an all-star cast of cnbc and investment talent. we're look at the landscape heading toward 2024. tomorrow in new york city. look at the dow. >> it's come back in the last hour. >> the s&p is green. if you went to lunch and came back and had a crisis plan, now you throw it out the window. >> we'll take the credit. thanks for watching "power lunch." >> "closing bell" starts right now. >> as kelly and tyler said, this is a late day turnaround. we are fighting back, as we begin the final stretch. apple really at the center of a lot of action today. it's trying to fight back.

will it go positive? movie, alphabet, amazon, all now in the greenthat is the highest level in more than a year, making investors the fed a bit uneasy as well. we'll see how it progresses. it's now green. we'll see how long it stay there is.

>> interesting day, to say the least. before we get to apple, i can get your pin on this comeback that we've had. josh, and they just decided that, you know what? i'm coming in and buying, because some of the selling got too much. >> so, you know, if you see a sea change, for example, in allocations, large pools of wealth, people buying etfs, these are at the stocks that will be first to feel it. they stocks have been hit.

>> apple is one of the stocks still standing. it's 12%, but at least it made an all-time high. . the largest is tesla. amazon is 32% off its high. meta, 22%, never got a new high. so at least apple has held up better than the rest? >> think the bigger point here, a lot of times, when you sell shares of apple. >> in 2022, they authorized a stock buy back. then in may of this year, they did it again.

last quarter, they spend $18 billion buying bake their own stock. as the company, and i think that should be -- people should be reminded of that. >> does this tell us today it's literally been the last 30 or so minutes. is it definitively as go apple, so goes the market for now? >> on an index level, yes, for the most part, but we've been looking at the overall market of stocks, knoll just the largest index weights. and then you look at what stocks actually have positive returns, if you break it up deciles, this

has not been a local of fun. every decile has been down. the 20% of the market with the highest market cab, that's where they've been. bespoke was talking about today, you know, over the last four years, you've had bad september the gains are consistently good. part of your point is we're not getting a repeat of that.

i respect the act that maybe the seasonality it's also very true that in the third year of the presidential cycle, historically september has been even more remarkably sloppy. i don't know why that is, but that's the back drop, and it doesn't matter if you believe in it or not. if enough people believe in it, that's what makes a market. i would say i would think about it more simply as a classic situation, where you have more than half of the active managers we know why they're trailing. they're not overweight.

we got one quarter left to figure out whether people already competitive with the index or not nest year. if you could beat them, join them. >> hold your thought fee section. >> he has a teem that now is the time -- he joins us now on the phone. we've had an interesting turn as i suggested i have focused on what i see around growth.

i view this more as a golden buys opportunities. >> now he's an analyst, you may look at the same data and come to different conclusions. that's about 25 times -- i would like to see it derate even more. >> wee is that such an out there view relative to yours?

i think services is actually accele accelerating i come down to 25%, it's not an upgrade for the four-plus years. i believe apple is one over the six, nine months, i don't see it as a teem to go into the bunker and yell "fife. i believes this is the macro, the start of a macro market. >> and you're comfortable with the p/e? >> my view there is this is the names on a services business. i think it's a big part of expanse story that we see in the

next few months. >> you have to let you run. dow a., as i i said that, now green. >> i do ten to great that it's not necessarily the fact of they would need to fall later. >> you ask the question, if it's continuing to advance, do we need the countries need to be a part of it? >> think yes, we need to go more growth and more quality, so it's more of a yes/and then an only.

>> and other have cited the fact because of that, you're going to have a run to the finish line at the end of the year. >> i hope so, but my base case is we'll see a range bound in the volatile market. the number one thing i am looking at is market financial conditions. but reason of the stability is the disinflationary process has seemed pretty stable. if that's capture markets attention, that's likely to collapse with the tighter monetary policy.

>> is that ultimately the determining factor? you can talk about oil, too. that's going to be a headwind from something in how they're thinking about things moving forward. the gradual advance, obviously not great at the pump, but also not the end of the world. i have a question for lauren, the russell down not participating at all? does that have -- with the tightening conditions that we are seeing?

>> i think it's a very fair perspective. to a certain extent, yes, that's true. that's fairly typical for any economic cycle, while the market does tend to lead at the economy out of the recession, it's not until we see unemployment claims rise so the answer is question, and i expect more pain to come. why he's still negative, to josh's point. >> equality weight, s&p ugly. we're talking about seven to eight stocks in mind. and that's let everything.

you can get better gains, rewards for less risk elsewhere. >> this idea that if you're earning 5% in cash i do think, at least for the medium term, this is a risk of not take any risk. getting into the market a month, two months before the fed is down a similar dinattic is true in the equity market. missing out on those days, it's something that i think investors need to keep an eye on.

>> i love that. the risk of not taking any risks, i love that. qt headwinds, stronger than they aren't. james legitimate doomen saying geopolitics remaven the risk. >> just simply beyond what the day-to-day tick of interest rates has been? >> i think a.i. saved the stock market in 2023. sometimes around march/april it

was like a switch was flipped in the biggest park that move the chains. -- amazon just did a deal for a company, and we're hearing headlines about openai. okay, we're going to see. if there's any hiccup at all in this story. if we start seeing headlines, it turns out there was a ton the double ordering for gpus, or we hear from an oracle or microsoft that actually demand is not as big as we thought it would be, or it's tapers off. we might have baked too much into the cake as those stocks

come down, it's not like exactly you have agreed reasons to provide -- the economy is slow, and we know that, so, if you asked me what are you most worried about, i don't want a preannounce machined out of the megacap 50 tech names that have run up on this a.i. thing. >> you want to address that? let's just take it as it is here. the last time the maker made this big of a bess for society, it doesn't end well. we're talking 2000, okay? some of those companies are still around. many are not. >> no fun intended to though, right? >> seriously. 15 to 20 names we've seed are

the ones that may benefit. what's the risk in that? >> there's of course a concentration risk. if we do get news like that, i'm a huge buyer of that different. the margin and the important of the foundational layer that these feet or real ly are contributing is so important. the semiconduct or time chain is so del indicate, to global, so complicated, so i think there's a margin opportunity there that they're taking advantage of. the other thing i'll say about this trend, we know the foundational layer is not the beginning and end of a technical level up.

there's digital infrastructure that's required and an application layer that's going to follow as these data structures and algorithms get built. to complex the megacap. >> what areas will have a catch-up trade? >> let's say that tech stays stagnant. when energy led, not so well. the market had a horrible year. i don't know that energy stocks will save the day. there's been a disconnect between the run-up? crude and energy stock performance as it is.

there's nothing to suggest that these stocks all of a sudden are going to save the day. >> i think two things happened last year. number one, you just had an imbalance of the amount of people willing to buy energy stocks versus their true economy footprint. the energy industry in the united states is massive relative to what its market cap was in the s&p 500. suffice it to say we're in a -- and people can't say that there's that same imbalance. it's hat for me toy centering growing large enough from here to bail out the returns of the stock market this is stocks are just not big enough. you could have an energy stock

rally, but that people benefit from if they keep at least an index weight in those names. i think that's probably a good idea. i've got one more, lauren, for you. it plays off our delivering alpha survey. we asked the question -- has this been all along a bare market rally for a bull market rally. now, look, that leads us to a mild recession, but likely, that can be an easy 15% off the s&p 500. so i think we still have some volatility to come.

lauren, thank you. josh, thanks. we'll see you soon. we want to know -- how low will apple go? will it go below $165? between $150 and $16 a, or breabelow $150. kristina partsinevelos has more. >> miller lowe after the office furniture giant beat estimates and posted strong guidance. it says it's benefited from the return to office trend. mi mi mi millerknoll is up now. nextera energy is low.

that's overshadowing even a $900 million sale of one of the its natural gas subsidiaries to chesapeake utilities. shares down about 8%. we'll see you soon, kristina. up next, trading the volatility. jason hunter is with us to break down the key levels, a bit of a different story, dow fighting geffen for positive territory. they're all there. we're live on cnbc. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities,

while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley. what do you see on the horizon? and stay on top uncertainty? or opportunity. whatever you see, at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today.

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welcome back, "closing bell." let's get the next key levels to watch from jason hunter, the head of technical strategy. good to talk with us again. i think my first question would have been different an hour or so ago. have we reached such an oversold left that enough is enough? >> that's jpmorgan, not morgan stanley as well. my bad. my bad. >> that's okay. the charge that the market rejected as 4600, that really defines the balance from the october 2022 lows that is also where the market broke out some the economic data first started

to surprise that said, the oversold if you look one by one, it's worked its way up the cap scale. we could 4100 has been the down side area. we're not there yet. >> does tech hold -- like i had,

if you look at the new york stock exchange, that tells you all you need to know. >> at least a tradeable low. >> i mean it's easy to obviously get all beared up -- a lowy september to only have a positive fourth quarter every single time. we'll see if history repedestrians itself. >> one is the short term, i would still stay underweight

here. also, take a big step back and look at the macro cross-market set up. you have a curve that's been inverted for over a half. the data was strong in the summer, and it's pushed forward the probability of recession, some even says soft landing now, the curve has been there a while. then the market carves out a multi-month i think you have to keep an eye on the bigger picture as well. so i would be patient and wait for the ideal entry levels we think we're at the point where you actually could see the rate correlation that's been in place much like the 1970s. we think you can't see the flip

here. you know, in our view that might be enough volatility where you actually generate a flight to quality bid. it's easy to mare that call. the long end has had more volatility here. >> i'll leave it there. jason hunter, jpmorgan. my eyes are playing tricks on me. embarrassing. i apologize for that. >> no problem. up next, meta's developer conference officially kicking off today. the stock officially selling off. what's behind the move? we'll get a shareholder's reaction, too. after the break. "closing bell" will be right back. like the fairfield-suisun unified school district switched to google tools for education. so they can focus on teaching

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dura during the developer conference. steve kovach here has the details. initially we didn't like the headset. we wanted a.i., we didn't want to headset. what's the story? >> shares were down nearly 4% during mark zuckerberg's presentation. here is what he announced, the metaquest 3, the third device in the headset lineup, and they will all compete coming next year. the snoop dogg one is a dunker master you can role play with. the rayback glasses let you take pictures from the camera and

share them to social media. you can ask questions, so why the stock reaction? >> well, media is still focused on the money-losing metaverse. the thoughtbots were framed as -- or if it they have a co-pilot a.i. product they're actually selling. it's unclear how mesa plans to make money off of this, scott. >> we'll see. i don't know. we are both at the apple event, too, and we were calling it a hangover when the pricing came out. it lasts for a bit, and here we are talking about the companies

hoe didn't mention apple by name, but implicit is this is a $3500 headset. the apple version is much more refined, but zuckerberg's thesis seems to be make it more cheaper, more allegesible and in the hands of more people and really build that platform power. to date that hasn't worked out, they tend to be really expensive for them to develop. let's bring in a meta shareholders, stephanie link. good to see you. how do you put today's announce m ment. >> i think this is simply sell

the news. the quest3 was exciting. >> better performance, better resolution so, i think it was kind of expected. when will they make money on this? we don't really know. is the hardware maybe by 2030 will be -- and all things metaverse is expected to be so the growth is there, scott. it's just not here yet profit profitability-wise. i think the other reason the stock has sold off is the head of the a.i. division is leaving the company, and she's been there since they started to

reorganize. chips in-house was to help lower cost overall. the big part of the story is the cost cutting, the cost discipline. they're still committed to this business to making a.i. chips themselves. i trimmed though down to about 5%. that's where it is. the stock is only do you about 8% from its highs. >> so i just think it can tread water for a bit. they're down 13% from their highs. i think it's down 15%, 20%.

the valuation is very attractive, and i do believe in the reacceleration story. >> you don't think big tech more broadly is in any kind of danger in trading significantly lower from here? >> i think it could. it's entirely possible, but i am looking for opportunities. i bought cisco last week. i added cdw a couple weeks ago. i would look for -- i bought amazon as well. so i would look for some of these other big techs. they're just not down enough. of course they can be volatile, and higher rates for longer. we talked about the headwinds that that presents to technology assets. >> steph, thanks. we'll see you soon. >> thanks, scott. up next we're tracking biggest movers with kristina partsinevelos. >> it's time to play pictionary with an a.i. bot, and boosting

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15 minutes before the closing bell. the market can't may up its mind. that is why the last 15 minutes

matters so much. kristina partsinevelos is watching the stocks that are on the move as well. >> that's right. it's exciting to be watching. call this an a.i. goody being, but cloud flair, with a new partnership. that means they can build the application on cloudflare's platform. morgan stanley thinking mattel is turning a corner and continues to benefit from licensing efforts related to the "barbie" movie. the stock is currently trading under 22. separately mattel is releasing pictionary versus a.i. in this case a.i. would guess what you drew instead of your friends and family who happening to be playing the game with you. >> thank you, kristina

partsinevelos. last chance to weigh in on our question of the day. how low will apple go? not below 5,16 between 165 and 150, or below 150. 150, or below 150. we're back after this. next level moments, need the next level network. [speaker continues in the background] the network with 24/7 built-in security. chip? at&t business.

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or filing returns. avalarahhh ahhh our question of the day. most voters say not below 165. it's been teetering around 170 all day. that has the market a bit unsettled. do not forget, "delivering alpha" tomorrow. we have key guests there.

scan the qr code to get your tickets. i notice you don't want to miss that. up next, we're setting up for micron earnings. we're right back. at pgim we can help you rise to the challenges of today, when active investing and disciplined risk management are needed most. drawing on deep expertise across the world's public and private markets in pursuit of long-term returns... pgim. our investments shape tomorrow today. this is american infrastructure. megawatts of power, rails and open road, and essential services of every kind. all running on countless invisible networks, making it a prime target for cyberattacks. but the same ai-powered security that protects all of google also defends the systems running america's infrastructure. for these services. for the 336 million of us living here.

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you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley. ♪ we're in the "closing bell" market zone now. mike santoli is here to break down the crucial moments of this trading day. plus, bank of america ceo says higher rates are beginning to affect the consumer.

and kristina partsinevelos is looking ahead to micron earnings out after hours. mike, it's not closed below $170 since may 4th. it's flirting with that. >> the overall market has retraced back to early june, so apple having a deeper one. it's coming selecttively for the big index names. alphabet has been firm today, so it's not one of these across the board, throw everything overboard type of days. you can see how things are wound tight. understanding is know passing around all the indicators how oversold the market is. somebody, of course, always decides to front run it. you get one of these quicksilver ruly attempts and that is the

twitchy actions you get. bond market, sort of slowed, but hasn't stopped. >> the market will not get comfortable even if we get a bounce. sentiment is reset very well. valuations are off the boil. if the rates kill the economy, that's the problem. >> tracking the ten-year a little bit in terms of the s&p. 461, you saw the highest levels of yields today, lowest levels for stocks. stocks are now fighting it south. brian moynihan says he's seeing the signs that the fed's tightening is affecting spending. >> for all of 2022 verse '21, they spent.5% more. for year to date about 4.8%

more, now 4.5-ish for the month of september. you're seeing they have slowed down. if you're trying to engineer a soft landing which people have or close to that, and balance that the, looking at occurrence data, they have won against the american consumer. >> that's brian moynihan there. we're all trying to gauge exactly where the consumer is in this fight. >> i imagine it's been pretty consist president somewhere the data. people are spending what they're making, maybe a bit more. 4.5% sounds comforting, but it's also basically keeping up with inflation. it's not exactly like the consumer is all that energetic, but the consumer is also typically not really a leading indicator. they're going to keep spending it as it comes in the door. i don't think there's much more alarmed with now versus what we knew a month ago. mortgage rates where they are,

we are seeing some stress a little bit on lower-income consumers. that doesn't seem to be the main issue. it's all about the market trying to extrapolate what it's going to mean as rates reset higher, energy prices act as a drag. you know, is it still an economy as we thought it was in july, in need of slowing down. remember, that's how the narrative has changed. wall street set after july numbers came out, wow, this thing is overheating, then the fed has its meeting, did you notice how hot of economy is? we're already past that, and you're telling us higher for longer. that in a nutshell is has the market has ingested what the fed is saying. it seems like it's move on non-fundamental reasons. we're not repricing the fed, not responding to inflation expectations. it's about supply and downside momentum. >> oil prices may be a new

variable, too. >> it's an element, yeah. kristina partsinevelos, those earnings couldn't could come at a more interesting time. >> micron sets the bar, the earliest. memory prices have been turning the corner, but micron has a make overhang, and that's china. it moved to back some of micron's products. that's almost 13% of total revenues. this august quarter, though, will be the first quarter to show the impact of the ban. despite the ban, analysts are expecting an improve environment, and why the stock has higher compared to the smh, micron shares are you will, but flat to the positive today. there are three reasons, three memory makers that have been cutting supply to undership demand. that's helping memory prices.

and also at a conference this past august, management said pc, as well as smartphone inventories, are actually in good shape. then last, but not least, scott, a.i. micron is working on they highs bandwidth memory chips strong enough for a.i. infrastructures. micron expects meaningful revenue from that segment in fiscal 2024, so expect a lot of commentary on that on the call. >> you'll be on it, and we'll look forward to the reporting on those earnings. mike, as we wrap it up, less than a minute to go. megacap will be an interesting question, like an air pocket. >> yeah, there's not enough to drive it aside from the meta news today. it's honestly to me small caps outperforming. they'll be a creature of how

people are feeling about the market in general. whether we feel we have more or less digested what the bond market has to do. they will either ride along or lead the way out on that. that's the call there, up 1%. >> we're going to fight it into the last seconds. we go to "overtime" now. ♪ a whipsaw day for stocks as the major averages rebound. even with the ten-year yield at 4.6, a big market comeback. that's the scorecard on wall street. welcome to "closing bell" "overtime." i'm morgan brennan with jon fortt. dan niles is makin