not exactly maybe the target audience for pharrell's fashions, but does he bring a team with him? >> he has got people that he's worked with various designers, you know, billionaire boy's club he's done collaborations with sunglasses and other things. so suspect, yeah, he has people who work with him. but lvmh has its season team so fun for both sides. >> robert, thank you >> and "closing bell" starts right now. major averages all over the map today as wall street tries to make sense of the hotter than expected inflation trend this is a make or break hour for your money welcome to "closing bell." there is the dow, take a look at where we stand overall, down 80 on the dow, low of the day was down 418, but just to show you how the swings have gone, the high was up 85 s&p 500 holds on to a gain just barely, it is consumer discretionary technology, materials and energy that are leading us higher. and everybody else is lower.

real estate, staples and financials at the above the pack the nasdaq isholding up, half about half a percent and some mega caps are lower like an amazon check out the surprise quarterly profit here. calling it a significant moment for the company. we'll talk much more about that move later in the show and also ahead, former federal reserve vice chair randy quales will join us to talk about the next's fred rate decision. and we'll talk to the ceo of keycorp. and let's get straight to the market and mike santoli. what are you watching? two year yield i'd point out is higher on the back of that inflation trend. and tech is holding up despite

that >> true, short term yields definitely have replaced a little bit higher, though the bulk of the yield move seemed to happen the last couple weeks you're right, tech is also performing fine. those two are not perfectly linked longer term yields are a little tame indecisive action in the market today. more or less on target cpi with some things perhaps to worry about the stickiest of services inflation. and it shows you that we more or less got what we expected except we're asking ourselves if we need higher fed rates, higher terminal rate, it is now getting priced in incrementally. the prospect for that. and so it leaves us really where we finished not last week but the week before. yesterday's rally got back all of last week's decline almost fto the point. and within the day, 1% moves three or four times from high to low around that flat line. take a look at the market implied inflation expectations over the next five years

this is break even inflation actually this is the ten year chart of the five year forward inflation rate and so obviously we were at 2.5% ten years ago before we got used to the idea that it was hard to create inflation in that economy that was operating kind of below potential. but here we are, a lot of relief, that is when the market more or less found its footing is when we got down side momentum and inflation expectations here. but we bounce a little bit so kind of curling higher from the 2 area to 2 1/2. this is not to say that this is an accurate projection of what inflation will come in at, but it shows you what the market is willing to pay up for. >> and i'm looking at consumer discretionary is the best performer and that is because of tesla. tesla is up 6% and the stock is up 100% off the 52 week lows >> and yet it was down yesterday when everything else was up. so essentially it has a mind of its own.

i think that it is a little bit after january surge and some of the riskier stocks, a little more retail excitement and maybe some struggles among its competitors out there when it comes to ford kind of having a half step back with its ev pickup so i don't want to explain the price action in tesla because it has never made sense, at least on a point to point basis, but for today that is why consume are discretionary is doing well. i would say the town side leader -- down side is in the defensive areas. so not a terrible message coming out of the market. >> and staples and real estate at the bottom of the list. mike, thank you. let's talk more about that inflation trend which marked its seventh straight month of cooling prices, though the number did come in slightly above expectations i spoke earlier with bank of america's ceo brian moynihan about the report >> our team has a recession predicted, they moved it out another quarter recently

they have lessened the impact. and i think that people are sort of coalescing on this idea that maybe this thing is not a soft landing, but maybe a more mild recession and the delay is due to the strength of consumer and other things but the fed will have to get inflation where they want it and that means that they will hold rates higher and is that the caonundrum in the market >> joining us now, former federal reserve vice chair for supervision, randy quarles welcome. >> good to be here >> takes it is a conundrum fore fed. inflation is starting to come down but as we saw, it is not happening very quickly and there is still a lot of parts in there that are proving pretty sticky. so what does the fed do? >> well, i think that the first thing you have to remember is that the fed's policy acts with a lag and that lag is at least six months of historically

people have thought that that lag would be a year, even two years before particular policy action flows through to the economy. now, there is very good reason to believe that that traditional one year, two year lag estimate is going to be shorter in the cycle and i think that it will be shorter, but even if you assume six months, we will just barely be seeing the effect of the first 75 basis point interest rate increase in the economy now. and so the repeat of 75 basis point increases will work its way through the economy over the next several months. and i think that this is about exactly what we would have expected inflation to be doing now, a little bit higher, but about what we would have expected it to be doing given that lag and given the fed's policy if you thought that the policy was working. so i certainly think that this

is evidence that the fed's policy is working about as well as one could expect. but it was not until the middle of the summer that we started getting the really robust rate increases. and that will take a while to work their way through >> so if you were still on the fed, would you be in the camp saying one or two more 25 basis point hikes is enough and then we can pause and see what happens? >> so i certainly would be i do think that when you look at the percentage increase in the cost of debt service, short term debt, as occurred over the course of this period even though in absolute numbers the interest rates are, you know, at reasonable historical levels, it has been a very thin percentage increase and i think that that will be quite effective. so i would -- if you were still on the committee, i'd support

another increase at 25 basis points, take it up to 5%, and then pause and let policy catch up to the economy and determine where you go from there. >> and so just one more. does that mean that you are really making the case for the lagged effect of the fed tightening does that mean that you think this whole burst of enthusiasm around the economy that we might not even have a hard or a soft landing, that that is not realistic, that we'll definitely have a recession once the full effect of the rate hikes hit the economy? >> well, i certainly think so. i break with what brian moynihan said just now, that clip that you showed, which is that i believe from the beginning of this tightening cycle that you'd have a short and shallow recession. i think that is consistent with the dynamics of the economy that we're seeing currently the fed has almost never, maybe once in 80 years, completed the

tightening cycle without triggering at least some recession. so it would be reasonable to expect one here, and i do, but i expect it to be short and shallow. >> if you would hang on for one second, we have news to get to from washington and we'll come right back to you. but kayla tausche has news from the white house. more bashing of buybacks >> that's right. president biden has frequently taken aim at stock buybacks by corporations, but today for the first time he slamgedmed the st based compensation for many executives that is at the heart of a lot of the repurchasing of the stock which is why a lot of companies have been doing tand their share count has not been decreasing earlier today, president biden said that voting in support of a 1993 tax reform bill that

essentially placed a cap on the deduct ability of executive compensation at $1 million in cash for certain level of executive, he said that that is one of his biggest regrets during his time in the senate. he said the road to hell is paved with good intentions and he blamed that law in particular for leading to so much of an executive's compensation being in stock and therefore leading companies to be issuing and repurchasing so much of it remains to be seen whether this will be channelled in to any policy actions by the white house or any calls on congress to change some of those laws but certainly it is the first time that president biden has made that specific argument. and i know many executives are taking notice. back to you. >> kayla tausche, thank you for the update from washington and randy, do you have any problem with stock based compensation for executives and

share buybacks >> really, no, i haven't ever hear coherent or compelling argument against stock based compensation and if the compensation committee of a board wants to have a certain amount of compensation in stock, i see no public policy reason that we should be opposed to that. and in fact, stock buybacks, the practice of our large banks distributing returning capital by repurchasing their stock allowed us to be much more flexible during the covid event in 2020 when regulatory authorities around the world had to completely prohibit banks from issuing any sort of dividends.

and because our companies distribute a reasonable amount of capital through stock repurchases that are variable, we could close down the stock repurchases and still allow difference tvidends to be repaid so i see a number of positives to the practice. >> and i'm glad you added the context because i was going to tell people, you are the bank cop, you were the bank cop on the beat, right, for the federal reserve. and that is what you were famous for. and in that conversation with brian moynihan today, we talked about new stress test scenarios and he was pretty adamant that banks are very well capitalized, the industry is well capitalized, we don't need new capital and he is still doing buybacks and i wonder if you would agree. >> yeah, i don't think there is any argument there the banks are extremely well capitalized and there is -- i think that the amount of capital is just about right. i wouldn't argue if there were significant reductions in capital. but there is a cost to too much

capital in pushing activity outside of the pretty stable banking system and into the less stable nonbank system where there are bigger risks to financial stability. so i think that you have to think about the whole system when you think about what the right level of bank capital is and continuing to increase it has costs. >> i think that they would agree with you on that point it was good to talk to you thank you for bearing with us on the news as well >> thanks so much. former fed governor and vice chair of supervision after the break, the under the radar $50 billion tech company making a big move on earnings. we'll talk to the ceo of cadence design systems the stock up 7.2%. we'll talk to him about the outlook for the chip sector, consumer tech and ai and dow down 100 points. nasdaq remains positive by almost half a%

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check out shares of cadence design, up better than 7% right now touching an all-time high. the company reporting a strong fourth quarter while issuing first quarter employer guidance that came in above analyst estimates. their ceo is here for the first time good to have you >> nice to be here >> so we don't talk a lot about your company it is a huge tech company that services semiconductor companies

whose stocks are all down and you are making new highs how does that work >> that is a good question so cadence makes software that designs chips and electronic systems. chips are all around us. whether it is the phone or the computer or even washing machine at home, they all have chips in them and they are all different based on what the requirement is, so they all have to be designed so almost any chip in the world design is designed with some form of cadence software and there is a demand for more and more chips and more and more electronics, so that is why we're doing well and i'm proud of the team and thankful to our customers and partners >> so you are do well secularly despite that the end markets, pcs, electronics post covid are really weakening, aren't they? >> so at cadence, we work with all end markets. some are strong, some are

weaker we look in all geographies >> who are the strong categories right now? >> i mean, like data is strong, automotive is strong but the key thing to remember is that there might be revenue differences in the short term, but in the mid to long term, there is still going to be massive demand for semiconductors and most of these r&d projects that take three, five years to develop and we're part of the r&d cycle. so customers are still investing heavily in innovation. >> i was going to ask you if we should take the strong numbers that you post as a sign that despite the sort of uncertain macro environment, these big semiconductor companies are not pulling back dramatically on r and d spend. >> they continue to invest and there are three big drivers for our growth first is investment of semi conduct tor

conductors and long term r&d and second is a lot of the system companies, companies that make cars and phones, they are also doing their own chip design so about 45% of our business now is from system companies and that greatly increases our time it adds to our end market. and third big trend is use of ai, that is pervasive these days and if you look at the chip right now, you know, in one inch by one inch, it can have hundred billion transtransmitters. that is a lot of transistors but if you look at 2030, that chip will have 1 transitioners. >> because of ai >> because of more integration as we go through the process, we can put more and more transistors, get more performance. so the complexity of the chip will be 30, 40 times more because of ai, because of 5g, because of more cloud computing.

and so for us also there is opportunity to apply ai to improve the design process a lot of the lower level mundane tasks can be done by ai. >> is your business affected by the chips act that was just passed >> the chips act is a good investment that the u.s. is doing. it talks about how essential this technology is and we are seeing investment in all parts of the world whether in asia, europe, u.s and we are on the design side of the value chain, but it is good to see more and more investment by u.s., more foundry and design work being done. so we work with all the leading companies to enable design in u.s. or asia or wherever it is done >> do you work for companies in china? aren't we in sort of a competitive battle with the chinese chip makers where we don't want them to have the advanced semiconductor design that we have >> we work with -- we follow all the u.s. regulations

but in general, we work with wherever chips are designed. and china has a lot of chips being designed, a lot of companies there just like in other parts of india, europe, israel, u.s. so we have a global footprint and we enable innovation in all parts of the world >> ai is obviously huge for investors. and this is something that you said that you have been -- there is a use case for you for years. explain where you are and where the semi conductor industry as whole is on ai >> it will be transformational and i think that we're injjust getting started. we've been working on it for more than five years and the first pod waroduct was like twor ago. the real value is to do better designs. and with more of the automation lower level tasks being automated. so a lot of cases we can get 10%

to 15% better performance through use of ai. and typically you have to go from one process node to another process node and invest billions to get that performance. and with using better ai and better design software, we can get it by working on the stein design so huge value for our customers. and also there is opportunity for us to do more automation.sos and also there is opportunity for us to do more automation and it can be deflationary i think r&d spend will still grow, head count will still grow, but the opportunity to replace it with more and more automations at design complexity increases. >> certainly one to keep an eye on thank you very much for joining me appreciate it. the stock hitting an all-time high, that is cadence design and let's show you what is happening with the overall market 36 minutes left of trading dow lower, s&p up about a tenth

of a percent the financials are down about a third of 1% today. and it is tesla, nvidia and microsoft leading the charge higher let's talk nvidia. bank of america ups its target saying that it could win big, speaking of, in the ai arms race o e alt lk tthanys straight ahead

check out some of the search tickers. plenty of macro focus today following the cpi report ten year yield right on top, 3.7. seeing higher yieldses b across curve. two year reflects the federal reserve's policy and it is higher today 4.6% s&p 500 is in there up a tenth of 1%. as far as single stocks, you

have palantir and tesla both big winners. zoetis also a big winner after they beat on estimates up next, their ceo will break down the numbers

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2022 was a good year for soef zoetis, reporting an earnings beat and also provided pretty positive outlook for the year which is helping the stock today. and joining us now is their ceo kristin peck welcome back, good to see you. >> great to be with you, really good to be joining you today from our u.s. national sales meeting in denver where we are indeed celebrating a really strong 2022 and very excited for 2023 >> you are usually here at the stoxx, so you are in denver with the sales team >> is it still the companion animals that is driving this growth >> the 2022 overall top line growth was 8% and it was led by pets at 14% growth and really by our dermatology

franchise and exciting new prod products on the pet sides as well >> and you did note on the earnings call that that clinic visits are down and that there are still challenges there on the labor front and staffing these clinics. is that sign that maybe this business would slow is >> i think what is important to focus on is that the vet clinic business are still ahead of where they were in 2019. they are still about 2% ahead. it was a difficult 2021 with all the new puppies adopted, puppies have many visits, but we've also seen the labor challenges. it certainly hit the vet space hard but really what we're expecting as you move into 2023 and what we spoke about this morning on the call is that we're expecting that to flatten out in 2023 and we're even starting to see positive signs of potentia growth there if you look, you know, over the last say ten years, on average you see about 1% growth, but

really our business is driven mostly by spend per visit, which is very strong, was up in q4 around 10% so on those trends, they remain very strong. >> and so fewer visits but people still spending more how sensitive is it to the overall economy if we see a pull back in consumer spending, what typically happens to animal health for pets? >> the animal health industry over time has been incredibly durable and resilient. if you go back to 2008 and 2009, we still grew through it on average the industry grows around 5% to 6%. and zoetis on average has been growing around 8%. so significantly above that. and we've been polling customers both the human animal research institute, and 86% of pet owners say that they would spend whatever it takes to take care of their pet and we asked in a survey in q4 if there was a 20% reduction in

household income, would pet owners still be willing to take care of their pets and the resounding answer was yes. >> and so on the livestock front, avian flu, are you affected by this and why do we not have a vaccine it is clearly extremely destructive for our food supply chain. >> yeah, i mean i think that you are seeing big impacts with our customers and certainly the consumers as you look at the price of eggs. it doesn't have a big impact on zoetis just given the size of our poultry business and this is really affecting the long live bird, birds that lay he goes and turkeys as well. and really it is at 14%. they have had to erad indicate about 14% of those birds so it is a struggle for customers and pet owners we are partnered with the usda and regulatory authorities across the world, because this is not just a u.s. problem here. and i think the reason why you are seeing most governments

choose not to have a being have a seen, it would shut down the export market which would have a worse effect overall on pricing. once you vaccinate a bird, it is hard to tell if the bird had it or was vaccinated for it, so most countries will not let that product be brought into their markets. >> so there is the answer on that and you also to business in china and i'm curious what you are seeing since they have reopened feels like it has been a slow and steady reopening you've got a good sense, what do you see? >> as you look back in 2022, we saw about 11% growth and what we're seeing on the ground there is real excitement for the reopening. we're seeing positive signs right now certainly in the pet care space but what we're watching for is will we see the return to tourism and dining out, which will not just have an impact on china but the rest of the world. china still imports as tremendous amount of their protein. and so if china starts really growing quite quickly, we'll see

really strong growth in other markets for us around the world including brazil, the u.s. and europe so so far so good. but i really think that it is too early to tell on the way that that will ultimately play out and we'll remain cautious. but we're optimistic at this point. >> i saw fish was an interesting bright spot for you in the livestock category i didn't realize that salmon get vaccinated is that tha thing? >> yeah, we had about 22% growth and we are the world leader in vaccinating salmon it is a business primarily in only a few geographies around the world. in norway and chile, and yes they are indeed vaccinated >> who knew. i always learn from your earnings reports kristin, thank you very much >> thanks. coming up, the ceo of key corp weighs in on whether he is seeing any changes in consumer loan demand. and also check out shares of boeing leading the dow after air india announces a huge order for

more than 200 aircraft valued at $34 billion.

check out today's stealth mover, avis budget it reported blowout fourth quarter profit and revenue as strong travel trends keep driving demand stock up 10.25%. and look at palantir also popping. up next, find out how the recent buzz around ai is impacting this company. that story plus bullish call on nvidia and the ceo of key corp on the strength of the consumer.

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officials out talking about hire rates then we even expected, inflation numbers cooled a bit, but not really in certain categories like apparel and pharmaceuticals and tobacco. and rents aren't down that much. and the market is hanging in there. >> yeah, you could imagine a 2022 type market that would not have had as much of a calm reaction to today's numbers and fed speak. this is the second cpi data though last month as well, very muted market reaction. now, numbers are coming in pretty close to forecast it is moving more slowly, so there is a slow grind lower in the annual rate of inflation it seems like economists kind of have a fix on what the various sub factors are that are driving things so maybe that is why the market is not too alarmed you would assume there is a certain yield level that would not be comfortable enough for the market, but for now semiconductors breaking higher, you have a lot of the cyclical

groups that bought themselves the benefit of the dow with the breadth of the rally we've had so far so even though we're not making any up side in the last 8 or 10 days, we are holding most of the year to date rally >> and let's talk about the high inflation. still squeezing the consumer cpi rising 6.4% in january compared to a year earlier with shelter and food costs making up a bulk of the increase but consumer is proving resilient. here is what brian moynihan said >> they have money in the accounts and a capacity to borrow they are employed, 3.5 unemployment rate. wage growth is still relatively strong inflation is tough on people who the rate of goods exceeded wage growth and that should come back in line as they choke it down. but overall the consumer is in good shape >> and keycorp also reporting strength

and chris gorman is joining me from the same conference good to see you, welcome >> great to see you again. >> and so how do you read today's inflation number as far as what it means for the federal reserve's policy >> i think that the inflation number was basically sort of as predicted. it is on a path, my personal view, i think that rates will be higher for longer. and i think that probably the move from 8.1 to 4 was -- you know, took a while i think that the move from 4 to 2 will take longer >> on inflation. so you think that the fed will have to be in the game for longer what about the consumer, can it hold up? >> i do. the consumer is holding up well. in our book, the consumer today has 50% more cash in their account than they did

pre-pandemic so the consumer i think has -- they are durable, i think that there is certainly plenty of opportunity for jobs and people that have jobs continue to get raises so i think that the consumer is pretty healthy what we're seeing is the consumer is spending more and spending more particularly around activities like leisure for example. the spend is up about 8% this year for us for our consumers in that area. >> so what do you forecast are you expecting that that will at some point cool down because of all the tightening and that we'll go into recession? >> i do think that we'll go into recession. i don't think that it will be a particularly deep recession. but the reason i believe that rates will stay higher for longer is i think that it will take some time for the consumer to really burn through the excess cash that they have and i just think that it will

be, you know, a long but stable road >> some of the investors around your sector have been worried about deposit outflows which were down last quarter and you said that you don't think that the fed balance sheet which they are trimming gets enough attention with respect to how it impacts your business. explain that >> sure, so the fed's balance sheet today is some number like $8.4 trillion. and they are trimming their balance sheet through quantitative tightening about $95 billion a month. and those dollars will probably flow out of the banking system so it is two impacts one, it drainses fors out of the banking system and, two, it has the impact of increases rates depending on the math maybe 25 to 50 basis points so the shrinking of the fed's balance sheet is a significant back tore both in terms of the absolute level of deposits and also in terms of the rate

impact >> right and headwind i would think so you have been building up loan loss reserves like some of the other banks. what does the credit picture look like right now and through the rest of the year >> so the credit picture looks good the reason we built reserves is as you look, there are three things that drive the reserve bill and first is macro outlook and there is no doubt that from the third quarter to the fourth quarter, there was deter deterioration. and that is what trove us to build a. our reserves. other two factors are loan growth and we are enjoying loan growth and then lastly, idiosyncratic factors which we're not seeing in our loan book >> got it. appreciate you joining us. good to get the color from the bank of america financial services conference. that is chris gorman from keycorp. palantir shares are soaring.

and the company expects to post its first annual profit this year join joining us now, this buzz is generating a lot of customer interest and they have a pretty big advantage. >> technologies that we built that allow you to do ai in private networks have precursor technologies that will take other companies four or five years to build for example how do you to ai in a regulated context. >> let's bring in frank holland. music to investors' ears when it comes to demand for ai products and also profitability those are right on point wit where investors are. >> and i spoke to alex karp and he was proud of the company, reached profitability about three years before they previously guided. and he was also talking about the ai capabilities specifically when it comes to their real world experiences for functions

outside of search and cloud computing. he was highlighting health care manufacturing as regulated industries which you heard reference at the end of that sound bite the company also said it has a number of functions when it comes to supply chain management of course it is known for its work with the government, a lot of that work secret or sometimes classified but it does use state of analytics with the u.s. government currently and secular buzz is a big tail wind that led to this beat and he was also very excited about the possibility of this company growing its commercial user base, that is customers outside the government sector saying more and more companies are not only seeing the utility of their software but interested in ways that it can improve their businesses and we also talked about inflation and rising rates he didn't see it being a big issue for palantir because they have very little debt and cash

in reserve >> so the question is whether they can turn the trend here when it comes to the stock this is a stock that went public, there was such high hopes for it, it got up to $45, $46 and now trading $9.25 even with the big surge today >> it looks like a lot of those stocks that really did kind of catch you up in the jet stream into early 2021, first day of trading for this stock after its direct listing, it closed right here, $9.50. it had gone up to the 40s. a lot of stocks look like this and they now have somewhat more earthbound revenue multiples, price to sale multiples and things like that but i do think that now you have this extra push with the ai excitement, which may or may not be kind of something that gets it valved in a rational way. it might just have a sort of another one of these melt up type moves and we'll see if the fundamentals down the road can sustain it >> still down 30% in the last 12

months and nvidia is also moving today. that company could be a second derivative winner of the ai arms race according to a new note from bank of america saying that data centered sales could quadruple in the next five years. he also raised the price target to $255 from $215. so do you think that this is an underappreciated story for nvidia >> yeah, i think two points to make first is that we are in very early stages of this conversational ai technology and like any new technology, you know, it goes through its hype cycle. but we think over time it can be profoundly disruptive. very much like the early days o exposure is through the picks and shovels companies because you don't know which specific cloud or enterprise application model can best monetize it so you invest in companies that

are very well positioned which is nvidia. second thing, let's assume ai is going through a hype cycle and it never gets big. what is still very important is that we look at the mountains of data that have been created and a lot of this data is voice/video images the way to get incites from this is really to accelerated computing and that is where you need a full stack approach that nvidia brings to the table so we think with or without generative ai, they are extremely well positioned. >> better than their competitors? we were talking to cadence about where this is all going. how far ahead is nvidia than an amd or intel or another firm >> we think cadence and synopsis are suppliers into nvidia, they help nvidia design those chips and we think that they will also

benefit from that trend. but when it comes to within the broader semiconductor industry, it is hard to come close to it and this is not a chip game. is this is not just making a chip and throwing it at the customer you have to turn it into a system, you have to add software, you have to have developers around it and then you have to do all those things at scale and that is something where i think that nvidia is uniquely positioned but as the market grows, it will create more opportunity for the likes of amd, broad com and others but when it comes to the 60%, 70% market share, i think that it is hard to beat nvidia. >> i guess the counter here would be that this is a stock up almost 60% year to date. s if it is barely february and it is an interesting time to raise your target. >> a fair point. if it is barelt

is an interesting time to raise your target. >> a fair point.if it is barely is an interesting time to raise your target. >> a fair point.f it is barely t is an interesting time to raise your target. >> a fair point. it is barely fs an interesting time to raise your target. >> a fair point.it is barely fe an interesting time to raise your target. >> a fair point. next week they report. and there is potential for some slowdown very early in the year. also the timing of their new product. and so there could be some volatility but it has looked past earnings, in march they will have their gpc conference where i think that we'll learn more about the use cases. and so i'd suggest that it is a medium to longer term call but there is a chance for volatility in the stock next week >> thank you for clarifying. makes sense. and two minutes to go in the trading day. mike, what are you seeing in the market internals looks like the nasdaq remains pretty strong. >> nasdaq is the strong spot really very mixed internally, although it has improved over the course of the day. and stock exchange was pretty 50/50 earlier, but now pretty decidedly positive so there has been a bit of

traction built since we did hit the lows of the morning. take a look at the six month treasury by bill yield got above 5% and so that six month period will catch two, perhaps three rate hikes one of the highest if not the heist alo highest along with the one year. and got past the cpi, shows you that that is really all what it was waiting for to give way. pretty close to the lows >> and so news of the day is cpi, january read on inflation, 6.4%, seventh month in a room of cooling but a bit hotter than expected there are some categories which showed a jump in prices from last month but overall taken by the market pretty well. the dow down 160 or so at the close here the s&p is unchanged because you have strength in groups like consumer

discretionary. tesla in there as jumping. information technology is good semi conductors are rallying materials, communication services are the sectors that will close higher. everybody else is lower. real estate and consumer staples at the bottom. nasdaq closing up about 4half a percent. and that is it for me on "closing bell. now to overtime with scott wapner >> thank you very much and welcome to overtime. you just heard the bell and we're just getting started here at the new york stock exchange and airbnb earnings are imminent and we'll see the report just as soon as that happens and we'll of course also discuss what today's cpi report means for the recent rally in stocks and we begin though with breaking news from the white house. we go to kayla tausche in washington where i get one