foods. for record, his draft entry is flat. he picked oracle and starbucks. >> come on, i would like to see how many impossible hot dogs he could eat! i always want to nascar to include electric cars. broaden the tent. >> let him in! free the chestnut! all right, thanks for watching "power lunch." "closing bell" starts right now. all right, guys. thanks so much. welcome to "closing bell." i'm scott wapner live from san francisco today. this make-or-break hour begins with apple's all-time high. its ai rollout cheered by investors and many analysts as well today. in fact, we'll hear from eric stanley's erik woodring in just a moment. his first reaction to wwdc and where he thinks shares can go from now. take a look at the scorecard with 60 minutes to go in regulation, because we have a developing story there as well. new closing highs at this moment for the s&p 500 and the nasdaq, all of this about 24 hours ahead of that fed decision.

tech is the only green sector today. the nasdaq powering yet again, as i just said. we're watching the nasdaq 100, watching apple, and all of the other big names, too. and of course, we're watching yields ahead of the fed and the c p cpi report. that is released tomorrow morning and that is going to be critical. it does take us to our talk of the tape. the road ahead for the markets and apple's newfound momentum. let's welcome in erik woodring, covers tech hardware. good to see you. >> good to see you, scott. >> i've got the notes right in front of me from you. you say that wwdc delivered slightly ahead of our expectations. so what were your expectations and why were they exceeded only slightly? why'd you feel the need use that word? >> sure. because, coming in, i think we probably had higher expectations than the average investor. we did expect apple to limit some of their new apple intelligence feature to higher-end devices. we did think that they would come out with native first-party

app integration and we did think they were going to partner with openai at least initially, and i would check all three of those boxes right now. why i say "slightly ahead," is because apple gave the tools for developers today, effectively, to to their applications, in order to build those out and have more command and control of third-party applications. that was probably earlier than we would have expected apple to give developer those tools. i also think that they left open the possibility of partnering with other large-foundation models to deliver a better experience for the apple user. again, we had high expectations coming in. we think that they slightly exceeded those. >> you think it will lead to that big upgrade cycle. at the end of the day, all roads will lead to that. >> correct. this is what's most important from the developer conferences. we estimate that roughly 5% of

the iphone install base today has a device within an a-17 pro chip. we estimate that about 24% of the ipad install base today with a device with an m-series chip. you add thoese together, roughl 8% of the install base today is capable of running apple intelligence features. that means 1.5 billion devices are not capable. and we think that some of the features that apple came out with are compelling. if we put 1.5 billion devices in context, that's about five times the amount of product devices that apple will sell this year in fiscal year '24. to me, we're not necessarily just looking at a year of growth in fiscal year '25, we're looking at the potential for a multi-year device upgrade cycle, with the one caveat, and maybe the additional, more important details for me being further language rollout, right, it's only available for english-splaenlg today. further rollout becomes more

important. north america is about 30% of the iphone install base. and then the third party app integration. both of those become important details to accelerate that narrative behind the forced upgrade cycle. >> your price target remains $216. your bull case valuation is 270. does that number remain unchanged, or has that changed since wwdc,. >> we take what happens at wwdc, and that gives us the ability to rethink about our estimates and take a more thoughtful approach, as opposed to just saying overnight, oh, well, this might happen quickly. we might want to take a more thoughtful approach to thinking about, for example, iphone replacement cycles. we believe they're five years this year. our current forecast, 227 million unit shipments in fiscal '25 assumes replacement cycles contract from five years to 4.8 years. that's a relatively modest

contraction. for fiscal '26, we have 238 million shipments, implying replacement cycles again around 4.8 years. if we go back to the iphone 12 and the 5g upgrade cycle, iphone replacement cycles contracted by about 0.6 of a year, 0.6 years. we're assuming 0.2 years. if we assume that this upgrade cycle has the same intensity as the 5g upgrade cycle, that gets you to about 250, 255 million iphone units. that is in our bull case today. so we wanted to take a bit more of a thoughtful approach. again, it's very early days. we want to make sure we can tuk consumers and say, do you care about these futures? that becomes a very important feature. we don't want to give them the benefit of the doubt, but take a deeper dive in understanding what the potential upgrade cycle could look like. >> apple certainly hopes that consumers are going to care about these futures. that's the whole story. what was the most significant

thing that you didn't get? >> so i think there's two questions. one is the commercialization, partnership agreement with openai. how, exactly, does that work? is that a cost center, a profit center for apple? again, i think apple probably has the most valuable consumer platform on the face of this earth. i imagine that openai finds that very attractive in drive adoption of their technology. so it almost certainly becomes a profit center for apple. apple will rarely sign a partnership where it is a purely a cost for them. but understanding that agreement becomes important, especially in the context of, apple has something similar but tangential with google. could an openai relationship get to that size over time? that's an important we need to understand. the other one is just maybe the

impact that these new features have on iphone battery life. we may not find that out until the iphone 16, but uh does it become a headwind to battery life that the device becomes less attractive because you need to charge it more often? i'm spitballing, but those are two most significant things we didn't get with perhaps the longer term third question mark being, is there a way that apple can monetize ai in their services business? for example, a potential monthly subscription. >> forgive me, erik. i'm sorry for stepping on your toes there. what away from ai impressed you most? right? there were a whole bunch of other things as apple typically does. and now it's like, now we'll get down to the bad thing. was there a standout there? >> i thought the calculator app for the ipad was pretty ingenious, pretty amazing, and makes me jealous of kids that will be able to use an ipad today versus a ti83 back in the

day. the iphone mirroring on a mac, much requested, pretty neat functionality, you know, totally protects the user, but also gives you additional functionality to use your iphone on your mac. i even thought little details, for example, with vision os, today, there's now 2,000 native applications on vision os. back at the launch earlier this year, there were only 600. we've seen a tripling of the vision os applications, in just a few short months. there's still a ways to go. obviously, there's 1.5 million compatible ipad apps available on vision os. but just to put it in context, there's a long way to go for more apps on vision os, but those are just three of eight that we called out that i thought was impressive and cl completely not related to vision ai. >> that's eric wood rink joining us. we could get those record closes for the s&p and the nasdaq

today, liz young thomas is so sos sofi's head of investment strategy. congratulations again. >> thank you. >> closing highs here. heading into a fed meeting, how are you feeling about the market here? >> there's obviously optimism heading into this, primarily about cpi coming in at least on expectations, if not a little bit cooler. and we had a nice nfib small business index today, a pretty solid ten-year treasury option. there have been encouraging signs. the data has been encouraging, even just today alone, and this is after a few days of flat movement in the s&p. not necessarily pullbacks, but a pause in that upward trend, which is nain anticipation of a of this data. and we get p prk i this week. it's a really big week, and listening to what jerome powell is going to say tomorrow, obviously nobody is going to

expect a rise in rates. >> it's interesting. what i expected to be a more significant period of time has been a little less so, because we don't expect a move tomorrow or a move in skbrul and we don't get one in september. does that change the calculus of how the markets might react to what happens tomorrow, no matter what the fed chair says, my point is, we'll have other economic reads on inflation and just about everything else, way before we think there might be a cut anyway. >> and the way i understand it, obviously, we know the fed meeting started today. we get the statement tomorrow. the way i understand it, if there's important data that's going to be released during the meeting, they do get a heads up. the commentary tomorrow should have that already incorporated. i think the market will trade more off of the data than off of the statement, unless he says something that's unexpected. i don't think that's going to

happen. i think that je roel powell does not really like surprises, and he's certainly not going to like that in a moment like this. we'll trade much more off of cp irk. and as the summer goes on, yibz on the labor market more than anything. we just had that first 4% unemployment print. and if it gets higher than 4%, markets will have to digest that. we have been so used to a sub4% unemployment rate, that it could get jittery as things move in that direction. >> narrowness of the market matter you at all? here we are starting the show talking about apple hitting an all-time high. that's much like it's been of late. that's why the nasdaq has been hitting these closing highs. even the s&p 500, which has been, too, powered by those big tech stocks. >> this is a tale as old as time in this cycle. not something we aren't you'd to already. i think that the risk appetite and the stocks that are leading the market and the fact that the ai theme continues to drive so

much enthusiasm shows us that that buying appetite is still strong, the nuoptimism about th economy is still strong, and the snichl about out being able to continue elongating the business cycle is still strong. so the market being narrowly led the always a concern, because you get fragile from those points. you're hanging ton to just a handful of stocks and hoping that they don't go wrong. but at this point, i don't think that there's anything standing in the way of even a little further upside, especially on a cool cpi print tomorrow. >> what else would you buy if you're looking to move away from tech? let's play it both ways. let's assume that the cpi comes in favorable tomorrow and nothing out of the ordinary happens at the fed meeting. remember whelast go around, the markets seemed to be overly consumed that the fed chair would be more hawkish. it's largely the reason we would be able to rally off of those

april lows and get to the point where we're naub closing highs every day. >> what i think could be very possible through summer, let's say we get a nothing burger tomorrow. cpi continues to cool, kplik data continues to cool. the market has cheered cooler economic data, because it usually means cuts are coming. we're likely to see a september cut pb the probability of a september cut increase as summer goes on. but you have to ask use-of-force, what might happen to the yield curve as economic data cools? as the data cools, i think we'll see a bull flatner, and in that environment, you want short duration equities. you want things like staples, utilities, health care, and you also want energy, typically the dollar is weakening in that environment, which is a tail wind for energy, and i think energy is very travel priced here, comparable to all of the

other sectors that we are talking about on a daily basis. >> the yield question is an interesting one, isn't it? we had this correlation, lower yeelz, higher stocks, in some respects we're getting that, but we're not having that lead to this big broadening of the market and sort of a feel-were the market. as we said, it's being powered by these bigger names. yields down today. i get the s&p is on track for a closing high, but there have been times over the last ten days when falling yields have not been a good stimulus for stocks. they've fallen, because the assumption was, if yields are falling, maybe the economy is falling, too, and therefore, that's not reason to be overly optimistic about this moment about stocks. what do you think about that? >> i think that's what we're going to deal with through summer, where we have this cooling in the economy that everybody has sort of begged for and it seems like stocks have begged for. and what if we get to a point where it's too cool. i'm not sure where that inflection point is yet. in the near-term, if yields fall on the short end and long end,

stocks will celebrate it, particularly in those mega-cap tech names. this to me, because we haven't had that broadening out. this to me is more reinforcement of the belief that we are late cycle. we are approaching fed cuts. we have large cap dominance, again. we have an unemployment rate that was really low, but is now on the rise. a lash market that was cooling. gdp growth that was really, really strong. this is all late cycle behavior. the only thing that i think people are hanging hats on from early-to- early-to-midcycle is will change entirely and i don't think that's the case. i think we'll go through a part of the cycle here in summer and early fall as we approach that fist cut, where markets gets a little bit jittery about, we wanted things to cool, but how cool is too cool? and we'll probably see some bumps as that happens. >> there are some who will say, hasn't ai already changed the

business cycle? just through the spending that we've seen to this point, isn't this literally happening as we speak? >> i think it has changed some of the reaction in the markets. it's changed the market's reaction function and it's certainly changed where i think consumer sentiment and nrs sentiment would be if this didn't exist. yes, i agree with that. i think we're still at a point in that teem and the evolution of that theme where we need to figure out where the profit comes frp. how do we monetize this? this is a theme we would expect to transform industries for years to come still. and we're in the early phases of it. i think we're in the fantasy of it. as it moves and evolves, we have to find out where the profitability centers can be and who the actual winners are. i think those are still bigger question marks than some investments are showing in their p\es. >> interesting. baa i'm looking at those ai

plays, whether it's broad come higher today. we know it, nvidia has been doing of late. microsoft and meta, and of course, apple with its latest salvo in this whole thing is at a new all-time high today. liz young thomas. we'll talk to you soon. thank you. let's send it over to kristina partsinevelos for a look at the biggest names moving into the close. >> let's talk about another stock buyback program, this time to the tune of $6 million at general motors. the cfo cutting back its ev production goal, betting that customers will instead buy gas-powered models. the buyback raising shares almost 2%. speaking of forecasts, nextera energy shares are about 6.5% lower after they guided their earnings per share lower than what the street was anticipating. at their investor day, management blamed higher rates and a slowdown in renewable and storage replacements for that weaker guidance. these last few years were pretty strong, so the benchmark is high according to management, that's why shares are down 6%. first solar shares trading at

levels not seen since 2008. shares will up almost 4.5% on a price target increase from baird analyst. they're betting the stock can go to $344. they're arguing that first solar has a strong backlog and cob seen as a power alternative. it has an ai connection. that's why shares are up over 4%. >> kristina, thanks. just getting started here at one market in san francisco. up next, top wealth adviser sheryl young is back with us. we'll find out the sectors she's betting on right now and where she's seeing big opportunity amid the ai arms race. here after the break. ♪ (alarm sound) ♪ amelia, turn off alarm. amelia, weather. 70 degrees and sunny today. amelia, unlock the door. i'm afraid i can't do that, jen.

♪ (suspenseful music) ♪ why not? did you forget something? ♪ (suspenseful music) ♪ my protein shake. the future isn't scary. not investing in it is. you're so dramatic amelia. bye jen. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com.

welcome back to one market.

the s&p and nasdaq both trying for record closes. j joining us now is cheryl young of the rockefeller global office. nice to see you in person. let's talk about this tech run. you're 44% weighted to tech. you have a lot at stake here. the big techs are among your largest holdings. how do you feel about this trade? >> good today, scott. >> you've gt more than today for a reason to feel good, right? >> for the last few years. and i guess the saying of the week will be, is ai for the rest of us for real? >> you have now latest entry. are you thinking about, you have broad exposure, but you feel they're going to be more than one winner here? >> i do. an% of the s&p, almost 58% year-to-date comes from the mag 7, right?

so when we think about the ai trade, everyone is focusing on these megacap names, but you have to have data centers and cool the data centers. the ai is real, so many have had that cashed in. >> that's momentum, enthusiasm, some might say too much ewe forera. i asked brad about the tech trade itself. the fact that some of these names have run so far. and some may suggest it's too fast. i want you to listen to what he said and we can react on the other side. >> the smart money today, i think, what we hear people calling us is buying software. if i look at the number of calls

we're getting, at our own behavior, i think we're probably getting close to the bottom in software. we expect it to inflect higher in terms of growth rates, towards the end of this year and into the beginning of next year. we're trading 20% below the ten-year average multiple for software, if you look at a multiple of either free cash flow or revenue. so i think this is a good time to go hunting in software. >> we all know. we've come a long way fast. i'm not telling people at home to shove it all on the table. that means i have six out of ten dollars at risk along the market in our hedge fund. i'm not all in. i'm not 100% net long. we wanted to talk about software a little early. the idea that we've come a long way fast, i'm not telling people

to shove it all on the table. >> if we look at the last time we had a major -- one of these megacap stocks split and that i can't mention individual names on here. one of the biggest ones rallied 8%, sold off 65% peak to split. the second largest one rallied 39% to the split and sold off 20% peak-to-trough after the split. i would not be shocked to see a pullback, when we have anytime there's a stock who splits, people have to remember, 4 times 7 equals 7 times 4. it doesn't change the fundamentals. >> the bullish argument is really only centered on the fact that it opens up shares to a potentially new or expanded class. >> yeah, but does it? because there are so many ways of buying fractional shares. >> i know douk that, too, but 120 looks better than 1,200 to some people when you look at a certain high-flying chip name. >> and of course, i have to look at the mac and the psychology.

i think that long-term, post-split, stocks tend to do very, very well. so i would be a buyer in adding more after a split of any major stock that i like, you know. again, without talking about individual names. but on a dip, potentially, over the next few weeks. i would be a little bit nervous at these prices. >> what about brad said about software? a lot of these names haven't traded very well. we asked the question of whether software is dead. you know, non-ai-spec non-ai-spec non-ai-specific-related software. and to his point, i think we're getting close to a bottom. >> i would agree. i picked up a few names last week in this space. a couple of companies really really hammered. i think the dilemma really now is, how much does ai move margins at these companies? and in some instances, we can see a lot of margin compression. we can see a lot of margin expansion.

in other areas, zwrus really questioning as to how much ai plays into the and the s&p is on track for a new cloegdssing hig. do you sit back and look at the market and say this is an unbelievable run in the face of a lot of uncertainty? does it seem completely justified? the multiple of the market makes sense as compared to where rates are and where earnings will be? >> you have to remember where we came from. 2022 was a pretty traumatic year in terms of the downside of the market. we're coming off of these lows. no one can argue that the s&p is not overextended in terms of pricing. it has 100% of the time sold off when it's at these multiples in past episodes. i would not be sokd to see some profit-taking again, because of the pricing. and we really have to see the profits. you know, when you look at the price per earnings, you have to see those continue to expand. and seeing that the global

economy is starting to slow a little bit, will we continue to see enough growth to demand these kind of prices. >> you sound skeptical? >> i am skeptical. i have talked about this on past episodes, i'm a marathon runner, i'm a rock climber, i think a lot about steps to take to get to the finish line. in the 28 marathons that i've run, i've had some that have blown up, literally in some cases, because i was at the boston marathon, but i think about how to stage my race. and what you don't want to do is go out too fast. it's the biggest mistake that runners do, is go out way too fast. when we see these stocks, and you can't look at this market and say the markets are up. really, it's just a handful of names that are up. it's not broad participation. and this this type of thin participation makes us very nervous in terms of how long it can really last. there are other quality names out there, like some of the software names. some of the cybersecurity names. >> what about outside of tech?

>> outside of tech, i really like energy. energy has gotten just pummelled the last three weeks. in terms of valuation, and liz young just spoke about this a few minutes ago. in terms of valuation, it's probably my favorite sector out there right now. >> oh, wow, energy is? >> it is. and if you like ai, you have to like energy. >> people say you like utility ifs you like the, a i play. >> they're already up 12% year-to-date. they're not cheap. >> they're down over a longer period of time, still, which is why the recent run could be a little bit deceiving when you look at what the valuations really are. over a much longer period of time. >> agreed. word gets interesting and dicey on the utilities is the debt picture. as these types of interest rates, it's very expensive for these companies to are you, because they tend to be very debt driven. >> 28 marathons, is that what you said? >> it 28. >> making us all look bad. cheryl young joining us here at 1 market. up next, the countdown to

tesla's shareholder meeting is on. the vote on elon musk's $57 billion pay package is hanging in the balance. we discuss what to expect from that meeting on thursday and what is at stake for shareholders. we'll do it after the break. with gold and copper prices pushing towards all time highs, us gold corp. offers investors leverage to both gold and copper at its project, and mining friendly wyoming. u.s. gold corp has a reserve of almost 1.5 million

ounces of gold equivalents. permits to mine zero debt with only 10.73 million shares outstanding and a portfolio of world class american strategic metals assets. u.s. gold corp, sure, i'm a paid actor,

and this is not a real company, but there is no way to fake how upwork can help your business. search talent all over the world with over 10,000 skills you may not have in house. more than 30% of the fortune 500 use upwork because this is how we work now.

what is cirkul? cirkul is what you hope for when life tosses lemons your way. cirkul is your frosted treat with a sweet kick of confidence. cirkul is the effortless energy that gets you in the zone. cirkul, available at walmart and drinkcirkul.com. welcome back. tesla's annual shareholder meeting just two days away now. the key vote at that meeting will be whether to restore elon

musk's $56 billion all-stock pay package. earlier on halftime report, we did have a spirited debate about that vote, with tesla shareholder brad gerchner of altimeter capital. >> i think the fact that we're having having a vote is outlandish. i think this yunlg's decision is a threat to free enterprise, a threat to capitalism and is ridiculous. tesla shareholders want elon to get paid for the incredible work that he's done at tesla. and to have, you know, monday morning quarterback this stuff, to use courts rather than shareholders in order to undo a pay package, i think, is ridiculous. we voted in favorite of pay package, clearly. >> if you don't like the pay package, brad's right, sell the stock. i think there's an issue for every ceo. i don't think it's anne-american. there's a rule of law. i've be in front of that very yunlg that turned away his pay package on another matter.

in the delaware courts and it's stot a not political, it's the rule of law. >> the day we stop paying ceos who create trils of dollars in value for a pay package that was agreed on at that point in time, it's a bad day for america. we are the most competitive country in the world, because we honor these things. and so we're just going to have to disagree on that and move on. >> so gerchner added to the list of those shareholders voting for the pay pannell, while other high-profile voters have said they'll vote against it. it's such a hotly debated topic that triann capital's nelson peltz, who is not a shareholder in tesla, he is a friend of elon musk, though, he reached out to me with this statement and said the following, quote, elon musk is a true visionary and exemplifies capitalism at its best.

in 2018, 73% of tesla's disinterested shareholders approved is 1 h% risk-based compensation package for elon that is wholly tied to company performance and long-term shareholder value creation. no base salary, no annual bonus, and no time-based equity grants. that is exactly what investors in any country should want. to renege on this plan now defies logic, and i believe, mr. peltz, would be a grave mistake. let's bring in phil lebeau, who covers tesla. he'll be watching that meeting very closely. i'm wondering what you make of the back and forth between mr. gerchner and weitz. >> i agree with brad and i agree with nelson peltz. look, this was a pay package that was approved back in 2018. and i remember reporting on it, scott. and i remember how many people said, have you seen the metrics that he has to hit? and people were focused on the $56 billion that he would

ultimately get, but this was not, you know, a walk in the park. these were ambitious targets that were set, that he would have to hit or tesla would have to hit, in order for him to get that compensation. and if you were an investor back then, i came across no investors who said, this is stupid, this is ridiculous, that he could get $56 billion. you know what most people i talked with back then said? they said, well, great. if he does, i'm probably going to cash in. and did they ever, scott. take a look at this. if you had $10,000 investored in tesla on the day when his pay package started, it would be worth more than $80,000 today. you're telling me one investor back in 2018, who would not take that return? it's easy to look back now and to say, i don't know, if we give him that money, it's going to dilute the shares. but back then, you bet you would have taken it. and that's why i think a lot of the retail shareholders, i don't know how they're going to vote, but elon musk has said that 90% of the people have voted.

my vote is they'll say give him the money. >> there's the fixation on the number itself. $56 billion on the face of it is a large number. not focused as much are the critics on the success and the road map, pun intended, really, of ow elon musk has grown the company from the days of that agreement until now. 100%. and he has hit the targets. tesla has performed. and that is what investors want from their ceos, when any kind of an incentive or pay package is set out there. you hit these benchmarks, you will be compensated. now, it's a completely separate conversation about whether or not any executive is worth $56 billion. but separate the two. this was approved by shareholders in 2018. that's why i believe many of those retail shareholders will vote "yes," even though you saw the institutional shareholder who is you showed earlier who are saying, no, this is going to

dilute the stock and it shouldn't happen. >> we'll see you on thursday. look forward to that. phil lebeau, with thanks for your insight. up next, we're tracking the biggest movers as we head into the close. kristina is back with that. >> we have continued concerns around the faundamentals of one steelmaker who is dragging down the entire sector. that and more, next.

this is our future, ma. godaddy airo. creates a logo, website, even social posts... in minutes! -how? -a.i. (impressed) ay i like it! who wants to come see the future?! get your business online in minutes with godaddy airo

(vo) a successful business owner sells his company get your business online in minutes and takes on a passion project with his son - restoring his father's jazz club, and in the process, revitalizes a community landmark. from selling a business to giving back to where you come from, a raymond james financial advisor gets to know you, your family and the way you bring people together. that's life well planned.

we're just about 15 out from the clo"closing bell." let's get back to kristina for the stocks she's watching. >> shares of cleveland cliff are falling. you can see shares down 3%. they say the stock is a hold right now payoff first lower steel prices and secondly, higher costs for operations. in other words, weakening fundamentals. shopify shares are on pace, though, for their longest rally on record, dating back to its ipo in 2015. that's 11 straight days. you can see shares up about 1.5%. jpmorgan initiating coverage of shop with an overweight rating, pointing to it's over 2 million online mixtures in over 175 countries as a competitive advantage, as well as its productees and use as well as scale. if you zoom out on the actual year, shares are still down

about 13%. last but not least, some profit taking today with southwest shares. yesterday, southwest posted its best day in more than a year after activist investor eliot manager announced an almost 2 billion stake in the firm, but shares are now down about 5%, also dragging down other airline names like delta and united. you can see a sea of red right there. scott?tina partsinevelos, thank you very much. big banks are falling. a breakdown of what's behind the llom rhtacn that space when the be cesig bk. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates

matching your job description. visit indeed.com/hire champion iron offers a rare solution to decarbonize the steel industry. which represents up to 10% of global emissions. the company recently doubled production capacity at its mine in eastern canada. it is now investing to produce one of the world's purest iron ore. enabling green steelmaking without the use of coal. controlling a large portfolio of high purity iron ore resources. champion is considering

strategic partnerships to further develop the region. champion iron. how do you find the perfect father's day gift? simple. just type wt.com. weathertech has hundreds of premium products that will keep dad's vehicle looking its best. like laser-measured floorliners, cargo liner and seat protector for extra interior protection. sunshade blocks harmful uv rays. the cupfone perfectly secures his phone while driving. order these american made products or a gift card at wt.com. happy father's day.

while i am a paid actor, and this is not a real company, there is no way to fake how upwork can help your business. upwork is half the cost of our old recruiter and they have top-tier talent and everything from pr to project management

because this is how we work now. we have breaking news on the paramount deal. david faber has the latest details. >> something of a shocker given how long and hard everyone has been negotiating on a transaction, as i've reported so many times, sky dance and its partner, the private equity firm, red bird, taking control of paramount, through a complex transaction. but key as well to that transaction is also getting the control shareholder, sherry redstone, to agree to a deal in which she would sell that control stake. that control stake is housed in a company called national amusements. roughly 70% of the vote there. there's an economic agreement, roughly $2 billion that would be paid to sherry redstone and nei

to transfer control of nei and therefore control of paramount to the skydance/redbird team. what i have learned and what i think other outlets have similarly, at least "the journal" has potentially learned as well, couldn't quite get up here fast enough, is that even though there had been an economic agreement reached, there was an inability to reach an agreement on what are being termed to me non-economic terms, so that deal could go forward. and that that has been basically presented to the special committee of paramount's board, which is now not going to vote one way or the other. they're the special committee, of course, that is apparently looking after, or is looking after the best interests of the "b" holders, or of other shareholders. but they won't have a deal to vote on if the control shareholder is not going to do their deal.

so i don't know the specifics of what i'm told are fairly small items. again, non-economic in nature, scott. it was my understanding, by the way, that through this weekend, in fact, they had reached an agreement on broadly on things dealing with legal indemnification, they will inevitably were would inevitable be lawsuits, for example, involving this. so how small these deal points were is not completely clear, though they do not appear to have been major deal points. and again, not economic in nature. nonetheless, enough to completely upend a transaction that again has been in the works and been negotiated tirelessly on both sides for many months. this very well is the end, conceivably, of skydance's continued negotiations to try to buy this company, whether it results now, scott, in another

potential bidder for nai, that would not potential paying 15 bucks for half of the shareholders, that would not involve the merger of skydance, the studio into paramount, whether that will still come to the fore, unclear at this point. but what does appear to be becoming clearer is that deal is not going to happen. >> you know, david, you've reported on this outfront every step of the way, and as you know, skydance wasn't the only potential player here, too. and you've reported on the others along this journey, as well. i want your reaction to a headline i see now, speaking of what the next step in all of this might very well be. "the journal" says that redstone is unlikely to try merging paramount in another company. i guess the suggestion being that the whole thing is done. is that how you would take that headline? and if so, where would that leave paramount and national

amusements and miss redstone herself? >> good questions. i think what they mean by that is what i would also say, is the likelihood of paramount itself merging with a skydance, or again, i reported for quite some time on the interest of sony and its partner, apollo, which never really seriously mounted a bid here. that's not going to happen. so, the other possibility is that she gets an equal to or perhaps higher price for her control stake in nai, else that, departs the scene, although, frankly, remember, she still owns 32 million "b" shares, and then leaves it to be somebody else's problem. scott, what i would say when it comes to some of these other names that have been out there, the latest being edgar bronfman, that they are subject to due diligence, that with the stock being down and perhaps continuing to fall. this is a company right now that doesn't have one ceo. it has a three-headed -- a trium

ber vant running it at this point, what in the world do you really expect to be able to get in terms of economic value, someone taking control of this company, if they don't have a full plan in place, if they don't have another asset in place. so you can talk about other potential bidders for nai, again, not for doing anything with paramount, per se. it still remains a public company. none of it gets bought, as was the plan under the sky dance, where you would have the opportunity to tender as much as 50% of your shares at 15 bucks. and then, i guess, this new one figures out a new plan. we'll see if anything really comes to the fore. what would appear more likely from my perspective at this point is that sherry redstone stays in control. nei restains its voting stakes. and they make some moves in figuring out who will manage this thing. still to come.

a lot of firpgs being pointed right now. i've spent a lot of the day, as you might imagine, on the phone, any number of people want to say, well, there's a special committee director named charles phillips, once was president of oracle, has decided that he would not allow a deal. he's a lot of conversation with sherry redstone and turned her against the potential transaction that she once seemed quite sportive of. there are others that simply say that her lawyers at ropes and gray and lawyers at latham representing ellison were unable to come to some sort of an agreement on this minutia that i've heard about. but ultimately, it's her decision. and sherry redstone apparently said, even though you're willing to pay me $2 billion, we're not going to do it. there's a lot of other emotional factors that you might imagine, national amusement has been in her family for a very long period of time. this is about her children, as well, in terms of securing her, you know, their estate, so to

speak. i can't speak to all of it, scott, but it is a curious, curious conclusion at this point, to what has been obviously quite a drama. >> some 11th hour chaos, i guess we can call it, david. i appreciate your reporting. and thanks for coming on with us and giving us the very latest. we'll see what the next chapter is in this ongoing drama, as you say. that's david faber with the latest reporting. we'll go right into the market zone now. cnbc senior markets commentator, mike santoli here to break down the crucial moments of this trading day. leslie picker on the sell-off in the financials and kate rogers looking ahead to oracle earnings out in overtime. mike, i'll begin with you. a day when apple hits an all-time high. cpi in the morning, a fed decision in the afternoon. >> the overall market, pretty placid. we have this churn. a very good treasury auction has

yields down. a week ago, the market was looking for permission to celebrate lower yields in the form of a good jobs report. we got half permission. now we're looking for the same permission when it comes to cpi showing further disinflation and maybe a no-new news fed press conference. it's always willing to overreact to something that's not really a change in the story from the fed, but i don't think that we should expect necessarily the fooegd out there trying to pull the market in any one direction. >> we'll see. it's going to be exciting. we'll be with gundlach in los angeles at double line, right where the fed chair stops. leslie picker in the sell-off in financials. what's going on? >> hey, scott, financials the who's-performing sector of the largest s&p groups today. you have state-street capital the biggest laggards here. we've also seen paypal among the biggest laggards throughout the day, as well as some of the big ones. citigroup, jpmorgan, bank of america each facing some pressure as well.

a lot of this is stemming from some ongoing executive commentary over the last few days at the morgan stanley financials conference. several presenters including those from huntington cut guidance for net interest income spurring some declines among other financials with a tilt toward that profitability metric for loan making. and there were some ore banks who mentioned loan trends coming in a little lighter than otherwise expected, creating some concern on that front, as well. so higher for longer interest rates still muddying the picture for a few financials, as we await may cpi and fmoc, scott. >> leslie picker, we appreciate that. kate rogers looking ahead to oracle earnings coming in overtime. and we've spent a lot of today discussing the future of software. and i'm sure this company is factors into these conversations. >> analysts will be looking for $1.65 epps on revenues of $5.5

billion for oracle for q4. the street will be watching oracle's cloud infrastructure. jpm with a market perform rate said while investors have multiple ways to assess it, we know last quarter, rather, gen-2 infrastructure services had annualized revenue of $6.5 billion up from $6.0 billion and 5% growth in f 2q. and we can build the data centers relatively fast, and i expect the oci growth rate to be over 50% for a few years. guggenheim adding in a separate note, while the i.t. spending environment has not been favorable for some time, as reflected in recent prints for other prominent application software companies, oracle lowered f4 cloud services guidance that appeared conservative at the time. now appears prudent and should help. the stock is up over 18% year-to-date. scott? back to you. >> kate rogers, thanks so much. mike santoli, you can take us towards the close here.

it does look like we'll get a new closing high for the nasdaq and s&p 500, thank you, nvidia. obviously not today, but big thanks to apple hitting that new all-time high. and over 200 bucks for the first time. >> what you think about this market largely comes down to how you interpret the fact that we are able to make these s&p 500 new record highs when you again the majority of stocks either not participating, the median stock down .5% since the end of the first quarter, whether that shows you resilience and how the market is defending itself, or if that shows you a little bit of eroding demand under the surface. i view it as still a bull market, a low-conviction one, a low momentum one, a very collect i have one, and probably looking to re-price the fed path and maybe if september seems like it's still on the potential calendar for a cut, after tomorrow's press conference, it

could be enough to energize the rest of the market. you have new 52-week lows and highs. look at the permission the celebrate some treasury yields. >> bell's ringing. and that bell will mark a new record close for the s&p 500 and the nasdaq yet again. that does it for us. i'll see you in l.a. tomorrow in doubleline into o.t. with morgan and john >> a late-day reversal with the s&p 500 and the nasdaq closing at record highs, as apple hits a new high of its own, fueled by ai excitement. that is the scorecard on wall street, but the action is just getting started. welcome to "closing bell" overtime. i'm morgan brennan with jon fortt. >> in just moments, rubric's first earnings report since going public, plus, numbers from oracle. we'll bring you those results as soon as they cross. >> and a pair of payment ceos share their views on the state of the consumer and spending