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On The Tape

Bull Market Consequences & A Conversation with Terry Duffy of CME Group

On The Tape

RiskReversal Media

News, Business, Investing, Business News

4.6757 Ratings

🗓️ 23 September 2024

⏱️ 65 minutes

🧾️ Download transcript

Summary

Guy Adami, Elizabeth Thomas of SoFi, and Dan Nathan dive into the latest market trends, football updates, and notable financial happenings in Monday's edition of the On The Tape podcast. The episode starts with a light-hearted discussion about the Green Bay Packers' performance before shifting focus to the market's current state, with the S&P 500 nearing all-time highs. The hosts analyze historical interest rate trends, sector performances, and the impact of the Federal Reserve's actions. They delve into rising tech stocks, particularly AI-driven companies, and discuss the potential consequences of a long-duration bull market. The episode also highlights important corporate earnings from companies like Microsoft, Micron, and Costco, and their implications for the broader market. The show wraps up with thoughts on potential mergers and acquisitions, particularly Intel and Qualcomm, and the current regulatory environment.  Guy Adami sits down with Terry Duffy, the chairman and CEO of CME Group, at the Georgetown University Psaros Center for Financial Markets and Policy. Duffy reflects on his journey from a humble start at the Chicago Mercantile Exchange in 1980 to leading CME Group, a company now valued at $78 billion. They discuss the vital role of futures in risk management, with Duffy highlighting how proper hedging could have prevented the downfall of institutions like SVB and Republic Bank. The conversation also touches on Duffy's instincts regarding the fraudulent nature of FTX’s Sam Bankman-Fried and the profound impact of emerging markets like crypto and AI. Subscribe to our newsletter: https://riskreversalmedia.beehiiv.com/subscribe — About the Show: On The Tape is a weekly podcast with CNBC Fast Money’s Guy Adami, Dan Nathan and Danny Moses. They’re offering takes on the biggest market-moving headlines of the week, trade ideas, in-depth analysis, tips and advice. Each episode, they are joined by prominent Wall Street participants to help viewers make smarter investment decisions. Bear market, bull market, recession, inflation or deflation… we’re here to help guide your portfolio into the green. Risk Reversal brings you years of experience from former Wall Street insiders trading stocks to experts in the commodity market. — Check out our show notes here See what adding futures can do for you at cmegroup.com/onthetape. — Shoot us an email at [email protected] with any feedback, suggestions, or questions for us to answer on the pod and follow us @OnTheTapePod on Twitter or @riskreversalmedia on Threads — We’re on social: Follow @GuyAdami on Twitter Follow Danny Moses @DMoses34 on Twitter Follow Liz Thomas @LizThomasStrat on Twitter Follow us on Instagram @RiskReversalMedia Subscribe to our YouTube page The financial opinions expressed in Risk Reversal content are for information purposes only. The opinions expressed by the hosts and participants are not an attempt to influence specific trading behavior, investments, or strategies. Past performance does not necessarily predict future outcomes. No specific results or profits are assured when relying on Risk Reversal. Before making any investment or trade, evaluate its suitability for your circumstances and consider consulting your own financial or investment advisor. The financial products discussed in Risk Reversal carry a high level of risk and may not be appropriate for many investors. If you have uncertainties, it's advisable to seek professional advice. Remember that trading involves a risk to your capital, so only invest money that you can afford to lose. Derivatives are not suitable for all investors and involve the risk of losing more than the amount originally deposited and any profit you might have made. This communication is not a recommendation or offer to buy, sell or retain any specific investment or service.

Transcript

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0:00.0

A warm welcome to the Monday version of the On the Tape podcast.

0:05.9

Guy Adami always joined by Elizabeth Young Thomas of SoFi and Dan, Nathan.

0:10.5

Dan, how are you today?

0:11.5

I'm doing great, Guy Dami.

0:12.8

Thanks for asking.

0:14.1

Elizabeth, your Packers of Green Bay are now two and one with the backup quarterback.

0:19.3

Look at them coaching extravagza out there in Green Bay.

0:23.0

Yeah, the run game has been good. They started letting him pass the ball and that's gone

0:27.3

well. I mean, 30 points yesterday. It's going great. Sometimes things defy logic and we'll get right

0:32.8

into it because that's exactly what's going on in the market. Packers defying logic playing with their backup quarterback.

0:39.6

The market, Dan, somewhat defying logic, just sort of on cruise control.

0:43.8

With an S&P now north of 5,700, I think we're within, I don't know, 20 S&P points of another all-time high.

0:52.0

Yeah, no, I think we're there up 20% of the year, but a little

0:54.5

housekeeping first guy, Domney. You had a great conversation last week at the Georgetown

0:59.2

Passaro Center for Financial Markets and Policy with Terry Duffy, CEO and chairman of

1:05.3

CME Group and great friend of the pod. So that was a great conversation. Take a listen to that

1:10.6

after we're done,

1:12.1

waxing poetically. Liz, up 20% on the year, S&P 500. I think the prior high guy, wasn't it

1:18.0

5670 or something like that, or we had a close, I guess, about 5,700, but the prior high from about a

1:23.4

month ago. All systems go, Liz, you've been on market call with us. We've seen you on CNBC. We've been talking about here and on the tape. You know, you've given us some sense of what

1:31.9

history suggests for the last rate hike, the period in between the first rate cut. Is this

1:39.0

the thing that guy is speaking about that is defying logic a little bit, that since that cut, which was 50 basis

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