>> the market has gone positive briefly, but a very tight range. in the next two hours we will hear from three fed officials, powell, barkin and williams. in the last few moments, a nice side preannouncement from adidas looking for revenue up 5 to 9 verse us a prior 5. to the judge and "the half." carl, thanks so much. welcome to "the halftime report." i'm scott wapner. front and center this hour, the higher for longer play book has elevated, rates continue to weigh on stocks. the investment committee sizing up the best place to make right now and which to avoid. joining me for the hour josh brown, stephanie link and jim lebenthal. taking you to the markets, holding on to gains at least as the dow is concerned. the s&p remains in the red as does the nasdaq. you have had some buying but not able to get anything sustainable. jon jonathan krinsky, saying the

risk is to the down side. technicians like jonathan krinsky have not been right recently but maybe are feeling emboldened by the recent price action. >> down 4% from the highs. in the last 16 months you're up 32% in the s&p 500. that is huge. i have to take a step back. we talk about the overall growth being important because it's so important for earnings. if you look at the u.s., the gdp tracker, and growth is raised. china 5.3%, the second quarter in a row over 5, and 6.6% sequential analyzed growth rate there. no one was really expecting that. their stimulus programs are starting to kick in. that is the reason why the

inflation story, in my mind, is kind of stubborn but the growth is better. that should bode well for earnings. bank earnings are always slobby so i do think as we progress through earnings season we will do better but higher for longer we have to adjust for it. i would not be surprised if we have no rate cuts this year. that's not a bad thing. growth is better. >> potentially. >> no, not potentially. these are the numbers. >> you raise great points, but higher for longer potentially equals low er multiples and lowr stocks. you point to adjusting to the idea we're not going to get any rate cuts. i feel this sale of cbre by you is a little bit of that, it's adjusting perhaps to higher for longer and what that's going to

mean to certain sectors of the market and certain kind of stocks. am i right or wrong? >> well, to be clear, that's a stop loss, just risk management. you're right because that's why the market sold the stock off and other stocks in that group. real estate stocks have been doing well over the last couple of months, when it looked like we were getting closer to the start of a rate cutting cycle. they had gained back everything they lost from the rate hiking. they ended up getting turned away. the real story there is the ten year. you see industrials having trouble. that is a red line situation. i don't think that we can withstand wti crude at $100. i don't think we could withstand the treasury at 5.

why does it at 5 matter so much? it is the point a serious conversation has to be had. if you think over the course of ten years which, by the way, from the multiple we're selling at would be fairly ambition historically, now here comes a ten-year treasury where you're taking substantially less risk, probably less volatility, at least from today. it's a point at which people make that decision that they're going to allocate less to one and more to the other. it hits the multiples. not for every stock and not at the same time, but it is a counter veiling factor. if someone is equity only, they don't respond to what i'm saying. they dismiss it out of hand. oh, whatever. if somebody has to choose and

they're multiasset class, it's real. it's a factor. >> jimmy, do we need a higher for longer playbook? if we're going to listen to the likes of the fed, jefferson, who says rates may stay higher for longer or mary daly says no urge to cut. in a little more than an hour now it's an event based on the canadian economy is down in d.c., and i don't know if we'll get anything on rate policy from chair powell. you never know. higher for longer. do i need a new playbook for stocks? >> good question. where we need a new playbook, scott, if the talks pivot back to rate hikes. if we're, as stephanie said, no rate cuts this year or where the futures market is right now at somewhere around one to two rate

cuts, it will adjust to that. and that adjustment, folks, could look like a 5% to 7% pullback. right now the fed is talking about rate cuts. the maybe market is strong. profits are growing. if we start bringing back rate hikes into the conversation, the playbook changes. >> you could make the argument, i think it's fair to say we've had de facto rate hikes. rates have backed up. and it's put pressure on the stock market as a result, certainly relative to where people thought rates were going to be right about now. >> sure. >> i agree an actual rate hike would be a game changer. it will not help stocks if it continues to back up and the ten

year gets closer to 5%. >> i like the question you asked, do you change the playbook? sometimes you run a play and get stopped at the line of scrimmage. you rehuddle and run the next play. bank earnings, that net interest income is higher to come by. loan demand should be following all of these grants from the chips act and the plants built across the nation. there's a lot of things to be feeling positive about that, to me, says we don't need to go into the locker room at halftime and change the playbook. we need to run the plays and understand not every play runs for itself. >> if the defense has adjusted, why would you run the same play over and over again? >> good question, what i'm

saying is what you're seeing in the market is just the garden variety day-to-day noise. usually every year you get one correction, 10% or more. >> backing up to 4.65 is just noise? >> wait, wait, wait. we have already seen an adjustment. techie year to date is up 4%. energy is up 12%. industrials are up 6%. financials, even after the crummy mixed earnings, still up 6%. a play on higher rates because higher rates are hurtful and technology and growth are technically long duration assets. in the meantime, yeah, inflation is still high, but inflation has come down enough and the economy is globally now, as i mentioned, expanding, so cyclicals should do better especially if their

earnings are just as good as technology. >> not if you think a higher for longer rate picture on the economy -- >> that's a good point. >> one of the reasons why you had the broadening as intense as you did since the beginning of march was on the idea of lower rates and the economy will keep strong. the longer rates remain higher, the longer the end game. >> we have had fiscal stimulus into this economy and it has offset from the fed. i am not saying higher interest rates aren't going to slow us down. we have such tail winds, that is why we can handle it. it's globally liquidity has been put into the system. >> think about rate sensitive

purchases, think about autos, anything purchased on a credit card, mortgages. they're all more difficult. why would somebody like me continue to be bullish and say the market is adjusting. >> i'm not saying bullish. i'm saying, think about can you be as bullish in the areas as you were prior to the backup of rates. >> people are employed. that's the thing that gets us through. 4.63, yeah, sure, it's high compared to the last 13 years. it's not a level that crushes the economy. we've seen no signs of the labor market cracking. >> josh? >> i think -- i agree with what jim and stephanie are saying and longer term, of course, different interest rate equil equilibrium, what we're talking about is not the absolute level

of rates but the journey to 5% being something and the data is unequivocal. we're not saying things just for attention. go back on the s&p 500. we ran the numbers this morning, back to 1978, for all periods, the s&p 500 typically does plus 2.3% over three months after, in all periods, but when the u.s. ten-year treasury crosses 5% for the first time, which now looks increasingly likely, that turns into negative 1.8%. on a six-month basis, it's worth. 4.8% positive for all periods for the s&p. when we cross the 5% level on the ten-year treasury, it's negative 6%. there is a real cost to what happens to stocks when we cross

for the first time that 5% level. now -- now, that's three months and six months, so, of course if you're long-term oriented, you will use those opportunistcally. when i say average is negative 6, that means half the time it's worse. understand you can be bullish. you can think stocks are the right place to be, but you have to accept the fact back to almost 50 years of data something materially changes in the asset allocation picture when you're crossing 5% on ten-year yields for the first time. period. it's data. >> and, steph, let's be clear, you could, like you are, easily make the argument that the bullish trend is still intact as some will because, and many will, because they'll focus on the fact the fed is going to cut rates and the economy is strong. once you get past this noise, if you want to characterize it as that, you focus on the trend, good economy, fed cutting.

on "closing bell," the pullback has likely more to go for some of the reasons we've talked about, but that the trend is still positive. the trend is positive. goldman, buy the dip. why? the macro baseline of resilient growth remains, to your point. >> growth has been the surprise. if you break down the inflation from last week, cpi, a big part of that was shelter. shelter grew 5.7%. that's 35% of cpi weight. it's huge. then the ppi actually made more progress and the components within the ppi actually filter in more to the pce, which is what the fed looks at. we have a very big pce number coming down the pike in the next couple of weeks, and hopefully that number will make progress. it will not be the 2% level. >> a good 2 handle on it. >> we want to get to 2. >> well, not maybe.

they told you they're going to cut before it gets to 2. >> we will have to see. i'm more encouraged about the growth in the economy and the sustainability of the growth. and when i listen to larry fink of blackrock, to jamie dimon, brian moynihan, to all of the bank executives, they were all very optimistic especially about the consumer and especially about, like, credit cards and delinquency rates and problem issues. there aren't any problems at this point in time on the consumer part of the economy. and many of them talked about how there is so much money in money markets, probably going even more because rates are going higher. larry fink said it was $9 trillion in money markets last friday. that, to me, was a brand-new number. it had been $6 trillion. you get an opportunity to buy and you're going to start to see that, i think, another tail wind for equity markets. >> jimmy, bank of america's fund

survey most bullish, the most bullish survey since january of 2022. those fund managers are obviously looking at the same kinds of things steph is looking at where they suggest that 78% say a recession is, quote, unquote, unlikely within the next 12 months. largest drop in bond allocation since july of 2003. >> a quick note. folks, in case you missed this, the high bullish reading is not the contrary signal that you think it is. the high bearish signal is a very, very contrary signal. so, look, the survey could still have it wrong. it could be everybody is bullish before the top. for all the reasons we went through, there is a solid reason why the survey is that way. now 78% soft landing, of course last week we heard jamie dimon say he thinks exactly that number. 70% is what the market thinks for a soft landing and he thinks it's way too high.

josh made the point, about 5% from a fundalitial economy point of view, it doesn't change decisions any more than 6.3 does t. doesn't change the functioning of the economy. >> my point at the top of the program was not to say do you need a higher for longer playbook with the assuming that means you need to get all beared up and figure out what to do with your assets. can you look into the camera and give somebody actionable advice -- >> yes. >> -- when i could, six to eight weeks ago, can you look into that camera today and say i think you should still buy. >> that's fine. the reason when i say it's a good question, the answer is not known.

let me answer the question. >> why is the russell down 3.5%? >> now you have two questions and i want to answer them both. you know me and you asked, doesn't the market tell you something? some people feel it does. i feel in the short run, the market is a lot of noise. it's schizophrenic. it doesn't tell you as much as you think it does. the russell 2000 has been up and down. when it's been down, it's been the time to buy it. why? again, sorry to repeat this, strong economy, profits growing. yeah, we know higher interest rates are a headwind. that's in the russell 2000 right now. >> so the market is telling the story correctly? >> it's saying this is a great buying opportunity. >> is it? >> you have to look forward. i could be wrong, scott. plenty of times i've been on the show i've been wrong.

you'll make the decision whether what i'm saying makes sense or not. in a high growth environment, the atlanta fed gdp -- >> i said it, 2.8. >> 2.9. >> i was wrong. >> week after week after week, it is reasonable to expect profit growth. you see estimates coming down. trading at 14 times forward earnings. i'll take that in a strong economy. >> josh, do you think people should buy small cap stocks right now? >> it should be a part of people's allocation. i don't know overweighting them from a timely perspective is something anyone needs to urgently do. it's not as if you don't have value stocks that are larger, a lot of names have now come in.

are you forced to overweight small caps? no. why bother? i don't think that's where we are in the cycle or i'd be in a rush to do. >> some would suggest this has the makings of a go big or go home market because of where rates have backed up to why wouldn't you stay with the largest stocks, the most dependable in quotes in the market? maybe that steers you to the mega caps, which you've been added to, like apple, which you added to again. >> i am now overweight in apple because it's overperformed. it's underowned relative to historical average, where i think the rest of faang is pretty well owned. and i actually took a little bit of amazon profits and put it into the apple, because i do think the risk/reward is better. numbers have been coming down. china is it going to fix it. i think they're going to be able to grow double digits in

earnings with record margins in the face of challenging environment. we have services we have to look forward to in terms of double digit growth, a.i. to look forward to. look what happened last week talking about mac and new products with a.i. it was at 4% in the day, one of the biggest i've seen in over a year. i'm looking forward to places, not all of the faang and all of go big or go home. it's trying to pick some spots where i think there's good value and risk/reward. >> jimmy, long mag 7 the most crowded trade and that, again, according to the same fund manager survey that i referenced just a moment ago, the one that was the most bullish in the market since january of 2022. >> i think we need to retire the name for the obvious reason -- >> tesla. >> you could call it the fab five, whatever the. you can do whatever the you want. you know the point that's being made. >> the comment you started with the show, do we need to change the playbook? should we change from the

broadening of the rally back to the narrowing of the rally? i think the answer is no. having said that -- >> what's up today? nvidia is up, microsoft is up, amazon is up, meta, amazon is basically flat. >> apple. >> well, apple has had its own issues. at a point of alleged turmoil within the market, the safety trade has been back big. mega caps. >> no. >> yeah. >> no. >> no? >> i'll explain. if you want to pick today, that's fine. beloved nvidia, which i love a lot -- >> the most offensive trade in the market the last year and a half. >> what's it off from its recent high? >> it doesn't matter. >> how can you say it doesn't matter? >> it's the most defensive trade in the market. >> josh, i'm in it with scottie, i have to finish it, okay -- god, you're killing me today. the market is down 4% from its peak. if you measure it from the s&p 500. what's nvidia down? 10%. stop it. it hasn't been defensive.

not in this pullback. >> not within the most recent market upset. >> that's what we're talking about. >> there's a reason stocks dominated for as long as they did and investors have been able to play both offense and defense on safety and good balance sheets through a lot of market turmoil, more so than any market. >> not recently. >> not within a month of the backup in rates when we started talking about higher for longer. >> it used to be the mag seven, the only game in town in terms of earnings. everyone else didn't have really good earnings. >> the most dependable ones. >> and now fast forward -- well, look back at fourth quarter, if you look at energy, financials, industrials, they kept up with technology. that's my point. if earnings were terrible in the sectors or you didn't have a lot of visibility in these other sectors, that's one thing. but you actually do have better visibility in the sectors, and you have pricing power and you

have free cash flow generation and debt paydown. these are stories -- this has happened in tech. hasn't happened in the other sectors. now it's happening. it's broadening out. and that's very exciting actually. >> the earnings durability has been way more reliable in mega cap tech than it has been to the other sectors over a longer period of time. >> 100%. that's why they call them cyclicals. you can make a heck of a lot of money. >> josh, quick, and then we'll take a break. >> sorry to be annoying. you are right. james is off. the magnificent seven, there's an etf, mags. so if we want to speak about this group equal weight them in the etf. they're up 15% year to date which is better than the s&p now 6, using the spy.

they've held up better, 1% off the high, the s&p is more. i think, look, tesla is an eyesore. apple has its own issues. scott is right, people are using these stocks, using these stocks on days there's volatility, they're clinging to them. i'm not saying they should. i'm saying they are. >> okay, fine. but nvidia, apple, tesla in the most recent pullback, factual. this is not opinion. in the most recent pullback -- >> saying mag seven. >> you're cherry picking. both tesla and apple have had their own selective issues of late where the others have not and nvidia, okay, so you're going to say, well, it hasn't held up that great? the stock is not that far below

$900. come on. >> no, not come on. you come on. until this discussion -- >> year to date. >> you're the one who is cherry picking and you're cherry picking the time frame. we started about what's going on in the markets right now. >> i'm sorry. i'll go back 12 months. nvidia is up 225%. >> what's it doing right now? >> you're going to make your whole market argument about what's happening in the last two weeks, good luck. >> that's what we're talking about. >> time for a break. >> you're talking about do we need to change the playbook right now. don't talk to me about what happened in january of last year. >> okay. we'll take a break. >> good discussion. >> our "charlott of the day" is next. we'll get josh's reaction, "calls of the day," too.

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let's do some stocks on the move now. we start with united health off the back of earnings, a much-needed lift in shares by 6%. they did beat. jimmy, you own it. you say it's on probation because it hasn't performed well of late.

does this relieve any of your fears? >> it does relieve my fears. it raises another question. the reason it's up, it didn't do badly. expectations were extremely low. they reaffirmed guidance for the full year. their medical loss ratio, the amount at the pay out in claims, was higher than expected. the fear has been that would extend through the rest of the year. they have charges from the cyber attack. the worst fears have not been realized, but where does it go from here? we're in an environment where it trades at a premium multiple and the medical loss ratios are high. i'm uncertain about this but i'll take the win today. >> steph, you trimmed j&j and are about to bounce it, i feel like. >> i am. if we get a rally of some sort -- >> what's the problem here? >> the quarter was fine. they beat on the pharmaceutical

business, which i like, but med tech disappointed. med tech is supposed to shine as utilization rates are improving and they talked about it improving. that makes me think they're losing market share. in general i think med tech is kind of tired and i sold zimmer and we talked about that. to me, i just don't see a catalyst to get this thing higher. by the way, all of their m&a has been in med tech and they can't deliver on the report. it's not a disaster by any means but there's other places to put your money in the market. >> you have seen people, maybe institutional clients, move money out of health care. maybe we're rethinking the trajectory of the trade, too. our "chart of the day," it's live nation. the antitrust suit against that company or they're preparing to, i should say. what do we do with a stock you've liked for an awfully long time? >> so this came out last july.

it's almost a full year this has been an overhang on the stock. if you look at a one-year chart, on july 28th, somebody got at politico tipped the department of justice was thinking about bringing this suit or about to bring the suit. the stock got hammered. it fell from $100 down to $77, bottomed and eclipsed the high i feel as though this has already been fully discounted into the market. today says that it hasn't. okay, fine. if you think there's a full divestiture coming from live nation, maybe today's reaction is not enough. almost nobody on wall street thinks that's the end result. it's politically popular to beat up on ticketmaster because young people were mad they didn't get

taylor swift tickets and blamed box or whatever. the artists are in control of the pricing more so than any other force in the universe. everybody in the industry knows it. that's why this particular thing probably doesn't end up with a divestiture. maybe they pay a fine or maybe they have to end nonexclusivity contracts or practice management result. i don't think it'll be catastrophic for the stock. i remain long and i think it's a good thing once the thing happens that the cloud goes away because we're all aware, okay, this bomb dropped already. what's next? >> let me get to contessa brewer. hi there, scott. good to see you. china on the fentanyl crisis, the house select committee concludes china used tax credits and other incentives to subdice fentanyl which points to the key role in the flow of fentanyl in the u.s. the report provides

recommendations to curb the cr crisis. the maui fire department is expected to relows a report detailing how it responded to the luhana fires last year. both reports could help the state understand exactly what happened when fires engulfed the historic town killing 101 and causing an estimated $5 billion of damage or maybe even more. and legendary manager of the st. louis cardinals whitey herzog has died, won three division and league titles with the team and known for his innovative style of using speed, defense, and line drive hitters, named whitey ball in his honor. the cardinals confirmed his death in a statement. he was 92 years old. scott, back to you. >> a great manager. contessa, thank you. contessa brewer. up next, "calls of the day." we will discuss next.

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♪ all right. "calls of the day." josh, we start with you. uber has been called the best idea into earnings this year at jpmorgan, price target, $95. overweight's the rating. has a strong three-year outlook and, i mean, the outlook in the last year has been ridiculous, too. they have earnings coming up in a few weeks. >> yeah, well, this is the fourth best stock of all of last year after nvidia, i think constellation brands is in the list and one other. it was only uber. i've been relentlessly pounding my hand. one of the last major platforms,

one of the last to have a king get crowned and transportation of goods and people and freight is uber's wheelhouse. what's interesting the analysts said, which we don't talk about a lot. there's a $7 billion buyback plan that should help increase earnings. that number can go higher. they are much more poefocused o dollar growth versus incremental. it's a shift in focus and i think it will work for shareholders long term. i'm a shareholder not a trader and i like the stock. >> ge vernova. 154 is the price. it's at 130. you bought more. more last week. >> it's been a crazy stock. it came out of the chute and fell 14%.

now it's down six. i'm taking advantage of spins. i like wind power very much. a 3% install base. services to the overall mix. i like this is the a 11 times ebitda. >> price target to 50 from 44 for ge. >> they think that gm is going to raise guidance next week. i think that's a reasonable conclusion. it's reasonable on car buying volumes, where prices are, what they're doing with cost control. this is not usually what you will hear me say, what is the share count? they did an accelerated buyback between 20 and 25%. some people say it's financial

engineering. that's what i'm looking for when the report comes out. we'll ta ake quick break. mike santoli on the other side with his "midday word."

do we have the structure in place? >> we vn seen chinese evs in the u.s. should they be allowed to sell their evs in the united states?

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we are back. our senior markets commentator, mike santoli, is at post 9 with us for his "midday word." you know, if we have this relentless backup in rates, you're going to be looking at a stock market that looks at best like it does of late. >> no, that's right. the treasury yields are kind of searching for the pain threshold. people can estimate what that is. in terms of restraining economic growth and just sort of bumping up against where equity valuations are, if it's 4.8, if it's 5.0, i've seen evidence of

that. what i still think is relevant, though, it doesn't translate into a specific level for the market. it directionally puts pressure in that direction. and then tactically it's kind of like, are we oversold yet? are we hoping for a little more heavy selling so it's not so orderly? i think that's the zone we're in right now. you have home builders in a 10% correction. a lot of the stuff that, you know, people were leaning on into the first quarter this year is just getting questioned. i think nothing makes this look anything more than normal backing up after a rally. but what bonds are doing makes it uncomfortable and i think emboldens people who want to lower exposure. >> some are looking at the current landscape with much less rosiness from an economic standpoint than some of the data would suggest, pantheon macro. the danger of a substantial downside surprise to growth is

growing. auto sales are falling outright. >> so ian has been looking for kind of the soft underbelly. thought the labor market was less than meets the eye for a little bit. the last jobs report, the market kind of took it on face value. i think, to me, the escape hatch is 100% inflation numbers. inflation has to be a little bit more tame and relieves the pressure. we don't have to say the fed can't ease into this, and it buys you time. the economy can see the light at the end of the tunnel. >> pce, that day will be large, to say the least, but we expect the number willbe good, but we have to wait. we're going to have to wait, and that will come in the thick of tech earnings, too. >> which may not be the worst thing. every quarters we say, wow, the beats aren't getting rewarded

and the misses are getting destroyed. that seems how it builds out and you build to the big growth names dazzling you. >> mike santoli our senior markets commentator. coming up, are we betting on a bounce? stocks on noticeable losing streaks. we'll trade them. me?n berkshire of late? bong ho depot? ibm? we'll trade them next.

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who wants to come see the future?! get your business online in minutes with godaddy airo power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. we're back. so we're going to go through some losing streaks, big-name stocks our committee members own. we'll start with boeing, stephanie link. 11 down days in a row. >> it's been a tough one for sure. it's down 32% year to date. we know the reasons why. i think this will take a really long time to play itself out because we do have new management, we're going to have a new ceo, and that will take a while for the transition. i still like the duopoly aspect of airbus. the backlog is still strong. i say it all the time, they have nine years worth of backlog of

planes. they have to get it together and improving on quality long term will be very positive. you have to be patient. >> josh, why is berkshire down six days in a row? >> i think the stock has had a huge run, and they took down a lot lot of these names that i think were related to the rate cut. and having that get pushed out, i don't think it's more complicated than that. until somebody tells me otherwise, this is more of a buying opportunity than a reason to sell. >> jim, you have it, too. >> yeah, i agree. the only thing i might add to it, maybe it's the big apple position, but the stock is off what, 7.5% from its high. as josh said, it's had a heck of a run. >> ibm, five days in a row, depot, five in a row. >> yeah, i think ibm is selling off just the regular tech and it got a little bit of excitement over ai. maybe a little bit of weakness

in consulting, but accenture numbers, but i like what they have done in terms of the revenue mix. 75% of software and consulting, that will help margins over the long-term and it's cheap. >> i'm going to do one more, camden property. it sticks out in the real estate, because it's been under pressure. it's down four days in a row. >> interesting. this was a darling early in the covid era as rents were going up. now rents aren't going up so much. this is to the point about cpi earlier, that shelter has been coming down. you see it in camden property trusts. you see it in the rents. i think for the long run, this is an exquisitely managed company. we'll stick with it. >> this seems like high rates, down stock. >> that's true too, scott. >> more so than apartment prices, rents. more so than rents. >> think it's more rents.

>> invitation homes too, josh, is on a four-day losing streak, presumably for the same reason, a backup in rates. >> yeah, it's a yield story. it's rental homes. so for sure. >> we'll do "finals" next. tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly. and when i got there, they have the sushi- this is clem. like sushi classy- clem's not a morning person. i'm tasting it- or a night person. or a... people person. but he is an “i can solve this in 4 different ways” person.

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a bunch of earnings ahead. stephanie, you first on las vegas sands. that's tomorrow and after the bell. >> yeah, i think it should be pretty good. it's pent up demand. we know that aircraft ferry capacity has increased. i think the margin also be fine. >> genuine parts, that's thursday, jimmy. >> the stock has been lackluster, to say the least. but the fundamentals should be in tact. the average age of cars on the road is very long. those cars need to be repaired. >> glad we had this housing conversation earlier, because dr horton reports thursday before the bell. what do we think about this? the stock is down 4.5% year-to-date. plays into that backed up rate story. >> this is going to be seasonally a very strong quarter. kdh had 55% order growth when they reported two weeks ago. it's a matter of the macro versus the micro, but i like it

for the long-term. >> let me give you a reminder of what's coming up on "closing bell." adam parker will be with me. we'll find out what he thinks about this choppy market, we'll call it that. keith learner, we'll have a conversation later. and brian moynihan will be with me. let's do "final trades." josh brown, start us off with a name on your mind. >> yeah, throw this chart up for me. this is applovin, the number one performing large cap stock of the year, in the midst oh of a very low volume pullback. haven't pulled the trigger yet. >> let us know if you do, but that stock is up about 2.25%, as we talk about it here. farmer jim? >> cvs. this is not a slam dunk either. it's been a terrible stock. >> call it a dunk. >> it's been dunked on multiple times.

let's hear what they have to say when they report earnings next week. >> i like free port-mcmoran. >> i'll see you on "closing bell," everybody. "the exchange" is now. ♪ ♪ welcome to "the exchange." i'm in for kelly evans. here's what's ahead. the bond market still keeping stock gains in check. this as we prepare to hear from fed chair jay powell and we'll bring you headlines as to where to find opportunities across stocks, bonds, and commodities. plus, office vacancy rates hitting a new 20-year high. we'll look at the reits setup and the potential winners and losers into earnings, this aztec layoffs continue to pressure that sector. housing starts posting the