spurring buys that create artificial demand because we're looking at supply versus demand. what i need to see here, it's really the -- the train stops are 21, 28, 40 and 48. once that demand comes in, i need to watch to see if those are maintained. again, fundamental. careful to watch. >> watch out for your gamma rays, or whatever it is. thank you for watching "power lunch." "closing bell" starts now. welcome to "closing bell." i'm scott wapner from the new york stock exchange. the final stretch gets under way. i'm going to show you the scorecard with 60 minutes to go in regulation because it's looking a little different than it was just half an hour ago. in other words, it's green. it was red. the major averages have spent much of the day in the red. even if -- even as yields have fallen but buyers apparently have seen enough. they started to buy some stocks. most s&p sectors were red, but

now several are turning green there, too, including real estate, consumer staples, health care, technology, com services. they're all green. tech names, nvidia, apple, amazon, they've definitely helped with the turn. look at apple pushing $195. it's been up six days -- or six sessions in a row. today would be seven. and it happens in front of the worldwide developers conference. we'll be live from there on monday. capital wait for that. the moment, the a.i. moment, we think. we'll see what happens. we're watching crowdstrike, too. ahead of that company's earnings tonight in ot. it is the best performing cyber name year-to-date. a lot is on the line. look at that chart and the run-up there. we'll ask shareholder malcolm if it can live up to that hype. let's ask adam parker, back with me. right there he is at post 9. welcome back. >> thanks for having me.

>> how do the markets feel to you now that we've turned a page to june? i thought it was interesting the last couple of days, yields down, stocks down. haven't really seen that. just asi was to say that to top the show, we have a turn today. >> when i was on with you a couple weeks ago with joe terranova, we had a debate about whether a vacuum of information would be bearish or bullish. remember, it was sort of this notion, now there's no news out so we'll trend lower. i feel like we have economic data coming this friday and next wednesday with cpi, with the fed. i think we're skewed to the positive, actually. i don't make the short-term calls, as you know. to me, i think people think fundamentals are hanging in okay. the company guidance has been pretty decent. the conference so far, nobody has taken down numbers a lot. i don't think the fundamentals are dough tear rating at a rapid enough rate that would indicate we're going to have a growth scare this month.

>> i was wondering if you think we're having that now. if this is some kind of growth scare and that's why, as yields have fallen, stocks are falling, too. but you're suggesting it's a scare. that doesn't mean it's a reality. >> the area i feel most reality about the square is software because as you saw, whether it's now or crm or -- >> mondo. >> yeah. a lot of these big companies that every growth manager owns at least a couple of stocks we just listed off, if not all of them, they're down 25%, 30% in the last three months. they're down for reasons you can't just say, now it's cheaper. you have to say, is there risk to that. i think we counted 19 software companies down 10% or month last week. >> you said you wouldn't buy the dip either. >> i feel worse about it, exactly. that's an area the growth scare feels a little more merited or i need to see some confidence that's not real.

>> was it a growth scare or money is being diverted to more direct a.i. plays and players? >> that could be. you've seen some of the -- obviously, nvidia goes up every day. even some of the other semis. i think some people are just worried about how software is changing, how time to market is changing, how a.i. can maybe help. a lot of small and midcap softwares, their growth rate is a little under threat. that's an area i would say the growth scare, i'm a little scared, whereas other areas, you know, kind of more macro consumer, i'm not as worried we're about to hit some kind of consumer cliff. >> do you feel like we're prime for another april-ish thing or not? as we get closer to perceived cuts, is there reason to think that we should be more negative? i mean, i ask you that, i guess, with a change of skepticism.

as we move closer to the time we think they're actually going to cut, are you really going to get negative now? >> what i'm worried about the way i'm recommending positioning is the historical fed playbook says you own industrials, discretionary, that typically works first when they get accommodative. we upgraded industrials a couple weeks ago just worried that i was too negative on that space. and retained the negativity on the discretionary companies. many of which have had monster moves in their stocks, either because of short squeezes or slightly less negative comps. so, i kind of look at the world, all right, the stuff that's down that i'm, you know, more worried about, the stuff that i'm worried about is retail. both sides, i can see things to be worried about on both sides. >> you're making a story that says, well, just stay with the mega cap techs. >> i like the mega cap techs. i like nvidia. i know he's signing women's clothing today so i don't know

if that's a top when your ceo is signing clothing. >> signing autographs? >> no, like "talladega nights." you didn't see the x on that? you'll see it later. if you're trying to figure out where you need exposure in this world, it has to be growth themes, a.i., semis, your life sciences and what that can bring, power. you've seen that from the utility sector. >> was that real? what was that story? >> i think it's real. >> up 13% year-to-date, utilities. >> i think altman from openai saying we don't have power for a.i. really awakened people. and i think that the odds you get four, five mag 5 or 7 investing in nuke is pretty high. >> i can still buy utilities after that run? >> yeah, i think so. when you say utilities, you have to be careful you don't mean coal-fired -- >> well, every single utility, but the entire space has had a move.

>> that's because we're gdp managed growth businesses for the past 40 years and now a lot of them are growth stocks. they're going to power kind of a.i. airports all around the world with 70-pound nvidia chips like candy all over the floor. it's a different world. and i think, you know, there's no growth investors in that space. it's zero percent to small cap growth for utilities. >> you always come with names. you're not afraid to talk names either. >> sure. >> have you updated any kind of short ideas in the market you want to talk about that you think we should lean out? >> i definitely think these traditional retailers that have gone up is in your basket of short ideas. one i picked on a lot is target in the last 18 months. that was right and then wrong and then right again. these businesses are -- they don't grow in the store. they don't add new stores. they don't grow online. i think a lot of those. we have some dollar store stuff this week. >> that doesn't mean every single retailer is bad. >> no.

>> it's a bifurcated market as we've seen -- >> walmart and costco are different. amazon is obviously different. if you're target and subscaling your competitive categories, you don't grow. i think the same thing is true for the dollar stores. there's kohl's. that's probably going to zero -- >> probably? >> if it's three, five or ten years. there's no need for those kind of stores. they don't do anything that adds value. but everyone knows it's hard to make money that's been unreformed for a decade. you're worried because they put up one halfway decent -- >> your going to be on the wall -- >> partially true. i've never been there. i'm not about to go. that's not my jam. if they sold air conditioning units for this table, i might buy one. >> they don't want you, belief me. >> you know what i mean. i think the physical retail,

everyone has known for 15, 20 years it's impaired. do you get run over because when the fed runs, they cut. you've seen it with foot locker where the stock has huge moves on okay quarters. that's the part i'm worried about. i know i don't want to exposure to physical retailers. i do want exposure to semis, housing, health sciences, life sciences. >> let's bring in alicia at post nine with us today. you're pretty bullish, right? you have been and you're staying that way. >> we're staying that way. there are some clouds out there. that's essentially coming from the consumer sector. some of the data the last week has definitely given pause. to your note earlier that bond markets are rallying. the yields are down, the market is down. the market can be okay with had higher yields as long as growth is coming in better than

expected. when the u.s. is missing on some of the data points, ism manufacturing, new orders, consu consumption, that's when the market starts to get freaked out. >> why aren't you freaked out. >> i just think this is a pause. the big story is that household net worth is up $40 trillion in the last four years. $11 trillion since the beginning of november. that is going to power the economy. that's not to say there's not pain in some areas that, adam, my friend here has been talking about. clearly, the lower end consumer, the lower end of the income scale, those are the folks who -- but that's not driving the aggregate data. that's not driving a.i. that's not driving the investment in a.i. nor the productivity. >> i thought the story, though, was we were okay with fewer if not -- no cuts because the economy was going to be good enough to give the fed cover to wait, right?

what if the economy starts to weaken but inflation doesn't come down to the degree that the fed's comfortable in cutting, doesn't that wreck the story? >> are you saying, is it stagflation? what i'm saying -- >> not stagflation. there's a piece in the middle. stagflation implies no growth. really high unemployment. we don't have to be talking about that. but my story for the bull market was, growth is good. jobs are plentiful. and that gives -- and inflation is coming down, but also the fed is not ready to cut. they don't need to cut. who cares if they cut as long as the economy remains good and earnings stay good. you can't have it both ways. if the economy starts to weaken and they're not cutting for the right reason, then don't you have a problem? >> that would be a problem but we don't think that's the problem. in the end we think growth is going to hang in there and we think the labor market is what is strong, normalizing and the earnings are coming in. the forward 12 month is now up

to 259 or something like that for next year. so forward margins are at 13%, the highest it's been in 18 months. the fundamentals of the market are still hanging in there. there is very little evidence there's an actual slowdown going on in the aggregate. as to software, yeah, it's 10.5% of the s&p but 7.5% of that is microsoft, which is the hyperscaler exposed to a.i. you're talking about 3% of the market where maybe, maybe the earnings models have to change a little bit. it's not going to be detrimental to the overall market. will we have more volatility in your scenario? we will definitely have more volatility. >> i would have answered that question, yes, if people get afraid. whether it happens or not, it's really about if they get afraid that stagflation has a higher probability, the market goes lower. it's not the base case. maybe we're all in agreement. >> it doesn't have to be

stagflation. >> what if we just have below trend growth at a time when the fed isn't ready to cut? >> the market's going lower. if people are afraid that's going to happen for six or eight weeks, the market's going lower. the story for it the bull market has been simple. financial conditions have been easy and margins have been going up. you want to fight the u.s. equity market when those two things, you go for it, but you'll get your face ripped off and you're going to get fired. it's that simple. we had easy conditions since last november and margins were going up for most companies. you have to be long. so now i think the question is not -- is what we're all kind of trying to figure out is, when will financial conditions tighten up? what's going to cause them to tighten? is it failed options on the ten-year yield? is it something else, some rumblings in the real estate that we saw the last week or two? it has to make you afraid that conditions tighten. i'm not seeing any signs of that, but that would make me worried because multiples would

drag. margins are going up for a lot of businesses. we have to watch commodities, productivity versus wages. so far i think 75% of the companies are forecasted to have margin expansion in the next 12 months. that's the one thing the sell side is good at. they're good at knowing whether the margins will be up or down. they're not good at forecasting pricing and eshings and -- >> then you're arguing a bullish case. >> you shouldn't get over negative. what you described in your scenario is financial conditions tightening, in my mind. >> or the pocket where the fed stays hawkish and the data continues to be weak and the fed doesn't move fast enough to change its hawkish tone. as we know, the institution itself is slow, right? so, does the data move quicker than the fed? that's your pocket for a volatile moment. overall, we just think the base case is still positive. look, rising margins, rising

earnings, you can't fight it. you can't fight it. you'll find your weak areas for sure in the market -- >> don't fight the margins. >> in the end, look at small caps. small caps are telling you the story, which is high rates hurt some areas of businesses and some areas of the market. and it's going to continue to be that way. either we have a slowdown in small cap spend or we have a 5% fed funds rate and small cap spend. that's what small cap is telling you. >> i maybe was a little too mean to kohl's so i have to say something positive to -- >> did they reach out to you? >> no. i don't care. maybe the fed isn't slow. maybe they're doing a good job. i know everyone is not as experienced, doesn't have as much access -- i'm no expert, but like they seem like they're pretty smart and seems like they have access to good information, and the market is ripped. who knows. everyone likes to say they were slow -- >> they were slow at the start. >> were they? >> they admitted it. >> things stayed long.

equities, i don't know if you cared. did you care? >> it's not like -- >> one month -- >> it's not like 2022, it's not like that was a great year. >> one month in 2023 and one year the market has been down 2.5% or month. every other month it's been pretty good. i'm just saying, maybe they're doing okay. and i don't want the fed to cut a bunch of times. when they do, the economy got worse. what am i rooting for? nothing. i don't need them to start freaking out. i don't know why people had seven cuts or whatever the hell they had in january. that never made any sense to me. i don't know who they interview for that. >> we'll get a look next week, alicia, at the forecast. >> wednesday. >> we'll get it next week. >> you mark your calendar, okay? after you get back from kohl's. >> i'll be on a plane. >> i'll be on the screen. >> please. >> look, they're likely -- their

target fed funds rate is probably going to go lower -- i don't think they'll cut this year. i think they'll let the market it's two. >> do i want to do what tony pass of goldman has been saying, mega caps continue to play the mega caps, sword and shield. i keep sig that because that's what he says. >> it's both. it's not having to borrow. it's having free cash flow and having the businesses to invest $350 billion in a.i. and still not kill your margins. that is extraordinary. that's the moat. that's why they're 30 times earnings and not 15 and that's why they're still growing their multiple and earnings forecast. you have to be in large cap. >> isn't it interesting, too, on a day like today, speaking of large cap versus small cap. again, the yield's down. russell down. small caps down. that tells you everything about growth scare, right? otherwise you'd have russell up, but if you think that the most

economic sensitive stocks within the market, small caps -- >> there's a group of people who think small caps can outperform in a flat to down tape. i don't get that at all. i think if you get way more bullish again, then maybe you could say it's risk on, i'm small cap, regional banks, more grungy. at this point where we are, we've had a huge move. i think you want to own the businesses that have pricing power, that have productivity, exposure to the right market. we know what they are and it's not a lot of small caps. >> what about financials? financials had a nice move and now not so much. >> i just downgraded them a couple weeks ago. i don't think they're going to benefit from a.i. in the first wave on the cost side like maybe health care or other places will. most financial business have to do things in duplicate. they have to predict their employee and customer behavior. they have a lot of spending up front before they can realize the productivity. as you know, at least depends what bank you go to, but the

bank i go to, they invest in productivity. i just get worse and worse service every year. so, i'm not sure it's great for the shareholder. we'll see. but i know it's not good for the customer. so, we'll see what happens. i'm less optimistic on banks. >> last point to you. >> i think on the financials, it's about the basel 3 endgame. part of the reason we had the rally, the signaling the endgame would not be as stringent because the capital needs won't be as high. return more to shareholders as part of what we saw. ultimately bullish. some clouds out there. go big. go big and go -- >> i'm bullish on air conditioning. maybe we should own carrier. >> you look like you need some. >> it's so hot in here. i think carrier is my favorite stock. >> ever since the bulls comment, you've been beaten up a little bit. >> no. i've been saying that for ten years. so, it's not -- there's nothing new there. >> all right. >> useless.

>> thanks, guys. appreciate it. we'll see you again soon. >> thank you. two kristina partsinevelos now for a look at the biggest names moving into the close. >> scott, it's time to say good-bye to p&o cruises australia. carnival cruise line will fold it and rebrand them as carnival. demand is so strong that carnival needs to leverage the extra space and the extra ships. this fold is part of a latest in a series of strategic moves aimed to increase capacity. everybody wants to go on a cruise. shares up 5%. shares of betting firm flutter entertainment are up after oppenheimer said the stock is outperform. they raised their price target to $240. they say the company offers players the most prebuilt gambling selections compared to the competition and they believe the company could absorb higher taxes better than fanduel and draftkings. still only up 7% year-to-date. >> thank you. up next, we have your earnings rundown.

crowdstrike reports in overtime. shareholder malcolm etheridge is standing by to tell us how he is playing that space. the overall software space, which adam parker does not like, as he just told you. we're live at the new york stock exchange. you're watching "closing bell" on cnbc.

her uncle's unhappy. i'm sensing an underlying issue. it's t-mobile. it started when we tried to get him under a new plan. but they they unexpectedly unraveled their “price lock” guarantee. which has made him, a bit...

unruly. you called yourself the “un-carrier”. you sing about “price lock” on those commercials. “the price lock, the price lock...” so, if you could change the price, change the name! it's not a lock, i know a lock. so how can we undo the damage? we could all unsubscribe and switch to xfinity. their connection is unreal. and we could all un-experience this whole session. okay, that's uncalled for. welcome back. software stocks losing luster, now on track for their worst quarter in two years. in overtime crowdstrike reports. joining me now, crowdstrike shareholder and cnbc contributor, malcolm etheridge of cic wealth. it's good to see you. we can separate some software stocks from the pack. this stock has done it, right? crowdstrike has had the best performance of any of the cyber names year-to-date. adam and i were just talking about the upset in some of the other names over the last week or so.

so where are your expectations going into overtime? >> yeah, scott, i actually think -- i own crowdstrike personally. a number of our clients in the firm do, too. it's been my single best performing stock in my own personal portfolio since i've owned it. i bought it january of '23 right at about the $100 mark. the reason i'm so bullish on the sector itself, plus software, one is because cyber security has become a nondiscretionary spend. the s.e.c. coming out and mandating large companies to let us know of any material incidents around cyber security is just another tailwind at the back of these companies. but crowd strike, specifically to your point being cloud native, it's no surprise it's become the best performing one out of the pack. especially after palo aloe inadvertently justified crowdstrike's model by talking about the need for platformization and getting everything under one roof in a

fragmented market. >> what about the fact that the stock is up so much, what does that do to the bar? didn't we see what happens when stocks go up a lot or where the bar rises a lot and then you don't meet that moment, hello service now, mondo, i could go down the list. >> i definitely think it's going to take a beat to impress crowdstrike shareholders tonight. i think a little beyond today, right? this is the sector i have the most conviction about over the next 12 months plus for a whole host of reasons. pwc did a survey of about 4,000 global leaders in the enterprise spend on cyber security is expected to increase in 2024 for these guys above 2023, like garter in's research says $215 billion is the number we can expect on cyber security defense. this is, like i said, a nondiscretionary line item for a lot of these companies. if there are shareholders that don't like what he they hear

today decide to dump those shares and we trend towards 270 is the support level for this name, i would definitely be a buyer of those shares. long term this is the sector i want to be in. >> what about palo alto? again, all cyber security software stocks, say that ten times, are not created equal. >> palo alto was once the dominant leader in the space, but crowdstrike is gaining on them. it's definitely something to be said that they receded but i also think it was an overreaction to share off palo alto shares when it came out. yes, they definitely have quite a bit of legacy on premise technology that will need to be moved to the cloud. but the opportunity in the space, the number of dollars that are going to have to be spent in this space, because just as good as the cyber defenses are becoming, the attacks are getting even better,

with the use of a.i. and everything else we've talked about countless times on this network. so, i just think it's short-sighted for shareholders to look at a palo alto, for example, who's going to benefit from the $10 billion plus in the biden administration for cyber security alone because they have the highest level of federal contracts in the cyberspace. i just think it's short-sighted for investors to think about selling off either of these names, specifically crowdstrike, because their whole land and expand model they offer is just easy for me as an investor to understand. you have five of our modules you really love. here's another five you'll love more. and you like those ten. here's another five you'll love more. they incrementally waeave their way through your organization to the point they're the only provider you have in a fre fragmented otherwise sector. there's a lot of opportunity for consolidation here in this industry. and i think crowdstrike being the leader shouldn't be very much of a surprise.

>> what about tech at large. roared back from the april lows. it's up 7.5% in a month. what now? >> well, you know, i love software. i love tech. primarily because of this little thing called operating leverage. any time these companies build a product, it costs them almost nothing to push that product to the very next customer once it's built. so, the operating leverage for them being able to sell one more seat on that software is what makes these companies so attractive. unfortunately, i look at a company like tesla where elon musk has proven just how easy it is to keep things humming. twitter's still alive after he bought it and let go about 80% of the workforce. so, that right there proves the thesis that once the software is up and running, it doesn't really cost them very much to get it in the hands of the next customer. >> that's the greatest example. you know, to be honest with you. the value is a lot less than what he paid for it. >> yeah, no, i don't mean necessarily that is a great investment.

i just mean it proves the thesis that you don't need necessarily a ton of lift once the product has been shipped and that's where the operating leverage is for these software companies. so, the selloff in salesforce i kind of understand. i think, again, a little short-sighted for investors, primarily because they don't have a sure fire offering in a.i., a.i., a.i. that's exciting enough to say that they're going to be able to ring the register the same way microsoft can, for example, with chatgpt. i think software and tech more broadly is definitely going to be the winner by the end of this year as we look at where the opportunities are. as you guys just got done talking about, it's the sword and the shield. we talked about safety. we look for a safe haven when things get bumpy, as they probably will later in the summer. tech is going to benefit once again. >> do you think we're higher or lower by the end of the year on the s&p from where we are now? let's call it 5300. what seems reasonable to you? >> i think we end the year higher than where we are today. i think investors are showing a

willingness, interest and desire to continue to invest in what we considered to be bad news coming into this year. higher for longer. we're now in june. we were talking about the over/under on six rate cuts in january. now we're having conversations about whether we'll have any at all. that tells me that this is a resilient -- there's a resilient investor out there that says, irrespective of all that bad news you want to throw at me, i still feel good about the market more broadly. >> we'll leave it there. appreciate it. up next, wells fargo securities chris haesrvey is wi us. why he's changing his tune a little on the reflation trade. he'll join me to explain just after the break. "closing bell" is coming right back.

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welcome back. stocks are struggling to find their footing as we head towards the close today. here to share is market playbook right now, chris harvey, from wells fargo securities. welcome back. good to see you. >> good to see you too, scott. >> how does this market look and feel right now? >> feels a little chop in. feels like we're looking for a catalyst. there's no real catalyst out there. and i think this chop lasts until we have earnings season. there's nothing to hang your hat on. >> that long? >> yeah, i think so. anything can change on a dime,

obviously, but i don't see a ton of catalyst out there. we need earnings to get things higher until we have another earnings report or earnings cycle, you won't get a good feel for the power of the earnings cycle. i think we have to wait until the summertime. probably second week of july before we start making substantial headwind, substantial upside. >> so, fed meetings and data is somewhat irrelevant? >> yeah. i don't think the fed will tell you anything you don't know at this point in time. the fed is going to say, we follow the data. the data is okay. the economy looks like maybe it's not as strong as people expect. it looks like people are getting very nervous about the consumer. inflation looks like it's -- tame is not the right word but it's not hot at this point in time. so, what is the fed going to follow that you don't already know? i don't see that as a catalyst. i just see that we have to

digest more of the information, we have to get to earnings season and then we can start making more substantial moves. >> you do have a big call, though, about some moves that you think viewers should make. last time you liked some of the reflation trades, right, energy, industrials, things like that. now it's time to fade those or what? talk to me. >> so, what we liked, and maybe there's a misquote here. what we liked is the industrial space is a great place for stock picking. you have a lot of companies that are a.i., a.i. adjacent, a lot of companies that are tied to the super cycle, but for the most part, we haven't liked the reinflation trade. it's a trade that we want to fade and is beginning to fade. we think it will continue to fade. >>. >> i got you. what's going to work? >> what's going to work, we're really boring. it's a barbell with something

garpy, something growthy. we want to barbell that with something more defensive. that's health care, utilities in a 60/30/10 allocation. that's worked out year-to-date and for the last year and a half. >> what about tech, which is back awake? >> you've got some tech with communication. we just like the valuation of the communication space. we like the technicals in the communication space. and if you look at the fundamentals, they continue to power higher. tech is a couple of names. if you look, what's driving tech year-to-date, it's nvidia. and most everything else is a secondary or tertiary trade. we don't have strong conviction with tech at this juncture. >> we're looking at utilities. i think there's a debate in the market as to why they had the move they did recently.

over a longer period of time they haven't had nearly as great a move relative to the equal weight s&p 500. so, just saying the move, i guess, isn't the most accurate. the recent move that we've seen those stocks really go off to the races to some degree, does that continue? should it? >> i think it does continue. it will be a little bit of a bumpy ride. we upgraded the space at the end of the year. it was washed out, oversold. we thought it could work for multiple reasons. we thought if rates go down, it works. we thought that just -- you could get an oversold bounce. we didn't really appreciate the issue around the electrification or the power trade. that has been moving it. a lot of people are asking us, hey, if you look at utilities, they've outperformed year-to-date. do you want to take profits? we don't want to take profits at

this point in time. we think the valuation is still compelling. we think that the technical picture is still very positive. >> overall, for the market, you think we can hit 5500 and then maybe all bets are off? >> all bets are off. we think it can get over 5500 this year. you know, we'll think about, as we go through this pace and what we're looking for is, we're looking for the winners to keep winning. we're looking for the more profitable companies to continue to gain market share. that's what we're seeing. there's a massive -- as you know there's a massive secular trend. it's continuing to play out. we don't particularly like the economy. we don't think the economy is particularly strong. if you're tied to that secular trade, we think there's a tremendous amount of upside. you're tied to the consumer, you know, selectively can make money, but overall, i'm not sure why you'd want to be aggressive on the consumer at this point in

time. >> thank you for talking to us. we'll do this again soon. chris harvey from wells joining us once again. rear tracking the biggest movers into the close. kristina is back with that. we have too many sales promotions while a freight company is moving in the opposite directions with higher shipments. (♪♪) (♪♪)

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we're 15 from the bell. let's get back to kristina partsinevelos now for the stocks she is watch pentagon. what do you see? >> bath and body works, one of the worst -- worst performing share move. shares down 21%. the q1 earnings beat was no match for earnings guidance. executives said on the call this morning they had to issue more promotions in the start of the quarter but promise they cut back on sales as demand has grown. saia shares are up after they saw acceleration in daily shipment counts. they posted 16% year over year increase in shipments in q1. up about 6%. the stronger results helping other freight firms like old dominion and xpo. both up a little over 1%. scott? >> thank you.

kristina partsinevelos. still ahead, bitcoin is bouncing today. we'll tell you what's behind that rally and how the rest of the crypto space is faring as well. there you go. over 70,000. it was over 71 earlier. hanting] they ignored your potential, and mocked your ambition. but it's not the critic who counts. with every swing and block, your game plan never changed. ♪♪ some still call it luck. let them. because you know what it's always been. inevitable. ♪♪ ♪♪

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we have some terribly sad news to report. frequent guest, long-time cnbc contributor and a friend to many of us, ben white has died at the age of 52. he was an accomplished journalist holding positions at the messenger, politico, "the

new york times" and the financial times. ben's partner sara posted on x earlier this afternoon that he passed away saturday, june 1st after a brief illness. our condolences go out to sara, ben's two sons and his entire family.

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. we're in the mark zone. mike santoli here to break down the crucial moments of this trading day, plus kate rooney on what's behind the bitcoin rally and pippa stevens.

mike, i'll turn it back to you. we have falling yields, falling stocks and late day move here. >> three days in a row we've had a low of the day between like 12 and 1:00 p.m. eastern time. it seems as if -- now, we definitely had this split market. twice as many stocks down as up. definitely more attention being paid by the market to hints of economic slowdown beyond what we'd prefer. so, yields are down. but the sector makeup is not really following along as we mentioned. banks down, small caps underperforming. it seems as if the moves are mild enough and if yields are falling, the market can get into only so much trouble, split nature of the market, too, is kind of offsetting things on an index level. volatility remains low. low volatility, yields are more friendly, you know, the intraday traders are just saying, okay, we're not going to necessarily sell hand over fist until we get something that sways the debate about the economy, the soft landing. >> does the russell being lower with yields lower just

underscore growth scare? >> i think so. that's my takeaway from it. it's been a couple of days where the script hasn't been followed on that front. i guess that would be the way to interpret it. >> i don't know how else you could. >> i want to withhold judgment if this is a new trend or noise after you had a weird month-end move and you have this quiet, apprehensive trading in the new month. >> kate rooney, pretty good rally in bitcoin, both bitcoin, coinbase. things that have rallied. coinbase is up 8%. >> it's having a really good week. you've seen bitcoin back above 70k. it had been trading in this tight range in the high $60,000 level. it's been really sensitive to rates and macro economic data as well, anything that could affect the fed's path. it did first cross 70k yesterday on the back of lower bond yields. ether the second largest, up 20%

or so after the s.e.c. gave this green light for etfs, similar to what we saw in bitcoin. the real moves and way more volatility we're seeing in sort of these riskier pockets of the asset class. if you look at the crypto proxy stocks as they're often known, mining companies, core scientific is up more than 40%. it announced a deto expand into a.i. data centers. that may have grabbed attention and sparked the rally but this looks like a short squeeze. about 88% of the available shares out there are shorted. the average stock by comparison is closer to 5%. microstrategy higher this week despite announcing a tax fraud settlement between founder michael saylor and washington, d.c. and coinbase up 6%. >> appreciate it. thank you. some of these correlations, it's like, okay, if bitcoin, for example, is an indicator, a barometer of risks, it's not

like a ton of rifshg taking in the market. >> it doesn't feel like it. although maybe the closest correlation with bitcoin since the middle of last year has bin nvidia. literally one for one. nvidia trades in the $26 range. you also had the interday rally in nvidia. that helps out the indexes. i don't really think that's necessarily causal. but it just shows you there's a little bit of a scrambled setup with some of the weird macro moves overnight, too, in terms of mexican markets and currency and -- >> india, yeah. >> i would point that out as a way of saying, people are on the defensive. if you had conviction about where you're going in terms of macro and in terms of sector correlations, it got a little up-ended this week. >> i like the word you use, scramble. i think that's perfect to describe what we've seen. >> pippa, pvh. yes, crowdstrike gets a lot of the play today. don't forget about this one. >> pvh is moving lower ahead of

its roshg. what's been a choppy earning season for retailers, calvin klein and tommy hilfiger warned in april about the softening consumer back drop. saying it led to a cautious approach to planning for 2024. pvh previously guided to an 11% decline in revenue for q1. although it did forecast gross margin expansion. reiterating outperform rating on the stock saying while slowing and increasingly promotional european market is a concern, they continue to see evidence of underlying brand. that stock down 2%. stock? >> pippa, appreciate that. mike, back to you. we'll be looking forward to a jobs report. jolts today gives us a clue on how tight or not the labor market is. >> you look at it in a vacuum and say, this is the more balanced labor market the fed's been playing for and wishing for. it's kind of here. and it does sort of agra vat

that sense out there, though, that things maybe are softening up more than we wanted. i don't really think we have much to go on, but it feels as if you're never fully satisfied with the perfection of the data flow. i do think yeelsdz lower. disinflationary actions across the yield, rereversal in copper, in oil, in these things that had people a little worried that we were in this different regime. all that stuff works in the fed's favor. i do think we're going to have one week from tomorrow is the decision on the fed. and they're going to have this to work with. all the market stuff in front of us to work with. i also feel they're not consumed with the idea we have loose financial conditions and we have to do something against that. if the inflationary indicators are wind at their back, they're going to be happy with that. so, maybe the market is just kind of stuck here for a little bit until we get confirmation that's how it's going to go. >> thank you, mike santoli.

our senior markets commentator. a little move later in the day takes us green on the s&p. we may not get to 5300 today but we're trying to work our way back. dow will finish, though, looks like better than 100 points. i'll see you tomorrow. stocks found some support midsession in a seesaw day for investors but closing off the best levels. welcome to "closing bell: overtime." i'm jon fortt. morgan brennan is on assignment today. we have another big hour of earnings coming your way with results from hewlett-packard, crowdstrike and pvh. we'll have numbers as soon as we get them. and a key read on software. s.a.p., christian klein joins us from the