noncompete clause. that is a huge number, maybe 30 million americans are impacted. the ftc argues that hurts new business formation, hurts innovation, and hurts the workers. >> 30 million people, a lot of people. >> really important in the technology world, i would think, as well as other services. >> financial services, as well. >> thanks for watching "power lunch", everybody. >> "closing bell" starts right now. welcome to "closing bell", i am here at the new york stock exchange, this new york breaker big hour, and at the last week's pullback was worst of it and why the next three days might mean everything to your money. we will ask our experts over this final stretch what is really at stake. in the eantime, your scorecard with 50 minutes to go in regulation, looks like that it is green across the board, the s&p 500 now trying to close its three-week losing streak, well on the way to doing just that. there is the treasure, one .25 for -- 1.25%, each sector in

the green, and tech continues to rebound. nvidia, back above $800. we will show you some of these mega cap names. meta, microsoft, alphabet, green, as well. they report their earnings over the next couple of days, that will be big. tesla reporting tonight it, too, is struggling mightily this year. and the russell 2000, yes, it is up nice again, too. yields have stabilized. and by the way, on that note, coming up, we will ask former fed chair richard clara to when the fed will cut rates, if at all this year. this does take us how to best move in this market. let's ask our chief investment strategist with charles schwab. good to see you back again. we had this nice move over the last couple of days. do you believe in it? how you feeling about this market? >> the market got a little bit oversold especially in areas that had taken a drubbing and

technology sector dropped to only 10% of stocks trading above a two day moving average. i do think that enticed some buyers, not to mention the earnings from some of the mega cap names this week, maybe elevating some interest on the buy side. i think it also didn't eliminate the froth, but ease some of the froth, which had been a concern. so, i think we probably revert back to the kind of leadership we were seeing before, but you are going to get these moves on a day-to-day basis or some of the lacquered get a bid. >> you are suggesting that mega cap is going to once again take the lead and stay there? this idea of rotating or broadening is not believable? >> no, no. i am saying this year's winners, until recently, will probably go back into the leadership position, meaning energy, and materials, and financials, to some degree. i think we get these relief rallies in areas that were last

year's darlings, but i believe more in the persistence on the traditional cyclicals, borrowing more significant weakness that shows up in the economy. >> so, you are on the same train as jamie diamond, who was speaking today at the economic club not too far from here, where he said the economic boom is "unbelievable." even if we go into a recession, the consumer is still in good shape. so, you are playing for the strong and continuing to be strong economy? >> so, i actually think that we may start to see a little bit of pressure on the consumption side of the economy. but, i think the more traditional, cyclical areas represented by given what is going on in commodities, materials, again, financials, i think there was a value trade that kicked in there, and energy, maybe for obvious reasons. so, those are -- scott, as you know, we relaunched schwab sector views earlier this year after a two year hiatus after we focused on factors, now we

focus on both. fortunately, the three outperformed ratings since we have been launched is energy, finance, and materials, and we have not changed. we think at least near term, that is where you will continue to see performance leadership. >> how do you think this bull market since the october bottom is based on rate cuts? and how much do you think it was based on the fact that the economy is just a strong, and that matters more than anything else at the end of the day? >> i think it is more the latter than the former, but i also think the lout rally was driven by what happened with treasury yields, rather than the parliament game of expectations around, when will the fed cut, and by how much? the move from 5% of the 10 year yield in october down to 3.8% was just a powerful tailwind for the overall market and that is why you saw a significant move by small caps during that downturn and yield. the recent turn back up in yields initially was for the detriment down the cap spectrum

for zombie type companies and more recently started to hit more of the larger cap companies, but i think the resilience in the market has to do with the resilience in the economy. there is a lot of churn under the surface. the average nasdaq member has had a 32% claw down this year, so you don't really get a full picture of what is going on in the market if you only look at index changes. the real story has been under the surface. >> if we get no cuts this year -- or maybe one, but it is pushed off way off until the end of the year -- are you still comfortable with this market as long as the economy reason -- remains resilient? >> if the economy remains resilient, we don't get a significant turn up in inflation, i think the market is okay. a significant turn up in inflation, or deterioration in the geopolitical environment, $100 oil, that starts to have deeper effects into other inflation. and the fed is stymied in a slowing economic environment by not being able to cut to combat the slowing economy because of

inflation, that would not be a great scenario. if so, it would be the why behind what the fed does. what amazes me, again, this parlor game of, when will they start? how many cuts? there is very little that i hear behind that analysis. i think the fed is going to start -- fill in the blank -- july, september. the reason why is, here is what i anticipate in terms of monthly readings on core pce, or core pce services, housing, here is how the base affects work. so, this gets you something close to the fed's target, and here is what i expect on the economy, that gives the green light for the fed to start cutting out, so it is more of throwing a star at the starting point. it is about the data and i think that gets lost in the parlor game. the >> but, a higher for longer idea eventually has an impact, does it not? it affects multiples and it may ultimately impact the economy. we are trying to figure out what exactly higher for longer means in an environment where

rates are already backed up. what happens if they remain or backup more? >> i think you are right, it does affect multiples. in fact, the recent pullback was all multiple contraction. you didn't have it in the denominator earnings, have remained in positive territory. so, i think that was a contributor to multiple contraction. you maybe have started to see some hits on the housing side of things after what was a hope that we were starting to see some recovery when we were in the downtrend in yield. so, yes, that impact isn't just something perspective, it is something we are already seeing. but, i think you have to remember that a lot of the mega cap companies are earning more interest on their cash and they are paying interest on debt. we know the impact on the mortgage market has been somewhat muted by the fact that a lot of mortgage owners share

turned out their debt and the average mortgage rate is lower, a lot of corporations turned out their debt. so, i am not sure i'm in the camp that believes higher for longer is all good for the economy. but, there have been some unique characteristics of this cycle, especially on the corporate side of things and on the sort of household side of things that has clearly muted the impact, at least for now, of higher interest rates. >> how are you feeling about earnings? next couple of days are going to be pivotable -- with microsoft, alphabet, and maybe we can talk about those stocks in the first place, or we are given the reason now what you think, for example, that it is the others that are going to continue to do well. >> so, it is a pivotal week, because you have, you know, a hefty dose of the magnificent seven, and that can break the near-term perspective that we have on earnings, because that is clearly where the majority of strength has been come in earnings. but, i think it is the outlooks that are important, too. i think some of the concerns about some of these stocks is that there was a lot of

extrapolating of these huge beads, both on top line and bottom line. the real key, given the forward- looking nature that is the stock market, whether that can be maintained. but, i would equally focus on earnings outside of those areas, in areas like the effort mentioned sectors of financials and energy, because we have some of those cyclical sectors that as we are now in a reporting season, estimates have actually been trending a little bit higher, relative to where they were before reporting season. that is what i will focus on. you can't say that for all 11 sectors, what is that trend from pre-reporting season to where we are now? not just for the current quarter, but for the next couple of quarters. >> i feel like one of the biggest battlegrounds is small caps. certainly, a suggestion that they can't do anything in a high rate environment and maybe that is born out of the fact that when rates backed up, they had a rough go of it. so, back at 2000 now, rates have stabilized, they have even come in a little bit. so, we are not surprisingly

looking at a russell that is outperforming today by almost double, up 2%. would you touch small caps here? >> welcome a small caps is a big universe. the russell 2000 has, i don't know, 1850 stocks in it. so, in an environment of lower realized correlations, and dispersion, you do not want to go with this trend. and even the zombie companies, which are much more dominant in an index like that, it is not just about whether you are a zombie, meaning you don't have special cash flow to pay interest on the debt. it is, what is your actual revenue and earnings profile? you can be a zombie company, but if you have decent, nominal growth, you can grow those revenues and it can be an offset. it is the zombie companies in the nonprofitable category that represent the truly nonprofitable companies and that is what i would stay away from. but, i think you have to have a fine tooth comb with the kind of mecca part truck -- market backdrop that we have now, not as it relates to a category as

large as small caps. >> let's bring in a couple of other voices now, liz young, and malcolm, cnbc contributor. good to have you both. >> good to be her. >> liz, you heard liz ann. what do you think? >> hi! >> hi, liz. how are you? i think what is happening with this rally is there is a game of, put this money back where it came from. a lot of this has been macro driven, and liz ann mentioned that it was multiple contractions. she is absolutely right because earnings have held in there, if not gotten better as far as expectations go. so, this was macro driven by rates, macro driven by geopolitical risks rising, and by people worrying that it was going to threaten the cyclical recovery or cyclical expansion that we had traded into for the beginning of the year. so, a lot of that was given back. now, you are seeing this rally

over the last couple of days in banks, in durables, and you are seeing it in small caps. again, i think that is because rates sort of stopped out, they stopped rising. and because we have this relief that, okay, geopolitical tensions didn't escalate into something larger and spread across the globe. what i am worried about at this point is i think the market is so short-term oriented that we are hanging on every bit of data, we are hanging on every word of the fed because we don't know what is going to happen with cuts and i am not sure it matters whether it is september, november, december, or 2025. >> i almost feel like we have come to peace with the idea that the fed is not going to cut rates anytime soon. as long as rates right now are stable, and don't continue to back up, i would almost take the other side of that and suggest that we have gotten okay, we are tired of the fed's speak. let's go ahead and carry on with a good economy, like jamie dimond was talking about, and liz ann agreed with that sentiment on the economy.

and that is fine, as long as earnings stay well and the economy is good. >> that is the key, that last part. we are fine with them continuing to push cuts back, as long as the data stays how it is. as soon as the data turns -- if it does turn -- the longer they keep rates high, it will slow things down, it just hasn't, materially, yet. if and when the data does turn and cool off, that is when i think markets will start to grapple with, is it too cool? are we now turning in the opposite direction? and if they come in with cuts, the timing of that is going to matter because if inflation isn't solved, it is reigniting everything to soon. so, i think you're absolutely right. we are over the fence, so to speak, and i think that is a good thing. but, we are over it, as long as everything else is held constant. >> well, the economy is not going to all of a sudden fall out of bed tomorrow. >> not suddenly. >> interest rates have come down, but they are still expected to be positive.

now, the bar is so low, it doesn't seem difficult to leap over it. >> the earnings, or the economy? >> the earnings bar. >> well, the earnings bar for q1 actually was never that high. and for q1, i don't think that is about what happened in q1, it is about looking forward to what is going to happen in the rest of the year and can we justify these valuations based on what ceos say will happen for the rest of the year, and i think companies will be punished if guidance isn't raised, like it has been raised for the past few months or so. so q1, the hurdle is low but i don't think it is low, it is not as much as the low as it is about actual guidance for 2024. >> malcolm, golds as we are still vulnerable. berkeley says to yield any bounce for the higher yields. after what the two ladies have to say, what is your opinion? >> i am not sure we will see cuts at all, and that is basically where i have gone to. i want to talk about what else is on the table, besides just the inflation conversation, there is an election that is going to happen later this year, and what we have to keep in mind is that the biden administration has a

conflicting goal in mind right now with jerome powell. jerome powell cares only about inflation. the biden administration is focused on jobs, as well. as long as jobs stay strong, inflation is going to stay a problem. but, if you are a sitting president who is looking to get re-elected, you have to be focused on keeping that job's number and employment rate of -- up more than you care about inflation going from 3% to 2%, because consumers aren't going to notice the difference between 2% or 3% but they will notice if you have a job or not. that is what is going to come in and make a significant difference as to whether powell will cut or not. if we don't get any cuts but -- by july, how can you initiate it than without it looking political? >> what if we don't need to worry about cuts until later in the fall? i mean, let's just take the fed chair at his word, when he suggests over and over that they are not going to be political and politics are not going to have anything to do with it. let's just assume we believe him, for the arguments sake, even if you don't. >> i don't, but i will take the

setup you just gave me, and i will say -- >> do you feel like we need rate cuts? >> we need it in certain parts of the economy. you mentioned earlier small caps, and you mentioned earlier that the mega cap tactic, to rotate back, put the money back where it came from. for everybody else that is not a mega cap name, i think interest rates will matter. goldman put out a piece earlier this week talking about how within the russell 2000, i think it is 20% or so we are at a floating rate. within the s&p, it is just 6%. if you consider, how much is that risk? the longer we go higher for longer, you have to start to wonder, windows the reckoning start to come? and i think that does happen later in the year. >> liz ann, you made the point that there are a lot of other areas outside of caltech, and outside of the small caps, and the 1850 stocks, you said we are in that index that could still work. and if you want to call this a high rate environment, fine, 4 1/2% on the tenure, what have you, whatever. but, it sounds like you would take the other side of malcolm's argument?

>> well, i think you want to stay up in quality and that has been a quality of ours for some time. that might seem like an obvious statement. why would anybody want to be in low-quality companies? but there is a point in the cycle when there is leverage to a big turn up in the economy, a move down in interest rates, often when you are coming out of a recession, that it does make sense, at least for a short time to go down the quality spectrum where there is that leverage, going into negative earnings territory. clearly, i don't think that is the part of the cycle that we are in right now. so, it is sort of this mix we have of the sector biases that are more traditionally cyclical, but staying up in quality, looking for strong balance sheets and high interest coverage, and strong key cash flow, and play it in that combination of both sector analysis, as well as factors.

>> malcolm, you are the one who is heavily invested in the mega cap names, so you need these stocks to continue to be standouts. do you think they will be? >> i think we have to consider that investor psychology has changed. where we would normally think about safe havens, things like staples, and treasuries, and maybe utilities, we are now looking within mega cap tech as our safe haven trade, that is why we are putting the money back where it came from. i think we have to recognize that investors don't really care about the 10 year yield being a ford half percent, or even 5% for the entire year, if you can get that in every quarter within the s&p, and the major s&p constituents that are, to your point, helping my portfolio. are those mega cap tech names that we are focused on this week. that is where the market has shifted, even though we want things to go back to the way they were. i just don't think near-term, that is the market we are going to get. >> you continue, liz young, to make the argument back toward the short end of the curve, right? >> it ordered today. >> you want to be able to buy the two year, some six months ago, and the stock market went off to the races, and here we are again. and you like that, still.

>> i continue to believe that we are in an elongated, late part of the cycle. so, what do you want in that part of the cycle? large-cap, dividend paying stocks, you do want to treasuries. because at some point, if the economy hits the skids, people get scared. or, at some point, the fed normalizes policy, yields are likely to come down. we also have done some analysis last week on, what is the upside risk in yields in the two years from here? it turns out the upside risk is lower than the downside move can be, given all of the uncertainty that is out there. so, i am willing to stomach a little bit more move in the yields in the two years to benefit from it on the other side. i am confident sometime in the next two years, the fed will have to cut rates, so that is where i sit. >> i think most people would be in your camp on that. i enjoyed it. everybody, we will see you soon. let's send it to kristina partsinevelos, for a look at the biggest names moving into the close. >> one of those is spotify,

their best day since october 2019, pre-covid. after surprising investors with a prodigy, even though otal monthly users can in below estimates. the music streaming platform attributes this to efficiencies, multiple layoffs, price hikes, and other initiatives to boost margins. shares up almost 14%. shares popping more than 17 right now after the medical company beat earnings and sales estimate even though they beat to revenue to be done year-over- year. competitor, , also up in that sympathy, those shares are up 5% right now. >> we are just getting started here. up next, teslas moment of truth. first quarter earnings are out in ot, requisite capital has been talking and owns that stock, which is why we get her take, next.

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welcome back. tesla reporting earnings in overtime tonight, the stock tumbling after the last four earnings releases. will today be a repeat performance? joining us now is tesla shareholder, bryn talkington, managing partner at requisite capital management and a cnbc contributor. it is good to see you. give me an idea of what your psyche is like here, going into this report, given the history and the most recent declines in shares. >> well, i mean, i think this is going to be the most -- this is the most anticipated earnings call in as long as i can remember. so, just this time last year, they did $.85 for this quarter. now, the street estimates are at $.50. so, this is not good. they need to come out, or eli needs to come out -- they could

take a page from mark zuckerberg and stop talking about rubber taxis like he was talking about the meta-verse. there are doing layoffs, which is smart. they need to get fit, they need to come up with a plan of, we need to get ev sales in line, full self driving subscription, let's hear about that, let's hear about optimist, let's hear about the other things they are doing, let's not talk about robo taxis. if that is part of the narratives, then the stocks are going to go down, but i think the line, he didn't go to india, i think he is going to take this seriously, and i wouldn't want to be short going into this call because there is so much bad news in there, scott. >> even if he puts it in your words "seriously," how would you deal with, reconcile, continued price cut when the street things they are done losing market share in china? you mentioned, getting leaner. you know, the whole strategy shift, if you will, this robotaxi idea, if you will, which you don't want to hear anymore about, what you might,

and i'm curious about if you do and a general ev slowdown. if so, maybe the goalposts had just moved in ways that you and other bullish shareholders didn't expect them to. >> sure, the ev showdown -- slowdown in the u.s. is important for the story, but really, it is china. i think that is the biggest risk in the name. as i told you before, i sold calls against it, which i like to do, which is a good thing to do for these types of names. but for me, with china, the model, first of all, is the number one selling ev car in the world and china's growth is still growing. if they can continue to be with view i.d., china is a very big market, but they have to have a plan there. so to me, that is my concern to the name longer and midterm, is what happens in china. i'm less concerned in the u.s.

because there is not that big of a ev market to begin with. >> isn't the writing on the wall total so speak, in china, if they are not making much of a dent in price comes? and do you have confidence things will improve there? >> i am cautiously optimistic. you can lose market share as long as the buyer share is growing, right? so, you can have smaller pieces of a bigger pie. china is all in on that. i also think it is only 6% of revenues but year-over-year, it grew 50%. energy storage long-term will not do anything for the stock today or tomorrow, but that continues to be a narrative underneath kind of like apple in the early days. let me be clear. i think it is dicey, it will be murky over the next few quarters. my position got called away because i do sell calls, but longer-term, i still want to be in this name. unless he goes all in on the robotaxi. if that is part of the narrative, i am out. to me, that is like flying

cars, it is not pragmatic. as i said in the beginning, i want him to channel that mark zuckerberg, when he did that big pivot from faith burch to -- facebook to meta. i think it will be a must listen to call, for sure. >> you sound like our friend sebastian page, like a reluctant bowl, almost looking for regions to get out in order to stay in. >> no, no. >> let me ask you this. given everything that you said, what stuck with me especially is the china story, where you talked about having a smaller piece of a bigger pie. if that, in fact, is the case, then why does tesla deserve as much as a premium evaluation that it was getting before, if one of the stories in the biggest growth markets on earth isn't what it was? >> well, if you are a smaller piece of a bigger pie, you can have more of a story.

i think i have looked at the chinese market and looked at what he has done there. and to me, they literally copied him. some of these cars have the black credit card key, exactly. so, that is a real, pragmatic narrative that i have to think through. but, i still think that is the growth engine for tesla, the cars in china and we are just going to have to get into the next two quarters. listen, i am a pragmatic investor. that is where if you were to go -- if he were to go full robotaxi, the market wouldn't like that. but, i am trying to be pragmatic, not dogmatic either way. but i am excited to listen to the call and i think everybody else is, as well. i think expectations are incredibly low, scott. >> it will be interesting, not

just on the earnings perspective, but the call, as you suggest. i have a feeling we will hear from you tomorrow, bryn. thank you. coming up, rolling out the fed carpet. of the former vice chairman, tran it, is back. where he sees inflation heading from here. when he thinks the fed is going to cut rates this year, if at all. iltell us, next. every day, more dog people, and more vets are deciding it's time for a fresh approach to pet food. they're quitting the kibble. and kicking the cans. and feeding their dogs dog food that's actually well, food. developed with vets. made from real meat and veggies. portioned for your dog. and delivered right to your door. it's smarter, healthier pet food. get 50% off your first box at thefarmersdog.com/realfood at morgan stanley,

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my next guest says higher inflation is helping to build a strong case for the fed to delay rate cuts this year possibly into december. let's bring in richard clarida, former economic adviser and fed chairman. welcome back. >> thank you. >> i will ask you straight up, do you think the fed is going to cut this year? >> i do think they are going to cut this year. everything in mortgage is a possibility but i do think there is a possibility we get at least one rate cut this year. >> is one your baseline? and if so, what was it a few months ago? >> i was taking my lead from the projections, which coming into the year, indicated three rate cuts, given the data we had into the year, that looked like a pretty sensible path. of course, since then, the inflation data has been disappointing and the economic data has been strong, so i think dialing back the expected number of cuts makes sense. i do think this said it's in

data dependent mode right now and if the debtor could either improve or get worse, that will dictate the path. but, i do think we will get a cut, yes. >> i mean, jimmy diamond, i don't know, an hour ago, described the u.s. economy as "unbelievable." it doesn't sound like there is any need to cut rates. >> and certainly on the growth dimension, jamie is right. the fed is looking at inflation data and also seeing that policy is restrictive now. part of running an easier policy is removing some tightening right now. >> what do you expect the pce to show this friday after -- let's be honest -- the last few inflation reads, certainly cpi related, were a setback, to say the least? >> they have been. our team -- which does a great job on this -- thinks it could round up to 0.3%. probably will be right in that range of 0.25% to 0.3%.

you look at that number in isolation, it doesn't look very big. multiply it by 12, you get 3.6, which is too darn high. so, the fed would like something like a 0.2% or below, for sure. >> i will put you back in the room it happens, so to speak. so, here we are, we are in april. we have an election year this year. so, where does the election factor in? and if you were in the role in which you just set, how would that go through your mind as to what the sort of deadline is before it s off limits? >> that is a good point. i think there are a couple issues here. first, historically, the fed does adjust rates in inflation years, just because the economy calls for it. we have seen hikes and cuts in the fed. when i was in 2020, we cut rates that had nothing to do with the election, but the economy collapsed in the pandemic.

the fed will make calls for rates based upon what it believes it needs to do to deliver price stability. i would say that the way the calendar lines up, the november meeting is right after the election, so i think it would make sense -- if the committee thinks it is going to cut -- to get those rate cuts in before november, i would say. but i think the judgment is, what do you need to do for the economy? i think that will dictate it. >> how do you think about the danger in waiting too long? what is strong today in terms of the economy might not be strong tomorrow and the last thing i am presuming that the fed wants is to and broken something, where it is really difficult to fix it once the glass shatters. >> it is a great question and i will be very honest with you, i would come down on probably the more hawkish side of that debate. i think there is half dependence here, the fact that inflation has been above 2% now for three years would indicate to me that i think getting

price stability and inflation expectations would take priority. obviously, if you get a lot of flashing singles, you want to take that into account. but, i would err more on the hawkish side of fewer cuts than more cuts this year. >> let's discuss the target of 2%, or trying to get to target. >> yeah. >> maybe, the fed cannot get it down to target because we are just not playing the game the same way that we used to. i am curious as to whether you heard the comments from the economist, joseph stiglitz today on cnbc, who said because of the pandemic, and wars, and work from home, that have led to this inflation in the first place, it is going to take a long time to work off the effects. we are not in a demand lead,

inflation boom. and even the fed chair himself has suggested that, and i think maybe changed his view on that issue over time. so, how does that factor in to try to get to 2%, when maybe you can't get there anymore? >> the way i have put it i think also on your show in the past as i thought all along going through a couple of years is that the hope a couple years ago was to get inflation in the z.i.p. code, in the vicinity of 2% and above. it is what i call the two point something destination. it is a round number, around 2.25%, 2.5% per year. at that point, is it really worth disrupting the economy for that last 0.3%, 0.4%? i think probably not. and then, you run on restrictive policy and you think over time -- and i agree with my good friend and columbia colleague, joe -- a lot of this has been supply driven and may take more time. so, yes, i would agree that,

you know, keeping rates where they are, beginning to ingest down, so long as inflation is in that 2.25%, 2.5% range, it makes a lot of sense. >> i feel like you said the quiet part out loud. i wonder if the chair himself, do you think, believes that, as well? that he is not going to come out and publicly say we will accept a target that is higher than 2%, but deep down understands the same issue which joseph stiglitz spoke about, which is something you said you agree with. >> i agree that the policy they have in place will, over time, bring inflation to 2%, but i think the committee can afford to let that happen over time and not try to get there in the next six months. i think you do have to take into account, the nature. if you look across the world, in europe, in the uk, in sweden, many other countries,

australia, we all got hit with the same pandemic shock, it is all taking time to get inflation -- inflation has come down but it is still north of target and i think that is a common global dynamic in this post-pandemic world. >> interesting. mr. clarida, i appreciate your time. i always enjoy your conversations. >> thank you. >> that is richard clarida. up next, we are tracking the biggest movers into the close. kristina partsinevelos on that. >> tumbling , low revenue outlooks even though it has been on a cost-cutting spree lately. can you guess which one? details on that name and more, next. waystar's technology is the way to make healthcare payments more human. the way for providers to prioritize care and improve margins. the way for patients to have clarity and trust. the way to care for healthcare payments. waystar. the way forward.

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we are 15 from the belt, back to kristina for he looks at the stocks she is watching. kristina? >> general electric aerospace

unit up nearly 8% after they posted beads on profit and revenue. ge raising its four-year profit forecast with a continuing strong demand for jet parts and services especially as they continue to fix and maintain older jets while you see these shortages of delivering new plans persist in the market. jetblue, did you guess that one? shares are lummeting after the airline company lowered its revenue forecast for q2 in 2022, estimating flat sales and as much as a 10 1/2% decline in the second quarter in revenue even though they have cutting costs and roots, much to the dismay of many travelers. scott? >> kristina, thank you. still ahead, credit check. visa shares are down today. we are going to drill down into what is behind the pullback, and what is at stake when the company reports earnings in overtime. we are back, right after this.

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got him. good game. thanks for coming to our clinic, first one's free. we are in the "closing bell" market zone. cnbc commentator mike d'antoni to break down this market day, +2 earnings reports in ot. phil lebeau on tesla, kate rooney on visa. i will turn to you for a nice move at the end of the day. >> a bit of follow-through from yesterday. what you want to see after the semi washout of a few weeks of downside is the market response to these oversold conditions, the rally is broad and has been brought again for a second day. not lights out, but still

pretty good. peak trough from the s&p, gained back about 100 of them. great as far as that goes, we still haven't gotten last week's highs. i know people are looking at this area in the 50s, 70s as a potential technical hurdle, but banks are doing very well so a lot of the clues you go on to say a lot of the stuff that was in an uptrend, got overdone on the downside on the pullback and is now being brought back. homebuilders are a good example of that. they are rallying today to three and half percent this week, still 9% off of the high. you are in a comfortable zone where it feels like a no brainer after two days up. we will see if it continues. >> critical 72 hour this now looming. mega caps and pce. >> exactly. you want to see if it feeds off of that. it wouldn't be surprising to get a little bit of a back and forth on some of the earnings reactions and not everything goes up at once.

but, yeah, pce if it sets us on the course to say, you know, inflation is not truly re- accelerating, it might be good enough. >> interesting today, diamond talks about unbelievable, that is the word he used, bout the economy. claire dudley we just talked to said they will cut, just not as fast as we thought. >> i think unbelievable if your premise was that we are going to slow appreciation, and that is the premise, that is where forward indicators have led you. but, i think you are talking to percent growth, for pmi, your soft around the edges in terms of services and manufacturing, i think that is okay. and i think what clarida said about the fed's stance is correct, which is that you can't just say the economy is fine, therefore they won't cut. they are looking at inflation. if inflation is where it is right now were slightly better, they are going to look to cut almost as a gesture almost as a statement that says, we know that a quarter point is not a different -- difference between inflation being too hot or too cool. >> phil lebeau, we throw truth

around a lot in big earnings, but this might truly be one for tesla, right? >> and the conference call, that is where the moment of truth will come for tesla. when the numbers come out in a few moments, they have been coming down steadily over the last month. the company is expected to earn $.51 per share, $23.1 billion in revenue but that is not what is going to drive the stock after hours. it is what happens during the analyst's call at 5:30. three things people are looking for. what is the near-term road map? what is the status of the model two? what specifics can elon musk gives us when it comes to the robotaxi? when it comes to guidance when you look at shares of tesla, keep in mind we often get during this report, scott, the guidance for full-year deliveries. do they do that? and if it is, where does it come in? the street is expecting 1.89 million, 1.9 illion deliveries this year, we will find out in a minute if we get that guidance. >> michael sent holy sitting with me here. no, the real question is, has

that move met a throwing in of the tao of the longer-term story? valuation -wise, it hasn't helped very much because earnings estimates keep going down pretty hard. for next year, from 529 two 362 per share, that is from the beginning of the year right now so you are still expensive on 2025 and you don't know where you are going to be. i'm really interested in -- it is well down from here, but the 100 level on the stock is where it went vertical in late 2020. entrance into the s&p 500, that seems like an area of the before times, before we give musk the benefit of the doubt that he was going to cream the future every year. >> rooney, how about visa? what's not forget about that after the bell? >> visa is going to give us the latest calls on consumer management and has used the word "resilient" for the last couple of quarters. wall street is also watching to see if visas travel and restaurant spending can hold up

in high inflation. they said travel is good, cross- border spending is a high market area. the company said any sort of slow down there could indicate less travel spending and guidance is going to be key for the stock. already expects double-digit revenue growth for the year, and street is looking to see whether management reiterates that guide and any sort of commentary on a recent settlement around interchange fees, swipe fees for credit cards, visa-mastercard agreed to a $30 billion settlement to limit those fees. might be something to watch, scott. >> we will be watching this. >> for sure. and the long-term story, the reason visa and mastercard got these generous valuations, it is so automatic in terms of it penitent volumes globally, the movement away from cash to electric. all of these have been in the train for 15 years, so the around the edges questions of

currency, questions from a discover-capital one merger with the smaller network, all of those things matter. but, you have had a lower evaluation just because everything has been grossed on, that evaluation has come in a little bit, so you want to see the reaction. it is a good, very global macro read on overall payment activity without necessarily being about, you know, credit risk and delinquencies because that is not really the game. >> getting out of the credit card business with goldman sachs, of course, jpmorgan, new highs today. so, you said it, the financials are staging a nice move. >> the capital markets side especially within the big financials has done really well, sort of indicating that there has been a thaw and there will be activity. that is all to the good. i also think you have seen with fiserv's move today, sort of long-term attributes, may be getting the starboard -- one of the biggest loser was an sei, the index provider today. so, s&p global and s&p -- in that scenario, you have the bank and the brokers, and the managers, because that is where you have leverage and a market

that seems like it will stay pretty good. >> great day for city, too, great day for the best performing bank. so, we are going to bring it in just a second. [ bell ringing ] the s&p 5067, still settling, of course. we will see you on the other side. we have another close in the green, another more than 1% move higher for the nasdaq as a potential comeback. that is the scorecard on wall street. welcome to "closing bell overtime". i am john ford with morgan brennan. >> tesla with a huge round of reports coming your way, snapping a losing streak today, six-day losing streak, sitting low it's -- near its lowest levels in a year.