>> poetic justice. 52 billion with the payout what did he spend on twitter 44 billion a lot of that has been spent you could say. >> very good point >> all right morgan, good to be with you. >> great to be with you. >> thanks for watching "power lunch," everybody. what a busy day it's been. >> "closing bell" starts right now. stocks mostly lower here on wall street as investors weigh disappointing results from target against some upbeat economic data. welcome to "closing bell." take a look at where we stand right now. the dow's hanging on to a gain a little one s&p 500 down little more than half a percent three pogts of strength, utilities, consumer staples and healthcares. also seeing a bid for

treasuries nasdaq's under pressure. small caps hurting more. down 1.7%. check out our chart of the day target getting slammed on a bigrs9■ mi and a holiday sales warning. we'll talk more about target when we speak with the former walmart ceo. plus, we'll break down the latestx■ó■ signals from the fed look for opportunities in the bond market when we're joined by aaron brown. first, let's head over to the market dashboard with mike s santoli. what are you focused on today? >> kind of a multiday pause. holding on to the rall y off th mid october lows take a look at the s&p 500 it's kind of been hesitating here around the 4,000 level. is it stalling out, losing energy, have to pull back? just digesting those gains that's what we don't necessarily

know looks similar no matter which of those it was i would say pullback to the 38.50ish area would be no big deal a lot of divergence within the market also keeping the indexes relatively calm. take a look at this map of the october rally has taken us this morning well into the average of other years when there was a bear market in october there have been more in october than any other month it shows you there's been this 12% into a little bit of a plateau and then a rest, pullback, then maybe a stronger finish to the end of the year. this is a very rough template. it's a selected group of years only in retrospect do you know if the october low was the ultimate low, but it would be nothing unusual if this was actually the cadence we're following now. >> today's trade has a recession

vibe to it if you look at what's working, the defensive pockets. what's not working, energy, discretionary, consumer stocks got the warning from target. from micron. the idea we're really starting to weaken may be setting >> i would say it's kind of the stuff that's been working well has been pulling back. semis got way overbought in this last little short-term by the way, target has pulled back to levels last seen a month ago so it's a terrible day, but you have to take it in context with where we came from. i would say sure, you have this deeply inverted yield curve which say we're bracing for weakness in the economy, but the overall sales were so strong the estimates are going up, not down >> they're spending, but most of it was higher prices >> mike, thank you see you in market zone

let's dive into the stock story of the day, which is target, which is plummeting because investors are concerned about the sharp decline the company is seeing this quarter and next in consumer spending. third quarter earnings per share came in well below what wall street was expecting, $2.16. a miss primarily on lower risk margins of 24.7% versus the street's 26.2 because sales were overall fine, but target had to be more promotional which cuts into profitability and in the holiday quarter sales guidance and margin guidance were both lowered. margin by half what is happening here i spoke with the cfo he says comp sales took a sharp turn lower after peaking up 4% in september but then by october, they were less than 1% or right around there and continued to weaken into early november he blames the economy for what he calls a slowdown in discretionary spending he says the weakness is showing

up in apparel. showing up in home goods, hard line, which can be appliances or tools, and toys. food and beauty stays strong as a result, he expects the holiday season to be more promotional to help offset what z■e. the company announced a 2 to $3 billion cost cutting initiative and he told me it's not expected to inclaude layoffs. they are continuing to hire. the focus on that is bringing out cost efficiencies in places like delivery and ecommerce and he's expecting there's a big opportunity there to boost productivity and help profitability. overall though, target doesn't necessarily paint a great picture of how the consumer is holding up despite the retail sales number showing 1.3% jump in october that was the best we've seen in months compared with the prior months, but a lot of that reflects the higher prices we're paying for everything. most but not all is inflation.

so what does this mean for the economy and the consumer let's bring in the former ceo of walmart. thank you. do you take target as a bellwether for consumer spending on discretionary items here? >> welcome to the whacky world of retail where somebody does good, somebody does bad and guess what happens it's a really interesting story to see target and walmart release so close together with what looks like different results, but when you peel it back, it was quite similar walmart's growth as everybody knows came from their food business and target talked about struggles in their general merchandise areas as you just told everybody if you peel it back and look at walmart, that was negative in their release, too those categories, so you know, if this is the time when the walmart folks are real glad to be selling a lot of food and now

that food growth is inflation. so by and large what we're seeing is promotional activity from the consumer that's driven in part by the consumer and their you know, interest in being weary with their spending, but in large part, driven by the absurd inventory growth retailers are having to liquidate. >> how do you square this with a better retail sales number we got for october and not as bad numbers say for lowe's, home depot yesterday? these weren't disasters on consumer spending? >> no, i think you're going to see retailers in category that are going to do quite well i think home improvement with all the equity values that have built one a good place if you're betting on retail. food when food inflation is double digit is going to continue to drive traffic and volume across the board. that's why walmart's doing so

well everything else is purely promotional because the consumer's going to be weary >> if inflation is really starting to hit the consumer hard, which is basically what target told us that happened from september to october, we talked to the ceo of chipotle yesterday on the show. listen to what he said about where inflation is headed. >> we roughly 10% inflation in the fourth quarter and you know, we continue to see elevated prices as it relates to beef, dairy, tortillas, oil. so the good news it plateaued, but it's still at a fairly elevated level and you know, that's going to continue with pressure throughout. >> for people excited about the fact inflation rates are starting to come down, not so much in food if you listen to

that still stubbornly high. what's that going mean for consumer spending? >> i agree with him. you can see it in walmart's release, too their food business was up, but their gross margin was down. so they haven't even priced in all of their cost increases yet and i think that eventually, those things will have to work their way through the system at retail and restaurants i expect to see things you know continue at a high level in the fourth quarter and start to turn down in the first and second quarter next year. >> given the warning we got from target and we're starting to get from others and you can see some of that in the retail sales report department stores were flat. apparel. these are not hot areas of spending right now who else is at risk? for the fourth quarter >> oh, gosh. if you're a broad lines retailer like kohl's, penny's department store, those guys are going to have it really tough because discretionary sales are

challenged supply chains left us after having empty supply chains, they left us with a glut and you don't have food to drive your business >> kohl's reports on thursday. thank you very much. >> thanks. >> former head of walmart u.s. san francisco fed president pouring cold water on any hopes of a pause in interest rate increases today on cnbc. listen >> pausing is off the table right now. it's not even part of the discussion right x■x■x■!9 the)■z■is rightly in slowing1jm■ the pace. >> after the break, we'll ask pimco's erin brown for her take on the path forward and how that is informing her investment decisions. making changes lately. dow has gone negative. down 39 points now you're watching "closing bl" cc.el

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stocks are mostly in the head as we head toward the close with the nasdaq seeing the sharpest pullback down 1.6%. small caps are down 2% today, we got new color on fed policy here's mary daley on "squawk on the street" dashing any hopes for a rate hike pause. >> pausing is off the table right now. not even part of the discussion. right now, the discussion is rightly in slowing the pace and putting the pace discussion in the background, focusing our attention on the level that's being restricted >> saying signs of deceleration

and inflation and hiring conditions would make him more comfortable down shift to be a 50 basis point hike. joining us now is erin brown of pimco who published her asset allocation outlook today is this a big shift for you guys now embracing bonds after a terrible year? >> it has been throughout most of this year, we have been underweight bonds and we are now starting to shift to see value within certain segments of the fixed income market particularly those that are higher quality that offer good return with low default risk we think those will outperform in the year ahead. particularly given the starting level for fixed income yields. these take more risk for high quality corporates about 5.5 to 6%. that'só

year per form better. >> so what does it mean for stocks stocks are having a, they've been actually down bing better it's been the opposite for most of the year where stocks and bonds sell off together. is this constructive for stocks as well? >> it's typically an environment where bonds do poorly and equities do okay on a relative basis. as you start to move into a

recessionary basis, that's where the scales tip and owning portfolios relative to equities and we think we're at that tipping point right now. we think that equities are going to continue to remain weak, but bonds should start to deliver positive returns as we move deeper into recession and that negative stock bond correlation will reassert itself in 2023 that certainly is one of the things that's underpinning our view for equities specifically, you can't, it's very hard to invest in equities when you have bond volatility as volatile as it is today. so we need to see the fixed income asset core stabilize before you can think about investing in equities. right now, forward earnings for the s&p 500 are still up 6% versus historical recessions where earnings fall 15% during a recession. >> are you get anything from any

of these fed comments that moves the needle one way or another? clearly they're not all exactly on the same page in terms of how much they want to hike rates and how strongly and quickly but overall, it feels like nobody wants a pause yet they feel like they have work to do, but they are paying attention to some of these inflation readings and worse readings on the economy. >> over the past year, we've thought inflation peaked i think we're still in early days with making a big call with respect to inflation the fed is probably in a similar camp second, inflation even when it does peak, is not expected to come down rapidly and certainly not expected to be falling back down to within their central

bank sort of target for 2% inflation plus or minus. so even after we see inflation peak, we expect it's going to remain persistent. we expect it's going to remain sticky and elevated so that's going to create a challenge for the fed to you know, sort of the navigate around this environment. the third thing is we've had a significant sort of rerating in both stocks and bonds since the c cpi print and the fed is cognizant of that. the fed wants them to remain tight. so they have this challenge that the more financial easing we see, the more higher they're going to have to hike rates. they're trying to keep that framework in mind. >> don't let the market get too excited. >> exactly >> thank you very much for joining us on the new strategy from pimco the s&p 500 just hit a session low. right now. low of the day on the dow is

down 75. we're down 54. s&p down almost a full percent tesla's weighing hard, nvidia, all the chips are getting slammed on the new outlook from micron also up next, the latest on the new ftx saga also, a push for congress. check out the top tickers. no surprise target takes the top spot today after getting crushed on earnings followed by the ten-year yield and there's buying of bonds datoy. yields are lower saw good auction on the session. tesla, amazon and s&p 500 all weaker at the moment we'll be right back.

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check out today's rumor. it is zoom video investors are not remotely happy about this cutting its price target to 72 from 76 implying 17% downside from tuesday's close

the analysts there believe zoom's growth prospects will be hurt by tightening corporate it budgets. there are increasing calls for regulating the crypto injury no surprise in the wake of ftx's collapse this as another crypto lender halts customer withdrawals ylan mui is at the policy summit in washington with the details i'm sure there's a lot of discussion of regulation there >> yes, i've been talking to lawmakers and lobbyists and everyone is preparing for a new wave of legislation. here at the conference, kristen gillibrand said she is working on a new stable coin bill with pat toomey and cynthia lums. she hopes to unveil that in the next several weeks and hopes to get a hearing before the end of the year they are co-sponsors of an

existing bill that would establish a new framework for assets more broadly. she wants to update there with potentially tougher capital requirements all of this is coming as crypto's reputation has taken a hit. this afternoon, janet yellen warned that more effective oversight of the industry might be needed because of what happened with ftx. she called on congress to fill in the regulatory gaps more quickly and said further interconnections of the crypto system and financial markets could raise broader stability concerns now, committees in the house and senate are planning hearings to find out what happened at ftx. industry folks here say they want to make sure any new rules are tailored for different players in the space >> thank you we will discuss the outlook for crypto regulation tomorrow when we are joined by maxine waters

on this show when we come back, semiconductor stocks falling back after micronsays they're cutting chip production. a top analyst joins us to discuss whether it's a buying opportunity for micron we'll be right back. is it possible the only thought that comes to mind is... ♪ finally? this is financial security. and lincoln financial solutions will help you get there. as you plan, protect and retire. ♪ ♪♪ the only thing i regret about my life was hiring local talent. if i knew about upwork. i would have hired actually talented people from all over the world. instead of talentless people from all over my house.

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check out shares of micron that stock under heavy pressure today after the company warned it plans to cut production of its memory chips, saying it plans to scale back its two main types by about 20% joining us now is global

semiconductor analyst, raji. is that how we take this, as a sign of increasing economic weakness >> yes the demand has weakened further even just over the course of three months worse than was expected. i think the macro has softened a lot of customers are burning through excess inventory they built up the last two years. if you recall, about 50% of micron's revenue comes from the mobile and pc markets. there was a significant overbuild the last two years because of covid, weakness in the chinese economy. that's been happening throughout the year it does not seem to be approaching a bottom that's leading to the cuts we think the bottom most likely in smartphones is going to be more in the second quarter of next year versus what we initially thought which was going to be the first quarter of

2023 >> is the chip shortage over is this where we shift to worry about demand instead of supply >> in some areas, it's over. for certain components there's excess inventory of semiconductor components going into the graphics card moment. more consumer oriented markets that have been affected because of inflation lower consumer spending. there's starting to be nor supply online for automotive and industrial and markets and data center next year's supply picture will be much better in terms of allocation of supply and availability of supply but the problem, the challenge is this is going to be coming at the point where demand is going to start to taper off and decline in other markets a lot of that has been priced into the stocks for most of this year anticipating that that inventory correction.

but you know, given the kind of the massive rebound in semis the last month or so, we've seen a big snapback we're more inclined to be selling to some of the strength and look for other more attractive entry points. >> does that include nvidia which reports after the bell >> yeah, i think nvidia's up 45% off the bottom the last four weeks. so significant outperformance versus the stocks. we expect to have a mixed quarter with nvidia. we continue to see weakness in the gaming market. two-thirds of their gaming revenue is tied to the chinese economy and european economy that's two-thirds. that needs to be cleared out they've been doing a good job

under shipping that market to try to clear it out, but we think it's got another quarter or so to go. on the data center side, we're expecting to hear mixed data points on the positive side, there's still spending from the hyper scalers on artificial intelligence and machine learning, natural language processing engines we don't see that slowing down but where we see a slow down within data center is in the small, medium sized businesses spend less on cloud and some weakness in the enterprise so we expect it to be a mixed bag, but nvidia's going to be important because it's basically the last semiconductor company typically is a good indication of overall data center demand, which has really been the bright spot for semis over the last several years. >> hasn't been great news for the semis, but tsmc, it got a double shot of good news with a report from bloomberg that apple

ceo tim cook is telling engineers and employees they're going to move, start sourcing some of its silicon processors from an upcoming plant they're building in arizona. at the same time, berkshire hatha hathaway taking a big stake. >> clearly the leading foundry, leading process technology they raised their outlook for '23. they have a tremendous history in introducing leading edge technology i think what's a little puzzling for me is that given some of the increasing tensions between china and the u.s. and taiwan being right in the middle of those tensions, that you know, there could be a retaliation from china and that puts them right in the middle of that potential retaliation given all the u.s. export controls that the u.s. has pushed on to china. and so to me, it's a little

puzzling that they would make that massive investment in the middle of that, those tensions, which in my mind are just going to accelerate over the next three to five years. but tsmc is the best leading edge technology in the world and there might not be much of an all terntive sem sem semiconductor companies as well. >> the stock went off in asia overnight that trades here was lower. thank you for joining us a lot of semiconductor news today. appreciate you being here. take a look at where we stand in the markets. down 37 points on the dow, it's really about the s&p and nasdaq nasdaq partly because of nvidia. tesla, apple, meta the strength is in microsoft, which is an outlier then staples

like pepsico, amgen. a new round of viral infections forcing a record number of americans to miss work and wall street is buzzing about the impact on the economy. and you can listen to closing bell on the go by following your fore avitpodcast app. we'll be right back.

what is wall street buzzing about? six days at record number of parents are missing work yiright now. 100,000 americans missed work last month because of childcare problems that's worse than at the height of covid

it's clearly a drag on productivity and could exacerbate worker shortages in a tight labor market why is this happening? if you've got kids, you know, there's this quadruple threat of infections flu, covid, cold, and rsv. we talked to dr. gunppta about t he says kids are at risk because two years of masking has weakened natural immunity and many beds meant pr children have been converted to adult beds during the pandemic. that means there's no slack in the system when we need it more than ever. he also points out many pediatric hospitals are closed because economics are worse for pediatric care clearly, the pandemic aftershocks are still very much with us. when we come back, tony dwyer

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solving today's challenges while creating future opportunities. it takes balance. cla - cpas, consultants, and wealth advisors. we'll get you there. we are now in the closing bell market zone mike santoli here to break down these crucial moments. plus, chris is here on target and walmart and tony dyer. mike, we are selling off today into the close, down 1.7% on the nasdaq most of the s&p 500 is red ewe utilities the only sector hanging on to a gain retail sales comes in better than expected. hawkish fed speak from john

williams and also goldman sachs took up its terminal rate forecast to over 5%, i think five and a quarter, which was an upgrade from where they were expecting the fed to land. >> then fed governor waller as well reiterating the message of two weeks ago from chair jay powell that essentially whatever the pace at which they go from here, even if it's half a percent in december and there after, there's still more to be done to get to where they believe rates need to go also, waller talking about how the strong job market gives the fed ammunition to continue to tighten. they don't feel as if there's this direct tradeoff just yet so things have to slow down more. so clearly, that's probably on investors minds even though it's not fresh news it's maybe contributing to the aggressive buying at the longer end of the treasury curve right now. because real sharp decline in longer term treasury yields and you know, maybe something somewhat technical, but

definitely is a key feature of this pullback in equities. >> also, so is the retail news target, we've got to talk about that, which is slumping hard right now after reporting a profit decline 50% profit decline the earnings coming a day after walmart beat earnings and raised its full year outlook. so now, it's interesting, chris, because you bought the stocks in different directions because of their differing outlooks and i'm wondering which is a bigger opportunity because now target is much cheaper than walmart, i guess because of all that discretionary exposure so which do you buy? >> definitely target at the end of the day, the consumer is weakening. discretionary purchases are softening. that's exaggerated weakness, but it's still, you still need more promotions for the consumer to buy all these covid winning categories like apparel and electronics. that's a much bigger portion of

target's mix all of target, all of walmart's comps is food and it's all driven by inflation. food inflation up mid teens. their food business, 60% of the mix up mid teens as you look out a year, the way we think about it, one, you want to get ahead of the earnings revision curve target's numbers have come way down on all these mark down and supply chain issues. we get those back next year and you can be more optimistic that further you look out on the consumer on the walmart, in a hard landing scenario, what typically happens is the consumer gets worse and all these safe stocks and categories start underperforming and food inflation is peaking and then so lastly, if you end up in a scenario where the fed starts lowering or stops raising, you want to own discretionary names. we really want to be long in buying target. the stock's holding above its june lows. so we'd be back to active buyers here >> 13 times.

walmart's trading at 20 times priced earnings. there's a valuation gap as well. chris, what about what they mentioned on shrinkage what is the problem here they mentioned organized crime and how they're having to invest more to work with law enforcement. o other retailers are experiencing this as well i thought it was notable it was mentioned twice on the earnings call. >> if you go back a couple of year, home depot started talkin about that cnbc did a whole piece on this they were going in and stealing battery powered hand tools and going on out ecommerce has enabled this to be sold online. so they are discovering warehouses full of their products this has now moved forward into the electronics cat at and now you're starting to see it hit more of the targets and walmarts of the world so it's bigger ticket kind of durable products

small kitchen appliances home depot is testing locking things up, testing with the manufacturers basically given a key to turn the product on when you pass it through the register all those efforts are pretty early on and what we really need is a more legislative and aggressive industry solution coming down from state, local, and the federal government >> so my final question since you like target so much is are you satisfyied with the measure they've taken to bring inventory down they had way too much and had to unload it and promotional prices we thought this would be over. are they dealing with the inventories in the right way and second, are they in the right product categories can you really chalk this up to

consumer discretionary weakness from the macro environment >> walmart is basically 70% grocery plus prescription and healthcare you know, it's a lot different for target target's basically 55% general merchandise. home decor small kitchen appliances electronics. so they have a much longer lead time and those categories are the ones that are a, big covid winners that are now hyper promotional in order to drive sales. and it's also up in mix in the fourth quarter they're still a little heavy as trends in general merchandise slowed through halloween, through the election and the first part of this year. still a little heavy, but we have a very high degree of confidence they will be clean. they're in a much better spot than they were one and two

quarters ago i think you enter into '23 clean and that's what drives the capture. and you'll see this upward revision cycle for target inverting what just happened over the past year >> thank you consumer discretionary versus consumer staple. walmart. big gap in those one of those names, advanced auto parts, the plummeting today, hitting its lowest level since february 2021. the retailer missing wall street's earnings estimates. customers opting for cheaper products, and a stronger dollar and inventory spending is weighing on its forecast here's the ceo earlier on "power lunch. >> we're going to finish the year with expanded margins we'll be one of the very few retailers to accomplish this this year. we're going to return close to $900 million back to our

shareholders, but we're disappointed in our top line performance as you indicated and that's what we're taking action on >> mike, i know you've been looking at this group and o'reilly automotive is up again today. that is stock that's up 18.5%. where's the distinction here what does this tell you? >> advanced has been the laggard for quite some time. be like an auto zone genuine parts. those have moved in tandem to a similar degree they've had these issues trying to convert customers more to their private label. had a hit on that level. but the result is that there's also a massive valuation gap advanced trades at ten, 11 times forward earnings those other ones where there's more predictability, where investors are much more comfortable with the outlook is 20ish times earnings for the other three. it shows you the market has kind of gotten here to a fair degree.

it also says don't pull too many m macro inferences simply because it's been about execution relative competitive position. >> thank you just a few minutes before the session, we have new york fed president john williams commenting today that monetary policy is not the best tool for financial stability. saying policy shouldn't try to be a quote jack of all trade and master of none tony dwyer joins us. that does pour a little cold water on the idea that if we weaken substantially on the markets, a huge selloff, that the fed will swoop in and fight it with cuts or easing >> it's really hard to do that when you have such a high level of inflation that's what got us to go back to the gbeginning of the year.

inflation was higher than expected that means the fed is going to have a hard time really cutting rates to come in and rescue anything at this point, the market's in this temporary sweet spot, but it would be historically unique for the yield curves to invert the way they are even the treasury yield curves and not go into a recession. so i believe clearly history shows we're going to go into a recession and the s&p has never made quote unquote the bottom prior to a recession so it's one of those that's been a 500 stock index. it's one of those times where it's a dicey environment >> so you say temporary sweet spot we're up still for the month of november you see this run going into year end? >> coming into the fourth quarter, anytime you've had a 20% or greater drop through the first three quarters in a calendar year other than the great financial crisis which credits not telling us we're in. outside of that, you had a range

of outcomes by year end of that fourth quarter of 8 to 12% it's our call is that the s&p will be up somewhere between 8 to 12% this quarter so our tactical plan in the sweet spot and the sweet spot simply means that the interest rate hikes that have taken place are slowing down economic activity and inflation's coming off a little bit as a result but you know, you still have positive growth. so that's the sweet spot a little bit lesser inflation, but still positive growth. that again i think next year is going to transition into a recession, but if the market goes up 15%, if the range of outcome is 8 to 12, that means we would get more defensive. if the market dropped this week to up 3%, same range of outcomes, then we would be adding a little bit. so on december 31st, history is clear and shows that we're going to be somewhere in there >> and tony, the market never

bottoms, what did you say, before the recession >> before the recession. >> correct >> it's confusing. i want to bring mike santoli into this. there are all these adages like that and historical patterns and some would say the market bottom comes when inflation has peaked. and history would suggest we have seen the bottom there's a lot of historical references but also mixed signals. >> there are a lot of overlapping scenarios that they can't all necessarily line up correctly. so one thing i've been saying is if the market peak was january 3rd, we don't get a recession until the early part of next year, that would seem by historical reference, too early for the stock market to peak now if we hit the bottom on october this year, that also would be almost unprecedented so i think you have to sort of be aware of all these dynamics

and how they you know, what they suggest about the probabilities, but you can't get wedded to any untemplate also when it comes to the yield curve, it's sort of saying and basically all these different yield curves we have across the maturities, so many are inverted but says recession coming, but within two years who knows what markets will do between now and then >> that's a great, it's a great point. it takes time and that's the sweet spot the yield curves invert because the growth is good enough that the fed is still tightening. short rates are tighter. long rates are dropping on the outlook for economic softness. it's happening the way it always happens. we try to make it different every cycle and it's not different. the yield curve inverts, affects credit, begins to slow down and eventually rolls over into slowing economic activity becoming negative economic activity

i've talked about, powell had better be careful channelling his inner volcker, which he did. the reason for that is they are raising rates in a historic way to a generationally levered system to spiking rates and slowing demand nobody cares about that now because it was so oversold and we're in that temporary sweet spot i want to be crystal clear by the end of this year, should be positive. but ultimately,you got to, if you do have a recession, the market should go back to lows. >> right the focus shifts to growth and not inflation. tony, appreciate it. good to have you on your latest call there's the two minute mark in the trading day. mike, what are you seeing in internals are the s&p down another percent? >> small caps are underperforming severely that usually means it's negative talk about five to six to one. getting back yesterday's strong

nu number overall volume kind of mediocre as they were on one of the rally days last week goldman sachs taking a pause today. a lot of financials, capital market stocks and value stocks it actually ran up to a break even for year. december 31st, it was 382 and change here we are just about there once again the volatility index hasn't been doing much it's been able to stay subdued as we have a very contained pullback in the s&p 500 so far 24 it's obviously getting sticky around these levels, but we're going to segue into a holiday week coming up and that often will sap volatility. >> mike, thank you as we head into the close, the dow's holding up better than some others. only down 15 unh. mcdonald's, home depot are all adding to the dow along with others like ibm, microsoft, and

w walmart. s&p 500 looks like it's going to close down about .8. utilities and staples, the only sectors to close green energy, consumer discretionary, technology tj max is going to close at a record high price today. nasdaq hit the hardest more than 1.5% that's it from me on "closing bell." overtime now with scott wapner >> thank you very much welcome. the bells were just getting started and boy, do we have a big hour nvidia and cisco earnings are imminent they are critical reads now as the state of the tech trade, chip demand, enterprise spend all being questioned we begin with our talk of the tape the environment for stocks, is it is getting better or worse? let's as