much larger sums than zelle. this is ideal for cyber criminals. in real estate, you're overwhelmed with paper. >> we got one in about ten seconds. warn you there. >> much more of that story on cnbc.com. appreciate it. thanks for watching "power lunch." "closing bell" starts now and "overtime" is right after it. welcome to clo"closing bell" we begin with the key indexes caught in earnings season cross currents while money continues to flow into small caps and bank stocks. let's get a check on the scorecard with 60 minutes to go in regulation. the s&p 500 holding on to monday's 1% gain. had a modest further rally today. it's not flattened out as earnings winners such as ge ae space and sherwin williams help to off set drops in gm and ups.

gm, which had really rallied into the number and had good ones but down 6% on the day. the nasdaq flattish with pressure on semis after the group's strong bounce to start the week and the small cap russell 2000 once again demanding attention. now, 1.4%. second day in a row where an indifferent open drew in some buyers and they started to ramp. regional banks continue to track those stocks. the kre etf up another 2% today. it is also financials that are the strong area. that takes us to our talk of the tape. will earnings season serve as a support or a stumbling block to a fully valued market working to digest a strong year-to-date rally. here to kick it around is dan greenhouse. good to see you. >> thank you, sir. >> so, there's really a lot of i guess back and forth within this market right now. which seems placid.

s&p, 2% off its high. no big deal. what does earnings season hold for this fundamental story, which i think is really riding pretty high on soft landing comps. >> i think this is the point where i'm supposed to tell you it's not about earnings. it's about the guidance. >> well, yes. >> of course, i'm joking. i actually don't think there's much to this earnings season that i'm concerned with. normally, the answer is it's about the guidance. obviously in the case of large cap tech, you care about capex, margins. i think the issue is rates and the federal reserve. i don't always feel that way even as someone who looks at markets from a top down perspective. we have the fed meeting in two weeks and how they characterize the environment is every bit as important as what's going to happen in earnings season with the caveat again that large cap tech and margins are going to be crucially important. >> what about the market behavior in the last couple of weeks indicates which way the

market's leaning? in other words, have we priced in 100% september cut. 100% they're going to stick the soft landing. is it anything that deviates? we have a cushion. >> it's hard to look at the level of credit spreads, valuations and not assume they're telling you the market thinks we're going to stick this landing. my view is that it is not a soft landing until the fed has actually reduced interest rates and the economy and markets have been able to sustain that move. but i would also add you look at the companies that have reported. you alluded to it already that ge is off setting gm and you see that in a number of places. again, getting back to my original point. i don't think that there's anything particularly to worry about in this particular earnings season and you've heard from polte that yeah, there's a little bit of wobbling in demand, but dr horton said everything was fine. kimberly clark said there was some trouble at the lower end.

but coca-cola was able to raise price and had volume. so you had very much a continuation of a trend that we've seen for the better part of six or nine months now and again, my view is i'm not sure anything in this earnings season is going to change that. >> earnings season often has that essentially kind of off setting currents and you have to just wait until the end of it to see how the agates come through an what the revisions are and the rest of it. i think when you have s&p 500 pe pushing 22 times forward, you know, market always runs ahead of the fundamentals. it seems as if that has to come in and tfill in the blanks and say we can check that box off. earnings are in double digit annual growth right now. what else if anything do you think might disturb things? i mean, if you think the swing factor now is we need to do what everyone expects it to do, you know, what's it going to take? >> on the valuation front, i've been at this for some time now and -- >> as we've established, not as

long as me. >> that's right. do you remember a time in the last 20 years say when the regular parade of those of us who come on the network regularly were saying the market's a screaming buy? >> actually, no, but i remember in the early 2010s, we were at 12, 14, times earnings, people were like, that's fair. that's what it should be. >> because we were waiting for the shoe to drop and every rally was a fakeout and certainly pre 2011 and around that time frame. new lows were always just around the corner. so even a fair value, the market wasn't screamingly attractive. 21 times is not as cheap at 15 times but right now, i think the earnings and the market backdrop is justifying those high levels. that said to your point, if something changes narratively and my forecast horizon, i don't have that. but if something were to go awry, the weakness we've seen in the labor market spreads out or

spreads to the upper consumer, then sure, we can have a conversation that certain pockets are too richly valued, spreads too tight. but we're seeing a deceleration from unsustain bly high levels of growth in the third and fourth quarters of last year back to something akin to normalization. the crv troubles which we were told were imminent have not come to pass. you had fifth third reported i think it was. amentee back, sorry, zion that reported. they're back to pre svb levels. you mentioned the kre. so all the things that you have worried about have not come to worse case outcome so what you're left with is an economy that continues to grow. corporations that continue to manage the environment very, very well and a market that's

reflecting that again in its elevated valuations but again, as long as something doesn't change on that front, no great rocket scientist statement, i don't know why i would be any more scared tomorrow or the next day than i've bieneen over the t few months. >> just as we all got slotted into this thought that we were decelerating and you've had some weakening of activity across multiple fronts, the economic surprise index has bounced hard in the last week or so. and all of a sudden, there's some firming in whether it was retail sales or some other of these indicators and then we got pce on friday, which of course everyone has put in we don't really have to worry too much. >> because we know a lot of the inputs that go into it. >> it's supposed to come in and 2.5% year-over-year. >> 2.5 -- >> it's fine. >> it's in spitting distance of the fed's target of 2% and i think the you're the federal reserve, and forget my opinion. just take them at their word. it doesn't sound like they're willing to sacrifice the market

at the altar of that spread between two and 2.5%. so if they can get a couple of rate cuts under their belt this year, maybe couple more next year and inflation settles in at 2, 3, something like that, i don't know that this fed based on their statements is going to be unmahappy. neither should the market. >> it's actually ahead of where they thought. let's bring in marcie macgregor of merrill and victoria fernandez of crossmark global investments. marcie, we seem like we're sort of setting aside a lot of the potential risks. how do you view things right now? >> well, generally speaking, i think this bull has room to run but we've been using the analogy that the summer months may lead us to a buffalo market. so buffalo's might roam and wander. might pause after a strong run, so you may see some

consolidation this summer. i think the ingredients are in place for this bull market to continue. you have ample liquidity and easy financial conditions. i'm optimistic about earnings. i think the other 493 companies are going to see their first quarter of earnings growth s second quarter of, fourth quarter of 2022. i think you have rates that are making lower lows and lower highs. so i think we're pretty range bound. we havea stable rate situation and generative ai is adding innovation i would argue we're at the beginning of an elongated capex cycle here. i see the ingredients for this positive uptrend to continue probably with choppiness this summer. i would use any healthy pullback as a buying opportunity. >> you mentioned the other 493 stocks in the s&p 500 outside the magnificent seven. what's fascinating on a day like today is that the russell 2000 is up 1.24%.

equal weighted s&p is dead flat so it's not as if everything outside the seven are rallying. it is the russell 2000 has become its own species and its own trading instrument in the short-term and the rest of the market kind of just sloshes around the flat line. what does it tell you if anything about the prospects for any rebalancing of this market? >> yeah, so when i look, we've been positive on small caps for some time and maybe a little bit early. but we've now seen the sharp rotation which tells me we're right to be really well diversified here. i don't think this is just short covering. it's a review of lower costs for companies. i would stay up in quality here but with the first rate cut, seems like it's going to be sooner rather than later, i think small caps can continue this run. i like small caps. i would stick with higher quality for now, but once the fed starts cutting, i get more

optimistic. >> victoria, talk to us about whether the pce report coming in or early run of earnings have filled any of the blanks for you in terms of where you think we might be heading. >> i think we have to be a little cautious going into the second half of this year because some of the elements you've been talking about. we've seen a little weakness in the labor market and that will give us deaccelerating wage growth. so we could see weakness there. seasonality changing. as we go into august and ce september, it starts to be weaker. we're seeing credit card and a auto -- rise. i think you want to take advantage of the momentum we're seeing. we've been so concerned about breath this year, but we're starting to see some of that come out and not just in the russell 2000, but small caps i

would be a little concerned on because 90% of the return we're seeing in the russell 2000 is from pe expansion. so i would wait until i saw the earnings support come in. we're seeing that in the large cap so i think that's where you would put some money to work. but really start to spread it out in financials. healthcare. you're seeing some of those sectors that have been so down beginning of the year start to come back. i think that's where you would put some money to work. focusing on that quality factor. >> quality is where money has been coming out of in favor of some of those less financially strong companies and small cap. i guess the question from here is we came into this phase when we started talking about this rotation. when the cpi really came in convincingly in retreat a couple of weeks ago, we came into it

with not just a narrow rally in the s&p, but with this idea that we were due for some kind of seasonal break. you mentioned early july, things were looking stretched technically. you did see sentiment start to get happy. positioning we now know was very crowded in those areas. so what are we looking for to figure out if that's been sorted? >> i think when you talk to the desks around the street, their opinion is a lot of this has been sorted. in early july, a bunch of us on the desk would talk about in a simplistic fashion, the spread between how far the indices had gotten from the 200-day moving average was probably suggesting that some digestion was in order. my argument was at the fed meeting at the end of the month, probably digest for the entirety of the month. that appears to be bearing out now. the data i think the street would advance is you had offside positioning. and what you've seen since that is retail inflows have been enormous. some of the positioning have

been corrected if not entirely correcting. there's a view in terms of when the iwm outperforms the spy. going forward, you have a little digestion then in conjunction with how those positioning figures have positioned themselves, the argument is that in the next month or two, you'll probably position this. i would add from an investor standpoint and this has been phenomenal for funds like solace's because we don't do large cap investing more or less. we're not sort of benchmarked into the s&p that way. so when you see the iwm, the other sectors of the market outperforming, it's terrific for us because we can do better to put it over simply. when you go back to that july 11th cpi report, what's done best since the goal. we've talked about the financials. reits, home builders. a couple of interest rate sensitive areas of the market. that allows managers to perform

much, much better because it's not only a few stocks driving all the gains. >> so we can stop weeping to the active managers. >> please weep for us and send us your flows. besides that. >> marcie, dan mentioned the rate sensitive parts of this market and really the general fact that the whole interest rate complex has cooperated here and you mentioned the lower lows in yields an the rest of it. what does that assume in terms of what the fed does and how quickly inflation continues lower from here? >> our view is that inflation is going to drift lower but still say somewhere above the fed's 2% target. i would point out though the sweet spot for equities is to have inflation somewhere between 2 and 4%. so with a really resilient company and dan used the term earlier of normalization. saving the conversation about soft landing hard landing. this is about an economy that's

still normalizing from the covid era. the labor market i would argue is normalizing. the consumer is normalizing and still really resilient in our data. so i think the market is pricing in calling three cuts between now and february. it seems like the data is unfolding just as powell hoped. which is really raising the likelihood of a september cut here. so i think inflation is going to likely kind of continue on this path lower but i think going forward, we still need to have a higher resting heartbeat for inflation, but i don't think that's a bad thing for equities. >> victoria, you mentioned you're kind of paying attention to some of the areas of the economy that might look look they're faltering or at risk of doing so. do you think that's the front edge of a new trend or are we late cycle? do you have a fear that in fact we're not going to be able to extend this expansion at this point? >> yeah, i do have a fear of

that and a lot of it has to do with the fact we think earnings aren't going to be as strong in the second half of this year. we haven't seen earnings expectations come down tremendously for the second quarter but expectations for the third quarter are down to 7%. you take out those top four, five names and earnings growth is only about 4, 5%. so i think you have to be a little bit concerned. especially if you think the consumer is going to pull back. you're going to get margin compression and that's going to lead to, or lower revenues. you're going to get margin compression and that's going to cause concern for these corporations. i'm not saying we go into some large recession but i think we get a lowdown. i think we get a pullback. and so i think you have to be a little bit cautious in the names that you're choosing here to make sure they can withstand any volatility. throw in an election and possibly new policy elements coming in at the end of the year and i think that's a recipe to stay a little bit more conservative in where you're putting your money to work. >> all right. we'll see if it's going to be

time to play defense again soon. appreciate the time. victoria, marcie, and dan. thank you. let's send it over to pippa for a look at the biggest names moving into the close. >> ge aerospace hitting a 16-year high after second quarter earnings came in above expectations. the company also lifted its full year outlook amid a jump in orders which were up 18%. it's the company's first report since its power business. ups, worst day on record after they missed estimates and cut guidance amid weak freight demand and soft pricing in the shipping sectors. also saying expenses increased. and danaher rising, which also reaffirmed its guidance. the ceo pointed to sustained positive momentum in the company's bio processing business. the stock at its highest level in two and a half years.

mike? >> thank you. we're just getting started. up next, the megacap earnings parade is kicking off with alphabet results set to hit in under an hour. we'll hear from a shareholder and tech expert about what is at stake for that stock when it reports in overtime. that's after this break. plus, what to expect from tesla's report after the bell today. we're live from the new york stock exchange. you're watching "closing bell" on cnbc.

we're less than an hour away from alphabet earnings. those results coming on the heels of its rejected attempt to acquire wiz. joining me now is alphabet shareholder and alex. welcome to you both.

alex, it's remarkable. alphabet stock over the last two years has outperformed the s&p and nasdaq 100 even with the initial scare after chatgpt came out and everybody thought google was going to be a net loser. >> you're right. 32% increase year-to-date. the company is rolling. and it shows you it's really survived this first era of generative ai. a year ago, the conversation was about how search was disrupted and we weren't going to see google survive this era. we just haven't seen the migration of consumer to generative ai applications the way we pexpected in the beginning. as this was happening, we were looking for efficiency and search advertising provides that. you have a good way of tracking where your dollars went. for google, it survived the massive threat and its main product is doing great for advertisers. so it's complete narrative

reversal for google and the company's performing extremely well. >> one of the key themes you might be looking for, clues in the way the research presented itself today. they're able to defend the franchise that they have. i wonder what else it means for the future though. >> we've seen some softening of economic growth. i think people expect some of the ad revenue would follow in terms of moderation. we're seeing some advertisers are picking up and dialing the advertisement in order to spur the consumer demand into softer environments.

>> and capex or general expense management sometimes becomes a bit of a concern when it comes to this company. capex is set to go to 45 billion year-over-year in 2024 then higher still. you think the market is going to embrace that idea and be happy to reward alphabet for these investments? >> well, you know, they talked about having capex being at least $12 billion per quarter in 2024. and i think if they're getting that return on the investment and i think this is why the attention will be paid in terms of the impact of generative ai on the cloud growth. are we near ago point where you want to have better visibility in what the payback is going to look like?

>> they've had pullbacks in some quarters expect when talking about ai. that's been until now. over the past few weeks, we've started to see companies including goldman sachs and sequoia say where's the cream filling here? the roi on this ai spend. we're starting to get better models. so we're going to see an improvement in the models the ai industry hopes over the next few months. with that being said, it has to translate directly into revenue for these companies. otherwise telling the market you're going to spend 45 billion this year, it's about ai. oh, by the way, that revenue might return an investment in '25, '26. that's going to be tougher to sell and might cause some problems for these companies. >> sure. when it comes to this potential acquisition that seems now is not going to happen of wiz, it wasn't going to be big ever

relative to the size of google, but tell us anything about you know, the freedom to move and the freedom to expand by acquisition. >> they've got the cash on their balance sheet in order to acquire something like wiz. they've got a net cash position of $80 billion. i think perhaps some of the regulat regulatory scrutiny that google has been under may have played into this as well. so we'll have to see exactly what type of acquisitions they can make and actually close upon in the future. >> alex, do you think there's broader implications of this squandered deal here? >> i don't know 100% that this is because of antitrust. they were in negotiation. throwing this out there trying to get a better deal from google. that's always a possibility. but i will say there's two theories of this. if vcs want big temperch compan

to acquire start ups. the government said let's let this breathe a little bit. this is the philosophical divide and debate we've started to have around these companies. honestly, it's not a terrible idea to test out the second option which is to say okay, you don't have to decide your exit is going to be with an acquisition. it's worked in a few cases so far. >> especially if the deal would have taken a long enough time to actually get to pay up close. >> and maybe we see a change in regulatory regime in a few months and they try again. >> thank you. up next, gearing up for tesla. the evmaker preparing results. dan will join me after the break. you can catch us on the go

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welcome back. shares of tesla sliding as the company prepares to report results after the bell. the ev maker experiencing a

rocky start to the year in which it cut more than 10% of its head count so second quarter dl deliveries declined. dan, year-to-date is actually kind of flat. it's been quite a ride. goes down to 175 and pops back up to current levels. over the course of the year so far, also because earnings estimates have gone down and stated pe from like 65 above 80 now. so where does that leave us? what is the company have to show in order to convey that there's progress on the important stuff? >> i think two dynamics going on. one is the demand story specifically in china is that turnaround. i think we saw it in 2q. the big focus will be musk talking about the second half of the year. then the biggest thing, too, is pricing. as we've talked about cut prices a lot the last year. now you've seen a stabilization on prices. that's important in terms of the

gross margin. 16.5, 17%. a big reason the stock's up is about that ai robotics play. robotaxi day. i expect musk to give it a date. i would think early october. the comeback kid, tesla. >> there are important things for the stock and how it trades. how important at least anytime soon is that going to be for the company itself? in a tangible way. >> from stabilization, it's about ev demand. demand clearly has started to stabilize. you saw gm pulling back a bit from an ev strategy. tesla's doubling down. do they talk about that sub $30,000 vehicle quote in 2025. do they give the roadmap to where you could look at 500,000 per quarter. get on that run rate so we'll see 2 million in 2025. then investors, that stabilizes the story. then really the cherry on top of

what could be the sundae is the ai story. robotics story. fsd autonomous. that's how you get to a trillion, $2 trillion valuation. >> 500,000 per quarter. up 10% from here we'll call it, right? >> yeah, and up better than down. that's the most important thing in terms of that trend we're heading toward. >> what are the assumptions about overall e vv demand? sure, market share is going to go from 10% down to something else, but what's the overall pie growing at this point or is it growing anymore? >> clearly slowed. you saw the bloom come off the rose and we've seen detroit in terms of gm, ford pulled back. others have pulled back. a lot of the startups have fallen off the cliff. and that has led to tesla gaining share, but china's really the story. i mean, china's the hearts and lungs of the tesla story.

stabilization there, byd, neo and others, that's going to be the key. showing that we're seeing strength in terms of the second half. but also stabilization from a gross margin. i'm sure lebeau will talk about that in terms of where you feel like the worst is behind you. a lot of bears, they're in those caves not understanding what's happened with tesla over the last three months. it's really now about the stabilization happening for musk and tesla. >> when it comes to the policy cease of this, of course, musk obviously very provocatively is out backing donald trump for president again. kind of doesn't mind or maybe thinks he'd be okay with getting rid of ev credits. how would that play through with tesla's business? >> if you think about the trump trade. if trump ultimately got into the white house, the view is negative for evs because the rebate would go away. negative for gm, ford detroit. the reason bullish for tesla, that would give them a price and

scale advantage. the other thing is if trump got in the white house could that fast track fsd autonomous relative to what we're seeing in terms of playing out versus china on the other hand. if you look at a harris ticket, could that be pro ev for detroit. maybe anti tesla just because it goes back to the view that musk has really been a background noise on the biden administration and trump administration. is that something that would be more front and center. that's why i'd say tesla is part of that trump trade. >> when you say you know the potential for fast tracking full self driving. is that because you feel as if the company, or the company feels as if currently, regulators are just very sk skeptical about permitting rollouts? >> the regulatory environment, if a trump white house, you maybe have less regulation.

could fast track some of the fdd autonomous depending where that goes for tesla, but also speaks to what's happened with china. you've seen the fifth gear on the fsd autonomous side. that's why i'd expect musk to talk about the race in november today on the call. no doubt. even though bullish trump where he is, ironically negative for evs and that's all part of this rubick's cube that investors are trying to figure out. >> highly competitive. up next, we're tracking the beg biggest movers. pippa standing by with those. >> two consumer stocks are moving in different directions after earnings. we've got all the details coming up next.

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18 minutes to the closing bell. pippa? >> lockheed martin is jumping 5% after the company beat q2 number on the top and bottom line while also raising its full year earnings and revenue guidance. they said demand remains robust and that it has a backlog of nearly 160 billion. sherwin williams adding 7% after topping earnings estimates although revenue did come up short. they raised full year guidance and noted a choppy demand

environment noting that general industrial demand was lower in all regions with heavy equipment and transportation down most significantly. and kimberly clark in the red as the revenue miss is off setting higher than expected earnings. they said they're navigating a dynamic consumer and retail environment, including value sensitivity more broadly across staples. the stock down 5.5%. mike? >> thank you. proctor and gamble down almost 1% it seem ons that news. up next, we are tracking major movements in key media names. spotify shares popping up the likes of comcast and disney dropping. "closing bell" will be right back.

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reporting about a million more subscribers than anticipated despite raising prices in june, which is less than a year after the prior price hikes. comcast shares are dragged down by a big miss in the theme park. revenue at universal pictures was tdown 27% though peacock wa a bright spot and continued to na narrow losses on higher revenues. and disney shares falling more than comcast. down about 3%. perhaps suffering from concerns that its parks division will suffer just like comcast did. disney also hit by news that ike promletter, one of disney's largest shareholders, has sold 25.6 million shares saying the sales came in the wake of the defeat of the activist campaign against disney.

mike? >> julia, the disney move seemingly as you mentioned after that comcast universal theme park numbers is interesting. obviously, theme parks kind of the biggest source of cash flow for disney. did see some analysts notes suggesting even before this that while both were down, disney probably outperformed universal. i wonder if there's anybody who's feeling as though this might be an overreaction to disney? >> we'll learn everything when di disney reports its results on august 7th, but we have to remember the theme parks had been so strong for disney. in the wake of the pandemic, there was this revenge travel and pent up demand. disney did see a massive surge in attendance and spending at the parks. the question now is really how much that continues to hold up. this quarter is interesting because it gives us a window into what's going on in the summer. q3 will tell us more about that. but the summer is of course the all important season for the theme parks and disney is really

doubling down, continuing to invest in parks. they committed an additional 10 billion to invest in the parks and cruise ships. the question really here is disney doing better than the universal parks or are we seeing an overall challenge here of consumers who might have gone this summer to a theme park might have went last summer. >> of course, disney, more global with the parks business, too. we'll see how that all plays out. thank you. up next, your earnings rundown. alphabet, tesla, and texas instruments all reporting after the bell. we'll run you through the key thes aemnd metrics. that and more when we take you inside the market zone. ♪ hey, come on, come on ♪ ♪ do what you want ♪ ♪ what could go wrong? ♪ ♪ come on, come on, come on ♪ ♪ come on ♪ ♪ do what you want ♪ get into an audi and go your own way. ♪ do what you want, yeah ♪

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we are now in the closing bell market zone. we are on earnings watch with three big reports out in overtime. seema out with what to expect from texas instruments, phil lebeau on tesla and steve kovach on alphabet. reporting coming early. >> not a great read. better than expected earnings from that company, but weak guidance and the stock is responding. concerns about its customers in the automotive space working through inventory levels. that does raise concerns about companies like texas instruments. expecting a year-over-year decline. the stock has underperformed the semiconductors sector this year. activist investor elliot management taking a $2.5 billion stake in may. gross margins did contract last quarter so they'll be looking to

see if margins have bottomed. plus, its plans to further expand in the u.s. 75% of its business is in the u.s. and it just broke ground on a plant in utah last year. last year when the narrative was around china and taiwan, which was one of the stocks that outperformed give an sizable exposure to the u.s. >> phil, tesla, a lot to kind of keep straight here. with what they're going to give us. >> it is basically what we want to focus on is what they tell us about what to expect in the second half of this year or going into next year. in terms of what to watch for during this earnings report, mike, the china pricing impact, had that stabilized. if that had stabilized and we noticed that in the margins, that could give a boost to shares after they come out. robo taxi hints, we think that maybe some time in october, we might get the view of what they

plan for robo taxi and the lower priced model plans. remember after the last quarter, they had really bad numbers. and they came out and said look, we're going to come out with a lower priced model. people said okay, maybe it's going to come in around 35,000. do they give us any more details about that? as you take a look at their total annual deliveries, keep in mind the expectation is just a little above where they came in last year at 1.8 million. the estimate now on the street is 1.82 million. do they talk about deliveries heading into the second half of this year. i'm not expecting that, but it's a possibility. remember, the conference call is where it's at. starts at 5:30. during that call, how much will elon musk will focusing on tesla, true tesla news versus perhaps some political commentary, which could help tesla in terms of how he positions the company depending on how the election goes. that's going to be real interesting on that call.

>> no doubt about it. he's absolutely out front on a lot of those issues. phil, i wonder whether gm's results today gave us any indication of any clues for what tesla might have to say. whether it's an overall ev demand or anything else. >> i don't think so. because i think when you look at gm, ford, and the other legacy automakers as they try to ramp up production, what we're in now is the cycle of dialing back the expectations that they ramped up three, four years ago. remember when they first started making these investments, mike, and they said we're expecting to sell x 100,000 or maybe a million vehicles? they're all bringing back those estimates now and that's separate from what tesla is dealing with. and tesla is really much more of a china story in terms of what's happening with demand for their vehicles. t. >> yeah. all right. we will see what they have to say about all that. thank you, phil. steve, alphabet. going in a position of strength

it seems and maybe high expectations. >> let me give you three things to watch here on this report. google cloud revenue and sales we've been showing healthy profits in that division for a while now but we know that division failed to buy cybersecurity wiz for $23 billion. listen for comments on how google is meeting that demand. the question is when does that investment pay off. smaller streamers like peacock and others experiment with their ad supported plans. youtube is the leader. >> steve, that's a great point. youtube is obviously so well positioned in this area. and yet it's tough sometimes to get a fix on how much the

valuation overall of alphabet reflects. >> that's right. we're looking at i think estimates of just under 9 billion in ad sales. of course, a good chunk goes back to the creators but that's not nothing and it is along with netflix, right up there with netflix. it's a huge chunk of that market. >> it is. we'll see what we get there, steve. appreciate it. as we head into all those earnings, it seems the big cap indexes are fighting to a near stalemate. the s&p 500 has sagged a little bit. down about .2%. nasdaq just about flat as semis give up some of yesterday's bounce. russell 2000 had a very furious rally intraday. up almost 1.5% now up just 1%. overall market breath, solid today, but mostly about 50-50 on the volume front. we still have this rotation toward financials and small caps. very much intact as the bond market continues to also hold

with the ten-year treasury yield hanging below 4.25%. tesla, alphabet on the way. that's going to do it for "closing bell." now to overtime. >> q32 bio doing the honors at the nasdaq. stocks trading in a tight range. small caps broadly outperforming. up more than 1% ahead of a major hour of earnings on the way. other averages giving up the gains. that's the scorecard on wall street but the action is just getting started. welcome to closing bell overtime. i'm morgan brennan with jon fortt. >> one of the most consequential days gets underway with reports from tesla, alphabet, mattel, seagate and more. we've got an