one of the highest prices along with microsoft. >> some of the air coming out of the tech trade a little bit. as bob was saying earlier, it's such a strong first quarter that this might actually be a sign of the healthy market. >> speaking of, bitcoin coming down significantly over the last couple of days. we've got a big guest in the lineup tomorrow on power lines. thanks for watching. >> welcome to closing bell. i'm scott walker live from the new york stock exchange. rising anxieties over the rally is the jump in interest rates is sending stocks falling today. we will ask experts over the final stretch whether the markets are likely to continue to go down from here and where they are likely to go. in the eantime, your scorecard with 60 minutes to go and regulations look like this. under pressure most of the session today. we are off the worst levels. the 10 year yield in its

highest level since last fall which has made the markets a little uneasy. the russell 2000, the biggest loser today. besides the moving rates, oil and gold is higher. the dollar is higher. united health, not higher. the government regarding medicare plan payments and test the following again as delivering numbers missed wall street estimates. this takes us to our talk of that day. the overstock market about to take a big-time breather. let's ask our big-time panel. in greenhouse of alternative asset management. lauren goodman and christian bitterly. as you see everybody is with me today. nice to see everybody. i will come to you first. is today about yields, nervousness about where they may go and that the fed may not cut as soon as we hope? >> i think it's a garden- variety pullback. we've heard day after day that we are rather touching all-time highs or within reach of all-

time highs, so i don't see anything to read into today, more than geopolitics resurfacing, yields popping up. the question everyone is trying to ask is: is inflation more entrenched? is that something to watch? with the backup, something that is true, $6 trillion of cash on the sidelines. we know that trajectory from here is downward. we know inflation is coming down and we know that earnings have turned a corner, s well. when you have a fundamental backdrop, it's pretty constructive for risk assets overall. >> you feel pretty bullish then. >> you have to stay constructive and diversified. we are balanced in our portfolios. if you were to say the four things i just said where people were not winning for a fed cut, that actually tees up nicely for risk assets. >> we can probably do without a rate cut. what we can't necessarily do with is a continued backup in rates. that's going to be counterproductive to where the bulls suggest this market can go. jonathan krinsky says above 4.32 on the 10 year will cause

some turbulence. the push and yields right back to the 435, coupled with a bid to the u.s. dollar, the strength in oil and persistence from gold. we are inclined to raise our guard here. should we be raising our guard? >> this comes in context of a rally that's 30% off the late october lows. you overbought on a number of measures. not dramatically but enough. i think when you put it all together, certainly, you might think there could be a catalyst for some level of a correction. i mentioned last time i was on last week the 200 day moving average, not the widest ever but fairly wide. the pullback absolutely on the basis that yields are backing up but i would reinforce or align myself with the point of view that i don't think 4.3% to some level.

i won't buy into that idea. >> why? >> the rate of change matters more than the level. meaning as rates adjust to higher levels right now and we can have a separate conversation about why that is, that may cause some consternation in the context of what i just articulated. once you settle in that 4.3, 4.4 or 4.5, could equities not move higher? of course, they can. look no further than the first quarter. the two year, the 10 year higher than 35, 40 basis points in the quarter. still a good performance. >> stocks are moving higher because they were anticipating rates continuing to go lower. coinciding with fed cuts coming. you can't tell me that no cuts, higher rates and i know equities will continue to go higher. why? >> i will tell you that. first of all it was not just the prospect of rate cuts that

drove stocks higher. the economy improved. a couple of months ago, first quarter gdp growth was expected to be at zero. now somewhere between 2% and 3% depending on how the march data comes in. our expectations have come back in but we are probably going to beat those. i will run to the numbers later. we are probably going to be that level. call it 5% equal rate. nine or 10% is just because we were going to cut rates. with that said if they don't cut rates in june or they push it out for another quarter or something, not the optimal scenario so to speak but if the economy continues to perform and we've come out of the earnings recession, why wouldn't on balance stocks be higher? >> if dan's words, if it continues to perform. >> when i step back from the next couple of days, look, we are going to have a wild couple of days. we have the jobs report. pmi's that have been stoking the concern in inflation next week. i see today's market activity as very much an inflation story. concern that the economy is overheating. tactically, i agree this is the biggest concern for the market.

over the next 6 to 12 months, and agreed with kristin. we are seeing a distant inflationary process and we are seeing cracks in the labor market. asked beck that it will weaken just enough that the fed will be able to cut in june. >> you do like >> i do. >> for the right reasons? they will be able to cut or will they have to cut? and you know the difference of what i'm alluding to. >> i do, of course. my sincere hope is that -- that's the wrong way to put it. that they are going to have to cut, that they are coming for the right reasons. what the greenspan moment that chair powell was having or was having a week ago. the idea that immigration and immaculate disinflation is good enough to avoid an uptick in inflation. i asked that we are going to have more inflation and more inflation volatility and more rate volatility for the next several years as a result of the inflationary backdrop we are in. >> you think the bulls need a

rate cut this year for the market to continue to go up or not? i get the feeling kristin and dan will say no. not necessarily the economy. this trumps everything else which means earnings remain goodrich at the end of the day is probably more important. >> that is the big if. if earnings can remain strong. with an economic backdrop like we have it is possible that we are seeing the consistent wage inflation in particular. taking bites out of corporate margins. over the course of the year, earnings may very well be in to the weekend. in which case you absolutely need to suspend the market. if we are coming in june because we see the labor weakened, that might be a very tactical set of good news but it's ultimately not good for the equity market because of signaling that economic downturn that so many of them are looking for. >> you think earnings are going to be good?

adam parker, for example, if he was here, would make the argument why he is bullish. he says margins will be much better than people think and that's what matters more. wages coming down, input costs, inflation coming down. prices are not really coming down. prices remaining up. markets are protected. stocks go up. that's what he would say. >> earnings dropped in q3 of last year. we have seen a broadening out of this rally. not just the u.s. a story but the global story. 70s percent of stocks trading above average. when we reach the end of some type of bull market, you tend to see leadership narrow. you're seeing the resiliency in earnings. we raise our earnings forecast in terms of growth we are at acting to see this year to 8%. it's not knocking it out of the park but you are seeing a much better backdrop. i do want to hit on this idea of a rate cut.

i think it is important psychologically to markets. this idea that this is the trajectory that we have hit peak rates. there is a rate cut on the table. i do think it is an important signal to markets. if it's something that we see this year for the rally. >> do you agree with that? >> like a lot, we debate this all day. what is the pricing, what can meet do with this tactically? yes, a rate cut would be helpful for markets but not because the rate cut itself is necessarily helpful. although over a time frame, it certainly is. if the fed believes that inflation -- i just want to step back here for a second. the inflation data is already in the ballpark of where the fed lives. they want inflation at 2%. sure. it's 2.5. >> the pce was a better read than the cpi or the ppi.

>> the ppi, prior to this whole episode, 90% of investment professionals had no idea that the ppi was even released. the fact that everyone is focusing on it right now -- let's just take a step back -- no one has focused on it for 25 years. the pce already has a two handle on it. if everyone believes the january and february did i was a bit of an aberration, you will continue this skirt slide down into the mid-2's where you are already. it will continue to slide down to the mid-twos. whether you believe it or not or i believe it or not is separate from the fact that fed chair powell continually tells us he is comfortable and willing to begin cutting rates in the next couple of months. is that going to be helpful for markets? i think so. >> obviously, it would be. the question is how destructive would it be for markets?

>> i'm saying i don't think it is particularly destructive. i disagree with lauren. the cracks in the labor market, i could put a video of people on cnbc for the better part of two years talking about cracks in the labor market. it does not mean there are not cracks in the labor market. there are some signs of weakness. historically they have proven to show up, disappear couple months later. ended up being fraud in california or whatever. i think if the economy continues to hold up, expanding the call of the 2% to 3% range, earnings coming out of the recession, tending to grow in the mid to single upper digits. that's perfectly fine for me. over the last year, the conomy has shown me -- i did not agree with it originally but has shown me that i can do fine with the fed fund rate in that fives. >> and i disagree back? >> please. >> one of the things we're hearing from businesses, we are looking at small and medium businesses across the industries. actually 75 basis points this year would make a huge difference. it has not only to do with the market sentiment around oh, maybe the fed could navigate a soft landing and be up in the

90s, but that the demand is not necessarily keeping up with even the eduction in costs that we are seeing on the inflation and wage fund, which i agree is happening. that signal that companies can think about how they refinance themselves is going to be really important. i think the longer we see the fund rate where it is today and no sign of abating, the more challenging the credit cycle is going to be when the economy does slow. >> you're telling me that someplace like the russell would not rip if you had 75 minimum basis points of rate cuts this year? the only time the russell moves the state is up is when rates come down or fed officials talked of ashley. today, down more than 2%. >> that's what we're saying. >> i know. that's what i'm suggesting, too. >> the key broadening, the key

support for the economy moving forward. this is something where i had to check my own assumptions. asked the same question. what could 25, 50 or 75 basis points possibly mean in terms of a company's real financing cost? the reality is that it is a meaningful financing cost. what i am hearing is that it is also a meaningful change in the way companies would think about their financing over the next few years. >> the way investors are thinking about the fed and what this trend is. we've been fixated for 18 months on rate hikes. they go from 0 to 5. part of this hope, dream and everything else is based on the fact that we are going to cut rates. that's going to be a stimulant to stocks. we believe in the broadening story that we've got. to talk about the russell. one day it is up. the next day it is down.

are you a believer? >> i leave in the broadening and the rate cut story, as well. what you are itting on is so important. when we talk about exposure, who is exposed to the short end of the curve, who is exposed to the long end of the curve when it comes to rates? i think we have to look at for example your average consumer in the u.s. when you look at the eligible homeowner population, you have about 65% of homeowners. 90% of those have locked in fixed-rate mortgages. you have 50% not really exposed to inflation. seeing the appreciation of assets. if we look at investments of corporate's, same thing. a lot of them have their balance sheets in order. locked in at lower rates. the refinancing risk comes up next year. i think the rate cut isn't just psychological as i mentioned earlier. you have the long and variable lag. what could happen in the second half of this year and into next year if we don't get them, which is clearly on chair powell's mind, as well. >> you said you're looking for 8% earnings growth? >> >> for this year.

6% for next year. >> for the quarter, expectations have come in. >> we were below consensus expectations for the full year. we raised for your guidance because we were thinking for full year, we were not anticipating the first cut until the summer months that we would see 5%. >> what about the momentum trade it's self? high-tech, growth, mega caps. that area of the market which is only 25% of the snp. it matters a lot to do a feel like that is taking an extended -- >> 25% earnings contribution. we could argue that the max seven became >> one. the interesting thing about tech stocks and growth stocks is that is almost the quality right now. what i'm talking about

broadening out, we love the equal weighted s&p 500, 400, 600 growth indices. if we see these go up because of that, it's because of the risk type scenario where you see the flows go into the short end of the curve and mega cap tech. >> your flight to quality if you want to call it that is credit related. that is where you see more opportunity. >> we are really focused on total return. even if it's a three month or six month risk, the re- inflation or the re- acceleration of growth is a major risk, not just for valuations, but for how many investors are positioned. we are looking at taking incremental equity risks in high-yield because we see similar quality characteristics as kristin was describing for investment grade. we are also looking t a structural allocation to commodities. and looking at a broadening of the technology play an artificial intelligence by looking at smaller companies of

the space. as well as infrastructure equity. all of this is portfolio construction around inflation. taking a neutral duration position. >> even though he disagreed repeatedly, i disagree with everything you said. we are along a lot of commodities and commodity exposed names. high-yield had a good first quarter. loans had a better quarter. the market there is telling you basically the same thing that the equity market is telling you. >> do you think if rates continue to move higher that spreads are not going to widen? >> rates will continue to move higher. >> they haven't moved that much but i'm talking about easter to get above 4.5 and then you are talking more about not so razor thin spreads and credit. >> i would push back a little bit. the real you, you have to remember that the high-yield markets it is not your mother's high-yield market. a much stronger market.

more than at the bottom of the spectrum. et cetera, et cetera. it's not exactly how it used to be. part of the reason why despite the 30 point basis moves, how yields depending on the index, not the tightest ever, but pretty tight. >> this move in gold, we are up again today about 2300 bucks. we've talked about commodities. >> of course. it's a reaction to the inflation story. i think gold and precious metals as a component of structural commodities exposure can make sense. it's not where we like to take all of our inflation risk that i think it is an important part of the story. >> when you say commodities, what are you specifically talking about? >> productive metals that are specifically fueling the

electrification and digitization of the economy, as well as i think energy and a little bit of gold, as well. one thing i will piggyback off of dan from earlier is that everything he has described in terms of high-yield quality, i completely agree with which is why there's not as likely to widen as they have in past cycles. they are totally going to widen if the economy starts to leave in. the difference is that your equity evaluations will also be reacting to that. why not take a nice spread while you're at it? >> since we are on commodities, what about energy? it's up last month, up again. do you like it? >> i think for it to really break out from here, it's geopolitics or chinese growth to be honest. both of which we are getting but would have to continue. we see this wide range like 70 to 90. i think the breakout beyond 90 would require some additional support. i do think that when you look at energy companies, you have an interesting compelling argument there. in terms of share buybacks, dividends, obviously, the earnings story was not pretty

last year. it's not great from an outlook but you have to think that oil with the rally that we have seen is going to be a tailwind. maybe not a core holding but tactically, it can make a lot of sense. >> maybe five dollars. i appreciate it. that was a lot of fun. thank you. let's send it to christina now for a look at the biggest names moving into the close. >> let's start with endeavor sharescan and after a private equity silver lake agreed to acquire the company for $27.50 per share. a transaction value of roughly $13 billion expected to close by 2025. we could see shares of endeavor of over 2%. shares of pbh stumbling after revenue guidance. while they did beat estimates, they warned of tougher macro economics and slow growth

specifically in the european markets. shares are down 23%. >> see you in a bit. we are just getting started here. next, disney's big boardroom battle, shareholder votes coming in as we speak. ahead of the media giants crucial meeting tomorrow. monitors kenneth squire with us next. why he thinks the vote might not be as close as people originally thought. he explains after the break. live from the new york stock osg llge, you are watching clinbe on cnbc. you always got your mind on the green. not you. you!

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don't settle. you want fast. get fast. you want reliable. get reliable. you want powerful. get powerful. get real deal speed, reliability and power with xfinity. she shoots from here? that's kinda my thing. welcome back. the boardroom battle at disney nearing the finish line is reports suggest the company is leading the shareholder vote. the final count coming tomorrow with the annual meeting them in. joining us lincoln square, founder and president of 13 the monitor.

cnbc contributor. great to have you on closing bell. you suggest this will not be as close as many people thing. what leads you to believe that? >> i think with material announcing they are on the company's side, and blackrock being in the company's side, going into this, i think vanguard is probably the big shareholder that is most likely to support the company out of the index funds. it could be a clean sweep for the index funds from the company. if that's the case, that's a 17% of the shares. in a fight like this, maybe 70% of shareholder votes. they are almost halfway there for those three big index funds. >> we always focus on the big guys, so to speak but there is a sizable retail contingent here, too. i guess turn out the vote matters. what's happening behind the scenes in the final stages here? >> the company and proxy solicitors, they are calling everybody they can, as i'm sure

you know, that even if you vote one way, you can change your vote. it's really only the last vote that counts. they are rantically making the calls. you are right. it's 30+ percent retail in this company. retail i think will tend to go with management unless a really good argument is made to them. it's hard to hit all the small retail investors and get any mass out of it. this was a great fight. if i were voting, i would be voting for nelson pelz, i think you should be on the board. but it's an uphill battle at this point. >> tommy white you would be voting for him. >> i think this is a board that needs an experienced shareholder when it comes to succession. it's not about last quarter, it's not about next quarter. it's about long-term. it's about holding management

accountable. it's about the debate, holding management accountable. it's invaluable here. when it comes down to it, this is basically nelson pelz versus marie, that's who he's running against. if i'm a shareholder, i like to vote with nelson on this. >> the stock has gone straight up in the last several months. but both sides could potentially use that in their favor. he could say look at, the only reason the stock has done what it's done is these plans that have already laid out that shareholders already like, whereas nelson pelz can say the only reason the stock has done what it's done over this many months is because i'm here. my chances have increased of getting on this board. i will be able to make a difference. that is what shareholders want. >> not only can they both say that, they both are saying that. they are both right to some

extent. disney had a good quarter that helped the stock. i don't think it will be where it is. this is not about last quarter. it's not about next quarter. it's about ceo succession and having a board that is experienced with that. and i think nelson would be a very experienced director to help with that. >> something many others if not all others with very are on activism in general. how would you describe the current environment for activist investors right now? >> it so strong as i've ever seen. even over the last five or six years through covid, activism was taking a backseat to growth stocks and high-tech magnificent seven. in the market that is now no longer rewarding growth but is really looking at profits, there's a lot of, there's a lot of ceos and management teams that need to develop new skills cents. that's where activists are coming in now and looking at

these companies that are hypergrowth's and companies that stop hyper growing and now need to improve margins. it's a field day for activists out there. a ton of opportunity. >> i appreciate your insight as always. we will see you soon. ken squire joining us here. by the way, don't miss ken squire on last call tomorrow evening. he will react to the vote. you heard what he thought will happen. he will react to what actually does. that's tomorrow at 7:00 eastern time, once we actually know the total. next, how sustainable is this? stocks are sinking as you know in today's session because rates are rising. tony pasquarello is back with us. we get his take on where we see the record setting rally from here. wl be right back. amelia, turn off alarm. amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen.

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stocks are selling off across the board today, continuing the rough start to the second quarter. my next guest says now is the time to keep in mind the momentum trade. markets risk reward could be turning on its head. tony pasquarello, had of hedge fund coverage, welcome back. you say the trend is higher but the risk reward has changed.

in what sense? >> just kind of levels at which led us to this point which was a very strong quarter one, of course. extended a remarkable run off the october lows. the total $12 trillion in market cap appreciation. in context, that's $28 trillion. 99 percent are rally in the five month period. bulletproof run but at some point you will be due for some consolidation. we are seeing a little bit of that today. i would say this. we are still believers. i am still a believer. the economy remains strong. we are forecasting the better percent of 3% gdp growth this year. that might be part of the local complexity by the way. i believe that they are alive and well, should they choose to exercise it. in the background which does not matter today. you have the ai story which we think has a lot of room. sober about the fact that risk reward today is different than three or six months ago. that leaves me with kind of the

tactics of navigating the market. stay in the fight. simplify your portfolio. parts of the market where you have the most conviction in the highest quality parts of the market. take advantage of the fact that options are cheap. i like the pairing of staying with the risk you want with the outside protection of moving on the path from here. >> how much of your undoubtedly bullish view on where we are still is on the idea that we are going to get three rate cuts, which you still think we are going to get three. if i told you we are not getting three rate we make it too, we may get one. some say we make it known. what happens to your thesis? >> the official view is they will still go three times this year starting in june. four times next year. we will end up with 3 1/4%. as it relates to this year in the near-term sequence, i don't think it it would be dismissive of it. the fed is the biggest variable. if we don't continue to get rate cuts because the economy is better and than expected, it's okay. the notion of rate cuts is that they are nice to have. the notion is that they are

optional. the fed does not elect them because we are printing way higher than trending growth. i think it's okay. it might change the complexion of the rally a little bit. it probably changes some of the mix. involves a little bit of correlation. not dismissive in a world where people have a lot of risk. it's going to be an easy ride. it's a question of why haven't they elected the part that i mentioned? >> the economy is really strong. the fed says we don't even need to cut. i have heard that argument, too. why would they cut? the economy is great, but the market is counting so much on the idea that rates are going to come down. here we are in a rate induced selloff even though we are well off the lows. united health is accounting for a lot of the 360 on the dow. i totally get it. to your point, getting crushed today because rates are up. it hurts the broadening story in some sense, doesn't it? >> it doesn't it doesn't. i have no problem with them

taking it on the chin. i remind myself, the s&p catches 75% of listed equity market cap. russell catches 5%. it soaks up too much airtime. much ado about nothing. i would say if i look at the first quarter, we would all say hey, the broadening took place. it was not just tech and communication services. it was energy, industrials, financial. if it has more of a cyclical tilt, that's fine for the older economy plays. just not part of the russell story. and as i mentioned before, when we were here in early january, the market was present nearly seven cuts. now we are pressing less than three. they are 425 handles higher than it was last time. >> we talked about keeping your eye on the ball. are you okay with keeping your allocation to mega cap where it

was? i think it was overweight. you've suggested being overweight mega cap which is already a sizable portion of the s&p. i don't need to feel that back at all? is this a rest? what is happening here? >> keep your eye on the ball. don't constrain your imagination particularly as it relates to nvidia, mettawa or amazon. we spoke a lot about q4 earnings. magnificent earnings growth at plus 60%. the rest of the index was minus 2. as we head into this, can they sustain that degree of outperformance? probably tough. upside convexity locally from here is less than it has been. but i want to stay in that fight. the other interesting pattern this year, and this could be within the magnificent seven are the most profitable companies. there's been a lot of dispersion. of those seven, five up, two down. huge in nvidia versus tesla. 24% on the year.

nonprofitable tech, down 16. we have a 40 percentage point spread between the best and least profitable. the market even in a riproaring sensation has been very discerning about where it wants to place its bets. i think that's a healthy thing. >> are you optimistic heading into earnings season overall? >> the bottom of the consensus is on the board at +4. i think the market is decently higher than that. >> hold on. you think the market is pricing more than that? >> i do. i think market expectations are higher than that. it's a nice path. i think it is more, depending on where you look, and more demanding set up for earnings this time around than it was going into q4 and q3 numbers. not a reason to run for the hills, but if i can protect myself along that path, i'm happy to do it. even though it feels like the market has gotten beat up. it was 13 something at the end of last week.

14 something today for the cost of a good night sleep, whether you're worried about the left tail or the right tail is still pretty low. i would much rather have that to stay engaged then tried that in a market that has really not sustained anything. >> on a day where we are talking about oil up and the gold continues to run, how are you personally thinking about commodities? >> a structurally bullish call coming out of 2020 in our view. >> another one recently if i recall correctly in the last couple of weeks. >> we are in year four of what we think is a 10 year stretch. links back to an earlier point in earlier, the rate cuts, i think if you look at the oil market, the gold, the beckoning treasury market, they're basically saying to you the economy is doing just fine.

this looks more like a reflation trade to me. >> appreciated as always. tony pascarella, goldman sachs. >> we got a big interview on the docket for tomorrow that we don't want you to miss. i will sit down exclusively with greenlight capital's about the investment capital set 2:15 tomorrow afternoon. don't miss that. christina is standing by with that. >> the biden administration holding firm on medicare advantage rates and that is hurting insurance stocks.

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15 out from the closing bell. back to kristina for a look at the key stocks she is watching. >> we are watching healthcare insurance stocks. the biden administration fails to base medicare payment rates . cbs health, united health group and humana health group sliding down 14% as centers for medicare and medicaid services announced rates will only increase 3.7% for 2025. shows jumping after agreeing to be bought by an american oilfield company after a $7.7

billion stock deal. the deal is expected to close before the end of 2024. up by the next 10%. down 1.5. not too bad. >> thank you. tesla is tumbling. the stock sinking in today's session. on the back of some crucial delivery data, we wi dllllri down on the number and how it impacts tesla's bottom line ahead. closing bell will be right back. with tailored education. get an expanding library filled with new online videos, webcasts, articles, courses, and more - all crafted just for traders. and with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning. trade brilliantly with schwab.

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coming up next, the power spinoff. the debut and with the ceo had to send the first day of trade when we take you inside the markets own. an exclusive interview with hedge fund manager and new york mets owner steve koehn. 8:15 a.m. eastern. closing bell will be right back.

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selling off. united health at least in terms of the doubt. >> we have this little wobble. it did not change the character of the market. definitely went up to the edge of it. one, we spent a lot of time today underneath last week's low and the s&p 500 just marginally. all these short-term technical things that say we are definitely still in. it seems like it. obviously the bond market throughout the day. that kind of give clearance. there are some things we will talk about as we go on driving tesla and the healthcare stuff. you can set a lot of that aside and say we have the market we thought we had. came here to escort with investors. pretty filled up with equity

exposure. i remain a little bit on guard for the possibility that we have a little more of a chop to deal with. >> they will ring the closing bell today, right? >> yes. it's a moment to stay specifically for the ceo who spent years transforming ge. a pure play aerospace company, less debt, stronger growth. here's what they said earlier today about the transition. >> what you see today with the launch of an independent ge aerospace, we are on the other side. $100 billion of debt reduction. we set at least two businesses up on a strong financial basis. has operationally more than quadrupled our cash flows.

the market cap expansion. that we've seen in the dark days as the fall of 2010. >> the question is now can the ceo replicate the success and turn them into the new ge? standalone power which is profitable. electrification being fueled by data center demand. profitable, as well. offshore wind making $1 billion a year. can you turn that around? that's the question and the outlook for the company. >> along road getting to this point. >> for a long time, they weren't getting credit in their valuation for the best parts of his business. and something that's working now. something that's a bit of an

albatross just at the moment when everyone is looking for ways to play. the need for more power will bury. >> this is an election year. how does this change and what does this mean for a lot of these new age energy companies? >> thank you so much. bad day for tesla. it's all related to deliveries. i'm not sure it was a huge surprise that they missed. what do you think? >> it's a surprise they must by this much. i can tell you that. there were no estimates for deliveries to come in as low as they did. most people thought 410 to 420 was the whisper number out there. coming in at just under 387,000 vehicles delivered in the first quarter. 8.5% compared to last year. first year over year quarterly define, consensus, look how far off this was.

now the question is what will be the estimate on the analyst are looking at for your deliveries? going into today, too .06 million. some are talking about for your deliveries declining compared to last year. as you take a look at shares of tesla, the next big benchmark is april 23rd when we get the quarter one results. you know what everyone will be looking at. automotive gross margins. how much pressure are they facing right now? that's going to be the next thing people will be focused on. >> thank you. phil lebeau with the latest. has not been a good year to say the least. earnings for the current year. under three dollars per share. as much as the stock is underperformed, has not really

gotten cheap. it's very difficult to know unless you want to talk about when it's oversold and have some support underneath. why we've turned around here. talking about 50 plus times. the jobs report later this week. the market watch the next couple of days leading into that. whether stocks can withstand the continued backup. >> at least a nuisance. the idea that the longer and is at the higher end of the range. we do have the market sort of position for a stronger economy. still think that the fed has got to find a way to cut in there. i do because they've told you that unless inflation doesn't cooperate, they are inclined to cut. just saying it's okay to cut because the economy is strong. sure. but they've told you.

going to cooperate. >> if one big bell wasn't in the. there is a big one. >> rates rise and averages fall for a second straight day. almost down 2%. that's the scorecard on wall street. welcome to closing bell over time. >> nearly 400 points. half of that is contributed will to united health. energy is the bright spot today getting a boost from oil with its highest level since october. think geopolitics for that. coming