things. it's so fun, tyler. for somebody like you and me who are insatiably curious and lifelong learners, i still get to interview people and talk to people, but i get to learn new technology. >> thanks for doing. this i just talked to you five minutes ago. gracious of you to come by. say hi to johnny for me. thanks for watching "power lunch." >> huge thanks to katie. i'm coming in the car and coming. "closing bell" starts right now. hi, guys. thank you so much. welcome to "closing bell." i'm scott walker live at the new york stock exchange. this make or break hour begins with nvidia's quick correction. whether it's time to sell the hottest in the marketor or buy . we'll look at the scorecard. 60 minutes to go, fairly muted action. that could certainly change over this last hour. it is triple witching friday, a period when several options contracts all expire at once.

can get a little volatile, a little interesting. that's why we're here. we'll take you right up to the finish and see what happens. let's zero in, though, on nvidia. those shares under pressure yet again today. the stock falling 10% from its peak yesterday to the low this morning. some buyers coming in, at least attempting to. but the stock is still down 3%. we discuss where it could really go from here. it does lead us to our "talk of the tape," whether nvidia's meteoric rise has happened too fast and whether the market is unstable. malcolm etheridge is vice president of cic requisite. all three cnbc contributors. good to have everybody here. bryn, i'm going to begin with you because you own nvidia. as i said, it had this quick correction of 10%. what do we make of that? should we be concerned about where this stock is today? >> i think it's so healthy. we would be concerned if it just continued to go up 2% to 3% a

day. if you just look at basic technical, it was so far above the 50-day moving average. that number is like close to $100. i doubt it gets there. but it needs to take a breather and consolidate. i feel quite confident sellers will come in. but remember, earnings don't come out until august 21st. so it's the very end of earnings season. so there's definitely some time to digest, think about, let it sell off a little bit. once again, i feel confident sellers are going to come in because they're going to have another spectacular earnings quarter, august 21st, when they crush it year over year on revenues and earnings. >> yeah. you know, i mentioned the media york rise, malcolm, that the stock has had. i read this stat earlier on "halftime report." and i find it astounding. maybe the most incredible stat that i've ever seen. nvidia has added more than $880 billion in market cap in 21 trading days.

21 days. that's incredible. >> well, so your question about whether we're likely to see the slide continue or if this was just sort of a blip, we just got as quickly as nvidia has rallied, we just got a bear market that fast, right? so escalator up, elevator down. but i think it's a bad idea to bet against nvidia here. the last couple of years, if you did, from about 400 to today, would have been rong. so i think nvidia's one of those that it's good to own in proportion to the rest of the portfolio, but it's a bad idea to go chasing here. >> this is not betting against -- let's parse those words. you can still love the stock and look at the rise that i said and then when i read that number, the $880 billion in market gap, and say now is the time to cash in or take a fair amount off the table rather than continue to buy in. that's what i'm assuming that clients are asking people like you who may not have as much exposure as their friends or

others. they hear about this story nonstop and are wondering what am i supposed to do now? >> so i was watching "halftime" earlier, i saw the guys talking about trimming their positions, say for jason, right, the guy -- >> two of the three who owned stock. they're trimming positions. >> i didn't hear anybody talking about after i've taken those paper gains and turned them into cash and going and buying apple and microsoft. those are the three horse race right now for the largest company. what i do think there is potential for is for investors to be rotating some of that cash into other mega cap names that have fallen out of favor a little bit, especially with earnings coming up in a couple of weeks. i think names like meta, amazon, they will start to get some love again. and so it's just rotating those winnings over to what you expect to be the next winning horse. >> speaking of, didn't you buy more amazon? >> i did. i bought amazon today. i'm in a way talking my own book here. i think amazon is one of those names that has a lot of potential still locked up in it, and it's not quite getting the respect that it deserves.

just looking at the digital advertising component of it, and their push into ad-supported revenue in addition to aws and e-commerce. >> steph, you watched a lot of markets over the years. when you see something like nvidia which has accounted for a third of the s&p 500's gains this month all by itself, and then i told you the astronomical number of market cap that this stock has added since earnings, 21 trading days, what do you take from that? >> yeah, there's total euphoria over this name. and it's totally overcrowded, scott. and you have 89% of the sell side analysts that have buys on it. where's your incremental buyer and where's your incremental support on the sell side? i think it's a little bit challenging. it got a little bit stretched to bryn's point. i don't think the party is over, but it's had a heck of a run. and there are so many other places within technology that

offer better attractive risk reward. and you know i've been a big fan of the pc refresh cycle. i think that area is very interesting. not a lot of people are talking about that. and those stocks like hpe, hpq, dell, you know i like sea gate, cdw. even apple will have a mac refresh. i think that's an area -- those are areas where -- are more attractive. nothing is wrong with nvidia, it just got really overlogged really quickly. if it does take a pause, if it does pull back, there are going to be opportunities just like the last drawdown in march where it fell 20%. went sideways for a while and eventually recaptured better gains ahead. because the story for ai, it's not over. you're in the second innings at the least at this point. >> that's why when you say we're in the second innings, it's hard to actually know whether a stock like nvidia has, bryn, gotten

quote/unquote overloved. maybe it's justifiably loved. the target today at research goes to 160 from 125. others are weighing in on the euphoria of what they sort of -- the commentary from some that suggest this is too euphoric. they say all-time highs, yeah, okay, i'll give you that. 99, no. hardly. we're not like that. is it over-loved, or is this totally justified? we're not used to seeing anything like this. to the lay person, you're like, this is crazy, this stock shouldn't be going up like it has. >> i think it's -- i think you're right on both points. it is over-loved and justified. i feel really strongly the 99 comparison is a lazy comparison. cisco never even remotely had the earnings power, none of those companies -- nvidia from october of 2022, which was like the low, had a $280 billion market cap and a four de of 25,

a $3.31 trillion company and a 33 or something like that pe. so it's like justified. the earnings have held up. so i think we're in unchartered waters where i've never seen -- i've been in the market since '94, i've never seen a company's earnings grow so quickly with their market cap. i think what will ultimately happen and maybe it's a '25 thing and the market will sniff this out early, maybe a '26, is when those year-over-year comps stop being 100% and start being 50% or 40% or what have you. you do have to digest. these microsofts and googles and metas can't just keep buying the gpus, they have to digest them and monetize. when that happens, there will absolutely be a selloff in nvidia. but i think investors right now, i think to malcolm's point, you have to size it right in your portfolio. i sold when the stock hit 130 i sold october 150 calls and got

close to $10 a premium. so i'm really comfortable doing that. i think it's going to trade sideways. if in october it gets called away, the part that i sold, i'm comfortable with that because you don't want to fall in love with any stock. and you want to be smart about the positioning. >> hard not to fall in love with this one. when you -- 900, you're like, i can't continue to go up like this. and it gets to 1,200 and you have a split. and now it goes off to the races again. i whether you think it left the market unstable. a word i used at the top. if you look under the hood of the market as bespoke suggested there hasn't been a new high in two months. two months. energy, industrials, materials, health care, discretionary, and real estate. yes, every sector but one is up on the year. >> sure. >> but more recently, you've become very top heavy. has that made us unstable in any way or not? >> i don't think it's made us unstable as long as the ai

narrative continues to have power. so as long as those names that lead the pack today, and there will be a reversion to the mean. we're looking at apple i think just hit 30 times forward earnings. nvidia at like 43 times forward earnings. you've got microsoft at like 34, i think is the number, versus 27 or 28 on the nasdaq. so there will be a mean reversion, and there will be rotation as i've been saying. but i think we can still continue to hang our hats on those five or ten names that are really powering the ai narrative. because those are the only ones that are showing a true path toward monetization of the technology, and the market is going to continue rewarding those companies that can show that clear path quarter after quarter. >> steph, you've been making bets in the areas of this market that i said are made up of the half that haven't had a new high in at least two months. where others see more recent pain, you see more exposed opportunity perhaps that exists in those areas. but they need to start

performing again. >> yeah. they do. but i do think that they --i think we're going to continue to see like we started today this week a little rotation, it's only a little bit. but i think we're going to continue to see that, especially as we hit earnings. we have to wait until july 12th. the next two weeks might be choppy, but july 12th is when earnings start. i think earnings for these other sectors are going to be pretty good. and i say that because i look back and i reveal of the economic data. and i know the economic data this week was kind of mixed. i know it was weak on housing. but still believe strongly that you're running at about a 2%, 2.5% clip on gdp, inflation is coming down. margins will be good. there are themes you want to play in industrial. certainly the grid and power and green and clean. and i think -- i'm very exposed in that theme. i think cybersecurity is going to be very strong. and it's really not loved. maybe crowd strike is. but for the most part a lot of the other names are not doing as well. i think they're going to come in with very good earnings.

i think some of the consumer discretionary also will be good. the consumer is still solid. and so i -- i think there are other areas, scott, in additions to energy. energy's been the most frustrating year to date. i do think that if the fundamentals are there, eventually people will respect them and want to own good fundamental stories that are attractive. the fundamentals have got to come through. i'm betting that it will. >> i know that, in your part of this one, bryn, they're hopeful that the energy trade is legit -- legitimately reemerging, if you will. because it looks like it's woken up lately. i don't know whether you believe that this is some -- a new run that these stocks are going to have as oil as continued to climb, as well? >> so the energy complex in general had had earnings desell radiation, and there's a viewpoint -- deceleration, and there's a viewpoint we'll see if that comes to fruition the next earnings quarters, that that's going to start reaccelerating.

what i know for certain is there's a ton of m&a in this space. you can go from big to small, a ton of m&a. they are being active. there's only so much oil in the ground. so i think that as long as these companies stay capital disciplined you can put together a portfolio of names that can give you capital appreciation, but also dividends plus those flexible distribution that's they make over time to put together a nice return. is it going to be an nvidia return? no. can it add consistent return over time? i would say absolutely yes. i think the capital discipline is going to stay in this space, and that's what investors need to continue to see to be comfortable taking a longer term allocation. >> you like that space? >> energy? i'd rather even cybersecurity. i think stephanie set me up perfectly with the case for why cybersecurity is the next leg in tech. she talked about the fact that it doesn't get the respect that it deserves. you've been hearing me make that -- >> doesn't get the respect it deserves. >> one name -- >> have you looked at

crowdstrike recentli? >> every day. i was happy to see the upgrade. can you name me two more names that anybody is as passionate about? >> about forwardnet. she didn't mention it because it hasn't made her happy lately. >> kind of my point. i sold off sentinel one. i sold off circle arc. other than two names we talk about every day, there's no clear consensus around which two or three other names are going to join the party. i do think there's a case now for consolidation among a lot of the cybersecurity providers. it's a frog wanted business that -- fragmented business that needs consolidation to get to this platform that we've been talking about. that's the word now that has all the juice in the world of cybersecurity. i think when we had talk about those two names it's good to be directionally accurate. i'd rather not have to make a bet on fortnet or some others. in my case i decided to buy the eft and to see who emerges as the leader. >> makes us wonder at least a little bit, steph, whether the

software trade -- you know, these stocks obviously fall within that trade, and many of those stocks within the software sector have gotten clobbered. whether money is going to start coming out of some of the biggest chip winners and then go into software at perceived value levels. i think didn't we see salesforce, for example, was leading the dow yesterday in what was a pretty good day. i don't know if that's the beginning of something or not. >> well, there's value in the software space. and when you look at the smh as a whole, it's up 52% this year alone. that's incredible. so it's not just nvidia. and so i have no problem with people taking profits and rotating into where there is definitely value. i happen to think, as i mentioned, i think cybersecurity is one of the areas, that's where i'm focused on. yes, i didn't mention fortnet, but i talk about it all the time. i feel like i'm associated with the name. i think they're going to come through, especially in the second half of this year.

comparisons get easy, their bookings are building, their backlog is also growing, margins are expanding, free crash flow is going higher. i think there was just a pause in terms of spending from the ctos, and i think you're going to see a resurgence from the ctos because we're hearing from them that there are two places and only two places that they're spending money this year. that is ai for obvious reasons, and that happen is cybersecurity because, scott, they're afraid of losing their jobs. you wake up one day and your business has blown out. i pointed to united health care having a billion dollar-plus problem overnight. i don't have any doubt long term that this trend is going to be very good. maybe short term you have puts and takes in volatility. i want to use that volatility to be buying, especially companies that haven't participated. again, given these tailwinds for the long term. >> i'll tell you what's not lost on me either is 16.5 minutes in today, we haven't talked about interest rates, we haven't talked about the fed rate cuts or anything like that.

and we got representative, bryn, of where this market is now. i think we're over the obsession because we feel like the economy is good enough that earnings are going to be good enough, and that if rates are coming down a bit on their own because inflation is starting to get even closer to the fed's target, that rate cuts at this moment are irrelevant to what this market is going to do over the next few months. >> i think we have settled in that we'll probably get one rate cut sometime this year. when the market doesn't seem to care, but if it pushes into '25, that seems to be okay. i think the consensus is especially as long as the long end which the market controls continues to have a solid low forehandle, people are like, that's okay, that's good for the economy. and i think that the consensus is if we start to have rate cuts it's because unemployment's kicking up and something bad in the economy would have to happen. i think that's really positive. you really want this market to

have the invisible hand of the fed out of our environment and let us just run on our own accord and have earnings momentum sentiment drive returns, not with the fed or -- what the fed or fed isn't doing or what neel kashkari is or isn't saying. >> we talked to him on "closing bell." rate cuts are bad for the market. they're going to happen for the wrong reasons. they're going to happen because of, you know, problem with the economy, whether it's unemployment going up or just the softness that could be apparent, and then they're going to have to cut. anika crawford here yesterday said i don't think we're going to cut this year. malcolm, we have to stop talking about the fed for the most part. we were leading almost every program talking about rate cuts. >> yeah. >> this, that, and the other thing. now we don't talk about it that much which is probably a good thing. >> big tech is in control of the market now, not the fed. and i think for good reason like you said. i think to your point, if a cut

does happen this summer, maybe even september, it would startle the markets to think that something is underpinning that decision, whether it is or not. so it would be bad for markets which is absurd to say at this point when this time last year we thought that we needed cuts in order for the market to get to where we are today. but now i -- i'm in complete agreement that the fed is not in control of this market, and i hope that they'll wait until 2025. i don't expect we'll get a cut this year. i hope they'll wait until 2025, and then we can worry about making our markers from there. >> we'll see. we'll leave it there. bryn, thanks. steph, you, as well. malcolm, here on set with us at post nine. we'll see you soon, too. let's send it to pippa stevens for the names in the friday close. >> shares of sarepta surging after three years after the fda expanded the market for the gene therapy for a rare form of muscular dystrophy. evercore isi tsaying the broad label is, quote, the best case outcome for sarepta.

catch ceo doug ingram on "fast money" today at 5:00 p.m. eastern. meantime, palo alto networks in the green after da davidson initiated coverage with a buy rating and $380 target. the firm saying that three platforms are better than one. noting palo alto's total addressable market could more than double by 2028. shares up 2.5%. scott? >> all right. good stuff. we'll be back shortly. next, the high network strategy of morgan stanley's chris toomey next. you know what's brilliant? boring. think about it. boring is the unsung catalyst for bold. what straps bold to a rocket and hurtles it into space? boring does. boring makes vacations happen, early retirements possible, and startups start up. because it's smart, dependable, and steady.

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welcome back. bit of a middling end to a record-breaking work. s&p 500 and nasdaq struggling for direction after hitting all-time highs yet again yesterday. markets surging for whatever the next -- searching for whatever

the next catalyst must be. morgan stanley's director of private wealth management chris toomey. welcome back. >> thank you. >> good to see you. number three, your team is ranked on baron's assets under management -- >> 16. >> growing as aum, too. that's what those -- helpful. you're trying to preserve that money. i like to point out when people like you come on, the kind of clients that you have care more about keeping their wealth than they do taking a lot of risk to grow it to even higher levels, correct? is that fair? >> of course they want to see money grow, but they'd rather preserve their capital at the end of the day. >> i think that's fair. i think that's first part of it. they worked hard for this money. >> yeah. >> and they don't want to see it, go away. the math of investing such that it feels more painful because it is. you lose 50%, you don't need 50%

to get back to par, you need 100%. preserve capital and compound on it. >> it colors the way that you not only i think view the market more broadly ly but also the t of investments that you make. we've sort of painted you as pretty cautious for the last at least year. that's not to say you haven't been invested. obviously you've -- you've been doing something right. the market continues to go up, okay. we continue to set records every week, feels like. >> correct. >> has that changed your view to be a bit more positive than you've been? >> look, i think we have been cautious. we have been underweight equities. part of the reason we've been underweight equities is there's other things more attractive that have given us an equities-like return. we talk about private credit, triple net lease, talking about secondaries. all of those things because rates are at these levels provide an equity-like return with a lot less risk to your earlier point. the thing that's concerning us, and i know you were talking about how we haven't talked

about the fed, i'm going to talk about the fed, is the fact that we really have a bifurcated economy, and we've got a bifurcated market right now. so if you look at the economy right now, if you look at 80% of consumers, you know, the bottom obviously struggling the most. but up to that top of the 80% range are really struggling, right? they've got credit card debt over $1.3 trillion. they've got delinquencies picking up. they've got deficits -- continuing to rise. and you're in a situation where that part of the economy is really struggling. and then the 20% is doing exceptionally well. it goes back to rick reader's point made it week about abundant income. that 20% that has assets that's locked in financing, they're benefitting from this higher rate that's giving almost $1.3 trillion worth of new income that they can put back into the market. the other 80%, though, is dealing with $1.3 trillion worth of credit card debt. you've got this bifurcated

market -- economy, and then you've got a bifurcated market with regards to i think the top ten stocks now account for almost 80% of the returns, right? so in an environment where the market is making new highs every day, you'd expect a place like small caps to be doing exceptionally well. >> why? >> because they typically lead those rallies. if you're getting a real bull market, right, smaller companies should be doing well. >> not with rates where they are. >> that's the point. they're struggling. 50% of small cap companies are struggling right now. they're in the situation where they can't refinance debt, and they're in a situation where their return on equity continues to be lower and lower because of that debt burden. so the market is punishing them for that. that's where you've got this kind of dichotomy where it looks like on average the market's doing great, it looks like the economy's doing great. but it's really in the polls. i think the thing from an asset allocation standpoints that's working for everyone, and this is something we talked about before, is they own high quality right now. they don't only highly levered

companies. they own the secular growers, and that's the core part of their portfolio. they're not allocating the international, they're not allocating to small cap. it keeps going into these high-quality names, right? the question is, and i think you're posing this, is this unstable, right? and i would pose that this is not healthy. if you look at the technicals right now, we're way over bought with regards to technology. and granted it is validated by the earnings power that these companies have. >> okay. >> but at some point price has to matter. so pricing the short-term term doesn't matter. in the long term it definitely does. especially when it's as concentrated as it is, you only need one small slipup for the market to come crashing down. i think that's the concern we have with regards to equities and why we want to control our exposure there. >> so i mean, there's no -- look, until there is that moment, this market can continue to go up, and you know, for people like ed yardeni who i

cited earlier, say it's not just a multiple expansion market anymore, it's an earnings driven in part, as well. like you -- you have to give earnings some credit somewhere. >> totally. i mean, take last year, right? if you look at the market, you had the magnificent seven or the top ten companies, they generated over 40% in earnings growth. but the stocks were up over 100%. you had almost 50% in pe expansion. the rest of the market was basically flat to negative. this year it's the same continued response where the majority of the return on equity is coming from these ten stocks, and the rest of the market is being left behind. and i don't think that's healthy. i think at some point you're going to see breakage. i think the key concept here is we're in this goldilocks situation, we're this a situation where economic growth is good enough, and inflation is coming down well enough that the

fed's in a position where they don't have to raise rates which is providing some good things. >> you made the full case. why are you underweight equities? >> because what's going to happen is that bifurcation is only going to get worse. so those 80% are going to continue to suffer within the economy. and the rest of the stock market is going to continue to -- >> i don't think it's correct honestly to suggest that 80% of consumers are in as much trouble as you would portend them to be. 80%? >> so if you look -- >> i don't think the economy would be printing what it's printing if 80% of the 70% of the consumption that happens in this country is in that dire of straits. now i obviously understand that there are a lot of people as part of that consumer cohort who have been dealing with these levels of inflation which has made their livings miserable to try and keep up. to suggest that 80% of the

consumer is in that bad of shape, i feel like is not exactly correct. >> so if you look at our consumer studies, what you'll see is the bottom 20% is the one that's really suffering. but what you'll see within that top four is the fact that consumption is coming down, okay. and things are slowing. and what's happening is is because that top 20% is over 40% of consumption, they themselves are lifting the economy as well as the fact that if you look at the fiscal stimulus that's going on in the economy right now, typically we have about a 2.5% to 4% deficit. right now we're at about 10%. so we're actually pumping liquidity into the system, right, at a time where rates are at 5%, right, and we're having to issue more and more treasuries. so next year our anticipation is that they're going to increase issuance by over 35% at this level. that definitely is only going to get worse. so my point is rising rates are going to create a problem within

the economy. now the good news is i think if we do start to see the market sell off because we are extended, we could see a 5% or 10% pullback. >> we had a 5% pullback think that long ago, april? >> a 4% pullback. in october. the thing is that typically we have about a 1% move up or down in the market, 20% of the time. we're probably trending around 5%. we typically have a 5% pullback three times a year, and we're in a situation where we haven't had one since october. so we are due is my point. the thing is is that i think once you start to see kind of the tech situation come down, there are going to be opportunities in some of these -- >> if, if. >> i think it's when. i don't think it's necessarily if. we will see a pullback, maybe not right now. we're going into the end of the quarter, so you're getting rebalancing with regard to indices. you're seeing a lot of window

dressing with regards to active managers that are increasing their exposure to certain stocks so they look good in their marketing. but i think come earnings season, you can start to see rotations. >> going to be interesting. not that far away. good to have you back. >> good to be here. >> chris toomey. coming up, a small price to pay, t roe's sebastian page is back, bringing a new trade. we'll find out how he's proposing the rally.

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we're back. the growth eft has been outperforming the value eft by more than 15% so far this year. no big surprise to anybody who's been watching this market obviously. my next guest is recommending taking profits from growth and further allocating them toward value. joining me, sebastian page with t. rowe price. good to see you again. >> great to see you, scott. >> a controversial call of sorts. to go overweight value, i read that stat about all those sectors that are perceived value that are like 20% off their highs, that are not even close to performing as well as growth. >> yeah, it's contrarian move, scott. you know, i've been watching you and your guests on "halftime" and "closing bell" last couple days, and i have two takeaways. one is, you know, there's a tremendous amount of respect for the ai freight train.

and i agree with that. and a lot of your guests have said this is not 2000. but at the same time, scott, pretty much everybody now is getting uncomfortable with the level of market concentration. i think this level of market concentration longer term is not sustainable. so you know, you start looking at value for broadening, the valuation case is clearly compelling. historically when it's been in that range you get 5% average 12-month outperformance from value. if you look at catalysts, i'm interested in fundamentals here. by the end of the year, the year-over-year earnings growth for value is actually expected to outpace year-over-year earnings growth for growth stocks. and that is because of the comparables. those being much easier -- >> from a lower base. i mean -- >> yeah.

>> so to speak. >> yeah. it's potentially a passing of the baton. you look at macro. are there macro catalysts that could help? well, i was on an asset allocation committee this morning, and we were talking about the election and how the election could be a catalyst if you get less regulation, lower taxes, potentially more m&a. this could favor value. we have a view that, you know, at 1.6% market pricing for inflation, one-year break even, we have a view that we're going to get more stickiness than that. and you know, potentially slightly higher rates, upward pressures on rates. all those could favor value and be the catalyst that would unlock that valuation advantage. but you know, like all your guests over the last couple of days, you got to be respectful of the ai freight train. so this is a tilt where you own growth stocks, and as you said in the intro, you're making a lot of money on growth stocks, so why not sell some, take the

profits, and start to diversify into value? >> only because value's been unreliable, right? that's why people have such an issue with it. a lot has to go right you would think for value stocks to start really doing well. and i don't mean doing well for two weeks like they have in the past or one month. because it's reversed, and we've gotten that concentrated into growth. >> yeah. i think it's a combination of a correction in this extreme concentration of the growth side, and also a passing of the baton in the fundamentals where you get accelerated earnings growth because the comparables are much easier for value. then you had macro factors that come into play. that scenario, if you take a 12-month horizon, i think it's quite likely. i still believe there's a very good secular long-term case for technology and for growth stocks. but if you take a 12-month

horizon and look at the level of concentration and all this discomfort that many of your guests have expressed at "halftime" or "closing bell" the last couple of days, you can make the case for value. you're taking profits, you've made so much on growth and you're balancing your portfolio. a lot of portfolio managers are hitting concentration limits anyways on some of these stocks. >> i appreciate you promoting both programs. sebastien page, doing work for us. thank you. talk to you soon. have a good weekend. all right. next we're tracking the biggest movers as we head into the close. pippa stevens back with that. one airplane parts manufacturer taking off on a potential deal, next

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less than 15 minutes to go before the closing bell. pippa stevens is watching stocks. >> spirit aero systems rising after "reuters" reported boeing is nearing a deal to buy back the supplier. the two sides have been in talks for months and "reuters" citing people familiar with the matter reported a hurdle involving airbus has been cleared. and hertz is jumping after upsizing a bond offering to $1 billion more than the initial plan of $750 million.

it comes as hertz looks to revamp its fleet away from higher capital cost vehicles. that includes selling a 30,000 evs with hertz saying it's already sold 19,000. the stock up nearly 16%. scott? >> all right. appreciate that. thank you. still ahead, don't bank on it, those stocks coming under pressure recently falling nearly 6% in the past month. now regulators are flagging issues with their, quote, living wills, for big u.s. banks. stress tests next week, as well. we'll see you in a little bit.

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coming up next, a run for your money. nike shares down more than 20% in six months. one wall street firm now says it's time to buy ahead of earnings next week. that and more inside the "market sw zone" next. what straps bold to a rocket and hurtles it into space? boring does. boring makes vacations happen, early retirements possible, and startups start up. because it's smart, dependable, and steady. all words you want from your bank. for nearly 160 years, pnc bank has been brilliantly boring so you can be happily fulfilled... which is pretty un-boring if you think about it. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even

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your investments with gold? alamos gold is a growing canadian gold producer with a long track record of outperformance. alamos gold. invest with us. our growth sets us apart. we're in the closing bell market zone. mark santoli here to break down the crucial moments of this trading day. u.s. regulators finding faults today with the living wills of four major banks. leslie picker, of course, following the money for us there, what it means for the group. mike, i turn to you first. we do have an upgrade today from nike. >> yeah. >> which i want to chat with you

about real quick. because we did a -- a screener on pro which gave a number of stocks today that could be on the comeback. they believe, oppenheimer does, as well, they forecasted 25% rally. >> yeah. part of the premise here is that when nike reports next week, that it's going to be, quote, the last bad quarter. so they've been a serial disappointer. the idea is that they may trim guidance for the current fiscal year, but then you have it behind you. i wouldn't say you're talking about a washed out stock, the majority of the street is still recommending it. but it is at a pretty low premium valuation to the market relative to its own history. i think you could hang your hat on that. is it getting down to, you know, sort of that core brand value at this point for the franchise? >> you handled that well. i threw you out of order. >> i can -- >> tap danced around that well. >> i can reshuffle. >> are we having to reshuffle the market? since you use that word? >> it's at least one -- i

wouldn't say now it's some kind of really forceful rotation into other themes, but without a doubt the break in nvidia was the cue for the high momentum stocks to sell off a little, get profit taking. the top five stocks performing today in the s&p 500 are all down on the year, underperformers. the bottom five stocks are up between 22% and 150% on the year. that just shows straight mechanical mean reversion on an expiration friday. we'll see if that cleans up the landscape for trading on monday. i don't think it's necessarily all of a sudden hey we're going to go back and buy all the cyclicals and industrials. it could happen. you do have these things happen on the fly once in a while. i would say energy and financials are up nicely this week. but for that to really take hold, you need greater conviction in the soft landing story. the broadening of earnings story. and i don't think we're coming from the low base on that. but we need confirmation. >> have you ever seen a stock add $880 billion in market cap

in 21 trading days? >> not at all -- no, no chance. you're down like -- individual down, what, 8% -- nvidia down, what, 8%, 9% off of yesterday, only back to where it was a week ago. it's gone vertical. everything we said in terms of the superlatives is true and valid in terms of how much it's piled on value in a short period of time. how much of that needs to unspool is a good question. i do see some echoes with what happened back in march, and you get a 15%-plus pullback in nvidia it didn't seem to amount to much. certainly didn't change the trend. but it did put people on notice that these are not necessarily going to be a smooth ride even if the long-term trend are good. >> we're watching the financials which you mentioned, as well. regulators talking about the living wills today. and not exactly giving a grade, leslie picker who follows this for us. what are we learning? >> not a grades, kind of a slap on the wrist for most of these. regulators finding weaknesses

associated with the 2023 living wills of four major banks. the fed and the fdic said today that each of the 2023 plans submitted by bank of america, citigroup, goldman sachs, and jpmorgan contained a specific shortcoming, that is the regulators' tomorrow, shortcoming in the firms' strategies if there were material stress or failure. the agencies were divided, though, on citigroup. the fdic determined that the citi plan wouldn't facilitate an orderly resolution and deemed its weakness a notch down, a so-called deficiency. the fed said that citi's plan had a shortcoming, that's the less severe mark. and because they disagreed, they gave citi the less severe shortcoming results. citi said in a statement that cnbc, quote, while we've made substantial progress on our transformation, we've acknowledged that we have had to accelerate our work in certain areas including improving data quality and regulatory processes such as resolution planning. the firm said it continues to, quote, have confidence that citi could be resolved without an

adverse systemic impact or the need for taxpayer funds. goldman sachs and jpmorgan declined to comment, haven't heard back from b of a yet. the shortcomings are expected to be addressed in the next plans due july, 2025. >> did you say earlier today that the stress tests are the results are next week? >> yes. >> more important i think we can say to stock direction -- >> absolutely more important. because these are what determines how the banks perform in an adverse economic scenario. and so based on those results which we see every year, they get a certain stress capital buffer, which is a number by the regulators which determines how much they can if they so choose return capital to shareholders. and that is much more indicative of the stock price than these shortcomings. >> leslie picker, have a good weekend. mike, you have the two-minute warning. you hear the sound effect. triple witching. we were looking for more

volatility. not so much as we head toward the close. it's on the other side of this that some people -- >> sometimes the market starts to move a little more freely. i do think what you're still seeing even though's the different set of stocks that are up versus down, you're still seeing wide divergences. you have a very even split today in terms of what's up and what's down. just this general sense out there that the overall index is being held captive by the offsetting currents of either its growths, secular growths momentum, or its cyclicals on the other side. i guess that trade is not yet quite been banished. and so it's not just about i think that the -- the mechanics of it, it is about the macro backdrop which says not that we have to rush to price in now in terms of the fed path, in terms of growth faltering at the moment. but it is fascinating to see the way that the market can maintain its really slow, orderly action at the index level, even while a stock goes to $3.3 trillion and loses 9% in two days.

>> all right. the bell's going to ring in a second. it's going to be a mixed close here. dow looks like it's going to eke a gain out. s&p will be a modest loseser. of course, we're watching the nasdaq, too. [ bell ] [ cheers ] >> the big story -- have a great weekend, everybody. that was a little high for the fourth straight day. the s&p 500 and nasdaq are a little lower. that means a two-day losing streak. that is the scorecard on wall street. winners stay late. welcome to "closing bell: overtime." i am jon fortt. morgan brennan is off today. nvidia a big factor in tech's underperformance. down roughly 7% in the past two days. we will hear from one analyst who thinks this is a huge buying opportunity. he just hyped his -- hiked his price target on the stock. mercer's u.s. chief investment officer thinks most