years. for that major modernization effort. lockheed martin -- bell were competing, ge building the engine will now stay in development indefinitely. we'll talk a little bit more about that on closing bell, overtime, or we also have a number of guests including -- from -- >> will be watching. thanks for watching power lunch. see you next week. >> all right, guys, welcome to closing bell. i'm scott walker -- from the new york stock exchange. make or break hour begins with the s&p chasing history. the first close above 5000, very much within reach. we're gonna track every move over this final stretch. -- adam parker in just a moment. how high this surging stock market can go. in the meantime, a look at the scorecard with 60 minutes to go in regulation, we've got a lot on the move. take a look at this, nasdaq on the cusp of 16,000 again. first time since november of 2021. s&p is gonna close above 5000 today, barring something

miraculous over this final stretch, right, now it's 25 points over that level. that's more than half of 1%. tao is given some back, russell is a big winner today. that's outperforming, it's up one and a half percent. more evidence of the recent broadening in the market after weeks of top heavy trading, we talk so much about that. how about interest rates? they're mostly higher to. after some revisions to cpi and more suggestions from more fed speakers and -- could very well come this year. just not so soon. it does take a short talk of the tape. raleigh and risk. whether the latter is increasing, as the s&p keeps rising. big name stocks go parabolic. let's ask adam parker. is the founder of z of try -- a cnbc contributor. good to see you. do you marvel at this market, like just about everybody else? >> i think the bull case we talked about, gross margins can go for an average company, you think earnings are growing in the middle of this, year next, year and so forth. the fit is likely to be accommodative.

that cocktail is still in place. evaluations have moved a lot. but as you know, valuation is never good predictor of near term return. it's about believing the economy is going to be in reasonably good shape. i think the data points support that. >> you think that the environment, all the things that you said plus other things you didn't mention that are potentially positive support the stock market at these prices? >> as long as gross margins can go up in earnings are growing, i think history dictates being reasonably up -- on equities a good idea. i can find other asset classes that give me exposure to things like a top 20 u.s. equities. i mean, we talk about that all the time. the biggest 20 u.s. equities growth or net income at 50% per year. what else do you see that that's awesome that you big, liquid, all that? i think it's a good risk reward. one of my worried about? maybe china gets worse. that's really hard to wrap your arms around. maybe the u.s. consumer slows. we've seen a little discover, some little signs that the consumer is slowing. you gotta monitor that.

i'm worried that maybe you could get the balance sheet stuff from the fed offsetting some of the accommodation events. nothing ever, feels we talk about this 1 million times, you always, always down smarter when your bearish. if you think merges are going, up you should say optimistic. i think some are things that want to buy in the equity market under valued. >> we'll get to that in a minute. before we go underneath, i want to stay above. >> crews at altitude. >> the two ease. exuberance and euphoria. are you worried about either of those? >> look, what i do all day long as i talked to portfolio managers and cios and big senior people at corporations, i don't see a lot of champagne in may box or when everyone or call it. i think -- >> you're looking around invidious corporate headquarters? >> i think you picked a stock that's been a monster. we talked about it a lot on your show. you need exposure to a.i.. if your fund manager, and your

boss says, five years from now, what did you own for exposure to a.i.? your answer is zero. your fired. you have to look around the nine or ten businesses that participate, where in the first inning of a multi year trend, and they are a winner. everyone thinks that they're the genius that's gonna cole the right part of that lightning bolt. today is the first part of the lady, but we need to. so that stock is proven no wrong, that's an early trend. i'm not smart enough to get that right. i just know where we're headed. >> you are a former chip analyst, you know chips better than most people. and somebody else used the inning analogy with me earlier saying is the first inning of a.i.. well, if you look at nvidia, they're doing nine innings worth of gains in the first inning. you can't keep that pace up. >> no, you can't keep the pace up for sure. in terms of the amount, but when i look at, it we did a note on it today. when is the time to toggle to the industrial-centric semis from the a.i. centric semis. that's the title of our note today. >> the nxp,'s -- >> microchip. great businesses they all got

it down. way too much inventory. more broad based economic exposure, don't have a lot of a.i.. it's hard to own them when i don't think gross margins can go up, they have a lot of inventory. i could still sink my teeth into this a.i. trend for the time being. at some point, you want exposure to them. they're good businesses. it's too early. look, our call coming in the air was to like software that's exhilarating growth. into like a.i. -centric semis, avoid industrials. that's the right. i do worry the -- evaluation. i know that's not the leading variable i can use to pick stocks. >> really incredible, the market, as mike santoli's been pointing, out is broader than people want to paint. today is a good example of it. with a russell up one and a half percent. when you look at the elevating prices and evaluations, but the prices specifically of the max seven, the nvidia's. we have the dean evaluation, and why you stern -- smart dude. he owns all these talks. he started the stuff for a living. and he has a hard time looking

at what's happened. i want you listen to what he told me the other day, we can react. here's what he said. >> today's prices, i mean, all of the stocks look overpriced. but i think nvidia stands out as particular overpriced. just to get a collective sense of what the seven companies account for in the s&p 500, the seven stocks around the country 70% of the old -- 70% of the hole index. -- they can force it to a service of the gross profits. they're very profitable, very valuable companies. and you can get pretty close to the current prices for the other companies, nvidia, can't come even close. >> just curious what you make of that? he's not only one saying it. >> yeah, people said that at 500 million market cap, and went to 1.7 trillion. >> and he's an owner of the stock, two he's enjoying the games, just make some queasy. >> i get it. it makes you nervous when you look at the gross profit. i just think, if i'm creating a portfolio, long only to be the best be 500. i need some a.i.

exposure. i can own taiwan semi, micron as a memory, trade -- centers were traded -- i could find stuff to own. but this is the best company with the best product early in the cycle. i know it's gonna be worth three trillion in a couple of years. it could go down to 300 million, sure. as soon as they missed on any expectation, it's got 15 20%. as you, know because a commuter train all the time, people would say -- they missed the first 1.7 trillion. but that figure will back on the show and buy it at 1.4. that's not the right attitude. i want exposure to the portfolio long, only for short. i don't know who's gonna be smart enough to miss the 20% correction in the 500% move higher. >> arm holdings another example. up 60% on the week. someone comes on halftime today and says, i just bought arm. it's up 60%. which is why you have some making comparisons to 1999. the strategist at one of the major houses who did that. jeremy siegel, the wharton professor was on with me

yesterday and said this is not like 1999. listen to what he told me. i'll get your reaction. when >> it's not worse than 1999. but one thing is very, very different. it's important. we had s&p's selling at 30 times earnings. at the beginning of 2000. and the tech sector even far more than that. 60, 70 times earnings. and by the way, interest rates were higher than they are today. today we're selling at 20 times earnings. now, that's not cheap, certainly, it is not a situation like 1999 or 2000. >> all right, you don't like when i mentioned the strategist. you rip on them. i bring out the professors. >> look, i don't rip on the strategists, i think it's just when you force people to make a two-week market called they tell you with confidence they can do it when they demonstrably can't. it's not also. no, it's not 99. i don't think companies get a

run at a capital spending if on the projects. i think everybody companies investing in productivity and efficiency. and i think the market deserves an aggregate to trade where it is. because these big businesses are highly profitable have huge vote and long runways. i still think there's other things like unknown. again, beating the s&p, you can own 25% of your hind fund in tech, and own other stuff. stuff that's got annihilated this year underneath. and maybe sets it better for 25. you look at health care services. look at tools. you look at, there's things you can buy underneath in a balanced portfolio could be the s&p. >> tools, like illinois tool works? we are talking about? >> health care tools. stuff i think health care is really legging. >> authoritarian hammers and screwdrivers. >> no guns and butter. >> we talk about picks and shovels though. >> you know, i do think there's things you can own, it's not all by correlation to the go go textile. if i do think, you know, there's a lot of opportunity. on the other, and there's things i don't want to own. u.s. retail or stuff like that.

>> why, not the consumers doing great? >> yeah, it depends. if their physical retailers, is just gonna hard for them to be in that margin. among comps. stocks that have really recovered, i don't think deserve it. like target. that's one that i was picking. comp negative online and in the store, no historic rules, why would that be an insecurity? >> let's bring in cnbc contributor -- to join the conversation. shannon, welcome. nice to see you on this friday. what might be a history making day if we can close above 5000 on the s&p for the first time ever. we're certainly on track to do it. your take on the market is what? >> well, there is no ugly surprises as it ever core in a little bit out today. i think that's really what we're looking for here. we got through the book of earnings seasons, we have the concentrated names that held up the name of the bargain for the most part. also some dispersion in those results. now, or just looking forward to

this continued drumbeat of what chair powell calls confidence. they're building greater confidence. and to adam's point, the broadening out of the market and mike has done a great job of covering this week, the broadening out of the market really does rely on greater confidence that this economic picture that's being painted of a disinflationary trend with low unemployment and continued surprising growth can be mirrored in the equity market in earnings growth. we know top lines coming down. so, if we can start to see this continued execution, i can't agree with adam more, the gross margin point. gross margins are improving. and they have room to go outside of the big names we talk about every day. so, i think that it's about building this greater confidence, and milestones like the 5000 health bit. but i think it's more about just all of these data points coming together at the right time. >> you are neutral, this sounds like a more bullish and. am i

hearing you correctly on this? >> maybe you got me. because it's friday afternoon. adams on. so, you know, that's always positive. >> thank you. >> honestly -- >> the tone don't lie. honestly, it's something you become a little bit more positive on the market. >> yeah, we're still neutral overall inequity scott, i don't want to reflect anything different. however, we went overweight and small caps to start the, year we moved our cash position from an overweight cash position to an underweight cash position. acknowledging more so that cash rates are coming down. and that needs to go somewhere. perhaps the bulk of that goes into longer duration bonds. there is an opportunity here, and we do think, again, looking at this potential broadening out, i know there's been some fits and starts in january, and we're seeing some evidence of it, i do think that that's going to accelerate. that gives us a nice home for some of this cash to go to.

>> all right, i mean, russell, speaking of broadening, or above 2000 now. it's been a tough place to hold. we'll see what happens. small and mid cap. your fan? >> you know, again, you need gross margins to go off of. i think they will. but i'm not a fan of not owning a lot of the max seven, as you know, you can't be the s&p 500 and be underway in that group. that's my view. you get a hold big weights in the biggest 10:15 20 stocks. >> okay, interesting. that's important you just said. big weights in the biggest stocks. you still want to go with the 2023 playbook of go big or go home. >> here's, why it's really more risk management than alpha. one, these stocks have very low company specific risk. when the market goes up in large beat small, growth means value. it explains 80% of microsoft returns. two, there's 50 60 -- 4000 by side analysts will cover microsoft and apple and google. the idea that i could know something that nobody else knows

that's not in the price? i mean, that's rough. and the third thing is, i can't find a basket of stocks 30 or 40 stocks that mirror their performance. that are correlated. i can't de-risk the ones. if i don't know anything that nobody else does, they trade macro they're not replicable, i got our own close to market weight. may be nvidia more than tesla or whatever, or more than apple, but that's not gonna explain too much of my -- i've gotta own accord of my portfolio in the big names. so many people can't. there mutual fund rules, risk rules that prevent them. if you have the flexibility to, it yeah, you should do it. >> the other bit of fuel, shannon, towards the mega caps if you wonder, if you need yet another reason why there's been such a flood of money in that direction, as tony pastoral of goldman sachs recovers hedge flood client coverage there was talking about in his note today about the buybacks that these companies are doing. extraordinary. apple, 20 and a half billion in q4. google, 16.1 in q4.

meta, 6.3 in q4. >> the big announcement. >> microsoft, four billion. and by the way, there are still tens of billions of dollars from prior buyback announcements still sitting waiting to act. >> scott, this was the story of the 17 and 18. 16 1718. and it really created the market dynamic that we're living with today. i think, again, if you think about the lever that exists for companies not just these mega cap companies, but obviously we talk about their buybacks, look at their return of shareholder value in the form of buybacks that's been announced in the last year. it's not just in these companies, but i think the misconception was that, in a higher rate environment, that they weren't going to be able to tap this type of cash flow to fuel this type of return to shareholders in the form of buybacks. frankly, of this debt over the course of several te they have so much

flexibility. when we look at companies we want to own, we look at balance sheets -- we scrutinize the bounce sheets. we think about the companies that have a lot of balance sheet flexibility. there is notable names that are in that mega cap tech space. but there are other names, look at that and look at the flexibility and latitude that gives to these companies in this type of environment. >> where you today on energy? have you come off? that i feel like you have. >> no, we're just wrong. we've been last wrong the last year on energy. i still believe that we don't have enough capital spending to me what will be the demand at some point, to three or four years. announcer the install -- anything else, it will look at tesla's chart. ev adopt as been a bit weaker than people thought. >> a lot weaker. >> that should support the demand supply equation. given where vehicles are. supply has been a little bit better than people thought, giving the geopolitical stuff.

demands been weak from china. oil prices, a couple of deals have been announced without big premiums. people are kind of negative sentiment. i like it still, i just understand we get 107 million barrels, which is what we need to fuel the install base. it might take me 18 months to be, right eventually, oil goes way higher. and, you know, your portfolio you can own eight to 10% of your portfolio in energy. i think it'll get paid. it's been wrong. no question. >> because this week has been heavy with fed speak, we've had yet another speaker today, and everybody's kind of on message now. no march but soon. or soon enough. we're gonna do it probably this year. when do we get the first one? and how much do you think the timing actually matters? >> i don't know. is the answer to the first question. it shouldn't is the answer to the second. meaning, you know, i don't even know if they know whether they're gonna do. it i think the employment picture in the inflation picture and the economy are so desperate that i need to do a ton of cutting. and i've been surprised they're

six or seven -- look at what's implied. so, i think the problem we all have, as we start a history we try to say what historical period is a playbook with can unfold. well, the problem is, history has the tnt bubble on wind. global financial crisis and covid. the court situation as a feel anywhere is dire as those three. am i gonna average in those three things and tell you how many hikes they need to do. i don't know if that made matters. as long as the consumer holds up. okay economies good. sure, i'll do it a little bit. i think to do less than what people think. >> also, shannon, there are some who suggest that they don't even need to cut, and maybe that they shouldn't anytime soon. that was professor seagulls point yesterday. that the markets not, people say, another one of the risks is that market is so reliant on the idea of rate cuts. he suggested, no, it's not. at this particular moment, i don't even think they need to. >> i think there's pockets, scott, of the economy that really could use a rate cut. we've talked about low income

consumers. there's a lot of delayed purchasing that's going on in areas like autos that homeownership obviously, we're seeing a stagnation they're based on what we're seeing in rates. i think there's parts of the economy that they fed is worried about in terms of rates. i think, from a corporate perspective, there are obviously segments, you look at regional banks, they certainly would like to see a kind of a different landscape, if you will. i think it's the number, i agree with adam, it's overstated. i also think it may not be as linear a path as been anticipated. it was a little bit unprecedented on the way up here in terms of going more than 25 basis points. maybe we see that on the way down to. maybe they try to front unload this in june or later in the summer and then see how it goes for the rest of the year. there is really no telling because they have so much latitude and how they want to affect this policy. so, i think that could create some uncertainty.

also some opportunity. >> i guess the dumb statement of the day is gonna be this. the stock market leads the economy, and the stock markets tell you that the economy's gonna be decent. that's it. but economists tell us that things are slow, the market will already been down ten 20%. i think the market is telling you things are okay. >> okay. on that note, that's where we'll end anyway. there are some who say, like tom lee who's been bullish and correct and said stay big, easement correct there. he says his 5200 may be conservative, 54 to 5500 seems reasonable for the upside. make sense? >> depends on your time horizon. how can anybody -- >> this year. >> 5200 only like 4%, less than 4% up. yeah, it could be that the current rates. >> it is crazy. we'll leave it there. thank so much for being here. >> have a good weekend. >> shannon, be well, enjoy the weekend to. all right, let's head to kristina -- for a look at the

biggest names moving into this friday. christina? >> let's talk about pinterest. its shares are lower right now after some missing some revenues, and some softer revenue guidance. for the current quarter. in the social media giant also a lower average revenue per user, that's lower than what analysts have expected. that's why you're seeing shares sell-off about 19% right now. take two interactive, having its worst session since november 2022. as its current quarter of bookings comes in much lighter than expected. the video game maker also cut its full year bookings guidance, some analysts believe there will be further delays to its highly anticipated durian theft auto six. game that has shares down. almost 8%. >> kristina, thank. you will see you in just a bit. we're just getting started here on closing bell. up next, managing the mega caps. the magnificent 7 already seeing some major gains this year. but can the run continue? how high can the stocks really go? deep waters doug clinton, joins us with his expert take after

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welcome back. nasdaq-100 closing it out yet another record closing night today. the mega caps already sitting on double digit gains, it's officially so for the. or this narrow leadership continue to grind higher. let's ask doug clinton of deepwater asset management, welcome, dog. good to see you on this friday. >> likewise, scott, happy friday. >> you too. i've run out of superlatives to describe what's happening. some who are positive investing use the word insane. for some of these mega cap games. what kind of words would you? use how do you feel about what you're witnessing? >> when a trillion-dollar market cap is up50% in a month, i think that probably qualifies as insane. we are big-time tech investors,

we have a lot of love for the big seven. as rational people to, we look at some of the moves we've seen over the past month, the past eight weeks. at some, point these trillion dollar companies can't keep adding a couple hundred million dollars to their market cap every single month. my view is, at some point, we will get a break. we're due for a breather, maybe we're due for a little bit of a pullback. i don't know if that happens in a week. or longer. obviously, the market can be insane it's the word of the moment here for longer than we think. but longer term, that's how we like to try to look at these stocks and not try to play the short term trends. all of the mag 7 continue to have really good optionality as it pertains to a.i. as an emerging technology. we think, over the next several years, a lot of these companies will have benefits that will see flow through to earnings. i think could continue to support these stocks outperforming some other peers in the broader s&p.

>> i don't know if there's just too much of a softball, loaded question is to ask you, which one of the group looks more insane than the others? that only qualifies my question saying, well, nvidia is literally going to the moon every day so maybe that's the easy choice. is it necessarily? >> i don't think it's necessarily nvidia the tough saying, again, the insane thing with nvidia is, even though the stock is up 200 plus percent in a year the multiple really has not expanded that much. a lot of it has actually been supported by a very rapid increase in demand for the gpus, all the hyper scale or building out infrastructure to support their investment in a.i.. i probably wouldn't say nvidia, i might give you a little bit of a divergent answer. i'll tell you the one that i'm actually the most frustrated with. which maybe means it also to some extent, could be insane. but it's google. we own it. we are shareholders in google

in our core tightened fund. and the thing that super frustrating about them is the stocks up 50%, why should we be upset with that? it's because they should be the leaders in a.i.. and they just haven't been. openai is clearly two steps ahead of them for all the data that they have, 20 years of search data for all the distribution they have, billions of users, touch their products every single day. we think they should be in the league in a.i., and they just haven't shown the hunger, they haven't shown the fire to really be aggressive going after a.i.. we think that that could be a mistake. we like to see them get a little bit more aggressive with the products they're putting out. >> do you own it or not? >> we do own google. again, as i said, it's insane to be fresher when the stocks up so much. but a shareholders, we think there's more there. i actually think it's insane that they haven't been more aggressive, because i think they're leading a huge opportunity on the table. >> meta is really the standout,

of this particular period, just because their earnings report is so amazing it's shocking to look at at how much it was up coming off the best year ever. look at the best in the group? >> mena is our favorite in the group the year of efficiency that zuckerberg a bit over a year ago has set a new tone in the company. and where we talk about a.i. the pace of innovation here, it feels like every month it's like three years of development in the old world. i think that that year of efficiency has really set the tone at meta, in a way that google -- has set the tone. but one of the things that i think is gonna underappreciated with for meta, we've seen it, to your point in the numbers in the last earnings, the thing that they still have that could be a huge business in the future is there open source model

business. right, now they have the leading open source a.i. model in the world that's moment to. i think it's downloaded something like 30 million times in the last couple of months. i believe that overtime marks are covered of any is the playbook he's always used with every product he's developed. you figure it how to get a billion users to use or your product. and then you really figure out how to monetize it. he talked about some of the tangential benefits, they're seeing from lawman aoun terms of interest from developers, working with metal improving their internal models. but i think, over the longer term, we're gonna see them provide some different services around llama that could be a multi million dollar business for them. maybe over the next 2 to 5 years. >> doug, i appreciate very much. enjoy the, weekend thanks for being with. us -- we're tracking the s&p as we head towards the close. coming up, gaming out the fed, ned davis research is -- mapping out his red cup forecast, why is that speed could be the key to the markets continued success.

he joins us after the break. closing bell coming right back.

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s&p 500 on pace to close above 5000 for the very first time after hitting the milestone in the last few seconds of trading yesterday. literally, the last couple of seconds. let's bring in ed clissold, of ed davis research. it's good to have you on. here we are, at these incredible levels. how reliant are we on rate

cuts, is that why we're here? >> i think that's part of the story. it's not just rate cuts, but the fact that the economy is doing so well, inflations coming down. that seems to allow the fed to cut rates -- like we've seen the last few cycles, but instead go ahead into move at a measured pace. and allow rates to come down, -- help earnings, help multiples, and it's overall, pretty benign goldilocks environment. >> when do you think the first cut happens, how do you think we need? what happens do you think to the market if it doesn't go according to plan? >> the feds been pretty clear, maybe most likely, but june has been -- the feds also been signaling slowly, that's actually a good thing. you look back historically, the

fed has moved slowly. that is fewer than five cuts per year. the markets doing pretty well, s&p 500 up -- not saying it's gonna happen this time, but have to be bullish -- which is seeing the feds quickly or five times or more in a given year. the markets only about 5%, think about the last few times we've done, that 2019, 2007, 2001, those are all cases where the economy really shut down. it's not necessarily that lower rates are better, it's why the fed is going -- it tells you the news for the market. >> of course, we are hoping, direct say, assuming that the fed is gonna cut because it can. not because it has to. it can because they're confident, they use the word confident they've seen enough to say they're confident inflation is, in fact, heading closer to 2%. >> in the feds done a very soft

pivot in what they are targeting used to be a nominal hedge fund. now it's a real hedge fund range. ask yourself, if inflation is, maybe not at 2% but it's getting close to that. in the fed funds rate is more to five, does that move an almost 3% real fed funds rate? historically that actually been very restrictive. they cut two times, three times this. year they'll forget it's -- you're not necessarily super accommodating, but the restrictive enough to help -- the economy from overheating too much. that's a benign environment. >> if we take the fed out of the equation, do you see other risks? or not so much? the economy, good earning seem to be decent, especially with the mega caps, we've got theoretically some more money coming in off the sidelines into the equity market. >> yes, the way things we do it and the, are we put things into four pillars. you have the macro, the fundamental, the technical, and

sentiment. one of those for let's most worrisome at the moment, is the sentiment. -- since the october loathed. our sentiment composite, which includes seven different indicators of sentiment, things like -- ratios. that's optimism zone, were 50 trading days, and that is the tenth longest streak on record. once you move out of the optimism, zone once you move away from the market, usually, you're kind of mixed with for 2 to 3 months. and then the rally can continue from there. the challenge with this, of course, very optimistic for a long period of time. -- the market can be a rational -- it's not necessarily us -- at the moment. we need to be aware of that. gotta pull back and be somewhat healthy. if we look at these runs of extreme optimism, where it's gotten over 100 days, that's when it's led to bear markets

like 2011. in 2021. almost healthy to get a little bit of precursor. >> what about the broadening out of the market, which is a little better than people would otherwise want you to believe. i've got a ussell that's over 2000 now. it up near 101 half percent on the day. things are trying to broaden out more, how much do we need that? >> it's important, as somebody who works at technical analysis, you can get on twitter or x or read people freaking out about the max seven. it's a little bit of a frustrating scene. it's really about absolute versus federal. yeah there's gonna be some areas that are relatively stronger than others. you're talking about market cap, it's about absolute. in 61% of small cap stocks of 280 moving averages. that's very healthy. -- sure, they've been trailing large caps, but most stocks are an up trend that's a positive thing. would it be stronger or even

more? absolutely. -- the last couple of days has been a part of that. if we look at how small caps do around rate cuts, they usually aren't performing going into the cuts, and then a performing once the fed starts to cut. this is something that's positive for small caps once the fed gets going. in recent think -- could get a continuation of a bull market from fed cuts. it all can work together. >> and, we'll talk to you later, ed clissold, enjoy the weekend. up next, bitcoin hitting its highest level in nearly a month. we'll tell you what's behind it, and how it's impacting the rest of the crypto space just after the break. closing bell will be right back.

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welcome back. crypto related talks among the big winners today. crypto hits its highest level, in nearly a month. kate rooney with the details there. hi, kate. >> hey, scott. some risk appetite returning to the markets, bitcoin is often where that shows up. the cryptocurrency you can see topping $48,000 today. heading for its biggest weekly gain in about four months, analysts are pointing to some speculative buying ahead of a market event in april that's known as the having, essentially meant to slow down the creation of new bitcoin. those women a slowdown in bitcoin ato outflows.

in gray scales -- gpt c, the ticker there then some of the same factors lifting the s&p, passed 5000. solid earnings, easing inflation giving traders a little bit more confident out there. the second largest cryptocurrency, you look at ethereum. also performing bitcoin for the first time since october 2022. all of this is boosting those crypto proxy stocks as well, coinbase one of the biggest winners. reporting earnings next week. got marathon digital, up double digits, -- mining stocks doing well today as well. then the rally is coming a bit, more legal trouble in the crypto industry on the company side. today, new york attorney general, letitia james, expanding an existing lawsuit against digital currency groups saying that a defrauded investors of over three billion dollars, that's more than three times the amount initially accused. scott, back over to. >> kate, thank you, kate rooney, still to come, cloud layers stock is soaring. we'll tell you what's behind that big higher today. we'll also tracking the s&p five -- as we head towards the close. when they were getting over 5000 on the -- for the very

first time ever. you'd be surprising at this point if we don't. closing bell will be right back.

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next victims. ♪♪ you ready for this? ♪pump up the jam pump it up♪ we are in it. closing the markets. on cnbc's senior markets commentator mike -- , here to break out these crucial moments of the trading a. the s&p on track to close about 5000, after hitting it for the first time yesterday in the waning seconds of the trading day. plus, -- with a rally -- -- shares at ten times fast -- and is back with us to share what's behind invitees games. mike santoli, you first. when the bell was written yesterday, were like oh there it is. and here we are. >> it's perfect.

you know, you get to kind of commemorated twice, but only twice, ideally. you know, you don't want to have it necessarily dragged on. we provided no clear genuine resistance, that's probably all a good thing. i think a -- beyond 5000 as a figure, the fact that it has doubled in more than, less than four years really from the low in 2020, is that we are up in the last 15 weeks, 22%. that is a 100% annualized total return, that is how much we have been compounding. so, it is among the best 15- week stretches in the entire history of the market, there's like four other fear -- in the last 80 years. >> incredible stat. >> now, that being said, the next question is, is it too much, in a hurry? and, you might be getting that, or were kind of at that point where it seems like enough for now, just because of the heavy skew towards the highest momentum stalks -- shorts have been finally starting to get squeezed and run. but that doesn't mean the overall trend is in jeopardy, i

don't think. 50 50, and thereabouts, i would say for weeks, is where this kind of up trend was seemingly headed for, and now we are basically. there >> round numbers all-round. you know it's not just the svb closing -- up it's the -- closing above two. and the nasdaq is not quite at 16,000, again. but it is within a few, points and it is setting there as well. >> yeah, it's actually, the nasdaq chart, if you go back three years, it's just this far from its former peak. now, that's impressive, given how bad 2022 was. but, it also is a reminder that you know, if we are just doing round trips over the course of two plus years, it's hard to say you are super overextend. the nasdaq 100, for as much as it has been the source of most of the upside, is still at a lower evaluation than it was last july. and, at the end of 2021. so again, it doesn't mean it's cheap, it just mean it's been crazier. >> it is, and thankfully because you study, and you know these markets cold, it's really

important to hear that. it's context into where we are, and why we are here. and it does push back on the prevailing narrative, which is oh it's moving to, fast is too expensive, it's to this, it's too that. it's getting insane, it's euphoric, it's over -- >> it can be that in the really short term, and you can definitely see some signs of craig chasing. when the crypto relates starks sought to -- >> so that's all, that's all part of it. but that's just tactical stuff, it's not that the actual excesses have built up to such a degree at all, that you want to compare to some of the most vulnerable markets in history? >> cloud flare, those shares, steve -- tell us what's behind the rally? >> yeah oh boy, about -- throughout the day throughout those earnings reports last night. so what's behind the move? well, let's look at what -- ceo in the earnings release yesterday, saying they signed the largest new customer ever in the quarter, and its largest

renewal ever. and of, course a sign of importance for cybersecurity, no matter what kind of company you are, but specifically on the call, prince said cloudflare now has business from the u.s. commerce department. some government agencies there. also of course, the a.i. -- clout flyer, like everyone else, buying up this gpus for a.i., they have gpus now -- by the end of 2023, that was better than its own estimates of 100 cities. so why is that important? well, it basically means cloud fair can process tasks much clearer for the customers that uses a.i. capabilities. guidance is also pretty strong for 2024, four year revenue -- . it was above expectations. and because of today's move, shares are up about 31% or so you are today, scott. >> all right steve kovach, appreciate you as always. -- it is back with us to share what is behind. it videos -- even something else today, specifically that's behind this incredible move? >> you know the answer to that, this time as you have custom --

last years, it has been working on them. but today -- points out not only has -- it been a custom chip unit, but is meeting with amazon, meta, google, openai to discuss building their custom chip, and it is also talked to build a wireless -- chip. and -- reached out, they won't confirm these conversations, but you can see the stock reaction positive for nvidia, positive for ericsson, and negatively impacting customs chip competitors like marble, for example. and for those who don't, know custom ships performed very specific tasks, and are cheaper than gpus. i was chatting with jordan klein in -- earlier today, and he brings up a really good point to me that these custom nvidia chips could cannibalize many actual -- . additionally, custom chips have smaller margins. but scott, a growing number of companies, a.w.s., meta, microsoft, google, the list continues, are making their own in-house custom chips as an alternative to gpus. aka, competition is slowly ramping up for -- gpus are the only game in town.

>> christina, thanks so very much. we do have a news alert right now. actually, we don't. our news alert is that the s&p is going to close about 5000 -- that's an important news alert as we approach one minute left in the week. >> yeah, and 50 24, it looks like there is a decent cushion here. and, i think one of the things that i would take away from the action here so far, is that the market keeps passing these little tests. you know, the treasury options as we were supposed to be a potential speed bump. yields did go higher, but not really in a rapid or a disorderly way. and so, the market got past. this cpi annual division we had this morning, i mean, a crazy amount of attention on this obscure thing. again, absorbed, and it is okay. and i do think also the fact that we have like mid single digit earnings co-track for the fourth quarter in the first quarter, means that it is hard for lots of bad stuff to happen in a lasting way to the stock market, if you got earnings moving in the right direction. even if, as i said before, in the short term it feels as if we are wound pretty tight and running. >> yeah i mean i'm just looking

as yields go up, the market is doing this as yields are going up. imagine what happens when they actually start. >> and we are only at about 60% for -- >> so, we are doing without the fed, being a big part of. this >> and there is been a market first ever close above 5000 -- the s&p 500. >> why is -- and -- i'll see you on the other side -- well there you have it, the s&p 500, closing for about 5000 for the first time. 50 26, it looks like. that's the scorecard on wall street, the action is just getting started. welcome to closing bell: overtime, i am morgan brennan. john -- is off today, but encouraging earnings and inflation data setting the benchmark next to a record close, for tech and consumer discretionary sectors, the top performers today. every major stock indexes higher on the day,, and on the week