 All right, the markets are shrugging off following oil prices. Let's bring in Gabriella Santos, a global market strategist at JP Morgan Asset Management. Gabriella, good to have you here on set. Thank you so much. All right, so oil prices moving closer to the $40 handle, but the market's having this sort of muted reaction. Why? Well, I think the market understands from the last time around that we did this, that falling oil prices are really symptomatic of a supply issue, right? Too much supply coming in from the U.S. in particular, and not necessarily a symptom of weakening demand. So not a signal of an issue with economic growth around the world. But I do think after we get below a certain price in oil, that's when really the negatives start outweighing the positives. Is that $40? I think it's a little bit lower than that. I don't think we're there yet. I think it's closer to $30, $35. That's when, again, last time around, that's when we started getting some concerns around defaults for energy companies, concerns with emerging market countries, concerns with bank lending. That's when we can start to see a little more volatility, I think. And do you think we'll get that low, $35.30, this time around? Hard to tell in the short term, right? I think by the end of the year, we don't expect to be that low. And that's because we really do expect to see the market much better in balance by the end of the year in terms of supply and demand. I think the most important thing to watch, and that's what really the market is watching, is the U.S. production levels, as well as inventories. They're not falling the way we were expecting at the beginning of the year. We're discovering just how efficient U.S. shale companies really are. Do falling oil prices ding second quarter earnings in the sense that it causes companies to issue lackluster guidance, companies beyond the energy sector? I don't know quite yet. I think, as we were saying, perhaps when we started getting lower down the range, perhaps then that's when we started seeing a negative impact on earnings. For now, I think that we may start hearing about it, but overall, we expect to hear a lot more from companies about good economic growth. And what does all of this mean for inflation expectations, which have been falling? We've been seeing yields on the 10-year treasury drop. You guys actually expect the 10-year yield to reach 2.5 percent by the end of the year, which I think is pretty high, right? It's pretty high considering where we are now, close to 2.1 percent. We used to actually have a slightly higher idea for the 10-year by the end of the year, and we have taken that down as a result of falling inflation expectations and not just headline inflation, which is where oil plays in, but also as a result of some of that disappointment in core inflation as well over the past few months. But overall, if we think about why we have that 2.5 target, it has much more to do with balance sheet developments later in the year. From the Fed. As well as from other global central banks. We do expect the ECB to start announcing its plan to taper its QE program and end it at some point in the middle of next year. So those are two big weights being lifted from the long end of the curve. And just quickly, in terms of opportunities in the stock market, sectors you're watching. So we still are watching much more the cyclical sectors of the economy rather than those very defensive names that used to work, let's say, in the first half of last year. So sectors like still financials with this idea of yields rising and the economy still being healthy, as well as technology. Alright, Gabriella Santos, we'll leave it there. Thanks for coming back with us. Thank you so much. Alright, I'm Scott Gamm, and you're watching The Street.