a financial adviser type that also makes the top ten. >> i had some interactions with the medical establishment and mine have been all telemed lately there is a case where -- that person was at home, i think. >> i've seen a nurse practitioner more than i've seen a doctor the past two years. >> good to have you back >> dom, thank you. >> thank you for watching "power lunch," everybody. >> "closing bell" starts right now. modest gains for the major averages after an up and down session as investors look ahead to inflation data thursday and bank earnings later this week. this is a make or break hour for your money welcome, everyone, to "closing bell." i'm sara eisen look at where we stand broadly in the market. higher on the dow by 90 points, higher today up 151, the low of the day was down 95. visa, goldman sachs and amgen adding the most. the s&p 500 is up .4%, driven by communication services some of the media names bouncing back strongly today. tech is doing well

consumer discretionary is strong amazon bounces back. the nasdaq higher by .7% tesla sitting out the rally. and the ten-year treasury note yield higher today on the back of some fed speak ahead of inflation data 3.6% check out shares of coin base, moving higher today, again, after the company announced a big reduction in head count. we'll talk about that move with an analyst who sees a lot more upside for this stock. also ahead on the show, this hour, a first on cnbc interview with world bank president david malpass. fresh off the world bank's brand-new forecast for global growth, showing a significant downward revision from previous estimates and warning of a recession. let's head over to the market to break down the news. senior market commentator mike santoli. what are you focused on? >> it seems like we're tacking on to last week's gains, holding around this 3900 level of the s&p. we spent weeks kind of attached

to 3800. we certainly are waiting for the cpi number, trying to digest a lot of the cross currents in fed speak. i keep pointing out, though, there is a different shape to this rally off a new low we got off of the october bottom here versus the prior one you've seen a little bit of a very, very shallow pullback consolidation. what happened after the springtime and summertime interim peaks is within two months, fell pretty steeply, to a new bear market low. not to say it can't happen this time but it is definitely a little more of a modest pullback and we're sort of finding some support a little bit higher. take a look here at one picture, so many ways to represent this fed expectations has built into the bond market. six-month treasury bill yield. the six-month is the highest yield on the entire curve at this point it shows you it is almost entirely driven by fed rate hike expectations the six-month window from now basically encompasses what

people assume to be the move to peak fed funds rate. and here you see just a couple of months ago, the two-year yields started to fall below it, because within the two-year window, the presumption is there is a higher probability of cuts. a lot of folks want to say the fed is not listening, not looking at the slowdown data, they see and hear all of it, i think. but the market has to encompass all the probabilities. one of the probabilities is a harder landing, that means they'll be cutting despite what they say now. >> they're not talking about cutting. it is counterproductive to what they're trying to do which is still fight. >> the cost of not talking about it is not that high at the moment at least right now because the job market remains relatively calm. >> the market and the fed are on different pages, that's never a good thing for the fed i want to point out the media names. look at warner bros. discovery the stock is on a roll up 6.5%, year to date. i know we're ten days into the year it is up 30% and some of these other media names are also catching a strong base

they were underperformers last year, but getting a lot of analyst love. >> deep underperformers, got very washed out, everyone saw them looking cheap, like warner bros. and paramount and gets costs in line. it seems like it is a fresh look in a new year at stocks that seem like they took their punishment and maybe are getting their costs in line. we'll see if it lasts. january, you often have a lot of that kind of, you know, the last year's losers end up having a little bit of relief doesn't always last the full year. >> a growth and deleveraging story according to bank of america on warner discovery today. top list, top stock list thank you, michael see you soon it has been a general week for the markets. fed chair jay powell speaking this morning in sweden at the bank symposium highlighting the need for price stability and then michelle bowman saying earlier today that more rate

hikes will be needed to combat inflation, echoing the higher for longer mantra we heard from the fed lately joining us now is paul mccauley. always with an eye on the federal reserve. what do you make of this idea that the fed and the market appear to be increasingly on different pages about the outlook? >> the fed and the markets are looking at the same data i think mike is absolutely right there. i think what really is distinguishing the difference is a different standard of proof. the fed wants to have beyond a reasonable doubt, like you have in a civil -- in a criminal trial. where the market is basically saying, preponderance of the evidence, more likely than not like in a civil trial. we're looking at the same data, the issue of what's the burden of proof and the market basically is saying, we're at the end of the tightening cycle, it is time to back what happens next and the

fed is focused on finishing the cycle. >> so, who is wrong? >> the fact they're looking at different standards of proof, neither one is wrong from an investment perspective, the market is right. >> so you expect interest rate cuts this year >> yeah, i do. i think the fed will finish the tightening campaign pretty soon. the market has priced in three more 25s i don't think we'll get that many and i think we'll have a pivot, rhetorical pivot by the middle of the year and i'm looking for cutting in the second half of the year. reflecting the fact that inflation is coming down, the economy is soggy and the fed is restricting this is a pretty easy call >> i -- the cut call, though, it doesn't appear to be very easy when i talk about it, with

investors, a lot of the -- i'll say, older generation, those who have seen inflation ycles, and fed hiking cycles in the past say the young folks have never seen this before we're going to have higher interest rates for the next few years. this is a whole paradigm shift and this is a generation of investors that are just used to the fed coming up and cleaning it up and cutting rates and not saying high for long it does feel like there is this fork in the road when it comes to the outlook beyond the middle of the year. >> i think both crowdscan be right in that you can have a cyclical reversal, but the easing campaign on the other side of this tightening campaign is not going to take you back to zero remember, we have got a generation that has grown up of going to zero, twice, back in '08, and obviously in 2020 the new paradigm is a positive

fed funds rate, even at the bottom of the cycle and i think that is correct. but it doesn't obviate the need for the fed to move back from restricting toward neutral once it has achieved its objective of inflation crying uncle >> do you think they can get away with ending this tightening cycle without seeing a markedly higher rate of unemployment? >> it is hard to tell because unemployment is such a lagging indicator. i think we're going to see the employment side slow in the months immediately ahead and the unemployment rate is going to go up how much, i don't know but from a market perspective, it is not so much how much the unemployment rate goes up, but when the fed effectively says enough is enough and goes the other direction.

the pivot is far more important for the markets than actually what the level of the unemployment gets to, though the opposite is true for main street >> it really comes down to how fast inflation comes down. so what are your expectations for thursday's number and where will be, by the end of this year >> i don't have a viewpoint about thursday anybody who does is engaged in hubris from the standpoint of the end of this year, i think we'll get down to 4 or below my central tendency would be a 3 handle by the end of the year. >> and you think that's going to be good enough for them to pause, well before that? >> absolutely. they're looking at the dynamic of inflation, not a particular level and i think the dynamic has turned in a very positive direction for the fed, it is going to feed on itself and what

the actual level is as that plays out remains to be seen and will be a product of a lot of things, but the key issue is the dynamic has turned in the right direction. >> i think that's why we're having a resilient start to the year and a good day today and stringing together a few gains paul, thank you very much for joining me with the analysis as always paul mccauley. shares of coin base are up more than 20% this week. getting another boost today as the company announces more layoffs. we'll talk to an analyst who is forecasting more upside for the crypto exchange next we got the dow up 79 points or so you're watching "closing bell" on cnbc. s&p up a third of 1% hello, world. or is it goodbye? you know, it seems like hope and trust are in short supply.

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well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck. coin base shares getting a big pop again today. the company announcing job cuts impacting about 20% of the current workforce. our next guest saw this come coming, publishing a note in early december saying coin base was going to need to make further reductions let's bring in rich sherpeto, overweight rating on the stock and now $65 target so you said after the first layoffs, more to come. we got this today. is there even more or have they right sized this business? >> i think they have taken a good first step and i think that when you expect a company, when you see a correction, like we're experiencing, it is for them

taking control of what they said and that's why we wrote the note about head count reductions. even though they did one last year, 18%, it really just removed a lot of the additional hires they had done earlier in the year even with this 20% reduction, it brings us flat on the employee base, year end 2021. i guess the point is,y you kno, the company is doing what it can under, you know, some pretty tough circumstances for the crypto industry overall. >> right so i want to talk to you about why you're still bullish and see value in the name. but i feel like i have to preface this with what you got wrong. you've been bullish and overweight the stock for a long time in taking down your targets, haven't you >> yes, we have. and i would say i would note one thing i've been through is the imminent boom and bust and just

been a lot of similarities of what we see. you see a big run-up in stocks and you saw a correction not only a correction valuation, but a correction trade volume and revenues that's exactly what we have seen with coinbase and the second part of that is that the technology proved, you know, successful over the longer term. and despite everything with ftx and contraction in valuations in space, it still hasn't been a real flaw in the technology. this technology isn't going to prove over time. have a substantial impact on financial services and the economy in general >> sure, but there has been a major correction in sentiment and belief in the system, right,

after ftx and i know bitcoin is still 16 or 17,000 don't you have to vehave a viewt will not go to zero if you have shares of coinbase. >> it has 5.6 billion in u.s. dollar resources, narrowed their losses with head count reductions, and they -- they are -- they could even win fro the ftx debacle here it could bring in more regulatory clarity it would move the competitor and they still are the primary way to play crypto as we go through and hopefully get a recovery from this crypto winter, from this overall pullback in growth stock valuations >> what has it all done to a path toward profitability and what you expect from earnings in

the next year or so? >> so, you know, it is significant. expense reductions were needed that's why we wrote the note in december we think they have done a fairly good job be there on expense reductions the head wind just sort of has incrementally increased and has been ftx and as you point out, the impact from the industry and that will take some recovery so, the path, the profitability, you think really hasn't all that much changed, given that they did the expense reductions that we call for over a month ago >> rich, thank you very much for joining us on the case for coinbase $65 price target richard repetto, appreciate it. let's show you what's happening with the overall markets. we have a solid rally, up half a percent on the s&p 500 more than that for the nasdaq.

that's thanks to winners like amazon, meta, netflix, nvidia, microsoft. in the s&p, it is the communication services sector which rallies and is the best performing sector of the year. media names in particular, which i spotlighted are doing well what is not working are defensive groups consumer staples and utilities, that's what's under pressure today. just capital releasing its annual ranking of america's most just companies one sector in particular shows surprising gains in wages and job creation we'll explain next as we head to break, check out some of today's top searched tickers. ten year yield getting the most interest as usual. higher today 3.6% followed by tesla, underperforming down 2%. coinbase, we just talked about bed, bath & beyond with more layoffs. the stock up 25% and the overall s&p 500 up half a percent, now positive for the week it is only tuesday we'll be right back.

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what is wall street buzzing

about today? america's most just companies. just capital and cnbc releasing the just 100 list, ranking companies by key issues that the american public say matter the most like wages, job creation just capital co-founder paul tudor jones speaking earlier on cnbc about the financial performance of these companies versus their peers listen >> the just 100 paid five times the amount of dividends that the rest of the russell paid so, i think, you know, all the attacks on esg and investment performance, i don't think they're looking at the data. >> cnbc's brandon gomez joins us now at post nine to dig into which sectors and companies saw the biggest gains from last year what can you tell us >> tech and financials are leading. so tech traditionally has already been leading you have names like nvidia, noise microsoft in the top five for

all six years, not too much of a surprise there financials getting a big boost bank of america, number one company, truist financial, jpmorgan in the top ten. all of that really led by the fact that these companies are disclosing a minimum wage, a new metric that just tracks this year bank of america has been climbing the ranks year after year they were 105 in to 18 climbing up to within -- climbing up, yeah, and then all the way to number one this year >> and pnc number 15 how are they weighted in terms of the issues? you mentioned the wages factor in climate also >> climate goes into it. what is happening is they're doing research with the american population asking them what issues matter to you most. once they have those issues, they say, okay, in order of importance, how important are these to you a lot of worker issues are the top most priority. about 44% of the just capital score is made up of the issues that pertain to the worker stake

holders. >> and paul tudor jones mentioned they pay more div didind dividends than other companies they do better. >> they do within the just 100 index we track, we see they're outpacing the russell 1,000 companies, pure companies by 13% by the index's inception. we're constantly updating that day to day, but we're able to see that at end of the day these metrics are good for business, good for the bottom line. >> and they boast the rankings too, right, companies try to get these rankings, i guess, for that very reason. >> it is true. the companies that disclose, right? disclosure, transparency is key, the companies that are the most transparent are the ones that are performing best in these metrics. it is a matter of time until more companies are more transparent. >> got to think it matters not just to investors, but to employees as well. >> brandon, thank you so much. for more on the just 100 list, go to cnbc.com/just-100.

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the world pbank out with a new report slashing its 2023 global growth forecast to 1.7% that's down from the 3% forecasted issued six months ago, also warning the slowdown could result in a global recession. joining us now in a first on cnbc interview is world bank president david malpass. president malpass, welcome back to the show. good to have you. >> hi, sara. >> not such a cheerful report you put out today. the global economy is perilously close to recession what is making you so nervous versus where you were a few months ago >> thanks. there are several factors, one is inflation stayed higher for longer than people had been hoping and so interest rates are going higher the capital access of countries gets -- and of companies gets cut off progressively as this

process goes on longer and we also, of course, have the energy realignment that is taking a long time to sort out. >> the thing is, investors, you know, aren't as negative as you might be sounding. on twitter wrote back, caterpillar is trading at a record high. if the world economy was as perilously close to a recession, would caterpillar, a global industrial that tracks growth, be at an all time high >> that's a good input to you. so, caterpillar works largely or has big markets in asia, has big markets in the u.s., and one of the things my impression is going on is people are finishing projects that were funded some six months or a year ago and so there is strong current demand that is showing in even in the gdp numbers but the question is what is it going to be be in 2023

that's the forecast that we're looking at and it looks like a sharp slowdown in most of the world. >> china, though, is reopening are you not buying into that excitement i saw you guys took down your china numbers as well by a full percentage point >> we did. but i think china is a key variable and there may be some upside for china if they push through the covid as quickly as they seem to be doing. you know, most of the world had a post covid rebound that was sharp, and china delayed that through the lockdowns and so it is possible they'll come through in the way you just described. china is big enough by itself it really lift global demand and supply and so then one of the questions for the world would be which does it do most. if it is mostly putting upward pressure on global demand, that raises commodity prices, but it also means the fed will be hiking for a longer period of time i think a lot of this all just

has to be worked out in 2023 and the dominant thing is we were at a zero percent interest rate environment for much of the world for a decade or longer and so there is lots of repricing that has to be -- has to be figured out. >> what is your expectation as far as when the fed stops raising interest rates >> they'll probably stop after they're comfortable with the inflation expectations and that depends somewhat on how fast people increase their production and the labor force, you know one of the frustrating things is that in the u.s., the labor force hasn't been -- hasn't been rebounding and you need more people working in order to -- in order to produce the goods and services that are needed by the economy. so, those might be some of the factors that the fed will look at they, you know, they speak often and talk about their models and

so i'll be watching how they do that the ten-year yield, you saw backed up some today from -- i don't know 3.5 to 3.6. and so you're seeing the market trying to fission gure out what long-term resting rate is for interest rates around the world after the dominant factor is over ten years of near zero interest rates japan is still working that out because their ten-year yield is capped they have a price cap on it. >> do you think we have seen the peak in dollar strength for this hiking cycle it is starting to come down pretty sharply and that's been helpful to the world economy >> yes it definitely is helpful and it showed that -- i think the best model is to have the dollar be strong and stable over the long run and so if that can be achieved at the current level, that would be a good outcome and the question of whether it goes up or down against the euro or the

yen depends really on the rate of -- rate hikes in the u.s. versus those economies and i think that is just going to depend on a lot on who produces more. if the u.s. could really boost a lot of production, then you would end up with somewhat stronger dollar, but a better growth outlook for the u.s. and so on around the world. >> so bottom line, do you think the u.s. can come out of this without going into recession the soft landing scenario? >> certainly there is that chance and you might even say, well, you seem to be on the course for a soft landing right now. my worry is more about developing countries, you know we have this giant problem for there are really billions of very poor people around the world that are not getting access to capital, not getting

new investment, and they're seeing their growth rates go down and the ability of fertilizer and food to go down i think we -- while we can wonder about the exact growth rate for the u.s., the bigger issue for the world is this price stability developing. >> are you going to be stepping up your lending this year? >> we already have we have -- we're 35% above our normal run rate. we'll be going -- we'll be pushing hard on that over this year and into next year because of the needs in the developing world and we're also working very closely with shareholders and we will be with the world community about ways to have more resources, whether from inside the world bank itself, or from the global community. the developing world certainly needs big new sources of resources -- sources of money,

but also investment dollars. >> got it. thank you very much for coming on to talk through the forecast today. >> sure. >> good to see you look at where we stand in the markets, up 113 or so on the dow. s&p 500 up half a percent. it is going strong there is the nasdaq, winning today, up .7%. amazon, meta, microsoft, netflix, nvidia, all driving things there the strength in the media names, warner bros. discovery with 8% on the day as far as the dow, visa, goldman and amgen. cvs looking to make a big expansion into the pharmacy healthcare industry and sending shares higher today. details later on the show.

check out today's mover. it is bumble investors are buzzing about this stock. showing some love for the online dating company, from overweight to sector weight, implying a nearly 35% upside from yesterday's close. the analysts are citing valuation after last year's 38% sell-off in bumble shares and strong global online dating trends airline stocks flying high today, have been soaring to start the year up next, a top analyst on whether the sky is the limit for these stocks that story, plus, microsoft reportedly making a big bet on ai and cvs may be eyeing another

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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 we are now in the closing bell market zone mike santoli here to break down the crucial moments of the trading day. jeffrey on boeing and the airlines ali mccart dmi joinkcartney joi market strategy. mike, it is easy to see the case for the bulls and for the bears. for the bulls, you know, this

market has priced in a lot of bad news and inflation, if it really is coming down in a meaningful way, that the market is expecting and seeing, then the federal reserve should pause at a time where china is reopening and we haven't yet gone into recession, that's a good thing. on the other hand, fed is not even saying that. >> that's exactly right. and, of course, you in theory could also get a bit of an upside surprise on inflation even though all the indicators say you really do have a good downside push in inflation measures you never know what one number is going to look like on thursday i think the way the market is trading now, it has been a relatively broad rally to start the year you have the rank and file stocks doing better than the headline indexes there is some of it just picking up the losers of the late last year you can say that means there is not enough ofa margin of safety, we haven't really priced in the dire scenario, therefore why would you buy?

you never know whether in fact things can turn out better, especially when growth, economic growth has seemed like it held up rather well late in 2022. >> boeing is underperforming today. they're delivering 69 airplanes in december, booking just over 200 new orders full year deliveries and net new orders were higher than in 2021. let's bring in sheila kaila to discuss. talk us through the delivery numbers, how they compared with straight expectations. >> thank you so much, sara good december number we were skeptical whether boeing could beat its deliveries, but it hit its target. and mainly on the max. it delivered 374 maxes in 2022 for the forecast or guidance of 375. and we have that number going up to 425 by 2020 and that's why that's so important is each max figure is 3 million of free cash flow per

plane, it is getting them to their target and their '23 target is 3 to $5 billion of cash flow generation so doubling what it did in 2022. >> where does this set up boeing for this year, especially against rival airbus >> well, both boeing and airbus have very good orders and deliveries if you look at orders, double the delivery numbers for book to build 1.7 times to end 2022, and we have seen a lot of incoming requests for what other airlines following united's order could order more aircraft and china hasn't ordered a single aircraft since 2018 so there is order momentum, but two things we're watching for, giving boeing momentum this year is a 737 max with production rate, currently at 25, set to go it 50 by 2025. need to get incremental steps up by 31 by the end of the year and the 787 just restarted deliveries, so they had a good

december delivery number but haven't ramped up production rates there. >> let's talk about the airlines they started very strongly here in terms of performance in 2023 after a rough end to last year what is the outlook? are investors looking for slowdown in travel spending or not? >> so, we're pretty skeptical on the airlines the momentum thus far is because the airlines are trading at 20% discount to their historical average. so airlines got beaten up at the end of last year on two concerns, one, ongoing costs costs are slated to be much higher we saw spirit airlines hit their pilot agreement, salaries increasing 34% over the next two years. costs are a concern. and second, we're worried about pricing coming in. just talking about inflation, pricing in q4 up 20% for the airlines and we forecast that coming in with a jeffries economist

forecasting a hard landing at the end of this year and the third head wind for the airlines is the operational issues at southwest as well as all the free cash flow going toward new planes they have to buy. >> on the flip side, china reopening, big source of international travel demand. >> we view that as a beneficiary actually to the commercial air space names. so when china reopening side we would buy boeing and spirit, big structures manufacturer and tyco and after market play that is not well known, spectacular investment in our view the airlines on china routes, united would be the best play there, it is 2% of sales overall and actually very low margins given they compete against the state owned carriers >> you're not buying it. airlines up 14.3% to start the year the best performing s&p subsector. thank you. good to see you.

let's talk healthcare. look at shares of oak street health, soaring on a report that cvs is exploring a deal for the company, which provides primary care for medicare recipients it could be worth more than $10 billion. bertha coombs joins us cvs in another speculation here for a deal it feels like a string of these over the last year or so what is the strategic interest here >> it has been basically all of the pharmacies are looking to grow primary care as a way to keep people coming in, not just for prescriptions, but also to give them other services particularly for medicare patients to really wrap a bunch of services around for them to keep them coming in and keep them engaged and for cvs, with an ensurer, that makes a lot of sense. last summer we heard they were in the hunt for one medical, amazon took them over. then they bought signify, which is health assessment, and now we're hearing that they may be in talks here with oak street health oak street is one of the better

performers in this medicare primary care space though they're not profitable, the company did give a bullish outlook for 2023 they expect to grow from 150,000 members to over 200,000 members this year. they have more than 160 shops, clinics where they treat these members, so they do have an infrastructure and they also have that technology that's what cvs is looking for at jpmorgan today, karen lynch said they're still exploring their options. one thing we have to think about here, sara, is that it may not necessarily be some of these publicly listed companies, there are also some private options they might explore, companies like city block health or others they are basically saying they might build something rather than necessarily just buy one piece. >> well, looks like investors are giving their approval. cvs health down 1% bertha, thank you. bertha coombs. microsoft reportedly

investing $10 billion in open ai that's the parent company of the popular chat bot, chat gpt it is part of a new round of funding that values open ai at $29 billion. they declined to comment on the report steve kovach joins us. what does mi boost a lot of their existing products so obviously when we all started chat gpt botting, we thought, okay, this would be really good for bing search. that's a thr google. but beyond that, there is a great report in the information this weekend talking about how microsoft plans to inject this technology into their office apps microsoft word, power point, excel, imagine telling microsoft outlook to find me every email sara eisen ever sent me, for example, or draft an email to sara eisen about doing the market zone segment. they have some tangible plans for this and you can imagine it helps microsoft more than just

user facing stuff, but also people, their back end engineers, it people who are coding windows they get in on a hot technology that appears to be further ahead than something google has been able to come up with, sara. >> it is impressive if you haven't tried it this chat gpt. steve kovach, thank you. wanted to ask mike about microsoft. it is up half a percent. it is underperforming the market right now. a lot of people watching amazon, apple and microsoft, really on the recent weakness as market leaders, what have we seen in the comeback days? >> yeah, they have underperformed they have not didn't area where people have rushed to pay up for premium valuations as a stock, microsoft has a little more work to do to come back into line valuation-wise with where the overall market is, it is not expected to have

particularly impressive earnings growth in the current fiscal year but bigger picture, this proposed or possible deal in ai is almost exactly why strategically microsoft has been this core holding for so many people because they can integrate almost anything that happens in technology, spread it across the portfolio it is a $1.7 trillion market cap, $10 billion is nothing to throw out there if it can be an enhancement. it is a good long-term story, but right now the stock feels as if it is just not where the market's fresh money wants to head >> well, we have five minutes into the close and then we are seeing some strength we're at the highs of the day. certainly on the dow caterpillar adding the most. up 184 on the s&p and the nasdaq. ali mccartney joins us you've been pretty cautious, all of last year, really, on the fed hikes and the economic forecast, are you telling your clients anything different to do right

now? >> i think it is a big thing that has changed is that it is 2023, not 2022 and although for all of us having gone through one of the worst years in the history of being an investor, it is really tempting to want to collectively exhale and start to lean into markets and think positively now, you were just talking about the optimism fueling the last couple of days of trading, the beginning of the year. and mind you we are almost exactly a year out from the historical high on january 3rd last year and that's based in the steep decline we saw in the ism number, the early signs of moderating inflation, most specifically and most important the hourly earnings. that is moderating as you said, it is completely at odds with what the fed is messaging to us. and so while i came on a number of months ago and said, unfortunately i think it is early for a pivot party, i think it is still too early for a

pivot party. i think investors, it is great to be optimistic, and i think we're going to have more clarity through the next earnings cycle and through the next two federal reserve and gpi prints but markets and investors are famously fickle and fragile and i think that staying defensive, building cash, leaning into quality right now with a shopping list is the way to go. >> so, let's talk about then what the strategy should be. should you still be leaning defensively and if so, what does that look like cash, is it utilities, what do you like >> first of all, i think you look at fixed income, i think you have to put cash now because of the level of returns in the shape of the yield curve in that bucket and so if you are an ideal with largely extraordinarily taxable investors, and you can get the kind of rates, state and local tax free you can now for

short-term treasury paper, that's super interesting and it buys you some time to see what happens and what happens with credit spreads in the market in addition on the active sort of -- looking for equity exposure, we led -- you led the segment talking about healthcare more in consumer discretionary, but when you're talking about healthcare, there is a place you can hopefully have your cake and eat it too we're talking about from a demographic perspective, one of the fastest growing defensive sectors there is from a valuations perspective -- >> i'm sorry what were you going to say. >> relative to the broader market and other defensives, it is still undervalued and that's a place you can lean in during what might be a potential deceleration and recession, but also even into all the positives that we're going to see hopefully at the end of 2023 and beyond >> ali mccartney, thank you very much good to check in with you on

your forecast and what you're telling clients this year from ubs. mike what do you see in the market internals at the close? >> strong, three to one advancing to declining volume. that's consistent with how most of the first six trading days have gone. look at the materials sector, relative to the market it opened up a bit of a lead here hard assets over soft. china reawakening. things like copper running pretty well. volatility index very subdued, down by 20 we have the cpi coming in a couple of days yet still this very gentle index behavior is allowing volatility to drain out of the tape. >> dow up 191 points at the highs of the day here into the close. you have goldman sachs, caterpillar and amgen adding the most the s&p 500 up .7% every sector higher except for consumer staples the leader is communication services on this big rally in the media names. warner bros., discovery, i keep mentioning it, up 8% now at the highs of the day just about all the other stocks are as well.

the nasdaq outperformed today, up a full percent. you've got names like amazon adding a lot to the s&p and to the nasdaq also strength in the chip names as well. nvidia and microsoft and netflix, apple also adding to the nasdaq gains tesla under pressure that's it for me on "closing bell." see you tomorrow we have the ceo of kroger on the show tomorrow. now into "overtime" with scott sara, thank you very much. welcome, everybody, to "overtime. i'm scott wapner you just heard the bells we are just getting started from post nine at the new york stock exchange we're going to get latest from jeffrey gund lock's first major webcast of 2023. find out what the bond king thinks of the state of the markets as the new year gets under way. the headlines once the event begins less than 15 minutes away we begin with our talk of the tape, whether stocks can keep this momentum going and build on the january gains as another