people out there, tell me if you've used this does it speed things up? my current is a night mayor. >> i use clear at the airport, but have to use my thumbprints it takes a little while. we'll see. >> i like facial rep on my phone. hater until i used it. >> thanks for watching "power lunch," everybody. >> "closing bell" starts right now. thanks welcome to "closing bell." scott wapner post nine add the new york stock exchange. surging dow, ninth day in a row of gains raising the question whether sectors lagging will soon lead. ask ed in a moment remains bullish on the market and is here at post nine at the new york stock exchange. meantime, score card with 60 minutes to go in regulation. health care, energy, industrials best areas today names like j&j, ibm, boeing,

banks leading the do w's continued raise. netflix, and s.a.p. dragging down near 7% still on major averages since early 2022 takes to us our talk of the take rally itself why saying staying power joining me sitting here at the stock exchange welcome back been a minute since before covid, you said, since you've been in the building. >> yes. >> good to have you here in-person. >> yes, sir, indeed. >> why does it have staying power? >> not having a recession. we've had sort of a rolling recession hitting different industries at different times. talked tab before. i think it's going to roll into the commercial real estate market, but i don't think it's going to take the economy down meanwhile, consumers, starting to see wages going up in real terms. inflation adjustment see how the strikes pan out. all in all, real wages quite good for the onsumer. >> talk about evaluation. >> sure. >> tell me why the valuation now

in the s&p, historical average makes sense? >> well, historical average is 15 right? just about every measure of macro. >> where are we? at 19. >> 19.5. >> okay. >> and something like the, the mega gap in stocks account 27% of s&p 500. multiple of 20 people like to pi for those type companies and not going away not the kind of stocks that imploded in the tech wreck of 1999, 2000 these are real companies that are making a lot of money. so i think they'll remain large and so i think we have to account for that in the valuation calculations. >> someone says market's too rich overall relative to where earnings are and relative to where the economy is yes, economy hasn't rolled into recession, you said. nonetheless, someone says that, what's your pushback

>> that the market doesn't discount who needs it today. discounts over the next 12 months analysts giving assessments for next year already. market looking a year ahead and so much depends on the economy i think the economy is going to be, earning is this year 225 a lot lower numbers for this year out there then i think next year's 2 50 year after that 270. with those numbers, ratio multiple giving you 20 instead of 15, picking mega cap impact i think we could see the market continue to move higher. >> some suggest it's too early to sound the all clear you have lofty earnings projections. >> i'm not saying all clear. not saying there aren't any ricks. in the same camp as the goldman economists are we're talking about 75% like not

have a recession and 25% risk of recession. we're not -- i don't think any of the recession forecasters, any of the, no recession forecasters are predicting it's not going to happen at all i'm on the watch out for it. >> like a de facto all-clear in some respects if you think earnings are really going to be that high? can't have one without the other? >> i know. look, basically giving all-clear late october of last year. but october 12th was the low had a great rally since then that was then. as you said, this is now we look forward to my opinion is that the economy's going to do surprisingly well and so will earnings. >> today is a good kind of example of the broadening of the market a bit. >> correct yeah. >> is pulling back, it's doing that a bit today an lagging seconders do well of late. transports at heiss.

banks finally woke up and more cyclical areas staying power, do you think? >> yeah. >> catch-up going to work? >> reflects underlying fundamentals i'm a fundamentalist i do realize some of the technicals are looking as though the market needs correction. if a fundamental perspective financials are doing well because we had a financial crisis in march and that dissipated pretty quickly. the fed dealt with it and banks are reporting decent earnings. then with the rest of the industrials, this is the first time we've ever really had fiscal stimulus before a recession. one of the reasons we're not getting recession. usually fiscal stimulus cuts taxes or increases spending after recession occurred this time around so much spending coming from the government a lot of that will affect interest structure companies. >> different this time >> fiscal policy different this time empir empirically, amazing up 500

basis points and economy still doing well then again, the economy's been resilient and remains resilient. >> in other words, i suggest, or ask you if the different this time, such a level of strength and stimulus going in. >> yeah. >> maybe it was different on the front and it's different in the back >> could be. it could be. definitely could be. there's still -- jamie dimon is talking when consumers run out of excess savings the consumer will retrench. they retrench an economy, a recession. aware of that. i think we all are but i don't think that's taking the economy down. >> also must not think it's going to happen. you can be aware of it two-thirds of the economy rolls, you got a problem. >> offsets that's the labor market remains tight. i think that wages are going to continue to rise faster than prices and baby boomers like myself, 75 million of us net worth $75

trillion a lot of my friends retiring i'm not. what do they do all day? spend money. there's a lot of that going on >> what do you make of what's taking place in tech that make you any bit nervous about -- you think those valuation are justified? multiple expansion seen there? >> started out the decade talking about that you have, 2020, roaring 2020s. didn't take long to look totally delusional had the pandemic we had the economy getting better i'm feeling good about that outlook for the rest of the decade i think technology is going to make a huge difference to productivity technology solves problems and biggest we have is a labor shortage i think it will soclve that problem. it's a win-win situation. >> you think s&p can see 5400 end of next year

>> next year. >> and 5800 bey end of '25 >> right. >> technology driving it towards the lofty numbers? >> i think technology is part of the story, but every company has to become a technology company in other words, even if they don't make the technology they have to use the technology to improve the efficiency of what they do. so i think technology becomes a very big factor for the economy overall. >> is there an area of the market you just don't like at all? >> well, you know, at this point, i'm not too crazy about consumer staples because i think the economy is doing better. not exactly cheap. utilities are basically bond circuits i can't get excited about them i think bond surges will stay here a long time. but health care's been an underperformer. >> sure has. >> i think due for a bit of a run. financials underperformer. due for a run. i think it's going to broaden

out. >> all right bring in stephanie link, cnbc contributor of hightower to join the conversation you heard what ed had to say here that this has staying power. you agree? >> i do. i actually agree with ed on almost everything he just said you were talking about the consumer and we can cite of a the various government data we get tell you, the economy's data and with the economy commentary especially banks suggesting the consumer is just fine, you heard sink kronny suggest and vulnerable given their mix pnc yesterday saying same thing. jpmorgan, credit card loans at 18%. wells fargo growth credit card loans of 13% both of them talked about not only the consumer being strong, small and medium sized businesses i'm living to what companies

have to say and then look at the fed's financial accounts in the first quarter, as of the first quarter, plus current asset prices household sector wealth is at $157 trillion. a lot of tailwinds to the consumer and they've hit it basically on the job market. initial claims today far from recessionary and very strong, a lot of momentum. the consumer we talk a lot about. said it before two-thirds of our economy is a consumer rooting for them and i think manufacturing side the economy is bottoming pmi's are basic and regional data still stirnks but less bad i think reshoring, onshoring theme and electrification theme and energy transition theme are very much tailwinds for manufacturing sector over the long term. >> you mentioned positive commentary, what the companies are saying and what you're living to. what about what asp had to say

lowering revenue forecast because of slowing demand taken a lot of cloud software names down these stocks along with chip stocks and other areas of tech outside of the magnificent seven have done incredibly well. some argue a little too well. >> have done too well. i'm underweight the group. their pockets within technology are attractive i don't think ai is a flash in the pan. mackenzie has a $4.4 total addressable in the market by 2020 for ai. ahead of themselves bought great theme. cloud isn't going anywhere talk about ibm, but red hat group 11% in quarter for ibm nice growth. slowing from mid-teens we saw but healthy and a trillion dollar marketable address by end of the day talking about security all the time favorite sector within tech. stocks are not cheap by any

means. doesn't mean buy them here wait see, get a pullback. growth end of the day is substantial. >> ed, why aren't we more worried what's happening or better said not happening over in china used to be that china catches a cold the world gets sick. >> right. >> now china's recovery hasn't been anything close what people expected it would be in part commodities and some weakness there reflective of that why doesn't the market care? >> i think what the market is focusing on that china's economic weakness is translated into deflationary prices over there. ppi down cpi zero and a decent correlation between the ppi in china and ppi in the united states and i think we saw surprisingly low inflation rates for the ppi in latest numbers. a slimmer chinese economy kept the lid on inflation on a global basis in terms of prices, oil

prices, and the market is focusing now on inflation. but expect in that regard is better than unexpected user. >> inflation better than expected trumps. almost everything. you bought las vegas sands this morning. in the wheelhouse. china's fears, worrying about macao and what's happening there, or not. >> yeah. and las vegas sands is really more the consumer and the macao. macao about to hit ds stride growing market share 30% in the quarter yet had 13% of rooms out of service only 50% of airport volume just match when those improve and macao gaming revenues up to 97% from 2019. i think you still are going to see material upside as you have kind of their economy on the consumer side normalize. the fact on just overall china,

saying on a conference call today china, their result in china a lot stronger than the headlines and commentary is out from -- from other parts, other data, other data points. i thought that was an interesting comment from them. we haven't heard that yet. wait until we get some industrial companies to hear what they have to say about china. i'm in the camp. i like china and like reopening but the consumer side that like. >> yeah. ed, looking at areas of the market that have been doing well. >> right. >> say in the last month which are more tied to our economy here. >> right. >> things like small caps. russell 2000 up 5.3% in one month. financials, xlf up 7%. these trades what do you think about? small caps, midcams. generally sensitive lead you in way down and out way back? >> usually small and midcap

stock doss quite badly industrials are worried about a recession. now as people are getting more comfortable, maybe that's just not going to happen and i wish even started to outperform talking about valuation before very cheap compared to the s&p 500. talking about 13, 14 forward pes. definitely opportunities but moving moving fast. industrial small cap, mid caps all-time record highs. >> steph, do you think banks bottomed bank stocks? stock reaction has been i think quite interesting. the last few quarters these companies reported stocks have not performed all that way even with now results that in some cases would be deemed mixed, the stocks largely reacted well >> yeah. well, i mean, expectations were really low sector lagged all year pretty much valuations, some of these big banks, got below book value. bank of america .9 times --

jpmorgan 1.2 usually two times booked levels are strong. valuation down and continue to benefit from net interest income higher because of the yields curve. interest margins hurt, but i think more than offsetting that with higher nni, expenses coming down by the way, we talked about this on "half time" the other day morgan stanley ceo talking about investment and capital markets bottomed four to six weeks ago really believe that and you know i do you want to own the capital markets exposed banks. morgan stanley, goldman sachs. goldman sachs, terrible quarter. stock is up since then and bank of america market shares yeah certain pockets within financials that bottomed very least more upside to go from here. >> and ed, last word written off the fed as a risk, market doesn't really seem to care it assumes that in a week or so

the fed's going to raise again even if it goes in september, the market doesn't seem all that concerned. is that the biggest risk underestimating what still might happen with policy >> i see your point, but i don't necessarily -- not particularly concerned the fed suddenly will become a big issue for the market the market has seen 500 basis points in the fed funds rate and resilient. another 50 basis points won't make much difference to the overall economy. >> leave it there. good to see you back in-person and joining us later in "the market zone" stephanie link. twitter question what lagging sector in the market is about to have a big catch-up trade health care, energy or financials go to the website to vote. results later on in our -- just getting started. drop in tesla shares dragging down nasdaq 100 overshadowing record revenue

emj's eric jackson staying bullish and joins us to make his case for sticking with that stock. bears have it all wrong. also owns netflix. find out if he's doing anything with that position shares down today more than 8% a drag on the nasdaq live from the new york stock exchange you're watching "closing bell" on cnbc.

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we're back tesla and netflix dragging down the nasdaq in both sessions. stocks down close to 8%.

tesla down 10% now my next guest owns both and bullish and tech overall bring in emj's erick jackson emj capital good to see you. welcome. >> you, too, scott. >> tesla, reaction to a stock down 10% >> stocks on an enormous run ai and all for their model, long tesla backed in early may at 168. stock touched 300 i think dap or two ago and giving something back today basically back to beginning of week or end of last week i think it's a blip. same with netflix. both conference calls really strong things are heading in the right direction. and in my opinion, key metrix are -- metrics are moving in the right direction. >> you don't care about the fact musk seems intent putting growth

over profitability at this particular time? doesn't bother you at all? >> he's playing from a position of strength. so all the bears on tesla, all year, they've been crying how these price cuts are a sign that nobody wants these cars anymore. that the bottom's going to fall out and the cars through the floor. better than growth margins 18.had1 18.4%. like to see ford and gm. ford and probably many price cuts the fixed costs and labor costs tesla operates at compared to u.s. competitors, there's no contest. elon knows that and taking advantage of that. going to build next year, one of the principle things, what's the world doing in comparison? lose a lot of money. >> in terms of netflix, you own

netflix? >> yes >> as of when? >> netflix as of a couple weeks ago, what made you buy it a couple weeks ago >> again, scott, right now since june 1st i switched over to a two-year development pi and output model as basis for identifying when to get in stocks when to get out of them, and tesla was one i got into right off the bat on june the 1st and done tremendously well netflix, was one that came on version two and version three of tweets in the model. also done really well. the model got long in. 331 in early may but i bought into the fund a couple weeks ago. it's one of the largest cap tech stocks i think still has a lot of roots around it proven, and interesting to see once we compare them to disney results and warner brothers

results in a couple weeks. just how well they're doing. i think they're cleaning their clocks actually making a ton of money from streaming remember when that was sort of a far-flung idea they're doing it free cash flow this quarter per digits >> when i look at other mega cap names. you haven't exactly been a mega cap kind of guy? right? owned a lot of other higher multiple growth names. you told producers are like meta which reports earnings obviously next week. do you own meta? >> yes. >> when did you buy that >> same time as netflix. a couple weeks ago. >> and because of the model telling you that -- i mean, because -- i mean, the stock had a huge run before a couple weeks ago. >> yes. it has you know, i wish i'd been trading the model since

december the model facebook, meta, december 23rd at 118 and has been long since. you know, but i'm on version three of the model you know, i found that what works best in a portfolio is having a combination of the smaller speculative tech companies along with the big tech stalwarts, and i am trusting in the back-tested data seen meta, netflix, nvidia, tesla those the large-cap names i like most but i have a ton of smaller speculatives the big winners since last on with you, carvana. and bought ins $15 june 1st. $50 yesterday. it's down today but par for the course for carvana. >> what i don't understand if you bought carvana based on

your model, the model doesn't know that carvana is going restructure the debt, and the stock's going go up 35%. an algorithm doesn't know anything about that. explain this to me through my obvious skepticism >> i'm not on a mission. neither is the model you're absolutely right, scott the question is, can a machine that a human builds actually be smarter and hold a bunch of variables in its head at the same time and make more helpful suggestions when to get in, when to get long, when to get short certain names, then sdrig discretionary, long, short a lot of people in global malls but retire academics create molds work great in theory, not in practice.

but mod hael has to prove itself all testing i've done over the last two years building the model and validating it has shown me this is, this is the way of the future and the way i want to have my investors money invested along with my own you know, it's -- sort of like a cheddar lift guy take people up his back walking up side of the mountain and then wants to design a chairlift to take people doesn't just build a chairlift and walk away. he's got stay involved watch the chairlift every day, make sure the thing's not crack or breaking. i'm still involved it's not a jesus take the wheel here with the model. i'm continue to tweak. ai is continuing to get better a couple years ago on version 10 instead of version 1 and results great so far. >> when you get on the chairlift you're guaranteed to go to top of the mountain. ship all of a sudden reverse and take you in the opposite

direction. is the model ever wrong? i mean -- >> yeah. absolutely yeah hit rate is only 53% so model's wrong a lot some would say, isn't that better than -- i'd say warren buffett is the best money manager in the world right 50% of the time only so 53% is great. trick with the 53% is that the winning trades, so the carvana's of the world, and you get into them 1185, 7, i got in trading on 15 dollars and some cents at a huge run. winners more than make up for losses operating on hit range, can you do extremely well. compounding over time. so there will be lots of, you know, lots of busted trades knop doubt. but i'm betting that over time this will work well and good markets and in bad markets.

>> carvana is a good example. can we throw that back up, guys, please just saw that one month. because i think i saw it correctly. stock up almost a double in a month. right? there it is. 93.5%. now, being the human side of what you do maybe look at that, say in terms of risk management, that a model can't tell a human brain necessarily to do or override that. why wouldn't you look at that and say, you know what this is an unbelievable gain in an incredibly short period of time i'm gone >> right well, the last time i was on with you, come out and preannounced having more profits than expected. stock that day, in early june, up 51% feeling great about myself next day stock down 28%, on the day. i got all of these calls from some of my investors seeing me

the other day on cnbc. what does the model say? sell it. take your profits. when the stock was, had gone to $21 and pulled back to $18, something like that. we looked at the model not getting into the secret sauces, basically find the patterns of all 300 top global tech stocks and what are the patterns that matter individually most for that stock? what's different with carvana is different from tesla or meta the model looking at for car is vanna it says over the next six, seven years, better to hold the line and stick with the long position, even though i gave u 28% gain in one day. the next week it stabilized gone from $18 i think $60 after-hours last night i'm going to trust the data. i guess if you don't want to say trust the machine, scott

trust the data what has worked with a stock like carvana in the past i can't hold it in my mind as a human. for that, and 300 other stocks with help of ai and machine onboarding i can do a much better job in a populated portfolio. >> leave it there. talk to you soon eric jackson, emj. coming under pressure, the semis. a deaning slowdown in the second half we have details and whether that cautious commentary could put a pause on the chip surge. we'll do that when "closing bell" returns.

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visit coventrydirect.com. . welcome back to "closing bell." profit miss cautious guidance from taiwan semi sending chip stocks lower today kristina partsinevelos joining us. >> seems like ai hike can only go so far. the message from tmc management on earnings call

why? ai only contributes 6% of total tsm revenue. expected to grow in five years but not fast enough to offset weakness in smartphones and pcs. a bigger percentage of industry revenue. stock on the screen selling off almost 5% bringing smh low perp equipment names like seeing applied material, hit hard because t tsmc reiterated low end of the rate. spending less, less revenue for equipmentmakers. seeing a lot lower and deutsche bank arizona fab will be a short-term negative also for these names could be pressure in coming months debate now on whether now is the time to buy the difference since demand for electronics continues to be weak second half morgan stanley and mizzou say buy since guessing bad growth out of the way

and jpmorgan thinks the stock will possibly go lower, but gains over the next few years. alluding to a cash dividend adding to the long-term play for the name bottom line, demand exceeds supply but deal with the pc smartphone business continues depressed and still no one, jefferies, bank of america, list goes on. no one pitching on buy rating for tsmc could about good opportunity to get in. >> good stuff. thank you. get more now how to play this semi spiace and sell-off good to see you. is this like a record scratch on the "happy days are here again "song or what? >> more technical than anything else clearly we knew that smartphones, pcs, handsets were going to be remaining weak we knew the boost was going to come from artificial intelligence i think this is more about technicals just getting way

extended just look at the smh trading 153. other day on "half" a new high well, july 18th recorded new all-time high. 153 today. yesterday on "halftime" i talked about the air and the 50 day and 200-day average. apply that thesis to this and down 121 50-day moving averages down at 143. i think it's about technicals more than anything else. kristina did an excellent job semicoacs semiequipment makers gaining. >> gave me reasons why you wouldn't think the stocks would be at a high esmh. pc, slowdown, handsets unless you believe that those have troughed? maybe that's what the market was

betting on i wonder whether taiwan semi said, maybe not so fast? >> taiwan semi is more specifically about china demand. also i think talking european demands. factor the macro into the semis. semis are the nucleus, mobility, they are what the economy is today in 2023. similar to what oil used to be if you were to tell me, i heard the conversation with ed and stephanie link pup believe in economic sensitivity believe the economy avoids recession and believe the economy's in a good place why wouldn't you believe the very industry that represents what the economy is would do well as we move sgroerd that's the semiconductor industry. >> maybe people believe that these stocks are ahead of themselves. >> they are. >> and believe the economy is as strong as some would like to believe it actually is. >> i don't agree with the fundamental aspect i think the technical aspect is

confirming what you're suggesting that, yes, these stocks are ahead of themselves, and they can pull back to the support of moving averages. what do you do with all that first and foremost, stay high up in quality add vocated for qualcomm, reasonable and semi, and nvidia seems to have around their ability to participate in artificial intelligence. lastly, i think the single most important thing to do for semiconductors and overall for the market what we talk and yesterday with brian if you're concerned the technicals of stretched now and need to fall back further go an equal strategy. >> why technical maybe people fixated thinking ai-related bubble is in the magnificent seven-time names. >> okay. >> maybe the place more

represented is in chip stocks where even if you're not, like, the smh. isn't all filled with ai chip-related things. you have smhality a in 52-week high every day. >> first in, first out first in to economic contraction that started in 2022 that's my belief i think the economic contraction started in 2022. i believe the semiconductor industry was the first industry that went into recession and i believe it is first out. i think the semiconductor industry as we look forward see as better 2024 it sees china demand reaccelerating, inventories building again. >> joe, thanks coming up, tracking biggest movers heading into the close including a pair of stocks in the financial space. having their worst day in more than three years "closing bell," right back.

we've got one hope. a bomb. 4... 3... 2...1... they just fired a starting gun.

15 until "closing bell." back to kristina partsinevelos. >> down double digits at the moment disclosing a credit card mis misclassification and reserved a separate notice from the fdic related to a consumer compliance matter pausing its buyback

program during an internal review a lot of misstep there's down 16% let's talk about equifax worst day, reporting mixed results. slashing a slowdown in u.s. hiring and weaker mortgage markets. executives say they expect trends to continue in the months ahead. good news. dow down almost 9%. >> thank you. weighing in on our twitter question last chance. whichlagging sector of the market is about to have a big time catch-up trade. that's on twitter. results, after there. bak burger and fries... soup and salad. like your workplace benefits and retirement savings. with voya, considering all your financial choices together can help you make smarter decisions. voya. well planned. well invested. well protected.

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lagging seconder of market about to have a big catch-up trade ho health care winner 36% of the vote. very close va thank you for voting. and after hitting record intraday highs, there they are biggest losers that story and mh ucmore take you inside "the market zone." ggles loudly ] ♪ jitterbug! ♪ [ giggles loudly ] [ tapping ] ♪ you put the boom-boom into my heart ♪ intuitive sit-to-start in the all-electric id.4. it's the little things.

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down crucial moments of the trading day. diana olick, housing stocks. after 52-week highs earlier in the session. and stephanie link playing j&j and one of the best dow performers today mike, dow kind of day. how much is working? >> it is still more rotation than it is kind of an escape from the market. in terms of net money flow although the top started to spin slowly and wobble a little here after this rally we would say coming into the week, markets a bit up momentum change element of it. a let's position for earnings and old favorites and so nothing in the way of net damage to speak of yet really just unwound in the s&p a couple days worth of upside. on alert for the fact maybe got a lot of house money built up and see where it goes from here. the netflix and tesla damage on the reaction to their results so

to speak is relatively contained. but if it piles up become as theme, you have to look out for that. >> i was writing those names down before you mentioned them thinking that tomorrow will be the tell right? get buyers come in, sort of emblematic where psyche will be. >> yes. >> terms of big cap tech, done really well. buyers come in on the debt. >> in terms of those names for sure look for microsoft consider probably the most important stock in the world in the sense it's all about the belief in long-term trends and management and sort of like the valuation, people don't care. if it goes down a few more bucks from here, someone's looking at that two-year chart saying it's a failed breakout. who knows? it's obviously got a tough zone for it next week, ask those questions. >> diana, interesting day for dl horton looking at others as well. i know you are

stock up nicely then reversal. >> a big beat this morning guided higher. new orders up 37% quarter to quarter and share donald horton says despite higher mortgage rates builders reaping benefits of shortage thexisting home market nothing wrong with fundamentals. look at the stock. shot higher to start the day up nearly 10% in the first 40 minutes in reaction to that report then falls to low ends what's up with that and other stocks took along with it. look how far it's come 40% year to date the sell isn't about the fundamentals bob pisani talks about it. distribution, and traders feeling at this level, this high valuation, there isn't parter to go and taking the top and taking off. >> nothing more than that, maybe. thank you very much for that stephanie link, j&j one of the best performers of the day still down 5% on the year. stock trading 16 times forward

earnings two 20% dividend yield raising dividend 62 consecutive years. beat from pharma 6.2% constant currency med devices up almost 10%. and a month ago united health care talked about higher er utilization rates. >> and united, pell, these stocks health care has room to run? >> yeah. could be the next phase where we're headed in the market flip side to the spring, going into the spring. seemed all options consumed by same nasdaq stocks it means a lot of market cap that was not doing much of anything, and pharma definitely falls into that category health care services a little less so macro devices big names like thermal fischer,

edward sciences not actually done a heck of a lot yeah i could see it happening not clear to me that's necessarily the next source of thrust for overall market, but as we rotate and turn around, it makes sense. >> stephanie thank you. see you soon approaching two-minute warning what do you think is the next source for the market if not health care? >> i think a little more focused whether we need to kind of settle back a little bit and sort of reload you know, last tip we had one to speak of from mid-june highness s&p, 2%, 3% drop something like that now, kind of classic textbook up and away bull market type pullback. still not much of anything that would take down to a little into 20-day average on zp i want to see if that's what we're in for as, again, seasonals get tougher going into the huge chunk of market cap coming next week as well at the fed meeting. >> oh, yeah. >> see if the market's going to

tense up a little getting into that fade. i don't think it would change the overall story, overall trend and earnings dropping. fed being on a manageable path at this point and softer landing is hard to refute in the short term by the way, leading indicators again weak this morning and deep into the zone where in past the economy howard been in recession. keeps people uneasy because of that cycle and path. >> next week really, talking a lot about these hurdles to get over. >> yeah. >> now talk about mega cap tech plus the fed, you have automatic higher bars now to get through next week's going to be probably the tell on what this thing really is. >> right you know, been in those phases before illogical ceiling and got tests and sling scshot above not, stop the market, but literally is a test.

buying strong enough once we get through. nos as significant. >> nine in a row nine in a row for the dow jones industrial average the bell rings red. that's not the story today pick it up tomorrow. and we have more coming up. mixed day for stocks dow a fresh 52-week high s&p and nasdaq could not escape big losses today the action getting started welcome to cls cls "overtime" i'm morgan brennan with jon fortt and just mentioned closing higher ninth straight day. dragging down the nasdaq worst day of trading since early march. >> speaking of earnings. a trio bringing you all of the results soon ath