your unique goals, you can spend less time searching and more time learning. trade brilliantly with schwab. thanks for watching everybody. >> see if we can close above 40,000. "closing bell" starts now. >> welcome to "closing bell." we begin with surging stocks. new highs and then what happens next? we will ask our experts over the final stretch including rick rieder who will join us. with 60 minutes to go, the dow topping 40,000 for the first time ever earlier today. you know about that by now. all three averages reaching new highs, so we will track it over the final stretch. apple is a big story.

it's come back has helped that final mile if you will to 40k. certainly cents fed chair powell calmed the markets. it takes us to our talk of the table. what is next with stocks? great to see you both. here we are. now what? >> it is a great backdrop. we have had a nice rise in markets. equity markets calmed down from yesterday and so i think it is a good backdrop for stocks. >> joe, what do we do here? do we top out, do we keep going? is there a message on how we rebounded severely from the april lows? >> there is and it is about profitability. think about it, we set the lows heading into the earnings season, all about coming out of the earnings recession that has been the catalyst behind the

appreciation to new all-time highs and i think collectively we have to breathe a sigh of relief from where we were in 2022 that we have the advancement of the technological innovation surrounding artificial intelligence. that has been the fuel for this bull market. i think it is well entrenched and you ask what are we looking for or hoping for in the near term? i'm looking for a correction. why? because there are areas of the market and technology i don't have exposure, that i want to get exposure to, because i think the bull market extends beyond this year. >> i think that is the most important question for you guys today. do i stay with tach, which has rallied the most. up 12.5%. reasonably broad, though of late technology has had that burst back. utilities are up. real estate, comms services and

on and on and on. do i stay with those top trades? what do i do now? >> i don't think you could move away from technology, scott. particularly as we move to nvidia earnings. i think the importance is on the entire a.i. halo, whether it is amd or broadcom or cadence design. very similar to what palo alto delivered in february when it was a disappointing report, but they get the benefit of the doubt. nvidia will get the benefit of the doubt. buyers will resurface. you don't want to move away from technology and i think apple taught us a significant lesson, a punishing lesson about if you move away from technology, we will remind you about our balance sheet as a reason why you don't want to do so. >> your firm owns apple and alphabet and microsoft and meta,

so you have a horse in this race, so to speak. what do i do with those? >> absolutely and going back to something i know you talked about in the past. capital spending from these large tech companies. announcements about how much they would spend in 2024 were very large and as you said one spend is another company revenue. we continue to believe that the overall outlook for technology remains positive and as joe mentioned with nvidia next week, the expectations are that a lot of capital spend goes straight to nvidia. >> what do i do with the consumer? i feel like if the bears are hanging on to one little nugget, it is the recent, whether it is data, retail sales, not good. starbucks, their commentary, not good. what do i do with that trade?

how should i think about it? how are you thinking about it? >> sure, we have definitely seen a bifurcated consumer. the landscape has been different, but even walmart today talked about how the high- end consumer is looking for value, right? looking for value at places like walmart and doing competitive shopping. so i think we will continue to see that going forward. higher interest rates are having a bit of a lag on impact. inflation is hurting consumers and it is broadening out to more than the lower end consumer. >> joe, worries about the consumer or not? what do the bears bring up? well, the consumer is weakening. look at the charge-off information that we continue to get. higher for longer will eventually take a bite and maybe we are seeing the earliest

signs of it. >> i think the argument needs the black swan. it needs the shock whether it is geopolitical, and we have overcome so many geopolitical decisions, but it needs a black swan. the consumer is becoming more cost-conscious and the most recent rebalance reduced exposure toward consumer discretionary. i think it is the right thing to do. i think staples, you want to elevate exposure and i think walmart told you today that the consumer is getting more cost- conscious. grocery division, very strong. people are eating less fast food and stepping back. if you are talking about sectors with interest-rate sensitivity, you have to be tactful, but i will go back to the opening remarks on technology. technology doesn't seem to care. it doesn't have the sensitivity to interest rates and that is why it seems to e a core sector holding in a portfolio. >> let's be honest, we don't get to dow 40k in the speed that we did, no doubt, without

apple which is up 12% over the last month. we are almost, to the day, really of where you would say the april low was. you recently rebalanced out. look, timing is everything, obviously. sometime you have no control, because the rules dictate what you do in your etf. how should investors view this really rapid ramp back? >> there is a $110 billion buyback. apple reminded anyone that wanted to get bearish on the stock what they could do with balance sheets. i said the stock is going higher, in terms of our holding of it. at the end of july we will address it. from a fundamental perspective it is a strong candidate, but we rebalanced two days prior to the earnings report. if in fact we had the benefit of the earnings report before we rebalanced, then the negative momentum present would've been neutralized. that is clear to me.

the biggest concern i had is that if you're going to see post-apple, the concentration of performance taking hold again. it has not intensified to the degree that i thought it would, because it seems to be right now apple and nvidia are the names of choice. >> joe, we will see you in just a bit. you will hang around. thanks, we will see you soon. now let's bring in rick rieder, blackrock cio and head of the global allocation team. it is good to have you back here. your thoughts on stocks at record highs, what are they? >> some of what joe said. people don't realize $110 billion of authorized stock buyback. the average is $65 billion. they are buying two average sized companies per annum. that is staggering. i was looking at the new zealand

stock market and it is like $90 billion. what they are doing is incredible. i looked at four of them and they are buying back $320 billion in stock. the ipo calendar is $13 billion. the technicals are staggering. listen, i think the earnings, the revenue and sales wasn't that good. talking about retail and consumer, wasn't that good, but the earnings are good. stickiness to margins, the software development, a.i. implementation, et cetera. earnings are still pretty good. i know i talked about a bunch of this. people underestimate. you have incredible technical inequities and are still throwing out 18 or 19% for the average company. pretty impressive. >> you were on with me around the time of the april low and i asked your views on the markets and you said plainly equities are going higher. what made you so sure and is it earnings? >> i have learned in my career,

sometimes the hard way, that technicals matter arguably more than fundamentals. when you buyback that much stock and think about just normal, $9 trillion in money sitting in cash. the normal wealth creation. the technicals are pretty good. the other side of it, there is moderation that you are seeing in the consumer, but when you talk about this earnings, this persistent rov. think about the equity market. functionally taking the top line revenue or gdp of the economy and running at 4.5 to 5% and it is a machine throwing off terrific earnings. i still think it is going higher. is a multiple too high? i think so, but i think you will work your way through it quickly. >> how much more? what makes sense? >> what would you do in a

balanced portfolio today? could you get another 10 or 15% of the equity market this year? i don't think it is a stretch. >> 10 or 15% not much of a stretch at all and that is because of continued earnings power along with the other levers that we have seen it play? >> i think it is the buybacks and the fact that earnings are good. i think as you get to the back half of the year there is an incredible focus. too intensive about where the interest-rate is. my sense is that we are moving to a fed that is putting the bar high for interest rates and would like to get a cut in. when people see that you will get another push in terms of the equity market. i'm not saying jump all in, but i think you can build a balanced portfolio. i would hold equity for the next couple of years. >> do you think cuts matter at this point? >> so i have looked at companies for almost 40 years now. companies are not sensitive to

the interest-rate move. most companies turned their debt out. companies are sitting on a huge amount of cash that are benefiting from these interest rates. the places that are cyclical parts of the economy, you have seen pressure. you are seeing that in the consumer. companies are much more insensitive to interest rates than ever before. listen, markets will react to it. if you start to get those, markets will react. people will be surprised that if rates stay where they are, the equity market can move along. >> is that one of the surprises, expectations or fears that if you keep rates as high as they have been for as long as they ave now been, that ultimately you would have corporate rollover? they would fall under the weight of these heavy and high rates. you are suggesting counterintuitively that they have worked in their favor in some respects.

>> extraordinary. think about where we have come from. since world war ii the largest transfer of money from the public sector to the private sector. massive amount of money that flowed through to households and corporate and you kept interest rates too low for a long time. companies turned that up. i think it is funny when people come on the show and say gosh, if we go to 3.5%, the equity market can't take it. it is just not that impactful. think about the mag seven. they fund through cash flow generation. they do some borrowing to make sure the balance sheet is right, but they are funding what they do through cash flow. i think it is grossly overstated. much of the economy is benefiting from high interest rates. you see that from the interest coming in. >> it is significant when rates are at 5, for example, then they dip below 4 and make a

march back towards five. that was concerning. it was the fed chair who sort of calmed the markets and if you look at the 10 year, it is down substantially since the day that powell came out and basically took the rate hikes off the table. >> listen, rate of change. there was a scary moment when the inflation data would continue to accelerate. i did not think the number yesterday was fantastic. i thought it was pretty much expectations, but we have been running for three months with higher levels of inflation and service-level inflation. we are still running six month average at 5.6%. still pretty high, but the rate of change is in a better position today. listen, if we start to get numbers that show acceleration in service inflation, then it gets concerning. could the equity market dip on the backside of it? for sure.

i like the ability to generate return and the technicals. >> when you think we get the first cut? >> i think the fed would like to get cuts in. small businesses hurting. it is very clear that low income is having a tough time. credit card delinquencies, loan delinquencies, charge offs, et cetera. it is very clear you are putting pressure on low income. i think they would like to put cuts in this year. i think there is a 25% chance you could start moving in july. you need a couple of months of good data and by the way, when you look at the employment picture, which chair powell talked about in the press conference, look at the jolts of job openings. you see the rate starting to come off a bit and now it is holding up payroll is healthcare and education. the cyclical components are coming off, so i think there

will be a window to do it, but i would not bet my portfolio on them starting cutting. assuming you will be here for a period of time. >> you think the other under customization was the spending power of the baby boomer cohort. rates have been elevated, so lower income and younger consumers hurt more. wealthy consumers and baby boomers hurt less. all of the money and money market accounts, turning over 5% and that leads to more investable income. >> i think if you break down the numbers, exactly what you described. think of who owns the debt and who is the borrower today? lower income younger people. that is who is hurt by the spike in rates. what is happening because of demographic evolution, the population has aged and because

of the massive dividend from the government, higher ncome and the older population are net savers and have gotten this huge boost. when you break own the aggregate spend in the country and break it down by income cohort and age cohort, you see something i've never seen before. obviously the high income cohort is spending a tremendous amount. service inflation is hard to bring down because everyone is spending on services. also the age group over 50 years old is becoming the largest cohort of spending today and you have not seen that before. those are the ones benefiting from these rates, so that is pretty amazing. the point i would make, it is ambiguous to me at best. by keeping that rate high, that you are bringing down inflation, because you are seeing this income flow through the system. >> that's interesting and you don't think the spinning power is going to slow down and by the way, the investing appetite and having liquidity to do it

for all of the reasons you said. when does that start to slow? >> it is interesting breaking down these earnings reports. there was no ambiguity around low income. this great report showed 35 companies and everyone of them, big retailers, lower income, lower income, more promotion, couponing, et cetera. you are definitely seeing fatigue out to middle to higher income. is it moderating a bit? there is definitely fatigue across certain businesses in the higher income. when i am impressed by this not seeing a lot of fatigue is in experiences. whether it is hotel -- >> cruise lines. >> cruise lines are super impressive. airlines in the higher income strata are still doing well. at the margin slowing a little bit? i think we are slowing. >> you used the words balanced

portfolio a couple of times. what does that mean in real terms for someone who is head of the global allocation team for the world's largest asset manager? >> i think everyone talks about interest rates to protect my portfolio. i think that is over. think about it if cpi were strong this week, that is not balance. i think today you can build a portfolio. i would still hold 60 equities. i would tilted more to tech, healthcare, cash flowing areas like energy, et cetera and then i would take 30% and put income, high income producing today and high income does not require a lot of risks. running almost 7% yield. >> almost a year ago. >> it has a tremendous amount of inflows because we are building 6.5 to 7% income and running a high rating. if your return target is 7,

owning fixed income, marry that to equities. taken some private credits and alternatives, you can build a pretty nice portfolio. >> you mentioned, i don't know, about eight months ago or longer. in terms of fixed income and where you like best, the belly of the curve i think is where you pretrade what you might do. do you still like that or are there more opportunities that might exist? >> think about the amount of debt in the country. we will go through an election season and it doesn't seem like anyone will be running on let's get the debt down in the country. i still like the 3 to 5 year part of the yield curve. you carry really well and don't give up anything. historically to be a lender you had to go further out the yield curve to get income. you don't have to do it today. i still like the 3 to 5 year point. it is also the fulcrum of when the fed starts cutting. you get some pressure turn out

of it and you think about it. let's say we are wrong. let's say rates move higher. if you build a portfolio in the part of the curve, you make 55 base points a month just in cary. i like hanging there and then we will worry about the election and figure out what to do. >> i was going to ask you that. at what point do you start thinking about the election outcome and policy changes? former president trump already talking about doubling down on tax cuts. you have the deficit issues that exist there. when is it right to start thinking about what your portfolio needs to look like based on an outcome? >> first of all i learned in rock -- and markets they react to the shark next to the boat. i think we still have time. what would you do today when you have candidates with such different views? hard to position the portfolio. volatility in the equity market

is crazy. you can rotate. pure equity exposure into call options. you have downside protection because you are using options, call options versus outright equity. building this idea of balance. both presidential candidates, one seems like it will cut taxes and the other seems like he will spend. i will stay on the front end. i will not deal with the backend of the yield curve. build some durability into he portfolio and look around the world. tariffs will be something you think about. what they will debate. tariffs, china. i want to be really thoughtful about what is my exposure to who is highly sensitive to global trade and obviously china. >> lastly, because you mentioned it, other parts of the world, the exchanges have woken up. the performance is starting to be pretty darn good. does that move you at all to move there? >> it depends where.

i think japan, there was a renaissance in japan and a bunch of ways. money that used to go to china is going to japan. women in the workforce has buoyed real inflation, real growth. india is an exciting region. it is hard to invest there because big cap equity is hard to invest in. >> atf here. >> and then quite frankly i continue to think the u.s. is where technology will be. i like being a lender. i like buying fixed income in europe. you get a benefit, but europe will be slow-growing. europe has to get rates down. we are buying investor grade credit swapped two dollars at 5.5%. remember there were negative interest rates in europe. they have to bring the rate down. i like being a lender and equities in what i call the faster river of cash flow in the u.s. >> that was chock-full of actionable stuff. great to have a conversation with you, rick rieder,

exclusively with us on "closing bell." news out of the tech space now. >> the offer values the company at $12.5 billion, a premium from its last valuation, but below the $20 billion acquisition offer that it will be made in 2022. that deal, our audience might remember, was called off six months ago following regulatory scrutiny. the new offer allows employees and investors to sell their shares, should they wish to, but does not raise new capital. figma expects the size to be between $600 million and $900 million with support for current and new investors. including kleiner perkins, some of the most well-known names. i just met with the figma ceo down the street at their headquarters. ceo dylan fields said they did not stop, rather they doubled

down on their vision of end-to- end software development. private markets are still a place where you can do offers and a lot of deals. >> activity in the market and the private markets. thank you. let's send it to kristina partsinevelos now for a look at the biggest names in the clothes. >> the european commission is investigating whether meta- stimulates addiction in children and creates so-called rabbit hole effects. the commission is also worried about risks related to the recommendation algorithms. the biden administration announced it has taken the next step to classify marijuana as a less dangerous drug under federal law. this potential new rule would codify that marijuana has medicinal value and is less dangerous than previously thought. pot stocks on your screen, all higher. canopy up 14%. >> appreciate that. we will see you soon. kristina partsinevelos. just getting started here.

j.p. morgan and goldman sachs hitting all-time highs today. we will breakdown the moves after the break and later we will set you up for earnings. take two, one of the big names reporting tonight. we are live at the stock exchange. "closing bell" is coming right back.

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for veterans and military families has empowered more than 200,000 veterans to serve their communities and their careers. from professional certifications, to job training, to help navigating programs and services, we give veterans access to support from anywhere in the world. welcome back. goldman sachs and jp morgan hitting all-time highs today. joe terranova is back here to discuss. good to see you. we hit these levels, now what? new highs quite often for goldman and jp, now what? >> let's get to the headline. i think j.p. morgan has another 2% -- another 10% to it. goldman sachs has another 10% to it, so we are talking about above 500.

we took our exposure to the financial sector there above 20%. we had exposure below 10% for a better part of year from the first quarter of 2022 to the end of 2023. now we are increasing that exposure and i think what you'll see is we have a more cost conscious consumer. let's look at the yield curve and you will see the steepening. the long end of the curve will stay high. the front-end will come down and benefit a lot of the money center banks and asset managers. goldman sachs and j.p. morgan, they are best in breed. goldman sachs has repositioned themselves. executive management has done a phenomenal job in shedding the businesses that are not working under focused on the businesses that are. it is the capital markets, the advisory business and the investment made in technology the last several years. it is coming to fruition.

>> that was a lot. 23% is a lot. a lot of exposure. it is especially leveraged to the space given your strategy. you have to wait things out to see how things move. the space over the last month as a group is up 7%. it will really continue. you call it the sweet spot. >> i think it is. look at the activity in the insurance industry. whether it is progressive, hartford, jabba. we have recommended it on halftime report. my final trade multiple times. >> the secret is revealed. >> they are watching the halftime report. >> they are listening to somebody, because that was their secret, the position they had been building. >> we know that is where the pressure is. private equity is there as well

and we have ownership of apollo. ownership of kkr. those private equity companies have the exposure to insurance as well. insurance is a popular thing. asset manager making a return. more recently we added the cme. the exchanges are benefiting from an overall capital environment, capital market environment that is very favorable. >> why have private equity stocks in general, that group, off to the races? if you look ack six months, 12 month chart of some of these stocks, they all look up and to the right. why is that? >> first of all they ave the flexibility to take advantage of distressed situations that individual investors can't take advantage of and they have done

a remarkable job doing that. i like the exposure, as i said before, that they ave had to the insurance industry. going beyond that they are able to capitalize on exposure to growth areas of the economy with less pressure, less pressure on having to sell out of those companies. they are able to ride through the volatility that we know the markets deliver. >> kkr is up 118% over 12 months. that is why i bring it up, ut those stocks look similar. 81% over the last year. so your point is well taken. thanks, joe terranova. up next we are charting out the rally. vying for another record close today. jason hunter breaks down his technical take and tells us where we go fromer he. we will do it next.

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welcome back. stocks making fresh record highs today. j.p. morgan's head of technical strategy, jason hunter, once this could mark a terminal phase for the bull un. good to see you again. why isn't this confirming that the next leg is upon us? >> if you look at the rebound we had from the initial target zone when you saw that march and april build. the markets have rallied and

carry inertia again. these new highs are not confirmed by momentum. we think we are seeing starting march and april, that acceleration, the pullback and now a push to a new high. if the market can't sustain these highs, we suspect the market will stall out. a pullback that breaks the 50 day average. we think you have to take that very seriously. ultimately the entire first half of the year. let's call it a range between 5050 300. it is hard to have conviction in that until you see the price action develop, but that would set momentum divergences on the lower frequency charts. the time frames that are in place. that would set those signals given the curve inversion that tends to mark the terminal phase like we said earlier this week. >> there is a lot of potentially end maybe. i'm wondering why wouldn't the market be able to sustain this

move? there is a lot of suggestion that it won't be able to handle that. why? >> again, taking a big step back and looking at the contextual data, the yield curve. inverted now for 18 months. if you go back to the 1960s, leave out the 1970s when the monetary policy was so volatile that the equity market followed the yield curve. if you look it was roughly and 11 223 month lag between curve inversion and peak before you got a bear market associated with a recession. we are 18 months and now, right inside that window, so that is where you start to look for problem areas. we are not aggressively saying to short the market right now. on a near-term basis until we see that -- as long as it is above 5150, it still carries bullish momentum. we are not saying aggressively go short, but if you see that

and get a break below the average, i think it is something you need to take very seriously given where we are in the cycle. >> i understand, but if we obsess over the inverted yield curve for the past 18 months, we would have missed the entire bull market. we would have missed the entire thing, because if we had an inverted yield curve for that long and all we talked about is whenever you have an inverted yield curve, well, got to watch out. going to have a recession. don't be too bullish. taking out these higher levels and still talking about an inverted yield curve. >> like i said, once you cross the 11 months in. when you look at when that was ahead of the peak, that was the covid recession. i think you can take that away. it is really 15 to 23 months in that time window. now at 18 months we are in that

window. it wasn't the entire period that you look at the yield curve. like i said now you have had monetary policy and restricted territory for quite a while and the pattern is the pattern. historically when you get in this window, that is when you see markets decelerate, form distribution patterns and rollover. >> i understand, but i think it is important to point out. i will give people the fact that you don't have a recession without an inverted yield curve, but an inverted yield curve doesn't mean you will have a recession. it is not one and the same. so you can have an inverted yield curve for a long time and not have a recession. that is why this time, for a variety of reasons, i know that you get killed for saying stuff like this, that it actually could be different. >> sure it could. the times you have had the curve even marginally inverted without a recession was the mid- 1960s, where the curve barely got inverted and immediately

started to move in the other direction because the fed eased aggressively. the other time was the 1990s. marginally inverted and the fed started to ease. if the fed throws caution to the wind and start seizing aggressively, sure that changes the picture. the curve is not just inverted, deeply inverted. it's been that way for a while. the times when you had that cycle slowdown it was very marginal. barely below zero and was not there for long before the fed started moving in the other direction. this time could it be different? sure, it could. i think that is what the markets are trying to say. we will wait for the pattern to show up and the break to happen before we execute on that. right now it is something to watch closely and be mindful of. >> jason, we will talk to you soon. thank you, jason hunter of j.p.

morgan. up next, we are tracking the movers. >> could it be, amd a better stock pick than nvidia? i will explain that argument and more, next.

we are less than 15 minutes from the closing bell. back to 1019 for the stock that

she is watching. >> move over, nvidia, analysts want amd instead. they think shares have climbed a lot, while amd could see a bounce from its new launch later this year. shares up 2%. canada goose earnings were more than two times greater than expectations. enough to offset the fact that the code maker withdrew long- term targets amid more challenging consumer spending environment that has caused the direct to consumer and wholesale business to not have performed according to expectations and yet the stock is soaring 16%. scott. still ahead, sparking recession fears after weaker than expected guidance. we dig into what it might mean coming up and as we move out we look at the major averages. we are all trying for another record close. dow, thiwis ll be a fight to the finish. we are back after this.

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coming up next, we set you up for earnings. take two is hitting at the top of the hour. we will tell you what to look for in that report when we take you inside the market zone, next.

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we are now in the closing bell market zone. here to break down the crucial moments of this trading day and the post earnings sell down of deere. mike, i turn to you first. anything positive anywhere? a new record high. your thoughts on the dowi think suggest we had a completed scary and what was that about? it was, are we no longer in that really comfortable, midcycle type environment? all it took was bond yields going to 470 and a wobble in the index and we went down 5%.

now we have this sensibility that it was probably a false alarm. we are back to where we were. i think the fact that the banks continue to rally is very positive. the markets continue to rotate. it is hard to bet against it in and out right way, but we are back to these levels where it will probably take a little more. >> i still hear people trying to ring up 40 k and go away, like it is marking a top in the market because of the kind of number that it is. >> i wouldn't say because of the number. we hit 30,000 in november, 2020. when top an immediate 10% from there and held it until the bear market of 2022. it is not as if's people want to lock it in. it is a reminder of how far we traveled and that markets are at new highs, but that should suggest to people that things are positive. >> all right, seema mody, what

is happening with deere today? >> on the conference call they talked about inventory management, cost to discipline and the impact of falling crop prices. it is holding farmers back for making big purchases of tractors and combines. we also got a read on the consumer with mentioning that lawn equipment sales were down due to higher interest rates and that follows several years of strong demand. the company cut its guidance for the second time this year and the stock, one of the better performing over the past couple of years, now a keylogger. executives seem like they are focused on reducing cost. the other big topic was de- stocking, a similar trend we saw at caterpillar a couple of weeks ago. you will see shares are underperforming so far this year. scott. >> good stuff. seema mody, thanks for that. steve kovach, tell us what to

look for. >> take two, not immune. lots of layoffs that basically every major company. they cut 5% of the workforce, about 600 people. it is ll so they can focus on bigger, moneymaking gains and of course that means grand theft auto. there have been stock fluctuations over the quarter, based on really thin rumors. that grand theft auto 6, the next game, could be delayed, though the company is sticking with its 2025 window. we will pay attention to more precise timing on when it could launch and also could show up in the guidance as take two wraps up its fiscal year 2024. >> think you for that. less than two minutes to go, mike, so what do we need to turn our attention to now? fed to speak doesn't seem to move the needle too much. rates, we will keep an eye there. >> you are right, the fed rhetoric is now more the same.

i think it is about the pace of economic growth. it is not really about every wiggle in yields. i mentioned the index. it is pretty much as negative as it has been since 2022 or 2023, meaning we are decelerating relative to expectations. weekly claims and the ism well maybe start to matter more, but to your point the reason we are at 12.4 is because the market doesn't see a lot of the big threats. we made it through with a lot of things that could have knocked this off course. they have not done so. we have nvidia earnings next week. it will matter quite a bit. we are still in this mode of asking ultimately what will be the payback of all of this a.i. related capabilities. who is getting paid on the other side? we will see if we get any enlightening on that. >> pretty amazing to hear rick

rieder say 10 to 15% more out of stocks this year, not out of the realm of possibility. sticking out like a sore thumb. >> the market is up 20% in the year. >> all right. i will see you tomorrow. well, minor moves for the major averages today, but earlier in the session it sent the dow about 40,000 for the first time ever. records for the s&p and nasdaq earlier as well. that is the scorecard, but the action is just getting started. welcome, i am morgan brennan with jon fortt. >> coming up, earnings from applied materials and take two interactive. we will bring you those results and reactions. >> plus, the company hosts investor day and r