stock was trading above $2,000 today 108. get used to seeing that on your screens. that's around the new territory we'll be following. >> if you woke up this morning and looked at that and thought it was a $100 stock -- >> it hasn't been that bad. >> thanks for watching "power lunch. >> "closing bell" starts right now. >> see you tomorrow. stocks give up sizeable, early gains. the dow had been up as much as 350 points and we are sitting near session lows right now. the most important hour of trading starts now welcome, everyone, to "closing bell." i'm sara eisen take a look at where we stand in the market the dow is down about a third of 1% s&p down about half of 1%. wti crude is popping 5% today, lack of any concrete deal from the saudis after president biden's trip energy is the top performing sector materials and consumer discretionary all positive

health care is at the bottom of the pack in the s&p along with communication services the nasdaq down half a percent check out apple, making a sharp move lower midday after reports saying the company is planning to slow hiring and spending for some teams next year we'll have more on that move straight ahead also help bring the overall market lower can't-miss interview with brian moynihan fresh off of earnings his read on the consumer and the investing climate straight ahead. plus an abysmal print for home builder sentiment we will talk to ivy zelman about the latest data and her outlook on the sector. let's get straight to the market dashboard. the morning rally evaporated, mike was it the apple news that triggered it >> the apple gave it the final shove for sure the rally was losing a little bit of its energy. i think some of the headlines from europe talking about the still risk around the natural gas supplies with the heat wave

and everything going on there wasn't helping also treasuryyields kicked higher and that put bulls back on the defensive but it doesn't change the overall picture too much at the highs of this morning or midday, the s&p was sort of threatening to break above that trend line since april, so it's been pretty decisively below that for a while we've gone a month without an all new 2022 low we did also do that in april, i could say, so it's not as if that would have freed the market from this downturn, but it does show you a little bit of wait and see and a lot to prove for the bulls right here the one area if you look at all the factors, fundamental, technical or sentiment, sentiment continues to be the one that is most consistently suggesting that bulls have a shot here. take a look at one measure from deutsche bank, which is stocks with heavy call option activity. so these are the ten favorite stocks that people -- remember back in 2021, it was an automatic win if you had these

stampedes of people speculating on upside, these stocks did well this is the performance of those stocks of the right now that has completely been wrung out of the system it's no longer a game where you can rush into tesla and nvidia and get the stocks up. it's not a major thing, sara, but it tells you a different behavior, a different character of this market very defensive and obviously people are a little more concerned about risk than the quick buck on the upside. >> where are we -- one of the big themes coming into earnings season is that the estimates were still too high. so where are we on the still too high estimates for '22 and '23 as a number of targets have been cut, especially in tech. >> they're coming down i would say slowly outside of energy, they have been cut appreciably for the second quarter we have to get another week's worth of earnings estimates coming through 2023 is still making new highs in terms of the forecast consensus number the thing i would always point

out here, though, the normal behavior of analyst's estimates is they start too high and then get ratcheted lower. most years in history the market is higher. that in itself doesn't tell you that the market is going down. if you have year over year higher earnings, even if they're lower than expectations, that's probably not in itself going to undercut the market. >> i want to point out what's happening intraday with the euro versus the dollar. we point it out when it goes the other way but we are seeing significant dollar weakness. clearly it was due for a snap back after relentless march higher, but i do wonder if we're at the point where the dollar strength has really been hurting the stock market and this removes a barrier at least if it can continue to fall >> it's been extreme i do think that was one of the pieces that had the market a good deal higher a lot of this is the apple effect on the indexes that we're seeing in terms of the downside. the equal weighted s&p is about flat after being up a fair bit

yes, i do agree with that. you had 2-year treasury yields kind of tame and they popped a little bit that plus dollar weakness was helping the market get its footing. you also of course have energy bouncing today too so there's a lot going on that helped the market over the last few weeks that now might be at a point where it's going to get tested. >> we did take out that 100 basis point hike in july. >> exactly we priced it in for a couple of hours, i think. >> and then the fed speak came thank you, mike. we'll see you in the market zone. we'll turn to the banks. goldman sachs is higher after beating wall street's profit expectations for the second quarter, though profits did fall 48%, driven by declines in investment banking revenue and then bank of america hanging on to gains, seeing a similar story but the bank did beat on the top and bottom line. saw net interest income surge 22% on rising interest rates and loan growth. joining us now in a first on

cnbc interview is bank of america ceo brian moynihan brian, it's great to have you on the show welcome. >> it's great to be here, and congratulations taking over, now that you got rid of wilf we can have some fun on the show. >> exactly i always leaned on him for all the banking expertise. i'm all alone here brian, i'm glad you're still on with us. so first on what wall street liked, it sounds like the net interest income that's tied to the fed rate hikes, that's forecast to be a huge help for earnings what do you guys expect there? >> well, we had told people last quarter earnings that we'd get 600 to 700 million and we ended up getting 800 million we told them for next quarter, 900 to a billion then we said it would be a like amou amount what that is is the driving of deposits from our core customers and investing in the loans that are growing back or in the securities all that benefits by a higher

rate structure most of my co has been a very low rate structure what rates go up, we make a little money. >> and what is your expectation on how aggressive and how much more the fed is going to do? >> well, when we calculate the numbers, i just gave you, we use the market's expectations of 75 basis points and 50. the interesting thing is, and i heard you and your colleagues talking, two days ago, they have to go faster and now they can go less this is data dependent and meeting to meeting if you look at our customer base, the consumer is posing the greatest benefit to the fed and the greatest trouble in that they're employed they're earning money, spending money, have lots borrowing capability and they have more money in their accounts the end of june than they had at the end of may so that makes the fed's job tough because they're trying to slow down this wonderful

thing we have called the american consumer, whose spending helps our economy and it's up double digits for the month of june and frankly for the first of july over last year's july. >> that's my big question on your earnings report your earnings and your guidance, brian, say that things are okay. and yet the capital markets, the bond market, the stock market, the currency market says that things are not okay. so how do we square that >> well, it comes a little bit if you're heavily involved in the markets business, it's pretty tough times right now the worst first half for bonds and stocks in 50 years or something like that. andy and katie in private banking, that's tough. if you're in the consumer banking and lending business, the teams are pretty good. the market is going strong and our loans grew $100 billion year over year and are back above pre-pandemic levels. so like anything, it's nice to have a balanced company so if people are worried about the

markets, we've got nii and fees and consumer and global transaction service to make up with that. so we were just down a little in revenue with a billion dollars in the high corporate client base going away, they still almost made it through nii growth, fees, loans and deposits so it's wonderful having a mix of businesses that we have and yet it's tough in the capital markets. you and your colleagues talk about it every day and wedon't see anything really different. >> i'm wondering about the message that the market is sending when you are seeing strong loan growth and a strong consumer and are not seeing any major signs of recession i'm wondering about that disconnect and the outlook for the economy? >> well, that's what people get paid to do in the trading environment. but simply put, the reality is the fed has to slow down inflation and take it on, and they are going to take it on they have driven rates up at a

pretty good clip they have to keep going until inflation breaks that's what the market is going to be on tender hooks every day as they watch whether inflation is peaking or flattening or turning down you're seeing housing slow down dramatically why? because rates are up but the 60 million consumers that have a mortgage today are locked in. they don't go up it's all new home building and new home buying that slows down. you're seeing that happen. our mortgage originations were down people have the equity and home. but the core debate is can the fed slow the economy down, which they have to, and all the economists, including ours, predict a slight recession, but it's going to be hard for them to slow it down given the strong employment unemployment is at 3.6 you've got to get it up a lot higher so that's the tension the market fights every day people should keep in mind

that's not the worst problem to have reasonably good corporate profits are not the worst thing to have. >> so you're sticking with your relatively optimistic take sounds like you're in the soft landing camp, which has been interesting. today we've got a report that apple is going to slow down on spending to prepare for tougher times. you know jamie dimon about a month ago said he's bracing for an economic hurricane. you sound much more sanguine than what we're hearing. >> what we're talking about is not what's going to happen in '23, or our guys say at the end of '22 it may slow down or go slightly negative. but the reality is it's a much different environment when you have these fundamentals that are strong there's geo political risks and other things we all know about, but that's different from the core america, what we're seeing in our consumers today and that's the distinction we make, don't test people on

what they say they'll do but in two weeks of july so far they have spent 11% more money than last year and transactions are up 6 or 7% but transactions wouldn't go up unless people were spending money on vacations and other things they weren't doing last year at this time in the same amounting of the right now we're seeing we don't see it and most people don't see it right now. what they worry about if the fed does its job, you have a higher and higher probability it could tip over into recession. no matter what we're going from a 4 or 5% growth in the economy last year to somewhere pretty low this year and next year. all that doesn't feel good because the economy is slowing down and that's what you're seeing out there. >> you mentioned the solid double-digit loan growth that you're seeing. why? what is driving that how long do you anticipate we'll see it >> well, it will normalize as the recovery normalizes. remember, we had a shoot up in loan growth in 2020, then a big

drop when people paid off those loans after the panic borrowing. capital markets opened up and everybody stampeded to it and now you're seeing it normalize so you're seeing the loan production across our consumer and middle market. frankly i think we're growing share, the team is doing a great job. but by and large, we have outgrown the economy we have outgrown the economy before the pandemic and now after it we're basically back to trillion dollar loan numbers and so most of it has been in recovery people using lines in small business and middle market businesses, using their lines at the rate they usually use it, has fallen 3 or 4 or 500 basis points now, are all corporate clients and commercial clients worried about what's going to happen when the fed fights inflation? are they worried what could happen to their profit margins, absolutely but they're trying to manage through it and that's what's going on right now as you talk to them, it's the

classic thing, i'm worried about the future but i feel pretty good about the current environment. that's the interesting dialogue that goes on every day when does that tip that's when the fed can get inflation understood well enough people can plot a path forward of course people are being more careful about hiring and spending because why wouldn't you be. >> so kwhat about the markets group. yours was a little weaker on capital markets and invest banking. on what point do you cut back in this economic environment or are you preparing for a rebound? >> well, that's -- in the investment banking fee category we maintain our number three position we were three overall before and everybody had a massive drop of 40% or whatever it is. we're not cutting back these things go up and down. and by the way, the way compensation works in those environments, the compensation is relatively self adjusting but the team that we've hired for corporate investment banking

is very strong we have this added advantage that we get a lot of business from our middle market client base led by wendy stewart. that tends to have more resiliency to it nobody right now given the capital markets resiliency over time if you go to true trading, we're up 10 or 11% year over year on trading fixed income, macro was good so jimmy demar and team, we have invested heavily in our balance sheet. they're 200 billion dollars more than three years ago and the team is doing a good job and jimmy is doing a good job driving it so we feel good. you won't hear us cutting back this quarter we hired 7,000 people outside our interns, we're down 6 or 700 people in head counting. that's to maintain staffing and take it out of the areas, our flat expense management thought process drives our efficiency and allows us to invest it in

the future >> i know you get a question from mike mayo on the conference call you didn't change the expense guidance he asked why don't you hedge with the expense guidance. you're projecting higher revenues and not changing expenses in an inflationary environment. how do you do that how does that work >> well, the revenue is coming from the nii, the spread revenue, which largely comes in the consumer, commercial bank and wealth management businesses it comes with very little cost attached to it you don't need more commercial lenders to generate the spread that comes into the business we have basically been sub subsidizing our customers at the zero floor on deposits for a couple of years now. it went on for a bunch of years before rates rose in '16, '17, '18. as we recover that, it doesn't take any expense the most important thing is our discipline expense management culture. we just completed our fourth

quarter in a row now and we feel very good about what's going on and how we manage expenses investing $3 billion plus in technology more financial advisers, more commercial bankers, at the same time, taking expenses out through process efficiency and effectively. if you manage your head count ahead, you can plan that out we sit there and manage head count by months for 36 straight months ahead whether that's exactly right three years from now, people are working on it every day to say how do we reduce head count out there and invest it in something else and that's what we try to do. >> i want to bring up something else that stood out which is the regulatory expenses, $425 million in costs related there are two. the messaging one and the one cnbc had been looking into and investigating about how you handled some of the unemployment disbursements during covid why did you settle on this one and is there going to be any future impact on bank of america and how these federal issues get

handled? >> well, the future impact -- the unemployment was from a couple of years ago where we put in filters to save taxpayers money. people started taking advantage of the situation and defrauding and applying for multiple cards. we went to help and some people got caught we've reimbursed them. that's what you do you get these things behind us and move on. on the device thing, as you can see that was a streetwide streak that you're well aware of. it's behind us and we have to mang sure that the team does a great job in the future but frankly i'm very proud of what our team did in the pandemic whether it was ppp, distribution of other benefits, waiving hundreds of millions of dollars of fees so people could get their stimulus payment without having to pay their outstanding overdraft fees we've changed our overdraft posture more favorably to the consumer to the point it's

pretty modest in terms of what we do. it's nice to have those things behind us. >> you're giving a lot of credit to your managers and your team, brian. final question, just listening to you, you're a good snapshot of the u.s., right huge reach on the consumer you mentioned housing. is the market -- are investors too, do you think, worried are they freaking out too much about a recession? listening to you talk about the consumer, it doesn't feel like we're on the brink of anything dramatic as far as a downturn. >> what i always say is we worry about everything we worry about all the parade of horrible that can come from china slowing down to europe having a problem because of the russia/ukraine war to the pandemic resurging we've got a thousand scenarios we stress test our day every day. we are very careful in underwriting you see that in our stress test results. ten out of 11 times it's been

run, we're the lowest losses all that's terrific. so we worry about all that the reality is as you look at what's going on right now, you don't see it now unemployment, 3.5 to 3.6 spending strong. you know, more money in the accounts, more borrowing capacity all the things that drive the u.s. economy, two-thirds consumer driven, are still in good shape the question is the fed has to take on inflation and that's the tension going on we'll see that play out. if we all do our job and do capitalist things and hire and invest and spend, i think it will be easier to get to a soft landing or correction of the inflation rate without causing a deep recession our team, the $700 million that we spend, that's largely due to the issues of more technical issues but the thing i'd watch is watch new claims for unemployment. still very low still very low given people's views of the economy it hasn't changed much >> well, that makes me feel a

little better. brian, thank you very much for taking the time today on earnings. >> thank you, sara good to see you. >> brian moynihan. tonight on "mad money," much more on the banks when jim cramer is joined by david solomon, another earnings winner today. from jim's brand-new set right here at the new york stock exchange look at that you won't want to miss this special episode, 6:00 p.m. eastern time it's good to have jim here all afternoon long it's a special treat. up next, netflix kicking off faang records tomorrow falling after nine out of the last ten reports we'll ask michael nathanson what he's expecting from the print. the dow has recovered a little bit, about 50 points in the last minute or so, down 53 we'll be right back.

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you need all this content to keep driving engagement. so i'm not feeling any more bullish today than i have been the past couple of years what i find intriguing is you're starting to find other companies acknowledge the high cost of competing. like warner brothers discovery has hinted about that. disney has walked away from some sports rights in india maybe we're in the beginning of a sea change of how companies will invest in streaming but it's early days in that sea change. >> in other words, we'll see a lot less investment? >> i think, in other words, in the next one or two years people will rethink how much money they're going to invest in the space as they realize that growth is slowing. they need to find another way to drive profits and spend less i think we're in the first couple of innings from that. a year from now it will probably be more obvious, there's less spending in the sector. >> netflix does, to be fair, make money, right, michael and they have this grand plan of an ad-supported model.

does that change anything for you? >> so when you say make money, like a cash flow the company will do a billion dollars on 30 billion of revenues, right? so that's not a great cash flow margin the pin to advertising we think is the right thing to do it's smart we want to understand tomorrow how they're going to price the ads here how much lower will they bring the price down but i agree with you, the move to advertising to us is smart. they stopped investing in as many films they made 70 to 80 films last year and that's probably 30 to 40 too many. there are things they can do to improve the cash flow. it's the cash flow that i want to see really start to grow. >> the expectation is low, down 68% so far this year and expecting 2 million subscriber loss it seems like "stranger things"

was a hit and a lot of people watched. >> we were originally going out with a higher number we stated guidance at negative 2 million but we thought originally it's going to be worse than that. "stranger things" came and what they did was they kept two episodes for july, right so people didn't turn june 30th because they want to watch the rest of the season they realize that you need to spread it out over 13, 14 weeks. i think people like our viewers don't get too bearish on the subscriber print because of "stranger things." third quarter is interesting and fourth quarter will be tougher but what i've always done is stepped back and said what's this company going to earn any volatility around subs definitely moves the stock but our issue has always been what's the earnings potential of this company

and that's why we're still neutral because we probably think it's a 12 to 13 dollar earnings company >> where does it fit into the consolidation picture, which everybody still expects more of that coming in the streaming world? it's interesting that it has a tie-up with microsoft which i guess makes a little sense because google and comcast are more direct competitors. but where does netflix fit in, in the future, when you look at how all these models are changing >> yeah. so our view is there has to be consolidation. you've got three media companies, comcast, nbcu, warner brothers, discovery and para paramount. you probably need to get down to two or three the only tech company that could buy it would be microsoft. up until this point in time they have shown no interest in video, right? so it's interesting that they moved into partnership with them

but to me there's no history there. i understand why they bought activision they have a games business so netflix can be the odd man out with its valuation i still think that you will see those media companies talk about they have to get consolidated. i think netflix if it does get cheaper, you could start adding some of the other older media companies into the mix but they can't buy it at this valuation, it's too diluted at this point. >> michael, great to talk to you. >> good seeing you, sara thanks. let's give you a check on the markets, down 150 or so. so we have taken another leg lower in the last few minutes. the nasdaq is down about 0.7 of 1% energy is still holding in there. we've got a 5% rally or so on crude oil. that's helping energy, consumer discretionary staying positive health care getting hit the hardest, down 2%. still to come, home builder sentiment just showed its second worst monthly drop in the

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check out today's stealth mover, wd-40 davidson upgrading the maker of lubricants and cleaners from buy to neutral hiking its price target to 205 from 169 citing increasing confidence in the long-term sales growth strategy. its stock is up 7% home builder sentiment plunging last month amid a spike in mortgage rates up next, ivy zelman on how investors should be trading these stocks right now

stocks sitting at session lows right now we're down 200 points on the dow. this morning home builder sentiment plunged in july as buyers pulled back, marking one of the largest single drops in the survey's history meantime the home builder stocks, lennar, kb home, d.r. horton seeing their shares fall 30% on the year. they are down today as well even though there is some strength in the consumer discretionary group. some of the travel names are doing well joining us now to discuss, ivy zelman ivy, this was an ugly drop in home builder sentiment where are we in the process of

the housing slowdown, do you think? >> first, thanks for having me back, sara i would say that the rate of change has been pretty dramatic and i think we're just in early innings. we've seen deterioration that really started in may and the acceleration of that negativity has just been continuing through early july i'd call it mach speed in some markets. it does vary by market, so we see the biggest rate of decline probably in phoenix with the southeast and florida markets holding up better. so it's not across the board the sentiment is negative because affordability is so stretched. but i think that it really varies by market right now >> diana olick, our housing reporter, noted in an email to me that 13% of builders say they had dropped prices last month, even though she said the big builders in their last earnings said they wouldn't have to so what is going to happen with prices >> they're going to have to drop

prices, sara, no question. we're seeing significant increase in incentives and already seeing price cuts. somewhat market dependent. affordability is worse than it was back at the peak of the last boom period on how we look at the index. so i think you'll see price cuts are just inevitable. >> is it in the stock? some of these i'm looking at lennar down 34% off the highs. they're down 30 to 40% on the year is it already baked in or do you think more bad news to come? >> i think we're really in the early innings of what could be a prolonged downturn and we're seeing inventories which have been steadily rising with demand plummeting in many markets i think that we're not seeing enough pain yet. i don't think it's time to start accumulating here in terms of the home building shares i think we've got more capitulation that has to come to

fruition and you don't fight the fed, sara. we're still in a tightening cycle. these stocks don't work when the fed is raising rates we know that inflationary pressure we're feeling is not going away in the near term. so i think there will be better opportunities and the builders have outperformed over the last several weeks. i think if the stocks continue to rally, i'd be taking profits and selling into that strength. >> so i'm just going to push you on more specifics, ivy when you say you expect a deeper and more prolonged plunge in the market, what are we looking at here and for how long? >> we expect the overall downturn to last throughout at least '23 and jinto '24, both i the new and existing home market in the low to mid-single digits. we are feeling that we might even be conservative i think what you have, sara, is a backlog that's at the highest level since 2006 for the single family market. we have a tremendous amount of

builders that are rolling out new communities. a lot of those communities where they are bringing on inventory that's spec and they're going to monetize that inventory and that's going to result in pricing pressure we're seeing a big increase in cancellations, albeit from historic lows, but builders are cancelling backlogs because they know they won't be able to afford and people are getting cold feet. we're seeing a lot of short-term rental private investors that have portfolios of assets that are recognizing their rental incomes are not going to be where they homeland it would be or costs are rising. so you see a lot of -- we're just in the early innings and this could be a one or two-year correction if not longer depending on the economy. >> and sell the rallies in those stocks pretty bearish ivy, thanks for joining us >> thanks, sara. still ahead, chart expert katie stockton breaks down that late-day pullback.

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we are now in the "closing bell" market zone. mike santoli is here as always to break down these crucial moments of the trading day j jon fortt is with us and katie stockton the only sector positive remaining is energy. we're about 5% off the lows for the s&p 500. about 20% off the highs. what is causing this week -- didn't anyone listen to brian moynihan at the top of the hour. he said even the last two weeks, the beginning of july here, spending is up sharply from last year and it's not just inflation, it's transaction volume. >> yeah, and i think that's been a consistent theme in the moment we're not really seeing the economy, certainly not the consumer economy in aggregate economy buckle

obviously the stock market basically got to the top end of this range, 3900 on the s&p, was very, very, i think, primed to have a little bit of a test. apple provided that with that downturn intraday and lucy pulled the football away again we had a broad rally on friday and those have been one-day wonders up to now in this market. >> are we watching bond yields the dollar is weakening so that is good for earnings and for some of the pressure that we've seen lately. what are some of the macro factors as we enter another earnings period? >> it's all those things, sara you have had some upward drift in short-term treasury yields. that's a proxy for how aggressive we think the fed will have to be it's nothing extreme, still below the lows more to the point to me is the tactical moment we foundi ourselves in the growth stocks had revived a little bit they are backing off today

if i look at the russell 3000, it's a nothing day it is the mega caps that again are kind of putting the s&p into a little bit of a tailspin. >> but some of them are working today, at least in the nasdaq. nvidia is doing well net flflix is rallying ahead of earnings tomorrow. the travel sector, the cruises and casinos. let's hit apple because shares did turn negative and it took down the whole market. a report from bloomberg that the company plans to slow hiring and slow spending for some teams in 2023 spending cuts come from r & d and certain groups within apple. jon fortt joins us jon, how much of a bellwether for other companies should we take this apple news >> i think a bit i'm kind of surprised that the market reacted to it because in a way google put out similar news just a few days ago about considering hiring more carefully. not layoffs, but considering more carefully then when you consider what apple is, it's got about 154,000

employees, most of whom are in retail given that sort of exposure to the consumer, even the high-high-end consumer specifically, if there's a macro slowdown, you'd expect apple to be cautious, not necessarily that they're going to cut but we'll see what divisions end up being affected. >> apple is down about 2%, mike. i guess it's just always apple with the news. when they were closing locations during covid, i remember i was like, whoa, this is happening. we're shutting down our economy. now slowing hiring, slowing spending, feels like there could be a ripple effect what do you think, mike? >> i think it just more reflects the environment than it does dictate the environment. as jon said, lots of companies doing this what lots of companies don't have is a stock like apple which was up 15% in the last month and which people buy because they think it's utterly predictable and we don't have to worry about anything aside from the buyback and the dividend and all the rest of it

i think that's why you're having the giveback today 15% in a month and you give back 2% of it that's not a disaster, except when it's 7% of the s&p it has a little more ripple effect. >> jon, what is the -- i don't know, are you keeping score? you follow all these tech companies big and small in various parts of the tech ecosystem. how many of them actually are and what parts of them are slowing down on hiring or cutting spending and hiring? >> well, it depends on what position they're in. you know that amazon has been in position that because of the covid demand, they both scaled up in their logistics operation, staffed up and then when people started coming back from having covid more quickly than expected, they found themselves oversupplied with logistic space, with w warehouse space and with workers. microsoft continuing to hire we just had word from president brad smith that they expect that

this wage inflation, some of it might be permanent because they think that the sorts of workers that they want might continue to be in shorter supply then you look at google. they talked about slowing their hiring a bit or at least being more thoughtful and careful about when they actually hire people now this coming out of apple but that's different from what you're seeing in tech which is cutting back in some cases as the gas comes out of some areas of the economy >> jon fortt, jon, thank you as brian moynihan said, watch those jobless claims they're still painting a fairly healthy picture for the job market the nasdaq s&p 500 is down joining us now is katie stockton katie, s&p 500, does it look like we're going to retest those lows, 5% or so from here >> yeah, i mean listen, it's very fickle price action that's completely normal on a consolidation phase, which

essentially reflects a tug of war between the bulls and the bears. i know on friday at least it seems like investors were very, very bullish after just one big up day and, you know, we saw some names enclosure their 50-day moving averages there was some incremental improvement but nothing meaningful our weekly gauges are still very much pointing lower and that's the case for the s&p 500 as well so we're not a believer of these bounces in general they have lasted maybe three, four days on average and this one has been so far no different. in terms of apple's reaction to its news, it is negative because it creates an outside down day on the chart that's just something that shows a loss of an intraday momentum and does tend to give way to a consolidation phase or some kind of pullback. this was the natural place for this to happen to apple which had some resistance essentially in line with this morning's price action a lot of these mega caps have resistance essentially in line.

>> i wanted to quickly hit tesla with you as well do you see it as a key to this market in any way? and what are the technicals showing on that stock? >> it's really interesting as we come into tesla's earnings report, the stock is very coiled up that's what we call it it means it's like a triangle formation on the chart the triangles don't have a directional bias, they're neutral by their nature, but you usually see a really big move coming out of it that big move often occurs in the direction of the prevailing trend, which for tesla you just have to look at its 200 day or 50-day moving average and see that the prevailing trend is lower. the way the chart sets up is for a breakdown for earnings and given the market sentiment and how sensitive it is, you saw that today with apple, that could be a market negative. >> so you're a seller of all these rallies. is there any part of the market in 20 seconds here, katie, that looks strong to you? >> well, for me it's like i'm

happy to look at other alternative asset classes. gold prices look more interesting coming off of an oversold low we're interested in having counter trend exposure to treasuries in terms of sector exposure, we're very limited in what we can do right now, but utilities and energy, those are the last sectors standing in terms of having both good relative strength but also long-term uptrend still intact. >> energy is having a good day today up 2%. katie stockton katie, thank you two minutes to go in the trading day. mike, what do you see in the internals? >> yeah, sara, it softened up over the course of the day but not too negative a lot of days we start out with a 80% up day and it doesn't really buckle. it's 2-1, that's what happens when you have alate-day selloff. natural gas, up almost 7%. it's got its 50-day average just

ahead of it. so pretty well off the peak but making a run the volatility index, not a lot to change that story about 25 it's the low end of the two month or three-month range we've been in. it hasn't fully relaxed and there's a little uptrending since april. so far really nothing more than the usual trading range anxiety we've been in for a while. >> 52-week lows as we head into the close. striker, digital realty trust, paramount also trading at the lowest point since july 2020 one 52-week high and that would be humana. there's the dow down about 200 points looks like we'll have the sixth down day in the last seven sessions the s&p 500 has recovered from a 1 percentage point plunge. energy, discretionary and materials are higher consumer stocks are working today. at least the cruises, some of the travel names expedia and bookings are higher, some of the retailers as well but home builders are not

helping, dragging down that sector the nasdaq is down three-quarters of 1% it's kind of a split bag in terms of mixed technology stocks meta is higher, some of the chinese internet names are higher, but apple obviously weighing on the s&p and on the nasdaq there is the bell. the s&p down 0.8 of 1% that's it for me on "closing bell." have a great evening, everyone, i'll see you tomorrow. into "overtime" with scott. all right, sara, thanks so much welcome to "overtime." you just heard the bells we are just getting started. ibm earnings are imminent. we'll have that report ed yardeni will be here to talk about the markets, why he thinks, believe it or not, stocks can hit new highs next year we begin, though, with our talk of the tape. the rally, the midday reversal and what, if anything, it says about where your money is going to go in the next few months let's ask "mad money's" jim