at stake here. buzzfeed trying to pursue one option, bed bath, for what it's worth having some videographer tilt of its own. shares are down 17%. >> $2.67 all right, folks that will do it for "power lunch. >> "closing bell" starts right now. stocks moving higher as stronger-than-expected gdp boosts sentiment this is a make-or-break hour for your money welcome, everyone, to "closing bell." i'm sara eisen take a look at where we stand. nasdaq up a nice 1.32% thank you, tesla, for that one the s&p down 130 points. the high on the day was 177. energy is the leading sector today after that chevron buyback that was announced consumer discretionary, consumer technology, most of the sectors are green. what's lagging, consumer staples

and health care. again t nasdaq in the lead up 1.32%. thank you tesla, apple, microsoft, they're all higher. it's adding to strong gains so far this year, following record revenue and earnings at top wall street estimates also ahead this mourn, council of economic advisers chair cecilia rouse talks to usering and the white house's news that chevron is taking that buyback, something the administration has been very critical of in the past. we start off with mike santoli kind of a broad rally, mike. >> yeah, sara. other tenacious showing by buyers today, yes, it was a reassuring gdp report that started things out, but it could have been taken the other way. we could have started to reprice and rethink what the fed was going to do. it started to feel's though the

negative elements were going to start to come through. it seems like the bulls are making a further bid to perhaps win back the benefit of the doubt. nothing is determined here, but you know the line. we basically crossed abbove that down trend line. we're at about a six- or seven-week high. i think you have to overshoot it a bit to get the benefit of the doubt back, but clearly you no longer have tech really leaning on the indexes at the same time cyclical stocks really started to perform relatively well. take a look at the buyback etf alongside the s&p 500 over five years as well as the dividends, arift carats etf it's meant to show that it's not as if companies who buy back their shares tend to outperform it here's the s&p 500 on this span it was really outperforming difference denld and buyback strategies for quite a long time. yes, it helps the overall

market it puts cash back in investors' hands, but it's not something where you can goose your share price simply by repurchasing your own stock. >> you wouldn't know it by today with the reaction? yes, if you have great cash flow and can invest at the same time like chevron, it does help. >> take a look at shares of bed bath and beyond, putting out a filing saying that the company does not have sufficient resources to repay amounts under its credit facilities. there's the reaction, down 27% so here we go. >> yes this is a not unexpected further shoe to drop bed bath has talk about the difficulties the way the company's corporate bonds trade, they say it's a done deal. they going to have to restructure this >> they never got to the bond market. >> you know it's still going to be a story even after. this i saw some of the chatter saying, you know, we still could

squeeze this thing higher. it's something that sort of suggests that things are getting worse more quickly. >> mike, thank you. our next guest is calling this market a cincinnati bengals market, which is why you know he got the invitation to be on the show the rally this year is real and doesn't get the rocky mountains to deserve joining us is ryan dietrich. agreed regarding the bengals they don't get the respect they deserve, and i think we're proving that, rrnl we, ryan? what about the market? you think the bull market is just not loved or believed >> that'sright i did wear my bengal orange here sitting in the city of cincinnati nobody believed the bengals. they provinged it last sunday. they're legit. the second week of orctober, i said, this is a major low. the cyclical area is leading tech is finally participating. credit spreads are still tight the economy is not perfect, but

all that negativity, i mean everyone that comes on this show, right, what are they saying things aren't that great but with the contrarian point of view and the leadership we're seeing, the strong market breadetth, to us october was the lows, and this year could surprise a lot of people, much hoped lie the bengals will, and could be a good year for the investors. >> all the way, ryan we're going to win the super bowl i get that people started the year negative. there was bear sentiment, the economy was collapsing, 2023 was the year of the recession, and people were too negative what is the actual bull case for why you should be in stocks right now with earnings and the economy set to slow? >> exactly i mean let's not forget the stockmarket tends to lead the economy. you think about this u.s. dollar, so much lower. the strength dollar hit earnings hard and we're seeing that hard. we see the dollar weaken as the inflation is coming back sooner.

then they're going to pause. those are all in there, i'll tell you look at the consumer, look at what mastercard said, visa is probably going to say, the gdp number, the consumer still is strong. it's not perfect, but that's one of the reasons that we've been saying the whole time we don't see recession this year. by the werek it's the third year for a presidential recycle we haven't had that since going back to world war ii here's what you need to know there's a 32% bounce on average off of a mid-term low. it's not as crazy as it sounds when you're in the third year of a presidential psych >> got it. so you're talking about the cycles and the seasonalities and that sort of -- the patterns, which i know you do a lot of work and i follow your treat tweets on that subject cincinnati bengals might be

underestimated, but we do have some stars like joe burrow where do we sit? >> you're sticking with the cyclicals. your industrials, financials, materials as china reopens look at copper, the base metals. those are things that a year ago, what was leading? utilities, health care, staples. it is a 180. we're getting leadership from the right areas now, and those are the groups we think can continue to lead as we likely avoid a recession and actually get better economic data the second half of the year thanks to the weak dollar. >> isn't it predicated on the dollar weakening and the treasury yields continues to fall >> not the whole thing clearly if the dollar were to soar again, that would be a headwind for the bulls what we've seen with global banks, it could be to the down

side. >> there's a feeling the market is too optimistic of a potential fed pause or pivot into cutting and a lot of this rally is predicated on that we just got this 2.9% gdp number it's not good news the fed is trying to slow growth, slow inflation i guess it's good to have economic growth, but not at a time when the fed is hiking, and now there's an expectation it will have more work to do. >> you're right. the next two quarters, we might see gdp. maybe that's what the fed wants. the truth again if you look under the surface, and we've talked on these shows before, rents are lower, used cars are lower. those are things you wanted to see come back, and they are. that will give the fed the leeway to take a look around and say, okay, we had 40-year highs of inflation, we're comfortable with where it s and that's going to be the case this year. >> how long have you been

bullish? were you always this bullish >> we were at even weights until the last week of december at carson we're expecting between a 12% to 15% balance this year in stocks, in the s&p 500. >> got it. thank you for joining me who dey. >> who dey ryan detrik. still ahead, council of economic advisers chair cecilia rouse, what's her take on the state of the economy following the gdp print this morning you're watching "closing bell. 120 on the dow >> announcer: this cnbc program is sponsored by truist wealth, where meaningful relationships matter most.

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look at chevron today. it's soaring the news prompting backlash from the white house, an official telling cnbc, quote, for a company that claimed not too long ago that it was working hard to increase oil production, handing out $75 billion to executives and wealthy shareholders sure is an odd way to show it we continue to call on all companies to use their record profits to increase supply, and reduce costs for the american people. joining us, see cecilia rouse. good to see you. what exactly is the problem you

guys have because this is a company along with many others that are spend 14g million on r & d to increase production in this country. >> so, look, we learned today as you noted in your earlier segment at the last quarter of 2022, the last half of 2022 that our economy grew at a solid pace we got annualized 2.9% gdp we saw that. we also had inemployment insurance claims today we see that unemployment insurance claims remain near historic lows. all the while we see the price index for gdp has moderated. i have not seen the monthly change i'll get that later today and report that tomorrow, but we see that inflation cpi, ppi, that's easing so we see an economy that is better resilient, we see prices easing, and all the while if we think about what the president was just talking about, tall investment that we are in the process of starting to do and will continue to do with

investing in america, this president, his entire focus is on making important investments so we can increase productivity here and generate economic growth that is sustainable and is more widely shared. so, you know, the issue with chevron's buyback is they made record profits they could choose to invest that we know we have big challenges in energy going forward. they could choose to invest that instead they chose to do stock buybacks this is a president focused our future, focused on making investments, ensuring that americans have jobs here in a way that is sustainable, and, again, more equitily shared. >> i think you touched on this point and we can talk about the broader economy. just on the chevron point, it fuels this idea that the president is at war with the oil industry and they're not speaking the same language when, in fact, the oil companies are increasing their production and their capex. and as far as capital discipline, they're doing it the best way they know how

i think back to the early 2010s when the oil company put everything on production and then we had a glut and six years that crushed their companies i don't know it feels like a difficult thing to tell them how to manage their capital. >> well, look, the president understands that companies need to make their investments, and they're making their decisions, but what we can see is that the price signal suggests that we should be making these kinds of investments, energy is crucial to our economy the president believes and, you know, again, forward looking, we need to be making investments to ensure that we have the energy we need to power this economy. you know, he's a president also that believes that the kinds of revenues and rents should be more equitably shared among americans some of the president is mostly focused the fact we need all hands on deck as we focus on the energy sector, and he expects the energy sectors to

participate that. >> i think they would argue that they are. on the economy, chair rouse, the gdp numbers looked good on the surface, but the 1.5% growth was for inventory. that's not what you want to see for healthy growth, is it? >> as we all understood it, it was largely fueled by the recovery that was unsustainable we know we're going to make this transition to a lower level of growth that is more sustainable that is powered by productivity increases. that was going to involve easing off the altitude we received last year. so we expect gdp growth to slow down we believe this is part of the transition and that we're again, as i mentioned before, looking forward to, you know, achieving the kind of productivity growth that's powered by increases in productivity that are solid and

sustainable and, therefore, will -- and generate that we have economic growth for decades to come. >> here at cnbc, wecove cover te companies. whether through their earnings reports or separate announcements, they're laying off workers, thousands of workers. now it's expanded from high-growth tech companies that boomed during covid to other companies like ibm, dow chemical we're showing a wall with some of the recent announcements. what do you make of this growing trend? how concerned are you? >> so we do keep our eye on the data what you're citing are individual companies making these announcements. i just noted if we look at unemployment insurance claims this week, if we average over the last four weeks, if we go back, they've remained low that said we're keeping our eye on these data. we're looking at the warren data as they come out and we will look to respond as

they go forward. at the moment we're keeping our eye on it. individual companies, they're not reflecting at the moment the broader economy. >> when you say we will respond, what do you mean what would be the response from the white house to increasing unemployment >> well, look. we understand that we're going to have to have a renormalization as we get through. we're still working through the fx of the pandemic, so we know that there's going to be a renormalization. what i'm responding to is the fact that we understand there may be some -- as the federal reserve cools the economy, there may be some response in the labor market but we have cyclical measures, unemployment numbers, things that we see through the bipartisan infrastructure law, the inflation reduction act, the c.h.i.p.s. act we're starting to make these investments. we're just getting started on

implementation that has jobs for americans. we believe it will provide some kind of countercyclical measure as the federal reserve is also easing inflation we are keeping our eye on the economy, but so far we understand that these individual companies who have made these announcements, we're not seeing it yet in the broader data. >> no. it's been a question mark too for us even when we look at the monthly data so on the inflation story, which is really what it's all about, the market, the economy, the fed, do we think we've seen the peak, and how fast do you think it comes down from here? >> you know, i don't pretend to understand where we're headed, but what i can say is we're seeing what has become largely a trend. we've seen a deceleration and inflation, monthly inflation over the last half of the year again, when we look at the price index of gdp from the quarter, we saw some easing there as well so certainly it's all trending in the right direction there are threats on the

horizon. we still have russia's unprovoked war on ukraine, we have china's reopening, the threat of the debt ceiling, which would also generate some turmoil in the financial markets as we get closer we need to raise the debt ceiling. we need to be paying our debts so we have those debts on the horizon. what we see today is inflation -- it's not just been one month. we have seep a trend of inflation that looks like it's headed in the right direction. >> chair rouse, thank you so much for joining me today on jdp day. shares of southwest are sinking after the company outlined the damage done from the holiday travel meltdown. phil lebeau spoke with southwest's ceo earlier. he joins us with more. phil, did he have good explanations for folks who are so angry at this company >> not the kind of explanations that i think people want to

hear look, they admit their system could not handle the level of cancellations and the cascading effect of rebooking tens of thousands of passengers in a very short period of time. the impact of, that we saw it in the bottom line. they reported a worse-than-expected loss of 38 cents a share. they were expecting 12 cents $800 million here's what he believed happened and why they believe they can make sure it doesn't happen again. >> it wasn't just -- just to clear it up, it wasn't a failure in the scheduling software what happened is we got to the point there were so many tractions to solve and we got behind, and the software is not designed to solve past problems. the good news is the digital already has a fix in place that's being tested that can handle that condition if we get there again. >> reporter: they hope they don't have to get to that point again, and they know they're feeling the impact of that

meltdown here in the first quarter. it's going to be an impact of00 to $350 million for people canceling flights, booking slowing down they believe bookings will accelerate and get back to a more normal level starting in march. we'll have to see. it's a little too far out at this point as you take a look at share of southwest keep in mind that spring and summer er going to be critical for us to get a better per speck activer whether or not there's any long-term damage, sara, in terms of the brand, in terms of customers saying, i've had it, i'm not coming back to southwest. it's a little too soon to say it at this point. but, again, it's clear the numbers show it in the first quarter. >> they certainly got that vibe on social media if you follow it. let's check in on the broader markets. the dow's down about 155 points or so. the high on the day was about 170. as far as what's working in terms of the sectors, you've got steal, oil, and gas. that's the best performing a lot of the consumer sectors

are working like casinos, for instance energy, consumer indication services talk about a buzz kill shares of diageo, falling on the back of earnings and concerns in particular about north american growth up next you'll hear from the company's ceo plus his thoughts on inflation, the supply chain, and, of course, the boom in tequila. that's next. [music playing] ♪ imagine something of your very own. ♪ ♪ something you can have and hold. ♪ ♪ i'd build a road in gold just to have some dreaming, ♪ ♪ dreaming is free. ♪ accenture, let there be change.

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92% still active? seems high. seriously? it's just a bike. wait. they make a treadmill with an intuitive speed knob? yeah. want to try? 92% stick with it, so can you. rent a peloton bike or bike+. terms apply.

deobject joe carrying brands like johnny walker, ketel one, they're moving lower the company topping sales estimates, but analysts are pointing to results in north america, which still showed growth but not as much as expected i spoke earlier with ivan men eases and began by asking him about the business in the u stay and what's happening here. >> the u.s., actually the

consumer uptake is robust, so what we're seeing in the u.s. market is through covid growth rates have accelerated u.s. spirits business is 45% bigger than it was precovid. it's come back to mid-single-digit growth, which is about what we expected and you're holding share so what you're seeing in our reported sales results is a bit of supply chain conte newts, restocking from last year, and replenishing stock to the distributors so underlying health with consumers is strong. i remain confident about the u.s. consumer and the spirits market fundamentals. >> so it sounds like you're saying it's not necessarily consumer recession behavior. we're trying to figure out

a lot of mixed messages here on the u.s. economy. >> if you look atconsumer behavior and even if you look at the retail sales through november, december in the u.s., i think what you have at work is the consumer is savvy, very smart in terms of how they shop and what they want if you look at november, december retail sales in the u.s., grocery and beverages did well they were 6%, 7%, 8% growth. things like electronics and furniture were in decline. apparel was weak and so what you have with the consumer is they're making very deliberate choices places they want to spend and where they want to cut back. and we fortunately belong in a category because people long for socializing and celebrating. the entree'd restaurants and

bars are doing very well the money people are wanting to spend, they want to make the moments count and special. that's why we see premiumization strong single malts, for example, were up 60% in these numbers in the u.s. brands like bullet bourbon, tequila continues to grow off a very big base now. we grew 28% of tequila so the two trends that persist through this period is consumer spirits to wine and beer, and they're drinking better. so premiumization has held up. >> what's happening with pricing? are your costs coming down, and are you able to moderate those higher prices for the consumer. >> we're fortunate in that we have multiple levers to deal with the inflation inflation is real.

it's high. we had high single-digit cost of goods inflation, but we use a combination of productivity inside the company, which we continue to step up. the fact that we are selling more premium products where we make better margins, you know, johnny walker, blue label doing very well, gives us higher margins, how far lick its are aged, so the whiskey that goes into a bottle of jongy walker black label was distill 12 years ago. and then we look at price. we tierking price, but we have more levers to upset that that's why i'm pleased in these numbers where we grew sales 9% we were able to expand markets we grew profits 10% while we

were investing back in marketing and digital and capital spending and the business so we use price in a very targetted and judicial way because our goal is to ensure we keep consumers we had volume growth of 2% in these numbers 2678% volume translating to 9.4% sales growth and we think that's really important to keep volume growth going. >> people, how does january look so far, ivan is dry january really a thing, or is it just a thing people talk about >> our january start is positive right across the world we're seeing the market strong, and we're feeling good about the strength in december and the continuing strength into ja january. and, clearly in the u.s. and europe right across the emerging

markets, in china, the reopening will take a little while, a few weeks or a quarter or two, but we're very confident about china coming back strongly as well with the consumer. >> i also asked menezes about the growing popularity in tequila. he said it will be a strong growth engine for the company, noting that just 15% of american households are drinking tequila versus 30% for whiskey and for vodka. it's the fastest growing spirit right now. up next, former cisco ceo john chambers and tech giants and why it could result in dramatic turnover. now we're nearing the highs of the day. salesforce, chevron, and microsoft are doing the heavy lifting. we'll be right back.

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welcome back let's get to the big picture on tech with all the hand wringing over the mega caps and major pullback and enterprise spending, some of these earnings are not proving as bad as feared the stock is down more than 4% concerns about the miss on cash flow, some deceleration in the hybrid cloud business. but as for overall spending demands, ceo arvind krishna

tells me he doesn't see it especially in europe where he had expected to see weakness he also pointed out their layoffs, 3,900 are only 1% of it look at service now. software is a service player stronger quarter, anticipated after our interview with bill mcdermott, the ceo of davos last week it would have been 25% without currency exposure. and then microsoft even though guidance came in below consensus, the company's river knew is still growing, 2%. the usage of windows is up 10% the bottom line, take out some of the tech players that have big consumer exposure that expanded and boomed during covid and they're now having to give that back. look at what's happening with i.t. and software, and the picture is not as gloomy as many

in the market might think. for more, let's bring in former cisco ceo john chambers. he said we're in the middle of a fundamental shift in labor dynamics always an optimist. what is your take on it? >> i think it's a very small percentage of the work force if you look at the head count apt the companies and the startups three years ago, it was up like 40% in three years and in the last year, many of these companies grew their head count almost at twice the rate that they were growing their revenue. so half of this was self-inflicted, but the numbers are relatively small the points that you made, sara, are very good, and i'll compare it to 2001 a positive way in 2001 the companies were growing very, very rapidly, but, boy, when the spigot cot turned off, we went from 40 quarters in a row of 50% to 60% growth to in

45 days, a negative number, which is mathematically impossible so these are relatively small on the correction side. arvind from ibm said it well i've got 20 startups we see no weakness in enterprise spending it is remarkably solid there are areas that are more solid such as artificial intelligence and cybersecurity within that. and for the tech companies, i think especially the smaller ones, it was a good reset. when you have free money, you don't develop the basics like the profitability and precash flow i've done that pretty well with our startups i had 11 uniforms. i had two the last time we talked a year and a half ago almost all of them are growing that's the negative, however the economy is stronger than anticipated. you commented about mastercard and tesla on the consumer side and the business side. so i think until you see a slowdown and a flattening out of

the fed activity and the stepdown, that's why people are optimistic about it. >> the question is the resilience and the tech space and enterprise spending in particular and everything that's exposed. is it just because the economy has more strong fundamental demand than we anticipated going into these rate hikes, and is the weakness coming or do you think this is something secular that's going to insulate certain pockets of tech? >> i don't think anybody's insulated from a recession but i think the question you're leading me to. tech is here to stay if you look at the 25 best jobs in america, half of them are tech jobs and every category imaginable if you look at every company going digital and everyone in the market look at how they gained competitive advantage, using automotive as an example, you look at your electronic

dashboard, electronic system and self-driving, almost all of the moves over the next decade will be tech. having said that, you and i have seen this movie before out of the top 20 tech players, you'll probably only see ten be in the top 20 ten years from now, and there's no guarantee on who wins i would anticipate out of the top six or seven tech companies, two or three exit the decade no longer in a leading position in terms of the opportunity it will be fueled by others. >> do you have an opinion on which ones >> well, yeah, the ones i really like and the numbers are really solid here are the cloud companies who are also moving into the application stack so out of the four large cloud player, you look at amazon, you look at microsoft, you look at google, you look at oracle they're positioned remarkably well probably one of them will stumble. that's the way the market works.

personally like oracle i think what larry ellison and others are doing there is very creative you talk about service now that's kind of a new player into this market. bill mcdermott's a tremendous ceo and a great friend for many years. i like that one. while we're on favorites, i i want cincinnati to win this weekend, but i want them to play the 49ers. there are three signatures behind me. i love cincinnati. i lived there for a while. i want you to beat very well on this weekend. >> you know what that would be a problem for my household if it's 49ers versus bengals. that would be marital strife but thank you. appreciate it. john chambers, always good to see you, your perspective on tech thank you, former cisco ceo. look at nike with a nearly 40% rally.

coming up, the top ranked retail analyst on wall street that's jorn's ttpmgama boss. why it's even higher after hiking his price target. we'll be right back. we got this. we got this. we got this. we got this. yay! we got this. we got this! life is for living. we got this! let's partner for all of it. edward jones

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because it's not goodbye, world. it's hello, team earth. [clap] check out today's stealth mover. it's boot barp the stock is a real barn burner. they're roping in big gains after reporting revenue came in at a high irrange than wall street estimates, although, it did miss on the bottom line. they're encouraged by same-store sales and inventory productions. the stock is up 16%.

i think it's still trending. look at the stock up more than 10% up next, what ceo elon musk is saying about demand for evs. that story, plus the top-ranked retail analyst raising his price rg oni when we take you inside the market zone

mike santoli is here to break down the trading day and jpmorgan's matt boss has a new call on nike we're going strong, near the highs of the day nasdaq in particular up 1% new names on the 5 2-week-high

list starbucks, chubb, and oracle, john chambers' favorite tech company as he just told us right now, pretty nice resilient market. >> without a doubt, sara really the market is doing pretty much everything the bulls would ask of it in january in terms of how broad the rally is. you mentioned some of those selected 52-week-highs you had 52-week-highs outpacing lows by a decent clip. part of that is because we're past the peak of the market. it still shows you some traction the s&p above 40, 50 essentially gets above that sort of down trend that everybody has been watching for months and months which has capped rallies in the past few attempts in recent months. so i think it's all to the good. we don't have a good earnings beat rate. the aggregate is looking a bit beyond that. the soft landing story is still kind of billing evbuilding evid

the case we have to see if the fed is going to take this relaxation in the market as further ammo to push back against it. >> tesla, a big part of the story today, charging higher after a record-breaking quarter. the automaker recording higher than ever sales. elon musk announced his forecast production as high as 2 million cars and he spoke last night listen. >> thus far in january, we've seen the strongest orders year-to-date than ever in our history. we're currently seeing orders that are almost twice the rate of production. that will continue but the orders are high. we've actually raised the price a little bit in response to that so we think demand will be good

despite probably a contraction in the automotive market as a whole. >> shares have certainly recovered from some of the losses seen last year. worries over weakening demand, price cuts musk focused on it following his purchase of twitter. he needed this he needed this good quarter to prove that what they're doing is still working. >> for sure. it's without a doubt a relief to people who thought it could be an ugly set of results and guidance amid everything el. certainly, i guess, encouraging, he's saying the lower price has elicited more orders you do have the demand response. but nothing has really changed the questions about what it's going the need for margins given the lower prices earnings estimates have still been going down in general this year then it becomes a debate like any stock what to pay for those earnings i think the company has an investor meeting coming up in a month or so. you're going to want to dazzle investors with a lot of new

product. you're going to be re-creating the future but right now it's where numbers are going and how much do we want to place a multiple on that so i don't think it's a full turnaround stocks back to where it was december. >> 58% off the highs and 57% off the lows to give you a picture. let's hit retail jpmorgan's matt boss, number one retail analyst on wall street raised his price on nike from 156 to 128 boss saying the overarching takeaway from a management road show is it has emerged from the pandemic as a strong direct to consumer brand with a full product pipeline he raised targets for foot locker over its nike ties but kept a neutral rating. matt joins us now. you had a bunch of meetings with management here at nike. what did you learn that made you feel more confident? >> thanks for having me on, sara we spent the last two days with nike like you said, the overarching message here was this company's exiting the pandemic in a

stronger position than they entered. very robust product pipeline they talked about basketball, running, and women's, all impacted during the pandemic and all with a pent-up pipeline, the best that they've seen in years. they're resetting the marketplace. full price selling is strong you have 20% of revenues that have historically come from china. i think there's a micro story in china and a macroreopening story emerging, plus the self-help margin drivers over the next two years, the recab tur of freight and inventory actions. they believe coming out of their fiscal year, which ends in may, they will be clean across the board from an inventory perspective, which i think is a huge, huge positive for the overall athletic industry. >> so you know some of the arguments that you get on the other side first of all that it's widely loved, it's expensive, it's outperformed also people aren't buying as

much of that kind of clothing anymore now that they've started to go out. they had their moment during covid along with other covid winners, and the china story is far from certain. >> so somebody's buying it 27% constant currency in the second quarter growth. strongest demand over the last two quarters that the brand has seen full price selling even excluding some of the units' liquidation is strong double digits they're hitting at least if not better than their historical financial al go rhythm, lag in the actions. you have 257 earnings growth story for the next two years takes you in excess of high teens operating margins multi-year in my opinion this is a more efficient company from an sg & a perspective on the other side of this pandemic, and it's fairly well run with an

extremely deep i think t.a.m. is tied to casual, and i don't think anyone coming out of the pandemic is larmer on the other side than it was before, and this is your industry lead sneer ten seconds, do you like it better than nike or lululemon i know you liked that story too. >> both operate in that active segment. i think nike has more self-help over the next 12 to 18 months and lulu is the story that if they continue to operate as they are, there's so many areas of that business that are still in early innings growth. >> thank you so much we've got just about under two minutes to go on the trading day. what do you see on the market internals? >> strengthened throughout the day, sara. seems like a little bit of a chase underway 2-1. that was more like 50-50 around midday at noon so clearly, again, the breadth of this rally has been one of

the stronger points. take a look at the steel sector. this is relative to the market basically threatening highs from early last year. so this is part of a heavier industry's global growth proxies that have been doing very well within the cyclical group. take a look at the volatilities index. it's really come in. below 19 pretty much at the lows of the last year or so. clearly the market not believing there's really a lot of shock value in the inflation as we're heading into the weekend before getting to the fed meeting. as we head into the close, looking strong on the s&p. on the nasdaq, almost 2% there's the dow. it's high by about 181 points. salesforce, chevron, microsoft, goldman sachs, those are your leaders in terms of the biggest contributors ibm is the biggest drag. home depot and ngo at the bottom of the list. you can thank chevron and some of the others rallying along

with it after the big buyback. consumer discretionary strong as well thanks to tesla, and so is the nasdaq, which is going to close up 1.75% led by tesla, microsoft, amazon, meta, alphabet they're all higher today today we got better gdp numbers. that's it for me on clowing bell i send it into yt" overtime" wih scott wapner. >> welcome in to "overtime." intel and visa, their earnings are limited. what a good check on demand for chips. another, a check on the consumer our reporter standing by to break out with the details after the numbers hit. we begin with our "talk of the tape." the imminent recession deal has been pushed off long enough that the rally can last l