disappointing investor day earlier this week. those shares popped higher by 23% from the lows we saw intraday, guys. >> fascinating stuff it's very interesting to see those things come back some clearly oversold. >> short covering. maybe value investing. who knows. >> have a great weekend, sir thanks for watching "power lunch," everybody. >> "closing bell" starts right now. >> thank you, tyler and kelly. stocks are rallying as the market looks to close out an ugly week on a high note with the nasdaq up more than 3% right now the most important hour of trading starts now welcome to "closing bell." i'm sara eisen there's the nasdaq up 3.5% the dow is up 300 points the high was 545 it looked like we were going to lose the rally but we are climbing s&p 500 up 2%. every sector is green right now. consumer discretionary getting the most love. it's been among the hardest hit. energy is also up there, jumping

3 s 3.4% technology, communication services all stronger today. small caps up 3% as well check out the chart of the day, tesla versus twitter tesla shares tanking as elon musk puts his bid into question. and that is boosting shares of his company, tesla we'll talk more about those moves later on in the show. also coming up, fed watcher jim grant reacts to chair powell's comments that he cannot guarantee a soft landing as the federal reserve tries to bring down raging inflation. first up, stocks bouncing back for the day, still down for the week one notable change this week, bonds. take a look at the bond etfs the ishares aggregate bond etf and vanguard bond etf both on pace for their best week since 2020 joining us jeff sherman and bob dahl jeff, why the change in the bond sentiment this week, and does it continue >> yeah, this is not just directed only at the u.s. market but this is more of a global phenomenon we've seen this week.

we've seen more ugly pressures mount within the eurozone. you're getting more reports of high inflation there we know producer price indices are going off the charts, screaming just elevated levels and the amount of gas that's been allocated from russia into the eurozone is causing a lot of problems so what that means is it's more stagflation fears that are driving that area. so when you look at the bond rally you've seen this week, it was really ncited by global bond yields and not necessarily the u.s. so the german 10-year has moved in about 13 basis points or so this week. it's somewhat commensurate with what one of seen here in the u.s. so i don't think it's something that it's inflation reports or a change in sentiment at the fed, it's a global growth scare that led to a rally this week in rates and you're seeing it kind of reverse today. >> so it sounds like you're not convinced that rates have stabilized here or this is the start of a new trend

>> no, unfortunately not for bond investors you have to remain vigilant here what we really saw is some cracks within some of the darling childs of the credit market thus far this week. so floating rate loans, which had been immune to the pain within the fixed income marketplace year to date we saw some really soft trading in those names, really sloppy trading, but in somewhat an orderly manner so it doesn't look like it's going to cause any long-term pain when you look at the cccs, you really start to see a lot of pain in the past couple weeks. the high yield corporate market has had a tough time with issuance the last couple of weeks. so there's some signs that there may be some issuesthere. but also remember too, hot inflation, we got cpi. we also got ppi which tends to lead c ppi inflation as well and both of those things have elevated readings so i don't think the worst is behind us but

i think we were oversold you can see some of these conditions here. potentially we're a little range bound before we look for new direction. >> bob, i think you agree with jeff on the bond move. what does it all mean for stocks we're getting a nice bounce today. every sector is higher is it technical conditions and you see this as a sort of tradeable rally? >> yes, yes and yes. i agree with what jeff said, bonds have led had way and stocks needed bonds to calm down and have a chance to rally on top of that, less bad covid news out of china. the sentiment numbers, which are screaming for a buy. some of the other technicals that you referenced. these are the things that have ganged up to cause this rally which has been pretty so far >> but i think, bob, you have liked in the past, i was looking at some of your previous appearances on cnbc, and you've liked mega cap tech, right names like google and alphabet,

which have joined the sell-off pretty intensity this week it hasn't been great as a short-term call. do you still stick with that group? >> we haven't owned those stocks and been underweight and short them for some time the only mega cap tech stock we're overweight is microsoft. crossing our fingers on that an underon the rest of them we'd rather play old tech. intel, cisco, ibm. i don't know that i'd marry them forever, but renting them now is okay. >> you still like the financials they vekhaven't had a good run they go down when bonds rally and down when bonds sell off too. >> we do like that financials have gotten it wrong outside the first month of the year. if we don't have a recession, i think the financials will have a nice rally they have recent balance sheets. interest rates are up. could use a little steeper yield

curve of course. the stocks are cheap so we still like that sector. >> and bob, just on the consumer discretionary sector, because it really has been buffeted around, it's the biggest winner. we still have a reopening playing out in the economy but people are spending a lot to travel, paying higher prices some of the hotels and airlines are having the best quarter of their lifetime is that still a part of the market that you like as jeff was laying out >> you're absolutely right, there are parts of the economy still opening up it's among the reasons why we think we avoid a recession any time soon. consumers have a lot of buying power and you're seeing that despite airline ticket prices being up nearly 20% this last month. we're still seeing planes full as consumers are taking the pajamas off, putting their clothes on and getting out and doing stuff. >> no kidding. handbags and heels doing very well this week for the tapestry earnings bob and jeff, thank you both for

joining us on the stock and bond stories. after the break, jim grant weighing in on chair powell's latest commentary that he cannot guarantee a soft landing he'll also break down what it could mean for the market. he's got an interesting call in the energy space you're watching "closing bell" on cnbc. the dow is up 400 points when traders tell us how to make thinkorswim® even better, we listen. like jack. he wanted a streamlined version he could access anywhere, no download necessary. and kim. she wanted to execute a pre-set trade strategy in seconds. so we gave 'em thinkorswim® web. because platforms this innovative aren't just made for traders -they're made by them. thinkorswim® by td ameritrade

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guidance because of severe supply chain issues. the stock is now down roughly 70% since going public a year ago. one of those ipos everyone ways excited about and basically has just collapsed over the last year. meantime fed chair jay powell telling radio program marketplace that in hindsight central banks should have raised rates a little sooner. adding that executing a soft landing won't be easy but there are paths to get there joining us now jim granti always good to talk to you i know you've always been skeptical on fed, this fed, feds before this. i know you said they were very late to this what are the chances that they can execute a soft landing and fight inflation? >> i think small and i think it's notable that only a week ago in the press conference that followed the fomc announcement, chairman powell said the economy is close to or vulnerable to a recession.

last night we hear on marketplace radio it's kind of whatever it takes. it's going to be rough so i think that what drives the fed is not only the analysis of the many hundreds of -- but also a keen sense of institutional pride that the fed was, as you observed, sara, very late to the anti-inflation party when it recognized its error, it still waited three or four months to stop qe. we're doing new qe infusions in march so i think a real risk this time is the fed trying to hue to the newly expressed resolve will keep going any interest of institutional dignity. >> sorry to cut you off. but even if they were late and now they admit that. by the way, i think it was defensible that transitory inflation was driven by supply

chain. even if you disagree with that, it doesn't mean that they're wrong and they can't achieve it, right, especially if they go aggressively right now >> well, i think the transitory was demonstrably wrong, based on results. anything is possible i don't want to dogmatize, the future, goodness knows i'm no position to. but the fact is, sara, they are tightening into a downturn tightening into a downturn a very, very tricky business, right? for literally decades people on wall street, people in our line of work at buy low, sell high trades expect the fed will be there when downturns arrive and will not be tightening but easing this is totally different. it's a very, very hazardous and shall we say newsworthy proposition. good for you, good for me, good for the people who write about it, but a different proposition for those who are implementing it. >> well, it's tough for

investors because i think there are serious questions now, jim, about whether the fed will make a mistake. one way or another either doing too much on the tightening front or maybe not doing enough to control inflation. which is the bigger risk >> i don't think the trouble lies so much with the people at the fed as with the mission that the fed has in its unwanted technological seat has gathered around for itself. i advise the viewers of this fine program to go online and look for a two-minute clip called pseudoscience in it the nobel winning prize physicist says they got no laws. exactly. this dsge modeling, all of these pretentious infusions from the macroeconomics department. no, they are always wrong.

well, often wrong. you know, nothing wrong with -- >> the market doesn't agree with that, jim. i don't think the market is telling you that the fed has a credibility problem at this point. >> well, the fed i think has -- anyway, we disagree. listen, if the market is fearful of the fed, that tells you indeed, as the chairman said last week, that the fed is -- do believe the fed is going to do something. the question before the house is whether it's going to do too much or too little and/or whether having done perhaps too much, whether it will lack resolve, back track and then we're back in the inflationary suit. >> no, i think some of the bullishness that i hear on bounce days is, well, the fed is going to have to reverse course. it's not going to be able to tighten very much because -- we just lost your shot, jim we'll try to get jim's shot back up jim, can you still hear he >> yes, the fed did that, by the

way. the fed shut it off. >> no, that doesn't happen in this country, jim. let's bring it all back to the market and investors because you do write in your note that a lot of people on wall street pay attention to and follow that there are interesting opportunities given what's happening in the market. >> oh, yes. >> so what looks good to you >> for instance, there is the looming opportunity in transatlantic arbitrage of natural gas. that means gas here in this country, north america, is trading for $7 plus per thousand square feet and in europe it's $30 or so for ncf. there are facilities building now in this country and in canada to facilitate the export of liquefied natural gas i'm not sure that much of this has filtered through we've been looking at energy for a long time in a bullish light and think there are

opportunities all over in energy opportunities too in some financials the bank index is down a ton and not every bank is deserving of that treatment and not every business development company is deserving of the treatment meted out to that group. a lot of babies, a lot of bath water. now it's a value restoration project under way. it's good times for value-seeking people who are prepared to do some analysis. >> just to be clear, you like american gas companies and u.s. financials, which have given up a lot of their gains. >> i'm saying that's where we are looking for opportunities. we find some, especially in canada, with respect to gas. there are opportunities for financials in europe as well as in this country. but markets have been driven for so long, sara, by this liquidity and people have been getting a little bit sloppy about what are the business fundamentals.

>> jim grant, always good to talk to you. thanks for rolling with the punches there on the technical issues grant interest rate observer. the rally is going strong. we're up 445 on the dow. s&p 500 zooming 2.4% every sector is higher consumer discretionary and jim grant's energy sector are the leading ones right now the nasdaq coming back, up almost 4% right now. still lower for the week but making up for some of those losses. after the break, mike santoli taking a look at the four quality growth stocks that are trading at a discount to their long-term valuations after this month's market rout. check out some of the top search tickers on cnbc.com 10-year yield right on top it's actually selling off today. yields are a little higher but we're not going back over 3% on the 10-year. there's twitter after elon musk puts the deal on hold down 9.5%. tesla rallying, 6% higher. apple coming back after a tough week, 3.5% and so is the s&p

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welcome back to "closing bell." i just want to show you the gain in the nasdaq come p composite u 4% right now at one point yesterday the nasdaq was down about 8% for the week right now it's only down 2.6% because this is a monster comeback that we're seeing and led by a lot of the biggest losers ev like lucid up 15% zoom so the state-at-homes, some of the crowdstrike holdings, we've seen all of these areas of the market get pulled into the selling recently on higher rates, including those cybersecurity names. they are doing very well today, up double digits we've got a news alert now on twitter. deal news playing out on twitter. julia boorstin with the details. >> it's all playing out on twitter, sara. twitter's ceo tweeting a series of tweets weighing in after

yesterday pushing out two senior executives at the company and also after elon musk posted that tweet saying the deal was temporarily on hold pending details. he tweeted out while i expect the deal to close, we need to be prepared for all scenarios and always do what's right for twitter. i'm accountable for leading and operating twitter, and our job is to build a stronger twitter every day. he also talks about how he's going to try to bring more transparency to the work that they are doing and why he's working to manage costs and also why he made those management changes, saying that they're not just working to keep the lights on but they want to make this the best company possible. we see twitter shares, though, down more than 9%, sara. >> it kind of makes me feel bad for the guy. he's following musk who appears to be doing this on twitter. usually if the deal wasn't on hold, wouldn't you see both parties agree to some sort of press release? >> well, yeah. this is certainly

unconventional i would say that is what you would expect with elon musk. yeah, he's trying to figure out how to run the company he's having to react to what elon musk is tweeting out. then there's this question of what does the future hold in an industry where everyone is concerned about a potential advertising contraction in light of inflationary pressures and everything else. so a lot of pressure right now and we don't know what's going to happen to him after musk takes over. >> well, it's not helping the stock, down 9.5% julia, thank you for the update. the washout over the past few weeks means some growth names are trading at a pretty good discount compared to their average price-to-earnings ratios the last ten years one high-profile name isn't quite there yet. mike santoli explains in today's dashboard. >> definitely not a trading call but when you have this aggressive widespread selling that's been sweeping most of the indexes lower, you do have some values start to surface. this i would call various

quality buckets out there that i just sort of scanned and picked a handful of stauocks in differn sectors. charles schwab is an interesting one. always trades at a premium, very high quality financial and now you have it as low as it's tended to trade over the last decade autonation very, very keep looking. obviously fundamental issues with new and used car dealerships. and best buy we can quibble with these and say the earnings are vulnerable. we can say cyclically it's not a good time for these stocks but considering we've been in all sorts of markets over the last decade, it shows for a longer term holder this is the kind that makes sense. one of the exceptions is maybe the highest quality company out there in terms of balance sheet and steadiness of the performance, that's apple. that has not yet come back down. remember how cheap it always was back in the early iphone era we've got up to almost 30 times

earnings you're back below 25 it's been a repository of people find safety. buffett is in there, he's not selling. so this is not the areaof the market that has so far looked as if it's cheap. >> i feel like it's different because they have gone through so many evolutions as far as where their revenues come through. the whole services component gets priced in. >> nobody says it's got to go back down to 12 and 13 times earnings, but the question is does this now rebuild the margins of safety in the stock that's the question. >> we'll see you soon in the market zone. america's baby formula shortage making national headlines and bringing to light the real problem with the supply chain problem. and what the white house should be doing to fix the issue. we know they are trying. we'll be right back.

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the dowes up about 500 you have seen the headheadlines. parents across the country struggling to find formula abbott labs shut down a factory after a potential bacteria outbreak and still hasn't reopened that just aggravated the shortages created by supply chain challenges as of sunday,43% of baby formula nationwide is out of

stock. president biden met with retail and manufacturing executives yesterday about it, including walmart and the maker of enfamil. the fda will outline a plan to streamline imports of infant formula. joining us now is mia funt of byheart. it is the first new infant formula manufacturer in over 15 years to be registered by the fda. welcome. thanks for being here. >> thank you wonderful to be here. >> i can't imagine what it's like entering this market in this country at a time like this how fast can you scale your production is that the question >> i can tell you, you know, we have launched in an unprecedented time in the industry, in the midst of a crisis, when parents are more stressed than ever i'm a mother of three with a 10-month-old, simone, i'm in it. the idea of any parent not having access to food for their babies, especially infant

formula, the sole source of nutrition for their babies is just unfathomable. we are so proud that at this time byheart can show up for parents as one of only five infant formula manufacturers in this country to do everything we possibly can to support babies with highest quality infant formula. but actually byheart started five years ago before a shortage with a real commitment to innovation, to quality and to use the latest nutrition science and cleanest ingredients to create a formula that got closer to breast milk than anything before our formula was -- the launch of our formula was so highly anticipated because the industry hasn't changed in decades. >> right and i think we have -- not to cut you off, but i think that this shortage and this crisis is really shining a light n the industry, which is this sort of bizarre oligopoly of three

stocks there's abbott, which is the maker of similac they dominate. nestle, which makes gerber and of course we were talking about meade johnson as well. how did the industry become like this is it powerful lobbying? is that why we don't import from other brands from other countries and why they have this stronghold on the market >> you're absolutely right that this is a category where 90% has been dominated by three big players. and every new entrant has gone to the single contract manufacturer in the country, which has given them quite limited control over their supply chain and also meant that they could only make slight iterations to the recipe on the shelf. this is a very meaningful dynamic in the market. with our launch, we became the first new infant formula manufacturer in over 15 years and that's because the path to

truly innovating is incredibly rigorous this is the highest, most regulated food in the world, rightfully so because it's the sole source of nutrition to innovate it requires clinical trials the barriers are incredibly high so we took a path that no new entrant has because we knew that the only way that we could truly change the dynamic in the industry and innovate was to own our end-to-end so we acquired our manufacturer, directly sourced our ingredients, own our product development, ran the largest clinical trial by any new brand in the last 25 years but that is really something that no other new entrant has been able to do in the last 15 years because the barriers are so incredibly igh. >> it's amazing actually that you managed to do that, given the stronghold that these companies have so mia, what would you advise? the white house is clearly thinking about this, talking about this we saw speaker pelosi make some headlines. they're looking at their options

and trying to increase imports from other countries what would you suggest >> all i can tell you is that at byheart, you know, we understand that this is sole source nutrition for babies and we take this very, very seriously. and i know that the whole industry, every player, every stakeholder is taking this very seriously and rightfully so, because this requires utmost attention. this is an incredibly urgent situation. we launched in the middle of a national crisis where so much formula is out of stock, where parents are more stressed than ever, and that has led to unprecedented demand in our business the number of byheart families is spiking more and more every day. the dynamic is changing hour to hour our launch has accelerated dramatically i can tell you at this rate over the last few dayswe have exceeded every case we mapped for the entire year in just

three months we had outpacing targets we had initially for year three. >> and do you have the supply? you're able to get the supply, all the ingredients, given all the challenges around the world? >> i can tell you that our most fun fundamental responsibility is to support as many families and possible and make sure that a baby that starts to drink byheart formula can continue to drink it because we own our supply chain, our manufacturing and our direct sourcing, we have more control than other new entrants and we have control over things that are incredibly important and throwing everything we can at this problem we're moving from a 24-hour, five days a week shift to 24/7 we're hiring relentlessly. we added a whole new shift we're pursuing expedited expansion for our facilities we already invested $20 million. we're investing another $30 million in our facilities. we're adding customer service

because parents need support in this time. nothing is off the table but we can't do it alone we're rallying every kind of stakeholder, industry, state and federal officials, regulatory bodies we're in a national crisis for the most fundamental food. >> absolutely. >> we started this work before the crisis when we acquired and upgraded our own facility and worked to build best in class manufacturing in pennsylvania with the incredible support of lawmakers but we continue to work with them and we are so grateful that there's now so much attention, so much needed attention on this category. >> well, mia, thank you for joining us to talk about some of those efforts and the new innovation i could go on and on about this. i have lots of thoughts as someone who felt very pressured and the whole pressure around breastfeeding and lack of research around infant formula i know why you're doing what you're doing so thank you, mia funt

we'll continue to talk about it because it is actually a crisis right now. thank you for byheart. here's where we standing in the markets. up 2.8% on the s&p 500 it's a rally and it's holdings we're still down for the week but we are cutting into those losses now 2.6% lower on the week nasdaq 100 really zooming higher up 3.5%. a lot of the beaten-down tech names including some of the biggies like apple, nvidia, amazon and tesla all taking us higher the market was all about inflation and the impact of inflation on corporate profits it could become more carle next week when several major retailers report earnings. that's next.

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segment called top of the week the biggest potential catalyst for next week. this week it was all about inflation. april cpi showing prices jumped 8.3%, which was a moderation from the month before, but there were some troubling trends showing inflation is now spreading into parts of the economy, like services the market didn't take it well the question now, will those price increases translate to tighter budgets? next week's highlight will be big box highlight earnings tuesday walmart and home depot wednesday we'll get target and lowe's walmart and target have been outperforming the market by a wide margin. home depot and lowe's not so much they have underperformed on bets that the housing market is going to soften. the question is, is the sting of inflation starting to cut into consumer spending? university of michigan consumer sentiment just out showed a 10-year low. whether the u.s. consumer is healthy enough to withstand higher prices and higher interest rates is going to be the key investor question of the moment we'll see whether we can avoid a

recession. when we come back, affirm a big winner on the back of results. earlier this week dan dolev explained why he was so bullish on the stock despite the recent fallout in fintech, remember this >> the amazon deal that they have is massively ecretive and i think that's going to catch all these bears by surprise. >> turns out he was right. up next in the market nedazo, n tells us how much more the stock can rally. we'll be right back.

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we are now in the "closing bell" market zone. mike santoli is here to break down these crucial moments of the trading day, plus the latest

on the elon musk/twitter drama and dan dolev on post earnings rally. we are seeing a nice rally to end the week every s&p sector in the green. the nasdaq is the outperformer mike, you don't have to look far to see the comeback stories today. you wanted to highlight the chips, the semi conductors, because they have been an area of pain basically this year. but outperforming this week even in a down market is that a bullish leading indicator? >> making an attempt i think everything is very contingent i didn't inference, any judgment you make about the action today you have to contextualize it but you look for glimmers on a one-week basis and semi conductors have taken their pain maybe they're trying to find some demand from longer term holders. we have to take a look as the sting from some of the really obliterated sectors of the hyper growth tech stocks, the highly shorted names which

are bouncing the hardest today i think the bigger question or bigger takeaway is we did see some indications of selling exhaustion you saw the tape get stretched pretty far the nasdaq dropped half of its entire rally a very logical place to bounce we have to see if it's more than just a bounce. so far it's okay but we can still go up 7% from here and it still looks like a reflex bounce so that's the zone we're in. check out shares of twitter. it is the worst performer in the s&p 500. shares falling after elon musk tweeted that this deal is temporarily on hold pending details on the number of fake accounts on the service. that sending shares of tesla higher, perhaps easing the fears about musk's plan to pledge tesla stock as collateral for the deal musk followed up a few hours later saying he's still committed to the acquisition, and then the twitter ceo tweeting this hour that he still expects the deal to close. let's bring in yousef scully

how do you cover this stock as an analyst right now, not knowing what's happening here? >> well, you try not to react to these tweets at 2:00 a.m. every few days but it is what it is and musk is no stranger to these controversies. the way we'll look at it, as you know, we downgraded the stock right after the deal came through, telling investors take the money and run. we think this is the best you're going to get since then there is a chance that musk may be getting, you know, kind of some second thoughts either by himself or hearing from investors that he's going to, to try to raise the $44 billion that he needs to to close this deal. and there are really two issues. one is about potentially, and this is important, the numbers of users being not correct i.e. there is fraud here and if he's able to prove that, and we don't know exactly and we haven't heard back from twitter

on the topic, but if that's anywhere near true, then, you know, all bets are off and the other -- >> is that true? i mean you're not a lawyer, youssef, but i'm sure you looked at the contract. is it contingent on reliable public information that twitter put out? >> what's interesting is that in the contract, twitter is giving itself cover they're saying it's less than 5% but these are internal measures that we're using it could be a little higher, we don't really know, right so that's specific in the contract the question is can he go back and say that's not enough. it's -- the actual number is 10%, it's not 5%, and therefore the little bit off is not enough to give you cover. to me that's real important. and maybe even more important is at the end of the day he really wants this deal to happen but maybe at a different valuation when he came and made the offer

and offered 54.20, that translated to roughly seven times revs back then snap was at 10 times since then the group, the internet media group is down 24%. 24%. so maybe he's getting second thoughts maybe the investors that want to be part of this deal just think that the valuation is too rich in this kind of environment and he's trying to remedy that. >> maybe it's 40 now. well off of where he said he was going to buy it at 54.20 youssef, thank you the nasdaq sharply higher today. affirm is near the top of the list our next guest said he was still bullish on affirm. his call is looking like the right one, at least today. shares are up more than 30% after the company beat estimates for the first quarter with a smaller than expected loss and revenue beat dan dolev joins us dan, we gave you some grief a few days ago for recommending some of these stocks that have been hit so hard

so now we'll give you a victory lap on the call for affirm, at least on the quarter do you expect this to reassure investors into some sort of longer turn-around >> yeah. first, thank you so much i appreciate it for that but look, i actually think, and i'm not a strategist, but i actually think is the bottom of fintech. not for everyone, but for high quality stocks and we call this fifo, first in first out. it's the first to benefit from covid and it's the first to come out oftough covid comps and we're expecting a nice rally in the second half. i think you're going to see helping square, helping some of the other names, robinhood but affirm today is just the beginning of a nice rally to the second half. you know, it's a great business and people realize that. there were a lot of worries heading into the quarter. >> somehow i think that mike

santoli will take the other side of this. >> well, all i'm going to say is obviously the worst fears were not realized and things were better than many people were braced for in terms of the numbers right here but it doesn't change the bigger picture that at least right now in this market moment, fintech is being treated as more fin than tech. so it's really about the credit cycle, the credit experience that these users have and what the user economics look like from here. so it very well could be that the worst is over but forget about the highs. they're down 80% share price-wise so i do think that they could bounce really hard from here and still kind of be in the penalty box from the market. >> it's true, dan, so much of what is happening in the market now isn't necessarily being communicated or heard by companies. he's saying we didn't see any consumer weakness but we know that is coming with higher interest rates squeezing everything from home loans to auto loans so if we see a real cycle in the

credit cycle, what happens to an affirm >> yesterday they were saying that they're not seeing any weakness remember, they're sitting on 62,000 restaurant point of sales in the u.s that's a very positive, optimistic data point. let me say something specific about affirm and this is very important. the highest quality borrowers, the percent of them, kept going down every quarter, up until this quarter and it stopped, which means that they were able to basically sustain the amount of highest quality borrowers now, if things turn south on the economy, that's not an affirm issue, that's a broader issue, that's a credit issue. but what i'm hearing, the dl delinquencies coming down are all positive data points i think the economy is much stronger and this business model is much stronger than what people are given credit for. >> dan dolev, thank you for

joining us reiterating the bull call on affirm and broader fintech. the dow is up about 400 points as we head into the close. joining us now, someone else who had a good call on this show, katie stockton on the technical analysts analysis. we had you on during a bounce and you were not convinced we are having another bounce today. are you a buyer? is it time for an oversold rally or are you still not convinced >> i think it is an oversold rally an we certainly welcome that i think it is more significant than the last one that we saw meaning that it should last a couple of weeks. based in part on the indicators for those who know them and we're expecting a little upside here it should see some high beta outperformance just with that shift in sentiment, which as you know is extremely bearish at this point yet we're not calling this an intermediate term low and that's because we don't have any

improvement or those oversold buy signals on the weekly charts and certainly not on the monthly charts, meaning that the intermediate and long-term posture, the market is still very tenuous we'd rather than buy into this bounce today, we'd rather recommend folks wait to reduce exposure and keep to that tight stop loss discipline to manage risks. >> also want to talk bitcoin with you and see what the charts are showing because we did see one day where it looked like it was crashing we got below 26,000 on bitcoin and there were all sorts of concerns about what that might mean for the system now that it has grown so much into so many different product areas of the financial system katie, what happens next >> well, people are definitely treating it like a risk asset and it did feel like a little bit of a climax. we have the same signals so a short-term oversold buy signal and that came at support of

roughly 27,200 and it was tested and tested successfully so for bitcoin we're looking for a short-term oversold bounce, but within the context of that weaker, intermediate and longer term momentum posture. and these breakdowns are across risk assets. the breakdowns to me suggest that we're still in for more volatility over the summereven we know already that we're in this higher volatility cycle and to us while volatility may contract for a couple of weeks, that's part and parcel of what we've seen already and we're just expecting a macro shift as that happens, but that should be temporary. >> mike, i'm curious what you think about bitcoin because there's some skeptics who say -- and these are typically the haters who say that this is a classic sign of froth in the market until we see a bigger breakdown in bitcoin and see where those structured products are buried and where they're causing a lot of pain across wall street, that this big sell-off is not going to be over. >> yeah, there's a big what-if

question around it there's a larger observation you can make which is so much of the excitement was truly about price momentum and greater participation in mostly the trading aspect of crypto as opposed to all of the promises of what it was going to become and so maybe you're creating some kind of a test of exactly what's there underneath, and i just don't know at what price that gets revealed. >> katie stockton, thank you for your calls two minutes to go in the trading day, mike. what do you see in the internals? >> very strong pretty much all day. a lot of people will scrutinize the breadth numbers during this rally to see if we get a 90% of all volume to the upside so far that's what we're seeing. many people are going to check off that as a box that says, okay, maybe this rally has some legitimacy it doesn't mean the low is in, but it does give some credence to people who feel like the risk/reward is better in the short term move on to some of the consumer

names. staples has been outperforming consumer discretionally very dramatically you see that quick pop-up, very oversold relative to the rest of consumers. see if that has any further lift to it. the volatility index not spiking above 35 this week it's now giving way and clearly maybe it has some room down into the low 20s if the market stabilizes into expiration next week, sara. >> i don't know if we can pull up the ark innovation, rk, up 12%, 11.6% speaking of companies and areas of the market that are rallying hard today that have been hardest hit, this etf is still down about 54% year to date but look at the rally today. robin hhood is a keer y part oft overall it is a solid day in the market the s&p 500 up 2.3%. it's still down for the week about 2.5% but we were down double that heading into today and it is a sixth down week for

stocks in a row, seventh for the dow. the dow industrial average is up 453 points into the close. most of the dow stocks are higher the bigger contributors to the gains are nike, salesforce an american express the nasdaq closing out with a gain of 3.8% strong comeback rally after another tough week for investors. that does it for me on "closing bell." have a great weekend now into "overtime" with scott all right, sara, thanks so much welcome everybody we're just getting started here. in just a few minutes i'll be joined by someone who says the s&p 500 will hit new all-time highs next year. you heard me say that right. new all-time highs next year despite this sell-off and the bear market. we begin, though, with our talk of the tape. the hardest hit area of the market, technology, has fallen and it now presents a generational buying opportunity. not my words, the words of dan ives let's welcome hi