potter:this decision in ane and -- insane -- and -- in ane and alarming. >>'s $6 million for jon rahm they say, joining -- i thought they were going to make peace and go play a round. i guess not. we got to run. thank you for watching "power lunch." >> "closing bell" starts right now. >> thank you, kelly. i'm scott walker at "closing bell." the new york stock exchange, with tack on a tear today. the sector, surging back after a bit of a breather. we as major market vogel, tomley, how far it can run in 2024 in just a few minutes. also, revealing the target for the s&p in the year ahead . meantime, take a look at the scorecard with 60 minutes to go in resolution. the nasdaq today, but green across the board.ai players, dominating today, alphabet,

amd, leading the way with the big gains today. take a look at that, md, near 10%. alphabet, 5 1/2%, the largest percentage jump since july for that stock. campaigning bouncing with earnings in overtime tonight as well, shares on the massive run this year for.com. 55 -- or 65%. another update for energy. the sector is sinking. again, look at the chart. it has been ugly of late. crude, back to 70 bucks momentarily, and that is reported for the reversal midday. you see a little bit of a rally back. not much. year ahead for you money, some bulls suggest this market can keep running well into 2024. one of those optimists, another one that, tomley, managing partner, head of research, back with us at post night. great to be back with you. >> great to be here, scott. >> before we get to where we go, you are right as to where we thought we would be. 47/50 was the target for the end of this year, 46, we'll call her. you said, mega cap would lead

the way. in fact, it has. why do you think things have gone right for you and investors and balls, especially lately? >> i think before full by the yield curve at the start of the year thinking we would have a hard landing. they didn't want to fight a fed, but they were forgetting the fed was fighting an inflation more, not a business cycle. our but was inflation will be softer and avoid a hard landing, and then we have seen the fed cannot take its foot off the neck of monetary policy. so, i think it was economists were too bearish, and the technical picture turned positive very quickly. it was trying for the technicians. >> it's not over yet. >> right. >> there are those who still say that the cycle is going to end because of what the fed has already done. we just haven't seen it yet. you have heard that. how do you respond to that? >> i think people should study market internal structure. we have seen a huge turnaround in cyclical stocks. the banks are churning. the regional banks are turning

up. small caps are leaning. this is not end of cycle micro behavior. this is early-cycle expansion, re-accelerating. >> what if it is just a late- year run as fast as you can, catch up to what you missed, a lot of money has come in and it's just teasing everything to the end of the year as rates have come down? >> well, if we thought this was ahead fake -- i think that if this is 98, we can run another 7% from today to win year end. >> yeah? >> i think 3800 is more reasonable. but i think that if it was ahead fake, we would see credit calling loney, and lucy spreads riding or high-yield falling but i high in the rallying, but liquidity value with investor taken 222 million out of stock this year. >> you are a believer in broadening of the move and you think it carries beyond the calendar chart. >> yeah. now, as we get into next year,

we'll have another decision, but i think also the fed is no longer fighting the inflation more but shifting towards managing the business cycle. huge change. i think interest rates could make a huge move for the technicians who think it can be three and half%, 3.2. that would take mortgage rates down to under 5%. we know that would help the economy. i think there's a lot of pent up demand for cap capital expert i think stocks can do well next year. >> you must if you think we're going to get to your target for 2024, smp, 5200. >> yes. >> what gets us there? >> earnings recovery. we think earnings get to under 65 by 2025, two years at 90s% growth, and you put a 20 pe, which is having 50% of the time when the 10-year's between 4 and 5%.it is the most common pe to apply. that would be 5200, but i think that's conservative, because 255 is 5% coming from cash.

right? there's like 3% organic growth. cash earnings is 5% of the growth right now for you. >> i here bears say earnings are going to be as good because inflation is not going to be as good for earnings, and that's going to be a negative. that's why the market is overvalued, and people like you, $260, way too optimistic on where earnings are going to be. >> i think people should study the ppi. four or five sectors were correlated to ppi, materials, energy, meaning, as inflation falls, they make less money, but tech and industrials have almost no correlation to inflation. financials are positively correlated. i think you have more groups that can actually have better earnings power into next year, and especially if caution comes off companies. cap ex -- there's a lot of pent up demand and cap expert 5 out of 10 groups.cap ex as a percentage of revenues last year. you have a cap ex opportunity. you have a home recovery opportunity, and have interest rates falling, and it's hard to say stocks should fall next

year. >> the market things the fed is going to cut first in march, three minutes from now. is that what you think? >> to me, intuitively, that seems aggressive, but was not, no more is what the bond market starts to price. i think the two-year is telling us that that does have to cut meaningfully next year, because if they don't and inflation weakens, the level of real fed funds is associated with a hard landing. the fed, if they are trained to manage the business cycle, would be cutting rates. >> yeah. you think it could be a little bit aggressive in terms of march. do you need the fed to be somewhat aggressive in cutting to get to your 5200? >> we just need the market to get comfortable with two things. the curve can stay inverted, meaning the 10-you can go to tutas.5 and the fed is still at 4, and the second is that stocks and bonds don't have to be positively correlated. yields can go up and stocks can rise. i get there is some protection

on buffer against if the fed doesn't cut rates. >>, steve need cash to come in from money market sitting in safety, and now goes towards risk assets, because rates have come down and get better yield of the equity market? >> yeah, scott this year, someone bought thing, the be up 85%, 15 years of money market cash. next year, small caps, that's 10 years, but i think you and $40 million the left is coming back and. but hedge funds also had very light positioning in equities. i don't know if you saw, almost a five-year low in hedge fund positioning and financials. announcers really should be where things turned next year. >> you think financials are going to be one of the leaderships? what about small caps? that is where a lot of the conversation has been. this awakening that the russell has had. >> yes. >> there's still a lot of nonbelievers. >> yes. i think there's a kalis in place with 12 years of under- performance.the price-to-book of small caps to the large caps

is exactly where it was in '99, which was the start of a 12- year bull run. a huge week in small caps. we know falling rates helps asset qualities. regional banks should rally and pull up small caps. it's clearly under-owned and they benefit from in-flows. of course, the large-cap banks are really good plays on a cap- x cycle. to me, it's easy to see the 20% or 30% moves in those groups. small cast, maybe 50, where it is harder to say, fang can do 50 next year. >> the other, making despite the car to get at 5200 is suggesting that mega caps, tech, not going to lead next year >> that's right. >> why? >> is that i think the earnings growth thing does look a special of the pmi's turn up. if the s&p earnings grow in 15% or 20%, then in terms of multiple expansion, i think people are going to be more willing to feed the fang multiple expansion, where they

will buy a financials multiple extension. >> to e clear, you think that there's going to be a rotation of mega cap into some of these, critical, unloved areas? >> yes. fang is still a number-three pick which means we can outperform. if somebody saying where were they get the best risk/reward, i think it is clearly financials or industrials. >> when you say, fang still outperforms, the word you use, but some context to that. what does that mean? >> let's see, smp is on a 12 to 15 extra, fang will maybe be a little bit better, whereas financials probably can be up 30 , and industrials can be of 25, and small-cap will be a 50. met we're going to have that significant of a mean reversion trade, so to speak? >> yeah. i think it is consistent if you look at the history of stock like amazon. they have a step-up here, then the consolidated. >> wow. let's expand the conversation and bring in cnbc contributor, joe terranova and michael use your of wealth enhancement

group program to have both of you is us. i will go to you first, aya. does tomley make a lot of sense or not? >> hi. yes. absolutely. you know, 2023 has really been defined by a very narrow market. and so, it makes a lot of sense that going into 2024, you can see a broadening out of the market, especially the economic data comes in notably benign, you know, either too hot or too cold. >> you do think we are going to have a broadening? do you agree with tom that we're going to have these lagging sectors that will be the leaders that tech can still do well, it just doesn't have to carry all the weight like it did this year? >> absolutely. i mean, i think if the economy continues to stay relatively strong, some of the, you know, names and the lower-have of the s&p 500 have a lot of room, you know, to have multiple expansions, as well as, perhaps, some upsides and

surprises to earnings growth as people start to anticipate a recovery from this slowdown for 2025. >> joe, is tom too optimistic or not? >> for talk with tom has been incredibly accurate so far for 2023. congratulations for that. and the equally weigh-in strategy, excited to hear comments or 2024, because obviously that means the strategy will be big. this three points, i think we need to hit on, first of all, when you look at the market right now, and to talk to advisors who, as clients sit in cash, the first thing they will tell you is they expect the economy to slow, and the cash that stop site c with risk assets, those risk assets are in equities. they want to put those assets into it, because they believe they are also going to get price appreciation. i would say, how do you respond to that? >> i am a fan of bonds. high-yield returns 80% of stocks with less volatility. but we know that if bonds rally next year, that actually has an

expansionary effect. to the extent that people decide to allocate the bonds, spreads have a huge rally, it actually means there's others for the s&p just because the loans are not spending. >> joe, tom says, 20 times earnings make sense. earnings at 260 makes sense. is not too aggressive or not >> too aggressive with financials. i'm worried about financials. let me explain why. give me -- >> he says 5200 on the s&p. follow with me. stay with me. >> i'm staying with you, scott pretty abnormally a long time. i don't do s&p price targets. >> okay. >> the environment -- >> let me rephrase it so we can agree to have a conversation about this. is the environment going to be optimistic enough that the s&p can get to 5200?

>> i don't know the answer to that. i don't think anybody knows the answer to that. i'm sorry, tom. >> can we have double-digit returns next year? >> we obviously can't. >> what about you, aya? what do you think? >> i think we can have double- digit returns too. i think the set up is very different going into 2024 than what we had in 2022. you know we have a lot of upside surprises this year in 2023. i think we could have some jewels, depending upon how the data really pans out, and how earnings really pan out in 2024. >> for earnings to get to $260, things have to go really right, don't they? how perfect -- i hate to use that word -- but in some sense, these need to be perfect, that inflation needs to come down to target, the fed definitively needs to be done. if not, cutting, the business cycle needs to keep humming the labor market needs to remain robust so that consumers don't stop spending. can all of those things mash and make this a perfect, in

quotes, scenario? >> never say, never, but at the same time, besides create difficulties for, you know, 2024, i think you're going to get out of it, and it's not going to be as a straight path to the potential double-digit returns in 2024. i think the first half can be a little bit more murky as everybody anticipates these rate cuts, and if we don't get them, and the economic data, it really does slow. perhaps, more so than everybody anticipates. that bad news can really reek some havoc in market. >> tom, how would you assess how i have described what needs to happen for you to be right, or am i overstating it? what do you think needs to be perfect to get to 5200? >> here's some simple math to think about. earnings this year, 225. 2, 2055. $40? 15 is going to come from just interest on the cash.

so, you know, it's 25 from organic growth or 10% over two years. this ugly, gdp of 3%, for real. i think that's pretty doable. ms. we have a recession, 265 is actually a low number. it can be 275 or 280. >> wow. >> 2025. >> in earnings? >> in earnings. the buybacks, another five. buybacks and cash. >> 275 or 280 would make you -- you are so high up, we can barely see you. needed telescope to see you earn a number on earnings relative to what everybody else on the street is. haven't heard anybody suggest to get as high as 280 >> given mind, healthcare earnings are down 220%, not down 20% for two more years. energy, down 40, so we, as those turn, those contribute to s&p

earning, meaning especially energy. energy was such a huge swing factor. it has been absent this year. >> why will it be better next year? >> let's say, price stabilizes. look at the curve, they will be dragging earnings. you will actually have a positive contribution when they're not declining. so, it's not hard to get to 255, actually. sounds strange, but that's two years from now. >> all right. aya, financials, energy, do you like either for 2024? >> we like energy. i think the set up for energy is still very favorable. valuations still aren't at extremes. i think, you know, you have had some big announcements in the industry that are consolidating, you know, and you have earnings growth. if the economy doesn't slow that much, if we get at that mild recession, you know, or the soft-landing scenario, energy should continue to do well going into 2025 and beyond. >> joe, you wanted to take on tom about his financials. >> financials and energy. with energy, what the price

doesn't go low or -- right? what the price to go high or lower? you get a massive liquidation. that one is over-the-top you know that position. i financials, where is the earnings growth coming from? if you think about it, lose the effective interest income. interest income was up 22% in 2022. up 18% in 2023 production going to decline next year. j.p. morgan told us on the goldman sachs conference yesterday, treating revenue is down. you got all ceos complaining about regulation, basil free. what does that leave you with? dealmaking? >> a couple of things. one, you described what i know, right? that is why hedge funds have the lowest on positions in five years. second, as george boyd had a research analyst, he says, it takes a lot of opposite for the financial straight next year, shall be price to earnings, which means it doesn't matter what earnings do next year. it is how earnings power is transforming, and if we have lower interest rates, we know

that this saves commercial real estate, revives housing. i don't think any investor says, well, your q-two december will be great. they say, this is a switch and how we look at earnings power for the next few years. i think financials have huge financial potential. then, treating -- as you know, treating his spontaneous part weak this quarter, can be next year. $240 billion for the exposure for risk being low, not surprised there isn't much trading. it will pick up a lot next year. >> that's known as a soft landing, the way you describe it. >> i we don't have a landing. >> i do think tom is suggesting anything other than that, if not no landing. right? if you think 270 or 280 on earnings, well, we can't even come close to a soft landing. that better be a no landing, no late cycle, the acceleration of the economy for all the factors you suggested. >> yeah., scott one thing i think people lost perspective on his when the fed went on this

tiny campaign and brought rates in the u.s. above any other developed world, we are had a hard landing in europe and china.so, the u.s. avoided a hard landing, because what broke was outside the u.s. if you think those economies are worse next year, we're in trouble. but if they are turning round, and the dax is telling you things are turning around and europe community landing in the u.s., because we had a landing elsewhere >> i will give you the last word, aya. >> no. i think tom always makes some great points about the outlook, and betting against tom has not been favorable to many investors. so, i would go and listen to what tom has to say. >> all right. thank you, berns. tom, thank you, we have more time to talk about this before the earnings prolific to a check on some top stocks to watch heading into the close with pippa stevens here with that. hi, there >> the fcc approved the merger despite the agency's scrutiny

on other murders. this deal was given the green light, because billionaire charlie urgent is already the controlling shareholder of both companies. those stocks, up roughly 8%. domino's pizza is at the highest level in over a year as the pizza giant lays out its targets during its in yesterday executives are aiming for annual same-store sales growth of 3% through 2028, and say, they're looking to add new menu items and rethink existing items those shares of 2%.scott thinking? >> thank you, pippa purchase getting started here, on "closing bell." the apple's ai model, be cheered. we will hear from malcolm etheridge. a lot of skin in that trade. you know that. we'll find out how he is playing this announcement. how does he like a but now? we'll find out after the break. then, lived to the new york stock exchange. you are watching "closing bell" on cnbc.

this cnbc program is sponsored by truest security experience expertise execution. all right, sheila, are you throwing a dress like a dad party, a birthday brunch, or a vow renewal for your dogs? yes! the right drinks delivered for any party. drizly.

the ai always raises heating up, for sure. a met chairs are surging after the company announced the ai model gemini. the soft, also getting a booth after their own shareholder meeting earlier today. let's bring in cnbc contributor malcolm etheridge of cic wealth. he will discuss all of this. i look at alphabet having its best percentage day since july. you sold it and we made a big deal about that. what you think about this announcement? you write them off too soon?

>> yes and no. yesterday, i got the same announcement anybody else got, and i thought, you know, this is finally the moment this is what i, as a former shareholder, was asking for, you know, 12 months ago almost. feels like, at least, and this morning, we were getting reporting from the information and others that maybe there's not as much there as we thought, and gemini is not as powerful as it was initially touted to be privy it is the equivalent of gpt 3 was actually. i would say, let's hold on for a second, let's wait to see after people get their hands on this gemini model just how powerful it actually is, but i will say, i'm also thankful that google has finally woken up and joined the party. >> look, i'm not going to be critical of the fact that you don't own alphabet. you can't own everything. that's fair to say. you own amazon, microsoft of course, apple, and some other names as it relates to this space. but you feel like we

were going to get -- as we turn the calendar to 2024 -- we are going to get a more distinguishing line between the real bidders and those who are pretenders? >> 100%. i think we are probably turning the corner here, where we are probably going to add another three, i think maybe four names, to the magnificent seven, as we have been calling them this year, that are all the names that are actually doing something tangible in the world of ai, and i think the ones that are going to be the dominant leaders of that 10 are the ones that show a way to actually commercialize and generate revenue using those tools sooner than later. a lot of what we promised in ai back in march was solely just a promise that this is what ai is going to do. i think we will not be a little bit more critical on this issue is getting money. >> as a reference, you obviously have a significant exposure to mega caps, which tomley, who is as bullish as anybody i have her dig, suggests that they're not going to lead.

not going to a perform, but mega caps are not going to lead in 2024? do you show that? >> absolutely not. i was shocked to hear tom say, financial actually going to be twice as good from an investment/return perspective, as mega cap tech. realistically, what is happening is the broader economy is not doing so great right now, but it is being overshadowed by the fact that ai has captivated our imagination and made us excited about the return potential as investors with these 7 to 10 stocks that i mentioned. i think all of the capital, when we or another, is going to flow into the 10 names for 2024, and i was is what is going to end up dominating the nasdaq and s&p once again. >> so, the same thing that happened this year? does that mean you're not as sanguine on the economy as others, or earnings, so we're going to, once again, go balance sheet hunting for safety? >> as i said, i think that the broader economy is not doing so great >> not doing so bad. not doing so bad. >> maybe.

but i think that what we are seeing is a dislocation between the stock market, where we should have had a pretty flat stock market this year, not as impressive as it is, except for the fact that ai came in in march, thanks two chatgpt, and stuck everyone's excitement about investing all over again, and it is tech, tech, tech. we will maybe add a few names like adobe, maybe salesforce, maybe amd names like that that have actually shown an immediately commercial ability to generate revenue using these tools, specifically copilots they have adapted, but i don't think of the broader stock market is necessarily in any better shape than it was the last couple of quarters i think we will just not seeing it, because the s&p is getting led by ai once again. >> no. police say, the performance since the, you know, end of october, if i would have asked you this question then, i would say, yeah, you are right. obviously. however, it is obviously a

different story.the russell is up 8% the last month. that's not a broadening out? that is far from a top-heavy or recent market you could be highly-critical, if you want to be, of the internal make up a whatever the market did up until november, then it's clearly been a much different and, dare i say, healthier story. no? >> i think that's fair to say. i think that the ai high-tide raised all the boats. you are making a very good point that there was a giant gap between magnificent seven and everybody else, and the other stocks decided to gap-up instead of the max seven gapping down. what i think will continue the narrative, still, will not be small caps or financials. it will not be energy. where people's imagination and excitement gets captivated, once again, come earnings seasons, is going to be ai once again. >> my point, though, is that it is not ai tide lifts all boats. it was, but this has now morphed into we will ask you to

pull this off tide. that is the soft-lending tide is the one that is lifting all boats, as rates have come down. that's why small caps and all these other areas that did nothing are finally performing well. >> yeah. i'm not a believer in the soft landing. i think we probably did was just delay the period where we are going to have to take the medicine. it doesn't make sense to me, logically, that the fed can raise the cost of short-term borrowing on an economy that's built on consumption and on the consumer that is powered by borrowing. we are not going to have anything negative happen in the economy as a consequence of that. maybe we just pushed it into 2024, where we would have been taking her medicine earlier this year, but i still think that our recession, even if it is mild, is going to show up here at some point early in 2024. >> i mean, we skewed this system going into the rate hikes.do we not? best, leading the economy, to a degree, where you and others

will probably suggest it was way too much, and that's what we are where we are. that changed the whole paradigm . >> i think you're also giving a little bit too much credit to fed who got us into this mess in the first place in assuming that they will also perfectly time the cuts on the other side. right? we have already heard that higher for longer rhetoric from jerome powell and others, and i think they will continue to hammer the home at the next fed meeting and the ones that follow, and we were going to assume, then, that the same folks who brought us transient with the same folks that are going to also a good time the cuts and bring us back down on the other side of the mountain. the ascent has been, i would say, great, but it's deftly gotten us where we needed to be. now, with a focus on typically executing the descent back down the other side of the mountain, and i'm also confident that the fed will land that plane so vertically. >> that would be the last word, malcolm. thank you so much, malcolm etheridge joining us here on

"closing bell." , next, but on the ipo start up with rick heitzman breaking down his forecast for the market as we make the turn into 2024. we'll see if we are more open for business in a new year. "closing bell" is right back. icy hot. ice works fast. ♪♪ heat makes it last. feel the power of contrast therapy. ♪♪ so you can rise from pain. icy hot.

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we are back with the sharp slowdown for the ipo the last two years. will the ipo market start to thaw out in the new year? rick heitzman, first mark capital, welcome back. >> thanks. >> with that tiny bit of a thaw, still got big chunks of ice in the market. >> more than a couple of drops that happened in september, but as we talked about, '21 was a great year with 100 tech ipos, '22 and '23 were generally terrible except a couple of drops that came in september with the court and on. then i think the doors going to

start to slowly opening from the beginning of 2024, but as we talked about before, the party was that big. going to take a while. >> how much longer do you think it will take until you get back to what you and your colleagues in the field would suggest is normalcy? >> probably another year at 18 months. >> that long? >> i think the beginning of next year, probably see some smaller companies, not going to be the stripes of the world. more of a stubhub, more of a seat kick and toro with the approachable business models, good growth, profitability, aren't going to do $1 billion financing, will be a couple or several billion-dollar public companies that have been private for too long and wanted to get out. >> how do you assess what's happening with the ai arms race at this point? we visited with you, maybe once a quarter or something around that, and now here we are, the end of the year, still talking about it in the same way we

were at the beginning of the year when microsoft sort of exploded this whole thing, and now we just had a but with gemini, and amd, new chip, a couple of battle royals between amd and nvidia and a little bit and microsoft. how do summary like you assess that? >> we knew the hype was coming. we felt the pressure coming. even with chatgpt last year, and it's about promise, now they have to deliver next year. more than other megatrends, we have seen the biggest companies jump on the trend earlier and more aggressively. so, doing things like factories for chips, buying up as much gpu as they can find, over- promising customers on the consumer and it's enterprise that this is what they will do. now, setting up for next year, the year they really have to deliver. >> i'm going to ask you that. sounds interesting. do they have the ability to deliver that too? are we assuming that all of these companies are going to be able to monetize what is such a new and transformational technology that's going to take

much longer? we are going to have to be patient, multiples in these stocks don't necessarily suggest patience. >> no. it has been too much, too soon. the promise was that big. i think a lot of the companies will disappoint, because you will have to look at real return on investment, real companies buying the products, being pleased with them, and as all product market cycles, some products will be great and over perform. some products will under- perform, and i think you will see a really choppy market around this hype next year, as just announcing this could be enough to move billions of market of dollars. >> what is next year's hype? what area do we pay more attention to? weight loss drugs have had a captivating impact, much the way ai has some of the stocks have done quite as well, but nonetheless, it has been this transformational trend. people -- investors -- try to wrap their arms around how to

take the most advantage of it. how do you think about that? >> advocates early. differently from ai, though drugs work. they have been proven to work and providing incredible health benefits. so, the problem is coming to pass with a shortage of all most all those drugs. you have seen a lot of value creation in nova and lily this year. we have seen some of the value creation. i think you're going to see the ongoing ripple effects with companies like roe, delivery mechanisms for the gop-1 into 2024. >> another hot area your eye is on for people that are not talking about enough? >> i think a couple of places with one be financial technologies. underpinning of the financial system, whether it's credit cards, enterprise banking, getting through it, up in the air, that was exhilarated by the fall for the regional banks and the svp crisis and people rethinking about the banking relationships and emerging companies are taking advantage of that. we have done a lot of things this year, on the infrastructure tech side,

painting seeds that will hopefully start to bloom next year. >> interesting. specifically, that area didn't end so well. not as it ended, but my point is a lot of the stocks that were so red-hot, paypal, and like that, obviously had a major drop-down to earth. what's going to prevent that from happening again just to different simple companies? >> we have seen that in the private world also. a lot of private companies have way overvalued, and they have come back. we're probably less involved in the consumer new syntax or the neo-banks that are out there or more for the underlying infrastructure of those hings. we can have a credit card private-labeled, but has a different infrastructure, which is more efficient, can do qic and aml, can do all the things a bank needs to do, but built on the new software platform. >> appreciate you, rick heitzman with us. up next, tracking closes into the biggest area.we are here

with pippa stevens again. >> hey, scott. ai dowling pulled back with disappointing results. we bring you those names after the break. (sfx: stone wheel crafting) ♪ the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪

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we are about 15 from the close. backed pippa stevens for look at the key stock she is

watching. hey, pippa. >> scott, chapel is the best day and three years after reading the full-year guidance. the airline says bookings have exceeded expeditions for both holiday and non-holiday travel. since late october. that has shares up roughly 15% heading into the close. ai is having a rough session as a revenue miss overshadows a narrower than expected loss per share. the ai giant also issued a disappointing third quarter and full-year guidance, but despite today's low back, the stock is still up over 130% so far this year. scott? >> pippa, talking on a yet! stevens, join us there. still to come, breaking down.com, reporting of the top of the hour. we will hearro fm shareholder joe turnover about what he wants is for the numbers for broadcom and more coming right back .

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of next, blue 11, reporting results in overtime. seeing serious gains this year, more than 40%. we'll give you a rundown of what to watch for with those numbers on the tape after this break. we will take you inside the markets on then. ♪ ♪

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what is expected of both of those reports not for broadcom. first, mike santelli , tomley says, get to 4800 before the end of the year. 5200 at the end of next. he threw out some pretty stratospheric earnings, protections as well. >> 4800 by the end of the year is interesting. we were exactly at this .2 years ago. what you got was 4800 by the end of the year, as he said. so, it maps to that and was on nothing if you think back to it wasn't as if you got some great reassurance on where inflation was going or anything like that for 2021. so, can't rule anything out. obviously, mostly what the market seems to see is pretty relaxed about the general backdrop, they going into payrolls tomorrow, last two jobs, fridays, or goes up 1%

each day, about, .9%, 1.1% last two months. the sense out there is the community evidence of moderating but not falling apart growth is good enough that even if you get wildcards tomorrow, maybe it does not get too far off course. as far as earnings outlook for next year, i am all for the idea that you can make the numbers for double-digit growth.there's very specific ways you get there. pharma, massive drops this year can come back, then the big six for the nasdaq that will just go off huge bases. the other piece of it is every bank is suspected to have down earnings next year. something could happen then maybe they can get flat and not down. i don't know about getting 15 bucks a share for the s&p 500 earnings off of just interest on the cash, as tom said. i don't think that mathworks. maybe it does. >> look, 260 sounded optimistic there. about even bigger numbers. speaking of numbers, we get some from lulu in ot. what do we expect? >> scott, we will get another read on the consumer for what broadcom five reports for the bell. wall street is watching

international sales , and china has been a big one for darden with more sales in north america. any commentator armed consumer and holiday sales that can affect guidance going forward with analysts anticipating 40% earnings growth and 18% revenue growth. stocks, 40% of 20% or so since added to the s&p in october. a couple of analysts were downgraded ahead of the report with megan james, secondarily, say, price gains are already factored in at this. , then wells fargo, sin, confidence in the stock has played out. got about 70% of analysts now for the buy rating on that stock back to you. >> thank you summers, cairo rudy. joe turnover is here with the lulu stock you have been a believer in for quite some time. what do we think? >> listen, expect strong profitability and expect strong sales. two numbers to look at, direct to consumer. does that grow both 15% gross margins? can you sustain above 57%, and is the growth and international present, once again, and i

think the guidance on revenues is important. let's keep in mind, but tutas.2 billion in the current quarter. going to look at the 3.2 billion in the upcoming quarter. >> does the stock -- a lot to live up to -- stocks are better than 12% in a month? i've got a lot of things up on my screen here, and amd is up 13 in a month, but nothing else pops like this one on my screen here. >> no. i think the november 2021 price at 485, the all-time high, seems to be where the gravitation wants to be.the options are pricing in at a 5% move from the last 8 quarters. the mean move is 8%. little less volatility, which is somewhat surprising, but this is a stock that outperformed the consumer environment with so much friction. >> mike, also in our last i want to say, 10 days, you have attended for notes. when was the u.s. 1 list,

beyond, taking lulu off. another note with similar calls. >> yeah. people are looking for lacquers. i think you either have, you know, the commitment that the market is able to reward winners, and they will keep going. that is the lulu story, like the chipotle story, where you have big secular growth, still a ton of room for store expansion and everything else, and they have this demographic sweet spot of price and power. all of that stuff. if you want to make the bet that that is largely in the stock, maybe the other quality names in the group can come around, that's where you get the nike story. nike is flat for the year. >> joe, a $1000 stock for broadcom, 52-week high working his way back . it has gotten the headlines of the nvidias or ai places that have gotten, and those who don't know that up and try to tell that story. >> for sure. this has been the more we call the valuation alternative to the more expensive nvidia. i will tell you, this is an interesting report tonight, because you will need ai to

save the day, because there's a little bit of embedded weakness when you look at wireless, and apple units begin to decelerate. so, you need ai to really step forward here. in addition to that, infrastructure software, which is now inclusive of vmware, 43% of the business overall. my position, scott, on the strength, i think i will do a lot of money managers did in nvidia, and that's probably be about the position a little bit. we look into 2024, what do we see? winners, that might cause the crowd and solomon the ones biden neglected. i think broadcom might be a little bit of evidence of exactly that. mike it a little bit of similar nvidia reaction. >> what you think, mike, but the consummate rate stock? >> and has been a great stock, anything people feel it because you have a decent valuation cushion underneath you not one of these all or nothing earnings momentum stories, but historically, the market doesn't love having to play a secular theme with a small

subcomponent of the company. >> okay, ibm benefits from a little bit of this too. we have a good cash flow story alongside this idea that they can be in the orbit of ai beneficiaries. so, we'll see on that front.all semi is working today, by the way, on the back of that md news. >> i appreciate you sticking around, joe turnover. we have got a minute left, let's set the scene for the morning. jobs report, 8:30, yields, steadily coming down. yeah, stabilize a bit today, but still looking at a 10-year, as we speak, 4.14. we could agree to move to 4%? that will be fun to watch. >> it will. i think it will probably have to happen on the wage growth side for that to soft and up a lot, because the long end, in theory, shouldn't necessarily be the main thing moving according to fedex vacations. maybe the two-your comes down a little bit more, all of a sudden, it seems that the job market is wobbly, i think we

get an odd consensus-type number for job growth, and still a healthy growth. what will it do? that, to me, doesn't mean the fed will get more done. just another number. >> soft landing. all right, mike, i will see you tomorrow. i will see you all as well. dow will go out plus 61. >> stocks, closing high, led by tech with the s&p and down snapping three-date losing streaks for that is the scorecard for the wall street action just getting started. welcome to "closing the overtime," with jon ports. >> a nice variety of earnings and chips retails, software, powerful with doctson, rh, and broadcom five. >> plus, richard clever joins us ahead of tomorrow's key jobs report. and next week's final fed decision of the year. >> yeah. back to the market action for now. higher session after