i think i'm not going to buy a home builder right now when the home market is slowing. >> short 4 million homes across the nation you would think there would be a market there no matter the price. victoria greene, thank you for ginn joining today us we appreciate it. stocks are jumping again, extending a strong three-day rally. putting the dow on pace for best month since 2020 welcome to closing bell. i'm sara eisen look at where we stand now in the market, up 268, high of the day up 305 going strong look at the nasdaq, leading the charge up 2% as we are seeing relief in the bond market. buying there that's pressuring yields lower, helping those tech stocks and everybody else rally today, except for energy. the only sector in the red now everybody else is higher the best performing groups, real estate and materials and

consumer discretionary technology up almost 2%. the high of the day for the nasdaq up 234, up about 200 now. check out some of today's key earnings movers, that's very much part of the story today coca-cola beating estimates, raising the outlook, stock is responding well. gm topping estimates 3m miss on revenue, citing the strong dollar. which, by the way, is weakening about a percent today. and u.p.s. having a mixed quarter. the stock is lower coming up on the show today, you'll hear from the ceo of another earnings mover, european software giant sap, woo el get a good read for him on corporate tech spending and how the company is navigating an uncertain market overseas. very much a bellwether for cloud and software spend let's get straight to the market desk for a read on this three-day rally with mike santoli. where is the pressure on yields coming from? >> globally. seemed like overnight we got some very weak economic numbers out of europe, it drag yields

down the case could be made, i was trying to point to it the end of last week and over the weekend, you saw a capitulation in bonds in terms of the angle of assent in yields and the volatility levels and some of the flows look at where that leaves us the s&p 500 giving room again for hope for the bulls temporarily. this little downtrend from the august high has -- at this point been broken, that's a first step you can look at this chart, a way of characterizing it as, okay, we spend some time here, retesting the june lows, gasoline prices are way down oil no higher, europe has enough natural gas, october is a month where you often have significant lows and upside reversals. all that together with the seasonal strength they think is giving an inkling this could be more, so much to prove here. you have a couple hundred s&p points to the upside before you can say that the trend is at risk of changing to a positive one longer term. stocks versus bonds. talked about what was going on with yields. there has been a little bit of

detachment or loosening of the relationship between stocks and bonds. this is long-term bonds, the price of the bonds going down, relentlessly see here in june, they were at the exact same spot on year to date basis since then, stocks no real downside, bonds have continued lower, yields have gone higher to me, not the absolute level of where yields are the message from yields, the fed is still behind, inflation is not calming down those three things altogether right now we had a little bit of a truce between the markets. >> i asked the question on bonds. that's the key driver of stocks. we know housing is hurting right now. and in recession looking at some inflation expectations measures, and they're rising we beat august highs on thve year. >> it seems like whenever you get the sense out there, whether the fed leaving hints they're almost going to be done or pausing, it does tend to longer

term inflation rates higher. maybe they're not going to wait until it is wrestled to the mat before they stop raising rates some of that -- >> not going iing to back away. >> absolutely. talk us to in eius in eight days >> mike, thank you mike santoli our next guest says enjoy the rally while it lasts the market lows are still not in let's bring in tony dwyer, chief market strategist. is this one of those calls where you have seen a short-term bottom, but not the bottom for the bear market? >> yeah. throughout this whole year we talked about a low versus the low. it would be unfortunately unique since it is a 500 stock index, for the s&p 500 to make the low before the two-year bond yield made its peak. so if you count last thursday, it is the peak in the two-year bond yield for the entire cycle,

that would have meant for first time the s&p bottomed before bonds. >> so you're not convinced that, what, we have seen the highs on the yields >> really comes down to -- no, i -- i'm wrong on that already i don't think the yield should have gone up so much i don't think the fed should be raising rates so much. but the call from here is that when we're coming out of the summer rally, we talked about the fall fall on the show. what comes after that is the year end route early october, october 3rd, eight of the prior nine days had less than 10% of the s&p 500 above their ten-day moving average. the vix was at 32. the -- my weekly cast for the s&p was in the teens all the sentiment measures were historically pessimistic so whether it is a bond move or currency move or all of the above, the market was like tinder, waiting for an oversold

bounce but, again, the whole reason that you really need lower rates as you know comes down to if we have weak economic data coming, which i firmly believe we do, all the yield curves are telling us that, what you need is a way to look through that coming weakness and that's what a dramatic reduction in bond yields does, it allows investors and traders to look through the economics and earnings weakness so they're comfortable buying and holding stocks i don't think we're at that point yet. >> i think without a fed meeting, we have a fed trajectory that is sort of unclear. they don't know themselves how fast inflation is coming down. what are you gleaning from earnings now, which always gives us a good window into those issues like earnings, and like the economy. and certainly that the fed should pay attention to? >> we haven't had enough time, sara they're still buying mortgage and treasuries and quantitative

easing interest rates were at 0%. government was giving us money at that point, it takes time -- for example, if you're a company, a company management which many of the viewers are, you're hiring somebody four months ago, you had to pay them a bonus to get them to walk in the door you don't turn around and let them go in a couple of months. you need more durability and economic weakness we haven't had yet. our call for this year, for next year, is that earnings will be about 5% below this year and that's some margin compression, some weakness on the top line, but i think -- >> that's not recession, though, is it? >> so -- the last inflation related period, the way i came up with that is when nominal growth stayed positive, sales growth in the 1970s because of the higher level of inflation, when it came down off peak, it comes down to the margin compression and the margin compression, i just took a median of the margins, for each

sector, going back from 1913 to 19 -- 1913, 2013 to 2021 so ultimately it is a guess to begin with but i think you put it to the right point. it is all about interest rates and the ability to look through the coming weakness. >> yeah, i was going to as about margin compression in 1913 so your advice to clients is to not chase the rally, to do what, to fade it, to shift into different sectors? what would you be going for? >> to me, the time to -- it is so hard. i get it i managed money before it is so hard. when the market is swooning, and those indicators are where i said they were, that's when you want to start think about adding into some exposure up 10% on the dow, 7% on the s&p 500, i don't think so. here's why we did a study, we looked back, anytime the s&p since 1950s was down 20% or more, from -- first

three quarters of the year, through september your median gain was 7.9% in the fourth quarter. there are only five occurrences, so not that many one was negative that was 2008 due to the lehman crisis the other ones, the gains in the fourth quarter range from 7.9% to 12% so if you use that as your gauge, you're looking at we're already up 7%. so that leaves you maybe 1% to 4% -- by the close of the year doesn't mean it can't go up 10% in the next 15 minutes, by the close of the year, it should be plus or minus from where we are now, which means i would rather take profits for those that did buy in the market getting smokes rather than chase the upside hosting you're going to get some double digit gain from here. >> now, these upside days, look at ark innovation up 17% now it has been absolutely hammered. tony dwyer, it is tempting,

right, but there is the advice tony dwyer, appreciate it. shares of sap jumping today on the back of earnings. up next, we'll hear from the ceo christian klein about tech spending and the different challenges companies are facing in the u.s. and europe you're watching "closing bell" on cnbc. 300 point rally. every sector higher except energy real estate in the lead with the s&p up 1.5%. when you work in it complaints are part of the job. bill says the coffee is weak today. but since cdw helped us switch to mac, everyone's happier. dan from finance likes getting performance without a big price tag. bibi digs the power of the apple m1 chip. mac is easy to manage, compatible with all our apps and came preconfigured by cdw. now we're even getting compliments. that was bill again, says he loves his new mac.

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in today's big picture, what

are we learning about the economy from earnings? number one, inflation is not coming down anytime soon pricing power still powering profits in the face of rising cost inflation these companies are still passing it on big time and able to do it kimberly-clark saw prices rise 9% in the quarter, which did help offset a drop in volumes. u.p.s. reported average rates rising 8.6%. again, helping offset a 2.1% drop in volumes. ceo of sherwin williams saying margins improved as a result of pricing actions across the businesses coca-cola ceo james quincey tilling me earlier to expect higher prices to continue. >> clearly there is going to be above normal input costs whether they be commodities or wages or other services going into next year so we are expecting pricing to be ahead of normal next year on top of what's happened this year >> so how much longer can

consumer hold up with all of these rising bills and prices going up on everything gm's ceo sounded pretty bullish. >> we're still seeing very strong demand for our products, especially our full size trucks. and allowing for strong pricing. we are starting to see inventory rise a little bit, but well below, you know, prepandemic levels >> coke's ceo did tell me they're starting to see recession like behavior creep in fewer big ticket discretionary purchases, consumers trading down to cheaper brands or private label, going to dollar store. he says it is much more pronounced in europe and the u.s. and more around the lower income bracket but, still, coke raised guidance and sounded upbeat so overall, doesn't feel like the consumer is falling off a cliff. tomorrow's numbers from kraft heinz, hilton and ford give us more clues on that now to another earnings mover, shares of sap jumping, the

company confirmed its full year outlook while posting strong revenue growth, including an increase of 38% year over year cloud business i spoke with the ceo earlier and asked him about what he is seeing in terms of the macro economy right now. >> we see the challenging times. a lot of our customers are facing out there and now you have to do an even better chart in order to make sure the business case for our customers is stacking up to give you a few examples energy transition, here in europe, but also in other places in the world, a big topic, it is a different way for companies to put transport and clean energy, technology plays a key role and supply chain playing an even more important role. so sap a lot of enterprises are procuring with sap software. and now we are connecting them to build supply chains, second very important factor. and, third, also in these

challenging times, sustainability is very high on the agenda of many decisionmakers so we are wanting many in terms of business processes and now we act on esg and so we embed this as another dimension in our software we feel we have a very compelling portfolio and the pipeline also shows that we can look confident in the quarters to come. >> are you saying because of some of these secular trends around energy and supply chain that the business software spending is more recession resistant than it has proven in the past because it spending always falls when the economy turns. >> yeah. absolutely we definitely see that customers also cutting parts of the it budget you talk about dithgital transformation, the business model change, many customers have to do it no matter which

industry to get more resilient you talk about supply chain, making those end to end, not only with your direct suppliers, and when you talk about sustainability and have great technology to help your clients, this is actually where you can see also very solid quarters to come. >> what are you seeing between the u.s. and europe which are experiencing the different pressures around inflation differently? >> look, sara, what i see is a big difference the energy crisis here and especially in germany, i have to say, is way more different compared to the u.s. here in the country, you know, we need to have here with our technology to build the energy, to calm down energy prices and with that hopefully inflation. in the u.s., we definitely see a better market environment, also, of course, challenges, high inflation, but also there we see

also good business to grow also in the upcoming quarter. >> what's going to happen in europe this winter >> what's going to happen? i'm not an economist, but what i can say from what i'm also hearing also for my talks to our government here in germany is that it is safe to say that, you know, definitely we have energy also to come -- very, very important for country with very heavy industry on manufacturing. so now it is more about, you know, how to master this energy transition in a very fast way. but also how to digitize other parts of our industry because with that comes the resiliency, which is especially important in these challenging times. >> what is happening with pricing, christian, in your own industry, in software, and cloud services >> of course needless to say with inflation rates going up in a significant way, there is

pressure coming from our suppliers, also on compensation next year without any doubt. and we, of course, made a decision to moderate, increase our prices but also against some of our peers we didn't say we hand this over one to one over to our customers. that's not how we would like to also build trust with our customers. so we said moderate price increase, but we need to work on our own efficiency levels and this is what we're going to do in order to also deliver on our performances to the capital market >> i wanted to ask for your read on business travel, because you own the concur system which fell off a cliff during covid is that fully back >> absolutely, sara. actually we are going to see now a journey that this business will be next year, bigger compared to the time before covid. the solution is going very well.

we see business travel coming back not in all parts of the world, but also with regard to our concur solution, we're by far the market leader in that space. we're innovating we see a very good future also for this business and our portfolio. >> does it suggest business travel is back to prepandemic levels or on the way >> absolutely, sara. we see -- after covid, it is so important also for decisionmakers, for business people around the world, you can do a lot with virtual meetings but you cannot do everything closing big deals actually delivering customer -- co-engineering in certain parts of our customer base, the business level, that's true for every industry, so, yes, we see that business travel is coming back also to the level pre-covid. >> thanks to christian klein, ceo of sap stock had a good day by the way, that weak euro is also very helpful for him.

it is the reverse of american companies. a 12.5% sell-off this year that's a tailwind. but the stock has been under pressure, down 30% he said his turn around plan overall is working show you where we are in the market, up 300 points here on the dow. that weaker dollar, it is losing about a percent today, along with lower treasury yields is alleviating some of the pressure now, leading stocks to rally the nasdaq in the lead, up 2% or so, building on gains in the last few moments all the big tech players, salesforce a big driver. the best performing group is real estate. materials, consumer discretionary is rallying. tesla and amazon a part of that story. tapestry, ralph lauren, bath & body works, some bigger winners now. adidas, not a winner today finally breaking up with ye. wall street is buzzing about why it took so long and what the impact could be on the company's bottom line.

that story next. check out some of today's top search tickers on cnbc.com the ten-year yield on top. yields are coming down a little bit. tesla bouncing 5% or so. s&p 500, the two-year yield, also seeing some relief, the rally in the so-called belly of the curve today, right in the middle of the yield curve and apple up almost 2% on some pricing moves, which we'll discuss later. we'll be right back.

what is wall street buzzing about? adidas has broken up with ye we have been calling out adidas' silence since october 11th on this show. today, the company says adidas does not tolerate antisemitism and any other sort of hate speech ye's recent comments and actions have been unacceptable, hateful and dangerous and violate the company's values of diversity and inclusion, mutual respect and fairness

it is shock the company has been silent for weeks while other businesses have moved to cut ties with him. especially with adidas' own dark history of nazis and antisemitism what now the company says it will end production of yeezy branded products, stop all payments to ye and it will have an immediate impact of $246 million on net income in 2022 analysts say it is likely to get worse. morning star estimates the partnership as we have been reporting is worth up to 10% of sales. and even bigger percentage of net income because of strong pricing for the products it matters for adidas if they own the ip, which the company says it does, design existing products, colors, it could move to rebrand those products since there is such a big part of the overall business but yeezy is just the latest big problem for adidas the company cut guidance last week for the third time in six months russia, china, inventory pileup

in north america, it is all weighing on the business the stock is down more than 60% this year. and making matters worse, the ceo is on his way out. the company has yet to name a replacement. adidas is facing consumer backlash for the silence over the past few weeks the company reports november 9th. when we come back, jeff solomon on how market volatility and rising interest rates could impact the outlook for deal-making, ipos, capital markets. check out shares of twitter. near session highs david faber reporting equity investors have received paperwork from the lawyers and the latest signing the acquisition is on track to close by friday.

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stocks rallying here for third straight session gains building throughout the day. joining us now is cowen ceo jeffrey solomon. good to see you. >> good to be here >> always a good read on the capital markets. what is sentiment like right now? >> i think people are still a little bit shocked from what has happened in equities i got to tell you, not surprising we were coming out of the year last year and talking about our internally, you know what do we

think rates were going to do, what did we think the fed was going to do, we see inflation on the horizon, massive monetary spend, massive fiscal spend and ends in inflation. the fed, they may have been late, but they reacted quickly we're going to be in a higher rate structure and that's where we should be equities took it on the chin as they should have and this kind of environment best place to have been was cash now there is real opportunity for people to put money to work in yield assets, and three years from now equities will be higher so if i'm an investor, i'm probably starting to wade in. >> you think the worst is behind us >> it may not be you shouldn't be all in. one of those things where cash -- you should still have cash, have flexibility we're closer to the bottom than not. i think the likelihood is that -- we're closer to the bottom than not. so if you got cash and you have been smart about it, you can wade in a little bit if you got a longer term view, you don't need the cash.

equities will be higher. >> what are you seeing in the ipo pipeline what does that open up >> the vix needs to come in here, volatility slows down a little bit can companies that have access to private capital are going to be fine. nearest to the ipo are probably pretty well funded if you're not well funded at this point, that could be tight. the financing markets are tighter. leverage lending market is pretty tight i think there is a lot of things around the edges that make it -- make it difficult for companies to access capital. but if you can get -- i say if we get any sort of break here in the equity market, people start to get this idea the fed is going to pause toward the end of the year, volatility will come in and people will use money raising equity. >> the fact that so many private companies aren't going public and have that access to capital, how does that set us up for next year >> i think private companies

need to get readjustments on where their valuations are people are still latched on to where they did their last round. that's not relevant to where we are today. private equity players and venture players say they're better at investing, risk adjusted their entire value structure is based on what happens in the public market. in the public market, it takes it on the chin guess what happens in the private portfolioportfolios they all have a lot of cash. >> this is his problem with private equities. >> yeah, i'm not quite as -- i don't know flamboyant on this topic. it is true we all-li look at the public markets. here's what i would say, ton of money still raised in venture. ton of money in private equity a lot of money in direct

lending, especially in the middle market. you look at m&a olumes, people want it look at the big deals. that's the fat tail that whips around the most. middle market m&a is still happening, a little bit slower, buyers more selective, those well financed can be selective because the market is a little bit tougher. stuff is still getting done and it should get done, even coming into the end of the year. >> is it getting done in biotech and healthcare that's where you have been focused and strong >> i think the ipo engine has slowed down there. that's not a new story that's been happening since really the second quarter of last year. when companies are having good events, and stocks are performing, and -- >> m&a. >> sure. i think there is, we're seeing this is an opportunity for big pharma to fill pipelines and holes in their pipelines i think everyone thinks that's going to happen en masse, it is usually very selective and strategic. and that's what we're seeing those companies are a lot

cheaper today than they were 18 months ago people had their shopping lists and if they get them at the prices they like, they'll buy them. >> not like the market is being cut off. >> no. >> very different feeling. i think buyers are being selective. they should maintain their flexibility. maintain your flexibility because increased probabilities of bad stuff happening it is not my base case i'm not preparing for a big tail event. we just had one. so that's not likely to happen again. but, yeah, dealing with a different rate structure, dealing with increased default rates or better margins, you have to prepare for that if you are well prepared for that, there is going to be plenty of value as an investor or acquirer. it is the same analysis you should be doing. >> and the meantime you sold your own business. some deal-making. >> it was an accident. you're not here with them. how is that integration going. what has it meant for some of your clients

>> we're still in the early days we cleared it is early days we're running our business they're running their business we're working at how we can make a big impact the things we do at cowen are things that they don't necessarily do specifically at td, especially here in the states and vice versa there is so much they do here in the united states that we don't do and so this is a natural affinity as we have gotten to know more people, past few months, beyond just the senior management, it is a great fit and we're really looking forward to it. i can't wait to get started. and i think there is a -- pretty pervasive feeling on both sides. >> jeff, thank you for coming by. >> yeah. good to see you. >> jeff solomon, ceo of cowen. the highs of the day up more than 350 on the dow. s&p up 1.6%. the nasdaq jumps 2.3%.

third day in a row going strong. helps to have lower treasury yields, weaker dollar. oil prices are firmer. energy is the only sector lower now in the s&p 500 mixed earnings, including upbeat ones with guidance like coke alphabet, it is picking up steam here into the close. we'll wrbreak down the key numb to watch you can listen to "closing bell" on the go on your favorite podcast app. we'll be right back with the dow up 350 power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are.

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check out our stealth mover. planet fitness stock is putting on some muscle today. piper sandler pumping up its rating on the stock from overweight to neutral with more than 30% decline this year the analysts, they're saying teenagers are increasingly interested in planet fitness, which should work out well for investors. pay pal shares are popping on a big e-commerce partnership for its venmo business we'll share the details straight ahead. that story, plus gm revving higher and countdown to alphabet earnings when we take you inside the market zone. the dow is up 357. me depot biggest contributor we'll be right back. our concerns are all in our head. here, we don't think we should pay more than men for the same thing.

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so you won't miss an opportunity we are now in the closing bell market zone mike santoli here to break down the crucial moments of the trading day. plus, phil lebeau and deirdre bosa we have climbed here throughout the final hour of trading. it has been strong all day now up 350 on the dow. energy about to go positive which means every sector is higher and the s&p is up 1.65%. not bad if you're stringing together a few days of gains seasonality is working in favor and things like the buyback window is starting to open but fundamentally has anything changed? >> i don't think too much has changed in a radical way in

terms of corporate fundamentals. i do thinkthat, you know, we basically arguably priced in an awful lot near the lows. i keep saying that we're up 6 days out of the last nine more than 1% in the s&p 500. there was a sense of being underinvested if things weren't go to be getting worse in a hurry. i think the companies, you know, it is obviously a lot of give and take with the earnings reports. but there is not a sense out there it is spilling over the edge that you're seeing estimates for next quarter, next year there is an undertow for sure. you get down 15 times forward earnings in the s&p 500, it isn't like we weren't expecting great things the market is up for the next test it just clicked up to the 50 day average, the minus 20% level the s&p 500 from its all time high. >> they're saying it is not oversold anymore

that raises the pressure on earnings tonight and into this tech earnings period that we're going to get to in the next few days look at coke shares moving higher today, adding to 5% gains this month proving people are paying up for beverages. coca-cola's goreorganic revenue gaining, it is passing on to the consumer now volumes grew 4%. demand was strong as well. it was broad double digit growth for coke zero also in other categories like fair life milk and at home and away from home coke is raising guidance for the year despite economic uncertainty and rising dollar. i asked james quincey about his upbeat outlook and confidence to raise guidance this morning. >> good number of years refocusing on getting better marketing, better innovation, really revenue growth management, that combination of the right package, and price

point, and really executed by our partners that's driven the momentum of the coke system. confident in our strategy, in terms of seeing this through in the year to go, that's why we raised our guidance. >> and even though coke's results are strong, quincy did say they're increasing signs in europe and the u.s., consumer is starting to hurt sacrificing discretionary spending, but coca-cola is not adjusting its strategy on ads, i asked if he was cutting back on ad spending, not yet or the portfolio at this point, which has led to share gains and growth which does make you wonder, some of the defensive parts of the market, especially beverages, even within consumer staples have worked really well. what are the valuations like and do you continue to bet on them >> the valuations are still on the richer side. that's the way they tend to stay when you have earnings reliability. the dollar coming off the highs a little bit doesn't hurt. clearly they have taken their

price actions, it is not clear that's going to be very strong part of the story from here on out. coke coa cola, yields around 3%, when it has gotten below 3% in recent years, it means the stock is looking richer i wouldn't say that's a hard and fast rule. that has been generally how it has tended to trade. >> let's hit gm as well. it is one of the best performers now in the s&p it did pose a slight revenue miss the automaker reaffirming full year guidance earlier today on cnbc, mary barra said demand remains strong despite economic head winds and discussed the ongoing chip shortage challenges listen. >> we are seeing a steady improvement and proud of the team we were able to clear 75% of what we had in inventory because of the chip shortage i wouldn't say we're completely out of it yet. it is more volatile than i would expect at this point but we're continuing to work

through the different challenges and quarter by quarter we're seeing it improve. >> phil lebeau joins us. when will the chip shortage be in the rear view mirror for gm, and other automakers, as a swing factor for earnings? >> i think it is diminished in terms of impact on earnings. but having said that, everybody we talked with in the auto industry says the chip crisis will be around in some fashion at least through the first half of next year now, are we expecting the kind of impact we saw in the first quarter or the second quarter where you would get a complete miss because like general motors in the second quarter, they couldn't deliver about 95,000 vehicles i don't think we'll see that the proof is you're seeing greater inventory at dealerships. still low relative to the historical norms, but the industry is starting to build more vehicles that are ending up at dealerships. >> and on demand, she sounded pretty bullish

so we have ford tomorrow are you hearing anything differently as far as consumers with the rise in rates, what that is going to do to auto loans and overall high ticket discretionary spending >> i think in terms of if you see weakness within the auto industry, right now we're seeing it at the lower end of the market, because of higher interest rates, what you're seeing in terms of auto loan payments that's the area that is feeling it the most at this point. but let's be clear you see rates continue to move higher and higher over an extended period of time. that will have an impact, it will slow down demand in some fashion. there is more demand than supply and it is probably going to be like that at least through the first quarter. >> phil lebeau, very helpful, thank you. gm working well today. amazon announcing it will allow customers to use pay pal's venmo as a payment option on both its website and app. that news, look at that, sending paypal shares higher today 7.2%.

kate rooney joins us what is the venmo news mean for paypal could we see other deals like this amazon is as good as it gets when it comes to deals. >> it does speak to paypal's focus and this turn around plan that they have been under and more discipline in general you've seen that in silicon valley paypal is a great example of this based on the elliott investment, $2 billion or $2 billion stake in paypal now. driving more discipline and they are talking about checkout that's what most people use paypal for at this point they're looking to strategically take that over to venmo, which has been more about sending money to friends and family, started as a free service, and that has completely worked if you look at degreei growing use. it hasn't quite translated to paypal's bottom line yet so check out in these big partnerships with the likes of amazon, fit into that story,

making check out more viable, letting people use venmo and spend other venmo accounts versus cashing out and going straight to your bank account. and that's a good point on more partnerships ahead they had a couple of strategic partnerships here, but amazon absolutely the biggest, and you can see more of this because you really do need to drive that consumer side of it. you offered on venmo, make sure people are aware of it and will use it and implement it. but ahead of black friday, we'll see the results soon >> yeah. paypal, still down 64% or so in the last 12 months 30% off the high >> one of the better >> yeah. since the activists. kate, thank you. kate rooney. alphabet shares, we'll look higher ahead of the earnings after the bell today deirdre bosa joins us. what is the key number we should be watching for? >> i would say it is guidance. that doesn't give guidance, i'll fall back on revenue, expected to be north of $70 billion in

the quarter. the reason i say this is go to be important is because this is a business model that has held up better than those of meta and snap because search engine ads are seen as more resilient than those kinds of ads look another youtube revenue as well that's key here. it is a little more vulnerable to a slowdown in ad spending also look for cloud and remember this is a division that is still unprofitable so will losses widen here as it continues to be an investment mode and take market share i guess the key question is are there going to be more cuts ahead? they said that they wanted to see 20% more efficiency. what do they need to get there >> we'll be watching deirdre, thank you very much. mike, you have been watching the valuation gap between microsoft and alphabet >> yeah, in particular how alphabet itself has really had its valuation compressed mostly because of what's going on with its peers and the

concerns in general about digital advertising and also wherever their business bumps up against tiktok on the youtube side of things if you look at the way that the forward pe of alphabet has come down, it is close to where the overall market is. it is rare over its history for google to trade inline microsoft is down quite a bit too, from well over 30 times forward earnings, still got a little more of that stability premium in there this is the market's way of saying we're not that confident that google can continue to grow at the rates we have become accustomed to, which used to be close to 15, 20% top line, closer to 0 in10 in this quarter the market has gone a long way to lowering expectations >> meta and amazon, what is the broader tech setup into earnings >> all pretty similar. meta has been beaten up. i think that's about the strategic long-term investment plans and whether they can continue to hang on to the cash

flows they already have. that's a separate story. the rest of them is about we got overexcited, stocks got crowded. we had rates go up all the reasons you know the other piece of it is they used to have scarcity value for having reliable double digit topline growth in the pandemic the s&p 500 as a whole has double digit top line growth now because the nominal economy has been growing faster. that's not going to continue forever. that's the case now. >> if you look at what's leading now, apple, tesla, meta, microsoft, those are what is driving the gains. two minutes to go in the trading day. what do you see in the internals as we have seen improvement throughout the hour. >> it has been pretty strong in terms of inclusiveness and how many stocks are to the upside and the volumes. 80% upside volume, better than that yesterday was not so good on the -- this is a switch. we have referred a couple of times to the dollar coming off the highs. this is the way the u.s. dollar index looks on year to date basis. it has rolled 110, the uptrend

started to undo itself that's not the case yet. it is close. the volatility index giving way, down a point and a half, under 29, very grudging on the downside pc inflation number coming up at the end of the week. the fed meeting the week from tomorrow a lot of reasons for people to stay uneasy. but so far the market performance, the stock market performance has taken a little bit of that anxiety out of the vix. >> looks like we'll get three days in a row of gains here. first time since september or so dow up 323, near the highs of the day. the biggest contributors to the dow gains now, home depot, american express, salesforce, boeing, you got a number of winners, the drag is travelers, united health and amgen. every sector except for energy is higher now. you still got real estate in the lead materials, communication services, consumer discretionary, all strong. tech is a winner today, though

look at the nasdaq 2.25%. apple, tesla, microsoft, nvidia, paypal, alphabet that's going to do it for me on "closing bell. see you tomorrow now into "overtime" with scott wapner all right, sara, thank you very much. welcome, everybody to "overtime. i'm scott wapner you heard the bells. we're getting started from post nine at the new york stock exchange what an hour we have in store for you today. right to our talk of the tape. marquis earnings from microsoft and alphabet, they're imminent with some calling it the most critical time for tech in years. chipotle, visa, texas instruments, spotify hitting momentarily. reporters are standing by. experts are with the numbers and the analysis we have the stock moves an