divorce. for sleep. they say there happier than -- happier sleeping in a separate room. they sleep in different houses. >> i think my wife is not happy with my dynamic sometimes. >> why not get separate houses? that is crazy. that is what you signed up for. if you can't deal with some snoring, guess what, don't even go on the program. >> time for closing bell. . welcome to closing bell. scott walker at the new york stock exchange. this make or break are begins with highflying stocks. so many names surging lately and questions about what to do with them. to profit or continue buying and believing. will ask experts the question over the final stretch and we will take you to nike earnings in overtime. that name is on a one-month terror. stephanie leake is with us and she will give her opinion on

what might happen. she is a little nervous too. in the meantime, your score card with 60 minutes to go and regulation looks like this. and we are bracing for anything as we head toward close following would have been late yesterday. so far, so good. yields are mixed today as we wait for tomorrow morning's ece report which is the fed's favorite inflation network. takes us to the talk of the tape. the state of the rally and whether things have gotten a little too comfortable for investors. let's ask our chief investment officer for new edge wealth. welcome back. >> are we too complacent? have things gotten too easy? approaching 14. not under 12. what say you? >> we are getting close to the level where complacency is a risk but we are not there yet. we can see and sentiment measures that you are stretched but not extreme. positioning measures, you are stretched but not extreme. it means there is probably room

for people to get pulled into the market and get more joy is that the end of the year. and we will have to judge it? -- closely in 2024 to see if those measures become a risk in and of themselves. >> you think the market is in good position for a pretty good year in 2024? >> i think a lot depends on the economic outcome. a lot depends on the path of things like liquidity. liquidity was really powerful for valuation expansion this year. valuations are up 20% for the s&p 500 and up 30% for nasdaq and tech stocks. it is unlikely to repeat in 2024. we turn our eyes to earnings and that is where the economic story comes in. saying we have 11, 12% earnings growth and consensus now. >> do you think we can -- is that achievable? is it a realistic number? at all comes down to that. will have to place our bets. earbuds in the middle of the

table. the economy is fine or the fed will start cutting. the market will place the bets ahead of that. >> i think the number of 11% is achievable. the upside to that really comes from two key wildcards. the first would be productivity. is there upside to margins for things like ai? that remains to be seen. we will watch that closely. and then for ipo activity, more capital market and capital deployment. the fact that the fed could easing rates could enliven spirits and allow for more activity and capital employment as companies feel more confident. that could be the wildcard of an upside driver and in the downside wildcards are things like possession. >> what about this broadening of the market? you believe it can continue? and if so, why? >> i think it can continue. we want to make a big distinction between broadening of names that were quality which is left behind in 23 just because they were not tech and the names that are low-quality that have been rallying lately on this idea of a fed pipit and

lower interest rates that if you see the fed not able to deliver on the interest rate cuts or interest rates, the bad ballot inch -- balance sheet names would be most for reversal. likely not outperforming over three months. >> can you differentiate those with more specificity for our viewers, like the kinds of stocks you are talking about? >> will be due is screen names based on quality factors like free cash flow return on invested capital as well as balance sheet below average. what you have had lately is a lot of names with the most leverage on the balance sheets going up a lot. take a name like boeing. it has rallied 50% the last two months. it is not to say that it has great drivers because of the global aerospace rebound but a lot of it is coming from the fact that it has $58 billion on the balance sheet and 18 billion of that having to be refinance for the next three years. how much of that is about the fed and not necessarily the

company. >> what about sectors like energy, something will have a rebound here. you are laughing. you must not? >> i think we are little bruised calling for energy to be a great place to be in 2023 and it clearly was not. i think it underperformed by 70%. i think there is an allure of going over energy because it has been more beaten up. but maybe the more out of consensus play is something like where people have tossed this and the charts are starting to look better. >> what gets us to the point where equity is viewed as the best risk reward asset class? that has been in question over the last 18 months or so. are we almost at that point? >> i think the ford -- the forward the returns, they lose

that crown for being the best asset class probably. that doesn't mean there isn't a great opportunity. you have places like in healthcare for example, that have been beaten up a lot. and you can start selectively picking. overall, we have to note that the market is at the high end of the higher range of evaluations. it is not a good timing tool. it doesn't necessarily mean they will underperform the next year. but you look at 24 plus months and that typically is consistent with the returns. >> you know why i asked the question. there is a debate over come will money come out of money markets and into the stock market? coming out of bonds and into the stock market. should money come out of money markets and going to bonds which is a debate as well? >> we think there is room for money to come out of money markets to the stock market. is not the whole balance. but a lot of it was in savings prior to it. consider it more incremental. you can measure it and look at aaii stock allocations. they are sitting at 65%. they were 70% in 2021.

if you are trying to measure how much more can be dragged in, i would watch that measure. >> let's bring in our cnbc contributor. what do you make of some of the things said? we don't have to debate boeing yet. >> don't want to pick a fight over boeing. what about the market? >> i think we continue to see a melts up. see massive chase because you have so many portfolio managers that are losing this year relative to the benchmarks. i think you will continue to see the rally into the quarter of next year. i think the rally can continue because it looks like we are actually achieving a soft landing. all the economic data points to the. last week, we get better cpi data and better inflation data and general. we have gone from 9% inflation, to 3% annual.

tomorrow, the core big number i think will be fine. that was last week. and then housing data across the spectrum. you had 18% growth in housing. single family housing starts. single family is a leading indicator and permits is a leading indicator. and a multiplier effect to housing. to me, you will see better growth and coupled with lower inflation and lower interest rates, i think you will see better earnings. >> i will come back to you in two seconds there we have breaking news regarding apple. we have more now on what is happening that is sending apple shares lower. >> apple has removed the apple watch from the online store on apple.com. this was expected. they said earlier this week that because of the patent dispute they had with the health tech company massimo international trade commission, it is will that there was an import ban on these devices. here it is. currently unavailable. here is -- this is for the

apple watch series nine and ultra two. there the two newer watches that have the oxygen center or the blood oxygen sensor at the center of the patent dispute. of course, the biden administration can come in for a last-minute rescue and overturn the ruling and allow apple to start importing it again. they have until christmas to decide that. no word yet from the ustr who will ultimately make the decision. but they do have until christmas. i would not be surprised if we heard something from them one way or another by tomorrow afternoon. but look, this is big. i think morgan stanley predicted that this could be -- this could impact up to 2% of the revenue for as long as they have to ban is watches from being sold here. i will note that you can buy them and store. if you go to the apple physical locations, they will be selling them until the end of the day sunday on christmas eve. and third-party retailers like best buy or target can still

sell it as long as they have stock. they have pulled from the website. >> the other story of note is i think you saw the new barron's cover. which just dropped out this weekend which is negative. i think you could only suggest that the tone was negative. suggesting is the multiple justified. the stocks of 50.5% on the year. is the trajectory of the stock come along with the multiple justified for the pace of growth or lack thereof that apple has exhibited over the last few quarters or so? they argue that it is going to be tough for growth to match what the multiple in performance has been. >> that is what everyone is watching. i saw your story on that on half time. what are the catalysts that can return apple to topline revenue

growth after the full fiscal year. they had four quarters of a row of declining sales. the problem with iphone demand. having the apple watch off the board in the u.s. the most important market in the most lucrative market. that will make it that much tougher for them to return to growth. division pro also likely will come out early next year. that will be a niche product. not planning a huge sales push. only available in the united states and of course 3500 will turn a lot of people off. the one bright spot, scott, we are getting interesting data about the app store and how that has returned to growth. that is good for the service business. more headwinds coming there next year with the european union putting more restrictions on the app store, forcing apple to open it up to other app stores and other payments. that hurts their margins which are already superhigh within the services business. >> good point. i appreciate you jumping on with us. anymore news, you will hear

when the bell rings today. what about mega caps. perfect segue to talk about that area. apple is not the only of 50% or better. your meta is up a ton. what about these? >> i like them for the long term. i'm not sure i like them for 2024. you know i have been selling what a and i am underweight relative to my benchmark but still have a piece of it. i like the story very much long term. it is extended. and it is cheap on an absolute basis but has had such a nice run. up 185% year to date. everybody owns it. everybody loves it. a year ago, i was sitting in the chair and it was the opposite. and you don't really make a ton of money when everyone is on the same side of the boat. and i think everyone is on the same side of the boat across the board. i like amazon long term. that is the bigger position. i like google kind of.

i want to have a little bit of exposure. i want to be -- i want to own something that has lagged this year and cybersecurity. the total address of the markets for those two stocks are huge. and there is a lot more. outside the evaluations, more upside there. i think you want to be a little more choosy. >> does it make you nervous at all that everybody seems to love small caps. we talked about already. tom lee was on with us yesterday and says, i like m but that is not going to leave next year. it will still do really well and will outperform but small caps can go up 50%. super bullish. i want you to listen to what he told me yesterday. we can kick it on the other side. >> evaluation isn't why anyone should sell stock or buy stock. it should be whether earnings

woman tim is accelerating and next year, it looks like capital spending will pick up. there a lot -- there is a gap between the hard and soft data. >> and then what johnston, king bear told me two days ago sitting in that very seat. the hype about earnings is not going to lag. the like for -- will take effect. that is what he remains bearish. what side would you lean into? >> i think the point about earnings momentum is important. it raises the question about -- seeing the earnings growth go from 160% this year to 26% next year. that is a lot more than what the s&p is going to do. that is a deceleration. i think the question we have about the earnings forecast is on the revenue line. if you look, the street has revenue accelerating next year. yet, we should have a fairly meaningful deceleration because

deflation is accelerating. what does less pricing power and a sword topline mean for margins and is there really that much? >> what is your reaction when you hear tom talk like that. and i tell you what he says about small caps up 15% potentially in 2025 earnings. as well as $280? >> i think earnings have the chance to be better than expected. that is because the economy will be better-than-expected. i think that we can have a 2-3% economy, which by the way, we have in the 4th quarter right now. and we will see good and solid topline. margins i think will hang in there. not necessarily from pricing but because interest rates are coming down. because inflation is coming down. input cost is coming down and freight cost is coming down. all of that is positive. and maybe getting a little bit of pricing power. i'm not banking on that.

i do think it will upside surprise in the first half of the air because the economy will hang in and that is why i always refer to the economic data points and a soft landing we mentioned. in terms of small caps, if you like small caps, you have to like financials. that is a big part of small-cap index. like financials. but i can get bank of a nap -- bank of america with better transparency and operating leverage than a small bank which actually, some of the small financials will lose market share. >> schwab was a new position for you recently. >> i added it a couple weeks ago. i owned and sold it and then added it again. i think the interest rates come down as the curve normalizes and maybe it will stoop in a little bit. we will see. you will see less cash sorting. the 6 trillion on the sidelines of money markets come out and go into other parts of the market. other parts of asset allocation and i think that will help, such because they have the

ameritrade deal and synergies as well. >> let's just have one about boeing for a moment. you want to rebut anything cameron suggested about the stock. she can tell us if we need a refresher. >> it is all about free cash flow. it is going higher. especially after the chinese news last night. >> deliveries. >> we've been waiting two years for china to open up again. that just happened.'s and others a chance the company can do 50 per 7% of max's a month which will increase free cash flow picks at 10-$12 billion in free cash flow by 2026 and there is a lot of momentum there and i think they are better executing and people are still skeptical they can execute because they didn't. i know why the stock did what it did the last couple of years but now they are starting to turn. >> i think for the first time in five years, you actually

have the stock price trading above the analyst price and some analysts are chasing the recent move. i think analysts are right to be doubtful and dubious that they can get to the $10 billion because of the past few years but i think the other point is that a lot of this 50% in two months is really related to the balance sheet dynamic so maybe you are at a more reasonable evaluation now. >> you said something that think i said at the top. chasing the recent move. you said about boeing. but i could find 200 names probably that have had this incredible recent move. what am i supposed to do with that? am i supposed to trim some of these winners? or buy and believe like i said at the top of the program today, because there are so many stocks that have had incredible moves since november 1st. 40-70%. >> maybe the pigs get fat and the hogs get slaughtered which

is, don't get greedy. if you are looking at underwriting the position at today's evaluation, you still have the same conviction? a lot of names are still trading well-off hires -- prior highs and valuations which means there could be room to run. those of weak fundamentals and are caught in the everything rally might be an area to trim. >> i have to ask you the same question. >> even though you have had a lot of companies and stocks broaden out and participate, some of them are still down substantially. one we talked about barely up on the year. even though it has had a huge move off the low. i think you continue to see a broadening out. not saying to sell everything taca. it is not that. it is broadening your portfolio and diversifying. there are valuations and attractive ones to be had. energy, industrials, financials, discretionary. a whole list we can talk about. >> great stuff. we will talk more with you in the market down. thank you for being here.

good end of the year to you. we are just getting started here. next, shaking up the mega cap. cic malcolm of the ridge talks about why big tech is set up for another banner year and two names that you think might be added to the max seven. live from the new york stock exchange, you are watching closing bell for. [ "i'll be seeing you" by the five satins ] the mercedes-benz holiday love celebration is here. come in now for the exceptional offers you're bound to love, now, through january 2nd.

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let's get back to steve kovach. looking at the biggest names moving into the close. steve. >> ford and general motors are moving higher today thanks to analysts at morgan stanley. the bank is reiterating both stocks is overweight heading

into 2024 just giving a slight bump to both automakers. morgan stanley believes both companies can generate stronger free cash flow from the internal combustion engine business while continuing to invest in electric vehicles. let's start with auto. carmax shares jumping after the company posted an earnings beat for the 4th quarter. and also said it would reinstate its stock repurchase program which has the stock moving about 4% higher right now this afternoon. back over to you, scott. >> thank you. the magnificent 7up 106% this year. my next guest things the group could add two more names to the ranks in 2024 per let's bring in our cnbc contributor to further discuss. good to see you again. what are the names? >> to meat, amd and adobe are the names that could actually make their way into next year's med seven or whenever jim cramer decides to call them. >> tell me why. >> i'm looking at amd and the

fact that the mi300 chip has already been validated by the likes of microsoft and meta who have already agreed to order the chips as soon as they are ready for delivery which basically says to the rest of the market, the rest of the mega cats, that the ai computer chip is actually ready to take on that of nvidia. i won't say it is actually ready to overtake it the way amd has come out and claimed. that is not my area of expertise. but i will say that it shows it is comparable. and on the adobe side, i think the creative cloud tool is ready and in position to start showing positive momentum near- term and ready to apply across the board with creative. and adobe made a smart choice earlier in the year to lean all the way into ai and set of running away from it since all the products that they create are for the creative starting to make noise about the large language models that have

scooped up creative work from authors and illustrators and everybody else. the adobe products are proprietary. all the images in the text to image tool are proprietary to them. so as people look to sharpen their elbows and protect, the adobe treasure trove of images becomes that much more attractive. >> what is the mag seven going to do in the new year? >> i think we will have to call it something else. i think a couple of names will fall out of favor. i think potentially tesla and potentially nvidia. and you guys just got done talking about apple. i won't belabor that point. >> hang on. i'm going to ask you about apple in a minute. you are telling me that nvidia is going to fall away from the magnificent seven? on what basis? >> i don't say that nvidia won't actually still be a growth name but i think the 3x return that we saw from nvidia this year and the return we expect to see from them, they will start to seed ground for

names like amd potentially or even intel. right now nvidia is seeing something like a 15 billion- dollar year-over-year growth rate in the ai compute space specifically and i think intel is something like three, 3.5 billion. you have amd that is like a billion, billion and a quarter. those names have a lot of room to run. and nvidia has already shown that they are having trouble keeping up with the orders they have been receiving. so they will end up ceding some ground for the competitors, the challenges i mentioned in the other names we might not even be thinking about yet. >> i don't think anybody expects them to have a 200% return in 2024. that doesn't necessarily mean that they are going to seed a whole lot of ground to abroad, or amd. they will lose the leadership role that they have in any way. and thus, the substantial part of the market cap that has put it in the magnificent seven. >> part of what i'm making

this argument for 2024 based on though is that i think the investor appetite for ai will shift from companies promising growth three, number for or five years from now to companies that can prove where the revenue will come from in 12 months or less. i think nvidia is on the list. the companies they have been able to grow, market cap, solely based on excitement over where they will be going three, number for or five years down the road. and eventually, as investors make the shift to, what have you done for me today, i think nvidia starts to see that ground as well. >> what about apple. you heard the news today. not a big surprise but it seems to be taking shape. stocks just shy of 195. it looks like it is on track for $200 a share. i think dan ives yesterday or the day before said 250 is the right number as he reiterates. i mentioned the barron's cover earlier that will get a lot of people talking heading into next week. what is your thought? >> i read the barron's

article. it felt like i wrote it myself. apple adding something like a trillion dollars of market value in a year where it is -- it has not actually done anything meaningful since 2016 when we get the air pods. we have not seen any major release of a hardware product since then. and apple has actually managed to get up and market share because it is the knee-jerk reaction. it is sort of pavlovian. any time the market started to get shaky this year, we jumped in them apple and microsoft as a major reaction. i think that is going to change next year going forward as investors are looking for what you are going to provide me that shows me where you are able to generate revenue today based on what you are selling today. for a company that has seen decreasing revenue four quarters in a row, i think apple will have to have something magnificent show up in 2024 that again gets people going and gets her attention and makes people say, they are serious. so we will see.

i know better than to bet against apple. i just don't feel like the party will continue solely based on what we are seeing right now. >> okay. we will see. and we will see you soon. thank you. >> next, the miller family is back talking about what is in store for investors in the new year. closing bell after the break. that you and your family need. i promise to put your long-term financial well-being above any short term transaction. everyone has a big picture. my job is to help you invest in yours. [announcer] charles schwab is proud to support the independent financial advisors who are passionately dedicated to helping people achieve their financial goals. visit findyourindependentadvisor.com

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green across the board as we edged toward the close of rebounding from yesterday's late day selloff. that was the s&p's worst days in september. my next guest maintaining his bowl thesis. john spallanzani joins me now with the miller family office with the 2024 playbook. what a difference 24 hours makes. yesterday, you graciously called in to make sense of what is happening and now we have a nice little reversal. let's cancel each other out the

last 24 hours. what is in store for the new year, do you think? >> i think good things are in store. right now we have -- we obviously have the bull market in the s&p and the nasdaq. it seems like we have a market in bonds. and that is globally as inflation seems to be going down faster than many central banks anticipated. and not only to be have higher highs in the markets every day but especially here in the united states and we see lower yields. that is really what has powered the rally right now. that would be a positive going into 2024. >> you are talking about the everything rally is what it sounds like. >> it feels that way. remember, right now, the fed is at five and three eighths basically. and the twos, 4.5 and 10 is under four. they have to do a lot of easing just to stay where they are. not even getting into an easier

state. so in order to get into an easier state, the fed would have to cut fed funds all we below the twos. and almost 200 basis points really. that would be a lot of easing. and i'm sure j powell does not want to have a soft landing turn into a crash landing. that is what we are facing now. breakeven is around 2%. this is the first time the fed went into financial crisis. there was a big thing. that is one of the first time they ever did that. they did it good job bringing inflation down. supply chain helps a lot with that. it was not the 1970s as so many people said. and inflation seems to be transitory around the world. we are seeing good numbers in the uk. pemco said the united kingdom is going to go into recession possibly in 2024. so central banks around the world, speaking this and that is good for markets.

>> you know that we are getting ahead of ourselves in any way about what mike -- what might happen with central banks and rate cuts? >> i don't think so. i think powell validated where the market was in the future. basically validated that. and remember, we go back to the analogy. they cannot wait until they see unemployment take off or some other thing on the horizon that is not first seen. they kind of have to react before the data. and to get the arket back to where the market's pricing -- the fed basically put themselves in line where the market is. again, we spoke in october. if the fed cuts 50 basis points twice, is that four cuts or two cuts? own they cut, they cut largely in larger increments. and again, where they are staying with inflation falling so precipitously, that makes them even tighter and financial conditions get tighter as they

do nothing. so does not were the market pricing was. and a member that the futures market -- and easing cycle, they will price the future rate increases that coming to the market. that is way people get into the pricing so much. but in reality, they are not. >> you know what the bare case is. there are still bears left. it seems like some have obviously turned into a bull is the market ripped. eric johnson of cantor fitzgerald is sort of sticking to his point of view that we are still going have problems. i want you to listen to what he told me a couple of days ago and get your response because you are so bullish. here's what he told me. >> i would not be able to come here and say high conviction bullish based on the current multiples and where we are in the cycle and where earnings are and where positioning is. it is not even close. what i would need is to see either a recession or close to recession where people think it

is coming and we get a big growth scare and the on appointment rate starts to go above 4%. a little bit of a cleansing and lower prices. >> how do you counter that? >> i think the bond guys always one recession basically. that is not a surprise. he has been bearish for a long time. what are the margins telling me? i don't care what he is saying but with global are telling me. global yields right now, every year, we come in with lower yields happening across the globe. so the market is telling us something. if we say, that is just you for some, i'm going to say, i'm not going to listen to what the market has done but just believe in my mantra. basically, the trend is your friend. right now the trend is up in stocks. we are in a market that just started. as it started in march, the s&p started in june and we are just on the verge of a market that is about to happen.

small caps and mid-caps really like easing conditions by the fed. a lot of people expected a recession. they talked about the recession for two years. i cannot believe he is saying that again. >> are you suggesting -- let's be honest. it remains to be seen whether earnings will live up to the hype or whether we get the cuts that we think we are and whether the economy will continue to stay out of the mud. are you suggesting that we could get double-digit gains out of the s&p next year? >> that is what usually happens. with the expansion we saw in the breath from the october lows and into november, we had a huge (indiscernible) and that was back to even. so they were trailing the whole year and everybody was talking about the magnificent seven and the breath expansion is positive for the market. the more stocks involved, the better it will be for everyone.

value is obviously favorable in that environment with rates and small and mid-caps which have trilled for a long time. you see the s&p is doing better since the lows in october and november. that is a positive. you had the antics taking the lead early and that is what usually happens in a bull market. you see the bus stocks, most powerful stocks, kind of get us to that 20% and then as we go forward, as a bull market ages, you see the rest of the market come up and that is where we are now and that is why we see this doing so much better. >> you may disagree with eric. but so we are on the level, he is head of equity derivatives. not a bond salesman. >> okay. >> like it or not. i want to make sure we are on the level here. >> he is a bear.

and he has been wrong. so we will be on the level. the bulls have been right and that is where we stand. until he is right and the recession comes, we will see what happens. >> see you soon. thanks, john. >> that is john spallanzani joining us. next, tracking the biggest movers as we head into the close. steve. >> i hope you are hungry. we have one name behind your favorite falafel ball and another known for namesake desserts making moves as we head under the close. we will review all of those when the closing bell returns after this!

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we are 15 from the close. let's get to steve for a look at the key stocks. >> kaaba and cheesecake factory getting a boost today as both are upgraded. it is believed cava can overcome changes in the coming year and the cheesecake factory exceptional growth compared to its peers. outside of food, let's talk about salesforce trading higher thanks to an upgrade from morgan stanley the firm is raising the software company to over as it sees attractive risk for ward for salesforce in 2024. >> appreciate everything today. thank you. >> next, the future of morgan stanley as outgoing ceo james gorman wraps up his tenure as a

head of that bank. we have a shareholder ready to size of the leadership transition and what it might mean for the stock as well. back after the break.

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we are in the closing bell market zone. are cnbc commentator is breaking down the crucial moments of this trading day. and we have a lot of stuff to talk about. stephanie link will talk about the nike. will talk about banks. >> what a difference a day makes. i guess the conclusion being, over the course of the day, nothing really broke yesterday with a decline. all that we are rising right now to the scene of the crime which is 4750. we will see if there is anything lasting. i think the conclusion, you get to the 52 week high and you lose more than 1% of people have gone back through history and said it's not how major markets tend to behave. that type of interplay.

all that is to the good. it leads to the question of, you have the soft landing being in the consensus. you have the help from lower treasury yields. it makes perfect since to back off more but it is not happening and some messy and disorderly way. just running amok. >> by the dip, we are learning today very clearly that it is still in play and the russell got creamed late yesterday back up 1.5%. nasdaq was down sharply. apple has been down for much of the session. we had the news about the watches. apple is green. mega caps are strong again. it gives you the idea of the psyche that still exists here. >> yes. and again, it doesn't prove anything. it does mean that those it didn't change anybody's mind really what happened yesterday except to the idea that we are not going to sleep and definitely.

back above the 2000 mark is something people have been watching for a while. everybody knows that tomorrow begins a seasonally strong year. so far, so good. >> outgoing morgan stanley ceo james gorman telling david sabre earlier today what he thinks he could see more consolidation in asset management. >> there will unquestionably -- unquestionably be consolidation for the next decade. it is on the last non- consolidated parts of the whole financial service spectrum and it is inevitable because scale matters. >> we have course wish mr. gorman well in his next act, whatever that might be. golf or otherwise as he said on the air today. you own the stock. what you think of the consolidation? >> i would say first and foremost, it has been a great stock under him. up 141% since he became ceo. he has done a great job. i'm not surprised of the comments.

asset management and wealth management is what the big banks are gravitating toward. we need to diversify and get away from the spread business. you don't get a multiple for spread business but you will get one for higher growth, better diversification and that is what he has done. >> i was going to say that. they have given you the playbook about how valuable the franchise is for the business. it has been the differentiator. >> one of the reasons i added to the position was because of the e-trade acquisition back in 2020 and i really kind of understood what they were going after. but he did such a good job explaining and putting out the strategy and executing on the strategy. that is why the stock has done so well relative to other stocks in the universe. >> and talking about asset management itself, i think you can say that maybe morgan overpaid for it. but it did get more capacity. the greater scale. and it is an industry that

obviously is struggling to grow on its own. >> you told me the other day that you are scared to death going into this. vote is what you used -- stock is up 37% since the end of september. you have had a number of upgrades. yesterday, the number one ii analyst, jp will morgan raised numbers. expectations are high. with that being said, it is up four present on the year. i think they will have flat revenue this quarter. the big question is what happens to gross margins. we learned from costco that when their margins expanded, lower freight and lower input costs helped them. in addition, better inventory. so a year ago, inventory was up 43%. expect them to be down. that will help markdowns and help margins and dtc transition. >> going forward.

>> at they are going to say china was the most important thing going forward. >> on the revenue line, china is the question mark. will it grow 10-15%? i think it will grow. providing 100 basis points of expansion but there are whispers that 160 basis points. >> the key will be guidance. can they get back to low double digit growth in the revenue margin expansion and the new product cycles? there are a lot of questions but i am a little nervous. >> a 20% upside surprise last quarter. for like three of the last four quarters. massive upside surprises off of reduced expectations. and then not doing a lot. that has been the pattern. >> they are cheering a little early. i guess there is good reason. we look different then we did yesterday at this time. we went out near 500 points to the downside. the dow jones industrial average above 37,400. that is because we are looking

at 326, 329, 330-point gain. russell, the outperform again. of 1.5%. now have set the stage for nike and ot. >> so we will be watching. and more getting done. >> and wednesday's selloff back in positive territory. that is the scorecard on wall street. but the action is just getting started. welcome to closing bill overtime. >> earnings results from nike come one final read on the state of the consumer before the end of the year. we will bring you those numbers when they cross. and a cannot miss exclusive interview with commerce secretary on new efforts to boost the