of guys who enjoy playing poker with their friends, and either win some kind of, win a tournament to get into the main event, or raise money from friends and family to play >> daniel weinman, thanks for being with us. congratulations once again, stakes high and he did it. >> he did it thanks for watching. "closing bell" begins right now. all right. seema, thanks. welcome to "closing bell." i'm scott wapner from post nine at the new york stock exchange on this friday we have an important interview coming up in a little bit. mustafa suleiman, in the room find out what was said this make or break hour begin wis a critical moment for the rally. biggest week of earnings looming along with a fed meeting and more this as the dow goes for its tenth straight day of garins longest streak since 2017. health care strongest sector followed by financials and

energy nasdaq taking a breather ahead of numbers from microsoft, meta and alphabet in the red for most. alphabet is inching out in the green today. takes us to our talk of the tape ready to rally further or poised to pull back ask avery sheffield co-founder and cio back with us at post nine >> nice to be here. >> interesting place in the rally. a really big week coming up. how do we look to you now? >> as a whole market looks vulnerable sentiment neutral towards bulls. valuations around 30 times nasdaq 20 times s&p with interest rates at around 4% and the fed, and the economy slowing, but seeing signs inflation might reaccelerate tricky and stock specific.

>> why are we where we are, then how did we get here? >> exactly yes. i think a lot of us asking this. right? because the fed raised rates so rapidly. fed raised rates so rapidly. shouldn't that have slowed the economy and kept the market down but i think what happened is that we had this infusion of about $400 billion into the banking system in march. that led, that was as -- that bailed out banks while people were taking money out of deposits putting them into money market accounts that i think was the foretell of money getting into the credit markets. bringing credit spreads down loosening financial conditions the market saw this and said, oh if credit spreads are down, multiples should go up same time fed was having an impact on slowing inflation. right? seeing decelerating inflation almost every in the economy. market saw that said, oh, fed rate cuts still priced in

beginning early next year and thought multiples can go up. the issue, the market itself reflects feedback loop and the market going up actually starts to loosen financial conditions along with credit spreads, which i think puts us in a tricky place. that's how we got where we are today. >> maybe we were just miscalculating all along how strong we were going in, thus going to be better off on the way out? and that's why we are where we are? >> i think that's part of it absolutely gone into a tightening cycle with a tighter economy than we've had, than i think we've had, really probe ever historically right? the labor market is so exceptionally tight. goods like autos were at production lows. right? housing inventory very low housing market tight now because of higher interest rates as well but gone into this from a tight place. labor market so tight it actually -- you need a lot to upset that and instead actually got an infusion of capital.

>> then why isn't that good enough to justify where we are when i asked you that you said exactly as it kind of throwing cold water on this idea that it's not justified that we are where we are. >> yes well, so i think the issue is that a lot of the ebullience in the market gone to companies that are -- you know, fundamentally -- are nowhere near justifying their valuations. >> like mega cap tech? >> certainly a part of that absolutely. >> you don't think in anyway justifying valuations? let's go let's do this. >> tech companies, others probably are quite stretched outside of mega cap tech i think valuations are worse right? get into areas like enterprise software other growthy companies valued anywhere in $10 billion to $100 billion. valuation are very high. you have, what you had this year massive multiple expanse without

earnings gross justified in most cases. >> don't you in the kind of names we're talking about, because of what's happening with ai and narrative around that, you're willing to pay higher multiples, because you're betting on the growth we think is going to develop? you think we've put too many chips into the center of the table on some name ansd not coming to fruition the way they think? >> i think so. said it before i think microsoft potentially growing in valuation said that. certainly nvidia at this point if demand continues grow into its valuation. >> only 50-something times nvidia is. cheaper now than before. >> yes, yes. >> a massive earnings fund. >> look, nvidia could go into its valuation and significant front loading of demand. see how long that continues. i think it could be tricky, but could they get another couple quarters of very strong growth yes. maybe longer i think that it's a harder, a

harder call here just because we don't know what the end state of demand is going to be, because the nvidia chip, used for training models. once you train a model you can re-use for the next model. i'm not making a bear call on the stock now. the companies i pick on the most would be nonprofitable growth companies or companies only profitable on stock options that are trading high valuations actually thought showing the kind of growth, earnings growth justifying them. >> some say what happened in netflix and tesla show these names are priced for perfection. a slipup shows what happens on back side, a 10% decline for tesla and netflix dropping and next week look forward to these, it's a risk? >> with those three names, actually not sure how much of a risk there is. to be honest because, i mean microsoft's very

expensive stock but does look like they have a lot of momentum in the business. in the near-term. >> 33, 34 times? >> yes, yes. there's a lot of momentum in the business and reasons why, again, that valuation could be reasonable over time in the case of the other two names. they are not that expensive. right? only marginally more expensive in the market with dominant franchises, and it looks like advertising spending is holding in there and people are migrating to the platforms technological advances actually the major stocks to pick, that's not the reason why the market seems so overvalued. >> bring in another guest of wealth enhancement group ia, welcome back night to see you do you feel these stocks are as vulnerable as avery does >> nice to see you again, scott. i agree with avery in that the names such as microsoft can outperform or in the short term the sentiment might be a little

overhyped with the ai. the ai story around microsoft. i think long-term microsoft as avery said will grow into its valuation and they still have growth from azure and the cloud. so we think microsoft can continue to do well over the long term. >> let's assume that there are people who do believe these stocks are vulnerable and may have a pullback. got rebalance on nasdaq after today as well and maybe that's an issue, too. if not tech what what's the next best place to be as some of the more lagging sectors of the year look like they're coming to life >> they were i think that the dow has definitely done well this week up almost 2% whereas s&p was up just a little bit for the week so we like areas such as health care we've seen it today in movement, in health care stocks. united health care has been leading the charge on the dow.

and the stock pulled back a little bit beginning of the year i just, talking about overall costs, but i think united health care could be a winner over the long term. >> yeah. had some health care names this week that sector certainly one of the best performing. ask you avery same question. right? if not tech, what? >> yes we like financials here a lot, and the big money center banks i think are actually pretty safe place to be. jpmorgan one name we like in particular i know very much a consensus long but raised about ten times earnings for dominant, most conservatively managed franchise within the banking industry. world-class ceo. so i think that when you just, where's a place to sleep well at night and if the economy slows, like, they have proven in timely disruption actually gained share. for tens times earnings to have a dominant franchise has benefits of scale and credibility giving a lower cost

of capital, and ability to potentially win if anyone else goes under in the future, is a pretty good place to be. another place we do like, certainly areas with energy. offshore drilling interesting and reason for that, of course, that first from an oil price gosh, shouldn't begin to predict price of oil interesting to see china weak, russian production coming on price of oil hasn't fallen further in part because permian note is slowing and production, slowing production opec countries, and oil companies are looking for where the production is locker t longer term, day rates increasing substantially as came through through briggs contracting this week. >> looking at energy year to date worst sector. down 4% on the year. only other sector that's negative, utilities. everything else is green. even health care, which is a smidge higher.

do we think there's going to be any sort of catch-up trade in areas that have dramatically lagged >> yeah. i think energy with the best performing sector last year. i'm not surprised to see it did got back some of that simply wah we have same thing with tech the worst performer last near now best performer this year over the long term there's been not as much capital spend on the whole energy complex, and so i think that's going to continue in order to, as we go through this greening transition over a very long period of time it's not going to be overnight, and capital will need to be spent in order to continue to drill for new wells and new discoveries of oil, and so i agree that over the long term perhaps it will be a little bit lumpy, but we think that energy can, you know, do well going into next year. >> bring it full circle back to where we started thinking about

big tech next unique ia you alphabet, amazon, and ar you concerned discussed with avery priced to perfection i what we saw, not driving a little lower, given how incredibly well they've done >> sure. in combination with special reball, of the nasdaq i think near term you could easily have a little bit of a pullback in any of these names however, over the long term as mentioned in microsoft and amazon you know, a lot of these names have long-term growth prospects to them. google one that thrown out as the loser within the ai space. we actually think that it's relatively cheap compared to some of the other ones only trading at 20 times getting dinged because of ad spend and slowdown in the overall advertising industry but we think that if they continue to do what they did at

their investor day and showcase their strengths within ai, that stock could do well in the long term as well. >> we're going to leave it there. ladies, thank you. ia, talk to you soon avery, good to see you good weekends to you both. twitter question of the day. when earnings report are you most closely watching? alphabet, meta or mcdonald's go to cnbc on twitter to vote top stocks to watch heading towards the close. kristina partsinevelos is with us. >> and under pressure railroads giant's revenues lower than expected company citing soft intermodal volumes and slowdown on imports and working through worker shortages and supply chain disruptions. why shares are down about 3.5% elsewhere in transports, maxim having a great day container ship giant, matteson, issues results well above

estimate china service near ly folgering peak season currently up almost 9% happy friday, scott. i'm outta here. >> have a good one kristina partsinevelos. and latest summit wrapping up at the white house. executives from a number of lead be companies in that space there today, we're there talk to co-founder mustafa su lc sulyman. live from the new york stock exchange you're watching "closing bell" on cnbc. young lady who was, mid 30s, couple of kids, recently went through a divorce.

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back leaders in artificial intelligence wrapping up a key meeting on ai safety with the biden administration among those committing to secure their platforms microsoft, alphabet, open ai and our next guest. the co-founder and ceo of inflection ai. also co-founded deep mind, sold to google back in 2014 his book "the coming wave" out in september joins us from the white house lawn nice to see you again. thanks for being with us, great to see you, scott. >> what's your sense how this went today >> it's been a really good meetingmeet ing actually second meeting in three months this time around president biden laid out a set of initiatives we've all signed up to one of those is red teaming our

models meaning add verify sayrely testing them, under maximum pressure like in the security industry to find bugs when we learn about the found weaknesses share them with otherwise our competitors. that's actually really great for safety and trying to improve how this new wave of ai turns out. >> nothing today, though, comes as binding what's your sense on to, you know, what was talked about today will actually be followed through on >> right we've committed pub luckily now to having external audits and sharing the lessons of those audits with everybody else the moment that isn't a binding regulation but a serious commitment that we are really committed to, and all of the seven biggest ai companies that are building large language models have signed up to this together i think it's an important step forward. you're right it's just the beginning. >> the commerce secretary on the network earlier calling this meeting today "a bridge to

regulation" that will ultimately come out of congress you yourself just mentioned regulation that may come out of it what will that look like and what role do you think congress should play here >> right we met with the president today, and he said exactly the same thing. this is a step towards regulation regulation will be required if, we're to provide more access to the way they train these models. what is the data sitting inside of them? how big are they and what are their capabilities and so those the kinds of things that i would expect to see in regulation over the coming year or so. obviously we've been trying to emphasize it's important we enable innovation and creativity to go as fast as possible here and i think everybody is aware of that. commerce secretary, gina there today, too, and stressed that to everybody sat the same time. >> wondering how you think viewers and investors and the like should think about this -- essentially it's a global race for this new technology.

as other countries look to develop their own models, how are you thinking about the risks associated with that >> totally right i mean, the great news is that we are a long way ahead in the u.s. and in the west more generally. but obviously that lead won't last forever everybody else is also trying to build cutting-edge ai models good news, we have the opportunity to set standards and try to define culture. what does it look like to get the best out of these models really make them deliver value for us and turbo boost productivity, what we already want, obviously. same time, put guardrails around it create transparency? make sure they always operate within the boundaries that we set for them as humans i think if we get that right over the next 18 months or so that sets the standard for the way the rest of the world generally has to abide by. >> do you think the global nature of this brings with it increased security risks,

whether it's around cyber or simple intelligence? >> the cyber risk is elevated over coming years. other states and actors trying to hack at companies that have access to the models try to steal the weights, underlying core piece of software actually relatively transferrable so the cyber risk here is significant and something we have to pay a lot of attention to. >> maybe not something as matter of national security like the ones we're talking about now, but i'm interested in your take what's happening from a copyright standpoint and a lawsuit filed by the community sarah sillerman against open ai and meta what is the property of the intellectual property of others stolen >> i understand the concern. a lot of people raised that. two camps. data made available on the public open web crawl and

searched like a blog post you post and so on then other data which is subject to, maybe in another form like a book or so on. that's obviously a different class here i think that we're going to shake this out over the next few years and it's going to pass its way through our institutions and culture. we'll figure what the right norms are eventually >> we've been so focused, too, on the companies that are in the lead or trying to be in the lead those who have, or at least have been said to have fallen behind. i think of alphabet. we mentioned google buying deep mind some years ago. the word on the street today is that sergey brin is back at alphabet in trenches so to speak. you're smiling your take and what does that mean to you? >> i've heard that, too. obviously still have lots of friends there and sounds like he's turning up to the office reviewing code and sitting on hiring committees again. quite honest, great news for

google he's awesome probably need all the help they did get at moment and i'm sure having a hugely beneficial impact on their progress. >> say that, could use all the help they could get at the moment is this a clear sign that the company feels like or at least the founding members of that company feel like it's lost its edge in that regard? >> i mean, look, no question about it google hasn't been existentially challenged probably ever in the history of its business. 20 years old now the last six months shown it, shown potentially there's another path for new start-ups like my own. inflation ai building pie, personal intelligence to really take on the big guys and see if we can introduce personal ai to the market that people love. so google is pivoting on a dime to respond to that competitive pressure. >> leave it there. i know that this conversation will continue, and i appreciate you continuing the dialogue with us here on "closing bell."

mustafa, be well. >> great to see you. take tear. joining us as you see at the white house fresh off that meet wig the president. flex hour, from meta, nick clegg. live on "overtime. don't miss that key interview as well. coming up next, the man behind t rowe's technology fund shares his strategy for the second half of the year for that sector earnings season about to get way under way. find out how he's managing the ai mania in his top tech ideas space up more than 40% this year "closing bell," right back.

3... 2... 1... welcome back top techs stabilizing after yesterday's sell-off all set to report next week. next guest remains bullish on the sector names microsoft a key report he's watching d bring in dom rizzo of t. rowe price. >> good to see you again. >> pivotal week.

master the obvious. comes also as this sector looks i don't know not say wobbly, but yesterday was kind of ugly primed for a pullback or just a momentary blip >> look at numbers, scott. look at global technology index up roughly 40% year-to-date. semiconductors up 45%. software's up 40%. yeah wouldn't surprise me at all if we say a bull market consolidation over the next three to six months. when we look out 18 months, always trying to optimize for in our strategy, still like this space and see fundamentals inflecting positively and still have relatively reasonable valuations. >> go there, then. since you -- say something else. relatively reasonable valuations what does that mean? >> because you have -- >> people look at these valuations, let's just say the big five, or even throw in a couple more in there the multiples of expanded, they've expanded dramatically since beginning of the year.

how do you justify it? >> certainly a hotter setup than last time on right? last time i was on a forward two pe roughly 21 times earnings now roughly 24 times earnings. keep it in perspective 27 to 28 times earnings. definitely a harder setupsetup. smart what you're investing in sebastien page it a great peach on linkedin on this, depends how the ai boom plays out. if the ai boom plays out like the internet boom and look at them, looks like 1998 thanned ye than the year 2000 over the next months feel relatively positive. >> who do you think is most, used this terminology already. priced for perfection?

suggesting netflix and tesla were not like earnings were horrible, but the stock suffered ed somew significantly for day or so. who in your ownership is priced for perfection you would worry could have a pullback? again, like i said a lot of different stocks may pull back in relatively short term but we feel good on medium to long term netflix and tesla are great examples right? netflix had very positive fundamentals in the report i think the trend on password crackdowns is going quite well i think that the advertising tier is starting to see positive inflecting data points the question is, are we getting more ads in the next quarter than this quarter? who knows. remains to the seen. tesla, the other hand. actually saw positiving in that fundamental report as well costs per unit going down nicely and of course get a self-driving shift, positive for the stock,

ebitda saw two stocks pull back a little bit. >> thinking of a couple others looking at in terms of what i have at your top holdings. maybe not full-fledge warning so to speak on where we are, but ringing the bell to say at least hey, pay attention here. warnings this fwreek taiwan semi right? got that s.a.p. what they did yesterday in terms are earnings and guide dragged down the cloud software space. service now as well. how are you thinking about those getting away from mega cap as moment >> a perfect example how the ai battle plays out right? look at tsmcs numbers, guided revenue down 10% year over year. okay look at ai itself. acht i business roughly 6% of their revenue growing at a 50% pay grade over the next five years. not often you see that fast.

when you have that small pa percentage in your business growing that back doesn't take long for fundamentals to play out. tsmc trading earnings and fundamentals should bottom in '23. from there see a fundamental improvement as inventories normalize across the semiconductor space. >> leave it there. dom rizzo, t. rowe, thank you. talk soon. up next, staying in the cautious camp. playbook from one of the top-rated wealth teams in the country. morgan stanley's chris toomey. 52 week highs. at post nine next to make his case.

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welcome back to "closing bell." gains fading ten in a row still green. see what happens over the final 20 or so minutes our next guest says prudent to stay cautious. chris toomey joining me now. welcome back. >> thanks for having me. >> got to tell you wondering. okay,time's showing up he's going say i've turned i'm bullish. >> been a while since i've been here and market's going on, i thought you would say now it's going down. >> a while since you've been positive on the market why aren't you now

>> look, i think it's a question of wall street adage early or wrong either way we're wrong right now. market's gone up dramatically. look at earnings year over year, they're down about 4.5%, and the market's up over 16% so what did we get wrong right? so we got a little bit of a china bump when china reopened we got a big bump with regards to the fiscal stimulus weren't anticipating with chips and inflation act and the big issue that's really kind of prolonged this what avery talked about when she first came on here. when regionals really got in trouble the fed stepped in and provided a tremendous amount of liquidity. that stabilized the market, but in reality, if you remember correctly, you know, our expectations for jp were p basically flat moved up 1%.

right? expectations for earnings are specifically down and rear in a earnings recession. >> not down as nearly some thought. another reason we are where we are. things you list are big things to, quote/unquote, get wrong they're also potentially big enough things to sget you to ch your view. well fed injecting liquidity we know power of all of that earningsings hanging in there better economy is better than a lot of people thought along with the consumer and fed being done. >> wall street game putting low bars with regards to different company earning or s&p earnings. they keep coming down. right? started at 229 now at 222 ratcheting them down and remember one of the big keys for 2023 earnings was the fact that the fed was going to break the system in the first half, and then get two fed rate cuts in the second half. then instead we can expect a

rate hike next month, next week. >> next week. >> and there's a potential for another one and fed saying also a 70% chance we're in recession in the coming months. >> not like saying we wholeheartedly agree kind of distanced themselves in some respects from what their staff thinks that's a few hundred economists i totally get it but i don't know the economy appears to be in much better shape than many thought it would be at this moment. >> it's in better shape but not in great shape right? we're not in a situation if you look at the pe multiple on s&p 500 north of 20, right seen in the nasdaq getting north of 30, in an environment we've been constantly raising rates. right? the economy is slowing and we're in an earnings recession that you'd see earnings, or pe ratios going up 15. remember, equity with premiums

almost all-time low. not really getting paid enough to take the risk that you're taking in the equity market now. >> next year's earnings, though, like 245 as you suggest -- >> coming down. >> scoffing at that. >> coming down right? a question playing catch-up now. seeing it on strategist side right? all of the strategists came in bearish beginning of years ratcheting it up higher. >> he's not. >> mike's knop pt looking at facts. facts chain my opinion will change facts look the same what we're sea r saying yes, economic activity not at bad as we thought but not good in our mind, you see prices go dramatically higher that aren't justified. what would make us go into your camp right? what makes us switch look at earnings. >> not my camp the fact of the matter is, markets at a -- first half. >> look at bloomberg

18 of 20 strategists equity return asumpls below where we are now. still a lot of people raising their estimates still below. right? what do we see we've got to your point earnings priced for perfection. okay look at top line do we think companies will raise prices inthis environment? probably not. >> earnings aren't necessarily priced for perfection everywhere maybe priced in seven stocks perfection. >> no. in general you could make that argument seven stocks probably too expensive. i can make the argument the economy will see issues with regards to the consumer as well as credit. right? so we just saw an article in bloomberg this week about $500 billion worth of distressed debt that's sitting out there that was financed at 5% that's going to have to get refinanced at 10%. what is that going to do to the market got the fed back on qt and a situation where the consumer savings rate is at all-time lows and consumer credit debt is at

all-time highs so to your point, two-thirds of the economy's the consumer we're concerned about the consumer don't forget about student loans. right? in october that's going to be pulling money out of the system as well. >> i keep hearing the same concerns from a lot of people. obviously. people cautious, yet the market keeps going up right? the trend is kind of undeniable. >> sentiment definitely, and perception, definitely high perp fundamentals stayed the same or gotten worse the two most important parts of that sentiment trade was going to be those fed rate cuts we're not getting. >> you said, and i didn't let you finish my apologies i want you to finish what makes us bull sunish is wh? what turns you >> get wrong on earnings see top line bet perp prices go up, or we more volume or margins expand we don't think either will happen when you'll have to see, prices

come down. have to see something happen that is going to given us that price for perfection desire to be actually putting money into the orbit. we're cautious got hedges on. we're also hedging our hedge you can say that by looking at, want to ad equity exposure doing it equal weight. we're wrong. market, narrow the gap between the two. so much other opportunities, scott out there besides equity market treasuries, corporates giving you 5% to 6%. nothing to get too upset about private credit word, 10% to 15%. equity-like return at top of the capital stack. in our minds you don't necessarily need to be in equities right now to get a good return for your clients. >> make that the last word appreciate it. chris toomey morgan stanley, private wealth. last chance to weigh in on our twitter question asked which earnings report next

week are you most closely watching microsoft, alphabet, meta or outside of tech? maybe mcdonald's head to twitter, closing bell. results right after this break. good luck. 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.

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we're back quick news alert "wall street journal report"ing spotify planning to raise price for premium subscription by $1 ad-free plan rising to $10.99 in the u.s. with other key regions likely to follow in months ahead. company the 515 million monthly active user, just over 200

million on premiums here according to the latest report. results now of our twitter question we asked which earnings report are you most closely watching next week. microsoft the winner near 45% of the vote followed by meta and then alphabet and then mcdonald's. at the bottom, new cnbc reporting for disney for a strategic partner. @alex sherman joining us with details sending shares higher by 1% late in the session take you inside the "market ne nt. 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.

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now "closing bell" market

zone mike santelli to break it down and alex sherman with a scoop about espn moving disney stock on american express earning what they could mean for consumer mike, battle to the end. see if we get ten in a row for the dow. >> we will i don't know that the stakes that are high about it but it's underscoring the fact dull grinding markets that go, inch higher tend to be a bullish setup. even though getting extended, something's going to come along to cause a little bit of disturbance. i don't really see it being the consequential top of any sort. at least not right now at least not with the market, what it's telling you. i do think there's a chance we get blinded by the year-to-date numbers. nasdaq 100 up 40-plus percent. flat over basically two years. basically taking back most of last year's decline. doesn't mean it's not up a lot it means it's not necessarily in uncharted territory. >> right turn it to alex sherman.

looking at walt disney shares edging towards the close a bump by more than 1% on your scoop, which is -- >> scoop is that disney has held talks with the nfl, nba and major league baseball in terms of becoming a strategic partner in espn. this dates back to last week when bob iger spoke to our david faber mentioned that he had had preliminary discussions about strategic partner for espn the speculation of the time was that maybe he was referring to a big tech company or another media company, but unimportant today that toes discussions really have been the leagues themselves creating a sense that the quote that bob iger used to describe why he wanted this was he was looking for a partner to bring either distribution or content. who owns the content the leagues own the content. that makes the most sense that the content harbor. >> and raises sorts of issues

thinking about not least of which, how do you as a news organization still objectively cover leagues that are now invested in you? >> yeah. i'll give you several things that are sticky and problematic about this that's one espn somehow barbs around ownership making sure there was objective reporting going on i suppose that argument is that espn already obviously sports, their business objectivity would be pressed further with minority shareholders no question. other reasons the leagues risk irritating other media partners, you would think. go into a joint venture with espn concerns about preferential treatment towards espn and maybe regulatory kearns around such a deal a lot of stickiness and complexity to this not to say that it's impossible, but i do think that we're in the early stages of things and both the leagues and espn are kind of feeling each other out and

trying to figure out some pathway forward where both can make the most money as they can in a streaming consumer dominated world and not the old tribble model which works grade for all parts. >> mike santelli here as well. somewhat of a sense of desperation around duzny iger's plan to turn it around. from what we know, told david, staying a couple years longer. and stock cannot get out of its way. just a few bucks off of 52-week low. >> arguably biggest reason for that the fact espn and the rest of the cable networks are tethered to declining subscriber basis. everyone acknowledges disney included, has to be another solution you know, subscription-based direct to consumer whatever it might be i'm interested in actually, alex, this only seems to also make sense for a disney if it somehow gives them capital or saves them money on the money they pay the leagues for the

rights to broadcast the games? >> yeah. look, first of all, maybe capital objection here a stake in the league. you're right you have to wonder if part of this is, look, maybe in terms of an equity deal we can get sort of a discount on the rights. look, not just rights of the game also as bob iger put it shoulder programming espn gets from the various leagues. deduction on highlights costs and other sort of perks to this deal in order to make sense for espn really, though, i must say i think it kind of makes more sense for disney than it does for the leagues themselves that's kind of what i'm interested in. why are the leagues thinking about doing this with all of the risks involved maybe get an answer and they'll speak publicly in days and weeks to come. >> thank you very much, by the way. great scoop. really comes at an interesting time, because of this conference that we are having next week

in which espn's jimmy bataro is a panelist at. july 25th out in los angeles join me and cnbc in "board room" for game plan. a high-powder event. scan the qr code onscreen interesting discussions there. ownership, tv executives et cetera really on the back of what is an interesting scoop from alex, you just caught there. thank you for that. bar high for american express. kate,looking at this, stock's down near 4%, and it's -- you know, going to be a fight for the dow to hold positive to the end. >> yes scott, the story bar was extremely high heading into this time record car spending this quarter, growth slowed a little apd and disappointment around guidance as well

build business essentially payment. wasn't the growth amex seen first quarter and didn't raise guidance interpreted by some as caution campbell saying don't read into that saying amex tends to only give annual guidance and only changes it if something is wildly different say the pandemic, for example pb also reminded us berkshire hathaway owns part of this and rosy snapshot of high-end consumer premium consumer amex caters to is very strong continues to be very strong. pointed to travel and entertainment. and in delinquencies flat for amex good news for them. >> thank you kate rooney. for all the marbles next week, mike >> yeah. looks like it's going to be. i think names like amex feeling not that confident in terms of raising guidance

maybe top line software. and see. six months ago, the market and dow just about flat. >> settling out. mean we'll get ten maybe we won't have great weekend see all on the other side. morgan is on send it over to them in "overtime." [ closing bell ] what is the score card on the dow? hard to say. stay late to find out. welcome to "closing bell: overtime." jon fortt with morgan brennan. dow closing higher tenth straight day maybe, maybe hit it by its fingernails, tom cruise style "mission impossible" longest streak since august 2017 blue chip index rallies about 2% this week. s&p was higher by nearly 1%. nasdaq down less than 1% if you thought. >> that this week wabi