Varney Let s get ░░░░░░░░ to the market shall ░░░░░░░░ Futures suggest that there ░░░░░░░░ not much happening in ░░░░░░░░ of price movements Today ░░░░░░░░ Dow is up down ░░░░░░░░ NASDAQ up two There ░░░░░░░░ not much going on ░░░░░░░░ is Shah Gilani All ░░░░░░░░ Shah I am looking ░░░░░░░░ very strong consumer buying ░░░░░░░░ see something and buy ░░░░░░░░ What does all this ░░░░░░░░ do for corporate profits ░░░░░░░░ therefore the stock market ░░░░░░░░ Well of course it ░░░░░░░░ great for corporate profits ░░░░░░░░ that got overlooked yesterday ░░░░░░░░ I m surprised about ░░░░░░░░ is the month over ░░░░░░░░ retail sales increase was ░░░░░░░░ 7 percent That s ░░░░░░░░ wonderful Year over year ░░░░░░░░ it was 16 3 ░░░░░░░░ higher than it was ░░░░░░░░ year ago Even after ░░░░░░░░ net out inflation at ░░░░░░░░ highest level 6 2 ░░░░░░░░ s 10 1 percent ░░░░░░░░ in retail sales from ░░░░░░░░ year ago That s ░░░░░░░░ record on every level ░░░░░░░░ it speaks to the ░░░░░░░░ that consumers are out ░░░░░░░░ buying speaks to the ░░░░░░░░ that the economy is ░░░░░░░░ doing well and obviously ░░░░░░░░ speaks to future earnings ░░░░░░░░ better than probably expected ░░░░░░░░ OK What happens to ░░░░░░░░ market if interest rates ░░░░░░░░ on 10 Year Treasury ░░░░░░░░ are right now at ░░░░░░░░ 64 percent If it ░░░░░░░░ to 1 7 percent ░░░░░░░░ 2 percent let s ░░░░░░░░ s if it goes ░░░░░░░░ 2 percent what happens ░░░░░░░░ the market GILANI There ░░░░░░░░ the rub Stuart That ░░░░░░░░ me is a front ░░░░░░░░ issue as far as ░░░░░░░░ rally is concerned If ░░░░░░░░ see rapidly rising rates ░░░░░░░░ rates move up gradually ░░░░░░░░ think the market can ░░░░░░░░ that just fairly easily ░░░░░░░░ they jump quickly and ░░░░░░░░ really the benchmark I ░░░░░░░░ looking at on that ░░░░░░░░ Year Treasury right now ░░░░░░░░ yield 1 75 percent ░░░░░░░░ we pop above that ░░░░░░░░ the next couple of ░░░░░░░░ I think the market ░░░░░░░░ going to have a ░░░░░░░░ of indigestion to deal ░░░░░░░░ And if we get ░░░░░░░░ 2 percent perhaps by ░░░░░░░░ end of the year ░░░░░░░░ would be a staggeringly ░░░░░░░░ move higher than the ░░░░░░░░ I think is going ░░░░░░░░ have to take a ░░░░░░░░ and look at where ░░░░░░░░ might go in terms ░░░░░░░░ rates in the first ░░░░░░░░ and that might put ░░░░░░░░ little bit of damper ░░░░░░░░ this rally Varney You ░░░░░░░░ almost permanent bull but ░░░░░░░░ I it sounds to ░░░░░░░░ like you begging to ░░░░░░░░ a little bit more ░░░░░░░░ than you ve been ░░░░░░░░ previous days Is that ░░░░░░░░ GILANI Yes And you ░░░░░░░░ 100 percent correct I ░░░░░░░░ get cautious when I ░░░░░░░░ some existential threats or ░░░░░░░░ swans or even at ░░░░░░░░ event that we understand ░░░░░░░░ going to happen such ░░░░░░░░ the taper happening such ░░░░░░░░ rate rising eventually the ░░░░░░░░ there fundamentally is how ░░░░░░░░ well they rise and ░░░░░░░░ will markets digest that ░░░░░░░░ now the future is ░░░░░░░░ little bit dicey I ░░░░░░░░ we re going to ░░░░░░░░ a lot more volatility ░░░░░░░░ 2022 It really comes ░░░░░░░░ to interest rates where ░░░░░░░░ end up Varney Got ░░░░░░░░ Shah Gilani thank you ░░░░░░░░ much sir We ll ░░░░░░░░ you again soon.”