amount of bitcoin that can be mined. >> but bitcoin up 2.5%. and ether up as well, 1.4%. and other coins following suit as well. dow jones industrials up a full percent now. thank you for watching "power lunch." >> and the "closing bell" starts right now. welcome to "closing bell" i'm scott wapner. this make or break hour begins with a bounce as stocks look to recover from last week's wreckage, especially in tech we'll ask the experts whether the worst is behind or if a bigger pullback is likely. 60 minutes to go in regulation, solid day for the major averages today and getting even bet every as the last hour begins. many sectors up by more than 1%. that incloodudes financials and nice sector for technology

clawing back. and nvidia is bouncing after lossing 13% last week. there's the stock up nearly 5% right now. meta, microsoft, alphabet all higher as well as we enter the final stretch. the first of the megacap names to report. yields are steady. that's been the case of late. looking at the ten year, 4.62. the pce report coming on friday and that's looming especially large given the backup in interest rates. it takes us to our talk of the tape. where is the next move for psps stocks likely to be after the end of the week. let's ask gabrielle santos. what do you think about this week, last week was rough. do you think the worse is behind us? >> i think there are two separate things going on. the first was the initial macro

driven correction we saw in stocks that affected a multitude of sectors related to interest rate volatility related to inflation, expectations overshooting. related to the move higher in oil and the dollar. i think early signs that that one has run its course if you look at fed rate expectations for this year, quite hawkish, and the performance of equal weight on friday doing better. so that has run quite a long way. but this week it's game time for the second bit of the story, which is more around megacap technology related to earnings and initial signs that great is not goodenough given valuations positioning and sentiment. this week will be a key week for that one. >> you think this was a comeuppance? the market brushed that off, the bond market got there and stocks have taken a bit. is that what this is?

>> this is all about the interest rate volatility. the first quarter yields moved higher but interest rate volatilely fell to the lowest since before the fed raised rates. so it became a positive growth story and the high for longer, which is okay. but in april all of a sudden there was a shoot up in interest rate volatility and you brought back the higher for longer discussion because it became more about inflation and do we need to price in a chance we go back to actually speaking about rate hikes. and that last bit we think is over done. the bar is high here to reintroduce heights and we expect interest rates to come down from here. >> what do you think about valuation overall the market. if valuation was justified before, elevated like 20 times if not higher than that, justified on the idea of good

earnings glrowth, good economy and rates are coming down. can we have our cake and eat it too? if rates are going to remain higher for longer can we justify the multiple of the market relative to earnings growth expectations coming down? how do we square that? >> i think in the short term you're really seeing multiple contraction. that's really what's happening here in april. you have had a decline of 6% in the multiple in the same time the earnings have hung in there, that's to account for the uncertainties we've talked about. if we zoom out after a recovery after a temporary correction i think valuations can stay elevated as long as it's still a story about a softlanding and high for longer, but not rate hikes coming back and landing fears. that's where it's beneath the surface and the rkt ma. to us the major, major story is the decrease as the year goes on of the earnings growth mag naof

mag seven and the rest of the market. so it's a reality which means earnings recovery plus more discounted valuations. >> is that what's going on now in some sense too? a rotation really away from megacap tech and tech in general to some of these other areas. i mentioned financials were outperforming by a lot now the rest of the market is caught up because every sector in the s&p is green. it is no longer the financials the best sector on this day. it turns out it's technology so you have the dip buyers coming in. >> absolutely. i think for those that had missed out on the rally last year for the mag 7 or the s&p 500 overall and bemoaning we were back at all-time highs this is another bite of the apple here to buy into some of these themes. but i think what's more long lasting here is the dispersion within a group like the

magnificent seven very clearly you have a lot more dispersion, not every group is up double digits you have some down double digits. we can't forget the importance of thinking through these specific, individual companies and what weight they should have. we're not into the idea it's up to the right and it's the new defensive. if you're looking for defense, it's in your traditional defensive sectors like utilities that did well last week. >> the proof is in the pudding in those stocks have been used as a defensive play. they've been used as offense too. are you suggesting it's no longer the case you 'going to play defense in the largest tech stocks in the market? people have been doing that for a while now, actually. >> if you look at the quality of these megacap tech companies they have a lot of cash, certainly, they have high quality earnings that also draws of course a continuation of elevated multiples in the companies.

and they serve a certain role of defense in the portfolio, you can't look to them to be a hedge for risk aversion driven by geopolitics. by a spike in oil, a price in the dollar. for that you need to rely on tradi traditional defensives and that proved last week especially when you have questions around earnings for this big block, which is the case this week again. >> as long as the interest rates remain elevated, you mentioned utilities. rates have pretty much remained stable the last couple of weeks. it's not like there's been a lot of volatility in the bond market. can utilities work in a higher for longer world. can staples, for example, work in a higher for longer world? >> i think what you saw last week is that perhaps it can. when it's about risk aversion. when it's about concern about o geopolitics, or when we might get concerns about the fed i

don't ever -- the fed overdoing it. >> let's talk longer term. if rates remain elevated can i trust those places to go? >> i think you can. the trick with utilities, a nice combination of defense, cheap valuations plus structural themes. this is what we're discovering around the energy, around artificial intelligence, it doesn't just benefit tech and tech related sectors it's key for the utility sector. so you have a nice combination there. but my main point to clients is you can't look at one or two companies as your diversifier you need to broaden that out beyond stocks and bonds. >> welcome to our set at post nine. >> thank you. >> you heard what gabrielle has to say. what are your views? >> i think a short term bounce

in the market makes a lot of sense here. we had a rough week and a half plus and so now we're seeing a bit of a rebound as we go into tech. but i think those earnings from microsoft and alphabet and meta are going to be really important to determine whether or not that tech trade can take the market higher. >> what if those companies don't come through like they have in the past? is it okay because we've decided we can rotate from them into these other areas or do we have another problem we're reminded those stocks went too far, too fast, multiples expanded by too much and now we have a multiple -- >> i think alphabet is in a different camp. alphabet sold off over 10 % i think the last time they reported and the time before that, but afterwards there were people that came back and purchased the stocks and the stock has reached new highs after that.

so it depends on the quality of those earnings and what they report. i think with microsoft you have to watch out for what those commercial bookings growth numbers are going to be and how the a.i. story really unfolds going forward. >> so cameron, we're down 4% let's say off the highs on the s&p and that takes into account the rally we started in the final stretch. how do the markets look to you now? >> we think we can bounce because we got oversold enough at the end of last week. but then we have to judge the nature of the bounce to see if there is more digestion to come. we'll be watching things like the momentum and thrust, seeing if people are clamoring to get back in. we'll also watch leadership closely. we think tech remains all important because it is such a big part of the s&p 500. it's 30% of the index. so did the weakness in tech actually signal a trend change for that sector? yes, other sectors might do

better but for the cap weighted s&p 500 it's all important. >> we need rate cuts this year? what happens -- say we don't get any, are we okay with that? >> i think it would be nice to get one starting an normalization of interest rate cycle. we're okay if it's not june or july, maybe it's september, october, if you don't want to see financial conditions really tighten and get the conversation about a hard landing coming back to the forefront it would be important to get one in this year and of course continue next year and the year after to normalize the interest rates. otherwise you start to restrict the economy too much as rates come down. >> which is why the biggest event of the week may not be until friday when pce comes out. the megacaps are important but given where the rate conversation and the inflation conversation and the reads on cpi have been, this looms large.

>> the pce is the fed's preferred measure of inflation and so what that comes out to be will impact markets. but we also get gdp reports on thursday and we get the university of michigan numbers on friday as well. when we see inflation expectations continuing to rise, i think that could be a bigger problem for the fed. >> cameron, how do you see the pce report on friday? and the same question, the idea whether this market quote/unquote needs rate cuts. >> the market doesn't need rate cuts if growth remains strong. we think the thing that has underpinned this rally is the fact that gdp estimates keep going up. if the fed is cutting for the wrong reasons because we're starting to cut estimates then rate cuts may not be a good thing for this market. when it comes to the pce hot data would likely push yields higher and likely cement the fed talking hawkish next week at the

meeting. so the pce remains important we're watching the two-year treasury closely bumping up against the 5%. hot pce, maybe we break above it. >> cameron says gdp estimates keep going up, the problem is earnings growth estimates for this quarter keep coming down. is that an issue? >> it's totally normal as we start the year to start to see especially the first few quarters get revised down. >> from 10% down to 2, maybe three if we're lucky? >> what's interesting to see is that the very specific issues with two health care companies brought down the first quarter estimate from what was 5% to basically flat. so i think we can look through some of this in the first quarter. what i really hope we get this week is really a -- kind of a reorientation of this narrative ping-pong we're in here between

hard landing, goldielochs no landing. >> what else are we going to talk about? it's the down shift, the pce below 3. it's the environment neither too hot or too cold. >> we started to get into this poor trend i would think of decent earnings and bad stock reaction. we can't afford that anymore. >> absolutely. we don't want the googles to be down, you know, 10% plus on their earnings. but expectations have gotten high. having the pullback in the market ahead of the tech earnings is a good thing. you flush out some of the bad sentiment and hopefully get a short term recovery when they do report better than expected earnings. >> how would you address the same issue about the price action after decent earnings report sort of an ominous sign

that something bad was about to happen. >> that's right. when stocks don't go up, it's a sign there's a sea change in risk appetite but having a bar being oversold into the earnings season is a help. but we think there's a pain trade happening meaning the sectors doing better after the last couple of weeks are the places you've seen a lot of outflows, financials, industrials, materials whereas tech has been crowded. there's a slight lower bar with high valuations and crowded positioning, that's why we're likely seeing the negative reactions meaning good is just not good enough. >> maybe it's good too that nvidia is going through what it's going through. it's had a nice 5% bounce back today but it was 13.5% last week that stock bled off. we have to wait a month for the earnings report. it's may 22nd. that's a long period of time. maybe a good thing, though, this

stock is having a little bit of a pullback or a major one now rather than continuing to amp up into a number. >> i think that's exactly right. trees don't grow to the sky neither do semiconductors. which means we moved very far, very fast extended above trend for nvidia and the rest of the semiconductor space. wedon't think the up cycle in semis is over. we have overall sales below the prior peak in '21 but likely we're pulling back in an up trend as you test support, whether it's the 100 day or 200 day moving average, that likely tu could be an opportunity to add to the space. so it's good and healthy even for the hottest parts of the market. >> the other thing, for the first time in a while we introduced the alternative to stock idea, cash and things like that. getting 5% here we go again on reasons to not take so much risk

into equities when you can stay safe in cash or, you know, bonds of some kind. >> exactly. i think for 10, 15 years there we got used to the knee jerk of overweighting stocks, overweighting stocks, whether it was investors or pension funds, endowments they had to take on risk because you had such low interest rates and now that's just not the case. we've been seeing, especially those institutional investors, really bringing back their core fixed income allocation, so tons of demands for treasuries on investment grade, fully funded. for individual investors it's hard to argue for a large overweight to equities given the math. it's more a small overweight to equities. so it brings back investing basics that we forget, valuations and quality and position sizing. >> outside of that, equities, plays that make sense, credit

whatever you think is best right now. >> we still think we have to be very, very selective within credit. meaning you saw credit spreads tighten so much year-to-date. mostly in the high yield space not necessarily pricing in the potential risk for weaker economic growth or a lot of increase supply of credit as companies have to refinance going into 2025 mostly. so we are finding opportunities as yields have moved back higher to be able to lock in higher yields but we have to be very selective within high yield credit because you have had the spreads come in so very much. >> we will leave it there. that was fun. i appreciate it. thanks to all of you for being here. let's send it to kristina partsinevelos for a look at the naples into the close. >> tesla trimming prices on the model 3 and y. all of this this past weekend. it comes amid competition in

china and a way to drive demand slowed by higher interest rates. a big fall in gross margins, shares down 3%. bitcoin surprisingly up despite its fourth halving supply chain. the price jumped almost 3%. bitcoin miners and traders, though, are dealing with chaos, that pushed up the price of transaction fees so coin base and robinhood are benefitting. coin base is up over 6%. we have a news alert now on united health. bertha coombs is joining us with new details on the hack reported earlier this year. what do we know? >> "the wall street journal" is reporting citing sources familiar with the investigation that the hackers who got into the health care systems actually got in earlier than the company reported, starting on february

12th according to the journal, they got in through a remote access system that did not have multi-factor authentication. it was not enabled in this particular application which allowed them to get in. now just last week we did hear united health say they are making progress, getting the systems all back together. so far, that hack, that attack, cyber attack has cost some $870 million, it could cost up to 1.6 billion they estimate this year because of all the disruption that has resulted. next week we will see ceo andrew whitty, up on capitol hill testifying before congress on this cyber attack. but again "the washington journal" reporting that it started earlier than the company said, on february 12th the company first revealed it had begun on february 21st. back to you. >> thank you, bertha coombs. we are getting started here on closing bell.

up next, what's at stake for big te tech. investors awaiting results from the top names, big ones are reporting this week. also one big red flag in that space. where after the break. we're live from the new york stock exchange. you're watching "closing bell" on cnn. ♪(serene music)♪ medical discovery

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stocks are ripping in the final stretch today rebounding from last week's losses. nasdaq up more than 1% now. inve investors looking to big tech. good to see you. >> hi, scott. how are you? >> i'm good thank you. have we seen the worst of the selloff. >> probably. we've had a lot of macro damage

due to technical issues. we're expecting growth this week, however. whether this selloff continues is how the megacap tech reports. i think valuations have been more reasonable now now that we've had a little bit of correction. i think most importantly is how stocks react to the earnings news. if we have inline guidance and selloff there's more for teches to go down here. >> it's not like they've corrected all that dramatically in the names. i'm not certain that issue has been taken care of if one believes that an issue existed in the first place. >> look at the magnificent seven, not all names are the same. for example, names like google and meta, which we think are valuations are pretty fair, right in line with ten year averages. earnings have kept up. so stock prices have come down, means valuations are in line.

on the other hand, you have names like microsoft and nvidia and apple where valuations are still elevated. so to us it depends on how the reactions are more so than what the valuations are at this point. >> if you think microsoft,apple and nvidia al evavaluations are elevated, what does that mean for how you think about your portfolio? >> we have in the last few weeks trimmed some of our tech exposure because of the fact that sizes have gone so large. we're still bullish. near term i think there's more choppiness, lower term i think the irnings growth is there. long runways for the a.i. industry. i think the earnings growth is going to keep up. although i do recognize that comps are going to get a little harder. from that perspective, i think near term you'll see more

choppiness, longer term the businesses are still intact. >> i get portfolio management i hear that a lot. but how much had to do with the fact that you think that some of the stocks, if not all of them, just simply went from up and to the right, some of which wasn't necessarily based on full fundamentals? >> well, you know, ultimately what the market cares about a lot is earnings growth. with nvidia, for example, we had two years of triple digit earnings growth. we can't expect companies likes that to continue to deliver that type of earning growth. but can we grow in the mid teens in terms of earnings growth from the next couple of years? we do believe so. if that's the case, 15% per year over 5 years means your earnings double from already very high level. trimming of stocks is something we do from a portfolio management perspective. we still like the companies and

think they're going to do well relative to the market. >> looking at the key growth as a metric as to how the stocks go from here, i'm assuming you must be a little more defensive perhaps about where you think apple could go. >> we are. so out of the seven and perhaps more appropriately the fabulous five now. apple is the company that has lower earnings trajectories. more sort of mid single digits rather than double digits earnings growth for that reason we trimmed our apple exposure as well. but having said that, i do think the company is going to have its a.i. initiative a lot more formal ieszed and concrete the next couple of quarters. i think the company can leverage 2 billion devices that are active. i think there are a lot of levers that apple can pull to make the stock still a good long-term investment. >> what's the largest megacap

position you have? you suggest you're trimming the names ahead of the bpullback, what's the largest position you hold? >> microsoft is our largest. the reason why we like that company is the fact that it's so entrenched in our day-to-day lives in terms of enterprise, and just the consistency and the defensiveness of the business, so while valuations are elevated for a name like microsoft, we think the premiums that investors are paying for it is reasonable. >> the idea of -- i'll take you back let's say, i don't know, six months, four months. let's go four months. the idea of lower interest rates at some point this year, how much do you think that had to do, if at all, with the run we saw in the megacap names and then if i take that off the table from you, what is it going to mean for the next six months, let's say? >> fair question.

you know, we were noncon sen us in terms of the interest rate outlook. we thought the fed was not going to do what the market expected in terms of a percentage cut in rates. we were thinking one or two rate cuts this year. we think honestly earnings growth is going to be more important than whether the fed cuts or not. we think given the recent economic data we're seeing it's reasonable that the fed doesn't become too aggressive in cutting rates. so from that perspective, whether the fed cuts or not we still think these are good investments because the earnings growth is so strong. >> even with no cuts at all. >> correct. >> that's king lip, baker avenue. s&p trying to snap the six day decline. why one strategist thinks last week's selloff is temporary weakness and where investors should be putting their money to work right now. that's after this break.

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we are back as stocks bounce back from last week's selloff. the s&p 500 set to snap the longest losing streak in 18 months. my next guest said the latest market setback should be temporary. joining me now is max ketner. good to see you. welcome. >> good to see you. thanks for having me. >> the bull market is intact? >> yeah. i think so.

what we're seeing now is obviously a lot related to rates as related to inflation. but i think it's a little bit exactly the opposite from what we've done about four months ago. four months ago the narrative was the fed is way too late. late in hiking now late in cutting because something like the three month or the six month annualized core inflation is already at or below 2%. and now just four months later that narrative has shifted to the entire opposite extreme. as much as four months ago was entirely really exaggerated on the cutting and dovish side. that is now exaggerated on the hawkish side. it's not like we're on the brink of a new inflation rate. inflation is stickier, we know that. but it's stickier because of earnings growth, no, mminal gro is stronger and that's what should be driving equities i think. >> four months ago part of the

rally was based on the idea of multiple rate cuts, how can we be in the same position today if the number of rate cuts has gone so dramatically down and at best pushed out? >> yeah, it's a great question. i think you know, part of that narrative that it was related to the number of cuts or the number or the extent of easing, i think was a little exaggerated. there has been, you know, somewhat of a correlation in the second half of the year or between the s&p 500, for example, and the number of cuts until december of 2024. let's be honest that correlation only existed from around august last year until up december last year. so really only around 4, 5 months it's not something that's been around for really ages or anything like a persistent correlation. i think for equities overall, unless the narrative from the

fed really decisively shifts from cuts to hikes, unless that happens, it should be bullish for equities. remember last year a lot of narrative was why should i buy equity, credit if i get 5.5% in cash. so i expect there's cash on is sidelines to work. >> some people are reminded why that cash is on the sidelines. the money expected to spur the next leg of the bull market may never come into the market because it's better sitting in cash and still getting 5%. >> it does. i think it always does before the fact, right. we have the same thing last year, say around april, may last year, with, you know, we were also very bullish on things like emerging market debt, and high yield equities and we had to push back around the narrative, 5 pbt 5% cash yields versus earnings yields not looking

attractive versus corporate bond yields that don't look attractive. at the face it looks unattractive. but when we look at sentiment and positioning, we had three weeks ago, at least a mild sell signal on the shorter term signals. that has all but evaporated. that's all but gone now. from a technical perspective we can see a short term bounce when we look at the earnings picture, it's the same thing. look, for example, s&p 500 earnings expectations. it's expected to drop almost $3 on an index level in q1 driven by the cyclical sectors things like consumer discretionary, industrials, things like energy. so it's also that cyclical pessimism that is still in those expectations and all of that really that kind of pessimism still in the near term expectations one we see those earning beats perhaps starting this week on the tech side, that really can spur the next leg

higher despite at the face of it, still these attractive cash yields on the sidelines. >> you think earnings are going to be good enough to justify current markets multiple. >> yes, and i think it's different q3 onwards when expectations are higher. right now we're faced with $53 on s&p earnings in terms of the index levels. that is expected to increase to 63 and $65 in q3 and q4. so just in six, nine month's time. i think that kind of optimism is a little bit too much. that's something that we don't have to deal with now. i think as long as earnings will be beating that very low bar as long as guidance does come in a little bit better than expected or at least in line, that's going to be good. that will be showing, you know what, the growth side. the nominal growth side of things is still fine and that's

what matters. wit but q3, q4 where the bar is higher that's when the particular equities will start to struggle. but we'll deal with that when we get there, that's not until september, october. >> every sector within the s&p is in the green. some not up as much as they were when we entered the final stretch are you a believer in the rotation away from tech or is that still the dominant play and are we reminded of why starting this week when we get three of the biggest names in the market reporting? >> so i would sort of escape your question with, say, look it's probably tech and the rest. so it's not something we say you have to shift out of tech and forget about tech and go into energy, materials and all the rest of the cyclical stuff. no because we have seen quite a bit of ration in march from mid february until end of march

already into the more cyclical sectors. i think there's a bit more space, particularly and precisely because of those down beat earnings expectations from q1 that i referred to. but tech particularly after that latest leg lower and particularly the megacaps they still do make sense because at the end of the day that's still where the strongest earnings growth is. i wouldn't be rotating out of those. it's a mix of both really. >> i'm not going to let you escape that easily, with all due respect. because what happened in march yes, we had a broadening. we can use the word "and" as you did. it was tech and all of these other sectors that did well. it's just tech dropped back to sixth or seventh in the pack and that was fine. right now we may be going through an "or" where you have had tech upset last week and some are saying okay maybe that trade got way ahead of itself

and now we're in the midst of what's the rotation to these other places and it's not necessarily an everything rally. >> let's remember, it comes back to the first question we talked about around inflation and rates, that now,when you look at things like inflation expectations, longer term, nominal forwards, even interest rate volatility, all of those things have been picking up, and all of those things have been already weighting on megacap and on tech stocks. that's already happened. so part of that is at least in the price. part of that is really at least partially now priced in. so i would say that all we need is really one or two data points on the inflation or on the wage side that is at least in line if not a couple of basis points below expectations and with lower yields what we could be seeing is tech taking the lead again but actually dragging the rest of the market with it.

it won't -- in that environment it won't be just megacap and tech and the rest is lagging. i think it's tech regaining the leadership but actually dragging the rest of the market upwards with it. >> a good test this week with the megacap earnings and the pce on friday. thanks for your time, max. see you soon. >> thank you. that's max kettner. up next tracking the close. >> we have an activist investor urging a chip maker to put itself up for sale and a massive software acquisition falls flat. those market movers are next.

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less than 15 from the closing bell. let's get to kristina partsinevelos. >> let's look at wolfspeed jumping after the activist suggested the company look at ways to promote shareholder value. meaning maybe a potential sale. janet noting they have significant wolf speed. you can see their shares are up about 8% right now. salesforce shares are climbing higher this afternoon after a software provider announced it was no locker going to be

acquired by salesforce. this would have been the biggest acquisition since slack but the companies couldn't agree on the terms of the deal. that's why you see salesforce up and informatica down 7%. >> kristina partsinevelos, thank you. still ahead, verizon shares are slipping after reporting mixed results this morning. one key metric falling short. the details when we come right back. ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk,

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yeah, aw! whoo! ♪♪ these guys are intense. we got nothing to worry about. with e*trade from morgan stanley, we're ready for whatever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right? got him. good game. thanks for coming to our clinic, first one's free. we're in the "closing bell" market zone. mike santoli here to breakdown the crucial moments of the trading day and julia boorstin what's behind verizon's selloff. and kristina partsinevelos is back to look at cadence design earnings. decent bounce, we lost a little steam towards the end.

is this what you were looking for, what you expected? now what? >> it takes the pressure off. it's not the really violent snap back you might expect if you had a washed out market where everything lined up and you had that kind of flush of a selloff late last week. we didn't get that. i think the good news is nobody came in monday saying we need to peel back equity exposure. last week it seemed like that. last week we had intraday rallies, not happening again today. didn't see a lot of it chase when we got to the highs of the day, up 1.4%. >> it looks like we were getting what you described and then it fizzled in the last hour. >> the issue is, even if we got up 2% you have to say that's an oversold bounce. that's the game we play, it's only 5%. no rules have been violated here and the breadth of the market is 76% upside volume so it's still pressure on the big concentrated in

index names that's obscuring a little of the strength below the surface. >> julia verizon was the worst through much of the dow. >> verizon shares falling about 4.5% though they did beat in terms of earnings per share by 3 cents. the ceo saying on cnbc this morning that verizon is on track to meet the financial guidance and phone net ads for the past year this after the consumer business had the best performance since 2018 using fewerless subscribers than anticipated. the lower than expected broad band results could indicate a slow down in the market. saying to remain cautious on broadband market growth until we hear from other operators. verizon talked about how it will make from a.i. but did not help

the stock at all today. back to you. >> julia, appreciate that. julia boorstin. christina, what expect from cadence in overtime? >> a lot. first i have to explain they make critical software for semiconductor designs, known as eda, shares are up right now but down 10% on the month. piper sandler is betting that design programs are going to be what sets companies apart in the future as chips become more and more complex to design and manufacture. which is why they believe the electronic design automation space will be more essential. it's cadence and synopsis. the two yellow bars, they have outperformed the last decade or so. nvidia recently expanded the partnership for cadence, so expect to hear more about that on the earning call tonight.

key bank analysts say it's good for cadence and raised the plus target for $340. they say cadence's recent deal with intel foundry should help keep up the backlog. it's positive on this end. >> we'll see what happens. back to you mike santoli with a minute to go. tesla tomorrow. >> yeah. >> feels like they kitchen sinked a lot headed into this number. >> it's hard to think there's an outright negative surprise. historically tesla stock doesn't do well when it's about the fundamentals. right now people are assuming things have been so bad. the bright side is it doesn't matter for the index. it's way out of the top ten. doesn't seem to be a bellwether of that kind of risk appetite trade. that's nvidia still right now up 4% today. still very e rad ik as it bounces around these levels and

seems to have put in a top. see how deep it goes. >> we'll walk you up to that tomorrow ahead of the earnings. hold onto 5,000 today in the s&p as the bell rings. a bit of rebound to start the week, the s&p 500 snapping the six day losing streak as stocks gain back some of the ground. the action is just getting started. welcome to closing bell overtime, i'm morgan brennan with jon fortt. >> a big week for earnings reports are on the way from sap, cadence design systems nucor and cleveland cliffs. look ahead to tesla tomorrow which has had a brutal stretch of trading. >> we'll talk with