how to use some of these flagging brands and that is going to cost money. >> thank you very much for being with us today, happy new year. we will see you many times in 2024, i am sure. >> watch the nasdaq which is been in shallow negative territory. >> thanks for watching power lunch, everybody. >> closing bell starts right now. >> thanks, welcome to closing bell. here the new york stock exchange, in this make or break our beginning with the still unsettled market and new questions about where stocks are going from here. we will ask our experts over this final stretch. in the meantime, your scorecard with 60 minutes to go in regulation, it has really been tough to get much going for the major averages today. a bit of buying in financials and industrial and healthcare, but not much else where. there the majors right now, one of the green, two in the red. a downgrade for apple today,

weighing on those shares and weighing on the sector at large. there is been a water it bounce in nvidia and tesla today. a little bit of buying and some of the stocks that have gotten pushed down in the early part of the year. as for interest rates, probably not helping equities at the 10 year back to 4%. right at that level now. that is ahead of tomorrow's critical employment report. we are going to be watching that closely tomorrow, taking us to the talk of the tape. whether the enormous end of the year rally has become the great habakkuk 2024 and how much longer it might last area let's ask adam parker. he is the founder and ceo back here post nine. good to have you back. are you surprised by anything that is going on to start the year? >> night really. the great giveback means three trading days, almost the third one is over. we still have 249 to go. but i think people knew we are in a chasing rally, you are going to have a bit of rotation here in the first quarter.

i think it makes sense to look for businesses where the estimates could be achievable, maybe healthcare community financials. i have not seen that is a really surprising. >> how much more do you think mega caps need to correct, if we need to use that word? because the narrative now is become that they got way ahead of themselves, the multiples have grown to rich so they need to come down somewhat. is that what you agree with? >> not really. i think the businesses deserve future premiums in a market, i think the media changes at 17. the low to mid 20s, for sure, they do. they might be a little bit ahead of themselves, but frankly i was looking at the 2025 estimates for the biggest 20 companies in the market, even if they miss the netting and comp numbers, they are stubborn have twice the net income they had in 2020. these is this is a really growing the prophets faster than the rest of the market.

>> apple and microsoft are not trading in the low to mid 20s. >> well, i think apple is little bit different, each one is a little bit different. but i would say an aggregate, mid-20s is fair. do i have to go lower? not really. i just think my view is the median company in the market, the average company's gross markets have now expanded. the market will be higher. >> so you are bullish for this year? >> i think the distributive outcomes is skewed to the positive, that we in the market higher than we are now. and the reasons are one, the specter of accommodation that will be there, i don't think it will be as much is what is currently in the price. what if the ecb and the fed are accommodative i don't want to fight that. and i think margin expansion that is usually good for equities. today, right now, three weeks, i don't know. but i think if you look out in

12 months we will be higher. >> would you be a buyer of the dip right now and some of the mega cap names? or does that feel like it needs to shake out a little bit more before you become comfortable and confident to do that? >> not everybody is totally overweight to the same degree. that was the place to make money. >> most institutional investors are way underweight. if it is a mutual fund they have 525 rules, so they can have more than 25% of the fund, so they are underweight. or if they sell one down below they cannot buy a backup. most of the people who were run long on the institutional money have been underweight structurally and it hurts them when they rally. they had, i will call it dated risk management of governors. someone said you come home with report once a resent. >> i was looking for a lot of contrarian i guess to start the year. places that we really need to look at are getting enough of and talk. >> payments, maybe.

>> paypal got downgraded today. let's put a paypal if we can, guys. i think we will talk about that i have time today. >> i missed that, sorry. >> but a lot of the stocks ran a block of a lot. >> some of the businesses looking down the line, maybe we saw a big rally in banks, but they are still pretty cheap with the institutional investors. healthcare, i think a lot of people think it is an election year so it won't work, but these names look like they have above average. >> you been i like it for many months, is this going to turn? >> i'm still overweight energy. i think we cannot produce what the world will demand, so we are going to end up having demand exceeds supply. i don't know anybody who is consistently writing a 3-6

month view. >> you think it's a good place to be? >> i do. i think ultimately when you look back one, three, five years up before the market, the way they did and 21 and 22. but it is very hard tactically to know. i think the recession is more in the energy equities that it is in the other parts the market. >> i looking at stocks, and the notes you get are producers, i'm presuming this is stuff that you did. you added amazon? that's not you? what are you talking about, fund managers there? >> yeah, i think we are looking at in our note is which fund managers made high conviction, which is 3% or more that they did not have in the previous. so they are incremental. it was not really my recommendations. >> you agree with those? >> i think a lot of people, the

hedge funds in particular have been underweight, and they're trying to find the ones that have either accelerating revenue or potential for margin expansion in 2024. that was the playbook, margin expansion. i think people were looking out thinking maybe that is good risk reward for that or margins. >> nobody better to have then you on what is happening in the chips. used to be a chips conductor analyst in your former life on the street. >> we do a lot of work on this. >> so the smh just had its best year in 20 last year. these talks have been kind of upset to start the year. what is the story here? what don't you like? >> i think that is the perfect example of stuff the got a little ahead of itself. i'm going to sell that and try to find somebody else. i'm not at all surprised, i look a lot at the big position,

and clearly that was a monster move last year. i'm not surprised we get a little short-term selling. i think it is a bit of a tale of two cities, meaning the businesses that don't benefit from ai probably went out more than they should have, have high inventory, men i give you great guidance in january. and the ones like nvidia that do have some ai exposure probably are going to have better performance in 24. >> have you been looking at any of the auto related ones? like mobileye, today's disaster? texas instruments. >> i think the ones you did estriol and autoexposure are the ones that have less ai, it is the guidance. i think nvidia is a little separate because they still have new products and/or demand that exceeds supply in the short-term. >> lets bringing contributor joe terranova. it's good to have you back. do you agree? does any of this surprise you in the first few days?

>> the market is going to a technical correction. it is very clear that the market was technically overbought. in particular when you look at semiconductors we have identified the extreme difference between price and critical moving average well beyond the historical sweet spot by, in some instances, 10-15%. i think we want a little bit of a risk here. i think the risk we run is that a technical correction evolved into something a little bit larger. what troubles me is that the economic data right now is coming down better than expected. you have two reasons to believe the federal reserve cuts in march. first reason is they bring inflation down. i don't think they're going to be able to rely on ringing inflation down quick enough by the march meeting to cut 25 points. the market still suggests the 65% probability of that march cut. now you are relying on the economic data weakening significantly. i don't see that either.

i am concerned that a technical correction evolves into now we have to price out that rate cut in march and i think this last a little bit longer. >> we got to excited about the idea of rate cuts? >> yeah, a little bit too excited, but the evidence is in there. either for the federal eserve in the form of inflation, receiving fast enough, or maybe the economic data deteriorating enough for the fed has to come to the rescue. the evidence is there. >> i think what is hard is when you go back and look at the date of when the fed cut, at least in our investment lifetimes for us here, you really only had big accommodation when things are really bad. global financial crisis, covid, this feels a little bit more like a tweaking of a slowing economy that are true crisis. i'm not sure how much i can rely on history as the guide for the place in which they do it, the magnitude in which they do it. i think the bull case would be more you dream that they are going to be accommodative, they stop hiking, for sure, and if earnings can hold it okay in the

stock market, i think it is a cocktail for a good equity market. i don't think it is going to be great with great guidance. if i look out six, 12 months, and the accommodation going up. >> how good your earnings have to be? we are about a week or so away where we will talk about earnings every day. >> i'm going to answer that, specifically identifying the max out. i think it really comes down to whether the earnings look like? how strong in the semiconductor industry are the earnings, how strong are the earnings for nvidia, for the companies that are benefiting from the innovation surrounding the spending, surrounding generative ai? i'm looking at those companies that can report the third week of january, and it will be critical to hear that they are exceeding these earnings expectations. >> i would come back like isn't it about everything else? those of the more bankable

earnings. are all the other stocks needed to deliver? >> i mean, the bar s very low for financials. healthcare you are coming off related to covid, the bar is low there. i don't know, i think if you look at a broadening our rally, i think the expectations for earnings are somewhat muted. >> a couple of things. nike, fedex, some misses from what i would call historical microcosm stocks that did not freak people out too much when they happen, i think that >> go, no big deal. >> i think the market reaction could be different. when i look at the macro landscape i see a couple of positives in a couple of negatives. the positives are the economic activity improving a little bit, leading economic indicators as some of the major surprise industries look like they are improving. and financial industries are pretty easy. a little bit of a move back in

the tenure, but they eased up from where people were three months ago. >> that's a positive. i would say well, you know the bar is really low for the financials. what happened between the end of october and the end of 2023 i thought raised the bar for everybody. because now you have stocks, let's just say morgan stanley, for example. it is up near 14% in one month. a month ago maybe the bar was low. does the 14% or the 13 mall is 14% for city or bank of america of 10%, has not raised the bar for all those names? >> in the case of city they have already told us that the trading revenue is not going to look good in these coming quarters. they got ahead of that a little bit, and i think others are going to be struggling with having trade revenue that does not look good, as well. in the case of the wealth management industry, it's interesting. conversations i had two weeks ago was that you had a lot of investors who were still sitting in money markets. and

what they look at? they look to the market, they said it was richly valued and they did not want to go in and pay the price. now the market is correcting in the same investors sitting in the money markets are scared that it is evolving into something bigger and they are just going to sit back in the money market. the so-called trillions of dollars sitting on the sidelines, i don't know what motivates it to get involved in risk. >> well, therefore percent on the tenure again. is that a principal at this point the rates, well, we sort of decided the rates of peaks. i'm not suggesting they are going back to 5%, but the idea was that it was going to continue to trickle lower, and that is going to be great for equity, specifically growth stocks and longer growth stocks. we are back at 4% on the 10 year . getting a little nervous. >> when i think about the banks i don't really think of morgan stanley and bank of america quite as much is maybe the regionals would have. there it makes sense to me that the ones with the holding balance problems should be up. there intellectually honest, sort of available way less october 1 that it was now.

their whole maturity issues are going to look better than they did at a few months ago. they are different, they are kind of superior assets, private wealth, kind of a call option on activity picking up at some point. i kind of parse them a little bit. i think the regional banks and some of the ones that are more balance focused are worth more now than they were three months ago. >> you are betting that the banks are just getting going. you bought goldman sachs this morning. >> it's up 10% in a month. >> look, everyone is looking at the ability for the yield to stephen, for us to finally see a distant version. and everyone is kind of looking at that. we have not seen that since july of 2022, that's not why i'm buying goldman sachs. i am buying in sacks because they have done a phenomenal job in taking the business over the last 18 months and shedding a lot of the investments that

have been underperforming related to getting involved in consumer oriented businesses and getting back to the true of what goldman sachs is. i agree with that, at the end of the year sitting here with the markets higher, you're going to see activity going to increase. investment banking is going to be really strong. and i think during the ride to the end of the year there is going to be tremendous amount of opportunity in the capital markets, in trading. and i think goldman sachs is returned to being one of the preeminent players when you think about training. >> yeah, short term i like the regional banks a little better, because they are still cheap. but i can see the case for activity picking up, and unbiased because i am a morgan stanley guy. i'm always going to like morgan stanley better than goldman. >> you can't take the jersey off. >> no. i love them. i think the management team is

great and they are great business. i like them all. i think if it is a call option on improving activity, which could be a case in the second half of the year, i think that you want some exposure. i think short term i like these chief regional banks with low expectations, i do agree with joe, the bar is not that high for earnings. >> would you expand that and say you like small caps more than the regional banks, which of the biggest part of the russell? >> yeah, i want to own companies where the gross margins are going up. i think there are a bunch, and that is probably why am a little bit more skewed the positive than the consensus here. >> what is an area of the market that you hate? >> physical retailers like target and stuff like that. >> target is up, i think, like 30%. >> i think it is an amazing short idea. -6 online, -4.9 in the store, can't play the dividend with

the current cash flow. all these cat backs don't add new stores, everything wrong with it. >> but is that on the real estate or is that on the consumer weakening? >> it's not even a macro call. i think that would be frosting on the cake. i and cake is some scale in grocery and beauty to walmart, and they are -5 in the physical stores, not adding new stores. tell me a real business that is comping -6 online. i think it is more than that. in order to deal with the stealing, they got a problem. i rented a report their ceo saying the way they would deal with the shrink or stealing is working with the minnesota legislator. you have a better short idea than target see you working with the minnesota legislator i would love to hear it. >> signaled by the reasons why the stock is up more than 30%? >> no, they put a better margins when they reported. but the growth algorithm for all physical retailers is you either need to combat your existing store base and add new stores.

you can't have negative on both and be a sustained business. i don't mean to pick on that one, there are others like it. but mostly hitting on physical retail spaces in america. unfortunately for me i still maintain the concern surrounding energy. and the reason i have the concern surrounding energy is that there is a tremendous amount of supply. you have seen globally countries have responded to the pressure that their consumers are feeling to energy prices being higher in the early part of 2023. there is an abundance of supply, and the speculative positioning is still overweight. >> i'm well aware of that. that will be addressed at the end of the month. we may or may not move in a particular direction. >> let me stop you for a second. just remind people. we've been talking about energy for a long time. you had said this last quarter

of 23 was make it or break it for these stocks. turned out to be maybe break it, which is what you are talking about. because they certainly did not make it. >> it really did not go anywhere. and you are hearing adam talk about fundamentally energy seems to be, to a degree in a good position. it's in a good position over the next 12 months. but you have to to acknowledge that price is not responding in the near-term to what everyone suspects is going to unfold as we move forward in the future as it relates to supply and demand and balance. right now the supply, demand, and balance is over the supply. >> is he going to make a mistake i rebalancing out of energy? >> it all depends on investment rising. i'm saying we have something like 19% of new vehicle sales are ev or hybrid, i think eight or 9%, cars are born and then

they die. they last 11-14 years depending on where you live. if you look at other consumption it looks like demand six or seven years row, we can't currently produce that with the cap there. we are going to be barrel short and oil prices were go higher. i don't know if that is two, 3. botanically, sure. >> murphy's law is going to show up. >> he suggesting we get out of energy. i didn't say i was going to get out of energy. >> i know where this is going. i know where this is going. >> you have viewers the want to know. >> you're suggesting that you should be leaning in. >> i'm saying if you're asking me do i think energy outperforms in 10 years, yes, by a lot. do i have any idea in the next six months? no, i do not. >> we are going to leave it there. >> richer and skinnier for 2024. those are what we are looking for this year. >> for yourself? >> skinnier and richer.

>> there is a mirror right there. the mirror keeps us all honest. adam parker, thanks. let's go to christina now, who has more on the big moves today in the chip space. >> autonomous driving company mobileye having its worst day since 22. down 25% right now. expects eight 35% drop in revenue because of excessive customer inventory issues. the cut weighing on intel since intel is a majority shareholder of mobile lie. the effect is really hitting otto's mis. allover 3% or more. this is the first negative preannouncement from a chip company in 2024, and could be isolated to mobileye or set the tone for auto expose names ahead of upcoming earnings. shares of microchip are about

1% lower right now, citing weak auto and industrial markets. separately, the biden administration announcing microchip is the second recipient of the chips act funding. it is going to receive about $162 million to help expand and organize equipment and increase production of mature chips used in auto, industrial, and defense industries. >> christina, thank you. we will see you in just a minute. just getting started here. i'm next, trading the mag seven. apple, second downgrade this week. the broader tech spaces struggling to gain traction, as well. amy is back with how to play that sector right now, owns at least a couple of mega caps. we are live wi tthhe new york stock exchange and you are watching closing bell on cnbc.

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>> welcome back. shares of apple are falling after the company's second downgrade this week. this time from piper sandler setting iphone sales and evaluation. the rest of the magnificent seven also slipping to start the year, as you know. top holdings include alphabet, apple, microsoft, nvidia. are you getting a little nervous? >> in the short run there is likely to be room for some of the stuff to slip. we have started to see that into the new year. for the longer term we do think they have good fundamentals, good growth prospects, good cash flow which i think is very key in this market.

>> you feel like you have a good handle, i know you have to judge all this individually. what their evaluation should be,". apple at 28 1/2 times, somewhere around after you get the point where i'm going. you have in your mind, okay, i think this needs to correct to this level and i think it will be fine? >> it's a great question. we think about price-to- earnings ratio and an absolute term, historically speaking. we also look at peg ratios, which is especially important where the pes are very high. the from a peg ratio it is more moderated. in general we are comfortable buying into these names, not now, but in the past, buying of these names knowing that the growth is likely to grow into the multiple. my point being the cash flow and the balance sheet being so robust. in our opinion these are really key attributes to have in this uncertainty. >> would you urge people to sit back and relax for a little bit, watch these things settle out before adding new money? because the last couple of days, looking at meta, for

example. yesterday was microsoft and alphabet that were green. a little putting toes back in the water there, would you suggest sitting back and relaxing for a little bit? >> that is spot on, scott. we are pausing on any new dollars going into this group of stocks. in general, the market after this great burst of optimism from last quarter is now sitting at a price to earnings ratio of 20 times this year's earnings. it is a little high, from an absolute standpoint, high from a historical standpoint. so we need to see earnings grow into this multiple. we are really looking for opportunities outside of the mag seven at this point. healthcare, maybe financials could be areas of interest for us for the time being. >> you feel like earnings are going to meet the moment and grow into the multiple? obviously banks on the economy remaining strong enough, margins holding up, revenues and the like.

>> yeah, another great question. i think for the moment, the market is expect almost an 11% growth from 23 to 24 earnings. the next couple of weeks, even months will be very key for us. management teams are prepared to talk about last year, which we think will be okay. really the focus will be what is going to happen this year. i think there will be some adjustments to the 24 numbers. from my perspective it is going to be very important to watch what that's going to look like. and we do think management teams will lead more conservative. >> what about rate cuts? the market is expecting one thing. maybe the market is a little ahead of itself was six cuts starting in march. does that sound too optimistic to you? >> it feels little optimistic at the moment, considering where the valuation levels art. i think the fed is doing the right by trying to take back a little bit in terms of the minutes that were shown more recently. in our opinion i think the key is really to make sure inflation is heading back to that 2%. we have not gotten there yet.

we have to get there and stay there. i think the fed needs to be very careful to not declare victory on inflation too prematurely. >> on that note, you are obviously not expecting that many rate cuts. how many do you think a realistic, and what do you think that means for the trajectory of the market in 2024? >> i can't tell you at the moment, because the inflation data is still coming in. we have not gotten back to 2%, which is the long-term target. i think that that is not trying to say they want to get near 2%. they want to get to 2% and stay there at a sustainable level. for us to think about rate cuts we need to see the data continue to flow through. i think for the moment, maybe between one and three is reasonable, but six is, from our perspective, a little beyond what we are comfortable with. >> what kind of overall you're doing think we are going to have in stocks? >> we think it is going to be a positive year. we don't think it will e a repeat of 2023, considering that earnings are likely to be positive from a growth standpoint. i don't know if the 11% is what

we are going to get to, but if it is positive we do think the markets should have a reasonable year. another aspect to think about is the fact that it is an election year. not to say historical performance is an indication of the future, but historically speaking when there is an incumbent candidate running for president the s&p has landed positive on territory for the year. that is something to keep in mind as we walked to the next couple days. >> it will be fun to watch, and looking forward to doing it with you. omnes, mapping out the market. top technician jeff degraff, we will see where he sees the rally coming from here. some pretty good calls last year, that's for sure. he will tell us the twseoro cts he voted on in 2024. closing sector is coming right back. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading.

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>> it is been a volatile

section for stocks. the weekly average trying to hold onto their win streaks, but there is technical trouble growing in the starks. let's ask jeff degraff, the founder and chairman of renaissance macro. welcome back, happy new year. >> happy new year, scott. >> what you make of this early trading? >> well, this couple first week or so i think you had some tax law selling that helped to create the vacuum that gives the advantage. but i do think longer term you hit on a little bit, nine straight weeks of games through last week is pretty unusual, to have happened roughly 20 times in the last 100 years. and usually it implies stronger gains ahead, and i think it is really a reflection of some of the indications we talked about , 20 day highs and other 20 day moving averages. those are indications of bull markets. we just our outlook call this morning, you know the first thing we look at is are we

enable market, bear market, or undetermined? it is clear to us that we are in a bull market, and frankly we have been for at least 10 months. it really kind of nailed that home with what we saw in the fourth quarter. >> what if part of this was on a shaky foundation, so to speak. especially towards the end of the year. seasonals, positioning, growth is slowing, the fed is probably not cutting as much is the market things. all of that together, does that weaken the case that this is a new and about to rage bull market? >> i don't think it does. i certainly am sympathetic to the idea that the fed is probably not going to be as aggressive as the market pricing and right here, but i don't think you can disconnect that concern with the reaction that we have seen from equities. and forget the magnificent seven, or even the s&p 500, for

that matter. we have seen a really good rest indications on the microcap index, the small-cap index. if you really look globally, particularly if you take out china and hong kong, the global markets are acting much better. so whatever is out there, whether it was a concern that the fed was going to overstep their boundaries or global central banks were going to overstep their boundaries, that is coming off the boil. i think that is going to give us some latitude to move higher. the other thing to keep in mind, because i think people are concerned about this, most of the credit indications, and when i say most, i mean all. the credit indications that we look at still say there really isn't a with of credit concerns or recession in these markets. so i think the fed has done a good job of engineering what is going to prove to be most likely a soft landing. >> what if rates get back on the boil?

we went from 5 to 4 on the 10 year, and i don't know, we are still little concerned on this last mile of inflation. if the fed doesn't cut as much as the market things, which you say is likely. if inflation doesn't come down out quick enough towards target, we could be in an area where you we get a little sticky for a while. >> a little, but i think that is kind of reaching or grasping for a bearish narrative. if we look at the data underneath the surface it is clear that it is moving in the right direction. energy obviously a big art of that call. i think we are in much better shape, and frankly we thought that for at least a year now, that we have been in better shape on the inflation front than the consensus we are still in that camp. i think there is some latitude there. the real question is real rates for us. as long as real rates stay roughly below 200 basis points, that is plenty of ammunition for the equity markets. we start getting about 325,

250, that does start to pinch off the equity market returns historically. we are not in that zone yet, so i think we are okay. can we take the 10 year yield action for 25? absolutely. what i have consolidation impact on the s&p? i absolutely think it will. will it dislodge or derail the bull market? i don't think that happens. >> lastly, it may put more pressure on tech. how much further do you think that needs to reset, correct? to pick your word, come down? >> i think what is interesting is when we get this starting to expand, the money has to come from somewhere. it's coming from somewhere. the concentration we had in the magnificent seven i think and up not being necessarily a liability for those names, but i think they probably underperform. one interesting thing, and i won't belabor this point, but some of the work we have done

shows that the path we are on right now in terms of the pricing from sector styles, commodities, et cetera is most similar to the 1995 path when the fed first cut raised. all the other paths don't look anything like that, but in the 1995 path the minute the fed actually cut rates the first time, tech was doing very well. outperforming up to that point. and it actually ended up peeking at a relative basis for the next 6-12 months after the fed actually cut rates. you can drive a truck through the variability of some of these studies, but i do think it is interesting that the concentration, the enthusiasm, the sentiment, if you will that is embedded in tech may actually end up proving to be a liability when the fed cuts rates, because it really believes a lot of other things that have been under pressure. one of the areas we think is really set up bullish leave for 24 is healthcare. >> so the market can withstand a bit of a period of upset for mega caps?

>> i don't think it's going to be that big of a problem. i think it results in consolidation. but as long as the breath is there think it is find. >> of next, tracking the biggest movers as we head to the close. back to christina standing by with that. ev battery maker quantum space getting a vote of confidence for one automaker. and can tiktok save pallets on? investors think so. that is up next. ♪♪ ♪♪ ♪♪

you know what's interesting these days? bitcoin. look for bitwise, my friends.

>> we are 15 minutes from the closing bell. back to christina for the stocks she is watching. >> peloton. a big day for fitness creator peloton. it is partnering with tiktok to bring short form videos and other content to social media. a new battery test results charging up quantum scape stock. the lighter vehicle battery maker is up nearly 50% today. the volkswagen subsidiary announced it had completed a test of quantum scape solid- state lithium battery for electric vehicles, and the results are encouraging. a vote of confidence causing the stock to soar. >> allig, chsta, rhtriin thank you. up next, netflix shares are higher. we will find out what is behind that move. closing bell is right back.

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>> we are now closing bell market zone. here to break down the crucial moments of this trading day, and walgreens slashing its dividends. the details for us there. and julie on why jpmorgan is bullish on netflix this year. mike, you first. whatever is going on the market, it is still unsettled. trying to figure out what he wants to do as we go through this year. >> the last time we had a multiweek rip through november, we knew we were over, we knew we had a take a pause. it was the most pristine and painless sideways move we had. early december, thereabouts. it is maybe a little too much to ask you get two of those in a row, where basically you barely notice on the chart in retrospect. we are not even 2% off the highs, the way i'm thinking about it is we have undone post fed meeting leg of the rally.

we have started to take some of you sentimental positioning stuff off, you look at the weekly national investment manager talley, cutback equity exposure. starting to see call ratios. people are bracing for something, it is unclear if it is a specific thing or just that we spread the news, the soft landing is probably here and nobody else needs to be convinced of it yet. >> you heard jeff. not to concern from a technical standpoint, certainly. >> if you mean on the trend in the market behavior itself in terms of what it is told you and what it tends to indicate for the future, you're pretty comfortable that this dip will likely be bought. i am with him, i am not really concerned about micro studying the fed expectations and futures, if it is going to be march or not. all i know is the investment- grade corporate yield has gone

from 6.4% to 5.2 in less than three months. that helps, no matter what else happens with the fed. >> so looking at walgreens here, which is down more than 5% on a dividend cut. >> yeah, coming well off of the low, scott. the results for the quarter came in well ahead of expectations, joined by strength in pharmacy prescriptions and boots uk international. but wentworth just 2 1/2 months on the job, he says he is focused on getting the company's finances on stronger footing, stressing that everything is on the table, starting with flashing that dividend from $.48-$.25 a share. about 48%. first cut in 45 years for the company, which takes the yield down from 7% to around 4%. wentworth told me the sale of boots uk, which was long rumored, is also on the table as he focuses on bringing down the company debt in the wake of accusation sku health services he is very much committed to.

>> julie on netflix, where i have the call from j.p. morgan on hand here. $510 is the price target of 470. why are they doing this? >> well, netflix shares are up going into the close on the j.p. morgan note. reiterating with the $510 price target, despite the fact that the stock had gained about 30% cents reporting strong third quarter earnings. that is four times the growth of the s&p 500 over that time period. now bullish that netflix has the ability to accelerate revenue growth, expand margins, and drive multiyear free cash growth. they point to a couple of things, including page sharing, saying that after two straight quarters of strong subscriber growth they expect the benefits to continue for several quarters moving forward. they also point to the potential around building scale for netflix's new added tier as

well as bundles for new internet service providers such as verizon as well as bundles on devices. netflix shares up over 54% in the past 12 months. scott? >> all right, julia, we appreciate that very much. $700 on the stock is way in the rearview. 500 is the 52-week high. not that far away at all. >> the performance was already classic in a sense. they are just marking the price target to market, and the stuff we like before is still working. we're just kind of pulling them forward into the coming year. free cash flow, it was not long ago that are just one positive. like a 3% cash flow if you buy into the definition of it. similar to amazon. that gives you a frame for help often double the business is now showing itself to be. see if they can continue to expand. >> you mentioned a while ago, the last time we went through something like this to have this easy sideways move in mid december. we really didn't have

a lot going on, okay, we had some data come out. we had a fed speaker sort of set is in the right direction. now we have a lot of data. tomorrow morning's job support, and earnings. >> earnings are definitely going to be the thing i think that we always hesitate during earnings season. i think once you get the massive reports and, it is going to tell us we are right to think the companies would be able to feast on a soft landing type environment. in terms of the jobs number i think good news is good news. i think the fact that inflation is in such a positive downward trend enables you to embrace positive economic results as opposed to fearing them. i still think that when and how much the fed cuts is the absolute single swing factor for this market. i heard parker mentioned that the economic has barely bounced higher from a flat level, so it seems like we are still okay.

we'll see how the market reacts to it. i still think 4 1/4 on the 10 year is where you might have to be concerned about the hesitation. >> no accident the s&p 500 is sitting right at 4700. right at that level. keep an eye there, we certainly will. obviously they will do that tomorrow, to get the job report. will run into the market, as well. i will see you tomorrow. >> well, stocks finishing mixed as the 10 year treasury kissed 4%. that is the scorecard on wall street, but the action is just getting started. welcome the closing bell overtime, another rough day on wall street as the nasdaq falls for a fifth day. and the major averages on track to snap an eight week winning streak. >> and coming up, will dealmaking pick up the pace in 2024? cities head of investment banking tell us which sectors are most ripe for mn day.