this bull market. a lot of them overlap with the silicon valley elet. >> elite. >> thank you. check back in. how do we watch on saturday? >> curious what commentary comes out of this. especially in the trump -- >> thanks for being here. >> see you tomorrow. thanks for watching "power lunch." >> "closing bell" starts right now. and welcome to "closing bell." i'm mike santoli in for scott wapner. this make or break hour begins whip the hardest hit month of the market and a spin of rotation trade into small caps and financials. a short morning flushed lower then deep in the correction of big tech seemed to exhaust selling for the moment. action remains unsettled with the s&p 500 back to a flat line after 1% gain. and 60 minutes in regulation, look at the s&p 500. up to a six-week low touched just after the close this morning and up by 60 points now

back to the flat line as we said. nasdaq composite struggling to find footing as well. just slid into the red again. semiconductor index got nearly to a 20% total decline from its record high before an early morning bounce pup see, still give or take around that flat line. small cap russell 2000, though, taking back most of wednesday's 2% drop. within about 2% of last week's high. continues to outperform. again, twitchy along with the rest of the market. volatility index surged to a three-month high this morning above 19. fever broke. came back. here we are rebuilding it again as the indexes have back slid. takes us to our "talk of the tape." is this a bounce to be believed? just a fleeting relief in a still stressed tape? we'll discuss all of that with our panel of experts in just a moment. first, a big announcement from openai that has alphabet shares falling. we have details. >> openai getting into the

search business. like you said, sent alphabet shares lower. last i looked down about 2.5%. what openai announced. search gpt. a search engine powered by owe a.i.'s a.i. models. right now calling it a prototype. can't use it necessarily. not launching publicly but you can go to the openai website and sign up for a wait when it is ready. partnering with publishers and other web creators to give proper cred knitit in their sea. another hot a.i. start-ups backed by big names like jeff bezos. reaction to alphabet shares in context down 2%. microsoft bing chat failed to gain share from google when it announced its big bing update, or a.i. update, rather, last year. it's really tooer to tell how much of a threat this is but clearly saw this a couple months

ago, mike when there was rumors that the search product was coming out that sent alphabet shares lower. now seeing it impact here. mike? >> of course, in a weekprehensie overall google story. you mentioned the bing update. how does this sit alongside what microsoft wants do? a competitor? how do we think about this? >> an interesting relationship between the two companies, mike. seen chatgpt put out its own enterprise versions that directly compete with microsoft's copilot. just yesterday microsoft announced new update to bing that has even more art furl sy -- artificial answers in it. similar to what we see from openai. by the way, interesting commentary from google's ceo during their earnings call a couple days ago talking about its artificial intelligence search product called a.i.

overviews. not a lot of data around that. just talking about increased engagement with young folks and maybe some increased ad engagements. it's unclear if that's driving search growth at google right now. this is such an unproven market, this specifically a.i. search and what that can do better or differently, but it looks like openai is at least going to give it a shot to see how people react to it. >> for sure. uncertain is right. the market doesn't quite know exactly how to price it, selling first here. steve, thank you very much. here with mere at post nine is liz young thomas, sofi's head of strategy. and joe terranova and jpmorgan asset agent, a c nbc contributor, joe, of course. start with you because of the alphabet connection. well timed where the index has started their afternoon down, when google sort of lost the bid there. how would you be thinking about it? also in light of everything else we've heard from this week.

>> they spoiled the afternoon party that potentially we felt like woe have. a lot of chatter being traded during the early afternoon about maybe we've exhausted the selling. it was perfect. you know, the s&p fell from the intraday high july 16th to the intraday low this morning. 4.9%. 9.5% for the nasdaq. everything felt right and looked like we were setting up for, okay. let's hear what amazon what meta and microsoft have to say next week. then the news from alphabet. i think, mike, it speaks towards the mag seven are priced for perfection and any misstep or stumble greeted with selling pressure. immediately what comes to mind for me with alphabet is, okay. s $13 billion? froebel need to spend a little more than $13 billion to compact a lot of what's going on now obviously with search gbt. >> liz, the microsoft and amazon

earnings, that's out into next week. seems an eternity in a sense because the market is very in the moment. also, we had the pce report tomorrow. obviously the fed meets next week. got gbt today. on the one hand you can look what's going on the last couple of weeks say a fully valued market. seasonal weakness. maybe overbelief in the soft landing story. it's an obvious time to pull back. but then the question is now, july cut. is the economy weakening even more? always a little growth scare that gets thrown in. how are you viewing it? >> so first of all, i'm not in the camp of a july cut. i don't think that powell wants to surprise markets that way. he doesn't like unnecessary drama and i think it would cause unnecessary drama at this juncture making markets believe some else was wrong we can't know about yet. i still think september is the first time they cut, but i think we'll hear more dovish language from them at the july meeting at jackson hole that will get us to a solid place what our expectations are for september. i also think that commentary

over a 50 basis point cut in september will continue heating up. that still a contrarian view but i think continues to heat up. look what's happened in the market. so i was on "closing bell" on july 9th and mentioned that forward pe ratios on s&p in the 89% percentile. still there, still high. not at bov 90 but still high. equal weighted zp sj and weighted cap, one-year spread 17% then. nair eed to 11% but still in the 95th percentile. that means the rotation is on slowly but will it last? seen the story mr. a before. we are approaching this time a cutting cycle. not a huge expansion signal for the economy yield cut and we'll see rotation happened in the

financials into small caps. it can last a little bit longer, but as it conks out i think we'll see rotation more into dividend paying stocks, utilities, staples. energy will catch a bit again and then health care. >> kind of -- this has been a bit of a staticy message from the market in a sense, because you had this phoenix act from small caps and financials in the last couple weeks. i keep pointing this out. usually you see that kind of a rip when the economy is already weak and you're coming out of. early cycle action in way. new bull market-type action. >> yep. >> on the other hand small caps underperformed vastly in a strongly growing economy up to now. in other words, there's a lot of mixed signals about how this market is behaving relative to the underline economic cycle. >> small caps haven't been able to get off the mat and make new highs for i think the sixth attempt at doing that. maybe they do it this time. i think part of what's happening here is, because we haven't gotten to the point wreyet in t

a.i. section. priced for profits to come in from a.i. today. that's just not going to happen yet. we don't have the cases and don't know how margins will expand and now the rubber is hitting the road. investors want the proof. where is the money going to come from? people don't want to take money out of equities right now. find somewhere else to put it. what's more attractively valleys, more growth potential. what does well when rates small fall, the answer is small caps. seen it go there. it can come out quickly if people get nervous. key to the nervousness nness w or not the mayber market stays steady. >> and rebalancing of this market, a believer. it can continue a bit? >> i think so. all comes down to the interest rate. feeding into that interest rate view is making sure that this macro story that's been emerging over the last few weeks is actually durable. actually the start of something

bil bigger. s gdp, modest uptick in unemployment, modest decrease in wage pressure. coming in better than expected from a couple weeks ago feeding into a new rate view people are all of a sudden talking about july cut. i agree. i don't think that's going to happen. right? that's where i get a little worried about that small cap trade in particular. we talk about earnings being priced for perfection in the mag seven. i think small caps are looking for 75 basis points of cuts this year and if that doesn't happen i do think you start to see a bit of an unwinding. for the value side of things particularly on the larger portion of the market capitalization spectrum, where i think things are more durable. big, nice macro tailwinds. easing wage pressure. have cooling inflation. you have falling interest rates. you have no recession. but also you have really interesting ed ooh --

idiosyncratic helping laggards in 2023 particularly fourth quarter. mag seven has to be worried not just about those lofty earnings expectations but other parts of the market actually being able to compete. that i think is where we are. at least now in this cycle. that helps support this broadening out. >> i was just looking earlier. nasdaq 100 forward pe down to below 26. like 25.5. it had been at 28 in the last year as a high. this is about where it bottomed in the april pullback in terms of valuation. i think you'll hear people talk about the broadening ou ing out earnings growth. this is the quarter that's supposed to kick in. right? maybe that's part of the noisiness of the response to earnings? right, joe? >> i think it's more. i agree with you and i think we're probably not placing enough emphasis on where positioning was coming into the third quarter.

>> yeah. >> and how much of this is just re-working that positioning. we all know, sara did a great job talking on networks, sara eisen what is going on with the japanese yen. has an effect. all the sovereign wealth funds. duration of 2024. it's these mag seven names. positioning has a lot to do with what's going on here. i think that's important for viewers to understand, because that's something that's momentary. not something that is enduring through the remainder of 2024. it's clear up the positioning. let's get it back to comfortable levels once again. see where the earnings are. take another look. get the fed whether 25 or ooh basis points and i think at jackson hole 50 basis points, but ultimately. >> after jackson hole? >> i think going to jackson hole, message that to the market. i think it's what we're witnessing here, it's a reset.

resets begin with working off extreme positioning and extreme sentiment. >> true. as long as nothing breaks along the way. right? in terms of unwind. >> the markets okay, though. >> no doubt about it. not suggesting that. in practice, the entire market has gone from crowded trades to orphaned trades essentially. it's almost like we're writing a macro narrative on top of that to a fair degree even though there's real reasons for it. chipotle is a great example. from 68 to 51 in a straight line. business did nothing wrong. right? along the way. it didn't hold its pop from today. that's just one sort of tactical element of it. jack, the other piece of the rate cut story and how the soft landing scenario is supposed to play out is, the bull case was, the fed's going to get to a point where it can do optional insurance trims of interest rates so that it just normalizes policy and it acknowledges it's

decline in inflation, and not goes into an aggressive easing cycle in response to a weakening economy. it's almost like cuts late around fewer of them is the bull case. does that make sense? >> absolutely. if we are looking at 75 basis points in cuts it's because something broke. this economy is in very good shape. 4.1% on unemployment is not something -- used to be afraid of. inflation under control not at risk turning into deflation anytime soon. this stuff tells me that gradual easing, higher for longer narrative is very much what is supporting the long-term goals. >> liz, you know, it's hard to escape talking about, oh, the seasonal effects. the preelection kind of moved to the sidelines to some degree in term of risk appetites. does any filter into your view? bull market, hasn't changed the overall trend, if you care about

that how should you change the pace of what you invest in over the next few months? >> the typical pattern a pullback in spring in an election year. that one happened about a month later than it should have this time. we have not followed the pattern as it would go. this has been a much more -- high performance. >> no net upside first half of the year. >> and had a lot of upside. right? what would happen then typically in the fall we see volatility any september and october. election occurs. we find out the results right way. who knows if that will happen, and then a relief afterwards we know what we can expect the next term. so an and so forth. we probably will see some of that. i think we see some volatility any fall leading up to it. polling in the market doesn't necessarily work. you might get the election outcome right but the market reaction completely wrong. i tell and do tell people you don't want to position your portfolio for a certain outcull. you never know what the market will do with that. i wouldn't do too much right now

ahead of it. i think the main thing i would be positioning for in the fall is the fact that i think we do see a yield curve that comes out of inversion which is important to watch. typically sector that do well are paying dividends. you have to pay attention that. i think we'll see volatility as the fed talks at jackson hole. i think we'll see volatility as the fed talks end of july and i think see volatility in the next two cpi prints. if they continue to come in as cool as they have, the market starts to get jittery. the last cpi print the market got jittery on the cooler data. a new reaction than we'd seen. the other thing really important to watch is the next unemployment report if it goes up to 4.2 percent unemployment that triggers making people jittery as well. a good chance we go from right now pricing in two to three cuts by end of the year, we go pricing in three to four cuts by end of the year. that could happen before the end of summer. >> yeah. the market always is going to try to push.

right? in terms of once we think we see it clearly we're going to see how far we can get with pricing in change of policy. jack, talking about the pce inflation number tomorrow. more sensitive to signs of slowdown than to inflation issues. almost all of the narrative from coming out of companies as they report, where they're having a little bit of friction in their businesses, it's actually inflation friendly stuff. right? the airlines talking about too much capacity. it's restaurants and french fry companies saying that you know, consumers are balking at all of this stuff. from a macro perspective, should be comforting in a sense, if inflation is the main enemy. what does it mean whether earnings estimates can hold wrup t up where they are? >> the trend there is very much up to the right. companies are able to defend prices. able to pass on potential higher costs and do somehow end up

materializing, but i guess this might come back to that small cap story talked about earlier. inflation is easing, input price come lower all of a sudden you make more money. i think it is a good story generally. >> yeah. all right. see if it keeps playing out. thank you for joining us. see you in the "market zone." thanks. and pippa steevevens. >> dropping on pace worst company that 15 years after the automaker missed earnings estimates. revenue beat. ford said profitability impacted by increases in its warranty reserves. not an exact amount but $800 million more than the last quarter. and raising full year subscription revenue forecast growing demand for work flow automation and the company's work in genai drove growth.

shares up 15%. mike? >> pippa, thank you. we are just getting started. up next, airline stocks soaring for the day, anyway. american and southwest both popping in today's session. hear from a top analyst with where he sees the sector heading from here. and later, mega caps. how do navigate to tech trade after yesterday's sell-off? discuss how to best position your portfolio. we're live at the new york stock exchange watching "closing bell" on cnbc.

southwest and american airlines getting a boost today after reporting q2 earnings beats before the bell. both airlines forecasting a loss in revenue third quarter with rising concerns about oversupplied market despite high travel demand. here's southwest ceo bob jordan and american ceo robert eisen who both joined cnbc this

morning. >> not happy with our results in q2 either. but there are a lot of impacts. there are you know, at this point in time there is excess capacity, more than demand, and we're working to flush that out. over capacity will come down to about 2% here third quarter and actually decline 4% decline in fourth quarter. actually seats down 8% year over year. >> we're not pleased with the results. i said back in may a couple of things. one, there's a supply and demand imbalance. leading to pricing weakness and we're addressing that. we've pulled down our capacity. the plant capacity growth in the back half of the year, growing about 8%. now about 3.5% back half. the other issue nin place sales and distribution. it's not working from 2023. >> joining me to discuss, tom fitzgerald, and tom great to have you on. obviously a sobering message there from the ceos of these companies. we get a bounce in the airline

index of 3.5% or so. that's after, i don't know 3030% decline. what's your message when these stocks might be more accessible? >> thanks for having me. today is short covering and we continue to push companies that, with diverse revenue streams with clear paths to margin expansion from here, and with either strong balance sheets or balance sheets that are definitely set to improve. our top picks are delta, united and sky west. we need to see clear evidence a domestic market, supply and demand rebalanced, come back into the equilibrium and see clear information from american and southwest and some other p peers in the domestic market. we expect noise in coming quarters as multiple carriers try to manage multiple initiatives whether network

changes, sdrdistribution change. leadership changes. in the best of times trying to overflow on the go is hard. niche opportunities like sky west and a sun country. >> gotcha. in terms of say comments we just heard from southwest, and you talk about companies that have a lot on their plate in terms of trying to restructure and now it has changed in terms of assigned seating with southwest. does any build towards being better positioned, in your mind? >> i think it's to be determined. obviously this is -- these were the low-hanging fruit initiatives. very well telegraphed over the last six or so mosnths, but som, lose fees from early borden ancillaries not all profit. there's profit fees in some. more incremental and we don't see it generating eps boost they

need to generate roik above cut to capital. >> lowered price target to seven. obviously you feel as if the market still has to deal with getting through this rough patch here, too? >> yeah. that's correct. we were on the low end of street estimates going into the print today, and their guidance was even below our numbers. so i think -- with some of these situations it's safer to be on the more bearish side and end up pleasantly surprised. they do as they go into 2025, will face easier comps on the rasham side. the market will take longer to work out than people think and a lot of air pockets. we're more cautious on that one. >> is there going to be a moment, or are we at the moment when we'll have to worry about the absolute level of demand? is it here yet or are we just essentially seeing a little digestion issues?

>> that's one of those $64,000 confess. year-to-date up 6.5% overall. some investors wondered how much is really core genuine demand and how much is just being stimulated by some of these fare sales we're seeing in the domestic market. we overall believe that, we're not expecting some reset back to 2021 levels, spending on goods and think the secular trend on goods and services is still intact but lower end of the consumer there's definitely maybe not a buyer strike but just less discretionary income to go around. could see weakness there and are a late cycle seems. definitely need to be more cautious. >> you mentioned you prefer delta as one of those names. obviously the more global exposure, you know, the credit card business, all the rest we know there are advantages. i get you don't really think the recent issues they've had after the, you know, the whole data glitch are going to be persistent?

>> we don't think it's going to be persistent. there are operations today and yesterday looked very strong. seemed to have gotten back on the right side of things. we expect naught come out with a detail once it's definitively, things are back on track, but longer term that's still a great company, a great management team. executed the strategy best of anyone in the industry the last 10, 15 years. maybe there's a little near-term weakness to 3q numbers. long term we're big bulls. >> appreciate you running through that. >> thanks for having me. up next, investors anxiously awaiting more earnings and a key fed decision on the horizon. what to expect and what about your money after this break? don't forget, catch us on the go following the "closing bell" podcast on your favorite podcast app. s&p rising back to about a half percent gain for the day. we'll be right back. e done it without you. honestly, i don't do a whole lot here.

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welcome back. stocks attempting an intraday comeback as the s&p and nasdaq try to rebound from worst days from 2022. investors bracing for more mega cap and key fed week ahead. joining me head of and ceo of market strategy for mechellemer

bank of america. should we be concerned of the outlook or not? >> the mag seven companies, economy in good shape. earnings better than expected. this pullback in technology is very healthy. better breadth. i think we're set up for a good fall into the rest of the year. to me the pullback, violent as it has been, it's healthy overall for the markets. >> what would you do with it, i suppose? s strategical strategically, tactically, what surfaced? >> we got a lot of people sitting on cash. want to put them in equities, fixed income. energy, defense. get people to come out of the money markets and look at equity sort of fixed income. kind of what the big push here what we're doing here at merrill. >> interesting. obviously dealing with a very

wealthy clientele there, your part of the business, and you feel they're just frozen mostly in short-term cash at this point? >> comfortable. why not with 5%-plus with all the volatility, the election. the move with the fed. but we're starting to see folks come back in to equities, and wanting to move into more cyclical sifde. energy, cyclicals. when you look how much money is sitting on the sidelines a lot of fire for more upside for equities into 2025. think of that as well. >>seems like, i like the kind of rubric for the themes in terms of hard power, hard-hats, meaning infrastructure. i wonder as you offer that as a view, if people say, aww, don't we already know those trends are under way and hasn't it already been exploited? what's your answer to that? >> mike, take military spending.

right? hard power. right now global military spending, around $2.5 trillion. it's around 2.3% of global gdp. at an all-time low. we're underinvested in the military, given all the points we have. hard assets, commodities. talk about restocking munitions. talk about building out the infrastructure. that requires minerals. then hard-hats, infrastructure. the grid, a.i., bridges. this is the long-term play and should be part of anyone's core portfolios. these leaders within these different asset classes. >> you seem generally unworried about the immediate future in terms of u.s. economy, continuing to expand. although there's been wobbles, perceived softening in various areas. how important is it for whether the fed to ease or for that story to change a little bit? >> i mean, we're watching that

very carefully. second half of last year the economy grew by 4%. first half of this year grew by 2%. it's slowing down. the consumer data is hanging in there. an unemployment rate of 4.1%. we're going to, a very strong capex cycle. global growth pick up as well. better exports. forward income. watching the economy carefully, mike. no doubt about it. when the consumer is 70% of gdp roughly speaking, they have a job, they have income, and they spend it. it's a very simple formula, so to speak. as long as the consumer has the income, has the job security, this economy's going to continue to plod along. remember, mike, this is a $28 trillion economy. so 2.8% real growth doesn't sound like much but it's on a massive base. which means more earnings upside as we go deeper into this year and next year. >> yeah. obviously, you get two-plus inflation.

5% nominal growth i ? >> we're watching it carefully, because i hate to be so u.s. centric because there's a big rollout there. we're looking at, say, asia, china, luxury brand goods, europe. companies in germany. honestly, mike, talk about the a.i. investment expendexpenditu what's happening we're going to pull even further ahead of the rest of the world as we go into the second half of this decade. from our point and the cio we're still u.s. centric but it's jujufr -justified given how dynamic we are, leading the a.i. rerch lu revolution we'll continue to lead. the foundation by which we view portfolio construction. >> seems like those are being durable drivers for a while to

come. i guess the question i might have, if you're a cio talking about long-term money is, how the stock market currently valued to deliver forward returns? i mean, the common math would say, hey, returns must be lower, because we're 20-plus times earnings, but i'm not sure if that's the way you're assuming it, pencilling in for that? >> we take that into account, mike, but also looking at -- something beyond technology. fully valued here. look, cyclical, energy, health care. there's opportunities within these various sectors where you don't have to -- you're not paying up where we are already with the valuation. kind of like -- small cap story beat ton death. we've been early there. working now. whether it's small cap, mid cap, u.s., across all growth value, you want to, our own part and parcel of all of these different asset classes. >> all right joe. great to catch up. appreciate the time today. >> you bet. thanks, mike. >> all right.

take care. up next, we are tracking the biggest movers as we head into the close. pippa stevens is standing by. >> hey, mike. one health care stock in need of medical attention. we've got all the details coming up next.

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bell. back to pippa for key stocks to watch. jumpy day. >> yeah. shares of lineage, largest temperature-controlled warehouse in the world priced 57 million stairs at $78 apiece trading now at $81.38. lineage is a four-time cnbc disrupter company and 94th on the list to go public. meantime shares of edwards lifesciences plunges 70% after slashing guide, for aortic valve replacements. do deutsche bank calling it painful and questioning the companies long-term growth rates. >> pippa, thank you. talk to you in a minute are. still ahead, a double dose of pharma movers, ad shares popping and astrazeneca popping. that's coming up. "closing bell" will be right back.

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earnings season in full swing but the busiest week of earnings season is looming if you can believe it with a third of the s&p 500 companies reporting next week pap new piece highlighting some companies who rallied afterwards. the names, head to cnbc.com or scan the qr code on your screen. up next, earnings set up. decker among hitting it in overtime.

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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. we are now in the "closing bell" "market zone." joe terranova back to break down crucial moments of the trading day and seema mody. honeywell, worst day in the year and pippa stevens looking ahead to decker's earnings out in "overtime" today. honeywell. what's the reaction about here? >> mike, honeywell investors buy supplies with guidance cut for 2024. industrial giant trimmed also free cash flow guide by $100

million due part to its industrial automation business where inventory, weaker volume remains an issue. if aerospace technology's business outperforms up 16% second quarter. that was overshad ode by the cut. and other giants spun off certain parts of their business to unlock value this year, honeywell actually has done the opposite. hasn't joined in on the spinoff trend. in fact, growing by acquisitions. laters, a carrier firm for $5 billion. seeing shares of honeeywell underperform not just today but underperformed peers so far this year. speaking of peers. 3m set to wart tomorrow. shares quietly have risen 13% this year. honeywell is negative so far in 2024. >> absolutely. keep an eye out for those numbers tomorrow. and areas you would think kind

of advantaged right now, not really working? >> weakest segment, where the surprise is. stock down 12%. used to be a favorite industrial name of mine. owned it for so many years. to see them miss like this. margins down 75 base points in three segments is not something generally you see from honeywell. all the m & a done in the last several years needs to begin to be credtive to the bottom line. >> what about in general -- industrials one of those groups first part of the year able to say, they're outperforming along with semis. that's usually pretty good insulation for a rally. gave some back and now a little more mixed. >> it's a combination of several things. you know, the weakening economy. you've had some stumbles in the airlines and then the favorite industrial name i always talk about. uber. and uber, that growth story is pulling back as we see the dip names sold off. >> you know always think of it.

that's what it is actually. in the industrials. anjelica, talk about the pharma moves? >> astrazeneca raising outlook for the year. shares down today. some of astra's older drugs doing well in the quarter and newer drugs coming up a bit short. >> the new products very much in line what we expected and actually overall what the market, consensus expected. so i really think that over the next few weeks, months these questions will disappear and people will see we are on track to deliver long-time goals. >> the other end abbvie. raising full year forecast thanks to immunology drugs minutes to replace sales of the main drug humara. investors like what we're seeing from those drugs. mike? >> all right.

thanks. health care actually showing its defensive properties last week or so. >> absolutely. in the rotation maybe not spending enough time emphasizing that now is the time to look at health care. it's working off a lot of the covid comps and so we're back to a pre-2020 type of environment and to your point. yes. it's been defensive in its nature. it's been the one sector over the last five days that's been the strongest. it's positive over the last five days. only sector doing that is utilities. mike, in addition to that when you look to rotate into health care the names we kind of forgotten about. spoke about abbvie amgen, a name i purchased recently. cut rates generally good for biotechs, consider the xvi, merck, mckes and pfizer above $30. josh brown is good job talking about that on "halftime." >> everything outside of lilly actually better bounce in the

last week or so. what about this edwards plif sci lifesciences today? taken apart. anything to add? >> to a certain extent, i keep emphasizing positioning. that was one of the favorite names in the health care sector. regeneron and edwards lifesciences. again, working off positions here. i don't know if the business is damaged in the sense where you look at it and say, okay. we're going put this in the penalty box. you have to understand there's probably more selling pressure to come. >> speaking of stocks that have been working off maybe credit positioning. deckers. hear from them, pippa, after the close yeah. deckers brands, ugg and hoka performing pretty well in recent quarters opinion the stock pulled back in the last month on worries of a slowdown in direct-to-consumer sales. although ubs said in a recent report their check suggests the hoka brand specifically

maintains robust revenue momentum during the quarter. this is decker's q1 report. investors will also look for an update on its full year's guidance. cowen said they don't see the guide moving materially higher baseds on the last two q1 reports but shares continued to compound higher and pointed to exceptionally high levels of full-priced selling. earlier this month the company announced a fix for one stock split and the stock is ticking higher ahead of the report, mike. >> all right. thank you, pippa. keep an eye on that. pippa mentions the stock split. interesting how postsplit a lot of stocks enacted. chipotle one of them. one of those trading along with deckers. a consumer category killers. >> taken down i thinks, the entire consumer discretionary space. what we witnessed in chipotle. so far deckers, i this, benefitted from the decline we witnessed in nike. the decline witnessed in

lululemon. pippa mentioned hoka. 60% of the sales. running shoes are very popular right now. lulu and mikey back to levels we haven't seen since march of 2020. it's to the benefit of deckers and skechers. implies a move tonight, rather large move. decker sitting right at the 200 moving day average and skew is towards calls. i think deckers and skechers both of them still maintain a little bit of favorability given what we see in the overall climate with nike and lulu. >> yeah. these kind of market share trends tend to stick for a while. see if that is true. market-wide, joe, back right around the flat line with s&p 500. sometimes you did get this erratic-type action after a bit of a volatility surge. what's important, do you think to look at into the close and into tomorrow? >> this is disappointing. just the way the tape is trading. we're going out on the lower end of the range. you visited it early this morning. you had a really aggressive

rally late in the day. you got the news surrounding alphabet. selling pressure came right back in for the nasdaq stock. so i think the -- the morose tone if you would, lingers as we move into friday. and friday's, mike you know where we are. >> pull back in s&p through the 50-day moving average. you mentioned earlier, hit just about a 5% pullback. sometimes once that happens, you wait for things to look outright oversold as opposed to just having a dip. >> keep in mind also a summer market. algoes in control. strategies driving the tape and volatilitily remain elevated. i think investors have to get comfortable with that. volatility regime of earlier in the year, wash that away. >> seasonally, upside bias to volatility. the vix topped above 19. still above 18 here going into a summer friday. so we'll see how much that's going to stick around. joe, thanks so much.

russell 2000, outperformed. 1 1.3%. not picking what it lost yesterday. and upside, versus down side movers today. new york stock exchange. we will see how it comes out. down half of a percent. nasdaq off 1%. that does it for "closing bell." now here's "overtime." >> ringing the closing bell on the new york stock exchange. blackrock doing honors at the nasdaq. big swings following wednesday's tech-driven plunge. s&p s&p asdaq, that's the session. and reits and tech and defense this hour. earnings results from norfolk southern, deckers, juniper