began as a rotation last week and maybe now with what? >> sell puts, that's perfect for you. safe. it's one of those like leave the light on. >> you would know. i would have to sit there -- >> a great strategy. you acquire the stock or keep the premium. one or the other. >> i don't even get the joke. thank you for being here. >> thank you for having me. it was fun. >> thanks for watching power lunch, everybody. "closing bell" starts right now. >> thank you, kelly. i'm mike santoli in for scott wapner. this make-or-break hour begins with new highs. wall street gains conviction around retreating inflation, soft economic landing and the policy mix into and beyond the presidential election. we'll discuss that with experts including blackrock's rick rieder in just a moment. a look at your score card with 60 minutes left to go. the major indexes off their

highs, s&p off almost half a percent. the dow in record territory as well, almost at 4,300. the nasdaq participating to the upside. the real action remains in the russell 2000 small cap. it's up close to 2% now. up basically 7% or 8% in the three trading sessions since we got that benign cpi reading last thursday. banks stocks expending last week's gains, part of the laggards catching up to the growth indexes. goldman um more than 2% as is jpmorgan, wells fargo up 1.5%. treasury yields, the yield curve is steepening a bit. ten-year at 423 as the two-year drops to 4.45. do markets have it right in these assertive moves to price in an easier fed, better earnings and a friendlier policy backdrop? let's ask rick rieder, blackrock's cio of global fixed

income. let's start with the cpi report. we had the bond market move in this rotation in stocks. the events over the weekend, people feel like we have a fix on the probabilities for november. where does that leave you in terms of, are we on this path to a soft landing and what's the next move for the fed? >> there's a lot there. first thing i'd say, cpi report was an indication of we are moving the a place where inflation is coming down. i think chair powell said it today on the interview. we're at a place that is much more like 2019, much closer to normalcy. core pce is coming down, still around 2.6. if you look at the three-months, six-months moving average, you get pretty comfortable. i think that's real. second thing, growth is moderating. i said it on the show last night and i'll say it again, i don't believe people are going to have hard landings.

service economy doesn't really go into deep recessions. we're slowing. weave got real gdp this year, around 1.5, that seems about right to me with inflation that's normalizing. i think you can pull it back and say, okay, if we're in normal condition with the trend moving towards moderation, the five to three funds rate is not the right funds rate. chair powell said they've gotten the confidence over the last three months that we are closer to normalcy. we're not overheating. they can start cutting rates. will they cut in july or this month? i think the odds are low. it's not impossible. i would do it. my sense is he's probably going to listen to the committee -- he was pretty clear today about i'm not telling you where we're leaning. chair powell is very much -- he listens to consensus, likes to build consensus. he ooers going to talk with the group and i think they'll set up for a september cut. >> what are the stakes involved, whether it's july, september, two or three.

is it just about the direction we're moving, or do you think the economy and the markets kind of need the cuts either sooner or later or just more of them. >> first of all, for us it's a big deal because there are trades, expression you can have on july versus september. for the broad economy moving 25 basis point, there's no impact. the trend is real, and trend -- my sense is the market is pricing in almost seven cuts through the end of next year. markets have done an awful lot to price it in. my sense is you get a little less than that all else being equal. we'll learn a lot, as you said post november. learn a lot about inflation, a lot about trade. those things are going to be clear. right now rates market is pricing in an awful lot of cuts. i would say most of the return in fixed income is clipping coupon, generating income versus, gosh, we're going to get a big rates move from here. >> i guess if you look at the equity move as well -- it's a

little bit complicated in terms of discerning what exactly we're reacting -- obviously the relationship was stretched. you had magnificent seven over everything else for so long, so there was room for this catch-up trade. then yields going lower, that playbook gets kicked in. if the market is right and there's a hirer probability of republican sweep or another president trump administration, does all that make sense as you line it up? >> so, first of all, i think the technicals drive the markets more than people realize. i think there's not enough stocks for sale that you get these concentrations particularly in the areas where there's real earnings growth and they buy back those magnificent seven buy back a huge amount of stock. the technical, part of what we've argued before, if you have 18%, 19% return on equity, plus the equity buyback, that's a darn good technical. i think that technical is still in place today.

until you change the earnings paradigm and the ratepayer dime is going to be pretty consistent; my sense is we keep grinding higher. equity volatility is so low and day today you get moves like today, like friday, we got 55-point moves on the s&p 500. one of the gifts is just buy, you can use call options, call spreads, you can stay long equities with real protection because of how cheap volatility is. >> right. there's no doubt that the market itself has been on this very tight footing just because -- not because just the big cap stocks are keeping volatility low. people don't want out of the market. they're rotating around within it. that being said, i guess the question tactically is whether we've pulled forward the benefits here. a lot of people talking about how earnings growth has to broaden out from here. probably does. you'll see deceleration in magnificent seven earnings. can that happen in the 1.5% real gdp economy that you're

expecting? >> we spent a lot of time the last three days looking at small caps and cyclicals and saying where can we go. the technicals and the crowding has been so prolific around this small set of stocks. it's hard, industry sector companies, you'd say, woo, let's get long that because we think they're going to start to -- in a slowing economy are going to do well. there are some places i think energy is reasonable. i think the free cash flow is reasonable. i think some of the financials, some are pricing a high multiple, but there are a couple of financials that we think make some sense. we were adding to a couple today. then you look in some of the industrials. there's some value. it's pretty hard. the trend, the intermediate to long-term trend is the companies that have the data that build the competitive moat and will pivot off ai and technology will continue to grow. is there a tactical trade? because of the crowding, i think there's a tactical trade.

the question is how big do you want to play in that. i'd argue the options are a beautiful way. the vol is pretty low. >> one thing i've been trying to come pare and contrast, if you expect, as the prevailing view seems to be, okay, we can count on the tax cuts maybe to stay in place, maybe less regulation if, in fact, there's a change in administration. that's all well and good. the last time we got that e oh i -- i'm sorry let's get to breaking news with eamon javers. >> that's right. former president drum just announcing via truth social social media app he selected j.d. vance, the senator from ohio as his vice presidential running mate. the former president saying after lengthy deliberation and thought and considering the tremendous talents of many others, i have decided that the person best suited to assume the position of vice president of the united states is senator j.d. of the great state of ohio. he honorably served our country in the marine corps, graduated from ohio state university in

two years and is a yale law school graduate where he was editor of the yale law journal. this is an important decision. vice presidents don't tend to sway elections one way or the other, but it's an important indication of what the president of the united states and the candidates for president of the united states want. in this case by selecting j.d. vance, former president trump is not selecting somebody who will do coalition building, bringing in a group of voters who doesn't necessarily have access into his coalition. this is a presidential nominee who already has a coalition. he already has solid control of the party. he's already doing very well in the national polls. in selecting j.d. vance he's looking at somebody more complimentary to him than somebody who brings in an additional group of supporters he doesn't have access to on his own. j.d. vance just 39 years old. an author of the book widely

well received hillbilliology. >> eamon, this isn't about geography and swing state calculus necessarily. in terms of it being come mrementry, what's the tone, the likely mission of this vice presidential candidate? >> well, i think the former president is going to want somebody who can go out there and campaign hard in states that he can't reach, in areas where he can't get to on any given week. it just doubles the power of the campaign by having those two traveling campaign plans out there at any given moment. j.d. vance's pick will be scrutinized by folks on the left, of course. in the wake of the assassination attempt on saturday against the former president, j.d. vance took to social media, posted very critical remarks about democrats. there's been some thought that the former president would try

to moderate his tone, come up with a unifying tone this week here in milwaukee. the selection of j.d. vance is the selection of somebody who has gone from staunch trump critic to absolute staunch trip advocate, somebody who defends the trump campaign in every situation. so that's what he's getting here. somebody that's going to hit the campaign trail and hit it hard. >> eamon from the republican national convention. we'll be back to you soon. thanks very much. rick, just to pick up where i was heading with idea of, let's say there's a policy mix you expect into next year of lower taxes and less regulation. last time in 2016-'17 when we were pricing that in, we were sitting at a low level economy. sort of a different starting place here. how does that filter in to whatever you're thinking? >> a couple of big things. first of all, when you think about regulation, you think

about a lower level of regulation. talking about energy and other areas. there's something that's really important. there's a long discussion about tariffs and how much tariffs and how much does that bolster higher levels of inflation. my sense is that if you're running for president, if you're elected president, you don't want to see inflation spike higher immediately. there ar there are probably areas with deregulation generally and you think these are places to reduce friction. >> just to button it up in terms of the yield curve. there's conventional wisdom you should see it steepen, whether pricing in higher deficits or lower tax revenue or maybe because of higher inflation expectations or higher growth. how is it set up right now and what's the message with the yield curve right now.

>> people talk about the inverted curve, recession, all that. you can write all that off. such a different economic condition historically. who borrows versus who doesn't, the borrowers of capex don't borrow as much. there's not a lot of supply of long bonds. we're going to get more supply because of the dynamic around deficits. in the interim, the fed is keeping the rate high. i think what's going to happen is the curve is going to steep pen. the question is is it going to steep pen by the front end coming down? i think that's right. this is part of why the forwards are pricing this in already. this is part of thinking about it from afar versus being in the middle of the markets. the forwards are what matters. you're pricing in the nature of a front end which is going to come down which i think is right. part of why the equity market is comfortable with rates is because of the anticipation that we'll follow the forward curve and rates will come down. >> when we've spoken in the

past, you said we're finding good value in the five-year type of area. is that still the case? >> 100% of the case. the front end of the curve, pricing in seven cuts. why would you be in the front end? the long end of the yield curve. days like today, why do i need volatility in the long end when it doesn't get you the yield. three-year to five-year, maybe out to six, seven years. the belly of the yard line where the forwards can still move, that's the lever of where interest rates can move. you're not going to lose that much. staying in those assets, it's incredibly powerful, just stay in these assets. this year most fixed income after today will be flattish. if you're staying in income-producing assets, you cannot worry about interest rates. even if they go higher, you have enough income and carryinto that three to five-year part, you'll do fine.

>> and they act as a cushion to whatever else is going on. rick, always great to talk to you. thanks very much. >> let's bring in shannon and ke kevin. kevin, let's start with you. in terms of the equity market dynamics, it's as if the months and months of complaint that the rally was too narrow, the market said, okay, we'll give it to you all at once in the last few days. where does that leave you with regard to whether this is sustainable? >> it's interesting, because of the divergences that we've talked about a lot over the past few months, especially if you take it back to late march, they don't tend to get resolved by the average stock of the rest of the market catching up to the index. although typically more of a conve convergence. courtesy of the move last week are from small caps and deep reciprocals, it's been resolved. it gives the market a bit more

runway. what's probably coming more into focus in terms of where the downside risks lie, in keeping with what rick was talking about in terms of inflation, coming back to something that looks a little bit more normal -- definitely not normal in absolute terms, but relative to where we've been, it's normalizing. i think we're sort of removing inflation as the main risk now in terms of an upside surprise in turning higher and introducing the labor market as something to focus on. rightfully so, the fed has been focusing on that. they're viewing both parts of the mandate in focus, in balance. i think that's probably the right way to think about it from an equity perspective. >> shannon, are you trying to figure out corporate earnings name by name? i would imagine this might be setting up as a more rewarding environment. how are you viewing it so far in terms of whether the market looks like it can sustain in this way for a while. >> rewarding would be great for sure. a lot of the language we're hearing over the last couple

days, it sounds a lot like november and december of last year where we were staring down the barrel of six to seven rate cuts. where we felt like some of the volatility around treasury yields had dissipated. i think we're really looking at this as an opportunity for us to capture that earnings growth in the second half of the year. if you look at the comps. four sectors outside of technology. those earnings revisions have been pretty positive. so our -- from our perspective -- rick was mentioning this before -- trying to find the pockets, whether it's energies, industrials, financials, materials, health care, where you anticipate that second half of the year you're going to yield that earnings growth. it's not that we need earnings growth in those other sectors to even start to look like the seven to ten names that have really run over the last 18 months. it's that that delta is -- it's starting to compress a little bit. that's where the opportunity is

i think for those looking for the broadening out trade to persist. >> kevin, i guess the other piece of this is we're getting this rotation, and so far it's been painless. the big cap indexes have not given much back in terms of their gains for the year. in fact, have come into this week looking maybe even a little bit stretched on the s&p 500 level. it's not as if people have been out of the market and expecting bad things as we get into this period. i just wonder how that fits i represented your tactical view here. >> that's really i think the right way to think about it. often when you pit the mega caps versus the rest of the markets, it's often thought about in this way, it's a zero-sum game. only one group can do well at the expense of the other. in the case of a bull market that looks relatively healthy, in typical bull markets it's sort of a rising tide that lifts everything together. there's still more of a catch-up trade to do for deep reciprocal

s. that's one of the reasons utilities did well earlier this year because they had such a tough time at the end of last year. for the most part, if it fits with how disjointed the cycle has been in terms of some pockets of the economy taking longer to rerecover as you're starting the see softening in areas like services, that will benefit over time a broadening of the rally. it's not going to happen perfectly and at one time. i think instances last week are this rubber band moment where you get a snapback. over all the economy is hanging in there and remaining are resilient. >> shannon, the market is trying to behave as if maybe this is a year where the seasonal choppy period ahead of an election, that uncertainty move to the sidelines type of effect maybe isn't going to come around. maybe that's exactly when it starts, when nobody expects it. what are you thinking in the next few months in terms of how this market might proceed.

>> well, if you just overlay what we've seen historically in presidential election years, as you know, we've seen that performance pull forward. so do we see that volatility be pulled pforward? maybe. earnings-led markets tend to be less volatile that. is at a tailwind for us. the other thing is just the confluence of factors coming to play in that late august/september time frame. usually you see election related volatility pick up after labor day. maybe we see that creep into august because we've got jackson hole as well. maybe we see that happen, that six-week period start a little earlier. again, this is an extraordinary period where we've known the candidates much earlier than anticipated. obviously there's been some questions about that in the last ten days or so. i think looking at it in a blueprint perspective, maybe you can't look at the historical precedent, but there is probably

some rhyming, albeit complicated by what we're expecting between jackson hole and the september meeting. >> you have to figure there's going to be some rethink or surprise along the way. we'll see how the markets might navigate that. shannon and kevin, thanks for the time today. let's send it over to kate rooney for the biggest names moving into the close. >> stocks tied to crypto are some of the biggest movers. the cryptocurrency has been climbing since the attempted assassination of president trump. trump has been emerging as a friendlier candidate towards the industry with bullish comments around regulation, also set to headline a major crypto event. coinbase is one of the names getting a boost today, up double digits. marathon up higher as well. solar stocks having a tough day. solar edge leading the decline. the stock sank 13% after the company announced plans to lay off 40 employees due to

declining revenue. other solar stocks tumbling, sun run and sunova dropped 13%. back over to you. >> kate, thank you. we're just getting started. up next, the apple of your ai? shares hitting an all-time high after morgan stanley eric wood ring names apple his new topic. he'll be here on why he sees a record iphone up cycle ahead. we're live from the new york stock exchange. you're watching "closing bell" on cnb c.

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that put donald j. trump over the top as the republican nominee for president of the united states. the moment happening just a few moments ago. his son eric trump was on the floor of the convention in order to announce florida's delegates. here is that moment played out. >> florida, we hereby nominate every single one of them for the greatest president that's ever lived and that's donald j. trump, hereby declaring him the republican nominee for president of the united states president of the united states of america. >> donald trump no longer the presumptive nominee of the republican party, he's officially the nominee of the republican party. the math on that, mike, he needed 1,215 to clinch out of a total of 2,429, florida was chosen to be the state to put

him over the top. now donald j. trump has a vice presidential running mate and he's got the republican nomination for president, mike. back over to you. >> eamon, thank you very much. apple hitting an all-time high after an upgrade from morgan stanley. erik woodring raising the price target to $273 a share calling apple intelligence a clear catalyst for a record upgrade cycle. good to see you. >> good to see you. thank you. >> we've had a couple of middling upgrade cycles. why do you think the ai technology incorporated here. we heard about it about a month ago, is going to move the needle? >> if we look back in time, there's been no other place in time when the install base has been as large, replacement cycle so long and where apple has forced you to upgrade your phone to get a new and pervasive technology at the same time. you put all those three together

and you say there's a clear catalyst, and only 8% of iphones and ipads can run apple intelligence today. it's clear apple will try to add more utility value to your phone and introducing apple intelligence. almost certainly the product will get better over time. ultimately there's over 1 billion devices that need to get refreshed to get the technology. that's what we think drives the upgrade cycle. >> it's not necessary by the way you put it up there, that it will build in that direction. it seems like you're fixing the price target, the valuation on fiscal 2026 numbers. >> that's exactly right. apple intelligence will launch sometime later this fall, only available in u.s. english, 30% of the iphone install base is in north america. so there is a cohort that can upgrade this fall that can get apple intelligence. but ultimately 70% of the world doesn't have access to it.

in countries like china, you'll need a local cloud partner. there's still language broadening that needs to happen, third party api integration that needs to happen. we think that can progress over the course of the year, such that in physical 2025, we have apple doing 235 million shipments, slightly above consensus. in fiscal year '26, 262 million shipments. i also say we think with iphone 17, we think you get a bit of a form factor change. we think you get a slim model, that becomes an incremental reason to upgrade as well. >> does this change the mix in terms of services versus hardware and all the multiple implications for that? even with this fairly aggressive above consensus idea of what revenue and earnings can be in fiscal '26, a 30 times multiple on top of that for your price target sglb two ways to describe it. product rev my is going to grow

faster than the last two years. that's clear. double-digit growth versus relatively benign growth. the mix to services won't be as strong as the last two years, but we still have services outgrowing product and you get this positive mix such that by 2026, 40% of gross profit dollars from apple come from the services business. it's about 36% today. we then say historically there's a clear correlation between services gross profit dollar mix and valuation multiple. the cycle in and of itself is multiple enhancing. if services is growing faster, becoming more a mix, that is a tailwind to the multiple. albeit earnings have to drive the majority. >> i was going to say i wonder what the main pushback, if it is just on valuation. even with meeting your revenue estimate for fiscal '26, i think the five-year analyzed revenue growth is only going to be 5 or

6%. >> that's ultimately how apple trades over time. there are four-year cycles here. that's what we've seen historically, the first two being strong, the third meade oakal and the fourth up to that cycle. this year we are entering into this two-year up cycle. if you go back to 2021 with the 5g iphone 12 cycle, apple peaked at about 32 times earnings. that's when the exuberance behind the 5g iphone cycle was growing. we think the same thing can happen. we think 31 times multiple. relatively in line with the historical peak. you services mixed as a percentage of gross profit dollars higher today than you did back in 2021. that helps to support that call. >> is there a longer-term issue? you have the industry investing hundreds of bill uns in capital, in physical infrastructure to do whatever ai is capable of doing. is there any risk that in some respect it displaces either the iphone as essential, vehicle for

a lot of this stuff or something else? >> today, not yet. there have been some, let's call it early use cases or early tests on other devices outside an iphone that haven't come to fruition. the iphone and the smart phone more broadly is still kind of your key compute device. i think apple actually has one of the most brilliant strategies, with the hindsight of 2020 is fair. we can look back and say apple is trying to take a narrow approach to generative ai, provide better insights and functionality for what apple can control on the device. but then ultimately try to integrate the best foundation and best multimodal models possible and distribute it to the customer base for free. we that own an iphone, it's almost a capital light approach in which apple's capex is 10 billion. the rest of the companies send $150 billion plus a year. apple is tribbeting those platforms for free. or at least we perceive to be for free.

it's a very powerful strategy that keeps the iphone and the smart phone as your core compute device for the years to come where people innovate. that's going to be exciting as an analyst, but we don't see it yet. >> erik thanks. 349 as your bull case. >> thanks. coming up, a breath of fresh air. top technician jeff degraph is breaking down the rally's broadening participation and where it's the real deal or just another short life catchup trade. "closing bell" will be right back. ah, these bills are crazy. she

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the russell 2000 leading the market here to break down the technicals. renaissance macro research head of technical research, jeff degraaf. great to see you. take us through your checklist as to whether this phase of the rally is on solid footing and what you make of the recent expansion. >> well, you know, we were getting a little uncomfortable with the market at the early part of july. we knew that the seasonal trends were still very, very strong. so that was keeping us in the game, if you will. but historically as you get towards the end of july, the seasonals tend to peak. that's the point in which we were going to look to exit unless you saw some notable improvement in breadth and preparation. we got that on thursday. in fact, thursday's advance was the fourth largest

outperformance of the russell 2000 versus the russell 1000 in the history of the data which goes back to 1979. it was pretty meaningful. that's exactly what you want to see. thursday was at the expense of the russell 1000. clearly we've seen improvement since then. when we look at 20-day highs and some of the other indications of breadth, they're not as good as they were back in december, but they were well above 40%. that's a good number that has sustainability to it historically. >> i noted your work about the greatest outperformance or expansion in history. some of the other similar dates were around major market woes. coming out of a real washout. does that change the calculus? >> i think you have to put an asterisk by it. we don't have the same amount of volatility. the three other dates were the lows close to 87, the lows close

to '08, close to covid in 2020. clearly a much different environment than we were there. we did the work on this. it historically is bullish for the s&p, out one in six months. it's pretty bullish for cyclicality versus defensive, which is what you'd want to see as well. it's a very good indication short term for the russell, too. what's interesting is outperformance tends to fade after about three months. i do think we've got this window of opportunity for the small cap names here. i don't know how durable it will be. if you look at history, it will be good for about three months and then you might as well be a market participant at that point. when we look at the other dates around that that weren't those meaningful lows, we had one after the 2016 election that was very similar to that, and they prove to be bullish as well. >> certainly seem to have a little bit of life to them.

>> i know you've been looking for months for yields to have peaked. they sort of rolled over at this point. where does that project down to, let's say, on the ten-year. >> i think it's good news. we have to get through this 420 level, and i haven't looked at it in the last hour or some but getting through 420 then takes you down to 403. getting through 403 which i think we will do, takes you down to about 380. as long as that trajectory is to the downside. we're already seeing it in short rates. we're seeing a little steepening of the curve. short rates can take us down to 4% pretty easily. all the things we'd expect to see, when we see short rates declining, pickup in reits as an example, all those are good signs. in fact, one of the most consistent asset classes is small cap when you get the short rates to come in. all these things are fitting together with this peak in yields. it took probably three months longer than we were hoping it

would to stall out and roll back over. i think the inflation prints we've seen and what we're getting from the fed, it's clear we'll be on this trajectory of at least table to lower rates. that should feed into the back end of the curve. i don't think it's going to be as aggressive. >> the suspense did build for a few months there. jeff, thanks a lot for the time today. appreciate it. >> good to see you, mike. thank you. we're tracking the biggest movers. kate rooney is back with those. >> retail is going to be our big theme today. one major u.s. department store down double digits after a buyout deal falls through. a high-end brand suffering from a luxury slow down. we'll tell you who we're talking about when "closing bell" returns.

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the big cap index is in record territory. let's get back to kate rooney for whach to watch. >> macy's plunging 16% after ending negotiations with arc house and brigade which wanted to buy macy's for about $6.9 billion and take that company private. macy's is in the middle of turnaround effort led by ceo tony spring. shares of berberry warning it will report an operating loss if the recent slowdown continues.

berberry is suspending dividend and naming a new ceo. mike, back to you. >> kate, thank you. still ahead, the financials hitting a record high on the back of earnings from goldman sachs and blackrock today. we'll break down the numbers behind those moves and look ahead at reports out later this week. we'll be back with the bell right after this break.

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up next, a warningro fm general motors. we'll tell you what it is on the other side of this break. "closing bell" will be right back. ♪ ♪ ♪ ♪

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so this is pickleball? it's basically tennis for babies, but for adults. it should be called wiffle tennis. pickle! yeah, aw! whoo! ♪♪ these guys are intense. we got nothing to worry about. with e*trade from morgan stanley, we're ready for whatever gets served up. dude, you gotta work on your trash talk. i'd rather work on saving for retirement. or college, since you like to get schooled. that's a pretty good burn, right? got him. good game. thanks for coming to our clinic, first one's free. in the "closing bell" market zone. the s&p 500 now flat on the day. phil lebeau is here with news out of general motors warning on its ev target.

leslie picker sharing what to watch for tomorrow morning. jackmanly here to break down the crucial moments in these final minutes of the session. phil, what did gm have to say? >> make, for some time general moat toers has had guidance that by the end of '25, it will have capacity in north america to produce 1 million evs. that's been the guidance for some time. today mary barra at a cnbc event said huh-uh, they're not going to make it to 1 million. here is what she had to say. >> general motors moving the an almost all-electric future. the vehicle is really a software platform. we're seeing a slowdown. we won't get to the market just because the market is not developing, but we'll get there. we're going to be guided by the customer, but what i like to tell people is get in an electric vehicle and drive it. it's instant torque, opens up

new design language for the vehicle. as the charging infrastructure gets more robust and evs become more affordable, i think we'll see that growth in the next 10, 11, 12 years is going to be pretty transformative in the way that people move. >> so again, gm saying it will not be able to hit its guidance of 1 million ev capacity in north america by the end of '25. mike, i'm sure we'll get more details when the company reports q2 results next week. >> all right. we'll look out for that for sure. phil, thank you. leslie, yet more banks we'll hear from tomorrow. what should we be listening for. >> hey, mike. four more big banks down, two to go. tomorrow we hear from bank of america and morgan stanley. up 150% from last year thanks to higher investment banking as well as trading activity. however on a

quarter-over-quarter basis, earnings decline a quarter%. analyst expect baik decline 9.5%. much focus for both firms tomorrow will be on investment banking and how much share they've been able to capture against a backdrop that's been largely strong for their competitors. for bank of america's case, can it stem concerns surrounding net interest income that have really befallen other money market banks. we'll see first thing tomorrow morning. >> we sure will. always a lot of nuances once you hear from the big guys. thank you. jack, this market setup in general, we have the s&p 500 up 18%. we're inanother one of these f phases where it seems like certainty build in over concerns of the landing. can it be that good? >> it feels like the market is more or less dialed into the actual narrative, mike. we see an inflation report from

last week that's better-than-expected. a report from a couple weeks ago that's softer than expected. we're in this bad news versus good news sort of thing. >> as long as it's not super bad. >> exactly. we got commentary from powell this morning seeming to say rates are moving lower. if the economy is able to execute and cut once, maybe twice, we have plenty of reason to be excited. >> i guess what matter we might melt, if that's the way we're going to go, is a big topic at the moment, too. you have a little bit of maybe fatigue in some of the biggest stocks powering the market higher for a while. we have been talking about this rotation into smaller, more cyclical financial stocks out there. you have an interesting thought that for that to really take hold, we might have to have a little crisis of faith in the ai story? >> i think that's a big part of this. you can talk about how better-than-expected gdp

expectations, weaker wage growth, falling prices, falling inflation, all these things are structural tailwinds for broader preparation in general. you've got to be wanting to move away from the darlings that have done so well in your portfolio. until you throw more xoeld water on it, i don't think that happen. what the cold water looks look, i'm not sure. i'm not sure if it's an earnings report that misses on expectations, a regulation headline that grabs attention. that's what we need to see happen for this rotation to get legs. >> the rotation -- maybe you've seen inc. links of it, also extend to non-u.s. markets. that's been a piece of it. the rest of the world has traded like the equal weighted s&p or the value index as opposed to the big cap s&p. >> it could. you to be careful where you're allocating overseas if only because the dollar is so strong. to me that feels structurally like something not going away, especially in a volatile world. when i think about international

markets, my big guest problem is that so much of the attention is being paid to, well, it's not u.s., the valuations are cheaper, this headline is different. not enough attention paid to the competitive advantages that some of these regions have in specific markets. glp-1 drugs, renewables in europe, the removal from china and the others being more viable trading partners. this is longer-term stuff that's more secular and exciting it's got nothing to do with valuations. >> that being said, is it time to actually start to get exposure to those themes or is that we're just solve not there yet. >> i don't think we're there yet. if we are, i don't mind being a little late to that party. >> most likely, if it does start to roll, it would go for a little while. jack, great to talk to you. thanks very much. i mentioned a minute ago the s&p 500 has come off the highs. it was close to 1% at the peak earlier today. now down about -- up .2%.

the russell 2000 up another 1.75%. that's ahead by 7 or 8% over the last several days. the market also a positive, but not necessarily as overwhelming after cpi. that does it for "closing bell." we'll send it to over time with jon fortt. >> that bell means the end of regulation. parsons corporation ringing the bell at the new york stock exchange. masimo group doing the honors at nasdaq. the dow closing at a record. it was a small cap that outshined once again with the russell 2000 gaining 2% even as the other indices came off their highs. that's the score card on all sweet. welcome to "closing bell" over time. morgan brening is off today. todd lee is going to give us his latest market prediction as stocks sit near record highs and bitcoin takes another leg