$6 million with the illicit trades based on a run for the possible acquisition of his wife's company. >> i don't even know there is to say about that. >> legal trouble is one thing, legal trouble in the family is different. on that note, folks, thank you very much for watching power lunch. >> closing bell starts right now. ♪ ♪ ♪ all, right courtney, thank you so much. welcome to closing bell. i'm scott liner, here at the u.s. stock exchange. the make-or-break begins with the abc's of alphabets, the a i misstep. shares getting smacked around today as the latest answer to chatgpt faces even more criticism. all of that is only adding to questions about their ability to compete with microsoft and others at the forefront of this technological transformation. you see what the stock is doing their. is hanging around the lows of the day down, 4%. we are going to ask our experts what is really at stake for that stock in just a few moments. in the meantime, let's take a look at the scorecard with 60

minutes to go in regulation. a mixed day for equities with really only the russell getting much going today. even that, not so much. up ten points, half of 1%. tao, the s&p is modestly in the red. there is the nasdaq hanging out at 16,000. nvidia, what else is new? it's been higher for much of the day and is still now another $3. it's the big slide and alphabet that we have attention over this final stretch. this leads us to the top of the type, just how much trouble the generative effort is in as they lost ground to microsoft and others. big technologies. alex kantrowitz is with us on saturday, as well as covering the company. i will start with you. how did alphabet get into this latest maths in the first place? what somewhere call embarrassing now. >> essentially google was trying to be politically sensitive. remember that it's a eye strategy is not to be first, but to do it right. that entire slogan, don't be evil. try to be politically sensitive, but instead, the opposite has

happened. google has found themselves at the center of a renewed culture war. the image generator for example, criticized for creating diverse images of the founding fathers and not sierra german soldiers. a different kind of diversity problem that google admits they have missed the mark. the chatbot has been found to have similar problems in a few hope high-profile examples. gemini refused to condemn pedophiles, equating elon musk with hitler. with chatgpt, suggesting more straightforward sentences. i tried to replicate some of the searches, and i could not for the most part today. in some cases, geminis simply said that theycould not assist with the query, while chatgpt did give at least some kind of an answer. it just speaks to a broader issue, which you touched on on geminis role. whether they underscore a painful corporate reality for alphabet and ceo. that question that you started your show asking. is it losing ground here, or is this a blip?

>> the shares are obviously reacting. let's bring in alex kantrowitz, big technology founder. he's with me on set. how big of a deal is this? >> it is a big deal. it's not just about the making a mistake, but really suggests that there is more organizational in confidence within google. they're trying to portray this as google dot too woke. even google wouldn't want nazi portrayed as people of color. where is the testing here? where is the organizational competency to -- even if you have those core values, you can't. that to me is the red flag. who is running the ship at google and allowing the stuff out of the door? it's not just a minor battle. they are falling behind. >> the moat that they have, everybody knows what they're talking about, search, the behemoth. how much risk is this, if at all, when you hear that openai is said to be developing in zone? >> not as much as i think that a lot of people imagine, at least in the short and midterm. when you look at chatgpt,

being, what perplexity has done in recent times. they've built impressive products. the leading surge has not really shrunk at all. i think that right now, you are looking at two different products. perplexity, being, chatgpt. these are curiosity agents. anything your curious about, you can type in, and also use it for new novel applications. and also web navigation. you're not going to use that for web navigation, you're going to use google for it. i don't think that google searches immediately and danger of being replaced or really hit too hard. over the long term, this could be a way using search, navigating the web, that's where you run into issues. >> what are you hearing about the value of that issue? >> i hear it very differently. i have some stats to back it up. what do you determine as the immediate? like alex, i thought this was one of the long term problems that google had time to figure out. however, the staff in gardner kind of blew me away. they predict that by 2026,

search engine volume will drop by 25%. that's less than two years away. that is a huge amount. if you look at 25%, that's also search engine volume. google is the leader here. it is the dominant player. that is really just a huge step. in the valley, there are tons of people who use perplexity,, being chatgpt, it's a much more part of the conversation then gemini is. you have to wonder if wall street feels like they have more time, certainly here in the valley, it feels like there is more than immediacy. >> interesting, alex. do you feel like the ceo is at risk here? >> it is a tough question. google just hit all ten highs in january. if you're the ceo, what is your job? it's making sure that the core business, at least for wall street is producing. it is. google had a 13% revenue increase over the last quarter, and dealing with a base of $70 million. getting to 86 billion and a quarter.

there are questions about the ceos job. it really does not happen too often. i will say that i'm hearing more chatter about his job than i ever have before. this perception, the narrative could turned into reality. the core of this is doing well. what are you giving up? google builds and writes this transformer paper that basically kicks off this generative a.i. wave. they did not do much with it internally. nvidia is reading that, not only the chips, but the software enabling the revolution. google has not done that. yes, the core of this is doing well. there have been some opportunities left in the table. it really will come up to the board about whether that is okay or not. >> i will ask you a question, because institutional ownership as we know has weakened a little bit. the recent earnings slide was discomforting for many in the stock. brad gerson are, by the way, has tweeted out today. he sold it because he thought the google alphabet had ceded too much ground and blew it as it relates to microsoft. he tweeted today the cultural mass of google, which is now a

product and business mess isn't surprising. sundar pichai could be a world class human being, but he reappears 100% incapable of leading the zach eke elon reset that they desperately need. truth, do you want to react to that? >> let me play devils advocate a little bit here. we are not that far from all- time highs for google. google had the insight to acquire deepmind back in 2014, seen as the leading a.i. research outlet. they have been a.i. first since 2016. that's when you really see that phrase. they really pioneer the space. there's one piece of this that is a little bit wonky. the entire open source versus closed source debate. certainly the chatgpt, the geminis, the things of the world that is closer. i speak to people here on a regular basis that open source models are going to be the dominant models of the future. what do we get from google in the past recent weeks? they are now opening up, they are now open source models.

this race is still early, which i know we hear all the time. it is true, and it's not unthinkable the google could come back. they have the distribution and data for the most important ingredients in the a.i. race. >> the thing that you hit on two, alex, which is incredibly important, this narrative. and this reality on accident. this is what's happening, despite where the stock might be, they look at nvidia getting the hype. they look at microsoft, the pivotal deal with openai. the narrative is that they are behind and they continue to lose. how are they going to change that? >> i think the question, the discussion you're having with the public, what discussion are you having with the board? the board, you're talking about look, if we're going to make a reinvention, how can we do it? let's say that apple decided they wanted to go into phones in the early flip phone days. that is the early moment that will pivot as opposed to when

they did the iphone. they ended up looking silly. it was because they waited and decided to leave that revolution from desktop computing to mobile computing that they were able to capitalize. does google want to give away google search today in favor of this a.i. when it might be too arly? we might still be in the flip phone era. that is the conversation internally. for all of us, the best way to change this conversation is to be confident. put out products that you are not embarrassed of. it is really a low bar to clear. these innovations are brilliant, but the biggest talking that google can do right now is on the product standpoint. the reason we are having this question, this conversation is because they have not done that to date. >> the other thing is to consider, apple, what do they have up their sleeve? siri, what they might do at w. d. c at the early part of the summer. if they're going to have a similar conversation about apple and a -- alphabet, as we will loop with microsoft and alphabet. >> for apple, there is a similar incumbency question. how much of the operating

system on the phone do you actually want to compromise in order to have these a.i. tools? that is going to be the big question they are asking. the operating system is their edge. that being said, how many billions of dollars are they paying to google per year? they are paying them how many billions of dollars a year to be the default search? can apple put a generative a.i. product where they think they can do better and create a better user experience? if this is the future, it does not matter how much money you are bringing in on search. if you are going to leave that future to another operating system, as we have seen with the rabbit, that's another a.i. tool that people are going to use to navigate mobile. if you think that you're going to lose that leadership, maybe you do make a dramatic change. we will see if apple does it. >> d, i will give you the last word. you have such a unique seed out there. we think about anthropic, amazon, some of these other things as well. that narrative is very hard to turn around. >> i am glad you asked about apple because few people here in the bay area count out apple. alex, it's edge is's operating

system. i could argue that edge is install based. more than two billion devices. it goes into the entire idea of edge computing, whether it could leverage all of those devices and users to run generative a.i. on the actual phone. when i, here what we talk about on the deep dive for tech check. it could be the dark horse here. of course, we will have to see what they announced this year. expectations are kind of building ahead of those major developers conferences. >> you guys have got us off to a great start, a very big stock story today. we appreciate it very much. d, thank you, jerry joe bosa, alex. thank you for coming here. let's bring in dan greenhaus of asset management. we turn our attention to the broader markets. it is good to have you back with us today. it is interesting, on the entire a ideal, jamie dimon was in the venue earlier today. he declared a i not hype, it is real. when we have the internet bubble the first time around, eyeballs was the hype.

that's the reason why a lot of these stocks have run a lot. alphabet included. notwithstanding today. >> that is exactly right. frankly, i don't think of anybody doubts it is real. i think that the issue a lot of investors have to work through right now, and it's a conversation that you see here in this conference and more generally. whether this is 1995 or 1996, or whether this is 1999 and 2000. i put myself along with dan ives firmly in the earlier camp, i think we're at the earlier stages of this build out . >> i thought that the interesting interview with dimon was interesting. he's got headlines for being more dour than most over the last many months. you could say that a number of examples that would back that up, i don't necessarily think that we got that today. he does not perhaps agree with the 70 to 80% that he thinks the market is going to declare we are going to have a soft landing, maybe he is at half that. he did have a different tone this time around. what was your

take away? >> i think that is probably right. frankly, this is a high yield and distressed conference. it is not the most optimistic of investors. the most optimistic group of investors. there is decidedly a tone down here of what people are jokingly calling hashtag soft landing. i think that this narrative is taking hold, and again for the meantime, for the immediate, it looks like it is probably the case. i think you see that on the investors every year as well as the panels that areoing on. >> i think he admitted as much when he was asked about commercial real estate and these impending disasters, pending doom that people are predicting. it is not as though he suggested that we are completely -- if the economy remains where it is now, we are probably not going to have many problems relating to commercial real estate. if you have a recession, the economy is more dramatic. i'm not sure that's breaking

new ground. >> no, that is probably right. i keep saying a lot of the conversations we are having, but i'm here at the conference, so i will refer to them again. i do you think that there is a sense here among the people that i've spoken with that it is going to be more losses to taking commercial real estate. everybody agrees. the question is, which banks are going to go under? which additional banks are jpmorgan going to buy? there is also this tone of faith, so to speak, that when something happens, much as we saw in march of the previous year with silicon valley, the fed will ultimately write to the rescue and pay for things over. whatever losses are to be taken will be less than people perhaps think. again, because the fed has shown itself over the last 15 years willing to do just about everything to avoid what we will call a systemic issue. >> as it relates to the rally, you have people saying that, well, bull market, this rally isn't getting respect. it is interesting to note that bank of america's fund manager survey would certainly suggest that it is getting a lot of. it might not be getting broad

respect in some corners, but more people are falling in love with the idea that this thing can actually last. it can last longer than in 2024. we are showing it on the screen now, the wealth and investment management survey. 70% have seen more green shoots than red flags, 70% says the bull market goes beyond this year. >> and it just gets back to the earlier conversation about 95 versus 2000. i do think there is a lot of discussion, i put some of this on my twitter feed, i had these conversations with the public and in private. i think that the comparisons to the early 90s, sorry, the mid to early 90s is somewhat incorrect. i know a number of people have noted that cisco and intel, some micro systems, et cetera, those stocks of the day we're trading at 70, 80, 150 times earnings. we are nowhere near any valuation like that. again, nvidia, which is the poster child for the current rally is trading a give or take 30 times forward earnings. not that 30 times is cheap by any means, but when you look at what they just did over the

last quarter, growing that income, revenue, eps, et cetera by not tens of basis points. but hundreds of basis points by multiple hundreds of a percent year over year. i think that there are a lot of people that would argue that the stocks are still cheap if you believe forward projections. again, getting back to the 90s, those forward projections were true and 97, 98, 99. it really was not until later, 2000, 2001 with those projections proving to be inaccurate. again, for investors today, the question you have to ask yourself is whether we are more in that environment for the early build out. 95 or 97. whether we have already reached a peak bubble on 99 and 2000. >> maybe it's not so cut and dry. maybe some stocks that have gotten into the tide that has been lifted by the big boats of nvidia et cetera have a bubble quality to them. i do think that it's a stretch to make a broad statement and say that the a.i. trade is a bubble. when you look at -- away from

those stocks, are you a believer in the broadening? what would you suggest is the best proxy for that? i'm not so sure that simply saying anymore, well, the market is not broadening, just look at the russell. or it is broadening because of the russell. maybe that's not the best litmus test for how we should view this when sectors like industrial has looked really good, among other areas of this market. >> first of all, the fascination with the russell as evidence for a market broadening, i don't understand it. it's not a great index. 30% of the index makes no money. those talks in many cases are miniscule and irrelevant in terms of the broader market lame step. there are good companies in there for sure, but i don't think that the index is necessary for evidence of a broadening. you could just look at the s&p 500 itself, you can look on industries throughout the market. you mentioned industrials, something that i've been talking about on the air for the better part of the year. the hotels, travel stocks, even

airlines don't look terrible. but the rest of the numbers look great. a lot of those themes are doing really well. i do get the d nvidia and meta's and google's of the world are doing a lot of the heavy lifting for the market because of their weight. the focus on them ignores the fact that any other part of the market is doing very well, both on the percentage basis, but they're not having the weight of the index because they are obviously not as large as india nvidia. it doesn't mean they are doing well. >> lastly before i let you run, pce on thursday. are you in tune on that as most people are? i wonder if a little bit of the cat is out of the bag after we got cpi and ppi telling us that this is might a little hotter than we want. we do understand the reason why, and do you think it is a trend? >> yes. for people that don't know, use some components of the cpi in some other indicators to process -- which usually comes out later. i think that the argument now is that you have some

seasonality issues in january and february that are probably going to make inflation look hotter than perhaps it otherwise might have been. payback for some weaker numbers late last year, and then find a spring and summer, the trend will reinserted self, which is a return to normalization. it is an important number to focus on, but also important to number that the trend is what matters, not any other individual data point. for investors, the overriding trend here is for inflation to keep moving down. the issue is, can you get to 2% quote unquote in time for the fed? >> dan greenhaus, enjoy miami beach. we will see you here again soon. thank you. joining us down from florida, we will send it over to christian parts and about -- for some moving into the close. kristina? >> thank you, scott. micron about 5% today after management said that they have begun production of its high bend with memory three each ships. those are really just use for heavy duty i systems. these will also be incorporated in the uncoupling -- h 200

graphics processing units. they should draw roughly 25% market share in this high bandwidth memory market by the end of this year. keep in mind that it would still remain the dominant supplier. samsung is also expected to aggressively ramp up as well. switching gears, moderna shares are moving in the opposite direction after shares of the vaccine maker were downgraded to reduced by hbcu analysts. the rsv vaccine might not be as effective as it's competition shares are down almost 3%. scott? >> kristina, thank you. we are just getting started here. financial is up to a strong start in 2024. the xlf, nearly 7% this year, matching the s&p. that's bank analyst mike mayo standing by to break down the names that he thinks have the most room to run. wee ve'rli at the new york stock exchange. you're watching closing bell on cnbc. ♪ ♪ ♪ and ask for something for memory,

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welcome back to financials. turning negative today after nearly two years. stocks like city, jp morgan, goldman sachs outperforming microsoft, apple, and alphabet over the last three months. joining us now, wells fargo top analyst, mike mayo. why are these things doing well? >> why did they do so poorly before? the banks are the most resilient that they have been in decades. the core earnings power is 20% higher versus 2019, even when the stocks went down over the last several years. >> why are they getting rewarded all of a sudden? we said over the last three months, reforming the blue chip names seemingly 3000 times a day. >> there are three issues for banks. the three r's. that would be right, recession, and regulation. each one of those is less bad. when it comes to interest rates, you cannot unsee the december

fed pivot. it seems a little bit less likely than before. regulation seems like it will be dialed back a little bit. >> you posed the question rhetorically at the top, suggesting well, why were they down so much before? as if they did not deserve to be. but then you said were given where interest rates were, that was a substantial headwind with worries about what the ramifications of all of that are going to be for the economy. maybe we now have a roadmap to lower rates, so the stocks are working. it seems pretty cut and dry. >> i think to some degree. it is the third year in a row where the industry should have lower earnings. you're looking at earnings growth for the banks to be down 20% over three years for the end of this year. after that, we see earnings up by one third in 2025 and 2026. you will see a hockey stick type projection of earnings. starting later this year, i think that the stock market is not going to wait. >> so why do you have such different views? let's say of jpmorgan versus morgan stanley? jp morgan is part of the list of your names that you follow where you have

over weight ratings and lofty price targets to go with? that is equal weight. what is the difference between the way you view both of those stocks? >> both of them have performed exceptionally well. morgan stanley is simply pricing at a lot more growth at a time of decelerating in flows of with the wealth management business, and frankly, flat to slightly lower market share in their institutional securities business. on the other hand, jp morgan is a clear market short -- gain or over the last one, three, and five years. i would say market share and stock valuation differentiates them. don't leave off city group, which is my number one. my number one pick. jp morgan is my number two pick. that is a worst in class story becoming less bad. morgan stanley was a great story that is becoming less great. >> that makes me want to ask you about the leadership of these particular institutions. both the job the jane fraser

has done in reinventing, i'm not sure that's too strong of a word. nevertheless, she is done a lot of work that has gotten applause from investors. is that fair to say? james gorman leaving morgan stanley, you feel like this is a proven moment for him? is it any reason why you are a little bit iffy on the name? >> ted pick has been part of the team for the last decade, really transforming morgan stanley into a higher return, more resilient firm. i don't think that he does have something to prove in the short term. i think over the next three years, it's tough comps for ted pick compared to the last three or 15 years. >> but there in the crown jewel business? right? but they were positioned in wealth management, which was this great business to begin. they saw it before, most isn't that a winner? why wouldn't still be? >> wealth management is a

battleground. it might have one bank that doesn't look to wealth management as a place to grow. morgan stanley's inflows, they go very hot. they went to the double digits. they've now been growing three to 4% inflows. they are pretax profit margin at 30%. now they're looking at 25%. it is going from really good, to great, to just not quite as great. >> so you watched the dimon interview today on cnbc? it was a great time to catch up with him. anytime you start talking to him about regulations, he sits up in his seat, voice picks up a little bit. he was asked about the impact of regulations on lending, the massive growth in private credit, commercial real estate, what possible issues are down the road? is it because of all of that? i want you to listen to what he said on the other side. jamie dimon on bank regulation. >> thanks for being pushed out of a whole bunch of different businesses. if that's what the regulars want, then do it.

it should be done with the fourth one, not accidentally. there are some negatives. i think that if you have a major recession, you're probably seeing some issues in that credit. is it systemic or not? i don't really think so. there might be ways where we could go in today. >> how do you view that? >> i think he used a word that really got jamie dimon boiling, and that word is regulation. when i look at jp morgan and the regulatory proposals, i am looking at a 60 billion dollar difference in the amount of capital that they have to hold. i estimate that equates to $2 of earnings per share. it's about 25 points out of stock price. so these proposals don't go through, that is a 25 point difference in stock price based on the earnings they can generate off the 60 billion of extra capital. he's battleground with regulators right now, along with others. he is fighting for the investors and fighting for that

extra $2 of earnings per share after 25 points in the stock price. >> so if they do go through, do you need to rethink your stock prices and your ratings? >> nope, i'm assuming that it goes through right now. i have the much higher capital targets. if it doesn't go through, then we have some dry powder for some higher earnings, as does consensus. >> i appreciate you coming into the post. but we will talk to you soon. that's mike may, wells fargo securities. the tale of two sectors, christopher -- flagging serious weaknesses in one well-known sector. but then also, telling us about another group he's betting on right now instead. he breaks down after the break. first, a quick message. cnbc celebrates black heritage. the opportunities that come from being a black man in the c suite are a norm us. so are the responsibilities. i understand that i'm an example for others to look to to inspire . i have a responsibility to

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and stay on top of the market. e*trade from morgan stanley welcome back. tech stocks leading the s&p 500 this year, but moves under the surface suggests a different sector could drive the next right leg of the rally. that's according to chris for ron, but technical analyst at

strategas. welcome back. we will get to that in a second, we will look at that story. broadly speaking, how do you feel about this rally? >> what is most important about this move, there is still a cyclical tone to the leadership. we see it with destruction airy over staples, nothing from utilities. i think that's an important point. if this market is going to change character, i would suggest to see the defenses group to step up, there's been no evidence of that here. also, none globally. look at the leadership from the autos, the leaders in europe, asia, japan. it's a very pro cyclical tone party system. >> maybe yields could be too elevated still getting money into the areas that you're talking about, correct? >> utilities, staples? >> i know what you're saying that it intuitively makes some sense. if you look at it historically, typically the defense will actually work in the last move of a right move higher. the market begins to anticipate -- >> they sniff it out. >> they sniff out, wait a second, the yields are too high. this is going to be a problem.

the big problem with yields is 4:50. if they're going to say, wait a second, i think it happens above 4:50. >> maybe that trade was ready to happen until powell said at the last news conference, it's not really going to happen, folks. now it is being pushed even further out. >> the best clues on the rates themselves are from the fabric of that leadership. if you look at the speculative stuff still working, if the market was worried about yield running away here, i don't think that small cap biotech with leading, or ipos would be leading. i think there is a tone the generally says, don't worry too much about bond yield running away from us. >> you are looking specifically, as i mentioned at the top, a couple of sectors. once where you see a balance out, when going, and maybe the other not so much. you have a couple of charge to back it up, talk to us. >> i think on the acting better than advertised, that's health care here. frankly, it's been a bad sector for three years. what i like over the last four or five months as we've been talking about this, it's finally broadening out. 80% health care, it's the best

we've seen in three years. i thought did importantly last week, you had more health care stocks making a 52 week high than at any point that we have seen since the heyday of 2020, 21. there is a broadening out that's really a bad thing. i think that just extended this move in the short term, but looking at the longer term performance, i think that this step in health care is very compelling here. >> looking at it now, a five and a half percent or so in the last month. it's not like it's a huge slouch, it's about three and two thirds percent. i do find it hard to believe that money is not going to continue to follow the money into technology. >> what is really unique about tech, almost the opposite of what we have seen in health care. as they have gone on for the new highs in the last few weeks, the percentage of stops -- it's actually been quietly contracting. it's not fatal, it's not a death sentence. it is maybe a little sign of exhaustion. when you look at the etf follows, there has been a surge of money into tech. on the other hand, there has been a dearth of money into

health care. i like this almost contrarian set up where would would be a logical place if money leaves, technological growth corner of the market to go to, i think the circle of health care in that sense. >> let's say the broadening doesn't happen in a more meaningful way, despite with the charts might be trying to position is to think now. what does that mean for the rally itself? do you grow less confident about it if that happens? >> i might push back a little bit. the market is fairly broad. 75% of the s&p itself is about a two day moving average. that is hardly narrow. >> that is fair. >> when you look at the s&p, that's always the benchmark that people use to see whether a move is broad or. -- it's making two and a half year highs here. those stocks might not be leading, they might not be doing better than microsoft, better than nvidia. but to say the move is narrow is a little bit misleading. >> that is fair. as we discussed at the outset in some respects, the idea that the russell is the place to look, maybe that is misleading

or a misnomer. how would you view small caps as their relevance and importance to the overall story? >> i think that they are important from a couple of perspectives. number, one we know with the biggest weights are. banks and biotech. one of those groups is really india right here. you look at the small cap biotech, striking out across the board. if bond yields were really going to run away, i don't think the small cap biotech would be behaving so persistently. we went back and looked at all of the groups that had the highest sensitivity to bond yields. small cap biotech comes up at the top of that list. if yields were going to run from us here, i do not think we would see that. when you look at industrials within small caps, this has been persistent leadership for two years. industrial has broadly been persistent leadership for two years. i recognize the largest financials in the russell is not as robust as they would like. but it's pretty good. >> is this story here too theoretically good to pay any mind to what is happening in other global markets?

how do you view that? >> absolutely. there is affirmation globally when you look at new highs in europe. japan, jacques, china perhaps waking up here after a very capitulate start to the year. when you look at the signals for capitulation, what we saw in china in late january early february reminded us of late 08 early 09 there. very capitulate of message there. then you have australia breaking out. again, this narrative of just five or seven text docs in the u.s., i think that that negates how much global affirmation there is. >> when you're telling me, is the house view at strategas, we are in the early stages of a broad global bull market? >> i think that we are in the middle stage of a very broad advanced. it certainly began in late 22, kind of on shaky terms. really, the game changed for us . when you started to see those breadth surges, the new high

expansions. that's really -- you could get a pullback or salvation at any moment. we know that. watch last week's low, 40 9:50. if you're a tactical player, i think that's a big level in the short term. very long term support, cohen 4700, 40 7:50. i would be just surprised if we saw anything worse than that on the pullback. >> really good stuff, interesting, thank you. >> chris verrone, strategas. kristina partsinevelos is back with that standing by. >> the u.s. government wants to block the biggest supermarket merger in history, in u.s. history. domino's, promising to get back to investors. i will explain all of that, next. ♪ ♪ ♪ this thing, it's making me get an ice bath again.

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almost exactly 15 from the bell. christine partsinevelos with the stocks. she's watching. >> the federal trade commission wants to block a 25 billion dollar merger between kroger and albertsons, arguing the largest supermarket chain merger would lead to higher prices, store closures, and job losses. federal regulators are ignoring the dominance of walmart, amazon, and costco. they said that the block would only strengthen them. switching gears, everyone wants a piece of the pie. domino's shares are up 6% right now after they increased the buyback program by the additional $1 million they

would raise the dividend by 25%. a stronger than accepted sales in the united states, a big reason was that it was delivering the rollout program using uber drivers. uber, being a one stop delivery platform for customers. >> kristina, thank you. kristina partsinevelos. up next, getting you set for zoom earnings in overtime. we'll have the rundown of key metrics to look out for, and what we will be looking for on that companies conference call. that's just ahead when closing bell comes right back. ♪ ♪ ♪ trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills 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

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we're down to closing bell: market zone, see nbc senior markets -- mike santoli here to break down the crucial moments of this trading day. -- kate rooney monitoring workday, pippa sevenths on how to what to expect from zoom. i'll begin with you mike, i want to zoom in on alphabet. i want to talk to the tale of two major caps, as it relates to the biggest or in the market. the best performing mega cap stocks over the last month's nvidia, the worst -- 10%, 30%, excuse me. there was performing makeup stock over the last month, alphabet, down 10%. the differences are front and center yet again today. >> they are. the first observation would be, and this goes back to even late last year, you want to see differentiation in this group. obviously is not great that tesla has fallen away and alphabet is lagging seriously,

it is trading like it's sort of value trap-y on some levels. on the other hand, you also have to go to the fact that earnings momentum is behind all the parabolic moves in things like nvidia and meta. those have been the things with setting the pace, and alphabet is conspicuous and not really participating there because there are questions about longer term earning momentum and cost discipline and all the elements in the story that are in their. whether it has broader implications in terms of hurting the position of the aggregate index and the market as a whole, it's not clear that it does just yet, it's massive, it's widely held, but it's sort of being eclipsed by the other better fundamental stories. it could change, you can't have too many of these really buckle, but for now it seems as if you have a market that probably should cool off on some level. semis are running until, they're up again a percent and a half as a group today, but i don't think that alphabet soils the overall picture.

>> you make great points. the max seven, which are saying, can become the mac five, you can't just can't necessarily become the max three or two. >> certainly in the absence of other parts of the market doing better. and we've seen that, right now you have berkshire howe hat away -- but t's bigger than a couple of the max, at this point. there is a way around it, but if you have too many of them it's going to be like oh, we get we have to nowhere to hide type of instinct kicking in and that might cause an actual selling which were really not seeing. kate rooney, workday, after the bell, what are we expecting here? >> hi, -- stop hidden all-time high -- fourth quarter results, and multiple results after the closing, analysts looking for adjusted earnings per share -- one point $9 million subscription revenue is really the key metric to watch for the workforce platform. guidance is most likely gonna come on the analysts call,

that's what we typically get with this. workday has a pretty solid track record of beating expectations, as revenues beating consensus, all the past 20 quarters where u.p.s. has been consensus in 18 of the last -- pretty positive view on workday heading into the -- double demand conservative guidance, they talk about muted investor sentiment. this doc is up 12% today, nearly 70% the past year, scott. >> not that hard far at all from 52 week high, we'll see what happens there. kit rooney, thank you very much. it must evens, to you on zoom. >> the stock is down 11% this year, and earlier this month zoom cut about 150 jobs, roughly 2% of its workforce. it said that the layoffs were not -- a.i. rules among other things. this comes as it continues to struggle in the post pandemic era. now out of the report, key things to watch include enterprise numbers, paid zoom phone users, as well as contact centers, since all three are key drivers of the company's

growth. online churn also important, etiology estimates that is at roughly 3% per month. the company has never missed on earnings, and only once on revenue since going public in 2019. shares down, scott, about half a percent. back to you. >> about, appreciate that very much. pippa stevens. i turn back to mike santoli. i wonder what you make of sentiment, and maybe the technicals turning a little bit. chris verrone -- bank of america survey that we sent today, 70% of those suggest this could last longer than 24. even wolf which has been more negative than most for while, this could go at least till spring. >> if you defer to the trend in what the trend is telling you, then you say this market is certainly innocent until proven otherwise, and the kind of go with that and say all pulled blacks are kind of random and probably not that myth damaging at this point. sentiment has gone certainly in positioning has gone from being an asset to the bull case, i

would say 56 months ago, to being neutral a best at this point. the goldman sachs positioning indicator got to the stretch level recently, that combines retail and other things. if you look at a charge of the cbo e, the stock of the options exchange, it's taken another leg vertical to the upside of this point. that's because of all the huge call option buying that's going to the bottom line. i would argue that it's a very well recognized bull market at this point, we've seen some capitulation by theirs but it does not by any stretch mean that everyone is all in, cash levels are rock-bottom, and people assume -- you still have strategist right now in aggregate are not calling for huge upsides in this market, because the market is raced ahead of most targets. >> the mystery broker doesn't seem they are all -- >> this is one of those things [inaudible] -- if you think all the historical patterns about

cycles are gonna -- still can't get comfortable just yet, it seems like >> mike santoli, we'll see see you tomorrow. [inaudible] ,, -- the rest of 2000 we have former finishing in the green today, that is a scorecard on wall street. the action is just getting started. welcome to closing bell, overtime, i'm morgan brennan with jon fortt. >> utilities -- energy, consumer discretionary, and tack the only sectors in the green. but maybe a trio of earnings after the bell, to get the rally back on track. we're gonna have the -- results from work day, zoom video, and unity software as soon as they are released. >> plus we will see here from