space coast. robert frank, thanks for joining us. thanks for watching power lunch. i'm gonna see -- we've got big clients happening, 50,000 today, we're talking to michael sailor -- stocks up 9% today. >> thanks for watching, everybody. closing bell starts right now. i, guys thank so much. welcome to closing bell. here at the stock exchange, -- surging stocks. the broadening rally, whether it's a true turning point for your money. we'll ask our experts over this final stretch, and couldn't goldman's head of family office, sarah -- also coming, up and exclusive with -- in the meantime, a scorecard with 60 minutes to go in regulation looks like this. well, we were within a whisker of more milestones, particularly for the nasdaq. that would be -- 57 and change.

so we've come down a bit midday. we're still pushing, and we will track it over the final stretch. small caps, another banner day. the russell 2000 outperforming the rest of the market today. and what would it be without a check on nvidia shares? well, they would up again. so there is your entry today. now they're flat, trying to eke out yet another game. what a remarkable run that spin. and we're watching shares of arm holdings to. talk about remarkable in a very short period of time. that slide was up 40% earlier today. what can i say. let's take -- can you believe in the broadening? let's ask dan greenhaus. -- with me at post 9, welcome back. it's good to see. >> thank, you sir. >> you've got quite a mark. it statista de, the -- overwhelmingly positive. momentum remains, very strong. is that how you see? it >> yeah. i think so. we have to be cognizant with the fact that the rest of the market isn't doing as well as

the top tier stocks, for sure. >> they're starting. to >> the starting two. but whenever you have this level -- there's a reason everyone is talking about late 1990s comparisons, given the performance of nvidia, and several other large tech stocks, certainly not tesla, but some of the rest. -- they were doing a lot of the heavy lifting here. but outside of that, as we've talked about ad nauseam with other guests as well, plenty of other stocks, plenty other sectors contributing here. it's been pretty impressive. >> can you believe in it? it's sort of my central question of the day. can you believe in the broadening? because you've had it before. but it's been short-lived. a couple days here, a couple days there, but not a trend to really believe in. >> not at the headline level. but again, to repeat, this number of industrial stocks that are sitting highs that have secular tail winds. >> the industrials chart looks great. >> a number of consumer names, not necessarily the retail, is although abercrombie & fitch is to the moon, but a number of consuming sectors like hotels, anything associated with travel, obviously, remains

pretty strong. the home builders, of course. it's not just five or six text dogs that are going up. they're just doing the heavy lifting. >> -- comparisons to 99. you say some suggest it's more like 95 the 99. fed pulls it off. they pull off a soft landing. they do a few cuts, the economy hangs in, and everything is great for the next few years. >> sure. admittedly, there are similarities and differences. there's a lot of people talking about late 90s comparisons. i think the point i wanted to make to the producers that i would make here an error is, like, the level of agree just over valuation that we saw in the late 90s is nothing like what we're seeing today. there are pockets, of course, eli lilly, very expensive, nvidia, very expensive. >> is that? >> if you believe in forward earnings. >> i mean yeah, it costs a lot to buy a share, but the valuation is actually cheaper than its ten year historical. >> nvidia, still 50 or 60 times forward --

>> 30. it's like 33. >> depending on your forward earnings. -- we don't care about the facts here. but my point is, when you go back to the 90s, especially towards the end, you had stocks like people soft and other names, oracle was trading at 100 times forward earnings. the market as a whole was trading at 35 times earnings, the nasdaq was trading at 120, 125. >> we're nowhere near that. >> that on its face is insufficient. because of the fact that you're not as overvalued as we were in 1999 does me little to no good. but the 95 analogy i think is warranted in the sense that then, you are at the forefront of the evolution of the internet and the names that were associated with it. and when you go back and read the reporting at the time, new york times, cnn money, washington journal, the commentary that is very similar to what you hear today from the like of that -- or on the doorstep of this new industry, this new paradigm shift. >> do you think it's gonna end badly? >> listen, when something is

trading at 50 or 60 times earnings, whatever it might be, not nvidia, let's say, but in general, those things usually end badly. i defer to my friend -- over at goldman sachs who've done work in the past -- what stocks usually grow into their valuations. and historically, stocks trading at, what will call, excessive valuations, to oversimplify things for the viewer, usually don't grow into the valuations. it's not always true, it's usually true. >> we've got cpi tomorrow. we're gonna get ppi this week as well. what's riding on this? it's on the narrative, right? >> share. >> inflation is a 2%. it's gonna cut before it gets there. >> the path is gonna cut before it gets. they straight to where the puck is going, scott. the idea that they need to wait to 2%, never an idea that they advanced or an idea that the market should've believed that. the trend is clearly downward. i think the so-called last mile that we're only focused on right now becomes the focus. how long does it take you to get from 3% down to 2%? at the same time, from an investment tandpoint i'm not

sure that i care. and what i mean by that is, from an investment from a market forecasting standpoint, if someone told me inflation over the next five years will be 3% rather than 2% so i really think that the earnings trajectory, the economic trajectory will be meaningfully different? i'm not sure it will be. >> the dow hits a new intra day record high today. the s&p it's a new intra day record high. there was a moment today where the nasdaq was trading above its closing the high. these records make you nervous? you say this is all good? earnings are gonna justify the economy is gonna justify, the fed, new trend is gonna justify, all of this? >> the economy has justified. earnings have justified. the fed has justified. >> you think earnings broadly have justified? >> listen, tech is doing a lot of the heavy lifting. there's no doubt about it. there's been some improvement in discretionary even outside of amazon and -- but, in

discretionary, health care has a pretty good earnings trajectory, it certainly better than say in materials. it certainly better there in some of the out of the spaces. -- 300 conference calls, on press everybody by saying 500 conference calls, a lot of conference calls. >> we worked really hard. >> really, it's very difficult. but the point is, no matter how you read it, i'm struggling to find its negative prominent terry from the companies in any one of the sectors. the best i can come up with this normalization, with the excessive growth rates, or the extreme growth rates, i should say, from a year ago, are coming back down to earth, so to speak. that's really the most negative commentary unbalanced that i found. it's not to say there's one company that hasn't said something specific, but groups of companies sectors, industries -- normalization that wears. >> i've seen people -- smidge above 5000, saying, wow, this

was really conservative outlet this year. we've got 52, hundred 5400, base case -- >> i couple times ago, i wish we could bring up the video. i speculated that you're talking about this year, it should be 5300. which at the time i wasn't invoicing as my own personal view, but i was, saying if that where my view, 5300 it would make you the most -- and how do you get there? you have normal caught 10% earnings growth. multiple -- 19, 20 times, and you're pretty easily 52 -- it's not even that much of a stretch to get there. the advantage i had when i did that was i did it in early january as opposed to early december, when the other strategists -- >> next time around, will play the tape. give you some props. let me tell you something. we always -- >> you know something, scott? your friendship is the only props i need. >> -- join the conversation. welcome back. nice to see you as well. >> great to see. >> do you agree? pretty optimistic, to say the least, outlook. >> i have to say i agree, and we agreed together in december

as well. we were very bullish. and the thing is, and feels like 95, 96, and not 99, because first of all, go back two years. we're basically in the same spot where we wear in the s&p and nasdaq. and -- 20% lower. so we're not exactly over a skis here. we had the earnings coming in, and so it doesn't feel -- if you take it to you view or a three-year view, we're actually not over our skis. the fundamentals are strong. those low estimates for the s&p for the end of the year, almost universally expected some probability of a recession. as you price said, out your end of your target goes higher because you don't have the -- you go higher into the five thousands here on the s&p. the endings are very good, large heck tech -- gonna keep on leaning here. >> do you believe in the broadening? >> i do. >> and the story that it can continue for a meaningful period of time?

>> i'm gonna call it a broadening, as you do and not a rotation. it cannot be a rotation. the magnificent 7 market cap is five times that of the russell 2000. you simply can't sell enough magnificent 7 to get russell 2000 to a real position. >> but you'd say max positioned in terms of the mega caps? >> i would shave some. i would rebalance a little bit. i'd go to the other -- i'd like to also globally. bmi is have bottomed globally as well. it's a really interesting story, because of the kind of doom and gloom that we're hearing about a few months ago. but data is coming in much better. the key thing here, as you point out, the cpi tomorrow. the key variable is inflation. 3% inflation, inflation moving lower, that's the story. then the fed can cut a 3% inflation means the fed can cut, real rates cannot be over two, two and a half percent, and the story continues. then you wind up with a long duration acids doing well also. >> if things, dan, at this good

right now, what happens when the fed actually cuts for the first time? what is that a signal for for the stock market? we like to anticipate things well in advance. >> when something of a bizarre mark in the sense that historically, when the fed begins to cut is when you would want to trim positions. you saw this leading up in the second half of 2007. you saw it during the course of 2000. i'm not sure that's the case, for reasons that have been discussed on this show and others. >> let's also recall why the fed cut. >> that's right. it's conceivably -- >> i see why you would suggest that. because it would make sense. fed cutting because brings their bat. you have no choice. here, this whole thing is banking on the idea that they cut because that can, not because they're forced to. >> that's exactly right. which is why a history is maybe perhaps not as relevant. so yes, i think what you have is a situation where if the fed cuts, i can construct a scenario where interest rate sensitive sectors start to do

even better, if that's possible. and you look at something like the homebuilders, i'm not recommending them as an investment, but industries that are typically waited, cyclical sectors that are typically weighted towards interest rates, i mean, i've already done somewhat well, dare i say they might do better. at the end of the day, i think the way you have to approach the next year is one, optimistically, because the data is cooperating. alicia mentioned -- leading economic indicators, which components of the bmi -- same view are starting to turn upwards. with the caveat that the heavy lifting is being done by a few names. and if you start to see profit warnings, or something like that, then sure, we can have a conversation. but getting back to the 1999 comparison, you had a year of nortel, intel, yahoo, microsoft, kuala calm, jt asks

you, warning about -- before eventually though -- >> this was a period, if we all remember the famous greenspan irrational exuberance line, it wasn't at the end. it was a few years before. so then, at what point, alicia, this is a good segue -- one does exuberance become irrational in this particular case? >> i don't think we're there yet. the earnings are coming in, and the margins just keep on going higher. so that is our new.com. right? that is the new area for investment. and so far, it's going so well. which is not there in terms of multiples of revenue leading to higher stock prices. we're really more fundamentally driven here. as you point, that irrational exuberance was in 96, and we had another three and a half years to go that were extraordinary in the back. >> is that -- are we potentially looking at another period like that? as you said, the s&p basically went nowhere for a couple

years. if you look, you know, back a few, it's not like the nasdaq -- it's not like it's cheap, but you could certainly say it was more extreme, perhaps, a few years ago. does that make the runway longer this time? >> it does. because the drop we saw in 22, and most of the market in 23, reset where we can go for the future. price came, in multiples cayman, large -- kept on doing what they're doing because they were insulated from lending and higher interest rates. and we can move from here. you go back two years, we haven't gone anywhere. what are we so afraid of? right? we can't be afraid of this. this is where you can make money for your clients. >> the funny thing about this, it's almost like we've memory hold the fact that the nasdaq fell 36%. but the stock market, the s&p 500, fell 27%. it's not as if there's been no pain, let's say, associated with the s&p, the federal reserve rate hikes. it's not as of no one paid the price. the entire crypto industry was effectively wiped out. all the tech stocks have

effectively been wiped that. all the companies that one public through the ipo process of effectively been wiped that. there's been enormous pain and losses inflicted on investors. now, just because immediately thereafter we invented this tire a.i. industry in november of 22, i think it was, compensated for some of those losses, but again, let's not pretend that you didn't have humongous losses and pain for investors broadly. >> but what where if raid of his missing something. where afraid of these lags that are long and variable. having some sort of negative impact that are not yet seen. where afraid of commercial real estate having a larger impact on the market. we've had some tremors. you have an ad full-blown earthquakes. looks like we might have something -- the fed came to the rescue there. >> that's the story. what we learned in march of last year is that the fed has a floor under the market. >> the fed puts back. >> the fed put is back. on the landing side for banks.

so if your fear is what's happening with bank balance sheets and the commercial real estate going to the regional banks, two trillion comes to you by the end of 2025, it's not that they're all gonna be great investments. it's not the fed is gonna be there to backstop it. and therefore, it's not a systemic risk. so if you're an investor, and you say that's where i'm really concerned about, the long in variable lags and see our e, and what that means, to some bank balance sheets, i think what we've learned is, you know, it's gonna be a cushion there. >> to that point, if there were -- i don't want to say the fed -- if there were losses to be taken, it wasn't silicon valley bank. the idea that no uninsured depositors in that bank could absorb even amman -- modest amount of losses to spare some of the pain or eventually pain on taxpayers it's unfathomable. we had this conversation about the fed stepping in, effectively, internationalized the banking sector.

so worries about this have to be at best mitigated. this clearly more losses to be taken, as alicia noted and the certain banks -- larger cra exposure. but when the time comes the fed has already told us the government's already told us that they're not able to -- as investors, you have to react to that, at least modestly. >> well, certainly with the don't fight the fed -- the feds not perceived to be adversarial anymore. it's pivoted. we're zooming that the next move is a cut. >> listen. rightfully so. again, you've gone from 9% inflation worth 3% were on our way to 2%, maybe we'll get stuck at two and a half, i don't know. but again, from an investment, that's an economic discussion weather to the 3%, or whatever the right target might be, what effect does that have on -- a number of other components of the government. but from an investment standpoint, i'm not sure that illinois cool works, or bowing, or chipotle have some sort of

troubles in a 3% environment -- i can probably even make the case that percent is better for profits, in which case the market should be going up in volume. >> lastly, since we're talking about rates, how long is it okay if a ten-year houses around 4%? >> it's fine. because the next move is a cut, right? so unless something drastic happens geopolitically and inflation goes higher because this wasn't places we don't want, unless you get that, the next move is a cut. -- we know the direction of travel here. and that's what's supporting the market. >> i'll make that the last work. guys, thanks so much. dan, alicia, i appreciate you. -- biggest names moving into the close. kristina? >> let's start with b f quite jumping today as -- companies founding family is throwing its support behind engaged capital, which is the activist fun pushing for changes in the company. well it's unclear whether the support is merely symbolic or backed by an actual stake in the company, nonetheless, you can see the shares are up 13

and a half percent. lows is higher after -- home improvement retailer shouldn't benefit from sliding mortgage rates alongside expected interest rate cuts. those shares are up over 3% right now. scott. >> all right, christina, we will be back with you shortly. >> yes. >> christina. we're just getting started. up next, your high not worth -- back with us here post nine to tell us how she's advising her clients right now and how she says to play the magnificent 7. she's right here post 9 after the break. we are live at the new york stock exchange, and you're watching closing bell on cnbc. ♪ ♪ ♪ icy hot.

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should stick with that train despite those outsized returns. here at press, nine star nathan tarantino -- nice to have you back. -- bullish. is that where the trend is here? >> look. i'm constructive. i don't think i'm expecting the type of returns that i expected when i was here with you in november. >> with a game since then, the nasdaq is up 17 and a half percent since you are last year in november and were positive pretty positive. >> and constructive. i think the economic data is strong, earnings have been strong with 57% of companies having reported, 57% having beat. that's the average beating as below 50%, typically more like 48%. so i think the economic data and earnings are supportive and i think our perspective on inflation is that it's continued away and -- >> as easy money made since

november 1st, is it gonna get tougher, or perhaps not? how would you answer that? >> so i think you will get a little tougher. if you look at our kind of global investment research target, it's 5100. pretty much right there. i think there was some upside risk to that number. >> everybody keeps bumping the numbers up. >> i do think they're gonna get a bit more challenging. i think we're looking at side. my view is to stay along the magnificent 7, in part because i work with typically taxable investors. so those taxable investors have realized huge gains. >> i don't to pay taxes. >> i don't wanna bet against those stats. it's important to have large cap allocation in a core portfolio. -- economic numbers are definitely supportive of more cyclical stocks. if you really think rates are coming in, which i do, those companies have a lot more floating rates. and their evaluations were still 20% off the number -- forces s&p reaching a new high

every day. so that broadening of the market is something i believe in. and then, -- russell 2000 is trading at two times -- its average, historically, of 2.2. it's interesting to me. >> so it's gonna be longer lasting, you think, when the russell, for example, to continue this run that it's on? i've had people sit here and say, look, the russell could go up 50% this year because of all the reasons that you said. now, 50 may seem far fetched, but the point is clear. >> yeah, i don't think 50. you know, i think it has the chance to return, you know, something in excess of rms expectations for the s&p is another 7% from here, another 15% from here, by the, way the russell typically at performs an election years to. so all those things -- i will say, just generally, on the market, i expect we will get some volatility this spring or

summer as we head into the elections. i think that doesn't start to happen until two or three months before. and i would tell clients to add on those steps. i don't think it's gonna be a straight line up until the end of the year. >> have you had to kind of rethink? i know the firm has in terms of the first rate cut. march kind of doubled down on march, then after last news conference -- all right. may. >> so, may we expect five cuts -- >> if you look at -- trending below the feds 2% target. so i think we still expect to see those cuts if they get pushed out from made to chin, does that seriously impact the market? now, i actually think in some ways the economic data being strong as more important for the market. >> okay, interesting. >> and, so yeah, i think we still see those cuts coming may or june. the official firm view is may. >> so we're not too reliant. that's the point you're making?

this market isn't where it is now because it's too reliant on the idea that rate cuts are coming soon? >> i don't think so. i think, look, if inflation, you know, doesn't lean the way we expect it to, that's a different ball game. and if we go from, you, know five cuts to want to, i think it's gonna impact the equity market. but if it's for instead of five, or starts in june instead of me, i don't think that's gonna have a big impact on the market. >> how do you adjust the idea of exuberance, euphoria, you know, and nvidia, for example, which we can't do a show without looking at it, and it's used to be green almost every day. holdings today was up 40%. there are a lot of stocks going parabolic. that's the point. if you don't to speak individually about names, just the concept of, wow. you run out of superlatives to describe some of these names. >> i think there is a lot of exuberance, especially around large cap tech. but i think the earnings have supported that exuberance. so until -- it shows me the

minute the earnings were not there now, it will not be supported. they're very high expectations on this thoughts. the answer to that is to be diversified. we advise clients to be thoughtful about outsized exposure -- the exception would be, obviously, somebody who is a ceo or the owner of a company has no choice, but in general, we would say, to be as first defined as we could be across equities. i think this is a really interesting market to think about further diversification of your equity portfolio. >> on that note, makes me think of alternatives. which are kind of the latest, greatest idea. they give access to investors who haven't had a lot of access to alternatives before. this many vehicles to do as such. private equity, private credit. can you speak to that? >> there. we think alternatives is an essential part of high net with or a family office portfolio. we did actually a global family office survey in 2023. clients have 44% and alternatives that we surveyed through that family office

survey. and there's a lot of reasons for this. if you look over the past two decades at the end performance of alternatives, just look at large cap by it. the median by a manager performed the msci world by close to 6%. you take the -- numbers 12%. so, you know, for the liquidity, you have received historically a premium over public markets. our private climate -- also lets them be patient on some themes that might take longer to realize. climate transition, inclusive graph. these are things that can take 5 to 10 years to be realized. that's a really harder to play in the public markets than it is in the private markets. so we still like private markets. >> better way to generate more -- >> right. >> good to have you back. >> great to be here. >> all right, sara naison- tarajano, goldman sachs, family office joining us. up next, or wayne commit -- --

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welcome back. consumers look to have taken a bit of a breather with retail sales taking down slightly in the month of january. that is according to the latest read from the cnbc national retail federation monitor. the number, however, still more than 2% higher year over year. joining me now and post 9 to discuss the state of the consumer is mickey drexler, the former ceo of j.crew, and the cap. he is now the chairman of alex mill. of some to have you back. good to have you here. >> good to be here. >> the prevailing narrative for the last however many months you want to pick is that the consumer is great and hanging in, and that's been surprising to many. what do you see?

>> i'm not sure who consumer is. it's not great for a lot of people. and i see up and down, it depends on what the goods are, who is selling it. it depends upon a lot of factors. i see more discounts around. i see them. i go online in preparation for this. i do a little homework. >> i appreciate that. >> and i say, what are the margins? but i think the consumer is consistently being told, wait till sail, or go to t j max. it's today at that price. so i don't think it's so rosy out there. >> i thought that inventory levels were finally under control, and that because of that, the discounting was lots? >> well, i'll tell you the real issue is inventories might be under control, but what's the content of the inventories? and i've been there many times

where you've got too much in there, little alex male -- i want to say it's little, it's growing nicely. but when the inventory is not right, you have to discount. and right now, i love 80 20 rule always. i try to push it. take you 10:15 best items, own them, and be famous. assortment is dangerous if you're not picking right. >> but that was your genius and the companies you used to run. that was the focus of your strategy. >> well, it's not genius. it's common sense. you walk into a supermarket, cereals, there's 30 of them, give me ones. give me one person or two, not a huge group of people in an ad or whatever. >> who stands out to you today who's doing it right? you look at what they're doing, and they are playing by the

strategy that the legend says has two -- >> i never like to compliment our competitors. but t j max, she's the best. who's doing it right? companies that consumers will say are doing it right. i think they have a point of view on the businesses that are doing it right. and then all the companies. i'm very picky. and doing it right, to me, also includes whatever the goods like like? i see a lot of people doing great, i'm not trying to ask myself, but it's not my point of view, but they're doing great because they have their point of view. >> as alex mill mostly direct to consumer? is that fair to say that? >> well, it is mostly, because we have to shops. we don't have any investors because i've dealt with a lot of investors who were financial. and when it comes to looking at the goods, how low. they look at it, they want to make the money, and look at

most companies that are bought out. creative companies by ohio authority. they take the culture out of companies, in my experience, running -- million years ago, big bureaucratic department started took us over. and i had -- for years to learn how to be -- it depends on the culture. marriott buys saint reaches, they buy that -- i'm anti-pick. i'm not anti nimble, i'm an anti quick. but the -- >> are we still over stored? i asked that in the context of, i'm walking down the street the other day, in a town, and that was a lululemon star on the corner. and it's no longer there. and i was like, how is that possible? for a brand like lululemon? >> well, they're killing it. they're doing amazing. they have a monopoly on

athletic wear, and they have to stay there. >> do they? or people just shop online? >> no, i think they do. lulu is -- they know them, they're consistent, someone said they were trying to do street plugs, whatever that means, or stay with what you do. people are always -- i've been guilty. look for another opportunity, the opportunity we have or one has is right there. it's right in front of you. and you don't have to go out and do something else. so, the store thing, i don't know much. they have -- we have way over stored. because the consumer, on my opinion, they don't need so many choices. it's confusing. i spoke to someone today, i said an old friend who runs a

really cool company called -- what the heck is the name of it? anyway, he's gonna kill me. a swimsuit company. his name is mad jacobson from facebook, also. anyway, i said, i want you to do one bathing suit for us. we're not in the suit business. -- i'm so blanking on the name. anyway, i said, do one bathing suit from in. i want to be the best suit ever. and i want to sell one bathing suit. so i'm sorry math, but -- >> let me ask you this. you told one of our producers and i thought this was perfectly put. people say inflation is under control, but prices are still at the same level they wear it two years ago. it's an essential point, because we always talk about, how, inflations coming down, inflations coming down.

the rate of inflation is coming down. prices are not coming down. that speaks to the disparity you speak of at the beginning of the conversation, where is that the consumers doing great. it depends which consumer. >> when i'm leaving the office today to come here, i did my little surveys. so i'm going around, open office, or a small company. i said, tell me if inflation has come down, or where it hasn't. so here's the examples. sandwiches now, 16 bucks. they used to be ten. the soup was 12, it used to be eight. airfare was -- using the san francisco and example, was probably 50% higher than two years ago. and the hotels, the price, the cheapest room, i'm not giving credit to -- you know, six, eight, $900? and they're all booked, too.

so that goes to probably entertainment or whatever they call it experience. and i also think, personally, i think that consuming is now moving in -- the japanese do this, innocence. they buy, i think, one good -- instead of three not so good. you advertise, for me, i've always done that. in our opinion -- not that it's always been that good, but i think style never goes out f fashion. and the prices, by the way, if you look at the quality, companies retail -- stunning to me. stunning. >> i feel like every time we talk, it's a living version of the harvard business review. it's a very big compliment. because you give a really clear sense of on the ground what's actually happening in the state of retail.

and the challenges of running these businesses. thank you for coming back. it's great to see you again. stay that, i let you go and just decide. that's mickey drexler joining us right here post 9. up next, the energy deal that as investors talking and shares of diamondback popping. we'll give you those details why the deal is so important to the sector. next on closing bell, coming up right now. you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989!

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less than 15 for the closing bell. we're watching shares of diamondback energy today. -- pippa stevens. >> -- buying endeavor energy for 26 billion. the private player has key acreage in -- calling endeavor at the, quote, crown jewel of private companies in the permian. combined, diamondback's output will jump to 816,000 barrels of oil equivalent could play, making it the largest -- in the third largest producer in the region overall. -- highly coveted deal with andrew that my -- famous among the last -- in the permian. -- back to you. >> the post events, so much. coming up, don't call it a snap back. shares of social media companies stop moving a higher,

and that after a very rough earnings report last week. i'll tell you what's behind today's move. closing bell is right now.

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coming up next, armed holdings. look at those gains today. let's not even the highest levels of the day. stocks have more than doubled over the past week. we will tell you what is beyond the rally, what it might mean for the rest of e tythci space. much more when we take you inside oma zone next. ♪ ♪ ♪ with tailored education. get an expanding library filled with new online videos, webcasts, articles, courses, and more - all crafted just for traders. and with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning. trade brilliantly with schwab. i could use a little help. yeah, there's a lot of risk out there. huh ♪♪ hey, is this thing hard to learn? nah, it's easy. huh. you know, i think i'm going to ride it home. good thing you chose u.s. bank to manage and grow your money.

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get another record close for the s&p 500. it looks like we are going to get one for the dow. the russell is the standout, about 2%. >> that is the story in terms of the relative strength of pictured here. i think that you saw some things today that looked like possible short term crescendo's in the most overheated parts of the market. we touched best -- bitcoin 50 k after s&p five k. you have nasdaq 5000, 118,000. nvidia almost got 17, 50 15 points off the high. so you had this kind of extreme of short term action. that is reversing. now it's being insulated by the russell up 2%, banks up 2%, consumer cyclicals upped 7% at half. for now, it is a rotation. it is not -- we used up all the fuel, now we're going to coast on to the shoulder. >> that has been a critical question. if you have pull backs in those areas, is it cushioned? is there evidence that suggests

that it is? >> it does. if you look at the other dynamics. cyclicals are over defensive, that is rock-solid. credit is fine. we are getting into this period with february week, you see extremes in speculative stuff. a little bit of low quality stuff moving. we wouldn't be surprising to have that headwind of seasonality in february bringing something a little bit more broad in terms of pullback. it doesn't seem like it will throw it off course. >> no rest for the weary in arms shares. christine parts and all of us, what a day. >> no new news catalyst, but the stock is storing. last weeks earning report from arm, the leading provider of chip i d, has led them to be an underappreciated a i play. even the most of that a.i. opportunity is not in the immediate term. the stock is up 95% since it reported early -- earnings last november the 8th, monday, that's a week. the reason has more to do with

low liquidity in the options trading. -- it still remains the majority shareholder with over a 90% position. that means less than 10% of the free flow is available to the public to trade. okay, a lot of shares and short position can move shares dramatically. they're also locked into the holding for 180 days. the lock-up expires on march 12th, which would mean more active volatility should softbank truth -- choose to sell. >> tiny float, christina, thank you. not to christine, thank you. >> snap shares at 5% after the company announced the s.e.c. filing, entering into a privately negotiated debt buyback. the company's buyback, approximately 100 million dollars worth of convertible senior notes next year. another nearly $340 million for us to on the following year. the straight -- moving to lower snaps debt obligations as a

sign that the company is improving -- but the shares are still down about 30% after the past week after the company reported that lower than expected. revenue and revenue guidance in its quarterly earnings report last tuesday. scott? >> julia, appreciate you. thank you. about one minutes ago in the session as we turn back to mike santoli. you have cpi? it has december to move on, roads but we have an idea of what we have. >> you have built up the confidence that that's where we're going. one number doesn't really depend that. on the other hand, the market generally is feasting off of this good news. a lot of idea that soft landing, we can almost take for granted, and all of the rest of it. again, in a to the possibility that the market can decide to take something a little bit negative, even though it's a really big deal. and cpi could be one of those things. and the volatile market hasn't been doing a whole lot. look at that. [applause]

we have highs of two months into the deal. i think you don't want to sleep on it untie early. >> we will take it. [bell ringing] >> the bill is, bringing that won't mark another record closing time for the dow jones. we will see it tomorrow. [bell ringing] [bell ringing] [bell ringing] we have another record close for the dow, the s&p is holding steady after hitting an inter day high. if the winner stays late, welcome to overtime. i'm -- with morgan brennan. >> blue chip closing for the first time in four sessions. it was the russell 2000 that was very big out performer today. finishing the day at about 2%. bitcoin hit 50,000 for the first time in two years. we are going to discuss the outlook for bitcoin with micro strategy executive chairman michael sailor. >> it will b