losses of one-way movers, thanks in part to the rising cost of living. their most dates have lower no state income tax. by the way, texas has the most fortune 500 headquarters of any state. >> good job texas. >> thank you for watching power lunch. >> the closing bell starts right now. thank you so much, for watching closing bell on this friday. i'm scott wagner here live on the new york stock exchange. the state of stocks given the rocket out of this new year. we are going to ask our experts where things could go in the weeks ahead, including tom ali, he is coming up in just a few minutes. in the meantime, your scorecard with 60 minutes to go in regulation looks like that. it has been a pretty volatile day, following a stronger than expected jobs report than weaker i am services reading. we are in the red, modestly so, across the board. let's zero in on tech for a moment. the nasdaq is down 3% this week. boy, apple?

worst performing mega cap this week after a couple of downgrades there. yields? they have been up and down as well, today. that is a big reason for the gyrations in the major averages, we think. a jump after the jobs report, a fall after that i s m. another rebound which certainly seems to be hurting equities. the -- treasury now sitting above 4%. it takes us now to talk a. details of start to 2024, what lies ahead with them critical data and -- looming it is all coming in fast. let's welcome in courtney garcia, payne capital management senior wealth adviser with me here. welcome back, happy new year. >> happy new year. thanks for having. the >> what is your big take away from the way the year has started? >> the big takeaway is what we saw in october, everything rotated, right? out of the magnificent seven, it was the place to be in early 2023. everything has shifted. now you are seeing your interest rate sensitive things, small cat, real estate, energy, they are all starting to perform. i think that is only getting continue as we look into 2024. that is where you are seeing

some of the euphoria with artificial intelligence is going away. people want to see that actually reflected in earnings. they think they're gonna go back to fundamentals. they are gonna want to see this value opportunities. >> it's not like you had a ton of money coming out of mega caps and going into the russell. it has been a pretty equal opportunity sell-off. the nasdaq and the russell both are down about the same on the week. it's more than 3%. what is that telling us? >> i don't think we want to extrapolate too much from this one week. really, if you go back the last few months i think that will show a stronger picture here some of that is you're going to get people to taking profits across the board right now. it is interesting but the investor sentiment levels have been overly optimistic. at the same time we are seeing this with our clients, people are still very cautious. they are keeping their cash on the sidelines. if you look at cash levels, the end of the last week of december, carroll was actually went up. even though people say they are optimistic with the market, people say the insurance rates are coming down, they are still keeping their money in cash. they are not actually to get out of the market.

they are not actually believing that money market rates are going down. it is not worth advising but you're not seeing that right now. >> does that mean that some of the next leg is going to be a bit muted? there is just not enough cash, new money, coming in? >> i would say that still leads to an opportunity. that money can still lead its way in. people are not overly optimistic. they are not throwing all their money into the markets. they are not seeing that euphoria. i think that could lead to a further upward trend. >> you sound like you are a believer in the idea, though, of that rotation being longer lasting. money coming out of mega caps winners and going out of other unloved areas, small cap or what have you? >> absolutely. we are talking to our client about that right now. if you did rebound your council far, you are going to be overweight in technology and those seven companies. i have a lot of people who say, oh no, i haven't s&p 500 fun, a total market fund, i'm good. you have no idea that about 30% of those is those seven companies. if you have made a change in your portfolios, you're gonna want to take those profits and put them in other areas.

i'm not getting out of the magnificent 7, but i'm taking some of those profits and looking at other opportunities. >> i look at the isf service today, that is the one thing you cannot have deteriorate. the whole notion that, even janet yellen the treasury secretary said today in an interview that, we can describe what we are seeing now as a soft landing. my hope is that it continues. what if the economy continues to soft in a bit more than it is now? still stays out of recession, but continues to be a little bit weak. doesn't that take some of the off of those other more cyclical and small carriers of the market? >> not necessarily. we need the economy to soft and to a certain extent went insurance way to in fact come down. expectations are there. we dean a softening for inflation to continue come down. we don't want to soft and so much we go into recession, right? it is that perfect scenario that we need to get into. i think that is what we saw with the job numbers today, bringing into reality the fact that, yes, the economy is softening. we really have a really strong labor market. i think what people expect the

6 to 7 rate cuts next year are getting a little overoptimistic. and a greater gonna come down, maybe not as much as people have gotten excited about in the last two months. it will probably be a little longer lasting. >> i'm sorry to interrupt you, i don't know many people, if any, are expecting the kind of year that we just had to be backed up in terms of performance out of the s&p 24%, or whatever. what is in your mind in terms of what seems realistic for the s&p? mid single digits? high single digits? low teens? what sounds reasonable to you? >> when you have a year like last year when the markets were up double digits like they were, you actually tend to have a mid single digit year next year. again in the upwards direction. i think the odds are in your favor we will continue have a positive. here we are going into an election year. i think, as far as interest rates come down leading up to that. i don't know if it will be the same kind of performance we had last year. specifically the companies that did outperform as much as they did, i don't think where that performance is gonna come from. that is what you need to be aware of. >> you think it is coming from

the laggers. the health care, energies, the small cap. why health care and energy? >> both of those are going to be beneficiaries, especially health care, is going to be the beneficiary of lower interest rates, right? you will see more activity. as they borrow money, it will become more feasible for them. i think you are going to see a lot of that as we go through 2024. >> energy is a big wild card. a lot of people trying to get on that side of the. both saying, okay, it had a great year couple years ago. last year was a total doug. now it is going to be the year, yet again, because supply demand still out about. what is your take? >> i think that is the thing. it is just a supply and demand question. i think that really leans in our favor. a lot of the energy questions, back in 2020 when the prices really became out of whack, they have not become so much more efficient. regardless of what is happening with energy prices, as long as they say relatively in the race that they have been n, i think those companies are gonna continue to show the good profits of people hopeful about. >> what do you think is writing on next week's cpi? as we roll in the top we have

these gyrations in interest rates, also in the performance of the markets, the job reports come out. wages and a job reports are a bit stronger than expected. yield start to tick up. the services report comes out, yield tick down. now they're moving back up at 404. what is the area that you get concerned in? >> i think we need to continue to see inflation coming down. that is the ultimate thing. i don't think one number will, necessarily, affects things to negatively. it will not be a perfect straight downward trend. overtime we need to continue to see those numbers come forward. ultimately, the fed has said, over and over again, they are data dependent. if the data doesn't support, pausing and lowering interest rates, you're not gonna see that happen. >> i wonder, because the market was so an easy, it felt, this week, even though, as you said, one week doesn't a new story make, necessarily. a disappointing cpi is going to have, maybe, a larger impact. we are already kind of wondering, okay, maybe we were

a little over our skis in the idea that they would cut six times. >> i think that is the big thing. cutting six, if not seven, times, depending on what you look at, that is the thing where people probably have gotten a little bit over their skis. any sort of more information, people will start to realize, okay, maybe it won't be. that the fed may be on the cut three times. the bigger picture is likely interest rates are coming down. yes, you are right, i think some of the exuberance, the six and seven times, that will probably come. and >> let's bring in cbc contributor, stephanie like i'm into the conversation. stuff, it is great to have. you >> what is your big contribution to the way the year and this week has started? >> the economic data is supporting a soft landing that all of us is talking about. i always worry we are always talking about the same thing. you have to look at the number, scott. it is not just the jobs report today. look at a dp, look at challenger gray, look at the initial claims which is a leading indicator. it is that 270,000 week average. so far from a recession.

i also look at durable goods, i looked at factory orders, those numbers came in better than expected with business spending intentions going higher. there are parts of the manufacturing economy that are seeing a pick up. the onshore, the reshoring, all of the infrastructure bills that have been put in place. you add it all up, the growth is there. obviously, we all want to see the inflation numbers come down so that the fed can cut. it is not. 4.1% is still okay but it is elevated. that is why i don't think that is going to cut six times this year. if, by the way, they do, that means we had a massive decline and turn around to the downside of the economy. i just don't see it at this moment in time. the three takeaways, fewer cuts, better earnings, i think the consumer has been really strong. i am really encouraged by costco. i know costco is a beast in itself, but you had 100-day

acceleration, plus the one x today that they had in this month from the first quarter. 100 basis points acceleration! and you had a 400 bases exhilaration in on food purchases. that is discretionary. my thinking is, maybe services is coming down a little bit from the torrid pace that we have seen. maybe we have seen the bottom of the goods side of the economy. the goods buying in the economy. let's keep an eye on. it but we are pretty encouraged. >> do you start to worry at what point the strong number that you always site as a point of strings in the market story undercuts the cuts? then the market has to reprice itself. i think that that is what we are dealing with this week. six cuts got way ahead of themselves. i definitely do not think they are going in march. maybe they do three, we will have to say. we were all data dependent, including the fed. cpi number next week is huge.

and the ppi is pretty big, as well. as far as earnings we will listen to what the companies are dealing with and how they are handling all these moving parts. i do think whether the fed cut three, four, five, one, two, earnings is gonna come in better than expected because the demand is coming in better than expected. i feel very strongly that the margins that is going to stay strong. especially because wages are coming down, input costs are coming, down supply chains are getting fixed. >> do you agree with that comment, courtney, that earnings are gonna come in better than expected that stuff just made? >> i do, actually. i think the idea that this earning structures ending, we will only see improvements from here, is really what we are looking forward to. i think she made a really good point, the consumer strong right now, right? ultimately we are a consumer driven economy. even if wages do start to come down, people are starting to spend into their savings that they built up during covid. maybe we start to see a little bit of a slowdown. as long as we have a tight labor market, people do have the means to spend. we do have a right confident consumers. that will likely lead its way right into. earnings >> stuff, you like the

same sectors, in a sense, that courtney does. health care, energy, maybe in some respects, small caps, as well. here we are again. a lot of people talking about the very same places they think are going to work this year. >> i know, i know. it bothers me a little bit. we don't all want to be on the same side of the boat. i really do believe that there is real value in the sectors. the evaluations are tremendous. the free cash flow, let's just say health care and energy, just those two, the free cash flow in both of those are substantial. the last 12 months in health care we've had almost 400 billion dollars in m n a. that has gone practically unnoticed. i think you are going to see a real step up in that activity in the health care space. by the way, you are now all the sudden trying to see it in energy, especially with the big guys. chevron, ox e, an x on. they are making acquisitions.

taking advantage of these really cheap evaluations. both sectors think there are sectors are cheap, companies are cheap. so july! i think you could see real returns and a catch-up trade this morning. i'm not giving up on text and. i do think that there is better value elsewhere. which is encouraging. >> let's talk about a couple. things i want to ask you about this adding to energy and the fact that you used to be, in chevron, talked about it all the time, it kind of got fed up and sold it. now have bought x on. give me that first. i want to go a little bit deeper on this mega count conversation. >> look, exxon have been executing a lot better over the last couple of years versus chevron. that is a reversal. it is a little frustrating with chevron and the charge rights and the right down to have to take. they are not immune, i know. but they do seem to be more

frequent. i just didn't think that it paid to wait. it is cheap, for sure. i like the better operator. exxon has about $30 million in free cash flow. i love the pioneer acquisition. as opposed to chevron, the acquisition that they made is actually more focused international. i'm not as crazy about that. i think the permian deal for x on it's really a good. one they are going to be the number one player there. 5.7 times versus 7.9 times with a ten-year average, with a good yield. that is why i added to that. one by the way, i am now 700 basis points over weight average relative to the base park. >> things like apple, even though you own, which is where i want to segue. it has been an interesting week to say the least. the worst performing mega khaki tech. it is down 6% in one week. we rarely get downgrades on that stop. this week we got two. now you have the new york headline about regulators looking at the possibility of

an antitrust case. which on a day-to-day basis took text talk lower. on an obvious reason, it took the tech start down a bit with it. waiting out of the s&p, the cues, it is accounting for 20% of the queue's move this week. it has such a large influence over everything. the dow, as well, of course. what happens if the market has an ample problem? >> there is a very good chance the market has an ample problem. 7% of the s&p 500. i don't know why anyone wants to pay 30 times for negative growth. i have said that you many times. i am very small in. in fact on tuesday we talked about i'm inclined to sell the rest of the 50 basis points that i have. there are other places to put your money. okay, let's say we have an awful problem. the market has an ample problem because -- oh, by the way, it is so over owned and so loved. guess what? that may be the overall market doesn't do well. doesn't do much in the first half of the year.

other stocks in other sectors will because of what we just talked about in terms of where there are opportunities. where the valuations are super cheap. you are getting good shareholder returns, good dividends, and you have good stories. good free cash flow stories. to me maybe the market as a whole trades around a little bit. i think, underneath the surface, it could be a good stock picker and sector allocator and offset the problems with apple and maybe some of the other mega stops. -- >> freudian slip,. >> meta is green. amazon is green, nvidia is green. cues, by the way, are still green, albeit slightly. what about this notion, corey, about apple being upset for a bit. what does that mean to the market here in the early part of the year? >> it is a problem. it is such a large part of the market, especially as indexing becomes so much more popular as an investment option. if apple goes down, it is going to take a lot of that down

with. it that kind of goes to what i was saying. you want to make sure you are taking profits some the sub listings, adding to other areas, not just throwing all of your money in an s&p 500 fund. by doing that, i don't think a lot of people realize how much you are putting your money into apples, on google, apple, microsoft, -- >> that is why we bring it up. there are fair amount of people who invest that way. at least it is part of their investment strategy. you on one of the index funds. that is why we talk about the stop all the time. the size and the weighting that it has. the influence that i have. that's why matters so much if it goes through a period of some kind of upset. remember, that stop was 167, 169. it had its run in the upper 100 90s towards 200 at the overall market ripped from the end of october to the end of the year. if it goes through a period, and some of these other mega caps can hold up, it's all good? nothing to see here? if it is picked up by other

areas? >> it is such a large section, the overall market are going to feel that, right? you are saying a lot of people invest that way in indexes, i agree. i think it is a great way to invest. i think a lot of people forget there are a lot more indexes than just the s&p 500. look at the raw's 500. look at the international questions. look at energy and -- there are so many other things than just the s&p. people think it is the entire market. that's not the only index you one of. i think that's what we want to point out. their >> stuff, what happens if there is no cut in march? i think that is what we are starting to pry since, gosh. i really. do >> i feel like we are pressing it back up! sorry to interrupt you. look at the way the market is now pricing march, when the jobs report came out at 8:30, it was stronger than expected, okay. the probabilities go down a little bit. services comes out. it's like, oh, okay. well, now we are back up. it was 73 or 74% around noon

time today. what happens if we don't get the march cut? >> if we don't get the march cut that means that growth is better. actually inflation is probably around three and a half, 4%, level. that is why the cpi numbers are super important. today's job number implied that productivity is going to continue to go higher. unit labor costs are coming down. that is very positive for inflation over the long haul. if you look at the quick rates in the jones numbers yesterday, that is a leading indicator. those rates fell, kind, of substantially. it is a leading indicator for wages. i think we are going to see inflation come down. growth remains elevated. wages and inflation is not gonna come down enough for the fed to say, okay, let's go. i don't think that matters. as long as the growth can hang in there, earnings are gonna hang in there. hat is what we need to pay tension to. >> let me ask you this. i'm looking at a journal headline right now that said right now that southwestern in

chesapeake nears 17 billion dollar merger. it speaks to what may be in play this year. more emanate. more dealmaking. this, obviously, is straight out of the energy path. when i read you a headline like that, what is your reaction? >> it's exactly what i expect. it's exactly what we have been seeing from some of these big companies. these smaller companies see value and getting bigger and getting scale to compete with the big guys, right? especially as the big guys are getting bigger. free cash flow, look, cash breaking even that chevron is about $35 in oil. where are we today? we are double that. these companies are minting money. i would much rather see them do aminases overproduce. also return the cash to shareholders. which is exactly what they are doing. these talks are trading at five, six, seven times earnings! it's nuts! i like what i hear. look, the s&p 500 energy is about a 4% weight.

no one is there. even though a lot of people like, it i think there is more that could happen where we could see it being a long contribution to the waiting overall. >> do you expect more deals? >> absolutely. if ray comes down, we think they will, that will absolutely lead to more emanate. it affects energy, health care, all the things we are talking, about that is a big part. of the >> great stuff. courtney, creates. tough stuff, as. well that is stephanie garcia corny link. let's send it over to cristina level of moving into the biggest names, christina. >> give me my run. shares of medical property ran are plummeting today. shares of the largest hospital in most talked about 29% right now for the company. it announced that one of its tenants, steward health care system, is $50 million behind in rent payments. meanwhile, quarterly profit is pushing constellation runs higher. the winding spear distributor missed sales estimate and cut of fiscal outlook. the companies on a percent drop in wind sales amid a nearly 12%

plunge in wine shipments. the company anticipates its wine segment will experience, quote, near term headwinds. gas customers warn their, for here, for the right resulting. scott? >> ha, very funny. we will be back with you shortly. we are just getting started here. stocks struggling to start the year in the s&p, down just this week. up next, we are going to hear from one of the biggest bowls on the street, tom lee. let's hear what he makes a case for in the weeks ahead. we will be back right after this. you know what's interesting these days? bitcoin.

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the s&p has been down about 2% of so. and we now to discuss what it could mean for the trajectory the market this year, long time people, -- tom lee. have been a year, welcome back. >> have any, or scott. >> are you wavering it all by virtue of what is going on this week? >> we are not wavering. though it is not a good start to the year. mark it's almost got to an all-time high at the end of last year. the first four trading days of this year have been really terrible. i can see what the market is struggling with. as your guests previously talked about, part of it is when the fed cuts, i think people are still jumping about a strong labor market. if inflation could -- our base case remains that we will see all-time highs in january. i think the market improves the first half of the year because of some of the things. overall we will and strong because of the end of the year. >> you are not rethinking your own outlook at all?

obviously you sound somewhat concerned by the way this year has started. maybe it didn't go according to your plan. how is that all factoring into your psyche? >> i think this is important. the year tends to play out in january. the fact that we are a in a failed santa claus reality in the last five days is very important. looks like the market are gonna be pretty negative. it tells you that the fundamentals, which have been improving, and not necessarily gonna convince investors to be buying stocks. i think it tells us it is going to be a tough year. the reason we are not wavering, the reasons we think 2024 will be a good year for stocks has to do with the fact the pmi's have bottomed, inflation is falling like a rock. the fed has pivoted. it is now managing a business cycle. those are really good anchors and supports for what stocks can do well. it is not a great start.

you would be much better if you are up for the week. >> full speed feel better. what about this i.s. and services report? i talk about pm eyes. is that concerning to you? >> well, there are pluses and minuses to me i think the ism services number and the maximum factoring numbers show you that the labor report we got today may not be as strong as it looks. i think that is actually good. we do not want to labor market showing signs of rejuvenation. i think the trend there is softer employment growth. from a crisis perspective i think it is supportive of what we have been seeing. prices are falling. as long as housing and cars don't surge, housing growing at 3% is fine. that is consistent with 2% inflation. i think inflation will eventually be viewed as approaching target. that is actually good. scott, the data isn't always in a straight line. i think it is a little messy

this. week i think it is disappointing to see. to many are going to be quickly turning parish and then put on their hard leaning, their skeptic had, the fed hawk hat, i think that will prove to be a mistake. >> you are looking for about 10% out of the s&p. more lest you think that's what we will do from here. how many cuts do you need to get that? >> it is not as dependent on cuts as dependent on, really, inflation approaching what we all except as, you know, close enough to 2%? the fed no longer fighting inflation. it will not be as important as cuts, and the quality of the inflation data. i think the second thing, we do need to have a rebound in earnings angle-able growth, which i do think is underway. as you know, inflation is normalizing outside of the u.s.. when you have that combination of inflation normalizing and real growth recovery, that is

good for stocks. it is not dependent on the number of cuts. >> i don't know. i could almost make the argument it is one and the same. if you get the number of cuts that the market seemingly priced in, it means inflation has continued to move down rapidly towards target. if you don't, it likely means that inflation has gotten a little bit more sticky than the bulls had wanted to be. so it impacts the ability and the wherewithal of the fed actually start cutting rates and to do it nearly edmonton as the market still expects. >> i hear you. i think the problem people have is when they talk about cuts they are assigning secular drivers for. i heard someone say, well, if they make a lot of cuts it's because the economy is in trouble. that is not the case. the fed could be cutting rapidly because they have concluded that inflation is actually approaching normalization. in nominal fed fund at five and 38, or emily five and a half percent around the upper end is not appropriate when you are at three and a half. that is 2% real funds. at the same time, the fed may

not have to cut. the market could conclude this by seeing interest rates fall. we could be in a situation this year where the tenure is that 3.2%. f one c members may be wavering. the stock market will rally because it knows the fed is behind the curb and needs to cut. this is the reason why i'm saying the cuts aren't as important as the quality inflation improvement. maybe it is more important to see what rates actually do. >> before i let you go i want to ask you about apple. i know you are still bullish on mega caps. you did not to expect them to outperform to the magnitude that they did in 2023. the stock has, obviously, not looked good this week. down more than 6%. a variety of reasons. we listed them earlier. downgrades, chatter about antitrust, et cetera. if this stop goes through a period of upset, as i asked our prior to guess, i will ask you this in question, what happens to stocks? >> and the destiny of s&p really does hang on fang

because it is such a large way. i don't think they are cell this year. there is a lady rated of the last two years. earnings have outperformed the star price performance. you are getting periods like this where people get nervous. it is one reason why i do think the story in 2024 is gonna be a lot more about small caps, some of the lagger groups. financials are our number one large cap financial sector pick. if i was a large cap owner, i wouldn't sell. their franchise and return on investments are still enviable. if it is down 6%, but it was up 44% last year, people have to kind of look through that. >> all right. we will leave it here. tom, i appreciate and very much. we will see soon. >> thanks. >> tom lee -- up next, trading biotech's, that's a tyrosine strength lately, for a change. the x b i over 20% over the past three. months hedge fund manager, michelle ross, joins us next with the top names she is

watching now. ahead of the big jpmorgan conference as well. we will get you set up for that, as well, when we come back for closing bell.

welcome back. biotech under pressure today but up more than 30% in just two months, bouncing off the low set in late october. group in focus that jpmorgan's in your health care conference, set to get underway in temperatures could next week. standpoint capital cio and managing capital ceo, michel ross, here with us. good to see. you >> happen to be. here >> is this bounce believable? it has been a rough stretch of two years. plus >> absolutely. what we are seeing is a macro tell to this. we have reverse the correlated from the tenure. as yield have gone up, we were under pressure. as they came down, biotech deadly made that move. a really we want to make that clear, there are fundamentals that work here that make them

longer term in nature, in our opinion. we actually believe with a low that year. >> fundamental in nature? >> obviously we are very focused on the science. the scientific advancement that we have seen, the clinical trial data, there could be a meaningful impact patients and, ultimately, change the standard of care for a number of different conditions. secondly, the very big one, was m and a, it has been m and a. it is a key piece of our sector and have been kind of frosty and frozen there for a few years. it was one of these effects that slowly, and then suddenly all at once, it did show up in q4. >> thank you rachel myers. let's all go on a spending spree, right? >> yep. >> that ball get rolling out of the health care conference out in francisco? >> that is a great question. i think there is a little bit of trepidation from my peers in the industry. thinking that, did we just pull that forward? to be put forward some of these announcements? we've had six steals in december! as you mentioned, bristol-myers

doing too, abby doing to. it was something that could have been. the expectation for that conference. i don't want to say that, by any means, i am making a statement on that conference and timing, i would anticipate the 2024 has more in store. >> what is your assessment of the weight loss craze? by now the story is well known. for the stocks that have been bought as a result. no vote, lily, maybe one or two others. as that played out? it's to have legs? how my supposed to think about that as an investor, when all i've been hearing about is this class of drugs? >> i think it is a tremendous market opportunity. i think what eli lilly and no vote have done, truly creating something in the peak potential of hundreds of millions of dollars that is staggering and something that we do look at as what is going to happen as the evolution of this. for us and what i would state is there are going to be next generation and additional

compounds that could truly allow this to grow to a larger degree. taking this to an oral pill. that will be the next generation. looking at ways to change the side effect profile, or augmented, to prevent some of the side effects of people are seeing right now. >> are there other companies i need to keep my eye on as a result of what you are talking about? >> i would say one in particular, that we focused on, is a company called cairo. kara's looks at the opportunity to prevent some of the salvage of muscle. muscle wasting that people have commented on in the past. could you look at this as something to augment? as well as some of the other companies looking at the oral aspects of being able to bring this as an oral product in the future. >> do you own this thing? >> i do. >> you do. other names i brought up, i don't think we've ever talked about them before, maybe we have but i don't remember. index, what do they do? >> they have had a wonderful year and in 2023. that was on the back of two very important data sets that

were presented at the medical conference in december. the reason it is so important is these are late stage critical trials that were a successful they are now with the fda for approval they are both in the on college indication there are areas of unmet medical need this will have a massive improvement for patients going forward. we think the market is prime for them and what they are gonna be able to do. >> we will keep our eye on that. one ticking highs are by about 2%. what about capillaria? >> as a scientist by training it really makes me excited what cava lena is working on and doing. they are working on something called self therapy. something we were familiar with and oncology in the cancer setting. they are taking that now to the auto immune setting. very hard to tree conditions where the immune system is at the core, at the center of this. they are resetting the immune system and recharging our t cells in our body to basically have phenomenal results. cabaletta is one of the handful public companies doing.

that's a very exciting year for them. >> what about election year politics? in a general election year is typically not good? both sides are just teeing off on the drug companies. how should i feel about that? >> that is a very important point. we have, typically, looked at in seen different things happen going into an election year. it becomes a very bipartisan issue. the rhetoric does increase. i would say that there was a win, that biden can claim, from this year. through the inflation reduction act. he did put into place an attempt to lower drug pricing over the next few years. that could be looked at as a win on his side. something that might not come out as what could continue to be done for this class moving forward. i think time will tell. it is obviously part of the volatility that we experience consistently looking at the space. >> last question, since we started talking about rates, why this sector really seem to get jump-started as the tenure

went from 5 to 4, what happens if it is sticky here for a little bit? what does that mean? >> the great thing about biotech investing is the amount of dispersion that you can find. why am so excited to be able to talk to you about great advancements, new themes, new approaches. we talked about this last time. the gop one class working despite where the tenure is going. macro is a piece of. this it is, by no, means the entire story here when investing in biotech. >> thank you for keeping us informed. >> thank you so. much >> michelle, rostin point capital. jonathan, next we are tracking the biggest movers as we head into this friday. close kristina martin have a list is standing by. >> boeing shares no longer out of favor with wall street. one analyst is arguing the a.i. hype has yet to materialize. that call has an a one software. name details, next!

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away from this radicalism austria. let's get back to you martin the lava with some of the stacks she is watching. kristina? >> the shares from palantir technologies signing almost 2% right now to the company hit with a downgrade. jeffries arguing the a.i. hype is, quote, overblown. the so-called and boom has yet to materialize. which is why the analysts questioned palantir devaluation but still like the annual business and fundamentals. the stock is down 2% today.

down over 6% in the past week. meanwhile, boeing becoming a more popular pick as of late. analysts from wells fargo needed a topic in the aerospace and defense. the stock is up 1.5% today. actually with a big run up since october, bringing it to levels we saw back in early 2021. still has a lot more work to do to get back to those pre-pandemic levels. >> have a good weekend. >> you too! >> we will see you next week. >> oh. i think she was saying she has something coming up, which she does. who knew? up next, it has been an ugly week -- the xl k dropping 4%. it hasn't throughout the stream join this one chip name some. of all the details of what it might mean for the mega caps test ahead closing bell, including the market zone, coming up. ce, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms.

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breaking down apples roughed week. we saw a lot of red. this dog falling within 5% of the last few days. now facing another new head. when looking into the details, and much, more when we take you inside the market zone.

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new details on a possible antitrust lawsuit against apple. and supplier foxconn morning on guidance, christina partsinevelos it's back, although we knew she would. be why wall street is doubled on nvidia. mike, we begin with. you looks like gonna make a run back to 4700 here on the s&p before we close it. out it >> has been a little bit of a sticky number, a few days this year, so far. relatively, i guess, the nine response to conflicting data today. it still continues to look like this sort of low energy, profit taking, flash, we already own enough of the stuff type of reaction. you didn't seem to have a type of reaction with the great expectations so. much of most of the data, as much as they were a little bit noisy, confirm in general terms. we can argue all we want about the market, what they are gonna, get what they're not gonna get. i don't think it matters that much i think we stay clear of infinite recession and the inflation doesn't flare up and

we could probably do the cpi. >> that is the big test. there is a ton of conviction that inflation is still going the right direction. everyone is waiting for the lag of fighter sheltered to really start to drag on those numbers. yes, it certainly matters. again, you have this re-tradesmen of the treasury yields back on 4%. it's not a big deal at this point. you do not want to gather momentum. >> steve kovach, first the analysts come out against annul apple this week. now you have a headline talking about anti-trust. the stock is down about 6%. the biggest loser out of the mega caps. >> what a year this week has been for apple. this antitrust report took it from green to red. it was up about a tenth of a percent before the tell them from the new york times came out saying the doj is not, quote, closer to that intubated antitrust lawsuit against apple. this is all regarding the ecosystem around apple devices. the app store, the fees, everything we keep talking about. we have been expecting this for years now. it was supposed to happen last year, it was supposed to happen

in 2022. maybe we are getting closer. we will really start to get a sense of when this is going to drop, scott, likely after the google case wraps up at the doj. maybe as soon as early this year. let's also talk about box khan. that is, of course, the company that makes most of apples gadget, based in taiwan. with production in china. the december quarter revenue was down 5%. sales from electronics flat from slow demand and guidance saying sales are gonna be down for the march quarter. those comps will be a little wonky because, if you remember at the end of 22, a lot of covid shutdowns throughout china forced foxconn to close their factories. a lot of things got pushed into the following quarter. that is it for apple and consumer data, overall. >> scott, we appreciate. that steve, now to christina partsinevelos and why wall street is still bullish on nvidia, as i mentioned, still high today by a couple of points.

>> the bank of america reiterating it as well the company predicting that nvidia could go on a buying spree. they could go on the incremental free cash over the next three years. the bank of america estimates about 30 billion of that cash could go into buybacks. roughly 70 billion could go into, quote, new growth initiatives. going back in the 2022, nvidia -- clearly it didn't work out. we will have an appetite for software and ip derna assets. that could be where it is fine. we could go hunting for storage companies to be a fully rounded a.i. systems under offering everything from agency. you have some bullish notes from truest and was able. both putting out the nodes today. thinking nvidia will stay on track with its product launches with new server gpus. even with the new with restrictions to used in china. then another notes with india -- saying the error mark it will develop over the community market with software and

services which helps with market adoption of its products. that cycle just keeps ongoing for nvidia. the stock is still down this week, about 1%, scott. >> christina, thank you. christina partsinevelos. scott, i know you don't love the idea of the apple market but how are we thinking about what is going on this week with that stop in particular and what it means? >> down almost 10% from the. hi obviously the rest of the market is hanging in there a lot better? there has been the stretches of time. it is not easy for the s&p to. strikeout or to be on the sideline during. raleigh as the apple was flat point. it also happened in 2014. and happen these times. and when you are able to set it aside. the way the market reacted to this news was interesting. the snp took an immediate drop when the headline hit. it was almost all due to apple stock. the rest of the markets were going on. you can do without apple leadership. i don't think that you can

necessarily lose all of the medicare, obviously, and still have that hanging together. >> we have a few below. what it looks like a nice little run here. we will see what next week brings hot on the take. we will see that coming up. [inaudible] . all the major industries and grain, barely, i should count the russell, that's down, everything down for the week. that's the score car on wall street. the winner stay. late i'm jon fortt with morgan brennan. >> a day for the market at the average us tap nine weeks winning streak, we started lawyer and ended higher. coming up, the chief economist mike zandi on what the stronger than expected december jobs report could mean for the fe