This is a 'RISKY BET' that could pay off

THAT WHICH IS GOOD. >> WE WILL SEND OVER TO LAUREN SIMONETTI AND FOR CHARLES. >> GOOD AFTERNOON, I'M IN FOR CHARLES PAYNE AND THIS IS MAKING MONEY. STOCKS TUMBLING TODAY IS RISING YIELDS AND OIL PRICES REIGNITE INFLATION FEARS, YOU CAN SEE THE S&P DONE HALF OF 1% AND TECH HEAVY NASDAQ 1%. RUSSELL 2000 OF SMALL CAP STOCKS DOWN THE MOST, ONE AND A QUARTER%. IN AN ABOUT-FACE, TREASURY YIELDS REBOUNDING PRICING OUT YESTERDAY'S DECLINES ON THE TREASURIES BUYBACKS NEWS, THE YIELD ON THE TEN YEAR 4.7%. WALMART SHARES PLUNGING DESPITE EARNINGS BEAT, WHAT HAPPENS? THEY POKE POSTED WEEK IS SALES GROWTH AND OVER SIX YEARS. SLATE STONE WEALTH CHIEF EQUITY STRATEGIST, WHAT HAPPENED WITH THE EARNINGS REPORT? >> IT WAS INTERESTING AND REALLY HIGHLIGHTS THIS CASE SHAPED THE ECONOMY, THE HIRING PRICE ITEMS ARE STILL DOING WELL AND HAD PROBLEMS WITH PRESCRIPTIONS AND THE LOWER SIDE AND GROCERIES SO A STRUGGLE ON EARNINGS GROWTH SAID. THEY MADE SOME ANNOUNCEMENTS THEY COULD GET TARIFFS TO PASS THROUGH CUSTOMERS TO CUSHION THE BLOW, BUT IT CLEARLY HAS NOT WORKED GIVEN WERE THE STOCKS ARE TODAY AGAIN, CONSUMERS ARE MORE CHOOSY WHERE THEY SPEND MONEY AND WHAT THEY GOING TO BUY MUST REFLECT THE. >> WALMART IS KNOWN AS THE PLACE WHERE RICH PEOPLE GET DEALS, LOVE TO GO TO WALMART AND THERE IS VALUE FOR THE LOWER END COVER, CUT PRICES ON 11000 ITEMS LAST QUARTER AND THEY SAID WE WILL USE THE TARIFF REFUNDS TO KEEP PRICES REALLY LOW. OUR CONSUMERS CAP OUT THAT EVEN LOW PRICES AT WALMART ARE NOT ENTICING ENOUGH? >> PEOPLE JUST HAVE TO MAKE DECISIONS ABOUT IT RATHER THAN BOTH ARE BUYING LESS AND THAT'S WHAT WE SEE AND WE WILL SEE IT PLAY OUT THIRD QUARTER AND IT MIGHT BE LITTLE COMPETITION FROM TARGET, BUT KIND OF GOT THEIR ACT TOGETHER. THEY ARE COOL AGAIN. [LAUGHTER] WHY DO YOU LIKE AT SEA? >> THEY JUST SOLD TO eBAY SO IT READ OF CASH, A LOT OF EXTRA CASH FOR UP NEXT STREAMLINED THE ENTIRE BUSINESS AND MADE PROFIT ORIGINS HIGHER SO GOOD AND YOU CAN SEE IT IN THE STOCK. AMERICAN EAGLE IS A BIT CONTROVERSIAL, I KNOW THEY'VE HAD A LOT OF BAD PRESS WHEN IT COMES TO WOMENSWEAR, BOTTOMS LITTLE TOO SHORT, TOO SMALL, BUT WHAT IS REALLY DRIVING GROWTH IF YOU LOOK PAST HEADLINES, THEIR BRAND IS DOING REALLY WELL SO THAT'S A LITTLE RICHER, 30 PLUS AND MAKE IT JUST BRING AN AREA AND THE STOCK WILL GO UP. >> I KNOW TEN -YEAR-OLDS THAT SHOP THERE. IT'S NOT FOR YOU AND ME, IT'S LIKE FOR SEVEN -YEAR-OLDS. [LAUGHTER] >> SOMETHING AS TINY AS YOU. >> STRONG GROWTH AND I THINK ONCE THE NEGATIVE HEADLINES AROUND AMERICAN EAGLE GO AWAY IF WE LOOK BACK TO FUNDAMENTALS, I THINK IT IS A GOOD PLACE TO BE. >> LET'S GO UP, LUXURY, RALPH LAUREN? >> THEY HAVE ONE LUXURY DOING WELL ACROSS THE BOARD, BUT RALPH LAUREN HAS BEEN HITTING IT ON ALL CYLINDERS, MARKETING CAMPAIGNS ARE RIGHT, YOU SEE IT IN THE NUMBERS EARNINGS BEAT AND GROWTH, EXCEPTIONAL GROWTH IN THE U.S. AND OVERSEAS, WHICH ARE IMPORTANT LUXURY BRANDS SO EVEN THOUGH WE HAD A MASSIVE RUN, THERE'S NOTHING SLOWING THE GROWTH SAID. >> THE CONSUMER, WHAT IS THE ADJECTIVE? >> BIFURCATED. >> SELECTIVE. >> LET'S PUT IT TO DRUG STOCKS. YOU CAN'T IGNORE THE RALLY WE SAW IN MADRONA YESTERDAY, UP 177%. MARK HITTING RECORD HIGHS, CANCER TRIAL, THE SUCCESS OF THE CANCER VACCINE BUT YOU LIKE COURSE UP AND ACCESS. >> I ANNOUNCED EXCEL, TO MAKE IT EASIER SO BIOTECH FOCUSES ON TREATMENTS THAT WITH CUSHING'S SYNDROME AND OVARIAN CANCER. IT'S A DIFFERENT TYPE -- >> THAT'S A BEAUTIFUL CHART, THE SIX PLUS, STRAIGHT UP. >> THERE'S A LOT BUILT INTO THOSE NUMBERS SO THAT HAVE MULTIPLE DRUGS APPROVED AND EXPECTATION IS TO CONTINUE TO HAVE MULTIPLE DRUGS APPROVED SO WE SEE IT CAN HAPPEN AND DRIVE UP THE PRICES SO IT IS A RISKY BUT AND HEAVY PRICE RIGHT NOW, A LOT OF GROWTH IN THEIR BUT THEY HAVE BEEN KNOCKING IT OUT OF THE BALLPARK GETTING MORE AND MORE DRUGS APPROVED. DISAPPOINTED LAST QUARTER THE GROWTH WASN'T QUITE THERE, BUT THERE ARE A COUPLE OF NEW DRUGS, COLON CANCER TREATMENTS AND IF IT'S APPROVED, VERY BIG NUMBERS AND THE CHART SHOULD LOOK A LITTLE BETTER. >> THAT SEEMS TO BE WHERE IT'S AT, THE NEXT FRONTIER CAN CORRECT ME IF I'M WRONG BUT IT SEEMS LIKE THE BIOTECH SPACES AI WILL BE CAN SEE GROWTH AND AI IS HELPING WITH DRUG DISCOVERY. >> BOTH COMPANIES HAVE DRUGS ALREADY APPROVED AND CASH FLOW, IT'S NOT LIKE THEY ARE GOING OUT OF BUSINESS IF THEY DON'T GET AN APPROVAL BUT GROWTH AND ACCELERATION ON THE STOCK PRICES WILL COME WITH FUTURE APPROVALS. >> LARGE CAP COMPANIES LEADING UP ON DEBT NOT ALWAYS FOR BAD REASONS THAT THEY ARE DOING IT AND SMALL CAPS ARE BECOMING CONSERVATIVE IS MAKING THEM A SAFE PLACE? >> WHEN GROWTH IS SMALL, RUSSELL 2000 SO IF YOU'RE A BIGGER COMPANY YOU CAN AFFORD TO TAKE ON MORE DEBT YOU CAN SEE ACCELERATION IS HIGHER ON LARGE CAPS AND IT'S ALMOST ABOUT THE PACE OF INFLATION SO THEY HAVE BEEN GOING STEADY PACE WITH SMALL CAPS, YOU TAKE ON DEBT WHEN YOU'RE A YOUNGER COMPANY, YOU HAVE TO PUT THESE PLANS AND SO YES, THAT IS LARGER FOR THE SCALE OF YOUR COMPANY AND THE GOOD THING IS THEY ARE BEING CONSERVATIVE, ARE NOT SEEING HUGE SPIKES AND GROWTH AND DEBT, JUST KEEPING UP WITH INFLATION SO THAT HAS MADE THEM ATTRACTIVE FROM THE BALANCE SHEET PERSPECTIVE AND LARGE-CAP. >> THE FACT THAT THE BLUE BARS -- >> AND THAT'S SAYING THEY COULD HAVE GONE ON THIS MASSIVE SPENDING SPREE BUT THEY HAVEN'T, THEY'VE STAYED CONSERVATIVE, EVEN AS RATES HAVE COME DOWN IN 2025 AND RELATIVELY LOWER LEVELS OF DEBT SO EVEN IF