outings. >> people are having a couple of beers and then going in and jumping and bouncing around on one of these -- >> maybe if we get a couple of drinks. >> i can't imagine anything more just -- >> i don't want to bounce around in anything. >> no. oh, my back, my legs thanks for watching "power lunch. have a great father's day. >> "closing bell" starting right now. welcome to "closing bell," everybody. i'm brian sullivan in for scott today, and as always, live from post nine at the new york stock exchange this make or break hour begins with wall street looking to close out a big week investors cheering on the pause in hikes they were looking for it from the fed and they got it. not to mention, some encouraging inflation day, and that has some strategists pivoting bank of america admitting they were too pessimistic, but still holding strong this is not the shiny bull market without problems that some people seem to think it is all right. here's your scorecard with 60 minutes to go.

all three major averages they are up on the week. the s&p and nasdaq, they are both headed for their best performances since march, and the dow looking to close out its third positive week in a row. all right. now our talk of the tape and the question sort of being batted around wall street today and this week, is will there be a big other rally? keep going before a big downturn in other words, could this maybe be it? here to help answer that question is cheryl young, private wealth adviser for the rock rockefeller family office. welcome. >> thank you >> you have timed this right you went heavy on big tech a number of months ago congrats making money are you getting nervous at all or starting to trim at all >> well, it's a great question because i think there has been so much value in tech. if you look at the major indexes a among ago when i was on this show, 95% of the returns on the

s&p 500 came from ten names and they were all tech name. >> 95% from ten. >> yeah. >> that seems a little scary. >> that's narrow people are talking about the s&p being up, and it's a handful of stocks being up. in the last month now, the participation rate has actually picked up in other sectors t the attribution is starting to see other names. it's friday, and there's a lot of interesting things going on today. the s&p is rebalancing and the next week on the 26th, we have the russell indexes rebalancing. >> there's options pro it's $4 trillion in notional value of options expiring today. i kind of thought we would see a little more mojo in the market, like, what's -- i know we got monday off for juneteenth. >> yes yes. >> is that more of it? normally we get more volatility.

>> you're right. the vix is at 14 it's fluctuated to 33 1/2 on the low to 48 on the high. we have a low level of volatility today, and historically, if there's a low level, is this a calm before the storm? >> i mean, you look at that. under 14 it's like there's nothing going on not that russia moved nukes into belarus. it's not that we discovered a secret spy base in china it's not a ground war escalating in ukraine, and the market is acting as if none of that is going on there's almost no geopolitical risk premium in this market, and i can't understand why >> i know. i mean, look at the consumer sentiment numbers coming out 63.9 it just popped up. we were expecting a reading around 40. i think people are starting to feel a little more bullish i worry there's a little bit of a fomo going on. >> yeah. >> we're seeing a lot of investors chasing names. we're seeing analysts upgrade

names to those who already had rallies. >> strategists too raising their price target on the s&p 500. >> absolutely. the same strategists who were very bearish six months ago. >> you sound skeptical right now. >> i'm a little bit cautious right now. i bought a little bit more of protection this morning. i think of it this way when you advise my clients, look if i take the gains of the stocks i bought in october, no one wants to pay short-term taxes and especially in california where the tax rates are really, really, really high in the california side. >> what? >> i have to be careful. >> breaking news, cheryl taxes are high in california >> higher than new york even >> hard to believe. >> hard to believe so when i think about these tech names, if i sell them and take the gains, now i'm looking at a 50% tax. >> you've got some angry people. >> i have some angry people. >> how do you -- let's say i'm a client i'm a little nervous i've made a bunch of money in these big cap tech stocks.

>> yes >> i would like to monetize that, but i don't want to pay the short-term game. how do i do it what's the hedge you talked about? >> i'm selling calls and going out to january 24 so i don't get hit and called away this year. i don't usually like to go with more than a quarter, but i'm getting better to go next year i can push it off to next year, if i do get called away. i think it's a great way of staying honest and rebalancing a portfolio. then i'm taking the premium for those calls. i'm getting about 14% to go 10% on the money it's a good trade, and if i only make 14% in the next six months, i'm going to be really happy let's be real. i can take some of that premium by putting protection and on qqq. if if i can buy it on the gains, it's for short-term clients. >> europe has been -- europe is outperforming us brazil, on fire. again, we can talk about u.s. stuff, but this is a global rally. >> it's a global rally, and that

gets really interesting because look at what the dollar's done the last year. i think the dollar has probably near-term peaked i think there's downside ahead of the dollar, and this may be time to think about adding some of those names that you have in your portfolio most of my colleagues have been in dividend stocks all year. they've missed this, and they have been in cash because they were afraid six months ago that's where wr, you know, if yu think about driving down the highway, and taking this corner sharp, but put the guardrails on that way we can continue to accelerate around the corner, keep the guardrails on, have those in place, and stay in some of the names you love, but let's add some international let's add some of those stocks that may be have underperformed. >> i still come back to your stat at the top that it's 95% has been ten stocks or something, and then, like, 4,000 other stocks, they are saying, hay. what about us? >> yeah. >> they have started to participate this week, small caps, mid caps, whatever >> this week >> only this week. >> that's right. >> my mind sort of thinks, is there opportunity there?

i mean, how much more money can i make in, you know, certain big cap semiconductor stocks that rhyme with avidia? do you know what i mean? how many more computer stocks can be named after fruits? >> we have to understand the largest tech stock on the nasdaq and on s&p 500 is apple. apple is bigger than the entire russell 2,000. >> one stock is wbigger than th russell 2,000. >> it was for a day. >> when was that >> it was 2021 >> i want to steal that for my random, but interesting segment. apple is bigger than the entire -- again, apple is an amazing company. we all have one of these or a couple of these. at what point do you think there is better opportunity somewhere in those other 2,000 stocks? >> there could be some dislocation in the next week the russell 2,000 is rebalancing. this is a time in the next seven days where stocks from the

russell 2,000 will be added to the russell 1,000. small caps go into large caps. a large number of those, roughly we're expecting from projections. roughly a third of those are health care stocks health care has done nothing this year. we're getting a great dividend, but the stocks have actually gone down in price so the only return on health care stocks has been predominantly from the dividend with the exception of a few names. this could be an opportunity for example to pick up a bit more of the health care sector and add that to your portfolio, and not just rely on tech. >> like it or not, it's one-fifth of the economy, health care health care in many ways is -- i hate to say it, the american economy. speaking of names, sit tight let's bring in another name to this conversation, our friend bryn talkington. also a cnbc contributor, no doubt champing at the bit. it is champing and not chomping. i want to be clear on a friday, bryn you heard our conversation i know you're -- you're down there in texas and you got energy aspect which i love

are you also poking around some of these, you know, non-five or ten stocks we talk about a million times today on this fine network? >> well, first i have to say i love cheryl's strategy of selling some for 2024. we do a lot of call strategies and option strategies and that's such a smart way for private clients. love that. i want to give you a shoutout. i think it's interesting because yes, tech and those fang plus names have dominated, but i think actually what's interesting will be about cyclical you have this market where health care are not cyclicals. energy is not doing well, staples, but within the cy cycl cyclicals, industrials are killing it home builders, casinos, cruise lines. those are, like, very, very cyclical in my opinion, and you definitely have companies that are consumer-driven, service-driven continue to do very well, and so i do think as

it relates to energy, the market is still in this tug of war that if the economy continues to slow, demand will come down, and traders are short energy right now. i think that will continue in the short-term to put a dampener on that, but brian, what makes me a little bit nervous i think as an investor, we like to study history. when you look at the nasdaq and you look at the percent the nasdaq is above its 150-day moving average, right now it's 20% above that 150-day moving average and where that's relevant is it becomes more technically susceptible to larger drawdowns and if you remember in 2018, not at the end of 2018 when powell was talking inflation, but in the beginning of 2018, we had a big move in january, and then the nasdaq was about 14% above that 150-day moving average, and we got a 12%

selloff really quick for really not a big reason >> doesn't -- doesn't i hear you. you know, i would get people that could say, it's not like the past because we've never had ai and artificial intelligence is this brand-new, amazing thing that's going to transform work and computing in the world like the internet did, and so these multiples and valuations are deserved >> well, i think ai is not new by the way chatgpt is what was new, and these large language models captured our imagination and ideas, but jensen has been making ai chips for so long. amazon does ai with the robotics ai's been around for so long, and this is where things go much higher than they should is because all of a sudden -- i mean, with the exception of nvidia that had just such an amazing raise in the $4 billion, you know, raise for the second quarter, earnings estimates for

these big chat tech stocks aren't, like, ratcheting higher. that's where you get these animal spirits are alive which is amazing bull markets are much more fun than bear markets so we're happy to have it here. i just do think investors -- everyone's in the deep end of the ai pool right now, and so i am hopeful that you get more broadening out, and these stocks will continue to digest, but i remember going back to january of 2018, like, why you got a big selloff isn't really -- markets went back higher, but i do think investors need to be open to the idea that trees don't grow to the sky and we are not going to get ai embedded into these companies' earnings any time soon with the exception of nvidia >> cheryl, is ai this -- i mean literally it's amazing it's this shiny new toy. how much should it add to prices, multiples, investor interest it's almost a mania right now. >> it is i mean, look we had a major company

announcing earnings yesterday and had a great call they were up sharply today and it was around the ai trade for that company, i think it's real. >> you're talking about a company that rhymes with badobe. >> i think there are other companies however, where i would absolutely agree with bryn where we are seeing if ai isn't a name, if ai is in the conversation, if ceos are earning and even if it has nothing to do with the company earnings, they're rallying it starts to feel like 2000 again. i would be cautious on the ai trade. you have to look at quality and l pick up the hood and look under it you have to understand what this machine learning is and can do there's a lot of problems as well, and this has been talked about multiple times on this show, but for me, you have to sort of separate the noise from the reality of which companies have a real play in the ai space and which are riding the coat tails of these actual companies

with real earnings on it. >> i don't know, bryn, where ai is going to go, but i will say something definitive which is i know that health care, what cheryl was just talking about is a huge part of our economy, about 20% in some ways of gdp. unfortunately america still has a lot of medical issues, right a lot of serious things that are not called covid that are out there. what i don't understand is when i look at the biotechs, xbi is one, heavily weighted in certain names. can we put up a five-year chart, guys two ways to look at biotechs number one is we're down about half from our peak of 2021, or we can say we're exactly where we were five years ago so there's no money to be made here i know you're long on it why aren't bio techs participating? if i think where ai might be able to help, it's going to be bio tech because know companies right now that are running ai tests so they don't have to use human subjects >> i still think with bio tech,

first of all, it's very event-driven what i have with xbi, my calls are against it i have better in the underlying position i think what does bio tech have in common -- if you take these smaller companies, they have no revenue, no free cash flow, and i still think in a 5% interest rate where cost to funding is high, that is a market hindrance right now to bio tech because they are so capital-intensive, these smaller companies, and so i think that will continue to be a head wind for those when we're at this -- this 5% for longer. that will be a head wind because companies in the market still wants profitability. they still want earning. they still want cash flow and i see a dispersion within bio tech and also some smaller tech names that aren't moving nearly as much as the bigger names or companies that do still have potential for positive for earnings and cash flow. >> i would agree with you,

brian. i think -- i think ai is very powerful in the bio tech space you can use ai to triage patients when they come in ai is now analyzing mris, x-rays, saving doctors time making it a lot more efficient you have the ability to get that out to patients very, very quickly. there's a company we look to invest in. it's not publicly traded yet, but they're using artificial intelligence to really make more efficient pathways to transport blood. they reduced waste by 67%. this is huge for earnings and when we think about esg investiin investing, what can we do for the world if we can help patients in a much more meaningful manner. we know health care is becoming more and more important, and anything we can do to make efficiencies in processing, all of that factors into the earnings of these companies. >> i want to be optimistic very quickly before we go, on

these insider buying segments, tune in tonight by the way energy transfer. kelsey warren, guys bought hundreds of millions of his own stock. he's been on the list and he's, like, $30 million here and $30 million there. i know you own it. why aren't these companies getting more love? the insiders love them nobody else seems to >> they do, and actually energy transfer's up about 13% year to day. it has a 8% or 9% yield. i think as these companies once again continue to generate free cash flow and people stop staring at the price of oil every day, you're going to see people return here, but i think though, brian, the algorithmics are just going to take time. i think it's one of the cheapest spaces we have in the market that's going to have a catalyst longer term because of that free cash flow yield. >> the pipeline etf, down about 50% from its highs of a couple

of years ago bryn talkington, thank you cheryl, thank you. have a great long weekend. let's get to our twitter question of the day. we want to know which of these stocks hitting record highs today do you think has the most upside left? is it microsoft is it b, apple, or is it 3, nvidia head to twitter to vote and we'll share the results later on in the hour. let's get a check on top stocks to watch as we head to the close. kate rogers, here with that. >> cava are pulling back on their second day on the market thursday made them the top performing ipo for companies valued above $5 billion. while it's tracking below its debut price of $42 a share, it's holding above the price of $22 on wednesday night and virgin galactic plans to

launch its first commercial spice flight virgin says its sencond flight will take place in august, and then monthly launches after. their shares are up 13% right now. back over to. >> you kate rogers, thank you very much. we'll see more of her in just a bit. we're also just getting started on "closing bell." up next, driving serious ev growth it's not tesla chinese automakers are for expansion. we have phil lebeau when a live look at what's coming up. >> we've talked about how china was the epicenter of the battle between tesla and chinese automakers when it comes to electric vehicles. what's happening here in europe k?d in the u far more interesting we'll explain when "closing bell" returns.

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welcome back to "closing bell." chinese automakers are becoming a major player in the european electric car space so might they make a big push to expand here in america phil lebeau is live from london with more. phil >> effeventually, brian, they w try to come to the u.s maybe not soon, but later this decade i want to focus on tesla because we talk about tesla's business in the u.s. and china, and yes, they're critical to its growth, but when you look at where tesla is compared to other kpcompanie in terms of global sales, ev sales, look at byd tesla is number two in europe, but byd is starting to sell vehicles here as are other

chinese makers models that are made by mg which is owned by a chinese company, and then you've got volvo owned company out of china take a look at tesla, and it brings up the question should tesla be worried about losing share here in europe where they have about 11% of the market right now it's a possibility because the chinese have 8% of the market and that's expected to grow. their sales, chinese brand ev sales have grown 70% year over year, and what they're learning here in europe, those are lessons to apply to the u.s. market they'r they're not ready yet, but they're competitors here in europe. >> i was poking around at the byd website. the car looks like a sleeker honda accord in a way. these are not -- they're not going for the usual tiny sort of cars that so many people buy and sell in china.

these are big cars. >> nope. >> they have long ranges and fast charging times. they seem at least the others, they seem to be viable competitors. >> yeah. and they're coming in at a lower price point, increasingly, and that's the sweet spot of the market yes, tesla has the model 3 and the model y, but the chinese believe they can go even lower which raises the question, when will elon musk and company come out with the lower-priced model that many people expect let's say two, three, four years from now? >> phil lebeau live in london. we appreciate it look forward to your air show coverage safe travels tonight on "last call," we'll talk more about china with leon leon panetta, and bill gates was there this week. we'll talk china risk and opportunities. "last call," 7:00 eastern. up next here on "closing bell," just climbing right up.

your next guest betting big on a market uptrend he'll tell us where he is seeing pockets of opportunity next.

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welcome back to "closing be bell", everybody the s&p 500 and the nasdaq are both closing in on their longest winning streaks in years years. our next guest believes that stocks can continue to rise. joining us now is chris hyzy, merrill and bank of america private bank cio chris, is this a technical rally? we broke through 4,300, money coming in, technicals is it the fed's done, is it inflation looks more under control? is it all the above? what's going on? >> one of the moves this go around actually if you look at it from the start of the year is positioning as you know, brian it was so poor positioning was way offside. there was a lot of hedges in

place. very defensive, competing curve with 5% cash rates money was just parked there, and then once the market starts to see that the story's unfolding, whether some believe it's a soft landing, others will point to inflation coming down. actually, a little bit more than what was originally discussed or expected, and then you all of a sudden get a fed pause or a skip or maybe a couple of skips, and lo and behold, you get another story. the innovation sector called technology, and that is generative ai and those tail winds all hit at once, and that's what creates a momentum market technically speaking, very good, and there was a lot of concern about the narrow breadth of the market, but we've done a lot of studies that suggest that narrow breadth doesn't mean a bear or bull market. that's happened in many different cycles so we're quite happy we applaud this. we're going to continue to be balanced and we're going to look actually for the next weak period >> you go back to those stats, chris.

i can't remember the exact ones, but you get directionally correct. how about this in the bulk of the money long-term investors make in stocks comes on just a few days a year. does it not? it's sort of the argument for not trying to time it, being invested because you get these one and two-week bursts, and then maybe you do nothing for six months, but that's where you make your money. >> yeah, that's a great point, brian. we all talk about asset allocation, but few people when coyote s -- it comes down to thinking about the long-term, you can get caught offsides very quickly, and it's not market time that's needed it's time in the market. if you look at the best years or each decade going all the way back to the '30s, you've missed a good portion if not almost all of the big gains over these decades or periods we're not just going to set it

and leave it in asset allocation we're going to look for opportunities and when cash flow comes in, and there's weak periods in the market, that's when you rebalance that's when you use dollar cost averaging and you use time in the market to your advantage. >> where are said opportunities? >> well, certainly you can't be offsides in technology so at least being neutral there, but one caveat obviously is the fact of the big run, not only in semiconductors, but in some of the areas that the story is yet to be told in some cases, is being told, but around ye generative ai. a lot of companies have priced in years' worth of earnings and if not, cash flow. the tail winds of productivity of things coming like ai and the industrial space, if you consider what's going to be needed with the power grid, what's going to be needed with the electrical system, and the cooling down with the data centers and some of the beneficiaries of the inflation reduction act, and dare we say energy energy has had a very difficult

time, particularly heading into a slowdown in the economy, but as we come out and we bottom out in the economy over the next, say 6 to 12 months, energy should start to reignite itself once again and that's a sector you know very well >> yeah, and, you know, and i also know this, chris, that whatever the price of oil does, the stocks respond a little bit, not that much. obviously a lot of with esg endowments getting pushed around by students, whatever it may be, but i can't for the life of me understand why the oil stocks can't get out of their own way it doesn't matter if oil is at 80 or 60 the stocks barely budge regardless >> yeah, i think that's a lot of portfolio managers out there that still view it as, you know, when oil went negative for that brief period back during the pandemic and many people decdec declared that the end of the bear market for oil and, you know, the oil patch if you will, and now portfolio is very

skeptical to marry a very small sector of the s&p 500 which is still only 3% or 4%. when you look at the earnings power and the contribution even as you said, where oil is right now, that's double the market cap of where energy is so i think it's an area where they put off to the side they know it's very cyclical there's a drum beat in the most talked about recession ever, and it's in the parking lot for now, and that's the time when i think people should actually look at it again and be prepared to come to that sector as things over the next 6 to 9 months get a little slower. >> got it. chris hyzy, really appreciate it, my man have a great long weekend. thank you very much. up next, we're tracking the biggest movers as we head into the close. kate rogers back with that kate >> hey, brian. two names heading lower for very different reasons, but one might eke out a weekly gain even with today's performance. more after the break

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just 22 minutes now until the closing bell final one of the week. let's get back to the key stocks to watch >> hi again, brian humana is lower after warning this insurance costs would be at the high end of this, due to

increase in outpatient surgeries. more seniors are catching up on knee and hip surgeries as covid concerns wane. humana tracking for its worst week of 2022 sofi and piper sandler downgraded to neutral like oppemheimer on thursday. both firms citing the recent rally seeing sofi gain more than 30% this month alone this stock is heading for a week ghisw weekly gain. >> thanks very much. now to our twitter question. which of these three stocks has the most upside left microsoft, apple, or nvidia? i bet you know -- i haven't looked i know what i think. i'll write it down to show you all right. head to @cnbcclosingbell on twitter, and we'll bring you the results after the break. all month long cnbc is sharing pride. sharing stories of corporate leaders with you here is google's head of brand

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let's get now to the results of our twitter question. we asked, which of these stocks hitting record highs has the most upside left microsoft, apple, nvidia nvidia winning with 41% of the vote look at this, dan ives what does that say >> the ai revolution. >> i had a 33% of getting it right. i did not look and nobody told me either. let me be clear. that guy we just talked to, making the bull case for palo alto why he thinks the company's growth is getting started. that and much more when we take you where, dan inside the market zone what if buildings could tell you how they could be more efficient? i'm listening. well, with ibm, you can use software to help you connect and analyze data— from hvacs to elevators to lights.

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prepare yourself we are now in the cnbc "closing bell" market zone. we have guests dan ives is at the bull case for palo alto networks and leslie picker on today's bank sell why you have -- selloff ahead of ke data will be, everybody keith, let us start with you you put out a note a couple of days ago tech extended short term, but far from bubble extremes i could probably find some valuation metrics. some earnings metrics that would put us close to some of those. why do you feel like we're still safe you recently upgraded certain stocks >> yeah. well, first, great to be with you, brian especially, you know, better than 5:50 in the morning like

it's been in the past. >> thank god >> thank god so as far as the overall tech sector, you're seeing the short term basis become a stretch. i started my career during the tech bubble, and when i look at returns and i look at valuations as a whole and aggregate, it's a lot different. we look at the last year, tech's up about 27%, 28%. the year into the tech bubble to the tech bubble peak, we were up over 100%, and we also had multi-years of this. we had to remember tech was down 35% last year and a lot of that rebound is happening now valuations are certainly rich around 27 times on the s&p technology sector, but that's about half of the valuation back to the bubble, and i think what's important somewhat is we had this kind of, you know, ai moment or iphone moment, and i think a lot of corporations now, and even if we have an economic slowdown that we still expect,

we have to invest, and there's a fear they would be left behind and become obsolete. we think the earning trends, and that's for earnings. we'll continue to stay stronger for over the next year >> we talked about it earlier top of the show, keith, and it was cheryl young's stat and i'll probably butcher it. it was, like, 95% of the s&p 500's return was just ten stocks i get it if you own the s&p as an etf, you don't care because you're making money regardless, but man. that's got to be extreme, extreme narrowness does that worry you autt all, ad is there opportunity on the other side buy stuff low and sell it high. >> everyone has been talking about breadth, and breadth has been catching up to the other, you know, those magnificent seven, magnificent eight what we did more recrently, we upgraded it back to neutral at the beginning of the month, and

a lot of the average stock was reflecting some of the concerns, you know, we were as far as the fed and some of the weakness we've seen in the economy. what we did in our portfolios is we actually added to the equal-weighted s&p we have the large multi-cap s&p, and then as far as a sector strategy, we also upgraded industrials a couple of weeks ago, and look at that sector it's make a 52-week high it has some good, secular tail winds as far as defense and infrastructure spending. i think there's rotation longer term for tech, and we have been overweight since march. we would stick with tech, and be able to buy them after searching a big run. keith lerner, always appreciate it and always appreciated you getting up early as well, my man. thank you. all right. now let's go to number two, and get to palo alto networks, dan ives you increased your target from 290 from 255

why? >> palo alto continues to be a table-pounder. they're gaining more and more share within the cloud our checks have been stronger, you know, as the year's gone on, and i think this is really one -- it's not just multiple expansions, free cash flow, and i think what's starting to happen right now -- >> i agree cybersecurity we know, china hacking and russia's doing whatever, but why palo alto networks there's a lot of competition in cybersecurity. >> sure, and they at this point are really getting the lion's share of incremental cybersecurity as we move to the cloud. palo alto when you have seen the share gain, they've flexed their m muscles again and again. what's starting to happen here is this is a story going into its next year of growth and in my opinion, when i look at cyber, we're looking at probably 15% to 17% growth this year in a 2% to 3% spending environment. that's why i view this as a green light to own cyber

even though the stock's risen and many were skeptical to begin the year i view it as a table-pounder name. >> you talk about the cloud theme of cyber, but i assume all software now is cloud. so what is the cloud theme is anybody not on the cloud? >> so there's certain names like a name like a checkpoint or ford net, you know, fordnet is one of our favorites. that's what i would call not as much of a cloud play when it becomes cyber. that's names like z scale or cr crowdstrike, palo alto, what they've become, i don't want to say they're a mini microsoft of cybersecurity. >> okay. >> what i love about it is these free cash flow names start to ram more and more. i think it's underowned and what we're seeing across the board with cybersecurity, with 45% of workloads in the cloud, cybersecurity will get more and more growth, and i think it's going to mean a frenzy the second half of the year. >> would they be a buyer or a

seller >> i think they're a buyer, but i do believe we're going to have a title -- >> palo alto would be the buyer and they're spending a lot of money. they rocket higher and you love it sometimes the buyers don't >> no doubt. i think with palo, they have been tactician-like in terms of the way the team has executed and i think from an investor perspective, this has been one where it's the best of both worlds you have the growth. you have the cloud element, and then ultimately you have the free cash flow story that continues to play out, and that's why in my view, in what we're seeing in broader tech, you came into the year the new york city cab driver was bearish on tech stocks they'll be up 12%, 15% rest of the year cyber, cloud, and of course, ai revolution which i've used more of a 1995 moment playing out not a 1999 moment. >> pivot tal to this company this is brand-new and we've

never talked about it. tesla, they make cars and i don't know if you have ever heard of them. >> i've heard of them once or twice. >> today we have been talking about them a lot because they have been on an epic run. i think they fell yesterday into the 13-day streak. they're up 2% again today. they've added $250 billion in market cap teslarians love their cars we had phil lebeau about byd, a chinese company. they're not in the u.s. and may never come, but probably will. are we missing anything on the tesla story? >> i think it's really call what i'll call an aws moment because what's starting to happen with the super charger network in terms of what we saw of course, with ford and of gm, some of the story oftesla, and i think ai is going to be the next piece is now starting to be realized, and i think ultimately what's really happening is margins are troughing. units in terms of demand in china will hit the year number, and i think a lot of those

bears, they're going into hibernation mode as the stock continues to move higher. >> what about here though? are the sales matching the stock? i mean, i talked to a dealer -- not a tesla dealer obviously they don't have dealers, but a national auto dealer a couple of days ago and he was saying that their channel check suggested that tesla is building i don't know >> inventory is definitely built a little in the u.s., and we've seen the price cuts. the hearts and lungs of the tesla story is the china story that's really the core dna of the growth, and now what we're really starting to see is growth, and we talk about byd and what phil talked about i believe in china they're a shared gainer and i think musk being in china as well just shows they're going to be playing nice in the sandbox in beijing while they continue to build out in the u.s., and i think that's why in my opinion, tesla is going to be a trillion dollar market cap. >> and elon musk was just in the aforementioned china dan ives, good to see you.

thank you. >> thank you not everything was up today. sorry. bank stocks lower and sitting out the rally all week long. leslie picker joining us on that, and the critical balance sheet out after the bell as they cheer, but not for banks. >> yeah. it had been going so well for banks, but broadly lower today as investors continue to digest the news from earlier in the week that a few more rate hikes may be in store. we also get fresh data as you mentioned on deposit levels after the bell today last week's data shows an increase in system-wide deposits the question is will that continue in recent months, banks have been competing with mone funds, were actually about $3 billion lower week over week as of june 14th that's according to ici, and that's the first decrease since mid-april. so the question with today's data is whether that affects the deposit flight toward higher rate alternatives or if it indicates further stabilization. brian? >> all right

so we've got all this data next week you just told us kind of the top line is there going to be one more thing that's more critical to watch than anything else if we are bank investors, frustrated bank investors, what's, like, the most important thing? >> well, believe it or not, brian, we're about a month from earnings we also get stress test in two weeks, and then on the horizon, those rules are expected at the end of june. it's going to be regulation and q2 earnings that investors are going to be very much focused on over the next few weeks. >> listen. launch a new 7:00 p.m. show called "last call", i got stress tested recently and i failed miserably. i want to be clear on that, leslie picker. earnings, big banks. use your crystal ball. any indication, like, how are they kind of looking i could -- stocks are up, but mna is down. >> stocks are up mna is definitely going to be lower. there was a lot of commentary from executives speaking at

conferences, and nii for the regionals does appear to be somewhat limited depending kind of on size here. the bigger firms, the wells fargos of the world for example indicated that net interest income, that's the measure of profitability would be okay, but it's more of the regionals, the superregionals that seem to be looking at having their margins a bit compressed in the current environment although they have been able to kind of enjoy somewhat lower funding costs because they've kept those deposit rates lower, but a lot of that is kind of rolling off as their customers are pursuing higher rate cds. they're seeing competition from other banks, from those money market funds so the whole dynamic is really shifting right now >> all right lesli l le lesl leslie picker, great to see you. it says ad lib. into the close. i'm good at it thank you for the applause,

everybody. they're cheering for the nyc a great week all the major averages they are lower, but a good week, one of the best weeks in a long time for the equity market that's it for us i'll see you on "last call" if i have a voice left. 7:00 p.m. eastern time tonight have a great weekend, everybody. "overtime" is next well, on this quad friday, another up week. that's the scorecard on wall street we're just getting started welcome to "closing bell overtime." i'm morgan brennan with jon fortt. coming up this hour, the latest read on bank balance sheets from the fed. we'll bring you that breaking news as soon as it crosses. >> plus, we'll talk to former morgan stanley chairman stephen roach about investing in china as micron makes investment in that country, and blinken heads to beijing. a news alert surrounding a big rebalanc