they can actually get college credit for that certification training toward another health care degree. >> could be a game changer great story, bertha. thank you for bringing it to us. >> thank you for watching "power lunch. the dow is up 300 points right now. >> see if they can keep it "closing bell" starts right now. all right. kelly, thanks so much. welcome to "closing bell." i'm scott wapner from post 9 at the new york stock exchange. the make or break hour begins with stocks and bonds at critical levels. here's a look at the scorecard with 60 minutes to go in regulation we have a little bit of a ramp here as we approach the final hour dow is good for just about 300 points s&p has been around the 200 day moving average recently ramping above that too. 3940 is the number to watch. we're 3970 the 10-year note yield closely watched. above 4% all day long. we'll watch those as we head

into the end check out the shares of amd. the scoop that daniel loaeb's third point has taken a passive move it all leads us to the talk of the tape is the moment of truth for the markets moving jpmorgan says it could be. a level for stocks he argues is so important that if it brakes could lead to accelerated declines jason hunter joins us on the phone. head of technical strategy at jpm. i mentioned off the top here, the 200-day moving average that everybody is fixated on. you are watching a different level on the s&p can you tell our viewers what it is and why >> thanks for having me. it's a clutser of levels including the 200 day. at the same area you have the 50 day, 100 day moving average. more importantly, if you look at 3900, in that area roughly, and go back to may of last year, as the s&p's traded in the very broad range, it's traded around

that either as support today you can see the market trying to bounce from the key area we think the pressure increases on the down side even if we bounce over to the near term we're expecting an eventual brake to the down side and acceleration to lower price levels. >> how would you describe where you think momentum is in the market right now what started the year out with some new found momentum has obviously come to a bit of a stop recently as rates have continued to move higher how would you assess that? >> so i would say if you look at the lower frequency momentum signals, which as a technician if you look at the charts in isolation, things like the golden cross, the 50 day average moving above, the 200 day average statistically have decent forecast value for a 3 to 12-month period and that's to the up side where it does better than random trade entry. we have a macro because the significant nalgs don't operate in a vacuum. one of the things we highlighted if you go back and look at the

early 1990s, we think about things like the yield curve having been inverted for a year. you know, backward looking s&p operating level declining for a year the market now projecting fed policy rates to more than 2x theoretical neutral. the odds that you get a signal failure, we think those are pretty high here so we're not -- we didn't follow that momentum signal we were saying sell 4100, 4200 and look for the eventual break for the down side. >> you also argue that the s&p looks over valued by something you point to, the money market curve. i mean, i want you to explain that to me are you just simply talking about there are other alternatives outside of equities where you can get a better return than in the equity market, one of those being in pure cash in the interest rates that you get paid for now? >> well, na theme alliance with what we're saying. what we're looking at is the

shape of the money market curve which is to say how high is the expected to raise rates and how many eases are priced in on the back of that for that we're looking at the forward ois market to see what it is expecting the fed policy rate structure to be we've used that for the better part of the last year which has done a very good job explaining the s&p as it's been mostly multiple "d" rating in line with expectation. if you look at the s&p over the past month, because we've had hot data both on the demand side and the inflation side, you've seen the money market curve hawkishly repriced and the s&p's not sold off nearly as much as you would have thought even with the selloff we've had we've gone from two standard deviations overbought on fair value give or take is 3800 on that model by the way how the fed is priced right now. >> yeah. interesting. jason, i appreciate so very much your time. jason hunt be ter, he is, as we say, the head of technical

strategy at jpmorgan now let's welcome in to have more discussion where this is heading. stephanie link and dan greenhouse of solas asset management stef, i said coming in today, critical levels. 200 day moving average got a little bit of a move higher as we begin the final stretch. the 10-year above 4% you have the overlay of the technicians and what they're watching and the critical levels to suggest whether we really are going to have more down side or not. >> today we have a little dan loeb effect and for him to get aggressive on a name that he sees there's a lot of opportunity especially in the second half, especially in nvidia and semis that's a vote of confidence that there are places in the market that you can invest in it's not overall the broader market that you want to be invested in this year. you want to be a stock picker. you mention that the market is expensive, 1 times forward so many stocks, scott, that are

not that expensive in the meantime the broader averages were in a trading range. we talked about this endlessly i thought it was interesting that after the unit labor cost number came out and inflation continues to be persistent, everyone is talking about more rate hikes this year all of a sudden more rate cuts next year. they're nowhere close to cutting. that's not even in the vicinity of their thinking at this point. >> for sure. >> we are all data dependent and the inflation numbers no matter what you're looking at, cpi, ppi, services x housing still too high and too hot that's why you're going to continue to have the fed very hawkish. i think it's very premature to start thinking about and start betting on a fed reversing next year. >> bostic today still in the 25 basis point ciampi says. you're going to get, dan greenhouse, a cpi and fed meeting coming into play how do you see it now?

>> i mean, listen, it's as difficult today as it was a week ago or a month ago steph makes a good point about the market pricing and rate cuts i don't know why anyone is thinking about rate cuts when we're not sure what the ultimate path for the rate hiking cycle is going to be at this point you're certain to see a rate hike later this year. you're certain to see a rate hike after that. the at this point you're thinking of july as well which will take it up to 575. >> that's a little bit further down the road than the market is willing to accept at the current time we figure, okay, you get 25 basis points in march. you get another may. you get another june and then maybe you're done. you're even thinking about going higher than the market thinks right now? >> well, listen, if there's one thing we can say for sure, just about everybody's been wrong about this entire conversation for the better part of a year or a year and a half. it's all fluff in retrospect it has no weight at all because the reality on the ground proved

everybody incorrect. i think at this point with the stickiness of the broader levels of inflation that steph eluded to, the confidence interval that we should have around where we think this is going to settle out i think should be wider than normal and even wider than it was a month ago. it's proving to be very, very difficult. >> steph, i want you to tell me what i should do with the fact that earnings estimates continue to come down margins are coming down. the bread and butter as you look at stocks? >> yes yes. >> you always talk about margins. if they're declining and interest rates are moving up and at the very minimum staying a little sticky where they are, how do you make a positive case for stocks in that environment. >> i think there are certain sectors and stocks that margins are holding up well because they have pricing power we talk about this all the time. we're going to talk about a stock in the next block. i'm teasing. i know how to do this i think at this point no, my point is being in industrials, in materials, even in energy there's so much

pricing power. even within energy, the services businesses, they are absolutely minting money. numbers are going much, much higher in that sector. that's an out of favor sector at this point i can pick a bunch of stocks that i like very much. i'm over weight industrials. that material that i mentioned, they have pricing. look at cleveland cliffs, the fourth pricing increase today. another one. >> he owns it and he mentioned it on "halftime" as well >> on retail, i feel better about retail if you look at the inventory numbers. they've been coming down year over year and sequentially across the group that actually does bode well for margins in the second half. >> okay. you couch it within the second half of the year. >> yes yes. >> right now margins are getting hit in retail because there's so much discounting because of too much inventory. >> but inventories have been coming down since the first quarter of last year substantially, right that's what's key going forward, and i think that if it's going

to happen in the second half of the year, i want to own them now, right ahead of that. >> all right greene >> you've heard of interest rates. what's particularly interesting and maybe it's gotten talked about and i haven't seen it. the last time the 10-year hit 4% was call it early november. >> november. >> give or take. the s&p 500 was lower then, was cheaper then, credit spreads were wider then and optimism was higher then. i find it so interesting as we return to 4% on the 10-year which isn't an important level -- >> psychologically it is, for sure. >> round numbers matter. i find it interesting the degree we, we, the markets, continue to ignore the reality of higher interest costs i think the higher for longer component becomes important with respect to margins and the debt markets. it's one thing if you raise rates to 5, 6% and they come back down. you leave rates up there for a year, you're chumming a lot of

water for refinancing risk, inventory levels it becomes incredibly problematic relative to a lower interest rate environment for stocks and i think the margin story is just -- i just -- companies have never not defended margin, and when you start losing pricing power on the top line, for a given company you're talking 50 to 70% of your costs are labor and there's just -- i struggle to figure out another outcome other than eventually -- certainly cessation of hiring if not outright layoffs. >> talk about pricing power, what consumers are not so much -- what they're willing to pay but what they have to pay. if you go to a place like kroger, rodney mcmullin, ceo on the network earlier today, what customers are telling us they're already behaving like they're in a recession. when you hear that, what do you think about? >> there are pockets certainly people are going to the grocery stores. >> of course they're going they have to eat you can trade down. >> right they're buying more goods

walmart told us that, kroger told us that as you just mentioned. at the same time the services part of the economy is humming >> answer my question. which aisle do you believe in more or will more influence the way you want to play this market, the aisle of the airplane or the aisle of the grocery store? >> i want to own the airplane for now, but it's not going to be forever 2 there's a lot of pent-up demand, not only here but overseas they haven't begun to see the strength at their retailers in their consumers and all of that. the so i think that for now we'll see when i change my mind. >> okay. >> but i do still want to be involved in that segment within consumer. >> part of my point i think here, too, is you need the consumer to hold up, dan, or the whole story becomes real specious. >> yes. >> everything right now is, well, the consumer has held up

better than people think the consumer is the one that's going to lead this to a soft or no landing if that scenario unfolds. corporates aren't going to take you there, it's the consumer holding up that's going to bring you to the promised land. >> you don't need a ph.d. in economics. watch the weekly jobless claims number i can't emphasize this point enough it keeps coming in sub 200,000 pre-gfc if it was under 300,000 it was astronomically high sub 200,000, it's incredibly, incredibly strong. there's no doubt it will turn at some point until it does, trade down aside, you have to continue to bet on the consumer and the credit card data bears that out. >> i want to bring that up since i'm looking at it and we have seen the market pick up steam as we began this last hour, dow's good for better than 300

nasdaq is up a half of a percent. amd, which we mentioned at the top of the program, if we can show you again, that's near a 3% gain third point taking a new passive. it's important to note passive position in that stock but nonetheless, steph, as you pointed out, you look at growth names that may have been over valued at one point but corrected to the point where they over corrected at least in the minds of some smart investors. >> absolutely. i mean, this stock used to trade 50 times forward estimates at one time it traded at 87 times. i remember because i was looking at it. i missed it. i thought, well, can i justify it, the valuation? i never could. so now -- here's the thing, the e is so depressed at this company right at this very point so it does look like at 26 times it's not a bargain, however, if you think data center is going to turn in the second half of the year, and nvidia gave us that data point, we might hear

from broadcom, second half picks up they already got it on pcs down 10% for the remainder of the year expectations are low oh, by the way, gaming is pro probably troughing that's why it's a compelling story even at 26 times. >> broadcom, i'm glad you mentioned it we're going to walk you up to the earnings in overtime you'll be back to do that. leave us, mr. greenhouse, with a thought before we move on about the kinds of things you're going to be watching as we head into, you know, the end of another week as we've just begun the month of march. >> yeah, listen. you touched on it before and everyone's had it ad nauseam the resilience in the u.s. consumer, resilience in corporate earnings you just have to be impressed. to tie this altogether, the stock market's up however much percent off the october 12th low. who's outperformed tech i find it so interesting if you had told me we were going

back from the low 3s to 4% on the 10-year, infinitely more on the 2-year, i would have said no way. >> we're watching utilities, one of the worst sectors to start the year the bond proxy is taking a pretty good hit as rates have risen as well. dan greenhouse, thank you very much steph, you'll come back. our twitter question of the day, are you worried about stocks retesting october lows vote yes or no we've got the results coming up in a little bit later on. we're just getting started here on "closing bell. up next, betting big on china. stephanie link making a fresh trade. she teased it a few moments ago. the name she is buying more of why she is seeing serious upside overseas later, your rising rates tech book. breaking down how to best trade the move higher in bond yields we are live from the u.s. stock exchange the you are watching "closing

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back on closing bell 40 minutes to go we have a nice little rally as this last hour begins. dow's good for 300 s&p 500 has bounced well above now its 200 day moving average making positive comments from atlanta fed chief bostic leading to that. there's the russell 2000 trying to stay in the green let's get a check on top stocks

to watch as we head into the cross. ch kri kristina. >> they are reducing head count by roughly 15% this year that's why the stock is down 2%. it's reacting to the cfo's comments, mark murphy. he said the customer inventory levels remain elevated there's still a significant supply demand imbalance in the irch dus stri. fuel cell names. it's weighing on the entire sector solar stocks also in the red sunrun, bring that up, 3% lower. scott? >> kristina, thank you that's kristina partsinevelos. caterpillar gaining nearly 40% over that time the lady to my left knows that better than most because she owns it.

and she sees more up side ahead, which is why she bought more today? >> i did, yes. it's now a very large position probably my largest industrial, if not the one or two. >> is that right >> china play? >> it is they're executing on all cylinders. last quarter they grew earnings adjusted up 43% year over year operating income up 78% year over year. margins came in 138 basis points better than expected pricing power, they've got it in spades double digits. and i think there's more to being. >> infrastructure? infrastructure play? >> infrastructure for sure they're streamlining their businesses they're doing a better job in exec execution. yes, to your point on china, the pmi number was extraordinary yesterday that we got from china. the highest since 2012 there is a recovery happening in china. i know this one kind of gets

caught up in the china talk. it should. it's about 10% of their total revenues, but asia pac in general is 20% it's material for them and i think it could go much higher. i think this is a hidden energy play, you know i am positive on energy 15.8le times earnings. not extreme. 2% dividend yield. free cash flow is building i like this story a lot. and i like china a lot. >> showing you the names you own. >> yeah. >> nike up today estee? >> estee. >> starbucks you own all of those because of the china angle in part? >> for sure. estee lauder, 30% of the exposure is china and travel that's all of a sudden getting better number one, nike, that's china 10% of their total revenues. dtc. the that's higher margin that grew 35% last quarter alone. i think the inventory is the big story and i'm very encouraged, as we talked about last segment,

that inventories are getting better not perfect by any means still a lot to go through but they are improving and that should help the margins. >> what about apple? i mentioned that, obviously 20% revenues come from china, don't they >>ing big deal. >> that stock today as we note what's happened in the market as we come on the air for "closing bell," you know, we'll call it the highs of the day, and apple is kind of too a stock that was negative earlier has -- looks pretty decent now. >> it is it's definitely a china recovery story as well but it trades at 25 times earnings and you get upper single digit earnings and revenue growth so i just don't find that attractive i told you caterpillar grew adjusted earnings of 43% it's a cyclical company. it's not going to grow 43% forever. it's still not compelling enough i own a couple of semiconductor companies that have exposure to apple. >> give me a quick read on -- i know one of those too.

the megacaps in general. questionable >> yeah. >> what -- >> i know meta's your big play there. >> megacap tech. i feel like there's issues alphabet we've talked about. i think microsoft is a real threat, right, with bing, search, as they increase market share and what that's going to do to -- potentially do to a alp alphabet's operating income. 9 to 10% in operating income hit to alphabet. i don't think at 18 times it's really pricing that in there i'm lukewarm on the mega. >> i know we're supposed to see you in the market zone stay here. i have another story you're going to be interested in. alex sherman espn holding conversations to become the hub of all live sports streaming alex sherman breaking that story. joining us with the details. what do we have? >> reporter: hey, scott. reporting that espn has held conversations with both the leagues and other media

companies. so these are actually rival media companies. for espn to be kind of your first stop shop for all live sports viewing in other words, what they are gauging interest at this point for media partners and the leagues is for users to be able to go on espn's free app or espn.com and for there to be a feature on the app or the site that would basically port a user to wherever a game is streaming. this includes both regional sportsnet works, and i have reported we have talked on this network about the crumbling of the regional sports network model, several of those companies in major financial trouble right now. this would allow a user to potentially directly sign up for a local sports network from the espn website or potentially the other solution would be at a national level we're talking about apple tv+, amazon you could go directly to that

streaming service from the espn site so it would be sort of a strategic reconception of what espn is today. >> interesting alex, i appreciate that very much i'm glad that we have stephanie link sticking around because you own disney. >> i do. >> they're thinking a lot about the future of espn that's big on iger's plate moving forward. >> everybody thought that they were going to sell this or spin this out they can't it's a free cash flow machine. i like the fact that they're trying to monetize it better. >> he didn't completely shut the door on that. >> i don't think he will that's the cash cow and that is something that he needs very desperately at this point. i love that they're trying to find ways and be creative. this is what we talked about he comes back in and focus on content in any way he can in any division he can. in the meantime he's cutting costs. >> i'll see you in a bit. >> for real this time. that's stephanie link. are activists driving positive change or getting in the way? we'll debate that coming up. plus, getting a quick check

of where things stand. 30 minutes to go highs of the day for stocks, 32,997 for the dow we're going to watch that number closely. 39 3978. "closing bell" back in two t from the morgan stanley client experience. you get listening more than talking, and a personalized plan built on insights and innovative technology. you get grit, vision, and the creativity to guide you through a changing world. ♪

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30 to go let's look at the markets. there is the dow, 33k. taking that back good for 341. interesting session to say the least. mike santoli, senior markets commentator is here with me now. bostic says 25 loeb does bottom fishing in amd. >> any excuse. the market is playing small ball look, we're in this range. it's been this slow grind lower. i think it kind of was wearing on people's tactical move. feeling like if this level doesn't move, we've got trouble. we didn't break down below the

200 day average. kind of tempted you to sell it below that for a little while. yes, boss stick saying he's in line for 25 basis points at this point. maybe took a slight bit of that hawkish edge away from what we've been trying to come to terms with, which was how high, how long it also shows, i think, that getting up above 5% on the short end of the curve is not necessarily something that stocks can't deal with it's really about the open-ended climb from there >> yeah, you're above 5 on the six-month on one year and approaching that on the two. the 10-year sitting at 4:07. it shows at least some level of resiliency the stock market didn't fall apart as you continue to move above 4. >> yes when we went above 4 in the fall, it was a three or four-week period the market had been going down to a month sounds familiar. going down much more quickly back then. the market shopped around and made a little bit of progress until we shot up to 4.2 or so.

then it got a little bit nervous. i don't think that's the only thing going on we had peak inflation at that moment where it was finally coming to terms that we had hit the peak i don't think the level is necessarily, you know, kryptonite for the market. it's not comfortable and, again, we're just basically with the s&p, above yesterday's high. that's as much as you can say about the progress we've made on a week to date basis. >> i mentioned loeb to you passive state. activism in general has been hot and heavy. this year, salesforce today, thank you if you're in that stock for the dow having a great day, too. >>ing sure. >> salesforce is up better than 11%. good guidance. they do a buy back it raises the question i wanted your input whether activists are driving some of the change they're seeing where they're getting in the way iger did what he did peltz said we put the pressure salesforce did what they do as benioff did. elliott said, hey, we put the

pressure on them to do that. >> i would say it's case by case in my view the disney situation, there was only one thing iger could do set the priorities, talk about cost cutting, getting streaming to break even more quickly, all the things that are kind of obvious out there. peltz coming in and saying, by the way, you overpaid for fox four years ago didn't exactly set the course from here on out. for salesforce, i would say the activists were an accelerant, maybe a catalyst maybe let's focus in our attention on things we can handle and maximize the margin benefit as opposed to taking a longer period of time. in general, i feel like the activist toolkit is a little bit unclear. it used to be lever up and buy back the stock this doesn't seem like the moment you want. >> hard to lever up the cost of capital is more expensive. >> trade a stronger balance sheet for buyback. i think it's a lot on the cost

side either ceo comp is too high which is what loeb was saying to bath and body works. get margins in order under managing the business. run a tighter ship as opposed to make broad strategic moves. >> when salesforce did announce the buy back, i couldn't help but think about the debate we've had in the last few weeks, in particular about this new found maybe war on buybacks. you know, you've made the point that not all buybacks, david inehorn made on "halftime" that not all buybacks are equal. >> for sure. whether you're issuing a bunch of stock with the other hand at the same time. one thing i found interesting about salesforce after the results were announced, this was in one of the analyst's reaction notes today was the stock-based compensation is going from 10% of revenues annually down to 8 based on the margin guidance well, the buyback's nice but

it's also good if you are not shoveling out as much equity. >> pressure to do that for certain. see you in a little bit. >> mike santoli will be back in the market zone. tracking the piggest movers as we head closer to the close. kristina partsenevelos back with that what if you were a trendy apparel company facing an avalanche of demand?

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. we're back at about 20 minutes to go. if you are tired of the chop and slow grind lower, today is your day. salesforce accounting for that coca-cola having a decent day. boeing good for 2% plus as well. we continue to have a little bit of a ramp as we move closer. kristina partsinevelos is there. >> i'm having a good day, too. financial names, not so much look at the sea ofred. bank of america one of the lowest down 1% signature bank is one of the lowest citi bank is cutting hundreds of jobs citigroup shares down only .2 of

a percent. shares of okta 12%. analysts upgrading the software increasing the price target to 100 bucks. right now it's trading at $80.17 our own john fort caught up with okta's ceo and asked about the company's product portfolio. here's a snippet. >> look at product metric how capable our sales force is to sell the customer. they're learning the product learning how to sell it and learning the value prop. they're able to speak to every customer and you should make a choice for identity. getting it from the leader that can address all of the use cases is the right choice and right partner to work with. >> of course, we'll have much more from that interview on closing bell overtime after 4

p.m. eastern. >> good stuff, kristina. the kristina partsinevelos last chance to weigh in on the twitter question we want to know, how worried are you. are you worried about stocks retesting the october lows go to @cnbcclosingbell the results coming up after this break. but seriously we need a reliable way to help keep everyone connected from wherever we go. well at at&t we'll help you find the right wireless plan for you. so, you can stay connected to all your drivers and stores on america's most reliable 5g network. that sounds just paw-fect. terrier-iffic i labra-dore you round of a-paws at&t 5g is fast, reliable and secure for your business. ♪♪ we all have a purpose in life - a “why.” maybe it's perfecting that special place that you want to keep in the family... ...or passing down the family business... ...or giving back to the places that inspire you.

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we're back with the results of our twitter question. we asked are you worried about stocks retesting the october lows the majority of you said yes but it was pretty close but, still, right? the positive market guilty before proven innocent yes, 51.5. 48.5 thank you for voting up next, your earnings setup broadcom is set to report

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with its customizable options chain, easy-to-use tools, and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities. while an earnings tool helps you plan your trades and stay on top of the market. we're now in the closing bell market zone mike santoli here to break down these crucial moments of the trading day. strategi state trooper chris barone stephanie link makes the case for broadcom ahead of earnings

mike, i begin with you got a pretty good day moving into the end here. yes, salesforce accounting for 100 point of the dow's nearly 400 point gain we'll take it given what's happened recently. >> for sure. obviously the yield story has been front and center for good reason it's a decent lesson that we were at these levels before in yields it didn't necessarily knock everything off course and i think also the context does matter the little bounce we got today, at least for the movement, preserves the idea that this pull back seems routine. it's not a lot of urgency behind it if you want to paint the whole picture, it's october low that looked textbook in some ways january historically significant momentum signals typical february consolidation seasonals get better mid-term credit year credit and the vix told you don't panic. it's not all happy we can obviously have some wrench thrown into that mix but for now i think it's still kind of willing to play this in the

range. >> you have a handful of days before the potential wrenches come flying. >> for sure. >> the jobs report a week from tomorrow cpi. fed meeting. even as bostic says 25, let's see what happens if the jobs report is hot. >> for sure. the market is going to leave those possibilities open pricing in a decent chance of a half percent. it's all about where does it end up the market needs to have a line of sight to where we finish on rates. in the market it's not a six handle but maybe it is that would require a little bit more work on equity valuations so far it's happening in a slow enough way and more orderly way. the inflation prints while not perfectly friendly are not really wide of the mark that much versus what economist forecasts have been. >> chris farrone to you. nice bounce off of the 200 day let me start you there. >> 3940 level last couple days

has held its first test. i largely agree with mike here these last three or four weeks s&p came in 6, 7%. there wasn't a lot of intensity under the surface on the down side i think as attention kind of plays to these levels in this 3940, 3950 range it doesn't tell the whole story though scott, this is a very, very split tape and i think what divides this tape is rates anything rate sensitive is on the wrong side here. look at the weakness we've seen in utilities look at the weakness in pharma, staple, reits. juxtapose that with the absolute leadership we get from things like machinery, steel, industrials. so i'm not sure the index actually tells the whole story here there is a very, very divergent set of messages going on when you look at group by group and stock by stock. >> you sound exactly like what stephanie link was saying at the top of the program she adds to caterpillar,

industrial cliff-steel. your point is very well taken. you've been more positive, i think, more recently are you still as rates have crept higher since the last time we spoke >> scott, it's not rates up that i think really would worry me. it's actually rates down rates up i think speak to the idea there is some window here where risk can still work. i get worried when rates fall. that's the message i think we have to be on guard for as the year progresses here what i really want to emphasize though, this is important. i don't think we went through the last two years just to go back to the same type of stocks, and when you look at the top of the market right now you've had good moves in apple, you've had good moves in microsoft but where's google where's amazon those have not been involved the top of the market is not monolithic what you've seen is investors coming out of these periods spend too much time and too much capitol trying to time their

re-entry back into the old leaders and instead they missed what the new leadership is what we're seeing from these machinery names globally, what we're seeing from the industrials globally, that is the real story over the next couple of years. that is where we should spend our time and capital. >> unless you need a good mix of both i look at an opportunistic dan loeb, for example, which we reported about amd it's a growthy name but it had a good pull back with the rest of the space. at some point you say enough is enough >> yeah. i think there's certainly some cyclical component to semis here scott, it's another group when you go name by name by name there is wide dispersion in terms of what the message is compare that to something like industrials. i counted yesterday, you've had 47 industrials on the breakout list over the last several days. i can't find another sector that has been that broad. that's where i am far more inclined to spend my time.

i recognize they're over bought and they might be expensive but the market is telling us something about these names as candidates for secular leadership going forward >> all right good stuff chris, thank you so much chris verrone joining us i pivot to stephanie link. broadcom, the stock you own as we look towards stocks in overtime. >> nvidia, the guidance was good that was 30% of broadcom's total revenues, there's that we also know cisco had a very good quarter and also, again, another reit or two broadcom networking was 30% of their total revenue. i feel pretty good about the guidance for broadcom. i think the quarter might be very sloppy and a lot of that is because enterprise is still under pressure cloud is still under pressure. at the end of the day they have 31 billion in backlog. the stock has massively lagged this

up 35% generating $16 billion free cash flow a year. they increased their dividend last quarter buying back stock. i like this company. it may be down at the fringe but i think it would be an opportunity because i like the setup for 2023. >> there are pockets where your lips are moving and i can't hear a word of what you're saying. >> trying really hard. >> i'm being honest with you, steph. >> santoli is benefitting sitting next to you. >> now they're quiet >> exactly please, chips. do you feel like the worst is behind the space >> well, micron didn't have great commentary today, right? but then begin it didn't kill the market, right? it was dan loeb who is buying semis. there are pockets within the semis. semi cap equipment it is really iffy and longer term broadcom, not only do i like their mix in terms of semiconductor revenue at 80% of

total revenue, this he have a software component which is 20%. i think you'll see better recurring revenue. >> i know you have thoughts on costco it's in "overtime. costco, marvel, hp, dell. >> i think costco is going to be great. it always is usually it sells off on the news maybe you get an opportunity the stock is too rich for me valuation wise. >> let's do your last word. >> i was going to mention on the semis. this is not ranular, not about which companies are working or not. on a market wide basis if you use them as a signal, it's still telling a relatively positive story. a relative high to the s&p goes back to something like april. they've come back. if you like semis leading in a limited way, they're not back to their highs. i still think it's okay they're firm in the face of a lot of what else is going on. >> costco in overtime too? it's an interesting one --

>> yeah. >> -- given on the consumer the recurring revenue fees. >> sure. you always do look at it for -- first of all, they typically don't patd their margins, right? they're managing to a low margin and essentially trying to maximize value for customers it's really about top line you often have the monthly sales. that's why i think the earnings reports themselves aren't always necessarily that dramatic. always a high value company. probably operating very well you can kind of blend walmart and target what they told us in the last two weeks and see if it's borne out by costco's number they do special dividends. i think they might be building up towards one of those as well for those who like that. >> we've had the 2-minute warning on the screen and heard the sound effect as we look into tomorrow, the final trading day of the week as we kick off this new month of march. what should we be looking for after the kind of day we've had, especially as we approach the close? >> i mean, i've been watching the way that small caps have been leaders even through this

slop that we've had here so, again, it's -- i agree , again, with what verrone said. it's rewarding parts of it and punishing others that's something you can sort of hang your hat on i'm not that focused at 4,000 as a level. you want to be focused on the idea if you get any bid in treasuries, if you get any easing back on the yield side, to see if the stock market is spring loaded to take advantage of that or if it shrugs it off it feels like if you did get relief on the yield front, stock could rebuild this 5 to 6% loss. >> are you surprised as yields moved up today, stocks didn't fall apart >> i don't know that i'm surprised they didn't fall apart. maybe slightly surprised >> a three-day negative. >> much of anything. shorter term yields did soften up a little bit. if you look at the one year. that's all we're arguing about a handful of

basis points over the next three months from the fed. >> we were wondering whether we were going to hold that moving average on the s&p the we are we're going out with a nice move on the dow better than 300 points salesforce is responsible for a lot of that. big earnings coming up in moments in "overtime." >> thank you, scott. stocks ending higher in fed speak. that's the scorecard on wall street welcome to "closing bell overtime." i'm morgan brennan with jon fort >> plus, we'll talk to the ceo of c3.ai his numbers are coming out this morning. he's going to join us before his call and we'll talk to snowflake ceo frank slootman his stock hit hard after guidance missed.