Sarat Sethi, Managing Partner, Douglas C. Lane & Assoc.

The S&P may not break 4,200, but parts of it like financials and energy are up today because rates are going up. He feels that the Fed will keep raising rates.

Just reported solid Q2 earnings and the price target rose Energy demand will still be strong (even though crude oil prices have been declining). Majors like Chevron make a lot of money even if oil is at $60. He likes it and has not been trimming his shares. In fact, he would add to it. You have staying power in Chevron especially with their strong balance sheet.

He just bought this utility as a defensive play. Trades at 15x earnings while utilities is at 21x. EIX is growing earnings 7-9% and pays a 4% dividend yield. Steady earnings and they can grow at double digits.

Just sold it (down 49% this year). All the catalysts have gone: housing is slowing and rates are rising. He likes the company, but this will be dead money for a while. End demand isn't there.

He bought this, even though it's down over 20% from its 52-week high. Trades at 9x earnings and pays a 5% dividend yield. It's a play on the hybrid work model. Demand is increasing. Used to trade at 16x, so it's now cheap. Has strong earnings power.

DIS reports next week. The theme parks and movies will be strong. Streaming will be interesting. (We didn't get good numbers out of competitor Peacock.) DIS is cheap on a cash flow basis. Worth picking up. A great franchise.

Earnings are coming down because they can't produce enough cars, but demand is strong. So, he'll hold onto this. Trades at only a single-digit PE.

Airlines are getting hit now by higher fuel costs, but this is a reopening stock and it trades at only a single-digit multiple. Endure the next few weeks of bumpiness as the Fed raises rate and hold cheaper-value cyclicals because they will outperform. He would add to it. The CEO said recently he can't meet customer demand.

They're in the penalty box. During lockdowns, people were doing a lot of e-commerce, but will be going out. Also, PayPal spent a lot of money to add customers but that didn't pay off. The CEO has his work cut out for him. If they miss a third quarter in a row, then they're in trouble. This is a show-me story. That said, he is adding to this core position because valuations are so low.

A value trap! After earnings season, he will sell this and use this as a source of funds to buy another stock(s), perhaps financial.

A value trap! Every new CEO gets into something new like emerging markets or Russia. After earnings season, he will sell this and use this as a source of funds to buy another stock(s), perhaps financial.

The question is will Washington allow this merger with Spirit, just announced. It's better for the entire airline industry if it passes.

It's more of a global player. It's made a few missteps, so he's unsure owning this longer term. He won't add to this.

It's 32% off highs. It's a cyclical trade and are sold when investors fear a recession. But XPO is growing earnings and cash flow. He likes it. The CEO has done a great job. Definitely oversold and he would add at these levels.

Valuation down to 11x earnings. He expects a strong quarter with good cash flow from their cable subscriptions.