year there's a lot of operational problems here. >> yeah. >> it's sad. y it used to be a great place. >> thanks for watching "power lunch," everybody. appreciate it. >> nasdaq higher big week tore technology. >> nvidia. >> starts right now. >> thanks so much. welcome to "closing bell." i'm scott wapner live from post nine of the new york stock exchange this record run for your money and the so-called everything rally can keep going we'll ask our experts over the final stretch including erin brown who will join us in just a second take a look at the scorecard with 60 minutes in regulation today. nasdaq is leading. nvidia back to $950 a share. a couple days ahead of its earnings apple not far away from a new high as its comeback continues wealth financials are in focus,

a new high earlier today for jpmorgan, holding its investor day today, ceo jamie dimon says no buy backs at these levels and the stock didn't like that and said he was, quote, cautiously pessimistic about the state of the world right now. we'll discuss coming up. it takes us to our talk of the tape, all that continues to rally and if it's a sign that more gains are on the way. welcome in pimco's erin brown. nice to sea you on the east coast. >> nice to see you as well. >> this everything rally pretty amazing. does it continue >> i think it does as we heard from the first quarter earnings season, strong earnings across the board. what's important to keep in mind you see an inflection and broadening out not just technology leaning in terms of earnings recovery, but it's broadening out to more sectors as well. yes, we're trading at highs on the dow, close to highs on the dow, you know, same across most indices, but i think what you'll

see as we move through the rest of this year this broadening out will drive more flows into the equity market and start to see real participation from more of the cyclical sectors of the economy. that i think is encouraging over the last couple weeks has been to see the metals, mining, industrial companies now starting to really lead. and we're starting to see that i think be more of a driver into the second half of the year. >> over the last six months to your point about the metals, right, copper up 32%, silver 36, gold 22. which parts of the cyclical trade do you really want to lean into because all parts of that are not necessarily created equal. >> exactly and so the precious metals have done well. copper has been very much an ai story. gold has been i think driven by some flows out of other safe haven currencies into gold what i think now we're starting to see is more of the industrial metals start to inflect more

positively some of that is on the back of a thought that china is bottoming out, starting to lean more heavily into the infrastructure investment because property sector is continuing to lag, and so you're starting now i think to see more of a real play for the industrial metals and commodities and i also think that it lends itself to the industrial companies as well i think that's where the next leg of this trade is going to be not to say that the precious metals and copper will lag, but i think you're going to see more participation from the industrial metals as well. >> we have year end targets going up seemingly by the day. when you're at 5300 and change on the s&p you start to get targets ratcheted up 5500, 56, 57 how much more do you really think is possible this year for the s&p 500? >> i think mid single digits is likely possible this year but certain sectors i think can really do quite well

i believe going into the end of the year getting 5% on the s&p 500 is a reasonable amount to further go, just given sort of the progression of earnings, you're still going to see the quality, the large caps i think outperform i think the small caps are still hindered and so while yes, you're going to see, you know, 5% on average, there's going to continue to be the bifurcation in the market. >> you know it was pretty eye opening when rick rieder was here, blackrock, last week and suggested you could do 10 to 15% more this year because earnings are under appreciated, and some of the benefits from higher rates on a certain cohort of investors and spenders when you hear calls like that, from somebody in a shop like that, do you think that could be sn possible >> certainly possible. i think the challenge is we've come a long way in a short period of time and i think there's going to be some consolidation before we get sort of a strong back half rally and i also think that, you know,

we're at a point now where the consumer is weakening. >> parts of it. >> parts of the consumer are weakening. the luxury, the large cap, the, you know, sort of upper tiered consumer companies are doing quite well, and i think they're going to continue to maintain that leadership position but you're starting to see weakness around the middle and even especially on the lower end consumer, so that's i think somewhat halt at a 15%, you know, upside from here, but that doesn't mean that certain companies can gain 15, 20% from here i think that that's very possible you really have to be more careful about picking your spots. >> i think, you know, with the point that you would make is that, you know, maybe you're just at the beginning of picking up on what could be a really nice earnings growth story beyond the large cap tech stocks which have carried the load. the bar had come down so much coming down into earnings season what if we're at a real

inflection point where you could get a meaningful pick-up in other areas of the economy, the likes of which you're talking about? >> the market is pricing that in for 3% growth in the first quarter, 10% for the second and third quarter and 16% for the fourth quarter the market is pricing in the earnings inflection. what it would take from here is to see further growth, more than double-digit earnings growth in the second half of this year. >> is that when you talk about the multiple, people try to, you know, make the argument that at these levels, stocks are expensive, right, valuations aren't cheap, but if you do have the kind of earnings growth that some suggest you do and you have rates continue to come down on the expectation of rate cuts at some point this year, you need those two to play into that story? >> right that's where the market may be disappointed on the rate side. i think so earnings are going to be robust, but the market right now is pricing in two earnings cut this year i think that's a high bar and likely get at best one rate cut and there's a potential that we don't get any

rate cuts this year and so as the market starts to come around to that view, i think it does limit a little bit the upside. still a good environment for equities but probably caps the upside somewhat this year. >> you think there's a chance of zero cuts? >> i think about a 30% chance. >> what would the market look like if that happened? >> well, i think then that continues to weigh on the small caps it continues to weigh on anything that is yield sensitive. look at the trading today. you saw china under performing you saw evs under performing staples under performing anything with a yield component, but biotech notwithstanding, anything with a yield component under perform today. i think the market is going to continue to differentiate between those companies sitting on a lot of cash that can reinv reinvest that versus companies highly levered and have constraints because they don't have growth equity. >> bring in courtney garcia pain capital management at post nine

and a cnbc contributor and our senior markets commentator mike santoli is at the desk as well you've heard the conversation thus far, agree? do you still feel like it's the right move to stay bullish and think a lot of things can continue to rally? >> absolutely. the most important thing we did come off a good earnings season but forward looking the earnings expectations going forward are looking more positive. when you look at the consensus estimates for earnings and revenue it's -- the profit margins, 14% two years from now and all of that leads into why you want to be in the equity markets because investors are drawn to the 5% yield on money markets and cash but don't forget your a paying taxes on that and not going to get the kind of returns you are in the market if we have a bull market and we're flooil that likely in that. >> we're going to be disappointed on the earnings front and that's going to further question the multiple and cap the kind of activity that deutsch bank says 5500 you can continue to ramp to numbers

like that. >> and i think certain parts of the market are expensive people have talked about mega cap seven are getting more expensive. is that justified by the revenue from ai when that comes to fruition is the question we have plenty of areas that are under valued compared to the markets. still looking at energy, international is significantly under valued compared to the u.s. the argument what's going to happen to small caps this year if interest rates come down those will benefit and they are under valued compared to your larger cap companies plenty of areas to add to. i still want to own those big seven companies in the s&p 500 but as i'm deploying cash there are other areas of opportunities. >> we'll be reminded why we put money into nvidia back at 950 today or going to perhaps start to see a story that doesn't look nearly as good as has gotten us here. >> i mean, part of the fixation on nvidia it makes me uncomfortable even though it's justified. in other words, what happened

last quarter i was sort of downplaying it going into it and all of a sudden it was the thing that mattered that you got the uptrend in february. we haven't had -- we had two days all month when nvidia has moved less than 1% this is the third biggest stock in the world and nobody has a good enough fix on it to really feel like where it should be this jockey is going to happen on this ai wing of the market. meanwhile, there's all these other themes that seem to matter right now. i want to talk about the reflation type trade that seems globally driven. one other arm of things. and then, you know, goldman sachs was making new highs until today. this idea in the capital markets financial conditions are still pretty loose you have volatility in credit spreads at multiyear lows. to me it's pretty strong underpinnings. the market finding its way to stay supported even if every time we've gotten into trouble in this market the last couple years because everybody kind of all of a sudden believes the soft landing thesis and nothing can go wrong.

i'm not sure we're back at that yet. i question if a 5% wobble in april was enough. >> jamie dimon, you know, wonders still whether people are too optimistic on the soft landing trade. not to mention that, you know, that stock, jpmorgan, hits a new high today, then it pulls back, you know, they're having their investor day, he suggests i wouldn't buy back a lot of stock at these levels like he's calling a top on his stock because he can't believe how much the stocks have continued to run what do you make of his commentary >> i think he's being pure department and in the past he's been cautious and jpmorgan continually outperforms relative to expectations. i do think, though, that if you're betting on financials doing well because the fed is going to be an aggressive rate cutting path you're going to be disappointed and typically we see historical rate cutting cycles 200 to 250 basis points we're in the mid cycle ajudgement and likely see once the fed does start cutting rates, probably only 100 or 125

basis points financials, you know, if you're expecting that, you know, you're going to see a significant move that's not going to pan out the way people are expecting we talked about higher capital charges. there's a lot of things in the next administration that could hurt financials. >> we'll have more with mike mayo who covers that want to have a debate about small caps, whether now is a good time or not, you make the case for, you make the case against. >> small caps, i think a lot of people don't realize they have been outperforming the s&p 500 since the lows in mid-april. when looking at the expectations your small companies have higher expectations than large cap companies do you're looking at something that is under valued compared to its alternates and the expectations of where the revenue earnings are going is higher. i think that's a recipe for something you want in your

portfolio. not to say i'm getting out of large cap and into small - >> i would take the other side and i think that small caps right now are still very reliant on access to easy capital, and easy financial conditions. i think financial conditions are going to stay tighter for longer. >> rates coming down >> rates coming down there's also a bifurcation in terms of what you're seeing in credit spreads for, you know, high quality, large cap companies versus small cap companies that are highly levered. i think the bifurcation will continue to widen like you're seeing a bifurcation on the consumer side between the haves and have nots you're going to increasingly see rates start to bite the lower -- the smaller cap companies increasingly as the fed stays higher for longer even if the fed does cut rates they're not cutting down to neutral. they will be running persistently above neutral and

have to cut 250 basis points to get back to neutral. they're not going to be doing that this cycle. rates are going to be quite restrictive, particularly for those smaller cap companies and don't run with the same cash flow and not sitting on the same balances they're able to reinvest another negative relative to large caps i want to stick with quality and large caps. >> the russell is 8% over the last month. >> obviously, it got hit harder on the way down and that's usually the way it does go i think that it is going to trade to a large degree on fed rate cut expectations and not just because of they're a little dicier, they are, but their credit costs are much more bank loan oriented. in other words that's where the rates are set is by the fed. the prime rate borrowers, they're spread over, so it's not just sort of like oh, the atmosphere is better because we're cutting rates. it goes to their bottom line if they cut rates.

that being said i don't know that the long-term mean reversion call on small caps is the one i would pay more attention to you know, we're talking about ten years you've seen just historic under performance over that period of time by small caps over large. you also can have the russell rebalance, it's coming next month and kind of mind numbing what the whole permeations of that are one thing it's going to do is clean up the index a little bit and it's going to graduate out the big, volatile stocks still in there, like super micro and get maybe a cleaner look at what this index is. >> it scares people because the volume of regional banks that exists within the russell 2000 and the small cap universe which to erin's point as long as rates remain as elevated as they are and rate cut projections continue to come down or stay static where they are now, doesn't that put a bit of a capp on the performance of those names? >> i think it does in the short term, but i think this is something i'm looking at the longer term. with rate cuts, the idea that

still is going to be the next move is likely down. at one point we started to get nervous -- i mean the markets were getting nervous about a rate hike and that was pessimistic and rates are going to come down here. so i think this is something you do with a portion of your portfolio if you're going to be in it. you want to be in before, not after. hard to time that. at some point that's going to turn. >> the other thing to discuss is this idea that it's really time to look elsewhere perhaps europe or these other markets where you are likely going to get central bank activity before our fed moves and cuts you're likely to get rate cuts elsewhere before you get here and you think that could be a big snoounts i think the boe, ecb and bank of canada will start cutting rates this summer, so june or july they'll start cutting rates. not only are you going to get a faster path for rate cutting but also a deeper path for rate cutting once they start cutting.

so because you're seeing more disinflationary trends in those economies more firmly entrenched and didn't have the same fiscal stimulus that kept inflation elevated and not seeing the same immigration challenges to the same extent or as deeply, all of those factors i think will lead to faster rate cutting cycle that means it's now time to start looking a little bit outside the u.s., broadening out the scope and expecting that global growth will start to inflect more positively. the u.s. we still think will be exceptional but expect to see convergence at least this year with respect to u.s. growth and the rest of the world as those central banks start to cut which means that those equity markets look more attractive i have not been invested -- i have been invested in the u.s. as an out performance trade versus the rest of the world and now excited about markets outside the u.s. europe is starting to look interesting, european cyclicals, to some extent, the uk as well,

but i also think those markets, you know, you could start to see the more large open economies start to really rebound and play a little bit of catch up with the u.s. >> you do have to sort of think about, too, as the other central banks perhaps move before the fed the pressure it puts on the fed to make moves of its own the delta doesn't like to be too large between central bank activity, especially when you're talking about developed nations. >> typically not usually the fed is kind of calling more its own shot space in the domestic economy. the thing that would maybe unsettle things is if the dollar were to rip, go to new highs or something like that. >> that's one of the potential fallouts. >> it is right now it's tame. it's not necessarily out of balance in terms of where things are. there's a push/pull here i think on things affecting the dollar global growth getting better seems to be doing -- benefit to other currencies yeah, i do think it creates a little bit of flux in the policy path but not necessarily in a

negative way i mean i think that the longer you have to wait for a first fed rate cut the longer you're on pause i keep saying this is a long pause, ten months the fed has kept rates steady at cycle highs. that suggests with the economy growing above trend and inflation going down that's not a bad policy setting see the way clear to keeping it there for a while, you don't want to see inflation go up, but it's not terrible to have to wait. >> assuming they are able to continue to have the luxury. >> exactly. >> of doing what they're doing. >> that was fun. mike, see you back for the last word for sure. erin browne, courtney we'll see you soon to kristina partsinevelos now for a look at the biggest names into the close. >> thank you shares of norwegian cruise lines are soaring after the company lifted full year guidance and better than expected earnings. operator said it continued to see strong demand and record bookings this year and that rosy outlook lifting shares of carnival and caribbean up 4%,

norwegian up 7%. good news for target shoppers. the retailer announced it would cut prices on about 5,000 frequently shopped items like peanut butter to coffee causing shares to drop 2%. the company hopes to help consumers, quote, feeling pressured by high pressures and expects to unveil more price cuts in the summer sdmoths. >> kristina partsinevelos we'll be back to you. >> mike mayo, he's going to tell us what stock he's now calling the nvidia of banking. and later, get you set up for earnings in o.t. with a big name, palo alto. and that reports in overtime wa what to watch for and give you a rundown of everything. we're live at the new york stock exchange you're watching "closing bell" on cnbc. it's odd how in an instant things can transform. slipping out of balance into freefall.

i'm glad i found stability amidst it all. gold. standing the test of time. the future is not just going to happen. you have to make it. and if you want a successful business, all it takes is an idea, and now becomes the future where you grew a dream into a reality.

the all new godaddy airo. put your business online in minutes with the power of ai. (grunting) at morgan stanley, old school hard work meets bold new thinking. (laughter) at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. new world ideas. morgan stanley.

>> shares of jpmorgan fall after hitting a all-time high in today's session jamie dimon saying the bank does not plan to buy back a lot of stock at current levels. >> let me make it really clear, we're not going to buy back a lot of stock at these prices and i -- we do not consider stock buyback returning cash to shareholders that's giving cash to exiting shareholders i look at this as cash in the store. whatever you call the number it's going to sit there until we can deploy it at good returns. buying back stock as a financial company in excess two times tangible book is a mistake. >> joining me at post nine to discuss is mike mayo of wells fargo. so we don't need to get into the reasoning to buy back stock or not. let's get the price, what he said about that. i'm not going to buy a lot of stock back at these prices what do you make of that comment specifically because it does speak to the

fact that it did hit a new high today. >> well, i think jamie dimon is borrowing the phrase from warren buffet be fearful when others are greedy i asked that question and said are you smarter than the $7 trillion market he said spreads are too heitight, you need to b more cautious. i like jamie dimon has a healthy paranoia anything can hit you when you run a big bank i think investors are frustrated saying if they're not buying back the stock at this price and jamie dimon is selling stock, why should anyone else bite -- by the stock i see this as otherwise a solid long-term company. >> it does speak to the fact that goldman sachs sitting at a new high today, the stocks have been on a tear is it time to sit back and say it's been too good in this space? >> no. i think the stocks are just getting going. i mean, jpmorgan's investor day

which ended a couple hours ago was very positive on capital markets. they guided higher today they were verypositive on credit quality, credit card losses are below where they expected also very positive on excess capital for buybacks, not for jpmorgan jpmorgan's investor day was bullish for citigroup. >> other than jamie dimon himself? >> exactly bullish on citigroup because citigroup is big in cards and capital markets. they have excess capital, and you know what, when you trade one third the price of jpmorgan and you can buy back stock that was bullish for citigroup. thank you jpmorgan jane fraser should send a thank you note to jamie dimon saying thank you because your theme support our stock. >> when jamie dimon says i'm cautiously pessimistic that's jamie being jamie and in your mind there's not that much to be pessimistic about when it comes to his business? >> i think jamie dimon is worried about the geopolitical

risks and debt levels of government and things that happen to go wrong with the tail risk overall but what you're seeing in jamie dimon's numbers overall were fine, were good and he's worried about the kind of three sigma event. >> so the nvidia of banking you always have a way with words and you're talking about jpmorgan? >> the one number that stood out from jpmorgan's investor day today. >> gpu sales >> no. $17 billion of tech spend. $17 billion. that's a record. no bank has ever spent $17 billion on tech in one year. that's equal to the total expenses for the eighth largest bank that's what jpmorgan spends on tech alone. spending it on ai and digital banking and modernizing the back office trying to be the preeminent digital bank 2.0 the next version of banking where you create new product services,

relationships and engagements that were previously unavailable in analog form jpmorgan is at the forefront for being that digital leader. it's just that jamie dimon hasn't internalized that to become a tech company. he considers himself a bank, and i'm wearing my tie again, back to being a bank analyst. not a tech analyst. >> your favorite name right now in the space is still citi >> my top three names are citigroup, citigroup, and citigroup. >> really? >> absolutely. >> why why not -- why isn't goldman sachs in that mix? >> citigroup has a component of the capital markets, which are doing better than expected. >> you don't think goldman sachs' capital markets >> i recommend goldman sachs it's done well citigroup is still trading at a 30% discount to tangible book value. this is my fourth decade doing this used to be you would go to tangible book value te depths of a recession. they're at a 30% discount and we're not in a recession. >> because they had to do a restructuring for the most part,

as jane fraser came in and made that her thing. >> and they just finished a watershed seven-month simplification during which many said citi would blow up and lose revenues and people and guess what they exceeded expectations in the first quarter as much as any bank and they're on track to have the best 2024 guide for revenues and expenses of any bank in over three years we expect earnings to double, only one other bank can get above 50%, goldman sachs citigroup is far and out our number one pick. >> moynihan sitting somewhere -- mayo, what about us? what about me? >> number two. >> you said one, two, three was citi citi citi and -- >> number four then. citigroup is in a league by itself in terms of fundamentals and the incremental improvement but if you force me to give you a second name it would be bank of america with the ceo. he's chomping at the bit to buy back his stock talk about a difference or dichotomy between jpmorgan and bank of america. one wants to buy back their

stock, bank of america, the other says i don't want to bite back here. >> one more quick one, end where we started with dimon talking about why he doesn't like the buybacks for the reasons why some others do do you have a thought on that as it relates to banks buying back their shares if he said i'm going to buy back stock and they made that a focal point, would you say i would rather you use the cash? he seems to want to use it for other purposes >> i think the banking industry using buybacks is better than lending to latin american countries in the '70s or '80s or commercial real estate in the '90s or the tech bubble around 2000 or to mortgage companies and others during the global financial crisis so it gives you a nice extra bucket to deploy your capital to, so it helps to moderate the excess i like buybacks. generally, but not all the time. if he wants to pick his spots. to have a statement saying i'm not going to buy back stock i thought jamie dimon was being

too much jamie on that comment. >> mike mayo, post nine. >> turbo charged market, hbc maps out where he sees this heading next heading next going to join us aerheft tg trading platforms. bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization. and track market trends with up-to-the-minute news and insights. trade brilliantly with schwab. break.

new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. ♪ i'm gonna hold you forever... ♪ ♪ i'll be there... ♪ ♪ you don't... ♪ ♪ you don't have to worry... ♪ so this is pickleball? it's basically tennis for babies, but for adults. it should be called wiffle tennis. pickle! yeah, aw! whoo! ♪♪ these guys are intense. we got nothing to worry about. with e*trade from morgan stanley, we're ready for whatever gets served up.

dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right? got him. good game. thanks for coming to our clinic, first one's free. . >> welcome back. the s&p 500 and nasdaq both trying to start the week with all-time closing highs does this record-setting rally have much more room to go?

let's ask max kettner, the chief multiasset strategist at hsbc global research. welcome back good to see you. >> thank you. >> good to be a multiasset strategist when multiassets are rallying does that continue >> yeah, i think so. what we had last week was this sort of confirmation of goldilocks and really a rally across pretty much everything. when we dig a bit deeper what we can see when we look at treasury yields, 2-year and 10-year, they're back to the levels where we were pre-cpi so it's really the strength in spread products and credit spreads and high yield and i.g. and emerging market debt and equities, u.s. equities, european, japan, emerging markets, it's the strength and risk assets that stand out. i think the reason is very clear, the reason is that the market in april got really worried about this risk off will the fed move to hike again, and

that hike is now gone. it's firmly gone from what we've heard from powell during the last fomc meeting and confirmed last week with the data that next move is going to be a cut and for equities or for high yield or emdf you're long risk asset doesn't matter if the first cut is going to be in june or july or september or december as long as the fed keeps telling us we might not have the confidence yet, but give it two or three months and we'll have it, that's good enough for risk assets to rally further. >> for how long? >> yeah. i think we're going to have a couple months at least, still. it's going to be until the q3 reporting season, perhaps, where i see a couple of troubles brewing because when we look at the q3 reporting season, in the u.s. in particular, that is where expectations are basically shifting away from tech, from the magnificent seven in particular, towards the broader market if growth is on a firm footing,

if growth is fine, but actually not as good as we expected and the earnings growth in those other sectors those other 493 stocks cannot exceed expectations, as perhaps those seven or -- seven stocks or tech sector has done in the last couple of reports, that could be a bit of trouble that's four or five months away. >> noticeably absent from your view on where to invest around the world we showed you, you like japan and u.s europe is not on your list there is a suggestion, we had one from erin browne of pimco, go where the rate cuts are going first? >> i think in terms of europe when we look at europe, most of it has been priced when we look at rate expectations or rate differentials, bear in mind both ecb and fed rate cut expectations, they started the year around 170 basis points now we've seen that divergence

really creeping in, in the last two and a half months, kind of priced as well we've also seen on the long end of the treasury and bund, that there's a bit more of a difference being priced now. both rate being priced i think in equities when we look at the larger caps they don't have a lot to do with gdp. when we look at things like luxury goods or things like drugmakers or even things like ai related stocks in europe, they don't have an awful lot to do with european gdp where i think it really, really is worth a shot is in eurozone small caps because when we start to see now really china stabilizing, we're starting to see also that growth expectations, particularly top down growth expectations in the eurozone are starting to be revised upwards. the only cyclical part of the equity market that hasn't baked that in is really eurozone small caps it's the eurozone small cap

segment that is really, really worth looking at here. the european large cap equity market. >> see you soon. appreciate your time thank you. >> up next we are tracking the biggest movers into the close. kristina partsinevelos is back with that. >> we have another public tech company urged to go private and a call for the bottom in toys and that's moving one company higher can you guess the mena i'll tell you after this short break. he is an “i can solve this in 4 different ways” person. you need clem. clem needs benefits. work with principal so we can help you with a plan that's right for him. you know what i'm saying? let our expertise round out yours.

you founded your kayak company because you love the ocean- not spreadsheets. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire (tony hawk) skating for over 45 years has taken a toll on my body. matci take qunol turmeriction. because it helps with healthy joints and inflammation support.

why qunol? it has superior absorption compared to regular turmeric. qunol. the brand i trust.

>> a bit more than 15 to the "closing bell. back to kristina for the stock she is watching. >> we see that the toy bottom might be upon us this isn't according to your children trying to get you to buy more things but according to morgan stanley analysts who

moved hasbro to a top pick in lee sure because of improvement in the share price and improvement in profitability they believe toys are more resilient in a downtown. shares up over 3%. sprout social on the other hand soaring over 6% on a reuters report the founders in talks to take the social media tools provider private and have formed a special committee to consider doing so this news just comes a week after squarespace announced it would go private in a 7 billion because of struggles and stock under performance. scott? >> thank you very much. >> coming up, betting big on weight loss. one health company seeing gains today following a crucial glp-1 announcement we'll give you the details and do itnext

>> we're back with shares ofs him and hers, health surging in today's session. brandon gomez with what's behind the big move. >> the digital pharmacy announced access to compounded glp-1 weight loss injections starting at $199 a month projects $100 million in revenue in weight loss products by the

end of 2025. one,s him is only offering those compounded drugs these are not fda test ord recommended. but they are allowed because of the current supply shortages that exist the second point scott,s him is playing catch up with row health who entered the weight loss space in december as pricing competitions against big pharma's fda approved drugs continue hims ceo told me they plan to offer access to those drugs in the near future. >> brandon gomez, thank you. >> palo alto reporting at the top of the hour. dan ives breaking down what he is expecting frothm at report when we talk you inside the market zone next

i don't want you to move. i'm gonna miss you so much. you realize we'll have internet waiting for us at the new place, right? oh, we know. we just like making a scene. transferring your services has never been easier. get connected on the day of your move with the xfinity app. can i sleep over at your new place? can katie sleep over tonight? sure, honey! this generation is so dramatic! move with xfinity. ethan! how's my favorite client? great! i started using schwab investing themes, so now i can easily invest in trends...

like wearable tech. trends? all that research. sounds exhausting! nope. schwab's technology does the work. so if i spot an opportunity, in robotics or pets, i can buy those stocks ina few clicks. can't be that easy. it is with schwab! schwaaab! schwab investing themes. 40 customizable themes. up to 25 stocks in justa few clicks. power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis, help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley

>> the "closing bell" market zone commentator mike santoli here to break down the crucial moments steve covac with microsoft's latest hardware announcements ahead of its build developer conference and wedbush's dan ives expecting ahead of earnings in o.t. today. dow is pulling back a couple hundred, any positive close for the s&p 500 and nasdaq new closing highs. >> holding the gains flatish day. something like 220 new highs in the new york stock exchange. only 25 new 52-week lows the breadth of the recovery and general technical condition of the market is one of the best attributes in terms of representing this sort of flow of funds that seems like it is very supportive. i think it is time to say have we skirted the supposed enough

seasonality. people sort of front running what's typically a strong summer for election years really just taking a lot of i think comfort in the fact that yields have done what they've done and coming off the highs, but we have given back about a quarter of that decline in the 10-year yield over the last few days you have to watch it all overall, you have to say, market continues to pretty much win the benefit of the doubt. >> financials are worse today. >> yeah. >> if nothing else maybe ceo of jpmorgan, jamie dimon, just causes you to sort of reassess the performance of stocks like his. >> for sure. and, in fact, you're seeing that in other parts of the market too. stuff that has had a nice run and nothing really fresh is out there, supporting it i wouldn't say it's raising any alarms it's much more about let's wait for the market to get overbought and over loved again and then decide if we need to pull back. >> steve covac is watching microsoft and this big announcement they have

what can you tell us >> this one is all about the hardware part of the ai story that microsoft is going to be telling all week they're calling these copilot plus pcs that basically means the they're running special chips, this is a qualcomm chip, but we're expecting down the road amd and intel to play along as well. basically can do a lot of these artificial intelligence tasks on device, meaning, we're so used to using chatbots and other ai tools running in the cloud, this happens on the device and running updates to windows 11 to add a lot of these capabilities on the copilot side that you can't do on your current pc and most importantly, microsoft says they believe this is going to help drive a new upgrade cycle of artificial intelligence pcs the fact that they gave or the estimate they gave today was 50 million. they expect to shift this year alone, and that is what's interesting here also is the apple part of it they spent a long time or a lot

of time talking about apple, how these devices out performed the current mac book era that came out a couple months ago and showing not only does it perform better, the mac book air doesn't have too many ai software features it can take advantage of all that power that apple is putting in there and so, you know, as we look ahead to wwdc here in a few weeks, a lot more pressure on apple from microsoft today calling them out and said apple, where is your ai. you're behind. >> steve, thank you. appreciate that. steve covac. lucky to have dan ives sitting on the desk. apple versus microsoft reduction from like, i don't know, 40 years ago. here we are again. >> this is going to be a battle, we'll see from apple wwdc. for microsoft and nadella, it's clear, they are in the lead when it comes to ai with you saw it from an openai perspective last week. this is showing what's going into the broader ecosystem i believe this is the start for monetization what could be an

incremental 20, $25 billion annually that gets put into revenue. >> that's the microsoft perspective. what is the apple perspective as far as you see it? >> i think this is going to be a renaissance of growth for cook and cupertino. the openai partnership which we believe is going to be announced, that's the start of it, but going to be an ai app store that apple introduces along with ai coming in iphone 16 this will be the most important event for apple in the last decade. >> you called it a shot across the bow to apple but glowing about what apple will do in its own right, reconcile those two >> i think microsoft recognizes the biggest fear, apple, which has been behind on ai, now starts to go after the consumer. microsoft wants to own that. now i personally believe microsoft owns enterprise and we've seen that from a copilot perspective, but they know they're behind this is an important event for

nadella. >> that's palo alto, a stock you've sat on this desk and called it a table pounder multiple times now it's had a great move. you know, it had an upset and comeback what now >> i think last quarter was a growth transition. this quarter will be a step in the right direction. when it comes to cyber security it's a golden age for cyber security led by palo alto, crowdstrike, and i think this is setting up for what could be just an unreal 2025 from a growth perspective for palo alto that's what this is right here. >> yeah. what -- do you look at the stocks dan is right crowdstrike is the best performer year to date palo alto has done quite well. fortinet the only disappointment. >> it's, obviously, the market loves when it has just sort of a predictable kind of bigger slice of the pie going to one area of software what i've been struck by is the

way the market is basically rewarded the companies that have had these massive capex intentions for ai build. so right now, the market loves people spending heavily on hardware for the next thing. i think it's one of the reasons the market has held up perhaps better than the perceptions of what the fed is going to do and what the domestic consumer economy can do it's because you have the ai boom, the factory building boom for infrastructure, and, you know, semis are 3% from their highs. they're managing i get a kick out of microsoft. they want to stuff all value back into the operating system and know this game it's windows 95 all over again in terms of hey, you're going to have to own a new pc if you want to go on the internet. they're hoping they can score something like that. >> one of our pcs, not one of their macs. >> you're convinced, dan, the transition for palo alto, was really a one quarter thing >> i'm not expecting fireworks this quarter but what i believe

this will be a quarter in the right direction and ultimately to see 450, 500 stock in the next few years, they needed to go for the platformization and if there's one ceo i'm betting on it's nikesh when it comes to palo alto. >> dan ives thank you very much. mike about a minute left as i said, anything positive? anything positive s&p is going to be a new closing high we're talking about this in part because of nvidia back at 950. now a little bit below back to 950. that's a couple days away. >> i think that, you know, there are sort of a cohort, we're not going to underplay this earnings report again obviously, it's grown into the valuation. we'll see where it goes from here, but i was noting how bespoke remarked the nasdaq has gone from over sold to over bought in 17 trading days. that's happened once before. what happened the last time? it kind of went sideways at the end of last year and didn't really have to pull back much. you see nvidia again, just kind

of a rest as opposed to a reset. >> four or five-day stretch where i feel like you had ai days out west. that's been helping keep the stocks stabilized and climbing there's the bell speaking of climbing new closing high, s&p. overtime picks it up >> mixed session as the dow inches below 40,000 but the nasdaq closes at a record shy and the s&p just shy of one. welcome to "closing bell: overtime." i'm morgan brennan with jon fortt. >> it's a big week for earnings highlighted by nvidia on wednesday and the action kicks off this hour with results from palo alto networks, zoom video and trip.com we're going to bring you nose numbers as we get them. >> jpmorgan touching new highs early today but weighing on the dow la