>> it was like the old rocky horror picture show. everybody knew the words and would stand up and play it out! i think to a certain extent we'll see more cinematic film experiences that are like the rocky horror picture show, more interactive. if you're going to have a lot of people together in an audience, you're going to have some element of fun. it's like going to see a horror movie where people enjoy having a lot of people scared and jumping out of their seat zwls we'll see you tomorrow at the tech event. >> thanks for watching "power lunch." "closing bell" starts right now. >> thanks so much. welcome to "closing bell," i'm scott wapner live from post 9 here at the new york stock exchange. a big market reversal and the question that might be at the center of it all, did bond yields just peak today? that's what one billion dollar investor is begt on today. here's your score card with 60 minutes to go in regulation. it's mostly a tale of two sessions. yeah, the dow is modestly negative, but everything was negative. early on the ten-year hitting a

fresh knew cycle high. stocks were selling off until late morning when hedge fund manager bill ackman, yields they quickly fell, stocks quickly recovered, the nasdaq today, the big outperformer, mega cap stocks took off. take a look at the nasdaq up near 1%. that coming ahead of their earnings, which begin tomorrow with microsoft and alphabet, takes us to our talk of the tape. what if we really have seen the top in rates just as tech earnings are about to roll in. could it be enough to get stocks back on track towards a year end rally? let's ask jpmorgan's global investment strategist with me here at post 9. >> good to see you too scott. it is an interesting market move. what do you make of it. >> when we saw rates almost touch that 5% mark, they were basically at a buy at 4%, but 5% just becomes that point where you got to lean in now, and so, you know, hearing that institutional investors are starting to lean in at duration,

it only makes sense in the rest of the market to start to make that move as well. maybe we saw too much of a sell for some of the geopolitical tensions we've seen over the last couple of weeks. >> that's pretty much ackman's point. we can show his tweet when happened earlier today and did have an impact on the market. too much risk. there's too much risk he says in the world to remain short bonds at current long-term rates. the economy is slowing faster than recent data suggests. he covers a short, what does it mean for now for the market itself for stocks if he's right? if we assume that rates have peaked, what's it mean? >> i think it means that investors should start to add in duration now. they've been waiting for that moment for rates to fall for the markets to sort of give them that point where they need to move out of rolling t bills or those cash positions and start adding duration. to me this is that moment. they should take that opportunity to move in. i understand that growth expectations are still pretty high. we've got gdp expected to come out later this week.

and expectations of above 4% on a quarter-over-quarter basis or a year-over-year basis. so that to me, you know, that's probably one reason why yields have been up on top of all the other things that we've been talking about, but i think clients need to -- or investors need to stop trying to time the market and lean in now. it's going to be a bottleneck when it starts to move, it's going to move pretty quickly. >> now, before rates really started to shoot higher, before we got above 5%, the narrative seemed to be, well, we might be primed far late year rally. seasonality is back on our side, and the table seems to be set. is it still set? how do you view equities now? >> earnings have been a bit muted, i think, you know, so far this point, you know, there's a little bit of disappointments in the regional and the health care space, but it's still early in the game, right? we haven't seen, we've still got the big tech names the rest of this weekend. we're optimistic that we've seen the trough. those last three quarters were probably the last three negative quarters at least in this cycle, hopefully we'll get that

positive back. i know the market has moved away and i was expecting 0.4% contraction. but we believe that we're still going to see positive earnings. from there you should see a tail windy, and that soft landing is still very much in play. we expected vlolatility, and that's what we should expect from a couple of data points. >> i want to underscore what we're watching on the screen, a ten-year note yield down 72 basis points today. it was a smidge over 5% and then it pulls back. let's assume that rates back off instead of back up, right? they back off a bit, and tech earnings this week come in as expected, if not better than expected. is that enough if you just wrap your arms around that, is it enough to get stocks to where the bulls want them to go over the next two months? >> i think definitely. i think if rates start to come down, the bulls lean in. you take advantage of both sides of this equation. the 60/40 portfolio has never looked this attractive. we took advantage of looking at

it from a real yield perspective. real yield at 5.5%, if you go forward about 12 months on average you get a total return of 18%. right now it's flashing around 5.6% from a real yield perspective. take the opportunity on this entry point in bonds, but also take that opportunity in equities right now. so i think they should lean in on both sides. >> wow, the 60/40 portfolio never looked this attractive because the narrative over the last couple of years was the 60/40 portfolio might be dead. now we really have a change. >> we definitely have a change now. when you finally see yield on that fixed income position, you've got bonds doing what they're supposed to do. i think everybody because of the last couple of years, last year was one of the worst years on record for fixed income. now investors don't want to get caught in the same situation. now i think it's saying that opportunity to lean in and i think they should take advantage of it. >> i want you to hold your thought for just a moment. i do have some developing news regarding the chip space. kristina partsinevelos has that story. we're talking nvidia and intel,

and maybe others. what's the story here? >> yeah, the story is right now coming from reuters. i'm waiting to confirm it. it appears that nvidia is working on a cpu, aka a pc chip, so this would be a computing chip for pcs used specifically with microsoft. this is a big deal because that means that nvidia is not only going from dominating the ai chip space but it is slowly moving into the pc space, which was or is dominated by intel, which is why you're seeing the negative reaction in intel's stock price down 2.5%. nvidia up 4%, in this report too, it's not just nvidia that's working on this new cpu chip for pcs. amd is said to also be working on a version, both amd as well as nvidia are working on these pc chips using arms. you can call it arms language, arms blueprint, so there's a lot of collaboration between these companies. arms we know just went public not too long ago. this is not good news for intel given it dominates the space and

now you have two big chip makers potentially entering. >> i wanted to see arm. i was just going to ask for it. we threw it up there. it was up 6%. as you would expect, right? arm, nvidia, higher, amd, that remains to be seen. i appreciate that, christina, very much. we'll be back to you in just a little bit. we'll certainly follow it, nvidia, by the way, all those mega cap stocks reporting earnings this week. nvidia doesn't report until in november. we have a little bit of a minute before we get to that and apple for the most part too is in that same boat. let me ask you this. is tech enough for the market? do you feel like you need the market to broaden out more? are you satisfied if just tech carries the load like it did for the better part of this year? >> i think we need the market to broaden out. i think that's one reason that investors should lean in now. we've seen the magnificent seven carry the way. the valuation looks a little bit more attract iive.

we think there are opportunities in tech, not to dismiss it completely because there are opportunities outside of the magnificent seven but even in some of the mid cap growth or some of the smaller tech names for opportunities because, you know, we like sort of the electronic semiconductor space, electrification there as opposed to some of the maybe analog space that has really sort of pulled back a bit because autos really haven't performed as well. that's part of where we are in the cycle. so i think seeing, you know, the equal weight and the opportunity for equities to potentially reach all-time highs is our view in 2024. we need some broadening for that to happen. >> let's broaden the conversation, cnbc contributor, schenn na sha coe is a joins us now as well. interesting market action today as we said and maybe a lot of it because of this ackman tweet which got a lot of people talking whether it's time to figure that bond yields are maybe peaking. they're going to go down. now, he didn't offer on twitter

anything regarding where he thinks stocks may be going, but he's obviously long equities. this was a way that he had hedged his bets so to speak on all of that. what do you make of it? >> well, i think there's obviously -- you know, there's a lot of attention paid to this tweet, but there's also just a lot of attention being paid to sort of this 5% level, and i think that, you know, whether it's, you know, the perception that we are entering into a new phase where we have to start worrying about reinvestment risk or whether it's some of that repositioning, scott, that we talk about that happens in this last sort of four or five weeks of the year. i think there is an acknowledgment that at some point whether we are at peak yields here or whether we haven't yet crested that, we're still at the end, if you will, of this particular cycle, and so if you're sitting in the short end of the yield curve, and you know that eventually those rates are going to come down and you want to make sure that,

especially given the dynamic of the last 15 years or so, that you're getting some yield on a long-term basis, i do think that you're starting to see institutional investor, even some individual investors start to push out on duration. there was a little bit of a head fake earlier this summer around that, july and august, there were a lot of people that were talking about potentially p pushing out on duration. we caution if you're making a one-stop binary type move into longer duration, you might want to actually take it a little bit more slowly because we've seen a lot of volatility. you talked about the volatility today. there's a lot of volatility in the rate market and a lot of things factoring in. >> shannon, part of the problem of the push and pull of rates falling, maybe they're falling or going to fall because geopolitics are bad, and as ackman suggests relative to the economy, maybe it's worse than we think. and on that note, marko kolanovic, jpmorgan, we always highlight his notes because he puts them out in the afternoon. he's been negative. he's closely followed. he says, quote, financial

conditions remain a headwind. that's the title of his note. underscoring why he has been and seemingly remains negative u.s. stocks. what do you think about that? >> i think that one of the things that you have to take into account is that you're right. i mean, if we're seeing particularly movement into the longer end of the curve, we have seen three major buyers really kind of back off from that market, scott. china, japan, and obviously the fed with quantitative fi tightening, if you're seeing people fall into and sop up some of that issuance in the longer end of the curve, the implication of that is perhaps there is a little bit more uncertainty, and i wouldn't want to say negativity, but a bit more of a riskoff trade. when you think about what that means for the equity market, we were just talking about the breath that's needed for this rally to be sustained. mid cap, small cap stocks, if you're starting to see a

risk-off appetite in the market, you're not going to see that broadening out across cap. i do think there's a cautionary tale here if we do see a real move down in yields that likely implies that people are looking to get a little bit more conservative in their positioning. >> the whole notion is hard to cheer rates going down if they're going down because there's a flood of money coming into treasuries as a safe haven trade. we're worried about geopolitics, what's happening in the middle east, and then deterioration of the u.s. economy forces people into treasuries. what do we make of that? >> yeah, i mean, you know, our overall view is a soft landing. there is always the risk of a potential recession or stronger for los angnger is a sense. your yields could go higher and equity wills calm down. you have to look past the wall of worry and have a little bit further conviction on a long-term views. and if we look at earnings projections that have continued to be positive going forward we have to lean in right now

because, you know, i guess when you think about it, there are still the upside probability our base case. you kind of have to add on when things are oversold at these levels. >> base case is soft landing over recession? >> yes. >> interesting. shan, this idea of what a.j. said earlier, 60/40 portfolio never looked more attractive. never looked this attractive. you know what the narrative's been, as we suggest a moment ago over the last couple of years. to some the 60/40 portfolio never looked worse than over the last couple of years. >> i think we go back to 2005, 2 2006, you had better make sure you had international exposure back then. i think it changes and morphs over time. if you think about the 60/40, what you're really looking for is you're really looking for people that are retired or savers that are getting enough income off of their portfolio to sustain their lifestyle, and you know, with less volatility, and

technically, even though we have seen a really volatilie period, on a go-forward basis that volatility is going to come down and you're getting a lot more out of the 40 than in 2017, 2018. i think the other thing is is thinking about the 60/40 is that diversifying yet across regions, across cap, i still think that's important because although we've been in this period where large cap has been the place to be making sure that you're diversified sets you up better within that 60/40. >> in terms of areas where, you know, you favor -- this is interesting from marko kolanovic too. he favors a barbell -- you want to know how negative he is? favor a barbell of defensive and energy. do you agree or disagree? >> well, i think we have a little bit of defensive, and when it comes to, i guess the defense sector, i mean,

defensive stocks, we're moving maybe more neutral on some sectors because from a valuation perspective. for us, i think the -- when we look at, you know, consumer discretionary or aerospace in defense as well as industrials, we see that they haven't fully recovered from the pre-pandemic levels. we like that entry point from a valuation standpoint. to go completely in the bunker, i don't think that's really where we are right now. i think for us it's really the optimism, looking at the growth is actually a positive that essentially we are seeing sort of a trend of disinflation, cooling labor market, although obviously recent data points still hot. things are moving in the right direction. can't take one data point and let it drive the whole train here. >> what about the banks? what about the banks? regionals have been under pressure. rates going up, not good, puts more pressure on that area. people talk about that, what's happening in real estate, how do you see that? >> the regional banks are going to continue to have pressure until the fed starts to cut rates. that's really been the story since march here. we understand what's going on there. we don't expect that sort of headwind to really come off

until we start to get maybe into 2024 and if the sep is right. now, you know, with energy it's tough because obviously with everything going on in the middle east, there's the possibility for energy prices to go higher. we're ina different position than we were in '70s and '80s, net producers as opposed to net importers. the risks are always going to be out there. ultimately we're kind of leaning away from the regionals and office space just because we haven't seen essentially, you know, activity come back to pre-pandemic levels. >> shan, what about energy? i'm looking at crude. it is interesting today, crude's at 86 bucks. it's down 2.5%. you know, people have been picking energy as a sector lately because it had gotten going again. are you one of them? >> yeah, i mean, listen, scott, you look at the valuations, and then you talk about, oh, where are there are still opportunities from a valuation

perspective in the u.s. market. it's sin ccertainly there. energy companies in the last decade or so have really shown an increased discipline around capex and really anticipating that oil prices would be sort of lower than they have been more recently in this range. i think the other thing to think about, there isn't a one for one movement between energy prices and stocks. if you're buying energy here from a stock perspective, you're really anticipating that this supply constraint will continue into next year and 2025. you really shouldn't be basing it on what's happening in the middle east. we really haven't seen a strong correlation. look what happened, oil prices fell again after ukraine after a couple of months, and so i really would be looking out on that supplied mismatch coming into '24 and '25 if you're investing here. >> it's interesting that you like discretionary, over the last week discretionary is the

worst, of all of the major sectors, and there's a lot of discussion now as to whether the consumer's tapped out, but you can't have the consumer tap out, if you think we are base case soft landing. >> wage inflation is outpacing headline inflation, so wage inflation around 4.1, 4.2%, headline inflation at 3.7. the consumer seems to be in solid footing. now, obviously household savings rate is the lowest level we've seen in some time. the consumer is still spending and being resilient. that can play to both sides. we still see that being more positive for the soft landing. it does obviously put into play the idea we're stronger for longer, but we think that ultimately for one, because consumer discretionary hasn't fully rebounded, it's a good opportunity to lean in right now. >> we'll leave it there for now. a

a.j.oden thank you very much. do you think interest rates have now peaked? head to @cnbc closing bell to vote. in the meantime check on top stocks to watch as we head into the close. for that we bring back kristina partsinevelos. >> let's start with fmc corporation. it's hitting its lowest level since 2017 after lowering its third quarter and fiscal year guidance. this is an agricultural chemical giant. they say it has seen substantially lower sales volumes in latin america, and this is apparently due to destocking especially in brazil. okta is extending its recent declines as it reels from a cyberattack on its customer service system. the breach could cause near-term impacts. shares are off by 20% in a week and down over 7.5% right now. scott. >> a lot of stuff going on in tech today, chips and software. christina, thanks. we'll see you in just a bit. >> we're just getting started

here. we're following that late breaking story, intel is down near 3% thousand on a report nvidia is making a push into the pc chip market. it is big news. we'll hear next from little tony just after the break. and later top chip analyst stacy rasgon will give his first take on the news as well. we're live from the new york stock exchange. you're watching "closing bell" on cnbc. ♪ opportunity is using data to create

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running up and down that field looks tough. it's a pitch. get way more into what you're into when you stream on the xfinity 10g network. welcome back. nasdaq's higher today, investors prepare to kick off a major week of mega cap earnings. microsoft, palmettoalphabet, aml

up. it's good to see you. there's is a lot riding on this. that's probably the understatement of the year. are they going to deliver? that's what i want to know. >> we expect them to deliver. i think they're going to meet or beat. i would say, you know, a lot of this has likely already been priced in by investorinvestors. we've got two dynamics at play here, without question a big push on some of these stocks has been around the excitement. i don't want to use the word hype, but let's use the word excitement around ai as a new platform. but when we look at the actual numbers and we look at what i.t. managers are spending money on, they're actually still driven by, you know, cloud and cyber. i mean, that's really where a lot of this is heading. gart ner released a report that confirms that. i think gartner is expecting generative ai to really start to become a significant factor for revenues around 25. but that doesn't stop the excitement around ai from being

able to propel fees stocks. >> i think i heard you correctly just now and you said you think that the good news is priced in at this point because, look, the nasdaq's down over the last three months, right, since the report, since these last reports, about 7%, and a lot of these other stocks over the last three months. apple's down almost 10%, microsoft down 4, amazon's negative, nvidia is negative. we know about tesla, obviously in the wake of their own results, but what about where the state of tech is right now going into these numbers? >> yeah, i think the state of tech is actually in firm positioning. when i think about how investors' behavior typically flows, we look at tech stocks historically to really be focused more on those investors looking for growth. you know, but with the push, i would say both in the private and the public sector, use meta as one example in their drive towards efficiency. a lot of these tech companies

have been focused on profit profitability. so much so that i would say the tech investors today are joined by other investors that almost see big tech in particular. i would say the magnificent seven, almost as somewhat of a safe haven. and you know, i think when we look at the amount of the s&p, that the magnificent seven comprise in terms of market value, you know so goes tech, so goes the s&p, and we need to see these companies meet or beat their earnings, otherwise we could see an unfortunate situation, similar to what we saw with tesla, when those expectations were not quite met. >> who's going to knock it out of the park, and who would you be worried about out of these magnificent seven stocks, if anybody? >> yeah, look, i think without question, you know, there's still a lot of excitement around nvidia in particular, and we expect their revenues to grow significantly.

i think they're going to beat earnings. and then i would also look to meta. you know, meta has actually done a really good job in their push towards efficiency and navigating some of the headwinds that they've faced earlier on with some of the privacy changes on the iphone platform in particular. and then i would say, you know, steady eddie around, you know, what we should expect from microsoft and google. again, i go back to the fact that i.t. folks are still focused on cloud and cyber. that's going to be a contributing factor. i would take a little bit of a lens and look into apple based on some of the news that we've seen over the past couple of weeks. you know, there are some headwinds that apple faces in china. china now accounts for about 24% of iphone sales taking that throne away from the united states. which is now at 21%, and when we look at the amount of competition coming from those local manufacturers in china on android devices, you know, android has now kind of taken

that title away from iphone for the smartphones. couple that with the chinese government basically telling their folks you can't use the iphone. i think also just a little bit of a sluggish consumer demand in china as well, you know, which is broad-based but three impacting smartphone sales. that's where i might take a look. you know, we've seen the low end iphone 15 actually seeing discounts already. you know, 15, 16% on that low end mode emodel. i would look into the manufacturing supply chain issues, based on some tax issues and land use issues. >> that's the news that came out today that had this stock negative like the rest of the nasdaq, it's turned positive though. >> that's right, that's right. but you know, i think we should still take a look. we don't know how much that

will -- that lens that the chinese government is using to look into foxconn's activities. i don't know how much that's going to impact the supply chain for apple. apple's done a great job of diversifying their supply chain to reduce their dependence and reliance on those activities that happen in china, but nonetheless, you know, who knows. investors never want to see those types of pressures. >> lo, we'll talk to you soon. appreciate it very much. it's going to be an interesting week. >> thanks for having me. up next, pimco's play book erin erin browne is back, the key themes she is watching when we kick off 2024. also, stacy rasgon going to join us for more on this nvidia news that has that stop ck uand intel down: we're back right after this on "closing bell."

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welcome back. big market reversal for stocks today. nasdaq on pace to break a

four-day losing streak. the ten-year treasury yield lower after hitting 5% yet again. you can see, though, s&p is now negative 2. nasdaq still holding on. that's about half as strong as it's been. we'll have to track this right up in until the close. for mon how to position through the quarter and the end of the year, pimco's earn rin browne, welcome back. it's good to see you. >> nice to see you as well, scott. >> what do you make of this market action? i'll just ask you plain and simple. have yields peaked? >> so i think it's really hard to call the peak in yields. we still have massive treasury supply, which is coming. i think key date is going to be the next treasury funding on november 1st. but i think absent that with term premiums continue to rise, i think you can definitely say that the curve is likely to steepen from here, and it's very hard right now to call the peak in yields. >> are we on recession watch then, or how do you assess that? >> i do think that we're heading

to a much slower growth environment over the next year. whether or not we tip over into recession, you know,i think is really a hard call to make at this point, but i do expect that we're going to see grow slow below potential: we're going to have inflation gradually come down, and i think that the tails for the outcome are particularly wide right now, which does make uncertainty high and make it a really tough environment to be directionally long equities. you know, between now and year end, i think it's fine. you know, because of seasonal effects, because we sold off recently. i think it's fine to have a little bit of a long going into year end, but as we turn the page into next year, i think those interest rate sensitive sectors of the economy are going to be hit hard, and they've done pretty well year-to-date. so i think that's really the key area to watch. >> interesting, though, you do think that we could actually rally between now and the end of the year. i don't know, you know, the last handful of days as rates -- 5%

seem to be the line in the sand, you know, if you're going to continue to go above 5 %, it's like maybe that's going to upset plans that the bulls had for a late year run. >> so i think the market's largely been pricing in higher and higher yields, really for the bulk of 2023 and 2022, and that's why, you know, we've come off pretty significantly over the last three months and really in the third quarter with respect to equities. going into year end, we have an earnings season, which is set up optically to look pretty decent. we're going to get about a third of the s&p reporting this week, but i think you're going to have and hear pretty decent earnings coming off of what continues to be a pretty strong economic environment. so i think for that could set up pretty nicely for a year end rally, that said, i think what's going to be really key is how companies are indicating for the year ahead, and i think you could see a lot more ambiguity, a lot more uncertainty.

so, you know, while i expect that we'll see pretty decent earnings for the rest of this year, i think as we move into, you know, 2024, the earnings setup is going to be a lot more difficult. so i would say, you know, buy on a tactical basis but get ready to start to sell as we move into 2024 on what i think is going to be much tougher comps next year. >> you are -- i'm sorry to step on your toes there. you are a pm over there, a portfolio manager. what's your biggest position right now? >> right now our biggest position is in duration. i mean, we think that duration right now, not too dissimilar from the comments that were made, you know, overnight but some of the tweets we've heard from some hedge fund managers, we think duration is pretty attractive at these levels, you know, particularly for medium to longer term investors. mortgages, agency mortgages just given the selloff are really cheap versus intrinsic values. we also think that that looks attractive.

in the equity space, we're long quality, long more defensive assets, in short some of the cyclicals, particularly consumer cyclicals like auto and homebuilders against it. >> mortgage rate's 8%. i don't think -- you don't have to be a rocket scientist to think that the -- you know, the housing market could be in a little bit of a tough go if the mortgage rates remain elevated, right? >> i think that's exactly right, but you know, look at the home building index, it's up 18% year-to-date. you look at the auto manufacturers here and in europe, they've done decently well despite what's been a really challenging environment, and so what we've seen is a lot of backlog been worked off, and that's bolstered these sectors. i think as we move into an environment where the consumer is going to be increasingly constrained to put on any type of leverage given interest rates, i don't see how those sectors of the economy are going to stand up. >> yeah, erin, good to see you again. we'll talk to you soon. erin browne, pimco joining us here on "closing bell."

shares of intel taking a hit on news that nvidia is making a big push into the pc chip space. top chip analyst stacy rasgon joins us next with how he thinks this cld iact oumpthe sector. amd's on the move, so is arm, we'll discuss it next. this is a special alert. israel is under attack and israel's enemies seek our destruction. the people of israel need immediate help. rockets have us squarely in the crosshairs. our people are targets in their own homes. many have lost everything and fear for their lives. the international fellowship of christians and jews has launched an urgent response to rescue those affected by this violent attack. our teams are on the ground across israel delivering lifesaving aid.

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intel's sinking. the market's voting. are we getting it right? >> look, so, there are already players that are going to be doing on base ps, qualcomm are introducing arm-based pc chips into next year. and of course you have apple. i think that's the impetus for all of this. apple has moved into their own arm based architecture. it's increased since they've delivered their -- these own self-designed chips. i think there's a desire for to see if this architecture can roll out more broadly. this is not new, by the way. microsoft has had windows running on arm for a decade probably, since 2012, i think. they used to call windows rt, we used to call it wart. the very first microsoft surface tablet had an nvidia processor back in the early 2010s.

so this has been tried for a while. it's never really caught up to this point. apple is proof you can develop now today compelling platforms on arm, and i think there is a design on microsoft's part to see if they can stretch that farther. i'm not necessarily surprised to see other vendors besides squal c qualcomm into this mix. i don't know that microsoft was going to get qualcomm exclusivity ever. if they can grow an arm-based ecosystem, there's no way this this is positive for intel. best case it doesn't take off is and it's neutral. for any of these other guys, whether it's qualcomm or nvidia, it will be incremental to anything they're doing right now. yeah, it's positive for them, sure. >> what about amd, why is amd down on this announcement if they're going to make chips with arms technology as well? >> yeah, well, they also make chips with x 86. if there's a shift in architectures and they're making

arm-based chips they can benefit from that. to start to take share from x 86, they make that stuff too, so it's not as incremental. intel as well, there's nothing necessarily stopping intel from making an arm chip if they decided except themselves, right? if they decided that was the right thing to do. intel is also trying to build a foundry business. in theory there would be nothing stopping them from fabbing or manufacturing those chips whether for themselves or other folks. maybe there's other opportunities across the chain to monetize this, but clearly it's a better option for you if you're not cannibalizing anything you're already doing. if it's something that's wholly new, that's going to be better. >> we're also not talking about, you know, years and years and years off, like we have been for the most part talking about nvidia, in some respects for ai. here what i read is they it would actually start -- nvidia and amd could start selling pc chips as soon as 2025. should that surprise us?

>> no, i don't think so. qualcomm was absolutely going to start selling chips in 2024, indicat next year. for qualcomm we've been looking at more as an option value. when qualcomm had an analyst day a couple of years ago, they gave some targets for these things, they didn't put any of this in those targets they talked about as an option. my view for qualcomm if arm-based windows pc become a thing, they're in a good spot to benefit from that, including there are others that could benefit from that as well as armed-based windows pcs do become a thing. in 2025, that seems like a reasonable time period. >> we'll leave it there. i appreciate you coming on with us. i really wanted to hear from you on this, i know our viewers did too. stacy rasgon joining us on "closing bell." last chance to weigh in on our question of the day, do you think interest rates have now peaked? you can head to @cnbc closing

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the results of our question of the day, we asked do you think interest rates have now peaked? the majority of you said no. 52.5% to 47.5. thanks for voting. up next, casinos popping in today's session. we'll tell you what's behind that sector's moves higher. u wn te st aheadheweak yoinside the market zone.

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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 now in the "closing bell" market zone, cnbc's senior markets commentator mike santoli here to break down the crucial moments. pippa stevens on the latest and contessa brewer. mike, i begin with you. interesting session to say the least. what do you got? >> ended up with a don't just do something sit there type of market. there's a lot coming at us in the way of earnings, some of the gdp and inflation numbers, none

out of it today and no fed speak. i think it was about the inner market technicals, nice move down in treasury yields, a ten-year from over 5 down to, you know, 43. it only gets you back to where you were six days ago. i think that's why you haven't had this bigger kind of relaxation effect in the markets. banks couldn't even hold a weak bounce. there's a lot of things it tells you. we're still under some pressure, you're still kind of in a little bit of a slippery spot right here. >> any bit of relief, though, on the treasury front is going to be welcomed at least somewhat. you need a lot of other things to get follow-through on. >> takes the pressure off, you know, a big mover down starts with a 17 basis point move down. i do think it's contingent. if we need a real kind of desperate washout type move to set up that relief rally, maybe haven't gotten it yet. could be closer than we were back in september. >> pippa stevens to you, anything you can do i can do better. i don't know, maybe that's what c

chevron is thinking about exxon. >> another mega merger hoochlt and so chevron's bet here really seems to be the guyana assets that has given that there was some speculation that chevron didn't have the most attractive long-term asset growth portfolio. and it's a key resource here. it is the prize in their portfolio and across the industry, guyana is seen as a key area of non-opec oil production growth. but wall street maybe not loving this deal all that much. the deal is not going to be accretive to cash flow until 2025, emphasizing the long-term benefits at perhaps the expense of the short-term. there's been so much consolidation in the space, and now that the two largest players are seemingly off the table, is this all that we're going to hear for m&a in the energy sector or is this just the beginning. >> which pippa stevens. who's next, and you know,

regulatory issues are either of the deals that pippa was just telling us about, going to get through the regulatory door. >> from real big picture perspective it seems like, the two biggest u.s. majors making relatively sizable deals would probably invite some scrutiny. maybe the administration would want to find rationale to block them. is a commodity business literally. it is not like there's consumer pricing power. their very small percentage of overall production, you know, no matter how much they buy. i just wonder how much of a fight it will be. i think it's interesting from a corporate strategy point of view, though, the idea of kind of trying to buy your growth as opposed to invest yourself. the other -- it looks a little bit reactive on chevron's part. not to really step around that because -- >> which is why we asked the next obvious question. >> they were talking before hand. they talked to a lot of people, and taking at no premium, what does it mean for the exploration production companies still on the board if hess got no premium off their last trade. >> joe terranova was like, okay,

does conocophillips go out and do something? keep your eyes on the space. mgm leading the s&p 500 today. contessa brewer following these moves. >> a price target of $111 on win trading higher than $90. they say opportunities abound in las vegas. there's a rebound in macao, a new project in the middle east, all of that hsbc is largely ignored and under priced by the market. mgm shares up about the same fueled by optimism over some of those same factors, plus, of course, mgm has investment in the digital world and acquisitions internationally price target from hsbc $49, where you can see it sits at a little more than 36 bucks now. las vegas sands got a boost for some of those same reasons. macao just on fire, draft kings and pen shares popped today as

well. look at draft kings up like 5% on the day, sports betting handle grew 32% over last year, new jersey, scott, had a 50% spike in september over last year and it was of course the longest established state for legalized sports betting outside of nevada. when they can make a 50% pop in handle, you know something's going on in the sports world. >> thank you. contessa brewer with the two-minute warning. there's the sound effect, which means i go back to mike santoli. the real fun begins tomorrow, the megacaps that we've been waiting for, that's when the parade begins. >> you have decent pullbacks in most of them, although meta and alphabet not far from their eyes. those are the two that have i think the most confidence in the fundamental stories, communication services the upside leader today. none of that is a surprise. >> those are the only two up over a three-month period. alphabet's up 15%, and meta's up 7. >> yes, and so you know, maybe the bar is higher there.

you got 10% pullback, amazon also has had a little bit of a retrenchment. so in theory the bar has come down a little bit. the market in general has been scoffing at even pretty good earnings so far. on the other hand, it's been mo more or less the preliminaries. the banks very wounded. >> then you're tesla, you got punished. >> tesla, you know, obviously that's a one-off story as is netflix, but no, there's a lot of back and forth to it. it's not as if we had an embrace of the idea that we had, you know, companies beating by 500 basis points on average versus the estimates. that's not the way the market has traded. it's been weighed down by every other consumer we've been talking about for weeks. >> good stuff. i will see you tomorrow. dow's down near 200. i want to show you some pictures too. it's a special day up in midtown at the nasdaq. the "closing bell" up there. members of the cnbc tech

executive council along side our events team, that is honor of the fifth annual tech summit. what an interesting session, bell's ringing. we're ready. i'll see you tomorrow, send it to ot with morgan and jon. we were up, we were down, stocks finishing the day mixed after the ten-year treasury yield hit a fresh 16-year high, and then retreated dramatically today. that's the score card on wall street, but the action's just getting started. welcome to "closing bell" overtime, i'm morgan brennan with jon fortt. >> the streak is broken for mondays for the s&p at least. city equity strategist scott chronert is sounding the recession alarm and says it might not necessarily be a bad thing for stocks. an