movie of the pandemic that made people realize we need to watch in theaters again. my kids are excited about "mi7." >> kernen was talking about it this morning maybe tom cruise will save america or at least save the box office >> putting his body at risk. thank you for watching "power lunch." >> "closing bell" starts right now. kelly, thank you very much welcome to "closing bell." i'm scott wapner live in lake tahoe for the american century championship celebrity golf event. about 90 or so actors, athletes and entertainers are playing in this tournament, owned, operated and produced by nbc sports including colin jost he'll join me later. this make or break hour begins with rally watch, as stocks extend their gains on more positive inflation numbers score card with 60 minutes to go in regulation looks like this. dow has been up all day long

really it is the broader market where the action is. and another new 52-week high for the s&p 500 and the nasdaq led by communication services, technology stocks continuing today their incredible run there is the nasdaq, up nearly 1.5% brings us to the talk of the tape someone at goldman sachs said today they are a. a.p., good to have you here, welcome. >> looking good out there. >> how beautiful is it here? i'm good thank you. >> i love being followed by colin jost, just another person who is better looking and funnier than me. thanks for that. >> there we are. you're neutral u.s. equities why? >> we just did our second half outlook, and as you know, we were bullish on the first half, and kind of i think now it is just harder for us to get there

on the valuations. what we wrote is we see the same probability of 10% upside, 10% downside to get to 5,000 on the s&p, about 10% up where we are today, it looks to me like you have to pay over 20 times the 24 earnings at the end of this year so just hard for us to get there on the valuation front i don't think things are falling apart. early signs of earnings season i imagine you'll get into that and look pretty good, so i just think things slowly erode, don't implode. i can't get there on the multiple side. >> why is the probability the same, do you think, of 10% up or 10% down in some respects, couldn't you make the argument as i said earlier on "halftime," you've gone fromglass half empty market to what i think you could make a compelling case is a glass half full market at this point if you think the fed is done, if you think inflation is coming down, if you think earnings are holding up, the conc consumer is going to hold up

why are the probabilities equal? >> you know, i just think the challenge is figuring out what's going to happen in a second half of '24, a year from now. if we're being very simplistic, the stock market sold off hard at q2 and q3 last year because earnings decelerated three quarters later i think the current estimates are sort of flattish, meaning they don't accelerate or decelerate q2, q3, q4 next year. until i have more clarity for next year, it is a little harder for me to see a clear path for the market i think we said is right in terms of the probability that bear case is lower for earnings, severity of the bear case is lower. but i think what your difference now is you're playing like 15 times in october of last year, playing 20, 21 times now >> when you hear mary daly of

the san francisco fed on our network today suggest that it is too early to say that we can declare victory on inflation and talk about the probability of two more hikes before they're all said and done, do you say, you know, here is a fed that appears it was, you know, way too late in the beginning, and it is going to be way too hard at the end is that a fair assessment? do you think the fed should declare victory at this point and do nothing >> you know, i think there is thousands of people who look at everything and everyone on the fed says and try to create a path i think it is a hard way to make a living what i can do is measure fed fund futures or the perception about rates and compare them to price to earnings ratios for the market the observation i have is that was a very strong relationship for a long time, right, hawkishness was bad for multiples and very recently it is interesting, the perception about dovishness has caused multiple expansion, but any

hawkish commentary has not caused multiple contraction. i think people are just, no matter what they say on the fed, just think we're very close to the end of the cycle, whether it is one more hike or not, they don't care, and as long as the earnings aren't collapsing, that's the current mindset i think that will change, scott, over the second half of this year, but currently no hawkish commentary is causing a multiple contraction. >> you could also make the argument that what -- with what we're seeing in the nasdaq today, it is up 1.5% on in idea that yet another positive inflation print, the market doesn't think the fed is going to have to go even two more times, okay maybe at the end of this month, the fed raises rates one more time but this seems to be a clear bet that the market is making that the fed is not going to do what mary daly or for that matter almost anybody else in that room suggests they still might. >> i think if you flip your

question on its head a little, i like the question and just say, you know, why aren't you more bearish? i think the answer to that is that as inflation comes down, some companies can start seeing a change from headwinds this their margins to tailwinds think about has happened to commodities. the dollar weakened, labor costs probably can't rise at the rate they did my explanation, simple explanation for this breath issue that comes up every day, why only a few stocks work, is because those megacap growth stocks weren't hurt by rising inflation. the gross margins were up in most cases the rest of the companies that were megacap growth had margin pressure so to the extent that some of these things, cpi, ppi coming down, wages peaking, to the extent that can start to moderate, you know, headwinds, maybe that's the case for being -- not being negative. you'll see more companies show some margin progress into next year >> i'll tell you one person who

is not wavering at all in his bearishness, i think it is fair to say that is greg branch let's bring in -- let's expand our conversation, stephanie link is with us of high tower, greg branch of veritas financial group as well. so, we spoke the other day, greg, and you were pretty much unwilling to even change your tune in any -- even incremental way. now here we are, a cpi later, a ppi later, and a couple more days of a stock market that seems to want to go higher are you still unwilling to change your mind >> i did not yet have the data to change my stance, scott and, you know, i'll address two things that were underpinning the bull argument. the first underpinning of the bull argument was that core was going to drop down to the mid2s. we didn't see that and the other part of the bull argument is that housing was going to roll. we didn't see that either. i wish we had. that would have me reconsider my

stance when we have housing up 40 basis points in this cpi, when we lapped the 5 from 2021 and now 3% top line and 4.8% core, i just didn't see a lot to celebrate and i don't think there is a lot in there that the fed will celebrate, which is why you're starting to see them become more hawkish. i think what will happen and this relates back to what adam was saying, i do think we'll see some earnings degradation, not only in the back half, but for 2024 i think earnings for the s&p looks more like 220, 225 you put a 17 times multiple on that, can't get above 4,000 based on the macro views that i have right now >> who said that the core was going to be in the mid-2s by mid-july of 2023 i can't think of a single person who made that prediction >> i'm not going to name names, but joe asked me about it yesterday morning, said that a

noted bull said the core would be 2.5%, this print. we're nowhere near that. unless -- unless you believe -- and it is not that any bear or bull thought we wouldn't have any disinflation at 500 basis points of fed action, just the magnitude of the disinflation, whether it is consistent it is a relief that core only grew by 20 basis points. but core is still growing. and airline did a lot of work in that core number and so when you still have the areas that the fed is targeting growing pretty meaningfully, it is hard to say that they can stop here. if it is hard to say they can stop here, the market is wrong, the market has been wrong before, wrong several times last year so that has to be my position when my -- when my outlook on estimates is meaningfully below where consensus is. >> at what point do you admit you're wrong and the market is right? >> i'm wrong right now i've been wrong for six months hopefully one of the values i've provided is i'm fairly consistent on my views based on the data and the market has been

detached from the macro fundamentals unlike adam, i did not catch this, i did not participate. >> stephanie link, so you have gotten two views here thus far what is yours? is it time to be glass half full at this moment because you think that these really positive reads we had on inflation this week are just the beginning of even more such things >> yeah, it is not just inflation, though, right you look at -- it is certainly cci, ppi, look at the services number really strong we had stronger initial claims the four week moving average fell 7,000 that's good. the atlanta fed wage tracker is running with wages of 5.6% so real income is going higher as inflation is coming down. that's very good for the consumer i think overall the general economy is holding up better that will mean that you see better than expected earnings. look what we did today

look at delta and pepsi. delta had 19% total revenue growth with operating margin expansion. everybody thinks that margins are going to fall. this company just expanded margins. pepsi at 13% organic growth. that's unheard of at a consumer package goods company. so, we're off to a good start. we don't know what the whole picture is going to look like when everyone reports. we're going to have some disappointments, but i think overall, earnings are going to hold up much better than expected. >> adam, when you hear somebody like greg talk as negatively about the market as he has, and it is not like what he says doesn't make any sense inflation at the core is sticky. right? so he says it isthat

>> actually, you know, like when you're a little kid and have the math answer, but they tell you to show your work. our numbers for 2024, we're using $225 in earnings i feel like we may have gotten the same answer on earnings. maybe just showing our work a little differently i think that earnings for next year are going to be at risk i don't see a v-shaped recovery. it is more that there is a drumbeat out there, a concensus view from several of the big firms that ratings could collapse and earnings look like they're much better. i think steph is right, you're seeing good numbers so far and it is hard to get your earnings that low one of the reasons the market is up, that's a legitimate real reason is the probability of the bear case, and the severity of the bear case if one forms are just much different now mid-july than they were on january 1st.

and so in that kind of classic expectation, i'm now assigning a lower probability to the bear case and there is no way if you start the year saying i think the bear case is 3,000 on the s&p, you could say that today. i think your bear case is higher so that's a real reason the market is up the second is, if you look at every economic outlook and equity strategist outlook from a big firm, last year for this year, the words ai were mentioned zero times and we can debate whether the stock is fairly valued and what is the -- where the phrase is being used correctly or incorrectly, but we can't debate there is some actual impact on companies earnings nvidia had the largest upward sales of any megacap company ever the part that is at least hard to justify is the multiple now being multiple times higher than it was nine months ago. >> clearly one of the toughest

questions is going to be where to be over the remainder of the year, steph. whether it is ride the megacaps, which you don't have as much exposure there as others do, or you lean more heavily into cyclical names and more industrial stocks and some of the ones that are more tied to an economy that you say looks more and more likely that it could have a soft landing. it brings me to a new position you have in 3m, which seemed to have turned a bunch of pages over the last several days in how people are viewing this company now in the prospects going forward and it sounds like you're one of them >> yeah, well, a stock has certainly lagged and lagged for years, scott it is down 15% year to date. it trades at 12 times earnings and i do think that the progress on the water contamination is a very good start. there is still a lot they have to get through with regards to settlements and the earplugs issue as well. but i think you're at least at the right point, right now, where expectations are really

low and they're starting to make progress there that was a very big overhang for the shares in addition, in the past, when settlements have had occurred at other companies like bayer an monsanto, those stocks tend to stabilize and move higher. they also have a restructuring program. i like restructuring stories and cost-cutting stories and they're going to spin out their healthcare business at the end of this year or early part of next year. you know i like spins as well. i think very low expectations. by the way, there are no buys on the sell side for this stock there are 20 holds and sells so i like that risk/reward a lot too. >> some of the commentary earlier in the week was finally, some good news you added the target as well, which i find interesting too lastly, let me give you the last word if i might. >> sure. >> what would you buy within the equity market right now, even as negative as you are, for the overall direction of where you

think we could go. there has got to be something out there that looks reasonably attractive to you that has a valuation that is more attractive to you than some of the areas that have gotten as you would probably suggest ahead of themselves. >> yeah. look, i think both stephanie and adam hit it on the head to some extent if i believe that earnings will contract throughout the back half and throughout 2024, what i'm looking for are companies that do have some margin expansion potential and that will grow earnings one of the few safe spots that earnings will grow that remains large cap tech. adam talked about ai the video is different than everyone else in that they're at the infrastructure level and they're seeing real meaningful change of their business now because of ai versus just talking about it so, i think multiples won't matter for those stocks that can show margin expansion and earnings growth next year. and i think that we will see

breadth renarrow around the names as we start to see the macro environment deteriorate the way i think. there are other sectors as well like healthcare, we saw in that cpi report, one of the areas where inflation remained because they get to pass costs on. any company that can pass on costs, maintain margin, and can grow earnings regardless of multiple, going to see a tailwind at the end of the year. >> all right good having you, everybody i should note, we have the s&p and the nasdaq at session highs as we speak right now. new 52-week highs for them as well greg, thank you. steph, adam as well. see you back in new york. >> great to see you. >> all right to our twitter question, we want to know will stocks hit a new record high in 2023? you can head to @cnbcclosingbell on twitter let's get a check on some top stocks to watch as we head into the close. kristina partsinevelos is here

with that. >> let's talk about shopify joining the ai rally right now the e-commerce company announcing a new ai chatbot assistant called sidekick to help store owners with questions like sales trends. shopify joins the likes of zoom, dropbox, alibaba who launched their own ai assistants. shares of auto insurance firm progressive are down double digits, 12.5%, sales were up because insurance is more expensive these days but fixing cars is also getting more expensive pressuring profits top line growth slowed for this company, and progressive is setting a negative precedence for all states travelers and kemper, all the names are down 1.5%. scott? >> kristina, thank you. we're just getting started from lake tahoe. up next, the big bank setup. jpmorgan, citi, wells, reporting their results tomorrow we hear from mike mayo today he has the key factors he says, could impact those earnings.

we're live from beautiful lake tahoe today. you're watching "closing bell" on cnbc.

i was told my small business wouldn't qualify for an erc tax refund. you should get a second opinion from innovation refunds at no upfront cost. sometimes you need a second opinion. all these walls gotta go! ah ah ah! i'd love a second opinion. take the first step to see if your small business qualifies.

bridgett is here. take the first step to see she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright. xfinity rewards creates experiences big and small, and once-in-a-lifetime.

we do have late breaking news to share with you this afternoon. st. louis fed president james bullard is stepping down effective next month he's leaving to take on a new position at purdue university that starts on august 15th he's been a member of the st. louis fed for the last 33 years.

and national executive search firm being hired to assist in finding mr. bullard's replacement, according to the st. louis fed. big banks are in the green today ahead of the unofficial start to earnings season jpmorgan, citi and wells all reporting their numbers tomorrow morning. bank of america, morgan stanley reporting next week along with a slew of regionals. let's bring in top bank analyst mike mayo of wells fargo ahead of all that. and it doesn't seem like there is, you know, much expectation that we're going to hear a lot of greatness out of these numbers is there, mike >> you know, second quarter bank earnings, it is a battle i term it the three rs, rates, recession, and regulation. the battle with higher for longer interest rates is going against banks and that's why estimates have been going lower for almost all the large cap banks, except for jpmorgan, by the way, this year the battle with the recession, it is still potentially to come. i think that will be a positive story, i don't think you'll see

too many signs of a recession from the banks and the third battle is regulation and the new rules that are about to be put in place and just had the stress test and only a few of the largest banks for buying back stocks will not be doing it. so, rates, recession, regulation will be top of mind and that leads to a fourth r, which is realism, so i expect most banks to guide for lower net interest income or interest rate driven banking revenues, just through to higher funding costs, which are taking a toll. now, having said that, these stocks have derated by 25% over the last three years and, scott, you're talking about this high stock market, the pe on the stock market was 23 years ago. it is 20 times today and the bank pe has gone from 12 to 8 that's getting to kind of ridiculous levels, especially if we're not having a hard landing. so our top pick is jpmorgan, goliath is winning, the larger the bank, the more sticky the

deposits, the more they're equipped for a resecession and less regulatory changes to come. some of the other big goliath names that had regulation for a decade, the sleeper pick is state street, scott. they're a trust bank or banker's bank and, you know, the average stock price globally has gone up 8% in the second quarter that should help the likes of state street, which also by the way is buying back over 15% of its stock this year. state street had a terrible first quarter, the stock was down 7% after that day we think that state street has a chance to at least be better than the first quarter and even if it is not good, they'll be in the market, i think, buying back their stock. and then there is citigroup, which is proving it is not your parent's citibank. this is a company that is outperforming the regional banks, outperforming many of the european banks, outperforming certainly credit suisse. it won't be perfect, i don't

think their guidance was very good for expenses or capital markets. what will look good is that they're showing resiliency, despite some of these headwinds that have hit the industry and i do think we're in the seventh inning of these downward earnings revisions that i know a lot of investors say once the negative revisions are done, and i think you're going to get more over the next week, week and a half, then more people will be ready to step in and as you can see, people are already buying these banks before the earnings. >> all right well, you gave me one answer with your entire view off one question so we're going to leave it there, mike, thank you that's mike mayo we'll see what happens. up next, making the case for caution. american century investment cio multiasset strategies mackyies t the biggest risks he sees in the market that's after the break

do you ever worry we'll live forever? no, it's literally never crossed my mind. what if we live to like 100? that's 35 years of being retired. i don't want to outlive our money. and i have been eating all these stupid chia seeds! i could totally live to be 100! why do i keep taking such good care of my- since we started working with empower, we're able to get all our financial questions answered, so we don't have to worry. so you never- no. never. join 17 million people and take control of your financial future to empower what's next. start today at empower.com we planned well for retirement, but i wish we had more cash. you think those two have any idea? that they can sell their life insurance policy for cash? so they're basically sitting on a goldmine? i don't think they have a clue. that's crazy! well, not everyone knows coventry's helped thousands of

people sell their policies for cash. even term policies. i can't believe they're just sitting up there! sitting on all this cash. if you own a life insurance policy of $100,000 or more, you can sell all or part of it to coventry. even a term policy. for cash, or a combination of cash and coverage, with no future premiums. someone needs to tell them, that they're sitting on a goldmine, and you have no idea! hey, guys! you're sitting on a goldmine! come on, guys! do you hear that? i don't hear anything anymore. find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com.

welcome back to "closing bell" from lake tahoe. stocks building on gains after

back-to-back better than expected inflation reports our next guest, though, is staying cautious on risk assets. joining me here in lake tahoe is rich wise, american century investment's cio of multiasset strategies good to see you. >> good to see you, scott. >> if you're cio of multiasset strategies, do you see many assets that look better to you today other than stocks? how do you see the landscape >> we see a lot of assets, including fixed income at least as good as stocks certainly on a risk adjusted basis. >> still because the argument over the first part of the year and certainly most if not all of last year was bonds are better than stocks, cash is better than stocks, look where rates are, you get a better return in cash equivalence and thing like that, that hasn't changed? >> let's go back a few steps here if you look back to the peak back in august last year for stocks, peak to peak, peak to today, stocks are up about 5%, 6%, right about what cash has

done over that time period and that's not even getting into the details about the, what is it, the magnificent seven, seven wonders of the world without those stocks, unless you're 25% weighted in those stocks, you didn't get that return anyway. i would still say looking back over the last 12 months or so, cash has outperformed stocks certainly on a risk adjusted basis and given what stocks have done today, pe ratios up at 18, 19, very optimistic, it is not that we're ignoring what stocks have done, it is just heavily discounting it, what stocks have done in the past, there is no way for us on what they're likely to do in the future the economic stats not looking good. >> you don't think the future looks brighter for the equity market because the environment and the economy doesn't look -- >> i don't think we're out of woods yet. we have inflation, granted good news recently, hope it is a solid trend, but, still, a little too high. manufacturing statistics as bad as they were, back in '08,

right. labor market, last shoe to drop, haven't seen it yet. i don't think the stock market being up year to date 15%, 20% denies the economic cycle. after that maybe we'll get a little more excited. >> do you think the strength of the labor market and the apparent, you know, strength of the consumer still defies some of the negativity that you're seeing in other parts of the economy? manufacturing has been weak and in recession for a while now. >> as was housing. and hopefully the -- >> which has turned. >> yes, it is arguably starting to turn, right but there are leads and lags in the economy as we all know it takes weeks if not months for monetary policy, fiscal policy to feed through or factor through the economy. i don't think we have seen the worst of it yet. we're holding out in cash for the most part. we'll wait for one more dip. >> so, is it only a dip that changes your perspective and

when you can say, okay, for the first time in at least your mind, in a long time, now equities look like a better bet than that 5% you can still get -- >> we'll give it one more shot here we're still holding out in cash at the margin. we're not out of stocks, we're leaning in cash, waiting for one more pullback and then we'll find stocks more attractive. right now, prudent caution we think is the word of the day. >> the last view on as you said the -- we call them the magnificent seven. we have an index that tracks those stocks, it has been remarkable what the gains have been do you see that persisting and does that sort of top heavy nature of the market make you even more uncomfortable about the market >> what i would say is we are not overweighting those tech stocks at least the megacaps they have done very well we prefer to be positioned in the near term. more defensively by the way, i looked it up, magnificent seven, the 1960s movie, all of the seven now dec deceased i don't know what tells you. >> they had long and prosperous

careers and lives. rich, good to see you. >> thank you, scott. >> rich weiss, american century investments. up next, we're tracking the biggest movers as we head into the close. we'll bring you the names to watch just after the break and be sure to catch nbc's coverage of the american century championship friday through sunday on the networks of nbc. the golf channel, peacock as well plus, july 25th, join me in los angeles as cnbc and board room team up to host game plan it is a high powered event bringing together the most influential leaders across the sports landscape for details, go to cnbcevents.com/game plan we're right back

flex alert! flex alert! a power outage is looming. that's just alert, he's always getting worked up about something. flex alerts notify us of preventable power outages. that way we always know when to help stop one. ok flex, just drop some knowledge on me again. oh, ok i will - i'll turn our thermostat to 78... i'll unplug the blender. the hair dryer. - my blankie? - yep! - let's talk about it! - nope. ooo, we can save the laundry til' the morning! oh, yes please! oh! little things like this help save our power and help save us from outages. with flex alerts, the power is ours.

breaking news out of hollywood this afternoon the actors union voting to go on strike basically halting production across hollywood members of s.a.g./aftra will join the 11,000 already striking film and television writers. media stocks holding steady at this very moment on the news as we look across the landscape at names like disney and paramount, warner bros. and netflix we're live today from the american century championship celebrity golf tournament here in beautiful lake tahoe.

joining me now is one of the top athletes competing in this week's event, winner of an astonishing 94 international tournaments, widely considered one of the best of all time, swedish golfer annika sorenstam. nice to see you again. >> likewise. great to be here. >> you finished your last u.s. women's open ever at pebble, last week. that's amazing you had an amazing career. >> thank you thank you very much. yeah, it started, my first win was a u.s. open in 1995. and then, you know, i finished full time in 2008 and nibbled in two of them. pebble beach was the cream on the top. >> what has been the secret to your longevity and success >> i love the game i'm super competitive and very disciplined, very focused and overall wanting to push myself and see how good i can get. >> yeah. that's a good segue in terms of you tried to push yourself as far as you could go. now trying to push others to see how far they can go in a sense with your foundation which you started in 2007.

can you tell us about the efforts you're doing there >> the annika foundation, and we're trying to inspire young girls from around the world. we have tournaments, over 60 countries represented in these tournaments and we raised more than $8 million to give back to the game of golf many of the players you see on top of the lpga, the korda sisters, or mention a few of them, maria fassi and -- but it is fun to see the next generation blossom and be able to provide playing opportunities and because i wouldn't be here if it wasn't for golf. >> you give it $8 million back to junior girls golf over the last 15 years. congratulations on that. >> thank you >> girls are still fighting for equal pay, we see it in all sports the women's world cup is around the corner they achieved equal pay. the pebble beach purse for women, $2 million, men's purses, $4 million, maybe more for some of the most marquee of events. >> yeah. we're going to keep pushing. we're going to keep pushing.

nice to see the purses -- the pebble beach, usga stepped it up, that's a big step. i think playing the venue at people beach was a big success, big winner in this whole thing and it is going to grow from here we have to keep pushing, keep being out there and fans go watch women's sports they work hard, they're committed, disciplined, they're fun to watch and they're good. >> you're the most popular female golfer for so many years because your dominance was extraordinary. how when you were playing, if at all, did you think about what life after golf was going to mean from a entrepreneurial or business standpoint? >> i was so focused on golf. that's all i cared about sleep, eat and practice golf. >> it showed >> but then you realize there are other things in life i got married to my husband, mike, and we have two kids, eva and will i have a entrepreneurial spirit. we're women-owned, i continue my

hard work, my tis paldisciplined we're selling here in nevada and we're talking to distributors. >> you launched during covid. >> yes. >> what are the challenges that came with that. >> we had a lot of time. we were drinking and eating and having fun my husband has a lot of allergies. i said, why don't we mix some drinks and make them healthy with good ingredients and a lot of products on the market, but i didn't like any of them. i looked at him and said, hey, why don't we make our own. he said, you're such a busy bee, we don't kneeneed more products therefore the name, busy bees. >> what is the outlook for a very competitive marketplace >> the only thing i can compare it to is golf, it is very competitive. i like to say i'm a winner, i work hard, i'm dedicated it feels like we're doing well i don't know what to compare with but my goal is to shoot 59 in that business. >> i'm sure you'll get there, knowing your past. thank you for spending time with

us annika sorenstam, best of luck out here. >> thank you. last chance to weigh in on our twitter poll today we asked will stocks hit a new record high in 2023? the results aftethe r break. "closing bell" back from tahoe right after this

(bobby) my store and my design business? we're exploding. but my old internet, was not letting me run the show. so, we switched to verizon business internet. they have business grade internet, nationwide. (vo) make the switch. it's your business. it's your verizon. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term

policy! find out if you're sitting on a goldmine. call coventry direct today at the number on your screen, or visit coventrydirect.com. this is american infrastructure, a prime target for cyberattacks. but the same ai-powered security that protects all of google also defends these services for everyone who lives here. ♪ dude, what're you doing? i'm protecting my car. that's too much work. weathertech is so much easier... laser-measured floorliners up here, seat protector and cargoliner back there... nice! out here, side window deflectors... and mud flaps... and the bumpstep, to keep the bumper dent-free. cool! it's the best protection for your vehicle, new or pre-owned. great. but where do i---? order. weathertech.com. sfx: bubblewrap bubble popped sound.

15 minutes before the closing bell kristina partsinevelos is back with us with the key stocks she's watching kristina >> we got to talk about coinbase this stock is it skyrocketing after a partial win for crypto

ripples laps crypto token wasn't an actual security when sold to members of the general public, but not institutional investors hence the partial win part of it but coinbase is fighting the s.e.c. about its unregistered token sales and this ruling could bode well for its own regulatory battles that's where the stock is up over 24% some bad news, some people might be having internet trouble viasas said an unexpected event could affect their satellites. no details on the actual issue, but they said they're working on it and that's why that stock is down almost 29% right now. scott? >> thank you kristina partsinevelos the results of our twitter question will stocks hit a new record high in 2023 the majority of you said yes, they will. near 65% wow. all right. up next, alphabet's ai push. that stock is soaring in today's session. got the details behind the move and what it might mean for the other big tech players at al do that next thnd much more

you know where we're taking you next, in the market zone td ameritrade, this is anna. hi anna, this position is all over the place, help! hey professor, subscriptions are down but that's only an estimated 15% of their valuation. do you think the market is overreacting? how'd you know that? the company profile tool, in thinkorswim®. yes, i love you!! please ignore that. td ameritrade. award-winning customer service that has your back.

td ameritrade. - it's polite to thank someone when they do something nice for you, isn't it? well, how about when they do something brave for you? let's show veterans our gratitude. ask your local veterans affairs office how you can help. the more you know.

what do you see on the horizon? uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today. power e*trade's easy-to-use tools, like dynamic charting and risk-reward analysis help make trading feel effortless. and its customizable scans with social sentiment help you find and unlock opportunities in the market. e*trade from morgan stanley.

with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley we're now in the "closing bell" market zone. mike santoli here to break down the crucial moments of the trading day. plus, the potential abc sale, and what it could mean for disney's future. and steve kovach mike santoli, what is your final thought today as we count down to the close and stocks having a good day today.

>> levitation mode in the last couple of hours, scott market is definitely hunting for remaining pockets of caution people have been disbelieving in the upside case. that being said, short-term, you're getting stretched we might be hitting the near term overshoot zone. just in terms of how far the index is coming in a short period of time we have gotten the positioning swung around to the bullish end. i came into the month saying looks like more of a two-way market, feels like the embrace of the soft landing scenario is getting complete and now i think even more so s&p is up by 2%. less than 2% this month. we'll see where it goes from here it is only, though, 6.5% shy of that record high from january of last year. so, you know, you've been kicking around is that possible? i'm never going to sit here from any index level in any market environment and say the market can't go up 6.5% in five months. if we get too close not to test it and probably not on this run, though >> it would be pretty extraordinary, though, you're still getting this hawkish fed

talk, daily on our network today, still can't declare victory, maybe have two more this year. the market is not paying attention to that anymore. >> the market knows that's exactly what they have to absolutely say and because of what's already in the books in terms of how much the fed has tightened, how slow they're going right now, all the data that has come up behind it, we know that, you know, that's the rhetoric and the party line. and it may or may not actually play through if it does, so what. 50 basis points over three months, we can shrug that off. the fed is going to go too far, probably has already gone too far. not the next basis points that matter that said, it is the same economy we had six months ago in terms of gdp, the same expected earnings level everything is -- nothing really changed as much as perception of the downside risks and where we are in terms of beating inflation. >> i want to get your thoughts on disney. the shares are just slightly higher today after ceo bob iger

sat down with david faber in a white rafrning conversation this morning. one topic, the potential sale of what mr. iger called noncore tv assets including abc listen. >> they may not be core to disney, yeah there is clearly creativity and content they create that is core to disney, but the distribution model, the business model that forms, the underpinning of that business and delivery great profits over the years is definitely broken. and we have to -- and we have to call it like it is and that's part of the transformative work we're doing. >> mike, what is your reaction seems like the writing is on the wall when it comes to this >> an acknowledgement of the structural decline and overhang on the stock that people have been trying to sort out with disney for a while i think the thinking and saying for some time that, look, disney has reduced the cost embedded in things like the broadcast network. for 20 years now ongoing process, tried to do it

at espn. feels like there is no next act for the distribution side. might as well take the medicine, separate it out, but become a pure content creation company and direct to consumer along with that. it is sort of painful, it is a lot of suboptimal options that they're dealing with at this point. but i do think if they say we are an entertainment direct to consumer and sports media company, it at least cleans up the story and we'll say, it is earnings estimates have been coming down. evaluation is neither here nor there, tough to see it as an immediate catalyst, but probably a grudging management measure that needs to be considered. >> what is your take on this, that the ceo succession issue, now we learn he's going to stay for a couple more years and i'm sure people are, like, maybe it will be a couple more after that >> yeah. >> they can't seem to find the person they want that they being the board, i suppose, to take over for bob iger. >> right and i think even more so in the

current situation that disney and the industry find themselves in right now, you have to sort out the hulu situation you have to figure out exactly what the core of the company is. theme parks are always going to be part of the core. i should have mentioned that as well it seems like that much tougher a time to be spending the next six or eight months, basically doing a ceo search and succession search. i don't think that anyone is sorry to see it happen in this way. but it does leave the very legitimate question of exactly how they're going to execute this succession process. when is it going to be the right time >> yeah, good stuff. steve kovach, alphabet, what a day, now 5% now. maybe people wrote this company and its ai aspirations off too soon, thinking that microsoft was going to grab the whole pie. >> yeah, this one is interesting, scott they're up about 4.5% today on what it is calling biggest extension of its barred ai

chatbot. this is the product that google rolled out after microsoft and open ai stole the early headlines with chatchatgpt bard is now available in more regions. they add the option to change the style of response, simple, short or long. they added the ability to upload in images so you can ask bard to give you more information about the picture or suggest a caption. chatgpt has major backing from microsoft. with today's moves, alphabet and microsoft are both up 40% year to date, outperforming the s&p >> we'll see what the next move for microsoft is because i feel like you're going to get this continuous anything you can do, i can do better as it relates to ai, steve. >> but it is not just that not just doing tit for tat feature thing. it is also who has the monetization plan and right now it is microsoft. microsoft in addition to rolling

out new features for its chatbots has plans to sell it to enterprises and so forth we have not seen that yet from google that doesn't mean google isn't going to unveil theirs sooner than later, just means they're still behind here. >> yeah. thank you for that steve kovach mike santoli with just about two minutes to go in the session it is, i'm glad we ended there with alphabet because it is about tech and com services. nasdaq the strong suit for most of the day doesn't seem like that story wants to end anytime soon. >> no. certainly if you're looking at where most of the dollars worth of upside are coming from, it is that same story. i don't think that's necessarily has to change, we're talking about a broadening out of the market it doesn't mean like discreet dollars running from the big popular momentum names back into everything else. as long as everything else doesn't go the other direction it seems okay for now. again, though, if the s&p is getting a little bit stretched, the nasdaq is that much more so. so there is no doubt that, you

know, we have the bulls in control, and people are very slow at this point to sell into it because they're saying we have an uptrend now. the s&p is up 30% from the intraday low nine months ago people are playing with more house money. the psychology has changed it doesn't mean that the earnings picture and the economic backdrop have changed very much. i'm sure at some point the market will go in search of something to be afraid of or something will come along. for right now, it seems as if the self-fulfilling stories are there. i think it is important that you have names like alphabet that, yes, they're looking like they're on this great run, but they were more expensive, you know, a year and a half ago, so you can cover yourself with that idea that you're not paying absolute top dollar maximum valuation for these stories that everyone is now all of a sudden energized about. >> talk about things that are coming along, the banks are coming along, right? front and center tomorrow morning. i don't know if that's the thing

that brings people to some level of reality check on where things are. what do you think in. >> it is going to be worth asking the question if the markets' verdict on where we are in the economy, soft landing, fed is almost done, if that's true, the banks shouldn't be this cheap so one or the other probably has to move in the other direction we'll see which way that goes. >> yes, we will. mike, thank you. that's going to do it for us dow goes out with a gain nasdaq, big winner that does it for us. i'll send it into ot with jon fortt. strong day on the s&p as well that's your score card on wall street welcome to "closing bell: overtime." i'm jon fortt. morgan brennan is off today. sofi ceo anthony noto joins us from sun valley. his company's stock catching a downgrade from morgan stanley today, which sofi should be valued luke d like a bank. we have