if they want to do this, they have to compete. they have to figure it out >> i'm just a stop and shot kind of guy. >> amazon should buy stop and shop. >> seven stories in 3 1/2 minutes. >> have a nice weekend thank you very much. welcome to "closing bell" on this friday. i'm scott wapner this make or break moment is a moment of truth and whether naming a new twitter ceo is just the thing to jump start tesla shares short circuiting lately, and the road ahead for tech overall. here's your scorecard with 60 minutes to go in regulation. the dow down in the past nine days, pacing its second week in a row. the worst of this week's banks have been a drag nearly every day. take a look at the nasdaq. it's been up for the past five

sessions as tech continues to catch a bit of a bid, especially alphabet up 10% this week alone after holding that big event out in california saying, not so fast, microsoft on all that ai talk it does bring us to our talk of the tape elon's exit. well, sort of as he names a new ceo for twitter, presumably to spend more time on everything else he's got going on including tesla. shares had ripped, then dipped and now seem to be looking for some momentum. can they find it that's the big question. so let's ask eric jackson. he owns tesla shares he joins us now. t it's good to see you again what was your reaction when you heard he finally named a ceo for twitter? >> well, i think it's unquestionably good news, scott, for tesla shareholders this stock is off about 40 bucks since the beginning of april on the concerns you mentioned it gives the opportunity for people to reassess tesla, and he

won't be as distracted by twitter, and the great thing that tesla has going for it and social secur is it's, you know, we can talk about the gross margins but the number of deliveries this year are going to be significantly higher than last year, and if we've learned anything this week especially with the disney results and disney plus, groowt is better than shrinkage, and tesla has major growth behind it i think investors will look at that again now and see that the shares do look attractive between now and the end of the year >> sure, but i mean, you obviously have to care about margins. you have to care about the number of times they're willing to cut prices to spur demand, no >> i think for tesla, there's really two battles whether it's, you know, it's waging war. one is in china, and one is the rest of the world. in china, they're in a dog fight. there's no question, and so you

can make the case that, you know, those pricing cuts are coming from, like, having to keep up with, you know, with the competition over there on the other hand though, you know, look at lee otto's results this week. china is a growing market. it's a booming market for evs. so, you know, they should make money in china the rest of the world though, tesla's really i think in the scene. i don't think that the price cuts are coming from weakness, but rather from strength, and they still have a lot of, you know, a lot of profit margin to kind of work with when making those cuts and it puts others like gms and fords of the world, you know, in a much more difficult place to compete with them >> what do you make of the market reaction here obviously when the news broke and we did it yesterday in closing bell, the stock had popped and perhaps for obvious reasons, and it was up slightly again, and they're giving it back what do you think is up with that >> i just put it down to the, you know, the nasdaq's down

today, you know, tesla compared by a lot of names today is outperforming. i think it's still good news is a good news story. let's see how it does, you know, into next week, but i do think that this is definitely positive news some people are saying, oh, you know, he's not going to be able to give up controls. he's going to be in the hair of the new ceo, but i would point to gwen shockwell at space yx w runs it. elon is involved in spacex of coursely, -- obviously, but he lets gwen run the show i don't see why that won't happen here at twitter too. >> if the new ceo, linda, is going to be presumably really with the big focus on ads and ad revenue, i mean, musk tis still going to be head of product, right? maybe some of the questions about what is his role truly going to be, maybe they're valid because it's not like he is exit

stage left completely. >> no, i mean, but he's a product guy first and foremost and he's obviously going to stay involved tinkering with the twitter product or the x product, whatever he wants to call it, but he'll do as he does with space yx. he brought up 30 or so people in tesla. there's a bigger team behind him, and, you know, i think it's going to be a good thing for twitter that elon is not the main kind of point of interface with especially a bunch of adver advertisers. i don't think that's worked out so well. he'll be involved, but he can sort of do what he does best. >> you know, i just learned, you know, a few moments ago, in fact, that you've just sold uber shares i want to pivot there because i'm kind of surprised. now i know the stock has had a nice move. we're not even back to the ipo price yet. why are you getting out now? i thought the story was just

kind of turning much more positive than it's been. >> it's -- i mean, if you compare it to kind of middle part of last year, you're talking about the stock that's moved up 50% so it's had a great run from, you know, being unfairly kind of punished and sold off last year, you know, i think they've done a good job i think there's a lot of upside stale head in uber shares. i still like it. i would like to see them being even more aggressive against, you know, the likes of lyft who's kind of fading away in the distance >> how do you do that? how can you be more aggressive how do you be more aggressive against lyft i mean, what more do you want? >> well i, you know, and obviously ai is the buzzword right now, and most people talk about ai in relation to the big tech names, but -- and a bunch of smaller tech names like chegg for instance have blown up in the last couple of weeks because of ai's effects, but there are going to be some smaller companies that are ai winners.

i think uber could very well be one of those in terms of how they're investing in it, in terms of optimization, in terms of the fleet, you know, management that's out there getting cars in the right spots to pick up, you know, deliveries and so forth i think there is a lot of upside still. i just think that just in the last couple of weeks, this is a stock that's moved up from, you know, i think it was in the high 20s to, you know, now we're in the high 30s >> no. it's up 55% year to date, but when talk about selling out of things like uber which you still like because they've gone up a lot, my first reaction is, man, do you think that you should do that broadly in big tech as a lot of those stocks have had, you know, maybe not 55% gains year to date, but some of them, i don't know, they're like a double meta's almost doubled since its november low take a look at some of the gains that we've got and, you know, like alphabet, microsoft, we're talking 30% in just a very reasonably short period of time. is it time to take profits

elsewhere too? >> it's -- i mean, the first half of this year has been the year of, you know, some big tech for sure, and so all these names have done really well. google's had a great week as you pointed out at the beginning of the show, but really it's just sort of catching up to, you know, the same level -- year to date levels as a microsoft, you know, it's probably undeservely kind of pushed aside as it was seen as it was going to be hurt by ai and, you know, this week people are saying, oh, actually, it's bicycgoing to be a benefic. they've all had great runs and they have great futures. i think it's smart thinking about taking some of the chips off the table with some of the big tech names, but my call for the rest of the year, scott, is more, i think that this rally can broaden out and kind of go into the russell names, some of the smaller tech names who really are almost back to square one, where they were at the end of 20 22, and they really just haven't had the same first half

of the year that the big tech has. >> how's that going to happen if everybody is worried about a recession and economic slowdown? those things won't work in that narrative and environment, right? >> well, you know, we've climbed a wall of worry so far this year, and, you know, every week it's something i have to worry about. i mean, a few weeks ago we thought big tech earnings were going to blow up and take the market down. it was anything but, and so, you know, that's another reason why, you know, i still think tech -- big tech continues to work over the next few weeks or months because there's just not a blowup in sight with their earnings then we've got cpi worries and now we have debt ceiling worries and yeah, we continue to march higher we have inflation now under 5% i think there are, you know, there are reasons to be optimistic that, you know, we can continue to grind higher for the rest of the year, and it does become a broader base rally. >> let's broaden the conversation, speaksing of broader based. let's bring in kevin gordon of

charles schwab good to have you with us jordan, you first. let's start in big tech. that's the crux of this conversation does that continue >> i don't think so. i think there's some further downside to tech stocks from here obviously they run a significant lead, but as you've sort of highlighted at the outset with the expectations for a recession, consumers coming under pressure, i do think that there could be a little more pain being felt, and also when you look at the broader market, big tech's been leading the rally. it's been the big names that have allowed the market to really reaally the breadth is quite narrow at this point, and i'm not sure about the durability of the broad market rally, and i think that tech is going to continue to come -- will start to come under a bit of pressure given the outlook. >> what about you, kevin >> i mean, i agree when you particularly talk about the earnings backdrop as you just talked about with eric, you know, the fact that the earnings

were less bad than expected, i think it's good, but it still doesn't change the fact that revisions have been more to the downside six months ago, the estimate for the tech sector was you would see earnings growth for 2023 that has gotten revised to now almost negative 2%, and you have that component and what jordan was just saying, a handful of names really leading the rally. >> why is that so bad? i have had others come on and say, i'm going to bust that myth right now that this is somehow horrible for the market. >> i think it's the fact that so we're now seven months from the october 12th low for the s&p at least. from that moment, there were a lot of indicators that particularly we look at, sentiment-remitted if you want to broaden it out to the stock universe, that actually looked pretty good and kind of consistent with what you tend to see at a major market low. now we're off the point, you haven't had banks participate, and small caps are up a few percentage points and you're not

getting a confirmation you're entering a new durable cycle i think it's much more what the market's not confirming as opposed to embracing some sort of rally and saying it's find that the mega-caps are leading i don't think that's necessarily the story. i think it's much more what's not moving and what's not working. >> but what's not moving and what's not working hasn't been moving and hasn't been working and somehow the market is still hanging in there with a level of resiliency that surprised a lot of people. >> and it's concentration up the camp that you have the largest names representing a huge chunk of the index even if you talk about a sector like tech, it's apple, microsoft making up more than 50% of that index. if you are investing in a cap-weighted index, you're putting a lot of your money towards just two names which in times like this, it makes sense, and by the way, the mega-cap names like those names have become sort of the pandemic defensive. so i think the knee-jerk reaction is still such that investors sort of flock back to those areas and they can look for stability there, which, you know, it's not unwarranted because they're typically higher in quality they have a little bit of a

benefit from the dollar rolling over you don't have as much of the head wind that you had last year, and with earnings relatively stronger, maybe not as much on the guidance right across the board, but if that's the acase for those names, it makes sense why that's happening. >> are we too top heavy, jordan? do you have a problem with the fact that mega-caps have made up an overwhelmingly large part of where this market has come to? >> i do. part of the reason is the rate environment, you know, i certainly would argue that, sure big names, long duration equities can rally when rates are at 0%, but they're not, and i don't think they're heading back to zero any time soon i worry that not only the market rally has been very narrow, but these valuations, they're also the reason why valuations are relatively elevated relative to where rates are. so you look at the outlook, again, the guidance isn't great, and the expectations for a recession, as i mentioned,

consumers coming under pressure, sure, the national exposure, the fall in the dollar that has provided a bit of a bounce, but for the durability of a broader rally, i would like to see the rest of the market play a bit of catchup. >> eric, i don't know. do you agree with this premise or not >> no. i'm going to argue against this as just a top heavy rally. these big tech names have done well, but the reason why it's top heavy is these names are so large. as a percentage of whatever you want to point so, so if they do well, you know, if they sort of dwarf the rest of the market so, you know, some of the names we mentioned earlier, shopify, uber, you know, coinbase, they have had even better years than the big tech names you have got to pick and choose, you know, it's not just a, you know, by the etf for tech. you have to look for the winners, however, i'll be the first to admit, you know, the russell is negative on the year. so it hasn't been, you know, a

huge broadbased rally. i would like to see that, but you have to start somewhere, and we've got big tech leading the way. i think it's going to lead to some others coming along for the ride as well. >> those who are negative on the markets, one of the first things they point to, it's so top heavy. everything else is so weak that's representative of a market that's about to have a role and about to roll hard. >> not necessarily -- the top heaviness itself isn't going to push you over. it could be if you get a switch in momentum if you do that so well it works against itself i think the scyclical tie-in, ad the lack of participation in the banking sector, i go back to that because every major market low, banks have participated at this point when you've gotten off the low. banks are down as we all know, and so i think it's getting harder to divorce that from the reality we face a little bit later this year which is more contraction in credit, sort of a slowing in the economy which is also a feature of what the fed is trying to do and crush

inflation, and for names that are in that big tech or tech-like moniker because not all are in the tech sector themselves, but they're not impervious to drawdowns. when you look at the ratio of the large caps versus the rest of the market or whatever indexes you want to use, it's not the reason that you go lower, but it is a risk especially because, you know, a lot of people hold those names they hold a large part of the market, and when it reverses, it happens pretty quickly. >> how negative are you on the mark anything this week from we're going back to the october lows 3500 to what we're going up to 3800 >> it wouldn't surprise me to go back there, but i don't know because this is such a unique cycle and even if you look back -- i think what's tripped up the investors the the market and the fed and also the economy. if you go back to the three major hiking cycles we had for the fed. the financial crisis into the

stock bust, and stocks got crushed while the fed was raising rates last year. now you have the question of, is the pause good for stocks? are the cuts good for stocks i think that's what's tripped people up a bit and finding out if october was the low in my opinion, if you don't get in a fundamental sense, confirmation from cyclical areas of the market, if they stay down and/or move lower, then you get a weaker signal for the market itself, and i think, you know, our view has been it's better to pull forward the actual start of the form of the recession because you would get the low and get a confirmation that stocks could see through it. the risk in the bear case for the market is you push the recession out because that would mean you have this interim lift and then it sort of has to work itself out. >> unless, jordan, you never get a recession. that somehow whether it's miraculous or not, we pull off this soft landing thing because the labor market has remained so overwhelmingly strong to the point that most are shocked by

500 basis points of hikes within 13 months, and the unemployment rate's moved lower >> well, the labor market is the last shoe to fall. it's really once the labor market finally comes under pressure, that's when we're in the recession, but when you look at the forward indicators, part of the reason the unemployment rate is so low is because there's a lack of available workers. this excess man to labor, the roughly 5.9 million available jobs, that will work itself down, and once we get that 6.5 million to 6 million jobs number of unemployed persons in the economy, we'll see a more material move higher in the unemployment rate. you also add on top of this that the banking stresses, and one of the things i'm particularly concerned about is when you look at the makeup of the work force, roughly -- slightly over a majority of the work force by 53% of private employees are

employed at firms that have 500 or fewer employees these small businesses, they bank at local and regional community banks, and given the stress that is we're seeing in the sector and you argue a small business, maybe they have six to mine months worth of operating cash flow, they'll have to start tapping these community banks for extending their credit to keep the doors open and if the availability of credit has become more restrictive and the cost of credit has gotten more restrictive as well, then that suggests they have to start laying people off, and that's where you get that broader reaching weakness in the labor force and the uptick in the unemployment rate, and maybe the jobs opening rate comes down, and quicker than analysts anticipate over the next couple of months. i'm particularly concerned i think this leads the fed into having to cut rates before the end of the year. so have a slightly more pessimistic outlook. >> i'll say. slightly >> we're seeing everything playing out.

>> you're being generous to yourself i'm just saying. eric jackson, finish it up for us >> i mean, i think there's certainly a good chance that big tech names could tread water for the rest of the year heck, the whole economy could tread water for the next year or two, but i think we can muddle through, and i think even if the economy is -- is, you know, chugging through this mud or there's an uptick in unemployment, there's no reason why there are a lot of stocks out there that have been, you know, penalized or marked down that can't do well over the next year or so so, you know, i think you got to look for those names and you have to take it, you know, case by case, but i think there are lots of bargains lying around for people to take a look at. >> all right good stuff guys, thank you very much. everybody, have a good weekend eric, we'll see you soon jordan, you as well. kevin, thank you for being here. let's get to our twitter question of the day. we want to know, are you more bullish on tesla now that twitter has a new ceo?

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>> after the media giant beat estimates on earnings and revenue, thanks in part to cost cuts including layoffs, this company also saw changes to "the wall street journal" and "sunday times. ad revenues did decrease 6.6% year of year, and the pullbacks from the technology and finance industries on the earnings call robert thompson saying ai may pose a challenge to the company's intel electual property. charles schwab is a bright spot in financials after a brokerage firm reported that its total client assets rose to $2.63 trillion that's up 1% from the month prior and 5% last year those shares up about 2% scott? >> all right, pippa. thank you. investors gearing up for a big week of retail earnings. melissa repko is here with what to watch we got tarpgt, walmart, home depot, right >> yes the big question is how is the

consumer holding up? walmart is on tap first. it reports wednesday or it's one of the first, and it's expected to be in the strongest position. nearly 60% of its u.s. sales come from groceries, and that's a category people need even when the budget's tight target on the other hand is more vulnerable with discretionary categories like apparel with only about 20% of its annual revenue coming from groceries and even the grocery aisle is under pressure pan pandemic's snap benefits ended in march more shoppers are buying fewer groceries and trading down for home depot, the spring home improvement season could boost sales, but higher interest rates remain a risk, scott. >> all right melissa, thank you it's going to be a big week. take the temperature of the american consumer, and see where we're at amid some reports that even at the high end, starting to cut back a little on spending melissa repko. up next, chris too many too.

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welcome back solid earnings a leap forward in ai the past month. pretty good for tech, but the trade could be priced for perf perfection now is our next guest, he runs one of the highest private rated wealth adviser companies in the country with morgan stanley, it's chris toomey. it's priced for perfection now. >> i would say almost the whole market is right now. i think everyone got excited about what was happening with earnings, but this was the whole wall street game going into the year expectations were earnings going down 4%. april 6th, earnings were expected to go down 16%, right so if we're down 8%, that looks like a b when in reality the trend still is very negative. >> sure, but if the trend isn't as negative as some were, you know, calling for, that's a whole different ball game potentially. >> right, but then you have to look at what the market's priced for right now. if you look at the price of the market right now, it's over 18

times. in a situation where we now are officially going into an earnings recession and there is a 50/50 chance depending on which way you look as to whether or not we're going into an actual economic recession. in that environment, do you want to put an 18 times multiple on the market probably not >> maybe you want to -- maybe you're willing to put a higher multiple on the most megas of mega-cap tech names you have to go for quality >> right >> you want to go where the money is, and you want to play a little defense, and if you can do all three in that space, why not? >> well, why not is because if we are going to go into an economic recession, you're going to have a problem, right if we remember the story, the dw beginning of the year, inflation is coming down we have no landing or soft landing. >> mm-hmm. >> equally weighted the s&p 500 looked pretty good then we had this whole situation where the data started turning and the banks really had a problem, and you saw that two-year crash, right? then all of a sudden when rates

are crashing, you get the sense that long duration assets are going to do well we have people running into tech which i could say is that sequential next domino with regards to the market falling out. >> the market doesn't fall out though unless big tech falls out. >> it can't because it's such a huge component to the underlining economy, right >> i'm wondering what makes you think it's going to. with all the -- now granted, it may be overhyped in terms of ai. however, maybe that's the game-changer that some suggest that it is, and you're only -- you're just getting started with some of these stocks, even ones that have doubled like meta for example. there was a positive note from one firm out today, suggesting this was the beginning of this term. >> right, but i think the thing is i don't think the technology industry is immune from the overall economy, right i think if you talk about what's being priced into the market right now, what's being priced into the market are four rate

hikes and 200 basis points of cuts i think if you have door number one and door number two, and they're both not good options, right? the reason for those rate cuts is there is clear confirmation with regards to the fact that the economy is really in a recession, and we need those rate cuts, right that's door number one door number two is we don't get those rate cuts. the market's pricing them, and the market's going to have to come down and re-evaluate the fact that we didn't get that 200 basis points of cuts and then taking a look at that scenario, you go back to your friend, professor siegel who is now demanding we get those rate cuts otherwise we're going to see a messy market. >> let me ask you this question because some people have suggested this, that rate cuts -- now i know you say they'll only cut rates if we're falling apart. rate cuts are always bullish tell me why they're not. tell me why they're not. i'm not talking about in the first five minutes or days tell me why they're not.

>> if the yield curve is inverted, the economy is going down typically that means that we're cutting rates for a very specific reason. we're not in a situation where we're in this economy that's growing rapidly, which is a situation where we actually have to cut rates in order to keep the economy going. this is a situation where we are turning lower, and we need these rate cuts to keep the economy from really going much lower so in my mind, i think the thing is we need something that's going to pre-empt those rate cuts and that preemption will be negative for earnings and pull down stock values. >> ultimately like '08 and '09 when the fed starts cutting rates, the environment is pretty bad. ultimately it ends up being one of the greatest bull markets in the history of bull markets, if not the best ever. >> after the shake out, right we haven't had a good shakeout. >> we had one last year. >> thart's right. if we look at the performance over the past year on a price percentage basis, 3 1/4, right

without dividends. the rolling three-month treasuries, 365, you did better rolling treasuries over that period with ukraine, with china being closed, with nine rate hikes, and so if you include dividends, you made an extra 1.5% for riding that roller coaster. in my mind, in this situation you're collecting almost 5% or 6% sitting in cash waiting for this to roll over. that's a better trade to me than rolling the dice where market multiples are very high, so you always ask me, what would i need in order to change my view with regards to getting along the market >> right >> i always say price. that's not a fair comparison you want the other answer which is we need to see earnings then above $245 which i don't think you're going to get in the next 12 months. >> i want to know if, you know, those who have been negative and right sit here in the market, which has been much more resilient than we expected

we have another day of it here where you start down, you do nothing, and head towards the close, and you make your way back into positive territory is there some point where the train gets far enough away from the station that there's that fear of missing out factor that puts more cash on the sidelines into the market? >> well, i mean, i think that's what we're seeing. we see people dipping their toes and where they're dipping their toes is that quality trade in technology, but i think that's also kind of we cans, right? when the market starts to sell out, that's going to be quickest, right. that's where i start to see the market getting to that 3600 level which is where i think you can start looking to add exposure. >> your clients, are they worried about the debt ceiling are they calling you about it? >> of course yeah if you have a former president on national tv talking about, you know, and they're not budging and defaulting on debt, i don't think that's very good i think if you look at it in a situation, one thing people aren't talking about is looking

at u.s. debt cds if you look at credit default s swaps, it's worse than most emerging countries. >> worse than '08? >> yeah, it's worse than '08 and it's not affecting the equity market and that's another issue you have to worry about. >> chris toomey from morgan stanley private wealth pippa stevens is back. >> solar stock is shining bright we'll have all the details coming up next the first time your sales reached 100k with godaddy was also the first time your profits left you speechless.

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we have less than 20 minutes to go before the closing bell. let's get back to pippa stevens what's watching the key stocks at this very moment, pippa. >> here with first solar which is surging more than 25% today, making it the s&p 500's top performer by a wide margin the pop comes after the treasury department issued proposed guidelines around what qualifies for the inflation reduction act's 10% domestic content tax credit now investors have been waiting for clarification on how the bonus credit would be applied and first solar is the only sizable domestic panel manufacturer and so is a clear beneficiary. the company is adding new capacity although has said it is

sold out through 2026. twilio shares taking a hit after cutting from neutral to by macro challenges the stock is down more than 10% on the week. following their earnings report on tuesday where the company issued weaker than expected revenue guidance, they point to weakness from customers and social media, ecommerce, and cryptocurrency businesses. scott? >> all right, pippa. thank you. last chance to weigh in on our twitter question we asked, are you more bullish on tesla now that twitter has a new ceo? you can head to @cnbcclosi@cnbcl on twitter vote threltarne e sus e xt

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the results of our twitter question, we asked you are you more bullish on tesla now that they have a new ceo, the majority of you saying no. we're not. that's kind of surprising. up next, a regional banks rocky week investors are closely watching the balance sheet. data out in overtime trust me, they are they can't wait for the balance sheet data the key figures to look out for in the balance sheet data, what it might mean for the broader market that and much more when we take you inside the market zone i remember when i first started flying, and we would experience turbulence. i would watch the flight attendants. if they're not nervous, then i'm not going to be nervous. financially, i'm the flight attendant in that situation. the relief that comes over people once they know they've got a guide to help them through, i definitely feel privileged to be in that position. ♪♪

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the crucial moments of this trading day. plus, jessica inskip is here highlighting the levels we should be watching leslie picker setting the stage for some especially critical data on the health of the banking system we start to mike santoli first what have we learned if anything after yet another week where we stayed in this range >> in this range, i think familiarity breeds contempt, right? that's one of those sayings where i think this market at this level, we have been able to chew through it multiple times and i think it's creating a little bit more skepticism or anxiety than it is comfort because it seems precarious. if you look at lots of the market, and appetite and indicators, it's flashing a signal if you look at the russell 2000, it's barely staying above these levels that might think we were cracking below a multi-year range. the constant discussion about the top heaviness of this rally

this year i think also has people feeling as if there's something illegitimate an where the market is whereas i think it's more reflective of the environment. >> of course, it is. >> russell doesn't look great. that's over a three-year period. then you have nasdaq 100 over the s&p 500. on a year to day basis, nasdaq 100 is destroying everything else you go back three years, and it shows you it's a catchup move mostly that does not look like a market that's badly out of balance, but it has to change soon if you are going to keep from getting dangerously lopsided i think that's the case. so what have we learned? inflation is still on the downswing, but maybe not decisively so. the fed is not going to tell you it's done, but it's more than likely than not done, and the leading indicators of recession remain in place even if the absolute activity levels aren't going down, and earnings are kind of flattening out as opposed to really backsliding. >> marketing seems more willing

to reward so to speak than finish, you know, ai players >> well, for sure. >> i mentioned alphabet, perfect example. it was getting a lot of heat here it is >> here's the one thing that can create an open-ended upside story, and for better or worse, with alphabet again, it's a catchup move it doesn't look like apple over the last year. it actually has been a bad underperformer it's been at these levels. i can kind of get why it's filtering in, but it doesn't seem like we're at a point where you can start to check off the boxes of things that would make you more confident that were in some kind of uptrend even though the market has proven that you don't have aggressive sellers at this level yet market-wide, and maybe it is because we might get a pause you might get some statement on policy that's going to help out the banks. might need that actually because the banks, i totally agree have not cooperated with this idea

that there's not much to worry about. >> we'll see what happens with them next week it's gone day-to-day to figure out where that sector is going jessica, are you one of those who looks at what happened with mega-cap tech and it gives you a negative overall bias on wrhere you think the market is? >> not necessarily i think mega-cap tech is what's propping up the markets and supports that narrative of a range-bound market this is most negative guidance since q3 of 2019, but if you look at the comment commentary from earnings reports, the word ai was utilized up 60% year over year and that's going back to 2005, and so that tells me even though consumers are really loving ai and artificial intelligence, it's something that can be applied across every single vertical. it hens lps with the labor mark, and bringing equilibrium

it's something companies can use even though we haven't seen an increase in cap spending it helps support the larger narrative of that market >> i guess you can call this a disconnect between the debt ceiling duel and the price action of the market >> that's right. if there was really any large broader concern we would see that within the market, and we certainly, certainly do not. i think it's so interesting if we look at the broader s&p 500, and i think jay woods actually said this best sideways is a direction. we are not making higher highs we are coming up against resistance, and those support levels, however, we are making higher lows which is indicative of an upwards trend, and that support right now is 4,100, the 1,128, the lower level of support is 3,900 which is the weekly moving average, and then the lower high that's needed to sustain and not drop below before we have a really bad

situation is actually 3,800. so we have some cushion until we run into that room where i would exercise a lot of caution. >> all right good stuff, jessica. thank you. enjoy the weekend. we'll see you soon leslie picker, there was that sleuths report, and now there's the balance sheet data, and all of it is very important. >> it is very important, scott, and i appreciate your enthusiasm in about 20 minutes or so, we get the fed's h8 data, and that gives us a snapshot of the deposit levels among u.s. banks. this data will be helpful in qualifying customer sentiment after a mixed read from some regional banks yesterday if you recall, pacwest said in a filing its deposited declined 9.5% last week with most withdrawals occurring on may 4th and 5th as customers grew spooked by the recent selloff in its stock price which is down another 5% today western alliance on the other hand said deposits actually grew 600 million since may 2nd. goldman put out its deposit rate

monitor this morning saying that rate increases have been slowing across banks even as sdwoutflows continue deposit rate levels at big banks -- or sorry, deposit levels are down 2% month on month while at smaller banks, they're down 1%. a greater number of regionals and large cap banks are raising rates for cds in an attempt to keep more deposits from leaving although savings and checking rates still remain quite low by historical standards so still some time to catch up there, scott. >> yeah, and i feel like, leslie, i guess you assume that you're going to be covering these regional banks for the foreseeable future until i don't know >> yeah. >> whether the government comes out and makes some explicit guarantee on deposits. we're going to have these stories almost every day >> i was a teller at a regional bank i will gladly cover this story, you know, given that personal backdrop there, but no you're right, and there are a

multitude of factors here. we're looking ahead to next week there are a couple of senate hearings that involve both the signature bank and silicon valley bank leaders or former leaders at this point, and also the regulators to really hone in on kind of what led to those downfalls and whether they really bring the issue forward, but until there is more clarity especially on the regulatory front, you know, we're going to continue to cover this and every headline has the potential to move markets as you have all week and by that leslie picker, enjoy the week. to you, mike santoli two-minute warning and here we go again this resilient market, as every day it feels like no matter what happens early in the day, this last hour of trade offers something pretty interesting towards the close. >> it has. part of it i do think is that real money, people with long-term time horizons don't have high conviction or at least don't see reasons to change their stance very radically based on what's incoming because we see arrangement and what that

means is on a day-to-day basis is you're in the hands of tax players and that main effect there, when people are kind of having these waves at the single day options and go in and out of the market is mean reversion we sold them in the morning, and we're buying them back later, and the markets have to hedge against them that's a small, i think, explanation for why we have this intraday move, but also you have the offsetting currents that are still at play, which is the mega-caps are now falling apart although they're underperforming today. >> yeah. >> you have a little bit of leave on the average stock out there, and, you know, the banks down something like 35% in a three-month basis. it almost never gets worse it's gotten worse at the bottom of covid really quick, and it got worse in the global financial crisis on a three-month basis. it's almost close your eyes and buy time except before you get to the actual bottom, a lot of bad can happen, and you're not seeing the credit markets flare up in a nasty way the way you did. everybody is citing the deposits

as opposed to the assets at this point. that's very different from other sort of proceed banking crises >> i want to wish everybody a good weekend as we work toward the flatline at least on the dow. have a good one. i'll see everybody next week "overtime" with morgan is coming up next. for the s&p and the dow finishing the week lower that is the scorecard on wall street for the actions just getting started. welcome to "closing bell:overtime," jon fortt has the day off. coming up, we'll talk with oculus founder palmer luckey about the ai military uses and how the debt ceiling debate could impact spending. and we'll talk t