fractionated market, anything that could make it a more seamless experience for the consumer would be a good thing. >> he said disney plus viewers want more content. perhaps it's a way to do that. >> thanks for watching "power lunch. >> "closing bell" begins right now. thank you. stocks are rising on wall street building on last week's rally as investors await tomorrow's key inflation report welcome to "closing bell." i'm sara eisen take a look at where we stand in the market up about 200 on the dow. another broad one as well. the s&p 500 up a full percentage point. every sector is green. energy, technology, consumer discretionary leading the charge apple is at the top of the list. we're going to talk much more about that move in a bit if you look at some dow winners, you can see apple is powering that index right now american express, though, chevron, united health, these are some of the big winners

today. most dow stocks are higher amgen, home depot are the only exceptions. we'll talk to billionaire capitalist vi in od khosl aa about where he is looking for venture. and brett harrison with the upgrade of ethereum this week. let's get to mike santoli. what are you watching ahead of tomorrow's big inflation number? >> similar dynamics to last week, the upside on stocks is coming along with u.s. dollar backing off a little bit, yields are calming down the sense that the fed's hawkish message, which has been consistent and emphatic is mostly been absorbed, at least for the short term, if in fact tomorrow's number shows the peak inflation story still has some credence hanging around the 4100 mark on the s&p 500. you see it's kind of midway between that august 15th or 16th high and then the recent lows. i find it interesting. we also went from 3900 right up

to 4100. that line is right before the last cpi report, august 10th you got a little indigestion and then continued on higher and more hawkish fed speak and consolidation brought the number down again a very similar move in advance of this month's cpi, just like last week's. we'll see what the numbers give us take a look at financial conditions we know part of the fed's project is trying to keep them tighter than they have been in recent years and here is the goldman sachs financial index. the overall index is right here. that actually shows some reasonable amount of tight ing, but not that much it's still looser. it's looser than it was a few months ago however, if you take the equity market valuation component out of it, it's quite a bit tighter. it's as tight as it's been in several years. back to the 2020 crisis. it shows you, it's mostly stocks that are sort of the out of step

with, perhaps, where the dollar has been, credit spreads and the absolute level of rate, sara >>, so any of it suggest that the fed would have pare back >> it's not clear to me -- this is not something they're scoring themselves on explicitly if inflation cooperates, they're not going to say, inflation is getting to our target but stocks aren't down enough they think stocks being held in check is part of the overall mechanism by which that happens. i don't think that's going to be a make or break. it does show you most of the asset marks have more or less repriced into a recession. >> mike, thank you mike santoli, see you later. falling gas prices are raising hopes that inflation is slowing down according to the new york fed's august survey of consumer expectation. over the weekend janet yellen said higher gas prices do remain a risk joining us is former federal reserve vice chair roger fe

ferguson is there any number that could come out tomorrow on inflation that would alter the course for the fed at next week's meeting >> you know what, i really don't think so there's a hope that the headline cpi number will come in a little lower. survey of economists show it comes from 8.5 to 8. the core last time came in at 5.8 might move up and down a few tenths i don't think there's any number that's going to move them off the currently market expected and likely 75 basis point move in september. >> but inflation expectations have come down, roger, if you look at break-evens and the swaps. do you think inflation will come down rapidly from here >> i don't think it's going to come down rapidly from here for a couple of reasons. one is something secretary yellen talked about, which there's always a risk of

surprise that drives commodity prices oil back up secondly, labor markets continue to be very tight the most most recent reading shows, roughly, two job openings for every unemployment person. yes, the labor force picked up in terms of size just a little bit. but all of those seem to me improvements moving in the right direction but only modestly so i don't see anything that's a fundamental break that inflation is much too high the final point is the level of inflation, even if it comes down a bit, is still quite a bit above the fed's stated 2% goal >> you think the market is still getting too excited about a pause early next year in rate hikes? >> i think the market may be a little too optimistic about a pause next year. the fed officials starting with the very top have been clear that they expect to go a little

higher than the market expects and to stay there a little longer i think it's premature for the market to start pricing in a pause. the other thing thing i think the market has to take into account is chairman powell says he wants to see growth come in for a period of time even a slowing, which in the perhaps would have signaled the fed pivoting towards an ease, i think, is not necessarily a precursor towards an immediate pause or turning towards ease in the first part of next year. >> the counter argument, roger, is that the fed isn't paying close attention to all the indications that inflation is coming down. from the commodity market, to shipping rates, to supply chains easing overseas, to some of these numbers like china wholesale inflation coming down. and that that's happening at a time where growth is slowing and, whereas you know there's a lag from tighter monetary policy so, really what might be more

appropriate is for the fed to pause or cut back on its jumbo size rate hikes. >> the fed has said they want to see clear and convincing evidence for inflation not just coming down somewhat from these high levels but coming down enough to give them comfort about the 2% target. i think the disconnect may well be the fed's clear intention to get the inflation rate much closer to the 2% while the market is simply saying, well, a little breather from these astronomically high levels is acceptable the market thinks any slowing a signal the fed has done. i think the fed believes a slowing for a period of time is a sign they have, perhaps, achieved their goal. not that they quickly want to reverse. they've learned the lesson of

stop/start and i think they're trying to avoid that. >> we haven't seen that much pain in the labor market, as you said such a tight labor market with so many job openings is 2% a realistic target for this fed how long does it take to get there? >> i think you've asked the really important question which is how long it takes to get there. there's no doubt they can over a period of time get to 2% we'll see what their next summary of economic protection points out the last time they had at the end of their forecast period, which is a couple days out, getting the 2.4%, and we'll see what they expect this time you raised the right question. i think they will eventually get there. the question is patience and how much time. and to use chairman powell's question, how much pain. i think at this stage all of that is a little unknown but the good news, as you point out, is inflation expectations continue to be pretty well anchored and that certainly has got to be relief from the

standpoint of the fed policymakers. >> roger ferguson, thank you very much. former vice chair of the federal reserve. appreciate it. it is a big day for crypto as ethereum undergoes a rally. the head of ftx.us weighs in and his company's partnership with gamestop we're pushing higher here. the dow is up 232. you're watching "closing bell" on cnbc.

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fidelity is allowing bitcoin trading on its brokerage platforms which host more than 34 million accounts. it comes as bitcoin trading at levels we haven't seen in nearly a month as ethereum undergoes a long awaited pgrade. joining us is ftx.us president brett harrison just on this fidelity news, i would think that's threatening to you, with mor players, especially huge clients like this, get into the trading game. >> fidelity says they want to get into trading crypto. how would they do it probably fidelity has to interact with market makers or someone like ourselves there could be huge symbiotic

relationship between fidelity and someone like us or -- >> you don't have a deal with them. >> no. >> fidelity. >> that's right. >> what are you seeing in terms of customer account activity as the price collapsed and now has come back a bit? >> ftx is in a bit of unique position among exchanges that the majority of our volume comes from institutions. institutions are trading on both sides of the market even when the market is going down as the market goes down, typically retail has to pull back on a risky asset like crypto so, as we see some recovery here in the global markets in general, but specifically in crypto, retail volume is starting to pick up again, which is why it's been so important for all of the investment and building we've been doing during the slower times to make sure we're ready for any recovery that will hopefully bring back what we're building for. >> you're spreading out all -- >> not just crypto, but also in the crypto lending business with block-fi, our stock brokerage

offering we just launched to allow people to trade not just crypto but stocks and ftx. it's the goal of trying to build the best retail experience possible for when that demand starts to pick up again. >> why in the stock business if you're such an investor in robinhood? >> for us, we really do believe in the retail brokerage business and of course, sam is investing in robinhood we've been investing in robinhood for a while seeing how successful they are offering crypto to their stock offering we're the first brokerage, primarily for crypto, now we're adding stocks. the believe belief there is customers are going to look for one place to invest all of their assets, whether it's in stocks or crypto or other kinds -- futures eventually all from one app instead of split their savings across multiple different experiences. >> well, that's why there are always rumors that you might buy robinhood or robinhood might get taken out, which i know you can't comment on ultimately after the crypto

winter is over, people are wondering how much leverage is in the system, how many bad players are there? you're still hearing reports last week there was a minor halting withdrawals because of liquidity problems how much is worked out and how much is there to go? >> i think most has been worked out at this point. we don't know of any major players in the ecosystem we believe to be in trouble finally, you know, voyager is allowing some withdrawals of certain assets from customers. you know, our deal with block fi went through, they're in a good spot right now we think that probably the -- a lot of the leverage is gone and now flight to quality when it comes to crypto and crypto businesses. >> it doesn't trade like flight to quality it trades more like unprofitable nasdaq stock still, doesn't it >> right right now there's a huge correlation between crypto and, for example, the nasdaq index. as markets are going down, people are trading it like a risk instrument, as you said in terms of people looking to get back into the kinds of tokens and projects in the

ecosystem that they believe in being high quality and not, you know, the promise of a 30% yield with, you know, with no risk, people are looking for what they're going to invest in to be safe. >> everyone is talking about the merge that's coming. it's coming this week. >> likely coming this week. >> this is a whole sort of reload of ethereum that is meant to make it much more mass market but also much more environmentally friendly to reduce emissions by more than 99%? >> that's right. so, the current mechanism for consensus for the ethereum is similar to bitcoin its machines proving they've done these computational puzzles and it's done a lot of energy to do that work to prove you solve the problem and, therefore, entilged to the rewards of the ethereum network the fees and problem-solving reward you get in tokens that is changing with the merge where now it's proof of stake. you can stake that eth in the network and whoever gets to

get -- do the validation to do the rewards -- >> the rewards is the bigger holder. >> exactly it's no longer these hard computational puzzles to energy, it's a much more efficient mechanism. >> what will it look like between now and once this gets worked out how bumpy will it be or people wanting to buy ethereum need to know? >> you don't have to change to a different network when the merge happens. it will happen seamlessly. when a specific transaction occurs t will move from proof of work to proof of stake there is some networks out there trying to hold fast to proof of work there are some, like etp pow tokens, people will try to create separate networks probably those won't last very long the majority of the world's computation in ether smart contracts will move to this proof of stake network we think it should be pretty smooth

very talented engineers working on this problem and they've been testing across multiple different test chains to make sure this goes smoothly. we have pretty high hopes about it. >> what kind of hopes do you have about gamestop? you have a new partnership with them you'll sell gift cards at the store. how did this come together and what's your ultimate goal? >> we are a business that's primarily catered to institutions gamestop is a huge presence in the retail market. not just their stock itself but also as a retailer i think we have a lot to learn -- >> maybe more their stock. >> yes we have a lot to learn from their partnership with someone like that who knows how to reach the mass audience. there's a lot of audience between the gaming world and the crypto world we're starting working with them in terms of gift cards, but we have other things in store that we can't talk about yet. no pun intended there. to work with them to help them with their efforts in crypto you know, they released their own nft marketplace or other ambitions in cryptocurrency or other digital assets

it's an interesting strategic partnership for us. >> we'll follow it thank you for coming by. it's good to catch up with you brett harrison from ftx. 40 minutes left of trading we have a nice rally, four days in a row dow is up200 points. s&p 500 up a percentage. every sector is green right now. energy and technology are the leaders. that's why the nasdaq is climbing more than 1%. still to come, we'll talk to billionaire venture capitalist vinod khosla who has invested in a long list. he'll tell us the private and public companies he's most excited about. check out the top searched tickers. ten-year yield gets the most interest, as always, sellingof today. we have a little firmer yields back above the 3.3 level on the ten-year tesla, apple having a nearly 4% surge. we'll talk about that later. and the s&p 500 and crude oil, which is bouncing back today up 1.4%. still below 90 bucks a barrel.

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let's talk about today's stealth mover, jack in the box wedbush adding it to best ideas, raising it to a beefy $110 the analyst believe concerns about that potential minimum wage hike for fast food workers in california should be put on the back burner. adding investors are too pessimistic about its del taco acquisition. apple leading the dow higher after a bullish report on iphone 14 preorders in china. coming up, a top analyst gives us his take. first, wall street is buzzing about a hot new fashion trend. up next, why pink is the new black and the companies that could benefit from the shift we'll be right back.

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what is wall street buzzing about? pic. pink is the new black. this was the subject of a jeffrey's report the upcoming barbie movie showing margot robbie and ryan gosling, along with y2k fashion

trends, and femininity searches for barbie core, grew five-fold over the summer. valentino's fall 2022 runway featured primarily pink collection with the creative director creating his own trend of pink with pantone orchid flower intense magenta as the color of the year for 2022 they say this broader shift to color and bolder design is a positive read-through for names like kate spade, part of tapestry, and versaci, part of capri. in china, men are embracing the trend calling it fierce pink, but not so much the women. picking retailers is about finding who's on trend and what brands are resonating. right now it means investors should think pink. music to my ears as someone who

looks for any opportunity to wear pink, including my own wedding tress. in the markets, going strong, up 200 points on the dow. s&p led by energy, led by technology everybody is higher today. the nasdaq surpassing 1% and small caps are also above that the weaker dollar helping out. up next, venture capitalist vinod khosla on the outlook for tech stocks and the two companies he's most excited about. you can listen to "closing bell" on the go by following the "closing bell" podcast on your favorite podcast app we'll be right back. flexshares are carefully constructed. to go beyond ordinary etfs. and strengthen client confidence in you. before investing consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully.

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mobileye hitting a speed bump saying they plan a lower valuation for the ipo, which has already been delayed our next guest says there are still areas to be excited about. joining us now is legendary venture capitalist and founder, vinod khosla it's great to have you back on the show you think there's a reason to be optimistic about an ipo comeback >> i'm clearly optimistic over the longer term. there's a very large amount of innovation to be done. i think it will disrupt many, many industries. >> what about the overall market environment, the fact that ipos and spacs have dried up, the fact that interest -- higher interest rates has hurt tech valuations so hard how is that affecting the longer

term optimistic view that you have, if at all? >> well, it's a buying opportunity if you take the long view for really strong companies. not in every company, but take gitlab, one of our companies in the devop space. it's single penetration into a rapidly large market, which is key to all future software development. do i see very large head room over the next three, five years? absolutely so it's a buy and hold opportunity for me at least. similar thing with something like affirm, another one of our portfolio companies, which is in the consumer lending business. buy now, pay later is small in the market they are in mastercard and visa is the real market these are exciting opportunities and have multi-year runs that's the approach we take, is a portfolio companies i'm happy to hold for multiple, multiple

years. >> i was just going to ask about affirm because this stock was, what, $170 last year it's now in the mid-20s. you know the concerns right now. funding costs are rising, interest rates rise, never really been tested through recessionary, higher rate environment, the competition is coming from every single why stay with it >> why stay with it. because they have a huge advantage in credit scoring, which is the key to consumer lend pentagon. it's a very large market all of lending, somebody will own, somebody will be the google type business and affirm will definitely be able to take space in a big way. >> what about fintech overall? obviously valuations have been hurt affirm is just one name. jpmorgan today made another acquisition of a payments company. they're trying to compete.

how do you see the competition playing out over the coming years between the terrific banks like a jpm and some of the growing newcomers? >> we are in square, we are in stripe, we are in affirm but when have you seen an incumbent clearly dislodge a new player with a modern infrastructure that doesn't happen very often so, i bet against jpm and in favor of an affirm or a stripe i think those are very solid, long-term bets, in my view and you have to take the long view i'm less concerned with quarter to quarter variations other than good opportunities to buy if one believes in the five-year picture. >> you don't think there will be a convergence at some point where jpmorgan could acquire one of these big players you think it's one at the expense of the other >> i'm more interested in the

case where one of these things acquire jpmorgan yes, i'm only joking but it does happen, you know tesla has large enough market cap to buy any one of the auto companies. when people kept talking about who will acquire tesla so, i do think this opportunity is a possibility, the new companies do not want to take on the legacy infrastructure and, hence, it's much better for them to grow on their own or acquire small innovative players rather than back into legacy infrastructure i think this conference i'm at, crypto is a big theme. the blockchain will, in a way, disrupt a lot of models. i doubt it's one of the traditional players that will be the big player in the end in the blockchain space >> we just had ftx.us who was at

salt you were there earlier i did want to get to climate tech with you, because i know that's one of your areas of expertise. since we have the inflation reduction act, since it got passed, i wonder if you think that opens up more opportunities and where that is? >> i do think opportunities were always there the inflation reduction act will definitely accelerate some of these technologies hydrogen for one will be accelerated. energy storage will be accelerated. we're very excited about quantum scape as a solid state battery company. the leading solid state battery company that could change economics of the ev market so, those are good examples. investors in many private companies, in producing the best low carbon, carbon fusion in

energy production, fertilizer replacement company with very strong carbon advantages >> quantum scape, another one that's been hammered i know you're not looking short term, but down 50% over the last 12 months. i assume you think that's an opportunity and a long-term hold >> i'm sorry, i missed which company. >> quantum scape, you mentioned. it's been hit really hard over the last year. simproo but it's been up over the last three years, substantially. it has a $2 valuation not long enough if you look at the long view, you look at the trends over the long term. >> understood. vinod, thank you for joining us and talking through some names and some trends with us. vinod khosla, khosla ventures.

bristl bristol-myers, a ana speaks and why apple is leading the dow.

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easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities. while an earnings tool helps you plan your trades and stay on top of the market. we are now in the "closing bell" market zone. mark lehman is here to break down crucial moments of the trading day, and apple and the pop for bristol-myers. the dow up 216 mark, another broad rally for the s&p 500 with every sector higher, your beloved tech stocks

are catching a bid just as everyone was starting to hate on them again post-jackson hole and worries the fed is not going to slow down interest rate increases any time soon. what's caused the change in attitude >> i think a combination of things i think there was a fair amount of pessimism going into labor day, as you just mentioned, post-jackson hole. post-labor day is also a time -- i've been in wall street for 30 years where companies preannounce their earnings if they miss. i've yet to see a tech company have a negative preannouncement, which is a positive sign and frankly, the back drop wasn't as negative as some of the pundits were talking about i think we have a better sense of where inflation is heading. stocks got too expensive at the beginning of the year. they got too expensive recently. i think they're finding a home right now. we're starting to make stock picks as opposed to picks just for the overall stock market that's beneficial to the best companies. >> we have lots to talk about there.

let's hit apple. you mentioned tech those shares getting a big pop today, leading the dow there's a report in the south china morning post saying apple's site in china crashed after a spike in preorders for the iphone 14 pro and pro max. joining us is will power he's got an outperform rating and $185 price target. we've heard rumors before about demand and preorders and china they usually come from different sources. how much stock do you put spew this >> good afternoon. thanks for having me there's always a rumor as it pertains to apple. certainly, you know, any indication demand or positive given some consumer macro and uncertainties out there. we had our own note this morning, just taking a look at current demand lead times. the current iphone lineup versus past years demand indicators for the pro and pro max look quite good. the wait times are stretching beyond where they were a year

ago. and i think that just really references the remarkable resilience that apple has had, both for investors and consumers. >> you also have data on iphone 14 and 14 plus that are not as great, right >> that's right. it's probably mixed overall, but i think against the back drop of some of the consumer macro spending pressures and concerns overall results does look pretty solid. and i think when you step back, one of the key things to remember is close to 1 billion iphones in service globally. every year you have a couple hundred -- several hundred million iphones that in theory could be eligible for an upgrade. in the united states, which is still the biggest markets, the carriers continue to be aggressive with subsidy levels you have at&t and t-mobile offering up to $1,000 off with an eligible trade-in on some models that matches the record highs of last year. that's helping, i think, spur what continues to be looks like

solid demand initially. >> mark, i wanted to bring you in because i know you like the tech trade apple stock is up 30% in three months what sort of expectations do you think is in there now? >> i think the demand you just described is certainly baked into the stock i think more and more as this becomes the piece of everybody's life, more of the cyber expectations, more of the add-ons they have, whether it's in health care, whether it's in mobility, whether it's in other facets of our life is becoming clear. i think the youubuity and this android competition is disapainting over time the more we hear about their adjacencies, the things they're doing in everyday life and the upgrade and what it's allowed to do that we'll all have the ios upgrade, it shows you the power of this device in every facet of our life you talked about affirm with the last visitor, vinod khosla

you talked about buy now, pay later and what they have with the iphone it's the most important acquisition that anybody makes for yourselves and your kids and it's proven every single day it's a reminder that this is the juggernaut for the market. as apple goes, so does the stock market it bodes well for the nasdaq and the rest of the market for the rest of the year, in my opinion. >> will, you think is stock is going to $185, i think is your price target the risks are, what, china for one, and the macro economic environment and how much people are willing to spend, if they're okay spending $1,000 for an iphone it didn't raise their average selling prices that wall street had hoped. how do you think we get to $185? >> look, prices were effectively flat in the u.s. they did raise prices overseas and that will be important to monitor to what degree that impacts demand it's certainly not without risk, as you point out china foremost, if it's supply, demand regulatory but apple has

been able to navigate that environment very well. our bet is around the ecosystem and the strength of that we're seeing it even with watch demand looks good, airpods continue to be a key driver. services is close to 20% of revenue and still growing double digits that's what the iphone enables the services stream in the broader ecosystem. our view is don't try to trade the cycles here. we're betting long term on ecosystem services and the cash flow they can generate. >> thank you for joining us. will power from baird on apple. uber rallying roughly 12% this month, but the stock is still down 20% this year earlier on "the exchange," we asked whether he's considering buying stock at these levels >> we're definitely thinking about buybacks for us to get to investment

grade credit ratings as it relates to our debt. having access to cash flow liquidity in certain and uncertain marketplaces is super important. once we get to that investment grade, we're going to look to allocate our free cash flow, which is substantial and i think buybacks are definitely going to be on the docket >> deirdre bosa joins us now he sounded different from the early days of the narrative around uber, right, talking about profitability and free cash flow and buybacks what were your big takeaways >> the reason i asked him that is because investors have been responding well to the profitability drive. one of the first ceos to get out ahead of that market shift and say, we're going to focus on profitability as it relates to free cash flow in the past uber talked about adjusted ebitda. here's the thing, uber's free cash flow, they delivered last quarter, however stock-based compensation was greater some would argue this isn't

actually a true reflection of profitability. some companies do buybacks so their existing shareholder base isn't so diluted that's what i was getting at with him he told me in the past, yes, they can achieve real gap net income profitability they're still very far from that, although he's on the path. i guess that's what investors have hopes in. this stock has rallied this is a company that went public at $45 a share. even around that ipo there was conversation that it could be valued as high as $120 billion during its public life, it certainly hasn't gotten anywhere close to that. >> and there was talk about being the amazon of transportation and self-driving and everything else. thank you very much. mark, i think you like uber. it's interesting to see the outperformance especially relative to lyft what do you do with the stock now? >> you mentioned all the right points you have a question about free cash flow and ebitda and trading

at 13 times 2024, although it's growing much faster than that. i think dar ra has done an unbelievable job showing the power of the brand and the power of the platform and you see the divergence with lyft i think you also had questions about the move back to work and the urbanization and everybody coming back to the big cities. that's been proven out obviously, uber eats has done quite well listen, i think the stock is a bellwether stock and i think they've done an unbelievable job separating themselves. i'd bet on darha i think as we get more and more people back to work in the big cities, this is a great play, also globally. at this point we have a $45 target with our analyst, andrew boone, and we like the stock here a great deal. >> let's get health care names bristol-myers getten a boost after the fda approved its treatment for plaque psoriasis we have a hold rating, i believe, on bristol-myers. how big of a deal is this sorry

rises approval >> it's a pretty big bucket. so, this is a pretty good drug we expect it to be closer to $8 billion total. this is definitely a positive for bristol because going in there was a lot of pessimism around it regarding the labor, whether the fda is going to give them a class label, basically a black box warning of cancer, and the fda did not give any that was a positive. however, at the same time, that left the room open for interpretation by including some warnings there that's why we think it's a big deal, positive news. not quite scenario that people were hoping for. >> i know there's some questions

about adoption from health care providers because you need to give blood tests and other treatments, right, on the market. >> exactly that's the main concern. so, on the face of it, it sounds great, however when we did checks before the event, they noted that if the label asked for a tb test or some kind of blood work prescribing this medicine, this is going to be a little bit harder. that's exactly what the fda did. on top of that, the other element to it is the -- the application out there, and that is -- from the convenience aspect versus a three-month shark, it is not as black and white as one would expect -- one

would see. >> right you're not that enthusiastic i think you have a hold rating and $70 price target bristol-myers has been a big winner this year, up 16% health care's been a standout. it's offensive there's increasing deals and innovations like this one. if you don't like that in this environment, what do you like better >> right so, you're correct bristol has been a big winner. a part of it was defensive play, like you pointed out they also had some -- one of their assets got pushed out. however, we like abbvie because this is one stock where we have an outperform waiting, $200 target price the company is facing a patent next year. once you look beyond that, this is a stock trading at 12, 13 times the trough year eps and this company could be up for a

transformation in the longer term we like abbvie over bristol at this point >> got it. thank you for joining me >> thank you >> appreciate it on bmy i know you don't talk specifically about it, mark, but biotech, everyone has been waiting for the deals for years. it's been a left-behind sector, now seeing signs of life do you like it >> i like big pharma stocks going up because they buy a lot of companies your previous guest talked about patent cliffs, those are real. we've seen a few deals in the last few months. we saw global blood announced recently and rumors about other deals in the marketplace higher stock price for companies like bristol-myers and pfizer portend more m&a this is a reminder that the innovation engine of biotech has not slowed down. president biden is in boston to talk about the moonshot program for cancers and the amount of innovation happening there,

albeit quietly under the radar is absolutely going to happen, is absolutely going on as pharma starts to benefit, they'll buy more emerging life science companies we cover that's the circle and the virtuous cycle we talk about great for bmy, great for sufferers of this disease. it's great for innovation. >> got it. we have two miss to go in the trading session. the nasdaq is near session highs. speaking of health care, it's doing well today up more than half a percent. you have tech leading, energy also higher on the back of crude oil prices what would be your strategy, mark, as we don't know whether we've seen the june bottom we don't know whether that was the low. we don't know exactly the fed's posture in this week's interest rate hike. what do you do as an investor? >> that's a great question i think we've had multiple opportunities this year to have a bottom called. that hasn't happened

i guess we're going to call the june low the bottom. we've had multiple opportunities to buy stocks as prices we could never get them at. a couple weeks ago we had stocks in the tech sector we have some with great quarters, snowflake and some others it's a reminder we have a market of stocks and not a stock market we have gone 20 minutes without mentioning faang once. apple is doing quite well and we did mention facebook/meta once that's a good thing. uber versus lyft, that's an opportunity to buy uber. i think you'll get ample opportunities to buy better stocks at better valuations over time build your tool kits we get an ipo market like the last call, we're doing better. >> thank you. as we head into the close, we aren't too far off from the highs, at least from the nasdaq.

got as high as 350 energy and tech on top you have consumer staples, up 0.4 of 1%. everyone was getting bearish again. we're heading for our fourth day in a row higher at the close s&p 500 closing with a gain of 1% that does it for me on "closing bell." now to "overtime" with mike santoli. we're just getting started in moments we'll get breaking results from oracle. we'll bring you the numbers. we begin with our talk of the tape a moment of truth for the market as we await tomorrow's critical cpi report investors expecting to see inflation easing next month. and it could help decide which way stocks might break from the summer-long trading range. let's brin