Playing the Post-Election Pop 11/14/24
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CD, thanks so much. Welcome to the half time of court of scotland front and center of this out the post election rally and how far some say IT could still go. We'll trade IT with the investment committee today joining me for the hour.

Josh Brown, Jason snipe, Steve vice role at post nine with the markets a bit in the red day or ppi was little hotter. The fed chair, by the way, speaking this afternoon around three o'clock, we'll cover that live on closing bell yields erruptive today just as the major averages since the election. Let's just say S M P S up three and a half percent in this in this post election trump t rally.

If you are called that, the prevAiling thought seems to be that IT has more room to go. Jp Morgan says that today, soc jen says, um you can get about sixty six hundred a little bit north of that, possibly sooner than they thought. Was that sound like .

you I think there's a reason to believe that that's the case if somebody asked me two days ago, but I put a one to you, a, god forbid, going to your head, you have to pick ten percent sell off off between now in new end, or a ten percent melt up, like for me, the obvious guesses melt up. Just understanding what I understanding of human nature.

A lot of people have been piling into treasury bond e tf, record flows for black rocks, treasure etf, stage streets go on down the list. Um obviously, money market funds, I think, are now approaching seven trillion dollars. You've got people that put this kind of caution into their portfolio going the election.

Understandably, we didn't get that chaotic thing that everyone was worried about. And I think that's what you saw take place over the last couple of days. Just people say, okay, we're not going to do things with ballads in the supreme court.

What can I buy? I think people need to be cautious here though, because there are a lot of stocks that have already had that melt up. And like this is where you use R S I.

So I talk about about r asi on the show lot. It's not subjective if it's not my opinion, it's a mathematical calculation that tells you how overbought a stock might be. I'm seeing rs s in the seventies, in the eighties, and then i'm seeing some big moment of darlings very quickly dropping out.

And we look at the best stocks in the market. We have one hundred twenty seven names on the list that's really high two weeks ago. S at fifty. So a lot of stocks have already done the year and melt up. They just pulled IT forward.

Talk about R S, I A lot. And you're talking about IT now and you say, well, seventy, eighty. That sort of a screaming that's a lot reason reasonable. So you want to buy things .

that are crossing into the sixties on their way to the seventies on our side. Is nothing wrong with finding the stock with an hour site grade of than but you're buying definitioned and over bott names. So I want to give you some examples of momentum names that have just fAllen out.

This is important because this is where you lose money. You buy the top of something after you've just watched to go up eleven, twelve day straight and then people take profits before you even know what hit you. Carvin just came out microstrip, gy, Robin hood, marvell, coin base.

Very, very quickly, these stocks went from being the best stocks in the market to await a minute. Maybe this is over done. So I want to tell people, if you're looking for candidates, if you want to take trades, if you want to play U N melt tub, don't buy the hottest st.

Of the hot stocks, because that trade may have already happened. We see this time and again in markets like these, it's really tempting when a stop just continues high or day after day. I think you want to just be a little bit more cautious about your entry if you're playing the top moment of names.

I mean, you've got firms talking about as long as ten year yield remains under control. Yp, to them, that means under five percent that you have a scenario in which, as I said earlier, socgen sixty six, sixty six is plausible sooner than later. They suggest where at six thousand, I mean, all right, so you're going to go another ten percent minimum. So as long as yields don't get a little out a hand here, what do you think?

I think that five percent marker is very important to bring up. why? Because the last time the ten years was at five percent, that was october twenty twenty three, when the mark was down six percent, the sap was down six percent.

So I think if we stay in the trading range, that's absolutely plausible. The other thing I would say, I think that's a concern for the market is the multiples close to twenty three times. So there's a lot of concern about the multiple and wires yields moving up.

And I think for for my vengeance point, IT could easily be both inflationary concerns and also the market is good GDP round rate of three percent. I mean, there's a lot of positive things to like and there's a lot of stocks moving. And I think that everything rally is obviously what's playing out. So I continue to be caught tious, but I do think there's continued opportunity here, at least through the .

end of the year right now. Multiple is twenty two point one times ten year averages eighteen point two. So even while firms like barkley say evaluations are elevated, you still that doesn't mean anything really.

You could still have a melt up into the year and that is a real possibility. You have people like at your Denny talking about similar things. I want you to listen to what he told me on closing value yesterday. And and we can talk on the other side about expectations, if not great expectations for this market.

I've talked about the possibility of a melt up scenario. I mean, I I keep talking about the the ring twenty twenty years, uh, but I give that at fifty four, five percent probability, I I would say twenty five percent to a melt up to too much of a good thing. I think the feds make IT a mistake here, lowering interest strates and stimulating an economy that that's already doing quite well .

and that could very well spell over into the .

stock market and created melt.

You think about the idea of melt up, whether we've got, you know, a certain level of euphoria developing. As nelsen pells talked about yesterday, trees don't grow to the sky. Definitely not interrupted. There will be something that will upset IT, that being the rally. What he says just can't continue at the current clip as positive as he is on the outcome of the election of what it's going to mean for the economy and all sorts of other things. What do you think about that?

Yeah look like josh. I do think that going to pick one side of the corns can be the melt because that's what we've see really intend to look at a different way. I'm looking at IT.

What's my risk? And I believe that the cohorts that invest in this market as a completely different angle on IT and view on markets than what we grew up with even less than a decade ago, meaning that the market gibed by half of every stock is own by an index fund, right? And then you've got algos at account for a lot of the trading volume.

So when the comes of fundamental alysa evaluation, that's actually lesson court. And if you take a look at cohorts that i'm dressing, you've always had A V shape recovery except for the pandemic, which every bike can explain away the the early part of the pandemic, not the x part. So as I look at what's the risk being here despite elevated multiple that aren't widely elevated, they're not the point where I was going in you and say, oh my god, oh my god too.

I and else felt this ripe. You can never predict what's going caused. Marketing really hit. My point is that the invest in this park of the last few years has been the right thing to do, and that shouldn't change. So why I agree with your view, definitely on rsi, those just fact, right?

It's not what I look at when owning fundamental names, and you're not suggest either, it's for trades. So i'm comfortable by fundamental portfolio even though I believe that valuations expend in some names like microsoft, but it's moment in time. So if they come down, they will eventually grow back into the valuation.

I give you an example of what thee'd talk in the back. I think it's a really important point. There's almost like two different markets right now.

Let's put up this company at love and APP. Nobody, nobody I talked to has even heard of this stock. It's up seventeen percent this week.

It's up two hundred and forty six percent since the spin. Yeah, it's up five hundred seventy four percent of last year he owns it's a moment of name. So IT IT would definitely i'm sure it's an amazing company.

I don't know that any fundamental change could actually justify what's gone on in the stock like this. The people who are in that stock are not wearing like, oh, should I buy that or proto in gam? That's IT.

That's its own world. It's its own market. And so IT becomes really important at IT, even if you think there is a melt of coming, IT becomes really important to know who you are as an investor and know what game you're planning to .

play six hundred percent year to day.

But if you're wrong, the thing, please, I urge you sit in four in your screen for eight hours a day. okay? Most people aren't going to do that.

So you really you have to know who you are. And if you don't, stock markets are really expensive place to find. So you these .

other are stocks that are on your mind, if not a list of ones that you think could be poised for a break out. You don't own either of these names, but you've called them to our attention and for our viewers to T. O.

yeah. All the ion. yes. Why so? Well, these are great setups.

And one of the things I tried to do on the show, even if i'm not involved in the trade, is just put the spotlight on the stock that you may not have heard of, where something notable happening with Price, and then take a look at the fundamentals and try to understand whether or not that trend has the potential to continue. I want to look at a one year chart of let's do old Daniel freight line, O D, fl.

This is one of the largest ltl trucking companies in amErica that's less than truck load. So they're shipping for everyone and fifty states, twenty three thousand employees all over the country. This stock has now broken above its spring highs.

Very convincing with a big gap up. And over the last couple of days, it's been retesting that gap on lighter than typical volume. You have a fifty days cross over about the two hundred, which signals a momentum shift in the linstock.

If this we test is successful and IT doesn't get back down into the gap, use candles to charge for this. There's no reason why this couldn't continue to roll higher. It's in a group of stocks that have been doing well.

It's one of the Better performers, and it's about to clear that resistance from six or seven months ago. I think that should be on your radar. And if you're shorter to more into media to oriented, this is exactly the type of stock that hasn't been discovered yet, but could be discovered if and when IT convincing takes out that April high.

Let's do you really quickly this name. More people know what that is. It's an asset manager.

The asset management stocks have been on fire old year. This is actually one of the lagos. But now without a break resistance, tero Price is not just mutual funds.

They've made big investments since of private credit, private equity, they're involved in cypher. And this stock is clearing three years worth of congestion at these levels. It's probably understand, ed, it's probably cheaper than the group.

And again, it's a pending break out. You can see this right here. Look at that congestion going back to the buyers are taking control of this chart.

And I think you want to have IT on your radar. There are setups like this in every sector. I think your starting point as an investor becomes really important .

to find them another stock. Most of I think it's fair to could you, anna, call a mini break out Jason and amazon ah if you want to um it's the best mega .

cap happy best .

mega cap tech name. I'm not including tesla in that if you want to talk mega cap in general stocks over trillion in market cap and tesla obviously the best performing once since the election. If you take tesla out of that mix and you just talk about um technology, focus names, amazed best intellectuals, up six and a half percent.

So new record high. I know it's down a little bit today. why? Sh, you're in the name too, right? What do you think about this break out that this stock is is in the justice. I call them a mini break out of five.

break out I all before month ago or so or weeks ago. So it's going to break out. Look, I think it's kind interesting.

I mean, amazon a has been left behind, so to speak, while all the others had moved up, meaning mean meaning apple until recently. So it's about time I caught up. But it's also fundamentally driven if you look at what Jesse is done to the company, he's removed the vanity projects.

He's focused on ebitda, so is focused on profitability, increasing profitable. Of course, they are all very profitable. So it's a name that people just have been sort of ignoring for.

And I mean, when I say people doing on the margin, you have long time holders. I'm a long time holder and others in terms of new money coming into IT. IT needed to have a story and the market needs to get comfortable the story. And so he was Jessie delivering on IT jays.

I mean, it's up forty percent, forty percent year to date. okay. Um is that being appreciated? You .

know what? I think it's starting to finally, I mean it's it's up fourteen percent in the print, you know very sad sales and E, P, S. growth.

Listen, last quarter IT seems like there was two years ago, but they had a top line miss, right? That's way, way, way back in the past at this point of AWS Operating margins of profits to this point, we're up fifty percent year over year. So I think and the other stories is this amazon hall new business for products at twenty dollars or less. I think that's going to be a nice vertical for the company.

I'd like a lot of things here. And I think the other part of IT is people looking for legitimate companies that are going to a benefit from A I, but haven't had that dialogue, that narrow that can be going and that starting to be realized in amazon A I, which I ve been using for years and I ve been round for decades. But when you take a look at what what I can do, their cloud basis drive more use in the cloud, and they'll developed their tools eventually.

That's why they have the investment in anthropic, right? It's been identified now. Maybe they are just starting to get a little more credit and Price target today. Need them two fifty from two ten. So the street continues to chase a lot these names higher, but that would be a touch less than twenty percent .

upside from here. And I know went up I know went up a lot already. But if if you puddle lens back and look at the last five years, the stocks spent a lot of time doing nothing.

And I just, he spent his first year kind of cleaning up the excesses of the pandemic error. Hire too many people. They try to do too many things at once.

So that was year one. Year two was just pure defence, just like and then year three was, oh, no, we can't get left behind in an a okay, fine. Now we're in a different error.

We haven't seen name is on playing offence, like visibly playing offence in a long time. And people forget when this thing is on its course, what could happen. Just consider the blitz of headlines in the last forty eight hours.

They just wanted to tell a health business, amazon is going to come out with a low cost, upfront pricing clinical visit that you do online. They have the potential to put this in front of more potential users than all of the other publicly traded. Tell a health companies around the world combined, and they can bendle that with free medications delivery through prime.

If you're already paying for prime, why? And you need prescriptions from their prescription business, why wouldn't you also do your teller health visit that way for a new scripts? Of course you would.

They're gona do IT Better than anyone else. They're going to be dominant. That's amazon.

Offence number two, the team o competitive amazon hall IT explicitly there's an audience for five dollar junk from china and IT seems to be a big one. My son's in in that category. I don't know what he's buying, what they are sending.

I don't want any more team mode deliveries. Amazon just launched this thing based at a seattle. They're going to go. But ultimately, this could be a brand new vertical to Jason's point that nobody was really counting on them planning in and they're actually going to charge you for deliveries for anything under twenty five thousand. Last training um two chips are amazon.

To answer to the conundrum, all of these AI workloads, it's too expensive and too compress m for the invited GPU this god to be something in between that's more customized to the AWS user and that we can make some more money using. So you are going to see a ubiquity of amazon chips training um to chips in all A W S environments. This is amazon going on the offence and that's what the .

story point about. We're lesson a week away. You guys know and everybody knows at this point from in videos earnings right the twenty of so it's going to be mid next week um if you all notice to jay, the the tremendous outperformance that software stocks have had verses semiconductor stocks since the election.

Software the ig v of ten and a half percent since the election, the S M H is up one percent. What's up with that? Yeah listen.

IT IT could potentially be some of the tariff talks that's been campaigning about and what's going to happen for us, this targeting targeting terrorists potentially when the administration begins, that's possibly the issue.

But when I think about software and we thought about early part of the year, when you're think about cap backs s in that area and spending and spending starting to come down and in other areas in AI and cybersecurity in other places. But I think it's always been the second derivation play. And I think you're starting to see that ring true where you're start to see use cases in the service now and other software businesses. So I continued to like software as an opportunity .

going into twenty five. So you're in service now, as you said, into IT oracle palo to obviously, i'm not talking about the hyper scaling mega cap names of talking like a little bit away from that. But in palo alto oracle service now into a crowd, some sa toast.

We talk about those all the time. jeff. Grapes rotate out of the semis broadly. Now the fact that the meet the s mh. Is given back all of its post election gains they're under performing.

What do I do with this crowd strike? Been incredible. That's one of the named i'm in another one that we don't talk about that off.

And at lassan, the ticker is team this stock. If you look at a one year chart, this is a break out of progress. There are just a lot of there's a lot of demand for technology, but there is less demand for semis.

And to my stock investors, I think there's some sense that, that semi trade has already been made. And then IT gets a little bit sticker if the anti china rhetorics starts to uh, ramp up concerns about taiwan on on on on. The software names don't quite have that uh, stigma to them. And so maybe that's the rotation.

Keep you on that stock. Two, along with the group, as we said, software stocks have just done quite well, especially to chips to other movers we need to talk about today. Disney, it's our part of the day because it's soaring stay since a february eighth of this year, about fifteen billion in market cap IT is leading the doubt a day.

There's a stock of seven percent don't see a move like that eighth straight positive session. Let's be the longest rally since july of twenty eighteen. Jim levin thought he joined this on the phone because we need his point of view on this. Is this about the guidance and the magnitude and I guess the visibility that they think they have?

Well, I think IT, is that scot, first of all, think you crammed me on your honor. I think this was all around a great quarter. You've got to beat.

You've got to raise. You also got Better performance from the experiences, the same parts which you have still remembers the last couple of quarters. There's been some concern about that undershooting expectations.

I've said that I thought that was just a cyclical downturn that appears to be the case. They are predicting growth. There are growth is higher than expectation and by the way, pressure growth for the next three years as looking higher than the expectations.

You know finally, the streaming business came in much Better than expectations. That's a high, high market business. There is a lot to like about this report. I I think it's going higher from here. The spoon in the spring summer was on that theme park disappointment, which is looking like it's gonna rapidly in the rear view mirror.

They don't just generally have the ability or the maybe the desire to try and give guidance for, for that far out. But that seems to be one of the thoughts today that they feel comfortable enough to do that and it's being deemed good enough that that's why the stock is up to the degree IT is.

Yeah, it's a little bold, honestly. I mean, they're putting out a cause by quantitative numbers of single digital growth this year and then double digit growth and earnings per share the two years after that. There's a long time out there to predict.

Um obviously, they feel confident in IT and that you know double dish earning per share group is not Price into the stock, in my opinion, at this multiple. Now I say as multiple around twenty one finds this year earnings, but estimates are certainly going up. So I really think you're getting IT at the right Price here for those growth rates even after the revenue you have had that I think you should be buying there.

Hey, Jimmy, the big thing to me, the big positive to me was the reversal of fortunes in the direct consumer segment, the streaming business. So we were hearing everywhere last year streaming a bad business is a bad business. But turns out it's not so bad when you have some consolidation and you have some companies basically give up.

And disney was never going to be one of those companies they stuck at out. They rationalized costs three hundred twenty one million and Operating income for this segment in the quarter versus a loss of four hundred million dollars in the same quarter last year. I think we're out of the woods on on streaming profitability. We heard good things actually on profitability even from Warner brothers. What do you think and what are the ramifications going forward for the stock?

Yeah, I look, i've been talking about streaming for quite some time. And josh, I think they are out of the words. So it's not just that they turned profitable earlier and with greater size than expectations. Is that the expectations for next year, in the years there after in terms of the estimates are simply .

too low for streaming.

You have you to understand something and you I M just to understand this is a high, high incremental margin business. Are the streaming Operations don't work any hard to harder. IT doesn't cost them more as they add four million subscribers and they did at subscribers at this quarter, which is good as well.

So you know they're seeing a lot of other tips from the uh, ad supported tears. Those incremental margins are tremendous. That's what I love about this business.

Well, that I mean, the executives are, are pretty they talk in the quote, a significant grow area continues to be streaming. They say, let me get you quickly on cisco because it's not positive. The stock, I think is still lower, four straight quarter of declining revenues. It's up four percent since the election, but we're given two and a half back today. What do we think .

this is a great report wasn't you are factual correct that revenues were down. You have to understand as many people in the back due that last year, there was just a gorge of networking equipment orders that has been digested that was a symbol of, uh, customers time to get ahead of supply change disruption, which by the way, have used right now. The growth picture looks great.

I think what you're seeing in terms of being down today's, Scott, is simply profit taking is about thirty percent three. Um the multiple here, you understand this is going to be another company where the estimates are going to go higher. There's no way they don't go higher on this report, which is the third excelling report in a row.

And what I think chuck Robins in the management team is doing is, yes, they raise guidance, but not by as much as some people wanted that smart, that is very smart, okay? They don't want to get ahead of their skies. They don't want the analyst community to get ahead of their skies.

And then there's this point in quarter and they get punched in the nose. So they're setting reasonable expectations that can easily be beat going forward. This is yeah and they're buying back shares, paying down, get good, divided. This is an exelon ent report.

Good stuff. I got a bounce, jim. My thanks for calling in. Appreciate reports on two import stocks worth today. Jim laving, though, coming up the bit coin.

Bana, why getting in on the act? He has two new moves to tell you about today will break down the trades ahead. First, though we do have our calls of the day as well. We're back in just two minutes.

Let's do some calls today from the street live nation. The target bumps to one forty nine from one to twenty five by IT B. A, A.

They say a attractive opportunity to only growth already ended live entertainment company benefiting from favorable trends josh Brown owns. Is that stuck? What do you?

Yeah I look, I think they've made IT pretty clear that their strategy going forward is to in addition to managing venues to build some of their own first specific events. Um it's a lot of cab CS, but IT appears that people like IT and this stock is now making another record high this year. So uh, I remain long and um I hope that Price target plays up.

All right? Netflix, pick eight fifty. J P. Morgan, new record high to day. Jason snow, you take that one.

please trading at all times, times scot, I mean, it's up seventy one percent year today. I think this is one of those companies that finally has of the streamers has a luxury of really focusing on profitability. E, P, S.

Growth is at forty five percent, revenue growth of fifteen percent. And again, there are four into life. Sports is the major city's for them going forward. We'll all be watching the logan ties and .

fight on friday. Okay, a go by top picket. cowin.

Jc, you got that too. This said fifty four times earnings. Fifty four is expensive.

but I think it's expensive for a reason. I mean, there are earnings jug ga. They manage inflationary projects very well through the pandemic C. I think they they have a very strong consumer base. And when I think about um they are client and and how they're kind of managing expenses in their value conscious, I think costco continues to be the right play here. And and also they finally raise ed Prices.

So I think that's also alright, ubs taking down their oil Price forecasts, they say they're still constructive. Your Baker hues, which is your recent by you've had the I O. For a while. What do we think about this trade here?

yeah. So Baker hues, I initially got into the trade on technicals and are not very big into oil stocks in general. I keep the IO on because this really no other way to hedge geopolitics other than having some explosions of oil that ties in your portfolio.

But B, K, R looks outstanding right now. The what happened now, it's consolidating those gains. I think this stock is probably perfectly position for deregulation in the energy sector. And drill, baby drill.

So I like IT. I'm with IT some stocks that are moving on. Some interesting news coming out of the of the trump transition team, if you want, according to reid's, let's put up shares of ribon in the day because the stockings down seven, eight hundred percent.

We're going to cycle through some of these EV names for you because roydon is reporting today that the president elect transition team is planning to kill the seventy five hundred dollar consumer tax credit for EV purchases. The body know what's been taking place with EV demand, obviously, which I slow now text less down on this news too, but the thought is that you on must supports this move. Yes, IT may hurt tesla sales in the near term, but if IT hurts his competitors worse, so be IT, according to him, probably right naos down a lot filled. O joined us on the phone now because this is really interesting development, feel that I am not so sure as a big surprise to anybody, but if there's anybody who can put perspective into this kind of news at you. So what do you make of IT as we watch these stocks cell off on that headline?

I think the most important thing for tesla, because they are the king of the hill when IT comes to election c vehicles in the us. Two things. One, they have the most affordable ably Price models in terms of the model.

Three, in the model. Why that if you don't have a seventy five hundred dollar discount yet, there are some other models that are comparably Price. But generally speaking, those are the two big sellers. You can still find buyers at the Price point where both of those are at even without the seventy five hundred dollar federal tax credit.

So while that may impact sales to an extent, IT won't have a huge impact, as IT will, with other eb company that have higher Price models, a smaller portfolio of models available and who really have used the seventy five hundred dollar federal tax credit to increase their sales. So that's why you're not seeing as big of reaction with test classes as you made with some of the other automatic ers. And the second thing to keep in mind, Scott, is that for elan, musk and tesla, while selling electric vehicles will always be an important part of the company, the big pivot has begun.

It's towards robot taxes. And what's far more important in their future and in where the stock goes is what may or may not happen when IT comes to regulation of or development of robot taxi. And that's why any headline with regard to that and the trump s.

Administration blessing the development of robot taxis eta, that's gonna ve to stocks far more than the federal E. D. Tax credit.

What's the impact fell on on a general motors, for example? Well.

there will be some, there is no doubt about that. Even look at IT becomes much more difficult to sell an electric vehicle a where you can offer customers in the deering, uh, seventy five hundred dollar tanks credit that right now can take right off the Price in the showroom IT used to be you head to wait until you filed your federal tax returns. And a lot of people complain, but I don't really notice IT.

It's the months the month payment that drives the sale of a vehicle, which you get now with the seventy five hundred dollar federal tax credit if that goes away, IT becomes more difficult. Having said that, general motors is making serious progress in terms of rolling out more affordably Price model. And so the question becomes, how much does this slow down their transition? The demand that is there in the market that they are expecting to be there as you're going to twenty five and twenty six?

Yeah I mean, this feels very much like being sort of willing to lose the battle, if you will, but to win the war in in the big picture that he's willing to sacrifice sales in the near term by being in favor of something like this, which tesla executives are said to have been in favor of bit if he knows he's going to win the big long game right against these other competitors who are not nearly as big in terms of market share like a river in, for example, but certainly have big aspirations.

Yes, hundred percent. And in the big lang game, gott, i'm going to come back to IT again. It's robot tanka development that is really where elon musk, his leadership team, believe that tesla IT really has the brightest future in terms of potential for profitability. And IT may not happen as quickly as many people are hoping you will happen if you're a tesla investor. But if he can get the trumpet administration to work with them in terms of clearing some of the regulatory hurdles Better out there that could have hard radar impact than the the annual sales of electric vehicles.

Yeah, good perspective. feel. Thank you. Let's fill the both on the beat.

It's always it's worth noting there's an income cap on whether or not you even get to seventy five hundred dollars if you make more than one hundred and fifty thousand dollars in in gross income, you don't get IT anyway. How many people buying cyber trucks? You think you're applying for tax credits? zero.

Yeah right. If you're buying a room, you're probably not buying IT all cool. I get seven thousand dollars back from the government.

That's one two. What is more likely to be hurt by this going away? I would argue the chevy blazer eva. I would argue the chevy EQ ox, the ford one fifty lightning. What else hundred prologue is like is up to seventy five hundred.

Who gets heart more? A tesla model y, which is almost like a standard purchase or something like that, that nobody really wants. So I don't think this is a killer for tesla stock. I'd be much more worried .

about IT if I were long riving tesla like forty percent since since election day for for obvious reasons. What is reporting that? Representatives of tesla told the transition committee they support the move according to sources that that they had spoken with had just .

one more than robot taxi. The economics for that have not been settled. When you were driver, you were driver, lift driver. They are paying for the maintenance, they are paying for the gas, they're paying for the insurance.

One of the reasons to why wy mos been such a big drag is that the company has to pay for all of that. So the charged in the same fees as uber drivers. So that, that economic you know how validation is not there yet, and that's going to take a while to get there.

So let let's take break. We come back. We all obviously, we're to talk about this bit coming bananas. A post election voice has a couple moves to document, and we're also gonna a special report on what wall street ts thinking about and what they're doing about this bananas a and the boom and how they're going .

to meet this demand. I'll do IT next.

Who you are back on a half time report. I'm so on ahead now with your cnbc news update. Some republicans and most democrats on the standard judiciary committee saying today they want to see a house ethics report on mac gates president election ms.

For a turney general, but republicans also said they are willing to give him a fair hearing. A report or on gaze was set to be released tomorrow, but he resigned from congress yesterday, ending the committee's jurisdiction over him. The committee was looking into whether he engaged in sexual misconduct and illicit drug use.

Gates has maintained his innocence. Chinese president engaging paying will unveiling megapode perote today, the one point three billion dot project is majority owned by chinese shipping giant and costco and is expected to bring in more than three billion dollars in investment and extend china's influence in the region. And formula wan will continue to raise around the streets of monocle until at least twenty thirty one. After signing a six year extension with the principality as a part of the deal, monto will change the date of the iconic race from end of may to june, starting twenty twenty six to avoid a scheduling conflict with the indian. Apple is a five hundred gap.

How can you not have the monaco grand premium? So thank you. So bona, thanks.

So bona had no. How about bitcoin? Record high yesterday. Ninety three thousands fAllen back a little bit today. Eighty nine is still up tremendously since the elections. Steve voice, we said as we teased IT has a couple of moves. What are they?

So I book bit going again. You know, I had originally bought IT twenty eight solin sixties. God, I was happy with the game, and I also want the great gray scale bitcoin trust.

And the reason is i'm still not a believer in IT as a currency, but doesn't matter what I believe at this point. okay? It's what the administration believes is right. And so that will keep the moment of going. And if they do put as a reserve currency, well, the scarce a i'll just dry IT implementors.

Why why do you buy the the gray scope bitcoin trust?

Also just filing on, he was a different account. So was for are the purposes okay.

okay. And the correlations .

want to well.

now that's why if you just why, why diversified IT away from the self? I guess the big question now is what wall street is doing to meet this new booming domain. And you already know about, you know the etf products that are out there.

Maybe others are coming. Men zi segal's here post nine following this boom that it's been a banana a right. I mean, there's no of the way to really characterised that. I want to know though what's going to happen next ah as a result of this .

with bit point down you of crypto s market cap heating a record three point two trillion dollars as S C C chair gary ganzel er gives what amounts to a fairly speech this morning. Now he didn't say that he's resigning, but already you're seeing signs that a promise of turnover at the commission is opening new lanes for wall street to capitalize on the researches in crypt down. Now first thing is greater access to all coins.

Bitcoin may be grabs the spotlight, but these smaller cap tokens have had the greatest gains since the election. Robin hod, just announcing that it's relisting coins like X, R, P and salona that we're taken off the exchange. Last year, S, E, C, C stepped up, its cracked up. Now there are also new crypto aligned companies coming to market the sec clearing a japanese cypher exchange called coin check list on the aztec via s back next month. It's the second of pure play digital asset trading platform to go public after coin base. And finally, we're seeing new products in the pipeline with the S, C, C recently granting accelerated approval to eleven exchange traded funds to list and trade options tie to spot bitcoin Prices on the icy, which gives traders another way to speculate on Price moves and hedge their exposures.

What you think about this, josh, new exchanges, new products in etf. And who knows what, because of this renewed optimism about bitcoin, encrypt u in general.

So in the early one thousand nine and eighties, there was a famous newspaper article that mix the rounds every now and again, where the massacre and state securities regulators ban the apple ink IPO for massachusetts resident. So if you lived in boston, you couldn't participate.

The apple IPO part of me feels like there's an alternative of universe where in twenty, twenty and twenty twenty one, rather than fight so hard against bending these etf, somebody would have said, you know what? Actually, this probably make cyp those safer, more institutional, more transparent, more liquid. Maybe ef will protect people more so than banning etf and having people be on all these insane exchanges doing business with god knows who from another confident.

We didn't go that way. We went the way where we thought we we thought IT. Finally um we got IT and now it's mainstream.

And I think as you see the Price cross one hundred thousand, you're probably going to see a scramble. Anyone that was underweight against IT for IT, they're going to have to have an answer for their clients. You either in business to serve clients if you're not.

So this is the phase we're headed into. It's exciting. It's interesting.

I'm here for IT up even viny if we can sit here in debate like Steve White suggested, even as he buys IT, still trying to figure out in his own mind and many investors are out there, I think in the same thing, really use case is what the .

use case is, is this. But i'm sorry, sorry, sorry, thank you. Thought this is the use case. It's people putting money into IT, pulling money out of IT.

using IT to buy other coins. And I think but the original use case, it's a trading instrument, is where you can make money.

where you can lose money. I was at that point, I mean, trump, there is a lot of enthusiasm more on the idea that banks will now be able to build custody and collateralized itou and suddenly bitcoin, as an asset class, opens up to the two hundred trillion dollars. And institutional funds that exist out there could flow in the cyphered. And even a fractional allocation of a percent two. Bitcoin, because of its finite supply, could really be a huge tail in the Price.

And that's the issue. The finite supply is always going to keep the voltige there, which prevented from being thank you.

You much more on this top to come. And I can to you that mike and told his next.

We are back with senior mark commentator mike sand totally right here at post nine for his midday word. What's on your mind today?

IT seems like everything just retrace mode. You know, you can kind of apply some headlines to IT, but it's interesting to me that bonds have a big even after you could have interpreted pps being a little sticky and stocks are down and the stuff that was up the most pulling back the most.

So feels like from the election on, it's kind of like the scripted first drive of the game resulted in the score and now it's just a little bit more mix and you have to kind of face some opposition. And just to extend the metaphor, so many charges look like a button hook pattern vertical down the field. They're crying around like this.

How much more do they come in? That's like tesla. That's like go and sex. That's like the russia two thousand, which, by the way, basically in the gap from the day after election day. So is the tonic gaba s out there. I think that's all we're doing is kind of gathering our feet back under us short.

But if anybody is even the we bit negative to continue what you're suggestion, we just we're calling a time out for a little bit and were sort of assessing how to win the rest of the game. And there is still a lot of optimism that this game going to be won by staying long this world market.

That is definitely the prevAiling view, and it's plausible. N I wouldn't fight IT, but I also think it's just kind of people have we don't want to make cart decisions right now. And so i'm here, a lot of people shut down evaluation concerns and where positioning is, it's not per extreme yet. But I to the start .

that's making the rounds about these pullbacks in the rusal, they didn't do so well in the first round of tariff s since twenty eighteen. Sure, the S. M P was up thirteen percent during the tariff period of march nineteen, march eighteen.

Through october nineteen, the Russell was negative one percent. Regional banks were down thirteen percent, so that trade didn't work the first time. I don't know why people in such a rush.

I also think this some pull forward, right, that we saw ready into the election. So some people wonder why if .

it's all done like love going to deal. No, we're going to .

take a quick look. Thanks on the closing bell up next, we talk about popping and dropping is the dollar search into election day emerging risks for stocks outside the united states we discuss next. Well, we ever had a lot of news this show, and we do have more right now regarding the stock is taking a turn lower down by a bata half percent on news from the F T.

That the federal trade commission is preparing the launch and investigation into anti competitive practices at microsoft cloud business. This would be obviously lying icon maybe one last big act before the trumpet administration gets in place in in the january. Ah this would be an examination um around microsoft abusing its power in productivity software that's according to to this report.

You said you saw alphabet shares maybe little lower on this something we're watching this. That's what this really would be. I mean, it's expected that lina's is not onna be staying within the new administration.

I think that's a fair a fair yeah.

I like you know.

people saying .

that I think she's gone. I think she's gone for the administration, but i'm not so sure because of the popular message that IT doesn't proceed to go, these large companies don't forget you know that they've not been known to be on the trump bad wag and typically meter. So everything's fair game. New administration.

I agree with you. You really think elan wants the pressure of mark zuck berg. Does anyone think that so IT might be that somebody whispers and trump s here and says, actually the people that run the hyper scan ales and the only people may be more powerful than you. And maybe it's great for there to be an enemy of theirs, continuing to keep the pressure on them.

I said that last week. It's the ego thing that he could bring these, the biggest companies, those support companies in the world, to their knees that just makes him feel Better.

Of course, the other side of that is that he has enough people, the president elect in his ear, who were thinking bigger about economic growth, the return of deal making and what that would unleash on an economy that's all. But ban locked up by that. The economy is more you have been able other .

companies they have not been heard by not talking.

not talking about i'm not talking about big tech. I'm talking about a broader economy where there's a lot of optimism about deals being made. The people who have been around the present lecturing his campaign, lta c obviously, and others from john paulson from the wall street community who are talking a lot about this renewed optimism about deals, if not animal spirits, I think people would be surprised. Let's just say that if len icon was still in that role, she's not under a president.

He is not going to be. But here's a thing. What's going to keep these company saved is that there's such a big part of the S M P of the market that you take them apart, you kill them.

work goes down. The cover is camera on the phone, not sure, really. Think about, okay, thanks. Good to see. Think about this.

This is going after their bread and button right now. This is the as a cloud business got. This is what everyone has been measure or investors usually used as the benchmark to measure how well this company he is doing.

Keep in mind, this is also talk to about office three sixty five. I'm not seen anything right now in this financial times report about artificial intelligence. Keep in mind that copilot product that have been trying to sell through the same product is a separate thing in in the past, especially in europe.

They've been hit with these anti trust inquiries because of the way they're bundle certain products. They're got in trouble. In europe, for example, for bottling the teams s video products with with the rest of the sweets, we haven't seen them bottled that together with copilot. So in a way, that's kind of good news that IT doesn't sound like they're throwing that in there.

We do also know they're investigating um the relationship between OpenAI and those investments as well, but this seems to be just on azure and keeping that data when a customer signs up for office three sixty five, that means all outlook in word apps that you and I use every day's, Scott. That means also letting customers IT seems if you see wants to say, well, if you don't want to store everything in the microsoft cloud, there should be some competitive pricing going on. If you want go to amazon or google, something like that, that seems to be the this is your sky.

all right. I appreciate you, Steve. Thanks for Helen to keep the ball in the air on this developing story. We watch the stock down. You got a last quick T T, T.

On defense. Like a defense stocks, they are getting crush today. They're down three to seven percent across the board. So sometimes Brown.

right, what? What's your final trade right bit going?

okay.

J vy 这样 唱， just Brown, bigger hues I see on closing belt. Remember, fetcher power speaking live will take IT. The exchange is now you've been listening to c nbc s halftime report, the podcast. You can always catch us live weekdays at twelve n only on C, N, B C.

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