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first, though. the dow up nearly 100 points. the nasdaq lower by .8 of a point now. shares of u.p.s. lower after mixed results including missing revenue estimates for the sixth-straight quarter. also, announcing 12,000 job cuts as part of a billion dollar cost-cutting plan, dom. check out super micro, one of the at least hottest stocks in the market right now up 80% just this month. after results -- analysts are coming out of the wood work basically in droves to raise their target prices on this company here. at least eight target price hikes came out today with 700 bucks a share as the new street high, currently super micro shares are $512 a piece. it's already up 3.5% again today. so a big mover for super micro. we're going to start with the fed, as we are less than 24 hours away from the big decision on interest rates. the fed widely expected to leave rates unchanged, do nothing. but the bigger question is the

path for future rate cuts. we have you covered on all things fed. all things economy and all things your money. seth carpenter is the chief global economist at morgan stanley and drieden pence, the cio of pence capital management. seth, we'll start with you first. the bigger picture backdrop for the economy is one of positivity, generally speaking the jobs market is still good, inflation seems to be something that some folks are declaring victory over. so does that mean the fed can wait a little bit longer before it embarks on its rate-cutting campaign, if that were to happen? >> yeah, absolutely. so i will say i agree with you. the economy is looking reasonably healthy. i will say we've been in the no recession soft landing camp for a long time, since the first quarter of 2022. it looks like that's playing out. i do think there are some cautionary tales about when the fed is going to cut. the market has gone from thinking no cut in march to thinking more than a full cut priced in and now back to less than 50/50. i think the last gdp print, the

retail sales report for december are all cautionary tales for the market. there still is some momentum left in this economy. so the fed, they're going to have to have this internal debate about when to cut. our baseline is june. i can see an argument that it might slip to earlier, maybe the may meeting. but we think the next couple prints are going to give the fed a reason to sit on their hands just a bit longer. >> and seth, if you take a look at the reasons why, you laid out there's at least a little bit of leash a little bit of latitude that the fed can take with regard to this. what is the case to be made of why the fed would want to move ahead that timetable and cut rates sooner? is there any reason why they would? why is the market thinking they should. >> i think if i was going to make that argument, it would have to be for one of two reasons. one, plenty of people in the market who thinks the u.s. economy is going to go into recession. to be honest, you cannot rule that out. so part of the market pricing is probability waiting on different

scenario. so in the event that our baseline view is wrong and the economy does slump early in the year, then maybe they cut more. that's part of what's reflected in market pricing. i think the other sort of more direct choannel, though, inflation has come down, it's come down a lot, a lot more than the fed was expecting. so if the committee could get comfortable that inflation has not only come down a lot but is no longer a threat, then maybe they move forward the rate cuts just to make sure that they are the ones that cause any damage to the economy. it's not our baseline view, but i could see someone making that argument. >> seth, i understand that you really think it's time for the fed to change the language around its expectations for inflation. >> well, i think they've done a reasonably good job sort of updating a bit over time the language that they have in their post-meeting statement. they said that inflation has come down but it's still

elevated. at some point, once we get the run rate on inflation to 12-month change back down below 2.5%, the month on month run rate for core pc has actually been quite low recently. we think it will tick back up. at some point they have to confront that question, how long do they keep saying that inflation is elevated. again, in my experience, i spent 15 years at the fed. part of it writing drafts of those statements. i think they'll wait as long as they can, make as few changes to the statements that they have to until the data basically compel them to make that change. >> what's more important to you as an economist, seth, the harder economic data showing some of the back ward looking jobs and inflation prints. is it the softer data that shows sentiment is improving among consumers elsewhere in the market. what's more important for the forward outlook? >> so, i've been pretty consistently leaning on the hard data more than the soft data. you're an idiot if you ignore either. but for me the hard data really

important. we have just gone through such a crazy business cycle. a global pandemic, high inflation, things changing all over the place. the world is just so different from what most people are used to that i'm more skeptical than usual about the survey responses and what sort of signal they're going to give me. >> all right. seth carpenter at morgan stanley, thank you very much. let's drill down on the markets and where the opportunities lie ahead of tomorrow's fed decision. dryden pence, the cio of pence capital management joining us now. you heard seth there talk about how the markets are pricing in. there's not going to be a cut in march. there could be a cut in march and now back to it. give me a sense of the reaction to the jobs data, the consumer sentiment data today and how you think that leads the market setting up for the fed decision. >> well, i think the important thing to recognize is that consumer sentiment jobs -- jobs is the big number. i mean, people forget that this economy is probably doing better

than most people expect. we've added 4.7 million jobs since the pandemic. we added 2.7 million jobs last year. that's like all the job labor force the state of south carolina. we grew south carolina last year. so the important thing is the underlying strength of the economy, of the jobs market and all that is probably better than a lot of people are thinking. i think that drives consumer sentiment number and we look at these improvements. that kind of moves the date at which the fed may do something further out and further out and further out. how that affects the markets is those people that are expecting six cuts this year are going to be wildly disappointed. could be maybe three and could be leveraged towards the back half of the year. that means we'll have a moment where we could get some volatility, but i think at that moment it's a buy the dip market rather than chase the rally. >> when do you think the best opportunity comes for investors to get in? >> i think when the market begins to realize you're not getting six cuts. so that's somewhere here in the

first quarter of the year, where we're going to start and continue to get strong data, stronger data than most people are expecting because we have these -- this large employment pool. so that's going to be where the market, the interest rate sensitive stocks are going to pull back a little bit because they're going to be reacting to that. that's going to be a good dip. you know, every now and then you get probably one of these corrections. you see it in the first half of the year, again, it's probably a buy the dip rather than chase the rally market because i think the fundamentals are there across the board. and we see a broadening rally of the entire market, not another magnificent seven, but a broadening rally because it's all about earnings. for the longest time it was about fiscal stimulus. it's the story of three fs. first fiscal stimulus and then everybody is talking about the fed, dancing on the head of the fed's pin. nowas we move into 2024, it's going to come back to fundamentals. companies are beady. another quarter of probably 80% of the companies beat. >> we had big tech earnings this week, starting this afternoon. but in the meantime, if you're

looking for a broader rally, are there specific industries and sectors you think are set for some nice returns for investors? >> in terms of broader rally -- this is the time where you begin to look at small caps. so small and mid caps fundamentals, industrials, those kind of companies are going to begin to come into their broader part of the s&p 500 should begin to do better. we're kind of excited about that. and then, of course, you do have -- amazon is one of the top companies. we think they're going to do pretty well and we likes chips. tsmc is a huge absolute choke point in this. the largest -- probably one of the most important companies in the world because when you think of the chips that they had, they're essential to so many other companies they put in. tsmc is so important and amazon and tsmc and small caps are probably a very good area to be in as we move forward.

>> dryden, it's dom here. amazon at the top of the magnificent seven pick, staying away from apple, microsoft, meta platforms, tesla, alphabet, any of those big names, nvidia? >> prioritize amazon because -- and the little s. it's all a waitings game. apple won't have that much growth. tesla has some challenges in and of itself. the reason why we still talk about amazon is because if you take a look at the growth going on in online sales, amazon's 40% of that business. and because they are -- if we move over christmas we had 25% of retail coming online. if you take that and take amazon's part, that's a $300 billion opportunity that they have. we think they're going to do well through this. we think apple has slowing growth. apple doesn't grow much faster than procter & gamble right now. so if you take the magnificent seven, still love apple but overweight it and overweight the

amazons. we think nvidia still has room to run. but again, the world is going to have to catch up. chips are going to have to catch up with this massive data part of ai and going into everything. so we do believe that we're going to continue to see a broadening rally and then the magnificent seven, those that have room to continue to grow are going to continue to do well throughout. >> that's dryden pence, thank you sir. we'll see you soon. >> thank you. appreciate it, dom. coming up on the show, without the biggest six tech stocks, the s&p 500 earnings are negative year over year. a recipe for a disaster is in the mix? we'll discuss in tech check coming up next. "power lunch" is back in two minutes. from rylee's realty! hi! this listing sounds incredible. let's check it out. says here it gets plenty of light. and this must be the ocean view? of aruba? huh. this listing is misleading.

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two tech giants set to report after the bell with amazon, apple and meta on deck later in the week, deirdre bosa has what to expect for today's tech check. just how important here, dee, are the megacaps results this week? >> contessa, let me tell you how important with just one number and that 54% these super sixes aggregate expected year over years earnings groult in the fourth quarter. without them 494 companies in the s&p are forecast to post a blended decline of more than 10% in earnings growth. not only do the biggest tech stocks account for more and more of the overall markets by weight but they make up virtually all of earnings growth for the s&p 500. to that question you guys asked before the break, is the market being so tech reliant, a recipe for disaster? it certainly could be. of course earnings is an expectations game and guides will be key. some of them give them some. some of don't. alphabet doesn't. these are some of the sturdiest business models around.

you could argue -- you have argued they're more defensive and garpy, growth at a reasonable price than what we think of high growth and riskier tech. guys, that apple note earlier today moved the tech which cold cold water on their china sales, that's a good example of something that comes out unexpected or new piece of information and as apple goes, so does the market you could say the same of microsoft certainly and certainly these super six names taken together. >> we get to earnings this afternoon, how much is ai moving the needling now for earnings alone? how much are investors looking to these reports to say, how are you making money off of ai? >> yes, that is sort of like the multibillion, trillion dollar question. how are you monetizing ai. last year you could get away with just mentioning it. a bunch of times on your earnings call and that would be good enough. but investors they want actual answers from microsoft, for example, they want to know how they're monetizing co-pilot.

we have very little information from google so far. even though it's -- supposed to be in the number one or two position. and it's latest version, latest large language model, top tier, we'll be listening for that. i would argue it's still pretty vague and i don't think we're going to get the hard numbers and the hard answers that wall street wants. i think it's going to come down to cloud. that's what it was last quarter and that's what it's still going to be this quarter because that does incorporate generative ai efforts, where it sits in many cases, certainly for microsoft and amazon. that will be key and the street wants to know definitively that growth has bottomed and it's on the up and up again. wall street never gets the number of details they want. they should be used by it. dierdre, thank you. >> especially not know. two of the big tech names on deck to report their numbers, of course, microsoft and alphabet. our next guest says for both companies the overarching theme will be artificial intelligence, with microsoft expected to report on its ai investments and

adoption strategies, while alphabet, investors here hoping to hear more on its ai ambitions, revenue impact and search in the cloud business as well. joining us now for more is daniel newman, the ceo of future group. daniel, the deirdre report you just heard laid out exactly what the expectations are. what exactly then does cause the cat lyse, if you will, the next move in this stock up or down. what are they going to say or not say? >> yeah, dom. thank you for having me. microsoft has to come out and say how the 2% of revenue that azure cloud revenue tied to ai is growing. people are tired of kind of the ai, ai, ai story. it's lost its meaning. people want to know, is this going to drive the next wave of growth. $3 trillion market cap and possibly the biggest earnings this quarter and for the entire year. and right now, people are saying, how do we go higher if

ai isn't driving that number up? 2% last quarter, i would like to see that double or triple. ibm said their generative ai number doubled and ibm is focussed on enterprise. microsoft has the whole industry. enterprise consumer touches everything. >> it's not just that, they have the second largest cloud offering in azure. they've got a direct tie to open ai as a huge investor there. is there any other story within megacap technology or elsewhere that can rival what's happening with microsoft right now? are other megacaps a catch-up f trade maybe in some way? >> i don't think there's a rival story but i do think there's a catch-up story. last year it was all about the gpu. nvidia jumped way ahead. this year is all about implementation. last year microsoft is the only company that got the implementation story right. we saw what google did with gemini and aws did with bed rom and its story. there's a strong possibility that all the market share isn't

going to one. we know that aws has strong partnerships and we'll see later this week what they come up with. we know google had its eye on ai for multidecades now. these companies are going to come out with a monetization story. it needs to happen soon because microsoft is running away with a lot of the credit and deservedly so. they got co-pilot right, the story right, the pricing into the market right. people appreciated that and betting on the company. >> well, then what should google be doing differently? >> yeah, that's a great question. google needs to come out and make it clear. they've made big investments, you know, from deep mind and what they've been doing with google brain for a long time. they got it wrong out of the chute. they have a cloud strategy, the silicon, the solutions in the cloud. they need to explain to people how these customers are on boarding, how it's driving revenue the company. is it winning competitively? are they able to take business from aws and take business from microsoft. they're the third by some

distance and also competing with oracle on the other side. google needs to come out clear and say our investment in ai is winning business,it's driving revenue, expanding margin and we see it as a continuation the way azure was able to do so being very explicit in how it's impacting their revenue. >> dan, before we let you go, microsoft specifically, why is co-pilot going to be different than cortana? >> well, cortana was a pretty big failure, in my opinion. co-pilot is all about overlaying, you know, work progress over the things we do everyday. we have all picked up generative and llms by effectively adding it to our average work day experiences whether it's in our emails or the way we write or the way we search. it's changing search. cortana was just, it was like siri, which it's okay. nobody really cared about it. and it never picked up market momentum. >> all right. daniel newman, thank you very much for the look at both alphabet and microsoft in big

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welcome back, everybody, to "power lunch." we're just 24 hours from fed chair powell's press conference. always a market moving event. let's get to rick santelli in chicago for a look at how the bond market is trading ahead of the fed decision. hello, rick. >> hello, contessa. boy, it's all about the fed. the market was really shocked at some of the data points on the first of two-day fed meeting days. look at the headline for consumer confidence. the best in two years. just a whisker shy of 115. the best since 2021. but it didn't end there.

current conditions even blew that away. the best in nearly 40 years a reading of 161.3. what happened? well, interest rates popped, up over five bases points as we sit right now. 2-year yields and about unchanged on 10-year yields. but what's really interesting and to answer your question, contessa, is normally one would think strong data, better jolt, should have pushed long rates higher. it should have steepened the curve. what it did was it inverted it more. it inverted it by six bases points because it's all about the fed. the stronger data, knocked down the percentages of a fed rate cut in march to under 40% from around 50%. as i said many times, that march meeting is way off into the distance when it comes to accuracy of fed fund futures. but it's important to see how

influential strong data is on the short end, contrary to history. con contessa, back to you. let's get back to bertha coombs for a cnbc update. >> democratic representative cory bush confirmed the justice department is investigating her security services campaign. she hired her husband as part of her security team, saying he has extensive experience in the area and can provide services at or below market rate. she says she needed the security because he have is the target of relentless threats. meanwhile, illinois election board decided today to keep former president donald trump on the state's primary ballot. the u.s. supreme court will hear arguments next week on whether trump's role in the january 6th insurrection at the u.s. capitol disqualifies him from the presidency. the bipartisan state board determined it did not have the authority to determine whether he violated the constitution.

and a carnival cruise ship rescued two men stranded on a kayak in the gulf of mexico yesterday. the cruise line said the men ended up the middle of the ocean after their boat sank. the ship provided medical attention and food before turning the men over to the mexican navy. wow. >> that's not something you see everyday out your balcony. >> happy for those kayakers for sure. bertha coombs, thank you for the news update there. coming up on the show, deal or no deal. jetblue may be terminating its buyout of spirit airlines after continued resistance on the federal regulatory level. we'll speak to the incoming ceo at jetblue coming up next. icy hot. ice works fast. ♪♪ heat makes it last.

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bloblock ed that agreement earlier this month. phil lebeau joins us for a "power lunch" exclusive interview and i understand you have the incoming jetblue ceo. hi, phil. >> hi, contessa. yeah, let's bring in joanna garretty. i'm glad you're joining us today. i want to talk about spirit in just a bit, but first i want to talk about your guidance for q12. you guys are expecting revenue to be down i think 5 to 9% a little greater than what the street is expecting. your capacity is going to be limited, at least in the first half of this year. how much of that is because of the geared turbo fan issues with those engine issues that is hurting your ability to fly certain aircraft? >> thanks, phil. it's nice to see you. you know, maybe i'll just highlight, we're really pleased with how we ended the quarter, last quarter. as we step into q1, we are under some pressure from a capacity perspective. the geared turbo fan engines are most certainly impacting that. we'll see about 5 to 7 aircraft

on the ground this year, which will lead to a year where we do have reduced capacity. when you think about the revenue side of the house, you know, i view it as sort of a tale of kind of two halves. the first half of the year, we have a pretty slow revenue environment last year, a lot of pent-up covid demand. second half that should ease. >> all right. let's talk about the proposed merger with spirit. you guys, meaning jetblue and your counterparts at spirit have filed for an expedited appeal on the judge who blocked the proposed merger. why do you believe an appellate court will come to a different conclusion than the first time around in court? >> you know, we strongly disagree with the lower court's decision. our hope is that the first circuit will recognize some of the challenges that that decision presents. the end of the day, jetblue and spirit are two small airlines

trying to combine to become a bigger one in this world where there are four very large legacy carriers. we're hopeful that the judge does reverse or that the court of appeals does reverse that lower court decision. and you know, we'll move through as needed. >> you know the narrative among investors is that the doj blocked this and you're unlikely to get this reversed on appeal. i know you disagree with that, but what do you say to investors who look at this and say, look, you took your shot. you took your best shot and the judge has said this is just not good for competition? >> sure. i think the way i look at we have two paths. we will continue to pursue the spirit merger. we will continue to appeal that and meet all the obligations that we have under the merger agreement with spirit. at the same time, we need to be realistic and have a plan-b. so we're focussed on our plan-b. spirit was all about accelerating jetblue growth, accelerating the jetblue, experience, bringing to more places, more people. our plan-b will do just that but

on a bit of a slower pace. we have a great product, great service. we operate in some very, very strong markets, new york, boston. and we need to redouble our efforts around our organic plan, restore profitability. that has got to be our goal. and focus on the fundamentals and the basics of this business. >> let's talk about that plan-b. a big part of what you talked about on the analyst call today was driving greater revenue. i think 300 million is what you guys outlined. in part, largely because of growing ancillary revenue. getting more from your customers, if you will. how do you plan to do that? >> correct. yeah, we have $300 million of revenue initiatives, 15 million discreet initiatives within there. a number of them focus on how we segment the cabin, making sure that we're delivering the right product to the right customer at the right price. we have a product that meets a lot of different customer segments from the more price sensitive customer to the premium customer. we can better monetize the

cabin, better segment the cabin and merchandise how we sell our seats in the cabin and the products that we do offer. >> joanna, it's dom here. you mentioned the segmenting of the cabin. there's an identity issue that has been talked about with regard to jetblue, vis-a-vis the spirit airlines merger. that is if you buy spirit and take them off the market, that there are fewer lower cost options around. jetblue ten years ago, 15 years ago for me was a low-cost carrier i could go to find a cheaper fare to get to where i wanted to go. these days jetblue looks more like a full service airline. mint class, full class, first class reclining seats. the price points are very similar to american, delta and everybody else out there. do you feel as though that identity of jetblue is one of hindrances to why the spirit airlines deal is facing so much regulatory scrutiny? >> you know, i don't. one of the arguments that we've tried to illustrate is that we have a suite of products across the cabin. we have a basic economy product

that competes very well with spirit and the ultra low-cost carriers. it's definitely targeted to the more price sensitive customer. we also have the mint product. our view has long been that you can have low fares and great service and a great product offering. we continue to believe that to be true. and the way we have segmented our cabin, we think speaks to offering products at different price points, including those for the price sensitive customer, similar to what spirit and some of the ultra low cost carriers offer. >> and it's contessa here. jo anna if your focus is on returning to profitability, and that's your priority, will that hinder the investments that you make in expanding routes and international and opening up new markets? >> the way i would look at is we've got to make sure that every route earns its way into the network. we need to be far more selective where we fly in a world where we are not growing capacity. the pratt whitney engine issue as we dissed definitely challenges our ability to grow. as we think about our network,

we need to be laser focussed on ensuring that the markets we do fly are driving margins for us. you'll see some changes across our network in that regard. >> phil, thank you very much for bringing us joanna. great to have you on "power lunch" today. thank you for your time. good luck. >> thanks. thanks for your time. all right. we have reports of layoffs in financial technology. kate rooney, of course, is all over it and has the details for us. >> so this is the latest round of layoffs. we are hearing about in tech today, two fin tech companies block and paypal. start with block. a source familiar with what's going on there telling me that these layoffs were announced in november. they're starting to take place across the company. today, jack dorsey, ceo and founder announcing this in a note to staffers. it comes after title the music streaming service owned by block also recently went through some of the same job reductions. block laid this out in its goal of capping employees at 12,000 people by the end of this year. that was shared in the q3 earnings call.

so it was forecasted by the company, the size of block at the time was 13,000 people at the end of that quarter. so it's about 1,000 people. and then over at paypal we are hearing a similar story today. the information first reporting this but cnbc has not reviewed multiple linkedin accounts gotten word they are being let go coming as the new ceo is on this cost-cutting mission. he talked a lot about focussing more on the core products, like check out. he laid that out last week. ceo said they need to get leaner. they need to get that cost face in line. paypal announced 7% reduction almost a year ago. at the time it was 2,000 jobs. it's the latest from both companies in fin tech adding to this growing list of tech job cuts everywhere from amazon to google and stocks up slightly. dom, back other to you. >> u.p.s. on the transportation side as well. kate rooney, thank you for that story. still ahead on the show, apple's vision pro headset set to launch later on this week, but is it worth $3,500?

we'll give you a first-hand look at apple's new reality tv or reality headset in general when hoe "power lunch" returns after this break. ♪♪ sofi is helping me get my money right to achieve my ambitions. like earning more money on my money as a head chef. ready for service? ♪♪ bank with sofi to earn a higher apy and an epic welcome bonus.

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♪ apple vision pro headset goes on sale this week. the company already has 200,000 pre-orders at a starting price of $3,500. cnbc.com todd hazelton reviewed the vision pro and said it's the future of computing and entertainment. todd is hiding behind the vision pro right now because it's much cooler than just looking at dom and i. >> i can kind of see his eyes through there. >> what do you see when you put it on? >> so, right away -- and apple did this purposefully is i can see you. i can see both of you pretty clearly in color. i can see everything, my hands. if i tap this crown up top, i see a bunch of apps. so apple tv, music, safari,

photos, the app store, messages, anything i want that i can install. there's more than a million ipad and iphone apps you can install. >> how much training does it take for your eyes, for you to get used to selecting -- we're seeing the view right now on screen. >> on screen right now. >> how much practice does it take for you to learn to select it with your eyes. >> it's a good question, contessa. i had training a little bit with apple before we started reviewing it. and i picked it up right away. the crazy thing for me is that all you do is look at the app. it tracks your eyes using sensors inside the headset. you look at the app and tap your thumb and your forefinger and it opens it. then you can close it, open up apps and put them all around you in the space. so it's -- it took minutes. >> wait, how does -- i don't understand how that works with tapping your finger when there's no sensor -- >> there's cameras on the outside of the headset that can see my hands and what my hands are doing and cameras on the inside that are watching my

eyes. >> okay. so, here is the question that we teased. it's $3,500. which is way more expensive than what the meta quest was when it first got released and those kinds of other products that are out there. >> right. >> i want to know because you review all of these things and you tweet about it -- i'm sorry, you x about them at robo todd. i read all of the stories and everything else. value for the money, quest, facebook, it's being discounted right now or $3,500 for that one? >> it's a tough question. look, if you're going for value, quest, right? it's $500, quest. you can do some things like watch movies. but if you want the very best, i mean, you're watching a screen -- a tv screen this big in your house, super sharp. >> you're talking about watching movies in your headset. >> or you want to work, you can use a keyboard or mouse or browse the web with your fingers or see 3d photos, this is by far

way better. is it worth $3,500, i think at this point, becomes a very niche product. if you have, you know, disposable income, you really like gadgets, you want the best vr headset, you get this. 2 in the future, i think, i hope apple lowers the price and you see more people buy these headsets. same time you'll see meta catch up. >> you haven't been on tv with us since before -- do you want to take it off so people remember -- >> that's what he looks like. >> there's todd hazelton. irl, yeah. thank you, todd. >> at robo todd if you want to see his stories out there on x. still ahead on the show, we'll get some technical support. our chartest tells us which earnings she thinks are poised to pop when "power lunch" returns after this. we're all going to try this headset in the commercial break. ♪ (ella) fashion moves fast. setting trends is our business. we need to scale with customer demand... in real time. (jen) so we partner with verizon. their solution for us? a private 5g network.

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♪ welcome back to "power lunch." time now for some technical support because a picture is worth 1,000 words. our chartist today is jessica, director of product at options play. and up first, jessica, thank you very much for being here in person, by the way, with the tablet in hand. >> always. >> general motors is our first stock.

gm reported sales this morning. shares are jumping after beating estimates on both the top and bottom lines for the quarter. so let's take us through the charts, jessica. we see some moving average lines and whatnot. what exactly is this going to tell us about what the trend should be. >> absolutely. so we are looking at the 13 and 26 moving averages, first of all, which are these over >> that is bullish, that is good, but this is the 200 weekly average. in its resistance, now, i'm not going to be bullish on general motors until we can get out of consolidation and into a longer- term bullish trend which would be overcoming this 200 weekly moving average. >> this is not the daily moving average, this is the weekly moving average. >> this is 26 week and 200 week

. >> great clarification. >> unless we are above that level, which is 43 or 44 -- >> that is still room for upwards momentum, but it's a very big area of supply, which means psychologically, you might have purchased. you see there's a lot of trades. you may want to sell it. >> people are putting limit orders to sell at some of those levels. >> you might break even. you been holding it for a while so you are likely to get out of that position. >> there's the chart at general motors. we will move on to advanced micro devices. the amd, you got one line. >> this one, i do. >> this looks like a parabolic move. >> it sure does. this is the 40 weekly moving average, but like lots of tech, there is a beautiful and clear

handle and breakout. that's a base breakout, which is good for upwards momentum and that is why we are seeing higher highs. we come over the upper levels we saw. so, for amd, i've actually got support around 1.65, which is this line, and the resistance is right here, at 165. >> this is where we are, in essence, not far. >> this is good, this is solid. i see upwards momentum but what i am looking for with earnings is for that support to be maintained which is around that 165 level. >> from a trader's perspective, you are not betting big going into this trend. you are going to wait and see how this develops before you take a cue on whether you want a breakout to happen. >> absolutely. i'm definitely with the ai story, completely, but from a

trader and technical view i want to be sure my support is maintained. >> we will stay on that story, somewhat. communication services. one of the magnificent seven is set to report later on this week thursday, take us through what you are seeing from a momentum standpoint. >> i wanted to switch up and give you a different chart because i am hearing that this is overbought. i want to debunk that. we say it's overbought when rsi is right above 70, which is this line. it happens here and is happening right now, but this is a momentum indicator. it looks at the higher and lower average periods. if you couple that with something like this, which is two standard deviations over that period, if it is hugging that, that indicating higher momentum of the trend, which is

important to note. if we are overbought and see confirmation of a breakout, i want to see it. otherwise, we are not having higher prices. there's no momentum. therefore, the validation is invalidated unless you see overbought territory. >> even though two standard deviations above the mean, as long as it stays there, there's momentum. >> jessica, thank you. we will appreciate it . all right, coming up, ibm is giving its manager and ultimatum to return to the office or leave the company. we will give you those details, next. power e*trade's award-winning trading app makes trading easier. with its customizable options chain,

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we only have 2:30 left in the show and several more stories. ibm is set to get back to office or just get out. the tech firm told its managers they must report to officer client locations three days a week regardless of current work location status and managers who do not comply will be asked to leave the company. i feel like this is ramping up, will returning to office. >> i don't know why, because when you return to the office of loud. >> it is. this construction off of the building. >> you see the managers, there's also a question about, you know, is there a cost savings initiative if you have certain managers who don't want to come back and you say, get out? if it so important, why are you telling them to resign, why don't you just fire them? excessive screen time, more than several hours a day, cost

the u.s. 73 illion dollars per year. that comes from the direct financial cost incurred by health systems, productivity at work, and perceived effects on individual well-being. >> i wonder if screen time goes up when people buy had sets. >> you have an immersive world. the nfl just reached a licensing deal with the designer of taylor swift's viral custom puffer jacket, kristin juszczyk. she is the wife of san francisco 49ers fullback kyle juszczyk. she has permission to use nfl marks in her designs which is a big moment for everybody. these jackets are viral. they have to be the hottest piece of clothing. >> let's see what the price tag goes to. >> i don't know, but i'm inclined point "the crown" is auctioning props and costumes used onset. 300 items are currently available with an additional on 60 set to go under hammer

during live sale next week including every creation of princess diana's engagement ring. >> to think the producers budget this in production? >> they are, now. a little extra added cash at the end of the season or series. >> there you go. nfl clothing and the crown. that's it for "power lunch". >> "closing bell" starts right now. >> welcome to "closing bell". we are live at the new york stock exchange. we have a final stretch before arguably the biggest night of the year for markets. microsoft, alphabet, amd, reporting earnings. ai is front and center. each of the stocks are up a ton, raising the bar and the stakes even higher. we will ask the experts was likely to happen in a few moments with first, look at