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all other sectors within the s&p are green. there's reflected there in the major averages exactly what's happening at this moment. about half of the gains out of the dow and certainly the s&p and nasdaq as well. stand-outs today. industrials, discretionary, energy and the russell posting a strong session as well today taking us to "talk of the tape." strategies. what's your best? chief investment officer at new edge wealth you see it here with me at post nine. >> good to see you. >> nvidia. we begin our conversation. >> we see in august, light trading. a time we typically see higher volatility. clearly hitting formidable resistance when it comes to the s&p 500 at the july high. getting over that is a really important step for this market.

so until we do, we just expect to see more chop and churn. >> 5600 the number you're talking about. 5 5667 where you get a new high. tech teetering a bit. hasn't it? >> yeah. >> do you feel that's where we are? still yet to resolve the future of that trade? at least the immediate future? >> tech has certainly been losing steam. if we look at the balance off of the august lows, it hasn't been nearly as robust at the rest of the market. still is well below its july high. which means that it's making a lower high. we've seen it trade now below its 50-day moving average i think today. also you see some of that relative performance starting to deteriorate, which just suggests some of the ultra dominance we've seen in tech really over the last 18 months is starting to show signs of fading, or at least a little bit of losing energy, and meaning that the rest of the market has to take it up in order for this market to continue to move higher. >> kind of has been doing that.

isn't this good? right? people argue, well, the market needs to broad. no. broad. back towards mega cap tech the only thing working. only thing to believe in. broadening, then takes a back seat and they don't like that either. >> we say tech has to at least participate on average with the market. it can't be down and it can't be lagging significantly. after all it is 30% of the s&p 500. so that would be a big drag on overall performance. we think that the reason you've seen this broadening is because this expectation that the mag seven will see lower earnings growth in 2025 than it did in '24. whereas the market now expects the rest of the market, the 493, to see a big acceleration next year. the question is, can the 493 deliver? we think that's remains a very much open question. >> because you need to see what earnings do. >> exactly. >> the tell. are you confident or not? >> we think 2025 estimates are

too high. it doesn't necessarily mean that the market can completely lose steam. i mean that we've hit a high in the market. we think we will eventually start to see those estimates move lower as we get closer to 2025, and we think the fact that there is such a high bar for those 493s, something that makes it harder to jump over. remember, the beginning of 2024 the market expected a broadens as well, but it didn't get it, because earnings disappointed and things like energy and materials and tech and health care and industrials, on down the list. tech the only place surprising to the upside. hence tech's leadership. >> are you bothered by what some characterize to be a more defensive nature of the recent price action in the market? utilities and some of the other more defensive traditional areas of the market leading's is that a bad thing? >> classic intermarket analysis says, yes. with them leading a sign of risk aversion and people having more growth fears.

if you see that performance continue it is a sign tthere is under lying growth we shouldn't ignore. pay attention to ipos and high beta stocks underperforming's showing weakness. suggesting there is brewing growth fear. >> put a lot of these concerns on one side of the scale. tech, maybe. teetering a little bit. more defensive. nature of the market, but then the other side of the scale i put coming rate cuts. do we even ourselves out? do rate cuts have more weight to the near-term direction of the market? or no? >> i think an important point. tech classically underperformed after the first cut. that you have seen a leadership rotation. it's been in favor of defensives over cyclicals. that can resolve itself, if the growth fears are allayed. meaning, you don't see growth

tea tear tea-of-deteriorate and fed cutting because it can, not because it should, the market can rally from here. suggesting a near-term chop. not necessarily something that's fatal for the broader uptrend. >> news i'm getting on dell. parton me a moment. steve kovach has details. >> scott, yeah. according to reuters, dell is talking to sell its krib security firm security works. stock halted up 17%. this report hit and it skyrocketed. paused it due to volatility. the report says talking to piper sandler and morgan stanly to do this transactions. after the bell possible we learn more about the bell, scott. shares halted. it is moving now. up 23%. >> exactly what i was thinking. interesting this news is coming out now from reuters ahead of the expected earnings in overtime. see what happens.

thanks. steve kovach. one more question related to growth since we're talkingabout stocks like dell for a moment. you mentioned jeff degraf looks at charts and makes call what he sees. growth value. growth versus value. watching that closely? >> yeah. >> broken down lately. >> it has. saw it move parabolicly higher in a straight line in june. then corrected in a straight d down in july. below 50-day moving average suggesting possibly going into 2025 you could see some of these bigger leadership rotations. the question is, does the broader market like that? the lesson from '22, value led but we were in an overall bear market. could be a question of, be careful what you wish for with growth versus value. >> bring in christina hooper of invesco and america investments. welcome to the program first time. christina, you first. do you agree or disagree with

these views? >> agree with what a lot of she's saying. the other 493 will be able to deliver enough to satisfy markets. so i agree. it's a high bar. they probably aren't going to get all the way there, but i think they'll get enough of the way there to satisfy markets, and to at least in some way replace the high, high growth that we're seeing from some of the mag seven. that's adequate, in my opinion. i think we'll see a rotation and i think that's okay to see rotation. what i've done is look back very carefully at 94, instructive. the last time we saw a tightening cycle that didn't end's in recession. we saw once the fed started cutting, that's when value outperformed growth. it wasn't a dramatic out performance. both performed very well but it outperformed. i argue we have a chance for

cyclicals to perform better this time because of a more positive environment. the fed only cut rates 75 basis poins points during that easing. this time likely 200 basis points in the next year and have a pretty resilient economy. i argue the consumer is more resilient today than then. there are risks. i worry about those risks. my base case is a positive one. >> i find interesting, mike, i feel you generally agree with christina on the parts of the market you want to lean into. small caps are attractive yet you view the economy slowing reasonably over the next six months. so how can both be true? how can we have a slowing economy while at the same time i want to lean into small caps? >> sure pap great question. thanks for having me, scott. good to be here. so, yes. we're expecting slowing economy over the next six months, higher rates take their time getting through the economy. but woe are expecting a soft landing. in terms of why small caps?

you have -- an asset class very cheap. it's totally underowned versus in the institutional marketplace. you mentioned earlier, cameron mentioned accelerating earnings. nvidia is a great example. amazing quarter, 100% growth but growth slowing, and our research shows investors generally want, what stock prices, accelerating earnings. you're getting that in small caps as we look out into next year. earnings expected higher in small than large, plus you mentioned the yield curve steepening. a great catalyst for small cap historically. helps the spread-type businesses like banks. helps long duration assets like biotech and a big question we get. why isn't this just a one or two-quarter phenomenon? reshoring, a real change in the global economy driving job growth here in the u.s. small caps 80% revenue from the u.s. all the ingredients especially

on the valuation side, also on the fundamental side to make a case for small caps being a potential driver of alpha for our clients' portfolios. >> the question, whether those earnings estimates are too optimistic. we're learn that in the coming quarters. bear with me. news alert on nvidia. seema mody joins us. >> succession around openai, continuing with bloomberg reporting nvidia is in discussions to join this fund-raising round. interesting, because openai's ceo and huang know each other well. owe openai using nvidia's chip and separately openai and broadcom working on a chip that would rival nvidia. nvidia has declined to comment on this story. more as it comes, scott. >> yeah. we keep talking about openai's ever-growing valuation as well.

to which they're raising this money on. seema, thank you. seema mody. mike, back to you. as seema brings this news, we have news regarding apple today and openai we'll get into in a moment as well. just underscores why there's so much activity in these names, and didn't appear it's willing to dissipate anytime soon. do you feel like you have a tough time making the case that it's time to rotate? >> yeah. a little bit. you know, large cap, mega cap tech sucked the air out of the room, the flows out of the market for small and mid caps. today's a great example of nvidia stock price. a.i. is real. it's coming. no question about it, ultimately growth will start to slow and th they'll be a lot of other winners for a.i. in the small cap space just like we xausaw w the initial internet boom. we believe small caps are great,

a great area to buy the early disrupters and innovators. on the other point with dell looking to sell their business. m & a has been increasincreasin. historically when m & a picks, small cap driver for out performance. kansas city, this week as well. m & a picks up, rates come down, m & a increasing and could help small cap performance as well. >> was that bank acquired out of a business of strength or weakness is the first thing that i think of. certainly because of what the current environment has been. >> no. so it wasn't a huge premium but it was a position of strength. it was another sort of midwest regional bank and we are, overrate regional banks in our small cap strategy and banks have been a four-letter word. i think there's really good value and the bad outcome is largely priced into these companies that will benefit as

the yield curve steepens. you're going to see likely an accelerating earnings growth from banks as they come out of this environment where the yield curve was inverted well over a year. >> cam, you want to take that on? >> technically what we've seen following the first cut financials have done better. and certainly seen that in anticipation of this move. on the small caps i think your point about, can you deliver on the lofty expectations? that's the most important one. remember that small cap earnings estimates have been cut for 2024 by about 20% over the last year. so that was the stance this time last year small caps would lead because of earnings being accelerating. it didn't materialize. now, maybe with rate cuts and a resilient economy, a lot going right, you can see those earnings deliver, but i do think they don't necessarily deserve the benefit of the doubt which is why we're selective. >> and being given benefit of the doubt by our two other panelists. christina, how do you respond? >> i believe small caps will

perform well in this environment. we have a recipe for an economic reacceleration probably beginning within the next six months. certainly there could be a short slowdown, but i think markets are going to discount that recovery and i think small caps will do well. we might not get the earnings that are expected now. but i think we'll get enough. we'll get enough to satisfy markets, and we're likely to see what i think is going to be a very significant rotation when we look back. >> so, mike, respond as well? to cameron's points? >> yeah. it's a great point, and, yeah. earnings expectations for next year for small caps are close to 20%. too high? probably. but i'll go back to valuations. small caps trading below their historical average. spread between large and small widest in decades. starting point is good. if the earnings don't come through you won't get hurt. how high is the wind you want to fall out of? small caps priced in a bad

downturn and really comes down to the direction of earnings, too. if earnings growth for small caps are going in the right direction and reflecting higher, that's enough to get the asset class working, i think. >> what about alternatives to equities and pd how year thinking about that as some of expecting, as yields come down, money's going to come out of money markets and other cash equivalent-type asset classes and then go into stocks? >> it is less fungible. meaning we haven't necessarily seen the selling of money markets be directly into stocks. seen it more into fixed income, and we do think that bonds do play a role in a port fofolio better than 2022. '22 horrible. rising yields and inflation. bonds couldn't be the diversifier for equities. that's a different story. leads us to the point today. as we see yields back up, that's when we want to take cash and reallocating longer duration. taking advantage of a backup in yields.

say we get, inflation or hotter growth data. an opportunity to extend duration. >> i agree. i think the sweet spots are investment grade credit. high-quality, high yields and municipal bonds. there are a lot of opportunities within the fixed income space as many moves out of cash. >> the other point, i guess, mike. hearing a lot this week about the 60/40 portfolio is back. after a rough go over a couple of years it's back because of the prospect of lower rates, and that both stocks and bonds can work well together. >> yeah. we agree with that. we see very likely positive returns for fixed income this year. one area, i agree with the panelists. one area i also think is worth a look, we believe is worth a look, is dividend paying stocks. dividend paying stocks have not performed very well getting 5%-plus in the money market. could get a 4 percent yield that can grow over time and

opportunity to grow with earnings. dividend paying caps in large, small and mid cap may represent an attract ittive opportunity at the money flows back into the market in the search of yields. >> do we, cameron, have a renaissance of the 60/40 portfolio? >> i think it's breathed new sb into it. using 2022 baseline why 60/40 is dead is not as relevant. if we have a growth scare, means a flight to safety benefiting bonds, 60/40 will be a good diversifier. so we do think that it is not dead. it still deserves a place in portfolios but we have to be selective within credit because you've seen spreads so tight. priced for perfection. >> leave it there. great conversation, everybody. appreciate it. thanks for being here christina, along with cameron and mike. have you back soon. pippa? >> scott, sayres of buy now, pay

later, tracking third best day since its 2021 ipo. the company beat on the top and bottom lines with revenue in its fiscal fourth quarter jumping 48% than the prior year with losses also narrowing. mizuho calling it a "killer quarter for a firm" okta in the red. q2 results topped estimates. the company noting a challenging macro environment. down grading stock underperform following that print saying headwinds are too big to ignore. >> just getting started. apple shares moving higher on multiple reports. upping its a.i. game. details and the analysis just after the break. live at the new york stock exchange. you're watching "closing bell" on cnbc. create a website. how? godaddy. coding... nah.

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we are back. apple moving higher on a few announcements. >> starting to think we're the only ones not investing in openai. just got the news from bloomberg nvidia is in talks to invest in that $100 billion round and report apple is joining the funding round for openai along with microsoft and thrive capital. nvidia didn't comment. neither did apple. this would be a rare move for apple. it did invest, had big investments before it invested $1 billion in a chinese company dd, a long time ago. on top of all that nikkei reporting today apple ordered 10% more iphones than it did last year. that is a huge sign it is preparing for that a.i.-driven upgrade cycle we keep hearing about. nikkei the report in line with many estimates for the iphone 16 line. on top of that, citi today maiming apple its top pick for

2025 because of those anticipated iphone 16 upgrades, but forget the iphone 16. talk about the iphone 17, scott, because analysts, the top analyst i believe every word he says. next year's iphone 1 pro max better than the lower-end models. of course, apple's most expensive and most important phone. could be capable of doing more a.i. tanks than the other lineup. driving more people to the upside and buy that more expensive model, scott. >> when do we have to wait for the 17 pro max? >> next year, but it's really interesting to see this new theme kind of emerge at apple that if you want a.i. you have to upgrade your phone. it's right now only the 15 pro. last year's phone. it will be the entire lineup of the iphone 16 and then maybe down the line they say, hey, if you want even more exclusive or capable a.i. feature get even more advanced hardware because, of course, where apple specializes in. so this is a really budding trend emerging here you should

definitely watch into next year, scott. >> read it both ways. well, 17 pro max sounds like it will be great. bullish. but doesn't that hurt the prospects for a robust upgrade cycle with the 16? >> i don't think so. think of it this way, scott. this rollout on the software side of artificial intelligence, very slow and measured. this fall it's only going to be available in the united states. only going to be available in english, and even then it's not going to be everything. all of features se aw in june including siri features not happening until 20258 or beyond. and this going to be a multiyear upgrade cycle. at least what so many on wall street think and that iphone 17 report we're getting today playing into that narrative. >> all right. to be continued i suppose. thanks for the insight and reporting. steve kovach. joining me deepwater eight

managements doug clint. good to see you. welcome back . >> good to see you. >> why don't you own apple? >> we prefer to own companies that control their own a.i. destiny. how we think about it. when you look at what apple's doing and i think this potential investment in openai spokes to it they're going to be reliant on third parties to deliver the richest a.i. experiences that will ultimately come on the iphone. yes, their technology with apple intelligence sort of the gateway for their users, but then i think they'll handle a lot of the harder tank tasks by using and gemini from google putting them at the whims paying those companies money to use their technology. >> isn't almost every hyperscaler reliant upon somebody else at this point? i don't even know we'd have the kind of conversation we're trying to have now if it wasn't for the announcement between microsoft and openai 18 months

ago? >> well i think of it in sort of tiers. right? look at google and meta. two, they've long been our two favorite names in the mega cap space. they have their own control of destinies because they have models, data, working on their own compute and obviously rely on nvidia but in a class by themselves not reliant on a third party. then you have companies like apple, like a microsoft like an amazon. gone out and looked for these kinds of partnerships. microsoft has the super deep one with openai anthropic and amazon good partners. now seeing apple jumping into the fray with openai. >> so how are you assessing nvn nvidia now? incredible numbers obviously. maybe not as incredible as they had to be. >> as crazy as it might sound this reaction to the stock was about as good as you probably could have hoped for as an

nvidia shareholder, which we are. i think you look at the setup coming in to the quarter, right? the stock was down 30-plus percent as a month ago. at its bottom. then rallied almost 30. just the movement that momentum for the bar that they need to hit to continue that momentum, i think so high it was unattainable. options coming into this earnings priced something like a 10-plus percent move obviously not moving that much on the stock. so i think it's kind of a win, but even more importantly and bigger pick which are for us longer-term oriented shareholders, shows the story about a.i. still in tech. a lot of questions coming into the quarter, could this be the quarter that nvidia misses? that the end of the a.i. story is sort of writing itself through nvidia's report? we didn't get that for sure. i think the hyperscalers will continue to spend and blackwell as we talk about. >> you're new to the nvidia ownership story. do you look at today as a buying

opportunity? you're getting a 6% sell-off of what you think is a laughable reaction to these numbers? >> we have a full position. so just mechanically wouldn't be buyers. the stock certainly looks much more attractive. got this issue, right? the concern what could happen with earning out of the way. now i think we can go full steam into what will blackwell ultimately mean, delay that was rumored now sort of priced in, and i think we're pretty happy to be owners here. >> how about the mesa cap trade in general? i feel there's a legit question where these stocks are going from here? >> we're still buyers and we're still owners of the big three we talked about. nvidia, goggle, meta. our favorites in the mega cap space. i think when we zoom out. right? so much concern about a.i. talk about rotations maybe to small cap. will we get a recession?

if you just think about a.i. specifically. that's what we focus on as tech investors. we still think we're in the earlier stages of this a.i. bull market. it will probably last i think two to four years. so with that context if that turns out to be true these are the kinds of companies you want to be owning because they'll be some of the biggest beneficiaries of it and it won't be fully priced in for some time yet. >> two of three people that we had in our opening panel make the case for a broadening and for small caps. you're not a believer? >> i'm not. you may be able to get a broadening and maybe mega caps don't go much as much. the idea rotating out of the mega caps i'm not a believer of that. i think investors will continue to look at those mega cap companies and say, look. a defensive reality to those companies. all have strong balance sheets. they don't trade at egregious multiples. rich, not egregious, and have this upside of a.i.

most companies talk about rotating into, may look cheap. few have real optionality for a.i. which if it's as big as we say it is that should make the numbers we think we're paying for on the big companies today look a lot cheaper in the future. >> doug, leave it there. appreciate your time. doug clinton joining us today. up next, lulu and ulta. both reporting in "overtime." hear from a top retail analyst with exactly what you need to know. "closing bell"'s coming right back. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out. and powering more businesses than anyone. powering possibilities.

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shares of the gap climbing after an early release of the company's strong q2 earnings report. blew lieu lemmon and ut-lta seto report tonight. give me reaction to the gap, since probably you were taken, as surprised as anybody else? >> yes, scott. always fun when you get a report eight hours before you're expecting it, but, look. gap has been one of our top picks for about a year now. we think one of the best turn-around stories in retail. their new ceo richard dixon doing phenomenal things across the entire portfolio led by old navy followed by gap, athletic kaw turning the corner as well. margins low and a lot of really good things they're doing structurally to that business. i think it's the bet leader gap has had in over a decade and i think that business and that stock can continue to rerate from here. kind of got better proof points today. i think we'll see a little

different setup when we have lulu and ulta reporting after 4:00 today. >> let's do, then, lulu first. what are your expectations? not from a numbers standpoint. i don't want to know ap the eps, revenues, all that but how this company is doing? because the stock has not done well and feel it's like there are legitimate questions from very seasoned analysts on the street about execution, about competition, about market share and the whole thing. >> i would say, scott, that, i would agree that something feels off here. and lulu typically will trip up every couple years. kind of get back on their feet. dust themselves off and kind of keep on ticking. this feels different to us. based on the work that we've done, i think there's issues internally at the business. we're seeing key people leaving the company both from the merchandizing and marketing side. question about culture in the

organization. they just lost their chief designer who went to bf corp. questions about direction of the business and i don't think competition is causing it, but i do think the competition is kind of, you know, benefiting from their shortfall. without going into numbers and what have you, i'd say this feels different. innovation questions. execution questions, and culture questions. feels very much like nike two to three years ago which is a little scary to think about. >> i mean, just feels like when the conversations around that type of apparel, for lack of a better characterization, fiore comes up. other names come up. whereas it used to be only lulu that came up. >> yeah. i agree. so i've covered the company since the ipo. i feel like every couple years the competition question comes up. there's been so many competitors

out there to talk about. i've never really taken it seriously. it's never created a real dialogue from our perspective but i think today is different. fiore's doing a great job in san diego taking that grass roots organic culture and running with. it i think aloe is doing a great job on the fashion side. i do think there are real competitors who are starting to make a name for themselves and lulu needs to really be on their toes and feels like they're not on solid footing right now. >> let's talk ulta. how are your expectations measuring up there? >> i think we continue to be the only analyst on the street with an underweight rating. i think they have big problems. i think big structural problems and i think that we are probably going to hear a lot more about how they plan to combat those issues over the next couple months. they've got an analyst day coming up in october. what are we expecting to hear later today? i think comps are continuing to

slow. possibly be in negative territory. i think competition is coming at them from all angles. i think losing share to sephora on thehe cosmetic side. beauty brands pushing on to their platform. the margin strug u structure and l and direction of the business, in a lot of trouble and a big reset is needed in this company. >> give me one or two things that you say, all right. top of the list that they need to do? if you feel like you're an outlier here, relative to the other analysts on the street, what's the most important thing they need to do? >> well, so let's just take those two xarchls. sephora and amazon. losing share, sephora has a better mouse trap top that you do, how do you combat that? usually demand craeation, build

up your grand. create a bigger moat. pricing a lever. those things got money and margin. hear about that. think about amazon. what is amazon going to do if they push into the beauty space and make a real big impact? cause deflation. lean on prime. push down free shipping thresholds, push up speed and delivery. ulta can't keep up with them on a fulfillment on speed of delivery standpoint. again, costs money. all things that are fixable, but got to take down numbers, take up your investments. that's usually -- a tough space for a stock 20 to work going through that but kind of where we're headed for ulta. >> see what happens. appreciate your time. joining us on "closing bell." up next, pippa stevens is back. >> one restaurant gotting a downgrade after shares more than doubled this year. the details, coming up next.

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by downloading duckduckgo on all your devices today. 15 from the bell. back to pippa stevens for the stocks she's watching. >> shares of kava in the red after a downgrade to morgan stanley. the stock more than doubled this year with the firm saying kcava pulled forth growth,

profitability and cash flow. and outperforming. a record valuation between marriott and hilton. firm pointing to opportunity from the upscale and international markets. scott? >> pippa, thank you. still ahead, dollar general shares plummeting. drill down whas ndn nt'seing th name lower today. and how the retail space is faring. "bell's" coming right back. ome. from preserving a cultural tradition to leaving a legacy, a raymond james financial advisor gets to know you, your passions, and the way you enrich your community. that's life well planned.

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steve kovach looking ahead to dell. earnings in "overtime" today. squirrely price action today. started looking like gang busters. wow. okay. the market, look right through anything with nvidia. >> yes. >> then sit down at almost 3:00 and it's a different story. >> kind of swaying in the breeze a little bit. even at the highs of the day, we talked earlier. seemed as if there was just a mechanical, okay. going to sell nvidia down modestly and spread it out around the laggard big tech stocks that hadn't paerticipate much this month. lost umph out of that trade. to me, maybe reveals once again where the weaker hands are right now. in this type of market. lower conviction they can be leaders. i don't think it's really a big problem. not like we had an uh-huh moment saying the market's vulnerable. you do see, 24 hours ago you said, nvidia's going to be down

6, pe 7% and s&p 500 flat and t of three stocks in the market up on the day. you'd say, fine. shows you have a little resilience. we didn't really nudge past the old highs. i wonder is that sort of not the business for august at this point? get a rerisk, not necessarily today. >> find it interesting a couple of stories on investing and openai underscoring that these hyperscalers are scaling fast and they're spending a lot. whether it's through pure capex or investing in firms like openai. >> sure. >> the investors is just going to have to become comfortable with that dynamic. >> yeah. i guess there's a way of inferring there's not desperation but just such a sense of urgency it's a shotgun approach. everybody's got to participate.

the kmul actual number invested big for any of these companies. participate, have a say. nobody knows exactly what the future application looks like. might as well have a call option on this version of it. i don't know that's necessarily good or bad but definitely reflects this environment. full speed ahead. we think the risk of investing too little is too great. >> sure. >> not to take. >> what would you rather them do? >> yeah. >> at this point. they've got buybacks. some have dividends now investing in a place where all the action is. >> for now, no pain. it trade-offs. enough to go around. >> talk about dollar general. worst day ever? >> a rough day for dollar general, scott. shares cratering all day after it slashed sales and profit guidance for the full year. the company expecting same-store sales up to 1.6% down from a prior outlook of 2% to 2.1%. also cut its profit guidance as

the company's core low are-income consumer pulls back on spending. sales up about 4% during the quarter. largely because of new story openings. same-store sales a better metric only up half a percent. far worse than the 2.3% uptick analysts expected. ceo todd bezos said slower spending from its core lower-income shopper is part of the problem, but some of dollar general's issues are self-inflicted. has work to do to improve it's stores, how it handles inventory. shrink lot inventory from theft or damage weigh wering on profits once again. >> appreciate that. steve kovach what to koch for with dell? >> all about the a.i. server market. saw last quarter, really low margins sending shares down. after that report. also a lot of crosscurrents in the a.i. server market with super microreporting lower margins. and investors want to know how

its a.i. service market is holding up and broader focus on a.i. spending by hyperscalers following nvidia's report yesterday. shares down. copilot plus pcs. big hardware push for microsoft with those a.i. pcs, dell makes those. the lconversation on that as well, look for that. another closing high for the dow. speaks to the makeup of this market. >> yeah. dow, which was kind of the doormat for a lot of this bull market. especially first half of the year, enough behind it in terms of defensive, health care, quality-type stocks now distinguishing themselves that it can make a little progress. usually the way it goes. do you's going to outperform in a slightly less agracive take. i don't necessarily think you look at the defensiveive tone. rate sensitive, talking about it

earlier, health care, necessarily being an absolute, solid, negative verdict on the economy. definitely shows we need constant reassurance that the economy's hanging in there. the way you express that concern, that maybe it's not going that way, rotate into things that don't look at expensive and don't need great economic growth to work. we get the pce numbers tomorrow. feels like the inflation side of it should have lower stakes at this point, of course, because we're no longer really in that full-on inflation fight. get the personal income and spending. parts, got the gdp revision today. seems like what wee see right in front of us looking okay. >> i mean, the flip side of the way you express your view on the ekonnockono tc econo trade up almost 1%? >> it is. along the same patch of ground been through a little while here. trading as a dovish trade.

>> 100%. a soft landing setting right in front of you. >> exactly. laggard soft landing fed rate cut trade bundled into one, as well as a little bit of juice there. feels like you're not getting it out of mega cap high beta anymore. we'll see. again, a little bit of reservoir skepticism here it really can be a leader and break out in a decisive way. for now, doing fine. as i said, equal weight s&p up half a percent today. >> doubts are exactly why, as you said at the outset of your answer about the russell, keep coming back to this place. fits and starts. big games some losses. regain ground. because we can't make a decision wholly, on what's going to happen. >> we can't. look, it's an odd point in the economic cycle to decide small caps will rip from here. certainly could has. if you execute the perfect soft landing, rate cuts are coming and the financials could keep strong. huge component within the russell. you know, you have unprofitable

companies. i get it. sort of remains to be soon. >> closing high for the dow jones industrial average. [ closing bell ] into "overtime" with jon fortt. that bell marks the end of regulation. curtis wright corporation ringing the closing bell. and honors at the nasdaq. a record close for the dow, but gains across the averages faded late in the session. the nasdaq giving up a big early pop closing fractionally lower. s&p just about flat. that's the scorecard on wall street. but winners stay late. "overtime." morgan is off today. i'm jon fortt. nvidia behind us but plenty of action on the way including results this hour from