exciting as far as data goes. tuesday we'll get cpi, and thursday we'll get retail sales. and both of those numbers for february are going to be closely watched because january big surprises on hotter inflation and weaker retail sales. so does that mean that goldman sachs is right, there was a weird january effect in the data? so far we've seen that happen. >> earnings from oracle and adobe and lennar, smattering of specialty retail. the oscars on sunday. let's get to the judge. carl, thanks very much. welcome to "the halftime report." i'm scott wapner. front and center this hour, new records for stocks. the resilient rally continuing, although it's very interesting this hour as we come on the air. the investment committee debating the road ahead. we'll document all of them. joining me joe terranova, stephanie link, shannon saccocia, jason snipe. good to have everybody with us. a different market picture as we come on the air. the nasdaq has gone red,

interesting selling that we'll document. i'm trying to figure out, guys, steph, what we learned this week, right. so the economy is humming, humming along, cooling a little bit. jobs beat, unemployment rate goes up. wage growth moderating. january jobs revised lower. the fed will cut. we learned that, too, right? powell said as much. yields are at a one-month low. the ten year was falling today and the rally, as i said, up until a few minutes ago, at least alive and well. new records for the s&p and the na nasdaq. sum up this week what your big takeaway is. >> we are, in fact, soft landing. when you look at the jobs numbers, today's number, you have to do a three-month moving average, scott. the revisions are crazy of what we've been seeing, but we have 265,000 jobs that were created over the last three months, 4% average hourly earnings, that is coming down. even last month's january

report, the average hourly earnings on a month over month basis came down. we are making progress in terms of inflation. so growth is okay. inflation is okay, the fed is going to cut. is it 2, is it 3? i don't think it will have a material impact to the economy, though, it's very small. but earnings are holding up quite well, and that's what really matters. and margins are holding up really well, so, to me, the takeaway is things are great right now, and now we go into a lull, though, in terms of earnings, because we really don't have a lot of earnings left. now we're going to be focused again on the macro, and we do get very important inflation data next week and retail sales data next week. >> happy international women's day, by the way. >> oh, thank you. >> shannon, coming to you, obviously next after that. the same to you, by the way. bank of america today, i'm wondering this question of whether the tech trade is

weakening or taking a little bit of a breather. you've had the largest -- this according to bank of america's flow show, the largest outflow ever, ever, in tech. and the first outflow in nine weeks. if you look at mega cap tech performance this week, yes, nvidia is up a lot. yes, meta is up modestly. microsoft down, alphabet -- excuse me, apple down. alphabet flat, amazon flat. do we have anything to worry about with the big cap tech trade? >> i don't necessarily think there's a lot to worry about in terms of the fundamentals of the company, scott. there's a little bit of fatigue. that's why you're seeing the magnificent seven becoming the fab four or the neo one. it depends on the next couple of weeks. i think when you look at those flows, they really are based on the dispersion that we're seeing in that group. and so the benefit of being able to really invest last year just in large cap tech, mega cap

tech, potentially with some sprinkling of some ai enablers on the side, that started to rotate. i think this broadening out that we've talked about is really indicative of a market that is looking at the next 6, 9, 12 months, understanding that there are going to be dynamics where there is going to be this dispersion or differentiation. steph made a great point. we're seeing margin recapture. more importantly, we're seeing some of these companies outside of the tech sector take on some of the same mandates technology companies did last year. they cut a lot of costs. they cut a lot of people. they cut underperforming parts of their business. apple shelving their autonomous driving unit, for instance. other companies are starting to take up that mantle around margin recapture understanding we are going to see some slowing on the top line, and i think that's what you're seeing from an investor perspective looking at companies that maybe aren't necessarily priced to perfection and being able to rotate into

those at this juncture. >> this is definitely a market being led lower at the moment by some of the large cap tech names. certainly if you were to pull many of them up on an interday basis nvidia, microsoft, meta is down, tesla is down again, citi has a note out saying the generals are falling or failing but not yet a reason to worry. they point out two of them meaningfully below their 200-day moving averages. a third one not that far away. it's raised concerns the rally may come to a premature end as the stock market generals are beginning to fail. this is not yet -- not yet -- a sufficient reason to worry. do you share that view? >> i absolutely do, scott. for me, it was time to take a breather. nvidia is up 90 plus percent year to date. there's clear dispersion within the mega cap space and, for me, what's exciting about this

year's market is the broadening out we've been talking about over the last couple of weeks. health care up 8%. industrials up 8%. materials starting to grow. staples up 5%, and even energy getting a little bit of movement recently. >> finally. >> for me, whether it's a source of funds where money is flowing from tech or not, it's just the idea that there are other opportunities in the marketplace, and i think that's what the market is sniffing out. >> so, joe, let's talk nvidia. the stock hit 950 -- >> up 5%. >> it's had an 8.5% swing in one day. so above 9.50 and now below 9.0. what do you make of that? >> nvidia traded up to 9.74 this morning, up 5%. what's going on in the market right now is very clear. this is about cooling off some of the really intense strong

momentum in the chip sector itself. it's about the chips. >> amd is down now. >> smh, another significant reversal that you could pull up this is healthy, and for individuals that have been following momentum in the market, here is your signal to look at your holdings and say, okay, the market is giving me a message that it might be time to pare back some of the ownership that i have in the semis specifically. now, coming into the day, largely a lot of the reasoning behind why you're seeing a little bit of a wobble in the semi trade was about what we heard from marvell last night, down 9% today. broadcom has fallen 6% intraday as well. but let's not make this the technology is breaking down universally and this is an inflection point because, guess what, apple and alphabet are higher right now. the last couple of days i've talked about owning alphabet

puts. i wouldn't own those puts anymore based on what i'm seeing now. if you're going to get a wobble in semis, apple and alphabet will benefit in a rotation of capital. >> you think 9.50 was one of those sell signals on nvidia, okay, this thing is kind of acting a little ridiculous in that you turn away, you look back and it's at 900, 925 and 950. >> i think here is what's happening. you are approaching $26 away from $1,000. we can't dismiss any more in terms of market structure, the importance of these zero dated options, a lot of heavy activity surrounding that strike price in nvidia, and i think a lot of it has to do with that aspect of options themselves, momentum reversing, and when momentum reverses in the short-term nature, it could be a powerful

force happening in the chips sector. nothing more than that. >> steph, do you want to take on broadcom, which is down post its own earnings, which was up a lot pre its earnings, 43% in some three months, more than 100% in a year? >> about a month ago i trimmed it. i trimmed lamm and felt really foolish because the stock went up every single day since i trimmed, but i'm still big. i still like it. i'm still a big believer in broadcom. it has rerated, though, and the expectations were really high. up 51% the last three months, the stock is up 38%. and it went from 16 times forward earnings p/e last year to 25 times. i think it should be around this multiple because i think the ai component is actually just getting going for them. they actually raised the ai numbers from 7.5 billion this year to 10 billion. the problem is they didn't raise

numbers across the company because they are traditional parts of semiconductors and the traditional parts of the business like networking and like enterprise were weak. and i think you're seeing a troughing in that area. >> yeah. >> and that ai -- it's bridging the gap, if you will, and then, of course, software, vmware, that's a home run. they doubled their bookings. there are pockets that are really great, but they needed to crush it and raise numbers, and they beat numbers but they actually just reiterated numbers. >> to me -- to me this screams a little bit of a story that we've been telling, as i look at these numbers, like the rising tide lifting a lot of boats, and maybe some of them got lifted too much in the ai halo. as "the wall street journal" says today, and i think this is pretty timely, unless you're

nvidia, the ai chip business is complicated. investors have been treating broadcom like the next nvidia. they forgot about the iphone, right? >> that didn't really have an impact on their business. it was really the enterprise and the storage business, the server business. that was really a problem. >> sure. but investors in one light and on one hand can't in the past cite one of the reasons they like broadcom is because they're a component for apple as a plus and now be dismissive of it when apple is having these obvious issues with their iphone sales in china and assume that none of these other ancillary players in that story aren't going to have issues, too. it's just i feel like everybody's eyes have been all clouded by ai. ai saves everything. >> apple needs to be 50% of their revenues. it's 20%.

they barely even talk -- they're not going to mention apple. they can't. but they barely even talk about that piece of their business. it really is so much -- this company has changed dramatically from more hardware to more software which is more recurring, which is better margins, and they're going to do 60, 65% margins long term, double digit total revenue growth, and they have 70 to $75 earnings power over the next several years this is a real company -- >> oh, i know. >> a lot of puts and takes. the expectations were really, really high. >> you own it personally. >> everything that steph is saying is fair, it's accurate, and what i'm about to say, i don't want it to be interpreted as i'm negative on broadcom. i'm long, i'm happy to be long, but i will trim broadcom on the close today, and one of the things about broadcom is, to your point, broadcom is growing into its role as an ai

networking company. broadcom has, what, 15% at best exposure currently to ai. the other areas of the business -- >> 20% of their revenues, yeah. >> -- that revenue number is expected to grow to 35% based on what hok tan said on the call last night. last time they reported in the after hours, the stock was down and hok tan said revenue will grow to 20%. he gets on the call, says it again yesterday. that wasn't enough to overcome glaring business. let's remember something. the revenue growth on this company overall, the last several years, has been in decline. so i'm with you. i own the stock. i have had a very strong profit in the stock. i'm going to maintain position. but i'm just going to sell a little bit on the close because i just feel like it's a little

bit of a different story, and maybe the market is getting ahead of the ai excitement surrounding some of these companies that are not nvidia. >> part of my point is the stock -- you use the words, it's still growing into ai. the stock hasn't been acting like it's growing into ai. the stock has been rewarded handsomely for being a major player with what was perceived a cheaper way to play ai than nvidia. that was a big part of the story. whenever you talked about broadcom, it was ai, it was cheaper version of playing it than nvidia. >> i disagree with that. >> you can't disagree. >> i disagree. no, i disagree with that. it wasn't just you were buying it because it was a cheaper valuation. they are growing their revenue -- >> i'm not saying they're not, but that was a key thing that i heard a lot on this desk. >> it was a valuation alternative, that's true. i think it's more than that. >> i thought the diversification was interesting. i didn't want to have 100% of

ai. maybe looking back, that was not a great call on my part, but i like the fact that it has data center, that it has cloud, that it has ai, that it has networking, that it has server storage, a lot of different ways they can win. a lot of their traditional semiconductor business is still in excess inventories. we're still getting through all of that. so i think you're going to see a trough in those parts, those businesses in the first half of the year, and you can actually see revenues accelerate in that segment in the second half of the year and, yeah, you do have ai. look, this was a 10% participate of the company last year growing to 25% next year and they just raised the number again yesterday. there are a lot of ways you can win. but there's no question, scott, the stock up 51% in three months' time, that's a huge, huge move. >> all right. so joe said he's trimming some at the close. kevin simpson joins me now of cap tital wealth planning.

you've trimmed more. i think you were with me last week and said you were trimming some. now you're back trimming even more of broadcom. but you did that ahead of the number. >> yeah, believe it or not, this is the second time of the week we've been selling broadcom. i think stephanie covered it perfectly. the diversification behind broadcom is the reason we love the stock, love the company. we maintain a very small position in it. we were digging deeper into the numbers. the revenues were expected to be $38 billion previously. that got jumped up to $50 billion. explosive growth, definitely nice things on the conference call about ai, and internally here, we said, but what if they don't doed $50 billion? what if they do $60 billion? and then we just broke it down to sales per share. the float has been increasing so it comes out to about $130 per share in sales. okay, let's take a ridiculous

multiple, ten times sales, and that gets you to a $1,300 share price. historically it's traded closer to seven times, which is back at $900. now i agree with joe and stephanie there should be an ai premium, but if you're talking ten times forward sales of $60 billion, not even $50 billion they're projecting with the street in pretty much agreement, we're looking at a stock that's fairly priced. so for that reason we've been exiting the position. stephanie's point up 51% in three months. when do i ever get a stock that gets to do that in our world? so we're taking some profits, a little risk off the table. a great company just alittle ahead of its skis. >> are you going to buy it back perhaps if it has more substantial pullback? >> absolutely. >> the proceeds -- >> if it gets to $900, that's probably where it should be trading. would certainly be buying. >> that's going to be an uncomfortable drop to watch. >> not for me. i sold it.

>> that's true. good point. and you bought unh. you bought unh and ibm. >> yeah. we're looking at ibm. we talked about ten times this predicted sales number. ibm trades at under three times sales, over the past six quarters, they've seen free cash flow grow from $7 billion to $12 billion. we love free cash flow. getting over 3% dividend. with that type of free cash flow growth, we'd like to see the dividend growth, see them grow that dividend a little bit behind it. they're getting ai exposure through red hat, watson x. the stock didn't do anything for what, three, four, five years. the last quarterly numbers were excellent. we were add to ing to it. a little bit more value conservative dividend focused. but we like the growth story there for ibm. it's not the same ibm it used to be and we have tremendous optimism for this moving forward. >> appreciate it very much. enjoy the weekend. see you soon. kevin simpson, capital wealth.

what may happen overall if you lose the mag seven for a little bit or you sort of chip away mag seven to mag five to mag four to whatever and what that means to the rally. goldman's tony pasquariello, who i cite a lot, address this is issue today and has the following. for those wondering about the sustainability of this rally, it's been fair to ask what would happen if one or more of the mag seven stocks really came off the pace. well, that's clearly happened. yet the market has certainly held its ground. so no big worry sign yet from pasquariello who says outside of the mega cap tech i'm open-minded to some selective broadening out again in sectors like industrials and biotech have good stories to tell but he is skeptical small cap will do a lot of the heavy lifting, joe. industrials are up a lot year to date, 8%. health care, up a lot year to

date, 8%. maybe you can afford in the time being to lose some of the mag seven stocks and you'll still be fine. there was evidence of that kind of today. >> well, i think it's clear that in the last several weeks we learned you can lose apple. you can lose alphabet. you can lose tesla. but in the mag seven, the pillar of strength is nvidia. well, tell me where nvidia is going to go from here if nvidia, which was up 5% and is now down nearly 5%, that's a 10% swing in one day, if nvidia is going to deteriorate further and drop another 15% or 20%, no, this market is going to have a really difficult time finding other areas of the market to carry the strength that nvidia was carrying. >> that's a crazy slide, a 10% swing in the span of three hours? >> it's a friday. >> on no news. >> it's a friday. options expiration. >> the market might just kind of sit here for a while if tech takes a breather.

tech and comp services, it's 35% of the s&p 500. so if it falters, then the market probably will have a tough time going materially higher. you do have -- you are seeing a broadening -- jason, you mentioned this, in energy, in materials, in industrials. industrials are worrying me in that everybody now likes it. we own it. i know you're overweight it, i'm overweight it. i'm not selling it, but it bothers me it's more popular. financials are catching a limb bit. maybe the overall market doesn't go a lot higher, but i think you can still make money if you're a good stock picker and in some of these other sectors and they're still very cheap. >> the laggards are going to catch up rather than the leaders like these stocks catch down, in his words. wolf says, jason, stay long ai and big tech until the fundamentals start to disappoint. in other words, it's dangerous to start drawing conclusions from the midday price action in an nvidia and try to make a

broad statement that, oh, my god, this trade is over now this trade is topped. >> right. >> it's like, relax. >> relax, cowboy. yeah, 100%. and, listen, to joe's point, nvidia is carrying the load. there's no doubt about that, and i think that's why we're seeing the market work the way it has been even with the googles of the world and others pulling back and apple. but when i look at health care as an example, earnings growth ahead. i get excited about health care, whether it's equipment and device companies. you see kev is buying unh. unh has been a laggard as of late this year. utilization rates, medical expenses going higher. i think there's opportunity elsewhere and you should be looking at other spaces. >> speaking of opportunity elsewhere, let's do a couple moves that stephanie link has before we take our first break,

eaton, etn, that's a new buy. tell me about that. >> this is very much the theme i've been talking about forever in terms of onshoring and reshoring. what caught my eye is this company is increasing their backlog substantially and orders went from 2% to 7% in the last quarter. that was a sequential gain. and so they are benefiting on the electrical side and in power and power quality. that's really helping, and they have aviation, aerospace exposure. i'm a big fan there. they have exposure to two of my favorite parts of industrials. not cheap, so i just started with a small position and if it does pull back i will add. >> what about schwab which you bought more of. why? >> i bought that after the january numbers came out in terms of cash sorting. cash sorting actually came in much better than expected. $6.8 billion of cash on their balance sheet, and that actually was $9 billion. the numbers, their clients are finding other places to go, and i think it's fear of missing out

and even the company did apllud to that, the nvidias of the world and all this other stuff and putting money in the money markets is not that exciting. i don't care why they're doing it but they're doing it and that will help net interest margin. we do have a news alert out of washington. what do we know? >> reporter: scott, we're hearing that tsmc is set to receive more than $5 billion in grants in arizona. part of the chips act, a bloomberg report saying the money is coming. it's not yet finalized. the commerce department did decline to comment to cnbc, but we have been expecting these awards would come from the chips act very soon around president biden's state of the union speech. we'll stay on this. tsmc will not be the only one, but the report is they'll be getting more than $5 billion in grants to support the project they've been building in arizona. scott? >> appreciate that update. up next, more committee stocks are on the move, costco, eli lilly. the desk debating how you should

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included. does this change your mind in any way? >> no. i think this is really an overreaction. the stock is down a slight miss on the top but a beat on the bottom. it is concerning given the holiday quarter they're coming off of. a membership cost. they have runway going forward and they're the best big box retail player. >> joe, lilly. the fda will delay approval for their alzheimer's drug. the stock has been a one-way freight train because of glp-1. what about now? >> i think the stock is more susceptible to market conditions than idiosyncratic conditions for itself. the stock was only down 1% on this news today. now it's down 2%. if we have a correction in the

momentum factor, which has been the most significant catalyst year to date represented with semiconductors, then lilly will fall as well. the fundamental story for this company has not changed in one regard at all, and i continue to maintain position. >> jason, there's been commentary in the marketplace about streaming consolidation and who the winners and losers are going to be. barclays has a note that says it could be a bigger winner for youtube than for netflix. now i've been getting a lot of news about live sports and netflix would have the announcement with mike tyson and a fight coming up there. you own netflix. what do we think? >> i think this is an interesting call. i wouldn't be surprised if youtube is a leader. that's their business. the play on linear tv, the only pull i believe is live, live sports, live business. that's why folks are still

there. with the move into wwe, this latest kind of tyson experience, i think these are all positive catalysts for them. netflix's main has been on profitability. their content lever is very strong. so i still continue to like. >> a new all-time high 2192. >> sold it too quick. my mistake. cut me, i bleed. i'm human. the exposure that we have is freeport that's down 6% year to date. unfortunately copper is down as well. clearly the momentum has been broken. where is the positive momentum in materials? it's in the steel names. it's in newcor, martin marietta, but it's not right now in copper. >> what is gold telling us that it's had such a nice run? what is it telling us? >> that's like asking me who will win the world series. i have no clue. >> doesn't it worry you? >> i'm sorry.

>> it definitely worries me. it's telling us something. >> shannon, what about gold? >> scott, it feels a little frothy here. i think you can point to steph's question, point to the dollar, to rates, to perhaps a resurgence from manufacturing globally. increased industrial ref lance. this feels more like a safe haven. at these levels there has to be a catalyst to push it higher if you've missed it at this point. i don't see a lot of upside. it's hard to prognosticate. >> let's get the headlines from contessa brewer. the republican national committee just voted to elect michael watley and lara trump as co-chairs. lara trump is the daughter-in-law of the former

president and these votes complete donald trump's takeover of the party's political and fund-raising machine. michael watley, a supporter of false theories of voter fraud will carry the top title. uvalde, texas city council looking into the police response to the 2022 robb elementary shooting cleared police officers of any wrongdoing in their delayed response, that angered family members of the victims. the conclusion that thepolice officers were to blame for failing to act. voters in ireland are casting their ballots about whether to change their constitution which says a woman's place is in the home. the vote is to remove the revens and broaden the definition of a family. scott? >> contessa, thank you. contessa brewer. come up, "calls of the day."

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the dow is hanging on to a gain of 91. our "calls of the day" now and i will begin with general electric. there's been a lot of love for ge lately and not just from stephanie link. barron's was positive. overweight at jpmorgan. price target to 180 from 166, a new 52-week high. that's your number one position? >> yeah. it's had such a nice run the last couple of years. i haven't trimmed any at all and i don't think i'm going to. >> good for you. >> i think the story just got even better as they spin off all these pieces no one could really understand. >> you liked it when i think -- i don't know, i felt everybody but you and larry culp hated it. >> i know. it was a hard one, but he really is a rock star. he has really figured it out. no one else could figure it out

for years. and you just have to look at his track record from danaher. that chart is a beautiful looking chart. >> of danaher? >> right? >> unbelievable. >> they had a positive analyst day. jpmorgan upgraded it, almost like an apology of upgrading it because he's been late, but i do think that as the story gets more simple, people could understand it. i think you're going to have analysts -- new analysts covering this, not conglomerate but aerospace people and these guys are the number one in the business and they just reiterated long-term targets in terms of revenues, and margins and free cash flow and then them just announced a $15 billion buyback. they have to get board approval, but that's their intent. >> amd, price target goes to 265 from 192, they reiterate the buy, joe, they call it the

nvidia mini. >> amd belongs in this universe of semiconductor chips that right now are, as i like to say, the center of the universe and clearly powering the ai logistical buildout. the stock is 7% off its intraday high, the same type of response that nvidia has. let's not make too much of that, that as an inflection point i still think you want to maintain ownership but, as i said to begin the show on a day like today, if you have a significant overweight position to some of these companies, you take a look, okay, maybe it's time to trim. >> jason snipe owns arista networks. price target to 330 from 300. top networking pick in 2024. due to our expectation for sustainable growth in enterprise led by share gains and the growing ai opportunity. >> 100%. cloud spending has not slowed down whatsoever.

a-met plays and is growing really nicely. what's a big point for me, they had really strong operating leverage. for every incremental piece of revenue growth, they're growing nicely, so sales were up 21%, eps growth up 48%. i think the stock keeps going. >> valero, joe, you own personally and in the t added to piper sandler's triple select stocks list comes out monthly, overweight, 155 is the target. global balances will remain tight with fears on incremental capacity overdone. >> really had to wait for valero to show a lot of the both technical and fundamental strength it's exhibiting so far year to date. from a macro perspective, the fact oil is kind of ping-ponging in this range between 70 and 80, the refiners like that type of stability. now we're moving into driving season, so whether it's marathon petroleum, valero on fphillips

66, strong as we move into the season. >> what about vulcan and martin marietta? stocks that have been at or around new highs of late. both of these were there. they keep the price targets unchanged. for vmc it's 270. it's a breather call for stocks that have done well, right? >> look, that's more of a cyclical call than what i like which is a secular call in the material space. these are two of the better names you could own. they're performing remarkably strong year to date. they're performing in terms of keeping their balance sheet strong, and the earnings are there. i will disagree with the call, and we connue tito maintain positioning. >> okay. coming up, we have the earnings setup on three key names in joe's portfolio. first, though, mike santoli is next with his "midday word" here at post 9.

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senior markets commentator mike santoli for his "midday word." do you want to owe opine on this nvidia move, 10% intraday move on this name. >> we've been waiting for the market to finally reveal when we got to this enough for now moment and nvidia -- so textbooks would say it would all happen after this huge pileup of momentum. it would probably also happen good macro news, you would have this how much better can it get reaction. it's way too early. trying to look back on the last year, if you saw any of the other ugly red intraday moves in nvidia and none of this magnitude. the ones you did see, it wasn't very clear it was the end of one of these interim rallies. who knows, we're ready for something like that. i think the high momentum flow, as joe has been saying, has been

the key potential source of instability in the market. so far you're getting away with rotation as opposed to something more damaging. i will note, though, you have the vix pushing 15. the vix bottomed at 12 three months ago. since the bottom, the s&p is up. not always exactly how it goes and sort of shows you we're bracing for something, a seasonal effect there. there's the possibility that we could kind of -- and maybe going into options and the nvidia conference that would leadto you that question how much better can it get. >> a good needle thread that the fed will have to pull off. this is by no means going to be the easiest transition that the fed is ever going to make. i mean, yes, the economy is still humming along but certainly showing some signs of cooling. they have to make sure it doesn't start freezing and that they orchestrate this in exactly the right way and it probably will take that. >> well, i agree the stakes are

relatively high in terms of how they start and how fast they go from there. this isn't the most rate sensitive economy that we have ever had. >> for sure. >> it's not the most rate sensitive market we've ever had and this is one of the longest -- will have been one of the longest pauses at a high threshold for rates in a long time, so it feels as if we're rounding into this point where everyone will agree on the right thing to do. i do think the question is between now and june, do you get more signs of worse slowdown, and is that something that all after sudden makes the market kind of agitate for something more. so, i don't know. i feel the fed is almost in as good a spot as it can be -- >> no question about that. >> provided inflation does not -- >> cpi next week. we have it front and center yet again. i'll see you on "the bell." mike santoli will join us later. coming up, we have the setup on lennar and adobe. help you find and unlock opportunities in the market.

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earnings next week starting with lennar the on a stock that just hit a 52-week high today. >> continue to expect the balance sheet strengthening further. free cash flow generation is remarkably strong, new home orders will be strong, 25% to 30%. you want to hear the commentary surrounding what type of incentives are buyers looking for, but this is a stock that early this morning made an all-time high. palantir told us yesterday that lennar is using their a.i. strategies. it's remarkable. it defies the logic. >> steph? >> it is. i think it's going to be a great report and upside report.

they did 32% last quarter. the whole group is trading at 9 to 11 times. i like housing overall backups summer/demand imbalance. we have 14 straight years of underprotection. i think all of that sets up well for the housing sector, especially if you get rates to come down. >> ulta has positioned themselves in terms of market share in beauty. i believe it's the instagram effect. as far as adon'ti, somewhat concerned. the stock has not performed like some of its software peers, looks potentially to break down below the 200-day average. we're going to highlight two winners after this quick break. they're green in t fe heacof a good amount of red in that area. we'll talk about it, next.

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a lot of the other megacaps, all of them in fact, are down. we've been highlighting nvidia, but apple is down straight seven days, the longest streak since 2022. >> i think what's interesting is all this news about china i think has all been priced into

the stock. they're talking about for the first six weeks of the year, iphone sales down. now they're fourth place in mobile sales in china versus number two last year. that's all been priced into the stock. they will figure out an a.i. solution for the iphone. it's just coming later on. they're watching everyone else. >> narratives around both alpha and alphabet have been to negative, and then the a.i. roll-out debacle for alphabet, can't get out of its own way, but getting a bounce today. >> it is. maybe it's a simple premise. i believe nvidia came within $300 billion in its market cap of overtaking apple for number two overall. obviously we're seeing a widening of that market cap distance. look, i like to look at correlations within the market,

and figure out, okay, what's going on here? it's very interesting that apple and alphabet are higher. is it just short covering or rotational buying away from semiconductors into what they believe is technology at a reasonable valuation? the last point on all of it is, boy, this is a clear referendum on tesla. you're not seeing the type of buying that you're seeing in apple and alphabet. >> tesla is down near 2%. a quick eabrk, and we'll be back with your final trades on the other side. earn and keep trust. build and maintain financial strength and stability. deliver solutions that meet complex needs. do right by customers, clients, and policyholders, always. repeat daily for over one hundred and seventy years. massmutual. partnering with financial professionals, benefits brokers, and institutions. ♪

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♪ ♪ every day, businesses everywhere are asking: is it possible? with comcast business... it is. is it possible to help keep our online platform safe from cyberthreats? absolutely. can we provide health care virtually anywhere? we can help with that. is it possible to use predictive monitoring to address operations issues? we can help with that, too. with the advanced connectivity and intelligence of global secure networking from comcast business. it's not just possible. it's happening. i hope ujoin me on "closing bell" at 3:00 eastern time with jeremy siegel from the wharton skeen. dan greenhouse will join us as well. nvidia's stock is getting slammed today, down about 100 bucks. >> $100 off the high.

>> in a few hours. we'll track that, too. quick, final trade. >> apollo management group. >> las vegas sands. >> should not? >> health care. >> joe t. >> still an owner of costco, but crowded positions. join me on "closing bell." we'll take you through the end of the week and track every movement in nvidia. "the exchange" is now. thanks very much, scott. welcome to "the exchange" on this friday afternoon. i'm dominic chu. stocks unable to sustain the gains following the stronger than expected jobs number. the dow is on pace for the worst week since october. but some believe in the 2024 stock market, where he is seeing opportunities now, that's coming up. the unclimate rate did tic