it was ultimately acquired by at&t, but that youtube developed the streaming capabilities, and it was only when youtube -- when they saw that youtube did have the streaming capabilities for live games, so many people watching at once, did they switch over their distributor. >> julia, thanks very much. julia boorstin reporting from that nfl trial. "closing bell" starts right now. >> welcome to "closing bell," i'm mike santoli in for scott wapner. this make-or-break hour begins with stocks levitating into a new week and on track for reco. we'll discuss this big run with our experts, including blackrock's rick rieder in just a few minutes. the usual strength continues in semiconductors. today, led by broadcom. also, though, joined by a broader selection of stocks. the nasdaq 100, have to say, still at the center of the action here, up about 1.5% and not too far from the 20,000 level, which is not something we

had necessarily anticipated. there's the composite, up 1.2% as well. with consumer and industrial names all participating in the gains, although to a lesser degree. now, despite ongoing concerns about this narrow bull market leadership, three wall street firms have raised s&p 500 targets today as the first half winds down, bowing to the persistent strength of that benchmark. treasury yields up a few ticks on a quiet news day for macros. a series of somewhat reassuring inflation readings takes us to the talk of the tape. where are we on the path of that hoped-if soft economic landing and are financial markets correct in their read of the fed's current stance? let's ask rick rieder, blackrock's cio of global fixed income and head of its allocation team. thanks for coming by. >> appreciate it. >> in the last week, we've gotten the fed meeting, statement, cpi, ppi, some other inflation indicators as well. is anything new? what should we be taking away

from this as it's been filtering through the market? >> i think the big thing last week was that inflation data was pretty soft relative to what was anticipated, and we got actually, if you strip out shelter, which was talked about in the press conference, core cpi, three-month moving average is 2.0. that number was over 12. that was a pretty big deal. ppi followed on it. listen, we are moving, and it's going to get core pce, this is the fed's favorite measure, we're going to get that too. we're going to get to a 0.1 or so. simultaneously, you're starting to see a little bit of softness in labor. we still had a strong payroll report, but look at the j.o.l.t.s. report, claims picking up a bit. we're closer to where the fed could move. i think they could move soon, and we're definitely closer. >> the idea that with inflation going down, their current policy looks -- starts to look more restrictive, i guess it started to take hold, and it was interesting because it felt like on first blush, people said,

it's a hawkish dot plot, but the market fixated on the numbers, on the data. that's probably a good thing, and the fed is now pushing 11 months at the same rate, which is a long pause for them. does that mean that policy's in a really good spot, or does it mean that we have to be more attentive to those slowdown concerns and the idea that it could wait too long? >> all of the above. first thing i will say is, i think the obsession with -- the average went down to one, basically one, could have been a nonvoter, that was pretty mundane, useless stuff. if you think about, though, the direction of travel, we've got an economy that's moderating but very slowly. there is a two-stage economy at play, though, that i think is significant, which means that the fed has to go. i think they have to go. you talk about pressure on low income, pressure on small business, pressure on local banks. you've created a two-stage economy. the question is whether it's at the right level. if inflation is coming down, which it is, so say core pce

were trending down a little bit, you can get the funds rate down to 4.5. you still have a restrictive rate, and so i think that's where they're going to go. slowly. you want to see more data. my sense is they'll get it. there's a real seasonality to the data these days after the first quarter. my sense is you'll get it, and they'll be able to go. >> you still hear talk about how in the second half of the year, the comparisons become tougher, especially on shelter inflation and maybe it's going to cosmetically look like improvement in inflation isn't really on track. do you think they'll be dismissive of that? really, also, the question is, are rates the thing that is going to help inflation in the direction we want anyway? >> so, first of all, well, you're right. we're probably going to sit around 2.7 core pce largely because of the base effects you're talking about. core goods is negative. if you take year on year, we have negative. the cyclical parts have come down. you're seeing that transportation services, big drop. the cyclicals are coming down, so, yes, i think they have the chance to bring it down. i've also laid out a pretty

controversial argument. it's not clear to me that keeping the interest rate here does anything for inflation, because you have an incredible shift in how the economy works today. growth of huge transfers from the public sector to the private sector. private sector, in aggregate, is a net creditor, and you've got middle to high income that's benefitting, and you have an aging population, which recirculates money into service level good, service level products, swhich buoys inflatio. what is clear to me is it's creating a two-stage economy, and it is putting real pressure, you see this in credit card delinquencies, chargeoffs, auto loan delinquencies. my sense is they need to move it down, but still a good economy. it's still an economy that's -- are they engineering a soft landing? i think the economy is incredibly resilient. >> what you call a two-stage economy, i mean, to some degree, might be reflected in the way the markets are behaving, right?

you see the big growth stocks that are feeding off, first of all, great balance sheets, cash flow, all the rest of it, but they're feeding off the big a.i. investment trend. you have a lot of economically cyclical stuff that has been wallowing here and not necessarily getting the benefit of this drop in treasury yields, so i guess the question is, does that mean there's opportunity, or is that creating a sense out there that there's more fragility in the expansion or in the soft landing story? >> firstly, i would say that investment in technology that we're going to see is str extraordinary. a lot of companies are not b borrowers. >> they're earning more on their cash than they're paying in debt. >> i think there are parts of manufacturing, parts of the economy that are definitely

struggling. you see that in all the earnings, the retailers, more coupon, more promotion, more tradedown to generics. that is real. when you think about it in aggregate, it's not that large when you think about the whole economy. it's larger number of people, number of businesses, and actually, number of employers that are being impacted. it's just not that much in terms of the aggregate economy. so listen, that's why i think we need to have a little bit more balance, and i think you can do that and i think when the fed starts to move, the terminal funds rate is going to be higher. so, you create a dynamic where bring down the near term, bring down the short-term funds rate, terminal rate stays a bit higher so it doesn't create a financial easing condition of significant magnitude. >> does that mean longer term yields are in the right spot? you have the ten-year is kind of range bound, i guess, big picture, and then of course, corporate credit spreads are quite tight at this point, and so, does that fixed income market have it right? >> so, you know, i don't think ten-year -- i don't think ten-year is going very far. we got a tremendous amount of debt coming due. there's, i think, too much debt that's got to come due over the

next couple years, so what i think will happen when the fed moves, you'll steepen the yield curve a bit, which is fine. it's a normal -- as the economy moderates, you would expect some steepening of the yield curve, but i don't think long-term rates are going anywhere. part of why i think fixed income, we're keeping all our yield -- we're keeping all our yield in five years and in. by the way, you don't need to go out the yield curve because there's so -- you've got a flat to inverted curve, so you capture a lot of yield using credit, mortgages, securitized assets. i think it's going to take time. >> so, that's where you get the yield from. what about other kind of allocation decisions you'd make right now in terms of dialing up or down risk in parts of, let's say equities. >> i like the equity market. it's a heck of a move today. i still think when you boil it down, and i hear all the discussion about this multiple turned too high, you're still seeing a historic dynamic around the growth, the r.o.e., the return on equity companies are creating and the buyback relative to the ipo calendar.

when you marry the fundamentals and the technicals, they're pretty powerful. do i think equities still have upside? the beauty of equities today, including a lot of stuff we are active in, including today, the volatility is so darn low that you can use options, and you can actually reduce. so, we've done a little bit of reduce what is your outright equity exposure, but you actually grow it because your options keep coming into the money and you roll your options. by the way, interest rate volatility is high, relative history, it's come down a fair amount with the recent fed decision. but equity volatility is a gift. i mean, these vol levels to be able -- by the way, in any given day, you can see the equity market up or down 50 points in the s&p 500, like today. you can move around your risk. you can be with volatility so cheap, it's a phenomenal opportunity. >> it is amazing. so, index level volatility is very, very calm, almost to the point where people are trying to question why it might stay that way. but within the index, things are swinging around, and so there has been this trade, as you know, and maybe this is what you're talking about, of

essentially betting that you can earn that difference off the volatility of the components versus the index. >> i would also, single-name volatility is also pretty low. if you look at the volatility of names like apple or the banks, they're under 20 vol in terms of -- that's pretty cheap. you can create. you can move some of your equity, your holdings, your delta one, move it to synthetics, because of volatility and single name is so cheap today. so, both are pretty reasonable. what it makes it harder to do, we do a lot of overriding of our positions to create some income. the volatility is not -- particularly when you get days like this, in tech, semis, it's pretty hard to give up some of that upside. >> sure. yeah, no, that has been the kind of a little bit of a trap maybe some people have fallen into. i guess just in terms of this idea the fed can maybe ease off a little bit in a measured way, usually slower easing cycles are more bullish than fast, urgent ones, do you think we're going to, in six months, say, that was

a mid-cycle slowdown and now we have years of this expansion left or are we still in this late cycle psychology? >> i don't think cycles are nearly what they used to be. i think the whole concept of cycles was a manufacturing-oriented economy. you think about service economy, health care, education, et cetera, you don't have that sort of cyclical dynamic they used to have. there's some cyclicality, but it's much more reduced than it used to be. i think the economy, you go through. you've got nominal gdp to a level that was very high. my sense is that will dull some of that growth. my sense is that some of the capex r&d will probably come down a little bit from the high levels it's been at, although you still have this massive a.i. investment. so, i think you're going to see an economy that -- and by the way, when you step back and think about it, if you get 2% real growth, and you have 2.7, 2.6% inflation, you're talking about nominal gdp of 4.5 to 5%, people say, my god, the fed has

a problem. if you have 4.5 to 5% when you have too much debt, pretty good. >> that used to be a normal run rate, more or less. >> or even a little high if you ran for a long time at 4-ish. just pretty good. particularly with an aging demographic. i think people should celebrate it. part of why i think the fed can move it down a little bit is i don't think it will create any damage to that dynamic. certainly don't think it will create any damage to reigniting of the inflation paradigm, in the end, but it does create more balance. >> and you don't think the nasdaq is going to ease here? >> i bet that's part of the situation. you can create a paradigm where the terminal rate is going to stay higher, and by the way, i think the end point will be significantly higher. as long as you articulate that, by the way, they've reduced the balance sheet, i think there's some -- i think you can deal with that and not create anything that's a financial condition easing of significant magnitude.

and i just don't think equities -- i know i've talked about it before on your show -- i don't think equities are nearly as sensitive. it's interesting. people say, if we hit 4.5, like the equity markets come under pressure. no. >> no, it doesn't seem like that's a relevant indicator anymore. rick, great to see you. thank you so much. appreciate the time. all right, well, keeping a close eye on the nasdaq and the s&p 500, both on track for record closes, let's bring in jordan jackson of jpmorgan asset management and jason snipe of odyssey capital advisors. jason is a cnbc contributor. jordan, let me get your reaction to those thoughts that the fed's in a pretty good spot, has flexibility to move based on where inflation is, and maybe being able to kind of preserve this pretty decent economic backdrop. >> well, it's pretty interesting. i think the fed, coming out of at least last week's meeting, they're concerned around the inflation outlook. it's clear that powell is a bit concerned around base effects, particularly as we move through the summer. he has, on occasion, mentioned some concerns, even though core goods prices have fallen, core

goods, potentially, reinflating a little bit again in that complicating the inflation backdrop. i'm impressed he's able to, after a wednesday morning print, be able to talk to all the governors and have them update their dots. i think most folks said after one print, they said, it's not worth updating my dot. that's why you got that shift down to one cut. but i think that's generally right. i think, you know, if stuff is still moving, humming along over the course of the summer, now you're swinging into the election season, i think it's going to be tough for them to start moving in september and november, and i think, perhaps they at best can squeeze in one rate cut in september. >> jason, do you think that's kind of an acceptable scenario here? it's kind of amazing the way that the markets have basically been okay with fed patience and obviously, you have had market-based yields more or less cooperate, but how long can we wait? >> yeah, mike, i think, absolutely, the numbers that we

got last week, as clear indication that inflation is moderating. again, this is the second month in a row that we're seeing positive numbers on an inflationary front. we're coming off a backdrop of we had three months that were difficult where the fed was talking about a trend of inflation moving higher. but as i look forward and to jordan's point, coming with a -- with the election coming ahead and other geopolitical stories that potentially will play out here, i think it was prudent for the fed to talk about, you know, maybe a potentially one cut in december. obviously, the dot plot has been updated from three cuts to one cut. and i think that sets a nice ramp into 2025, because again, i'm in the camp that earnings have been strong. the economy is relatively strong. i think the fed is getting a lot of what they've asked for in terms of inflation moderating, some loosening in the labor market, which plays into exactly what the playbook was coming into this year. so, i think -- i think they're right in the right place and being data dependent and looking

toward 2025 as an opportunity to continue the rate cut story starting in december of this year. >> jordan, you say in general that you're still pretty well disposed toward risk assets. i guess the question is how much the market's already sort of built in here. i mentioned you had the sell-side strategists raising the price targets. one of the components of the bull case has been, hey, wall street's skkind of fighting it. no one thinks the market can do much. it seems like expectations are in check. is it starting to feel like it's running a little hot right now? or i guess is the negative sort of breadth in the market making that seem less the case? >> yeah, i think this suggests that we may be primed for a bit of pickup in volatility over the course of the summer. you know, the reality is, look, we are expecting a broadening out in earnings growth from the rest of the market. not just technology really driving earnings and mega cap tech. that being said, mega cap tech is still expected to post double-digit earnings growth as well. and so, i think, you know,

markets are becoming a little bit jittery, i think rightfully so over the course of the summer, given where valuations are and given where interest rates are at, but i do think we're looking at it on the balance of the year, an equity market that's going to deliver 15 to 20% total returns, and i think we're going to rally pretty nicely in the fourth quarter, given you also have 2025 earnings growth expectations that are sitting in double digits as well. i think there's a fundamental backdrop, a micro case to stay bullish but also the fed is biased, both implicitly and explicitly, to want to cut rates. this is not a fed that's putting hikes back on the table. they're firmly biased to want to cut, it's just a matter of when. and i think both of those are bullish for the market. >> yeah, now, jason, where within the market looks like it hasn't yet been fully reflective of the underlying earnings power? because you know, everyone complains about, oh, it's only a handful of stocks driving trillions of dollars of upside in market cap here, but that's also where the earnings momentum

has largely been is in those mega cap growth names. so, do you find areas that are now primed to pick up as we wait for second quarter earnings estimates are up 9% year over year and are looking pretty solid at this point. >> 100%, mike. i think, obviously, the story to all points here is tech and the semi, hardware space has done well. the opportunities that i see more cyclically oriented is i look at the financials and i look at investment banking as an example. we've seen goldman-sachs price action so far this year, up around 15%. it's pulled back in recent weeks, but i think there's opportunities there as we think about the capital markets and all the numbers that we've seen, and i think ib has bottomed absolutely, and i think we'll see a nice runway as we go to 2025. health care, typically in election years, doesn't return very well, but i look at med surge as an opportunity. there's been a lot of discussion

on glp-1s and what's going on with eli lilly and novartis. i look at strike company, intuit surgical, i think there's opportunities for these names to continue strength and see earnings power head. those are a few of the opportunities that i see going forward. >> jordan, i wonder if there's one thing that stands out to you that's causing you any kind of nagging concern about the macrooutlook and whether, in fact, this sort of patient fed, keeping rates here fsor a full year, and you have a little bit of deceleration in parts of the economy that has investors' attention, whether any of that could break the wrong direction. >> yeah, you know, it still feels like inflation is public enemy number one. but that being said, i think there needs to be a little bit more focus on the growth backdrop, and particularly across labor markets. now, obviously, we have not seen labor markets come under significant pressure just yet, but the job openings number has

been steadily coming down. initial claims will be looking to see if this will be a second week in which you got to pick-up in initial claims data. it tends to be a bit noisy and there's a lot of seasonal adjustments. there's an incredibly wide divergence between the household survey and the establishment survey. i think the truth lies somewhere in the middle. this is clear that the labor market is cooling, not freezing over just yet, but i think there needs to be a little bit more focus on some of the growth dynamics that are at risk under higher rates. >> i guess we have to stay alert, probably good news, the market seems to at least have one eye on those vectors as well. jordan, jason, appreciate it. thanks for the time today. >> thanks. let's send it over to kristina partsinevelos for a look at the biggest names moving into the close. hi, kristina. >> hi, mike. the u.s. government is suing adobe, alleging that adobe "hides expensive fees in the fine print," and when customer actually try to cancel, the department of justice

alleges adobe forces customers to go through a complicated cancellation process and ambushes them with a termination fee. adobe replied and said they are transparent with the terms and conditions of their subscription agreements and have a simple cancellation process. they plan to refute these claims in court and that's why shares are down almost 1%. best buy getting a bullish boost from ubs, a new price target from them at $106 a share. that's still higher than the $91.47 trading right now. they suggest this company is a buy because of restructuring efforts and the new product cycle. that's why shares did hit a 52-week high. >> kristina, thank you very much. we are just getting started here. up next, big opportunities in alternatives. goldman-sachs's kristin olson is revealing her best bets for diversifying your portfolio. we are live from the new york stock exchange. you're watching "closing bell" on cnbc. dow up 200. s&p on track for new record.

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interest has been building in alternative investments during this record run for the markets as investors look to diversify. joining me now at post nine to discuss is kristin olson, global head of the alternative capital markets group at goldman-sachs. good to see you. >> thanks for having me, mike. >> what, principally, are investors, are your clients looking for when they want to look at nonpublic markets, various types of alternative options? >> so, our clients, as ultra-high net worth clients have had a very large allocation to alternatives. the approach has been quite diversified. that's going to span private equity, private credit, real assets and also hedge funds. the largest allocation it's been going to are buyout strategies, so traditional private equity but really the objective for our clients is how can they achieve differentiated sources of return from public equity and public fixed income returns? how can they add uncorrelated sources of return?

and most importantly, how can they drive alpha or outperformance versus the returns they're getting in public liquid markets? >> interesting that they -- that you say that they're looking for outperformance as opposed to just a smoother ride. some of the criticisms of some alternative strategies is that they don't mark to market every day, and you don't have to absorb that sort of noisy volatility on the way to whatever return you're getting. you're saying that they think there's sources of better or different types of returns. >> 100%. look, i think there is a benefit of perhaps not seeing the volatility or not having to live through the volatility, and i think one of the other hidden benefits of alternatives is it forces investors to stay the course. you're signing up for a ten-year commitment and it takes the sentiment out of it. you have to -- you're going to have to deploy capital. it's not at your discretion, and it allows you to really stay invested, and i think that's one of the hidden benefits of alternative investments. >> has private equity recently kind of lived up to the billing in the sense of, you know, you're seeing these reports, first of all, there's maybe less

activity in terms of new buyouts than you might expect, given some of the other market conditions, and just this idea that lps want to withdraw their money, and the sponsors have to, you know, take on leverage to do that. in other words, it just feels as if there's a lot of moving parts that maybe are not necessarily as clean as, hey, you know, we buy companies, we lever them, fix them, sell them. >> i think that manager selection and looking at what is the actual strategy under the hood is incredibly important. i think now more than ever, finding managers that are driving real value creation of their portfolio companies and looking through as what was from cheap financing, how much of it was multiple expansion, like, what was actually organic growth that was driven at those portfolio companies? that's important to be looking at today. you bring up an interesting topic, which is liquidity. one of the interesting areas within private equity right now is secondary private equity. you have had institutional lps that have gotten to targets that are finding themselves given the

lack of distributions coming back, finding themselves in the need to potentially sell, and as a liquidity provider, that's an interesting strategy to be a secondary private equity investor today. >> should anybody's antenna be raised by the idea that now you have these managers who want to open up to high net worth individual money as opposed to -- you know, why am i so lucky to be getting this opportunity, kind of a logic? >> i think it's one of the most interesting moments in the last 25 years, i've been at the intersection of wealth and alternatives for individual investors because you've never really had access in the way that you do today. for the ultra-high net worth investors, it's top-tier managers that are thinking about how they're going to grow their business over the next 20 to 30 years and realizing that they need to tap into individual investors to grow their business. and so, it's projected that if there's $4 trillion today of individual money in the private markets, that's going to triple in the next decade, and so alternative asset managers are figuring out, how do i access that capital? but the other part of that is, going downstream and thinking

about how do you get to the mass affluent? how do you get to retail? and so, what you're seeing is the advent of new structures that allow for that. so, in credit, the nontraded bdc. in real estate, nontraded reits and private equity and other real asset strategies going into these open-ended evergreen structures, some of which allow you to go to smaller investors that don't have to meet the net worth, but these structures have a modicum of liquidity because that's the other real challenge is you have to give up liquidity to get that alpha, the private markets, and you know, that's harder for smaller clients. >> in a world where, you know, trailing equity returns and public markets have been pretty strong and now you can get pretty safe yield above 5 and 6%, does it raise the hurdle rate for investors wanting to go to less liquid strategies? >> well, i think, look, always looking under the hood, what's interesting, so with higher rates, you look at credit, so, you can get pretty attractive yields today, but in the private

markets, you can add to that and be getting low double-digit returns as a senior direct lender. i think investors find that pretty compelling and obviously, that's a product that has -- that's an investment product that has gone into some of these structures for broader individual investors. and i think the way our clients think about returns and privates is, what is the spread that they can get above the public market return? and to give up that liquidity, generally looking for 300 basis points a year, better than the public market alternative. >> interesting. that actually says a lot in terms of how, you know, how people are making these decisions, relative to what any old person could get. kristin, great to talk to you, thank you so much. all right, up next, the s&p and nasdaq trying for a record close as top technician ryan detrick is back, breaking down the charts and flagging why he thinks may's market performance could be a big bullish signal for markets. don't forget, you can catch us on the go by following the

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stocks are in the green across the board with both the s&p and nasdaq hitting record highs to start the week. nvidia also briefly hitting a record high earlier in the session, so does this rally have more room to run? let's ask ryan detrick of carson group. always good to catch up with you here. all of the stats that i know you like to look at in terms of when the market has behaved in the way it has this year, number of

new highs, degree of upside, all that stuff, by this moment in the year, usually has good things to say about what's to come. is there any reason to think otherwise at this point based on some of the internal rhythms of the market? >> yeah, mike, thanks for having me back. we are bullish. we're optimistic. but you're right, just last week, we had 1.6% weekly gain on the s&p, yet less than 200 names in the s&p were higher. less than 100 outperformed the s&p 500 last week. what's that tell us? well, maybe there's a little weakening. we know, a lot of people come on all day and talk about this. tech has done so well lately, maybe there's some weakness under the surface, but i think it's a lot like january. we saw this in january, some weak divergences but the market went sideways for a week or two and then stocks caught up and a lot of participation came in, and we think that's the play here. >> i mean, i know you have been focusing on, as others have, about july and its record of being very strong, pretty

consistently for stocks. on the other hand, the final stretch of june sometimes is where you have gotten some choppiness, so what are the relevant things, you think, to focus on here going into the second half of the year? >> you're right. people are going to hear this a lot. july has been higher the last nine years for the s&p 500, but in an election year, and i came on with scott a while ago talking about this, you tend to see your summer rally. june, july, august, really strong. we're still in that strong seasonal time frame and look at credit spreads. investment grade corporates, what's going on there. there's no monster under the bed. we're not seeing any major stress in credit markets. we're hitting literally the 30th all-time high of the year for the s&p as we sit here and talk today. bigger picture, we're overweight equities, we have been since december '22. we think there's upside coming. >> do you think it pays, at this point, to essentially look beyond the leaders? you know, i mentioned the nasdaq

100, up another 1.5% here. it just accelerated higher today on kind of nothing new. and i just wonder if people are kind of capitulating to that particular type of market leadership and leaving the rest behind. >> well, clearly, that's what we saw. last week, tech was up 6%. real estate was higher and every other group didn't do anything last week. we're starting to see that. we think there is going more of that. i don't know if capitulation is the word i want to use. we like industrials, we like financials. they struggled last week, and obviously, small and mid caps are dirty words a lot of times with the underperformance we've seen, but we really think that the inflation data -- you had some guests come on before me talking about inflation. lot of positive trends. grocery prices down four months in a row. new car prices down five months in a row. there are some things happening on the inflation front. yes, shelter is that stubborn part of it but we think there's two cuts coming, september and november, and once that's a little more clear to people with one more probably good month of inflation, that probably can add

to that -- or allow for that broadening out, if you will, of some other groups finally taking the baton back from tech, which clearly is the all-star. >> i was going to say, that seems to be the swing factor is whether, in fact, you get cuts. it seems as if the market has been unwilling to sort of anticipate that moment, i guess, after 11 months when rates have stayed steady. the market's not going to start giving the small caps credit for getting the rate cut before we get it, but you know, we did have yields come down last week and it didn't help the smaller stocks. >> well, you're right. ten-year yield, lowest level since april. ten-year yield, obviously, lower also, and you're right. small caps did not get much of a bid at all. they struggled last week. we still think there's some opportunity there. and you look at one more thing about last week. kind of looking under the surface, leverage loans actually hung in there pretty well. what in the world does that mean? to us, if there's this risk-off scenario, this major worry taking place, you think there would be more weakness there, so the fact we didn't see much weakness in leveraged loans, yes, it was all about tech last week, but still, there were some

positives under the surface there, we think. >> in other words, if small caps' weakness was telling you something scary about the economy, you would expect credit to weaken up as well and it hasn't happened. >> exactly. >> ryan, great to talk to you. thanks so much. >> appreciate it, mike. thank you. >> ryan detrick. up next, we are tracking the biggest movers as we head into the close. kristina is standing by with more of those. >> we got an activist investor suing autodesk and an under the radar a.i. play and i promise it's not a semiconductor name. tune in for those details after this short break.

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17 minutes to the closing bell, s&p 500 up about 1%, at a new record high. let's get back to kristina for a look at the key stocks to watch. >> well, shares of autodesk are up almost 7% right now after activist fund starboard value or act activist investor, i should say, said it would file a lawsuit against the company. the investor has about a half a billion dollar stake in autodesk and says that the current team misled shareholders, specifically within its accounting practices, which is why starboard is pushing for new board members. you can see shares up almost 7% right now. corning hitting a new 52-week high. this is an under the radar specialty glass maker and it could be a big a.i. maker according to fox advisors, in

their note, not because of the glass side but because of thinner fiber cabling used in server racks, so when you buy a lot of gpus from those a.i. systems, you need more connections and that means more fiber, and that's where corning plays a role. shares up almost 4%. >> part of the food chain, kristina. thank you very much. we are getting some news on citigroup, and its relation with regulators. steve liesman has that for us. >> good afternoon. citigroup shares giving up gains today after a wall street report that the fdic will vote thursday to downgrade the bank's littling will to deficient from a shortcoming. cnbc has not been able to confirm this story. but citi sent us the following comment, which reads in part, "our balance sheet and financial health remains strong with high levels of capital, liquidity and reserves. we konltd to have confidence that citi could be resolved without the use of taxpayer funds or an adverse impact on the financial system." it's unclear how serious a development this is.

banks are required to post and create living wills, get them approved by regulators. the living wills tell regulators how to unwind them in the event that the bank fails. it's rare for a living will to be labeled deficient. deficient is the lowest rating. "the journal" notes that the fed is not expected to join the fdic in the finding of a shortcoming and this had been flagged back in 2022. "the journal" also said no penalties are associated with this because the fed is not on board with this vote by the fdic, expected to happen on thursday, mike. so, you're down -- you're down about a buck on this news. >> steve, obviously, you know, this is all sort of hypotheticals, and if things came to the worst case scenario, this is how it would potentially go, in terms of these living wills, although it also seems to be a lever for regulators to try and encourage or compel upgrades

of systems. i know that citi has been under some scrutiny about its data management and some glitches on that front, so maybe just another pressure point. >> i think that may be right, mike, and just, by the way, the stock, i should note, is well off the lows when the story broke. it was down, you know, $59.40 or so. it's come back a bit since then. you can see that bump down, came back a bit. yeah, it well could be that, and like you said, mike, it's hypothetical, and it's also sort of deep in the labyrinth of regulation. i'm not sure -- the main thing i think investors would care about is does this lead to a change in the capital requirement of citi, which would have an impact on the earnings on everything that citi does. i don't see that happening. at least in what we know now about this story. >> yeah, exactly. and it would seem not in a -- of course, citi consistently trades below its stated book value so there's a little bit of risk

built into that already, steve. thanks very much. still ahead, navigating the meme mania, gamestop shares sinking amid its annual shareholder meeting. we'll bring you all the headlines from that highly anticipated event and what might be next for the stock's volatile run. "closing bell" will be right back. \s

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sponsored by e-trade from morgan stanley. trade commission-free today with no account minimums. now in the "closing bell" market zone, kate rooney is tracking what's driving gamestop shares lower into the close. plus, pippa stevens with a look at the selloff in solar stocks today and diana has the set-up after the bell. gamestop got their hopes up and had them dashed again. >> it was uneventful for the reddit crowd. it was actually gamestop's second attempt at an annual meeting. it was scheduled for last week and got bumped today after the website crashed due to unprecedented demand from online participants. today, relatively uneventful. ceo ryan cohen said gamestop plans to operate the smaller network of stores and talked about a strong balance sheet. company has been capitalizing on this meme stock rally. there were no specific new updatesaround the turnaround plan there, the stock down more

than 12% today after that meeting. it's been on this wild ride since, of course, the return of keith gill, roaring kitty, to social media. ryan cohen, in his remarks, saying, "we are not here to make promises. we're here to work." it was a brief statement. shareholders did vote on a couple different things, board composition, salaries and then an outside accounting firm as well, mike, but not a lot of fireworks. >> all right. billions to work with, no statement on how it might be used. kate, thank you very much. pippa, overall strong day for the market, not for the solar names. >> yeah, that's right, mike. solar stocks facing a risk-off day today, building on last week's losses as rates continue to hammer the group. now, may was also the t.a.n. fund's best month in two years so perhaps it got a little bit ahead of itself. first solar has been a standout. pause on tariffs expired, and those wall street bets, the company will be an a.i.

beneficiary. c cowen upping its target. in addition to higher rates, the industry has been hit by policy uncertainty and supply chain issues, including a transformer shortage, and amid this lackluster performance, we have actually seen some management turnover. last week, solar edge and ray technologies announced their cfos will step down. sunova's ceo also leaving this month. some unhappy board members with the stock performance as we've seen. >> you have to be nimble, i think, if you're going to trade this group, based on all the things that can swing these stocks around. pippa, thank you very much. diana, lennar, been a strong stock, though not the strongest in the group. >> analysts are estimating that lennar will post earnings increase with sales up 5% year over year. they're looking for a 5% price drop in the price of a home. this was a rough quarter for mortgage rates. no doubt. the 30-year fixed was below 7% for much of march but it shot up

in april to the highest level since last fall. rates came down a little in may, but still over 7%. now, some builders had reported fewer incentives in the first quarter, although lennar said they were still heading into them, now we're hearing from the builder sentiment survey that more builders are ramping up incentives again, so we'll be looking for that in commentary. we also saw more supply of existing homes on the market in the last three months. the market is still lean, but that new supply is some competition, which the builders really haven't seen in a long time. >> that is for sure, diana. you know, i was also noting, i think toll brothers had a price target increase today, and that's been a big outperformer relative to the likes of lennar. i know they really serve much different segments of the new home market. what seems to account for the market's preference right now for the likes of toll at the high end? >> it's just what you said. luxury buyers don't depend as much on mortgages. a lot of them don't use mortgages. they're all cash. and they also can afford some, you know, smaller moves, whether

it's 6.5%, 7%, or a little bit above, but for the lennar buyers, and for others like kb home and dr horton, they're much more sensitive to those smaller moves in mortgage rates and that's why they get hit. >> understood. all right, we'll see what the numbers have for us for lennar after the close. diana, thank you very much. all right, as we approach one minute to the close, we are on track for new records. the dow up about 0.5%. s&p 500, up a little more than 0.75%. it is off its intraday highs, which was about a full 1% gain. nasdaq, still continues to be the strongest of the major indexes. it is up more than -- just about 1% right now, and that, of course, has a lot to do with the semiconductors up another 1.6%. a lot of folks wondering if that type of action is representing a bit of a blowoff top in one of the hottest segments of this market. lot of complaints about narrow market breadth for weeks right now. it actually has improved. today started negative during the morning and is now looking at about, oh, about a five to

four up versus down ratio on the new york stock exchange as we head into a close. bonds back off just a little bit today. yields, marginally higher but not really standing in the way of that big tech. the nasdaq 100, the megacaps growth, up 1.2%, not far from the 20,000 mark. that does it for the "closing bell." we send you over to "overtime" with morgan and jon. ♪ a record day for stocks with the s&p and nasdaq closing at new highs. the dow snapping a four-day losing streak of its own. 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. >> and tech just keeps driving the market into uncharted territory. consumer discretionary and industrials also big outperformers today. coming up, summer venture partners byron deeter on where he sees the best