S&P 500's Win Streak to Face September Test | Bloomberg: The Close 08/30/2024

ROMAINE: PCE DATA HITS THE MARK IN WALL STREET AND TRADERS HIT THE ROAD. DID YOU LIKE THAT? SCARLETT: I DID. ALIX STEEL IS OFF TODAY BUT WE ARE KICKING OFF TO THE CLOSING BELL IN THE U.S.. THE S&P DID NOT CLOSE HIGHER OR LOWER FOR THE WEEK. THE MAGNIFICENT SEVEN RECOVERING FROM A FOUR-DAY SELLOFF. NVIDIA REBOUNDING. SHARP DECLINES IN NYMEX CRUDE. SEVERAL OFFICIALS WITHIN OPEC+ EXPECT PRODUCTION INCREASES TO GO FORWARD THIS YEAR. TREASURIES DECLINE, PUSHING YIELDS UP. THE SPREAD BETWEEN THE TWO-YEAR AND THE 10 IS CONTINUING TO STEEPEN. THE GAP IS JUST UNDER TWO BASIS

POINTS. ROMAINE: INTO THAT LABOR DAY WEEKEND, LOOKING BACK AT THE MONTH THAT WAS ON THE LAST TRADING DAY OF AUGUST. A SOLID MONTH FOR GLOBAL STOCKS, A RALLY THAT LARGELY OCCURRED WITHOUT ANY MEANINGFUL CONTRIBUTION FROM THE MAGNIFICENT SEVEN OR CHIP STOCKS. THAT MIGHT BE A GOOD THING. SIGNS OF BETTER BREATH FOR A BROADENING RALLY, AMID BETS THE FED TAMED INFLATION WITHOUT TIPPING THE ECONOMY INTO RECESSION. THE FED'D PREFERRED MEASURE, THE CORE PCE ADVANCED LAST MONTH BY 1.7% ON A THREE-MONTH ANNUALIZED BASIS. THAT'S THE SLOWEST PACE THIS YEAR. THE SAME REPORT SHOWED CONSUMER SPENDING ACCELERATING, CHECKING

A KEY BOX FOR JAY POWELL AND THE PROSPECT FOR CUTS STARTING IN 2.5 WEEKS. >> THIS IS A GOOD MIX OF DATA. YOUR DOWNSIDE RISKS. THE UNEMPLOYMENT WAS HIGHER IN THE LAST REPORT. OVERALL, PRETTY GOOD TONE. ROMAINE: INDIVIDUAL STOCKS MOVING TODAY. BIG LOSSES FOR THE DISCRETIONARY NAMES LIKE ULTA. DELL AND HEWLETT-PACKARD AND INTEL RALLYING. THE CEO IS CONSIDERING STRATEGIC MOVES THAT COULD SPLINTER ITS FOUNDRY BUSINESS, A DIVISION THAT HAD BEEN AN ALBATROSS FOR THE COMPANY BUT WAS SUPPOSED TO BE A BRIGHT SPOT LONG-TERM. SCARLET: IT IS PROVING A BRIGHT SPOT TODAY. PRICE ACTION IN STOCKS

CONTINUE TO MAKE NEW HIGHS. THE YELLOW LINE TRACKS THE 76 TECH COMPANIES IN THE S&P. IT'S UP 43% THE PAST YEAR, BUT THEY NEVER REALLY RECOVERED FROM AUGUST. IT'S ABOUT 1% SHY OF ITS ALL-TIME HIGH. DEFINITELY IN CONTRAST WITH THE EQUAL WEIGHTED INDEX, THE CLEAR LAGGARD HERE. IT IS SETTING NEW HIGHS. INVESTORS SEE MORE PROSPECTS FOR UPSIDE IN OTHER SECTORS OUTSIDE TECH BY FINANCIALS AND INDUSTRIALS. ROMAINE: THAT FOCUS ON THE MACRO. PCE DATA THIS MORNING. BIG JOBS REPORT IN A WEEK. SOME COMPANIES ALREADY FRONT RUNNING THAT. GOLDMAN CUTTING 1300 JOBS, 4% OF THE WORKFORCE, ACCORDING

TO A REPORT BY THE WALL STREET JOURNAL. ACCORDING TO THAT, THEY HAVE ALREADY STARTED AND WILL CONTINUE THROUGH THE FALL. THEY ARE PART OF AN ANNUAL REVIEW THAT CUTS LOW PERFORMERS. 1300 WORKERS, 4% OF THE WORKFORCE. WE WILL GET YOU MORE DETAILS ON THAT. ON THE BROADER TOPIC, THE HEALTH OF THE ECONOMY. BE LAUREN HILL, THANK YOU FOR BEING HERE ON THE PROGRAM. KUDOS FOR WORKING THIS DAY WHEN EVERYONE ELSE IS HITTING THE ROAD. I WANT YOUR TAKE ON ECONOMIC CONDITIONS. YOU HAVE TO HAVE AND I ON THE MACRO. THE NARRATIVE OF THE LAST FEW

MONTHS WAS THAT THE MACRO WAS AT LEAST RESILIENT, IF NOT EXCEPTIONAL. DO YOU EXPECT THAT TO CHANGE? LAUREN: AS LONG AS UNEMPLOYMENT REMAINS INTACT, THE ECONOMY WILL COME ALONG. WE ARE SEEING WEAKNESS IN CONSUMER DISCRETIONARY. CONSUMERS STARTING TO SEEK VALUE, WE HEARD THAT FROM DOZENS OF RETAILERS PAST COUPLE WEEKS DURING EARNINGS. THEY ARE TRADING DOWN, DELAYING PURCHASES AND GOING WITHOUT IN ORDER TO MAINTAIN TIGHTER BUDGETS. ROMAINE: WHEN WE LOOKED AT EARNINGS FROM RETAILERS, A COMMENTARY BY DOLLAR GENERAL SUGGESTED THE LOW INCOME CONSUMER IS RETRENCHING. MIDDLE INCOME CONSUMERS AND ABOVE THAT TO THE HIGHER NET WORTH

INDIVIDUALS, ARE WE SEEING SOFTNESS? LAUREN: NOT FROM THE HIGH INCOME FOLKS YET. INFLATION OF THE PAST FOUR YEARS STARTED TO LEAN ON THE LOWEST INCOME FOLKS A COUPLE YEARS AGO. THERE WAS A BACK-TO-SCHOOL SHOPPING SURVEY THAT CAME OUT, JULY. THE INTENTION WAS TO CUT THEIR SPENDING 4% THIS YEAR BECAUSE THEY HAD ALREADY TIGHTENED LAST SUMMER. NOW, THE MIDDLE INCOME GROUP IS JOINING THEM. THAT GROUP'S INTENTION WAS TO SPEND 9% LESS. A SURVEY FROM PARENTS, THEY THOUGHT THE CUTS WOULD BE MORE IN THE BIG TICKET ITEMS. LIKE TABLETS AND LAPTOPS. WE SAW A STRONG COMP FROM

BEST BUY, UP 6% FROM THAT CATEGORY. WE ARE REALLY SEEING MORE PRESSURE ON THE APPAREL AND FOOTWEAR SIDE. SCARLET: HOW ARE YOU ADJUSTING YOUR PORTFOLIO WITH THIS BIFURCATION OF CONSUMER SPENDING AND WHERE THEY ARE SPENDING? LAUREN: THAT REMAINS AN IMPORTANT THEME. THE NAMES MORE EXPOSED TO THE UPPER END CONSUMER CONTINUE TO HAVE STEADY RESULTS. THOSE IN THE MIDDLE INCOME ARE STARTING TO FEEL THAT PRESSURE. THAT'S A GROUP WE REALLY AVOIDED. WE'VE BEEN POSITIONED MORE TOWARD THE HIGHEST QUALITY NAMES THAT ARE ALSO TRADING AT GOOD VALUES. WE CONTINUE TO REALLY LIKE WALMART. THERE ARE CERTAIN NAMES

THAT STAND OUT TO US AS LONG-TERM MARKET SHARE WINNERS IN THIS ENVIRONMENT WHERE CONSUMERS CONTINUE TO SEE VALUE. SCARLET: NUMBER ONE QUESTION CLIENTS HAVE WHEN YOU TALK ABOUT HOW THE MARKET IS LIKELY TO SHAPE UP THROUGH THE END OF THE YEAR? LAUREN: THEY ARE CONCERNED ABOUT THE CONSUMER. A NUMBER OF THEM OWN REAL ESTATE PORTFOLIOS, HAVE EXPOSURE ACROSS DIFFERENT INCOME GROUPS. THEY COME TO US TO GET A BROADER PICTURE AND UNDERSTAND THE 40,000 FOOT VIEW, ALSO TO TALK ABOUT THEIR EQUITIES. WE'VE BEEN TELLING THEM ABOUT THE THEMES WE ARE SEEING WITH THE CONSUMER AND THE

SHIFTS IN SPENDING. ROMAINE: PUT THIS TOGETHER. EVERYONE ASSUMES WE ARE AT THE PRECIPICE OF AN EASING CYCLE THAT WILL START SEPTEMBER 17. IF THEY ARE DOING CUTTING AGAINST THE BACKDROP OF INFLATION TOWARD 2%, A RESILIENT CONSUMER, BUT EVERYTHING YOU TALKED ABOUT, SOFTNESS APPROACHING, SHOULD THEY HAVE STARTED CUTTING EARLIER? LAUREN: I THINK THEY SHOULD HAVE. THE FED GOES OFF THE DATA. WE WILL SEE HOW THINGS PROGRESS. THE KEY IS EMPLOYMENT. AS LONG AS UNEMPLOYMENT IS NOT RAPIDLY RISING, I THINK WE ARE IN GOOD SHAPE AS A COUNTRY. IF WE SEE UNEMPLOYMENT UP AS CONSUMERS AREN'T SHOPPING

TO AS GREAT OF A DEGREE AND MANAGEMENT TEAMS ARE FORCED TO PROTECT MARGINS WITH LAYOFFS, I DON'T THINK ANYONE LAID OFF WILL BE SO EASILY ABSORBED AND FIND THE NEXT GREATEST JOB. HIRING IS THE CONCERN THIS CYCLE. ROMAINE: GREAT STUFF, LAUREN HILL, DOWN THERE IN DALLAS. WE GET THE MONTHLY JOBS REPORT ONE WEEK FROM TODAY. UNEMPLOYMENT RATE STILL HOLDING 4.3%. COMING UP, WE ARE GOING BACK IN TIME TO THE 2000S. ABERCROMBIE & FITCH HAS HAD ONE OF THE STRONGEST TURNAROUNDS IN RETAIL HISTORY. SCARLET: EUROPEAN FOOTBALL, THE NBA, THE NFL. WHAT'S NEXT? PRIVATE EQUITY IS INCREASINGLY

INVESTING IN YOUTH SPORTS. ROMAINE: WHAT ARE YOU WAITING FOR? GET OUT THERE ON YOUR PLANES, TRAINS AND AUTOMOBILES. EVERYONE IS HITTING THE ROAD. WE WILL CHECK IN WITH THE POINTS GUIDE. ♪ SCARLET: IF YOU LOOK AT CORE PCE, IT CAME IN LINE WITH EXPECTATIONS, MONTH OVER MONTH. SETTING THE STAGE FOR AN IMMINENT CUT BY THE FED. COURTNEY, WHAT IS YOUR TAKE? GOLDILOCKS ENVIRONMENT? COURTNEY: I THINK SO. IT'S ENCOURAGING FOR THE FED THAT THE Q1 SPIKE HAS MOSTLY REVERSED. THREE MONTH ANNUALIZED BASIS, CORE PCE NOW BACK TO WHERE WAS JUNE, 2020. THAT'S EXCITING. CONSUMER APPEARS HEALTHY.

STRONG REAL GOODS SPENDING IN JULY. THE ECONOMY IS NOT FALLING OFF A CLIFF. THE GOLDILOCKS IS HAPPENING. IT'S MODERATING AT A BENIGN PACE. SCARLET: HOW DOES THIS INFLUENCE INVESTORS SENTIMENT NEXT WEEK? COURTNEY: SHOULD BE ENCOURAGING, AFFIRMING. WE HEARD FROM CHAIR POWELL AT JACKSON HOLE. THE TIME HAS COME FOR POLICY TO ADJUST. THE FED IS PAYING ATTENTION TO THE DATA. THEY WILL BE RESPONSIVE TO THE LABOR MARKET. THE CHAIR COMMUNICATED THAT. THE DATA NEXT WEEK SHOULD GIVE THE FED CONFIDENCE TO ADJUST POLICY. ROMAINE: LABOR MARKET DATA AND ROLLING AVERAGES, IS THAT PAINTING A PICTURE OF A

LABOR MARKET IN FAVOR OF THE WORKER OR HAS THAT SHIFTED BACK TO THE EMPLOYER? COURTNEY: WE ARE SEEING MODERATION IN DEMAND. WE DO A SCRAPING OF EARNINGS CALLS TO SEE WHAT FIRMS SAY ABOUT HIRING AND LAYOFF PLANS. HIRING PLANS HAVE SLOWED. THERE ARE NOT AS MANY JOB OPENINGS COMPARED TO A YEAR AGO. EMPLOYERS ARE TAKING THEIR TIME AND BE MORE PICKY WITH HIRING. THERE'S A NUMBER OF DYNAMICS SHIFTING. ROMAINE: WHAT DOES THAT MEAN? WHEN WE TALK ABOUT AN EASING CYCLE, I WONDER HOW FAR CAN THE FED <GO>? COURTNEY: WHEREVER NEUTRAL IS, WE ARE NOT THERE.

POLICY IS CURRENTLY RESTRICTIVE. THE LABOR MARKET IS NOT GOING TO BE STABILIZING. THE POINT OF RESTRICTIVE POLICY IS IT'S GOING TO SLOW DOWN DEMAND. WE THINK THE FED HAS GOOD ROOM TO CUT. WE ARE EXPECTING A STEADY SEQUENCE OF CUTS THIS YEAR AND EARLY NEXT YEAR TO TAKE THE EDGE OFF SO WE CAN SEE, ONCE THE FED TAKES 100 POINTS OFF THE POLICY RATE, THEY MIGHT BE ABLE TO GO AT A SLOWER PACE. IT DEPENDS ON LABOR MARKET DATA. INFLATION DATA IS IN NORMAL RANGE. THE FED CAN PAY MORE ATTENTION TO THE LABOR SIDE OF

THEIR MANDATE. SCARLET: ECONOMIC SURPRISE INDEX CURRENTLY THE HIGHEST SINCE MID-JUNE. WE KNOW THEY SELF-CORRECT, WHEN ECONOMIC DATA BEATS ESTIMATES, EXPECTATIONS GO UP. OUR ECONOMISTS FEELING MORE CONFIDENT DATA MIGHT UNDERSHOOTING? COURTNEY: PARTICULAR, THE LABOR MARKET DATA IN JULY WAS SHOCKING FOR SOME. IT WAS MUCH LOWER THAN CONSENSUS WAS EXPECTING. WE HAVE TO PAY ATTENTION TO THAT. IF THERE IS NOISE, WE CAN BUILD THAT IN AS PAYBACK MOVING FORWARD. THE UNEMPLOYMENT RATE HAS CONSISTENTLY RISEN. WE HAVE TO TAKE SOME SIGNAL FROM THAT. FOR THE FED RESPONDING TO THAT, WE ARE ALREADY AT LOWER LEVELS OF INFLATION AND

HIGHER UNEMPLOYMENT THAN THEY WERE EXPECTING EARLIER THIS YEAR. THAT GIVES THEM ROOM TO MOVE RATES LOWER. ROMAINE: GREAT STUFF, COURTNEY. CLOSER LOOK AT CORE PCE AND AHEAD TO WHAT WE MIGHT GET OUT OF LABOR MARKET DATA ONE WEEK FROM TODAY. INTERESTING DATA CAME OUT ABOUT U.S. LABOR MARKET GROWTH LONG-TERM. EXPECTATION IS WE WILL SEE GROWTH OF 0.4% A YEAR THROUGH '33. THAT'S LESS THAN ONE THIRD OF THE PACE WE HAD IN THE PRECEDING DECADE. SCARLET: WHAT CHANGED? AGING? ROMAINE: POPULATION GROWTH IS SLOWING. PEOPLE ARE AGING OUT. SCARLET: YOU WONDER HOW MUCH IMMIGRATION FACTORS IN AND

WHATEVER POLICY COMES OUT. ROMAINE: THIS IS THE THING NO ONE WANTS TO TALK ABOUT. THE STRENGTH WE HAVE BEEN SEEING IN THE LAST FEW MONTHS, A BIG PART OF THAT HAS BEEN IMMIGRATION RELATED. SCARLET: IT'S NOT NECESSARILY ALWAYS SHOWING UP IN THE DATA. ROMAINE: WE WILL LOOK AT ONE OF THE BETTER TURNAROUNDS WE HAVE SEEN FROM A RETAILER IN HISTORY. ABERCROMBIE & FITCH. REMEMBER THEM? THEY ARE BACK. ♪ ROMAINE: MARVELL TECHNOLOGY RECEIVING GOOD REACTION AFTER POSTING Q3 OUTLOOK, LIFTING PRICE TARGET FROM 120 TO 100, THE IDEA THAT THEY CAN BETTER CAPITALIZE ON AI DEMAND. CROWDSTRIKE

UPGRADED TO BUY. THE GLOBAL I.T. OUTAGE IN JULY. THE ANALYSTS SAY THAT IS NOW BEHIND US. LONG-TERM PROSPECTS STILL INTACT. THOSE SHARES UP A PERCENT ON THE DAY, CLOSING OUT THE MONTH HIGHER 19%. KOHL'S MAY NOT BE RESONATING WITH MIDDLE INCOME CONSUMERS. THE CHALLENGES COULD CONTINUE TO IMPACT PRICING IN THE SECOND HALF OF THE FISCAL YEAR. THE SHARES TAKING A LEG DOWN 3% ON THE DAY. ONE RETAILER THAT DOESN'T SEEM TO BE STRUGGLING, ABERCROMBIE & FITCH, ONE OF THE BEST-PERFORMING RETAIL STOCKS OF THE YEAR. CITI CITED 10 REASONS. THE MAN BEHIND THAT RATING NOW, PAUL,

THIS HAS BEEN A PHENOMENAL STORY. WE SPOKE WITH THE CEO TRYING TO GET INSIGHTS ON HOW SHE DID IT. HOW DOES SHE KEEP THIS GOING? PAUL: WHAT FRAN HAS DONE IS REMARKABLE. ONE OF THE BEST TURNAROUNDS WE'VE EVER SEEN. THIS WAS A LOW SINGLE-DIGIT BUSINESS PRIOR TO THE PANDEMIC, AS RECENTLY AS '22. LOW SINGLE DIGITS. SHE HAS GOT HER FINGER ON THE PULSE OF THE CONSUMER. RETAIL SOMETIMES IS AS SIMPLE AS GETTING THE FASHION RIGHT ON A CONSISTENT BASIS AND MATCHING THAT WITH THE RIGHT MARKETING MESSAGE. IT'S NOT EASY BUT THAT IS WHAT SHE'S BEEN

ABLE TO DO. UNBELIEVABLE TURNAROUND STORY. WE ARE SO IMPRESSED WITH WHAT THEY'VE DONE. WE THINK THE BEST IS YET TO COME. WE THINK IT IS HIGHER. SCARLET: YOU GIVE 10 REASONS. NUMBER SEVEN IS BALANCE SHEET PRISTINE. NO DEBT. THE GROWTH ABERCROMBIE HAS SHOWN IS EXCITING. WILL THE COMPANY BE TEMPTED TO TAKE ON DEBT TO SUSTAIN THAT GROWTH RATE? PAUL: NO. THEY ARE FREE CASH FLOW POSITIVE. YIELDS IN THE HIGH SINGLE DIGIT RANGE. THAT IS OUR FORECAST FOR THE NEXT SEVERAL YEARS. THEY JUST PAID DOWN THE REMAINING DEBT THEY HAD. THEY ARE NOT SHOWING ANY SIGNS

OF TAKING ON MORE DEBT. WHAT WE ARE REALLY EXCITED ABOUT IS WE THINK THIS BIG CASH POSITION, WE ESTIMATE $1.2 BILLION IN CASH BY THE END OF THE YEAR, COMBINED WITH THEIR STRONG CASH FLOW, WILL ALLOW THEM TO BE MORE AGGRESSIVE FROM REPURCHASING PERSPECTIVE. WE EXPECT THAT TO BE A BIGGER PART OF THE STORY. ROMAINE: A LOT OF COMPANIES WOULD LOVE TO HAVE THEIR VERSION. WE TALK ABOUT IT BEING ONE OF THE BEST RETAIL STOCKS THIS YEAR. ONE OF THE WORST IS LULULEMON. YOU COVER THIS COMPANY. WHAT CAN FIX THEIR PROBLEMS? PAUL: WE ARE NEUTRAL

RATED. THEY ARE IN A ROUGH PATCH. THEY BENEFITED FROM A SHIFT TOWARD ATHLETIC LEISURE DURING THE PANDEMIC. NOW CLOSETS ARE FULL WITH THAT PRODUCT. THERE'S BEEN A SHIFT MORE TOWARD THE FASHION ABERCROMBIE IS SELLING. IT'S A MATTER OF WALLET SHARE CURRENTLY. AT SOME POINT MAYBE THE TRENDS GO TOWARD THAT AGAIN. SCARLET: ESPECIALLY THE WIDE PANTS. THAT'S REALLY POPULAR. THANK YOU SO MUCH. COMING UP, PRIVATE EQUITY LOOKING INTO YOUTH SPORTS. ROMAINE: 3:30 P.M. NEW YORK, COUNTDOWN TO THE CLOSE. I THINK WE ARE THE ONLY TWO PEOPLE IN NEW YORK CITY. SCARLET: DEFINITELY IN THIS OFFICE. ROMAINE:

LABOR DAY WEEKEND. FINAL TRADING DAY OF AUGUST. INTERESTING MONTH. MAJOR INDICES HOLDING MODEST GAINS. YOU DIDN'T SEE THE HUGE MAGNIFICENT SEVEN STOCKS LEAD THE CHARGE. CLOROX WAS UP 20% THIS MONTH. SCARLET: COMPLETE SHIFT FROM EARLIER IN THE YEAR. INVESTORS SEE MORE VALUE IN OTHER KINDS OF COMPANIES. ROMAINE: WE TALK ABOUT BIG NAMES. TESLA ONE OF THE WORST PERFORMING STOCKS OF THE YEAR. THEY ARE DOWN IN AUGUST. THE ROBOTAXI ELON MUSK HAS TALKED ABOUT FOREVER, HE WILL FINALLY UNVEIL IT OCTOBER 10 ON THE WARNER BROS. DISCOVERY MOVIE STUDIOS LOT. SCARLET: HE HAS A FLAIR FOR SHOWMANSHIP.

HOLLYWOOD MAKES SENSE. ROMAINE: ONE OF THE BIG BARN BUSTER STOCKS ON THE BACK FOOT. HE HASN'T ARTICULATED A LONG-TERM PLAN FOR NEW MODELS. THAT COULD CHANGE. SCARLET: SOME OF THE BIG WINNERS THIS WEEK, PRIVATE EQUITY THAT GOT THE GREEN LIGHT TO INVEST IN INDIVIDUAL NFL TEAMS. THEY ARE DRAWING A PLACE TO CAPITALIZE ON YOUTH SPORTS, WHICH IS BOOMING. FAMILIES ARE SHELLING OUT $900 PER CHILD EVERY YEAR TO HAVE THEIR KIDS COMPETE ATHLETICALLY. TOM FERRY, SO GOOD TO SPEAK WITH YOU. $30 BILLION FIGURE IS A MINIMUM. WHAT DOES THE GROWTH TRAJECTORY LOOK LIKE OVER THE PAST

40 YEARS? I IMAGINE IT'S LIKE A HOCKEY STICK. TOM: IN THE 1990'S THE TRAVEL TEAM INDUSTRY BECAME A THING STARTING WITH DISNEY IN ORLANDO. WE SAW THE GROWTH OF THESE MEGA FACILITIES AROUND THE COUNTRY. IT BRINGS LOTS OF MONEY OUT OF MANY FAMILIES. IT HAS BEEN HUGE. WE WILL SEE WHAT THE FUTURE HOLDS. SCARLET: PRIVATE EQUITY IS LOOKING AT YOUTH SPORTS. GIVE US A SENSE OF THE PRESENCE. ARE WE TALKING 20-80? TOM: THESE SPORTS HAVE BEEN DOMINATED BY THE LOCAL MOM AND POPS. ONLY IN THE LAST FEW YEARS HAVE PRIVATE EQUITY GOTTEN INTO THE SPACE.

WE WILL SEE MORE OF THIS GOING FORWARD. THERE WILL BE A CONSOLIDATION. WHATEVER THE FIGURE IS, IT WILL GROW. ROMAINE: WHERE DOES THE MONEY GO? IS THAT MONEY GOING INTO THE LEAGUES? TRAINING FACILITIES? TOM: I WAS ONE OF THOSE TRAVEL TEAM PARENTS. IF YOUR KID IS PLAYING SOCCER WITH A CLUB, IT MIGHT BE A $5,000 REGISTRATION FEE. THE WEEKEND TOURNAMENTS REALLY AMP UP THE DOLLARS. THE HOTELS, FLIGHTS, GASOLINE, KNEELS ON THE ROAD. ROMAINE: AS SOMEONE WITH A TEENAGER GOING THROUGH THIS, I FEEL YOU. LET ME STATE FOR THE RECORD, IT IS A LOT MORE EXPENSIVE

THAN $2000. I'M CURIOUS AS TO WHAT THIS COULD MEAN FOR THE KIDS AND THEIR PARENTS. ARE THEY GOING TO BE ABLE TO SHARE IN THIS POTENTIAL UPSWING? OR IS THIS MORE PLAY LIKE A KID AND MAYBE YOU CAN PROFIT FROM IT WHEN YOU MAKE IT TO COLLEGE? TOM: THE INDUSTRY IS BASED ON THIS IDEA, IF YOU INVEST IN CHILDREN AND GET THEM HIGH DOSES OF SPORT STARTING AT EIGHT YEARS OLD, THEN YOUR KID HAS A CHANCE TO PLAY IN COLLEGE AND MAYBE IN THE PROCESS. WHAT HAPPENS, OFTEN PARENTS, WHEN THEIR KID IS IN 11TH GRADE,

THEY REALIZE THERE IS NOT A LOT OF PAYOFF HERE. THERE'S NOT A LOT OF SCHOLARSHIP MONEY WAITING FOR MY KID. MAYBE THERE IS PREFERENTIAL ADMISSION TO A SELECTIVE COLLEGE THAT CAN BE LEVERAGED. THE REAL RETURN ON INVESTMENT IS WHAT SPORT DOES FOR A KID'S LIFE. ARE THEY MORE CONNECTED TO FRIENDS? IS IT PROTECTIVE AGAINST MENTAL HEALTH? DOES IT CREATE ACTIVE LIFESTYLE? THAT'S WHAT PARENTS AND KIDS SHOULD BE FOCUSED ON. THAT'S THE REAL RETURN. SCARLET: I LIKE THE WAY YOU PUT THAT. WHAT IS THE RETURN FOR INSTITUTIONAL INVESTORS? FIRMS TEND TO HAVE A TIMELINE OF THREE

YEARS. WITH THE MONEY COMING IN TO YOUTH SPORTS, HOW DO YOU SEE THAT CHANGING THE EXPERIENCE FOR FAMILIES AND THE INDUSTRY? TOM: PRIVATE EQUITY COULD BE THE BEST THING OR THE WORST THING FOR YOUTH SPORTS. THEY WILL BE THE WORST IF THEY COME IN AND SAY OK, LET'S DO WHAT WE USUALLY DO WITH INDUSTRIES AND TRY AND CUT COSTS AND RING AS MUCH MONEY OUT OF THE SPACE AS POSSIBLE. THEY WILL BE TRYING TO PULL MORE AND MORE MONEY OUT OF A SMALLER AND SMALLER GROUP OF PARENTS WHO CAN AFFORD THE EXPERIENCE. IT WILL BE

A GOOD THING IF THEY APPLY PROFESSIONAL MANAGEMENT AND LYFT THE STANDARDS WITH WHICH COACHES ARE TRAINED, AGE-APPROPRIATE PLAY, ETC. I'M INTERESTED TO SEE IF THEY HAVE THE INTELLIGENCE, IMAGINATION AND PATIENCE TO EXPAND THE NUMBER OF KIDS EXPERIENCING SPORT IN THIS COUNTRY AND BUILDING BUSINESS MODELS OFF OF THAT. ROMAINE: GREAT STUFF. FASCINATING CASE STUDY FOR A LOT OF US WITH KIDS OF A CERTAIN AGE. TOM FERRY. I DON'T KNOW HOW I FEEL. I KNOW IT'S NOT LIKE WHEN WE WERE KIDS. IT'S BIG BUSINESS. PRIVATE EQUITY KIND OF FEELS I DON'T KNOW. SCARLET: THERE ARE THINGS THEY

COULD IMPROVE UPON. THERE ARE A LOT OF EFFICIENCIES. A LOT OF YOUTH SPORTS LEAGUES ARE NOT TECHNOLOGICALLY ADVANCED. SENDING OUT SCHEDULES IS A NIGHTMARE. MAYBE LITTLE THINGS LIKE THAT. ROMAINE: THEY MAKE US GO ON THESE APPLICATIONS TO GET STUFF. IT IS LIKE A MYSPACE PLATFORM 20 YEARS AGO. SCARLET: WE HAVE ALL FELT THE PAIN. ROMAINE: COMING UP, WE WILL TALK TECH AND INTEL. THE CEO OVER THERE LOOKING AT ALTERNATIVES, WHICH COULD MEAN A SEPARATION OF THE FOUNDRY BUSINESS. THIS IS BLOOMBERG. ♪ ROMAINE: INTEL HAVING ITS BEST DAY SINCE OCTOBER LAST YEAR ON THE BACK OF

A BLOOMBERG REPORT THAT SAID THE CEO WAS LOOKING AT OPTIONS TO CREATE VALUE FOR THE COMPANY. WHAT DO THEY HAVE PLANNED? IAN: THIS IS VERY EARLY DAYS. THE COMPANY WILL DISCUSS A NUMBER OF OPTIONS THAT ARE A DEPARTURE FROM CURRENT POLICY WHICH MAY INCLUDE A SEPARATION FROM PRODUCTS AND MANUFACTURING AND IT MAY SCALE BACK EXPENSIVE PLANS IN TERMS OF BUILDING NEW FACTORIES. ROMAINE: THE CHATTER THE LAST COUPLE YEARS HAS BEEN THE MONEY INTEL HAS GOTTEN FROM THE GOVERNMENT OR COMMITTED TO FROM THE GOVERNMENT. THE IDEA THAT INTEL WOULD BE A FOCAL POINT OF THAT. THAT

THE FOUNDRY BUSINESS IS SPUN OFF, DOES THAT ALTER PLANS? IAN: IT DOES. ANYONE WOULD HAVE HEARD INTEL SAY THE MAGIC WORDS. WE WILL BUILD ACCORDING TO DEMAND. WHICH IS A TRADITIONAL WAY YOU DO THINGS IN THE CHIP INDUSTRY. YOU BUILD THE SHELL AND YOU ONLY PUT THE EXPENSIVE EQUIPMENT IN WHEN YOU CAN ACTUALLY HAVE IT WORKING, BECAUSE IT IS SO EXPENSIVE. THE GOVERNMENT WILL NOT GIVE INTEL ANY MONEY UNTIL IT DOES WHAT IT SAID IT WILL DO. SCARLET: IN YOUR DAYS OF COVERING -- ROMAINE: ARE YOU CALLING HIM OLD? IAN: I AM OLD. SCARLET: YOU'VE

COVERED THEM, THE BIG CHIPMAKERS OF THEIR RESPECTIVE COUNTRIES IN THE WORLD. WE'VE SEEN INTEL FALL BEHIND. WHAT WAS THE THING INTEL DIDN'T DO TO KEEP UP? IAN: PEOPLE ARE TALKING ABOUT GELSINGER'S FUTURE HERE. HE INHERITED A VERY DIFFICULT SITUATION. PROBLEMS NOW ARE A RESULT OF PREVIOUS DECISIONS, THE CHOICES THEY WERE MAKING WITH REGARDS TO EMPHASIZING PRODUCTS. ALL OF THAT HAS ADDED UP TO A SITUATION WHERE WE NEED MONEY TO REVITALIZE THE COMPANY'S TECHNOLOGY BUT WE HAVE LESS MONEY BECAUSE THE PRODUCTS WE ARE SELLING NOW AREN'T AS GOOD AS THEY SHOULD BE. SCARLET: A MOMENT OF

TRUTH. WHAT IS YOUR CONFIDENCE PAT GELSINGER WILL BE AROUND TO SEE THROUGH THE DECISION? IAN: THAT IS SOMETHING THE BOARD WILL HAVE TO DECIDE. BROADLY SPEAKING, PEOPLE BELIEVE HE CAME UP WITH THE RIGHT PLAN. HE'S JUST BEEN UNLUCKY AND A LOT OF REGARDS. ALSO THE TIMING OF EVERYTHING, PEOPLE WANT RETURNS. THEY WANT PROGRESS MORE QUICKLY THAN WE HAVE SEEN. AT THE MOMENT THERE IS A SENSE THINGS ARE GETTING WORSE. IT'S A DIFFICULT SITUATION TO BE IN AS A CEO, WHETHER IT IS YOUR FAULT OR NOT. ROMAINE: THIS YEAR WE HAVE SEEN ACTIVIST INVESTORS COME OUT

THE WOODWORK FOR COMPANIES. A COUPLE HAVE KICKED THE TIRES ON INTEL. DOES PAT GELSINGER NEED TO PREPARE HIMSELF FOR MORE? IAN: THE TYPICAL PLAYBOOK IS SLASH AND BURN. YOU SEE AN UNDERVALUED ASSET AND YOU FORCE THE MANAGEMENT TEAM TO CREATE VALUE. THERE ARE COST CUTS AND EVERYTHING ELSE. THAT'S NOT THE PROBLEM WITH INTEL. THE PROBLEM IS IT NEEDS MORE MONEY, MORE INVESTMENT. LOOK AT THE SHARE PRICE. ARE THEY GOING TO BE THERE AND GIVE THE MONEY THEY NEED? SCARLET: CHAIRS UP 8.5% TODAY BUT FOR THE YEAR, DOWN 56%. THANK YOU SO MUCH. ROMAINE: 56 YEARS

OLD TOO. SYMBIOSIS. THIS IS RIGHT FOR ACTIVIST STUFF. A LOT OF QUESTIONS HERE ABOUT WHAT NEEDS TO BE DONE. SCARLET: WE ARE COUNTING YOU DOWN TO THE CLOSING BELLS WITH MARK NEWTON. WE WILL GET HIS TAKE ON WHETHER TECH NEEDS TO LEAD THIS MARKET HIGHER. ♪ ROMAINE: WELCOME BACK. BREAKING NEWS ON TESLA. THE EV MAKER IS PREPARED TO UNVEIL ITS ROBOTAXI. ELON MUSK SETTING UP AN EVENT FOR OCTOBER. WHAT DO WE KNOW ABOUT THIS? >> NOT A LOT. THE EVENT WAS POSTPONED FROM AUGUST TO OCTOBER. WE WERE TRYING TO FIGURE OUT WHERE. IT'S GOING TO

BE AT THE WARNER BROS. STUDIO LOT IN BURBANK. THERE'S A LOT OF REASONS I CAN THINK OF. THAT'S THE BIG NEWS. SCARLET: TESLA MOVED HEADQUARTERS TO AUSTIN BECAUSE ELON MUSK SAYS IT IS BETTER FOR BUSINESS. HE STILL DOES HIS BIG UNVEILS IN CALIFORNIA. >> TESLA'S DESIGN STUDIO HAS ALWAYS REMAINED IN HAWTHORNE, SOUTHERN CALIFORNIA. AUTOMOTIVE HISTORY IS VERY MUCH A PART OF CALIFORNIA HISTORY. A LOT OF THE DESIGNERS AT TESLA ARE STILL IN CALIFORNIA. L.A. IS WHERE YOU HAVE A PRODUCTION VALUE PEOPLE, A LOT OF BIG EVENTS. IT MAKES SENSE FOR THIS ROBOTAXI WHICH IS ALL

ABOUT THE FUTURE TO HAPPEN HERE. ROMAINE: HE HAS TAKEN THE STAGE BEFORE WITH SOME OF THESE PROTOTYPES. WE REMEMBER THE ROBOT THAT WAS NOT ACTUALLY A ROBOT. HOW REAL WILL THIS BE? WHEN YOU THINK THAT THING WILL BE ON THE ROAD? >> IT'S GOING TO BE QUITE A WHILE. THE WARNER BROS. LOT IS PRIVATE. THIS IS NOT A PUBLIC ROAD. WHATEVER THEY ARE UNVEILING, THIS DEMONSTRATION IS HAPPENING ON PRIVATE LAND. THEY DON'T NEED A PERMIT BECAUSE THEY ARE NOT TESTING ON A PUBLIC ROAD. THEY WILL BE A WHILE BEFORE WE SEE REGULATORY APPROVAL. ROMAINE: DANA

ON TESLA, THERE IS SOME OTHER BREAKING NEWS INVOLVING ELON MUSK AND X. THAT SERVICE HAS BEEN SUSPENDED IN BRAZIL. THERE'S A LONG-RUNNING DISPUTE THEREBETWEEN ELON MUSK AND BRAZILIAN AUTHORITIES. TESLA SHARES RIGHT NOW HITTING SESSION HIGHS. STOCKS ACROSS THE BOARD HITTING SESSION EYES. SCARLET: THE S&P UP .9%. IT'S ACROSS THE BOARD HIGHER. A LOT OF GREEN WITH THE NASDAQ OUTPERFORMING BY MORE THAN 1%. TREASURIES LOWER. THE 10 YEAR MOVING UP FIVE BASIS POINTS. ROMAINE: YOU ARE SEEING VOLUME PICK UP. SOME OF THIS IS THE MONTH CLOSING TRADES. SCARLET: LET'S TALK ABOUT WHERE THINGS STAND AT THE

END OF THIS WEEK AND MONTH. MARK NEWTON, INTERESTING WE GET A DAY IN WHICH THERE IS NOT A LOT OF TRADING ACTIVITY AND YOU HAVE MARKETS MOVING TO THEIR HIGHS. WHAT IS THE MOOD OF THE MARKET INTO A LONG WEEKEND IN WHICH THINGS SHOULD START TO PICK UP IN TERMS OF HEADLINES, ANY KIND OF CORPORATE ANNOUNCEMENTS IN THE FOLLOWING DAYS? MARK: IT'S A WEEK THAT IS REMINISCENT OF A PREHOLIDAY WEEK. THE MARKETS HAVE BEEN RANGE BOUND THE ENTIRE WEEK, BOTH BULLS AND BEARS ARE DISAPPOINTED. WE HAVE FIVE SECTORS SET TO MAKE NEW ALL-TIME MONTHLY HIGH

CLOSES AS OF TODAY. THAT'S VERY IMPRESSIVE. INDUSTRIALS, HEALTH CARE, FINANCIALS, UTILITIES AND TECH. TECH WAS HIT HARD DURING THE EARLY PART OF THE MONTH BUT HAS RALLIED BACK. THAT'S ENCOURAGING. WE HAVE SLOWLY GOTTEN MORE OPTIMISTIC. THAT WILL BE SOMETHING TO WATCH AS WE GET INTO THE SEASONALLY BEARISH MONTH OF SEPTEMBER. DURING ELECTION YEARS, SEPTEMBER IS NOT AS BAD AS ADVERTISED. TYPICALLY IT IS BETTER THAN OCTOBER. I DON'T THINK IT IS A TIME TO SELL AND GO AWAY LIKE YOU DO IN MAY. WE NEED TO SEE EVIDENCE OF THESE TRENDS STARTING TO BREAK DOWN BEFORE INVESTORS

SHOULD GET MORE CAUTIOUS. SCARLET: YOU MENTIONED TECHNOLOGY. IT IS NOT YET RECOVERED BEFORE THE AUGUST MELTDOWN. HOW CRITICAL IS THAT FOR THE S&P MARKET CAP WAITED TO RECLAIM ITS RECORD HIGH? MARK: THE EQUAL WEIGHTED HAS ALREADY MOVED TO ALL-TIME HIGHS. IT'S IMPORTANT FOR TECHNOLOGY TO PERFORM WELL. HOWEVER, IN THE LAST MONTH IT HAS LAGGED. THESE OTHER SECTORS HAVE RALLIED TO PICK UP THE SLACK. IF THOSE SECTORS DO NOT DO THAT, THE MARKET WOULD HAVE SOME CONSOLIDATION OF SOME SORT. 30% OF THE S&P, TECH IS STILL THE AREA THAT IS MOST INVESTORS ARE FOCUSING ON. MANY

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

PESSIMISTIC ON ENERGY. FROM A DEMOCRATIC AND REPUBLICAN SIDE, THERE'S PRESSURE TO KEEP INFLATION LOWER AND DIRECT OUTPUT, POTENTIALLY WE COULD HAVE MORE KICKING IN AND THE NEXT MONTH WITH OPEC+. THE TRENDS HAVE STARTED TO TURN MORE NEGATIVE FOR ENERGY. IT'S AN UNDERPERFORMER, NOT REALLY AN UNDERWEIGHT IN MY VIEW. THAT WOULD BE AN AREA I WOULD LIKELY AVOID. PLENTY OF GREAT SECTORS. THAT IS ONE -- THE ECONOMY HAS STARTED TO WEAKEN SLIGHTLY ON THE FRINGES, THAT WOULD LIKELY BE NEGATIVE FOR COMMODITIES. THE DEMAND PICTURE, PARTICULARLY CHINA, VERY WELL MIGHT NOT MATERIALIZE IN A STRONG A FASHION

AND THAT COULD PUT WEIGHT AS WELL. ROMAINE: IS THERE A SENSE THAT WHEN WE TALK ABOUT WITH THE MARKET IS LOOKING FOR, WHETHER THE MACRO DATA OR MOVES BY THE FED, SUSTAINED CORPORATE FUNDAMENTALS, IS THERE A SENSE EVERYONE IS ON THE SAME PAGE OR HAVE WE REACHED A POINT IN THIS RALLY OR CYCLE WHERE EVERYTHING IS SPLINTERED AND IDIOSYNCRATIC? MARK: GREAT QUESTION. RECENTLY INVESTORS HAVE BECOME MORE CONFIDENT WITH WHAT THE FED IS DOING IN ITS RECENT PIVOT. THAT'S CONSTRUCTIVE. IT'S ALSO ASSIGNED NOT TO GET TOO COMPLACENT. WE WILL HAVE TO WAIT AND SEE. THERE ARE

STILL A LOT OF MOVING PIECES. RECENTLY WE HAVE SEEN EVIDENCE OF THE DOLLAR TRYING TO BOTTOM OUT AND TREASURY YIELDS, THOSE HAVE BEEN IMPORTANT REASONS WHY STOCKS HAVE BEEN ABLE TO RALLY. BAD NEWS HAS BEEN GOOD NEWS FOR THE MARKET. IF THE ECONOMY CONTINUES TO FALTER, CONTINUED BAD NEWS IN THE ECONOMY WILL NOT ALWAYS BE GOOD NEWS FOR THE STOCK MARKET. WE COULD HAVE A TEMPORARY REPRIEVE WHERE RATES MIGHT BOUNCE. THE DOLLAR BOUNCE IS A LITTLE. THE TRENDS ARE BEARISH FOR BOTH NEXT SPRING. THAT'S GOING TO BE A SOURCE OF POSITIVITY FOR RISK ASSETS. ROMAINE:

APPRECIATE YOU TAKING THE TIME, HEADING INTO A HOLIDAY WEEKEND. BE WELL AND WE WILL TALK IN SEPTEMBER. MARK NEWTON, LESS THAN ONE MINUTE TO GO HERE. BOND PRICES HITTING SESSION LOWS AS VOLUME PICKS UP. SCARLET: INTERESTING ON A DAY LIKE TODAY. SEPTEMBER HAS BEEN THE BIGGEST PERCENTAGE LOWER. ROMAINE: THE STOCK MARKET ALMANAC. IT DOESN'T BODE WELL. THERE WERE SOME MONTHS THEY SAID IT WAS GOING TO BE GOOD AND IT TURNED OUT TO BE BAD. INTO THE HOLIDAY WEEKEND, THAT SCREEN LOOKS GO. THE DOW JONES INDUSTRIAL AVERAGE HIGHER ON THE DAY. HIGHER BY ROUGHLY ZERO POINT

5%. THE S&P FIRE BY 1% ON THE DAY. THE NASDAQ COMPOSITE UP ABOUT 1.2% ON THE DAY. SHOULD POINT OUT ALL THREE OF THOSE NAMES NOW POSTING GAINS FOR THE MONTH OF AUGUST. LOOK AT THE RUSSELL 2000, HIGHER ON THE DAY BY ABOUT 0.7%. WE SHOULD POINT OUT THE FOR THE WEEK AND FOR THE MONTH, IT IS IN THE RED. SCARLET: LIKE YOU SAID, THE PICTURE REALLY CHANGED IN THE LAST 15 MINUTES OR SO. UNTIL THEN, WE HAD SEEN A STEADY RATCHET HIGHER IN THE MAJOR INDEXES. THE LAST 15 MINUTES, IT REALLY TOOK OFF. WHEN

YOU LOOK AT SECTOR PERFORMANCES, IT IS A SPINACH PIE. I'M GOING TO CHANGE FROM PESTO PIE TO SPINACH PIE. ROMAINE: LIKES PINNACLE PUT A. -- LIKE SPANIKOPITA. SCARLET: EXCELLENT. ROMAINE: THAT'S WHY I AM HERE. SCARLET: FOR THE MOST PART, YOU HAVE GAINS ALL AROUND. YOU LOOK AT THE BEST PERFORMERS IN THE S&P 500, IT IS CONSUMER DISCRETIONARY, UP 1.9% ON THE DAY. ROMAINE: AS WE CONTINUE TO BREAK DOWN EVERYTHING THAT HAPPENED IN THE MARKETS ON THE DAY, ON THE WEEK, AND IN THE MONTH, BUT SPRING IN A ME TO LEAD OUR EQUITIES COVERAGE HERE IN

THE U.S.. -- LET'S BRING IN AMY TO LEAD OUR EQUITIES COVERAGE HERE IN THE U.S. AMY: INTEL, WE HAVE BEEN TALKING ABOUT THE WHOLE DAY. OUR COLLEAGUES IN SAN FRANCISCO HAVE BEEN REALLY GOOD BREAKING THE NEWS ABOUT ITS PLAN TO ACTUALLY SPLIT OFF ITS FOUNDRY BUSINESS, WHICH HOPEFULLY WILL TURN AROUND THE BUSINESS. IT HAS BEEN PERFORMING REALLY BADLY. FOR THE YEAR TO DATE, IT HAS BEEN DOWN 57%. TODAY, IT IS UP ALMOST 10% NOW. SCARLET: I KNOW YOU COVER A LOT OF M&A. DO YOU COVER WHETHER INTEL MIGHT BE A TARGET OR WHETHER PEOPLE MIGHT

WANT TO BUY PARTS OF IT? AMY: FOR A BIG CONGLOMERATE, ESPECIALLY MENDE BANKERS -- WE WILL TALK ABOUT GOLDMAN LATER ON -- PEOPLE ARE ALWAYS TRAINED TO COME UP WITH DEALS TO UNLOCK THAT. WE HAVE SEEN THIS NOT JUST IN CHIPMAKERS. J&J SPUN OFF. THAT HAS BEEN DOING WELL. THERE ARE VALUES TO BE UNLOCKED FROM JUST SPLITTING OFF SOME PART OF THE BUSINESS. I'M LOOKING ALSO AT LULULEMON. THEY HAVE THE YOGA PANTS. IT GAINED EARLIER ON, BUT IT GAVE UP SOME OF THE GAINS. WITH ITS SALES AND PROFIT OUTLOOK BEING LOWERED, PEOPLE ARE STILL SAYING

IT IS ACHIEVABLE. ROMAINE: WHAT WAS THE ISSUE HERE? WE GOT THE EARNINGS REPORT. WE GOT SOME CONCERNS HERE ABOUT MARGINS, ABOUT SALES GROWTH. IT SEEMED LIKE IT WAS A TOUGH STOCK. IT DID NOT MATTER WHAT THEY MADE. THEY ALWAYS HAD TO GO BACK. BUT PEOPLE KEPT BUYING THE STOCK. AMY: THAT IS TRUE. THE BRANDING IS VERY STRONG, ESPECIALLY INTERNATIONAL. OVERSEAS BUSINESS HAS GAINED WHILE THE U.S. BUSINESS HAS BEEN FLAT. THAT IS ALSO THE REASON WHY PEOPLE ARE LIKE MAYBE IT IS NOT SO BAD. SCARLET: ESPECIALLY IN A TIME WHERE WE ARE NOT EVEN SURE WHETHER

WE ARE HEADING INTO RECESSION OR NOT. AMY: PEOPLE ARE JUST BEING CONSERVATIVE AT THE MOMENT. SCARLET: THEY HAVE NOT CAUGHT ONTO THE BAGGY PANTS LOOK. ROMAINE: IS THAT BACK? SCARLET: YOU HAVE A TEENAGER. HAVE YOU SEEN WHAT HIS FRIENDS ARE WEARING? ROMAINE: I HAVE SEEN WHAT HE IS WEARING AND IT HURTS MY SOUL. AMY: EVERYTHING IS BACK TO THE 90'S. THAT IS A REASON ABERCROMBIE IS BACK IN THE NEWS AGAIN. ROMAINE: DID YOU SAVE ALL YOUR ABERCROMBIE & FITCH? YOU WOULD HAVE BEEN -- SO THIS IS THE REAL TURNAROUND STORY IN RETAIL. AMY: HOPEFULLY. FASHIONS

COME AND GO BUT IT DOES SEEM LIKE IT IS HERE TO STAY FOR A LITTLE BIT. WITH ALL THE MINIMALISM AND ALL THAT, PEOPLE ARE REALLY GOING BACK TO THE CLASSIC LOOKS OF THE 1990'S. JUST SLEEK. SCARLET: I JUST LISTEN TO 90'S MUSIC. I DON'T WEAR THE CLOTHES. ROMAINE: YOU DON'T HAVE TO PUT ON THE CLOTHES TO LISTEN TO IT. SCARLET: THAT WOULD BE A BRIDGE TOO FAR. ROMAINE: I'VE BEEN DOING IT ALL WRONG. I PUT ON MY SWEATSUIT AND THE KANGOL. AMY: ESPECIALLY ON A FRIDAY BEFORE THE LABOR DAY HOLIDAY. ROMAINE: I WORE THE

TIE JUST IN CASE. SCARLET: LET'S SEE IF THE DECLINERS ARE ACTUALLY DECLINING AT THE END OF THE TRADING DAY. HE IS TAKING A BREAK. HE IS RESTING, AS HE SHOULD AFTER A LONG BREAK. LET'S LOOK AT SUPERMICRO. IT IS DOWN ON THE DAY, RESUMING ITS DECLINE. IT CLOSES AUGUST AS THE S&P 500 'S WORST PERFORMER OF THE MONTH. WHAT HAS GONE RIGHT FOR THIS COMPANY? ACCOUNTING PROBLEMS BY A SHORT SELLER -- ALLEGED BY A SHORT SELLER. A DELAYED FILING BLAMED ON NEEDING MORE TIME TO ASSESS INTERNAL CONTROLS. ROMAINE: FOR A SHORT TIME, IT WAS KIND

OF THE DARLING AI STOCK. NOT QUITE NVIDIA, BUT -- AMY: IT ACTUALLY TOOK MONEY THROUGH THE CONVERTIBLE BOND MARKET AS WELL. AS WE HAVE SEEN OVER THE PAST TWO WEEKS, THE AI STORY IS KIND OF ON SHAKY GROUND NOW. SCARLET: ABSOLUTELY. LET'S LOOK AT ELASTIC. THE STOCK OFF BY 27%. IT IS AN ENTERPRISE SOFTWARE COMPANY. GOT A DOWNGRADE FROM BANK OF AMERICA. I WAS LOOKING AT IT. IT IS INCORPORATED IN THE NETHERLANDS BUT BASED IN THE U.S. ROMAINE: DEFTLY UNDERPERFORMED THESE FEW MONTHS. WHEN YOU LOOK AT THE TEXT INDEXES, THAT HAS BEEN A BIG PART

OF THE DRAG. AMY: AI IS HURTING SOME OF THE SOFTWARE COMPANIES IF THEY ARE NOT KEEPING UP WITH THE AI STORY. THEY MIGHT ACTUALLY LOSE OUT. SCARLET: GONE ARE THE DAYS WHEN YOU COULD JUST THROW THE WORDS AI INTO A PRESS RELEASE AND GET THAT POP. ALNY IS ANOTHER BIG DECLINER. ROMAINE: THIS IS CRAZY. SCARLET: IT SHOWED A TREATMENT FOR A PERFORM -- FOR A FORM OF AGGRESSIVE AND INCREASINGLY FATAL HEART DISEASE. IT DISAPPOINTED AGGRESSORS. ROMAINE: THE PREVIOUS DATA POINT WAS AN ERROR, SO THEY HAD TO CORRECT THAT. IT CUT A LOT OF INVESTORS OFF

GUARD. I DO WANT TO TURN REAL QUICKLY TO THE YIELD SPACE. THERE IS A LOT OF ACTIVITY AND THIS IS GOING TO BE A BIG FACTOR HEADING INTO SEPTEMBER WITH EVERYONE ANTICIPATING RATE CUTS. WE DID SEE MODEST INCREASES IN YIELDS ON THE DAY. IT IS AROUND 3.9 ON THE 10 YEAR YIELD. YOU HAD SOME GOOD RETURNS. I WONDER THE CORRELATIONS BETWEEN WHAT WE ARE SEEING IN YIELDS AND WHAT WE COULD SEE IN EQUITIES ONCE THE FED DOES MAKE GOOD ON WHAT EVERYONE THINKS THEY ARE GOING TO DO. AMY: IT BOILS DOWN TO DATA RIGHT NOW.

WE ARE DEFINITELY GOING TO HAVE ONE CUT IN SEPTEMBER. HOW AGGRESSIVE IT IS GOING TO BE REALLY DEPENDS ON THE DATA. IF IT IS GOING TO BE VERY AGGRESSIVE, IT PUTS US INTO THE RECESSION MERGE, WHICH IS NOT A GOOD SPACE TO BE IN. SOMETIMES, TECHNICALLY, RATE CUTS ARE GOOD FOR EQUITIES. BUT IF IT GOES INTO RECESSION TERRITORY, IT IS GOING TO HURT A LOT OF BUSINESSES, AND THAT IS NOT A GOOD LOOK. SCARLET: ANYTHING THAT TAKES INVESTORS BY SURPRISE MAKES PEOPLE WONDER, WHAT DOES THE FED KNOW THAT WE DON'T YET? ROMAINE: WE SHOULD POINT

OUT THAT WE TALK ABOUT THE POTENTIAL FOR RECESSION. OBVIOUSLY, A LOT OF THAT TIES INTO CONSUMER SPENDING. THERE WAS A GREAT INTERVIEW WITH AN EXECUTIVE OVER AT MASTERCARD. THEY WANT TO GET RID OF BASICALLY THE CARD ITSELF. MORE BIOMETRIC STUFF. ARE YOU THE KIND OF PERSON WHO STILL SWIPES YOUR CARD? DO YOU USE YOUR PHONE? AMY: I USE THE PHONE AND THAT IS WHY IT DOES NOT -- I DON'T BRING MY WALLET. THAT IS ALSO THE COMPETITION. THE WHOLE FINANCIAL INDUSTRY IS GOING THROUGH A SHAKEUP. WITH ALL OF THE NEW TECHNOLOGY, WE DO NOT REALLY

NEED TO HAVE A CARD. THESE DAYS, THERE ARE TECHNOLOGIES WHERE YOU CAN SWIPE ON THE STREET IF YOU HAVE YOUR CARD WITH YOU. THAT IS EASIER FOR YOU TO SPEND MONEY. SCARLET: WHATEVER TO REDUCE FRICTION. AT SOME POINT, SOMEONE WILL SCAN YOUR EYEBALL AND YOU CAN PURCHASE SOMETHING. ROMAINE: SOME PHONES JUST DO YOUR FINGERPRINT OR YOUR PALM. SCARLET: WHAT DID YOU BUY WHEN YOU WERE THERE? ROMAINE: I USE A REGULAR CREDIT CARD. WHAT? ANYWAY, THANK YOU FOR JOINING US. AMY LEADS EQUITIES COVERAGE AT BLOOMBERG. HELPING US BREAK DOWN THE MARKET MOVES ON THE DAY. SCARLET:

SHE GAVE US THREE GAINERS AND IT HELPED THAT THE MARKET RALLIED INTO THE CLOSE. JUST RELIEVED THAT THE DECLINERS I PICKED OUT STAYED LOWER. ROMAINE: AMY IS GOING TO HIT THE ROAD. A LOT OF PEOPLE ARE ALREADY TRAVELING FOR THE EXTENDED THREE-DAY WEEKEND HERE IN THE UNITED STATES. WE ARE GOING TO CHECK IN WITH A TRAVEL INDUSTRY EDITOR. SHE IS GOING TO UPDATE US HERE ON JUST HOW MUCH TRAFFIC WE ARE GOING TO SEE ON THE ROADS LATER TONIGHT. THIS IS "THE CLOSE." SCARLET: WELCOME BACK TO THE CLOSE. I'M SCARLET FU. ROMAINE: I'M ROMAINE BOSTICK.

WE ARE HERE ALTHOUGH THE LABOR DAY HOLIDAY HAS KICKED OFF. SAW SOME PRETTY SIZABLE GAINS ON THE DAY. THE CHART BEHIND ME -- THOSE ARE YOUR NUMBERS. YOU LOOK AT THE S&P 500 THAT WAS UP MORE THAN 2%. THAT IS THE SECOND STRAIGHT MONTH WHERE WE HAVE SEEN A PERFORMANCE OF THAT BROADER EQUAL WEIGHT INDEX RELATIVE TO THE CAP WEIGHTED INDEX. IT WAS A MODEST OUTPERFORMANCE, JUST A FRACTION OF A PERCENTAGE POINT. AT THAT IS WHAT PEOPLE WERE ASKING ABOUT EARLIER THIS YEAR. WE SHOULD POINT OUT THE BEST PERFORMING SECTOR THIS MONTH WAS NOT TECH.

IT WAS CONSUMER STAPLES, REAL ESTATE, FINANCIALS, UTILITIES. THAT HAS BEEN THE TREND FOR THE PAST TWO MONTHS. TECH IS LOWER ON THE LEADERBOARD AND THAT MIGHT BE A GOOD THING. IF YOU ARE A BOND INVESTOR, YOU MADE MONEY ON THE MONTH. IF YOU ARE IN THE COMMODITY SPACE, STILL SOME CONCERNS. CRUDE OIL DOWN ON THE WEEK, THE DAY, AND THE MONTH. SCARLET: I WANT TO ZOOM IN ON THE TECH SECTOR. SUPER MICRO COMPUTER WAS THE WORST PERFORMER IN THE S&P 500 IN THE MONTH OF AUGUST. TODAY, IT CLOSED DOWN. THERE ARE CATALYSTS DRIVING THIS COMPANY

LOWER. ALLEGATIONS OF ACCOUNTING PROBLEMS. THERE IS ALSO DISAPPOINTING EARNINGS REPORT. ANDY DELAYED 10K FILING WHICH MICRO BLAMED ON NEEDING MORE TIME TO ADDRESS INTERNAL CONTROLS. ALL OF THAT ADDS TO A BIG DROP FOR SUPERMICRO. INTEL HAS HAD A ROUGH GO OF IT OVER THE LAST COUPLE OF MONTHS. ON THE DAY, IT DID CLOSE UP 9.5 PERCENT AFTER BLOOMBERG NEWS REPORTED THAT THE U.S. CHIPMAKER IS DISCUSSING VARIOUS SCENARIOS INCLUDING A SPLIT OF ITS BUSINESS BETWEEN MANUFACTURING AND PRODUCT DESIGN. THE HOPE IS IT CAN GET ITSELF BACK ON TRACK AND RESTORE SOME OF ITS FORMER GLORY. MARVELL

TECHNOLOGY GAINING AFTER SECOND-QUARTER RESULTS BEAT ESTIMATES AND ITS THIRD-QUARTER OUTLOOK FOR REVENUE LOOKED PRETTY STRONG. THERE IS HOPE THAT PERHAPS IT'S AI RELATED APPLICATIONS WILL FUEL GROWTH. WHEN YOU BRING IT TOGETHER, OUR TOP STORY ON THIS DAY IS A RECORD-BREAKING DAY, A RECORD-BREAKING SUMMER, AND IT COMES TO AIR TRAVEL. ACCORDING TO THE TSA, THE FRIDAY BEFORE THE LAST WEEKEND OF THE SUMMER, TODAY, WILL BE THE BUSIEST, WITH MORE THAN 17 MILLION PEOPLE WALKING THROUGH SECURITY CHECKPOINTS. SPARE A THOUGHT FOR THOSE CONDUCTING SCREENINGS AND SERVING PASSENGERS ON FLIGHTS. THAT BEHAVIOR IS GETTING WORSE. WE WILL GET

INTO ALL OF THAT AS WELL AS WORKAROUNDS TRAVEL PROS ARE RECOMMENDING, LATER THIS HOUR. ROMAINE: WE WANT TO GET BACK TO THE MARKETS. THEY FINISHED THE MONTH OF AUGUST. WHERE THEY POTENTIALLY GO IN THE MONTH OF SEPTEMBER. IT IS OUR FACT OF FRIDAY. WE ARE JOINED BY CHRIS. WE TALKED ABOUT STOCKS AND BONDS AND THE TOTAL RETURN. WE ARE HEADING INTO A MONTH WHERE EVERYONE IS EXPECTING A RATE EASING CYCLE TO START. IT RAISES QUESTIONS ABOUT THE CORRELATIONS BETWEEN STOCKS AND BONDS AND WHAT WE SHOULD BE EXPECTING. CHRIS: THE CORRELATION BETWEEN STOCKS AND BONDS IS

AT SOME OF THE HIGHEST LEVELS WE HAVE SEEN IN 50 YEARS. TALKING ABOUT THE PRICE OF STOCKS AND THE PRICE OF BONDS. IF YOU LOOK AT THAT ON A ROLLING BASIS, IT IS A 98 PERCENTILE RATING OF CORRELATION OVER THE LAST 15 YEARS. ONE COINCIDENT THING WE HAVE FOUND IS SIMPLY INFLATION. WHEN INFLATION IS HIGH, YOU SEE THAT CORRELATION TO BE HIGH. THE AVERAGE INFLATION FOR THE LAST 50 YEARS HAS BEEN ABOUT 3%. WHEN IT IS BELOW 3%, IT HAS BEEN -0.2. WE JUST DROPPED BELOW THAT 3% LEVEL AND WE ARE AT 0.8 RIGHT NOW.

WE THINK THAT IS GOING TO COME DOWN PRETTY DRAMATICALLY OVER THE NEXT COUPLE OF MONTHS, WHICH IS GOOD NEWS FOR DIVERSIFIED INVESTORS. IT DOES INCREASE THE RISK OF YOUR 60/40 PORTFOLIO. SCARLET: THAT IS THE CROSS AS THAT RELATIONSHIP. LET'S DEAL IT DASHED INTO EQUITIES. FUND MANAGERS ARE SEEKING QUALITY. WHAT CAN YOU TELL US ABOUT THE FUNDAMENTAL IN THE U.S.? CHRIS: PEOPLE HAVE THEIR OWN DEFINITIONS. WE TRY TO KEEP IT SIMPLE. WE SAY HIGH-QUALITY QUALITY STOCKS WITH HIGH PROFITABILITY -- EQUITY RETURN AND LOW LEVERAGE. WHEN YOU LOOK AT THE MEDIAN PRICE TO SALES OR MEDIAN VALUATIONS,

IT IS ABOUT 4.5 TIMES SALES RIGHT NOW. HIGH QUALITY BEING ROUGHLY THREE TIMES HIGHER IN VALUATION THAN LOW QUALITY IS PRETTY EXTREME. AN 87 PERCENTILE RATING GOING BACK TO 2002. IT IS VERY EXPENSIVE. THE PROFITABILITY IS ABOUT 35%. THAT 30% -- THAT 30 POINT SPREAD IS PRETTY HIGH. THAT COULD JUSTIFY SOME OF THE VERY EXPENSIVE VALUATIONS. ROMAINE: WHAT DOES THE PERFORMANCE LOOK LIKE SO FAR IN 2024? CHRIS: IT HAS BEEN GOOD. TYPICALLY, INVESTORS WILL LOOK AT LONG SHORT BECAUSE THAT ISOLATES THE EFFECT. HALF PROFITABILITY, HALF LOW LEVERAGE IS SOMETHING LIKE 8.5%. WHEN YOU LOOK UNDER

THE HOOD, IT IS THE PROFITABILITY COMPONENT THAT IS DRIVING THAT. THINGS LIKE RETURN ON EQUITY, INVESTOR CAPITAL -- OURS FALLS TOWARD THE MIDDLE OF THAT. IT IS REALLY THAT COMPONENT THAT IS DRIVING THE PERFORMANCE. SCARLET: CHRIS KANE, APPRECIATE YOU GIVING US THE WRAP UP ON FUNDAMENTALS AND THE DIFFERENT FACTORS AND PERFORMANCES. WE WANT TO SEGMENT OUT -- SEGUE TO THE FIXED INCOME SPACE. A NEW REPORT SHOWS RETAIL INVESTORS WHO HOLD THE LARGEST SHARE OF MUNICIPAL BONDS PAY ROUGHLY TWICE THE SPREAD THAT MAJOR INSTITUTIONAL INVESTORS PAY WHEN TRADING RECENTLY ISSUED DEBT. WHY IS THIS? WHY ARE

THEY PAYING DOUBLE WHAT INSTITUTIONAL INVESTORS PAY? >> THAT IS A GREAT QUESTION. I THINK DATA IN THE MINAS UP A MARKET IS HARD TO COME BY AND DIFFICULT TO PARSE THROUGH, SO THIS REPORT WAS INTERESTING TO US. I THINK THE SIMPLE EXPLANATION IS THAT WE DON'T KNOW WHO IS MAKING THESE TRADES, BUT THE RESEARCHERS WERE ABLE TO USE A PROXY. THEY ASSUME IT IS A RETAIL BUYER IF IT IS SMALLER. ANYTHING LARGE WAS A LARGE AND SITUATION BUYER LIKE A BANK OR SOMETHING. THE MOST LOGICAL EXPLANATION IS THAT THEY HAVE MORE PRICING POWER. WHEN YOU

ARE PLACING A LARGE ORDER, YOU HAVE A LITTLE MORE LEVERAGE TO DEMAND A MORE ATTRACTIVE YIELD. ROMAINE: IS THERE A SENSE THAT THIS COULD CHANGE AT ALL? WE HAVE SEEN MORE RETAIL PARTICIPATION IN THIS SPACE ANYWAY WE HAD NOT SEEN 10 OR 15 YEARS AGO. I KNOW THE GAP IS NOT GOING TO COMPLETELY NARROW. BUT IT HAS TO NARROW A BIT, DOESN'T IT? NIC: I THINK IT COULD. THERE WAS A LOT OF VARIETY, YEAR-OVER-YEAR. THIS IS A FIVE-YEAR AVERAGE. IT MAKES SENSE THAT IT WOULD BEGIN TO NARROW AS WE SEE MORE RETAIL BUYERS PARTICIPATING IN

THE MARKET. ALSO INTERESTING TO ME WAS JUST THIS IDEA THAT THEY ONLY MEASURED THE TRADES IN ONE WEEK AFTER THEY CAME TO THE SECONDARY MARKET. SO THEY WERE MEASURING THE SPREAD BETWEEN THE PRIMARY OFFERING AND THE VERY EARLY STAGES OF TRADING IN THE SECONDARY. THAT IS BECAUSE THE MUNI MARKET, COMPARED TO MANY OTHER FIXED INCOME MARKETS, IS VERY STALE. IT DOES NOT TRADE A LOT. USUALLY, THERE IS A FLURRY OF ACTIVITY RIGHT AFTER THE DEAL COMES TO MARKET. IN MANY CASES, IT JUST SITS IN SOMEONE'S PORTFOLIO FOR YEARS, IF NOT DECADES. IT IS INTERESTING TO

CHOOSE TO MEASURE. SCARLET: WHAT ARE PEOPLE IN THE INDUSTRY SAYING ABOUT THIS? IS THIS PROBLEMATIC? HOW PROBLEMATIC IS IT? NIC: I DON'T THINK IT IS NECESSARILY PROBLEMATIC. THE UNDERLINING -- UNDERLYING FINDINGS WERE NOT SURPRISING. THE SCALE WAS A BIT SURPRISING. IT TOOK A LOT OF INTENSE ANALYTICAL POWER TO UNDERSTAND HOW BIG THE DIFFERENCE WAS. THEY FOUND THAT ON AVERAGE SPREAD FOR A RETAIL BUYER WAS ABOUT $10. FOR AN INSTITUTIONAL BUYER, IT WAS ABOUT FOUR DOLLARS AND $.40 -- $4.40. RETAIL BUYERS MAKE UP SUCH A MASSIVE PART OF THE MUNICIPAL BOND MARKET. SCARLET: NIC COVERING COMMUNITIES

IN TODAY'S MUNI MOMENT. WE HEAR PEOPLE TALK ABOUT INVESTING IN MUNI BONDS. THE APPEAL IS BECAUSE IT IS TAX-FREE. ROMAINE: STEADY RETURNS THE LAST COUPLE OF YEARS. YOU ALWAYS TALK ABOUT SHORT-TERM CASH ACCOUNTS. YOU ARE GETTING THAT AND THEN SOME FOR SOME OF THESE MUNI DEALS. SCARLET: TOUGH TO CONVINCE PEOPLE TO GIVE THAT UP TO GO INTO OTHER CORNERS OF FIXED INCOME OR BACK INTO EQUITIES THAT IS NOT TECH. COMING UP, WE HAVE THE TOP THREE, WHERE WE FOCUS ON THE MOVERS AND SHAKERS AT THE CENTER OF THE DAYS BIG STORIES. SCARLET: IT IS TIME

FOR THE TOP THREE, WHERE WE NAME DROP THE PEOPLE DROPPING SOME OF THE MOST TALKED ABOUT STORIES. FIRST UP IS MORRISSEY. JUST ONE NAME NEEDED. 90'S BRITPOP BAND OASIS IS REUNITING. MORRISSEY HAS REVEALED THAT HIS FORMER MELANCHOLIC BAND THE SMITHS GOT AN OFFER TO TOUR, WHAT HE SAYS HE SAID YES TO THE OFFER WHILE JOHNNY MARK IGNORED IT. ROMAINE: I LOVE THIS STORY. OASIS HAS SOMETHING TO DO WITH IT. THIS HAD A LOT OF FLASHBACKS FOR ME. MY ROOMMATE IN COLLEGE USED TO LISTEN TO THIS MORRISSEY ALBUM AND KATE BUSH ALL DAY LONG FOR WEEKS

ON END UNTIL HE FOUND ANOTHER GIRLFRIEND. I LOVE YOU, BROTHER. ARE THEY GOING TO GET BACK TOGETHER OR NOT? SCARLET: NO. TOO MUCH PERSONAL ANIMOSITY. THE POLITICS ARE VERY DIFFERENT. ROMAINE: MORRISSEY HAS SOME INTERESTING COMMENTS. SCARLET: SUPPORTS BREXIT, AMONG OTHER THINGS. I GUESS HE IS HAPPY WHERE HE IS RIGHT NOW. MORRISSEY WOULD SAY -- MORRISSEY IS STILL TOURING. JOHNNY MARR DOES TOUR WITH NEW ORDER AS A SPECIAL GUEST. MORRISSEY WAS VERY KIND TO POINT THAT OUT. ROMAINE: I'M SURE THAT IS EXACTLY WHY HE DID IT. I'M KEEPING AN EYE ON SOMEONE ELSE. TRIP PLANNING --

TREB HEINING, I'VE NEVER HEARD OF HIM BEFORE TODAY. BUT WE SEE THE BALLOONS FALL DOWN AT THE SUPER BOWL OR AT DISNEY WORLD. THIS IS THE GUY BEHIND IT. 100,000 BALLOONS AT THE MOST RECENT REPUBLICAN NATIONAL CONVENTION IN MILWAUKEE. WE GOT A CHANCE TO GO BEHIND THE SCENES. HOW DO YOU GET THE BALLOONS INFLATED, UP IN THE AIR, SURE THEY DROP IN THE WAY THEY ARE SUPPOSED TO? THIS IS A HUGELY JUST TICKLE CHALLENGE AND THIS GUY, FRANKLY, IS A NATIONAL TREASURE. SCARLET: HE STARTED AS A BALLOON SALESMAN AT DISNEYLAND WHEN HE WAS 15 YEARS

OLD, SO HE HAS BEEN DOING THIS ON AWFULLY LONG TIME. HE STILL SUPPLIES BALLOONS TO DISNEY PARKS AROUND THE WORLD. ROMAINE: I'M SURE FOR HIM IT IS ACTUAL WORK, BUT FOR US LOOKING AT IT, WOULDN'T IT BE COOL TO BLOW UP BALLOONS ALL DAY? SCARLET: HE HAD A REALLY BUSY JULY AND AUGUST. ROMAINE: JUST FOR THE SUMMER? SCARLET: I WOULD LOVE THAT. ROMAINE: AT THE END OF THE CLOSE, ALL OF THE BALLOONS. GREEN ONES ON THE UPDATES. SCARLET: A NORWEGIAN PRINCESS WHO WAS FOURTH IN LINE TO THE THRONE IS SET TO MARRY AN AMERICAN SELF-DESCRIBED

SHOWMAN -- SHAMAN ON SATURDAY. TWO YEARS AGO, SHE SAID SHE WOULD NOT OFFICIALLY REPRESENT NORWAY. HER FIANCE SAYS THAT HE COMMUNICATE WITH A BROAD RANGE OF SPIRITS. ROMAINE: THIS GUY IS INTERESTING. HE IS A SIXTH GENERATION SHAMAN, TO BE CLEAR. I DON'T KNOW WHAT THE FIRST FIVE GENERATIONS WERE. THEY STARTED DATING AND WHILE AGO. I THINK THEY GOT ENGAGED BACK IN 2022. OF COURSE, THE ROYAL FAMILY IS IN A COMPLETE IS HE. -- TIZZY. GOOD LUCK TO THOSE KIDS. BIRTHDAY WISHES TO ONE OF THE GREATEST INVESTORS EVER. WARREN BUFFETT. AND BEFORE WE GO TO BREAK

-- WHAT WAS BUFFETT'S BIGGEST INVESTMENT EVER? ROMAINE: ON THIS DAY IN HISTORY, AUGUST 30 94 YEARS AGO IN 19 BECOME WARREN BUFFETT WAS BORN. THE HISTORY OF THE SUCCESS SEEMED PREORDAINED. THE SON OF U.S. CONGRESSMAN, HE EXHIBITED AN EARLY ENTREPRENEURIAL SPIRIT SELLING CHEWING GUM, MAGAZINES, PINBALL MACHINES ALL BEFORE HE GRADUATED HIGH SCHOOL. AFTER COMPLETING HIS COLLEGIATE STUDIES, HE WENT TO WORK AT HIS FATHER'S INVESTMENT FIRM AND LATER AT A PARTNERSHIP RUN BY BENJAMIN GRAMM. BY 1956 AT 25 YEARS OLD, BUFFETT FOUND HIS OWN INVESTMENT COMPANY AND A YEAR LATER MET HIS FUTURE BUSINESS PARTNER CHARLIE

MUNGER. WITHIN SIX YEARS, BUFFETT WAS A LIEN THERE. IN 1965 OF IT MADE A PURCHASE THAT WOULD CHANGE HIS LIFE. PAYING $8 MILLION TO TAKE CONTROL OF AN OBSCURE TEXTILE COMPANY CALLED BERKSHIRE HATHAWAY. WHILE THE TEXTILE BUSINESS WAS A DOG, BUFFETT WAS ABLE TO PIVOT THE BUSINESS INTO INSURANCE AFTER BUYING NATIONAL INDEMNITY TWO YEARS LATER CREATING A FOUNDATION FOR BILLIONS OF DOLLARS FOR FUTURE INVESTMENTS THAT WOULD MAKE HIM ONE OF THE RICHEST PEOPLE IN THE WORLD. THOSE INVESTMENTS ARE VAST AND NUMEROUS. WASHINGTON POST, COCA-COLA, GILLETTE, I CAN GO ON. THAT BRINGS US TO OUR QUESTION

OF THE DAY. BUFFETS BIGGEST DEAL EVER. AND MIGHT HAVE ALSO BEEN HIS WORST. HE PURCHASED AEROSPACE INDUSTRY SUPPLIER PRECISION CASTPARTS. HIS BIGGEST EVER. LESS THAN FIVE YEARS LATER, BERKSHIRE WAS FORCED TO WRITE DOWN THE DEAL VALUE BY $11 BILLION. IN HIS ANNUAL LETTER RELEASED IN 2021, BUFFETT CALLED THE PURCHASE A MISTAKE SAYING HE PAID TOO MUCH FOR IT, MISCALCULATING THE TRENDS IN THE AEROSPACE INDUSTRY. STILL COME INVESTORS HAVE IN FORGIVING. BERKSHIRE THIS WEEK BECAME THE FIRST U.S. COMPANY OUTSIDE OF THE TECH SECTOR TO SURPASS $1 TRILLION IN MARKET VALUE. CLASS A SHARES HAVE AGAIN TO

31% SO FAR IN 2024. IT'S BEST YEAR IN A DECADE OUTPACING THE S&P COME OUT PACING THE NASDAQ, OUTPACING THE PHILADELPHIA SEMICONDUCTOR INDEX. OVER THE LAST 30 YEARS, BERKSHIRE HATHAWAY STOCK HAS PROVIDED INVESTORS WITH A TOTAL ANNUAL EQUIVALENT RETURN OF 13% AND AVERAGE RETURN NO MAJOR BENCHMARK IN THE U.S. HAS MATCHED. SCARLET: ALSO THE FACT HE CAN BE CANDID AND ADMIT WHEN HE MADE A MISTAKE. THAT ENDEARS HIM TO A LOT OF PEOPLE. INVESTMENT IS A LOT OF MISTAKES AND A FEW BIG ONES. THIS IS A GREAT SEGUE INTO OUR NEXT GUEST WHO IS BUILDING

HER OWN FINANCIAL EMPIRE BY OFFERING USERS INVESTMENT GUIDANCE TO BECOME FINANCIALLY SECURE THEMSELVES. MAYBE EVEN MILLIONAIRES. IT IS TIME FOR NEXT UP WHERE WE HIGHLIGHT THE ENTREPRENEURS AND FOUNDERS VIVINT ALL FOR OUR ECONOMY, MARKETS AND TECHNOLOGY. IN STUDIO IS ASHLEY FOX, CEO OF A FINTECH START UP. THANK YOU FOR JOINING US. >>>> THANK YOU FOR HAVING ME. SCARLET: KITA UNDERSTANDING YOUR MISSION IS WHY YOU STARTED IT. YOU ARE WORKING ON WALL STREET. YOU LEFT THAT JOB AND SHORTLY AFTER THINGS WENT SOUTH. CAN YOU TAKE US THROUGH WHAT HAPPENED AND HOW THAT SET YOU UP? >>

I WORKED FOR ONE OF THE LARGEST BANKS IN THE WORLD HELPING MILLIONAIRES AND BILLIONAIRES STAY WEALTHY. EVERY DAY IN THE BACK ACCOUNTS OF BILLIONAIRES AND BILLIONAIRES AND I FELT LIKE FOR SOMETHING WE ARE USING EVERYDAY IN OUR LIFE, WHY IS IT NOT TAUGHT IN OUR SCHOOL SYSTEM? I AM FROM PHILADELPHIA. WHEN I WENT BACK ON, PEOPLE THOUGHT I HAD A LOT OF MONEY. WORKING WITH CLIENTS THAT HAD 25 MEGA DOLLARS OR MORE I REALIZED THERE IS SOMETHING THE WORLD NEEDS TO KNOW. I DID OF LEAVING WALL STREET WITH THE INTENT TO POWER THE 99% WALL

STREET OFTEN OVERLOOKS. CREATED THE WORD EMPIFY WHICH IS A MERGING OF THE WORD POWER AND MODIFY TOGETHER. WITH AN ATTEMPT TO SHIFT THE MINDSETS OF PEOPLE WHO FEEL LIKE THEY DON'T DESERVE TO HAVE WEALTH AND SHOW THEM HOW TO BUILD IT. WHEN I LEFT WALL STREET, NO ONE TOLD YOU WHEN YOU RUN A BUSINESS YOU DON'T MAKE MONEY EVERY TWO WEEKS. I GOT KICKED OUT OF MY APARTMENT. . I COULD NOT ON SEE THE WEALTH WALL STREET EXPOSED ME TO. I KNEW I COULD SHOW THE WORLD HOW TO INVEST. HOW TO PLAN FOR RETIREMENT. HOW

TO PAST ON THE WEALTH TO CHILDREN BECAUSE I SAW IT ON WALL STREET. SCARLET: THAT IS SO INTERESTING THE FACT LOST ALL YOUR MONEY AFTERWARDS BECAUSE YOU WERE STILL SPENDING OF THIS -- SPENDING AS IF YOU ARE WORKING AT THIS BIG. HOW DOES THAT INFORM THE APPROACH YOU TAKE AT EMPIFY TEACHING PEOPLE HOW TO MANAGE THEIR FINANCIAL FUTURES? >> IT ALLOWED ME TO CONNECT WITH THE PEOPLE I SERVE. NOT EVERYONE HAS THE OPPORTUNITY TO GO TO WALL STREET. EVERYONE HAS THE OPPORTUNITY TO LEARN HOW TO INVEST. IT ALLOWED ME TO CONNECT WITH MY AUDIENCE MORE

BECAUSE I KNEW WHAT IT FELT LIKE NOT TO HAVE BUT I KNEW IT WAS POSSIBLE FOR ME TO CREATE. SHOWING PEOPLE THE BASICS. . IF YOU'RE SPENDING MONEY AT COMPANIES, THESE COMPANIES ARE GENERATING REVENUE BECAUSE OF YOU. WHAT IF YOU OWN STOCK IN THESE COMPANIES? WHAT IF HE STARTED SMALL? WHAT IF YOU LEARNED HOW TO BUILD BIG. PUSHING PEOPLE, TRANSLATING THE INFORMATION INTO I DIGESTIBLE LANGUAGE SO PEOPLE FEEL LIKE I CAN DO THIS. I CAN START SMALL. I CAN BUILD BIG. I AM IN AN ENVIRONMENT OF PEOPLE WHO WANT TO GUIDE ME AND SHOW ME

HOW TO GET THIS DONE. ROMAINE: A LOT OF TIMES WOMEN TALK ABOUT THESE PROGRAMS, THE FIRST THING EVERYONE WANTS TO ASK IS TELL ME WHAT STOCK TO BUY. WHAT YOU ARE DOING IS WAY DEEP. YOU HAVE A 12 WEEK TRAINING PROGRAM. WHAT IS THE MAIN THING YOU WANT TO GET ACROSS TO THESE PEOPLE? ASHLEY: WE HAVE PROGRAMS IN SCHOOL SYSTEMS. WE HAVE DONE PROGRAMS IN PRISON SYSTEMS. WE HAVE PARTNERED WITH COMMUNITY COLLEGE. WE HAVE OUR MEMBERSHIP PLACED DUTCHMAN WORSHIP BASED PLATFORM. OVER 24 DIFFERENT COUNTRIES. THOUSANDS OF PEOPLE HAVE ACCESS TO FINANCIAL TOOLS IN THEIR HAND.

HOW DO I OPEN A BROKERAGE ACCOUNT? SHOWING PEOPLE HOW TO FISH. HOW ABOUT WE START TO THINK ABOUT WHAT YOU KNOW, USE AND BELIEVE IN. IT IS EASIER TO RESEARCH A COMPANY YOU KNOW WHAT THEY DO AND HOW THEY OPERATE. YOU BUILD BIG OVERTIME. IT IS SHOWING PEOPLE THE HOW AND THE WHY IT IS IMPORTANT. JUST BECAUSE YOU DO NOT GROW UP WITH MONEY, IT DOES NOT MEAN DON'T DESERVE TO HAVE WEALTH. HOW CAN WE SHOW ADULTS AND CHILDREN HOW TO EFFECTIVELY BUILD BY STARTING WITH WHO THEY ARE AND WHAT THEY HAVE? ROMAINE: BUILDING EMPIFY

AND WHERE YOU WANT TO -- WHERE YOU WANT THIS TO GO NEXT, HAVE YOU BEEN ABLE TO ATTRACT INVESTORS NOT JUST TO YOU BUT THE VISION OF WHAT YOU ARE TRYING TO ACCOMPLISH? ASHLEY: I HAVE BEEN APPROACHED BY INVESTORS. WE HAVE NOT TAKEN INVESTORS BUT IT IS FOR PEOPLE TO SEE I CAN CONNECT WITH HER. I WANT TO BUILD WITH HER. OR MEMBERS -- OUR MEMBERS IN LESS THAN TWO YEARS HAVE INVESTED IN $6.1 MILLION. IS A BRAND-NEW INVESTORS WHO DID NOT HAVE A LOT BUT WERE BUILDING A LOT TOGETHER. SHOWING WHO I AM. SHOWING

WHAT WE DO. CONNECTING WITH THE EVERYDAY PERSON. RECENTLY WE WERE FEATURED ON THE INC 5000 LIST IS ONE OF THE FASTEST GROWING COMPANIES. I KNOW WE ARE ONTO SOMETHING. I KNOW THERE ARE PEOPLE WHO WANT TO BUILD BUT WANT TO -- AND WANT TO FEEL LIKE THEY CAN DO IT. WE ARE SHOWING YOU HOW TO GET IT DONE. SCARLET: WHEN IT COMES DOWN TO IT, THIS IS A TRAINING BOOT CAMP. IT IS PERSONALIZED AND REQUIRES TIME. WHAT ABOUT PEOPLE WHO GET TO A POINT AND THEY FEEL COMFORTABLE ENOUGH WITH THE BASICS OF INVESTING AND THEY

WANT TO BUILD GENERATIONAL WEALTH? HOW DO YOU BUILD ON THAT? ASHLEY: WE HAVE THE LIFE INSURANCE BOOT CAMP. THE LIFE -- THE RETIREMENT BOOT CAMP. I BRING IN MY LIFE INSURANCE AGENT AND PARTNER WITH FINANCIAL ADVISORS SO THEY ARE NO LONGER DOING THE BASICS. THEY'RE EXECUTING ON ALL THE INFORMATION THEY ARE LEARNING. HOW CAN WE INVEST FOR OUR CHILDREN? HOW CAN WE HAVE THE CONVERSATION WITH OUR FAMILY? HOW CAN WE SET UP A TRUST? WHEN I WAS WORKING ON WALL STREET, WHEN YOU HAVE 25 MONEY DOLLARS, YOU DON'T JUST WALK INTO A BRANCH. THERE IS

A HOLISTIC EXPERIENCE SET UP FOR YOU. WHAT IS THAT LOOK LIKE BUILDING THAT FOR THE EVERYDAY PERSON ON A SMALLER SCALE? SCARLET: ENJOYED MEETING YOU. THANK YOU SO MUCH. ASHLEY: CEO OF EMPIFY, A FINTECH START UP. LET'S GIVE YOU A GLIMPSE OF WHAT HAPPENED IN TRADING. IT WAS KIND OF A ROLLER COASTER RIDE. WE FINISHED A DAY UP IN THE GREEN BETTER THAN 1% WHEN IT COMES TO THE S&P 500. . THE NASDAQ DOING EVEN BETTER. THIS AS TREASURIES FELL. CORE PCE DATA CAME IN. PUTTING MUCH DELIVERED AS EXPECTED INDICATING THAT WE ARE GOING TO

GET A RATE CUT IN SEPTEMBER. THAT ROMAINE: IS NOT SEEM TO BE ANY DATA BUMP THAT WOULD CAUSE THE FED TO DEVIATE FROM ITS PATH. YOU TALK ABOUT THE BIG ACTIVITY WE SAW HEADING INTO THE CLOSE. THE VOLUME PICK UP. A LOT OF PEOPLE REBALANCE. THE QUESTION IS DO THOSE TRADES GET UNRAVELED WHEN WE GET TO SEPTEMBER 17 AND 18TH? WE MIGHT GET A CUT. WE MIGHT NOT GET 50 BASIS POINTS. SCARLET: FIRST WE HAVE TO GET THROUGH THE JOBS REPORT. A LOT OF HURDLES UNTIL WE GET TO THAT SEPTEMBER 18 DECISION. THIS IS THE

CLOSE ON BLOOMBERG. ROMAINE: LABOR DAY IS KIND OF HERE. THE LABOR DAY WEEKEND HERE IN THE U.S. UNDERWAY. TRAVEL IS EXPECTED TO REACH RECORD LEVELS. THE TSA SAYS IT IS PREPARED TO SCREEN MORE THAN 17 MILLION PEOPLE TODAY THROUGH WEDNESDAY. TOM BLACK OF BLOOMBERG OPINION IS RUNNING FOLKS TO BEWARE OF PASSENGER BEHAVIOR. WITH THE NUMBER OF UNRULY PASSENGER CASES RISING THIS YEAR. TOM BLACK LINES US TO TALK MORE ABOUT THIS HERE. THANKFULLY I'M NOT GETTING ON A PLANE THIS WEEKEND BUT I HAVE BEEN ON A LOT OF PLANS THE LAST FEW MONTHS. YOU DEFINITELY ANECDOTALLY

HAVE SEEN A SHIFT IN HOW WE ARE BEHAVING. TOM: THAT IS TRUE AND IT STARTED WITH THE PANDEMIC. IT IS PRETTY CLEAR. THE MASK MANDATES CREATED A LOT OF THAT CHAOS TIERED UNFORTUNATELY, IT IS NOT DROPPING AS WE WOULD LIKE TO SEE IT. . I DON'T KNOW IF THERE IS SOME KIND OF LINGERING EFFECT OR WHAT IS GOING ON. SCARLET: SOMETIMES IT IS DUE TO FRUSTRATION WITH THE WHOLE SECURITY CHECK PROCESS. FOR DOMESTIC FLIGHTS, USED TO BE JUST SHOW UP AT THE AIRPORT 70 MINUTES BEFORE YOUR FLIGHT. FOR NEW YORK YOU HAVE TO GET THERE

TWO HOURS IN ADVANCE TO GET THROUGH ALL THE SECURITY CHECK. I KNOW THAT THERE ARE DIFFERENT PROGRAMS LIKE TSA PRE-CHECK THAT MAKE THINGS EASIER BUT IT FEELS LIKE THAT IS A SMALL OCEAN OF PEOPLE WHO SIGNED -- SMALL PROPORTION OF PEOPLE WHO SIGN UP FOR IT. TOM: ABOUT 20 MILLION PEOPLE SIGNED UP WITH THAT PROGRAM. THE FAA IS ENCOURAGING MORE FOLKS SO THEY CAN TRY TO PROCESS THEM QUICKER. I WOULD SAY THESE RULES HAVE BEEN AROUND FOR A WHILE. 9/11 CREATED SOME OF THESE EXTRA CHECKS. BUT THAT WAS QUITE A BIT OF TIME AGO. IF

YOU LOOK BACK AT THE NUMBERS AT 2018, 2017, THEY ARE WELL BELOW WHERE WE ARE NOW. THREE AND FOUR TIMES HIGHER NOW WITH THESE UNRULY INCIDENTS WE ARE HAVING. I GET WHAT YOU ARE SAYING. BUT THERE IS A BEHAVIOR PROBLEM. TRYING TO CRACK DOWN. THEY HAVE A ZERO TOLERANCE PROGRAM BUT PEOPLE STILL ARE GETTING THEMSELVES INTO TROUBLE. ROMAINE: LET'S ASSUME EVERYONE BEHAVES THEMSELVES THIS WEEKEND. AS WE POINTED OUT, THE TSA EXPECTING SOME PRETTY HIGH NUMBERS. 17 MILLION PASSENGERS STARTING FROM THURSDAY THROUGH NEXT WEDNESDAY. . THAT WOULD BE UP 8% HERE. ONE INTERESTING DATA POINT I

SAW AND YOU REFERENCE IT IN ONE OF THE COLUMNS YOU WROTE. THE AVERAGE PRICE OF AIRFARE IS LOWER TODAY THAN WHAT IT WAS A DECADE AGO WHICH SURPRISED ME. IT DOES LOOK EVERY TIME I BOOK A TICKET IT IS MORE EXPENSIVE THAN THE LAST TIME I BOOKED. TOM: THAT IS CORRECT. A BIG DROP IN PRICES WHEN THEY THE REGULATED THE INDUSTRY BUT THAT WAS SEVERAL DECADES AGO. FROM JUST 10 YEARS AGO I WOULD SAY THE ENTRANCE OF SOME OF THE LOW-COST CARRIERS HAVE HELPED PUT DOWNWARD PRESSURE ON FARES. OF COURSE YOU HAVE TO BE BRAVE

ENOUGH TO GET ON SOME OF THESE AIRLINES THAT DON'T HAVE VERY GOOD ON TIME PERFORMANCE. THAT IS THE TROUBLE. ROMAINE: IF I DON'T FLY FRONTIER OR SPIRIT OR SOMETHING LIKE THAT. TOM: THAT IS RIGHT. ROMAINE: I HAVE NEVER BEEN ON THEM. THAT IS WHY MY PRICES ARE NOT GOING DOWN. TOM: YOU HAVE TO TRY IT SOMETIME. BE BRAVE. SCARLET: THOMAS BLANCO BLOOMBERG OPINION. WE WILL TRY TO GET ROMAIN ON ONE OF THOSE DISCOUNT CARRIERS. IT IS NOT IN KEEPING WITH HIS REPUTATION. HE IS SHAKING HIS HEAD. THANK YOU SO MUCH. HE ONLY FLIES PJ. FOR

MORE ON WHAT TO EXPECT, LET'S BRING IN A TRAVEL INDUSTRY EDITOR. WE TALKED ABOUT THE FRUSTRATION THAT BREWS WHEN YOU HAVE TO GO TO THE AIRPORT AND GET THROUGH THE SECURITY CHECKPOINTS ESPECIALLY AHEAD OF LONG AGAINST LIKE WE HAVEN'T -- LONG WEEKENDS LIKE WE HAVE NOW. 17 MILLION PEOPLE EXPECTED TO GO THROUGH SECURITY CHECKS. YOU HAVE COMPILED SOME TIPS. THE OBVIOUS ONES INCLUDE GETTING THERE EARLY. THAT DOES NOT CHANGE THE FRUSTRATION YOU MAY FEEL. YOU ALSO TALK ABOUT MAKING BACKUP PLANS. WALK US THROUGH WHAT THAT MEANS ESPECIALLY WHEN YOU HAVE POINTS, MILES AND OTHER THINGS

LIKE THAT AT YOUR DISPOSAL. ROMAINE: I THINK WE ARE HAVING SOME ISSUES. >> THERE WE GO. TO MAKE A BACKUP PLAN, WE SUGGEST USING THOSE POINTS AND MILES. FOLLOWING YOUR FLIGHT AND SEEING WHERE THE PLANE CURRENTLY IS NOW, WHERE IT IS COMING FROM. IS THERE WHETHER IN THAT DESTINATION THAT MAY DELAY YOUR FLIGHT? BOOKING A BACKUP FLIGHT ON YOUR MILES BECAUSE YOU CAN GET THOSE MILES BACK. IF YOU DON'T CHECK IN FOR THAT FLIGHT. YOU CAN HAVE THOSE MILES WE DEPOSITED INTO YOUR ACCOUNT. I HAVE DONE THAT PERSONALLY MYSELF. I KNOW A LOT OF STAFFERS

DO THAT AS WELL. IT GIVES YOU THAT REASSURANCE IF YOUR FIRST FLIGHT DOES NOT GO ACCORDING TO PLAN, YOU DO HAVE THAT BACKUP. USING THOSE TSA AND CLEAR EXPEDITED SECURITY LANES AND MAKING SURE YOU HAVE THAT MEMBERSHIP. MANY CREDIT CARDS WILL OFFER YOU A STATEMENT CREDIT FOR THOSE MEMBERSHIPS. THAT IS A GREAT WAY TO GET THROUGH SECURITY FASTER. TSA ESTIMATES WITHOUT PRE-CHECK YOUR AVERAGE WAIT TIME IS 30 MINUTES. WITH IT, IT IS LESS THAN 10. ROMAINE: I WANT TO STOP YOU THERE FOR A SECOND BECAUSE I'M A LITTLE CONFUSED AS TO ALL THE OPTIONS WHEN

YOU APPROACH THE SECURITY LINES. YOU HAVE TSA PRE-CHECK. YOU HAVE CLEAR. YOU HAVE PRIORITY AND FIRST CLASS LANES. I CAN NEVER MAKE SENSE OF WHICH IS FASTER. I ALWAYS SEEM TO BE IN THE SLOWER LANE. WHAT HAVE YOU FOUND IS THE BEST APPROACH TO GET THROUGH? IS IT ONE OR THE OTHER OR DO YOU NEED ALL OF THEM AND WHEN YOU GET THERE? >> I HAVE ALL OF THEM AND I GAUGE IT WHEN I ARRIVE AND SEEMEDS LIKE WHAT IS THE SHORTER LENGTH. TSA GETS A GOOD JOB. SCANNING A DRIVERS LICENSE AND TAKING A QUICK

PHOTO. THOSE PHOTOS ARE DILUTED INSTANTLY AFTER THAT. THAT IS GETTING PASSENGERS THROUGH VERY QUICKLY IN THOSE LANES. WE WROTE A STORY ON SITE ABOUT CLEAR AND AS IT WORTH IT OR NOT. PROS AND CONS AND THINGS. MANY PEOPLE GET FRUSTRATED. THEY ARE IN THE TSA LINE AND THEY SEE CLEAR CUSTOMERS, AND JUMP THE LINE. ROMAINE: IT IS AN RAGING SHOULD THE OTHER -- IT IS ENRAGING. >> THE OTHER THING YOU MENTIONED IS PARTY BOARDING. THAT HAS TO DO WITH YOUR AIRLINE PROGRAM. WHICH CAN BE DIFFERENT FROM AIRPORT TO AIRPORT WHERE THEY HAVE THOSE LANES. THOSE

ARE MOSTLY FOR BAGGAGE CHECK IN. SCARLET:SCARLET: YOU ARE HITTING UPON A SORE SPOT BECAUSE I TRAVELED FOR BUSINESS RECENTLY AND I GOT THROUGH SECURITY CHECK QUICKLY BECAUSE I WAS FLYING BUSINESS. I HAD TWO HOURS TO KILL BECAUSE I GOT TO THE AIRPORT SO EARLY BECAUSE I ANTICIPATED THIS LONG UNFRIENDLY PROCESS. I WANTED TO GO TO THE LOUNGE BUT I COULD NOT GET IN. THE LOUNGE IS NOW OFF ACCESS TO MOST PEOPLE UNLESS YOU HAVE THE RIGHT CREDIT CARD OR YOU ARE FLYING INTERNATIONAL. >> THAT IS TRUE. I HAVE STATUS ON AMERICAN AIRLINES AND UNLESS I

FLY INTERNATIONAL I CANNOT ACCESS THE ADMIRALS CLUB. AND I HAVE AN ADMIRALS CLUB MEMBERSHIP -- UNLESS I HAVE AN ADMIRALS CLUB MEMBERSHIP. I CARRY THE PLATINUM CARD BY AMERICAN EXPRESS. GIVES ME ACCESS TO AMERICAN EXPRESS LOUNGES AND PARTY PASS LOUNGES. IT GIVES ME A FEW ADDITIONAL OPTIONS. IF FOR SOME REASON I CANNOT GET IN ONE LOUNGE OR ANOTHER ONE IS CROWDED. WE HAVE SEEN THAT A LOT. LOUNGE OVERCROWDING PEAKED DURING THE PANDEMIC WITH THIS RUSH BACK INTO CHRIS ACTION TO TRAVEL. WE HAVE SEEN IT TAPER OFF A LITTLE BIT AS SOME OF THE CARRIERS HAVE

CHANGED THEIR ACCESS RULES OR CREDIT CARD RULES FOR ACCESS AND THINGS LIKE THAT. IT IS STILL NOT WHERE IT COULD BE AS FAR AS SPREADING OUT GUESTS. ROMAINE: I HAD A SIMILAR EXPERIENCE WHERE I GOT DENIED ENTRY TO THE ADMIRALS CLUB, A CLUB I HAD BEEN IN A ZILLION TIMES BUT THE RULES CHANGED AND I DID NOT KNOW ABOUT. IT RAISES QUESTIONS. WE WERE GIGGLING WHEN YOU MENTIONED YOU HAVE ALL THESE PROGRAMS AS WE WOULD EXPECT ANYONE WHO WORKS AT TPG TO DO. . BUT FOR MOST OF US, WE DO NOT HAVE THE PATIENCE OR

TIME TO SIGN UP FOR THESE THINGS. WHERE SHOULD WE STEER OURSELVES? MAYBE ONE OR TWO OPTIONS. TRY TO COVER ENOUGH BASES. MAYBE NOT ALL THE BASES. SHOULD WE GO STRAIGHT WITH AIRLINE TYPE OF CREDIT CARD? IS IT BETTER TO DO AMEX? WHAT IS THE BEST DEAL? >> IT DEPENDS ON WHAT AIRLINE YOU MIGHT FLY THE MOST AND WHAT YOUR HOME AIRPORT IS. FOR ME, I'M BASED IN PHOENIX. THAT IS AMERICAN AIRLINES. IT IS A HUB HERE. THAT TENDS TO GET ME ANYWHERE DOMESTICALLY OR INTERNATIONALLY I NEED TO GO THROUGH CO-CHAIR PARTNERS AND THINGS LIKE THAT.

I HOLD THAT CREDIT CARD. MANY OF THE AIRLINES HAVE CHANGED THEIR SPENDING REQUIREMENTS. YOU CAN ACTUALLY EARN ELITE STATUS WITHOUT STEPPING ON A PLANE JUST THROUGH CREDIT CARD SPENDING. THERE ARE MANY DIFFERENT WAYS YOU CAN ACCESS AND ELITE STATUS PROGRAM WITHOUT TRAVELING AS MUCH. IT JUST HAS TO DO WITH HOW MUCH YOU ARE WILLING TO PUT ON THE CREDIT CARD. FOR A LOT OF US WE PUT EVERYDAY EXPENSES BECAUSE WE PAY IT OFF. YOU ARE EARNING POINTS ON ALL OF THAT EVERYDAY NORMAL SPENT. SCARLET: IT SOUNDS LIKE YOU HAVE TO READ THE FINE PRINT OR

KNOW SOMEONE AT THE POINTS GUIDE TO FIGURE OUT WHAT WORKS BEST TO YOUR ADVANTAGE. IN TERMS OF THE ACTUAL POINTS YOU ACCUMULATE ON YOUR CREDIT CARD OR THE MILES YOU ACCUMULATE FROM FLYING, WHAT DO WE KNOW ABOUT IN TERMS OF HOW MUCH THEIR LINES HAVE DEVALUED SOME OF THOSE POINTS OVER THE PAST COUPLE OF MONTHS? >> WE HAVE COVERED THAT ON OUR WEBSITE. THEY HAVE DEVALUED. DEPENDING ON THE PROGRAM, THERE HAVE BEEN SOME EVALUATIONS. DEPENDS ON IF THEY ARE SWITCHING TO IDENT AMICK AWARD PRICING CHART OR XAVIER BECERRA'S IN OUT THOSE AWARD SEATS -- OR

HOW THEY ARE PRICING OUT THOSE AWARD SEATS. SOMETHING THAT WAS MILEAGE-BASED WAS 12,000 POINTS BEFORE IS 15,000 POINTS. THAT IS WHEN WE TALK ABOUT -- WHAT WE ARE SEEING ARMY TALK ABOUT EVALUATIONS. . IT WILL TAKE YOU MORE POINTS OR MILES TO SECURE THE SAME TICKET THEN IT DID LAST YEAR OR THE YEAR BEFORE ROMAINE:. GREAT ADVICE, GREAT INSIGHTS. TRAVEL INDUSTRY EDITOR AT THE POINTS GUY. AS A LOT OF US PREPARED TO HIT THE ROADS AND THE SKIES FOR THE LABOR DAY WEEKEND SHOULD SCARLET: THAT IS WHY PEOPLE ARE MAD AND IN A BAD MOOD

WHEN THEY GET ON THE AIRPLANE. THEY COULD NOT GET INTO THE LOUNGE AHEAD OF TIME SHOULD ROMAINE: HAVE TO GET YOU ONE OF THOSE GULFSTREAM'S. I KEEP TELLING YOU THAT. AS YOU GET BACK FROM THE HOLIDAY WEEKEND, IT IS GOING TO BE A BUSY WEEK FOR MARKETS. . WE WILL SET YOU UP FOR WHAT TO WATCH NEXT WEEK. THIS IS BLOOMBERG. ROMAINE: AS WE CLOSE OUT THE WEEK AND THE MONTH OF AUGUST, LET'S PUSH AHEAD TO WHAT MARKETS WILL HAVE THEIR EYES ON WHEN THEY COME BACK INTO THE HOLIDAY SHORTENED WEEK. MONDAY IS LABOR DAY

IN THE U.S. SO MARKETS ARE CLOSED. . LET'S GET RIGHT TO TUESDAY. WE DO HAVE ECONOMIC DATA EVERYONE WILL BE PAYING ATTENTION TO. SCARLET: CLUB MANUFACTURING FOR AUGUST. IS A FINAL READ. IT IS EXPECTED TO -- EXPECT TO COME IN BELOW THE 50 MARK. WE GET CONSTRUCTION SPENDING AND SOME PRICES PAID COMPONENTS FOR ISM AND EFFEXOR. ROMAINE: WE'LL GET ON WEDNESDAY INTERESTING ECONOMIC DATA. DURABLE GOODS. THE FED BEIGE BOOK. SCARLET: EVERY THING IS MODERATE OR MODEST. ROMAINE: AND ANECDOTAL. WE GET EARNINGS ON WEDNESDAY. SOME OF THESE COULD BE INTERESTING ON WEDNESDAY. SCARLET: DOLLAR TREE WILL

BE INTERESTING BECAUSE OF WHAT DOLLAR GENERAL HAD SAID WHICH IS THEIR CUSTOMERS ARE STRUGGLING. AND BASICALLY NOT ABLE TO SPEND THE WAY THEY WERE BEFORE. WHICH IS INTERESTING GIVEN THAT WALMART HAS DONE SO WELL. ROMAINE: ON THURSDAY WE GET MORE EARNINGS OUT OF ROD, AND DUCKY SIGN -- BROADCOM AND DUCKY SIGN. SOMETHING ELSE IS HAPPENING ON THURSDAY SCARLET:. THE NFL SEASON BEGINS. WE ARE GOING TO SEE A GAME IN KANSAS CITY. THE BALTIMORE RAVENS WILL PLAY AT THE CHIEFS. THAT IS THE BIG ONE. TAYLOR SWIFT, DO YOU THINK SHE WILL BE THERE? ROMAINE: I HOPE

NOT. ON FRIDAY WE GET MORE ECONOMIC DATA. THE GRANDDADDY OF THEM ALL. THE MONTHLY JOBS REPORT. THE LAST BIG WENT BEFORE THE FED MEETING. IT IS LABOR DAY. WHY ARE WE STILL HERE? SCARLET: WE ARE ALMOST DONE. ROMAINE: I'M DONE. SCARLET: DO YOU SEE HIM TAKING OFF HIS BOWTIE?