environments that the golden franchise shines. in the meantime, tomorrow, it feels like boeing will be the main story. a lot of the anticipation has been built in the we will see what they have built-in with orders and production. in the meantime, we are trying to break a midday selloff. welcome to the halftime report. a bounce back with stocks 72 hours ahead. key inflation is looming in the markets. we checked the markets where this bounce back continues. you have stable yields, dipping to 458.

let's assess where we are. it was rocky last week. we are getting a little bit back over the last couple of days. >> we had a big week. 30% of the earnings this week. you mentioned tech names. it is going to be pivotable for this market. we have to get through the inflation number on friday. for what i am hearing, a lot of people have bared up for this number. we are near 2%. i think it is going to come in line. that is a new reflection for pce. cpi is a big part of the shelter. i think if we get the in-line number on friday we will have solid earnings. maybe we can see a bounce. we are oversold for sure. not only have we been talking about the growth around the world better than expected. we talked about growth at 3.2%.

last night we got the pmi in india. they are going to grow 7% in gdp this year. i talked about growth all the time because it does bode very well for earnings. we have seen good earnings across the board. p&g, pepsi. some things that we will learn as well. >> we were below 5000 last week. is a 5% pullback turning into 10% pullback. once again, the bears were left wondering, is that it? 5%? >> obviously, it is possible. i don't think so in the near term. not in the near term.

i think it is encouraging viewing the technicals. rsi was around 30 for the nasdaq. and the s&p 500. what you had mentioned earlier, it was quiet. gold came down to 3% yesterday. this is a humongous week. we need to hear ongoing growth stories that we have already heard through earnings season. i think we could get a catalyst from what microsoft says, what google says and the like. >> we are 4% off the high for the s&p. goldman to say is that the market is still vulnerable. berkeley urges investors to fade any bounds and position for higher yields.

it is the higher for longer that we were wondering when it was going to hit. maybe it started it last week. the market is trying to make some kind of statement over the last week perhaps. >> the march to 5% is interrupted by the moment. those comments, viewers, it is a question of degree. jason, you were saying, you can go down lower. 2% or 7%. if it is 2%, it is unwise to sell in anticipation of that. i cannot stress that point strongly enough. i will rephrase it on the other side, do you want to own stocks year? this economy is very strong. we are talking about higher for longer, it is the strength of the economy. profits are growing, that is the point that you just made.

in the short-term, 10 year yields can go back up and that will freak the market out a little bit. i would not sell in anticipation of that. >> what do you make of what berkeley is suggesting? >> i think you can probably think the tech bounces. some of these stocks are down 10%. you still want to be selective in tech. yeah, i would be trimming amazon if we get a nice bounce. i have already had a nice bounce. it's not cheap. you can be selective and own other names that have come down even more so within tech. we can talk about semi conductor stocks in a bit. i'm encouraged with what i'm seeing in industrials. i'm encouraged in the action in

financials. remember, when j.p. morgan reported, it was down 6%. the whole group was hammered. it is taking new leadership. >> and all-time high for goldman. >> a lot of them act really well. that is where i see value. in an jersey. i think there are places where you want to buy into strength in the non-tech areas. when you get extremes on both sides, if we jump a lot higher, we take the gains. i am not going overweight on tech, i'm going for other parts of this market. >> we have watched this rotation happened over the last week. money coming out of tech and going into financials and staples and healthcare and

utilities. i understand, of course, some will be viewed more defensively than others. there has been a bit of a rotation. just when you thought, like other times that rotations were going to take hold, the buyers come in and say, you know what, at 750, i will buy that. now it is up 70 bucks. my point is, all of the tech stocks right now are green. the man's deck had a bid. i wonder if we will get a reminder this week for why we are overweight on those names. when the nasdaq will not have a bigger connection than what it had, 7% off of the high that it did. >> there is a lot there. for me, as we look to this

week, the theme that i am hearing his degrees. for me, as it relates to the tech spectrum, guidance will be very important to me. ai use cases, again, this is not a new narrative in terms of rotation. a best performer in the first quarter. rotation has been happening. we saw it play out a little bit further over the last couple of weeks. in terms of pricing to perfection, we are expecting earning growths in the tech spectrum. >> is that part of the recent pullback they have had? >> it's not like all of the multiples on the stocks are above their averages either. they are below.

>> true. i think the names will do well. the reports will be strong. it will be about guidance going forward. rotating into other areas and parts of the market and that is where you need to look. >> large financial is buying. they have seen last week. tech is where the outflows were. not surprisingly, last week, that was two of the three sectors in the red. everything else, were all in the green. >> the flow will generally go where the sentiment is. i am not a sentiment guy. where this takes me -- the flows are backwards looking. i want to answer your question. i think the right answer is,

why are they going to go where they should go? the answer is fundamentals. if you look at what is going on outside of tech, there is strong demand. cyclical stocks, airlines, auto manufacturers, demand is strong. i know this irritates you a little bit. don't leave. this is important. you will find it useful. this year to date -- >> i'm telling the producer right there to be ready. >> there has only been four days this year. where tsa has passed. >> if you don't find this useful -- look, this is where i live, fundamentals. there were only four days this

year when there were lower passenger counts than last year. on average this year, passenger counts have been 5% higher on average. people are traveling. maybe these will come out this week and they will blow everybody away. my point is about rotation, there is fundamental reasons for rotation to be occurring. >> you bought small caps last week. russell is down 6% this month. >> in the last three days -- i bought it on thursday. over that time frame, small caps have done very well. they were up on friday. >> they are part of the big bounce back. >> rates have stabilized if not gone down the touch. >> that is what people perceive as the headwind for small caps.

i love where you're going with this, let's dissect the reality. i need to keep you here. i need to keep you enthralled here. >> interest expense is 4% of the revenue. of interest rates stay high or go higher, the issue is not that they have the interest expense that goes higher. the issue is if it causes a recession. what i am seeing from cyclical demand, we are far away from a researcher -- recession. >> if it comes in hotter or cooler, then rates can settle down and we will continue to see this rotation. the russell run thousand growth is up year to date. that is about a 200 spread.

in february, that spread was 900 basis points growth over value. we are not just seeing different sectors, we are seeing a style change. if interest rates can stay where they are and stabilize, that will continue. >> volatility is not good for equities. if we get stabilization, on the conversation of bedding for or against technology stocks, short-sellers are doing it there. >> last week, record windfall during the nasdaq selloff. they brought in a weekly profit of $10 billion which was a

weekly high. those tech giants have recovered a little bit. they are the most sordid stocks in the u.s. followed by apple and then tesla. there has been negative sentiment around these names. it could be more efficient than going along other sectors. it has been a lot less profitable. down 35%. amazon, microsoft, all in the red. it has only been profitable to apple and tesla. they have lost $52 billion going back to the ipo. only two years they have been profitable. they are up $9 billion for the year. >> we will follow it. thank you. elon musk today, speaking of tesla, in overtime, on x, the

car business is tough, which is why he said. stock is down 42% year to date. they will continue price cuts, when they think they are done, they are not done. the direction of the company weighing on shares. what was once a very important earnings report for the overall growth rate. now as the market cap has come down and been kind half, basically, it does not feel like it holds that degree of importance. >> that is a very good point. certainly, for sentiment, tesla represents hypergrowth trade of years past. the unfortunate truth that is being found out now is that it is a car company. when i say that, their hair stands on end. when you're a car company, you

have a lot that costs. how do you do that when the ev business is in a bad spot here, lower prices. that is not good for overall earnings. that covers the cost of running a factory. what about full self driving? everyone has got it. it is not specific to tesla. >> they are the first mover and market leader in some respects. it is a little over-the-top to be dismissive of them as a car company. you can have issues and rightfully so. should it be trading at that much of a premium to other carmakers? i will give you that. charging network, leading ev's. >> there is competition in all

of that. >> doesn't need a moat? >> when i think about automotive companies, what comes to mind for me is ferrari. a lot of people will say that it is not a car company, those margins are completely defensible. what we are seeing, people would say, look at the margins on tesla, that was then, this is now. they have to cut costs to promote volume. >> it might be. why do you think major automakers are doing deals with tesla? >> that will not be enough to support the market where it is. that will not be enough to support the market cap. >> when we talk about the importance of tesla, it is not

necessarily where it once was. we have removed it from the conversation. stock is down a lot. the market cap is cut in half. the flagship innovations fund where this is a large holding, the popular funds are seeking fast. you have had a lot of redemptions, $2.2 billion that tops the outflows from all f 2023. here we are, justin april. tesla is down month to date. roku is down seven. rates are going up, it is not the greatest time in the world to own. nonprofitable and high multiple tech. >> i remember us having this

conversation a few years ago, we were talking about the rate raising cycle. and the nonprofitable stock. the impact that higher rates have on these companies. the higher and longer story. we talked about this a lot this year. three cuts, now zero cuts, the material impact. not good. this is why we are seeing the price hashing. >> these long-duration stocks versus nonprofitable stocks that become profitable. look at the one-year performance of these two names, uber is up 128% . >> up 120% over the last year to date. we've been looking at this for

quite some time. we saw a little bit of material pull back over the last few weeks. 16% off the 52-week high. mobility up 29%. they are hitting on all cylinders. they have struck a new culture. there is a lot of earning potential going forward. we decided to add a small position. >> it is free money. when money is o longer free, you can see who has the bathing suit on and who does not. the divergence has been so dramatic. it is obviously not just that kind of stock. how do you view these high growth nonprofitable names that have gotten in the ai halo effect from other stocks and now we are coming down to earth

in a sharp way. >> i can only have one or two of them in my portfolio. there are some fun stories out there. maybe uber is one of them. i think about snowflake, the one i have not been right on. it is an exciting story when you can talk about a company that has revenue growth. bookings are up 30%. these are real numbers. the stock is not cheap. higher interest rates will hurt it. then we have to execute. they did execute last quarter. you can on maybe one or two of these. you want to have the investable market stories. cybersecurity, we talk about it all the time, i have a very big position. it trades with the rate stories.

for me, i would be less susceptible to the story and more focused on fundamentals, valuations and have a few fun names not even in my benchmark. >> let's throw up the s&p. we will take a quick break. jamie diamond is speaking at the new york economic club. he has been known as of late to characterize his comments as cautious. he is saying that the economy is booming. it has been booming for a while. this echoes where he has been as of late. the current geopolitical situation, one of the most complicated and dangerous since world war ii. he is giving the economy the credit that he sees. he has as good of a look as anybody on the stability and strength of the u.s. economy,

he is concerned about issues and flashpoints around the world. there are your highs from around the day. we will monitor then we will come back and talk about committee stocks. next. >> are you following the halfti rorpoasmeept dct? what are you waiting for? look for us on your favorite podcasting app. you bring a lot back

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we are back, let's do committee stocks on the move. >> i said i'm not going to do tsa anymore. >> down sharply today. 6% year to date. when a stock has big moves like this, especially down. you mention it a lot. >> they miss, right? >> headline miss on the bottom one. as far as why the stock is down, sometimes the market does things that are unexplainable and give you an opportunity. this is one of those times. when the stock is down 9%, is there something wrong with the company? is there something wrong with the economy that we don't know? >> they missed their earnings and sales. >> not by a lot. let me cut to the chase. the case file is up year-over-

year. there was a decrease in buying from service centers after the uaw strike. that is behind us. you're looking at the audio industry. we will get to that in a second. the cost to produce steel is going down. volume is up, prices are going up. here's the most important thing, i am buying more shares. i disagree to the market reaction. do you know who else is buying shares? the company. they mentioned a share buyback. that is 17% of the market cap right now. they have buried 11% of the shares outstanding. i'm not talking about share buybacks. i'm talking about the decrease in the shares outstanding which increases my ownership and will

continue to do so in a company where the future is very bright. >> financial engineering? that is what they call that. >> i call it getting a greater share of a company that i really like whose earnings are growing. >> let's just assume that these letter x deal does not appen, where does this company fit in there? >> if they do anything, it will be a lower price than what steel will pay for. there was a lot of talk on the conference call about this. whether the cliffs can look at a here. to see what happens with this deal. if the president makes it as they say. they will come in with a much lower bid. that will be better for the company.

>> that is an exclusive interview in overtime. you don't want to miss that. >> they are hitting on all cylinders. they truly are. orders were up 34%. operating margins were up 50 basis points year-over-year. free cash flow was double from last year. a $50 million buyback. they increase the dividends back in march. a lot of good things are happening. >> i want to give you a lot on gm. >> the stock is up 25% here today. >> outside of ev's, the auto industry is very strong. i don't like the term, financial engineering. not you in particular. it is what it is.

with the amazing cash flows that this company has been generating for two years or three years and the cash balances they have had during that time, they have bought back 17% of their shares in the last quarter. that is it. they did the accelerated share repurchase, showing up in the share account that is 17% lower than a year ago. at the same time, the demand is there. they have good pricing, good volumes. the uaw took gm to the cleaners and is an absolute farce. the uaw got a good deal. they cut costs elsewhere. if you want to think about a price target on this, i would say 70. the stock trade is 4.5 times the earning range. i think what you will see as the cycle continues is that it goes through that historical multiple of six and gets to

seven. >> they beat and they raise their guide. >> i think the guidance for the cash costs will be higher than expected. they always do this. it is an opportunity. every $.10 per pound, there is more to the company. i like copper because of the reasons that i mentioned in the first block. global growth is higher than expected. i thought that this overall quarter was good. >> that company ceo is on overtime as well. let's get to the headlines now. hi, julia. >> david has resumed his testimony in the hush money trial. they held a hearing on if trump violated a gag order.

prosecutors are seeking $3000 in fines. the judge has yet to make a decision. ukraine has canceled services for military men living abroad. it posted on x, staying abroad did not relieve a citizen of their duties. about 860,000 ukrainian men are living in the european union as of january. taylor swift's newest album became the most streamed albom across spotify and apple music. breaking records across all three platforms. the album was stream 300 million times on its first day. i have to admit, i was one of

those streams. > julia, thank you. >>we have four bullish calls >>we have four bullish calls coming up next it's something you build over time. american announcer: t21 missed cuts in a row. [car trunk slammed shut] for 88 years, morgan stanley has offered clients determination and forward thinking to create the future... crowd: stop it! ...only you can see. american announcer: rose, back in the winner's circle. [crowd cheers] [music out] it's odd how in an instant things can transform. slipping out of balance into freefall. i'm glad i found stability amidst it all. gold. standing the test of time.

tesla earnings after the bell with stocks up to a brutal start this year. closing bell overtime.

on cnbc. the dow is good, 235. rising jason snipe to 168. >> the price on this stock has been solid this year. it is solid. there've been some destocking issues. they have been able to navigate through inflation pretty well. margin expansion is growing there. there is a little bit of talk about china. priced into a lot of different stocks. i like this one.

i think they are managing the environment. >> the price target at 200. we believe it is the company that is best positioned to bring functionality to the edges of the network. >> another story that for me, the price has been passive. i've not been as excited about the stock. the androids are starting to come back online with the diversifying of revenue and automotive growth. the 11% growth rate, i like the ai story and application there. >> how about costco? the stock closed yesterday at 715. they are rated as neutral?

what you think of that call? >> costco, one of the concerns has been the softness in the discretionary spend. what interested me is kirkland brand. putting that in perspective for a minute. i like this new management and new cfo there. the membership growth, i continue to like this one. >> jimmy, the price target to 141 at wells fargo reiterate overweight and remains optimistic on the long-term direct to consumer profitability. >> i am happy to hear that. i am optimistic as well. that is one of several things that should go right. the other thing related to that is getting the hulu deal done. hopefully that is soon to come.

maybe we get some growth from studios later in the year as well. there are things that will go right. we will take a quick break. marks anatoly will be here at this desk with his view onal this desk with his view onal today's action needs with nearly endless customization. and track market trends with up-to-the-minute trade brilliantly with schwab.

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we are back. our senior market commentator is here. this will get your attention for sure. yesterday you are convinced. how are you today? >> encouraged, not necessarily convinced. mostly because you cannot tell yet. you have to go through the sequence of passing this test. every day after a week like

last week, you wake up and make sure that there are no monsters under the bed. and that you ill not be in this spiral of pressure all day. two days in a row, nobody showed up to slam this thing down. last week's high is 80 on the s&p 500. i think responding pretty well to earnings, you set the bar lower with the price action this week. that is all pretty encouraging. it will be very surprising if you will go back to the highs. it is not unprecedented but it looks like routine pullback status is confirmed until proven otherwise. >> now you have recovered a good amount and do you want again negative again before meadow, microsoft, over the next couple of days? >> that is the equation.

will this be used as an opportunity to say that we need to peel back from the big winners? it is up 20% over the highs for year today. it is not like you are cutting into muscle yet. it is a good two-way market in that respect. it is not possible to escape the fact that the orning lift happened with soft economic data. >> is having a good snapback in its own right. >> it is. you are still in the zone of working on these conditions to see what picks us up from here. >> i will see you on closing bell. the set up on key committee stock supporting. it is not about the mega cap. earnings report is coming. we will show you next.

we will get you set up for more key earnings headed your way. not just tesla, obviously, visa. >> this is a company that trades at a higher multiple than i am used to. this is not a balance sheet company like american express. when you look at how the economy is coming along. this will be a decent quarter for visa. >> boeing is before the bell. when you think a lot of bad news is priced into the stock, more bad news comes. >> they are very low. this is bad news.

they announced 4 billion lost in the first quarter. they will go down for 2024. that is the only thing they care about at this moment in time. they can see a recovery in 25 and 26. we have a long way to go to get there. we have to hear about deliveries. there will be a lot of discussion points on the call. i do not think it will be a catalyst in the short term. >> what do you want to hear most about? >> we have been talking about ai a lot. the implication on selling prices, we will see how that rules out. they had a really good quarter last quarter. revenue growth is up 26%. i will be important. >> tomorrow after the bell, your second-highest tech position reports? >> usually does trade off on any currency issues.

we know that the dollar has been a problem for every multinational company. howell it has gone through this with software and consulting. i think the ford estimate is very reasonable. any weakness i'll be i love it i do believe in the recovery i do think they have a very good presence in ai you need six times the memory for ai, so they're right there the problem is it's only down 10%. the last year it's up 72% and the valuation has gone from 16 times to 30. >> 9% in a month >> up 72% in the last year, so it's not like it's super cheap and the valuation is rerated so i'm going to let this one come in more than just down 10%. >> caterpillar is thursday before the bell, jason >> for me this has been a rocket ship as of late, up 23% year-to-date so i think for me, inventories are full, sales are slowing.

so that's a concern going forward. they have a strong balance sheet, reducing costs. up next, we document two big winners and two big losers back after this. and retirement savings. voya helps you choose the right amounts without over or under investing. so you can feel confident in your financial choices voya, well planned, well invested, well protected.

winners and losers

we'll highlight the losers first. there's a method behind this jetblue down 17%, now 16%. the loss widened lkq corporation, also down big, the worst stock in the s&p big miss, profit decrease, that stock's selling off. spotify's up big today on their strong results new 52-week high i want to end on jpmorgan, hitting an all time high today jamie dimon speaking, i want to listen to what you you said about the banks and regulation doesn't sound happy. >> it's got nothing to do with jpmorgan but what kind of financial system do you want if i make a loan here and have to put up 30% more capital than a european bank in america, is that right is that what we intended to do wasn't there supposed to be some kind of international standards here i'm done with regulations.

>> jimmy, he's done. maybe he can be done, because, you know, what was feared, let's say in bozell, is clearly not happening in that form i mean, it's been so telegraphed at this point by the fed and others that maybe he doesn't have to worry at least about the most onerous of regulations on the banks. >> i'm excited about jp morgan and the report the regulation and the lack thereof is not maybe what is getting me so excited. i hope he's right. i hope he's absolutely right i hope what you said about bozell three losing its teeth is the case but if it isn't the case, you have good loan growth, investment banking picking up, trading on all the volatility in the markets. credit call isn't that bad the financials are in a very good position right now. i think you should own financials, and jpmorgan is the

creme de la creme. >> jason >> for me, the theme as we look at banks is m&a activity picking up, so i like goldman here >> we'll do a quick break and "finals" on the other side [alarm beeping] amelia, turn off alarm. amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen. why not? did you forget something? my protein shake. the future isn't scary, not investing in it is. you're so dramatic amelia. bye jen. 100 innovative companies, one etf. before investing, carefully read and consider fund investment objectives, risks, charges expenses and more prospectus at invesco.com.

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representative! we can go in the window. (♪♪) daddy! just a moment darling. meanwhile, at a vrbo... when other vacation rentals leave you hanging, try one where you can reach a human in about a minute. we have a good one today on "closing bell," 3:00 eastern time bryn is with us ahead of tesla's earnings liz saunders, liz young. we'll get to a lot let's do "final trades" right now. farmer, tsa. [ laughter ] please, what do you have >> alphabet. it really powered through this down turn like the downturn didn't happen. it's about 1% from an all-time high >> jason >> diamondback i like this energy name here revenue up 10% year over year.

>> stephanie >> i like wisdomtree india pmi is at 14-year highs, growing gdp at 7%, fast nest the world >> dow is up near 250. s&p 500, up almost 57 points we'll see what the last hour brings "the exchange" is now. scott, thank you very much welcome to "the exchange," everybody. i'm tyler mathisen in for kelly evans. here's what's ahead. busy hour in stock for you stocks higher, yields lower, investors digest mixed economic data business activity in april grew at the slowest pace so far this year, while new orders fell for the first time in six months companies also scaled back jobs for the first time in almost four years but manufacturing input costs hit a one-year high. services demand remains strong what does this mean for the fed? our economist also make the case for a july i