curiously, though, amid the rise in the stock so far this year to date, tesla has been a net sale among retail investors so something to watch out for. >> even as they're buying the cars, especially in california thank you, dom we always appreciate it. >> you can almost afford a car with the price of the stock. >> thanks for watching "power lunch." >> "closing bell" starts right now. stocks pulling back today with the nasdaq seeing the sharpest decline it's down around 1.5%. this is a make or break hour i'm sarah eisen every sector is down right now what's getting hit the hardest, technology and utilities at the bottom of the market consumer discretionary, staples, right down there with it the nasdaq in the eye of the storm. alphabet, amazon, meta and costco the biggest weights tesla is having a good day

and the dow is down about 165 points home depot, mcdonald's and honeywell. alphabet is falling sharply after the company held an event showing off ai technology. down 7.4% right now. we've got a great lineup of executives to talk about what they're seeing we'll talk to terry duffy with the trading environment, cvs ceo karen lynch will join us to talk about the multi-billion dollar deal and collin brown will be here to give us the read on the consumer first up, let's get to the market dashboard senior markets commentator mike santoli, pressure on tech, even though yields and the dollar are lower. >> and tech had raced higher you mentioned the alphabet move. that is good for a quarter of a

percent of downside, so roughly one-fourth of the overall decline so far if you look at the s&p, it is bunched together over the last several days all of today's range is within yesterday's range. so you see the sort of tight little range right there in the last several days. we're still well above even, let's say, the february 1st lows on the s&p, which is around 4030, and that's the idea i would look at. if this pullback goes down to that level it's perfectly routine. if anything, it would be to be expected after the run we've had. it wouldn't be too much of today's decline in terms of the macro interpretation it really does seem as if things had overrun a little bit in the short term and are pulling back. but it's not to say nothing is going on macro-wise. take a look at the one-year treasury bill yield. it's actually been really steady since october and then what you see over the last couple of days is a pop higher. so this is basically the highest

yield on the curve it's pretty close to the six month. just under 5%. what does that tell you? the market is pricing in a greater chance of an additional quarter point hike after the jobs number and the fed speaking about rates getting to 5.25%, thereabouts. but now tilting a little higher. consider an additional one-year yield. this matures in february of next year, thereabouts. so it's essentially saying we'll get to that target and maybe there's some room, depending on the path the economy takes, of a cut, or maybe we stay here to me, this is most sensitive to what the path for the fed is looking like. >> this is the big debate right now and we're all trying to figure out the really strong jobs number and what that's going to mean, including fed chair jay powell here's what i want to know, strong jobs, tight labor market. does that feed into the soft

landing narrative or the hard landing narrative, that the fed is going to make a mistake >> you're on course for a soft and the fed has to really slam on the brakes to bring about a hard one there's this other idea of a no landing scenario where it's essentially the economy continues to perform okay. the issue is, can inflation get back to target in that environment? we simply don't know the fed won't commit one way or the other. what powell did not do yesterday after the hot jobs number is imply it really changed the picture very much. he's not going to assume we're at a 500,000 job a month pace. >> but suggested if we keep getting hot jobs numbers, it could make them go higher. >> we're data dependent and that's why the market is not going to go too far one direction pricing in certainty. >> ten-year today 365. mike santoli shares of cme group popping today after beating earnings estimates this morning the company calling 2022 the best year in its history with

volume up 19% than the year before joining me is ceo terry duffy. welcome back good to see you. >> thank you i appreciate it very much. >> so i guess all of these fed hikes and uncertainty over the future path is ultimately good business for you is that what's happening >> well, that's part of the e situation. there's no question about it but we're a multi-asset class institution and all of our asset classes were up in 2022, as you just said, we're up 19%, which is a record year for cme its the biggest year in the history of our company so we're quite proud of achievements and kept our costs down. we felt like we're getting rewarded for that today and we'll see where it goes. but the markets have been relatively exceptional we're here in the month of january and averaging, you know, roughly 23 million contracts a day in the month of january, which was about the average for 2022 we're off to a good start in the first month of '23 as well

>> that was my question, what you expect for '23 you're off to a good start if the fed does start to move closer to a pause, which is what the market is expecting, and commodities normalize from some of these crazy moves we had around the war last year, what happens? >> it's hard to predict what's going to happen. i think when you look at where the market is pointing to, the next fed meeting, a 90% probability that it will be another quarter percent hike and then a meeting after that in may with a 70% chance of a quarter hike and the fed fund futures is pricing in potentially by year end maybe a pivot on the downside we'll have to wait and see what happens. chair powell's comments yesterday i think caught a lot of people off guard. i heard you talking to mike santoli about that i think that's fascinating you keep talking about hard landings and soft landings i'm still waiting to hear about the landing. we've been talking about this for a year and we've yet to come

to a conclusion. i think it's just, you know, the time that we live in, which is a complete age of uncertainty. i think that's where we're at and i think that bodes well for cme group. >> you mentioned the fed fund future, starting to price in cuts this year, even though numerous fed officials, including the chair himself, said we don't see cutting rates this year. we're not planning on it and it's not the scenario. so how should we interpret what the market is telling us there >> i think that's the beauty of the market people can express their views on what they think is going to happen over the next several months as i said, 90% chance of probability of a hike and 70% chance and near the end of the year they're talking about a small cut. that's the market's reaction to what they think is going to happen it doesn't mean it's going to happen i guess we'll wait and see as other data comes out we've become to data dependent, we're going to have to wait and see how the fed reacts

these job numbers are catching a lot of people off guard. the market rallies off of chair powell's comments yesterday and then sells off today the market is kind of going back and forth and that's why i say it's the age of uncertainty. minute by minute we're really trying to weigh and decide which way the direction is going to be >> and speaking of that, i saw in a few trading notes this morning deutsche bank commentary notes, talking about these trades in the rate market, an outsized new position in the options market, september '23 options targeting a rate as high as 6% that could pay, what, $60 million, $70 million if that comes to fruition. are you seeing a lot of these kind of moves? >> i think it was an $18 million position and if, in fact, you saw the rates go somewhere just north of 5.5%, it paid out at

$60 million. if it hit 6%, we're talking about over a $100 million payout something to that effect, i think, is what you're referring to. >> yes. >> there's a lot of people coattailing that trade we've seen open interest reflect that we've seen a massive uptick. so for options, we went from basically nothing open a year ago to record open interest bigger than when the complex was in full swing. we're really seeing an uptake in positions. people are making bets on what the fed may do i do see that on our books here. so interesting >> no kidding. what about bitcoin products, what are you seeing in terms of demand, especially on the institutional side, terry? >> you know what, it's really been interesting what's gone on with bitcoin, after we saw what happened at the end of last year with some of the issues going on

in the industry. the whole industry of crypto kind of suffered and then we saw an uptick in our interest and trade starting around november and december and it's continuing on so i think people are looking at the regulated market and especially the institution saying, you know, if we're going to trade this stuff, we're going to trade it on a regulated exchange so we've seen an uptick in our crypto products, so we're quite pleased by that. >> very good have you very much for joining me, terry. appreciate it. >> thank you >> terry duffy, ceo of cme group. shares of cvs getting a healthy bounce on the back of earnings and revenue that topped sfek tagzs and confirmation of a multi-billion deal for oak street health. we'll speak exclusively with ceo karen lynch after the break. you're watching "closing bell" on cnbc. down 212 on the dow. low of the day as 241. we'll be right back.

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cvs shares moving higher after the company beat on the top and bottom lines in its q4 earnings report. the company confirming it is buying oak street health, a primary care health network that focuses on older adults for $10.6 billion, including debt. the move comes after cvs bought signify health for $8 billion. joining me for an exclusive interview is cvs health ceo karen lynch. welcome back good to see you. >> good to see you, too. >> so talk me through the strategy here of this deal,

because you're in retail pharmacies and health insurance with aetna, and now in primary care why oak street >> yeah, so think about december 2021, we basically laid out a comprehensive strategy that we wanted to extend into health services and we were clear in articulation saying that we wanted to be in primary care, we wanted to be in the home and we wanted to have provider enablement capabilities, all so that we could build a vertically integrated ecosystem to support improving the overall healthcare of americans, and we basically have executed on that strategy and today, as you know, we announced oak street health. we were very comprehensive in our assessment of our primary care capabilities, what we said we wanted to do was have the right technology, the right management, the right ability to scale, and this asset hit every

single one of that criteria and we feel really good about oak street we're very excited about what this transaction will do for the company and for the future growth of our company. >> investors feel good about it, too. the stock is up nicely i think that analysts i talk to are bullish on the idea that all these services that now you offer can be integrated and you can see a lot of synergies how heavy of a lift is that going to be? >> first of all, we have to close our transactions with signify and with oak street. what we have is really the premier multi-payer value-based care assets between signify and oak street, and the way to think about this is really think about signify health people are in the home and they determine that one of their patients need primary care they have the ability to refer that patient into primary care and then when we continue to

evaluate their opportunities, we have assets in our minute clinics and health hubs that can have additional capacity, that can have extended care services. and then we can really wrap around all of our services, including our specialty pharmacy and anything that we do will support our medicare advantage members and also our customers, because this will be a payer agnostic approach. >> i was wondering if you anticipate any regulatory pushback you know you said it's all vertically integrated, so no real competition but obviously a huge medicare population year dealing with here. >> yeah, these are complementary assets that are extending businesses that we aren't currently in so obviously we're going through the process in signify and we're very much down the path and we anticipate that this will close at the end of 2023 >> and one thing you're getting that you don't have is doctors,

right, and nurse practitioners is that a good business? to primary care, even though it is a install portion, it wields significant influence on total health care spend. so if we have this asset combined with all of our other assets, we have the ability to improve quality and reduce overall health care costs, and this is part of the comprehensive approach to health care this is an important asset for us. >> yeah, i want to talk about the quarter, also, karen, because you're earnings were a beat how much of it was the impact from what we've all been experiencing this winter a tough season of covid and flu and rsv and strep and all the other things that my kids have brought home >> well, the good news is we have raised every single quarter

this year, every one of our foundational businesses performed well we had strong results in our health care segment, we had strong results in our pharmacy services segment and strong results in our retail segment. so overall the foundation is exceptionally strong, and also what's underappreciated with our business is very had very strong cash flows of $16.2 billion. >> so where are you on covid because it does feel like for vaccines and treatments there's a decline in terms of the uptick how do you map this out? >> so obviously covid is on the decline. we are expecting significantly lower covid related results. we expect to see lower otc tests. and then we expect to see annual vaccines for covid and for flu but we've been doing a lot in our businesses because we knew this was coming, we've been improving the operations of our

retailer locations, improving through expense efficiencies, changing our merchandise and really using technology to improve the customer interaction with us, as well as our operational efficiency. >> how is the pharmaceutical supply chain, which like so many supply chains lately has been tested and we've seen shortages of key drugs >> yeah, for now we've got very strong in stock. there are certain parts of pharmaceuticals that have been pressured, but overall the performance of our supply chain is very strong >> and finally just wanted to ask you about a story that's been percolating in the last few days 20 attorneys general warning you and walgreens against selling abortion pills i'm curious what your position is here, karen, and whether you're dispensing those pills currently. >> so we're a health care company and our goal is to provide affordable access. we have our north star to make

sure that women have access to health care products and health care needs and obviously we are paying attention and are following every state and federal law with any of our dispensing of our drugs. >> do you think this is going to be a fight >> what i said is we're going to make sure that we have accessible capabilities and drugs for women's needs. >> absolutely. karen, appreciate you commenting on that and all the other big news today thanks for the time. >> thank you. >> karen lynch, ceo of cvs health. we'll just show you what's happening. down day, all sectors lower. dow is down more than 2 hub. nasdaq getting hit the hardest in the last few minutes, down 1.75%. we're going to talk to underer armor's founder, kevin plank, and its sfwirm ceo colin browne

about the report that sent it higher and then the sharp decline after the open later, dissing bart, shares plunging about the accuracy of the ai bot we'll explain when "closing bell" comes right back

time for the big picture today we're focusing on the luxury consumer. a rare miss for capri, behind versace, michael kors. a 6% revenue drop, a profit fall and the company lowered guidance michael kors was hit the hardest. china part of the story with store closures and bumpy covid reopenings the main issue that was highlighted, the wholesale business the ceo specifically called out the department store chains, which he said have not kept up the pace of growth throughout the year he called it disappointing he said we expected that to have

an uptick, especially during the holidays, but that did not happen one reason idol cited could be the price points of their bags and clothing and accessories michael kors, along with everyone else, has raised prices they're adjusting investments and spending accordingly since idol called the business unprofitable the takeaway, the good news is capri doesn't signal a big decline in the consumer overall. the brands and stores did well and have kept pricing power, but it certainly is a red flag on the department stores. they're all trading lower today, of course with the market. it is a warning, though, that that particular customer may be really starting to push back on higher prices and overall apparel spending when we come back, speaking of, under armour founder kevin plank and interim ceo colin browne here to discuss consumer spending as the stock holds

back

under armour shares under pressure this afternoon, down around 9%, despite a third quarter report that topped expectations the company raised its earnings outlook for the fiscal year. investors keying in on rising

inventory levels despite heavy promotions the stock is still up 8.5% so far this year. joining me to discuss, under armour founder, kevin plank, and interim ceo, colin browne. it's good to see you both. what happened? the stock was up this morning before the call. it was a beat and raise quarter, and now it's down sharply. >> it was. we had a good quarter. we had a solid quarter we did what we said we were going to do. we have a line of sight closing out the year pretty well inventory is a story, but our inventory situation is a little different than many people out there. we didn't quite have the same hangover from covid as others did, so we're actually really quite comfortable with how our inventory is looking against our growth expectations next year. margin is challenged, of course, because of the large promotional activity that's going on at this moment in time we're focused on our strategic

priorities, executing what we said we were going to do we have new leadership in north america and ensuring that we can grow in this important market. >> so explain the inventory just a little more. because i think it came as a surprise to people who had seen you previously as more lean with inventories. when does that come down to more normal levels? >> well, our inventory was very lean last year if you go back and look at what we published last year, it was tight. we were running a constrained model for the past couple of years and we decided we were going to cancel orders as covid really bit into the supply chain. we didn't have the same hangover from an inventory perspective, so obviously we're seeing the ebb and flow of business and we look to set ourselves up for success in 2024. our inventory is right sizing and it's running around three turns, which is what we expect it to be and need it to be for

the size of business we have. >> kevin, ultimately the question is, what is the strength and performance of the brand. is it resonating, and why aren't we seeing growth in key spots like north america and in apparel? >> sara, thank you it's great to be with you all today, too it's a brand new day at under armour first of all, i have a lot to thank colin getting us to this point. new leadership, a new ceo and stephanie coming on board, patrick and carolyn joining the board recently, we're excited about where we are the brand is in a terrific place. if you look at how difficult it is in our industry, a, to break through, one of the things we've been able to do was establish this good, better best you think of the landscape of what product apparel looks like. right now we feel about a $6 billion with a lot of good, with some better and nowhere near enough best. to focus for the next chapter, we're going to chase ourselves

into doing it the right way. you feel that happening with the brand right now. we're going to have things that you can point to, like our new slip speed launch, which will be kicking off next week in new york city. in the flatiron district we're opening a pop-up, we're doing a global launch this quarter and it puts us in a position as we think about the next $4 billion, if you look at $10 million, outlook for growth, we've built $6 billion of the good, better, best, we see prioritizing on the better and best side of things. >> if you look at the growth in europe, the brand is doing quite well in europe the model works and that's the strategy >> i guess, kevin, the question is, how do you reignite the brand around some of your growth areas like varsity sports and overall team sports in a difficult promotional environment and potentially deteriorating macroeconomic

environment? >> sara, you said it we're still coming off of -- as we move into the new strategy, we've renamed our target consumer as the 16 to 20-year-old varsity athlete. that means whether you're a freshman, a senior, someone that used to play high school or team sports, we're still making product that's relevant for you, but doing it in the light of something that increases in tandem with the company. our adjustable market went from $100 billion to $300 billion that's going to take us from focusing just what the athletes are wearing on field, on court, on pitch, and focusing on the other 22 hours of the day. we're focusing on tunnel walk, how do athletes get in and out of the stadiums in how they look with style but it will have have the ua performance in everything we do. >> colin, how would you describe the consumer environment are you see evidence of a slowdown tied to the economy in north america? >> it's not easy we've seen other people post

results. at the end of the day, we're focused on doing what we do is keeping the main thing the main thing. we're confident with the strategy we have in place and we believe as we continue to lean into that we have line of sight for a pretty interesting year next year. we're opportunities, certainly in our channel that we're focusing on and continuing to invest in. >> how much longer is it going to be promotional like this? >> let me say this, it's one of the things we think we have been able to see, the beauty of being a global business, it gives us tentacles to see around the world. emea was 30% this year and we have it going on in north america. but we are taking as part of our strategy a real hone-in and focus at home to make sure we win in north america, we win those hearts and minds and focusing on kids you'll see our strategy and dollars, but we don't feel like giving up ground we have the momentum of working

in other parts of the world but really focusing on winning here, winning in our own stores, in dtc and supporting our partners is the focus i mentioned slip speed but that's a metaphor of what you can expect to see, product that is unique, differentiated and only we can make. >> you mentioned you've got a new ceo. stephanie is coming in at the end of february and i know colin will stay on as well what is the mandate for stephanie? >> i think first and foremost it shows how we are deepening our bench here by colin being here and moving into the coo role again, to drive if not the most prominent logistics experts in our space. when we think about for stephanie, there's a lens we've applied here at under armour decision lenses, should we make this decision or not make that decision priority number one is does it inspire our team everything we do should have our team saying it wants me to be

here number two, does it give confidence to our stakeholders, looking at our critical partners like notre dames of the world. do they like the choices we're making decision number three, and stephanie is on board, what we're about to do is going to instill fear into our competition. that's the way we're thinking about the next chapter probably what you've seen in the past but more importantly, we're not looking to play free bird. we're going to run the new version and we're going to celebrate the 20-year anniversary of protect this house. that's something you'll be hearing this fall and maybe a little bit earlier than that, too. but under armour is going to be playing offense. we're ready to run. >> so final question to you, kevin, what is the status, now that tom brady is officially retired, what is the status of that relationship? because he has his own competitive apparel line, doesn't he >> it's a terrific relationship. we still have an amazing partnership and we completely support tom in everything that

he does. he's one of our biggest advocates. the world is fortunate to know there's people like tom brady that exist and hopefully this weekend is a great celebration of sport with someone like tom who just represents football so we love what we do and we say that sports can bring people together there's going to be a lot of people sitting on their couches watching this big game and tom brady, for once, can kick his feet up and enjoy this with his kids that's a pretty good day. >> it is thank you both very much for making the time. appreciate it. >> thank you. >> kevin plank and colin browne of under armour. take a look at where we stand. we're down 184 or so on the dow. we've got 20 minutes left of trade. the s&p is still lower by a full percent so we're giving back yesterday's gains and we're now weaker on the week overall everybody except for the dow, which is pretty much flat. but still every sector lower we've got utilities, technology and consumer discretionary at the bottom of the market uber is taking investors on

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what is wall street buzzing about? apple stumbles today call it a blunder for bard this may be an example of a stock we've seen going in the opposite direction because of ai some are pointing to a tweet from google showing off its bard chatbot, giving an incorrect description of the space telescope. investors are apparently not impressed. the stock is down over 7%, shedding over $100 billion in market cap for its worst day in four months. underwhelming, according to the analysts we're minutes away from disney's quarterly report. a look at the key number to watch as bob iger returns.

that story, plus uber rallies and activision sinks when we take you inside the market zone. . if i knew about upwork. i would have hired actually talented people from all over the world. instead of talentless people from all over my house. even if you like a house, lowball the first offer. the house whisperer! this house says use the realtor.com app to see three different estimates.

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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 we are now in the "closing bell" market zone. cnbc senior markets commentator mike santoli is here and dan ives on uber's beat and we'll kick it off with the market down 214 on the dow, a 1% pullback, a little more. on the s&p 500, nothing is

working. what's the catalyst? >> the focus in recent weeks on how much better the market has been acting, it's been gaining credibility, how broad it is, intraday strength, so all these things are pointed to basically people reaching for risk and needing to feel exposed to a market on a good roll. we're to a point where you say, all right, what's next we have to absorb the potential for the data dependent fed to do more on rates. we're now in sight, less than a week, before the next cpi report and i think you have some hesitation there i see it as normal digestion, consolidation. the nasdaq in particular really had a sprint to the recent highs. so that's where i think you're seeing most of the consolidation today. i wouldn't draw too many conclusions in today's action in terms of whether the rally is over but an understandable breather. >> big tech, some of the apparel and retail names, home builders,

restaurants, they're all underperforming. uber is rallying after an earnings beat and estimates came in better. what it calls its strongest quarter yet. total sales up 50% from a year earlier as the ride share service hit 2 billion trips in a quarter for the first time ever. the company posting a full-year net loss but uber's ceo saying he's aping for profitability this year. >> the year before last we talked about being ebitda positive we hit ebitda positive ahead of street expectations. last year we said we would be free cash flow positive. we got to free cash flow positive ahead of street expectations this year we are going to be operating profit positive, and we'll had hit it in due course we don't want to focus on quarters we want to focus on many years >> this ahead of rival lyft's earnings after the bell tomorrow dan ives joins us. he just reiterated an outperform and raised his price target to

$40 from $38 so you're impressed with these numbers, dan >> i think dara and team talked the talk and now they're walking the walk look at the ebitda that was a altblowout and you're seeing the growth rebound. i would say it's their best quarter since the ipo after a rocky start. i feel like there's green grass ahead. >> does it bode well for lyft or is that on a different track >> look, i think uber definitely has the opportunity, because of the global scale that's enabled them to sort of flex their muscles from an ebitda profitability perspective, as well as growth because they got the delivery that continues to hold in a lot better than expected lyft sets a high bar i do believe lyft will be better an expectations and i think when you take a step back these are under-owned names across the board. i think now we're seeing a rebound in these management teams. there's adults in the room,

finally, after a few years. >> but if uber is proving that it can get to profitable growth, has lyft proven that yet as well >> not yet and i think that ultimately it set a high bar both have different levers and because they're domestic they don't have other things that uber does. i think dara has done a great job in terms of scaling things back for lyft there's more and more pressure for them to cut costs but that rebound is significant in terms of what we're seeing, especially over the last few months in terms of major cities. we're seeing a significant rebound in terms of travel and return to office these ride sharing players are benefiting now, finally, post-pandemic. >> what have we learned with ub and lyft's susceptibility to the macro environment? covid was weird and distorted everything but now that drivers are back, people are back, gross bookings are up, what have we learned if

there's softness, what happens >> i think now we're starting to see different business models, and even when you go back a few years ago when i was coming out of the ipo, there were disasters. now the scale, cutting back costs, you can see that they can scale from a profitable perspective, and from a macro holding up well because it's a duopoly. can they raise prices? what does that look like in terms of demand? we're seeing demand hold in and that's super impressive, especially when there's been some white knuckle quarters from both uber and lyft. >> what is the pushback you get when you talk to clients about these names? >> i think many investors institutionally, they're just skeptical about their ability to further expand margins and ebitda can they do it if there's a further price war. many are snake bitten in these names.

i think sentiment is starting to change, especially more and more of a risk on across tech you look at what uber is doing, it's still a cheap stock lyft is as well. cod is changing and i think that's result driven it all starts today. >> got it. dan ives, thank you very much. raising the target on uber appreciate it. let's turn to gaming, the uk objecting to microsoft's $69 million bill to buy acty innovation, arguing the proposed acquisition would hurt gamers by giving microsoft xbox unfair dominance over sony's playstation. similar to what we heard from the u.s. regulatory authorities. >> sort of, but more narrow than we saw from the ftc here in the u.s. what the uk is talking about is the cloud gaming market which is where microsoft really sees this whole industry going instead of buying an expensive console, you stream the games to different devices, which is why it wants

to beef up its library with activis activision games they're focusing on that and the market is alleging that in nintendo doesn't count on top of that, there's a long way to go. so the next step is by march 1 microsoft has a deadline to respond in a formal way to these allegations by the cma and then on april 26th we're going to get the final decision from the cma whether they approve the deal or not. and it looks like, based on what we saw today, they don't want to approve this deal and that could be the nail in the coffin for the $69 million acquisition. >> activision is down 3.5% how has it affected the company? obviously there is a huge uncertainty to hang over a management team and an entire workforce, not knowing whether this company is going to end up in microsoft's hands. >> and i would refer back to

activision's ceo, who was on "squawk box" yesterday talking about just that. he said he wants to get it done and he believes the deal will get done if it's not done, he did say we're in a good position, we're still growing, and he also pointed to we have $12 billion on the balance sheet and, by the way, there's still opportunity for m&a within the gaming space so let's say for argument's sake this deal falls through. we could see an activision try to combine with a take two to beef up libraries. so just because microsoft might not be able to get this deal done doesn't mean m&a activity is going to completely end in the video game world. >> mike, is the market pricing activision as though the deal is dead >> the market is pricing it and it has for a while, as if there was a long-shot chance it's a $95 cash offer. it's always traded wide spread, presumably because of the

regulatory risks we're seeing. so what that probably means is if the deal were to be called off entirely, there might not be much downside at all activision is trading pretty much in line with peers at this point, like electronic arts. despite the fact the bid came in that period, it's not been that different from ea. at this point i think anything that looked like progress would obviously help the stock but it's not as if right now there's a lot embedded in the shares, the chance of the deal. >> a long way from the $95 deal price. thank you, steve disney is the big name set to report earnings after the bell today. investors will certainly be paying very close attention to these results, especially from the streaming services business. and what bob iger has to say about potential cost cuts. it's his first quarter back as ceo and he's facing pressure from investors, nelson wants a seat on the board and is looking

at a proxy fight there's a lot at stake. >> it's probably one of those situations where it's a wait for the conference call to make a judgment as to how good a quarter it was and whether there's a credible plan to investors for exactly what the run rate of content cost is going to be. they're going to reaffirm the subscription both efstimates on the books. domestic parks should be strong. naturally coming back in terms of shanghai disney should be something. very good box office with avatar and the black panther movies the stock is up 20% or so from the lows late last year so you need to have a little more of an incremental reassurance that we have a path forward. i doubt we're going to get conclusive ideas on real big stuff like the hulu potential purchase or disposition and maybe what to do with sespn

>> he's got to address the concerns around streaming profitability and underperformance that nelson has pointed out. we're under two minutes to go in the trading day. talk about what you're seeing in the internals. >> a bit listless but not a washout. we have some giveback on that front today. two-to-one the mega caps are weighing pretty heavily on things right there as well. take a look at interactive brokers. a lot of talk they'll come back. this is a stock making new highs. these are much more high volume retail traders, so you see that's reflected there in some of that action you're not really seeing it in things like asset management, but definitely on interactive brokers. volatility index popping a little today we've got the cpi ahead of us. people are worrying if we might sustain a pullback in the near term. >> 180 on the dow, mcdonald,

home depot and honeywell the biggest drags. s&p 500 down a percent every sector looks like it's going to close lower tech and utilities at the bottom of the pack. nasdaq down 1.6% alphabet is a heavyweight. we mentioned the disappointment around the ai chatbot. tesla is an outperformer as the market closes lower for the week now and for the day, heading into a thursday. that's it for me now to "overtime" with scott >> thank you very much welcome to "overtime." i'm scott wapner we are just getting started here at the new york stock exchange and we are moments away from the moment of truth for disney it's earnings about to hit with so many questions swirling around the future from bob iger's strategy moving forward to how he'll deal with the proxy fight with investor nelson peltz.