implications for sony and sony group shares are up 3%. >> that would be a big deal buying queen. >> do you think they're worth it? >> i do -- i have no way of knowing, but they're one of the timeless groups. you hear their songs still prakticily every day. thanks for watching "power lunch," everybody. >> "closing bell" starts right now. all right, guys. welcome to closing bell. i'm scott wapner live at post 9 at the new york stock exchange with inflation-eve and tomorrow's pce, and the market on edge ahead of it and we'll ask expert bhs what it means an with 60 minutes to go in regulation, we are red today across the board and it is the dow that is the biggest loser and it's a salesforce problem, suffering its worst day in years after it turned. take a look at that, down more than 20% and other cloud software names like servicenow,

they're a mess, too. look at that. that's down near 12%. elsewhere, most s&p sectors are actually green today, all, but two and small caps are outperforming. yields are down and that's a big part of that story. it does take it us to the talk of the tape, the forecast has gotten more narrow. is that a sign of an unhealthy market or another taking another well-deserved breather? let's ask dan greenhouse, strategist for asset management. welcome back. >> thank you, sir. what's the market? we are down, pacing 1% on the s&p and yields are down today, but they've been backing up and they're nervous. what's going on? >> listen, we've had a really good run really all year and the stat everyone seems to be tossing around and the s&p is up 23 of the last 30 weeks. the type of run that you rarely have ever seen and there was a big rally off the 62, and it's

been pretty strong. obviously, it's come alongside the rate and i don't buy into the rate story, but there is something to the narrowness. it is being driven a lot by some of these ai names although i will make one final, quick point and the equal weight index is up 3% through today. that's not great by any means, but it's average. so even if you want to balance out the overweight, so to speak of n vividia, et cetera, et cet. it's not that it's dramatically narrowed and nvidia's outsized performance makes it feel that way eaven more. for over a one-week period, tech is up, like everything else is down. com services is up a half percent and discretionary down one and materials down one, utility, energy, 1 1/2 and it gets worse for industrials and

health care is down some 3%. >> very quick on that point, there's a lot of people who come on the network and talk about rates, rates, rates, rates and stocks and why aren't we seeing more of a factor and this, that and the next thing, but to combine the two points that we just made to synergize, if you will, i think you are seeing the effect. as i mentioned, the equal weights call it 2.8, 3% for the year, perfectly average. if you look at the market that way in context of the backup in rates call it 3.80 on the ten year to wherever we are, 4 1/2, 4.55, you have seen a dampening effect on the market and it's been over dampened, but we'll go with it by nvidia, et cetera, et cetera. >> do you think sector performance is directly correlated to the backup in rates? why tech has gone up and why there's been -- i go back to tony pasquariello of goldman says why it continues to outperform and yet mowhy the moy

continues to soar. mega-caps. >> yes, to answer your question, rates does have an impact on flows and valuations, but you've also had not great reports from work day, et cetera, et cetera, so there had been some fundamental reasons. >> and the service now. you just don't see the stocks move like they're moving today. if you've gotten a nice bump and salesforce has aren't gotten that much of a bump, but if you've been up and theoretically it's on this ai halo and the expectations have gone up with the stock price especially the outlook, the result right there, 20%. this was the flip side and there was no tolerance for disappointment and any number of people who have come on the network, i'm sure and observed, and the guidance. the market votes more than the

pundit. >> that's correct. it obviously tells you it couldn't be that great or that average and it would not be down 28%, but you have seen pain throughout tech and we listed a bunch of the names adobe, et cetera, et cetera, and it's just the size of nvidia and the size of microsoft and google and their performance has been so strong that it's just overwhelming and all these other names. >> nvidia is such an outliar and it is up 6% and every other is shy of 1% and the positioning data and the flows to those names are still extraordinary and they're a huge portion of the market and they're still to borrow tony's phrase, the sword and the shield and i understand why as a manager you'd have a tremendous amount exposure to them. >> that's why krinsky says the trend is hard to fate. that is a trend that has been

your friend. let's bring in cnbc contributors, joe terra nova and bryn talkington. bryn, nice to have you and joe at post 9. we said this is inflation-eve because we have pce in the morning and given what rates have done lately this is even more critical. >> yeah. i think it will be another data point. i think about rates and if you look at the ten-year yield and just draw a line we are still in this 45-degree trend, and rates in the long end still have a buy, and pce, we'll see what happens. it's a data point. i don't think it will be especially dovish, so i think we won't have any resolve on what the fed's going to do, but i also think what's interesting today and we'll see if that can continue for more than a day is to dan's point, you know, rsp or equal weight, which we own is fine up three, small caps are

still negative, but if i look across the sectors, today is a wonderful day. salesforce, the s&p and the nasdaq are also masking the really strong performance and also, scott, as we've been talking about breadth narrowing, today it's really butting that trend and where it's selling service now and they're not leaving the market and i think they're moving into these other sectors and we'll see if that trend can continue. >> that's what i said. you have every sector, but two are green. red is tech and comp services for obvious reasons. you are being dragged by those stocks that we mentioned. so how do you see it setting up ahead of pce tomorrow morning? >> momentum is having an awful day and it is up 1.5% because of the allocation toward the software names. i think everything right now is dependent upon the direction of rates and the question is are we at the ceiling for rates?

global yields, we've got rate relief today in global yields not only here in the u.s. we're going to need further evidence in a lot of the ecodata that comes out if we are at the ceiling. if you're at the ceiling, then you can go back and revisit the broadening out of the rally. >> like the russell 2000 today up 1%, dramatically outperforming everything else? >> correct. dan said something that is just so important, and that that rates impact flows and as someone that works for an asset management company, boy, that's just brilliant because that is the case. if you think about it, as rates rise, the propensity for active management to benefit from inflows has lessened dramatically because the actual capital that's going into the market at that point, it's money that's on autopilot. it's passive investing and where it's going. it's going to the super six.

the super six which, coming into today are now 30% of the s&p 500. sdot, yesterday, with that number, that's the highest in history. we've never been at that significant awaiting for those super six. >> you want to pick up where he said? he obviously wants something from you and that's why he's complimentary of you at the outset. >> he wants to take us to the rangers game. >> we want to see the panthers win. we'll talk about that later. >> everything he said about me is correct and so i'll take it, but listen, i think this breeds the conversation about the dominance that the super six, if you will, about nvidia and how you can't go on and if there's a slowdown and how similar this is to cisco and 2000 and i would have made the case why isn't it similar to cisco in 1999 or 1998 or 1997 when topline growth was 40% or 50%.

in fact, i went and looked, not today, but recently and nvidia is not forecast to have cisco's growth eirates for two or three years and if you didn't sea it in the late 1999 and 2000, so i think from an allocation standpoint and from a capex standpoint, this is much closer to the '95 netscape ipo and it's closer to the beginning rather than the end. i think people are trying to make that argument that we're in the very early innings of this ai boom and nowhere near the later stages of it when we think that all bets are off. who knows? >> yeah, i think if you go back and spoke in a good piece yesterday from the lows of 1996 to 2000, the nasdaq was up 700%. if you do the same adjusted look at covid to today the nasdaq is up only 200%. so i think that the statistic that joe shares about these six

names being 30%, i think that is something we are mindful of and nvidia is up ten fold over the past few years from a price and also earnings and free cash flow, so i think that's what we haven't seen before especially in an nvidia is earnings and free cash flow are equivalent with the price movement and it is somewhat unique and i agree with both joe and dan that these were the earlier dayss of '96 and '97 and the '99 comparative doesn't hold water today. >> let me add one point to this, you had tremendous earnings reports from cisco and sun micro and everyone at the time. it wasn't until the middle or later part of 2000 that you started to get year over year declines and profit warnings. you had a warning. >> jds uniphase. we will go down to the globe -- but the point is you had warnings. you didn't go from 1300 to

nvidia to 600 with the equivalent thereof overnight. there were multiple profit warnings and misses, and we haven't had a slowdown let alone a warning. >> is it fair, joe, to critique the valuation of tech as a sector versus historical periods, if we want to go history, it doesn't necessarily repeat and rhymes. the tech sector is 29 times. the ten-year average forward is below 20. 29 versus below 20. i don't think it's fair to draw the comparisons. i think we're in a unique position and we gave the significant waiting of the super six. i think the next question you ask yourself is does that 30% go to 35% before it goes to 25%? i'm not willing to bet against that. i think it's a good possibility

that that is, in fact, what happens. i also think what's going on right now is last week the earnings for nvidia closed out the earnings season unofficially and now you get into this period where, unfortunately, you're listening to all of the fed speakers. you're analyzing all of the economic data on a daily basis and that's a tough place for speculators and investors to be. it creates a degree of paralysis. it creates a degree of okay, let's just go back to where we know we have the reliability and earnings and profit margin expansion and the purest definition of quality and it's represented in those companies and that's why technology is up 9% in the month of may alone. >> is tech too expensive? are we ignoring numbers that, you know, jump out at you like that? >> no. the promise of ai for some of the largest stocks in the market may be skewing the forward p-e

overall, but it still is 29 times versus 19.5. if you focus on software where there is lofty valuations and it is an ev to forward sales ratio. something like that. it was just ten and it peaked out and its average over the last five or ten years is ten and it was trading at 20 and trading at six and multiple year anke and its peak before selling off was 20? do you see what the stocks have done year to date? >> zscaler down 28%, shopify is down 25, workday is down 24, twilio is down 24, adobe is down 24. >> to your point, there is pain under the headline, but to flip the conversation and i'm sure bryn would agree. look, we do a disservice to viewers by not constantly, and we do, but not constantly articulating that there are other things to do besides

technology. the banks are doing well. the insurance names are doing well and the actual picks and shove else of building data centers ar. >> were doing well. were. >> dependent on rates. >>banks over the last month are up 1%. >> people don't invest on one-month time horizon. >> i'm just saying they were doing well. >> and these sectors leak utilities were doing very well. your point is well taken, but that speaks to, bryn, the narrowness that we've seen as some of those groups that made us feel leaike we have a health market making us suggest that we're unhealthy again. >> one month doesn't make a trend and neither does a day. . the question is the narrowness of death because everything moin us tech is up. going through the year energy up

about the same ask utilities are up lane and the underlying securities continue that momentum and we are half way through the yore and you low low double gj digits, we are still eely positive on energy. commodities -- >> energy looks leak it will be forever, it is up year to date and it's worse now over the last month and it's down %. as i said, speaks to sectors that were and now are not. >> right. that's when you look at an investor and say you're up ten and 1 1/2 from there especially with the energy and earnings are bottoming out and i think we'll start to reaccelerate. you are also seeing a ton of m and a and this is an area where investors in the back half of the year will say there will

probably continue to be m and a and it's still cheap and earnings are bottoming out and i can get a nice dividend and special dividends with the companies that have free cash flow. so i think this sector will continue to do quite nicely the rest of the year and i wouldn't take the one-month view and extrapolate that out and the next six months. >> i know we have to take business with joe, and i know you want to weigh in. however, you personally bought netflix yesterday as you said you would. >> yes. >> speaking of things that have gone up a lot. remember the stocks at 700. >> yes. it goes down to 400. now it being looks like it's going to make a round trip back to 7. >> it is up year to date. november 2021 it was the 7 hun pr 700 that you referenced and add to your password crackdown. they got past both of those moments and both of those dynamics were additive to the company itself and now their focus is on live sport, and

they've begun to introduce live sports and we know what they're doing with future announcements and i think that will be a big part of the evolution for this company and i think this company exceeds well above 700. you have it in your etf. >> we went through this yesterday on halftime. i was not excited about salesforce going into the printer. they have improved themselves. cost efficiency only takes you so far. if you're going to have single-digit revenue growth and something that we not have seen for this company, you can't wash away -- you can't use cost efficiency to wash that away. it's ultimately going to matter. i think software, unfortunately is in a place where you are, and stephanie link has done a great job on this. if you're cto, and you're focused on cybersecurity and focused on ai and that will lead you to semiconductors and

cybersecurity names. i'll tell you this, the crowdstrike is down 8% today. >> make it nine. >> if there's further deterioration on crowdstrike, and i love that name and i think that's a name that you will on a buy. >> threat fnetflix is great, an crackdown has been surprising to anybody in terms of its success and it hasn't seen any churn of substance. the content continues to be good and gaming is a success and they're going into live sports and they announced the reality competitions. this is a bundle in and of itself here and this is the perfect example of the type of company. we talk about it on the network a bunch, but it is not one -- >> deservedly so. when it was 400, you were, like, the story is over. there was a concern about subscriber turn and there was a worry which i shared and i work with people who bought it and

they were successful and this is a company that is getting much more attention and evidence that there are places to make money that is not nvidia. >> we'll see you soon. to kristina partsinevelos now with a look at the biggest movers at the close. >> investors couldn't stomach hormel foods, sending them down about 9%. they were pushing back on higher prices and bought fewer whole turkeys and higher margins on that and fewer ready to eat meals and it did maintain the annual sales target. for turkey troubles and spending habits, consumers tune in to "mad money" for the ceo and jim cramer. profitability was much better than guided. the software firm management noted that demand for enterprise ai is intensifying. you can see shares up almost

22%. a.i.'s earnings beat was a bright spot when compared to other software names and you just talked about it at salesforce.com and the work day is a sea of red rid now. back to you shortly. kristina partsinevelos. wall street is on the tce and sepp aftian, and we're live at the new york stock exchange. you're watching "closing bell" on cnbc.

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we're in the red across the board today amid a holiday-shortened week, investors turning their attention to the all-important pce report. joining me now is sebastian

paige, t. rowe price. >> good to see you. >> i know we've had a speed bump this week, but how do you see things from here? >> look, i think today's interesting because my two themes for the trading today are rates and you were talking about this with your other guests and rotation. you are seeing a market broadening. tomorrow for pce we're looking at .3% month over month. scott, economists are going to tell me do not look at one-month data. unfortunately, the market is very sensitive to one-month data because the fed has said we are data dependent. well, if i'm a runner i look at my watch and look at how fast i'm running, .3% month over month is over 3.5%. so i intend on seeking inflation from here, scott. >> are you more positive on a market than ul of the time.

you expect the market to broad know over the next few month, that suggests you're not as cautious. i'll use that word. i don't want to seem negative. is that fair? >> yeah. look, my view is investors should be close to their risk tolerance and their normal long-term risk tolerance. so call it neutral. you've been talking about concentration. the bears on my asset allocation committee are worried about concentration. it is an economic slowdown and, scott, from here the sentiment shorter term indicator is running pretty hot. yet today software is not doing well and tech is hot and sentiment, if you look at retail surveys and the vix touched even last week and it's 13 this week. so the sort of positioning and these high expectations, scott,

a wise person once told me that the secret to happiness in life is to have low expectations. the expectations, and you see this in software today, but for tech and for ai are just really, really high. all of that being said, scott. earnings are coming up. rates over time are coming down. i don't expect a recession. i think stocks will do okay. i think credit will do okay and i'm pretty comfortable for the next 12 months. >> that's a change. let's be honest, right? that sounds like you have changed more positive on these marks and i was going ask you, how can you possibly be negative if those are your views. don't expect a recession. the hike is unlikely and the market is going to broaden and earnings are good. right, you're building the case that maybe you want to be more invested in this market than you were before or at least more overweight equities than you were willing to be prior. >> we've been talking for a

while, scott. they're underweight stocks in october and the market at the time was down 10%. you called me a reluctant bear. i called myself a reluctant bear. >> no, you called yourself that and i kept calling you that because even when it was showing signs of a bull market you were still a reluctant bear. >> in october we closed it, and i wish we'd done more and we closed it pretty fast and bought $3 billion worth of stock. we actually added a little bit to stock, scott, to your point. look, i think it just comes down to being aware of the shorter term risks with very high e expectations. ai is a tidal wave and right now stephanie link talked about that during lunch and right now it's sort of building ai, semiconductors and cloud computing and it's spilling and the wave is going to copper prices, utility and ultimately, we think is real.

it's going to be a wave that's going to go into more traditional companies to create productivity and all i'm saying is the expectations for that waiver extremely high especially right now so that's what you're seeing in terms of disappointment in tech today. so, you know, stick to your long-term risk tolerance. as an investor, how much risk do you want to take? and scott, if you want me to talk about longer term asset allocation, if you look at life cycle models which we use in our portfolios you should be, ten or 15 years from retirement, you should be doing according to life cycle model, 70% 80% stocks. what i'm talking about is understand your risk tolerance and this is the kind of market where you want to be where your risk tolerance is. >> under stood. well said. you are still long cash. what does that say and why?

>> so i think we have some upside risk for rates from here. so within fixed income we have this interesting bar bell where you get a lot of yield in cash because the curve's inverted and we are long a diversified credit portfolio. you can call it the magic bar bell. it's performing really well when rates back up, but you don't have a recession so that credit gets in trouble, and we like that positioning more than sort of traditional, longer duration bond portfolios. so we have to position with a little bit of upside on rates relative to expect eggs and that's what it mean, scott. i'm a multi-asset investor and i like having that picked income positioning together with an equity positioning where we are tilted towards value and equity. so tonight the market broadened and scott, if you allow me to look at equities for a second. earnings are going to broaden. by the end of the year the

expectation is that year over year earnings for the value, style or sector are actually going to grow faster than growth earnings, growth stocks earnings in great parts because there are earning comparables and there a pass of the baton that reasonably healthy for the stock market and you know, be part of that broadening or rotation, if you will. >> appreciate your time as always. sebastian. thank you. see you soon. >> up next, top technician jack degraaf is back breaking down the charts for us. he is forecasting a pullback in one of the market's top sectors. he'll make his case to you and oar llju how it might impact the brderay st after the break.

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we are back with the nasdaq again retreating from a record set earlier in the week. our next guest says one of the most loved corners of the tech space could be a risk at a bigger pullback. joining me is jeff degraaf. good to see you. welcome back. >> thanks, scott. >> what are we talking about here? your previous guest talked about expectations and one of the things that we look at is option pricing along with momentum and when we see excessive momentum and more momentum players, so we actually like momentum, but when we see the option pricing betting that the momentum is going to continue or actually exceed history that becomes a

problem for us. we're seeing that in semiconductors and names like qualcomm and names like nvidia and it says to us, there's probably a better opportunity of a pullback here. they might consolidate over the summer, but this isn't the place to be putting fresh money. the expectations are pretty f filled up here and we're advising our clients on that particularly given the overall sentiment and the post-momentum peak that we hit in april and it's been rolling here and we saw it in industrials yesterday and we're seeing it in software today and we think we'll start seeing it in semis at some point here in the early summer months. >> i mean, it's hard to look at just technicals and think that, you know, trends are over. i mean, for example, if sales force knocked it out of the park we wouldn't be looking at a software picture that looks like it does today. isn't that more of a fundamental story than a technical one? >> boy, i don't think so, scott.

there's been several, in fact, we did a report earlier this week that focused on the weakness that we're seeing in software. so for us it was a little bit -- it was a little bit more telling that we were seeing it across the board. that wasn't in microsoft and we're seeing it in other facets and we made the distinction on tuesday and tech -- and not all tech is equal here and tech is okay and semis are getting extended and there's still an uptrend and the software has vulnerability here and the hardware and peripherals and those names and the net apps look interesting here and we think there's a lot of rotation going on in tech. you think the semis as a group can pull back as much as 20%? is that correct? >> keep in mind, nvidia came very close to that if it didn't do it and it got to 750 intraday. so that's not that unusual given

the volatility of that space. so again, putting fresh money to work here just says that you're opening yourself up to the risks of a drawdown. i'm not saying a bear market in the case of nvidia, but you are certainly opening yourself up to a drawdown and we can't be sellers of that oversold condition. >> it's just crazy. i mean, we could have said the similar things for nvidia and wouldn't put fresh money in it at 950 or 975 or 1,050 and it's pulled back at 232 1/2 and this can be in the market quickly even when they're hesitant to put money in. >> keep in mind that each one of those that you mentioned when we had the options that were again,

priced where we are today we had better opportunities to be a buyer of those stocks and that just happened for nvidia yesterday again and previously it had happened in march. so it does have a timing impact where once we get through that, once we get the oversold condition. we'll play it and then we'll play it until we get this signal from our option work that just says, hey, we have to take a break here and take a look at better opportunities. >> lastly and quickly, what's the most oversold opportunity to buy? >> the most oversold opportunity to buy. >> well, we talked about it and we talked about china and hong kong and we're pulling back after changing trends and not quite oversold yet and if we look at that from a three-year perspective, they are very, very oversold and that's important confirmation and tactically, they've consolidated here and i think those are pretty interesting in terms of a longer term thematic idea for the

longer term, plus or this year, plus and that's why it's a good opportunity. >> your answer is telling, and it's hard to find things in the oversold mark because the rally has been so strong since the april low. we'll talk to you soon. jeff, thank you. i appreciate it very much. jeff degraaf. we're tracking the movers at the close. crist ina is back. >> a tale of two retailers. one is discounting sales and one is gaining popularity of sneakerheads and of those names amd and nvidia next.

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we're just about 15 from the closing bell. back to kristina now with the stocks that she is watching. >> footlocker's turnaround plan is starting to look promising. on the earnings call yesterday they said they were confident that the brand momentum would continue among basketball and sneaker culture shoppers. a contrast from last quarter when they warned profitability goals would be delayed by years. here's mary dillon, i should say, this morning on "squawk box". >> the customer has been under pressure. no question about prolonged inflation and interest rates that affect everything from home payments to savings and that's all true, but people do have

discretionary categories that they care about. if you care about sneakers our job is to offer the best. >> kohl's shares are on pace for their worst day ever plunging 23% after posting a surprise loss per share. kohl's ceo told cnbc the department store had higher clearance levels as tried to clear inventory and jump-start a turnaround plan and now we'll switch gears completely, u.s. on, officials are delaying the issuance of ai chips produced by nvidia and amd to countries in the middle east. the concerns are those chips to the middle east will be diverted to china. i'm waiting for comment from nvidia and amd. they said that sovereign ai would hit high single-digit in billions this year and this as more nations build out their ai infrastructure. keep in mind that nvidia said it was working with customers in

china and the middle east to obtain exportlicenses for new products that would comply with u.s. rule. so rid now we don't know exactly how nvidia has been stopped, but they have been working with the middle east and it now seeps l seems that u.s. officials are delaying that relationship. >> we'll see the stock about the low of the day particularly on that news. >> kristina, thank you. kristina partsinevelos as nvidia shares are down $40. still ahead, dell's numbers dropping at the top of the hour. that stock is having a strong year thus far. can that continue? we will break down metrics to watch. the bell is coming right back.

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more than 30% of the fortune 500 use upwork because this is how we work now. weigh are back and getting s on tiktok. julia boorstin joins us with the move. >> shares of nvidia, and reuters reporting that pick tok is working to prepare a u.s. copy of the algorithm for its 170 million u.s. users. this comes as the company faces a potential breakup with the hearing in the lawsuit set for september. when contacted for comment, tiktok said this story is inaccurate and directed me to its filing which said to this qualified divestiture demanded by the act to allow tiktok to continue operating in the united states is simply not possible and not commercially, not technologically and not legally

and certainly not in the 270-daytime line required by the act. they're arguing that what reuters is suggesting is not possible. >> julia, i appreciate it, thank you for the update. it's our julia boorstin. a rundown on what to expect from costco and dell's earnings in overtime and that when we take you inside the market zone next.

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cnbc's mike santoli here to break down the crucial moment of the trading day and we are watching earnings releases in o.t. today. kristina partsinevelos looking into dell and mike, i'll begin with you. salesforce, ugly. some of the software names ugly, as well and we'll turn our attention to pce in the morning. >> the market's been out of gear for a while. so for weeks it's been a stealth pullback. a majority of stocks pulling back and a few other strong stocks. you have a tentative partial reversal and the sales force miss and the blast radius around that at enterprise software. nvidia on this news seemingly down 4.5% on the intraday high and it creates this added bit of tension even though three stocks are up, so to me it was about the market not wanting to lean too far in one direction going into the pce number which will tell us whether this stealth pullback was enough and whether

there was still this ongoing two-month reset process that we have to get expectations lower and test earnings estimates and the economic expectations for somewhat higher yields. >> did people know they shouldn't have put on the dow 40k hats. >> the dow 40k and nasdaq 17,000 and all around numbers. >> 2,000 points off that level. >> and microsoft bumping its head. >> kristina part sin partsinevelos on dell. >> should we trust the ai narrative or is dell a much less leveraged story for ai than perceived? it's jumped in the last month because of one nvidia ceo hyping up its relationship with dell on stage and jensen wong, when he speaks the investor community pays attention and number two, microsoft's aipc event just last monday helped reinvigorate the ai pc narrative, but optimized

ai servers were 3.5% of total revenues last quarter and it will probably increase this quarter and we'll have an outsized impact on total revenues and the pc refresh cycle is under way and hp's management warned that ai pcs would only be 10% of total pc sales and you might not see the big ai push and the servers backlog will be the number one focus for the earnings call and comments about storage, as well about the pc refresh cycle, but this stock is definitely a mover and it was up 32% post-earnings last quarter and the options has a 9% swing and hesitation hence the 5% drop. scott? >> thank you so much. kristina partsinevelos with costco. >> costco's been a hotly-watched stock and the channel has been a strong one and investors have high hopes for the stock and

they're expecting $3.70 earnings per share and 57 billion expected and we'll see if its resilience has held up and we are hearing from walmart and target and discretionary pressure and costco has been able to withstand that and turning to it for cheaper options. >> thanks so much. >> what do you think about this costco report? >> it's expected to be a net winner in this environment. everyone always says costco, is also expensive and never gets a chance to get it cheap and now it's 47 times forward earnings and it has not been this expensive ever so it better live up to it. i don't know that it's necessarily going to be the verdict on the overall condition of the consumer and it's much more verdict on costco's ability to execute in a more price-competitive world and kind of a value-oriented customer. so we'll see, you know the monthly sales in advance and sometimes it's not a lot of suspense in the actual number, but we'll see how it goes. >> let's throw nvidia up and

it's been a massive winner, as we know getting hit potentially on this news as kristina did down more than 40 bucks. jeff degraaf suggesting these chip stocks are a good risk because they're so overbought. ? they are so overbought and the risk-adjusted returns are too good and people have been trying to extrapolate that and it's been nvidia, broadcom, amd to a lesser degree. it matters a lot if the market is not going to decide. it's just going rotate away from the overbought area. in theory, we've done that and there are parts of this market that have sold off a little bit and maybe created entry points and breadth divergences as the indeck has held up okay and more often than not result in a positive direction eventually and it's hard to rely on the immediate term as we're getting this big macro number tomorrow. >> we'll be red today, obviously

and the single-stock standpoint and all turns are to the pce in a moment and see what happens there and we'll take you through the trade tomorrow. [ closing bell ringing ] >> it was a surprise for most of the day. >> yes, we will. that's mike santoli and he'll be back with us again tomorrow and into o.t. with morgan and john. sales force hitting an air pocket and skewing major averages lower today and the nasdaq finishing near the lows of the session and it's beneath the surface and that's the scorecard and the market is just getting started. i'm morgan brennan with jon fortt. >> today will be even busier. reports from dell, costco, netapp and many more and we'll bring you expert analysis of that report, but first, let's begin with today's action. stocks pulling