reach that potential remains to be seen. we know investors have in the past paid up for that kind of potential growth >> yeah, i would say, by the way, tesla is certainly a prepandemic, pandemic, and post pandemic kind of company dominic, thank you very much >> thank you, everybody, for tuning in to "power lunch" today. >> we appreciate it. "closing bell" starts right now. hello, and welcome to "closing bell. i'm sara eisen, back here at the new york stock exchange. major averages looking to go out on a high note after a month to forget for the bulls the nasdaq seeing the biggest pop, surging nearly 3% session highs as we head into the final hour of trading. >> on a two-shot for the first time, only in about four or five weeks but it sounds like six months >> now we're back. >> i'm wilfred frost let's look at what is driving the action today consumer discretionary and tech are the standout winners

chips are also having a very strong session ahead of earnings from nxp semi after the close, and energy in focus on tensions between russia and ukraine, the energy sector up around tent% on the year 59 minutes left of the session and of january >> coming up on today's show, we will speak exclusively with richmond federal reserve president tom barken his first tv interview since the fed meeting. >> plus, arielle's ru rupal bhansali will join us with a list of her stocks >> first, let's focus on the big stories we're watching today deirdre bosa is covering the pop for the nasdaq mike santoli tracking the rest of the stocks. deirdre, let's start with you and the big move we have for tech, up nearly 3% on the nasdaq >> another one of those days,

wilf really those high growth names ripping higher to end what has been of course an incredibly tumultuous month we have seen some names in the space, especially software, already bounce back 10%, 20% from lows recently today, though, we're just seeing indiscriminate buying across the space. some is happening in the most beaten down names that are seeing the biggest bounce in the current session. look at c3, ai, peloton, robinhood, but those three are still 80% plus off their peak. still lots of ways to go cathie wood's ark etf in the momentum space, up, what is it, 8% now, still about 50% off its 52-week high on the flipside, guys, this bifurcation in tech still very much in play legacy or value names, ibm, cisco, oracle, dell, and the last are the chinese internet names. you mentioned jd.com as one of the top gainers.

they were hit particularly hard last year, but the k webb etf is up 9% today. question is, of course, does it last we have seen big comebacks, big drawdowns for growths over the last month earnings, jobs report, fed trajectory still very much front and center >> though i would think microsoft and apple earnings help at least with sentiment, both of them coming in stronger. deirdre, thank you >> let's get to mike santoli with a broader look at the market action. mike, follow through after that impressive comeback we got on friday, what stands out? >> pretty energetic kind of gap and go we popped higher at the open and progressively higher since then. s&p 500 is up 6% plus from the intraday lows last monday. so that's obviously just a week ago. it's put a pretty decent cushion under the market from the correction lows. interesting spot right here, though 4495 is the intraday low from december so it's sort of basically kind

of right underneath that probably not grand significance, but there is one of these old things that says if the december low is breached by the end of january or as of the january close, you may have a rougher spell for the market going ahead. the bottom line is the market has been destabilized from having to absorb the move in rates and fed intentions in a decelerating economy so far, it looks like a cleansing correction has done a lot of the work. you never know it's over until way in retrospect, but take a look at what the world has been dealing with in terms of bond performance. been straight down recently. igov is an etf that tracks the government bonds outside the u.s., developed markets outside the u.s. this obviously just means global yields are rising. the german ten-year clicks from negative to positive territory, but it's down in absolute levels that are not all that remarkable it's that you're losing money on your bond and equity leg what most matters in terms of

the fed, in terms of risk appetites and valuations, financial conditions the goldman sachs financial conditions index is that thing to look for to see if the fed is truly tightening policy and if in fact it's going to start to bite this is a longer term going back to 2008. so you have this sharp move higher, and it's basically above where it was for the latter part of last year, but in the grand scheme, obviously, coming from incredibly loose conditions, tightening means going higher, so that shows you that perhaps the fed feels emboldened with these multiple hikes out in front of it, that there's a lot of room to do that because of where we're starting from here >> in other words, the price is not tight, although it's a really good title. mike, curious what you think about small caps they're leading the charge higher today, up more than 2%. marco, the widely followed s strategist from jpmorgan saying buy the dip, especially in small caps they're off 18% from the highs,

have been beaten up the hardest. what do you see there, and why such strong underperformance >> that's going to be the play, if you really feel as if the lows were hit and we had this scare and now it's going to be stability and confident from here on out, the stuff that was hit the hardest, the highest beta and the cheapest, will probably move the fastest in this initial move off the lows if that's what we're seeing. the small cap 600, it's like 13 times earnings very cheap relative to large caps it's because it's beta it's basically inherently volatile business models and stocks attached to them, and that's not what the market wants when conditions are tightening and liquidity is going away. so i think all those things make sense to say that's going to be the quick rebound play it's not to me saying it's going to be a small cap led market once we actually have a reassertion of some kind of trend if in fact the trend is higher that's what's been going on. also, a lot of new ipos that nobody wanted found their way to the russell 2,000. a lower quality index, and this is a part of the cycle investors

tend to want higher quality equities >> high quality, low quality, everything is higher today all 11 sectors, all of the major averages the s&p near session highs at 1.4% >> turning to washington, president biden holding a bilateral meeting with the emir of qatar this afternoon, as rising natural gas prices remain in ocus. kayla tausche has the details. >> hey, wilf the meeting is the first visit of a ufgulf leader to the biden white house, and the agenda included a handful of issues among them, expediting the relocation of afghan evacuees. continuing nuclear talks with iran and bolstering europe's energy security in case ties with russia are severed. they have discussed rerouting cargo ships carrying lng to european terminals, but qatar has pledged the majority of output to countries in asia under long term contracts and in the u.s., politicians are wary of cutting supply and driving prices even higher the u.s. and qatar are the two

top gas producers in the world, but officials said not to expect a deal on that front today another deal did get inked, though, the qatari government and qatar airways securing $34 billion in new cargo freighters from boeing and ge aviation. a major win against rival airbus with a manufacturing boon expected here in the u.s. from that deal as well. sara and wilf. >> kayla taosy, thank you. atlanta federal reserve president raphael bostic telling the financial times that a half point rate hike isn't off the table if needed. up next, we'll ach tom barkin whether he agrees and much more. an exclusive interview you will not want to miss we have 52 minutes left of trading. dow at 260 higher on your session highs.

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and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.™ in this final hour of what has been a volatile month for stocks this as investors are anticipating rate hikes out of the fed that could come as soon as march joining us is richmond fed president, tom barkin. welcome back good to have you >> good to be here >> it's not really a debate now whether there's going to be a rate hike in march fed chair powell pretty much said as much now there's this discussion about how big the fed should go to combat inflation. a 50 basis point hike, for instance how are you thinking about what needs to be done and when? >> well, i would like the fed to get better positioned. i think we've got a good part of the year to get there. and i think how fast we go just

depends on how the economy develops >> five interest rate hikes i think is where goldman was this morning, this year do you think that's what it's going to take to bring down inflation? >> i think a lot depends on how the real side of theflation develops this year we know that goods, supply chain issues are going to ease in time that should bring prices down. we know there's pressure on the service side from rising wages that will put pressure up. i'm going to be looking to see how inflation develops through the year >> but to sara's point about goldman now expecting five hikes, a lot of the other wall street firms have caught up to that area or even more bank of america is at seven. when you see those estimates, i know you're going to wait for the data, but when you see those estimates come from high level economists saying five to seven hikes in one year, does it make you pause and think, yeah, we are a bit behind the curve here? >> well, it's hard to know where the curve is when it's hard to see the arc of inflation i just come back to the question

of positioning i would like us to be better positioned that position is somewhere closer to neutral certainly than we are now, and i think the pace of that just depends on the pace of inflation >> what about the yield curve? it's really flattened lately, which has surprised a lot of folks. what does that say to you? >> well, i think we have a lot of influence on the short end of the yield curve, certainly you have seen short rates increase as people have talked more about us normalizing our rates. i think the longer side is influenced by a lot of things. most notably, global opportunities. and so i think there's just a lot of global money that trades the longer end of the curve. i have a hard time making much out of it in that context. >> do you have less confidence maybe only at the margin, but less confidence in the broader fed, your colleagues, inflation predicted powers than say six to 12 months ago? >> well, i have given speeches

saying i didn't have a ton of confidence in any precise prediction i think there's a lot that goes on, on inflation as i said, i think we'll see goods prices ease. they're significantly higher than they have been historically, and we know that's due to supply chain issues the thing i'm really watching is labor wage pressure and the impact of that wage pressure on service price inflation. and obviously, demand is going to play a big part in that as well rr see how the year plays out. >> i know you have worried about the job market and about getting back to full employment. and yes, 3.9% unemployment rate is good and strong, but we're still 3.6 million jobs short of where we were at the beginning of the pandemic, and certainly the participation rate is not back to prepandemic levels as well do you think we're at full employment >> well, we're about as tight as you can imagine right now. when i talk to my contacts,

that's what i hear i'll call thatmaybe an interim full employment. is there still upside for the labor market i really do believe so i believe a lot of the people on the sidelines are on the sidelines because of covid there was some interesting data this month that talked about 12 million people sort of during omicron, maybe second week of january, out of either out of work because they had covid, they were quarantining from covid, taking care of somebody, or they were concerned about it. i do think there's an opportunity to get more people back in the work force, but that doesn't mean there's slack as you sit there now. if you're trying to hire somebody right now, it's very tight. >> we mentioned some economistsforecast for inflation for the year ahead also lots of changing forecasts for gdp, particularly for q1, atlanta fed the latest to lower its forecast for q1. are you concerned by that? or are you confident that there's only going to be one quarter of this calendar year

that disappoints in that regard? >> well, we have been saying for a long time that of course the economy does depend on the course of the virus. and there's no question in my mind that in january in particular, we saw labor market outages and we saw demand reduction in certain sectors that are covid related i was in a hub airport this morning and it was almost empty on a monday morning. so there's no question in my mind that you're seeing those kind of demand issues. but i'm hopeful we're going to be on the back side of this particular variant and i'm keeping my fingers crossed that we can have a strong spring and summer >> what about on the jobs front? what if we get a negative pay rolls report on friday for the month of january would that factor into your decision on policy making for as soon as march? >> i'm not expecting a very strong pay roll report for the same point i just made a couple minutes ago, which is there were a lot of people on the sidelines in the second week of january because that really was, i think, we're going to figure out the peak of this latest variant. so that's a temporary thing.

i don't have a problem staying through temporary things everything i hear from employers is that demand is extremely strong that's personal balance sheets and corporate balance sheets in that's state and local spending. every i hear is they're still very much short workers. i'm expecting a continued strong job market like i said into the spring and summer. >> the stock market performance is not specifically in your mandate, though has big influences on economic levels, consumer confidence, wealth effects, financial conditions, and so on and so forth is there a level of pullback in the stock market that puts it almost as important as the two items that are in your mandate, unemployment and inflation if we suddenly fall 20%, 30%, does it become almost as important as those two parts of your mandate >> i don't think we would ever

say that our mandate is clear on inflation and employment i would see everything through that lens. if something started to affect financial stability, that's something to pay attention to, but i don't think i would pay attention to the stock market per se >> i guess there's just this lingering worry out there on wall street right now that the fed has gotten much more hawkish, as it should on inflation, but now we're in a slowing economy. and there's a risk that the fed could do too much and sink the economy into recession or at least choke off the recovery how do you look at the balance of what you have to do on the inflation front without killing off growth >> well, i think as i talk to participants in the economy, what i hear is they actually want us to do something about inflation. they would like to get us back to at least a normal interest rate posture and not be stimulating more demand on top of normal levels so i don't hear much resistance to that as i guess you suggested

a second ago, sara and moving to normal levels of interest rates, i don't think is just stimulating less, not restricting the economy. so i think we're still a ways away from the concern you're talking about. let's see where it goes as the year goes on >> i guess i was referring mostly to financial participants, to be clear, investors that we talk to, and also looking at the yield curve and the flattening of the yield curve and what that might signal about just how much you can do without triggering a recession >> well, i think we're still a long way away from that. as i said, the underlying demand i'm seeing in the economy is very strong. and the fact that we have had a month or maybe it will be a month and a half with omicron setting us a little back, i don't think it's had nearly the demand effect of prior waves of this in fact, we may be head today the point where these various surges of the virus are purely supply side as opposed to demand side so again, i'm not seeing a

weakening in core demand, and i think worrying about a recession when demand is still strong is not the number one focus right now. >> quickly to finish, i wanted to ask you a similar question i asked treasury secretary yellen a couple weeks ago which is who ultimately takes responsibility for elevated inflation? i guess the president's administration is getting a lot of heat at the moment. it's showing up in polls it might show up in the midterm elections. we shall see if by the end of the year inflation is still significantly above target, who really takes responsibility for that? you or the government? >> well, there's a near term piece of inflation there's a medium to long term piece of inflation near term inflation can move around with events if you have a hurricane in a city, people might charge more money for building materials and there's very little that any of us can do to control that in the medium term, i think that

the country depends on the fed to put interest rates in the right position, to manage inflation. that's what certainly i'm focused on doing for the medium term >> we appreciate you joining us to share some of your thinking behind that. president tom barkin >> great great to be with you >> from the richmond fed >> great conversation. markets just pulling back a fraction still up healthily across the board, up a percent on the s&p >> up next, shares of spotify shooting higher as the company deals with controversy surrounding joe rogan. we'll tell you about the latest developments driving the stock higher as we head to break, check out some of the top searched tickers on cnbc.com. the ten-year as ever topped the st tesla, spotify rounding out the top five we'll be right back.

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call today to request your free bond guide. 1-800-376-4376. that's 1-800-376-4376 shares of spotify are surging today as the company navigates a controversy between its star podcaster and some of the artists on its platform. julia boorstin has the latest for us >> that's right, wilf.

spotify is addressing concerns its popular joe rogan podcast is spreading covid misinformation neil young, joni mitchell, and bruce springsteen's guitarist pull their contest from the platform popular podcaster brene brown saying she won't release new episodes backlash growing after in late december a coalition of scientists, medical professionals and educators sent spotify a letter about misleading claims on rogan's show spotify's ceo saying that they don't want to be a content censor, but know we have a critical role to play in supporting creator expression while balancing it with the safety of our users. announcing that they're adding content advisories to podcasts that discuss covid-19 and publishish platform rules to help creators understand their accountability rogan posting a video on instagram saying that he supports spotify adding content advisories >> they're just conversations, and i think that's also the

appeal of the show it's one of the things that makes it interesting so i want to thank spotify for being so supportive during this time and i'm very sorry that this is happening to them. and that they're taking so much heat from it >> spotify's moves to address the controversy as well as a citi upgrade to buy sending shares up 13% today. >> they have been hit pretty hard lately. julia, thank you we're going to talk much more about spotify later in the show when we're joined by a pair of analysts with opposing viewpoints on the stock. also ahead, could the metaverse be the next big legal battle grund bradley tusk will tell us why now is the time for governments to start thinking about regulation here's a check for you on bonds. yields are a little changed on the final day of the month of january. we're higher yields caused so much angst, the ten-year is

1.79%, a little bit of selling the dow is up 205 points, just off session highs. nasdaq rallying the hardest. again, it's been hit the hardest of the big three for the month of january we'll be right back.

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welcome back let's check on some individual market movers. shares of moderna higher after the fda grants full approval of its vaccine in adults 18 and older. the stock is up 5%

>> moving higher after an upgrade from underweight to overweight the alternative meat company could become a global leader in the space. the stock is up 12%. jim cramer talking about beyond meat in his investor club letter today. to sign up, point your phone on the qr code on the screen or go to cnbc.com/jointheclub. >> jointheclub >> which is worth it, by the way. he said there's a lot of competition when it comes to the fake meat. >> another stock to point out on the move is peloton. according to internal documents obtained by cnbc.com's lauren thomas, the fitness company has cut its 2022 sales projections for its apparel business peloton had forecast the division would have more than $200 million in annual revenue while now it's expecting the number to be closer to $150 million. the company citing supply chain issues for the cut peloton declining to comment you can read more about the story on cnbc.com. hasn't lost the rally today. it's up 5.4% along with some of

the other beaten down stocks but clearly, they still have a leaker in their midst when it comes to some of these stories kudos to lauren thomas who keeps getting these great stories. >> they said originally they found out who that was, but not fully. glitz rr time for a cnbc news update rahel solomon has it for us. >> here's what's happening at this hour. with reports of more russian troops deploying near ukraine, president biden says that he continues to seek a peaceful way to de-escalate tensions with russia over ukraine, but that the u.s. is ready if diplomacy fails. >> we continue to urge diplomacy as the best way forward. but with russia's continuing its buildup of forces around ukraine, we are ready no matter what happens >> cdc is urging americans to avoid visiting mexico, brazil and ten more countries due to high covid risks

nearly 130 countries and tear toys have the cdc's highest level of covid travel alert. novavax has requested the fda give emergency use authorization to its covid vaccine it's available for use in more than 170 countries but in the u.s., it would provide an alternative to vaccines developed with mrna like those from pfizer and moderna. you're now up to date. sara, back to you. >> rahel, thank you. up next, regulating the metaverse. tusk ventures bradley tusk outlines key questions that need to be addressed and what the government should be doing right now. later, mizuho naming tesla one of its top picks for the year an analyst behind the outline, the tailwinds that could lead to big gains. it's jumping 10%, still down 11% or so for the year we'll be right back. well, would you look at that? jerry, you gotta see this. seen it. trust me, after 15 walks... gets a little old.

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there's been a rough month in the metaverse the roundhill met averse etf down by 15%. among the players seeing the biggest losses, roblox, led by more than 35%. microsoft and meta platforms both down around 7% or 8%. the meltdown comes as calls for regulation in this metaverse space grow louder. let's bring in bradley tusk, founder and ceo of tusk ventures great to see you thanks so much for joining us on this topic you have written a huge report on these areas and some of the key questions to focus on. i guess my starting point is, should we regulate social media and crypto first i not trying to be facetious but it's to say if we haven't got to

taking that step yet, are we ever going to get to the step of regulating the metaverse >> it's a great question, but in some ways our failure to anticipate and regulate crypto and social media is a good lesson for how to handle the metaverse. typically speaking, our policy is we wait for technology to be introduced, to gain kind of market fit and traction, genie is out of the bottle, and then we say oh, these things don't work let's regulate, and it's hard to do that in retrospect. we know the metaverse is coming. it's already here in some ways it has all of the problems of the internet probably times five or ten why don't we think about it now, get ahead of it, and we can figure hout to deal with things like crypto and social media >> so when you say it's got the problems of the internet times five or times ten, are we talking about the same issues, privacy issues, ownership of your own data, impartiality? are there any that are wildly different or is it just all the same issues we have seen over

the last four, five years in social media, just amplified >> no, no, i think it's a lot more than that so it's consumer protection. it's taxation. it's national security it's misinformation. or even things like government services there's good and bad imagine a world where the entire dmv is on the metaverse and nobody has to show up except for the actual driving test. everybody would love that. or, on the flipside, there are warning signs. let's say you're a state lottery. who is going to want do pick six and scratch-off games when they can go in the metaverse and campbell at the coolest casino in the world anytime they want there's places to anticipate and get ahead and be better, and there are other areas where they can improve services >> i think of, bradley, sort of a nightmare scenario where people were concerned with facebook and privacy, when it comes to algorithms. they can -- if you're in the metaverse and they start selling

ads, they can take your facial expressions and your, what, temperatures and every part of your body, right, to target an ad specifically to me. it sounds very dangerous how on earth do you protect that >> i'll take it a step further if you're wearing a vr headset, just by the direction your eyes move in, they can tell what you might be interested in what that all says, it was kind of wilfred's point from before, we need a national framework for proxy. europe has one, california has done it, but overall in the united states because of a failure of action by the u.s. government from both parties, we don't have basic don't have bast who owns what data, how can we transfer it, what's not accessible, how do we take things down. those are basic things i think at this point we have a right to expect our government to handal. when the metaverse comes, it's going to be that much more extreme. this is the moment for the biden administration and others for once to get out ahead of it. >> and bradley, we wanted to ask

you how you feel about the recent pullback in the market and obviously tech stocks in particular two questions from me on that. do you feel like it's the most of the selling is done, but also, what are you seeing in the private markets? have they tracked public market valuations lower are you feeling they're bottoming too? >> it's really interesting we were just talking about this like an hour ago you're now starting to see deals slow down, they're not getting the pressure of the first time you're meeting a founder, you're told you have to put in a term sheet. things are returning to normal a little bit which while that may mean lower valuations which means we mark up our investments less, it also means a more rational cyst wrm we can look at things for longer, be more thoughtful about it, work with founders more, and so yes, the pullback we're seeing in the public markets is being reflected upon >> that's interesting. first we really have heard that. bradley tusk, thank you for joining us >> thank you for having me >> with the metaverse manifesto

today. straight ahead, boeing rallying and the energy sector shines in january. we'll go behind those moves next >> after the bell, earnings from mxp semi-conductor you have all 11 sectors higher in the s&p now, led csur byonme discretionary. we'll be right back.

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sturges despite the controversy surrounding joe rogan. rupawl bhansali will join us, and we'll sink our teeth into a bullish call from morgan stanley on under the radar plays in the dental industry. >> get it? >> i'm following a very incisive research note. first of all, with 30 minutes left in the trading day, we're now in the closing bell markets. mike santoli is here to break down the crucial moments of the trading day, and today, we have defiant etf investment officer silvia joblonsky with us as well on the final day of the month, all three averages lower for january with the s&p and nasdaq on track for their worst month since 2020 we're near the session highs, all of the sectors are higher, and it is a decent bounce. when do we start to know whether we can have confidence this is

more than just a small short-term bounce. >> i would say a couple three more percent higher from here, and time is the other way you know and one of the reasons there's a little bit of burden of proof is a lot of elements were already lined up in recent days to at least have the end of the month be relatively strong thursday we talked about very, varistrong several day seasonal period friday, also, just this sort of washout levels we got in terms of how stretched things were to the downside these divergences. small cap growth outperforming value. and end of the month flows and rebalancing effects, all of them in place now, that doesn't mean it invalidates what's going on. you have had some upside the market got traction. stress indicators in the market have eased a bit in recent days. so i think you remain agnostic while also being somewhat encouraged that the market did not just sort of continue to spiral lower as we absorb this pretty significant recalibration of fed

expec expectations >> sylvia, you have a good read into retail behavior and psychology right now with the etfs what are you seeing as far as sentiment and whether this comeback could be real >> hi, sara. well, i think mike makes a great point. we have to wait and see what happens over the next couple days and see another one% to 2% move on a daily basis this week would be a really great indicator. it's really tough to call the bottom, but i think we're seeing a couple positive things and some of those things are that 80% of the names that have reported are beating analyst estimates, s&p 500 revenues are up about 12% for the quarter of earnings so far, maurgins are looking good although we have inflation, a lot of the consumer costs, the input costs and the stresses that companies are facing have passed on to the consumer, and they continue to generate cash flow so you have a lot of quality out there, you have a lot of cash flow out there, and i think that the market overreacted a little

bit. we had to answer your question, a lot of emotional panic selling from retail investors. perhaps some of that subsides and people start to look at this from a different lens of, you know, the risk return is looking pretty good on quality names right now. >> as we head into the final ten minutes of trading, we are seeing this surge of buying that we have seen lately, at least we saw it on friday we're seeing it again. nasdaq up 3%, session highs. netflix and spotify still down double digits so far for the year, but citigroup thinks the pullback in these two could be a buying opportunity upgraded both stocks to buy. citi said the street is overlooking potential subscriber growth, adding netflix has ample pricing power and spotify can improve ad-supported monetization plus, netflix ceo has disclosed he bought $20 million of the company's stock over the past week that's usually a good sign netflix and spotify both surging more than 10% today. mike, we're talking a lot about spotify and joe rogan and the controversy. why has it been such an

underperformer lately? >> well, i mean, these low earnings vie valuation growth stories which spotify absolutely fit into has been for sale for months now a big part of it is just a rethinking of how much we're going to pay for the pure franchise value of these popular but not yet very profitable businesses netflix, a little bit of a different story. obviously, they have a clearer path toward being more profitable they're sort of choosing not to be right now i think this was an upgrade that was very well timed tactically, both stocks down 40%, 50% from their highs at a time when you had a couple things you could grab hold of to say that maybe they were bottoming out. yes, interesting reed hastings buying stock he sold a lot more than he just bought at much higher levels, but still as a gesture, it doesn't hurt >> i was thinking it would be interesting if we saw saush yeah nadella buying microsoft stock silvia, what's your take on those two names, spotify and

netflix? either looking attractive? >> yeah, i think both netflix, you also had bill ackman coming in on that 3.1 million shares. i think netflix wins in terms of king of content and the idea of direct to user programming is just something that's going to continue to grow covid has impacted them so positively, some might say, but actually internationally, where you don't have the level of fiscal monetary stimulus in the consumers' pockets, they haven't necessarily paid for subscriptions, so they do have pricing power. we'll see where that goes. with spotify, i like that story. they have well over 300 maus they have growth of about 13 million on average since 2018. there's a monetization story for paid advertising they're do all this cool stuff with podcasts with the obamas, with harry and meghan, and it's direct to consumer, people are sort of streaming and looking for what they want versus sort

of classic tv and radio, so i think they might have a good growth story there >> boeing -- >> don't like the misinformation >> i know, but they haven't really delivered any information on the platform yet, have they >> i don't think so. they were supposed to do a podcast. you're bullish about it, still >> i think whether or not we want to see it, i think there are a lot of people that will want to see it if it comes out i agree on the misinformation, there's some headlines right now pulling the stock down, but it looks like they're quickly looking to attack that the messaging today has been prolific >> let's hit boeing, which is the biggest winner on the dow today. phil lebeau explains why >> a big deal for boeing with qatar air. a deal that they announced in washington take a look at what boeing has sold to qatar. now, some of this is in the form of options some of it is a firm commitment. 34, this is a firm commitment, for the new 777 x freighter. they're going to be the launch

customer there, two for the existing 777 freighter a commitment they hope will eventually be in order they expect it will be in order for 25 737-10, the extended versions of the max. 102 planes altogether when you include options. yeah, it's a big deal for both boeing as well as for ge remember, ge aviation providing the engines and services for those engines as part of this deal even though both of these stocks have struggled over the past couple months, the potential list value, $34 billion for the planes and the engines by the way, ge potentially in for $7 billion of that $34 billion. again, that's the list price things are never sold at list price in commercial aviation take a look at boeing versus airbus and we're showing you a one-year chart here. remember, airbus has outdelivered boeing for three straight years, including last year stocks generally trading in tandem, though clearly, airbus had a better run in the last year back to you. >> phil lebeau, thank you.

up more than 3% now on the nasdaq energy is the only sector to end this month in the green. cnbc.com's pippa stevens lookinglookin at january's market winners. the s&p down 6% for the month, and energy up 20%. >> it's notable it's the only group in the green, and that 20% gain for the month is just really far outperforming all other areas of the market. the gain, of course, builds on last year's nearly 50% rise. oil fuel services companies have been the top performers with halliburton and schlumberger up 30% for january. upstream players also getting a boost from higher oil and gas prices occidental, eog, and hess up more than 20%. majors exxon and chevron seeing gains as well. exxon hilt a 2 1/2-year high ahead of tomorrow's earnings report chevron hit a record high last week but has pulled back since

after the profit missed estimates last quarter and despite this outperformance, goldman saying investors should boost exposure, noting energy stocks are an inflation hedge. guys >> pippa stevens, thank you. and oil prices are higher again. $88.32 wti. do you still want to be in this group after the strong performance last year and to start this year? >> yeah, so i think i have gotten the performance that i would have liked out of the sector and i think that there is some short term run to room part of that is demand picking up post covid. people getting out there, driving, flying, potential geopolitical issues impacting the price as well. i'm more interested in the longer term alternative energy plays. there will come a time where we sort of stop using it, relying on it fully, so i'm more interested in things like hydrogen as a future energy play >> mike, if we do continue to see these tech names rebound and

lead the charge, will some higher have to come out of the energy sector, will it have to be a rotation, but can everything keep rising >> it doesn't have to be a rotation energy is still about 3% of the s&p. not like you need to sell one to buy something else necessarily, but to your point, i think they built up such a lead at this point. energy and also more broadly speaking, cyclical value, that you might think it would take a back seat. look at what's going on today. crude oil is up 1.7% natural gas up 5%, and energy is kind of doing nothing relative to the overall market. as a matter of fact, the exploration stocks are flat. that's because today is a rebalancing mean reversion type move it's not so much keying off of what's happening in fundamentals seems like the commodities are in a sweet spot in terms of the companies being able to be pretty profitable and they're all about returning capital to big ones so it's hard to say you can get hurt too badly in the group if the economy holds together in terms of the momentary

preference of investors, it might go away from energy. >> pretty striking when you look at the data in the s&p ten are lower. energy is higher by 18%, no less. just a stark, stark outperformance compared to the rest of the market on this roller coaster month of declines for everyone else. mike, two minutes left of the trading day. a month. what are the internals looking like >> very strong actually kind of strengthened throughout the day, if you look at the breadth of the market, the volume split there you see more than 4-1 advancing versus declining volume. it's a pretty sturdy broad rally. we're making up for a lot of lost ground. you had ten straight days with more declines than advances. all these superlatives about how weak things were going into the early part of last week. now it's kind of a bit of a snapback against all those talking about oil relative to things like tech if you take a look at the oil services etf compare today the cloud software etf today, you'll

see they basically had 20% moves in different directions. and now just a slight minor convergence here that's a little bit of a flavor of how much kind of ground there might be to make up on any kind of convergence trade if we get styles kind of switching spots again. the volatility index has relaxed a little bit it's been stubborn going into the weekend. you had a little bit of contortions in the vix futures now down below 25. it's certainly a start, but it shows you that the market is still kind of in a show-me mode as to whether we're on firmer footing. >> less than a minute to go into the close. take a look at the nasdaq. that's bouncing the hardest right now. seeing gains of more than 3.3% here into the close. it's still down about 9% as we close off the final trading day of the month of january. it's about 12% or so off the highs but up now 3.4%. looks like a strong close. every sector in the s&p 500 is

higher right now looks like the strongest sector is consumer discretionary. tesla, netflix, a lot of these beaten down names on the month are getting bought today there is the lose. going out on a high note on one of the worst months for stocks since march 2020 >> welcome to "closing bell. i'm wilfred frost along with sara eisen and mike santoli, cnbc senior markets commentator. coming up, rupal bhansali weighs in on the stocks she's looking at now celebrations as the bell went, 50 years being listed, or maybe the market close which was so resounding on the market today albeit, still down 5% thon month as a whole

sylvia is still with us, and jason joins the conversation as well mike santoli, i come to you first of all on what has been an extraordinary end the last two trading sessions in particular to a terrible month. and of course, we have to wait and see what february holds. but actually, at the end of the month, only down 3.3% for the dow. >> yeah, it's not terrible, point to point obviously, you had a lot of pain taken along the way, and really just a lot of last year's profit taking that spilled into something worse than just profit taking i think that's my read on how it was, as we also had to kind of absorb this whole idea of what the fed is going to do definitely late month january inflows helping things out, into an oversold market, and people got pretty negative going into the latter part of last week all that stuff is helping right now. what's interesting is the s&p closed almost exactly at the lowest close in december, which is from early part of that month.

a level we got up to in early september, so we're kind of now going to have to fight it out in the middle of the field here of this range, and i do think you probably should consider it a range. you'll hear a lot of people say the strongest rallies happen in bear markets a little bit of fomow and you have this one lift off the lows. so we'll see how it plays out. it's certainly breathing room. >>ing the has really changed fundamentally, has it? we have gotten a lot of fed speak, and we heard from tom barkin in the last hour, but this fed is leaning hawkish, and they want to do something about inflation. they feel like they have to catch up to what's happening in the economy on the price standpoint and are not worried about a weakening economy or a slowing jobs market because both seem to be in strong shape so what does that mean as far as what you should be doing in the market >> right, and i think that's been sort of the rhetoric for the month of january i think all that cheering was like good riddance, january, with omicron and the five to ten hawkish rate hikes we're worried

about. i think the market has sort of overpriced in the risks that are eminent. so what i think now is that we're going to have this continued volatility until we start to see volatility sort of pull back once we do get a rate hike in march and once we do start to see inflation numbers come down and we hear positive news about supply chain restrictions easing and companies sort of being able to generate and recognize the revenue that they're saying is held back because of those issues until then, i expect to see continued volatility in the market you know, i think we'll sort of time will tell, but these have been great opportunities, and you know, if you look out three or four months, of the 26 corrections since world war ii that were greater than 13%, it takes about four months to sort of see the market rebound. so if you're talking about fomo, historically, it hasbeen a rea thing. if you look at the quality names and are looking to stock pick, now is a good time to kind of pick your winners for the longer term >> jason, where do you stand on

whether the bottom for let's say the first half of the year is in >> yeah, it's a great question, wilf i think that's always difficult question to ask, try to figure out where the bottom is and where markets are. what i would say, though, is the market has been trying to find that bottom. obviously, it was a very difficult january, a tough take all month. had some really nice days the last two days, and the nasdaq up 3% today but what i would say is, listen, the fed has embraced a hawkish tone there have been some folks who were caught offsides in the early part of january who now really look to position, look at their shopping list and try to figure out where ultimately they need to be we have been talking about this for a long time in terms of the high beta nonprofitable names are going to struggle in this marketplace, whether the fed raises rates four or five times, three times, you know, we understand where we need to be,

and the value of the sectors but it does create some opportunity and growth, and i think that's what we have seen over the last two days let's see how the rest of the quarters play out, and the rest of the earnings season, which i think will be strong from here on out >> on that subject, on the fed, we did talk last hour to richmond fed president thomas barkin we asked about recent market volatility and whether that will influence fed policy >> our mandate is very clear on unemployment and inflation we also play an important role in financial stability through our oversight of the banking system so i would see everything through that lens. if something started to affect financial stability, that's something to pay attention to, but i don't think i would pay attention to the stock market per se >> we also asked him about his expectation for this friday's january jobs report. >> i'm not expecting a very strong pay roll report for the same point i just made a couple minutes ago, which is there were a lot of people on the sidelines in the second week of january because that really was, i think we're going to figure out, the

peak of this latest variant. so that's a temporary thing. i don't have a problem staying through a temporary thing. everything i hear from employers is that demand is extremely strong that's personal balance sheets >> mike, my takeaway, we threw everything at him, the market downturn, the fact the market has turned weaker, the fact we're expecting a bad jobs report in january, they're focused on inflation now he said that's what's going to guide us on the rate hike policy and our path, and they're playing down economic weakness or job market weakness, not that we're necessarily seeing that, more than a temporary omicron hit, but they're fully focused on inflation >> yeah. >> if you're looking for this fed to blink or get worried about the market or the economy, they're not there yet. >> no, and first of all, i don't think 10% down in four weeks would ever necessarily move the fed off of any plan. but i agree that they're checking off the boxes that the

labor market is kind of for the moment mission accomplished. i like what he said, on an interim basis, we're at full employment we may be able to get things better after we're fully through the pandemic effects, but right now, it's full employment. the main job of the fed is to rebuild some of the ammo to fight inflation. that seems to be where they are. they don't want to be very specific about guidance. they're not particularly interested in being all that predictable as they were in past times when they thought the economy was a little bit more fragile. look, housing is in a good spot. you have a capx cycle that should start now credit conditions. everything that they would worry about as opposed to the stock market is looking okay for them. >> jason, given that we have seen so many upgrades from various wall street banks in terms of the number of hikes they expect in the year ahead over the last week or so, does that mean when the hikes actually come, we won't see the market react to the downside >> yeah, so that's another good question

i would say most of the response you see early on so when we really are starting to move towards this cycle of tightening cycle, that's when we see a lot of the volatility. once it starts, some of that volatility will slow but ultimately, as mike said, the fed will be data dependent they're reliant on cpi and prints and the pc sxerx what that looks like going forward, but i do think there's likely more volatility ahead as they start to move rates starting in march. we'll see how things unravel over the next few months >> so if you think we have found some sort of footing here, and we have had a really strong two-day rally on wall street, take your pick where is the first place you would be looking to buy? consumer discretionary down 10% for the month, real estate down 8.5 first, tech and health care down 7%. every sector was lower except for energy >> so i'm actually looking to buy quality technology, and i'm

looking to buy semi-conductors and my view on semi-conductors is really looking out to the future again we're looking for secular growth, trends that are going to last for the next five to ten years. and if we think that the metaverse is going to exist, and it's going to be an $800 trillion opportunity and that web 3.0 will evolve and these things will happen, the key to all that is 5g the key to 5g are semi-conductor names like nvidia and amd. they're also the key to electric vehicles, the key to cloud computing, the key to gaming sort of take your pick anything that has to do with the advancement of technology in the future is so heavily reliant on semi-conductors and they have been absolutely pommeled over the last couple weeks. >> so nvidia is silvia's pick and it's up a nice percent today. jason, what pick are you going for in terms of zoning in on your best idea >> i like a lot of the point just mentioned the semi space has created a lot

of opportunity i like qualcomm. the semispace is a $500 billion industry, moving to $700 billion by 2024. it's up 25% year over year but if i look at qualcomm, very value oriented name in the semi space. only trading at 21 times they have done a lot of work in the infotainment space and what they're doing with autos i think qualcomm has a nice opportunity for runway here in the next quarter and they report on wednesday, so we'll see how it plays out >> you guys are very simp pot co, both choosing chip stocks as your top picks thank you. >> we're just getting started on the second hour of "closing bell." tesla shares rallying to close out a rough month for that stock. our next guest thinks shares will head much higher from here. his sky high price target straight ahead >> plus, spotify shares surging today, bud should investors stay

away from the company amid all this controversy with joe rogan. the bull/bear case for the stock coming up. we have an old school debate spotify up 13.5% today we're back in two minutes. i'm so glad we did this. i'm so glad we did this. i'm so glad we did this. i'm so... ...glad we did this. [kid plays drums] life is for living. let's partner for all of it. i'm so glad we did this. edward jones - [announcer] at southern new hampshire university, we never stop celebrating our students. i'm so glad we did this. from day one to graduation to your dream job, that's why we're keeping your tuition low for the 10th year in a row. - [student] the affordability and the quality of education, it can be enough to change your life. - [announcer] as a nonprofit university,

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. tesla shares closing sharply higher today, but the stock has had a rough start to the new year with shares down more than 10% year to date despite the rough start, mizuho securities still bullish on the stock, reiterating its buy rating and $1300 price targets the analyst behind the note joins us now vijay, thanks for joining us >> thanks for having me on >> i guess the first question has to be what you make of the share price action in the last

couple months. and when you see it volatile, when you see it pull back in the way it has, whether you get nervous that the way the market values it, that the multiple it puts on the stock might suddenly evaporate. >> definitely, you're seeing a little bit of a headwind to the growth stocks with the interest rate scare you're seeing some of that ripple to the market i think tesla, we like it because it's technology, and if you look at profitability which is a key measure in evs or any space for that matter, their gross margins, operating margins, profitability is well ahead of anybody on the street we compare to ford, gm, dameler, even companies around for 50, 60 years plus tesla is already driving much better profitability in a market that's growing 30% 50% production increase on the top line looking out so some profitability, industry

leading profitability, solid market share growing markets. i think it deserves the multiple there. >> in terms of those growth and profitability prospects that you talk about in your note, outside of the kind of normal ones, the batteries themselves and the ability to do more with those is something you're attracted to. >> absolutely. if you look at evs, electric vehicles especially, you want to have it vertically integrated. you can control all of the costs, from manufacturing to battery to the hardware, and tesla does almost all of it inhouse. evethen battery is now inhouse, so they're stocking about the model y coming out with the batteries in the march quarter so again, this drives a very solid end-to-end vertically integrated model where they can cost down, drive better margins. get much higher profitability, and no other automotive is as vertically integrated or even

close to what tesla is doing not in the hardware side everybody uses third party hardware everybody buys batteries from panasonic or elsewhere, and integration is key you're seeing that in tesla. you're seeing rivian stock doing that those will be the leaders as we look out >> ford and gm are getting a lot of credit. i don't know if you saw. we had the white house head of the nec, the national economic council director, brian deese, on the show on friday. and he had just convened a meeting of ceos, including ford and gm they had ev conversations before and they never invite elon musk, who is leading in this country when it comes to production and selling of electric vehicles which is curious i asked the nec director why he doesn't invite musk. here's what he said. >> why do you not invite musk to these meetings this one, and others that you have had specifically on electric vehicles, when they are on the front lines of producing

electric vehicles and the biggest player in this country >> well, i would say this was a great meeting. we had ceos from sectors across the economy. not just the automotive sector but the technology sector, the industrial sector, health care sector all across, and what was really interesting about the perspectives that the ceos were bringing is all of them were underscoring that things like investing in child care or in education, in early education are core economic issues right now. given our need to get people back into the workforce. our need to help more people who have caregiving responsibilities actually work. and so that these issues are really core economic issues even though sometimes they're labeled as social spending when it comes to electric vehicles, we want the united states to be the place where the electric vehicle revolution is driven, and where we gain more of the global export share, and we're creating more good jobs here in america. so that's not about any one

individual company that's about from the policy side, laying the foundation so that here in the united states, companies feel confident to invest, expand, and build not only assemble the vehicles but build the batteries and other components that go in in a way that creates good jobs >> that's what he's doing. >> i only play it, first, i got a ton of attention on twitter, as you know, musk has so many millions and millions of fans and supporters but why doesn't the white house engage with him when it comes to making direct policy and what appears to be such a priority for them >> good question i think if you look at tesla, they lead not just in the u.s. but globally by far, they have much higher scale, much larger scale in automotive production. much better profitability than ford and gm. i think from a national strategic perspective, it's very important that we invest in our leaders. keep that technology leadership.

and drive that -- spearhead that electric vehicle technology. it's important to maintain that crucial technology leadership globally i think it's very important we invest in the leaders as well. so that's what i would say to that >> vijay, thanks for joining us. >> thanks a lot. meanwhile, nxp numbers are just crossing and seema modi has them for us. >> it's not so much the numbers but the bullish commentator from the ceo about the future demand that is lifting shares of nxp, up about 4% in extended trade. the ceo saying we continue to see growing customer demand outstripping supply as inventory across all end markets remains very lean. taken together, this underpins our continued confidence of robust growth throughout 2022. shares of nxp were up as much assas ate 8% in regular session.

revenue growth for the quarter of $3.04 billion it's raising its dividend. bigger buyback plan to the tune of $2 billion. that seems to also be helping with shares up just about 1.8% now, in extended trade conference call is tomorrow morning. sara and wilf, back to you glaung we have a news alert on apollo leslie picker with that story. leslie >> apollo is investing $760 million into legendary entertainment, which produced and cofinanced movies like "dune" and "godzilla versus kong "their transaction was not disclosed but apollo will serve as a minority investor the private equity firm will join wanda group as investors, although wanda will remain the majority investor in legendary apollo's investment comes on the heels of legendary's most profitable year in 2021, according to the release apollo said it was attracted to legendary's content and

distribution capabilities and potential synergies with its own pe portfolio in media, gaming, and technology the firm sees strong potential m&a opportunities for legendary as well. media has been an investment focus for apollo with the firm acquiring yahoo last year. it also owns cox media group and has some other investments in the media space in the past. wanda and apollo, for example, have been on opposite sides of the media deal table with apollo selling amc, the movie theater chain, to wanda just about a decade ago guys >> that's right. leslie, thank you. leslie picker. up next, mike santoli looking at how falling earnings revisions could impact this volatile market. and later, aerial's rupal bon soly's top stock market picks.

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street nasdaq rallied more than 3%. let's go back to mike santoli for a look at how earnings revisions have been stacking up. >> in aggregate, earnings forecasts are holding up, but this is a measure of just how inclusive the earnings revisions breadth is in other words, this is the percentage of companies where earnings revisions are higher versus those that are going

lower. the net difference you see it looks really stark. we hit this 45%. this from morgan stanley, mike wilson the strategist there, cautious in part because the market is becoming stingier in terms of projecting profit growth of fewer and fewer companies as a percentage. this is a typical midcycle behavior that's 2004, after the market had a big launch after a recovery from a recession. also, 2015, right in here, late 2015, 2016, it was pretty chronically negative this industrial profits recession, but we still did get a fed interest rate hike for the first time in that cycle in 2015 it's worth watching. i think it's probably a little less of an all boats being lifted type of an earnings story this coming year that's probably what this says, a little more give and take in terms of names to me, it doesn't say just yet that we really have a lot to worry about in terms of the absolute level of profitability. >> that said, mike, what usually matters more to the stock market and its sentiment and direction, the absolute level of price to earnings multiples or the

direction of travel for those earnings estimates >> if estimates are not going down in aggregate, the market usually can find its way higher. so that's what we have to watch. if this crashes below zero and all of a sudden it turns out especially that the second half of the year it seems as if earnings forecasts are too high, that probably brings a little bit of a reckoning everything we say about that these days, you have to account for the fact that we quickly took 12% of the market value off this market for a moment in time as of last monday, so maybe that did in part account for the fact it's just not as bright a picture. >> mike, thanks so much. >> spotify shares surging today, but the stock has been under a lot of pressure recently up ext, a bull/bear debate on how to trade the company as it deals with the backlash over controversial star podcaster joe rogan. >> plus, alphabet headlining tomorrow's jam-packed earnings count, we will pvi a treewllhe names you need to look out for

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we have an earnings alert on

cirrus logic >> yet another semi-conductor company moving higher in after hours. cirrus logic delivering a strong beat on the top and bottom line. nearly 40 cent beat for earnings $2.54 adjusted versus the estimate of $2.14. very strong guidance for the fourth quarter the ceo also referencing significant contributions to the expanded high performance mixed signal content shipping into smartphones and overall, strong demand for its products with shares rallying as much as 8.4%. another chip stock that did have a strong session in the regular trading. back to you. >> seema, thanks so much >> it's time for a cnbc news update with shepard smith. hi, shep >> thanks, from the news on cnbc, here's what's happen breaking this hour, a federal judge in the hate crime case of the man convicted of killing ahmaud arbery has rejected a plea deal that would have averted a trial.

arbery's parents denounced the deal for greg and travis mcmichael after prosecutors filed notice with the court just yesterday. the judge has not yet ruled on a plea deal for travis' father, greg mcmichael jury selection set to begin next week >> california's death row is shutting down. the governor there, gavin newsom, says ending up on death row has more to do with your wealth and race than your guilt or your innocence. so he's pledging to close the facility at san quentin and transfer all inmates to other prisons within two years and eqana eqanas were falling fh trees overnight. temps dropped below 40 degrees when it gets that cold, they can stiffen, freeze, and fall out of the trees. according to the florida fish and wildlife commission, it's best to leave the invasive species alone. they usually come back to normal in a few hours after it warms up >> tonight, with all eyes on russia and ukraine, on the other side of the world, north korea

is making noise with a string of missile launches we'll haear from an expert on that threat after the news at 7:00 back to you. >> did not know that about the freezing iguanas freezing, falling from trees at least they don't die. >> maybe fell off my chair yesterday cold, but no, not quite. >> not quite frozen. >> it has been a dramatic week for spotify. musician neil young pulling his catalog from the service after objecting to joe rogan's podcast over accusations of covid misinformation over the weekend, joni mitchell, neals loft grn both joined young in seeking to remove their music, and podcaster and author brene brown said she wouldn't produce any more content rogan apologizing and spotify's ceo saying in a blog post, the company has an obligation to do more to provide balance. shares surged today, up 13%, but they have been ona downward trajectory over the past year. falling about 50% from the

highs. joining us now, matt harrigan of benchmark who is bullish on the stock, $300 price target steve cahill of wells fargo has a $200 price target. steve, do you think -- i know this isn't the prielary focus of your bear case, but do you think this will ultimately hurt spotify where it counts, in term of users and potentially profitability? >> i actually don't. that's in part because my view of profitability is probably a little lower than some others out there. so with the price where it is now, that's a little more in line with our expectations but then the bigger picture, i think the key questions that you're asking about, i think spotify is primarily a music service. it's a global service. you know, it's something that's a very reasonable price for a lot of investors so it does change the way we think about the mergen structure and it's more resilient to the issues like the one you're talking about today.

we don't think it's material to the stock's long term evaluation >> just remind us how big a business podcasting is for spotify. and how big the joe rogan deal was. >> well, podcasting is only about 5% of top line right now probably will never be larger than music, but it's nice in growth engine. but the deal with rogan is for $100 million over three years. and i do think this is an attractive opportunity here. somewhat laughably that this is the ark value name, if you will. trading three times below sales and this year, i think you're going to see a nice expansion of gross margins in the mid-30s by the end of the decade. this is just the engine for the global music industry. i mean, apple music stateside, and i know there's a lot around

rogan, but everybody does seem inclined to try to tamp the situation down, judging by rogan's comments yesterday it feels like he's going to play nice despite his mixed martial arts background. >> steve, do you think there could be some similarities here between spotify and netflix in terms of the way it's pulled back and then maybe the way it bounces? i guess it's not as exposed to the selling as some of the tech companies that have pulled back, because as matt just mentioned, it's got a reasonable enough price to sales multiple. >> yeah, i think the reaction actually is absolutely about netflix. certainly, what's gone on with joe rogan hasn't been helpful in line with this broader nasdaq tech sell-off we have seen in the market, but i think most of what's gone on spotify over the last couple weeks is the biggest streaming company by revenue in the world, and that's netflix,

has really had a stumble in its growth trajectory. that's called into question the growth trajectory of every streaming company, and of course, spotify is a streaming company, as are many others, disney plus, et cetera, et cetera i never thought what was good for netflix was bad for spotify, because netflix is all about exclusive content. it's about long-term pricing power, and it's really about differentiation in the mind of the consumer and spotify is just not about that they have a very limited amount of differentiated content. joe rogan is one of those things, but it's a very small percentage of listening. most of the listening is stuff that's available on every other audio service out there, the music catalog and the vast majority of podcasts spotify does not own spotify is already considerably bigger than netflix on an mau basis. it's got a lot more potential to sort of be big and broad and global so i'm not sure that their growth trajectory really is going to change because of what's going on in the video

side of things >> so why are you underweight the stock, steve >> yeah, i mean, the reason we have always been underweight it is we just think the profitability of a music business is really challenging for all the reasons i just mentioned. it's very difficult to differentiate when you're selling the same thing, the music catalog that everyone else isselling. so apple, google, amazon, sirius xm, these are all businesses selling great songs as everyone else, so it's tough to deliver pricing power on that, tough to convince the record labels to give a better deal to one than the other, and so we have always just been much more bearish on the margin structure at scale for spotify versus any other part of the business model >> matt, just to round things off, how do you rate daniel eck and the management team, medium term and how they have handled the joe rogan issue? >> i think eck is brilliant. he has had some issues in europe

with some of his a.i. investments, having defense applications and trying to buy aursinal, as i'm sure you know, being a football fan >> that highlights that he's a genius more than anything else >> it helps with genius. he's also a good marketer, as evidenced by the success of the company. i would certainly differ on netflix. i upgraded it from sell to hold after they reported earnings i haven't been a permanent bear. i had buys on it before. i think they have many more competitive issues i think spotify has a lot of favorable effects to say the least, and they're just the absolutely the key fullccrum for the music business we're looking for mid-20s revenue growth this quarter. netflix's guidance was for 10%, and over time t is going to be a slog on margin i think steve is right about that i think they're going to get there between higher advertising

side of the business relative to premium. the international growth, and then increasingly complementing it with podcasts and content where you can get a higher ultimate margin. the current circus not withstanding >> i get you guys both kind of downplaying the idea this will ultimately hurt spotify and it maybe could be like a netflix with the dave chappelle controversy, where it sort of died down and there were no consequences but matt, is there any one that could change that, like if taylor swift, for instance, came out and spoke out against spotify or decided to pull her album, hypothetically, is there something you think this is going to be a bigger problem for this company >> i think these artists are certainly progressive, but they're also rapacious people need to be on spotify people can make statements you may remember tidal, which is now majority controlled by the company formerly known as

square, really raised a fracas in 2015, 2016. jay-z involved in all that on the artist compensation. that dies down, they had a couple million global members at this point and i think i just don't think that apple and amazon, despite their advantages, are nearly as attentive to spotify, to the music aspect of the -- to music as spotify is. i think it benefits from its singular focus relative to the hyperscale tech companies. clearly, all three -- more than three will be around i think it's a very good business with extraordinarily good charismatic management despite the joe rogan issues i'm not necessarily a joe rogan fan myself, but i think the issues can be managed around >> thank you both for joining us for a little debate on the stock. >> up next, ariel's rupal

bhansali on the out of favor stocks she likes now >> plus, dental stocks giving investors something to smile about today, after wall street firm issued a bullish call on the group. we'll name names later on "closing bell. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations,

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2022, rupal bhansali, portfolio manager of ariel's global strategies great to see you i'm interested before we get to the stock picks on your big picture take even after the most recent pullback, you still think people are way overinvested in the u.s. >> yes unfortunately, you know, after the party comes the hangover, and the u.s. investors have been having a party for almost a decade plus. and i think the opportunity is now more internationally than in the u.s. valuations are extremely high, and typically, when you have such a high watermark as multiples derate, you find you can experience a lost decade when it comes to capital appreciation so the playbook for the next decade has to be different than the one for the last one >> in terms of the companies that you're picking, is there a common theme or is it very much stock specific and country specific or are you finding lots of

opportunities within that broader group? >> we are definitely bottoms up investors. high conviction contrarian investors. but often, as a contrarian, we're looking when nobody else is, or at least trying to run away from, and the two biggest opportunities happen to be in the markets that have experienced very large corrections. one of which is latin america. both the stock market and the currencies have corrected a lot. and the other market is china, because they had a very big sell-off in the middle of last year so i don't look where nobody else is, or afraid of looking, and that's when the biggest opportunities present themselves >> what's changed in china that makes baidu something you can invest in when that regulatory crackdown last year took so many companies and investors by surprise china going after its own internet giants. >> well, i think here's a distinction. and you make a very important point. the only stock amongst the internet group that i like, and

i would own, is baidu. and the difference between all the other internet stocks is they predominantly are b to c consumer models. think of them as the faang of china, and most of the faang stocks in the u.s. are b to c consumer models. you can make a lot of money in b to b business models, microsoft is an example of that. initially, microsoft stock didn't participate in the rally because people didn't appreciate that even b to b can be a very interesting opportunity. and baidu is pivoting from its b to c business model which is predominantly search engine to b to b business model, which is focused on application of a.i., autonomous driving, coming up with a.i. in the big data centers they're running. move to the cloud, and all of these initiatives tend to take longer but once they take hold, they tend to have extremely sticky revenues and long runway. so i would say it's time to reconsider the crack downin china is on b to c business

models if you can look elsewhere, which is b to b, that might be the opportunity. >> tell us about bb securedad. >> yeah, another one of the themes, and i am not a thematic investor, but i believe whenever you have a last decade, you need to compound your capital, and you cant afford to just lose money in the markets you want to stay invested. i think dividend yielding stocks can play a very big role in bridging the difference of capital appreciation vis-a-vis capital preservation and the banker in brazil, spotting a 60% roe in a normalized sense, so it's an asset light lucrative business, which has sold off because of all of the election uncertainty amongst other reasons, and you can buy it for a song in my opinion, about ten times earnings, and a dividend yield

projected in 2022 for about 8% these are the kind of franchise quality companies at bargain basement levels that you simply can't find in the u.s. >> you just said a lost decade in stocks. i know that's a big part of your idea is that just a call, a cyclical call, because things have been so good for so long, or is it the changing of fed policy what actually is making you go for a decade of no movement for stocks higher? >> well, history does repeat itself not exactly, but it tends to rhyme. we had these past decades for the s&p 500, between 2000 and 2010, we had in between 1969 and 1978, people forget that was a lost decade. but people lost money being in the markets, if you did not reinvest in high dividend yielding stocks. dividends made all the difference in actually appreciating capital as opposed to losing it i think, yes, looking forward to the next decade, given the very rich valuations we have in the

u.s. market especially, but that's true of global valuations, frankly, all equity markets around the world seem to be on extremely high multiples as they derate, even if earnings growth is fine, the stock market can still take a very big hit, which is partly what you find in the nasdaq year to date already. i think there is a regime change under way. in the past, it's been buying on the dips, moving the multiple up i think this time it will be different, and it's time to reposition portfolios not to exit the markets that will be a knee jerk reaction but to look for a different paradigm where you can still make money, and that in my opinion is looking abroad and looking for dividend yielding stocks that will pay the dividends. >> thank you for coming on to talk about that. and share some of those ideas. rupal bhansali, always a pleasure >> happy to be here. thank you. >> thank you we have a news alert on wordle "the new york times" games has

acquired it for an undisclosed price in the low seven figures in case you have been living under a rock and not heard of it, it was launched last october. it's become a viral sensation in recent weeks players get six tries to guess a five-letter word and manypeopl post their results on social media. >> everyone does >> everyone does and everyone is playing the same game, which is so cool a new word cool. a new word puzzle posted every day. the "new york times" saying wordle will be free to play for new and existing players and no changes will be made to its game play which does raise the question of how they will make money, because it doesn't make money. they don't have adds and then the charge people to use it but clearly it's viral and a lot of people are -- >> now that it's a business story i have to learn what it is it's just populated my feed aggressively, but i've not really dug into it i get that it's a game and people are showing -- >> you try to guess the word you have six tries to guess the word and it's confusing because the letters can repeat in the world. give it a try. you'll be hooked. >> i don't know. i get hooked very easy so i'll

leave it aside i guess i'll read up on it. >> "new york times" shares are actually lower a little bit on the news. >> times, a five-letter word five letters or six letters? >> t-i-m-e-s but the game about five-letter words. >> yes, yes. >> after the break, drilling down on dental stocks. >> i knew that "the times" had five letters. >> getting bullish on the group. >> and the reason you could surirpse him, we'll explain when "closing bell" comes right back. adapts to different oxygen levels and starved it. i am here because they switched off egfr gene mutation and stopped the growth of tumor cells. there's a place that's making one advanced cancer discovery after another for 75 years. i am here... i am here.... because of dana-farber. what we do here changes lives everywhere. i am here.

tonight, damage control. how spotify and joe rogan are trying to end the controversy. plus the partygate is report can prime minister boris johnson as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable nationwide network.

with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. comcast business. powering possibilities.™ dental stocks like smile direct club surged today the firm says it has a positive bias on the industry indicating that the dental product market is worth-26 billion and growing and surveys show since the start of the pandemic demand for gentle services has bounced back quicker than anticipated morgan stanley said it will continue to recover in 2022 as pandemic fears subside the firm expects the fastest growth in companies that focus on orthodontics and implants and henry shine is another good indicator of this, the dental

supply can i usually think of dental stocks as sort of staples, you know you always have to go to the dentist no matter what, but during the pandemic people were just not going. >> right. >> and that was considered a risky business to be a dentist looking in people's mouths, you know. >> sure. >> and risky to go. >> obviously it's more discretionary than we've largely thought of so you have a lot of pent-up demand it reminds me slightly i spoke to an a auto shop body shop owner last year who said all of a sudden people have demand for fixing their cars because they have the money for the insurance deductibles and they have things they needed done for a while so i think all those things apply in a way to dental work as people get more jobs and dental insurance. >> what i was going to say about this note is they are super bullish about the industry you get into the stocks. there were fewer stocks and ways to play it than they normally do a bit of a dive on one of these industry takes with not that much upside as well. a very bullish first couple of patriot missiles and then you get into it and vista and

didn'ts supply, two of the top, mid-teens, price upside. >> long-term holds, i would say. >> yeah, exactly. >> just slightly different from otherwise -- otherwise very bullish take and also the growth was interesting across different countries because a lot of pent-up demand they are saying in the uk, dentistry from a low base because everybody criticized british teeth. >> do you go every six months? >> my dentist says i have good teeth for a brit. >> you do. >> anyway. we must g.up next, your wall street look ahead this week brings the rest of the big-tech earnings and tomorrow it's alphabet's turn. we'll preview what to expect ctie you'd think retirement would be the last thing on my mind. hey mom, can i go play video games? sure, after homework. thankfully, voya provides comprehensive solutions and shows me how to get the most out of my workplace benefits. what's the wifi password again? here...you...go.

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points lost from the peak january 3rd into last month's low so that's both a good spot to say, that the worst is over and also for when the sellers say maybe it's our second shot. >> way to hedge yourself. >> bounce back and terrible month in the books thanks so much for "closing bell." "fast money" starts now. >> live from the nasdaq market center we look at "new york times" times square. this is "fast money. i'm melissa lee. tonight guy adamnedy, tim seymour, karen finerman and tonight on "fast" deep discount or deep value? still down 20% to start the year so are the high-valuation stocks on sale or is there real value in the pullback and we're tracking the after-hours action. shares of cirrus logic and nxp, bring you the latest on both of the trades and why netflix