one of the reasons we look at this is because they have positive price performance and have a big dividend. maybe those are sustainable. if you're looking for the other 15 or so stocks, check out my twitter feed i posted all of them on there. >> those high yields thank you very much. thank you for watching "power lunch. >> "closing bell" with scott wapner starts right now. >> i'm scott wapner. welcome to "closiing bell." this could be the most important earnings report of this late season nvidia, that stock surging and so much riding on these results. stacy will be with me later to walk up to the result. jim chanos will have a cnbc exclusive on the markets and one of the names he's now betting

against. we begin with our "talk of the tape." a tug-of-war between rates and stocks and what the outcome is going to be for your money let's ask dan greenhouse, here with me at postnine. welcome to our new show. it's great to have you it has been a tug-of-war, right? bond yields have taken a backseat to stocks until now, they pulled stocks into the sand box, ishaven't thy >> you have seen a repricing for the fed expectations you've seen a repricing on the fed side of things inflation pricing. the one-year and ten-year tenors have gone up a couple weeks. it complicates the fed's position and investors' fgs position if you think they were almost done, other parts of the market, the thing and they >> are you catching up to where the bond market was leading

things >> i think there's a lot of conversation that the market was ignoring what was going on in the bond market. my point was let's not dismiss there's a lot going on china reopening. the lack of recession in europe are two things i pointed to. those are true today but the speed of the rate adjustment was so much that the equity market couldn't ignore it >> fed minutes today -- the market didn't really react too much you basically had everybody think '25 was right. the douw is down 143 points china reopening and europe should help the u.s. elevated chance of recession in '23. nothing shocking >> there's an important conversation that we're not having here. we're lost in the 25 versus 50 right now. there's a bigger conversation whether everybody -- most people, are misunderstanding the

economic environment and how the fed is supposed to respond to it meaning, you had 500 basis points and the economy is doing better than a lot of us thought. the question becomes, is that equilibrium rate, the rate you choke out activity higher than we thought if it is, then the fed needs to go even higher still we're talking about what people call the terminal fed fund rate at 5 or 5.25 >> let's take bullitt, somebody that was more hawkish. 5.375 is where he talked about taking it. that's not out of the crazy realm of where the market has moved to it implies three more basis point hikes. >> the street is collalescing around 5.50. everybody else is moving to 5.50, if they weren't already there. >> bear with us just one second. we have some news that's

breaking at this very moment it regards third point of course, daniel lobe's hedge fund bath and body works. there's a report they are initiating a proxy fight against both & body works. i'm one of the first to get a chance to look at this they are really taking issue with corporate governance at this company, executive pay, what they call an eye popping sum of nearly $18 million. the former chair of the board was paid to become the interim ceo. this is a miss nash they're referring to the outsized pay package is a red flag for shareholders. we're concerned that miss nash, by virtue of the windfall is no longer quote/unquote, independent. i have ken squire on the

monitor. what is a very loeban letter >> i haven't read the letter yet. it just came out dan invented the poison pen letter in a time when poison pens were needed today, he's changed his tone a little bit to be more amicable and friendly, what is called for today. this is a little bit of a more confrontation. this is a board that put in as an interim ceo, the chairman who had another full-time job and paid her $18 million for seven months and now, she is back to being chairman again i think this board needs refreshment and needs more shareholder directors. like dan loeb likes to do.

help management and support management in implementing the plan and holding them accountable if they fail to. >> they are going all-out, too if they say in the letter, that we're having a look out here they plan to make a books and records request, under delaware law, to assess the human capital and compensation committee's analysis they assured the board relied on to justify what they characterized is an astonishing payout part of the point here, too, is that the environment that we're in feels ripe for activism it's not a surprise i suppose that you have different ones and a sales force. and you have a peltz and a disney we could go on and on. it seems like a rebirth of the activity, to say the least >> the activism is incredible. we haven't seen activism like this for 10 or 15 years. there's five brand name activists in there but these are not a group.

these are five activists that independently made a decision to do a big activist campaign and they happen to be at the same company this could have been as easily five activists campaigns at fiv companies. we would have had eight huge ones by now. activism -- there's nmore activism than we've seen in years. >> i appreciate you coming to the phone so quickly third points, a proxy fight against bath & body works, they take aim at the pay package for sara nash, interim ceo we'll see where that leads us. >> scott, just one thing she's back to the chairman now, gina boswell is the ceo >> i appreciate that, ken. we will follow this story. dan greenhouse, you want talk

about a pkup of activism, some of the big declines, have certainly led to more activity, it feels like. >> i think it's fair to say that the type of environment lends it to an activist campaign. wi si since i was traveling over here, i didn't read the letter we deal with the plans all the time i'm an ally of anybody that finds excessive executive compensation in the right circumstances, egregious and worth fighting for that's an idea with which i would agree. >> of all of the stuff happening in the market today, i told you we were going to walk up to nvidia's results in overtime it feels like a critical moment for that report to hit on that note, let's expand our conversation and bring in bren you own nvidia

and we're 50 minutes or so away from the release of that report. >> right we look at this and my conductor in general, that it has been in a recession. it will continue to be in recession for the shorter term here you look at nvidia, the stock has had a tremendous move this year i think it's going to take a lot to get it moving higher from here in the shorter term we are expecting this quarter to see improvement on the industry problem they're having in the gaming sector. their core business is doing well but i don't think we're going to hear a lot of positive news. it is for a ho-hum quarter, down last quarter and down year over year i don't think there's a lot to expect here. i think the stock has moved significantly with excitement

over what is to come in the future, with the a.i. business and the cpu side i don't think we'll hear about that today >> i think josh brown made an interesting point earlier on "halftime," that as much as he loves nvidia, most of the sh shareholders like this but given the move we have seen, if he didn't own it, he wouldn't buy it here ahead of the number. can you sympathize with that perspective, as well >> absolutely. just as we think this year, we're in for some choppiness here obviously, we had a nice start to the year. i don't think we can expect that is going to continue over the remaining eight months or so that we have left. you know, i don't think we're out of the woods yet there will be more volatility. the opportunity to buy high-quality name like nvidia, you'll get a chance or

something. >> i don't feel like we can overstate the importance of this report at this moment. given the market capsize, it will be an important moment in time when nvidiareports the results. look at what the stock has done, 50% year-to-date the nasdaq had a good move and a surprising one, as many, to kick off the year these results will have to be good maybe they have to be better than good, to justify the move, and you wonder what happens on the other side for a nasdaq that feels a little stihaky given the move in rates. >> it is not one of those "a" companies. it is 1a, right underneath it. it's closely watched of course,as brenda touched on the gaming center, the data, it e it's everywhere. they are harbor architecture this is not what i do. i don't want to expand too much.

their harper architecture is a key underpinning of the chat gdp. to brenda's point. i don't want to misinterpret what she said. they should spend a good amount of time they will be contributing to this obviously, chat gpt and a.i. and language models are all the rage right now. why not spend a good chunk of your time. >> we are counting the number of times ceos say efficiencies and things like that let's count today -- wherever the call is, today or tomorrow the number of times they say a.i., on nvidia. that's dan greenhouse. bren, thank you so much, as well let's get to our twitter question of the day. will nvidia be higher or lower tomorrow, after the results tonight? you can head to @cnbc closing bell on twitter.

legendary short seller jim chanos is forecasting the markets. we'll talk about one of his latest shorts, along with a few others we're live from the new york stock exchange, "closing bell" right back with two max-strength pain relievers. ♪ so you can rise from pain like a pro. icy hot pro. the hiring process used to be the death of me. but with upwork... with upwork the hiring process is fast and flexible. behold... all that talent! ♪ this is how we work now ♪

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it's good to have you in the earliest days. it's been an interesting start to the year, to say the least. i'm wondering how somebody who sits in the seat you do, looking at the stocks you do, how you would view to get here to start the year and the things that have led us. >> there were three givens that the market pricing was discounting. it's looking for 12% earns growth this year it was looking for 2% to 3% of the year and it was looking for tedfed ee in the second half of the year two of the three are gone. the inflation outlook and the fed. investors are sanguine on earnings

bottoms-up operating earnings have been coming down about a dollar a week since the beginning of january the beginning of the year, people were looking for about $227 in the s&p. and today, they are looking for $220 now, the good news is, they brought down the fourth quarter numbers, too to $196. we're looking at 12% growth. we're just getting there kind of the wrong way by shrinking the numerator and the denominator. you don't have a view of the market per se. things are not cheap you said that for a while. we continue to see rallies being led by lower quality stocks. that was certainly the case in january. similar to october similar to august. similar to last march

we get the relief rallies. people cover shorts, chase momentum and then things sort of sort themselves out. >> are you aggressively positioning for the down side in the things you are betting against? >> we are about the same as we were coming into the year. our shorts have a higher beta than the markets we're adjusted for that. we're about 80% of where we come into the new year. it gives us plenty of chills and spills in the portfolio, for sure >> let's talk about a name that i believe in your portfolio on that side. that's coinbase. are you short? >> we are still short. >> we had the earnings yesterday. and i'm curious your read, obviously. for the stock that was down so significantly last year, but up so dramatically into the report,

how do you view it >> coinbase is a wonderful example of what i was talking about. it had a number of similar rallies last year. and throughout late 2021 and into 2022 and 2023 the 50% to 100% rallies are not new to coinbase. it's a narrative stock, not a fundamental stock. by that, people buy it because they have a view on crypto prices or crypto survival or what have you. and the fact of the matter is, as we saw last night, coinbase is still losing money. i quipped last night, if not now when we had a 40% crypto rally in 2023 you would think retail investors would be leading the charge. but i think you pointed out before the results that it was apparent that retail was not

leading the charge into crypto and coinbase's results they indicated trading revenue of $120 million in january, which be $360 million for the quarter is not above the trading revenue they did in the fourth quarter what's intriguing to us is where they're making more money. they're losing money, of course. but they are making it in two areas. one, they actually raise commission rates from retail, effectively in the fourth quarter. round trips for the fourth quarter are costing retail investors 3% from 7.2% in the previous quarter they somehow raised commission rates on the customers, which i think is going to go against the grain of things like your friend josh brown discussed, which as fidelity and vanguard get into this business. and number two, they are not

paying interest on customer deposits that's a huge source of interest income in the quarter. i don't think that is the sustainable model as we go from 5% interest rates to 0% interest rates. not paying interest on customer deposits will be competed away, in our opinion >> i feel like a key thesis or you know the key part of your original short was based on fee compression, the likes of which you are talking about now, which they suggest are not being seen to this point. i'm wondering if you now think you may be right directionally about the stobck but in a sense for the wrong reasons. the right reasons being that retail is exit stage left, from crypto right now there's obviously a lot more regulatory scrutiny from the s.e.c. on this company but this key part hasn't

happened yet >> no. and we think that's still in front of it. the need to pay interest to customers -- and customer deposits burned off in a dramatic way in the fourth quarter. it's not as if the customers aren't noticing this and second of all, i don't think you can keep retail commissions at 20% round-trip. you do four trades and that's 12% gone from your capital in pnl. and compared to retail stock commissions, only one way those are long term going. >> you alluded the last time we were on with our friends at 5:00, about general electric but you didn't explicitly say that you were short. are you short g.e. >> we are short g.e. g.e. is an interesting story

it's one way in a investors rushed in the last three, four months is industrials. and g.e. is up 75% in the last four months since the end of the third quarter. it's up because they have begun their long awaited breakup plan. and they did a spin-off on health care. what's fascinating is since they announced a splitup plan, earnings estimates continue to get cut. when they announced the fourth quarter and i joked there were pages and pages of adjustments in the earnings release, you will be surprised how many pro

forma adjustments that g.e. makes to earns it was cut from $1.60 to $2. with the stock in the mid '80s, we trading on a p/e basis. they will spin off aerospace or -- they will sell renewables and power generation and keep aerospace. whatever the problem is, that the sell said hasn't done their homework properly in all of the models we've seen on some of the parts, which value the stock on average, about $89 on a breakup, mind you, the stock is trading about $5 below that, they're using net liabilities of anywhere from $0 to $14 billion for g.e now that we have health care spun off in january, we can do the numbers and see what the long-term liabilities are.

if you give them 100% of the dollar and the remaining stake in g.e. health care, and you subtract the liabilities and the preferred stock, the net liabilities are $39 billion. our numbers are anywhere from $25 billion to $39 billion worse. you get a breakup value below the current stock price. >> just to be clear, those are your numbers and we have to see what sort of bears out there the ticker is going to be aerospace. that's a great part of their business they just announced -- boeing announced a huge order with air india. g.e. is going to supply the engine this is not taking place in terms of the full split for some

time into the future but how will you view that once it does split? will you be around to see those days that could prove to be different than where g.e. stands today >> g.e. right now, scott, is trading at over 20-time20-times this is a risk/reward trade. the market is giving them full credit for the value of all these parts. not giving them full credit for the liabilities that remain. that's why it's an interesting risk/reward. if everything goes right and the bulls get the numbers they think they're going to get, on average, they think the stock is worth $89. the risk/reward is many points on the downside.

g.e. just came from $48. it was there in september. it underscores how much some of the industrials have gone up and what is being built into the valuations of these. it's pretty full, to say the least. >> are you still short -- i guess it's a solar place, sun run, which reports earns of -- i don't need to tell you, you probably know in overtime tonight, what we used to call "after the bell. >> yeah. i sproek at oke at delivering te i joked this is a dark science project of a company alose buckets of money they have 7.4 b$7.4 billion in . they use this net value calculation to get you to focus on the value of the panels they install on roofs

we joke this is a roofing company with a subprime subsidiary and they want you to buy back the cash flows at 5% the debt frtrades at 12%. and no one in the right mind thinks the average weighted cost of capital is at 5%. treasury is at 5%. they go through the ridiculous exercise we can't believe the auditors and regulators and everything is getting away with this form of coll calculation. they are losing millions per quarter. it's bizarre it gets to what i've been talking about which is the misuse of proforma metrics and there's one darker element they need to address, which people like gordon johnson and

others have been talking about it appears that sunrun is using two different valuations for tax credit purposes, whether you buy or lease the systems or you buy them for cash or you finance them that's inconsistent with irs regulars, as to what people claim for their itcs i think they get questions on the call tonight >> interesting to catch up with you, especially given where we started this year. jim chanos, be well. >> take care >> that's jim chanos up next, sallie is getting more involved in the markets e that you want to keep in the family... ...or passing down the family business... ...or giving back to the places that inspire you. no matter your purpose, at pnc private bank,

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wealth tech company catered to women, how they invest and who

does the investing sallie krawcheck joins me here at post nine what have you learned during that time, about the way women not only invest but the specialized services they want >> one of the things we've learned is it's not their fault. when i was on wall street for all those years, women don't invest as much as men do it's because they're risk averse maybe they don't like investing. and this was ellevest was the first. one that takes the algorithm that takes into account. our salaries peak sooner and we live longer. one that recognizes that women understand every dollar they invest has impact. they wbt to know what the impact is and drive that in a positive way. >> i was surprised to read given

how tough the market was last year, you had record aum you have inflows every week of the year, when a lot of people were looking at outflows why? >> when the industry was looking at significant outflows. >> why did that happen >> the research has shown, but it's been hard to find it. women have been a minority of investors. but the research has always shown that women are better investors than men women outperform men because when they build a plan, they stick to it. two-thirds of women have clients with recuring deposits and they kept putting the deposits in rather than check the accounts and saying this is depressing we found that women commit to it, invest, continue to invest, and have earned returns. >> 100% of advisers are women. women speaking to women. that matters >> we love men, by the way

but whereas is industry is 85% men, we have 85% women, where half people of color what we're working to do at elve ellevest, is to represent women. we have them and we understand what drives them >> what kind of priority is something like esg for you at a time when it feels like esg is under attack >> not at ellevest, it's not more than half of our clients are investing for impact we hid it on the website you had to go through and look for it they understand a couple of things intuitively we all are gender investors. at ellevest, we look to change that equation. and your money is evoked every dollar you use is a vote just knowing what the vote is

being really intentional about it, without giving up financial returns. that's one thing about women, they're not either or, and i want a financial return and i want an impact return. >> you've done it all on wall street are we done talking about a glass ceiling here >> no. >> look where we're sitting. the current president of the new york stock exchange, a woman past one, a stowoman. first female to run a major institution. we've made great strides you know how much the women ceos raise? 1 out of every 10,000. name a bunch of other women who have started businesses and grow them to series "b. women have been under attack reproductive rights have been under attack, which is a financial, economic issue. we can look at a few things and say things are better. but for women overall, it's tough.

the ellevest women financial health index shows that women are at a five-year low in terms of financial health, because of the attack on reproductive rights, which is a financial issue, because of inflation, because the gender pay gap is not closing. >> i appreciate you coming to the set and having this conversation thank you very much. >> that's sallie krawcheck ellevest, she is the founder and ceo. upex nt, we are tracking the biggest movers "closing bell" is right back

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let's send it to seema mody

for a couple of stocks to watch today. >> we have charles laboratories lower after a downbeat forecast. a justice department into illegal smuggling of primates that charles river counts on for lab testing. crispr thatherapeutics are surgg after a narrower than expected loss the gene editing therapies in development, one of which treats sickle cell disease. scott, back to you last chance to weigh in on our twitter question will nvidia be higher or lower tonight. you can head to cnbc closing bell on twitter and we'll reveal the results teth bakafr isre

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it is time for the results of our twitter question. will nvidia be higher or lower after returns of earnings tonight. you said lower that's interesting the stocks have been on a huge run. ahead, our next guest raising the red flag on what he says is the real biggest risk to the rket that and more when we take you inside "the market zone. for businesses of all sizes, there are a lot of choices when it comes to your internet and technology needs. when you choose comcast business internet, you choose the largest, fastest reliable network.

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let's do it. we're now in "the closing bell" market zone. we're breaking down the crucial moments. and eugene profit on what he says lies ahead for stocks and stacy rascon on nvidia, about to report in a bit rates moved off of their lows and stocks moved lower, after we tried to digest the minutes. >> just sagging a little bit this is the pullback, where the s&p is right now it's 5% from the highs of the second routine in that respect. there wasn't anything that people had to hit the cell button okay, we're still in this process. we're still in this, how fast do they have to go? how much longer? we're not liberated from that.

i would give that to the slight loss of profit >> eugene, you bring us consumer sentiment, not the fed, is biggest risk to equities right now. why so >> not just the ability. but the ability to spend it's because, as interest rates increase, the price is passed on to consumers all of the earnings is that is being outside of the travel industry and experiences as consumer weakens, the margins are come pressing. if you look at in home depot's earnings, you had the company did well, relatively, however because they were not able to have higher lumber prices as in the past, their earnings actually came down revenue was fine

they go hand in hand the fed can bring soft landing it's whether the consumer is able to keep spending where it is, to keep the economy humming along. the consumer has been unbelievably strong. spreading on the credit cards more and delinquencies are picking up, too. it's a big if when and where the consumer might roll over >> it has been surprising. i think that because you're only hearing it in travel and experiences, that's the last leg to fall over and you are right. credit card balances have been expanding dramatically, right? the fact that the saving rates were so high, that have come down, has allowed the fed more latitude, with respect of the rates and increases.

the fed said, risks that the economy took a downside. that's what they were referring to we have tapped out the consumer. we were able to keep it 25 basis points i think that risk is as prevalent as the fed increase. >> we'll keep our eyes on that eugene, thank you very much. big profit by intel, cutting a wide amount. we're going to do that first and then, nvidia you described at one point, that would have been in your words, unthinkable, now, inedible why? >> they are out of money out of cash flow we've seen some downgrades

it's important for them to keep the credit rating at an "a" level or above this has been expected it becomes obvious that something had to be done they did it today. >> i had a shareholder on the halftime report with me, who said, 2 dollar of current earnings gets to $5. that's why she is staying with it you seem to be laughing as i ask you this >> my numbers are 25 for some context, i'm at 60 cents this year. i'm at $1.6 next year. godspeed >> right let's turn our attention to nvidia it feels like an important report, given what that stock has done and given what the nasdaq has done what do you expect >> it's been a monster over 40%

>> it's all about the data center the guide and any xcommentary they give us we've seen some cracks in that now, more recently seeing the hyperspending lag off. we have the numbers from intrel not great, either. they are down double digits in q1 at the same time, i think that spending on a.i. is probably holding up better. it may be weak on data but i suspect it should hold up better than what we saw from some of their peers. >> i knew but were going to say a.i. and i was going to ask you, what is the over/under in your mind for the amount of times they say a.i. on their earns call that's where the hype is you know that. >> they say a.i. a lot on their

calls, right that's an area of the business where they are well-positioned they say that a lot. >> they do does the run from the beginning of the year, more than 40%, does it make sense to you >> yeah. at least they've come along. they have two product cycles with significant amount of pricing they are able to take. on that context -- i'll be honest, i would rather it wasn't up 20% in the last couple of months a lot of them will get new trends, like chat gdp and language models, i doubt that any of that really drives the numbers in the near term over the longer term, you can imagine some very big opportunities from these and it's something that the company is enabling.

as long as that view is there, the stock can be open-ended. >> all right we'll see what happens thanks for being here in our market zone. >> who knows what the response is going to be but 60 times forward earnings, you got superpremium this is only supposed to be like 8% you need a few things in there that enable the investors that flocks to nvidia and tesla, for the change the world stories they have to see the drivers and the top line it's got its weight in there you see a lot of stocks break

down and have a renaissance. meta or alphabet they are over here because they're safe nvidia, it's where a lot of the adrenaline is going to come from or has to come from. it will matter on that score the semiconductors have acted better >> they have. broken about the late '22 high. i think we're still kind of trapped. we're trapped between different macro scenarios for the moment >> we just had our two-minute warning version in "the market zone" as we creep towards the close. i'm watching a couple of round numbers today, too 4000 on the s&p. we got work to do or we're going to close below it. and 33 k >> feels like we're playing

those numbers on the dow for a really long time >> 4,000, a little less than where we are right now 3950 3940 3900 that's required to maintain that look of a market that's in recovery mode from the october lows you are around in the same trading range. people perceive we have a valuation problem. we do. that keeps people from running it, beyond what we've seen after the beta chase of january. we'll see, what we said, yields gave us a break today. but we still are in that mode of feeling like, if the fed -- people on the fed believe we have to run faster and farther, it will keep us in check >> your first word in "the market zone" was about interest rates. they're getting ready to ring the closing bell

>> also, here is your 5% pullback, that you should have expected after we got a 20% run off the lot. >> 393 it's come up a little bit. those minutes came out looking at fed speak and all that that's going to do it for us everybody, have a great evening. don't look away. nvidia is coming up in overtime. a mixed day for the averages welcome to "closing bell overtime" i'm morgan brennan, with john forbes >> we have an hour of earnings come jing your way etsy has moved 9% of earnings every quarter for the past two years. plus, we're going to break down the fed minutes and what they mean for your money with new president joe amato,