therapist is disney after all it's gone through. we have a couple of seconds, i know that's one of your picks here based on its franchise strength and so forth. >> netflix as well. >> steve grasso, great to see you. have a great holiday see you next year. >> you too take care. >> thanks for watching power lunch, we'll hope to see you tomorrow. and "closing bell" starts right now. >> thank you, kelly, thank you, tyler. stocks getting a big boost as strong earnings and upbeat data give confidence to the bulls this is the make or break hour for your money welcome to the closing bell, i'm dominic chu in for sara eisen today. as we head toward the all important power. dow industrial up 1 1/2%, same for the s&p 500, and the nasdaq composite all up across the board, that 1 1/2% mark, the 10-year benchmark, just at a hair, 3.69%. and check out the names. two of them driving the narrative today.

nike and fedex, both sharply higher on the back of earnings reports. nike is the best performing stock in the dow jones industrial stock today, and ahead we'll hear both sides of the debate on that athletic app apparel giant. and we'll talk about the latest twists and turns in the musk twitter tesla saga we're joined by venture capitalist, erik hippeau senior markets commentator, mike santoli is here. >> this is a good rally, something we can hang or hat on. >> regaining most of the losses for this week. up to the 3,500 level. a combination of better than expected consumer confidence, the fact that, you know, nike's underlying sales growth remain strong, though you can't necessarily say that's the case for all companies, that was a

good boost and a little bit of a bounce in some of the beaten down tech names and the fact that the s&p did not break down below the 3,700 level. we have kept the shelf in tack that i have been pointing to hard to say how long this carries, there has been a pattern of weakness followed by strength, that should be present in the latter part of december anyway that put aside, look at the pace of economic activity domestically this is a ten factor, broad realtime gauge of the pace of gdp growth it's declined pretty much right down to the zero line. we'll get an update tomorrow it's close to 0. back here in the 2010s, it was huddling in the 1, 2,% range this is the global financial cries. here's the covid crash, the weekly pace of activity just stopped, and then the biggest

comeback in history. my point is it's very difficult, given the absolute high level of economic activity we had all through here to say that this slow down means we have to head into something very painful in terms of an outright downturn in the economy. it's tough to read ic that's why the market is on its heels. whether it's a moderation in growth >> the chart puts it in clear perspective. it has been a precipitous decline but puts us right to where we have been in every economic expansion going all the way back to the end of the financial crisis >> obviously the trajectory is not helpful in combination with the treasury-year-old curve and the fed having tightened a lot i get why people are nervous this is going to plunge below zero it's a weird cycle it's tough to handicap from

here. >> we'll see you later in the show thank you very much for that for more on the market, citi u.s. equity strategist scott kroen irig, there's a sen we could be talking ours inelve into a recession so what exactly then is the path for markets if we're in this path of uncertainty with the economic story. >> it's the topic dejour, and the way we're thinking about it, we have corrected with the up tick this year that's manifested in the s&p draw down, mostly valuation, as opposed to earnings driven. next year, our view is str straightforward. the odds for a mild recession scenario, that's the base case

whether it hits or not, we think the recession effects are pulled forward in the first part of the year, and so where it gets kind of tricky here in our view is that, you know, we're finishing the year presumably on a stronger note. i think we have to expect weakness in the start of the year as we factor in the early comments in terms of ongoing deceleration of key macros while the fed keeps its hawkish spin on rates o throut there, and q4 reporting, we have to expect that companies will probably be a bit more specific in '23 guidance, and we expect numbers will triple lower. >> and not just that, scott, it's also about the opportunity this particular environment, this overall narrative for some of the biggest companies you have cover if you're the ceo of cfo of a big public company to say that economic fears are going to provide a head wind for

your business, why wouldn't you be taking down expectations in the coming reporting periods. >> that makes perfect sense. you want to be cautious, given the uncertainty that prevails. the flip side of this is we haven't even gotten to '23 yet but you begin to start talking about what is the global economic set up look like headed into '24 what's on the other side of this there, if you presume higher than previous inflation levels, the outlook is probably still for a fairly sluggish broader economic circumstance going into '24. >> if that's the case then, does that mean that we could see materially weaker times ahead for the market that provides a better buying opportunity than what we currently have right now at the end of 2022 >> the way we're setting it up is we got the q4 risk on rally we were hoping for that got us to our year end

4,000 target we're single .3700 for mid '23, but the expectation is that we have been arguing a drawn down in the first part of the year, around the circumstance i mentioned. in our view that's a buying opportunity. then as you go into the springtime frame, you get some lessening of the fed overhang, and on that alone, you begin to get valuation relief our 4,000 end of '23 target looks flattish but in anticipation of great trading opportunities and making the case that in a recession conditions you see single stock dispersion increase. we think next year will actually be a great year forstock selection. >> stock pickers market, and that's what a lot of folks have been waiting for, the albility t get out performance. if you are advising our stock picking viewers throughout and listeners, where should they be looking, what sectors, industry

groups and stocks. >> we're playing a balancing act. going into the first part of next year, we have gone over weight energy. we have gone over weight real estate we have maintained an overweight in health care, and surprisingly, we're constructive on industrials which we just moved to overweight. here we think you're going to see a fair amount of earnings resilience on that part of the market, the production side relative to the consumer side. we're looking for a combination of characteristic where is we can also benefit from a risk on at con attribute. it dials you into the energy and industrial sectors. >> and before we let you go, one last thought because you're a strategy, you model stuff out a lot. what are you assuming the ending fed funds rate will be when they finish their tightening cycle? s >> look, the house projection is a level north of five. i think that's going to follow the data here, and i think what the market is expecting right now at a level approaching five

looks to me about right. i don't think the fed comes off this hawkish narrative inflation indicators are where they are, i think the narrative is changing a fair amount by the time we get to the springtime frame. >> scott cronert at citi group, thank you very much, we appreciate it. elon musk now saying he'll indeed step down as twitter ceo once he finds someone quote unquote foolish enough to take the job. we'll ask venture capitalist eric hippeau about the drama at twitter, you're watching "closing bell" on cnbc we'll be back after this

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welcome back to the show elon musk may soon be stepping back at twitter, tweeting last night, quote, i will resign as ceo as soon as i find someone foolish enough to take the job after that, i will just run the software and servers teams end quote. now, this comes after he reportedly reached out to investors earlier this week to raise new funding for the company. so joining us now is eric hippeau. eric, this is interesting only because usually when we talk about companies raising money in this kind of capacity, it is maybe for earlier stage companies. this is by no means an early stage company. we're talking tesla. we're talking twitter, we're

talking names that everyone's familiar with. i wonder from your perspective, is elon musk taking the right strategy with regard to managing both of these companies this this current environment >> well, he's done an incredible job with tesla, and we should probably mention also spacex, but his ownership of twitter so far has been completely chaotic and surprisingly so. he immediately fired more than half the staff by the way, it's surprising that the service is still up and running normally he's suspending people on a whim he's reinstating them on another whim, and so it's only normal, i believe, that he would want to have a ceo someone who can steady the ship, and, you know, make the rules transparent, and understandable to everybody twitter is incredibly, you know, the main way that people disseminate news and information. it's, you know, it has open

discussions. it's the public square, and i really hope that he can stabilize this platform. >> you know, eric, what's interesting about this whole dynamic is elon musk has seen success in his investments and his operational control of companies through just about every stage of development from early stage all the way to a mature company, you could argue, like tesla what exactly is in his mind do you feel that is perhaps keeping him tied to the way he is, both twitter and tesla. do you think it's time for him to focus on skrujust one of the and of course that should be tesla, right >> he's never really focused on a single company he basically divides his time. he doesn't multitask he divides his time for tesla and space ex but with twitter, he has a

different animal on his hands. it's a social network. there's a lot of undercurrents, political under currents, other undercurrents. he has to deal with, you know, rules that he feels were unfair by banning people who should not have been banned he's not replacing it yet with something that people can feel comfortable with he's lost a lot of advertisers in a nanosecond, which, you know, normally you wouldn't do advertisers are very very, you know, conscious about where they put their ads. they want their ads to be safe their brand has to be safe, and so he has to fix all of this, and it's very different than, you know, fixing whatever the issues are with tesla. it's something that he has never done before. >> now, eric, you mentioned before this, or we did, this idea that there's fundraising, possibly trying to get more capital to shore up things

within musk's venture world and everything else that's happening with spacex and twitter and tesla and everything else. i wonder, from a private valuations perspective, we had rashear sharma on talking about the value of private companies do you feel that this is a time that private companies and private company valuations, where new capital will flow into funding some of these ventures or funding takeovers of some of these ventures we didn't see a lot of that this year >> what we find is there's a lot of capital there's capital to be found in the early stages let's call it series a, series b, but that capital has become really scarce in the later stages, and as you pointed out, we are in the complete ipo drought, one that we haven't seen probably since the dot com crash in 2000. that has an influence over the

overall private market, and i think they're trying to figure out, what's the bottom, you know, where can i feel comfortable that i'm not, unlike 2021, i'm not over paying for companies. i don't think they are there yet. there are signs of stability the big tech stocks like facebook, sorry, like microsoft and google andamazon, you know yes, they're down, you know, 38%, but they're at least stabilized in the case of meta, and snap, the social networks, the decline has been much more serious that's for tidifferent reasons. i think there's hope to think that, you know, sometimes mid-2023, perhaps, that we will see late stages come back to the private market and invest the funds they have already raised it's not like they need to raise funds. these are raised, ready to be deployed. >> lastly, before we let you go

with the last few moments here speaking of investors trying to come back to the market or finding some stability, i wonder what your thoughts are on crypto we have sam bankman-fried to be back in the u.s. to face charges. we have this crypto winter that a lot of folks talked about. this idea that you could see a lot of pessimism heading towards crypto we haven't seen a lot of it play out just yet do you think there's a future for crypto >> what we're seeing is the demise of ftx, we've seen the demise of centralized exchanges which really don't operate in a crypto way they're operating by traditional exchanges with people in the middle and it's not all driven by technology, and, you know, there's a lack of transparency, maybe there's fraud. there's all kinds of things going on the promise of crypto, which is a completely decentralized

system, transactions are verified by computers, that promise still exists it's probably going to be delayed as a result of these events, of these crashes that we just saw. >> all right eric hippeau, thank you very much happy holidays, sir. >> to you too. let's check on the markets the dow currently up about 500 points, 1 1/2% similar for the s&p 500 and the nasdaq as well coming up next, you've got sbf, we just talked about him, heading to the usa, agreed to be extradited in a bahamas court. as we head to break, check out the stickers on cnbc.com tesla, it's always in the top ten, but took the top spot, supplanting the ten-year treasury note yield, which is almost always number one, and nike, apple and the s&p 500 all very searched on the cc.nbcom

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welcome back, sam bankman-fried telling a judge in a bahama's court that he has agreed to be extradited to the united states, where he faces a slew of charges tied to the collapse of ftx. >> even though sam bankman-fried agreed to extradition and going into u.s. custody, nbc reports that he is still sitting in a courteous in the bahamas, walw waiting to fly to the u.s. the magistrate judge agreed to the extradition. the latest we heard, the foreign affairs minister fred mitchell has to sign out of on the extradition before he can leave the courthouse, let alone the country. >> okay. so if that's the case, we've seen days and days worth of back

and forth, he's going to surrender, he's not going to surrender, we have heard about terrible jail cell conditions. what exactly is the mood in the courtroom right now with regard to what he's going to do and when he's going to do it >> right earlier today there was definitely a lot of emotion in the room bankman-fried was heard muttering to himself at one point. he hugged his attorney at the end of the proceedings, according to an nbc news producer in the courtroom. i think the mood in terms of next steps is he wants out in the hearing, his local attorney red from an affidavit telling the court bankman-fried was agreeing to return to the u.s., and also added that bankman-fried was anxious to leave. again, no surprise as you said considering what we have heard about fox hill prison and nassau what's unclear is how his return to the would help plug this $8 billion hole in the balance sheet which the feds say came as a result of bankman-fried's

risky trading and extravagant spending by ftx executives. >> we're watching closely to see whether or not or when he lands on u.s. shores nike shares are soaring and having the best impact on the dow after a big earnings beat yesterday. up next, a debate on whether up next, a debate on whether this stock has more room to hello, world. or is it goodbye? you know, it seems like hope and trust are in short supply. [clap] now, as businesses we can blame and shame. or...

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nike shares are surging. you can see they're up 13% on roughly 26 million shares of volume, to give you reference over the last couple of weeks, the average daily volume is 9 million shares all of this on the back of earnings, so should investors dive into the stock or hold back joining us now is tom of web bush securities and sam poser. they are our bull and bear respectively let's start with the bullish case hast w that's what the market is doing right now. why should investors buy into nike right now >> i think nike is one of the best brands, one of the highest quality businesses i cover there's a few important developments number one, demand is extremely strong 30% outside china.

number two, inventory growth is moderating, and the peak is behind them, and that should help margins and then lastly, china, which has been a big head wind for the company, reflected back positively if you can get china growing again, that's important for the story, so all in, you know, strong demand, inventory improving. china getting better it seems like the arrows are pointing in the right direction. >> the arrows are pointing in the right direction, after we saw this report. but sam, we're still talking about a stock that even with today's gains is still down 30% year to date there's probably a reason why there has been pessimism aside from the fact that the overall market is down, right? >> yeah, i mean, look, i agree with tom it is a very great brand it's not being managed as well as it needs to be. the inventory levels, while improving to some degree, are

still up 72% from the second quarter of 19. and the street estimates are looking for a 21% increase in cost of goods over the third quarter of 19. so, you know, i don't think you need 71% more inventory to do 20% more in revenue in the quarter. we're talking about over 19 weeks, forward supply of goods on hand, and while things settle down a little bit in absolute dollars from the first quarter from a weekly supply of goods, they are at or exceptionally close to a record level. and i model back to 2006 and they have averaged four weeks of supply around 13 that should be a little bit higher now given the growth of their direct-to-consumer business and, you know, i agree with tom,

you know, china should be turning around but there's just so many unknowns there i can't -- i can't put the valuation above its five-year average here and i do anticipate that they'll get out of their own way i just think it's going to take some time, and i think we have at least another good hiccup before we get where the bulls think it's going right now >> okay. but sam, i'm going to take the other side here, because this is what i want to do, facilitate debate we're talking about a stock in nike, that reported the inventory levels are yes, worse off than they were, higher than they were a year ago, but incrementally on a quarter to quarter basis, better than they were aren't things getting better, and don't you want to be early before everything kafs catches the trend and the ship has said. >> i think it depends when you

think that is going to go up and given that i think they need to be more promotional than they're letting on the question then becomes how good is the product they have coming in, and then how much is nike training the consumer to look for sale when they've made it very clear they're going to protect their best franchises, jordan, air force ones, dunks and others, but, you know, there's a lot of more moderate product that, you know, there's just not a lot of newness out there, and if, you know, there's a black t-shirt that you could buy, you know, normally $40, buying it at 29-9. it better be a new black t-shirt to make you pay $40 again. the more they promote, the more potential there is for consumers to get comfortable buying stuff on sale, and that is not established if that's getting better anytime soon.

>> that's where the brand power comes in, tom, and i'll give you the last word here the brand power staying there, has to carry through in order for your thesis to survive, we know costs are rising and profit margins are getting squeezed if they have to become more promotional, how much more does it become a secular theme for a brand like nike. >> nike does not want to be a promotional brand and a brand on discount they have done a great job protecting the brand there are a couple of things i would point to that i thought was very encouraging number one, they beat both top line, and gross margin gross margin came in better than they had guided to if they were being hyper promotional or over promotional, you would have seen the top line be strong. that tells you the incremental revenue they generated above

their plan was largely full price revenue, rather than promo and narcmark down. that was encouraging i would point out that the inventory overhang have been mostly on the apparel side but footwear knocked it absolutely out of the park footwear grew in the third 30s whereas apparel was up 14% or so so footwear, which has been more full price rather than apparel was the stronger category, which i think, again, demonstrates that there's brand heat, there's demand for the brand at full price, you know, when the product is right, and when it's seasonal. >> perhaps the fact that you're seeing growth and not just direct to consumer but the digital and ecommerce channels as well, probably part of the story. tom, thank you very much sam poser, thank you as well for that debate on nike. we appreciate it now here's where we stand in the markets right now. musk lost neighbor just a little tad bit of steam here. but not so much.

still about 1 1/2% gains for the dow, s&p 500, and nasdaq by the way, the russell 2000 small cap index is up to 1,173, up 1 1/2%. boeing shares are flying high as it nears congressional approval to delay certification of its 737 max planes coming up on the show. a top analyst on whether that stock will keep soaring. analysis help make trading feel effortless and its customizable scans with social sentiment help you find and unlock opportunities in the market with powerful, easy-to-use tools power e*trade makes complex trading easier react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity

at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. welcome back to closing bell, let's check out today's stealth mover, that is six flags. the stock is taking investors along for a nice ride like the roller coaster you're seeing

there. activist investor, landon buildings, taking a 3% stake in the amusement park operator and is pushing for the company to sell of its real estate holdings six flags releasing a statement saying quote, the board with its advisers routinely evaluates potential options to unlock shareholder value, including the monetization of real estate. six flags is encouraged by the early signs of progress against its strategic plan, and remains focused on delivering an exceptional guest experience to drive sustainable long-term earnings growth. six flags shares have been in free fall so to speak this year, because of a huge decline in attendance, following ticket price hikes. you can see the shares down 4 to 5% on a year-to-date basis i have enjoyed the product, and perhaps even one of the roller coasters you're seeing there, in fact just in the last month or so, i have taken my daughter and my mother-in-law to six flags,

great adventure tor check out te rides there. the lines were short i have been there in the summer time when the rides were long. always a fun experience through the eyes of children another major tech company on the verge of scoring a touchdown with the nfl we've got details straight ahead on that particular story plus, a bounce for boeing and energy is surging when we take you inside the market zone that's coming up after this break. oh, i can tell business is going through the “woof”. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business.

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. 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. you know what that means, we are now in the closing bell

market zone. we've got cnbc senior markets commentator, michael santoli to break down the crucial moments of the trading day we've got jeffries analyst, on boeing also our own pip pa stevens on the energy trade mike santoli, we'll begin with you. 14 minutes left in trading so far today. what has stood out in this rally we have seen it's been pretty broad based. >> a little bit of a refill of the risk appetite based on yields coming in we didn't see any macro disruption from that bank of japan exercise a couple of nights ago people pointing to that this morning. it seems like the market passed that minor test and a better consumer confidence numbers, better seasonals and some o. laggards getting a bit of relief you have to be suspicious of a rally led only by the stuff beaten up. but today the fact that industrials are working and banks are getting relief it's pretty good, at least counter trend move, and s&p 500,

actually nosing positivefor th week at this point >> what's also interesting, i'm glad you brought up the industrials trade. we are seeing boeing here as getting altitude in today's trade. one of the top gainers in the dow after nike, after lawmakers unveiled the spending bill for the coming year. included in that bill is clearance, for boeing's 737 max 7 jets and max 10 jets to get certified without upgrades that's important, and here to join us and tell us why, is an analyst at jeffries, covers boeing, aerospace, thank you for being here take us through first off why this news on this omnibus spending bill is good for boeing, and can boeing continue its upside momentum. >> thank you so much, dom. what this news means is the max 7 and 10 could get potentially certified in 2023. there's four variants of the max, max 7, 8, 9 and 10.

although the 7 and the 10 are smaller, about 25%, they're still significant. the dash 7 is significant to the largest customer, southwest airlines, and the dash-10 is a competitor where boeing is losing share why is the max so important. well, it's important because boeing is targeting about $10 billion in pre cash flow in 2025, '26 time frame and 60% of the cash flow is coming from the 737 max aircraft, which we believe they're producing at a rate of 25 per month right now, and that rate is set to double to 50 a month by 2025, and that's where a majority of the cash flow is going to go. they sell this aircraft for about 50 million, depending on the customer, with a free cash flow per aircraft of 10 million. it's 60% of the free cash flow, and they have had tons of issues since 2019 with the max

groundings still not delivering to china. and it's gaining some altitude as it has some positive momentum on the dash 7, dash 10 news. >> i guess, shee lila, the point being that these narrow body jets are a huge part of the story for boeing and its aerospace business we have mentioned over the last couple of weeks, the massive order for wide body bigger jets that they signed can you put in perspective how important the narrow body is and the wide body. >> united is the only one spending more than me this christmas. thank you, scott kirby for that. the max is 60% of boeing's free cash flow outlook. with the 787, 15 to 20% of that. the wide bodies are certainly importantm important, but because they're producing at 10 million a copy they're super important.

on the 787s, that rate is currently two per month. we forecast that going eight per month, lower than what dave calhoun says he's going to get to we think that aircraft generals 15 million cash flow, with an asp of 150 million as international travel reopens, and we're seeing that with united's order united is mostly a replacement order, not a growth order. >> before we let you go, one quick note on just how important the defense contracting business is for boeing in 2023? >> it's not important at all, unfortunately. we just hope it does nothing for boeing, and doesn't lose money other contractors are generating tons of free cash flow, but boeing's defense business is set to lose money next year. so it's a subtraction equation for boeing with defense. so we just hope there's no further losses due to higher inflation and the way they set up the contracts a few years ago. so we're bullish on defense

outside of boeing, but boeing's business we're quite bearish. alphabet is on the verge of scoring a touchdown for a hig coveted nfl service. the you tube tv is finalizing a deal for the sunday subscription package which is currently held and operated by directv. financials have not been finalized but the nfl has been seeking an agreement worth up to $3 billion per year for the rights to sunday ticket. mike san totoli, i'm a football fan, you're a football fan, maybe more a baseball fan but it's in your bailiwick this is one of the deals that has been highly anticipated and for streaming, it makes the access to every game for everyone out there who wants to pay for what is right now a 300

per year per season fee for it how big of a deal will this be for you tube, alphabet, to get rights. >> fit's a big number dollar wis for the nfl, for the particular package of rights. for alphabet as a whole, not a tremendous outlay. could be a big boost for the you tube tv boost. you're getting really the power, football fans, the ones that are really intensely interested. you could layer in sports betting information and data around it's serving the same purpose that sports programming has served forever the one bit of must have realtime programming, get people to buy and have them take the rest in this case, the rest would perhaps be a subscription to you tube tv, so an as accelerant to

that business. you can see why they might emerge as the winning bidder here >> there's a precedent when we saw the first couple of games for prime videos, nfl thursday night package, amazon kind of disclosed some of the gains that they saw in viewership, some of the drives for new subscription practice for the prime video service. would we expect to see that kind of thing for you tube tv could we expect to see a bump up just because there's such brand power for the nfl? >> i'm sure there's going to be a buffemp it's a little bit different. they're not going to have exclusivity on any other game, and out of market stuff and stuff around it. who knows exactly how big the immediate boost is going to be i think there's something significant about amazon and to a degree, the other streamers like peacock, our parent company, so training viewers to look to find the nfl sometimes other places than you're used to, and the league obviously getting more comfortable with

these alternative platforms as outlined. >> early stages for sure a pretty big deal if something were to come to fruition mike santoli, we're going to let you get ready for overtime at the top of the hour. we'll see you soon. energy is one of the best sectors today as west texas intermediate oil benchmark prices hit the highest level since early november pippa stevens joins us oil may be higher recently, but crude is ending with more of a wimper than a bang why do energy stocks keep outperforming, why can they in 2022 >> starting with oil, we have seen a huge fall since the spring oil was up today for a third day, amid optimism around china easing some of those covid restrictions, as well as a bullish inventory report and all within the backdrop of continuing to work through the sanctions of russian energy. it has fallen more than $40 since the spring energy stocks continue to lead

the group is up 60% for the year, and has led the s&p all yearlong part of the divergence is thanks to crude being sense itive to price volatility earnings and free cash flow is under pinning the stock story. the group is continuing to see a lot of under owned across wall street, amid esg concerns, and analysts are primarily benchmarking the balance sheets to crude being between $50.60 dl looking forward with out performance, you have to wonder if investors might pair some of the gains looking forward, and they have with the group falling about 8% from its november high, dom. >> pippa, we have seen a lot of talk over the last several weeks and months now about the big divergence between energy stocks and oil prices they typically trade together for intuitive reasons. can we expect to see that gap

n narrow, and is it more likely to see energy prices fall with oil prices i say all of this knowing there's so much talk of recessionary pressures in 2023. >> energy is one of the sectors that does offer earnings visibility going forward that could be a plus for investors, given there's so much uncertainty in other areas of the market right now a lot of the volatility in oil prices itself has been from geopolitical concerns and just a lot of unknowns on that front, while energy companies themselves have emerged from the pandemic with a wholly different value proposition. management is focused on returning to shareholders, and not drilling just for the sake of drilling. and so even with oil down quite a bit from its highs last spring energy companies are continue to go make money, and continuing to do very well for shareholders. looking forward, i think the consensus here is that even if

oil does trade a little bit lower, a little bit higher no matter where it trades within a region energy stocks can continue to do well. >> pippa stevens on the latest with the energy trade, the top performing sector. chip stocks outperforming the broader market as investors get set for micron's earnings after the closing bell today kristina partsinevelos joins us with the latest trade. what is the key number to watch in micron's report, and how important will it in. >> capx, we're expecting the numbers to be bad given the recent warnings that came directly from micron just in november so an important number, to answer your question, dom capital expenditures will micron continue to cut spending demand is low. inventory high memory prices keep dropping. for fact set we're expecting a q1 capex number shy of $3 billion u.s q2, 2 billion, so the second

number i'm looking at as well as inventory data i was going through a report from goldman sachs they say memory makers, days of inventory. the average days of inventory right now is sitting at 169 days versus the average normally in q3, which is 106 so we're talking about last quarter, but there's still clearly room for major improvement. you can see shares of micron moving up ever so slightly, up 2% on the quarter too, but they announced they were cutting by 20% just in november and their competitors, samsung, didn't do the same >> if we talk about the overall weakness with the inventory certainly going to be a problem. i wonder if you can take a look at micron's results, and extrapolate anything into the broader health of semiconductors, only because we have seen the chip stocks act as a market sentiment gauge >> it is one data point. but i think to your point, the

important thing is demand, especially when it comes to servers, cloud spending as well. we know it's old news now. pc and handset demand has dropped dramatically that's the next ball to fall or ball to drop within the semiconductor space in terms of demand if that continues to be weak, that bodes negatively for q1 of next year. maybe over the first half of next year is going to be weak for semiconductors, and we'll start to see a pickup. i think there's an overemphasis on certain segments, auto, for example, qualcomm being a strong player in that sense, we're not going to see every single car electrified in the next year and a half or so it's more of a long-term gain, and you can see shares are up 2%, dom, at this point, for qualcomm. >> kristina partsinevelos with the latest trade we'll keep a close eye with you

on micron shares the applause that typically happens with 30 seconds less the dow is going to finish higher by 1 1/2 points, 500 points to the up side. the s&p 500 up 1 1/2%. 55, 56 points, similar percentage gains for the nasdaq composite. you can see as we close out the day. solidly to the up side that does it for us here on "closing bell. we'll send it over to mike santoli for "overtime. >> welcome to "overtime," i'm mike santoli in for scott wapner whistleb we're just getting started at the new york stage micron earnings are about to hit the tape we'll bring you the numbers and instant stock reaction as soon as those results cross president biden and ukrainian president volodymyr zelenskyy are about to kick off a live news conference in washington. we'll take you live to