Kamala Harris, Trump's EV agenda: Market Domination

US stocks (^DJI, ^IXIC, ^GSPC) remain in positive territory in the wake of President Biden's decision to step out of the 2024 presidential race. Julie Hyman and Josh Lipton bring you the latest market news accompanied by expert analysis on today's episode of Market Domination.

Evercore Chairman Emeritus Ralph Schlosstein provides an in-depth look into Vice President Kamala Harris's qualifications for the presidency after Biden endorsed her as the party nominee and what the newly-founded Harris campaign must address about the US economy to gain voters' trust.

Jefferies global head of sustainability and transition strategy Aniket Shah also joins the program to discuss former President Trump's potential EV policies should he win reelection, noting Tesla (TSLA) CEO Elon Musk's support of the Republican Party candidate.

Other top trending tickers on the Yahoo Finance platform include Nvidia (NVDA), Mattel (MAT), and CrowdStrike (CRWD).

This post was written by Luke Carberry Mogan.

Video transcript

Hello and welcome to market domination.

I'm Julie Hyman.

That's Josh Lift in and 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 blips getting up to speed one hour before the closing bell rings on Wall Street.

A dramatic change.

Obviously, a week ago, I was thinking, and most people were thinking this could be a landslide for Donald Trump.

And now here we are the next Monday with an election that looks much, much closer.

I think she will surprise people.

I think she will be a very pleasant surprise by and large.

She's an unknown product and it's very late in the game to do an introduction.

So I think she has to get out of the gates running.

Uh, if President Biden is giving a speech like it looks like he will, it shouldn't be about my himself, his legacy, what I did, it needs to be why this is his legacy, why he passed the baton under her, run the stock, you know, in the, in the last, you know, month has been pretty substantial.

So I think, you know, it's really sort of storyline that matters.

It's what they say about this robot.

It's what they say about A I and Dojo.

Um, that's what has people excited.

We got one hour to go until the market close.

So let's take a look at the major averages here and Josh and all those questions we were asking last week is the rotation taking hold is tech now falling down.

No, at least not for today.

Right.

We've got this rally that's going on here today.

It's relatively broad based, but the dow is not participating to the same extent as the other major averages.

It's up about 102 points, but that's just a quarter percent.

The S and P is up a percent.

The NASDAQ is up 1.5%.

And if we want to take a look at the Wi Fi interactive here, as you pointed out to me, semiconductors have come roaring back in particular, look at that pop.

I mean, last week we were talking about it, you know, for all the wrong reasons because the semis were getting caught just sort of whipsawed by these political headlines.

Biden and Trump now back in the Green.

Now, some of that, of course, Julie is because some analysts came out renewed some bullish calls on NVIDIA and of course, that always helps and you can see the S mh attacking on about 3%.

Yes.

And we're going to talk more about those calls later in the day.

The Russell 2000, by the way, is also participating today, it's up about 1.2%.

So we're seeing that sort of happen.

Now, one of the things we've been talking about in recent days is the so called Trump trade.

What are the areas of the market that are seen as benefiting?

We've been keeping a close eye on what's going on in the bond market.

We are seeing yields now move higher.

As we heard Greg Vale earlier the the quote from this morning where he was saying that now Harris has a better chance against Trump.

We are seeing yields come up, not a huge move upward in yields.

We are also seeing a little bit of weakness in the dollar, but again, it's not a big move and then finally, Bitcoin up on Trump prospects up on Harris Pro I don't know, maybe it's agnostic at this point.

Listen, big tech was working too today, which was interesting.

I don't know how much that is because you have earnings on deck and maybe just traders, investors refocusing like, oh yeah, earnings.

That's what we have, right?

Maybe that's it.

It's interesting.

All right, let's get more on this markets higher today as investors digest President Joe Biden's exit, of course, from the presidential race for more on what the move means for investors.

Let's welcome in Ralph Schlosstein Evercore.

Chairman Emeritus.

Ralph.

Great to see you.

It's great to see you.

Great to be here.

So, le let's start there, Ralph with politics, of course, seismic news over the weekend, President Biden, uh, drops out endorses Kamala Harris.

What did you make of it, Ralph?

Were you surprised or did you expect?

This is, this is what was gonna happen?

Well, I've been, uh, I'm a big fan of the president.

Uh, and I, uh would observe that he's been an excellent president, but more important than that, he's a tremendous patriot and a really good man.

And so for probably the last three or four weeks, I felt uh as difficult as this decision was and it was a incredibly difficult and selfless decision that he would reach this conclusion, uh which I think is best for the country and for the Democratic Party.

And do you think that Kamala Harris is the person who should indeed be the candidate and that she has a good chance against Donald Trump?

I do, I think she is a, uh she's sat to the right of the left of the president for the last three and three quarter years.

Uh She was a senator before that elected official in California, incredibly skilled uh person.

Uh And uh you know, the re reality is we don't have a lot of time to make this decision in my view.

No one of consequence is gonna step forward to challenge her, although they should be given that opportunity.

Uh So I think it's pretty probable that she'll be the nominee and Ralph.

So you, you know, listen, you support Kamala Harris, any thoughts on who you think would be, be a good VP.

Uh You know, I don't have anything original to contribute there.

Uh You know, the, I would advise her, I think as anyone would pick someone who, if something happens, can do the job.

Uh and someone that, uh, you think will be a great partner to you.

Uh, that's what, uh, Joe Biden did in 2020 I'm sure she'll do the same thing.

And the people who are mentioned, whether it's, uh, Senator Kelly or Beshear or the governor of Pennsylvania Shapiro, the governor of, of North Carolina.

Uh, they're all, uh, you know, superb, uh, leaders.

Do you think that Harris herself will have to move to the more to the Center during this campaign?

I mean, when she ran, um, against Joe Biden amongst others, she sort of tacked more to the left.

Do you think that will change in this campaign?

I think if you look at her, uh, career, uh, she's actually been well in the center, uh, of, uh, California Democratic politics, but that's a different scale, right?

To be fair.

In fact, you could even say she's been among the more conservative, uh, uh, statewide elected, uh, leaders there.

I mean, her background is as a prosecutor.

Uh, she's got a very strong anti crime uh record.

And she's been a uh when she was in the Senate, she was uh someone who was very pro growth uh and supportive of the private sector, creating jobs and I wouldn't expect that that would change.

And so when you, when you say Ralph that you, you know, you, obviously you're a fan of Bayern, you support Kamala Harris.

What specific economic policies are you, are you support of it?

You think we're gonna be advantageous for the economy, for the markets?

I think if you look over the last 3.5 years and I don't wanna be partisan here, but the list of accomplishments of the Biden Harris administration is pretty long.

Uh You know, for example, uh you take infrastructure, something that Donald Trump talked about for four years.

Uh Biden and Harris uh got a bar bipartisan piece of legislation through the Congress, bringing techno technology jobs back to the United States.

Uh President Trump talked about that for several years.

Did nothing.

Uh The Chips Act was passed bipartisan support once again, uh bringing down drug prices.

Another thing that Trump talked about and Biden actually accomplished something.

So I think in, in, in some respects, the, there's more agreement than any Democrat or Republican would let you believe about what needs to happen to make our economy strong.

And the Biden Harris uh government has a pretty good record of getting legislation through on a bipartisan basis even though economists you talk to and, and folks like yourself will say that the economy is strong right now.

The American people, many of them don't see it that way because of the inflation issue and the inflation issue alone.

How does the Harris campaign push past that and improve that perception?

Well, one of the things I've been saying for quite a while and I had the uh I'm so much older than both of you.

I had the experience of working in the White House during the Carter administration uh when we had high, high inflation.

And one of the things that I think just is hard to recognize if you didn't live, live through that experience is that inflation is something that touches every single American.

And when you go into that grocery store and eggs are 50% higher and milk is 40% higher and beef or chicken is whatever it is higher.

Uh You don't necessarily put that together with, well, I'm making a little more money uh as well and gas, the things that are very visible and that you touch every week or every day uh are more expensive and that's very different from unemployment which touches uh you know, it's a, a portion of the population and when you include their families and friends, a bigger portion of the population, but inflation hits every single person and unfortunately, it hits the middle income and the lower middle income and the, the, the poor worst of all because they spend a bigger portion of their income on necessities.

Well, is it just a matter of then acknowledging that I think there has to be honestly an acknowledgment of it that it's life is harder, uh, that it's more challenging to put food on the table and gas in the tank.

Uh, and that there's a major effort underway to bring the cost of living down, uh, and to, to strengthen wages.

Uh, you know, some of this, uh, you know, I kind of laugh that, uh, not laugh but, you know, I, in all honesty, it's not fair to blame President Trump for the unemployment that resulted from COVID.

Uh, and it's equally not fair to blame President Biden and Vice President Harris for the inflation that occurred as a result of, uh COVID.

Uh And I think they've done a pretty good job of getting after it.

Uh, the Fed has done a, a terrific job after they got past this transitory uh moment.

Uh, and I think the president and the, and the vice president deserve a lot of credit for not once complaining about the Fed.

Uh, they've never attacked the independence of the Fed and that is a fundamentally core tenet of the success of our economy.

You me, you mentioned Ralph the Fed and obviously, you know, most economists, financial markets are gonna bet now that if a cut is coming, do you think a cut is coming in.

September, Ralph, what's your time frame?

And do you think that's appropriate?

I do think that we're finally at a point where the risks of uh higher unemployment and higher inflation are at least equal.

And in fact, we're now getting to a point where the risk to a activity and employment is getting greater than the risk to inflation.

I think inflation is trending in the right direction.

I think it will continue to do so.

We have a monetary policy that's pretty restrictive.

And I think it's a good time to go back toward normalization.

And in September would be a good time to start, but we still have a fair amount of data to come out between now and then and, and that could change.

Uh my view and I'm sure the feds um so given that, you know, we, we talk a lot on the show and we talked to a lot of investors about um the election and the effect on the markets which thus far has not been huge.

There are certain segments of the market.

Um You know, when you talk to people on the street, when you talk to people who are in the markets, how, how does that line of thinking go?

You know, because sometimes it's also difficult to separate your politics from what's going on in the markets.

Yeah, I'm pretty agnostic on that.

Uh I think uh that the economic, the policies may be somewhat different.

I do think we have a long term uh you know, challenge in our economy and that our fiscal policy is uh too loose.

We cannot, you know, go on forever uh to generate the kinds of deficits, particularly in a period of uh high employment as we're in right now.

I happen to be of the view that uh you know, neither of our parties is particularly focused on this at the moment.

Uh Something will happen at some point down the road that will cause the politicians to focus intensely on this.

In my view, I have no idea what that is or when it'll occur, but it will occur.

Uh And I actually think that if I was at a lunch last Friday with about 20 people in the financial community, and I asked the question uh in the next four years, which president will generate, do you believe will generate more deficits?

Uh The Democrat, uh By the way, I was one of a very small number of people who thought that uh the president would do what he did this weekend.

Uh So most of them thought it would be Biden versus Trump.

And I, I put it as the Democrat versus Trump and it was a pretty strong majority in favor of saying they thought the Democrats would generate, generate less deficits than the Republicans, which happens to be my view as well be.

And the why is that your view, Ralph the, it's very simple at the end of 2025 we have a massive tax cut.

Uh, if the Republicans are in the White House and in the House and the Senate, that tax cut will be extended, uh, both for high, for wealthy people and the 21% corporate rate will be maintained.

And if, uh, we have a, a mixed government, uh, there'll be a much more meaningful discussion about that and the biggest contributor to our deficits, nobody likes to talk about.

This is, you know, the federal income tax take as a percentage of GP GDP has gone from 19 point something to around 16%.

Uh That is, uh, you know, unfortunately, we have tax cuts that we haven't really paid for.

I, I wanna ask you as well, the thinking around that table versus the thinking around perhaps some virtual tables on the west coast because it's, it is remarkable this election, the, um the coalescing of a certain cohort of tech millionaires and billionaires behind Donald Trump.

What do you make of that?

Does that change the particularly since they're in the business world?

And then there are folks like yourself.

How are you thinking about that?

Uh Well, you know, it's very interesting.

I, uh the very first day of my very first job, I got the best piece of advice uh that I ever received.

Uh And it was, I was an economist on the joint economic Committee and the staff director had this lecture that he gave to, you know, wise ass, smart whipper, snapper kids.

Uh And it was all about listening to other people and, you know, you may disagree with someone but never impugn their motives.

So you're asking me to, to uh analyze their motives.

Uh The only thing I would say uh is that when President Trump was president, uh I made the statement that the hardest job in America could be to be an antitrust lawyer.

Uh because antitrust is supposed to be moored in the law.

Uh And in fact, antitrust enforcement became moored in who did the president like and who did the president not like.

You know, so you had this contesting of the time war att merger, which there was absolutely no basis to contest it and of course, the court threw it out.

Uh I do think that there's some perception in the world that uh if you're not on President Trump's good side, you're on his bad side.

And so it's not uh not surprising that uh you know, well off uh people who lead large businesses who otherwise might be threatened by governmental action who would, uh you know, would make up uh decisions like that.

Yes.

As one CEO reportedly said, I don't care who's in office as long as the regulatory environment is better to your point.

Ralph, thanks a lot.

It's really good to see you.

Great to see you.

It's wonderful that we were able to talk to you today in particular.

So thanks for coming in, exciting day for the country.

Thank you very much, Ralph.

Appreciate it.

We're just getting started here on market domination.

Coming up.

Vice President Kamala Harris's presidential campaign is officially underway, but he will be her running mate.

We'll break down potential candidates on the other side when market domination continues.

Let's take a look at some trending tickers.

We start with Mattel.

Now the stock is climbing today.

You can see that big leg up it took and that's after the report crossed that it was being approached with a buy out offer from L Catterton.

That's the L A big backed private equity firm.

A Mattel spokesperson did tell Yahoo Finance that we do not comment on speculation.

We are very confident in Mattel stra in our ability to create long term shareholder value as a stand alone company.

The stock came down a little bit from the ties of the session but still remains higher in the day.

The same report, by the way also said Hasbro might be interested in Mattel.

Yeah, even with the, the pop today, that stock has not done a whole lot at all year to date, we're basically dead flat here.

Um So it'll be interesting to see how this one works out and whether these reports are correct, you have rivals, maybe Julie, you know, motivated here to kick the tires as well.

Maybe so, I mean, there is an activist, by the way in the stock, Barrington capital back in February, they said Mattel should do things like maybe explore options for Fisher Price and American girls separate the roles of CEO and chairman.

But that has not happened to us.

We'll keep watching.

Meanwhile, A MC shares are climbing, check out that chart as an agreement was reached with creditors to restructure debt, moving us theaters into a different part of the company allowing A MC to exchange existing debt for new obligations.

Um A MC is looking at a debt load here.

I'm reading just reading through some reports, 4.5 billion of long term borrowings and all that coming is is also just more kind of long term.

And structurally, we talk about how broader box office, not what it used to be.

No, it is not, although it did have a decent weekend.

I mean, the shares are still down year to date in the neighborhood of 15 to 16% here.

Um And so they have been getting a lift at times when the company tries to get creative with its uh balance sheet.

Um Adam Aaron, who's the CEO is sort of known for that.

What I found interesting today, Twisters had a big weekend, right?

Um Third largest gross of the year here, 80 a half million dollars, which is a lot bigger.

I think it's about double the box office estimates here.

Um, normally Adam Aaron, the CEO of A MC takes to Twitter to, to, you know, tout big numbers like that.

He has not yet.

So we'll see what it meant for A MC.

Am I reading too much into that chat?

I don't think so.

That's what he does.

He does the other thing.

Um, and just for background, um, the Comcast owned Universal Studios is the one that, um, backed that movie and has domestic rights.

Warner Brothers has international rights.

I'd say the lift ins are doing their part.

Took the five year old to see despicable me this weekend.

Oh, very nice.

Yeah, we tried that.

How you like it.

I mean, I liked it.

I think she was a fan of the candy and the soda, the movie itself.

I waited an hour, which was actually longer than I thought we're going to make it.

So, you know, we're getting there, we're getting there.

You have to start from the beginning of the series.

Former speaker Nancy Pelosi is the latest, prominent democrat publicly backed vice President Kamala Harris's election bid one day after President Biden ended his re election efforts and endorsed Harris as his successor.

But it is still unclear if the vice president will face any challengers for the party's nomination with us to discuss this.

Henrietta, trace partners, managing partner and Director of Economic Policy.

Henrietta.

Really great to have you here.

You had put the odds relatively high that this would be the outcome that President Biden would step aside as the candidate.

So, Kudos for seeing that coming.

Now, what happens, do you think that there will be some kind of open convention set up or do you think that this sort of anointment is already well in place?

I think it's um Kamala Harris is all the way to the end.

There may be some sort of open convention, speechifying CNN town halls or Yahoo Finance town hall, something along those lines.

But um this is pretty baked in.

She's already reached half the number of delegates that she needs in order to win uh at the convention in mid Aust.

She is raising almost $100 million in 24 hours, which makes her um basically unbeatable for any other democratic candidate.

And then probably the most obvious component here is that all of her challengers, whether it's Gretchen Whitmer or Gavin Newsom have come out and endorsed her.

So not only is Kamala, the one that everybody including speaker Pelosi is endorsing.

Um But her potential challengers are saying, you know what?

You, you look too good to me right now.

I'm, I'm out, Henrietta.

First of all, you called this one, you said uh you said Biden would withdraw.

I was skeptical, Henrietta, but you, you called it, you nailed it.

Um Look ahead.

Now, Henrietta.

Now, the question that's being raised is, is who Kamala Harris would choose as, as her, as her running mate, Henrietta.

You know, I'm just so curious to get your thoughts there.

Possible contenders.

She's, she's, I think it's fair to say Henry she's perceived as more progressive.

So, does she, do you think she t more kind of, you know, centrist moderate?

Is it Shapiro Kelly?

What, what are you thinking?

Yeah.

Well, first of all, you're not alone.

I was also very anxious about putting 70% ads on Kamala Harris being a democratic nominee this year.

So you and me both.

Uh, but in this business, you know, you got sort of a stiff spine when it comes to this stuff.

Uh, I think you're exactly right.

Kamala Harris is only in the Senate for a very short while as a result that votes that she took, um, are going to be representative just of that time horizon.

And in that time horizon, the votes she took were more left leaning than the average American voter.

So her progressive bona fides exist from a really fracture sort of segmented, uh, vote basket in the United States Senate.

And I think it's interesting to note that when she ran in 2020 she was also perceived as too, um, on the side of law enforcement, which was an albatross for her at the time and is now something of an asset.

But nonetheless, I think you're exactly right.

You know, we're looking for a white man, not in finance governor of a swing state, uh, or a red state Andy Beshear in Kentucky makes a lot of sense to me right now.

Um And I think that's the direction it will be trending for the next couple of weeks.

Um And I've, I've said this all day, but I'd say again, I don't expect an announcement on the VP for a while because all of this media attention to it serves to bolster all of these Democrats name recognition, um which just serves to remind voters what the Democratic Party platform is.

Um who is at risk this year in their election cycle.

Uh And things along those lines, there's a senate race in Arizona that's really closely contested and needs to be watched.

So there's a lot of this um Henrietta do whoever her, her v uh pick ends up being, does her being the candidate increase the odds that she will just that a Democrat will defeat Donald Trump?

Um Well, I think that Democrats were on a path to losing with near certainty under um President Biden, the galvanization that you can see from reporter Republican voters nationwide.

I've been very fond of following the primaries that are occurring right now in Arizona, those votes wrap up July 30th.

But in all my notes to clients now, I'm citing the weekly reports of ballot returns, ballot requests.

Republicans have a massive galvanization um gain that's putting them and their voters ahead of 2020 2022 trajectories.

Democrats are behind in both of those.

So what we want to see is whether this actually ends up being a, instead of a low turnout election, a very high turnout election um which 70% of American elections are very high and break records each time now that Kamala is in the driver's seat and she has these material weaknesses of Biden's, you know, to say it this way off of her back or the gains that she stands to make with Latino voters and black voters based on internal polling that's coming out today should really um provide some galvanization for Democrats.

And I point to the fundraising numbers, you know, uh future forward saying they've got 100 and $50 million in new donations.

Um Near last I saw it was an $86 million.24 hours for a blue and forecasters are anticipating.

It'll be 100 by the end of the day.

So that, that speaks to galvanization for sure.

He red always great to have you on the show.

Thanks so much for joining us.

Thanks for having me.

The markets are bouncing back in a big way to start the week.

Joining us now is Jeremy Schwartz Wisdom Tree, Global Chief Investment Officer, Jeremy.

Uh It is good to see you.

We were just talking politics there, Jeremy.

Um Obviously, you know, President Biden withdrawing, he endorses Kamala Harris, just a, a seismic historic headline there, Jeremy, but you look at the markets they seem to be really taking it all in stride here.

What, what do you make of that, Jeremy?

Well, you know, it's the, the markets always don't like uncertainty.

We got a little bit of, you know, clarity of what the nominees are gonna be like.

Now you'd say from a policy perspective, they, the market tends to want lower taxes and the question is, taxes are gonna be on the ballot at the end of next year, you got corporate tax rates that are gonna go up.

And so people are thinking about what does that mean, but the market also likes divided president and, and sort of house senate races and the, you know, some of the odds for Trump has been the, the leader for a while, but the odds of, uh, the Democrats taking the house have actually gone up with, with this change.

And so, you know, I think that's some of what's going on, but you come back to the overall health of the economy and earnings, season earnings have been very good.

It's one of the reasons powering the market higher and then there's the fed, of course, as well, Jeremy and when we're going to see rate cuts happen.

So how are you weighing all of these different, um, potential uncertainties when it comes to the election when it comes to earnings, which as you say have been coming in pretty well.

But we've got what, something like 100 and 31 of the S and P 500 companies reporting this week.

He got the fed.

How are you waiting?

Those various, uh, issues?

Yeah, you've had this big rotation in July towards small caps which were say, you know, we're really watching the earnings of small caps.

They have been the most looking for rate cuts, I think after the cool CP I, you really saw this huge rotation away from the big tech towards small caps and they're also the ones who pay the highest taxes.

So they're also looking forward to tax policy next year.

Um But as you go through earnings season, we got to see beyond the mag seven, you gotta see this broader participation in the earnings environment.

Um But for sure they like the cooler inflation, they like the fed pivoting in September for the first cut.

Uh and we gotta see earnings continue to keep that, that move that movement going further.

So Jerem, we're talking earnings, but also let's talk economic data.

Uh We got a big report coming later this week.

P ce obviously the feds uh preferred inflation gauge.

Jeremy.

I'm curious what you're looking for there and how important you think that is uh to the markets.

We talked to other strategist Jeremy recently who said, um you know, when we asked them that question, they said bottom line, they actually think it's an old story that the markets gonna move past the inflation story.

But what what's your take?

But after the latest CP I number, uh people have started really factor in that September is the first cut.

And you know, so if there was a big surprise, the P CE te tends to not have a lot of new information from the CP I and the PP I.

So most of that number, the economist have gotten very good at forecasting PC P CE.

So we, we think that's largely on track.

Our view is that inflation has been coming down when you look at what's going on the real time in the shelter data, there's some body is there that, that still should be coming down further.

And so we think the fed does want to get this cut in, they risk being too high for too long.

And, and so, you know, we, we it would be a big surprise if they did not go in September, Jimmy, you sound pretty optimistic here relatively.

So, um so are you buying into the sort of broadening of the rally here?

Um And looking for maybe ideas of things that have not already surged this year?

Yeah, that we came into this year saying we would get beyond the A I story.

I mean A I is we believe in the tech, we believe we're in very early innings for what that's gonna mean for the economy, for productivity.

Uh but you haven't seen it really, I mean, the earnings in the small caps are down year over year.

Um whereas large caps keep powering ahead, so we've got to see it go up in earnings um for it to be a sustainable rally.

But the valuations are quite attractive and things like the Russell 2000 are indexes which focus on fundamentals like dividends quality.

You get 12 to 13 times earnings, a lot of these small cap stocks, but you gotta see the earnings on an upswing versus being declining.

That's the the key issue that they've been facing.

You know, Jeremy, kind of a broader question.

We're talking about the election a lot today and, and for good reason, but I'm just curious, your, your advice and guidance to the viewers who are listening right now and, and maybe they're, they're long term investors, right, Jeremy.

And as they try to build this nest egg here, how much, how much do should they be focused, Jeremy on elections and politics?

In your opinion, we see on, on my bookshelf, you see the book stocks for the long run.

We do believe very much in a long term approach.

And you know, beyond the each election cycle, the markets tend to trend higher over time.

There's a lot of noise uh that comes with these elections, a lot of uncertainty that comes with it.

But stocks have been a, a very good way to accumulate long term wealth.

And you say, well, where are there opportunities?

Certainly us large caps have been the best place.

It's not the only place whether you look at small caps, you look internationally.

I think there are markets outside the US that will benefit.

Um But the elections are gonna generate a lot of headlines for the next 100 plus days.

Uh But you, you gotta zoom back out to focus on the broad equity markets.

We think that's where you want to be over the long run.

Jeremy.

Great.

Having you join us today.

Thanks for your time.

I appreciate it.

Thanks, Josh, thanks for coming up.

We're taking a look at the policy implications.

What a second Trump term would look like, stay tuned much more market domination.

Right on the side.

I love Elon Musk.

Do we love him?

I love and I'm constantly talking about electric cars, but I don't mean I'm against, I'm totally for them, but whatever the market says and if it's 10% of the market, 12% 7% 20% whatever it is, it's ok, but you can't have 100% electric cars.

That was of course former President Donald Trump touting his recent endorsement from Tesla ceo Elon Musk support.

That does seem at odds with Musk's electric vehicle ventures.

Given the former president's skepticism of ev mandates.

You just heard him talking about that.

We're taking a look at the policy implications of a second Trump term with Anique Shaw Jeffreys Global head of sustainability and Transition strategy anique.

It's good to see you.

Um, now I know we're, we don't, can't necessarily zero in on Tesla itself but when you hear for President Trump talking about getting rid of EV mandates in your view, what would that do to the EV industry?

Well, I actually think it's quite bullish for the EV market.

Um, I, I think for the last several months and years, electric vehicles have been caught up in the culture wars of this country and that's been unfortunate.

Um There's nothing uh about EVs that mean that they should be part of the, of the culture wars.

If people wanna buy them, they'll buy them and if they don't want to, they don't want to.

So I think that uh Elon Musk endorsing President Trump, Elon Musk saying that you know what, we actually don't need these tax credits um anymore from the US government and President Trump saying that if people want to buy them, they should buy them.

And that's that, I actually don't think that's a, that's a bad outcome um for the decarbonization of the transportation industry.

And I think we're going to continue to see EV car sales increase uh regardless of who's in the White House because these are good cars and there are a group of buyers who want to buy them.

So, Aiga just to, just to double tap on that point, you're saying, even if Trump and Vance take the White House, you don't see big ramifications for that sector I, I don't, I mean, there will be headline risk but the reality is, is that there's a technological revolution that is happening right now in the transportation industry.

And it's started really with Tesla uh who brought electric vehicles to the four in a mass commercial way.

But now there are several dozen other companies that are putting out more and more models and yes, we've seen a little bit of a slowdown in the growth of electric vehicle purchase.

But if you look at a long history and you just extrapolate that forward, it's very clear what direction this is all going into.

You know, Josh, I did an analysis a few months ago where I looked at various decarbonization metrics during the Obama administration, the Trump administration and the Biden administration, um clean energy installation rates co2 emissions per capita.

You can't tell actually when one administration ends and the next administration begins.

It's actually quite remarkable.

So, you know, the headlines are interesting and so on and so forth, but there are technological revolutions that are happening in electric vehicles in solar, in wind and batteries.

And I think that's a much bigger story and we all know that technology trumps politics any day of the week.

Uh That's a really um interesting view.

An II I also want to ask you about something else.

Uh on a separate policy note that former President Trump has talked about and that is ending benefits for undocumented immigrants uh and increasing deportation efforts as well, detention efforts as well.

Um And we've talked to a lot of economists here on the show that have talked about the effect that that population has had on employment trends in this country.

I know you're looking at it from a little bit more of a micro lens.

But what are you seeing when you examine that issue?

The general consensus is that the increase in undocumented workers over the past uh year and couple of years has actually brought down inflation.

Um And so if you think about the inverse of that, if we decrease the uh the growth of undocumented workers, that will be inflationary.

Now, that is likely the goal of that policy.

In other words, one of the things we all have to realize is that the Trump van ticket is a pro US worker uh uh ticket, it is a pro uh it is a protectionist ticket and that means that wages in this country should go up.

Um That is actually a feature of the policy.

It's not a bug in the policy.

Now, what does that mean?

That actually has huge implications for industries uh across the country?

Because for many, many industries, wages are the single biggest cost for companies.

And I think every CEO and CFO needs to model in higher wages, especially if you are in a industry like restaurants or agriculture where you depend on low skilled, low cost um immigration and workers.

So this is one of these interesting debates that is happening, I think in the Republican Party right now.

Um that the especially with the pick of JD Vance as the vice president.

You're seeing a Republican party emerge that is not the Republican party of our parents or our grandparents.

This is a protectionist party.

This is a isolationist party, not necessarily a big, a pro big business party.

And that, and that means we have to change our priors when we think about the investment implications anique.

Unfortunately, we have to leave it there, but we will catch up with you again soon on all of these issues.

Thanks a lot.

Appreciate it.

Great to be with you.

Thanks for having me coming up, crowd strike shares are sinking today as analysts are slashing ratings and price targets following Friday's outages.

We'll tell you about some of the top calls of the day on the other side.

All right, let's get to some calls the day now, Piper Sailor and Loop capital raising their price targets on NVIDIA, both notes signing Nvidia's upcoming Blackwell Chip.

So you'll never believe it bullish notes on N via Julie is crazy loop at uh so team at loop, let's see that one.

They read it at the buy, they raise their target to 175.

Their work suggests NVIDIA has potential to generate material upside to 2025 and 2026 street eps and revenue.

We're not picking up on adoption, slow down.

They say hyper scalar, those cloud giants will take every NVIDIA GP they can get their hands on.

You know, it's, you know, it's different here from Luke.

They are now doing something.

They call the GP U Matrix.

I love the movie.

Yeah, exactly.

And so as part of that, they're increasing their average selling price estimates for NVIDIA.

And now they're saying the chips are gonna be 31,000 versus 25,000 previously.

Meanwhile, our friend, Harsh Kumar over at Jeffrey.

Yeah, he raised his price target.

He's looking at 100 and $40 a share.

Um And he basically says that the company now is gonna beat revenue estimates by $2 billion just for reference here, revenue is already projected to rise 111% to $28.5 billion.

So he thinks uh we're gonna see a 22 cool $2 billion beat and to be fair, NVIDIA has been beating by that kind of magnitude in recent quarters.

Remarkable.

We gotta wait though, August 28th.

That's we're not getting earnings sometime soon.

Says NVIDIA continues to be a premier player in the accelerate compute and gen a in market we know and a lot of analysts agree with that.

You know what I said, Harsh was a Jeffrey.

He's a Piper Sandler, he's a piper.

Yeah.

Come on, get the team.

I mean, get a correction on that.

I'll tell you, I did get a correction in my ear.

That's why I said.

All right, let's talk about crowd strike, getting multiple downgrades this following the cyber security companies outage last week.

That's still causing chaos today, particularly for the likes of Delta Airlines, but really spreading beyond that.

It's interesting here, we've got a downgrade from the likes of Guggenheim which downgraded to a neutral BT IG as well.

Downgrading it.

The analysts there though at these various firms seem to say it's not necessarily going to hurt crowdstrike existing business.

They don't sound that negative on the name but they are concerned about its ability to generate new business as a result of these headlines, you know, Julie him when we talk cyber security, I make a beeline for Piper's Rob Owens on days like this because Rob's been covering the space for so long.

Nobody knows it better.

Here's what he told clients.

He said, bottom line, Ceo Kurtz, he said, listen, made the right moves.

He was front and center, he apologized, he got the fix out there and but I think here's the money line from Rob to his clients.

He says we feel there remains much more uncertainty with potential regulation, legal issues and claims.

So, Rob remains neutral on the name does take his target down.

310.

Yeah, that seems to be kind of consensus here.

I was with just over 10 minutes just under 10 minutes left to the closing ball on Wall Street Tech is the stand out the now that is out performing is that roughly 1.5% led by a rebound in, in video shares.

We're just talking about some of the calls on it.

It appears that the rotation out of Big Tech is over at least for today.

And we're looking at how to navigate the big picture with the Yahoo Finance playbook.

Joining us now, Matt Stuckey Northwestern Mutual Wealth Management Chief Portfolio manager, Matt, thanks for being here.

So you heard us talking about some of the calls that are out today on some of the big tech companies.

We had this rotation out of a lot of these names.

How are you thinking about how, what positioning should look like for investors right now?

Well, thanks for having me, look, you know, we get the kick off to big tech earnings tomorrow after the close with alphabet reporting earnings.

And really what I'm thinking about as it relates to our portfolios is kind of what are the relative trends into quarter and for the rest of rest of 2024 and they remain very positive for Big Cap tech uh specifically, um you know, looking at just alphabet specifically, you know, it starts and ends with the health of the ad market and it is quite healthy today, you know, just uh during the second quarter group M which represents some of the largest ad buyers in the world upwardly revised their 2024 growth estimate by over two points from 5.3 to 7.8%.

And, and to me that just shows you that the global ad market is recovering.

And now within that, you'll have companies like alphabet and meta, you know, grab not only that growth rate but take some share above that.

Um So, you know, that's being reflected by Ernie's revision trends that are quite healthy for mega cap tech.

Uh And you know, to me, it's, it's just more of the momentum from a business fundamental perspective is persisting as we get uh Ernie released after we close tomorrow.

So Matt, so broadly speaking, it sounds like, you know, you look at Big Tech and you like some of the kind of the big themes and trends playing out right now.

How does valuation look to for some of these names though Matt just given some of the runs they've had?

Yeah, sure.

Um That's the, that's the debate right now.

It's, it's full valuations versus strong fundamentals in the shorter term, strong fundamentals tend to outweigh the valuation concerns.

It's not until you start to see revision trends roll over.

That's where the valuation concerns really come into the investor mindset.

Uh We don't think necessarily that it's going to be the case in the second quarter or in 2024.

But if you look out for further out, um you know, the valuation set up and concerns that investors are increasingly starting to have are a little bit more of a governor on what kind of upside is still left.

Uh But in the shorter term fundamentals are, are kind of where we want to focus in on as we think about the upcoming uh earning season for Big Cap tech.

So it sounds like you are fairly optimistic here given what you were talking about the ad trends, but there's a difference of course between adding and staying pat and waiting for that potential earnings upside.

And so I wonder if you were recommending the folks add to their holdings of mega cap tech or if you think maybe they should be looking outside of those mega caps but still within technology.

It's a good question.

Um You know, I I would say that the best are getting better right now as it relates to specifically technology outside of technology, you know, our firm, we do have a good view and a positive view on the relative valuation argument for things like us small cap us midcap as an example and you, you saw just in the last couple of weeks that sharp rotation that can happen when you have negative positioning or a lot of investors underweight those asset classes.

Uh and a and a catalyst also involved in the form of back to backs, you know, positive CP I prints.

So I I think that, you know, using that analogy of of positioning and, and fundamentals is kind of how you want to approach uh portfolio construction today.

And, you know, to that end, I would say, you know, we're not necessarily advising our clients to plow more into mega cap tech.

We are more so talking to clients about keeping a long term investment horizon, which does involve maintaining investments in, you know, some of these large technology companies, but increasingly also leaning into, uh uh you know, some diversification sources, specifically us small caps as an example.

Matt, I'm just curious too, you know, we've been talking a lot about the crowd strike event.

Um I wonder how much as, as we kind of make our way, not just through big cap, uh, big tech earnings, but just the earnings season in general.

Do you think that just cyber security in general is gonna be, become even a more prominent theme as we hear from the CEO S on the conference calls?

You know, I, I think if you were to ask any it professional that is responsible for making investment decisions for the technology stack of the Fortune 500.

And what are their top three kind of major investment areas year in and year out?

Well, right now, it's certainly artificial intelligence, but right behind that every single year is security.

Uh, and events like, uh what crowdstrike is just, um, um, you know, brought upon the public in the form of a lot of it headaches only reinforces that.

Um You know, while this wasn't, it sounds like something that was kind of more of a hack.

It does show that you need resilient it systems.

Uh And it's just another reminder that the spending profile on security and resilience for the it stack across corporate America is gonna continue to be an area of emphasis uh for every decision maker out there.

Matt.

So good to have you on the show today.

Thanks for joining us and while wrapping up today's market domination, don't go anywhere.

We've got you covered with all the action following opposing Bell.

Stay tuned for market domination over time.