 All right, right now technology regaining that strength today. This is Amazon CEO Jeff Bezos is calling out Google and Microsoft from backing away from working with the Pentagon saying quote If big tech companies are going to turn their backs on the US Department of Defense This country is going to be in big trouble Brian Velsky is back with me along with Melissa RMO stocks was Melissa of course is referring to his rivals who don't want to work at the Department of Defense They're too much above that. I think he's absolutely right. What are your thoughts? I think it's really a shame that Google isn't going to participate in this project. First of all, it's not good for the share shareholders because obviously you want the company to do well It's a big contract and second of all, I think it shows political bias for them not wanting to do it for the reasons They're saying and I just don't it's not supporting the country and google I think the stock overall as far as the tech sector has not looked good They're 150 points off the previous high which was back in july So if you look at the stock and you compare it to amazon, I mean amazon's clearly doing better than google Well, google also facing some regulatory pressure in the EU side of five billion dollar fine I think also hidden amongst all of this is the fact amazon Brian starting to take a lot of those search That search business from them It is and I think Something that's very very understated and maybe not understood with respect to amazon is amazon's technically in the consumer discretionary sector And we had a huge sector change This month with the new communication services sector where netflix went into that new sector So if you think about where performance has been in consumer discretionary 95 percent of the upside this year has been Before the sector change than amazon and amazon is is amazon. Yeah, and and It's a consumer. Which one is in the consumer discretionary amazon amazon is now So the problem is is that from a fundamental perspective what traditional retailing stocks? Do you want to own like really own instead of trade? And it's really difficult with respect to what's happening in the consumer discretionary in particular 22 or 23 Weight of the consumer discretionary. So that obviously is huge, but there are other opportunities there as well We saw 7.1 million jobs out there We know wages are on up swing two-thirds of the economy molissa is the as the consumer So you would have to suspect with these companies doing omni channel that there are opportunities broadly in this market To buy you mean is that we're saying? Yeah, I definitely think so I mean earning season typically is the time where you'd want to either take profits at certain stocks before the earnings report Because you never know what they're going to do or you would want to enter the stocks and get in after the earnings It's it's always risky to do that before the earnings. We're talking about netflix is out tonight That may have an enormous move after the close. So well, we know it's gonna have an enormous move The reason we brought you on is to tell us it was going to be up or down. Well, I will tell you this I'm looking into my crystal ball and I'm telling you netflix is a better long than a short So if netflix gap here's an ideal world if netflix gaps up tonight between 390 and 400 It's a media buy and we'll make brand new all-time. You'll chase it. You would chase it It's not chasing it. I'm telling you it's going to go over 420. So it's a great buy a 390 400 if it gaps up tonight Which I don't know if it will it's interesting because I've followed netflix for a long time People used to laugh at me four or five years ago on this channel when I said you got to own it But more recently netflix and facebook if they didn't bounce like the way they used to after missing I thought that was an interesting sign. I don't know. Maybe maybe lower expectations is what the stock needed brian Well, I think facebook also we know faces bigger structural secular issues with its core product in decline But at the end of the day, I think when you're in this earnings environment charles We're in a market of stocks and I think that's what the most exciting thing is as these stocks come out with different results You have to really focus on the fact that we've entered I believe an active stockpicking environment where you want to focus on stocks and less on industries and sectors and by the way ETS we were reminded of that even before last week Well, if the s and p 500 over 200 of these names still in the red Uh 20 of them and bear markets and then of course in technology 90 had a correction Which only means they came down 10 from their high So we know this has been a stock pickers market real quick brian because you talked about financials Morgan Stanley Goldman Sachs out this morning right now Morgan Stanley is the biggest winner in the financials But the financial ETF still doesn't have that on it still looks relatively flat compared to consumer services health care Real estate technology. It's still not leading the way. What's wrong with the financial couple things I mean from a broader perspective We would not be buying ETFs We'd be buying stocks and we'd be concentrated in those stocks not all banks were created equal I think the primary theme for the next three to five years are wealth management and commercial banking You want to buy those themes that have scalable businesses? So some of the regionals can't compete with bank of america morgan stanley or goldman And I think that's the biggest problem The other thing too is that the majority of analysts quite frankly that are analyzing these companies have less than 10 years experience So all they remember is the credit crisis and all they remember is that stocks only go up because of Interest rates going down people are having a hard time understanding that financials can will and should do better in this type of Environment. I know but overall the I have to say none of the financials Did anything that they were supposed to do in the last four days of the earnings that reported not one the fact that goldman And morgan stanley are rallying today and they gapped up in the morning It's a it's a pathetic rally to me for the day. They should have done better JP morgan chase didn't do it and this whole entire year of 2018 the banks have disappointed And when you look at the fact that interest rates have been rising you say to yourself Wait a minute markets bullish making new highs all the time and the financials are laggy And to me that doesn't make any sense guys. Thank you both very much. Melissa and brian a great conversation Dow Jones industrial average we're up near almost 500 points. We're going to hand over a pretty sizable rally We'll continue to call it the cp effect. Let's claim it over to you. Isn't this interesting?