a number of critics among those who are living in the virginia area. not sure if this will work out. it will be interesting to see what happens. >> it will be interesting to see what happens. and that is another thing. we'll see. sharon, good to be with you. thanks for being with us. and thank you for being with us and watching power lunch. we've got closing bell coming up right now i believe with scott wapner. hey, scott. welcome to closing bell, i'm scott wapner, live at new york stock exchange. this make or break hour will begin with more. high flying palo alto reports earnings in just about one hours time. part two tomorrow, none other than nvidia delivers. that stock is lowered today. the run on mega caps and the hype around ai. we will ask our experts what is really riding on those results. in the meantime take a look at your score card with 60 minutes to go in regulation. and for most of the day today, russell, it is the big lagger. that will follow two straight weeks of gains for the small

caps. nasdaq down sharply declines not only for nvidia, but microsoft, amazon, apple. interest rates nearing the highest level since november, probably weighing on things a bit too, which will take us to the talk of the tape. the talk of the tape, feeling better about their arguments lately. we've got one of each with us today to debate the road ahead for your money. greg branson and john mallory. greg, cnbc contributor. it's great to have you both with us. we revisit this from time to time, now is a good time to do that. greg, i'll turn to you first. >> good to be here, scott. >> your story has remained the same. from your notes, it appears as though you are enfolding again as a bear? >> i'm more convinced. and in fact, scott, i don't think the question at this point is what is the bear argument. i think the question at this point, what is the bull argument? at this point, everything at that rally, everything that fueled the rally has reversed

decidedly, whether it is the jobs number of 180,000, now we're at 300,000. whether it was cpe growing at 20, putting us in line at 2% sustainable inflation, or we saw that go to 30 dips. now we saw that go to 40 dips. so the question will become if everything is reversed, including the expectation for the rate cut. and the market trading at 22 times. >> and everything having reverse sounds a little bit over the top. and january is an anomaly in a lot of ways for not only the jobs numbers.

and i find it hard to get on board with everything that has reversed that got us here in the first place argument because i could almost say that it will be the opposite that nothing has changed. >> let me address some of that. the reality is that we've got two months of 330,000 and another one with a one in front of it when you look at the last seven months is the anomaly. and the trend is 200,000 or 300,000, which we know is not a neutral number. it's about 100,000. when we would talk about earnings, that has actually been a surprise. i did not think that they would come in the strong terms of 7.3%. and that is a lot higher than you would fall. let's be honest. that is more than three times what you saw. >> and a lot higher. and i think that will remain to be seen and that is the lesson

that i think we learned with focusing on the course cpi number or focusing on the job growth numbers, that we'll need to see if that is the trend. but i do think that it matters whether it is three or six cuts, but i do think that it will matter when they come. that will have a direct impact on what companies are going to earn this year. and if they are not coming to the back half of this year and if they are coming at all, then they are in the later camps, and that i don't think there is any way of the 12% growth this year. >> but the consensus has been doing wrong in many respects to this point. and that i don't know if they are going to come down as fast as they have. it has. and the data, they will support that. i don't know if any people thought earnings growths would be this robust for the fourth quarters that we just said. it has. i mean i went back to look at some of the things that we would talk about over the last year or

so on this program when you have been on, and you would remain bearish for the entire time and that it will be fair to say, right? and almost exactly a year ago. february of 2023, they will get everything cheaper in a few months. and that it is likely to go to 6%. nvidia is $200 then. i'm not that excited about buying both years. ten months ago. s&p is 4100. and in your words, is this counting the future incorrectly? we're now at 5,000. at what point do you say, you know what, i was wrong? >> i think that it will be a number. >> and is that true? >> and you are still trying to swim against the tide. >> both things can be true. it did not play out like i expected and that i explained why. >> it did not play out like you would expect it and that it is fair. don't say that i have been set up and that i said it repeatedly. >> and i still believe that this is probably the market that's

counting the future incorrectly. and it is tied directly to the reason why i said i'm wrong. and so yes, in the beginning of this year, i was cautious, i got more cautious as the markets started to run particularly i did not see the same trends as this market is discounting. so we can say that it does not matter if it is three cuts or six cuts, but it will matter to a great degree and you think that the next move is a hike. i used to be alone in that view and you are increasingly seeing the others come to the table and talk about either there won't be cuts this year or they have a hike and that there might be some others. >> and that bank, they are still looking for cuts, not to be aggressive. we will see where that discussion goes. the end game is not today, right? the end game will be just as it has been, okay, we're moving up the march. are we going to move off of may? where are we going to agree? and i think that from the

discussion that we can agree if i'm right and there is a hike coming before the hike, that will be meaningful negative catalysts. >> i don't think that there will be a question about that and the fact if they have anymore, the market will not like it. that there is no question about that and i would say that's pretty darn low. >> sure. >> i would disagree with you. i don't see a scenario where we would get a hike or a cut in the first half of this year. i can paint a scenario and if they continue like they are and we get that growth of 50 basis points next month and that job numbers remain at 300,000 and 60 basis points. let's say they will remain at 3.7% and you don't think that they will be compelled or feel compelled to act? >> i think that they will have a little conundrum and that the stronger growth that will remain, inflation, they might remain, they might remain a

little stickier. but again, the trend of inflation is not going in your direction. that it is going lower by the key metrics. >> and it will be three months in a row now. >> and do we have it in that pce for three months in a row? and things that will matter most to the feds and that is the underlining part that we will need to see what that trend is and it is the inflation from here with what they have done so far and they are starting to hear them say it that it is not from here and what they have done so far, and we'll have to wait and see and i'm seeing a different trend than you are. >> i'm just going with the data. >> we bothare, my friend. we both are. >> all right, let's bring in john. i wanted to have a little back and forth with you before i open it up. and i respect your opinion, but just that my point of view, john, i would say this to a bull

in the market and if they haven't gotten it right, but still make the case and that my view is right and that you can't say that it will snow every single day and then it's sunny outside and that one day it finally snows, you can't raise your hand and say i'm right. i called it. i would say that to anybody on both sides of the program and do you have a counterargument? >> well, i would enjoy listening to it both with a few thoughts. and the argument in of course of 2022 was don't own particularly large growth because those companies should trade in lower multiples because of much higher interest rates, which is an argument that turned out not to be true because they were able to fund themselves that have not tapped that market and that the

financials and utilities, and what is very ironic is all those areas, they got expensive as people we're expecting the session in 2023 that did not occur. so why am i saying this, scott is because i like to let evaluations shape their expectations that you are getting discounted evaluations a year and a half ago today and the deeply discounted areas are in and financials, you've heard me say this on the program and because i thought the narrative of the higher rates were overshadowing. and today there is plenty of opportunity, scott, that are very attractive, but i don't think that they are if that area. and nvidia and other areas are capturing people's, you know, heart in minds right now. but the areas where they should be focused on, you've got some

of the biggest dislocations there in over a decade, scott. >> and for a reason. they are focusing on those reasons. >> and for a reason though. i mean the big tech stocks that have run a lot after getting clobbered in 2022, obviously they would have the benefit of ai. that is the big catalyst that has us where we are today and the ones that have capitalized obviously on the trend of ai. and what is the can list other than the discounted evaluation that you suggest they should go higher? >> i pushed back a little bit of that and i don't remember them being talked about in january of 2023. that trend became later. in fact if you do google trends and type in ai, that will give you a feel for when that kind of started to take off, so it was well past the bottom i would argue. but i think that the catalyst, scott, it is very simple if you

look at the spread between the bond deal and the rate, it is very wide. the rate is too high. and that it is flat. and that they need to cut and if you reduce rates by what the market is saying, which is roughly 100 basis points, that will absolutely benefit those areas that have higher yields. they are trading with the evaluations. and let's say things slow faster then and that if they have gone into that recession and japan went into a recession and not a lot of folks thought that and inflation is still above trend in both of those countries. so there could be a reason that the u.s. economy does sputter. if they lower rates for other reasons and that it is time to lower rates this high enough and they are more comfortable. that could create another bid for areas to have yield relative to the other classes. >> i think that we could trace the ai mania if you want to call

it that from it the microsoft investment in open ai. would you agree with that? and that was in january of last year. and with many respects without that. that lit a fire under the ai trades. so that was the catalyst and it was that far back, and other than hopes for rate cuts and hopes of the economy will remain as strong as they have. i'm not sure of a defined catalyst that would make me want to invest. by the way, when interest rates are sticky up in these levels, you really want to bayou tillties. >> yes, you want to bayou tillties. look at nextera, the leader in renewable energy. you are getting with the discounts. you absolutely want to be

looking at some of the slower and boring areas. and i totally agree with your comment, scott, about microsoft and ai. however, it is not just that. i mean home builders have ripped. there's other areas in industrial and there are plenty of other things that have reached higher that are not just on the ai trend. >> i understand that. but not to carry that s&p where it got to last year. and that carried the nasdaq. to all respect the home builders, i know they have a great year. >> and that's fair, scott, but i would also say that it is the area that's down the most with 70%. meta down over 50. so those stocks, they also got the cheapest and they are the most deeply discounted going in to a bad economic environment for those companies, and ai

definitely played a role. and i'm not going to push back that ai to play a big role in that for the recovery, scott. >> the question now though, greg, is now what? what areas of the market do you want to be in? and i know you don't want to be out of the market. you like mega cap techs or you did and i don't know if you did, but you did. >> and let me rephrase that. and what i like is buying things that are tethered to the secular tail ends of the clouds and ai. i don't necessarily like it fundamentally. i don't necessarily like it on a multiple basis. and the fact is that those companies, they are going to grow earnings 20% this year. everything else, i project the low single digits at best. so in that environment where i don't think that we are driven, i want to buy the superior earnings growth. and the statement that i agree with and i know that you push back on this saying that they are down for a reason. and what we saw over the last few weeks is that ai, they are

starting to impact the other first movers like the sales now. so i don't think that we need to own it when it comes to being investment in whatever that will be. >> and i was going to ask that question as we would look ahead to tomorrow whether that service, and whether it is something i would go down the list of 50 names that would have gotten the benefit of this ai mania trade in some respects, ridden the coat tails and that they have gone up the tremendous amount since the rally really started and went into overdrive in the beginning of november. you say you don't have to own the mag seven. don't you think they are more in risks if they don't deliver tomorrow? >> to some extent. and here is what will disconnect them from those results that

they are actually showing it themselves. when you look at those companies that we just talked about and their results that they doubled. they were having quadruple the number of pilots that they were having in 2022. and they would up their guidance on key metrics. and that is the advantage and it will be short lived. but as long as they will have the advantage and we are going to see that in their numbers, that's something they could buy. >> john, what is riding on tomorrow after the time with nvidia? >> we will get a 6% or 7% move one way or another. there is a lot riding on that and there is no question, but i would argue if you look at the one year earnings growth, it is up 400%. that is substantial. and they should correlate over time where it will be tougher for them to keep that growth rate up. even though the greg company and

a big piece of that. i think that they are more interesting places to be looking than just chasing what has been working over the last, you know, six months to a year. >> the other thing, i guess the debate that we were having is about the course of interest rates when and how aggressive they might be. how reliant do you think they are on the prospect of getting several? not just one, but several rate cuts this year? >> i think that the expectation is absolutely something that we'll get several. and again, i think that 100 basis points will be what the bond yield is implying. i think the timing of that is a little bit less important. it's important for the short-term traders that we heard this view that really it is not about the exact date that it will be the intersection they are going. again, i would say that for a while of inflation when you would net that out. they are down to 1.6%. it is very lagged, you know, seeing the family housing on the

biggest piece of that and it is the secondary. when you net that out, which is appropriate, that you'll get to a lower level. so the direction is absolutely down. i would be very surprised to see that rate increase and that will seem out of the cards and i respect the different points of view no doubt. i think that we should be expecting several cuts as we would move into that back half of the year. >> let me ask you about the targets for the stocks as we would get that today. the comments that i brought up earlier, where you said to get everything cheaper that you are also looking to go back and retest the breakthrough of those prior october lows, right? >> for sure. >> and now here we are. what are you looking for in terms of the stock market based on your view? and now we have lacked those lows and we started another leg higher in this bull market. >> right. >> and on november s let's just

call it that and so now what? >> and i'm going to evaluate what the price arguments are and that because it is becoming a bigger part of the industry that they will grow 20%. many of these companies and so while it might not be 3,800, i see a correction because i do believe that we will get less than three cuts this year and that we could all agree that they are not expecting that. i do believe the next move is a hike. so they will be meaningful and i do expect the correction on the order of 20%. >> okay. we will keep having these conversations. >> we should. thank you very much. and thank you as well. we'll talk to you soon. let's send it to pip pip for a look at the close, pippa? >> reporter: hey scott. and after major accusations with capital one set to buy discover

financial services in a $35.3 billion all-stock deal. the news first reported by the wall street journal, sees the merging of two of the largest credit card issuers in the u.s. and what expands their card offerings and their deposit base. and another financial institution on the move is barclays up over 10% today. the bank announced a major operational restructuring including cost cutting efforts. they are reacting to the bank's $1 billion pound share buyback program. >> thank you. let's get to julia who has the latest there. >> we have obtained a copy of the lawsuit that fubu tv filed against the three companies that are partnering on the streaming sports venture. suing the walt disney company and espn, hulu, fox, and their

discovery and alleging these companies would not let fubo carry the sportsbooks that they will be included in the new service and this is filed today where they are looking to block the joint venture from launching and asking the jury trial and the punitive damages. and we don't have a name for this yet and they do not have a launch date or a price tag. but fubo tv is alleging that these companies, these paid yay giants are treating them unfairly. we'll continue to dig into this and get back to you for more. >> all right, getting interesting to say the least and thank you. we are just getting started here. goldman stacks is up and breaking down what they would see the most opportunities within this market. livein the new york stock exchange. you'reating osg lln wchclinbe o

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welcome back. stocks are lowered to start the week. nasdaq down 1% in the last hour of trade. nvidia leading the deck decline ahead of earnings tomorrow. my next guest says the chip maker isas important as any stock on the planet right now. and he is tony, the head of hedge fund coverage. welcome back. >> thank you, scott. >> that's what i hear that it all comes down to what nvidia does tomorrow, is that right? >> in a local context, it will carry a ton of weight. it's the number three stock in the index and the appreciation. so when the market bottomed in october of 2022, a $288 billion market cap. with the local low in october of 2023, a trillion and it is the flag bearer for the most exciting new theme in the marketplace, so i think that it will be a very short-term context that it will carry a lot

of weight, yes. >> and so for argument sake and for the sake of the conversation what happens if it doesn't live up to immense expectations tomorrow? what does it mean for the market? >> that it will take some shine off of it and it is its own story and probably some of the mega cuts in general and that it is the move that it will be that market space and a big company that is incredible. now it is not the only story in the marketplace. so i looked at this we came on if you look at the magnificent seven and those earnings. if you are on the estimates. the sales growth for the magnificent seven is up 15% for the year over year and 3%. so the margin growth, 582 basis points. the 493 and contracted those basis points. so five times the revenue growth. more than five folds the expansion.

so i think that there is a broader story on the cross tech, but no doubt that it will be against them on nvidia. >> let's take the other side of it if they will wow us yet again. that it just justifies that part for the reason that you just stated for why they buy this stock and even what some will say are the evaluations that you just made the case that they elevated it and that they might be justified. >> i will give you one more data points and that they generated the cash flow and returning a lot of that to shareholders. and there is another part of the story that won't get enough attention that they will reinvest in the form of the level that no one else could touch. so the magnificent seven will reinvest 60% of their operating cash flow. the rest of it is 493 and it is like a third of that when they

need to compete with them. >> how do you answer questions then? and i said that your client coverage, you would talk to the biggest and the best investors on the planet. when they say well tony, don't you think that it is going to happen? should we rotate to these other unloved areas of the market? how do you answer the question? >> and so should i consider rotating the other parts of the market that will carry a lot of market cap? and like healthcare? and like consumer discretionary and maybe like that? i don't have a problem with that and each one of those big sectors. >> and with that side of it too. >> because i look at them through that anatomy, which is where is there enough market cap? and it is healthcare and discretionary and financials. i could make a case for each one of those and it is less interesting to say that i will cash in on the chips and i'm going to pay the tax man, and then i'll go over by the russell

2000, where they will be there this year and a tough thing for me. >> and what they are up two weeks in a row. you just don't buy that hype that it is sustainable? >> well, if goldman sachs is correct because we have a house and a fairly positive view on the small caps. if we're right, then the growth this year is called 2.8%. if we are right, it is five times and is that a favorable climate for small cap? it is. so i think point to point, it will outperform the best companies on the planet? i don't. >> and i just had a debate with a bear who is emboldened, i guess you could say and that there is no way they are cutting five times. how reliant is this market on those cuts? >> and well s&p is 200 handles higher today than it was in the middle of january. when the rate market basically had seven cuts in that price. today they have four cuts in the price. and so the point is that we worked off a little bit of what was an overshot in terms of

expectations. again, the house view is five. the feds wrote down three in december and they have mostly stuck to three in december and a question of if you take more out of the strip, why has that happened? did it happen because they ran stronger than expected and they delayed a little bit? that stock market is fine. but if the narrative is further tented as it was last week, then that might be tougher for them. and that is not our view. the view is that they will cut in may because they will be two and a half percent by that meeting. >> because they can and not because they have to and what is more important at this point? getting cuts or the economy remaining as strong as it is now? that are raise the use too with the sticky inflation and perhaps they are waiting too long. >> sure. >> to cut for the first time. >> well, what we saw last year, the lesson of 2023 is the economy in essence to supersede every factor. i think that they busted away another basis point last year and the market did just fine. if i had to pick one thing to bet on, i would say slightly

stronger and still broadly the growth over rate cuts. and if they remain higher for longer, they just don't have anymore hikes in the cards? is that okay? and let's say that they will stay at that for a while. is that okay? >> well, as we sit here today at 20.5 times with the relatively full positioning, relative high sentiment, i don't think that risk reward is overalarming. the big dynamics are favorable. but in the short term if they will ask that question that they will need to do a little bit of work around these levels. >> i appreciate it as always. thanks for being here. coming up, the precautions. new york life investments, waving the morning flag on the market. she has been for months. now she has four and she says that they could kick start the greater correction. she'll explain after the break.

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. welcome back. stocks are falling pulling them further from the record close that it set last week. and our next guest will see four head winds that could break the rally and lead to a bigger downturn. joining me here to explain is your life investment portfolio side and thanks for having me. >> okay, now, i had one big debate with them in this market

that you have been cautious too and you're not ready to change your tune either. why? >> and importantly i'm very cautious on the economy this year. i'm less cautious that it will lead on the market that i expect this market is going to continue to trudge further along until we hit a couple of things that could break it to the downside. >> why do i believe they will do that? you say it is looking less likely. how so? >> and i expect that a soft landing would land in this other and a moment in time that we could leverage on the path to something else. and because they have been restrictive for long enough and that i do expect that the restriction is taking a toll on the economy and that we're seeing it in the data. and that is what i saw last week and the inflationary environment that will make it hard to cut rates as quickly as they were. and that i see a consumer and a

retail environment that will be early stages and just starting to see some softness and it is an environment that i expect to see. >> there was a lot of calls now. and that it is the very top of the show and kind of bulls and bearers, seemingly emboldened with each of their cases and the bears, they would say look, cpe, cp be i, inflation will be through what you think it is going to be and that you would have people come out to suggest that either current or former beneficials will say you're overreading it and reacting to that number in which is anomaly any way and it is january and it is funky. >> both of those views are right by the way. and that is a classic environment. what's happening in the market is that investors, they are getting by their own expectations. this is an environment if we take a year's approach that inflation has been moving lower. economic growth, they have been moving lower especially lately. and when i look at the way the

economic cycle tends to evolve, that it is an environment where i do expect the longer rates where they are and that the credit environment for households and businesses, they continue to be challenging. now we're not it there yet. there is nothing breaking. that is why i expect them to stay fully invested, but we have to start being a little more attuned to how we're getting that and to try to see it through. >> and what do we say that i know that they made mistakes in how late they were to the hiking game and now they don't want to defeat from the jaws of victory. so they are going to be more cognizance of the sights. they don't want a credit event to happen to be reactive. they are going to be proactive in cutting rates and the schedule of what we thought. but they are still going to do it because they know and they are confident in the fact that inflation is going back to target. does that make sense? >> it makes sense. i e also think it is the right call. >> and why be negative? >> if anything, the feds will still be too late.

this is an environment where inflation, sticky inflation has made it really hard for the fed to be as proactive as would navigate the soft landing without juicing inflation further. that's why at the end of the day, soft landings are really just a goldilocks moment in time on its way to something else. it is very, very difficult to sustain growth and also avoid wages continuing to stay sticky, inflation continuing to stay sticky for very long. >> okay. so the actionable investment advice based on your idea of where this market goes is what? >> i expect that the fed is still viable to start cutting. my best guess is june. that's an environment where i think that it will make sense to be moving into short duration credit. i talked about that quite a bit. >> yep. >> it is also an environment where quality continues to be important. so while evaluations in tech are high, we should look at some of the long-term themes like infrastructure, like ai, and

start to broaden that exposure in order to diversify it a bit from the things we know it's working. >> you say broadening exposure and for more growth plays, what do you mean? >> yes, where the application layer is and also digital infrastructure. some of the areas that we think they might be resilient if we expect the equity markets to experience the volatility. >> this is what i find is troubling to make ends meet and it is a cautious few overall on the market even in some respects. but acknowledging it, the growth trade could work and it still works because of the secular trends of ai. and if they continue to go up, then i find it hard to believe that a market is going to have a problem. >> profitability is really what it is about as opposed to growth or necessarily. that's what we have. >> they have that though,

right? >> exactly. and what that broader idea is about is acknowledging that it is where we are seeing all the growth and that that is working and it is not that play and there is a lot of talk about it already and if you see that expectation, they might see the sales growth and that it is the type of risk that they need to be mindful of. >> and heading into nvidia tomorrow in overtime. thank you so much. up next, tracking the biggest mover as we head into the close. pip pip is standing by with that. pippa? >> hey scott, another energy deal could be in the works sending one stock higher. we've got the details coming up next.

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. we are les than 15 from the closing bell. >> caterpillar shares in the red after they downgraded the industrial giant from performing in line. the firm did raise its price target, but said the stock 26% jump in the last three months is a modest upside ahead. and western midstream halted just now after earlier jumping.

occidental looks to sell the pipeline operator according to reuters. it's worth close to $20 billion and people familiar with the matter. now neither company has responded to request for comment. scott? >> all right, pippa, thank you. still ahead, palo alto network surging nearly 40% over the past three months. that leads up to the company's result in overtime tonight. we'll break down what to watch for when those numbers hit the tape. closing bell is coming right back.

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. now we are watching two earnings releases out in overtime today, monitoring palo alto and what to expect from the toll brothers. breaking down the crucial final moments of the trading day as we would head into the close. i'll go to you first because their shares are up 40% and there is a lot of hype about this company. >> and so when they report after the bell, we need to see how the software company has faired amid a recent uptick in cyber attacks. looking for $1.30 adjusted about $2 billion. palo alto has a strong track record of seeing shares rally. in fact they found on average, the estimates are 93% of the times and they gained nearly 2% as a result. and that stock is up 24% so far

in 2021 and up 116% in the past 12 months rather. they will speak with jim cramer tonight on mad money. back to you. >> and we look forward to more with you as well and what can we expect? >> expected to report a q1 year over year increase thanks to the strong demand. 2023 was actually one of the worst years this century for sales of existing homes due to types of rising mortgage rates and they have benefited from that with their ability to buy down those mortgage rates, and that is why the stock has done very well. the toll is the luxury builder with the average selling price just over $1 million. they dropped in q4, giving guidance slightly above expectations. all eyes will be on the commentary about the affects of now rising mortgage rates that had dropped in november and december and after peaking in october. so that may boost the earnings for this quarter. but rates are back up again and they will want to see what

affect that is happening right now. >> all right, thank you very much for that. we'll see you in overtime when those earnings hit. sitting right next to me. all right, so big test first. palo alto. they have to pass that one as that stock has gone up a lot and it is not all about nvidia. >> it's the hot trend right now. cybersecurity for tech space right now for dramatic technology. i watched the etf business and the in flows, mostly cyber and you get some of these cybersecurities that they seem to believe that and semi condition doctors. but it's really tech. nvidia is getting killed here selling it ahead of everything. microsoft is down and apple is weaker and the sales force, some unusual down day. that's been a monster recently. so they are just selling ahead of nvidia, which is the big tech bell weather.

>> and it is not all about nvidia, but in fact, it really is and a lot of people have been sitting here that when nvidia delivers tomorrow, it is going to be a seminal moment at least in the near term on where this market goes. >> what is remarkable about nvidia, it is not crazy overpriced. if you look at the future earnings, it is about 31 times in those numbers and that is remarkable for a stock up as you noted earlier today over 200% in the last year. >> dialing down. >> and that is because of the earnings expectations. >> the earnings are so high. the earnings, this is a stock that has had crazy price action where the earnings, they have matched the price action. and i anticipate that's probably going to continue tomorrow. and i would have a hard time imagining that there will be some immense disappointment from that company. >> and it is 2000 again and

obviously rates going up and it is not great for the russell small caps up two straight weeks. >> that's right. diana mentioned earlier rates are going up. and the biggest problem is dealing with this pop up that we have seen and that is a problem. we see the estimates. and now people have three at this point and they are holding up well, which is bad news and we see that impact here and the question is how much do we need to lower the expeggations? >> and wal-mart isa standout today and it has been from that outset. being negative by a few percentage points that it might close in the green today. that is not insignificant price action to keep an eye on.

>> and the revenue growth not as strong as expected and i would say it was flat today and that i don't think that there is anything there to be out there. >> the bell is ringing. we will go out red. we have a look to look forward to in overtime. morgan brennan, take it from here. . well stocks falling today as we start the holiday shortened week in the red extending friday's losses. big tech, the biggest culprit. that's the score card on wall street, but the action is just getting started. welcome to closing bell overtime, i'm morgan brennan with jon fortt. coming up, we've got a big hour of earnings ahead. palo alto, caesars, diamondback energy, toll brothers, and more are all gearing up to report. we'll bring you those numbers in an instant analysis. we'll hear from the global foundries following news that his company is going