOMAKERS, BUT ALSO THEIR SUPPLIERS WHO MAKE THE SUPERCHARGERS, WHO DEVELOP SITES AND REAL ESTATE, PROJECTS, WHO ARE CONCERNED THAT THEY WERE TRYING TO EMAIL PEOPLE AT TESLA, THEIR EMAILS ARE GETTING BOUNCED BACK. THEY HAVE NO IDEA WHO TO TALK TO, WHO TO GET PAID, THINGS LIKE THAT. SO IT'S A BIG PROBLEM THAT HE'S TRYING TO ADDRESS RIGHT NOW. >> PRIZE. >> THANK YOU SO MUCH FOR THE UPDATE. APPRECIATE IT. >> THANK YOU. >> COMING UP, IT'S LATEST EDITION OF OUR SERIES GOODBYE OR GOODBYE. STAY TUNED. MORE MARKET DOMINATION AFTER THIS . >> IT'S A BIG, NOISY UNIVERSE OF STOCKS OUT THERE. WELCOME TO GOODBYE OR GOODBYE. OUR GOAL TO HELP CUT THROUGH THAT NOISE. TO NAVIGATE THE BEST MOVES FOR YOUR PORTFOLIO. TODAY, WE'RE DISSECTING THE BATTLE OF FINANCIAL SERVICES BETWEEN FINTECH VERSUS TRADITIONAL BANKING. JOINING ME HERE TO DISCUSS IS GREAT HILL CAPITAL CHAIRMAN AND MANAGING MEMBER THOMAS HAYES. TOM, IT'S GOOD TO SEE YOU. >> GREAT TO BE HERE JULIE. YEAH. WHAT THEY CALL TRADFI VERSUS FINTECH I GUESS IF YOU'RE IN CERTAIN SEGMENTS. >> BUT LET'S GET TO THE FINTECH FIRST BECAUSE THAT IS THE STOCK THAT YOU LIKE. ALTHOUGH IT'S SORT OF AN OLDER ONE IN THE UNIVERSE OF FINTECH. AND THAT IS PAYPAL. THE STOCK HAS HAD A BIT OF A ROCKY RUN, BUT LET'S GET TO WHY YOU LIKE IT. FIRST OF ALL, THERE'S A NEW CEO AND THERE'S BEEN A LOT OF OPTIMISM SORT OF BAKED IN THERE, WITH THE COMPANY COMING OUT WITH ITS LATEST RESULTS. >> YEAH. ANDREW, CHRIS CAME FROM INTUIT. SO HE RAN THE SMALL BUSINESS DIVISION AT INTUIT, WHICH WAS 50% OF THE REVENUES. WHILE HE RAN THAT DIVISION. THE STOCK WAS A 40 BAGGER OVER JUST OVER A DECADE. SO HE'S BRINGING SOME OF THAT EXPERIENCE TO PAYPAL TO REVITALIZE THE BRAND. HE PUT OUT THE SIX INITIATIVES, WHICH HE SAID WAS GOING TO SHOCK THE WORLD. IT FELL A LITTLE FLAT, YES, EXCEPT FOR THE FACT THAT HE'S DELIVERING ON IT. WE SAW THEM. HE SET EXPECTATIONS LOW, HE SET GUIDANCE LOW, AND HE BEAT ALREADY IN THE FIRST QUARTER. AND THE BIG PROBLEM THAT EVERYONE WAS WORRIED ABOUT WITH PAYPAL WAS MARGIN CONTRACTION. WE SAW AN EXPANSION OF MARGINS IN THAT FIRST QUARTER BY 98 BASIS POINTS. THAT WAS A GOOD DEAL. >> YES. ALL RIGHT. SO LET'S TALK ABOUT THE WHAT WE'VE SEEN HAPPEN IN THE STOCK HERE. WE RERATING. >> PERHAP THIS IS THIS IS A BIG DEAL BECAUSE THE STOCK TRADES DOWN TO 15 TIMES EARNINGS RELATIVE TO THE GENERAL S&P AT 21 TIMES. SO WHY IT'S HISTORIC MULTIPLE IS ABOUT 30 TIMES AS MARGINS CONTRACTED AND GROWTH SLOWED THAT MULTIPLE CONTRACTED. NOW WHAT YOU'RE SEEING IS A REACCELERATION. SINCE ANDREW CHRIS CAME ON BOARD MARGIN EXPANSION. YOU SAW TOTAL PAYMENT VOLUME UP 14% LAST QUARTER. REVENUES UP 9. EARNINGS UP 18. TOTAL TRANSACTION IS UP 11. SO AS WE GET MORE CONSISTENCY A FEW QUARTERS UNDER HIS BELT WHERE THE MARKET CAN BELIEVE THAT MARGINS HAVE STOPPED GOING DOWN AND REVENUES CONTINUE TO GROW, EARNINGS CONTINUE TO GROW. CASH FLOW CONTINUES TO GROW. WE COULD SEE A MULTIPLE EXPANSION ON TOP OF THE BUSINESS EXPANSION. SO MAYBE BACK UP TO 18 TIMES, 20 TIMES, 22 TIMES. I DON'T KNOW IF WE'RE GOING BACK TO HISTORIC MULTIPLES, BECAUSE THAT THE HALCYON DAYS OF THE, 30% GROWTH MAY BE BEHIND US, BUT A NORMALIZED MULTIPLE WOULD REALLY DO A LOT TO RAISE THE STOCK PRICE FROM HERE. >> AND THEN THERE'S ONE MORE FINANCIAL METRIC YOU'RE LOOKING AT AND THAT IS FREE CASH FLOW. >> YES. THIS IS MY FAVORITE METRIC. THIS IS THE ONE THAT CAN'T BE MANIPULATED. THEY GENERATE ABOUT $5 BILLION A YEAR OF FREE CASH FLOW. IT'S AMAZING THAT I'M TALKING ABOUT A TURNAROUND SITUATION THAT GENERATES $5 BILLION OF FREE CASH FLOW, HAS GOT $9 BILLION OF CASH ON THEIR BALANCE SHEET. SO ALL THE RUNWAY IN THE WORLD AND FURTHER TO GETTING THE STOCK PRICE UP, THEY'RE ACTUALLY USING THAT FREE CASH FLOW TO BUY IN STOCK. THEY'RE BUYING ABOUT $5 BILLION A YEAR AT A $67 BILLION CAP. THEY COULD BUY IN THE ENTIRE COMPANY IN 12 OR 13 YEARS. SO WE LIKE THAT SITUATION. WE LIKE THAT IT'S CASH GENERATIVE. AND THAT GIVES THEM ALL THE RUNWAY THEY NEED. IN ADDITION TO THE $9 BILLION ON THEIR BALANCE SHEET OF CASH. >> INTERESTING. ALL RIGHT. WE ALWAYS LIKE TO TALK ABOUT WHAT COULD GO WRONG IN A SCENARIO LIKE THIS. AND THAT'S MAYBE, YOU KNOW, THERE'S A LOT OF COMPETITION IN THIS SPACE. >> YEAH. THERE'S NO QUESTION. OBVIOUSLY APPLE PAY IS A BIG THREAT. EVERYONE'S WORRIED ABOUT THAT, THE REGULATORS ARE CRACKING DOWN A LITTLE BIT ON APPLE NOT BEING ABLE TO CONTROL EVERYTHING. THE OTHER THING IS THE HISTORIC LEGACY FEAR OF BRAINTREE. THEY ACTUALLY HAVE 10% OF GLOBAL ENTERPRISE SPEND. THEY PROCESS ABOUT $500 BILLION OF $5 TRILLION. SO WHEN YOU THINK ABOUT PAYPAL THROUGH BRAINTREE, SO WHEN YOU THINK ABOUT PEOPLE'S LIKE, OH, I DON'T USE PAYPAL ANYMORE. OH, HAVE YOU USED UBER TODAY? HAVE YOU USED TICKETMASTER FOR HAVE YOU BACK END BOOKING WHAT YOU'RE SAYING. YOU BET. AND THAT'S WHERE THEY'RE STARTING TO GET A BOTTOMING, A TROUGHING OF MARGINS AND THEY'RE STARTING TO REACCELERATE BECAUSE THEY'RE BRINGING DATA, THEY'RE BRINGING AI, THEY'RE BRINGING FASTER CHECKOUT, HIGHER CONVERSION AT CHECKOUT. SO NOW THEY CAN START TO CHARGE A LITTLE BIT MORE INTERESTING. >> OKAY. AND YOU OWN PAYPAL. >> WE OWN PAYPAL. IT'S A BIG POSITION PERSONALLY. AND FOR CLIENTS OKAY. >> LET'S GET TO THE STOCK YOU DON'T LIKE. THIS IS VERY MUCH TRADITIONAL FINANCE COMPANY TALKING ABOUT GOLDMAN SACHS. THE STOCK'S ACTUALLY RALLY BACK PRETTY NICELY. YES OVER THE PAST YEAR. SO LET'S GET TO WHY YOU DON'T LIKE IT. YOU THINK IT'S STILL TOO DEPENDENT ON TRADING PROFITS. BUT ISN'T THAT LIKE PART OF THE REASON YOU BUY GOLDMAN SACHS. >> YEAH. WELL LET ME LET ME CLARIFY. WE LIKE GOLDMAN SACHS. WE DON'T LIKE GOLDMAN SACHS AT TODAY'S PRICES OKAY. SO WE WOULDN'T PUT NEW MONEY TO WORK AT IN GOLDMAN SACHS. IT'S DOUBLED SINCE THE OCTOBER LOWS. IT'S RUN AHEAD OF A LOT OF ITS OPPORTUNITY. YOU KNOW A THIRD TO A HALF OF THEIR BUSINESS THOUGH ON ANY GIVEN QUARTER IS TRADING PROFITS. SO IT'S EAT WHAT THEY KILL. IF YOU HAVE LOW VOLATILITY OR YOU HAVE A MISS IN TRADING PROFITS, IT'S TOO LUMPY IN TERMS OF THE LONG TERM. AND THEY'RE GETTING A PREMIUM RIGHT NOW. THEY'RE TRADING ABOVE THEIR AVERAGE MULTIPLE. THEY'RE TRADING ABOUT 1.4 TIMES TANGIBLE BOOK PEAK CYCLE. MAYBE THEY CAN GO UP TO TWO TIMES TANGIBLE BOOK. BUT YOU KNOW ONE TIME IT'S A BARGAIN. THEY'RE KIND OF IN THAT, MIDDLE OF THE RANGE SPACE. SO AM I EXCITED TO PUT NEW MONEY TO WORK AFTER THEY'VE JUST DOUBLED IN A FEW FEW MONTHS, THE ANSWER IS NO ON A PULLBACK. WOULD WE GET INTERESTED? POTENTIALLY. BUT I HAVE TO BE A VERY NICE PULLBACK OKAY. >> AND WE CAN ALSO SAY AND THIS IS YOUR POINT NUMBER TWO THE THING THAT THEY TRIED TO DO TO BECOME LESS DEPENDENT ON TRADING PROFITS DIDN'T WORK OUT SO WELL. >> COMPLETE TRAINWRECK. SO, YOU KNOW THE MESSAGE IS BLURRY, THEY TRIED TO DO MARCUS FOR MANY YEARS. THEY TRIED TO DO APPLE CARD CREDIT CARD. THEY TRIED TO GET INTO THE CREDIT CARD BUSINESS. THAT'S NOT THEIR BREAD AND BUTTER, RIGHT, WHAT THEY NEED, PERHAPS TO DAVID SOLOMON CEO DAVID SOLOMON'S CREDIT. >> HE SAID HE SORT OF CUT THEIR LOSSES IN THAT. HE SAID IT WASN'T IT DIDN'T WORK. WE'RE DONE. >> YEAH. LEADERS ALWAYS COME TO THE CORRECT CONCLUSIONS. AFTER DRAWING, AFTER TRYING EVERYTHING ELSE. BUT LEAVING THAT ASIDE, I THINK THE MESSAGE IS GETTING CLEARER. AND THEY DO WANT TO SPEND MORE TIME BUILDING OUT THE REOCCURRING REVENUE. BUSINESSES LIKE THE ASSET MANAGEMENT, WHICH IS A RELATIVELY SMALL PORTION OF THEIR OVERALL BUSINESS, TO POINT ONE EVERY QUARTER, THEY GOT TO START FROM SQUARE ONE. >> ALL RIGHT. AND LET'S GET TO THE THIRD THING HERE THAT WE NEED A RATE CUT FOR. >> YEAH, THIS IS A KEY. THEY'VE GOT, PEERLESS INVESTMENT BANKING, FRANCHISE M&A, DEBT REFINANCING, IPOS. IT'S JUST BEEN A LITTLE BIT ANEMIC WITH SUCH AN AGGRESSIVE RATE HIKING CYCLE OVER THE LAST YEAR AND A HALF. 2021 WAS AN AMAZING 2223 ANEMIC. IT'S STARTING TO COME BACK IN FITS AND STARTS, BUT WE'RE REALLY GOING TO NEED TO SEE A CUT OR TWO CUTS FOR ANIMAL SPIRITS TO REALLY KICK IN THE M&A GAME, TO GET ON BOARDS, TO SAY, I GOT TO BUY THAT COMPANY BEFORE SOMEONE ELSE DOES. IT'S TIME TO REFINANCE ALL OF OUR DEBT. IT'S TIME TO DO EQUITY OFFERINGS. AND THEN FOR COMPANIES THAT WANT TO GO PUBLIC, NOW IS THE TIME ANIMAL SPIRITS ARE BACK. WE'RE NOT QUITE THERE YET. I THINK A CUT TOWARDS THE BACK HALF OF THE YEAR AND THAT MAY TAKE A QUARTER, A QUARTER AND A HALF. AND THAT'S WHY WE'RE PROBABLY A PASS ON GOLDMAN FOR NEW MONEY AT THESE LEVELS. BUT ON A PULLBACK WE WOULD CONSIDER IT HAVE TO BE MEANINGFUL PULLBACK THOUGH. >> GOTCHA OKAY. SO PULLBACK WE TALK ABOUT YOU KNOW WHAT COULD BE THE UPSIDE CASE HERE. THE OTHER ONE WOULD BE AS YOU MENTIONED IF THERE ARE RATE CUTS. >> YEAH. AND THEY COULD COME SOONER THAN WE EXPECT. WE SAW THE JOBLESS CLAIMS YESTERDAY WERE HIGHER THAN EXPECTED. AND CHAIRMAN POWELL WAS VERY EXPLICIT ABOUT THAT. YES. WE'RE WATCHING THE INFLATION NUMBERS. HE'S KIND OF IN THE CAMP THAT WE ALL ARE WAITING FOR THOSE OWNER EQUIVALENT RENTS TO COME DOWN. THEY'VE JUST BEEN STUBBORN. WE ALL LOOK AT ZILLOW RENTS AND EVERYTHING ELSE. BUT HE DID MAKE AN EXPLICIT NOTE ABOUT THE LABOR MARKET BECAUSE THAT'S THE SECOND PART OF THE MANDATE. AND WE'RE SEEING SOME SIGNS THAT MAYBE THAT'S SOFTENING A LITTLE BIT, WHICH COULD GIVE THEM COVER TO AT LEAST DO ONE CUT. YOU KNOW, THE EARLIER THEY GO, THE LESS THEY'RE GOING TO HAVE TO DO. IF THEY WERE TO GO OVER THE SUMMER, WHICH IS LOWER PROBABILITY, MAYBE THEY ONLY HAVE TO DO 1 OR 2 IF THEY WAIT LONGER UNTIL MAYBE AFTER THE ELECTION, IT MIGHT REQUIRE MORE CUTS. >> I LOVE IT, TOM. YOU SNUCK IN SOME MACRO STUFF FOR US, WHICH WE LOVE. THANKS SO MUCH. ALL RIGHT, SO LET'S SUM UP WHAT YOU'RE TELLING INVESTORS HERE. BASICALLY, YOU SAY BUY PAYPAL ON PERFORMANCE UNDER NEW LEADERSHIP. THE PLAY ON VALUE ADD MARGIN ACCELERATION AND HEALTHY GENERATION OF FREE CASH FLOW. ON THE OTHER SIDE YOU SAY FOR NOW, AVOID GOLDMAN SACHS IS A LITTLE PRICEY AND IS DEPENDENT ON TRADING PROFITS. IT'S PLAYING CATCH UP ON ASSET MANAGEMENT AND IT IS WAITING FOR THOSE RATE CUTS TO IGNITE CAPITAL MARKETS. THANKS, TOM. THANKS FOR HAVING ME. YOU HAVE A GREAT WEEKEND AND THANK YOU SO MUCH FOR WATCHING. GOODBYE OR GOODBYE. BE SURE TO TUNE BACK IN NEXT WEEK FOR ALL NEW EPISODES AT 3:30 P.M. EASTERN. >> IT'S BEEN ANOTHER EYE CENTRIC EARNINGS SEASON AS INVESTORS TRACK THE NEXT BEST MOVE IN THE EYE TRADE. BUT WHAT IF INSTEAD OF JUST INVESTING IN AI TRADERS COULD ALSO USE AI TO POWER OTHER PUBLIC AND PRIVATE INVESTMENT STRATEGIES? WE'RE HERE TO DISCUSS IS KAIJU WORLDWIDE CEO AND GLOBAL CHAIR RYAN PARNELL. RYAN, GOOD TO HAVE YOU HERE. THANKS >> THANKS FOR HAVING MBACK. AND IT'S NICE TO BE HERE IN PERSON THIS TIME. >> SO, RYAN, LET ME ASK YOU, MAYBE JUST TO START, YOUR FOCUS IS PREDICTIVE AI. CORRECT? RIGHT. AS OPPOSED TO GENNAI, WHICH WE SPEND A LOT OF TIME TALKING ABOUT IN THIS SHOW. RIGHT. AND ALL KINDS OF COMPANIES SPENDING A LOT OF TIME, MONEY AND EFFORT THERE. MAYBE START THERE. RYAN, EXPLAIN TO VIEWERS KIND OF THE DIFFERENCES BETWEEN THE TWO AND THEN HOW KAIJU IS, IS REALLY INTEGRATING THAT TECH. >> RIGHT. SO I THINK, AS YOU SAY, THE AI THAT MOST PEOPLE ARE FAMILIAR WITH IS GENERATIVE AI, WHERE YOU'RE TAKING A NON-DEFINED NON-STAT DATA SET. IN MOST CASES, THE INTERNET, WHERE YOUR OWNERSHIP OF THE DATA TO TRAIN THE MODELS ISN'T NECESSARILY WELL DEFINED. YOU'VE GOT FREE USE VERSUS COPYRIGHT INFRINGEMENT, AND YOU'RE TRYING TO ANSWER LIKE ANY QUESTION THAT SOMEBODY COULD ANSWER AND OR ASK AND THEN CREATE SOMETHING NEW OUT OF IT. PAINT ME A PICTURE, WRITE ME AN ESSAY, MAKE A EUCERA, MAKE ME A MOVIE, AND YOU GET PROBLEMS WITH HALLUCINATION THAT COME WITH THAT. I MEAN, NO QUESTION, IT'S VERY POWERFUL TECHNOLOGY WITH A BRIGHT FUTURE. PREDICTIVE AI IS USING EITHER EASILY PURCHASED OR COLLECTED AT SOURCE DATA FOR US PRICE, TIME AND QUANTITY. FOR EXAMPLE. AND IT'S TRYING TO ANSWER A SPECIFIC QUESTION. SO IN OUR CASE IT'S TRYING TO IDENTIFY PATTERNS AND PRICE TIME AND QUANTITY THAT IMMEDIATELY PRECEDE A PRICE ACTION THAT WE WANT TO TAKE ADVANTAGE OF. AND WE SEE THIS OVER AND OVER AGAIN. AND THERE'S A REASONABLE AMOUNT OF CERTAINTY AND WE CAN USE IT TO THAT END. >> AND SO BASICALLY IT'S ALL IT'S NOT FUNDAMENTAL ANALYSIS AT ALL. IT IS JUST BASED ON. SO IT'S EFFECTIVELY PREDICTIVE AI BASED ON TECHNICAL ANALYSIS TO SOME EXTENT. >> IF YOU WANT TO SHARE THE SECRET SAUCE RYAN. >> YEAH, YEAH I KNEW THAT WAS COMING, IF YOU THINK ABOUT IT, EVERY POSITIVE INVESTMENT DECISION RESULTS IN A TRANSACTION, RIGHT. IT DOESN'T MATTER WHAT THE ASSET CLASS IS. YOU KNOW, REAL ESTATE DERIVATIVES, EQUITIES, OPTIONS. YOU KNOW, YOU DO YOUR ANALYSIS WHETHER IT'S FUNDAMENTAL TECHNICAL, THERE'S AN INVESTMENT COMMITTEE. AND AT THE END OF THE DAY, IF IT'S GO AHEAD, YOU'RE GOING TO AFFECT A TRANSACTION. AND WE CAN SEE THE PATTERN IN THE TRANSACTION OFTEN NOT ALWAYS BUT FOR SPECIFIC TRANSACTIONS YOU CAN WITH SOME DEGREE OF CERTAINTY REVERSE ENGINEER THE INVESTMENT DECISION THAT RESULTED IN THE TRANSACTION. AN EXAMPLE WOULD BE IF YOU'RE WATCHING ROTATION VERSUS DISTRIBUTION, THEY'RE VERY DIFFERENT INTENTIONS. AND SO THEY'RE VERY DIFFERENT PATTERNS. PANIC LOOKS DIFFERENT. YOU KNOW BUYING QUIETLY BECAUSE THERE'S YOU HAVE SOME CERTAINTY THERE'S GOING TO BE A POSITIVE EARNINGS. AND YOU DON'T WANT TO DISTURB PRICE VERSUS BUYING INDISCRIMINATELY BECAUSE YOU THINK IN FIVE YEARS THIS STOCK IS GOING TO BE MORE POSITIVE. DIFFERENT PATTERNS, DIFFERENT OUTCOMES. IF YOU CAN IDENTIFY THEM THEN YOU CAN PREDATE ON THEM. >> I'M INTERESTED. SO YOU KNOW IT'S INTERESTING RIGHT. YOU SO YOU FOUND SOME TASKS WHERE YOU THINK, OKAY, PREDICTIVE AI IN MY WORLD INVESTING MAKES SENSE. ARE THERE ONES WHERE YOU THINK, YOU KNOW WHAT THIS TECH, THIS TECH IS NOT UP TO THAT TASK ONES YOU WOULDN'T WANT TO SEE IT APPLY TO. >> YEAH, SURE. ABSOLUTELY OBVIOUSLY ANYTHING WITH A LONG TERM TIME FRAME I DON'T CARE IF IT'S HUMAN OR MACHINE. THERE'S NO PERSON, THERE'S NO SYSTEM, THERE'S NO PREDICTIVE AI. THAT'S GOING TO TELL YOU WITH ANY CERTAINTY WHERE A STOCK IS GOING TO BE IN SIX MONTHS FROM NOW. AND ANYONE WHO SAYS DIFFERENT IS JUST TRYING TO SELL YOU SOMETHING. SO IT'S NOT WELL-SUITED TO THAT GLOBAL MACRO. YOU KNOW, PUTIN INVADES UKRAINE. WHAT WILL BE THE GLOBAL ECONOMIC RESPONSE TO THAT OVER THE NEXT 12 MONTHS? THERE'S NO SYSTEM THAT'S GOING TO DO THAT IMMEDIATE SHORT TERM PREDICTION ON PRICE ACTION IN EQUITIES, DERIVATIVE CURVES. YES, IT'S VERY GOOD AT THAT. BUT THE LONGER TERM STUFF NO. AND I DON'T SEE THAT CHANGING. >> SO YOU MADE A COMMENT NEAR THE BEGINNING WHEN YOU DREW THE CONTRAST WITH GENERATIVE AI. AND IT SOUNDS LIKE YOU'RE A LITTLE BIT SKEPTICAL OF THAT. MODELS THE WAY THAT IT COLLECTS INFORMATION OR ITS OWNERSHIP OR LACK THEREOF OF THE DATA. CORRECT. SO I'M CURIOUS YOUR VIEW ON WHETHER YOU THINK THERE SHOULD BE RULES AROUND THOSE KINDS OF THINGS WHEN IT COMES TO GENERATIVE AI? >> WELL, I MEAN, THAT'S A IT'S A BIG QUESTION TO ASK AND ANSWER IN TERMS OF THE CAPACITY TO POTENTIALLY ANSWER ANY QUESTION THAT YOU MIGHT ASK. NO, IT NEEDS TO HAVE THIS LATITUDE. THESE LARGE LANGUAGE MODELS ARE ENORMOUS AND OBVIOUSLY INCREDIBLY COSTLY TO RUN BECAUSE YOU CAN'T DETERMINE WHAT SOMEONE'S GOING TO NEED, REQUIRE OR WANT TO REVIEW. IT CAN BE INFORMATION COLLECTION. IT CAN BE CREATION. SO YOU'RE GOING TO HAVE TO ALLOW IT A LOT OF LATITUDE WITH PREDICTIVE AI, WHETHER IT'S FLYING A PLANE OR DRIVING A BOAT OR TRADING STOCK, YOU NEEDED TO DO ONE SPECIFIC TASK WITH A HIGH DEGREE OF CERTAINTY AND SO THE HARD LANDSCAPE SURROUNDING THOSE DATA IS IMPORTANT. AND THANKFULLY, THAT ALIGNS WITH THAT TYPE OF TECHNOLOGY. BUT FOR THE LARGER SYSTEMS, I DON'T SEE HOW YOU CONSTRAIN THE DATA AND ACHIEVE THE SAME, SAME PERFORMANCE. >> RYAN, THANKS FOR COMING IN. >> IT'S MY PLEASURE. THANK YOU. >> APPRECIATE IT. COMING UP, WE'RE BREAKING DOWN WHAT TO EXPECT FROM BIG BOX RETAIL EARNINGS THAT'S COMING NEXT WEEK. AND THE BEST WAYS TO INVEST IN THAT SECTOR THAT'S IN TODAY'S PLAYBOOK. STAY TUNED. MORE MARKET DOMINATION ON THE OTHER SIDE. >> WELCOME BACK. WE'RE LOOKING TO HOW TO NAVIGATE THE RETAIL SECTOR WITH TODAY'S YAHOO FINANCE INVESTOR PLAYBOOK. ANOTHER BIG WEEK OF EARNINGS SEASON HAS JUST WRAPPED UP, BUT THERE ARE STILL A HANDFUL OF BIG BOX RETAILERS ON DECK. AND JOINING US NOW TO DISCUSS WHICH COMPANIES ARE BEST POSITIONED AS WE APPROACH EARNINGS, EARNINGS RELEASES IN THE NEXT TWO WEEKS, IS CHRIS ARGUS RESEARCH SENIOR ANALYST AND CHAD MORGAN LANDER, SENIOR PORTFOLIO MANAGER AT WASHINGTON CROSSING ADVISORS. WELCOME, GUYS BOTH TO THE SHOW. CHAD MAYBE I'LL START WITH YOU, MAYBE THE BIG PICTURE, CHAD, YOUR TAKE ON THE CONSUMER AND WHERE THEY ARE RIGHT NOW. IT WAS JUST SORT OF INTERESTING TO WALK THROUGH THIS EARNINGS SEASON AND TRY TO READ THE TEA LEAVES, JUST WHERE YOU THOUGHT THEY WERE, SOME EXECUTIVES. I ACTUALLY WAS IMPRESSED WHEN I HEARD SOME LIKE, LIKE UBER AND LYFT AND HOW GENERALLY OPTIMISTIC THEY SOUND THE CONSUMER. BUT WHAT WAS YOUR TAKE SO BROAD BASED? >> I THINK THAT THE CONSUMER IS QUITE STRONG, THEY'RE WELL, THEY'RE THEY'RE GOT A LOT OF TAILWIND REGARDING SAVINGS, WAGE INFLATION HAS BEEN GOING HIGHER. THAT BODES WELL FOR CONSUMPTION, AS WELL. IT'S A FULL EMPLOYMENT PICTURE HERE IN THE UNITED STATES, SO FOR US, WE THINK THAT BODES WELL OVERALL IN AGGREGATE FOR BIG BOX RETAILERS. OF COURSE, THERE ARE CERTAIN RETAILERS THAT WILL DO MUCH BETTER. AND THEN THERE ARE OTHERS THAT ARE GOING TO LAPSE, DUE IN PART BECAUSE OF THE BIG POST COVID SURGE, THE NORMALIZATION CYCLE IS AROUND THE CORNER. >> WELL, MAYBE ON THAT FRONT, CHRIS, I WANT TO BRING YOU IN. YOU KNOW, I THINK THAT THE WALMART'S THE WORLD MORE SQUARELY FIT INTO OUR IDEA OF WHAT VALUE THE VALUE PROPOSITION IS RIGHT NOW. MAYBE WE STRUGGLE A LITTLE BIT MORE WITH THE HOME IMPROVEMENT RETAILERS, WHICH I KNOW YOU COVER AS WELL. TALKING ABOUT HOME DEPOT AND LOWE'S, I THINK YOU HAVE A BUY RATING ON BOTH. HOW HOW DO THEY FIT IN INTO THIS CURRENT CONSUMER ENVIRONMENT? >> YEAH. AND I THINK THE MULTI YEAR STRATEGY IS THAT THERE IS A HUGE PORTION OF THE POPULATION WHO HAS LOCKED IN VERY LOW MORTGAGE RATES. WE'VE SEEN IN THE HOUSING NUMBERS THAT THEY'RE NOT MOVING. SO MAYBE A LOT OF PEOPLE YOU ALSO HAVE BABY BOOMERS WHO ARE AGING IN PLACE, AND YOU HAVE A LARGE NUMBER OF MILLENNIALS WHO, YOU KNOW, ARE GOING TO BUY A HOUSE, BUT IT'S PROBABLY NOT GOING TO BE THE HOUSE THEY DREAMED OF. AND I THINK ALL OF THAT SPELLS HOME IMPROVEMENT. THE BABY BOOMERS ARE GOING TO UPGRADE HOMES SO THAT THEY THEY CAN STAY LONGER, WHETHER IT'S SHOWERS OR BATHS OR, OR RAILINGS OR OTHER THINGS, A LOT OF PEOPLE WHO ARE SAYING, YOU KNOW, WE'VE GOT A LOW MORTGAGE, WE'RE GOING TO STAY IN OUR HOUSE, THEY'RE PROBABLY GOING TO DO KITCHENS AND BATHROOMS AND ALL KINDS OF THINGS TO MAKE THEIR EXISTING HOME MORE LIVABLE. SO, YOU KNOW, THERE MAY BE A COUPLE NEAR-TERM CHALLENGES, BUT BUT LONGER TERM, I THINK, I THINK IT MAKES A LOT OF SENSE. >> WELL, THAT'S WHAT I WANTED TO FOLLOW UP ON, CHRIS, YOU KNOW WHAT YOU'RE DESCRIBING THAT SORT OF LONGER TERM TREND ARE WE GOING TO SEE THAT IN THE UPCOMING EARNINGS, OR IS THAT MORE JUST SOMETHING INVESTORS SHOULD KIND OF RIDE OUT AND WAIT FOR? >> I MEAN, THEY'RE GOOD QUALITY BUSINESSES. THEY THEY PAY DIVIDENDS, AND THE THING IS, I DON'T THINK WE KNOW EXACTLY WHEN THE TURN IS GOING TO BE. AND THE OTHER THING IS, LIKE ALL WE NEED TO SEE IS A LITTLE BIT OF SIGN OF AN INFLECTION. SO I THINK THE LONG TERM THESIS MAKES A LOT OF SENSE LOOKING AT THE, YOU KNOW, HARVARD'S LEADING INDICATOR OF REMODELING ACTIVITY. IT'S PROBABLY LATER IN THE YEAR BEFORE WE BEFORE WE SEE A TURN THERE. BUT I MEAN, I THINK IT'S A THESIS THAT MAKES A LOT OF SENSE. AND I THINK THE BUSINESSES ARE, YOU KNOW, ARE GOING TO WEATHER THAT. AND IF THE CHANGE, WHETHER IT'S FROM THE FED OR SOMEWHERE ELSE, HAPPENS A LITTLE BIT EARLIER, YOU KNOW, YOU'RE THERE WITH GOOD QUALITY BUSINESSES RATHER THAN CHASING. >> CHAD, I WANT TO BRING YOU IN HERE AS WELL. GET YOUR YOUR TAKE ON HOME DEPOT. IT SOUNDS CHAD LIKE ABOUT THAT NAME. YOU'RE SAYING, LISTEN, SOME SHORT TERM HEADWINDS, BUT LONGER TERM SMART PLACE TO BE, RIGHT? >> AND I COMPLETELY AGREE WITH CHRIS WHEN IT COMES TO HOME DEPOT. WE OWN IT IN OUR RISING DIVIDEND PORTFOLIO. WE'VE OWNED IT FOR OVER FIVE YEARS. IT HAS VERY LITTLE DEBT. IT IS CONSISTENTLY GROWING AND WHEN IT COMES TO PROFITABILITY, IT'S IT HAS A HIGH RETURN ON INVESTED CAPITAL, AND LIKE CHRIS, I ECHO THAT YOU WANT TO OWN THIS AS A CORE POSITION OVER THE NEXT 3 TO 5 YEARS. WHEN THAT TURN COMES IN, THE HOUSING MARKET, THIS STOCK WILL GAP HIGHER. SO WE WOULD BE A BUYER WITHIN THAT, WITHIN, WITH WITH HOME DEPOT, LET'S CHAD LET'S GET TO THEN THE OTHERS THOUGH THE WALMART'S AND TARGETS THAT ARE COMING UP AS WELL. DO YOU I'LL TAKE YOU FIRST ON THIS. CHAD. DO YOU LIKE ONE OVER THE OTHER? DO YOU THINK THOSE ARE BOTH GOING TO PROVIDE, A GOOD OPPORTUNITY FOR INVESTORS, ESPECIALLY WITH THE CATALYST OF THE UPCOMING EARNINGS AS WELL? >> YEAH, WE LIKE AND WE FAVOR WALMART, WE HAVE IT IN BOTH OUR RISING DIVIDEND AND ALL CAP PORTFOLIO. WE'VE OWNED IT FOR OVER, OVER SEVEN YEARS, WE BELIEVE THAT THEIR THEIR DIVERSIFIED IN REGARD TO OMNICHANNEL, HAS BEEN QUITE SUCCESSFUL. THEY'RE NOW ABLE TO COMPETE, I BELIEVE HEAD ON WITH AMAZON. SO WE FAVOR THAT ONE OVER TARGET. IF THERE IS A SOFTENING WITHIN THE CONSUMER CONSUMER OR CONSUMPTION. WE THINK THAT WALMART WILL BE ABLE TO TAKE MARKET SHARE FROM TARGET. >> CHRIS, I WANT TO GET YOU BACK IN HERE. GET YOUR THOUGHTS ON THOSE TWO NAMES AS WELL. HOW ARE YOU THINKING ABOUT WALMART, WALMART AND TARGET? >> YEAH, I LIKE WALMART. I THINK THEY'VE BUILT A TREMENDOUS AMOUNT OF GOODWILL. OVER THE LAST SEVERAL MONTHS AND LOWERING THE PRICES OF THINGS LIKE FRENCH BREAD AND ROTISSERIE CHICKEN AT TIMES, WHERE PEOPLE ARE CONCERNED ABOUT PRICES, YOU KNOW, THEY LOOK TO WALMART AS A PLACE THAT CAN HELP, THE OTHER THING WE'VE SEEN IS THAT YOU KNOW, HOUSEHOLDS THAT MAKE OVER $100,000 A YEAR ARE GOING TO WALMART. SO WHEN THIS CHANGE OR WHEN THIS LITTLE BIT OF TURN WITH THE CONSUMER HAPPENS, WALMART IS GOING TO TRY TO RETAIN THOSE CUSTOMERS, THEY'RE INVESTING IN THEIR DISCRETIONARY STUFF, THEIR HOME PRODUCTS AND THAT SHOULD BE GOOD FOR THEM, YOU KNOW, THE QUESTION, I THINK CLIENTS OTHERS ASK IS, YOU KNOW, WE SEE THE CASE FOR WALMART RIGHT NOW, BUT WHAT'S THE NEXT STEP, WHETHER IT'S 3 OR 6 MONTHS DOWN THE ROAD? AND I THINK IT'S A LITTLE BIT SIMILAR TO WHAT WE WERE SAYING WITH WITH HOME DEPOT, TARGET HAS, MORE OF A DISCRETIONARY BUSINESS. AND, YOU KNOW, I THINK WHEN WE SEE THAT TURN, I MEAN, IN THE MEANTIME, THEY STILL HAVE, YOU KNOW, STAPLES AND THEY STILL HAVE DECENT TRAFFIC AND THEY'RE STILL, YOU KNOW, APPEALING TO PEOPLE WHO WANT CONVENIENCE. BUT I THINK ONCE THEIR, THEIR HOME AND APPAREL COMES BACK IN A STRONGER WAY, WE SHOULD SEE THAT GO RIGHT TO MARGINS. >> CHRIS. CHAD, THANK YOU GUYS BOTH FOR JOINING THE SHOW TODAY. HAVE A GREAT WEEKEND. >> THANK YOU. THANKS >> WHILE WRAPPING UP TODAY'S MARKET DOMINATION, DON'T GO ANYWHERE. WE'VE GOT YOU COVERED WITH ALL THE ACTION FOLLOWING THE CLOSING BELL. STAY TUNED FOR MARKET DOMINATION OVERTIME . >> HERE WE HAVE THE CLOSING BELL ON WALL STREET. NOW IT'S MARKET DOMINATION OVERTIME. JARED, YOU'RE GOING TO JOIN US IN A FEW MINUTES TO TALK ABOUT TODAY'S ACTION, BUT LET ME GET YOU UP TO SPEED ON WHAT HAPPENED TODAY. SPONSORED BY TASTYTRADE. THE DOW MAKING IT EIGHT SESSIONS IN A ROW HIGHER HERE. WE GOT THE SEVEN DAY CHART RIGHT HERE SHOWING WE'VE SEEN OVER THAT PERIOD OF TIME. BUT HAS BEEN QUITE A RUN DOW HERE. THE S&P 500 TREADING WATER HERE TODAY ENDING THE SESSION A LITTLE BIT HIGHER. THE NASDAQ THOUGH STILL IN THE RED BUT JUST VERY MARGINALLY ON THE DAY WE HAD A CONSUMER CONFIDENCE NUMBERS THIS MORNING. SENTIMENT COMING IN AT A SIX MONTH LOW EVEN AS EXPECTATIONS FOR INFLATION TICKED UP. AND WE HAD A LOT OF FED SPEAK, A LOT OF FED OFFICIALS TODAY SORT OF INDICATING THAT THEY ARE CONTENT TO HOLD ON RATES FOR NOW. SO IT'S BEEN AN INTERESTING PERIOD OF TIME. LET'S TAKE A LOOK A LITTLE BIT MORE GRANULARLY AT WHAT HAPPENED IN THE SESSION. ENERGY STOCKS AND CONSUMER DISCRETIONARY. THE BIGGEST DRAGS IN THE S&P 500. STAPLES AND FINANCIALS RISING THE MOST AND WITH THAT STRENGTH IN THE DOW. LET'S SEE WHAT HELPED GAIN THE MOST TODAY. GOING TO EQUAL WEIGHT IT. SO WE CAN SEE HERE MCDONALD'S RISING AFTER REPORTS THAT IT WAS GOING TO UNVEIL A $5 VALUE MENU. SO THOSE SHARES UP BETTER THAN 2.5% THREE M SHARES VERIZON AND AMEX ROUNDING OUT SOME OF THE OTHER TOP MOVERS. THERE BUT WANT TO GO BACK OVER AND TAKE A LOOK AT OUR TRENDING TICKERS, BECAUSE THERE'S ONE STOCK I WANT TO POINT OUT IN PARTICULAR THAT'S A COMPANY CALLED ZEEKR, WHICH IS A HIGH END CHINESE AUTO MANUFACTURER. HERE IT IS HERE HAVING ITS INITIAL PUBLIC OFFERING TODAY. IT'S OWNED BY ZHEJIANG GEELY HOLDING, BUT IT IS THE HIGHER END OPERATION WITHIN THAT. THIS IS THE BIGGEST CHINESE, DEBUT IN THE U.S. SINCE 2021. THESE ARE THE AMERICAN DEPOSITS, THREE SHARES OF THE CHINESE COMPANY AND THE SHARES SELLING 21 MILLION SHARES ALTOGETHER, OPENING AT 26 TODAY AND THEN RISING, RISING AS MUCH AS 40% AT ONE POINT. BUT FINISHING THE DAY UP ABOUT 34. JOSH. >> JULI THE DOW FINISHED OFF A STRONG WEEK WITH ITS EIGHTH STRAIGHT DAY OF GAINS, AND HERE, WITH SOME OF TODAY'S TRADING TAKEAWAYS, IS JARED BLIKRE. JARED >> YES. THANK YOU. I THOUGHT WE'D FOCUS ON THE PEOPLE'S INDEX HERE. LET'S GO TO THE WI-FI INTERACTIVE WHERE I'M GOING TO SHOW A YEAR TO DATE CHART. AND I'LL PUT SOME CANDLESTICKS ON SO YOU CAN SEE THE EIGHT DAYS HERE. AND THAT IS ALSO THE NUMBER OF TRADING DAYS THAT WE'VE HAD IN MAY. SO EVERY SINGLE DAY HAS BEEN GREEN FOR THE DOW. THIS IS A RECORD HIGH RIGHT THERE. AND WE ARE NOW LESS THAN 1% AWAY. PROBABLY A CINCH THAT WE'LL GET THERE. BUT THE QUESTION IS CAN WE GET MEANINGFULLY BEYOND THAT WHEN WE ARE AT THESE LOWS? A COUPLE OF WEEKS AGO, I SAID THERE'S GOING TO BE MORE SEASONAL WEAKNESS POTENTIALLY INTO JUNE. BUT WE WERE DUE FOR A BOUNCE. WE GOT THE BOUNCE. SO WHAT'S THE NEXT CATALYST? I GOT TO THINK IT'S GOING TO BE CPI. CPI PROBABLY MAKES, MAKES OR BREAKS NEXT WEEK AND PROBABLY THE FATE OF THIS RALLY, WHETHER IT CONTINUES ON OR WHETHER IT REVERSES, PROBABLY IN ITS HANDS TOO. >> AND I KNOW YOU'RE ALSO TAKING A LOOK AT VIX. YES THE VIX OF THE VIX. >> THE VIX OF THE VIX I DO LIKE TO MONITOR A FEW DIFFERENT THINGS HERE. SO WE TALK ABOUT THE VIX WHICH IS THE FEAR INDEX. BUT WE ALSO HAVE THE VIX OF THE VIX. AND THE POINT OF VOLATILITY. AND I'LL SHOW YOU BOTH HERE ON THE WI-FI INTERACTIVE. FIRST HERE IS THE VIX. HERE IS YEAR TO DATE. AND YOU CAN SEE WE'RE AT BASICALLY THE LOWS OF THE YEAR. AND NOW HERE'S THE VIX OF THE VIX. WE ARE AT MULTI-YEAR LOWS I'LL PUT A FIVE YEAR CHART ON HERE. THIS IS JUST TO SAY THAT COMPLACENCY IS VERY HIGH RIGHT NOW. IT DOESN'T MEAN THAT WE'RE GOING TO NECESSARILY SEE A SPIKE WHICH WOULD MEAN THAT STOCKS ARE ARE SELLING OFF RATHER AGGRESSIVELY. BUT NEVERTHELESS, WE HAVE TO BE MINDFUL. YOU WANT TO BUY PROTECTION WHEN IT'S CHEAP, WHICH IS RIGHT NOW WHEN WE'RE AT ALL TIME HIGHS. THAT'S THE TIME TO BE THINKING ABOUT PROTECTION, THE OTHER POINT I WANTED TO MAKE WAS ABOUT FUTURES. AND IF WE CAN GO TO THE WI-FI. OH, WE'RE ALREADY ON THE WI-FI INTERACTIVE HERE, THIS IS WHAT'S HAPPENED TODAY IN FUTURES. I WANT TO CHECK OUT THIS WEEK, COPPER HAS JUST BEEN ON FIRE. SO HAS GOLD, SO HAS SILVER. AND I'M ACTUALLY GOING TO SKIP RIGHT TO THE MINERS HERE. THIS IS A FIVE DAY PRICE ACTION. IN HERE WE HAVE INDIVIDUAL MINERS. WE ALSO HAVE SOME OF THE UNDERLYING ETFS. SO COPPER COPPER IS AN ETF THAT INVESTS IN COPPER. SO IT'S KIND OF LIKE USA OR USO WHICH IS OIL. FOR OIL WE ALSO HAVE GLD. BUT THE MINERS OF THESE THINGS ARE FACING A MULTIPLE. SO THEY'RE HIGHER BETA. HERE'S COBB X 2.8. THAT'S AN ETF OF MINERS. THAT'S BASICALLY ALMOST DOUBLE OF WHAT THE UNDERLYING COPPER IS DOING. GDX I'M GOING TO PUT THIS CHART UP. THAT'S UP 5% THIS WEEK. CHECK OUT THE YEAR TO DATE. GOLD HAS BEEN ON A NICE RUN HERE. AND YOU CAN SEE OVER THE LAST THREE MONTHS GDX UP 30. SO THESE ARE IF YOU LOOK AT A LONG TERM CHART OF SOME OF THESE MINERS, VERY, VERY MUCH A MEAN REVERTING ASSET. AND THAT'S KIND OF BECAUSE COMMODITIES ARE THEMSELVES. IT'S NOT SOMETHING YOU BUY AND HOLD FOR TEN YEARS, BUT YOU CAN USE IT TO TRADE IN AND OUT OF POSITIONS. AND WITH THE FED ON HOLD HERE WITH THE I PLAY GOOSING COPPER, I GOT TO THINK THAT THESE GUYS HAVE MORE ROOM TO RUN. >> INTERESTING. >> AND COPPER IS ALSO REALLY INTERESTING BECAUSE OFTEN IF YOU SAW THAT CHART A LOT OF TIMES, JARED, YOU WOULD THINK, OKAY, WELL THAT'S TELLING ME GOOD NEWS ABOUT ECONOMIC GROWTH OR CHINA. YEAH. BUT TO YOUR POINT, YOU'LL HEAR ECONOMISTS SAYING THAT ACTUALLY SOMETHING ELSE IS GOING ON. THEY'LL CALL IT KIND OF LIKE A PERFECT STORM OF SORT OF TIGHT MARKET AND THESE KIND OF UNCOMMON, UNUSUAL SUPPLY CONSTRAINTS. >> YEAH. >> I THINK THE, THE AI STORY IS FINALLY BROADENING ENOUGH THAT WE SEE IT, UTILITIES IS ANOTHER GREAT EXAMPLE. UTILITIES WAS THE BEST PERFORMING SECTOR THIS WEEK. WHY IS THAT? BECAUSE IT TAKES ELECTRICITY TO RUN THESE DATA CENTERS. IT TAKES COPPER WIRING, YOU KNOW, FOR THE WIRES TO OR FOR THE MEMORY CHIPS FOR THE MICROPROCESSORS. SO YOU PUT ALL THIS TOGETHER. WE'RE SEEING BASIC MATERIALS. IF WE CAN GO BACK TO THE WI-FI INTERACTIVE, I'M GOING TO SHOW YOU A YEAR TO DATE, CHART OF ALL THE SECTOR ACTION HERE. HERE'S MATERIALS UP 7.4. HERE'S UTILITIES UP 12.5, BOTH OF THOSE ARE HIGHER THAN TECH, WHICH IS UP 6.8. SO I THINK THAT SAYS SOMETHING ITSELF. >> WELL, AND WHAT REMAINED, WHAT CONTINUES TO BLOW MY MIND IS THAT THAT'S IN THE FACE OF HIGHER FOR LONGER RATE PERCEPTIONS, WHICH USUALLY HURTS UTILITIES. SO SPEAKING OF RATES, I WANT TO MENTION SOMETHING ELSE THAT I KNOW YOU'VE BEEN WATCHING, WHICH IS THE INFLOWS WE'VE BEEN SEEING INTO THE BOND MARKET. >> YES, SO WE'VE SEEN THE GREATEST INFLOWS OVER THE LAST WEEKEND TO THE BOND MARKET, SINCE 2021. I THINK A LOT OF THIS HAS TO DO. MICHAEL HARTNETT FROM BANK OF AMERICA B OF A WAS WRITING ABOUT THIS IN HIS WEEKLY MISSIVE ABOUT FLOWS. THAT'S WHERE I GOT THIS STAT FROM, THE BOND MARKET HAS NOT BEEN LOVED OVER THE LAST FEW MONTHS SINCE IT BECAME A QUESTION OF WHETHER OR NOT THE NO LANDING SCENARIO MIGHT BE FRONT AND CENTER. THAT IS WHAT IF THE FED HAS TO RAISE RATES AGAIN? WELL, I THINK THIS LAST WEEK, THE POWELL PRESS CONFERENCE THAT WE HAD LAST WEEK, OR WAS IT THIS WEEK, I HAD TO THINK THERE IT WAS LAST WEEK. I THINK SINCE THAT POWELL PRESS CONFERENCE, THE THINKING IS NO LANDING IS FINALLY ON THE SHELF. WE DON'T HAVE TO WORRY ABOUT THE FED RAISING RATES ANYMORE. AND THAT'S WHY WE'VE SEEN THIS HUGE INFLUX INTO BONDS. ONCE AGAIN, IT'S JUST SAFE. IT'S SAFE TO BE SAFE IF YOU THINK ABOUT IT. >> WELL VOLATILITY AND VOLATILITY. IT'S SAFE TO BE SAFE. >> YES. THE INTERACTIVE OF THE INTERACTIVE WE GOTTA DERIVATIVE OF THE DERIVATIVE. >> YEAH. THANKS. >> THANK YOU JARED. APPRECIATE IT. >> STOCK CLOSING THE DAY MIXED. AS INVESTORS GET SET FOR A BIG WEEK OF ECON DATA AHEAD. THAT COULD HELP PUSH THE FED IN THEIR FINAL MILE BACK TO 2% INFLATION. JOINING US NOW IN STUDIO TO DISCUSS ALL THIS AND THE PATH AHEAD IS BILL ZACKS BRANDYWINE GLOBAL PORTFOLIO MANAGER. BILL GOOD TO HAVE YOU ON SET. >> GLAD TO BE HERE. >> SO LET'S JUST START THERE BILL. SO ECONOMIC CALENDAR NEXT WEEK. YOU GOT CPI ON DECK JARED WAS JUST TALKING ABOUT IT. HOW IMPORTANT IS THAT FOR THE MARKET BILL. AND WHAT DO YOU EXPECTING I MEAN IT IS VERY IMPORTANT. >> AND I'M NOT SO MUCH FOCUSED ON THAT PARTICULAR PRINT, BUT WHAT I'M FOCUSED ON IS WILL THE FED NEED TIGHTER FINANCIAL CONDITIONS TO GET INFLATION DOWN TO 2? THEY DON'T SEEM TO BE TOO CONCERNED ABOUT LOOSE FINANCIAL CONDITIONS RIGHT NOW. AND IT USED TO BE SELL IN MAY AND GO AWAY. THAT'S NOT LOOKING SO GOOD THIS YEAR. SO MY BIG QUESTION IS, WHATEVER THE INFLATION PRINT IS, NEXT WEEK ARE THEY GOING TO NEED TIGHTER FINANCIAL CONDITIONS TO GET INFLATION DOWN TO 2. >> WELL, AND I THINK WHAT JARED WAS JUST BRINGING UP ABOUT THE BOND MARKET WAS QUITE INTERESTING THAT THIS PERCEPTION THAT MAYBE WHAT WHAT IS SEEN AS A CONFIRMATION THAT THERE'S NOT GOING TO BE ANOTHER RAISE IN RATES, YOU SAW THAT INFLUX INTO THE BOND MARKET, BUT BUT NOT HAVING ANOTHER RAISE AND HAVING A CUT. >> THERE'S LIKE A LOT OF SPACE IN BETWEEN THOSE TWO THINGS. SO DOES WHAT WE'RE SEEING IN THE BOND MARKET MAKE SENSE? I GUESS I WOULD ASK. >> WELL, I THINK, FOR THE TREASURY MARKET, THAT YOU REALLY ON THE LONGER END OF THE TREASURY CURVE, YOU NEED THE CUTS TO JUSTIFY BY MOVING OUT OF CASH IN OTHER PARTS OF THE BOND MARKET, WHICH ARE ALSO SEEING VERY STRONG INFLOWS, LIKE THE HIGH YIELD MARKET THAT I'M INVOLVED IN. IT'S MUCH LESS SENSITIVE TO THE RATE CUTS ACTUALLY MATERIALIZING. YOU'RE GETTING SUBSTANTIAL YIELD IN THE HIGH YIELD MARKET, FOR EXAMPLE, COMPARED TO INFLATION COMPARED TO CASH YIELDS. AND AS LONG AS YOU CAN AVOID THE DEFAULTS, THAT'S PRETTY COMPELLING. RIGHT NOW. >> I'M NOT SURE IF I LOOK AT THE YIELD ON THE TEN YEAR HERE. BILL WE'RE AT, BACK TO 4 OR 5. WHAT'S YOUR VIEW OF WHERE THAT HEADS NEAR INTERMEDIATE TERM? >> I MEAN, I THINK THAT'S VERY DEPENDENT ON RATE CUTS. IF WE NEED TIGHTER FINANCIAL CONDITIONS, THAT MIGHT MEAN THAT THOSE YIELDS HAVE TO GO EVEN HIGHER TO GET INFLATION BACK DOWN TO 2. >> SO ON THE HIGH YIELD FRONT, HAVE WE SEEN AN UPTICK IN DEFAULTS AT ALL. >> OR IS THAT SOMETHING THAT IS A CONCERN EVEN AS WE HEAD THROUGHOUT THE YEAR? I MEAN THE VIEW OF THE ECONOMY AND THEREFORE OF EARNINGS AS WELL HAS BEEN PRETTY SANGUINE. BUT SOME OF THE MORE RECENT DATA REALLY SEEMS TO BE ROLLING OVER A LITTLE BIT. >> YEAH. THE ECONOMIC DATA HAS BEEN A LITTLE BIT SOFTER OF LATE. BUT EARNINGS ARE REALLY IN A GOLDILOCKS SCENARIO. SO FOR HIGH YIELD NOT TOO HOT NOT TOO COLD. AND DEFAULTS ARE IN THE 2 TO 2. AND A HALF PERCENT RANGE. THEY'VE LEVELED OUT FOR THE LAST SIX MONTHS OR SO. AND THAT'S WELL BELOW HISTORIC AVERAGES. SO, THE YOU KNOW, THE IDEA THAT THAT THERE IS A LOT OF STRESS IN THE HIGH YIELD MARKET IS JUST NOT BORNE OUT BY THE DATA. >> WHAT ABOUT BILL? JUST CORE INVESTMENT GRADE, FIXED INCOME, ATTRACTIVE, I THINK IT'S TOUGH. I THINK YOU REALLY DO NEED THE RATE CUTS TO MATERIALIZE TO JUSTIFY THAT. OTHERWISE WHY COME OUT OF CASH AT 5.3% TO GO INTO CORE FIXED INCOME WHERE YOU'RE IN THE MID FOURS, AND IF YOU'RE IN THE AGGREGATE INDEX, YOU'RE TALKING ABOUT DURATION OF SIX TO UNDER YIELD CASH. SO I THINK THAT'S STILL A TOUGH SPOT TO BE FROM HERE WITHIN HIGH YIELD. >> WHERE DO YOU SEE THE MOST OPPORTUNITY. RIGHT NOW. >> YEAH I THINK FINANCIALS IN THE HIGH YIELD MARKET THAT'S, YOU KNOW, NOT A BIG PART OF THE HIGH YIELD MARKET, BUT IT'S VERY ATTRACTIVE, FACING MUCH LESS COMPETITION FROM BANKS AS A RESULT OF WHAT HAPPENED IN THE SPRING OF 2023. AND THEN CABLE IS GETTING VERY INTERESTING. IT'S BEEN UNDER SEVERE PRESSURE IN BOTH THE EQUITY MARKET AND THE HIGH YIELD BOND MARKET. BUT I THINK THERE'S SOME REAL OPPORTUNITIES BEING CREATED THERE. >> INTERESTING. ALL RIGHT. THANKS, PHIL. THANKS FOR COMING INTO THE STUDIO. GOOD TO SEE YOU . COMING UP. LIFE'S 360 IS A LOCATION SHARING APP THAT ALLOWS ITS USERS NOT ONLY TO KEEP TRACK OF THEIR LOVED ONES, BUT ALSO KEEP TRACK OF BELONGINGS AND ACCESS A RANGE OF SAFETY SERVICES. SO WE'RE GOING TO SPEAK TO THE CO-FOUNDER AND CEO ON THE OTHER SIDE, WHERE MARKET DOMINATION OVER TIME STILL TO COME . WELCOME BACK TO MARKET DOMINATION OVERTIME. JARED BLIKRE IS HERE TO RECAP THE ACTION FROM TODAY'S SESSION. SPONSORED BY TASTYTRADE. HEY, JARED. >> THANK YOU. JULIE. IT WAS A WEEK OF GREEN. AND LET'S CHECK OUT THE WI-FI INTERACTIVE. I'LL GO THROUGH EACH OF THE INDICES. YOU CAN SEE THE DOW UP 32 BASIS POINTS TODAY, UP 2.16% FOR THE WEEK. AND ALMOST AT THE 40,000 LEVEL. NOT QUITE THERE, JUST YET. HERE'S THE S&P 500 NORTH OF 5200 IN FACT 5222 ON THE NOSE UP 1.85% AND THE NASDAQ UP ABOUT 1.14. NOW LET'S CHECK OUT THE SECTOR ACTION, WHICH I THOUGHT WAS PRETTY INTERESTING. UTILITIES DID IT AGAIN, UP 4.2. AND THAT IS NOW THE LEADING SECTOR OF THE ENTIRE YEAR. UTILITIES FOLLOWED BY FINANCIALS, MATERIALS, INDUSTRIALS, STAPLES AND RETAIL REAL ESTATE. THAT ROUNDS OUT THE TOP ROW AND THEN YOU HAVE EVERYTHING GREEN ON THE BOTTOM ROW. CONSUMER DISCRETIONARY JUST BARELY POSITIVE UP 0.1. AND THAT IS A TESLA STORY. IF WE GO TO THE NASDAQ 100 LOOKING AT THE FIVE DAY TRAILING TOTALS, YOU CAN SEE AMAZON THE ACTUAL BIGGEST COMPONENT OF CONSUMER DISCRETIONARY IN THE GREEN, BUT TESLA DOWN ABOUT 7. YOU CAN SEE THAT RIGHT THERE OTHERWISE. AND THAT LET ME CHECK ON THE LEADERS . WE HAVE MOMENTUM. THAT IS A MOMENTUM ETF UP 2.5. THAT'S TOPPING THE BOARDS THIS WEEK. WHAT'S THE LAGGARD POSITION IS ARK. ARK IS DOWN 5.6. AND IF WE TAKE A LOOK INSIDE WE CAN SEE IN ADDITION TO TESLA DOWN 7, SHOPIFY DOWN 20. ROBLOX DOWN 20. COINBASE DOWN TEN. SO NOT THE BEST WEEK FOR DISRUPTION GUYS. THANK YOU JARED. >> GOVERNMENT'S ANNUAL OUTLOOK FOR MEDICARE SPELLING GOOD NEWS FOR RETIREES. AND HERE WITH THE DETAILS IS YAHOO FINANCE'S VERY OWN SENIOR COLUMNIST RICK NEWMAN RICK. >> HEY GUYS WHAT I FOUND INTERESTING ABOUT THIS, WHICH IS THE HEADLINE SAYING, MEDICARE, THE WHAT THEY CALL THE SO-CALLED GO BROKE DATE FOR MEDICARE. LAST YEAR IT WAS 2031 AND NOW IT'S 2036. IT HAS BEEN EXTENDED BY FIVE YEARS. AND LET'S GO BACK TWO YEARS. TWO YEARS AGO, THE MEDICARE TRUSTEES SAID THEY THOUGHT THE MAIN TRUST FUND IN MEDICARE COULD RUN OUT OF MONEY AS EARLY AS 2028 IF IT HAPPENED IN 2028. THAT MEANS THE NEXT PRESIDENT, WHO WE'RE GOING TO ELECT THIS YEAR, WOULD BE HAVING TO DEAL WITH THIS PROBLEM DURING HIS OR HER NEXT PRESIDENTIAL TERM. AND NOW THAT IS NOT THE CASE. SO FOR PRESIDENT BIDEN RUNNING FOR REELECTION, I THINK THIS MEANS TWO THINGS. NUMBER ONE, HE HAS TAKEN SOME STEPS TO REDUCE HEALTH CARE COSTS, AND SO HE CAN NOW SAY, HEY, LOOK, IT'S WORKING, THE COST BASIS IN MEDICARE HAS GONE DOWN, AND WE'VE EXTENDED THE LIFE OF THAT PROGRAM. THAT'S NOT REALLY WHY, THE PICTURE LOOKS A LITTLE BIT BETTER FOR MEDICARE, BUT HE CAN SAY IT, AND HE ALREADY IS SAYING IT. AND THE SECOND THING IS, THE NEXT PRESIDENT IS NOT GOING TO HAVE TO DEAL WITH THIS PROBLEM. THE NEXT PRESIDENT SHOULD DEAL WITH THE PROBLEM. WE SHOULD GET MEDICARE'S FINANCES STRAIGHTENED OUT SOONER RATHER THAN LATER. BUT THAT'S NOT THE WAY WASHINGTON WORKS, SO THERE'S GOING TO BE A LOT OF TALK ABOUT THIS, BUT THE NEXT PRESIDENT ACTUALLY IS NOT GOING TO HAVE TO DO SOMETHING ON AN URGENT BASIS. >> RICK, WHAT ARE SOME OF THE MAIN REASONS WHY THINGS AREN'T WORSE? AND ARE THERE ANY, LEVERS THAT, YOU KNOW, CAN BE PULLED BY THE NEXT INCOMING PRESIDENT TO, TO HELP KEEP THAT GOING? >> YEAH. SO IT'S TWO THINGS, MAINLY THAT, IMPROVE THE OUTLOOK FOR MEDICARE, THE FIRST IS THAT THE ECONOMY IS JUST DOING WELL AND AMERICANS DON'T BELIEVE IT. I MEAN, WE SAW NEW CONFIDENCE READINGS TODAY THAT SAID, AMERICANS THINK THE ECONOMY IS IN BAD SHAPE, BUT IT'S NOT. AND, GOVERNMENT TAX REVENUES WENT UP BY MORE THAN EXPECTED BECAUSE THE ECONOMY GREW BY MORE THAN EXPECTED. PEOPLE ARE EARNING MONEY AND PAYING MORE TAXES. SO THAT'S NUMBER ONE. THE OTHER ONE PEOPLE AREN'T GOING TO BELIEVE EITHER, WHICH IS THAT THE RATE OF PRICE INCREASES IN HEALTH CARE HAVE ACTUALLY MODERATED, RELATIVE TO ECONOMIST EXPECTATIONS FROM JUST A COUPLE OF YEARS AGO, BIDEN DIDN'T REALLY ACCOMPLISH EITHER ONE OF THOSE THINGS. I MEAN, THIS IS THE FORCE OF THE ECONOMY ON ITS OWN. THERE HAVE BEEN SOME GOVERNMENT EFFORTS GOING BACK TO THE AFFORDABLE CARE ACT IN 2010 THAT HAVE, INTENDED TO LOWER THE GROWTH RATE OF HEALTH CARE. AND YOU KNOW, FOR YEARS, HEALTH CARE WAS GROWING AT 2 OR 3 RATES TIMES THE RATE OF INFLATION. AND THAT IS NOT THE CASE ANYMORE. THAT DOESN'T MEAN THE SYSTEM IS IN GOOD SHAPE OR IT'S WORKING FOR EVERYBODY. IT'S CLEARLY NOT. BUT AT LEAST ONE THING IS GOING IN THE RIGHT DIRECTION. THERE'S AN IMPORTANT FOOTNOTE HERE, GUYS, WHICH IS SOCIAL SECURITY, WHICH IS THE OTHER FOCUS OF THIS ANNUAL REPORT THAT IS GOING TO START RUNNING SHORT OF MONEY IN 2033. SO, NINE YEARS FROM NOW. AND THAT IS THE SAME AS LAST YEAR'S FORECAST. SO THAT'S ACTUALLY GOING TO BECOME A PROBLEM. FIRST BASED ON THE LATEST DATA. >> RICK, LET ME GET YOUR TAKE ON SOMETHING. I SAW. JASON TRENNERT, CHAIRMAN OF STRATEGA ALL AROUND, SMART GUY. HE POSTED THE FOLLOWING ON X TODAY, RICK, SAYING THE NEW YORK TIMES, THE WALL STREET JOURNAL, AND NOW THE FT HAVE ALL NOW WRITTEN ARTICLES SUGGESTING THAT PEOPLE ARE TOO STUPID TO REALIZE THAT INFLATION IS NOT AS BAD AS WHAT THEY SEE WITH THEIR OWN EYES, GOES ON TO SAY, AS AN ELECTION ISSUE, THE INFLATION DEBATE IS OVER AND PRESIDENT BIDEN LOST. NOW AS A AS A COLUMNIST, RICK, YOU THINK A LOT ABOUT THESE ISSUES VERY DEEPLY. WHAT'S YOUR RESPONSE TO MR. TURNER'S ARGUMENT THERE? >> I LOVE YOUR CURVEBALL QUESTION. JOSH, I GOTTA SAY, I MEAN, YOU KNOW, I'VE BEEN WRITING A LOT ABOUT THIS, TOO, PEOPLE THINK INFLATION IS WORSE THAN THE DATA SAYS IT IS, SO THERE'S A GAP BETWEEN PERCEPTION AND REALITY. I DON'T THINK THAT MEANS ANYBODY IS STUPID, BECAUSE AS I'VE DISCOVERED IN CONVERSATIONS WITH A LOT OF OUR AUDIENCE MEMBERS, EVERY INDIVIDUAL HAS HIS OR HER OWN PERSONAL INFLATION GAUGE. AND IT'S NOT THE CPI, IT'S NOT, SOME OF THE DATA WE TALK ABOUT ALL THE TIME, IT COULD BE A LOT OF DIFFERENT THINGS. FOR A LOT OF PEOPLE IT'S RENT. WHAT'S THE RENT? IS IT UP OR DOWN AND HOW MUCH OF A OF A BITE IS IT TAKING OUT OF THEIR PAYCHECK, I HAVE TALKED WITH PEOPLE WHO TOLD ME THAT, BECAUSE THE PRICE OF A POUND OF ROAST BEEF IS $3 MORE THAN IT WAS, IN 2020. THEY KNOW THAT INFLATION IS HIGH. SOMEBODY TOLD ME IT'S THE COST OF A LOAF OF PEPPERIDGE FARM RYE BREAD. I MEAN, THESE ARE THE. THIS IS JUST HOW PEOPLE MEASURE INFLATION IN THEIR HEADS. AND OF COURSE, THE BIG ONE IS GASOLINE PRICES. PEOPLE RELATE TO THAT BECAUSE IT'S JUST A PRICE. THEY SEE ALL THE TIME. AND EVERYBODY HAS IN THEIR HEAD AN IDEA OF WHAT THE RIGHT PRICE FOR THESE THINGS IS. AND THE PRICES NOW ARE HIGHER THAN THE RIGHT PRICE THAT PEOPLE THINK. SO I HAVE A LOT OF ARGUMENTS WITH PEOPLE. I DON'T THINK PEOPLE ARE STUPID. AND I THINK THAT THE ONE THING WE ALL HAVE TO KEEP IN MIND IS THAT A LOT OF THOSE PRICES HAVE GONE UP AND STAYED UP. SO THE RATE OF INFLATION COULD BE ZERO ON A YEAR OVER YEAR BASIS. BUT THE RATE OF INFLATION ON A THREE YEAR BASIS OR A FOUR YEAR BASIS IN MANY CASES IS 25% OR MORE. SO, IF PRICES WERE TO COME DOWN, I THINK THAT WOULD HELP WITH THIS PERCEPTION ISSUE, BUT NOT TOO MANY PRICES ARE COMING DOWN AND SOME PRICES ARE JUST GOING TO STAY FOR STAY UP THERE FOR, FOR A GOOD LONG WHILE. >> YEAH. NOT TOO MANY PRICES COMING DOWN. I THINK IN MY BRAIN IT'S EGGS, EVEN THOUGH I KNOW EGGS ARE EVEN MORE VOLATILE THAN ANYTHING ELSE. BUT IT'S, YOU KNOW, IT'S JUST ALWAYS THE SAME CARTON. >> SO, HEY, I FOLLOW THE PRICE OF AVOCADOS. YOU KNOW, WHEN YOU CAN GET AN AVOCADO FOR A BUCK 50? THINGS ARE GOOD THAT CHANGES SEASONALLY. DOLLARS I GET UPSET. >> YEAH. THE AVOCADO IS VERY SEASONAL. AVOCADO METRIC. YEAH. WE GOTTA MAYBE WE NEED TO GET A FILM A LITTLE THING IN A GROCERY STORE TOGETHER. RICK, THANKS SO MUCH. APPRECIATE IT. HAVE A GOOD. HI, GUYS. HAPPY WEEKEND. WELL THERE'S A COMPANY MAKING A SPLASH IN THE FITNESS SPACE, HYDRO MANUFACTURES ROWING MACHINES AT A TIME WHERE FITNESS TRENDS HAVE SHIFTED FROM CARDIO TO STRENGTH. TO SOME EXTENT, IT WAS ONCE TARGETED BY PELOTON FOR AN ACQUISITION, BUT NOW IT'S MAKING A DIFFERENT DEAL TO GROW. ACQUIRING A MAJORITY STAKE IN SPEED FITNESS THIS WEEK. THE VALUE OF THAT DEAL NOT DISCLOSED. FOR MORE, WE'RE HERE WITH THE FOUNDER OF HYDRO, BRUCE SMITH. THANKS FOR BEING HERE, BRUCE. APPRECIATE IT. VERY HAPPY TO BE HERE. YEAH. SO, AM I SAYING SPEED OR DO YOU SAY SPEEDY BECAUSE IT HAS THE END NOW WE HAD A LAWYER ON THE DEAL WHO INSISTED THAT IT WAS SPEEDY, BUT I THINK IT WAS A LITTLE PASSIVE AGGRESSIVE. >> THAT COMPANY IS CALLED SPEED. >> BUT IF YOU PUT AN E ON THE END WHEN YOU GOOGLE IT AND YOU GOOGLE IT, IT IS DEFINITELY FINE. WE KNOW, WE KNOW THE TRICKS. WE KNOW THE TRICKS, BRUCE. SO, YOU KNOW, IT'S FUNNY THAT THIS DEAL IS HAPPENING NOW. THERE WAS JUST A STORY IN THE WALL STREET JOURNAL ABOUT HOW HIT IS SORT OF GOING OUT. HIGH INTENSITY INTERVAL TRAINING AND STRENGTH IS COMING IN. SO IS THAT WHAT YOU GUYS WERE LOOKING AT WHEN YOU DECIDED TO DO THIS DEAL? >> SO THE MOST IMPORTANT THING FOR FITNESS IS YOUR CARDIO VASCULAR SYSTEM. THE SECOND MOST IMPORTANT THING IS STRENGTH. AND THAT'S NOT SOMETHING THAT'S GOING TO CHANGE. IT'S PERMANENT AND WE'RE NOT YOU KNOW, WE DON'T CHASE FADS. WE CHASE THE VERY BEST THING. AND WHAT'S REALLY EXCITING ABOUT SPEED IS EXCITING ABOUT SPEED IS THAT THEY HAVE THIS TECHNOLOGY. IT'S VARIABLE RESISTANCE. AND THAT IS A TONAL HAS THAT TWO SPEED HAS THE NEXT LEVEL OF THAT VARIABILITY. AND IT'S REALLY IT'S DELIVERING A BETTER WORKOUT IN LESS TIME, WHICH IS THE SAME THING THAT ROWING DOES FOR YOU. SO FOR US IT'S BEEN PART OF THE PLAN SINCE THE BEGINNING WHERE WHOLE HEALTH COMPANY AND WE'RE SO DELIGHTED TO BRING THIS TO MARKET WITH SPEED BECAUSE THEY DO HAVE THIS REALLY EXTRAORDINARY TECHNOLOGY. >> AND BRUCE, I'M INTERESTED, YOU KNOW, JULIE KIND OF MENTIONED PELOTON THERE, WHICH, YOU KNOW, HAS STRUGGLED AND MAKES HEADLINES FOR ALL THE WRONG REASONS. YOU KNOW, I'M NOT ASKING YOU TO COMMENT ON PELOTON, BUT I AM JUST CURIOUS MORE BROADLY, YOU KNOW, ARE YOU ARE YOU ALL JUST PULLING CERTAIN LEVERS? DO YOU THINK THAT THAT'S HELPING YOU KIND OF PULLING THESE? EXACTLY. IT KIND OF HELPING YOU JUST NAVIGATE THE MARKET MAYBE MORE EFFECTIVELY THAN THE COMPETITION. >> SO, YOU KNOW, I LOVE PELOTON. I REALLY DO. AND I WOULDN'T BE HERE IF IT WEREN'T FOR JOHN FOLEY AND ALL THE CRAZINESS THAT HE STARTED, THE BOTTOM LINE, I THINK, IS THAT, THE NORTH STAR IS THE COMBINATION OF THREE THINGS YOU NEED SOMETHING TO WORK OUT ON IN YOUR HOME. YOU NEED A REALLY GREAT CONTENT. YOU NEED REALLY GREAT SOFTWARE. AND HONESTLY, THEY THE PELOTON HAD THAT VISION. WE'VE NEVER LET GO OF THAT VISION. WE'RE NEVER GOING TO YOU NEED A FOOTPRINT IN THE HOME BECAUSE THAT CONVENIENCE IS WHAT REALLY DRIVES MARKET ADOPTION. AND FROM OUR PERSPECTIVE, WE'VE STUCK TO THAT NORTH STAR. THERE WAS A HUGE BUMP, YOU KNOW, MASSIVE AMOUNT OF DISRUPTION, BUT IT DIDN'T CHANGE THE BASIC FUNDAMENTALS OF THE BUSINESS. IT'S AN AMAZING BUSINESS. IT'S ALWAYS GOING TO BE A GREAT BUSINESS. WE WANT PEOPLE TO GO TO THE GYM. WE WANT PEOPLE TO WORK OUT AT HOME. MOST OF ALL, WE WANT THEM TO BE HEALTHY. AND THIS IS ONE OF THE TOOLS THAT WILL HELP THEM FEEL BETTER IN THEIR LIFE. >> SO I HATE TO KEEP BRINGING UP. PELOTON IS THE IS THE BUT BUT IT'S A IT'S A PUBLICLY TRADED COMPANY. SO WE KNOW THEIR NUMBERS. WE KNOW THEIR NUMBERS WENT WAY UP IN 2020, 2021 WHEN PEOPLE WERE HOME, AND SINCE THEN THEY HAVE DECELERATED IN TERMS OF THEIR SALES. RIGHT. WHAT CAN YOU TELL US ABOUT WHAT YOU GUYS HAVE SEEN? >> YOU KNOW, SO WE HAD THE SAME LIKE MASSIVE RAMP IN THE IN THE PANDEMIC AND WE DIDN'T HAVE TO SPEND MUCH ON ADVERTISING. AND I THINK EVERYBODY THOUGHT LIKE, OH, THIS IS THE PERMANENT NEW WAVE. OF COURSE IT WASN'T. IT WAS PANDEMIC DRIVEN. SO WE HAD A YEAR OF RESET. IT WAS EXTREMELY TOUGH ON EVERYBODY IN THE WHOLE INDUSTRY. WE DID A BIG RIFF, YOU KNOW, LIKE WE RESTRUCTURED. BUT YEAR OVER YEAR OUR GROWTH HAS JUST WE'RE SEEING, YOU KNOW, BACK TO WHAT WE STARTED WITH, WHICH IS THIS YEAR UP 23% YEAR OVER YEAR. UNIT SALES ARE MUCH HIGHER THAN THAT. EVEN SO, YOU KNOW, IT'S JUST GRINDING AWAY AT THAT REALLY GREAT, GREAT MARKETING STORY. AND IT'S A PROMISE TO CONSUMERS NEVER BREAKING THAT PROMISE. AND THE MARKET IS JUST BEGINNING TO BE TAPPED. YOU KNOW THE PENETRATION OVERALL STILL IN THE MID 20S. AND WE KNOW THAT THAT MARKET PENETRATION IS GOING TO GET TO THE 40S IN THE UNITED STATES. BEYOND THAT, THE WORLD WHICH HAS JUST BEGUN TO WAKE UP TO THIS POSSIBILITY. >> BRUCE, I'M JUST INTERESTED. WHAT CAN YOU TELL US ABOUT WHO WHO YOUR CUSTOMER IS, WHAT'S WHAT'S THE DEMO? IS IT, YOU KNOW, YOUNG OLD MAN, WOMAN, HIGH INCOME, WHO IS IT? >> SO IT'S PEOPLE WHO HAVE HOMES. SO THEY TEND TO BE, YOU KNOW, 35 AND UP, RELATIVELY HIGH HOUSEHOLD INCOME, A LOT OF PEOPLE THINK THAT WE WOULD SKEW MORE TOWARDS FEMALE, BUT IT'S ACTUALLY HALF MEN, HALF WOMEN. AND FOR US, THE MOST IMPORTANT THING THEY'VE NEVER WROTE, YOU KNOW, ROWING IS STILL THIS RELATIVELY UNDISCOVERED THING. BOYS IN THE BOAT WAS A GREAT MOVIE. >> AND HOW DO THEY HOW DO THEY LEARN? BRUCE, IS THERE A TUTORIAL? BECAUSE THERE IS A YEAH, YEAH THERE IS. >> YOU'RE THANK YOU FOR THE INFOMERCIAL OPPORTUNITY. BUT WE TEACH YOU EVERYTHING YOU NEED TO KNOW. SO I'M A NATIONAL WHY I'M HERE. BRUCE. YEAH. NO, NO, I APPRECIATE IT. SO I'M A NATIONAL TEAM COACH. I COACH FOR THE UNITED STATES. I'VE BEEN IN THE WORLD CHAMPIONSHIPS TEN TIMES. WE TAKE THAT KNOWLEDGE AND WE GIVE IT TO YOU IN YOUR LIVING ROOM. SO. AND IT REALLY IS THAT WHAT WHAT HAPPENS IS THAT PEOPLE BUY THEM BY THE MACHINE AND THEY GET IT HOME. AND THEN THEY'RE SO SURPRISED AT THE IMMERSIVENESS AND THE QUALITY OF THE EXPERIENCE. AND JUST, JUST CHECK OUT OUR FACEBOOK GROUPS. IT'S FULL OF RABID FANS, SO LET'S GET BACK TO SPEED FOR A SECOND, BECAUSE I'M CURIOUS. IT DOESN'T IT'S NOT SELLING THE PRODUCT YET TO THE PUBLIC. IF I'M IF I'VE GOT IT RIGHT, SO THEN WHY DO IT AT THAT STAGE? WHY MAKE THE ACQUISITION AT THAT STAGE? AND THEN WHEN IS THE ROLLOUT GOING TO HAPPEN AND HOW WILL IT INTEGRATE WITH WITH HYDRO. SO THEY HAVE SOME AMAZING IP AROUND A RESISTANCE MECHANISM THAT GENERATES MORE FORCE. >> SO THERE ARE TWO PRODUCTS THAT WE ARE GOING TO BRING TO MARKET OVER THE NEXT SEVERAL MONTHS. THE FIRST ONE IS FOR CONSUMERS IN THEIR HOME, AND THAT HAS RESISTANCE IN THE THREE 400 POUND RANGE, WHICH IS MORE THAN ENOUGH FOR CIVILIANS. AND THEN THEIR FLAGSHIP PRODUCT, WHICH I TRIED AND LITERALLY ON THE SECOND REPETITION, I WAS LIKE, WE HAVE TO WORK WITH THIS COMPANY. IT'S IT GENERATES MORE THAN 2,000 POUNDS OF RESISTANCE, AND IT'S LIKE USING A PROFESSIONAL WEIGHT RACK. AND IT'S REALLY AMAZING. IT'S FOR THE COMMERCIAL MARKET AND SO IT'S THAT HIGH EXTRAORDINARY EXPERIENCE IN THE GYM. AND THEN SUPER ACCESSIBLE BLENDS RIGHT IN SEAMLESSLY WITH THE HYDRO EXPERIENCE TOGETHER. AND IT'S PUTTING THOSE TWO EXPERIENCES TOGETHER BECAUSE AS I AS I SAID AT THE BEGINNING, WHAT YOU REALLY NEED IS, YOU KNOW, YOUR HEART AND LUNGS TO BE HEALTHY AND YOU ALSO NEED MUSCLE MASS. AND I THINK THE WHOLE WORLD UNDERSTANDS THOSE TWO THINGS. THESE ARE THE TWO MOST EFFICIENT WAYS TO ACCOMPLISH THAT. >> BRUCE, THAT WAS SUPER INTERESTING. THANK YOU FOR COMING IN TODAY. MY PLEASURE. THAT WAS COOL. THANK YOU. HERE'S A LOOK AT WHAT TO WATCH FOR NEXT WEEK. THE CONSUMER WILL BE IN FOCUS BETWEEN EARNINGS AND ECONOMIC DATA ON THE CORPORATE FRONT. EARNINGS SEASON FOR BIG RETAILERS GETS UNDERWAY. SOME OF THE KEY NAMES TO WATCH INCLUDE HOME DEPOT, WALMART AND ROSS STORES. WALMART, THE WORLD'S LARGEST RETAILER, IS SET TO REPORT THURSDAY. AHEAD OF THE OPENING BELL. INVESTORS WILL BE LOOKING FOR INSIGHT INTO CONSUMER SPENDING PATTERNS AND THE COMPANY'S SPENDING PLANS AFTER ANNOUNCING PLANS TO ACQUIRE VIZIO IN AN EFFORT TO BUILD UP ITS AD BUSINESS. >> AND AS FOR ECONOMIC DATA, IT'S PRETTY BUSY WEEK. THE DATA POINT INVESTORS AND ECONOMISTS WILL BE WATCHING MOST CLOSELY THE CONSUMER PRICE INDEX THAT'S OUT AHEAD OF THE OPEN ON WEDNESDAY. IT IS THE FIRST LOOK AT INFLATION SINCE THE FED DECISION LAST WEEK. THE EXPECTATION IS FOR CORE CPI TO RISE 3/10 OF A PERCENT IN APRIL FROM THE PRIOR MONTH. AND ON A YEAR OVER YEAR BASIS. PRICES, EXCLUDING FOOD AND ENERGY, ARE EXPECTED TO RISE 3.6. >> OTHER DATA INCLUDES RETAIL SALES AND THE PRODUCER PRICE INDEX. HOUSING WILL BE ANOTHER FOCUS AS WE GET READINGS ON HOMEBUILDER CONFIDENCE AND HOUSING STARTS AND BUILDING PERMITS. >> THAT'LL DO IT FOR TODAY'S MARKET DOMINATION OVER TIME. BE SURE TO COME BACK MONDAY AT 3 P.M. EASTERN FOR ALL OF YOUR COVERAGE LEADING UP TO AND AFTER THE CLOSING BELL. STAY TUNED. WE'VE GOT MORE YAHOO FINANCE ON THE OTHER SIDE . THERE IS MORE TO LOCATION SHARING THAN JUST SEEING WHAT YOUR KIDS ARE UP TO DURING THE DAY. AND LIVE 360 COMPANY OPERATES A PLATFORM GEARED TOWARD FAMILIES, ALLOWING ITS USERS TO NOT ONLY KEEP TRACK OF THEIR LOVED ONES, BUT ALSO KEEP TRACK OF BELONGINGS AND ACCESS A RANGE OF SAFETY SERVICES. JOINING US NOW TO DISCUSS THE OPPORTUNITIES AND BEYOND FOR THE COMPANY LIFE 60S THREE 60S CO-FOUNDER AND CEO CHRIS HULLS. CHRIS, THANK YOU FOR BEING HERE. APPRECIATE IT. SO TALK TO ME ABOUT HOW YOU GUYS ARE INTEGRATED INTO DEVICES AND WHAT DEMAND LOOKS LIKE RIGHT NOW. >> SURE. SO WE WERE THE FIRST LOCATION SHARING APP IN THE MARKET, AND WE HAD THE INSIGHT THAT LOCATION CAN BE THE SPRINGBOARD FOR SO MANY DIFFERENT FAMILY SERVICES. IT'S NOT JUST ABOUT SAFETY, BUT THAT SENSE OF CONNECTION. WHERE DOES SOMEONE HOW ARE THEY DRIVING, HOW ARE THEY FEELING AND WHEN THERE IS THAT EMERGENCY, WHAT IF YOU NEED AN AMBULANCE? WHAT IF YOU NEED HELP BECAUSE YOUR KID DRANK THE TYLENOL? WE HAVE A WHOLE HOST OF SERVICES THAT FIT WITHIN OUR UMBRELLA, AND MORE RECENTLY WE'VE MOVED INTO DEVICES. SO PETS, THINGS, CARS, KEYS, STUFF THAT YOU REALLY CARE ABOUT. OUR BELIEF IS THAT LOCATION IS GOING TO BE IN EVERYTHING, AND IT'S AND IT'S VERY MUCH THE EARLY DAYS AS THE MILLENNIAL GENERATION BECOMES PARENTS, THEY NATURALLY TURN TO THEIR DEVICES. AND THAT'S BEEN DRIVING THIS HUGE GROWTH WE'VE HAD. >> AND CHRIS, I'M ASSUMING, YOU KNOW, IF I'M TRACKING PEOPLE, I'M ASSUMING THAT OTHER PERSON, THEY HAVE TO OPT IN. >> YEAH, IT IS 100% OPT IN. THERE'S NO PARENT AND KID VERSION OF THE APP. IT'S ALL THE SAME, COMPLETELY PEER TO PEER. AND THAT WAS ONE OF THE KEY ELEMENTS OF OUR PLATFORM IN THE EARLY DAYS WAS TRUST. YOU HAVE TO BE OPTED IN. THAT IS NOT STEALTH, AND LIFE360 I WOULD IMAGINE, COMPETES ON SOME LEVELS, ALTHOUGH YOU HAVE A DIFFERENT SUITE OF SERVICES WITH THINGS LIKE FIND MY IPHONE. SO I'M CURIOUS HOW MUCH, HOW MUCH OF IT IS DEPLOYED ON ANDROID DEVICES. AND DO YOU ALSO HAVE SOME MARKET SHARE ON IOS DEVICES ? >> SO COUNTERINTUITIVELY, WE ACTUALLY HAVE HIGHER MARKET SHARE IN ANDROID HEAVY AND, EXCUSE ME, IOS HEAVY REGIONS AND A LOT OF IT'S BECAUSE APPLE HELPED POPULARIZE LOCATION SHARING, BECAUSE HEY THERE APPLE. THEY NORMALIZE SOMETHING THAT FELT A LITTLE BIT CREEPY EARLY ON, BUT AS WE GREW, PEOPLE REALIZED, WELL, IF I REALLY WANT THAT RICHER INTERFACE, IF I HAVE A FAMILY, IF I HAVE CROSS PLATFORM CUSTOMERS, IF I WANT TO KNOW HOW SOMEONE'S DRIVING, IF I WANT TO HAVE AN INTERFACE A LITTLE BIT MORE LIVELY AND LESS UTILITARIAN, YOU GO TO LIFE360. SO WE VERY REGULARLY HEAR OF PEOPLE WHO STARTED ON FIND MY AND MOVED TO LIFE360, BUT IT'S ABOUT HALF OF OUR PAYING CUSTOMERS ARE CROSS PLATFORM. >> AND CHRIS, I'M CURIOUS WHETHER YOU KNOW, IF YOU HAVE KIDS YOURSELF AND IF SO, ARE YOU USING THE APP TO STAY CONNECTED WITH THEM? >> I HAVE TWO DAUGHTERS, SIX AND NINE, SO I'M NOT USING THE APP FOR THEM, BUT I DO USE TILE DEVICES WITH THEM. AND ONE THING THAT'S A BIT COUNTERINTUITIVE IS IT'S NOT JUST PARENTS WITH KIDS. WE HAVE COUPLES. WE HAVE PEOPLE TAKING CARE OF THEIR AGING PARENTS. SO YOU REALLY LOOK AT WHAT WE'RE DOING. IT'S ABOUT THE FAMILY ORGANIZER. IT'S ABOUT STAYING IN TOUCH WITH THE PEOPLE CLOSEST TO YOU. AND IT'S NOT JUST PEOPLE WITH TEENAGE KIDS, AND AS YOU KNOW, THERE'S A STORY IN THE WALL STREET JOURNAL THAT TALKED ABOUT, POTENTIALLY MORE INFORMATION ON A NEW SOURCE OF REVENUE FOR YOU GUYS. YOU HAVE, YOU KNOW, PEOPLE PAY FOR SOME OF THESE SERVICES THAT YOU'RE TALKING ABOUT, BUT IT SOUNDS LIKE YOU ALSO ARE GOING TO HAVE AN AD SUPPORTED VERSION. AND THAT YOU'RE GOING TO GIVE SOME MORE INFORMATION ABOUT THE AD REVENUE. WHAT CAN YOU TELL US ABOUT THAT PIECE? >> ABSOLUTELY. SO BY DOOR. WE'RE THE 15TH BIGGEST APP IN THE COUNTRY NOW ON IOS, ACCORDING TO DATA.I. SO WE HAVE THIS HUGE TREASURE TROVE OF REAL TIME FIRST PARTY DATA AND I THINK SOMETIMES YOU CAN LOOK AT DATA AND IT JUST LOOKS LIKE A WAY TO HARVEST THINGS FROM YOUR CUSTOMERS. BUT WE ACTUALLY THINK WE CAN GIVE OFFERS THAT ARE VERY COMPELLING. SO IMAGINE YOU LAND AT A NEW AIRPORT AND WE CAN IMMEDIATELY GET YOU AN UBER, OR YOU GO TO A NEW COUNTRY AND WE COULD OFFER YOU TRIP INSURANCE. THOSE ARE THINGS THAT TAKE ADVANTAGE OF YOUR DATA AND VERY BENEFICIAL WAYS WHERE WE CAN MATCH OUR CUSTOMERS WITH PRODUCTS AND SERVICES THAT ACTUALLY HELP THEM. AND THAT'S A VERY UNIQUE TYPE OF ADVERTISING. AND WE'RE EXCITED TO LEAN INTO IT. >> AND CHRIS, YOU GUYS ARE YOU TRADE IN AUSTRALIA. YOU HAVE AN OTC LISTING HERE. BUT I UNDERSTAND YOU'RE PURSUING POTENTIALLY A DUAL LISTING IN THE US. WHAT'S THE POTENTIAL TIMELINE ON THAT? >> I CAN'T COMMENT ON THAT, BUT WE DID FILE AN S3 PROSPECTUS WHICH ANYONE CAN TAKE A LOOK AT. >> OKAY, WE'LL DO THAT AND HOPEFULLY OTHER PEOPLE WILL DO WILL TOO. CHRIS, THANK YOU SO MUCH. APPRECIATE IT. >> THANK YOU FOR HAVING ME. >> COMING UP NEXT, OUR LATEST EDITION OF SMALL BUSINESS WEEK. WE'LL DISCUSS ADVICE FOR ENTREPRENEURS AND BUSINESS OWNERS AND A PANEL DISCUSSION NEXT. THE DREAM FOR MANY AMERICANS ACROSS THE COUNTRY IS TO DITCH THE CORPORATE POWER STRUCTURE AND TURN THEIR PASSION INTO A BUSINESS, BUT IT'S NOT AS EASY AS MOST PEOPLE THINK. >> 20% OF ALL NEW BUSINESSES FAIL IN THE FIRST TWO YEARS OF OPENING. THAT'S ACCORDING TO THE BUREAU OF LABOR STATISTICS. SO HOW DO YOU START A BUSINESS? WELL, AFTER YOU DO THE FUN PART OF DECIDING WHAT YOUR BUSINESS DOES, PICKING A NAME, DIFFERENTIATING IT FROM COMPETITORS AND GETTING THE PROOF OF CONCEPT, IT'S TIME TO TACKLE THE RED TAPE. THESE ARE FIVE KEY STEPS YOU'LL NEED TO TAKE TO SAFEGUARD YOUR SMALL BUSINESS AGAINST POTENTIAL LEGAL AND FINANCIAL ISSUES. FIRST, MAKE SURE YOUR BUSINESS NAME IS ORIGINAL AND UNIQUE. IT SHOULDN'T BE THE SAME AS AN ESTABLISHED COMPANY. INFRINGE ON TRADEMARK OR SERVICE MARKS THAT HAVE ALREADY BEEN REGISTERED WITHIN YOUR STATE. SECOND, YOU'LL HAVE TO REGISTER YOUR BUSINESS ENTITY WITH YOUR STATE BY CREATING A CORPORATION OR LLC. ANOTHER WAY IS TO GO THROUGH A SOLE PROPRIETORSHIP. ONCE YOU FILE FOR YOUR PREFERRED TYPE OF LEGAL ENTITY, YOUR STATE WILL SEND YOU A CERTIFICATE THAT YOU CAN USE TO APPLY FOR LICENSES. A TAX IDENTIFICATION NUMBER, AND BUSINESS BANK ACCOUNTS. THIRD, APPLY FOR AN EMPLOYER IDENTIFICATION NUMBER. EVERY BUSINESS EXCEPT SOLE PROPRIETORSHIP WITH NO EMPLOYEES MUST HAVE A FEDERAL EMPLOYER IDENTIFICATION NUMBER, COMMONLY KNOWN AS AN EIN, IN ORDER TO FILE TAXES WITH THE IRS. FOUR YOU'LL NEED ALL THE APPROPRIATE LICENSES AND PERMITS REQUIRED FOR YOUR TYPE OF BUSINESS. IF YOU'RE WORKING IN AGRICULTURE, SELLING ALCOHOL, WORKING RADIO, TELEVISION, BROADCASTING, OR IN OTHER FIELDS, YOU'LL NEED CERTAIN LICENSES AND PERMITS IN ORDER TO LEGALLY OPERATE. AND FIVE YOU NEED INSURANCE. EVEN IF YOU WORK FROM HOME, IT COULD MEAN LIABILITY INSURANCE, PROPERTY INSURANCE, BUSINESS INTERRUPTION INSURANCE, OR EVEN WORKERS COMPENSATION INSURANCE, WHICH MOST STATES REQUIRE BY LAW. IF YOU HAVE EMPLOYEES NOW, ONCE ALL YOUR PAPERWORK IS SIGNED, SEALED AND DELIVERED, THE REAL WORK AND REWARD BEGINS. >> THE NUMBER OF SMALL BUSINESSES PLANNING TO EXPAND AND OBTAIN FUNDING HAS DECREASED SINCE LAST SPRING. THAT'S ACCORDING TO BANK OF AMERICA. AND THIS COMES AS CONCERNS OVER THE UNCERTAIN ECONOMIC LANDSCAPE LINGER FOR BUSINESS OWNERS AS PART OF YAHOO FINANCE'S SMALL BUSINESS, BIG OPPORTUNITIES, WE'RE TAPPING INTO WAYS TO ENABLE SMALL BUSINESSES GROWTH. KAREN KERRIGAN, SMALL BUSINESS AND ENTREPRENEURSHIP COUNCIL CEO AND PRESIDENT, ALONG WITH HELLO ALICE, CO-FOUNDER AND PRESIDENT ELIZABETH GORE ARE JOINING US NOW TO DISCUSS. SO, LADIES, FIRST OF ALL, THANK YOU SO MUCH FOR BEING HERE. APPRECIATE IT. KAREN, I WANT TO START WITH YOU. CAN YOU TALK TO US A LITTLE BIT MORE ABOUT THAT BACKDROP BEFORE WE DIG INTO HOW TO HELP SMALL BUSINESS? I'M JUST CURIOUS TO KIND OF TAKE THE TEMPERATURE ON HOW BUSINESS OWNERS THAT YOU'RE SPEAKING TO ARE FEELING RIGHT NOW AMIDST THIS ECONOMIC ENVIRONMENT. >> WELL, THEY'RE DEFINITELY NOT NAVIGATING CHALLENGES THAT HAVE BEEN IN EXISTENCE, YOU KNOW, FOR SOME TIME. AND YEAH, THE INFLATION CONTINUES TO BE THEIR NUMBER ONE CONCERN, AND INFLATIONARY PRESSURES. THAT'S DEFINITELY SQUEEZING, SQUEEZING THEIR BOTTOM LINE. AND, AND THEY'RE ALSO PUTTING A DENT INTO INTO THEIR CONFIDENCE AS WELL. THERE HAS BEEN A PULLBACK YOU KNOW ON CONSUMER ACTIVITY. SO ALL THAT YOU KNOW REALLY IS QUITE CHALLENGING, YOU KNOW ON THE OTHER HAND, YOU KNOW, WHEN WE TALK TO BUSINESS OWNERS, YOU KNOW, THEY SEE THE CHALLENGE AND THEY'RE PIVOTING AND THEY'RE TURNING TO TECHNOLOGY AND USING AI AND A BUNCH OF OTHER TOOLS TO HELP THEM NAVIGATE THROUGH THIS. SO WHERE THERE ARE CHALLENGES, THERE ARE ALSO, YOU KNOW, THEY'RE SEEING SOLUTIONS AND REALLY GRINDING THEIR WAY THROUGH IT. >> ELIZABETH, I WANT TO BRING YOU IN HERE AS WELL AND MAYBE START THERE AS WELL. ELIZABETH. BIG PICTURE. YOU KNOW, YOU'RE TALKING TO SMALL BUSINESS OWNERS ACROSS THIS COUNTRY. HOW ARE THEY DOING? HOW ARE THEY FEELING RIGHT NOW? ELIZABETH. >> OH HOWDY Y'ALL. WE ARE I GOTTA TELL YOU, WE SERVE 1.5 MILLION SMALL BUSINESSES ON. >> HELLO ALICE. AND THEY ARE BEING VERY RESERVED AND CONSERVATIVE RIGHT NOW AS THEY SHOULD BE. CAPITAL IS EXPENSIVE. WE'VE GOT A LITTLE BIT OF A SLOWDOWN. BUT I ALSO THINK THERE INCREDIBLY RESILIENT. THEY ARE BEING SMART ABOUT THEIR CASH FLOW. WE ARE NOT EVER GOING BACK TO PRE-COVID TIMES WHEN SMALL BUSINESS OWNERS OVERINDEX ON CREDIT AND LOANS. THEY'RE GOING TO BE SMART UNTIL CONSUMER SPENDING PICKS BACK UP AGAIN. AND LISTEN, WE HAVE FIVE TIMES THE AMOUNT OF SMALL BUSINESSES LAUNCHING IN THE US RIGHT NOW THAN WE EVER HAVE. SO WHILE THERE IS A CONCERN OF APPROACH TO CASH FLOW RIGHT NOW, I THINK THERE'S A SENSE OF OPTIMISM ON THESE SMALL BUSINESS OWNERS FOLLOWING THEIR DREAMS. >> WELL, THAT'S HELPFUL TO KNOW, ESPECIALLY ON THE CREDIT FRONT. ELIZABETH, I WANT TO STICK WITH YOU HERE. WHAT IS THE NUMBER ONE QUESTION THAT YOU GET OR THAT PEOPLE COME TO YOU THAT THEY WANT HELP WITH WHEN THEY'RE EITHER STARTING OR, YOU KNOW, HAVING A FLEDGLING BUSINESS? >> I THINK, YOU KNOW, THE NUMBER ONE THING WE HEAR ALL THE TIME IS EQUITABLE ACCESS TO CAPITAL. AND I USE THE WORD EQUITABLE BECAUSE ANYONE CAN GET CAPITAL. BUT HOW EXPENSIVE IS IT RIGHT NOW? AND I THINK SMALL BUSINESS OWNERS ARE GETTING MORE SAVVY ABOUT UNDERSTANDING HOW EXPENSIVE IS THE CAPITAL THAT THEY ARE ACCESSING. SO SHOULD I GO FOR OPERATIONAL CREDIT? SHOULD I GET AN SBA LOAN? SHOULD I REALLY THINK ABOUT GETTING THAT LINE OF CREDIT FOR THE FIRST TIME? THEY'RE JUST BEING MUCH SMARTER ABOUT IT. BUT THE NUMBER ONE THING THAT SMALL BUSINESS OWNERS NEED TO DO IS ENSURE THEIR FINANCIAL FITNESS IS CORRECT. ARE YOUR BOOKS IN ORDER? DO YOU HAVE A STRONG BUSINESS PLAN BEFORE YOU EVER GO OUT AND SEEK CAPITAL? >> KAREN, YOU KNOW, WHEN YOU'RE TALKING TO SMALL BUSINESS OWNERS, WHAT WHAT IS TOP OF MIND THERE? ARE YOU HEARING WHAT ELIZABETH IS HEARING IN TERMS OF ACCESS TO CAPITAL, OR WHAT ARE THE BIG TRENDS AND THEMES, YOU KNOW, IS IT JOBS, SUPPLY CHAIN, INFLATION? WHAT ARE YOU HEARING? >> WELL, IT'S SORT OF A COMBINATION OF ALL OF THAT, RIGHT? I MEAN, YOU KNOW, AS I MENTIONED, SORT OF THE COST, THE INFLATION PRESSURES, I MEAN, THAT'S THE BIG ISSUE THAT WE CONTINUE TO HEAR AS WELL AS, TIGHTENING, YOU KNOW, OF CAPITAL AND, AND ACCESS TO CAPITAL AND THE COST OF CAPITAL, YOU KNOW, IS GETTING HIGHER. YOU KNOW, THERE ARE OTHERS, THERE ARE SOME OTHER ISSUES THAT WE SEE EMERGING AS WELL. YOU KNOW, THERE ARE CONCERNS ABOUT CRIME, YOU KNOW, DEPENDING ON SORT OF WHERE THEY ARE. YOU KNOW, WHERE THEIR BUSINESS HAPPENS TO BE LOCATED THAT HAS THAT HAS TICKED HIGHER, AS WELL AS THEIR CONCERNS ABOUT, YOU KNOW, FOREIGN POLICY AND WHAT'S HAPPENING ON THE INTERNATIONAL FRONT, SORT OF THE GEO POLITICAL, YOU KNOW, TENSIONS AND CONCERNS THAT ARE OUT THERE AND HOW, YOU KNOW, SOMETHING COULD HAPPEN OVERNIGHT, YOU KNOW, AND AFFECT SUPPLY CHAINS, COST AND ETC. I WOULD SAY THE OTHER BIG ISSUE IS WHAT'S HAPPENING IN WASHINGTON FROM A FROM A TAX AND A REGULATORY PERSPECTIVE. THEY DO SEE A LOT OF THINGS IN THE REGULATORY AGENCIES. THE DEPARTMENT OF LABOR, THE FTC, AND OTHER AGENCIES AND HOW THOSE REGULATIONS ARE GOING TO IMPACT THE COST OF CAPITAL, THEIR AVAILABILITY, AVAILABILITY OR OPPORTUNITY TO USE INDEPENDENT CONTRACTORS. AND THEN THERE'S TAXING ISSUES LINGERING TOO, AS WELL. THERE'S A LOT OF EXPIRED TAX CREDITS, THERE'S ONES THAT WILL BE EXPIRING, IN THE NEAR FUTURE WITH REGARD TO, THE 20% BUSINESS DEDUCTION. AND THEY'RE CONCERNED ABOUT WHERE THAT IS GOING TO GO AND WHETHER THEY'RE GOING TO HAVE LESS RESOURCES, YOU KNOW, IN THEIR BUSINESS. SO THERE ARE THOSE TYPE OF POLICY UNCERTAINTIES AND ISSUES THAT WE'RE HEARING MUCH MORE, AND ELIZABETH, I WANT TO PICK UP ON ONE THING THAT KAREN SAID, AND THAT'S ABOUT COST OF CAPITAL. >> I'M CURIOUS TO GET YOUR TAKE ON, YOU KNOW, WE SPENT ALL DAY LONG TALKING ABOUT BIG PUBLIC COMPANIES AND THEIR ACCESSIBILITY. YOU KNOW, HOW THEY GET CAPITAL AND WHAT'S HAPPENING WITH INTEREST RATES. WHAT ARE WE SEEING ON THE SMALL BUSINESS SIDE? ON THAT FRONT, CAPITAL IS VERY EXPENSIVE RIGHT NOW. >> AND THE IRONY IS THOSE TWO ARE VERY CONNECTED. SO INTERESTINGLY, I TALK TO BANKS EVERY DAY AND I PUSH THEM REALLY HARD TO THINK OF CREATIVE WAYS TO GET CAPITAL IN THE HANDS OF SMALL BUSINESS OWNERS IN A CHEAPER WAY. AGAIN, WITH FIVE TIMES THE AMOUNT LAUNCHING RIGHT NOW. TO ME, THAT'S A GREAT MARKET. I THINK LARGER FINTECHS ARE CATCHING UP. IF YOU LOOK AT WHAT SQUARE AND NERDWALLET AND OTHERS ARE DOING TO GET CAPITAL IN THE HANDS OF SMALL BUSINESSES, I THINK THEY'RE BEING MORE INNOVATIVE THAN THE BANKS. HOWEVER, IF IT'S EXPENSIVE FOR BANKS, IT'S EXPENSIVE FOR SMALL BUSINESS OWNERS. SO WE REALLY HAVE TO WATCH THAT AND THINK ABOUT IT. >> ELIZABETH, KAREN, THANK YOU BOTH SO MUCH FOR JOINING THE SHOW TODAY. WE APPRECIATE IT. >> THANK YOU. >> COMING UP, WHY CHANGE COULD BE BAD FOR BUSINESS AND EMPLOYEES ALIKE. WE'LL DISCUSS THAT ON THE OTHER SIDE . COMPANIES LAYING OFF WORKERS ACROSS INDUSTRIES. VACATION RENTAL COMPANY. VACASA CUTTING 800 JOBS JUST YESTERDAY. THIS OFF THE HEELS OF PELOTON. REMEMBER CUTTING 400 JOBS EARLIER THIS MONTH. AND TESLA SLASHING JOBS BOTH IN THE U.S. AND CHINA. AND JOINING US NOW IS THE AUTHOR OF THE NEW BOOK, THE PROBLEM WITH CHANGE, ASHLEY GOODALL. ASHLEY, GOOD TO HAVE YOU. GOOD TO BE HERE. SO YOU ACTUALLY JUST WROTE ABOUT THIS ISSUE. IS AN OP ED FOR THE NEW YORK TIMES, ASHLEY. AND I THINK YOU WERE KIND OF SPECIFICALLY FOCUSED ON LAYOFFS IN SILICON VALLEY. AND I THINK YOU CALLED IT THE UNNECESSARY LAYOFF. WHAT DID YOU MEAN BY THAT, ASHLEY? >> WELL, SIMPLY THAT THE COMPANIES ARE GENERALLY PROFITABLE WHO ARE MAKING THESE LAYOFFS. AND I THINK LOTS OF US LOOK AT THAT WHEN WE HEAR LAYOFFS AND GO, THEY PROBABLY HAD VERY LITTLE CHOICE. THEY'RE PROBABLY LIKE STRUGGLING TO STAY IN BUSINESS, BUT ACTUALLY, IF YOU LOOK AT THE WAVE OF LAYOFFS SINCE THE BEGINNING OF 2023, PARTICULARLY IN THE VALLEY, YOU FIND OUT THAT THE COMPANIES DOING THE LAYOFFS ARE PRETTY PROFITABLE AND INDEED HAVE TURNED AROUND AND SUBSEQUENTLY HIRED PEOPLE AFTER THAT. AND SO YOU HAVE TO ASK YOURSELF, REALLY, WHAT'S GOING ON? >> ARE THEY ACTUALLY DO YOU THINK PART OF WHAT'S GOING ON THERE, THOUGH, IS IT'S THIS SHIFT IN, I MEAN, WE'RE TOLD IT'S GOING TO BE HISTORIC. YOU KNOW, INTERNET, MOBILE. NOW, I AND SOME EXECS IN SILICON VALLEY ARE JUST SAYING, LISTEN, BECAUSE OF THAT, I'VE GOT TO EMPHASIZE SOME AREAS SOFT PEDAL OTHERS. >> I THINK WHAT IT IS MORE PROFOUNDLY IS THAT WE'RE ADDICTED TO CHANGE IN ORGANIZATIONS, AND THAT WE SORT OF HAVE BEEN LEADERS HAVE BEEN BROUGHT UP TO THINK THAT IF THINGS AREN'T GOING THE WAY I WANT THEM TO GO, WHAT I HAVE TO DO IS TO CHANGE THINGS AND CHANGE THINGS AND CHANGE THINGS AND CHANGE THINGS AND CHANGE THINGS AND WHAT I'M TALKING ABOUT IS HOW THAT MAKES IT ACTUALLY HARDER FOR PEOPLE TO DO THEIR JOBS, AND HOW IT MAKES THEM MAKES IT HARDER FOR THEM TO HELP AND DO THEIR BEST WORK, AND THEREBY THEREBY GET THINGS SORT OF IN A HEADING IN A BETTER DIRECTION. >> I LIKE THE WAY YOU PUT IT IN THAT. >> IN THAT OP ED YOU SAID THE IDEA OF DISRUPTION HAS ALSO METASTASIZED INTO A SORT OF CULT , WHICH IS EXACTLY KIND OF WHAT YOU'RE DESCRIBING NOW. I THINK, OF, YOU KNOW, OBVIOUSLY META HAS DONE A LOT OF CUTS. THE OTHER BIG TECH COMPANIES. BUT WE MENTIONED TESLA COMING INTO THIS AND I THINK OF ELON MUSK, MOST PARTICULARLY WITH THIS KIND OF THING, BOTH WHAT HE DID AT TWITTER NOW X AND NOW WHAT HE SEEMS TO BE DOING AT HIS OWN AT HIS MAIN JOB. TESLA, WHAT DO YOU THINK REVERSES THAT? DO YOU KNOW WHAT I MEAN? WHAT? I MEAN, BECAUSE FOR THE PUBLICLY TRADED COMPANIES, THEY TEND TO BE REWARDED WHEN THEY DO THESE THINGS. >> I THINK THAT'S A BIG PROBLEM, IF YOU LOOK AT THE SCIENCE OF HUMAN PERFORMANCE, WHICH IS ARGUABLY A KIND OF IMPORTANT THING TO LOOK AT IF YOU'RE LEADING A COMPANY THAT HAS HUMANS IN IT AND WE'RE TRYING TO HELP THEM PERFORM, YOU FIND OUT THAT THE FOUNDATION OF A LOT OF GREAT PERFORMANCE IS STABILITY, WHICH IS NOT STASIS. IT'S NOT STANDING STILL, BUT HAVING A REASONABLY PREDICTABLE ENVIRONMENT. SO WE KNOW HOW WE CAN PLUG IN AND WE KNOW HOW WE CAN INTERACT WITH OTHERS, AND WE KNOW HOW WE CAN COLLABORATE AND WE KNOW HOW WE CAN INNOVATE. SO I THINK YOU HAVE TO LOOK AT COMPANIES THAT ARE DOING CHANGE AFTER CHANGE AFTER CHANGE AFTER CHANGE, AND GO HOW DOES THAT BECOME A LONG TERM VALUE PROPOSITION FOR ANYONE? IT'S CERTAINLY VERY HARD ON THE PEOPLE ON THE FRONT LINES AND LEADS TO A LOT OF THE DISQUIET I THINK WE SEE IN THE WORKFORCE AT THE MOMENT, HOW MUCH DO YOU THINK ACTUALLY COMES DOWN TO A LEADER, COMES IN AND HE OR SHE JUST THINKS, I LISTEN, I GOT THE BIG OFFICE, I GOT A BIG PAYCHECK, GOT TO MAKE CHANGES. >> I MEAN, THAT'S WHAT'S EXPECTED, RIGHT? >> I THINK THERE'S A LOT OF THAT. YEAH. BECAUSE WE ALL THINK, YOU KNOW, WE THINK, WELL, I WAS SENT HERE TO DO SOMETHING RIGHT? I WAS, AND I'VE GOT TO THEREFORE DO. I CAN'T DO NOTHING. I'VE GOT TO DO SOMETHING. I WAS SENT IT. SO. SO WHAT SHOULD I DO? WELL, CLEARLY I MUST CHANGE THE ALL THE THINGS THAT I SEE. IT'S A VERY RARE LEADER, A VERY RARE LEADER WHO CAN COME IN AND GO. YOU KNOW WHAT? I'M GOING TO FOCUS ON LEARNING AND I'M GOING TO FOCUS ON UNDERSTANDING THIS PLACE AND UNDERSTANDING WHAT MAKES IT TICK AND UNDERSTANDING HOW THE PEOPLE HERE THINK ABOUT IT. IF YOU APPROACH LEADERSHIP FROM THE PERSPECTIVE OF YOUR JOB IS TO HELP OTHER PEOPLE DO THEIR JOBS, YOU MIGHT THINK LIKE THAT, BUT IF YOU SORT OF FEEL COMING IN AS THOUGH MY JOB IS TO SOLVE EVERYTHING, AND MY JOB IS TO BE THE ANSWER TO EVERYTHING, THEN I THINK, AGAIN, YOU SORT OF TILT INTO DISRUPTION AND CHANGE VERY QUICKLY. >> ARE THERE EXAMPLES OF EXECUTIVES THAT YOU THINK HAVE DONE IT RIGHT THAT HAVE CHANGED WITHOUT THAT KIND OF UPHEAVAL? >> I THINK WHERE I USED TO WORK IN PROFESSIONAL SERVICES, NOT PUBLIC PRIVATE, THE PARTNERS OWN THE COMPANY AND YOU HAVE A CEO ELECTION EVERY FOUR YEARS, AND THEN YOU STAY THE COURSE AND THINGS TEND TO CHANGE MUCH MORE SLOWLY IN THOSE ENVIRONMENTS. CERTAINLY IN IN 14 YEARS AT DELOITTE, I SAW A LOT MORE DELIBERATION ABOUT CHANGE AND A LOT MORE PUTTING THE PEOPLE FIRST, BECAUSE THE PARTNERS KNEW THAT THEY NEEDED THE BEST PEOPLE AND THE BEST PEOPLE WERE HARD TO FIND, AND THEY WANTED TO AGAIN SUPPORT THEM IN DOING THEIR WORK WELL. SO I THINK THE PUBLIC PRIVATE DIFFERENCE IS SOMETHING WE COULD ALL LEARN FROM. >> INTERESTING. THANKS, ASHLEY. >> APPRECIATE IT. WELL, THAT'LL DO IT FOR TODAY'S YAHOO FINANCE LIVE. BE SURE TO COME BACK MONDAY, 3 P.M. EASTERN FOR ALL OF YOUR COVERAGE LEADING UP TO AND AFTER THE CLOSING BELL. HAVE A GOOD WEEKEND
