getting the nba rights is going to be enough to power that stock. we've got about 25 seconds >> right look they already have the nba rights, and that's -- so, yeah, it's an overhang on the stock. the question is how much do they have to pay to renew those nba rights it's going to be more, which isn't good news for shareholders we'll see if the benefit of getting the nba rights can benefit the cable networks >> got to leave it there thanks, alex appreciate it. thank you for watching "power lunch. >> cloezing bell starts right now. and welcome to "closing bell," everybody i am brian sullivan, in for scott once again and we are live here at the new york stock exchange. we begin this friday, folks, with stocks rallying the major averages now on course for weekly gains, in fact their best gains of the year hard to believe but true investors shaking off another hotter than expected inflation read index on total spending, known as the pce, ticking higher in march. that is pushing wall street's

dream of rate cuts either further out of reach or maybe later in the year. we're going to find out. we've got a great panel to kick things off in the meantime, here is your score card with 60 minutes to go in regulation. green across the board, dow, s&p, and nasdaq up the nasdaq is up 2%. hard to believe but true, nasdaq on pace for its best week of the year in fact, best week since november and we had a huge selloff at one point yesterday. what a turn around my neck hurts from the whiplash. comes of course from what else, big tech microsoft and alphabet moved those names and the markets higher amazon, it is also up ahead of reporting their results. next week. all of this taking us watching and listening in person to our "talk of the tape. is this snap back in stocks here to stay? what a panel eric johnston, kourtney garcia, and brian levitt kourtney, of course, is a cnbc

contributor. thank you all for being here what's your take on this i mean, it's hard to believe best week of the year, and, like, yesterday, we're like, market alert, red across the screen, sirens going off what happened? >> you know, we came into this week with the s&p -- the rsi was about 31, which is proven to be a very good entry point from a short-term perspective >> technical bounce. >> technical bounce. you know, we also had -- if you look at the last two weeks of april -- post-tax day. seasonally the last two weeks are also favorable of course we were looking forward to megacap tech earnings along with the pce and you know the p krerks was something that the market was concerned about. i think one of the things happened today the print -- when you look at it on an absolute basis, we think was a hot print. >> that's what i thought too >> look into the details >> the market doesn't seem to care >> absolutely. >> i thought inflation and the fed were everything. >> i think part of it was

expectations that there was a concern that it could come in even hotter than it came in. and then clearly, obviously, earnings from microsoft and google were clearly a favorable, you know, dynamic. but this was really -- >> can i hit on that point that idea that you bring up that inflation and the fed are everything think about it, though nominal growth is strong, right? growth continues to be good. inflation, a little bit more elevated i'd actually prefer strong, nominal growth and less rate hikes than what everybody was expecting, which is weaker economic growth and more rate hikes. so, we'll have to deal with inflation over time. i do expect it'll continue to moderate but strong growth -- >> let me ask it a different way. i'm out there. i've been on no rate cut island. nobody care what is i think. they can't stop me from saying it do you care if we get any rate cuts this year >> i care most that tightening is over. the conversation that the fed might have to raise rates again,

i am not in that camp. when the market was pricing in six cuts, it was a little out of whack with where the fed was going to be. we're getting closer to alignment. do i care about the timing or the magnitude this year? not really i'm more focused on the fact that over the next couple of years, we're going to be in an easing environment with the -- curve normalizing. that's a good backdrop for risk assets >> i think that's what investors should be focusing on. what you're seeing right now is even though rates are over 5% many corporations readjusted their debt before rates went up in 2022. many households have mortgages under 4% while wages keep going up and the consumer is still strong, that's how we're able to get through this period. >> is the consumer still strong? there's a show at 7:00 it's called "last call." you're welcome any time, all of

you, by the way. we showed how all the consumer stocks -- ulta beauty is down 20% this month walgreens -- they've got a lot of problems -- they're down 18 this month the stock market is acting like they're in trouble maybe they're unique situations. i don't know are you worried at all about the consumer >> i don't think that's happening across the board what's happening is people are affected by inflation. i don't think you can discount that on the flip side, you're seeing airlines and travel is continuing to be strong. >> i think people are still going places, not buying stuff >> which changed during covid. everyone said this is going to be a certain cycle of this it's not the fact that the consumer is in trouble they're just having to decide where those purchases are going. that's why when you're looking to reinvest in the economy, which area is the consumer strong in. you probably are going to see experiences over goods for a little while longer. >> i think the consumer is strong but the consumer is also weakening. so, if you look at savings rate, right, savings rate is 3.5%.

still high, but it's close to the lows since the pandemic. high prices are still eating at the consumer, eating at -- >> they're borrowing nobody -- one point credit card debt -- yields going -- no one seems to care. >> that was all taylor swift tickets. >> that's half of it that's probably not wrong. people are going to at me on the x. but debt of percentage of income, yes, it's low and near all-time lows. but i know people getting something in the mail that says, hi, by the way, we just raised your credit card apr to 24%. >> but the consumers are being helped out by they're fully employed, net worth, right, between home prices, where they are, close to highs, equity prices at the highs, and still have that excess savings that's declining. so, the consumer on an absolute basis is still strong. but i think directionally is what we have to look at, which i

think is important in showing some incremental head winds. >> so, let's bring it back to stocks, which is why i assume i'm here today it's why i've called you all in, to talk about the stock market i mean, yesterday, we had a bad meta number. we had some new inflation concerns and the dow -- i'm not going to say crashing, but down 700 is not nothing. >> right >> right and everybody is kind of sounding the alarm markets, kind of, come back yesterday afternoon. microsoft and alphabet put out a good print last night. and it's like meta never happened maybe it didn't happen it's all in the metaverse. nothing's real >> meta happened people ask when does volatility come to markets. it's almost always the result of policy uncertainty we're grappling with policy uncertainty here, and we should expect some swings but ultimately i come back to the idea that peak inflation, peak interest rates, peak tightening all favor stocks over the subsequent years and that's certainly been the

case since inflation peaked in june 2022 and since the fed was done raising rates -- >> we'll call it wbi, wonky but interesting. do we care about the u.s. dollar it's soaring we should do a show on the japanese yen do we care that the dollar's up? or do we just care that the momentum's there, the stock buyers are there, consumers, to your point, are still there? >> broadly i think those things matter i don't think you can discount the dollar it's going to affect certain areas of the market more so than others we're in this period where profit cycle is starting to ip crease what you're seeing is everybody has been excited about the magnificent set in -- trades 38 -- 495 stocks are trading 17 times markets the rest of the economy is starting to accelerate profits, and i think that's what you want to look at the economy is still strong, consumers are still strong, pocket cycle sideline

increasing so, yes, there are concerns. there's always going to be but i think those things are really what you want >> are we rotating to other areas then like we've talked about -- for six months we've been talking about this rotation into small and mid caps it happened -- we got a little taste of it. it was like -- >> november, december, right >> yeah, here it is. >> well, and think about what -- if you want to think about it from the perspective of the fed, by november, december, the market is thinking rate cuts, normalized rate curve, 10-year at 4, 4.5. that's a very different picture. where you've been this year is pricing out those rate cuts, which has been less favorable to small cap and value. so, i still believe -- and i'm with kourtney on this one -- that you are starting to see some swings. and as the fed eases, when that actually happens, you normalize the yield curve, that should help broaden out the market. >> and small caps really, really need federate cuts, right?

they are rate sensitive. >> they seem to be a lot more rate sensitive we know the mag 7 is not rate sensitive at all nobody seems to get it a.i., tech, whatever now the reverse is happening if you're a small or mid cap enthusiast or you're curious about it, you're looking around, poking around the store, small and mid caps, not yet baby do we need lower rates >> you need the expectation of lower rates. think about november and december, small caps were up you need the expectation that rates are coming down. more recently it's been the expectation that rates are not going to be coming down, which has derailed that. if you believe in the thesis lower rates normalize yield curve. more normal environment finally out of the strange covid world we've created. not that we're not gathering together >> we've got people in masks in new york again for different reasons.

>> we're not a believer in small caps and the reason that the secular trends that we're seeing around whether it be a.i. or even some of the fiscal tail winds are favoring the larger cap companies. small cap is definitely much more levered companies, get hurt by higher rates. if you look at earnings estimates -- i'm looking back the last year or two -- small cap earnings estimates have gotten down. so, they're actually -- >> but that's the consumer that's why i'm confused, right the consumer -- to your point -- go to newark airport right now probably an hour-long line for precheck >> easily. >> which is faster than clearing now. clear, right we've got to figure that out somehow because we're paying anyway, it's packed. and yet small caps apparently aren't benefitting from this bodacious consumer that's where i guess i'm finding the disconnect >> i mean, i think the consumer

strength is really -- it's in pockets. clearly service has been strong. it's even within service restaurants have been on the decline in terms of their same store sales, yet obviously, you know, airlines have been very strong >> texas road house. >> it's been a very mixed picture. and that's been true throughout not just the consumer, but throughout the economy, throughout enterprise spending you're seeing big divergences. and you're seeing that during earnings season where over 50% of the companies have traded down in earnings >> i feel like -- hopefully this is not just going to sound incredibly weird because it's friday and i'm a weird guy, i feel like the stock market is turning into british soccer there's three or four teams that can win every year, nobody else has a chance but the market is just the mag 7 and literally 3,500 stocks just kind of follow along and hope to not get relegated some day you know what i mean does that make sense could we live on a market where

it's just ten stocks and they're all running all these efts hundreds of efts have microsoft and apple, 4 or 500 etfs each just pulling everybody along >> you don't typically sit there with five names representing one-third or more of the index >> that's where we are >> that is where we are. i still categorize it as a bizarre covid environment we're working our way through. we've been in this environment where we've raised rates significantly and made it more difficult forbroader parts of the market and ultimately what it will take is a catalyst, right if we're sitting here in this same environment of high rates that's prohibitive for more of the -- and slow growth overseas. >> we have the fed next week, kourtney, right? so, let's say we get, you know, all of a sudden j. powell takes off that hat or pigeon hat or

whatever it is now and puts on the dove hat and all of a sudden we start hearing powell and others start coming out sounding really dovish rate cuts are likely on the way. do we get a 10% pop in equities? >> i think you see how much that affected equities from the end of october to the end of march that was on the pref sis that the fed was going to be cutting interest rates up to six times this year. second thing, dovish, markets are going to go higher i think it's why they're not going to indicate they're lowering rates sooner. they don't want to put that fuel in the fire and cause the economy to go further just because they're indicating the rates are going to come lower. probably nothing is going to happen next week, but everybody is going to be hinging on the rhetoric they're speaking. >> we've got to remind our audience, it's a global world and we're actually, like, mid point for the world in terms of market this is year. we're doing okay but if you watched my show last night, you would know the best

performing stock market in the world is turkey. italy, ireland they're doing better than we are. and i'm bringing that up because it feels like the entire world is reflating it's not just us this is a global story are there ways to make money around the world, not just here? >> yeah, there is. and a lot of the rest of the world had their own challenges when kourtney talks about how many americans have fixed rate mortgages, that's not the case in other parts of the world. uk, europe, china, you've had weaker economic environments, even recessions in certain parts. so, what you want to see for markets is you want to see things getting better relative to expectations, not necessarily good, better, and you want to see policy support so, in those parts of the world, that's what you're getting >> yeah, i mean, i think the big difference within the u.s. markets around what's happened over the past three months is we've gone from a situation where strong economy, higher stock prices, and the thought

was inflation's coming down and the fed's going to cut six times. now i think reality is setting in that the only way to get inflation to really come down is if the economy slows down. and the idea that we can get rising stock prices, a strong economy, and inflation together sustainably -- >> you want it all you want it all. >> -- at 2% is really just not that realistic and very unlikely to happen. >> it is unlikely. i thought you were saying that's what's going to happen i thought, goldilocks, you want it all >> that could be done. that's part of the rally now it's coming towards the realestic scenario for the market that the only way to get inflation down is going to be from an economy that slows down. so, in that case, they will be cutting for the wrong seasons, whereas for the past four or five months, the thought would be that inflation can come down and they'd be cutting for the right reasons, not because the

economy's slowing. i think it's a huge difference in terms of what's going on in the equity markets today versus what people were thinking two months ago >> eric, thank you brian and kourtney, very quickly, make us smarter that's what you do best. very quickly, what are we watching for next? what's the big thing next on your radar, kourtney >> i think we need to continue to see a strong earnings season and we really need to continue to get more data on inflation. right now it's just in line where we're not going to be raising, we're not going to be lowering >> i'm watching this owners equivalent rent in the consumer price index which of course is a large component of the cpi but nobody actually pays if you look at rents for homes and other indicators, whether it's core logic, whether it's zillow, it's already peaked and come down. the owners equivalent rent has peaked but hasn't come down much i think the consumer price index is overstating where inflation is i don't think we're entering a period of price instability. i'm not as concerned about it as investors are, where we are today this week.

>> i don't know what j. powell, as powerful as he is, can do about car insurance. >> right >> figure that out, let me know. it's going to remain sticky for a while. great conversation thank you all. really appreciate it do not miss cnbc's financial adviser summit featuring courtney garcia. you can scan the qr code on the bottom right of the screen or it's probably easier to go to cnbc.com courtney, thanks for that. let's hand it over to christina partsinevelos. >> let's start with abbvie the company's individual portfolios could be what traders are held up. botox and joouf dern, net revenues were down year over year maybe people are feeling good about their bodies but the overall segment was down 7% as well as the immunology

portfolio. you can see abbvie's shares down almost 5% at this moment res med is trading higher today. the ceo pointed to double digit and revenue posting year-over-year increase of 12% that's why you're seeing shares up almost 19%. brian? >> christina, we'll see you in a few minutes. we're going to take a very, very, very short break up next, alphabet, google's parent company surging, posting a giant beat last night. it's on track to close above 2 trillion for the first time ever how about that big technology's alex can tro wits standing by with his take on the first quarter you're watching "closing bell" and we're back right after this. s and my parents to care for. i'm gonna caddy forever. with empower, i get all my financial questions answered, so i don't have to worry.

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welcome back pretty good friday for the stock market hope you're having a great friday wherever in america you are. everything's green across the board here the nasdaq is up more than 2%, big boost from microsoft and alphabet amazon's also up amazon's earnings are next week. microsoft and alphabet had big numbers last night and in fact, get this, this is like an rbi, we're going to steal it for this show alphabet is headed for its best day since july of 2015 it's on track to close above 2 trillion in market cap for the first time ever. we should call that random but interesting. here now to talk about that and more is alex kantrowitz. $2 trillion day. i thought search was dead. i thought chatgpt was going to kill google search the market begs to differ. >> hasn't yet. everybody is worried about the future for google, but the present looks real good for google as reacceleration in terms of

revenue growth, issued a dividend, offered a stock buyback. -- making trouble inside the company saying, no more, you guys got to get out. all of a sudden the narrative around apple -- around alphabet starting to shift. people starting to say, this company remains strong those worries might come into play but they're not happening immediately. now we're looking at it, $2 trillion. >> truly is. the radio folks, alphabet, google, is up 10% right now, just a monster move. going back nine and a half years. best say since it did feel like you see all these things that are happening at the company and people are like, oh, gemini's got these weird search results and it's gotten too whatever. pichai laying down the hammer. it's a place of work you do work or you go somewhere else it feels like that did have a market shift almost. >> definitely. he had to change the story and i

think he understood that he fired the employees that had taken over -- it's not like they were hanging out in the cafeteria. they literally took over people's offices and the job is not to be paid to take over people's offices you have to do your work if you're going to occupy the cloud ceo's office, you've got to go. and i think in the past they had tolerated some of these protests and now he realized, listen, everyone is looking at us as a laggard. >> best days are behind you. forget about it. >> and unless that was turned around, it was going to be trouble for google the narrative has shifted. the hammer has come down he's written a memo saying, mission first. it's too important to be distracted and delivering these impressive results. their profit grew by 30%, 37%. >> i mean, apple, apple's having a great week apple's having i think also its best week of the year. but it was very shaky to begin the year don't hear a lot about apple

leadership, apple management haven't seen a lot of tim cook lately what are you hearing around apple? >> i think it's going to have a rough quarter. >> you do? >> yes, i do if you look at the independent analysis, iphone shipments might be down 9% samsung might be taking the leadership role. these are real problems for apple. iphone's sinking you have chinese competition >> down 10% possibly >> that's what happens -- >> that's a huge -- that's a monster number >> if it's true. >> just a report but ibc is good. >> they are. and this has happened before it happened in the aftermath of covid, mid-covid they need positive momentum. we have wwdc coming up in june, where they're expected to make a.i. announcements and i'm real bullish on those announcements. but the company has to report earnings next week revenue has declined four out of the five or five of the last six quarters and they need something positive

to tell wall street. i don't know if we're going to get it next week >> you can see the chart there the very far right, the bottom right, that's this week in that little upturn. but overall, stock is well down from its levels in late january. >> by the way, that might end up being a good thing for them. we saw it with tesla, down so much, a little bit of good news, the stock pops the earnings even though they miss unlike apple and meta and others that have had so much of a run-up this year that they've been unable to sustain the expectations, apple may be able to weather this one. >> very quickly, i'm not going to ask you about tesla if you're not prepped. but tesla stock is down a little bit right now. one of their main guys who's been there 18 years, the head of power train was his title. last night -- i don't know if you saw it -- sold all of his stock. 190 million. he left the company and sold every single dime. when an executive sells everything they own -- not some of what they own you want to buy a boat

get it sold it all. you take anything away from that >> i just think it's tesla, right? when you work for elon musk, this type of stuff happens nobody really leaves -- if you're that senior, nobody really leaves on great terms with elon. that's the way he works. people at the top ranks get fired, get replaced immediately, or leave on bad terms. it is a meat grinder inside tesla. they push people so hard and that's part of the reason they're able to do as good as they have. you anger the top executives, they leave, they sell stock, you're not going to feel great about holding stock in a company. i'm not saying that's what's happening in this situation -- >> it's a macro take i work for a company -- i was there a long time, gave resignation, you're out the door in five minutes. no good-bye party, thanks, you're no longer an employee, time to go and by the way, the guy got super rich $190 million in stock, i hope one day to have that problem great stuff.

thank you. >> thanks for having me. up next, trading, turbulence, john is here breaking down the charts revealing where he sees the s&p headed after what was a great week for the index plus, if he thinks further down side might be ahead and what you need to be wchating for in the charts, john coal voes on "closing bell" next. ameritrade is now part of schwab. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim:

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all right. welcome back stocks, the market, your money, whatever, looking to end the week on a high note. the s&p and the nasdaq, hard to believe, on pace for their best weeks of the year. even with yesterday's big drop and the first half of trading we ended lower. the nasdaq and s&p are actually on pace for their best week since november wow. all right. so, does that mean that any risk to this rally is officially over what are the charts telling us we just talked the fundamentals earlier. let's go to the charts and ask john kolovos he is here at post nine. all right. you got three charts first one i'm looking at here -- i'm no chartist, but i can eyeball it corrective pullback with risk to 4,800. what are you looking at? >> this is not a bear market this is a correction within an uptrend. the way i'm looking at it is the s&p is going to rally to a 50-day moving average, falter a

bit, and make an undercut low below the april 19th low ultimately, i do think they could -- there's risk to 4,800, which is where the 200-day moving average resides that's called an abc decline a down, b oversold rally, c washes you out >> are we b? >> we are b. >> one of our guests earlier mentioned rsi and relative strength index and how it's down it's interesting >> there is a risk with this pullback, right? it should be run of the mill it should be washing out sentiment extremes it should be a seasonal thing. an oversold condition the way we currently have say little bit too deep where i would almost deem it a bad oversold and that's dependent on -- or as a result of -- this heightened macro uncertainty that we have >> so, support would be 4,800. >> correct >> say you're right, chart's correct, we go down that, hit 4,800, is they sign to buy

is that a bounce >> yes >> or do we need to wait to see if it holds? >> all else equal, you buy here. the risk is the 10-year yield breaks about 5% and the charts are still pointing higher. >> it's not impossible >> exactly you break that, and we're looking at 4,500 for the s&p which would be a proper bear market >> it's important? a lot of people semipaying attention, driving, listening on the radio, which we love, by the way, you too if we break below 4,800 or if the 10-year goes above 5%, you think we could go as low as 4,500? >> correct that's exactly right and what it will do is increase implied volatility across all asset classes. it just won't be vet spiking it will be fixed incoming spiking. it will be currency spiking. when that happens the odds of a left tail event increasingly, almost a four fold >> what is a left tail event

>> a left tail event call it a minicrash. >> okay. >> that would be the risk if that were to happen. what we need to see to avert that, keep the 10-year under five, keep oil under 90, keep old under -- keep bitcoin above 60,000 you keep that -- >> bitcoin above 60? >> 60,000. keep it above that level this should just be a run of the mill -- >> isn't it interesting how the yeerd and the 10-year is -- who's leading who? who's walking who? oil or bond yields >> that's what was bothering me all this year was the hawkish macro trends staring us in the charts yield going up all year, and they're all of a sudden the hot cpi print came out and everyone goes, wait a second. this is important, right it's all been about rising inflation expectations this year but now there was a rug poll >> i don't want to sit here and brag if you watch my show, i'm a

former commodities a long time ago. i do oil and everything. i was showing viewers for months, coppers up, oil's up, aluminum is up and they're shocked when we get -- a lot of food is up and everyone is like, what, what folks, watch the crb index you're welcome >> that's the thing though if you're going to break the s&p, you've got to break the ones that matter most. >> they're breaking higher >> but it's becoming more bifurcated semis look about done for collection but softwares aren't. >> one of the reasons i love looking at energy and particular oil is oil is global barrel of oil for the most part is the same in russia, india, brazil, louisiana, it doesn't matter it just varies on quality of the crude oil. macro uncertainty index. now, we're low if i were to do a median there, which i think that's what that dotted line is, we are below that >> right >> but we got a pretty messy

situa situation in gaza. we've got iran poking around we've got domestic stuff going on if this goes higher, does this whack the market >> the raw figure of this has given us the signal already. from a simple buy and hold standpoint, you want to be out of the market when that signal gets above that median >> and we're close we're not there yet. we can throw it back up there, that dotted line, that macro uncertainty index, kind of a sharp spike. by the way, i'm surprised honestly it's not higher given everything that's going on i don't need to tell people what's going on. it's friday. i don't want to do bad news. >> i don't want to get too bearish either to be honest with you, being the commodity guy, i do think oil over time will be north of 100 and 120, and i think that will put the s&p into a proper bear market i think threading the needle to get there, just not yet. >> you think oil is going above 100. >> right >> if i knew where oil was

going, i'd be richer than i am now and i'd quit this job and go be john arnold's assistant or something like that. it's ticking up. >> it is >> john kolovos, great stuff great charts loved it learned a lot. john, thank you. up next on "closing bell," we're going to track the biggest movers in the market i have a feeling, kristina, i'm going to say alphabet. i'm just throwing it out there >> i'm not going to state the obvious, and i'm going to say investors losing patience with one chip company and sales are soaring at one shoe company. can you guess which one? the hint, snoop dogg i'll have the answer next.

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welcome back the aforementioned kristina partsinevelos is here, and she promises that these are not the usual -- these are not the usual suspects what are you looking at? >> there's one usual suspect in there, but it doesn't get as much attention as the tech names you talked about i'll say i'm winning in this category intel failing to impress investors and promised that the second half of the year would be better shares are down 9% today, down 33% on the year. underperforming is a great barometer for semiconductors as a whole. bernstein calling the company,

quote, profoundly broken even as intel management called for a bottom last quarter, shares down 9% did you guess the shoe company, brian? skechers, much better shares, all time high after record quarter earnings up 13% year over year driven by the direct to consumer sales channel, which has higher margins that wholesaler. q2 driven by an international expansion in europe. i bet also those snoop dogg sketcher ads were helping. during the commercial break you should have seen me because i was just playing snoop dogg songs? >> which one >> well, "drop it like it's hot" and i can't say because we're not alllegally allowed to say anything but sipping on gin and juice >> they'll appreciate you from the hard streets

kristina partsinevelos, thank you very much. still ahead, knee you know shares hh daigtoy. we're going to tell you what is behind the pop and how the rest of the ev makers are you've got 15 more minutes of me, folks. lucky you. we're back after this.

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welcome back tonight on "last call" do not miss kyle bass i'm not going to miss the show i will tune in for that

interview. kyle bass, 7:00 p.m. pacific, 4:00 p.m. eastern time, talk about the markets, maybe a little bit about the dollar. hit me up on twitter let me know what you want to talk about coming up on "closing bell," snap shares surging. i actually got that out. she sells seashells or ocis uing. stk p 28%. we kaukt up with the ceo, evan spiegel. those comments and more when we take you inside, what else, the markets. with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization. and track market trends with up-to-the-minute news and insights. trade brilliantly with schwab.

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learn more about a brighter way to invest in gold at sandstormgold.com. so this is pickleball? it's basically tennis for babies, but for adults. it should be called wiffle tennis. pickle! 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. all right. we are now in the "closing bell" "market zone."

here to break down the crucial moments of the day julia boorstin on snap's best day in more than two years ed, we're going to start with you. you guys do this crowd sentiment index. it had its third longest run of all time it was topped out until this week evidently it called the market correctly. what are you seeing now? >> so, what the composite is, it's seven different indicators, like polls of individual and institutional investors. so, it was very high we call it the excessive optimism zone, for about 20 weeks. and the challenge for sentiment is that it can stay high for a long time so you never really know until it starts to reverse. that's what happened this week on the recent pullback actually it signalled last week to be kept -- when you look at previous periods, when you've been in this optimism zone for a while, it doesn't mean a major market top necessarily. what it means is for the next

couple or three months gains are mixed to a little bit weak, and we just need to maybe take a pause here while we work off some of the exuberance that had gotten in the market after what was a historic run for five months a 24% gain over five months is practically unheard of >> put that into context i said third longest again, i'm not sure that told the whole story of how strong or how crowded this market had been >> look at some of the other ones the longest one was -- ended at the end of 2021, when you went into a bear market in 2022 the other one was the one that ended in early 2018. and what happened then we had vol ma ged don, if you remember that. there was mixed effs that had gotten overrun when that broke, you had a 10% pullback in the market and right now there are actually quite a few etfs out there that

do similar things. when volatility breaks to the upside that could be something to keep an eye on as well for maybe a pullback return or something a little bit more than that just because all the derivatives out there, when they start working against you, it can be violent >> what's next what are you looking for next in the market, ed what's the next big signal >> so, i think we really need to focus on earnings because the fed story has pretty much played out. if you look at what happened historically when the fed has raised rates quickly like the market priced in the beginning of the year, the market has actually done poorly when the fed has cut rates slowly like the market is priced in now. the market does pretty well. but that story's already priced in now it's about earnings. can companies actually produce the expectations that the market has put upon them? and it looks like early in this earnings season they've done that over 83% of companies that have

reported have beaten expectations that's a pretty high number. we'll see if they can continue to do so it's going to be about earnings in 2024 coming through that's going to determine how strong this market is. >> there you go. great stuff. thank you very much. now let's talk about snap. julia boorstin, did i read that right or am i slowly going crazy. is snap having its best day in two years? >> that's right. snap shares are now up about 28% today, better than expected results and guidance reported after the bell yesterday now action for the first time, the company issued a full year expense outlook, which shows stabilizing expense growth, this driving a number of upgrades and positive analyst notes though are a little bit more cautious wells fargo saying snap is showing signs of progress but they, quote, likely need solid quarters to rebuild confidence in the snap recovery story i spoke to snap ceo evan spiegel earlier today on "money movers." here's what he said about

advertising demand >> businesses are using digital advertising to really efficiently drive more demand. and i think, you know, overall, the economy has remained healthy. the consumer has remained confident and still spending i think it's a constructive backdrop for the advertising business >> spiegel also stressed how the company's investments in a.i. for content recommendation as well as advertising are paying off with these better results in the quarter. brian? >> all right julia boorstin, big day there at snap huge day thank you. let's get down to phil lebeau phil, neo, the big chinese-owned ev maker, what's going on there and what's happening in the whole space? >> you've got the beijing auto show going on right now. this is the time companies make announcements regarding new models that's the reason shares of nio got a bit of a pop today, moving up more than 8%.

specifically the company is going to introduce a lower priced more affordable electric suv. they're look to come in under the model y. conversion price about $35,000 this is going to be sold in china. let's make it clear. this is not going to be sold anywhere else but china at this point. as you take a look at shares of nio and x paying x announcing it's going to be rolling out a more affordably priced suv this is what we're seeing, brian, the continuation of what has happened for some time chinese auto makers continuing to cut prices. and because of that, you see further pressure on anybody in the ev space in that country >> is there any clear indication -- if you've said this in the past, i'm sure you have, i apologize -- of when we might start to see some of these or the byds or whatever on u.s. roads? >> no indication look, if they want to try to sell over here, they could

easily do that they would have to pay the 25% tariff to sell them over here in the united states. they're not feeling comfortable about the situation at this point for a lot of different reasons. so, there's no indication when that will happen the expectation, though, brian, is some time within the next five years, you will start to see chinese autos sold here in the united states. >> crazy the tariffs? i mean, it seems to me, phil, that that's going to be an epic fight. we talk a lot about the president and the uaw and union support and these cars these cars are scaring a lot of people >> yeah. they're coming look, and it's not just evs, brian. i know we like to talk about evs on cnbc. look at the internal combustion engine market. that's where the chinese are flooding the world with cheaper vehicles that's where the real impact is happening right now. >> that's a great point. i know you're right. we do talk a lot -- that's the future, phil we're supposed to talk about the future, not the past phil lebeau -- combustion

engines, folks, they still exist. phil lebeau. we've got about 25 seconds kind of random but interesting got a company going public here today. gcts, which is a semiconductor company. and i come in and my buddy is up there, jeff tudor, on the board of the company shoutout to -- kelly around the corner that's it. see you tonight. john and morgan up now [ bell tolling ] >> strong results from microsoft and alphabet, sending the nasdaq soaring today and helping push the nasdaq and the s&p 500 to their best weeks of the year bet you didn't see that coming and alphabet just closed above $2 trillion in market cap for the first time ever. that's the scorecard on wall street but the action is just getting started. welcome to "closing bell overtime." i'm morgan brennan >> intel sitting out this