real quickly, we're almost out of time, what do you think >> i think after tomorrow we'll have a way better idea of the path of the curve. >> got you back to morgan we're going to fist bump because we think the fed is going to have a hard time beating google earnings when it comes to volatility >> rick santelli, thank you. markets are fading the gains great to be with you. >> great to be with you. thanks for watching "power lunch. welcome to "closing bell." i am brian in once again for scott. this make-or-break hour begins with a make-or-break moment for mega cap stocks. we are an hour away from earnings from both alphabet, google and microsoft those reports could pop this rally higher or they could derail the tech run. we're going to get to all of that first, here is your scorecard on wall street. we are higher across the board, not by a lot the dow is up 0.1%, and if the

dow ends today higher, we're close, it will be now a 12-day win streak tomorrow, if we're up, that would tie the all-time record of 13 higher days in a row for the dow. we did that only all the way back in 1987 just something to tuck into the back of your mind heading into the close. and it is not just about tech today. could a little up and coming arkansas-based retailer make you more money than microsoft? you could probably guess the stock. walmart. we're going to dive into it and a very bullish call on that name. let's start with our talk of the tape by diving into tech and your money overall and bring in adam parker joining us here on set. do we care, 12 days up, does it matter >> it's a neat headline, as you were reading that i was thinking

what else happened in 1987 >> people know black monday or whatever it was, but we actually ended the year higher in '87 a lot of people forget that. >> yeah, i guess i don't make much of it i think it's one of those things where things can happen and i don't know if it means that much i think what will matter more, the corporate earnings reports we're going to get the rest of this week and next week. >> yeah. i mean, it is a great headline if we finish up today, dow up 12, because it will make non financial news, "nightly news," "usa today," things like that. is there any way it does generate return because it gets people -- oh, the dow is up, what's going on? gets those sideliners back involved >> there's no question that people are more bullish than they were six or seven months ago when the market was way lower. i'm making the numbers up, but if zero is max bearish, i think people started around a 10 and

they're around a 30 or 40 now. i don't think people are euphoric, i don't think people are incredibly bullish, and there could be more animal spirits, for sure, from here i think what people struggle with is the valuation, where we are now. you kind of have to pay a little bit more than 20 times 2024 earnings at the end of this year to get a 5000 s&p, get a 10% upside. >> how much to get that multiple >> over 20 times the 2024 numbers right now. so i think what people are struggling with is it's a little high. >> not impossible but it does sound difficult. >> that's the challenge. you can create a case the earning season has been mixed but positive, and you could create a scenario that some of the margin pressures are going to start to aabate currency can help a little i think people are more optimistic than they were certainly six or seven months ago. >> we talked about it yesterday on "closing bell" but i would

like to get your thought on it as well. we know about the seven stocks, ten stocks, whatever that kind of seem to run the show. they top hundreds of major etfs, their weight in the nasdaq 100, while recently reduced, is still spectacularly high not to take anything away from any of our other great best in class earnings coverage, but literally is it just apple, microsoft? do any other earnings matter >> i think they do i think other companies do matter i think if you're trying to beat the s&p 500 and 30% of the index is in seven or eight names, then you have to manage your risk around those i think you have to own all these names. they're not particularly idiosyncratic, so it's not like you could know something about them that nobody else does it's not like -- >> there's no dearth of information that's going to give you a delta. >> yeah, you don't know

something that's not in the price. 80% of the return is going to be explained by macro factors so my sense is the risk management stocks, you've got to own close to that 30% weight, maybe you like microsoft and meta more. your index weight should be pretty mirrored by your exposure and you try to make your alpha in the other 70%. >> i just wonder if there's alpha to be made in other others i know we love the microsofts, they are so important. you also like energy oil is about ready to hit $80 again. the oil etf is at $340 it broke what looked like resistance there what kind of energy do you like? >> starters, i've been really wrong to recommend that this year it's been our top choice for three years, it's been terrible this year. i've been surprised a little by supply in some places and a little bit weaker demand i like it a lot, again, now, and the reason is i think that the

earnings expectations are incredibly low for energy, down 29% this year versus last year, and yet the overall market estimate is down where can i get upward revisions? probably in energy if things tighten, they're cheap, the capital spending is down a ton, and i think demand will be good i think the biggest difference is most vehicles are still gas guzzlers >> i posted something on twitter/'x' today, which is gas demand in europe is rising gas demand in the united states continues to not only go up, but the estimates continue to go up, even with a cup million evs on the road americans are driving bigger cars, less fuel efficient, more miles. have you been on the new jersey turnpike lately? >> is that the one to the west of new york? >> it's the one i spend six to seven hours on a day i'm telling you, it's full

>> i stay on this island unless i'm going to the airport but your point is well taken i think 82% of new sales are gas, 18% are ev or hybrid. only 8% are ev or hybrid so the answer to your question is peak oil demand will be somewhere like seven, eight, nine years from now. >> i'll take the over on that. >> could be over. >> i think oil demand goes up in the united states and globally for the next 20 or 30 years. >> i think on the other side of that, you might be back where we are now 18 years from now. that could be reasonable i think the point is so much money can be made in the interim, so i like the risk/reward. i think what's priced in is not much tactically i like it and long-term i like it a lot. >> let's add to the conversation and bring in cnbc contributors, all the way down in houston, a little down there, and malcolm of cic wealth. do you see what i did?

i'm filling in for scott and i just diverted the entire conversation to energy because that's what i love to talk about. i know you like some of these names. we'll get to big tech in a moment do you have a macro take or some favorites in energy? >> yeah, so i've been saying all year that i thought that energy long term is one of the fattest pitches out there, but especially as we were thinking we were going to go into a bigger slowdown than we've had, that hedge funds have been shored, you've had two years of massive gains. i didn't think the capital appreciation from energy would be all that much this year, and you can get the dividends, sell calls. but this is a great year, if you don't have exposure to energy, to start dollar cost averaging that into your portfolio i think you and adam's, to your conversation, as people are traveling across the country, i promise you, they're not taking their evs, because for me to go from houston to dallas in my car, my tesla is five hours, in my jeep it's three and a half.

because i've got to stop two times. so i think you have -- >> buckee's is lovely this time of year. >> there's no chargers there. >> i try to go from vegas to san francisco a couple years ago it was grim. malcolm, do you have a view on energy or, before we get to tech, any nontech space that you think may be undervalued everybody is just kind of looking at the same stocks all the time, which says to me maybe there's some opportunities elsewhere. >> yeah, i do think there's opportunities in health care specifically, but more broadly, to your point, brian, maybe we find out today after microsoft and google report earnings that just because we step away from the tech rally doesn't necessarily mean that the broader markets are going to take a breather. so adam made the case that we're 30% to 40% of the s&p gains are attributed to just seven names,

and so maybe that broadening out means tech takes a breather, hits the pause button and trends sideways for a little bit while the rest of the market continue to say power on. maybe it's not energy, but i definitely think health care is worth a look. >> yeah, look, to me if you're being really simplistic, cpi went up a ton and the big cap stock companies don't get hurt, they didn't really get hurt by rising cpi and a lot of other businesses did now i think cpi is going to bottom and maybe go meaningfully lower, i think the case for a rally broadening is some companies will see less margin pressure and potentially some headwinds turned into tailwinds, at least for a few months. so i'm with you there. i think the part i'm most negative on and where i've gotten incrementally negative is on any place that has a store with a physical box. so i'm really negative on retailers, i think they -- >> why by the way, an analyst who is

extremely bullish on walmart coming up later in about ten minutes. >> well, i'll be in my car back to the office and i'll listen while i disagree with everything it's not really walmart specific, although they won't be immune my issues are threefold. one, i think they call it shrink, we used to call it stealing there's a huge problem and no way to change it we track every transcript and every word related to it we're seeing it across multiple businesses they've got to put stuff in plastic cases, some guy has to unlock it, the inventory is mismanaged your desire to go is impaired. the financing businesses, generally trends are starting to slow, companies lend people money to buy stuff on the website. there's a new term called buy now, pay later we used to call it something different. the third thing is the urban growth that they were counting on in some of these boxes, they're pushing back

you're seeing closings and less aggressive rent. i think there's issues across the board, lower revenue growth. i'm negative there walmart has a hybrid of things they have to deal with and i would say not a particularly compelling valuation i'll let the later guests convict me but it wouldn't be my favorite place to park money right now. >> bryn, malcolm mentioned health care. i know biotech is not necessarily directly health care, it's not like a health insurance, obviously you've owned the xbi, one of the bigger, more liquid biotech etfs do you still own it, and why >> yeah, so biotech in general has done poorly for the past few years. the way i've been managing that position is selling calls against that because i don't think it's going to get called away it's got a very strong channel but i think i agree with malcolm, health care is my sector pick for the year it hasn't done well, but when you look at one of the best

metrics, brian, when you're valuing a company is free cash flow yield energy and health care have the two highest free cash flow yields of all of the sectors, so i think that as this market broadens out, both biotech -- i think also because rates are higher and these companies, most of them don't make money the higher interest rates is definitely a headwind to a lot of these biotech companies but i'll just continue to sell calls within that channel. but i do think health care can redeem itself and have a good back half of the year as that free cash flow yield is high and stable as well. >> it is amazing, malcolm, i don't know if you have a view on biotech. if you do, let us know you look at america and i'm going to say something unpopular, it came out of covid, we've got a lot of health issues, some of them magnified by covid, obesity, cancer rates on the rise. i'm not trying to be negative.

i'm saying you think the market might reward these companies that are actively trying to solve many of these major crises that we've got going in health care, and yet to bryn's point, if you bring up a five or ten-year chart, it hasn't made any money in six years unless you actively traded it >> yeah, you would be a lot better off betting on our vanity and our interest in some of the weight loss drugs and botox drugs and things like that coming out of the biotech and health care names. but i'm more interested in the ways that the healing insurers are able to pass along the additional costs that united health care and other companies have told us they expect to see from seniors stepping out and having some elective procedures done it's a real cost driver near term, but i imagine that because of the way insurance works across all sectors, they will find a way to pass along those increased costs to the insureds through additional premiums, increased premiums so for the health care stocks

and the health insurers specifically, i just see a possible growth engine and profit engine near term bubbling up underneath the surface. >> i agree with you guys, as long as the market pulls back some i think the service providers have huge pricing power. i don't know if the market keeps rallying if they'll keep up. i think it's prudent defense if you think we're going to get a pause in the market, but i doubt they'll keep up if we keep ripping higher. >> adam, really appreciate it. good to see you on set thanks for schlepping in bryn, thank you, malcolm, thank you all. let's get to our twitter 'x' question of the day. we want to know which stock reporting today after the bell could see the biggest pop on earnings will it be alphabet, will it be microsoft, will it be snap or will it be texas instruments

cnbc closing bell on twitter i'm going to share the results later and maybe tonight on last call we'll revisit the poll and see who got it right let's get a check on top stops to watch as we head into the close. kristina partsinevelos here with that. >> i'm betting on texas instruments. i'm reporting on that. let's move to gm because investors are pumping the brakes despite an upbeat guidance that is dependent on successful talks with u.s. and canadian labor unions in months ahead gm is recommitting to the electric chevy volt but says a supplier issue has slowed down manufacturing of evs wow, let's talk about ge, at its highest level, actually, since 2017, after handily beating earnings and revenue estimates the industrial giant is raising its full year profit guidance, sending strong arrow space demand and record orders you can see shares are up over

6% and finally, biogen is under pressure today as the biotech company slashes around 1,000 jobs to cut costs. this comes as the company rolls out its newly approved but unprofitable alzheimer's drug in the united states. it also reported earnings and revenue, the top estimates but those shares are still down about 3.2% right now brian? >> we just talked about biotech not being able to get out of its own way. there you go kristina partsinevelos, see you in a few minutes we'll take a short break up next, going global. david harrow is here and he's going to break down opportunities he's seeing around the world and what he calls the most undervalued sectors globally this is "closing bell. we're back right after this.

welcome back financials are pulling back a little today, although the sector is up over 5% this month, as part of the market's broadening out story your next guest is finding more opportunity outside of the u.s., calling european financials one of the most undervalued sectors. let's bring in david herro it's been way too long, my man, since you and i have chatted it's got to be going on 20 years. good to see you again. >> less than that, brian you've been avoiding me for some reason i don't know why. >> you didn't want to get up at 4:00 in the morning at my previous show is my guess. good to see you, nonetheless i feel like european financials, it's like that sign in the irish pubs, free beer tomorrow, but

it's always today. they've been undervalued for so long when do they get some love is there a catalyst that needs to happen? >> there has been a little love over the last 12, 18, 24 months. they've done pretty well the main catalyst, what we've seen happen since the global financial crisis, when banks had to rebuild capital and you had negative interest rates, which in essence was a headwind, especially in europe where you had negative rates, and really the catalyst is interest rate normalization. now that we have interest rates going to 3.5%, 4%, you still have some growth and assets, growth and lending, you have very restrained costs, and most important, brian, most important is these companies are overcapitalized. what this means is everything that they earn they can either put some back in growth, but more importantly, give it back to shareholders in terms of

dividends and stock buybacks this is exactly what we see happening literally with every single -- well, every majo financial that we own, and just about every financial in europe. it's so overcapitalized, what they're generating today, which is good free cash, is being distributed back to owners so speaking of free cash flow yields, we're well into the low double digits, 11%, 12%, 13%. >> so we know you like a lloyds, not a pure play financial, a unique leader in insurance and maritime and a lot of things like that. >> excuse me, this is lloyds bank. >> oh, lloyds banking group. good, that's a new name then i was looking forward of going down the path of admiralty insurance. who is lloyds banking group and why do you like them >> lloyds bank is probably the single most i would say important banking franchise in the united kingdom they specialize in higher net worth, sme banking, and they're

just in the united kingdom they don't have -- it's not a universal bank it has a somewhat narrow niche and a very strong and loyal deposit base probably mid teens of deposits in the uk banking system, if not higher so it's a good, well-run conservative bank, and in the next five or six years, barring any big shocks, they basically will return their enterprise value to owners and dividends and stock buybacks good, stable business franchise. efficient at cost. very well capitalized and very shareholder friendly capital return policies. >> yeah, another company, i guess similar, would you consider -- not exactly analogous, very well known to our viewers, but what makes their business attractive to you as a stockholder >> as a stockholder you have a situation where they're a big

global insurance company, oakix, and the rest of it is selling mostly p&c insurance very well run company, low 92s, 93s, hugely cash generative. again, like i said about the other european financials distributing large sums of money to the owners. i think this is the theme, they're very well run, very low in cost, very good at managing claims, and as a result they have all the surplus capital which they're distributing and then, again, with higher interest rates this lends itself to better investment income. >> we recently interviewed the newish ceo of c&h, he took over case new holland, they make tractor, a john deere competitor they've got a structure with the

fiat fame, truly global company, exposed to commodity prices. what's the bull case >> the bull case is the lane is getting smaller and smaller. the world's population is getting larger and larger. there are two main agricultural equipment companies in the world that have the technological wherewithal to help farmers and farming, one is john deere, the other the cnh. cnh trades at half the valuation of john deere. they're not dissimilar deere is a little better, but cnh is competitive scott is doing an excellent job. when he came in there was a problem here and there, they needed to clean up some of the automation, et cetera. he's in the process of doing this they will be very competitive with deere it's a margin expansion story, and we're starting at a very low earnings base, and the big picture for agriculture, very

important to have these types of players who can get more productivity out of every acre of land. >> david herro, we did arable land, allianz and lloyds banking group. thanks for coming on "closing bell." let's not make it another few years, david. >> any time for you, brian. >> 6:00 p.m. central for "last call". thank you very much. up next, bob iger under fire the disney ceo facing some scathing criticism from the famed actor brian cranston we're going to bring you his comments and what they could mean for disney right after this

at pnc bank, you can find us in big cities and small towns across the us, where our focus is to always support the people who live and work there. because you call these communities home, and we do too. pnc bank. (vo) it's time to switch to verizon. sadie did. and now she has myplan. the first unlimited plan that lets her choose exactly what goes in it. now she gets to pick only the perks she wants and saves on every one. and with an incredible new iphone on us, no wonder sadie is celebrating. introducing myplan. get exactly what you want. only pay for what you need. act now and get iphone 14 pro on us when you switch. it's your verizon.

welcome back award winning actor bryan cranston, from "breaking bad," lashing out at bob iger at a sag-aftra strike event in new york city earlier today. >> we've got a message for

mm mr. iger i know, sir, that you look through things through a different lens we don't expect you to understand who we are. but we ask you to hear us and, beyond that, to listen to us when we tell you we will not be having our jobs taken away and given to robots. [ cheers and applause >> we will not have you take away our right to work and earn a decent living. [ cheers and applause >> and, lastly and most importantly, we will not allow you to take away our dignity [ cheers and applause >> powerful stuff. cranston's comments are the latest in a growing chorus of criticism largely aimed at bob iger and a few others. in the wake of his interview two weeks ago, he weighed in on the

heightened tensions in hollywood following the start of the writers' strike. remember this? >> there's a level of expectation that they have that is just not realistic. and they are adding to a set of challenges that this business is already facing that is, quite frankly, very disruptive >> julia boorstin is joining us live from los angeles to talk about what this could mean, maybe for the stock. cranston was fired up, julia. >> he was fired up and i would say that his comments and iger's comments really illustrate how far apart the two sides really are. now, keep in mind that interview that bob iger did with our colleague, david faber, that was nearly two weeks ago now, and since then, which is when the actors' strike started, we have not seen the two sides come back to the negotiating table so from what i'm hearing, there's a lot of expectations here in hollywood that the strike could continue to drag on and one thing i have to point

out, bryanian, as someone who follows this closely, when there were rumblings about what to expect, at the time people thought bob iger might be one to lead a compromise, and then after his comments and some of the reaction, now people may be disappointed that he's not the sort of conciliatory one and that the two sides really are still so far apart. >> do we have any kind of an idea of how far apart they really are it could be a thing that they make a deal tomorrow, like u.p.s. kind of surprised us today, or could this drag on a long time? >> well, i don't think they're going to make a deal tomorrow because they have to come back to the negotiating table first the first step would be both sides saying, okay, we're going to come back to the negotiating table, we're going to sit down and hash out different ways we can compromise on different issues and, remember, it's not just brian cranston speaking on behalf of actors ths also a writers' strike going on as well these two simultaneous strikes

with similar issues, but also their own distinct issues. these two issues have to be worked out and we have the association of the major movie studios and tv studios, that's what's negotiating with both the wga and ago sag-aftra. i think this is not going to be resolved in the next week. people are saying this is going to drag on for months, not weeks. i heard speculation that people were hoping it would end september 1st, people are saying november 1st, december it will be a long time before this is resolved and you heard it in the fire of both of the men's voices, they really feel like there are differences here. >> julia boorstin, thank you very much. julia will be joining us live from the game plan event that begins at the top of the hour. it brings together some of the most influential people in sports, business, money. for details, scan the qr code or go to cnbcevents.com/gameplan.

we've got a news alert for banc of california last hour leslie picker reported the company was in advanced talks with pacwest for a deal that could be announced as early as today banc of california halted, up 11%. pacwest down you're wondering, why would they be down if they're getting bought it's because according to the "wall street journal," it could largely be a take under, that maybe pacwest is bought out for less than the stock is, like no premium because you've got to take on a lot of assets if you're buying regional banks all the problems that began earlier this year, they're not all resolved there are some issues floating out there. pacwest collapsing by a quarter of 1% on the news that it may get taken out or taken over by the banc of california. up next, one wall street analyst flagging just a slightly

large retailer based in bentonville, arkansas that could benefit from a turn down in grocery prices we're going to get the analyst's take on walmart next your shipping manager left to “find themself.” leaving you lost. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire

(upbeat music) - [narrator] what if there was a hearing aid that could keep up with you? (notification dings) this is jabra enhance select. it's a smart hearing solution that makes hearing aids more convenient and less expensive. it connects with your phone so you can stream calls and music. with jabra enhance select's premium package, better hearing doesn't have to start in a doctor's office. it starts with a free online hearing test you could take almost anywhere, so you can get your hearing aids custom programed for you and delivered in days. from there, you can fine tune your settings with your remote audiology team seven days a week, so your hearing aids work when it matters most. (notification dings) in fact, more than 95% of enhance select premium customers report hearing better with their friends, family, and colleagues. with jabra enhance select, you can get the same advanced hearing aid technology and professional care you expect from a clinic

at a fraction of the cost. try at risk free for 100 days. visit jabraenhance.com.

bell walmart stock hitting a 15-month high earlier today it pulled back a little since then your next guest says there could be more gains ahead. piper sandler upgrading today. ed, thanks for joining us. how much is, thankfully, a slowdown in the increase -- not a decrease, but a slowdown in the increase of grocery prices helping or going to help walmart? >> so we think we started to see this process begin, you've seen it in areas like dairy and protein. we've detected a significant uptick in the amount of rollbacks, so packaged food, and so it seems like vendors are trying to drive volume at walmart, walmart is partnering with them and they're driving prices lower for consumers we've seen back-to-school right now at last year's prices. so it seems like the pressure is starting to abate. >> and, again, i was reading your note and i live and am

married to a consumer products executive, so i know about how walmart works internally, which is kind of this mysterious thing with rollbacks and you get these vendors. tell us in laymen's terms, what exactly is happening and how walmart is benefitting from companies -- you know, the sfl suppliers who will temporarily lower prices to increase volumes, i'm told? >> so suppliers have been struggling with volumes and i think what's happening is they're partnering with walmart, reducing prices for 60 to 90 days walmart buys more units of those items and feature them prominently. if you're walking past that great item on rollback, walmart is buying more and the vendor is providing the decrease in price for a stipulated period of time. >> and so these are all temporary programs, so what's the longer-term bull case on w walmart, because they simply get people back in the stores?

are they taking market share from others, and if they are, who is walmart taking share from >> we think they're taking market share from a lot of large competitors, from regional grocery peers, and i think it's a couplefold they're reintroducing people back to walmart that it's a great place to buy grocery they're seeing a higher uptick in household income over $100,000 as they bring the customer in that's feeling stretched, they're showing them there's a great grocery experience and we think they'll convert them into buying in other areas of the store. >> bullish on walmart. we're watching the name. thank you for coming on "closing bell." all right, folks, kind of like a short-term discount, it's the last chance to weigh in on our twitter question of the day where we ask you, which stock reporting after the bell could see the biggest pop? is it alphabet, b, microsoft, c,

snap, or, d, texas instruments there is no all of the above you have to make a decision. head to cnbc closing bell on twitter. we're going to bring you the results after the break and then 'lsewhe point tonight mayb wel e o won. stick around what do you mean? these straps are mind-blowing! they collect hundreds of data points like hrv and rem sleep, so you know all you need for recovery. and you are? i'm an investor...in invesco qqq, a fund that gives me access to... nasdaq 100 innovations like... wearable training optimization tech. uh, how long are you... i'm done. i'm okay. thinkorswim® by td ameritrade is more than a trading platform. it's an entire trading experience. with innovation that lets you customize interfaces, charts and orders to your style of trading. personalized education to expand your perspective.

and a dedicated trade desk of expert-level support. that will push you to be even better. and just might change how you trade—forever. because once you experience thinkorswim® by td ameritrade ♪♪♪ there's no going back. - "best thing i've ever done." that's what freddie told me. - it was the best thing i've ever done, and- - really? - yes, without a doubt! - i don't have any anxiety about money anymore. - great people. different people, that's for sure, and all of them had different reasons for getting a reverse mortgage, but you know what, they all felt the same about two things: they all loved their home, and they all wanted to stay in that home. - [announcer] if you're 62 or older and own your home,

you could access your equity to improve your lifestyle. a reverse mortgage loan eliminates your monthly mortgage payments and puts tax-free cash in your pocket. call the number on your screen. - why don't you call aag... and find out what a reverse mortgage can mean for you? - [announcer] call right now to receive your free no-obligation info kit. call the number on your screen. 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. let's get the results of your twitter question of the day. which stock reporting after the bell could see the biggest pop on its earnings? is it alphabet, microsoft, snap or ti? the winner, microsoft with 43% of the vote, alphabet coming in second nobody cared about texas instruments. i voted for snapchat

by the way, this show is off air in 13 minutes so maybe we should redo the poll tonight on "last call" and see who got it right. next, we're going to bring you a rundown of what to watch when the numbers had it the tape and do not forget to tune into "last call" tonight. if i can make it from here to there in three hours, there will be a show. and, by the way, it's 15 miles there have been times where it almost didn't happen welcome to new york. we're going to bring down all the big results. the conference calls and much more it's a great show, great tm,ea decent anchor. we're back after this.

(vo) it's time to switch to verizon. sadie did. and now she has myplan. the first unlimited plan that lets her choose exactly what goes in it. now she gets to pick only the perks she wants and saves on every one. and with an incredible new iphone on us, no wonder sadie is celebrating. introducing myplan. get exactly what you want. only pay for what you need. act now and get iphone 14 pro on us when you switch. it's your verizon.

at pnc bank, you can find us in big cities and small towns across the us, where our focus is to always support

the people who live and work there. because you call these communities home, and we do too. pnc bank. meet gold bond healing. a powerhouse lotion that moisturizes, heals, and smooths dry skin. with 7 moisturizers and 3 vitamins, you can pay more but you can't get more. gold bond. champion your skin. 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

welcome back we, all of us together, are now in the closing bell market zone and we're joined by citigroup to break down crucial moments and two mega cap earnings out after the bell deirdre bosa all over the alphabet watch, steve on microsoft. welcome to the market zone we're about ready to make it 12 positive sessions for the dow in a row, multi-year streak the record is 13, set back in 1987 unless we get a bigd downturn in the next few minutes, which we could. scott, i know you're optimistic.

iknow no one trades off the dow. the moves haven't been great but come on, 12-day streak, more than just a headline, or no? >> yeah, i think it's more than just a headline. i think it's a couple of things. we're going to be talking about mega cap earnings and that's one hurdle we thought we had to get over going into the third quarter. the other, i think, is probably as important, is we're getting the soft landing narrative beginning to take a stronger hold and this is leading to broadening that ultimately supports some of the action you're talking about, brian. >> you've got the $4,000 target. what do you see happening in the second half of the year that would send the market down that much would it start tonight if we get an earnings whiff from one or both of microsoft or alphabet? >> we've seen a couple of instances already. your big seven, if you will. we've had two pretty good quarters that resulted in sell-offs, and so that becomes an issue but the market seems to be taking that in stride right now.

i think what you're going to need to see is in addition to the earnings coming out, we've got the fed coming up, probably another 25 basis points coming at us. we're watching ten-year yields moving higher. the issue is, is there something in the macro circumstances aligned with what's happening in the micro that begin to say change the narrative here? it's hard to say we think that's the risk in the shorter term. >> i'm going to ask a question that has, like, a 25% chance of me getting fired on the spot does the federal reserve matter right now? >> i think as long as ten years are below 4%, i think the market is pricing in the peaking of the fed rate hike cycle. >> that's my point as of tomorrow, the fed decision, we kind of know -- could they change the game what i mean is not that they matter, have we looked past it it's been two and a half years of fed, fed, fed.

>> the market is looking past it now. you need some shock effect and it's hard to say where that's coming from given the way we're pushing out the recession risk scenario where is that going to come from i think it's going to be a materially higher curve move as you look at that longer duration, part of the curve, and that's not very visible yet, but that, i think, becomes a big risk factor going forward. >> scott kronor, bold, we appreciate bold. thank you very much. let's get a preview on the two things we talked about we've got microsoft and alphabet how do we decide who goes first? i love all my co-workers equally, but i thought we would go deirdre with alphabet >> that works. i thought you were going to say it's because i was your favorite i'll take it 40% gain this year year-to-date for alphabet, and that has largely been on the back of the promise of generative ai for now, the court advertising

business is expected to reflect a softer backdrop. you've got cloud growth and investors are really looking for not just alphabet, but microsoft and amazon as well signs of a bottoming here that i.t. spend-back is coming back and ai monetization, i don't want to jump is gun but look what happened earlier this week with microsoft they came out with pricing and the stock jumped investors may want something similar from alphabet, especially if they're not going to show how they're monetizing it right now investors are going to want to know how they're going to. those are the things we're looking for. >> you know all the heavy hitters. is anybody quietly whispering to you that ai could be not a benefit, but a threat to google's business? why would i need to google anything if i can just talk into a phone and then ai tells me what to do what's the best restaurant near me, right? >> right the whole idea that generative

ai chat bots are going to kill google search, that's further on the horizon. what may be important for this quarter in front of us is capex. all of those nvidia chips have got to go somewhere. who is buying them the hyper scalers like alphabet. does that change their capital investment, their spending this year that's going to be an important question, especially as the core business and cloud remains perhaps a little slower. >> that is it. i love it. we'll let you get ready. the numbers crossing after the bell, earnings call. thank you. let's go to the other one, my equal favorite colleague. steve, what's the under/over on how many times microsoft executives say ai or artificial intelligence on the call, under or over 50 >> i'm not even going to bet but if you play a drinking game you might pass out hearing ai so much >> don't do that. >> it is all about ai. and like deirdre alluded to,

microsoft gave investors a huge gift by announcing pricing for how much they're going to charge for this ai copilot that they're putting in outlook and teams and microsoft word $30 per month per user, that's on top of the $36 that many enterprises are already paying so you can do the math there there are a few hundred million users for microsoft 365. look, there's a huge opportunity there. but what we haven't heard from microsoft yet is when they're going to start selling it. they're only testing it for a small number of current customers. >> here is a question you probably can't answer, so i don't mean to put you on the spot microsoft is really known for, like, adding everything together and then you just have the stuff you didn't even really want. i've got powerpoint, i don't use it, but i've got it. is everybody going to have to pay the $30 a month or is it going to be an optional thing? if you use 365 at nbc universal, are they going to automatically

have to pay? >> it's an option and that means the burden is on microsoft, brian, to prove that this copilot, this ai is so good that you can charge almost double what you're already charging so, look, they had their b2b event last week, these are the people in the room making the purchasing decisions, including probably people from our own company. so if you see that pop up in your outlook pretty soon, that means nbcuniversal has ponied up. >> by the way, i use edge, edge is better than chrome in my opinion as a browser and now they've got the ai kind of built into an extension on edge. is this going to be like clipping, remember that annoying paper clip dude? >> i wish they would bring clippy back. this is clippy on steroids, or at least according to them this is a much more advanced version. it can do much more than kind of suggest, or, it looks like you're writing a letter. this, for example, if you miss a meeting on teams, for example,

brian, it can actually listen into that conversation and then when you come on and log on later, it can csay, brian, here is what you missed, here are the action items microsoft says it works well and it's worth that extra 30 bucks a month. >> i never have to listen to teams, i can ignore the whole thing and at the end i can say, what just happened >> that's exactly how it's supposed to work we'll see if it actually does. >> now, that is news i can use. >> there you go. >> steve, we'll let you get in decision microsoft and alphabet as well i voted for snap, by the way, on the poll maybe we'll revisit the poll on "last call" tonight, 7:00 p.m. eastern, to see who won. so the dow is up, right? there it is. the dow is up barely, but we're going to finish higher, i think. i don't want to ruin anything. thank you for clapping we close higher, 33 point up, 12 days in a row, a streak, the

s&p, nasdaq also higher as well. russell 2000 trying to literally squeak out some kind of a gain it looks like we're going to close higher tomorrow will be lucky taylor swift 13 >> i won't be here but if you need another "last call," john and morgan with "overtime" now we've got your scorecard and winners really stay late i'm jon fortt with morgan brennan. the dow has ex extended its winning streak for 12 days >> and now brace yourself for a whirlwind of big earnings reports, alphabet, microsoft, visa, texas instruments and snap we're going to break down all of the results as soon as they hit the wires. >> let's get right to it joining us, adam