that are bottomed out or the highest delta, and nvidia is like that is not going to go up anymore and this is what happens. and the year before -- >> he pointed out, apple has come back since march 7th. >> don't count apple out >> you can count on everybody. the washington commanders, the team i grew up with, so sorry, folks. >> for more, stay tuned. >> great being you with. >> thank you. >> thanks for watching "power lunch," everybody. >> "closing bell" starts right now. welcome to the "closing bell," i'm scott wapner here at the new york new hampshire, this make or break hour begins with the bull market, whether or not it is in intact and more gains, we will ask our experts over the final stretch including the wharton school jeremy siegel he will join us momentarily. in the meantime, take a look at the score card, with 60 minutes to go in regulation, we got a pretty decent bounceback for stocks today following some revisions to inflation expectations that sent yields reversing

lower. stocks higher. technology, one of the best groups today and by the way, the nasdaq right now is above a new closing high. so we need to track that over the final stretch as many of the mega cap, including nvidia, see nice gains today pretty good day, too, for discretionary stocks like decker, surging after its earnings it does take us to the "talk of the tape". the road ahead for the rally let's welcome in professor jeremy siegel, wharton professor. glad to have you here. >> happy to be here. >> and we have nvidia, knocked the cover off the ball again and a turbulent day yesterday, and then a nice bounce today at least in parts of the market. >> yes well, i think, you know, nvidia did so well, it almost sucked all of the oxygen out of the room so no one else could breathe yesterday. and now i think they settled down there were, i think what disturbed people yesterday was that little chatter in the fomc meeting, the minutes, about some

people saying hey, are we done raising, and that, that would drive a stake into the heart of the bull market. so any talk about that brings about the fear and i don't think that is going to happen. i think a little settling down right now. i actually think the forward-looking data that we're going to be getting, and really are getting, is going to look much better on the inflation front. so it is a question of how many cuts, and not a question of whether there will be another rise >> when is the first cut coming? if at all this year? that remains the most sensitive debate within the market, you know if the economic data comes in too good, then the market thinks we're getting no cuts. if it starts to look a little dicey, then the market says okay, well, maybe they will cut. what do you think? >> well, you know, people say we will welcome cuts, but there's a good reason for cuts and a bad reason for cuts. i mean the good reason for cuts

is we see a slowdown in inflation. and that would cause this bull market to keep on going, and going strong the bad reason for cuts is that we see a big slowdown in the economy, and despite cuts, you're going to have a declining stock market in that case. fortunately, we had sort of weak data last week, and this week, the data looks a little bit better to me and i'm calmer about it. and i think that, i think that with the gdp, most of the -- i think atlanta, goldman sachs, all of the others are calling for the 03s for this quarter and that is certainly good enough to keep this bull market and the economy rolling. >> wow, so i think that's why some make the argument that cuts don't matter, earnings matter. and earnings are good enough to continue to carry the market higher i had an interviewed with rick

rieder blackrock, and he is in charge of assets and he says another 10 to 15% more this year out of this market. >> absolutely. one thing, we're going to get the second revision of the first quarter gdp next week, and it is going to go down, and into the low ones now, think about it. low ones and we have such good earnings with three gdp this quarter, earnings are going to be so much better >> you think earnings are going to continue to be better nvidia is sort of a perfect example, professor, where, you know, the critics would say, yes, the earnings were good, and they were better than, you know, continuously lower expectations, but all of the really good earnings are coming at the really top of the stack, right the mega cap stocks. >> there's no -- >> professor, i will -- i got

you. i will take care of you. why don't you grab some water. i've got other guests here that i can ask some questions to as well and you let us know when you're ready. professor jeremy siegel, back with us in a minute. christina is here of invesco and stephane link of hightower advisers as well ladies, good to see you. you want to pick up with what i was talking about with the professor? he is obviously bullish, when i said 10 to 15% that rick rieder suggested, he didn't say it sounded ridiculous what does it sound like to you >> it sounds like it can very well happen this year. clearly the trajectory is up for stocks because we will see rate cuts, and it's not just about the fed. we have major central banks around the world that are going to be cutting this year. probably starting very soon. and so i think that that momentum is going to be a real positive for the stockmarket and we'll be supportive of --

and then of course with the yields higher, i think we're going to be able to get some nice money coming from bonds as well there is an environment that i think is almost the antithesis of what i would call the difference of 2022. >> we learned this week that again we are still sensitive to high rates the fed minutes, while backward looking, were hawkish, right and you know, yields didn't necessarily like that. i mean we had this big sell-off yesterday. so we're still really sensitive to the fact that rates are elevated are we just going to brush that all off and continue to move higher as you suggest and like the professor thinks we can to >> well, we know it's coming it's just about timing if you think about college acceptances, it's the difference between someone who gets an early decision and someone who is off the wait list, they will all get into the same school and all graduate, presumably i'm not so worried about the timing, i'm focused on the direction. and the good news is we have momentum coming from the rate

cuts coming real soon and the bank of england, the bank of canada, that will provide some positive momentum. >> what if the direction, let's focus on that, what if the direction leads to you a dead end, right there's the assumption you're making, well the direction is lower for rates, because the direction for the fed seems to be cuts. what happens if we're wrong? i'm not suggesting hikes but what happens if the cuts don't come for longer than we think? and i mean well longer than we think? >> well, then that's a time when investors should probably look to add to exposure in u.k. equities, european equities, areas that will benefit from those rate cuts coming more quickly. also, of course, there's quite a robust carry trade that is going on right now, because of bets around when we will start to see central banks start to cut >> steph, how do you assess this week how does it color your view in where we may go in the weeks

ahead? >> i think yesterday, it was a couple of different things it was profit taking we were up 6% in the s&p 500, in a month, so there's that and then it was also this fed speak, all week long, that really was more hawkish in terms of what they're going to do on cuts and the timing and maybe get pushed out and what not. and then i think the icing on the cake was the fmp global pmi data that came in yesterday stronger than expected but also had higher prices paid index in it as well so that gave fuel to the inflation, staying stickier for longer you know i have been talking about, i don't think that we do need to do cuts and i don't expect fed cuts this year. and that's because the growth rate in the economy here is running stronger than expected, and we're above trend, and the atlanta fed tracker is at 3.5%, and we also have global growth that's picking up, and i do think, not only are we seeing the broadening here, in the states, and the s&p 500, and other sectors, but you also are seeing other places around the

world that are offering opportunities. you know we have been buying the indian etf, inda, so i think you add it all up, and 3%, and even in a 2% gdp world, in the u.n., that kind of translates that into about mid single digits on the top line, but if the inflation continues to come down, which it is coming down, it is just slower than expected, then the margin story can stay intact, and you just did 10% earnings growth in the first quarter. you probably are going to do 8 to 10% earnings growth for the full year. that's very healthy. earnings are going higher, not lower and stocks follow higher earnings so i'm pretty encouraged i do not think we will be up another 15% from here but i do think we are going to be up. >> professor, you are back with us are you okay >> thank you i'm going to repeat that what stephane said, think about it, 10% earnings growth in the first quarter, which is probably going to be reviseddown to about 1.2

now this quarter is 3.2, you know, can we have another 10%? or 12% or 15% earnings growth in that environment? the answer is yes. so with this economy moving as it is, and you know, and the cash on the sidelines, as long as it's not the bad cuts, because of a real slowing economy, it's the good cuts because of slowing inflation, and now this bull market is absolutely still on track. >> it just feels like, professor, even some of the data suggested, from the likes of bank of america, you know with their flow shows and things like that where they track their private client movement, and you have had a fair amount of money come out and go into cash, what am i to make of ha some people look at what happened since the april bottom and saying you know what, maybe it is better to lean a little more out than lean more in >> people kept on talking about how great 5% is in cash, and

take a look at the s&p it is up 10% this year and we're only, what, one-third of the year over, so you know, let's put it this way. even if this stock market does nothing for the rest of the year, you're ahead in stocks twice the return that you get in the full year on treasury bills or other short-term assets so the stock market is already down in the fixed income market. >> christina, this is what i referred to, private, turning into class, the biggest since 2021, the biggest outflow since december 20623 and the fourth largest outflow of the last 20 years. it is a specific cohort obviously that they're referring to, but nonetheless, it does speak to a little bit of nervousness that we've gotten a lot of gains in a really short period of time, right? we're talking, you know, mid, the third week of april lows,

and here we are, in the third week of may, and we've come a long way >> well, someone probably read a meme that said sell in may, go away, and -- >> that hasn't worked. >> and it hasn't and i think that the reality is we are going to see skittishness especially since, as much as i'm very happy with earnings season, a significant portion of that earnings growth can be attributed to one stock. and so we need to see a broadening but i do think we will see a broadening in the market when we feel that rate cuts are imminent, when we start to get those rate cuts, i think that will certainly alter the landscape, and make it a far more -- a market in which many more stocks are participating. >> steph, what do i want to do with some of the sectors lagging on the week? financial stocks like goldman and jpmorgan have done well, financials down 2% on the week, utilities down more than 1%. i think we're seeing some of the sectors where you saw some of

the most sizable gains are the ones outside of technology obviously that are getting hit a little bit this week >> yeah, i mean i think there's -- it's normal the xlf is up 12% at its highs, so taking profits makes some sort of sense to me. but the stocks are still very cheap. you are looking at an overall market that is trading at something 19, 20 times earnings and the banks are 10, 11, 12 times earnings and 1 to 1.5 times book value with very good capital levels and very good dividends, so i skew within financials on capital marks because i think that is definitely on, we've seen a trough already, i think we're seeing on the rise, and especially in the market, and m&a, and in terms of utilities, i think they have rammed really quickly on this whole notion of the grid, right? and clean and green energy and all that which i'm a total fan of however, they have challenges.

they are regulated there's only so much they're going to be able to see in the bottom line. so if you're going to play that theme, i think you will play some of the industrials, you know where i'm at in that. so i think it is okay to see some pause here. tech had a pretty good week. nvidia was amazing but i do think that there are other plays, if you think nvidia was amazing, and you believe in the hyper scale cap ex numbers that are going to come this year, you can own a whole bunch of tech, too so i think it is really healthy to see a little bit of give and take in various different sectors, week in and week out, but i like the broadening out that we have seen. >> professor, i just like that you've seen -- you've seen so many markets, and so many stocks that have carried a lot of weight over the years, and there's been a lot of hoopla about, and when you look at nvidia, and you see what that stock continues to do, and what the earnings suggest it may still be able to do, what do you think about? >> it is absolutely astounding and i don't even think i saw a stock like nvidia, i don't think

cisco back in the late '90s has matched what nvidia has done over the last two or three years. and then by the way, what christine was saying and stephane, 10% increase in earnings but it was concentrated at the top mid and small caps did not share in that earnings in fact, earnings were down for many of them and it probably will take rate cuts to really begin to turn around the small and mid caps so they can challenge and outpace those large caps, which we want to see in the broadening out of the market. >> so you wouldn't lean into those areas of the market quite yet? >> right now, for a long term investor, yes, because it is going to come, but right now, i've been saying since the beginning of the year, listen, i'm a value man, so you know, in a way, you know, i've been kind of a quiet sufferer here in terms of when is it going to turn around, but i have seen nothing to tell me that the

trends of growth outdoing value are yet to turn arnz they will. but in the near term, the trends are still towards the growth stocks >> that's not what you want to hear, stephane, is it? value investor extraordinaire? >> no, it is not what i want to hear. >> i don't want to hear it either >> but i think we talked, we have talked about, i look at the russell 1,000 versus the russell 1,000 value and it is february 9th, the spread was 900 basis points, growth outperforming value, and that spread narrowed up until last month to about 400 basis points, and now, it's widening back up to 800. so you know, it's absolutely true it's being led by technology because those earnings have been coming in better than expected but i do think that there are still really good other areas to own. many, not necessarily for long term, scott, i think you want to be diversified we talked about financials,

industrials, there's a lot of places within industrials that are exciting, especially in what i was talking about before, in terms of the grid, and that sort of thing and i think some discretionary makes sense. i do think that housing is totally out of favor and hated at this moment in time and you know i'm a big fan, but i think we're going to see a recovery so i think there are definitely places to be adding to beyond tech. but i recognize obviously in the last month that tech is certainly, and growth, has made up a comeback. >> i want to ask you in a second about the new positions that you have because they're interesting but i want to get christina's view, the idea what the professor said, too soon, small, mid cap and i've gotten a lot of calls on this program that says now is the time you got to do it, now is the time you got to buy those stocks, and they've had periods of outperformance, but very small periods of time do you agree or disagree >> i would say that there is a very close correlation between expectations around rate cuts and the performance of value, the performance of smaller caps.

i'm still in the camp that there is a chance the fed will cut in july i think there is a very good chance that the fed will cut in the third quarter, which would mean by september. so i would argue sooner rather than later, for smaller caps and value, getting into them, because i do think we're going to see outperformance or at least keep up a lot better with tech, and that could be very sustainable, if we get those rate cuts. >> okay. steph, so we're going to end this with you. we've discussed yesterday, i saw this news of a dupont split and i said that's stephane link. and then i asked you about it yesterday, and you said, well, not yet, but i'm going to look at it. that was quick did you your due diligence quickly, and you bought the stock. >> yes, i mean the power of your conversation with me, it got me thinking i did a lot of homework on it. i have owned dupont in the past. i know ed breen very well. as the ceo of dupont who is now exiting. but he's going to oversee this transition, into then splitting into three different companies and i think it's not, we don't

have to wait until they actually split for the stock to work, because i think you're going to see multiple expansion, as they break down these businesses, and you can use comparisons within each business to other companies, and other multiples, and these companies are really undervalued, i think, and so i like the story, i like splits, i'm now into another one, scott, so i think i'm done now. i think i'm tapped out with the amount that i have but they do work over the long term and i definitely think they are creating long term value. >> you also added to lam research and broadcom and freeport this week copper has had a rollover of sorts after being one of the hottest areas. professor, let me end it with you and i will pick up where steph was going, right she likes splits ge, 3m, this one in dupont, says they work overtime i can't imagine you haven't looked at this and studied this and taught about it. does it work

>> very little in the short run, it really -- and taking a look, make it is 10 for 1. >> i don't mean stock splits, i mean company splits, ge splitting into different businesses and 3m and dupont announcing that as well. >> okay. i didn't understand. you know what? there was the age back in the '60s of conglomerates, that's the way to go, and then they found out that one ceo can't handle all of those different industries and sectors and all the rest and then we found out we can create value flew splitting up, i mean if the government ever splits up big tech, some of those companies may be worth separately than forth. so yes, i absolutely agree get the expertise funneled in one, two, three managements and ceos, and you can outperform >> that sounded like the professor gave you an a, steph

on that trade. >> two thumbs up >> i appreciate everybody's time >> thank you. let's send it over to pippa stevens for a look at the biggest names moving into the close. >> work day is sinking, and a narrow miss on subscription revenue guidance outweighed the beat on the top and bottom lines. the human resources software giant noted lower-than-expected head count growth. among the clients especially in europe those shares are down 15%. shifting to apparel, where decker's outdoor is jumping after handily beating earnings estimates. the company also reported stronger-than-expected hoka and ugg sales lifting shares by 15%. and ross stores is also higher after a strong earnings beat however, the discount retailer cautioned that ongoing uncertainty in the macro and geopolitical environment are putting on pressure on customers' purchasing power.

>> thank you. coming up rashaun williams is back with where he is putting his money to work in the tech sector and his latest big sports investment, coming up. you're watching "closing bell" on cnbc. knock, knock. number one broker here for the number one hit maker. -thanks for swinging by, carl. -no problem. so what are all those for? uh, this lets me adjust the base, add more guitar, maybe some drums. -wow. so many choices. -yeah. like schwab. i can get full service wealth management, advice, invest on my own, and trade on thinkorswim. you know carl is the only front man you need. (phone rings) oh, i gotta take this, carl. it's schwab. schwab. (feedback rings) have a choice in how you invest with schwab.

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welcome back. an interesting story this week from the world of international soccer and a flame very familiar to investors here in the united states, oaktree seizing control of the storied italian soccer club inter milan and that after the chinese owners defaulted on the 395 million euro loan payment and collateral backing the debt, majority ownership of the club top italian league title last year and runner-up in the league final and not the first time oaktree had captured control of a troubled european team, and

did so with a troubled french club in 2020 and that makes ac and inter milan by american investors. redbird control of milan in 202. more proof that investors here continue to believe global soccer is a key investable asset. you can see on the board there, american owners of major global soccer clubs, well there are many, and some of the biggest and most prestigious and valuable for that matter clubs over in europe from investing in socker to investing in football. we're joined by one of the newest capital investors of the altanta falcon, rashaun williams, welcome back great to see you >> thanks for having me. >> congratulations as one of har thur blank's newest limited partner and can you tell us what that mean us to to be involved in the nfl? >> investing in the falcons and the nfl makes common business sense, that is common knowledge

and then with the falcons and the community, and i went to college here and raising a family here, it means so much to the community and the city, i'm just very extremely happy to be a part of it and appreciative and grateful given all of the opportunities. >> what about just the idea of sports as an investable asset? something we've been talking certainly more and more about, and you definitely have seen many, whether it's venture capitalists, or investors in general, private equity, he hads of firms buying into teams, buy teams, and the idea in general >> yes, i think the reason why private equity and venture capital, such as myself, are so attracted to sports in general, is there are a lot of similarities i noticed that it is not obvious, but a lot of similarities between sports and the venture space. first and foremost the needs are in two category, capital call

needs and the distribution needs. capital call needs are the unpopular ones you have to chip in capital every year to define losses and distribution needs are the profitable ones, right so in my world, in venture capital, you have earnings companies, pre-revenue, just an idea, and you know, no traction, no customers, and you have the growth stage, and they are growing fast but not profitable and then of course you have late stage which is my favorite, and that is starting to pop up, and become a lot more pronounced in sports as well for example, early stage sports is like pickle ball, everyone is talking about it, right? or sailing or cricket in the united states, super popular in india. growth stage would be like major league soccer in the u.s., and doing well, still growing really fast but not as dominant and profitable as like the nba and major league baseball, which are what we consider late stage leads in addition to the nfl so a lot of similarities, and of course, different risk/return profiles in each, but it is a very, very exciting space, and i'm happy to be a parts of it, and you're seeing a lot more

private equity and vcs jumping in. >> jumping off what you talked about. late stage venture investing being your favorite, obviously segues into what we will see in terms of ipos over the second half of the year what's your outlook? >> well, i think the world is still bifurcated i remember i was on here last time, we were talking about the tale of two tech ipos, right so you have the profitable unicorns that are being rewarded that can go public right now, just like big tech and those guys get access to capital markets, they don't need money, they can raise money from anywhere, if they decide to go public, they will be welcome with open arms, right? and then you have the unprofitable growth stage comes which are struggling to go public, and they're struggling to raise capital in the private market to a certain extent which the market is largely closed off for those guys and as you know, i'm a big active growth and late stage tech investor and i have some of my favorites, some of which in

my portfolio are going public but the dirtily little secret is most vcs don't want our growth in late stage companies going public at these multiples unless they're getting that premium that only the most profitable and the biggest companies get. so we're not in a huge rush. of course we want liquidity. but we're definitely not in a huge rush to go public and if we think if we wait a little bit, interest rates drop and people rewarded a little bit more have free access to capital and higher multiples and valuations. >> what are the favorite ones in your portfolio right now that you think are going to go public sooner rather than later >> i have them up on my screen of all times literally screen savers. my all time favorite is epic games. i've been talking about epic games for years. i remember seeing travis scott performing live in "fortnite" and it changed my outlook of the meta verse and when i saw what happened, i couldn't resist. epic games is my favorite. stripe you have klarna and arctic wolf.

if you find companies in the a.i. industry, in the cybersecurity industry, in the quantum computeing or quantum protection industry, most are the industries driving a lot of growth right now, but my favorites that i think are going to go public in the next several months to quarters would be those five. >> when you look at tech investing in general, and we can take the public markets just to get your perspective on it, you know, when you see an nvidia do what it's doing, and then you see mega cap stocks that are really heavily focused on a.i. doing what they're doing, and still, it is still the game, i mean the game is all being played in those stocks, for the most part, does it continue that way? >> well, i was telling my team this morning in the daily meeting, people eat more at buffets, i think that is the only way that i can sum up what isgoing on right now you can see the feeding frenzy for big tech companies for a reason the growth is looking more like venture capital. 15 to 30% revenue growth on big

tech where the average revenue growth for s&p companies is usually around 5%. that is kind of entering into my venture capital world and of course you lay out the food and the variety and people are going to eat, but how long will it last i think that's, only a person with a crystal ball can determine that but i absolutely think valuations are warranted i absolutely think these companies are a lot more room to grow and the proof is in the pudding. look at the revenue growth look at the earnings they're beating expectations and i think it will continue for the short term. >> it's great talking to you be well. see you soon congratulations once again on the entry into theful if that's a big deal. >> thank you very much >> rashau williams joining us once again. >> good seeing you. up next, a summer of strength on the horizon, the nasdaq on track for a record closing high and ryan detrick, it could be a big summerorhe bls f tul and he will tell you exactly why and make his case next offers investors leverage to both gold and copper

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with this economy, moving as it is, and, you know, and the cash on the sidelines, as long as it is not the bad cuts because of a real slowing economy, it is the good cuts because of slowing inflation, this bull market is absolutely still on track >> well tlark was professor jeremy siegel earlier in our

program today, outlining his bullish case for stocks. our next guest says this is setting up to be one of the hottest stretches for the market joining me now, chief market strategist ryan detrick. good to see you again. why do you think so? >> thanks for having me and happy memorial day to everybody out there. and 13 years ago, we lost mark payne. we remember him, right a few weeks ago, scott, we said don't sell in may go away, and usually may does pretty good especially in an election year and sure enough that is happening and we have been on record, we think we could have a surprise, we will call it, a surprise summer rally and look at june and august, usually that not great a months and on average 1.3% up for the s&p 500, much better than expected. so we can get into the weeds of this, but the bottom line is we had that washout that we saw back in april, and we think again, kind of like professor siegel, i'm not one to go against professor siegel, we think the upward bias is still alive and well. >> let me ask you a question you know, this week, we got scared for a minute, the minutes of the fed were hawkish, right

even though they're backward looking. it still had an impact on the market what happens if at the fed meeting, because if you're looking for a summer rally, what happens at the fed meeting, which is not backward looking, okay, in a couple of weeks, what if chair powell is more hawkish than maybe we really expect him to be? does that upset what you said? >> i think it would, scott i think it would we think we're seeing better news on inflation, with the cpi, we all talk this a lot, it is all about shelter and rent prices starting to go lower and that is attributing to the oer, and those are positive signs and if they come out hawkish, that could upset it, but let's be honest, we have heard the fed speakers and we know what chair powell says, he wants to seat data and pce is coming out soon, we will cross that bridge when we get there, but i do think, we don't expect that, i guess is what i'm going to say here. >> what gets us, so what powers us towards this summer rally that you suggest is likely >> well, it is probably some of that conversation we just had.

better inflation data obviously. just the last two days shall the economic data that we've seen, this economy is not slowing down the atlanta fed, gdp over 3% it is strong here is what i think about yesterday was the 100th trading day of the year. after 100 days, this is the best start to an election year ever what in the world does that mean scott, i found 20 times, the first 100 days were up at least 10%, double digits the rest of the year has been higher 85% of the time, with the median rest of the year return of another 10% what i'm getting at, strength usually begets strength, with better inflation data, with the economy still strong, those are all reasons, we've been overweight in equities for a long time and still in that camp. >> strength begets strength. does that mean internally i want to continue to lean into the mega cap tech stocks >> we're more neutral mega cap here with mega cap tech - >> why >> because we look at valuations 20-year valuations, two standard deevations above their long term

trends so that's pretty pricey and again, under the surface, this year to date, 10 out of 11 sectors are higher real estate is lagging but we're seeing more broadening out this year. and to us, we have been adding on any weakness, industrials and financial, the discussion before, a great panel discussion there, and we kind of talked about, that i agree, those to us are good, and especially with a rate cut or two, we think that could juice the economy just that little bit more and we like the cyclical areas, specifically industrials, financial, the rest of this year. >> shouldn't you be paying a premium, and i mean look, it is not like all of these stocks are trading at some crazy premium. >> right. >> you got balance sheet, you got cash flow, you got buybacks, you got dividends, you got a.i., you got safety, alleged, but you know what i'm getting at, right? >> yes. >> you should be paying a premium of some sort for all of the things that i just ticked off, right >> and you got earnings, too, the last i checked that's where the earnings are coming from we're neutral. i'm not saying we're beeish, we

have large cap exposure, but again, when we look at the next six months or so, i know everyone is just, before i came on, you talked about the small and mid caps, mid caps have been the largest overweight, the jane brady group if you will, quietly doing really well this year. and again, small caps, we have a slight overweight there. and again, the whole theme, i just came out with that early, with better inflation data, we think small caps will do better. and small caps, two montreallys, last year and the last ten times they had that, they are up the next year. i know they are sideways the first months of this year, we're not giving up on that yet. >> you said you would never go against the professor, and you are in that one. and we talked about the rate cuts >> this is tv and i will make it interesting and go against the

professor. >> he is on my podcast in two weeks but small and mid caps, i will bring that to him, we still like them, even if he doesn't. up next, we will tell you what is behind some big moves today and we will tell you after the quick break.

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we're 15 from the bell tracking a pair of movers from the biotech space today. >> shares are soaring after an impressive phase two data from an experimental drug for head and neck cancer. merus in a statement last night suggested the results have gotten even better in the months since this kind of data, and that promising news is leading this stock to go up about 36% today. and we'll hear more from them next week. and immunocore is down on the other end, despite promising data from a phase one trial of an experimental melanoma drug. it is close to a best case scenario putting the stock at risk even with perfectly acceptable data, that stock down about 3% today scott? >> thank you. still to come, we're going

to kel you what is behind cava's move and what to expect when it report earnings next week. "closing bell" will be right back

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mcfall, brigadier general omar randall, with the blue star families and we want to let you know what that clapping is that you hear in the background one of the great things that happens here on the floor of the new york stock exchange. i have senior markets commentator mike santoli to break down the crucial moments of the trading day and phil lebeau and kate rogers on why stifle is getting more bullish on cava. >> what will we take into the weekend? >> it is pretty much a flat week for the s&p 500. we have been hesitating around this 5,300 level a minor shakeout yesterday is a reminder that while the trend is healthy, the market is not on the long reach, a lot of things have to stay in the right zone to continue to progress. including economic growth not seeming like it is going to re-heat too much at this point, and also, we lost some of that leadership going into the week i was talking about that a week ago. we have big reversals in commodities, and the inflation

trade, and the utilities and banks also reset lower, so it's narrowed out of it i mean the nasdaq nasdaq is back at a new relative high versus the average stock. it is healthy enough if that's how we play defense in this market but it shows that yields have to cooperate in order for the widening to happen. >> we're on track for another nasdaq closing high. that tells you everything you need to know, flthank you, nvid? >> pretty much. >> phil lebeau, what do we have today? >> cost control move and specific moves by specific ev companies. as you take a look at the u.s. ev company, we're talking about tesla, rivian, lucid, two are up and one under pressure and now all up for the day let's go through the stock specific modes here. you've got tesla, news out of china that the company is cutting its model y production, down about 26%, april versus march. not a huge surprise. we know about the pressure over there with pricing, when it comes to evs

remember, also, that is a base shanghai where they export to other countries so you have ev pressure around the world and they're being judicious in terms of model y production. and when you look at liucid, it is announcing it is cutting 6% of the u.s. work force as it continues to wrestle with a soft ev mark. it put pressure on lucid, and reversed direction late in the day. and look at the chinese ev company, this is a case where you see the stocks moving up and down, and sometimes separate from what you see with the u.s. ev companies, related but separate, in terms of how they're trading lately, scott. >> appreciate it, phil thank you. phil lebeau. you saw cava that's because we are getting more bullish at least stifle is >> yes, that's right stifle out with a new price hike, and reiterating its buy rating on cava, from $66 to $90, ahead of earnings next tuesday

writing this morning, themobil location data suggests that the company saw sequential improvements throughout the quarter and would not be surprised with a jump of 5%. we believe the sales momentum is sustainable especially with moaningful product rollout later this year. cava stock up 90% year to date and outperforming fast food this year, as consumers perceive these companies have better value. and sweet cream also recalled out steak. same store sales expected to be increased 1.6% for the quarter, scott? >> thank you very much. >> and careful which stocks you look for when trying to make a determination as to the health of the consumer, because you can cherry pick your way around. >> no doubt about it i mean if you looked at cava and chipotle, and basically they

have pricing power, they have a huge runway in terms of growth, and they can hold on and they can command a premium and also some travel-related still holds up so the consumer cyclical group has actually really had some wear and tear on it, in terms of relative performance but i don't think it is because in aggregate consumers can't spend. it is because they sell more goods and you're starting to lose so pricing pressure. think it is one of the points that we're trying to get beyond in the market. and we will see if we can. i don't think by any means the overall market is priced for perfection but it is priced to stay in the sort of central expectation of further disinflation, and the fed can keep rolling ahead, and it can't be forever. >> nvidia kind of closes the door on this officially, on earnings season. we will get some retailers this next week which is going to be important but the other catalysts are, what, waiting for inflation data >> i think friday's pce and yields and we do have some treasury supply to come next week we'll see if we can absorb that. and the two-year treasury yield is really about 8 basis points

above the highs above may 1st. and it is not that the markets stayed up and we think we're getting cuts any time soon so far, we've been able to handle it with the strong mi. >> a long weekend to you >> thank you >> there is the closing bell and we remember those who have fallen, this memorial day weekend. the nasdaq closing at a record high, ahead of the holiday weekend. but the dow is finishing down more than 2% on the week, after thursday's steep pullback, finishing near basically unchanged today, though, and that is the score card on wall street, but the action is just getting started. welcome to "closing bell" overtime, i'm morgan brennan. >> and coming up, on today's