has been the story of how this economy has held up pretty strongly >> could beckham move around or was he just assaulted? >> he was swarmed by people. it turns out a lot of folks in finance are big fans of david beckham. >> that was a great get and a great week of coverage at milken let's get to the judge carl, thanks welcome to "the halftime report." i'm scott wapner the growth trade as more big names get hammered in today's session. we asked the investment committee whether it is time to lighten up your exposure joining me joe terranova, kari firestone and shannon saccocia we're at post 9. we check the markets it's been up four days in a row heading into today the s&p is a marginal loser today. 5181 dow in the green mega caps are mixed. joe, i want to zero in on the state of the growth trade. i think that's the most important conversation that's being had now. you've had growthy names get hit pretty hard. let's talk uber.

uber is down 9%. it's been a great performer. you and josh have talked about how great this stock has been. does this tell us anything about the state of the growth trade in the here and now it's not like the earnings report was that bad. >> i think it's a great example of a measurement for sentiment and positioning. if you think about growth, s&p growth over the last year is up 30%. you think about s&p value, it's only up about 18%. so where are our speculators positioned they're positioned more towards the growth trade, and clearly uber is a classic example of that look at the analyst community. scott, 92% buys on uber. 12-month price target, 90. today, after the earnings report, none of the analysts really budged on that price target so, yeah, i think it's indicative of setting expectations, and i think right now where we are, we've had a very strong recovery off of the 100-day moving average selling pressure in the early

part of april. now you're coming into a period where you're absent significant earnings and you have to set expectations that i don't think you'll get the type of performance from growth names you've gotten. >> a darling stock, up 70% in the past 12 months and as i said, okay, revenues beat, bookings guidance was slightly below expectations. there was a lot within the report the ceo was pretty optimistic about the environment and demand, et cetera. >> this stock peaked early march after the investor day that was the first buyback they ever did a lot of really good news. i'm not getting out of the stock personally i'll tell you this, i don't think it's racing back to $80 anytime soon if anything, it might challenge a 200-day moving average at 59

that's what you have to do, set the expectation. >> shannon, i wanted to use this as an opportunity like we did yesterday to really assess the state of the growth trade overall and whether it is time for money managers, our viewers, whoever, to lighten up a bit stan druckenmiller with nvidia taking a little bit off the top. trivariate's adam parker, altimeter's grad gerstner telling us he's taking his exposure down. listen >> we've taken down our own exposure by 1,000 to 2,000 basis points in our hedge fund and long only fund, and we've done that by both adding shorts, custom basket shorts we're worried about some things in the world as well as reducing some of the overall position sizes. again, this isn't about all or none this isn't about 100% net long or zero percent, this is about going from 80% net long to start the year to something closer to

60% net long today >> okay. so that's a reasonable takedown of overall exposure in one's port portfolio. that's from somebody who focuses primarily in tech and growth we all know the names he has in his book, the biggest tech names out of the mega caps >> i think when we started the year, scott, and you talked about the potential for this rotation from growth to value, underpinning that expectation or perhaps forecast was the fact that valuations and technology could have vulnerability, and what we saw over the last several weeks is that particularly big tech names did well the earnings were better than expected in many cases results were good. we saw major buybacks. the challenge here, scott, in order for people to feel as if they're looking to start to move out of the technology names, number one, there has to be a rationale for it, and i think when you look outside of big cap tech, perhaps there is more

vulnerability in terms of delivering those results and, number two, there has to be somewhere for the capital to go. i think what you're seeing, if there is evidence we're going to continue to see this broadening out trade, that this shorter term phenomenon, a combination of strong earnings out of the big names plus lower interest rates, if that's starting to dissipate in terms of what's moving the market, then you start to look at the broadening trade and say, great, not only do i have certain names within my portfolio that aren't measuring up to these premium valuations that they're being assigned right now, and perhaps there are also other places where we are suited to see some leadership that allow me a place for that capital to go >> the greatest vulnerability, if you want to use that word, kari, so many of the stocks are up so much since the october '23 market bottom. semis, smh is up 60% arc innovations is up 31 that tells the story, too, growth at the iwf is up. the xlk is up 27 and on and on.

you have trimmed apple and meta earlier in the year. are you thinking about doing more because you have, whether it's those two stocks, alphabet, amazon, auto desk, microsoft, sales force -- >> adobe -- >> pretty good exposure within the growth universe. >> exactly so what really is the piece to add to this, not about whether the growth trade is tired, it's whether the stocks have run so much that perhaps they're getting a little tired just of the ascent and they've reached a level in a portfolio that's high i mean, we owned meta when the stock was below 90 back in 2022. the stock went to 450. if you owned that meta, i think the prudent thing to do is to trim some of it, and that's what we did we didn't sell the whole position, but the position had become outsized, and that's true of several of these names. when we trimmed our apple, we thought apple was very

reasonably priced a year and a half before, but then it got to be more expensive. it's not as if the stocks aren't continuing to earn if you look at earnings for the s&p, the big cap names, earnings, this quarter up so far 39%. the rest of the s&p so far minus 3% >> they've accounted for all the growth >> they are pulling their weight. >> which is why it complicates, joe -- it complicates the question of lightening up in an area where the action is, right? you go where the money is, the old famous saying, because this is where the action and the money has been flowing, but then there's portfolio management that plays into it as well >> i don't think you move away from the prevailing trend which, to me, is to be long risk, long he cequuhe equities i think it would be unhealthy if we have that very brief correction in early april down towards -- what did we go down,

5% now we're going to go take out the high at 5264 so quickly. i just think that's kind of unhealthy, to a certain extent i think where we are, some sideways consolidation is actually good -- >> healthy >> it's actually good for the prevailing bull trend. but i'm telling you you're going to get sideways consolidation, many positionings are extreme. you have to look at that, do i want to minimize, reshape the risk the answer is yes. >> let's take nvidia for the perfect ebbsxample of how this tying people up in knots the stock gets above $900. next is $1,000 the market has a little bit of upset. it trades down to 750. if i trim at 900, i'm feeling great. now you look down, the stock is back at 900. so, did you get back in? did you get back in when it went down now it's back.

are you going to trim it before the may 22nd earnings report even adam parker who suggests it's time for growth managers, everywhere but that one. you can trim some exposure across the mega cap space, but i wouldn't touch that. that's what he said. >> i think there's going to continue to be this divergence and differentiation between where do i stay -- where am i holding pat, where am i standing firm, and where do i need to worry about some consolidation i think tech as a whole is going to be more interesting if you're looking at it from an active management perspective there probably are going to be nearer term winners and losers as it relates to nvidia, there really hasn't been, at least in our view, anyone else to take that mantle, to take the leadership in that space and so perhaps there is some additional protection. to your point, scott, there are so many buyers still out there that are not in that position. so it's hard to see a sell-off that wouldn't shift sentiment and have people move back into

that stock i don't think that's the case across the tech landscape, though i do think there is going to be continued divergence >> unless they miss on earnings. >> then -- then all bets are off. by the way, jensen huang will be on "overtime" today. so that's a big interview coming up >> if you're trimming in other areas in the portfolio and nvidia misses, what do you think will happen to the market? >> everything else >> the market is going down. >> can we talk about things that are going down today in terms of growthy wrecks, shopify? >> let's do it >> that's on pace for the worst day ever twilio is lower. now you sold twilio in february but you do have shopify in the joet they had a surprise loss their revenue growth forecast was somewhat downbeat, and they expect the almighty margins to decline. now the ceo was on the network earlier and was pretty bullish,

as you probably would expect one would be, but, nonetheless, the stock tells a dramatic story today. what do i do with this >> okay, so this stock is technically and fundamentally broken the larger question, for me, is why the rules moved shopify into our portfolio as we've gotten a broadening out, you're seeing a reawakening in the emerging service companies that have the profitability. so i could lump zoom video into there. at the end of january, again, the rules got us long, zoom video at 64. we quickly got out at 61 so this reawakening has a success rate that i would define as very low. pal iantir worked

i don't know that we're in the place yet where you can say these emerging software and services name, and you could lump into that -- you could lump into that data dog as well, which obviously missed yesterday. >> those were the two big blowups yesterday or this week >> right i don't think we're in the place right now where you could say those emerging software and services names are going to have a high probability to re-establish the type of bullish trend that we witnessed from them in 2021 and i'm not even talking about nonprofitable emerging market software and services names. i'm talking about the ones that are flirting -- >> let's talk high beta software names. look, match group pummeled today. you mentioned palantir, data dog, were yesterday's examples data dog is upgraded today the street is still backing these up outperform today at baird. price target to 140 from 130

that raises the issue. now you have to separate the mega caps from these kinds of names, too, when you're discussing lightening up in the growthy type names >> without question. and this is a stock that's part of the a.i. halo we talked about this the last several days, the expectations are remarkably high. would i do anything with the stock at 116 probably not i would rather buy the stock if it moved higher once again and begins to re-establish a lot of that positive momentum you want to see what type of price deterioration will follow after earnings, because that's generally where it's going to be most intense what is it up? 3% not a significant bounce at all. >> an upgrade today. >> up 3% incentivizes you to sit back and wait.

>> kari? >> it's been unforgiving, they trickle down and some people come in and buy them if you do it again, that's it. you're really, like, no pun intended, in the doghouse for a long time. it will take massive efforts and earnings or improvement to shift that boat. >> joe made a great point about profitability. that's the barometer was their path to profitability. that doesn't seem to be enough >> it has gone bananas from the bottom, right? just being profitable or having a good earnings report is not necessarily enough we're learning the punishment.

>> maybe it still is in some respects courtesy of bill baruch joins us again today, active in the markets these days and let's talk about apple you added to that. we can talk about the next one why did you add to it? >> we trimmed apple a couple months back in the mid to high 180s and the stock became so unloved. what are you doing for me now? everybody has an iphone. are they going to buy more iphones? what innovation do they have we've gotten some innovation when i was on the show starting to increase apple again a couple weeks back when the a.i. powered apple and macbooks and then last night the iphone shipments to china are up china was a big fear

you hear apple working on data centers. we continue to increase apple, it's only marginally underweight now. >> we have almost a month until wwdc, and that's where we expect more clarity on the a.i. ambitions that apple has i can't help but believe some of this is trying to get ahead of that, too. >> absolutely. i think you get a tail wind into that i would love to say we can clear 190. that would be a big move, about a 5% move. after trimming it well a couple months ago as we were moving out of tech. this movement talking about adding crowd here is continuing to get back into some of the tech we sold a couple months ago. >> amgen, too. that's the other one

i you added to that as well. tell us. >> amgen had a decent report, but the news about the weight loss drug helped that stock trade 15% higher last week after hours. it settled in a little bit i will say we do a lot of things great. we did miss the weight loss drug in health care we're looking at increasing the position got it up to a weighting and there's good tail winds around i do like the fact that compared to ozempic, which needs a weekly shot and this is a monthly shot, i don't want to get side tracked about the drugs they have working. they increased revenue for the therapeutic drugs, increased by 22% as well, really driving that ten therapeutic drugs increased by 10% so they are increasing revenues.

as they bring new drugs in the mix, that's how the multiple will increase. i like increasing our position in amgen and seeing how that plays out the rest of the year >> i appreciate you coming on and updating us. bill baruch, we'll see you back on the desk. kari, it brings to mind the other thing that adam parker has been saying of late as he's taken maybe a little bit more of a defensive tilt is health care looks, quote, unquote, on sale a lot of stocks look pretty interesting and idiosyncratic in the space. they're starting to get on my radar screen bottom-up stock picker in the setup for 2025 is what he has said your own pedigree is health care biotech stocks >> i agree with that they've had some problems, and that's a different ball game, and hopefully they can earn themselves amgen, it's interesting that we've looked at amgen.

what i find most exciting, not that it's once a month, but if it works the way they are studying it, you don't have to take it for the rest of your life, and that, to me, is what all providers are looking for. the cost of people being on the drugs forever is just astronomical and unavailable yes, i think there are a lot of health care sites that are down. they may not be cheap because many are binary. whether they work or don't work. and so you have to take maybe a basket approach and, therefore, you kind of lower your risk on each one of them because if the phase three doesn't work, the stock goes down 80%. >> not all health care related stocks are created equal not even in apples and oranges united health you think is on sale. >> definitely on sale. this stock got hit by a cyber attack that is going to work its way through the system and still the leader in the field, we think it's a cheap stock on earnings

it has a great balance sheet it's continuing to grow. so, yes, we do like that here. there are other names, health equity people are using health savings plans. the economy is good. people keep going to work. they get health savings accounts very, very good for that company. there are device companies, biotech companies. tmo we think is great. big covid winner, then lost after covid, is starting to come back as people keep testing drugs. >> i like integrating technology into the health care story, two names in which you can do that, intuitive surgical, edwards life sciences we know regeneron has done phenomenally well. in addition, icon, iclr, that's a name you could look at i will tell you, the comps get easier for health care >> in the second half for sure >> much, much easier >> even in the second quarter. >> you're working off that i'll apologize to the viewers. i fell asleep on this one,

merck. i had it for years got out at 110 it is back up to 130 i haven't gotten back in i missed that. at some point i have to get back into merck >> the other areas on your radar of late outside of tech, outside of growth, energy and industrials. you have two new buys. so let's hit that. number one, cnx, natural gas by the way, natural gas, wow, it's above $2. who knew >> that's big news >> it is not profitable for most of the producers to be in business so they've shut in capacity. cnx is the only producer in appalachia that can make money at this level. they bought back a third of their stock over the last couple of years natural gas has bottomed it's cleaner than oil. it's cleaner than coal and we thought it was a great opportunity. if it makes the numbers, we think 12 1/2 times earnings.

>> a little bit of a pop here. >> united rental firm in the united states, ashtead is overseas more construction. even data centers. a small part of your business, but construction is continuing not just in homes or commercial buildings but just in venues they do all kinds of live event rentals. there's a lot of construction going on that is not being purchased, it's being rented, and the business is growing. and they are gaining share it's united and ashtead. >> joe, energy is up 11.5% year to date. you told us in the recent rebalance if i recall, you're way, way above market weight in that group by more than double, almost triple, i think, at this point. >> back up to 10%. we were at 6%.

now we're up to 10%. somewhat nervous about energy itself the refiners have been an excellent trade. we're seeing price deterioration, spot price of crude oil. overall, 65 to 85, that's a sweet spot for energy equities, and you saw evidence to that in most recent earnings that have been released, in particular diamondback energy is a great example of that. we'll see where we go from here in terms of price itself, but i still think maintaining exposure to energy is the right trick >> what do you think >> i think if you look at earnings for energy, they continue to -- relative to the rest of the sectors not be all that compelling. the flip side, there's more opportunity there to see earnings growth. i think on the industrials side, the challenge is that you're looking at this in terms of from an economic growth perspective, there are certainly opportunities in industrials, but there are some areas that are large weights within that

sector that you're maybe not as excited about, boeing, for instance, in terms of being in that sector. there is opportunity, but i think you want to think about the growth opportunity and less about some of these value names, if you will, because they have been punished likely for a good reason >> up next, we have "calls of the day. bullish analyst activity on sherwin williams and old dominion we trade them next >> announcer: are you following "the halftime report" podcast? what are you waiting for look for us in your favorite podcasting app follow us now. unlocking the power of thinkorswim, the award-winning trading platforms. bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization. and track market trends with up-to-the-minute news and insights. trade brilliantly with schwab.

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from anywhere in the world. let's do some "calls of the day. sherwin williams, one of the fab five selected by evercore, the price target is at $360. reiterated outperform. the fab five is positioned around retailers with the balance sheet strong enough to compete in a multichannel world. kari, you own this >> i love the call what's good about sherwin williams is the following. it's seeing less competition in the u.s. ppg is out of north america. we've had interest rates go up, which was very bad for the stock and now interest rates seem to be stabilizing maybe they will come down now. very good for home renovations, home buying.

what has been tough, and we're going to start to see this turn over, people have not moved, but if you stayed in your old house because you couldn't buy a new one, at a certain point, if you have cracks on the walls, you're going to have to have a paint job. >> we've had rates high for a while, obviously why is the stock an underperformer >> people have held off. there has been a slowdown in paint sales. there has been a slowdownovatio is accelerating. that's going to be good for the company and good for the stock >> okay, let's talk block, joe barclays today says it's likely to be included in the s&p 500. >> really? >> increasingly likely and a catalyst for the stock that's a big jump. you own it in the t. >> just added it i'm going to be raw, completely candid here. there are certain things that go

in the portfolio, you check the rules to make sure that the rules affected the strategy. really guilty until proven innocent on block. it's an example of the type of company that at the top of the show we discussed. i think you would agree, it's an emerging type of company yeah, it has the profitability, but limited in its nature. it's not reawakening and going back into the 2021 environment it has to prove itself let's see if it does that. post earnings, i wasn't happy with the reaction to price after earnings >> old dominion, they remain opportunistic buyers the price target at 205. >> again, i'm going to be really candid on this one we own it. less than a truckload. and truckload is in a bad position right now recently we sold j.b. hunt in terms of pricing and volumes

it's on decline. the group trades at a premium to the s&p 500. it trades 12% above its one-year average, so something is wrong there. is it an indication of an economy that's beginning to contract maybe. okay we don't need to get that complicated. i will tell you this, it's very clear that the truckload industry is challenged right now -- >> excess capacity >> excess capacity and old dominion is in what i believe to be a perilous place to the headlines with pippa stevens. the israeli military said it has reopened the crossing into gaza but the united nations says humanitarian aid is yet to enter and there is no one to receive the aid on the palestinian side after workers fled during military activities in the area. the crossing was closed after hamas rocket attacks killed four

sold years an israeli tank brigade seized the nearby rafah crossing yesterday. over 50 million people from texas to the mid-atlantic are under threats of storms bringing possible tornadoes and large hail overnight michigan was hit with multiple tornadoes, some of which hit a fedex facility trapping about 50 workers. and spanish prosecutors say there is not sufficient evidence for them to continue with the second probe into pop star shakira's case of alleged tax fraud. the colombian singer has been under investigation for allegedly using an offshore company to avoid paying about $7.1 million in taxes on her 2018 income. shakira has denied any wrongdoing scott, back to you >> pippa, appreciate it. still ahead, getting tripped up trip adviser on pace now for its worst day ever the entire online retail trade under pressure today we'll talk about that next

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we're back a pretty brutal day for online retail stocks, the worst since last october, the worst day of the year as well trip adviser on pace for its worst day ever we bring that up we have booking holdings now how do you view that relative to trip >> well, trip adviser is a company in chaos they're trying to sell themselves they have a lot of problems, and it's not just about this quarter's earnings so i don't think there's any comparison booking is a much bigger company with a much better website they've invested more in it. the stock just had a good quarter. it's been solid and a good performing company it has a lot of market share trip is going nowhere, i'm

afraid that wasn't a pun. >> do we need joe to be concerned about discretionary? the second worst sector of the day. you pick up tjx and ross now those are very distinct parts of the retail landscape, and royal caribbean, too >> let's talk about tjx and ross, because, what are they they are off price what did they find their peak? in 2024, in late february. why did they find it there they had a significant appreciation from october, which was consistent with the decline in yields. there is a correlation that i can find for off price with yields itself. as yields move lower, off price did better as yields got sticky, off price got challenged the recent ads for ross and tjx is really recognizing the strength, the qualitative nature of both companies, and recognizing that they're in a

price position, which could offer some support but i will tell you this, ultimately it depends on where yields go from here. >> shannon, discretionary is tough, tough to pick the winners from the losers, isn't it? >> i think it really depends on what your outlook is for lower income and, more importantly, middle-income consumers. that's the inflection point from a consumer perspective i think the trends are we're going to continue to see minimal goods inflation. we're going to continue 10 see, i think, this resurgence of services as a percentage of spending is not going to go back to the way it was in the post pandemic but prepandemic, and i think there has been a little bit of froth in areas like travel because it has seemed to be very inelastic. people are willing to suggest price increases and they're starting to be a little bit more discretionary around that. so i think the challenge here is really looking at pipeline for the next year and a half our view is rates will come down, and i agree that will help

certain parts of discretionary, but i need to be more selective now. >> just look at disney disney, the emphasis was on streaming and what's happening >> parks >> if you dug into the parks, not so good. they raised price too much and consumer is stretched, as you said it shows up. when we come back, mike santoli is standing by with his "midday word." we'll hear from him next at pgim, finding opportunity in fixed income today, helps secure tomorrow. our time-tested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. pgim investments. shaping tomorrow today. awkward question... is there going to be anything... -left over? -yeah. oh, absolutely. (inner monologue) my kids don't know what they want. you know who knows what she wants? me! with empower, we get all of our financial questions answered. so you don't have to worry. empower. what's next. everyday chaos.

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♪ we're back with our senior markets commentator mike santoli with his "midday word. i want your opinion of what we see within this growthy universe shopify, twilio, palantir, data dog. i could go down the list to some

others if you want to throw uber in there, you can what are your observations >> a lot of it was, as joe was saying, this revival of excitement about the potential for these things to become some of the very profitable platform type companies clearly there's been some kind of a hiccup, not just in their own growth rates but the investors' appetites for continued raising of the bar and so that's been the case in general. europe not getting beats rewarded you have to spin it forward to guidance it tells me about the sensitivity to this broadening of earnings growth that we need to see that's part of it. there's also a little bit after stop and think about a.i.-related spending and themes and whether we've overcapitalized in the short term as drubbingen mil en en druckens saying groups are outperforming as we try to hold these levels

>> it's a weeding out of the winners now versus the winners maybe down the road where, to your point, we've sort of anointed a lot of stocks as winners now, and now we need to go through with a fine toothed comb >> so many charts have these great ramps and then a high several weeks ago and a sharp drop and we picked up again. so many of those that say, okay, are we just finding a range here, or was it a little bit of a rug pull >> how are you looking at this >> i think it's great, very thoughtful remarks for mike, and it's also about patience, and as a portfolio manager, as a speculator, you're not going to have the degree of patience with those names within an nvidia and the mega caps or even the large cap financial services names you're going to be impatient and i think that's emblematic of the environment we're in right now in particular with rates >> you can't be patient because it can't just be slow

incremental growth based on what you're paying. uber is much more about super crowded hedge fund names, everyone fell in love with it. can we overlook the fact that they spent hundreds of millions on legal stuff it's not an adjust ed ebitda. what are you getting >> that's mike santoli i'll see you on "closing bell," of course. the setup on airbnb. earnings coming out after the bell today, shares up 15% this year we have a committee member in it we trade it and will do it next. [crowd chanting] they ignored your potential, and mocked your ambition. but it's not the critic who counts. with every swing and block, your game plan never changed. ♪♪ some still call it luck. let them. because you know what it's always been. inevitable. ♪♪

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>> expectations are lowered going into this earnings report. nights booked, looking at growth 8.8% that's where the street is expecting. that's going to be your lowest growth for that metric since the fourth quarter of 2020 now kari discussed booking holdings they delivered weak guidance expedia gave you disappointing results. the expectations are low what could save this company is the fact they are best in breed and secondarily the balance sheet. free cash flow generation, will that be stronger than expected >> brian belski, by the way, with a new note out saying real estate has become oversold it's a contrarian call kari, do you want to take that you have american tower. i don't know what kind of broad exposure you have in real estate, per se what do you think? >> it could be a little early. it's been sold, a lot of st

selling. have we seen the shoe drop really in the commercial real estate world yet >> not really. >> have we seen big defaults from banks saying portfolio is total garbage? we're writing it all off no, we haven't therefore, i think he could be premature -- >> you're afraid that's still yet to come? >> i think there's more to come. america tower is in cell towers, it's different >> you like reits? >> i do. the other thing to think about the reit universe, scott, if you actually dig into the exposure within the u.s. reit universe, there's less cre exposure than you would think. there are ways to play the reit space. it's down over 5% this year, the sector a little bit of life recently, but i think you can be selective in this space and not take on outsized risk from a cre perspective. >> co-star group, host hotels, the two reits we have in the etf. all right. coming up, we'll trade some of today's top movers as well

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we would highlight elanco animal health for you. it's a stephanie link name we'll talk to her about that in the days ahead rivian is a loser today. as is align technology it's the third day in a row. so you carrie sold this. when did you sell it and why did you do so? >> we really sold it because the stock had been very strong it was a big part of the portfolio and we were really starting to worry about china. and that has been weighing on it since. the business had a huge booster in covid a lot of people got their liners in to fix their teeth. then business came off and china really shut down for them and the customers in the u.s. have not come back as strongly as expected. china hasn't come back, and there is more competition and people keep waiting for the earnings to start to run through that and it hasn't yet.

>> you just got rid of it too in the rebalance, right >> yes at the end of april we sold out of it. the momentum clearly broken on any measurement that you want to look at three months, six months, nine months, twelve months >> okay. final trades are next. ♪ ♪ welcome to the roots of our legacy. where excellence, comfort, and electricity... are forever in bloom.

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well today, defense and aerospace. the etf, that's a new record high today joe, you own it. >> i feel like you have to own it you have to own it because geopolitical tensions have never been higher. think about the last decade, how peaceful it was. think about now the last two years. having exposure to defense is critical >> yeah, the peace put is clearly not in place any longer. and i think if you look at europe in particular you think about another buyer that could be entering this market over the next couple of years >> i think it's at an all-time high and perhaps two months from now there will be a little less concern than the peak we have right now. >> would you sell it here? >> i might trim it if i owned it that's how i feel. >> peak defense? >> closing bell 3:00 eastern josh hardy, seema mody, paul vrabel the lacrosse legend he has a new book out but it really is a manual for business success. he's going to be here and i'm

looking forward to the conversation we'll have then we'll take you through the final hour of trade too. we've got a mixed market right now. dow still hanging green, s&p's a smidge negative and we'll follow the growth trade too shannon shannon, what's your final trade? >> we talked about it earlier i think the challenge here, scott-s reits are going to trade very much on rates and yields over the course of the next couple of months but if you look out over the next couple of years and you anticipate economic growth will continue to be strong and that there will be infrastructure and manufacturing with shoring bills there are opportunities here >> yields may be coming down good for reits, good for utilities. right? utilities have been one of the better spaces of the week. >> yeah, and that's an area we like as well and you have taunted me with that for some time but i think that utilities are now an ai play as well >> when they don't work you get taunted. you know how it is >> oh, yeah. >> carrie. >> i'm going to give you a utility, which is amazing. >> there you go. >> those are not stocks we talk about very much. and it's nexttera energy they own a very unique utility,

florida power and light. the stock went down because of concerns about their whole sustainable wind, sun exposure, and a pun to the energy segment. and now we think it's going up the other side and business is coming back. >> joe >> it beat up a lot of positions that we own today but netflix is a great one, continue to own it. >> great stuff i'll see you on "closing bell. we'll see you then, scott. hi, everybody. welcome to "the exchange." i'm kelly evans. and here's what's ahead. who's to blame for the recent market turbulence? it's not the fed, says dave zervos it's traders living in rate cut lala land. and he's here right behind me in studio to make his case. we'll also talk about office loan defaults nearing historic levels one of our guests says that's presenting a once in a generation opportunity he's here with what he's buying and where. and is it time to trim nvidia? the debate everyone's been having the past 24 hours stan drukenmiller,