RUSH TRANSCRIPT Cheryl time ░░░░░░░░ for the word on ░░░░░░░░ Street top investors watching ░░░░░░░░ money Joining me now ░░░░░░░░ sit investment associate senior ░░░░░░░░ president and senior portfolio ░░░░░░░░ bryce doty Also with ░░░░░░░░ is Mike Lee I ░░░░░░░░ to start on tech ░░░░░░░░ second quarter earnings from ░░░░░░░░ tech sector are coming ░░░░░░░░ as far as the ░░░░░░░░ Microsoft after the bell ░░░░░░░░ Meta tomorrow Amazon apple ░░░░░░░░ Thursday The Wall Street ░░░░░░░░ writes is a cruel ░░░░░░░░ for tech stocks as ░░░░░░░░ magnificent seven shed 1 ░░░░░░░░ trillion in market value ░░░░░░░░ the past three weeks ░░░░░░░░ biggest drop on record ░░░░░░░░ ve got temu sheim ░░░░░░░░ TikTok shops rising popularity ░░░░░░░░ influence U S tech ░░░░░░░░ E commerce earnings So ░░░░░░░░ that down for me ░░░░░░░░ last portion So what ░░░░░░░░ think matters most for ░░░░░░░░ today is going to ░░░░░░░░ their cloud growth I ░░░░░░░░ it s going to ░░░░░░░░ spectacular based on what ░░░░░░░░ saw from Amazon but ░░░░░░░░ market has taken a ░░░░░░░░ close look at how ░░░░░░░░ these companies are investing ░░░░░░░░ artificial intelligence So Google ░░░░░░░░ the past two quarterses ░░░░░░░░ sold off after earnings ░░░░░░░░ market is not impressed ░░░░░░░░ the capital expenditures and ░░░░░░░░ investments Google is making ░░░░░░░░ of a I So ░░░░░░░░ it will be interesting ░░░░░░░░ see how much they ░░░░░░░░ how much money they ░░░░░░░░ making from their copilot ░░░░░░░░ and how much they ░░░░░░░░ actual a I to ░░░░░░░░ to their earnings whereas ░░░░░░░░ expect the cloud business ░░░░░░░░ just continue to boom ░░░░░░░░ tomorrow Meta The stock ░░░░░░░░ has not recovered from ░░░░░░░░ last quarter even though ░░░░░░░░ showed 20 revenue growth ░░░░░░░░ earnings growth I expect ░░░░░░░░ see massive numbers from ░░░░░░░░ from both earnings and ░░░░░░░░ sand b standpoint tomorr ░░░░░░░░ s going to be ░░░░░░░░ much does the market ░░░░░░░░ is the market s ░░░░░░░░ about their investments in ░░░░░░░░ intelligence and then apple ░░░░░░░░ Thursday are we starting ░░░░░░░░ see this device upgrade ░░░░░░░░ that has been promised ░░░░░░░░ led to the stock ░░░░░░░░ taking off because of ░░░░░░░░ I coming into the ░░░░░░░░ So the commentary around ░░░░░░░░ I And I d ░░░░░░░░ the commentary and the ░░░░░░░░ forward guidance for all ░░░░░░░░ companies is going to ░░░░░░░░ much more than the ░░░░░░░░ numbers and how the ░░░░░░░░ appreciates A lot of ░░░░░░░░ investors behind these stocks ░░░░░░░░ momentum computer driven algorithms ░░░░░░░░ the stocks trade higher ░░░░░░░░ re going to get ░░░░░░░░ as stocks sell off ░░░░░░░░ get pushed the other ░░░░░░░░ Cheryl let s move ░░░░░░░░ the 10 year treasury ░░░░░░░░ this morning We re ░░░░░░░░ off the Fed meeting ░░░░░░░░ is day one of ░░░░░░░░ the Fed wildly expected ░░░░░░░░ hold interest rates tomorrow ░░░░░░░░ the futures market is ░░░░░░░░ pricing in a rate ░░░░░░░░ for sent You say ░░░░░░░░ Trump for September You ░░░░░░░░ the Trump trade says ░░░░░░░░ is a less of ░░░░░░░░ chance for a recession ░░░░░░░░ does that mean Right ░░░░░░░░ Fed you re right ░░░░░░░░ Fed is probably not ░░░░░░░░ to do anything tomorrow ░░░░░░░░ will be a little ░░░░░░░░ when they try to ░░░░░░░░ that they ll cut ░░░░░░░░ but why they re ░░░░░░░░ to explain why they ░░░░░░░░ not doing it now ░░░░░░░░ may be having a ░░░░░░░░ impact on the curve ░░░░░░░░ the Trump trade The ░░░░░░░░ trade to me is ░░░░░░░░ there s simply less ░░░░░░░░ a chance of recession ░░░░░░░░ Trump is elected The ░░░░░░░░ policies a the curve ░░░░░░░░ inverted right now because ░░░░░░░░ expect a recession You ░░░░░░░░ households and individuals being ░░░░░░░░ to afford less and ░░░░░░░░ and that ultimately leads ░░░░░░░░ recession We saw under ░░░░░░░░ that the economy did ░░░░░░░░ That s his forte ░░░░░░░░ was low wages were ░░░░░░░░ up people were able ░░░░░░░░ afford more and more ░░░░░░░░ if the Trump was ░░░░░░░░ then the odds of ░░░░░░░░ recession virtually go to ░░░░░░░░ and there s no ░░░░░░░░ for the yield curve ░░░░░░░░ be inverted so the ░░░░░░░░ serve will steadily steepen ░░░░░░░░ better does That s ░░░░░░░░ to be a big ░░░░░░░░ The 10 year yields ░░░░░░░░ in the middle of ░░░░░░░░ the curve is positioned ░░░░░░░░ it may not change ░░░░░░░░ lot The short end ░░░░░░░░ go down the long ░░░░░░░░ will go up we ░░░░░░░░ repositioning our clients bond ░░░░░░░░ into the three to ░░░░░░░░ year part of the ░░░░░░░░ which should perform the ░░░░░░░░ Cheryl interesting that you ░░░░░░░░ making they that move ░░░░░░░░ Mike I want to ░░░░░░░░ about another sector that ░░░░░░░░ haven t really gotten ░░░░░░░░ yet New data finds ░░░░░░░░ of foreclosed or seized ░░░░░░░░ property reaching a 20 ░░░░░░░░ billion mark in q2 ░░░░░░░░ s up 13 from ░░░░░░░░ first quarter highest we ░░░░░░░░ seen since 2015 Are ░░░░░░░░ should we be worried ░░░░░░░░ this right now So ░░░░░░░░ I do not think ░░░░░░░░ is going to stop ░░░░░░░░ slow down as The ░░░░░░░░ Street Journal suggests that ░░░░░░░░ s some sort of ░░░░░░░░ I think this is ░░░░░░░░ to be a long ░░░░░░░░ bleed For some reason ░░░░░░░░ were to accelerate it ░░░░░░░░ turn into a banking ░░░░░░░░ but with commercial lending ░░░░░░░░ is a very profitable ░░░░░░░░ for banks and as ░░░░░░░░ result if these defaults ░░░░░░░░ foreclosures are spread out ░░░░░░░░ time they could easily ░░░░░░░░ these losses If it ░░░░░░░░ in quick succession then ░░░░░░░░ turns into a banking ░░░░░░░░ and things could get ░░░░░░░░ I do not see ░░░░░░░░ happening Athebest way a ░░░░░░░░ of the commer office ░░░░░░░░ in real estate is ░░░░░░░░ to me aspir me ░░░░░░░░ pyramids They re beautiful ░░░░░░░░ look at It has ░░░░░░░░ use other than being ░░░░░░░░ at That s a ░░░░░░░░ of commercial buildings out ░░░░░░░░ with the way work ░░░░░░░░ changed and so I ░░░░░░░░ it s I can ░░░░░░░░ imagine we are near ░░░░░░░░ bottom I think that ░░░░░░░░ a long way from ░░░░░░░░ Cheryl I know that ░░░░░░░░ a very good point ░░░░░░░░ being a slow slog ░░░░░░░░ the bottom Thank you ░░░░░░░░ Good to see you ░░░░░░░░ you re going to ░░░░░░░░ with us all morning ░░░░░░░░ We have a lot ░░░░░░░░ coming up today Indiana ░░░░░░░░ victoria sparks is here ░░░░░░░░ tell us about the ░░░░░░░░ letter she sent to ░░░░░░░░ director Chris tore Wray