they had the passover walton. >> it could've been chat gtp. that would've been a clever pick . >> clever but there's also a war in the middle east. many things if they want to be high-minded to go but taylor swift is very powerful. >> it's her world and we are just living in it. thank you for watching "power lunch". >> "closing bell" starts now. welcome to "closing bell" . i'm scott wapner. we begin with the best versus the rest pick the best being big tech which has rallied the most of this year. the rest, that's all that house and picked the question is a lasting rotation underway to those once unloved areas? we ask our experts over this final stretch. your scorecard was 60 minutes to go in regulation looks like this. the russell is waiting today. caps see a bounce back and

the nasdaq is a modestly were despite apple hanging around $3 trillion in market cap again took interest rates are falling again. labor costs falling. adp employment coming down below expectations that's what we're watching. the two year note yield is higher than anything else is down. the talk of the tape. whether that is real and if it's time to turn your portfolio upside down as the new year approaches but let's ask liz young, sofi head of investment strategy. nice to see you. it feels like it's a conversation trying to gauge whether this is legit. whether these unloved areas that have bounced a lot since november will keep going at the expense of maybe make a cap tech? >> rotation is natural after we've seen such bifurcation and such a big group of laggards in the market all year. and were at a place where i think bullish sentiment is at the top. i don't know that we can get much more bullish but the spread between bullish and

bearish sentiment in the aaii surveys is huge. i don't think we can get that much more optimistic. now investors instead of taking money out of the equity market are looking for other places to deploy at. some of the things happening today that are confusing come and i have this theme of rafting contradictions for next year, is you have the story of oil down so much, yet some of the cyclical sectors are rallying. there is this contradiction between if oil is down on the heels of supply cuts, yet we have cyclical sectors rallying in the stock market doesn't agree. there's still something going on that isn't quite making sense. then you have small caps doing okay but the indexes themselves are mixed on a date with the 10 year yield is down but the theme today is not clear. >> you think people are the positive? i feel like there is so much negativity. people are almost afraid to decide, okay, maybe the fed will pull this off.

maybe we have a soft landing and inflation will continue to come down and maybe the economy will hang in there despite signs that it's weakening and we just don't know to the degree in which it will continue to do that. >> i think there have been a lot of people that have jumped over the fence into that more positive territory. and maybe it's more along the lines of there were so many that were positive, myself included. i felt sure that we would find out this year whether or not we would have a recession and there were a lot of people that felt the same way. the fact that we did not and inflation has come down so quickly but other things have held up so much has, convinced people that maybe there is more of a possibility of this soft landing idea than before. >> and you're not fully on the bullish boats, right? you have been relet to move more aggressively in that direction. what's been holding you back? >> because there indicators i can't ignore. i am absolutely aware and i fully recognize the market is telling us cyclical's are doing

okay. the economy is doing okay. even economic data in many cases is telling us we are doing okay. but the cooling is here and there are still signals out there that are worrisome. the yield curve and versions are worrisome. some of the behavior in yields is worrisome and the fact that we've got companies expecting really strong earnings next year already at 19 times of multiples on the s&p but i don't know how much further there is to run. think about that idea in particular. if earnings go up next year and the stock market stays where it is, that takes care of the malta problem. we will have pe come down but that doesn't make the market look that attractive from here it was difficult for me to jump on the bullish bandwagon, especially in the face of what's going on in the rates market we have fed cuts being pulled more forward. >> what happens -- let show the

tenure if we could. it's been a remarkable drop from 5%. what happens if it continues to move in this direction and goes at or below 4%? what does that do to the narrative? what does that do to sentiment? there may be some who suggest it's going in that direction because the economy is weakening. others will say, it's coming down because inflation is coming down and the fed will cut. it's going down for the right reasons? payment i think they're both right. if you remember what happened when we got the jobs data november 3rd, the weaker jobs report and we saw yields plummet. we saw yields plummet again when we got the cpi report. two big data releases. jobs on friday this week and cpi next week. obviously ahead of the fed picketed think yields will continue to come down if we seek kohler data. at some point, i don't know that it will be this year. at some point yields will come down quickly that it does scare markets and investors. that is natural.

if yields are plummeting and moving really fast, it's not necessarily about the direction they are moving. is the velocity they're moving and that starts to people. treasury yield should not see the volatility we've had in 2023? payment do you think one of the reasons the market has been digesting these games that we had in november, is that because there really hasn't been anything to move the market all that much until you get to the jobs report, as you said come on friday and then you get more data heading into the fed next week? and even then they're not expected to do anything. i suppose we will be hanging on every single word, the tone and the inflection of the fed chair, as we always do. >> we will. and i think this time we will be looking for a message shift. not necessarily an announcement there done with hikes. were not looking for an announcement they will start cutting but were looking for that tone shift of are they

satisfied? and if they start to signal they are satisfied with the pace of economic data, i think that supports markets through year-end. >> it seems like we are waiting for more information. we want to believe the story, but we need more confirmation to convince ourselves. and maybe that is to your point. jobs report on friday. another cpi that looks good, like the last one that set this whole thing off in the first place. keith lerner joins us, truest advisory service in the co- chief investment officer. good to see you. you have been more positive of late for sure. what now? where do we go from here and why do we go where we think we will? >> well, great to be with you. it's been a quick market change from when we spoke at the end of october. at the end of october we were on you that friday when the market found the low and we set it was a buying opportunity. we said small caps were down 17% and we think -- we seen

that play out at the headline level. they been digesting it. under the surface was see this rotation. i still think we can squeeze higher here. that small cap trade policy has to go. we were on a one year basis trailing the large-cap market by 20%. the most since 2020 and the relative valuation is the cheapest since 1999. i think there's more to go. as we get into 2020 for the set up is different than heading into last year meaning last year in december the market corrected 7% or 8%. parish this was pervasive in the charette a 13% ramp-up in the market and we see sentiment shift a bit. i think we still have further gains this year. i think we move into the new year and have a choppy year period, which is consistent with what tends to happen during an election year we

attend to chop around the beginning of the air before making further gains? >> you think the rotation is real? and i mean real in terms of not just another two or three weeks or a few days. it carries on and you actually see a meaningful rotation where it is prudent right now to start looking at those areas, even if it means -- and this is the key -- even if it means taking some profits out of mega cap tech. >> i have better conviction in saying the distance between the mega cap stocks in the small- cap stocks will compress significantly. we are still avoiding large caps but as you move into next year, the large-cap stocks, if you look at the s&p, the top 10 stocks accounted for about 80% of the gains. that is a record of the last 30 years and unlikely to continue. as you move into next you want to hedge their risk by having large-cap exposure but you want

small-cap exposure and exposure to the await. this is a big turn for small caps. i'm not there yet, to be frank with you but i do think it makes sense to have exposure to those areas. and i still think the u.s. and small caps look better at the national emerging markets, >> such a great debate that people are having and we've had it on this program and on half time. i've had it on stages with notable guests at conferences that our network has had. john rogers, famous value investor says mega cap stocks are coming down and a renaissance for value investors are going to go up. then brad comes on, known as a famous tech investor and says it's not rocket science. this is where the growth is. it's where the growth will be. it's where the trend is and it won't stop anytime soon.

>> the intention of equities in a portfolio is to produce growth. i would imagine that people will look for growth in the places they can find it. i want to go back to the conversation with keith a little bit. the tipping point when you're asking about is this rally real . the tipping point is if we get people starting to take money out of treasuries and that of money markets and put it into the equity market, a rational investor would start doing that when they stop making as much in a coupon or whatever the interest rate is in those instruments and put it back into stocks because that's where you can earn more and where you have more capital appreciation opportunity. people won't do that if they are nervous. treasury yields are dropping, even if they get low and it's no longer attractive to get that yield, if they are nervous and dropping for the wrong reason, they won't take the money out and put it back into the equity market. if they are dropping for good reasons and it makes more sense to put money into stocks and find more opportunity there,

that's what makes the rally durable. at this point the same money is just moving around in the equity market. >> but move, to you, it looks more overdone? the buying of bombs or the buying of stocks? >> buying of sparks -- stocks. hands down. stocks right now -- this is my opinion. i think they are pricing in a normalization of rates next year. the idea that that can do it because they want to and not because they have to. but also pricing in pretty good earnings growth. almost a steady state of gdp growth. and a pending consumer that keeps on spending. and i don't think all of that will continue at this same clip. >> so you think you're still going to get money going into bonds, but you are wrong reasons person. that's why you think it, right? that's what you would think it's not overtime to pick you will get my money going in because as the economy worsens people will get more, worried, and continue to buy bonds. >> yes. and the reason i think that is

we shifted our focus from inflation onto the labor market. this is a big week for labor data. we have adp below expectations and jolts below expectations recognizing jolts is way above really were pre-pandemic. but things are coming and cooler and the market is liked it so far. we get that job stayed on friday. right beneath 4% unemployment rate. i'm willing to bet that as a goes above 4%, if it goes above 4%, people will start to get jittery. that's a number we have been seen in the hand that we haven't seen in a long time. the problem with the unemployment rate is it starts to gain velocity as it rises and we've had this really tiny turn in the unemployment rate. as it does that it usually starts slowly but gains velocity on the upside and that's what i'm concerned with >> what is the probability, do you think, next year of a, so- called, everything rally? stocks go up and bonds continue to go up and gold continues to go up? that coin continues to go up?

take oil out because oil is below $70 and it seems to be trending in one direction and one direction only. famous last words until it reverses but you know my point. >> yeah. it's a hard question to answer. it's an election year and it tends to be a choppy her. back. we will have 40 elections around the globe with this delicate balance of what the fed is trying to maneuver between a soft landing in a recession. i think it will be difficult for everything to go up. and you talked about our bonds or stocks overdone. removing the same way. look at the bond market come in the up about 11%, almost in line with stocks so they're moving somewhere together. when you look at the 10 year, we've had four times over the last 18 months where we move down about 80 basis points. closer to 4% or below 4%, i think you seek more stability

and it will be a market next year with technical opportunities, but i don't think i will be in every market. it will be a selective market and you could see periods of time where stocks will be up 10% to 15% and others down 10 or 15% picked this year was a diptych dealt time for active managers. i think you'll have a more fertile environment. >> don't you think, ways, if stocks can't maintain some sort of reasonable pace and yields continue to come down because inflation continues to come down, why would somebody stay in a money market where you are not getting near 5% anymore, but you may get better than that in stocks. you don't get a rotation other mega cap into these other areas of the market. loved or unloved, hot to not whatever. you just get it from cash. was the probability of that? >> that would be the soft landing probability. that will not be my base case

but the idea that supports their being a continued rally for continued catch-up from the laggards. if you're deploying fresh cash into the market, you are looking for things that are priced attractively. the things priced attractively, especially if are inching toward a scenario where people think we averted recession, those will be things like small caps and cyclicals. looking at financials? some of the sectors we've been waiting on because we know there are problems but it has been confirmed there will be a bigger problem but that's what i think you see the cash being deployed to. >> you don't we see that already? so the nasdaq has underperformed lately but still up 5% in a month. stocks like apple has had such a great rebound and back about $3 trillion or about there right now in market cap i find it hard to believe nvidia is $450. i find it hard to believe that money will just come out of these names. >> i don't think it would come out. i think they hold steady. i don't think they will be the

runaway winners next year if that's the case. we have the soft landing and overt recession. i don't think tech would be the runaway minute. it doesn't mean they would lose money but it would be more attractive to put new, fresh capital into more attractively valued sect yours. >> keith, on that same question. >> i don't think it's time to give up on tech yet tech out earned into the market and it strong. i think you stick with a large caps. you want more small caps than a year ago and be patient. be patient for the rotation as opposed to trying to press that it's happening now. i would say i would not give up on big tech yet. >> you set your alarm you thought the segment would be over at 3:16 and not 3:17? >> i do not know you would give me on this long but i appreciate the extra time. >> the alarm goes off i need to call you off. keith, thank you. liz, thank you.

let's get a check on top stocks to watch. steve is with us today for that. >> plug power and blue energy are under pressure as morgan stanley issues a downbeat forecast for the fuel cell industry analyst say rising rates in renewable electricity prices are creating poor economics and uncertain futures for the companies. as a result their cutting price targets for both stocks and avis budget is jumping after the car rental giant announced a special cash dividend of $10 per share. the company says it plans to continue buying back stock through the end of the year pictures up roughly 60% year to date outpacing hertz, which is down 40% so far this year. steve kovach,. just getting started. amd holding its big a.i. event this afternoon. we break down the new announcements they have and how it's impacting the stock, the chip wars and everything else with stacy rask on after this break. my from the new york stock exchange. you are watching "closing bell"

on cnbc. what do you see on the horizon? uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today.

all right. 60 seconds to draw the perfect gift. what's it gonna be? a bottle of don julio, 1942, delivered. delivered with drizly. gifting without the guessing. drizly. together, we built something truly beautiful. it takes years of dedication to get to this milestone. the new york stock exchange is a symbol of what america is all about the potential of an american dream. it is day one. a lot of work has happened to lead to this historic moment. the only way you can move a society forward

is a true expression of freedom. ♪♪

down today at the company announces a new a.i. chip at their advancing a.i. event this afternoon. let's bring in stacy rasgon to discuss . good to see you. why is the stock down? >> it was fine as it was, i think. they announced the products and have some interesting benchmarks and partner announcements. i don't think anything was unexpected from what we heard. and you have a classical selden's event.

that's all. it was fine for what it was. >> the bottom line is how quickly they can produce the use , and how quickly they can better compete with nvidia, and/or others. how would you answer that? >> they already gave us numbers for what they expected revenues to be next year. he said more than 2 billion dollars is not a big number. if nvidia does $70 billion in data center revenues, that will be viewed as disappointed. $2 billion or even $3 billion is a rounding error in that sense. i think that's part of the reason amd stock has been strong. for nvidia, people are worried about in your pocket and the numbers are so big it can be sustainable. with amd the numbers are not enormous but they can probably make them and that's why the stock is been okay. in the grand scheme of things, it's not a big number relative to where the market seems to be going. this was the biggest, nvidia

took the forecast for long-term prospects for the aix ohlinger industry. in 2027 they were saying $150 billion another saying $400 billion. who knows? but if it's anywhere close, it will be bullish for amd but probably everyone in the oka system if the market will be that big. we already know what amd will ship next year. they did not really give us any color changes. not that anyone expected it but they give the number a few weeks ago anyway. >> you're confident they have the capacity to do what they say? >> they said more than two. $2 billion by itself was reasonably disappointing. i think the bowls and amd were higher than that but if it's any more than two, again, if

they did three or four, look at the supply chain checks and assuming the orders are real, you could get numbers like that. but in the grand scheme for the overall market is going, it's very small. that's not great because it's small but also good because it gives you more confidence they can get there. >> will buy these? s -- i guess i asked in the context of will customers already in relationships with nvidia or had planned to buy nvidia chips, are they going to also buy amd chips? >> the hyperscalers well. they had some partner announcing. they had microsoft and oracle and mehta and those guys will buy both and deploy both. i think it's a question it magnitude and degree. you can buy nvidia and amd and deploy both pick the difference in scale between the two will be massive. we don't know what the underside -- enterprise things. they will have platforms they will be offering to enterprise customers and it remains to be seen how much demand there may be from the enterprise right now you have to remember there is demand for these things in

part because there is demand for this in general and there aren't enough to go around. right now you're probably exploring anything you can because there aren't enough hopper chips and everything to buy. i also suspect -- you don't want to have a single source for anything. if you are a customer you like to have something else in your pocket across from jensen and nvidia and negotiating. there's an aspect of that. nvidia, given the magnitude and the dollars we see, nvidia is in the drivers seat. amd is a piece of this book is a thesis on amd that i have sympathy for that set the opportunity is so big that even as they get the dribs and drabs, it's enough. it's $100 billion and they get 5%. this may be some validity to that. but it also suggests there are other players in the ecosystem likely to get more than that. that's where amd is right now. >> lastly, broad, report tomorrow. what does this mean for it?

>> on the a.i. side broad, do networking and amd had brought come on stage with them talking about ethernet and opening their infinity fabric and brought come will supported. brought come does hyper chips for google in particular and that's been a strong driver of revenue growth and also next year. i suspect people are nervous about the core business like cisco and others who do networking. the math suggests for the quarter they are about to report, broadcom is implicitly cutting for this quarter the a.i. non-wireless business, probably down double digits secretly already. a.i. is bridging the gap. i suspect a.i. revenue will be stronger next quarter. and the important thing people are looking at is vmware. if they close the deal it's accretive and they will guide with vmware and the numbers for next year.

i suspect regardless numbers will go up and that may be enough for broadcom. >> and lastly to tease an interview coming up because christine will speak with lisa at 4:30. what's the most important thing you think you need to hear from her? as you assess what all of this will mean. you think you know. what does she need to say to you? >> we got some of this. we saw some of the partner announcements and that's most of what i was for today. he was up on stage with them? i don't think it was unexpected but they had microsoft and others up there so that's good. ultimately we want to see what the trajectory is and where are the orders and who is buying and how much are they buying and can they upside? we won't know that today. i doubt she will say anything about that this afternoon. through the next several quarters, that's what people want to know. hubby can this be and how much share can they get and that something they will have to deliver on for the next several quarters and for next year. >> thank you for giving us the rundown and what you think lies ahead. thank you.

that is stacy rasgon joining us. looking beyond the magnificent seven . we are back . a winning strategy is outside of thame ct gaap and she will breakdown the 2024 playbook after the break. "closing bell" will be right back.

we are back with "closing bell". value has been outperforming with the group coming up it's best month in a year. my next guest says 2024 will be a year for the growth trade that investors should be looking beyond the mega caps joining me is ankur crawford. welcome back . this is beyond, not instead of the mega cap trade, right? >> it's beyond and not instead of. 2023 was what i call a discovery here. we discovered jen a.i. and the mega caps ended up having these discovery-type moves in which they were the drivers of this trade. but now they've been discovered

so there is still earnings growth ahead. evaluations we don't think are ridiculously stretched, in part because the numbers have come up so much through the course of the year. however, we have to see a market that is broader than just the mac seven. >> you think there seven will have a good 2024? what do you think the returns will be? they don't need to be 20% or higher for each stock, but are the ones you still think have more upside than others based on what you own? >> i think there is going to be a bifurcation in the max seven, i.e. microsoft that has a definitive a.i. growth driver behind it right now. can we start to monetize copilot or nvidia. and might i say a measly 20

multiple. >> it is less than it was. >> that is less than it was. those stocks can work. meta has definitive product cycle drivers were google is unclear. what you end up seeing is a bifurcation in the mag seven. we talk about it being a stock pickers market. it will be a stock pickers market even and sign that mag seven group. >> let's talk about the beyond stocks. quanta. why do you like it? >> before we talk about quanta. one important thing. amd got on stage. >> we just talked about that with stacy rasgon. >> one of the things lisa su said is the accelerated data center markets will go to $400 billion in 2027 , 70% kegger. that is a huge positive for a company like quanta services. if think about the data center architecture as we add more and more gpu compute, it's highly power intensive and there's more

parts of our country that don't have enough electricity to accommodate these big data centers anymore so we will have a huge capex belle brickley think $160 billion of capex from utilities. that goes to $200 billion by 2028 to '29. quanta services is the beneficiary of that as the build the tnd. inverted also in a beneficiary that is changing data center markets work the architecture is being revamped. they are a parent management and thermal management company and you have an environment where these cpus run really hot and you need to change the way they are pulling. this is a key player in that market. we are gaining share and growing content. >> 24 times a look at their eem. i don't know what the historical averages on a stock

like this but how would you assess that? >> we don't think it's a 24 multiple. within the guidance they have given has been conservative and if you look at pw are back love, the backlog but imply a much higher birth rate. they have a 30% backlog into the end of the year for 2024. that has to translate to revenue and it's not going to be at the rate the street has picks beaming you're talking about pw are and not vertiv? >> i was talking about pw are. >> for vertiv, dave given a percent to 11% growth range the next few years . with think that is conservative in part because the data center market will accelerate at a rate that will surprise people experiment what is your broader market? do you have one for next year or what you think is likely to happen? are you more on the bullish side? >> i think next year is going to be tougher than it was in

2023. and in part because it's an election year. election years always bring a lot of uncertainty. the consumer, you know, it's hard to tell what way the consumer will break. will consumer break or will it hold to be resilient? and i think that question is still out there. we don't really know. we keep pushing out this recession. does it get pushed out to the end of 2024 as we go into the election? i think it's not going to be an easy year. >> this year wasn't an easy year. anything but. it looks easy if you don't know anything under the service you look at the returns and you like, stocks have had a great year but they really haven't outside of the seven. as of late they've looked better but you know my point. >> it felt easier, i think, then 2024 will be, especially if you pick the right stocks?

>> no wonder why you feel like that. i forgot all the stocks you own. microsoft and nvidia. >> but next year will be a different regime and it will become more of a stock pickers market. we need to find that needle in the haystack. and you need to be agile and you're thinking because the data will dictate the correction of the market >> thank you or being back here. that is ankur crawford. next we are tracking the biggest movers as we head to the closed pick steve kovach is heading by with that. shares of one tobacco company getting smoke today and a cybersecurity company having its best day ever following a strong earning report. we reveal the names when "closing bell" returns after this.

the first time you connected your godaddy website and your store was also the first time you realized... well, we can do anything. cheesecake cookies? the chookie! manage all your sales from one place with a partner that always puts you first. (we did it) start today at godaddy.com in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses (we did it) move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background] the network with 24/7 built-in security.

chip? at&t business.

18 minutes to go before the closing bell and steve kovach is looking at the stocks we need to pay attention to. >> british american tobacco is having it's worth day and over three years after saying it would take roughly $31 billion impairment on its u.s. cigarette brands this comes the company ships away from traditional smoking products saying this reflects the economic future of it cigarette brands. and since no one is having its best day ever after reporting better than expected results and strong with quarter guidance.

the cybersecurity company is an emerging challenger in a space that involves large rivals like crowdstrike and microsoft. >> thank you. big bounce. citigroup rallying today of nearly 3%. what is behind that just ahead. "closing bell"ig rht back.

tonight cnbc is launching

its cross-platform franchise cities of success. explore cities that have transformed into hubs for big business. the first stop is nashville tonight at 10:00 eastern right here on cnbc. next, shares of exxon slumping and we will drill down on the dip and what it might me f tanorhe oil giant as we head into the new year. that and more when we take you inside the market zone. (♪♪) (♪♪)

at pgim, finding opportunity in fixed income today, helps secure tomorrow. our time-tested fixed income suite, backed by over 145 years of risk experience, helps investors meet their goals. pgim investments. shaping tomorrow today.

power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley. mike santilli here to break down the crucial moments of this trading day and leslie

picker on what's behind the rally and citigroup shares. exxon mobil forecasted a big boost to mobile earnings of the next few years. mike santilli, your first. the lows of the day, i think and the russell is giving it all up. russell up 1.5%. >> the banks wrote more than 2% of the open. it wasn't effortful moved to resume the rotation from the few into the many we are at the borderline. you get into these situations. 11% and three weeks in the market. everybody says it has to cool off and we need to consolidate and work off this overbought condition and ideally it does about going sideways that is happening but that new tip into we have waning momentum but the market seems tired and we can't breakthrough resistance. were in that zone right now. clearly the context being waiting for the jobs report.

the next group of things that will help us figure out if we had transitioned to genuine economic resilience and easing financial conditions and an easier bed or if we need to worry about more of a slowdown and the early december tendency to have choppiness and give back after a strong november. >> it's not your average strong november. it was a riproaring november. forgive the market if it needs extra digestion. >> and i have set for a wild, what would be a normal pullback? you go down to the low 4400s where the market gapped higher from there in mid-november. that would be routine and would not really disturb the trend. but if you do it, the story line will gather along the way to say, that was a failed rally and that showed you the market got ahead of itself and we can counter these things. and the dollar is perking up and maybe yields will find traction. maybe a lot of that can be tested at once. >> citigroup is up 2.5% as we

speak. what is the news driving it? >> you were talking about the banks. shares up 2.5%. the cfo giving guidance at the goldman sachs financial services conference and it's second day today. he shared that net interest income for the you will come in a little better than the previous guidance figure of $47.5 billion although mason notes that would suggest tapering down in q4. full year revenue will be at the lower end of the $78 billion to $79 billion range. that is thanks in part to fx pressure after the argentine elections. mason also shared updates on the massive firm- wide reorganization and saying a combination of restructuring and repositioning will cost about $1 billion of the $54 billion in expected expenses. mason added the firm is on track to have it reorganization completed by the end of the first quarter. >> thank you. mike santilli, your view of the financials?

>> citigroup is one massive lag or that can be doing better because things are less bad and doing better and capital allocation and cost. the financials were at the absolute wrong place if the economy will hang in there we have the yield benefit. that obviously helps the balance sheet and takes pressure off of the unrealized loss. i don't think we will get resolution appeared we will not get an all clear signal that said the consumer will not around anymore so they're probably stuck in terms of making headway toward the early year highs. but i take it as a positive they made this much progress. they mellowed a multi-month high they look like they are not representing any particular risk because there is not anything crazy going on in the capital markets. we haven't been a real long on a volatile deal flow or trading

because it's all been quiet. >> reporter: speaking a multi- month highs, how about multi- month lows pippa stevens, that's what i think about when i think about crude oil going below $70 and exxon. >> not a great day for oil and gas companies to issue an update when wti falls below 70 but exxon did forecast earnings doubling by 2027 from 2019 levels and boost the buyback to $20 billion per year under the pioneer deal closes, from $17.5 billion in an effort to compete with chevron's monster buyback but the stock is moving lower on concerns around the capex plan. higher than prior expectations, although below pre-pandemic levels. the high and exxon said it could spend $27 billion per year between 2025 and 2027 thanks to an increase in spending for its low carbon solutions division. it's about as adjacent as one can get to the core competencies adding it's a longer timeframe in terms of positive earnings impact. the ceo did look to assuage

some of those concerns. the most potential for growth but does remain less certain the since it requires definitive policy and regulation? speaking of darren woods, he will join cnbc at 9:00 a.m. for an exclusive conversation and not one you want to miss. >> thank you. pippa stevens joining us with what's happening with exxon crude and $69.35 for wti. >> and await what's happened to crew the last couple of months indicates the way the exons of the rotor been proceeding. obviously they have been trying to replenish the reserves and produce at a certain level. but the idea that people screaming at them that we would have tight supplies for ever and they really should be investing more. they very much in the mode of we need to find new avenues. we will share as much cash flow as we can with investors for $20 billion buyback.

5% of the market value of exxon right now if they threw it all in there. they been reducing the share count. let's say 5% the last couple years. it's working in that direction of trying to get the company in a spot that it doesn't need much from the crude market to survive. i really rising gasoline demand. remember that miles driven are down from the peak and cost per mile is down. everything is working against them in terms of long-term headwinds. it makes sense they're operating this way. in terms of what does it mean to be at a 69 dollar wti crude? i don't want to overthink it. it does seem to be relentless supply. opec can't get any output cuts together for now it seasonally so we can wait for things to gather up. all the things we look at that really did not work to get the crude price moving have been in place for a couple months. >> energy is down 1.6% picked today it's down 11% quarter to

date. utilities aren't outperform in a big way today. and that's no surprise where yields continue to head. >> the pure yield plays are getting a bit of a post on this. real estate has been an interesting spot. they have broken a downtrend and have definitely gotten the benefit of this idea that both yields are helping and we haven't seen the blowup we've been waiting for in that area either. we say an attempt at rotation this morning. i view it more as not so much you sell one group of stocks to buy the other, but literally, every long only fund owns a microsoft word you already own it if you're in the market so it's a matter of what you do with the incremental dollar you put it elsewhere or spread it around a bit? and i feel as if there are some darker corners of the market that nobody is playing in >> it makes me think of what is going on in the market that all

of the so-called chasers are already in the race. there is nobody left to push the market higher between now and the end of the year. >> there's always somebody who want to get more longer the market does catch a spark you will have people get levered to it. i agree that the people who felt forced to participate, that happened. very clear in terms of cta binging on stocks to make sure they had enough of the index, commodity trading advisers and all the rest. now it's about to the numbers come through. fourth in first quarter earnings look plausible or not? and whatever little seasonal fairy dust is for the market, we will see if that works. if you get more goldilocks-type data, as we have for a while, it's hard to see a truly big shot getting the market but that remains to be seen. >> makes me thing tomorrow you get a holding pattern day

because you do not want to get ahead of jobs on friday. >> exactly. i agree. and were back to jobs matter and you want good enough news that's not blistering hot economic numbers from this point on. >> i will see you tomorrow. a bit of a slump in the last hour. welcome to the closing bell over time. >> coming up, a can't miss interview with amd ceo lisa su as the company announces its answer to nvidia's a.i. chip . she will join us first. >> and a big hour of earnings coming with results from game stop in c3 ai. we will talk to the ce