welcome to "closing bell", i am scott wapner live from cnbc local headquarters today. this make or break our begins with tumbling tech. whether this is the start of a bigger pullback for that sector. we are going to ask our experts over the final stretch. meantime, take a look at your scorecard. with 60 minutes in regulation, nasdaq is the center today. apple, that stock is around 170 for most of the session today. barely hanging on there.

it did dip below it for the first time since october. almost every other mega cap down today in the session. really, vimeo the only one threatening to finish positive today. we will watch this over the final stretch here, the stock did rarely go green, it was a while ago so we have to watch that. names like salesforce and tesla proud, pretty open today. target, not so great, but the market seems to have seen enough of those shares today. it takes us to our talk of the tape. fed chair powell speaking on capitol hill tomorrow morning, maybe some of today's weakness, trying to get ahead of that appearance, perhaps. let's ask anastasia, chief investment strategist with me here at our cnbc headquarters. good to see you. >> good to see you. >> dow is down 500, nasdaq, center of the action, down 2%, yields are falling and the data today was weak. >> the data was not great in some spots. ism, broadly speaking, was weaker than expectations.

if you look at the details, it was the employment subsector that was a little bit weaker, but prices actually declined, which was a good thing for fed chair powell, and then the other stuff picked up. >> that was the weakest in four years! >> yes, there was a weak spot there. the other number i am watching as the manufacturing and the services from the s&p global and that actually did come in ahead of consensus. i think net, if you look at the gdp that is tracking for this quarter, we are still looking at close to 3%, so i think there is a strong economy narrative that is intact. >> you told our producers that you think our stocks are in a sweet spot. why so? >> because of the economy is strong, that means the earnings momentum should be to the upside. i was looking this morning at the earnings forecast for 2024 and 2025, they are inching higher. so this is, of course, making sense, because economic data is inching higher, as well.

higher earnings, higher revenues, higher margins, that bodes well for stocks, even if the fed does not cut rates. on the flipside, if you do have some disappointment in data, then the pendulum swings and says, well, we have to cut interest rates. if we cut interest rates, that is good for evaluations. so, no matter which way growth breaks, i think there is support for the market, both ways. >> okay, so what i hear you saying is that nothing else matters, essentially, other than the fact that we know the fed's next move is a cut? this is just, don't fight the fed? you made the case that either they cut for the right reasons, or the wrong reasons, but they cut and that is good for stocks? >> i think if they cut for the reasons the economy is weakening, that is still good news. by the way, they still have a lot of room to cut. interest rates are 5.25%, inflation is at 8%, the core pc number, we are looking for 2.3%, so that is a lot of wiggle room. 700 basis points they have to work with, so that is good

news. if the fed doesn't cut, again i think what really supports the stock is the economy apparently can function with 5.5% interest rates, and stocks can still be supportive. >> we have had this broadening move in the market and we have highlighted that almost every day. the activity, whether it is in the sectors, or the large number of stocks and the large market cap stocks that continue to hit new highs, would suggest that, too. but, how troubling is what is happening in tech? are you concerned about that trade, at all? i'm looking at apple. we highlighted it at the top of the show because it is hanging onto 170 and has treated terribly, of late. >> it has. there are some macro elements to it. what i mean by that is, obviously, the nasdaq was massively overbought from a tech stand point. it has very much stretched to the upside, so it makes sense there is some consolidation there and everybody has been massively on tech. so, that makes sense as a broader tech development. what i don't think makes sense is apple and tesla being significant for what is likely to happen for the rest of the

tech sector. if i look at those two stocks in particular, there are idiosyncratic catalysts. there are legal -- weaker sales in china in the case of apple, and weaker shipments out of china with the case of tesla, that is particular to those two stocks. by the way, both hafted -- have dealt with weakness in china. that is a part of it, as well. if you look at the other stocks in the big tech sector, if you look at the artificial intelligence trade, to me, that is so alive and well. when i look at the cloud cap ex from some of these hyperscalers, that is forecasted to grow at 22% this year and 10% next year. when you look at the number of ai mentions across the rest of the 3000 companies, that is expected to reach record highs by the end of march. so, i think what the markets are starting to do is differentiate within big tech and that is a healthy development. >> i wonder -- there was a period of time when apple, alphabet, and tesla, if they faltered, this market would be in trouble because the market

caps were so large. in many respects, some of those were an indication of where risk sentiment was. now, you have had this broadening. you have had this cyclical tree to pick up the slack even as some of these tech stocks have fallen through. nvidia is sort of its own animal in itself, because it has been able to buck whatever sort of trend is going on in the other mag seven stocks and virtually going up every day. what if the cyclical falters? what if the industrial trade, if the financial trade, if the material straight -- those are three pillars of what has happened in this market over the last month -- what happens if they stop working? >> we know the answer to that, the stock market stops working, but i don't think the cyclical trade is on the verge of a reversal, i think it is on the verge of a breakout. i say that, scott, because you look at the manufacturing p and eyes again, maybe they were weak in united states, but you look at china, on the upside. india, uptake there. brazil, same story. globally, the manufacturing of pmi's is back to the same level as the 50s, a good level of

development. at some point last year, we are talking about the chase, in tech stocks. i think the chase is actually playing out in cyclical stocks. if you look at hedge funds and where they are allocating capital, they are going into the industrial for space. if you look at the industrials, it is record highs compared to the history we have going back to 2019. i think momentum is there from the economy side and momentum is starting to be there from the perspective allocations. i don't expect things to falter. >> there is risk around chair powell on the hill tomorrow, first of two days of testimony? >> there is always risk with an event like this, but the market has priced out a great deal of rate cuts, so i think that risk is mostly diminished. the economy is strong, and we are not in a rush to cut rates. but, i think the markets know that and the markets take solace in the fact that the economy is growing at 3%. even if he pushes it back to

june, i think we can be okay with that. >> senior economics reporter steve wiseman is here to help us at the table for what might happen tomorrow. how can we think about what chair powell might say? i have a lot of variables in my head as i ask you this. i have weaker data today, a stronger economy overall, it would appear, and then i have a roaring stock that would have to be influencing him, somewhat. he alluded it to it in his comments the other day. >> yeah. i think, actually, just a little bit of disagreement with anastasia there that there is some downside risk and it is hard for me to figure out what the upside risk is here. i think the game has been lost on a margin may cut that is priced out. i think june is what is in play, and the question is, does powell -- i think he will try to strike a more neutral tone, but i am not sure the market is going to. in that way, in part because i wonder the extent to which he

is potentially thinking about this idea that, you know, what has broken the economy that requires these rate cuts? i will be listening, scott, for how we talked about how much restraint is on the economy right now, and how if he is asked and answers the uestion about, well, if there is so much restraint on the economy, why is it performing so well? and it is not like he is going to go out of his way to say that, i just think about what the downside risks are around the rhetoric, the policy, i think they are more that way and it is hard for me to think he is going to say anything that is going to make, put, say, march or even may back into play. >> steve, i love your opinion, too, that there is a very small window now for powell and company to cut rates. so, you say, forget march, you say, forget may. so then, you have june, july in play, but then you have the

election on the horizon, too, and he doesn't want to bump up to close to that and risk the obvious, the criticism that he is being political one way or the other. i am wondering the challenge therein lies, as a result of that? >> i think all of that is true, scott. i think you would love to stay away from september. he may not have that choice, depending upon what is happening with the economy. and i think, by the way, the politics tomorrow are likely to start to cut both ways. remember, scott, you get into election season, there is this hormonal response from all the politicians, that all of a sudden, the guys who were levelheaded and the women who were levelheaded become slightly crazy. so, we will be listening to, for example, the republicans talking about the needs of fighting inflation, and talking powell away from the easing, and then you have democrats who are mostly quiet about that policy, perhaps starting to push the fed toward that easing and starting to question why that is not coming or happening. but, you are right. that creates another issue, scott, that really i think is

really important, which is not only is there a debate about when, but the other debate is about how much. you start to compress time, you can press the ability of the fed to deliver, and you have bostic yesterday, previously talking about just two rate cuts this year. the market is still priced a little closer to four, so there is still a bit of a gap to be closed there between the fed and what some on the fed are saying, and where the market is price. >> bostic also alludes to -- i think he said ceos were "ready to pounce" when the fed actually cuts rates, and then i suggested, well, investors have already pounced on the idea that they are going to cut. and that is one of the reasons why we have had the rally that we have had. the question is, how much of it all do you think powell is influenced by this stock market rally, that he doesn't want to unleash animal spirits to the kind where once the genie is out of the bottle, it is over? >> you know, scott, first of

all, i want to go back and use that term that bostic used, which may or may not become an operative phrase in monetary policy. that is this idea of pent up exuberance, and that was the phrase she used that led to him talking about -- remember, ceos pouncing. i think we want to separate out that exuberance. the stock market exuberance is one thing, and it does have a potentially inflationary effect. but, i think the investment side is perhaps the more worrying part to the federal reserve here, where if there is this surge of investment, surge of corporate activity apart from, for example, the surge in stock market activity, that is the one that would more concern the federal reserve. you and i have talked about this a lot. i think the fed is a whole lot more interested in what is going on with the financial convictions through the rate structure then it is through the equity structure, but that is a little bit different from talking about what the ceos are doing in the c suite and what

kind of investment decisions they make off of that, and what bostic is talking about is a potential inflationary effect of that pent up exuberance. >> sure. powell looks at the bottom market and he is like, spreads are crazy tight, right? they are not blowing out at all, they are widening. i have more cover. that gives me the time to wait, until we are confident -- to use the word he always uses -- we are confident that we do, in fact, have inflation under control. steve, it will be an interesting day. it always is, when chair powell testifies, especially on day one, before the house. we will see that very soon. thank you very much, steve. now, we bring in our reporter on requisite capital management. what you have on this selloff today, more than 2% for the nasdaq, but most especially these big holdings within the nasdaq? apple threatening 170, microsoft is down a fair amount, tesla has been really weak, salesforce is weak, md, goober, some of the names we have been talking about as these big winners, roll it over

a little bit? >> first of all, you have diamond heads with the shareholders just fractionally down, so i think that is really where we make a mark where, we are going to continue, as i have been saying all year, to have separation between these mega cap names. apple started this, and i think you really have to look at that as, what multiple is the market going to pay for apple when, if that report is true that iphone sales will be down 25% year- over-year, well, they sell expensive hardware and the same with tesla. and to anastasia's point, you have this idiosyncratic event with these individual names. on top of that, we really for the last month or so, have had 80% of s&p names -- over 80% -- over that moving average. the last time we got to that was in 2021 at 90%. so, i think you have technicals to say, we need a breather, but also the apple news tells us that not all of these companies are created equal and multiples

do matter. i think you will continue to see that dispersion on top of, of course, talking about, what is jay powell going to say in the next couple of days? and is that reminiscent of what bostic told us just yesterday? >> the other thing that we need to worry about, anastasia, is the fed waiting too long to cut. as steve said, if you wait to sniff out the possibility of some economic issues, you look at the data as we referenced today and say, if they wait too long, they are going to defeat from the jaws of victory. it is a very fine line, and he has to thread a very small needle. >> i think that is right, and i do agree with you, scott, that the window is sort of narrow and is narrowing. we talked about this late last year. if they wait the entire year to cut rates, it might actually be too late for parts of commercial real estate, for example, for parts of leveraged loans, and a lot of those structures are counting on rates to move lower in the first half of the year and not the second half, in order to make their financial model mistake -- this sustainable.

so, i think there could be a cut in the next quarter. the conversation that i think we might be having different sides of is, the cuts, what is the magnitude of the cut? nobody is talking about 300 basis points of cuts, but i think psychologically if the fed does deliver 50 basis points, maybe 75, that is when they ultimately settle in because the economy can clearly function with this level of rates, but the justification for them to do something is because we are near full employment and inflation is approaching, or will be approaching 2%. so, why should they hold real rates in such restrictive territory when they seem to be hitting on both sides of the mandate? >> i almost feel like the trade of late has been the bear's worst nightmare, and i think i said as much in the last few programs in that, what a stock market, when you an have the biggest names within it, in the area that has dominated the mega cap, pull back. and yet, you have all the slack pulled up by these huge market cap stocks within other areas

of the market that are hitting new highs. the rally has diversified. it certainly has broadened, and the broadening has grown the bull case, in some respects, has hardened, as well. anastasia used the words "in a sweet spot" for stocks. do you agree? >> i think as long as earnings hold up -- and i do think the analysts are still a little exuberant -- for q2, the analyst estimates are for earnings to grow at 7%. for q3, i believe they are 14%, year-over-year. a lot is baked into our earnings being able to grow as much as analysts are thinking, but i do want to say that apple has moved down in market cap, guess what has moved up? nvidia. so, i do think you are having this pole position where nvidia is moving up, holding up these mega cap names. if you take nvidia out of that, these names outside of meta haven't done much this year.

i think it is very, very healthy we are seeing a broadening out. i think at the beginning of the year, we really wanted to allocate to rfp, which is an equal weight, because there was such a disparity between the equal weight and market cap. i still think that is a good trade. stay away from large-cap, small- cap, and go equal weight as part of your tech holdings. >> do you worry about what is happening in the chip stocks, brynne? and i don't need worried because they are not trading well, i mean worried because they are trading too well? >> yeah, i think we will seek broad later on today, you know, that is real. i think what we are seeing, though, i wouldn't be a buyer of the smh, i would absolutely be buying individual names, because i know we are going to end up seeing -- only a few companies are going to monetize this. we talked about the semiconductors in the picks and shovels, but i think there are some picks and some shovels, but they are not a basket of picks and shovels, and this is what happens time and time

again. i think investors still want to be judicious in what they are buying in a semi-space and look outside of that if you missed nvidia. >> any look at the chips, andy ripping almost everything. i know hey are down today, so this is x action today. supermicro. nvidia up, every day. amd has been going crazy. a lot of these other stocks have, too. some stock up out bubbles, some say they don't see it. >> i think semiconductor chips have been due for a breather, for sure. that is natural. but, i do agree with brynne that the fundamentals do favor holding select stocks. one trend that is so strong for semiconductors right now is the growth in data center demand and for artificial intelligence chips. i am not talking about nvidia stock in particular. but, scott, and a lot of people looked at the consensus price targets for nvidia back three, six months ago and said, we are bumping up against this price target, therefore the upside is the cap. guess what happened since then? the continued to revise price targets because the stock delivered on earnings expectations and then some.

i think select stocks within the space can have a similar trajectory, as well. the last comment i will say on the semiconductor space more broadly, last year, revenues for semiconductor space were down about 7% or 8%. this year, they are expected to be up 7% or 8%. last year probably was about multiple expansion for semi's, now it is actually delivering average growth, so for that reason if we have that pullback, i would be a buyer of those names. >> brynne, last point to you. we are looking at the screen here, dow is down an even 500, maybe a few points worse than that. you had yields falling today, and for the worst reasons, if you will, the weak and durable data, the ism services below 50, yet again. so, it raises those concerns about a slower economy. i am not sure, brynne, that what target had to say -- i get the stock is up 11%, 12% today, but i am not so sure what brian cornell and company had to say over there. makes you feel all that great

about the consumer, perhaps, at that level. now, i know there has been some disparity between consumer top end, consumer lower end, but how should we feel moving forward here? >> as long as the consumer and employment are one in the same person. so, as long as employment stays sub 4%, which we are well below that, and unemployment stays low, the economy will be strong. if that changes, that changes for the consumer because we also note that numbers are creeping up, in terms of credit cards and used car loans. so, i think it all changes on the consumer. tomorrow, we also want to hear about powell, what is happening there, and i think that that will happen with the markets, and we will see powell speaking in the next two days. >> we will see right when powell finishes on the hill. at halftime, we will wrap it up and see what the market does. brynne, we will see you, then. anastasia amoroso, thanks for being here. let's move it to christina for the biggest names in closing. >> amer sports failed to

impress investors. a maker of wilson tennis rackets said that its loss is actually strengthened in the fourth quarter, driven by stronger sales in china, but specifically ball and racket sales declined year-over-year. last time, the company was dealing with supply shortage and over ordered equipment, this year they are trying to get inventory levels in check, stock is done 4 1/2%. shares of aero environment are moving in the opposite direction after the defense contractor boosted its guidance. the company makes drones and ground vehicles. the ceo said they have a strong backlog in 2025. we will get more on that story later when the air environment ceo joins "closing bell overtime" tonight. >> christina, thank you very much. back to you in a bit. , we are just getting started. capital wealth planning, since it kevin simpson is back, earning three break big trades with him. plus, how things are

positioned after the big selloff today. we are live from cnbc headquarters today. you're watching "closing bell" on cnbc. there is your nasdaq, down a little bit more than 2%. we will be right back. i'm greg. i live in bloomington, illinois. i'm not an actor. i'm just a regular person. some people say, "why should i take prevagen? i don't have a problem with my memory." memory loss is, is not something that occurs overnight. i started noticing subtle lapses in memory. i want people to know that prevagen has worked for me. it's helped my memory. it's helped my cognitive qualities. give it a try. i want it to help you just like it has helped me. prevagen. at stores everywhere without a prescription.

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we are back, stocks tumbling today, major tech names dragging in the market further from record highs. among today's carnage, kevin simpson is trimming one name in that space, he joins us to tell us what it is. kevin, welcome back. >> hey, scott. >> what are we talking about? what name did you trim off? >> we took a little bit of a profit in the broad column. i know the semi's have been on fire and it is so hard to sell stocks because we have a two decision process.

if you sell something, then you are going to have to buy something else, to kind of monitor the two things, and it is never easy. but, if you think about when we get into broad calm, scott, it was in september and we sold out of our apple position in its entirety and we took a lot of heat for that, because who likes to be out of apple? at the time, we thought the multiples were a little bit stretched, so we rotated it to broad calm and the stock is up 50% since we brought it. knowing how conservative and that dividend oriented the chip strategy that we run is, how often does that happen? we still like the name, we have earnings coming out on thursday, we think they will be good, but we took a little bit of the prophet and we rotate it to apple. apple is the same stop that we had sold to get into broadcom, now we are using some profits here. apple is down about 15% since the beginning of november, so this is an opportunity for us to rebuild our apple position here. could it go to 160? sure. could conceivably go to 150? maybe. it takes us a long time to get

into a position on days like this. >> sure, but you are not pineapple today, yesterday, or whenever you did it on the assumption that it is going to go down to 150. certainly, you are not expecting that, or you wouldn't have done what you did? but, what do you make of the weakness in that stock, for something that, frankly, looks broken? >> yes, they are taking a couple of punches from different directions right now, but under the surface, we think that the margins are at all- time highs. and we love the free cash flow because that is what they are all about. free cash flow for the last 12 months, back over $112 million. so, for us, we are not looking at apple and saying, it is time to run for the hills. i don't think it s time to go to 150, but you can't tie for the exact top or bottom. it is still a little bit high, but i think 160 is where we are going to have an opportunity to backfill this particular position. for us, it is also a really good name to write calls on, because you get volatility in the tech names that you don't

in a lot of our stocks, so we are excited at looking at the idea of apple. especially, we want to buy things when they are under a little bit of pressure. >> what about marathon? which i see you have added, too. that stock hasn't been under a lot of pressure, has it? >> no, in fact, scott, it is at a 52-week high today. >> exactly. i guess it was kind of a rhetorical question. >> [ laughter ] hey, listen, if you look at these two companies, it is all about free cash flow. apple is returning tons and tons of cash to shareholders through buybacks and dividends. same thing for petroleum. they just committed another $5.9 billion to implement more shares of buybacks. i was looking at apple earlier. they cut their flow almost in half since 2012. marathon has done the same thing since 2021. so, it is not like you are looking at the price of oil, the stock is not going to trade like a commodity, but free cash

flow, returning stock to shareholders, increasing dividends, these are the things we love in any investment we make and that is the similarity between marathon -- which is a 52 week primary -- and apple -- which everybody wants to run for the hills today. >> roll calls on visa and mcdonald's. tell me why? >> there hasn't been a lot of volatility. you know this well, covering it on the network for the past few years. whenever we can get some sort of volatility behind any name, we want to take advantage of it. both mcdonald's and visa, these calls were expanded next friday, so it is a short-term opportunity for us, ut we are offering premiums in excess of 5%. so this is a very low dividend, amazing dividend growth, but allows us to produce a bit of a hedge, a bit of an extra meal. for mcdonald's, specifically, if you look at the price action in the chart, it goes up to 300 and bounces there and had such trouble breaking through 300. i wish it could split like walmart did. maybe that is a consideration for mcdonald's.

we have been referring them for a decade. or maybe, a short-term call heading into the volatility, but if we see more volatility, we will be able to take advantage of that. i certainly expect we will at apple in particular over the next couple of weeks. >> are ou feeling good overall about where the stock market is? >> yeah, i mean, it is stretched. there is a tremendous amount of momentum behind it. when you look at the fear and greed index, when you look at enthusiasm for the retail investor, when you look at the professional investor, everybody is bullish. but, the earnings statement is fairly decent, inflation is coming down, even though all the economic data isn't perfect. you referenced today the ism server is under 50, you never want to see that under 50 for too long. but, in general, you have a strong consumer. we have a lot of labor information. i know the fed is going to be the big talk on wednesday and thursday. we have a lot of jobs information coming out thursday and friday. and wage growth i think will be the important number. so far, the economy has been

resilient, the consumer has been resilient, and if the consumer keeps spending, stocks will go higher. >> kevin simpson, thank you very much, capital wealth planning. coming up, bruised apple shares dragging on the mega cap again today, now down double digits for the year. why one expert says that could spell more trouble for weeks ahead. jonathan krinsky making that case after this brk.ea 's realt! hi! this listing sounds incredible. let's check it out. says here it gets plenty of light. and this must be the ocean view? of aruba? huh. this listing is misleading. well, when at&t says we give businesses get our best deal, on the iphone 15 pro made with titanium. we mean it. amazing. all my agents want it. says here...“inviting pool”. come on over! too inviting. only at&t gives businesses our best deals on any iphone. get iphone 15 pro on us. (♪♪)

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we are back, talking a lot about shares of apple today sliding on a report that iphone sales plunged in china in the first six weeks of 2024. the stock now down 11 1/2% this year. meanwhile, other tech names have been getting a boost amid the broadening of the market rally. my next guest says this diversion might point to a pullback in the tech trade. let's bring in jonathan krinsky. it is good to have you. welcome. you asked a question today, whether apple is going to play catch-up and have a bounce, or whether the cues are going to come meet apple in some respects? you actually think it could be the ladder? >> yes. good to see you, scott. so, it is pretty unusual, to have this much of divergence between apple, and the cues, has apple, for the last few years, was the largest component and still the second largest component in the queue. when you had yesterday, that was a unique situation where apple's daily rsi was below 30 while the rs the -- the rsi for the nasdaq was ever 4.5, that

has never happened in history back to 1999 when the queue started trading. the closest carol well we could find was in january, 2018, when apple was below 35, and the q was above 65, and so, that scenario, a similar setup, where apple sold off about 8% as the cues were hitting new highs. and of course, that went into that time we now know as fama get in, where you had a pretty severe drought over the next few weeks. so, we don't necessarily think we are set up for something like that. the setup is a lot different than it was then, but i think to your point, the question is, this divergence, which way does it resolve? does it bounce? do the q's move lower? i think we are starting to see that and the q's move lower. the fact that apple couldn't hold 173, that is a very important level in our work. a ton of volume traded at the 173 level over the last couple of years, so that was a pretty big rig down and ow you are

seeing broader distribution among the tech. i don't think this is armageddon, but certainly a well appreciated down for the tech sector. >> one day, doesn't the trend make. as i said to mike earlier today, low and behold, we are going to talk about all this gloom and doom suddenly in big cap tech, the buyers will come in, and we won't be having this conversation in the same way. >> again, i don't think it has to be fatal. if you go back to after that 10% drawdown, the nasdaq went to make a new high in early march. the other thing is, as of now, it is a rotational affair. we are seeing ind of the hedge fund community with the momentum trade rewind a little bit. regional banks were up 4% at one point today. there are other pockets of the market right now that are working so at this point, it is not a cell everything type of market, so as long as that continues, i think there are places to find other opportunities, but i think some

of the long momentum trades certainly are at risk for a deeper pullback. >> what looks good to you? when you say "longer momentum," you are not talking about things like biotech, which there is a lot of momentum in, some areas that people have pointed to some speculative, if not frothy behavior? what about that space? i'm looking at that market, which is obviously here, pretty broad selling today. staples and energy. >> yes, so, there are two different parts of the momentum trade. there is the established momentum, that has been performing extremely well for the last 12 months. that is your semiconductors, some select retailers comments consumer names, and then there is the newfound momentum which we have been more constructive on. you mentioned biotech, that had a pretty meaningful gap breakout last week, so that is valid. we even talked about materials with you last week, they had a new high today.

energy, even, is kind of an area that i think sentiment has cooled off certainly a little bit but energy has been acting a little bit better, so those are spots in the market we think we can participate as we get this much-needed consolidation in the tech trade. >> the good news is, i suppose, as long as this broadening remains intact, we can absorb -- if you want to use that word -- these declines that we may witness from a more substantial standpoint, out of the q's and big cap tech. it is almost like, okay, that is exactly what you want to see, one big area of the market may slip, and then the slack gets picked up by many other things. >> yeah, and i think as long as tech remains as it is today -- we also mentioned the nasdaq 500 hasn't had a down a 2 1/2 day in about 14 months, this is the third longest streak since 1990, so this shows you how long overdue we are for a decent down move. but, i think as you are kind of

in that 5%, 6%, 7% window, you should be okay, but if you get more than that, i think the selling expand to other areas of the market, but we are not there, yet. >> you want to give me something on the russell before we go? >> the russell, you still have some growth in their that is kind of push-pull. keep an eye on small-cap value. that hit a new high today. at one point, it was up over 50 basis points on the day, so i think that is an area worth looking at. >> jonathan, we will talk to you soon. jonathan krinsky, thank you. next up, kristina partsinevelos standing by with the close. >> we have growth on the horizon for target, and investors are worried about share solutions for one lithium minor. i have details.

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we are 15 from the bell. let's get back to kristina partsinevelos now for a look at the key stocks we are watching. kristina? >> it seems to be a return to growth the target. this is a company that reported higher sales than gross profit in q4 of last year and even though same-store sales are down, the stock is popping

over 11% because ceo brian cornell promised to spend more to drive store traffic. here he is on squawk box earlier this morning. >> we are putting capital to work and that drives more traffic, it makes our bread more prominent. we will continue to invest in new stores for the next decade, and that will be a big part of our long-term growth. but switch to another company, after albemarle stocks climbed in february, lithium is down 16%, 17% today, after announcing it was raising more capital, or specifically, $2 billion in depository shares. investors are worried about the illusion and selling off the stock. scott? >> thank you very much, kristina partsinevelos. still ahead, your earnings report in overtime tonight. we will give you a report of what to watch or when "closing bell" comes right back.

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we continue to watch this market selloff with about 10 minutes to go in the session. dow is off its worst levels but down more than 400 points. with us now is denny, the president of denny research. good to have you. what you make of what is happening in the price market today? >> i think a lot of this is the market recognizing there is a

recession out there just ut of the united states, and it is in china. so, a lot of the stocks that have exposure to the chinese market, lots of companies that thought there was nothing but upside in the chinese market are now realizing that that economy may be slowing down substantially and consumers are not buying the way they had been. >> well, i mean, you say that i think about apple, obviously. 20% of revenues come -- it is just one of the issues around that stock. let me ask you this -- you see a lot of markets, right? >> yes. >> you understand what it means, clearly, when one of the biggest stocks in the market goes through a period of selling. in this kind of market, what is the implication of that, in the broader picture? if apple does, in fact, go through a prolonged period of being broken? >> well, apple hasn't repeated the mantra "ai", too often.

in fact, they have gotten out of the self driving auto business for now. so, they are kind of viewed as yesterday's story, and just not an i story. listen, in a couple of weeks, nvidia is going to have this convention in san jose, which is going to be a great ai fest. i think that will continue to be a positive for the technology area and definitely the semiconductor area. so, i think we are getting some splitting here among the magnificent seven, as some call them. they are not all that magnificent. tesla has some problems, apple has some problems, and it is actually good that the market is starting to be a little bit more selective. and i think it is going to broaden. >> you are one of the first to use the word "exuberance" in this current cycle and current market rally. >> sure, right.

>> that was like, 100, if not 200 points ago in nvidia. and a substantial amount of points ago in the biotech, and a substantial amount of points ago in the sector that has just absolutely gone bananas. does that concern you? >> don't forget the corn! >> i'm not! but, you continue to paint a picture, though. what does it tell you? >> we have exuberance out there, for sure. i think some of it is rational, some of it may be becoming irrational. but, right now, as we see with nvidia, the score has actually come down because analysts have been raising her earnings, and it is so much faster than the prices have gone up. so, the fundamentals, i think, are there for the economy. i think some of them may be overstated, to a certain extent. but, right now, i would put us more sort of -- if we are looking at the 1990s, which was the last time we talked about exuberance, i don't think we are at 1999, just yet. >> are you worried about what the chair might say tomorrow on

the hill? >> well, i anticipate that he will say, don't get excited about us cutting rates. we are not rushing to do it. he might actually say some things that suggest there is a possibility they might not lower interest rates at all this year, and the reason for that is, the economy is doing fine, inflation is coming down, and the economy is doing just fine with interest rates where they are right now. i thought that we would get several interest rate cuts this year. i think the fed has actually normalized interest rates, and they are purpose good where they are right now. >> i can't imagine the chair power -- and he is not going to say this -- and i can't imagine, though, if he does, that if he says, we are not going to cut rates, the market is going to say, okay, we are good. because ism services today, was below 50, yet again. that doesn't sound like an economy that is necessarily going gangbusters. i get the pockets of strength. but, let's be a little tempered

in how we view what is actually going on out there. >> i agree. i would agree with you. i am certainly not rooting for international exuberance, i am not rooting for a melt up, i'm rooting for 5400 by the end of the year, not by the middle of the year. past few weeks, it felt like we could get there by the middle of the year, so i have no problems with the market taking a break here. not a major break, of course, but a break. i don't think we are going to get a 10% correction out of this move. again, we have nvidia's conference coming up and a lot of the excitement that has been about technology, particularly ai -related. >> but, i feel ike you are insinuating that if they don't cut rates at all this year, the stock market is going to be okay because in your words, the economy is doing just fine? >> yeah, i think what i am insinuating, what i'm actually saying, is that we are not going to have multiple rate cuts this year and i wouldn't be surprised if the economy does do reasonably well. look, at the end of the week,

we are going to have employment, employment should be pretty solid. initial claims run just north of 200,000. initial claims are consistent to a 25 straight month of the unemployment rate being below 4%. the consumers have jobs. it is hard to see the economy slowing down meaningfully when the consumers continue to get employed. >> your views shared by many. one of the reasons we have been where we are in the stock market. i appreciate it very much, ed yardeni. we are now in the closing market. two earnings out in overtime, we are watching very losely. kate rogers on what to expect from proud strike. you remember palo alto? a crowd strike may be even more important now. steve is watching those results, as well. mike, your take on what is happening in this market today? >> it is part of a process of trying -- the markets ay of trying to fight through some significant barriers that really came up a few weeks ago. i was talking about 50-50 on

the s&p. it seems like the destination point. we overshot that and nasdaq comprised the rest of it. this starts out as a mean, tidy rotation and gets messier, so i think that is really partly because we have had a lot on this instability, flows into the speculative stuff, the high velocity moves in crypto, and the market had a hard time fully observing that. so, if this is a 5% pullback, it would be nice and clean going down to 4900 on the s&p. i am not saying we have to get there, but that wouldn't be normal, but it wouldn't feel normal after 4 1/2 months of not even having a 3% drop. >> pullbacks never feel normal, no matter what the situation is, no matter how the markets went up before. back to you in a minute, mike. i want to go to kate rogers with what you expect from crowd strike. i feel like the stakes are higher now, relative to what the stock has done and relative to what palo alto reported not too long ago.

>> that's right, scott. analysts are looking for $.82 adjusted for 89.1 million adjusted for the first quarter. the cybersecurity company is also projected to have subscription revenues at $688 million, professional services revenue much smaller. in a recent note they wrote, are crowd checks were universally positive, our edr commentary was good, we were most encouraged by new product adoption across multiple categories to be balanced. expectations are high. an execution, as you mentioned, needs to be near-perfect. the firm also warning our checks are very encouraging. we have a lot of confidence in the 12 month outlook, but given reaction that other growth, we are expecting volatility around crowd earnings and that stock is lower than 5% now. >> kate rogers, thank you very much. i will go back to mike santilli. you have come off by about 10 points or so, still down roughly 100 points. a lot of focus on the mega caps. we are showing amazon and tesla continue their selloff. apple has been right around if

not slightly below 170. all of it leading into chair powell tomorrow and i am wondering how you think the market is going to take whatever he says tomorrow, relative to this move that we have? >> i think the market represents is -- recognizes its dependency mode and therefore the fed does, as well. i don't think he wants to foreclose on any possibility, but we are going to keep our eyes open and we don't feel the economy needs to be rescued at that point, that is okay but it raises the stakes for how the economic data comes through from there. i thought, starting last november when inflation really showed decisive downside action that all of a sudden, that meant good news is good news, for the economy and the markets. that has been mostly the case. i think we are starting from a point where everybody has now embraced the softer, no landing scenario and the idea that the fed has room to cut even if it doesn't have to happen soon. you actually have to see the bottom market get a little bit

more excited today on cuts in let's say, june. we will see if he has anything to say about that. i don't think cuts are really what this selloff is about, but it could probably touch a raw nerve if he seems a little bit on feeling toward some of the markets. >> some tentacles to your point of the mega caps selloff along with apple, extended all sorts of different marketplaces. and you are was noticing that with all of the majors. it is going to be a big day, and we go to ot now with morgan and john. a lot of red on the screen. stocks staging a late day closeout and often session lows, that is the scorecard on wall street but the action is just getting started. welcome to "closing bell overtime". i am morgan genin with jon fortt. >> apple weighing heavily on the market. on a report iphone sales in china plunged to start the year, tech is by far the worst performing sector today as a result of that. crypto investors getting whiplash today, too. the corn