he's having smaller birds this year, but that helps because he's paying so much for labor, and there is still a bit of handling -- won't get into specifics at the end -- it's nicer to have lighter birds that you're moving along. >> bless their gobbling little hearts jane wells, you too. thanks for watching. >> just ruined my appetite "closing bell" starts right now. i'm scott wapner from post 9 at the new york stock exchange stocks are on the run, the rally extended after another read on inflation comes in better than expected coming up momentarimomentarily, ask the wharton school's jeremy siegel how long this can last. in the meantime, your scorecard with 60 minutes to go, mostly a positive day for the majors it had felt like we were taking a breather, but wouldn't you know it, we begin the final

stretch, got a lit of bit of a pickup, following the best day in months for your money yields back up today, might be putting a little bit of a lid on stocks at the moment there is the 10-year note yield, 4.53 nvidia, ten straight days coming into today microsoft making a big announcement about a new chip today. disney, a new activist investor there, the stock up nicely target beating on earnings and surging as a result. it is the best name out of the s&p today. it takes us to "the talk of the tape," as the market bets the fed's next action is a cut in interest rates, no more hikes. professor jeremy siegle joins up i guess you have reason to be smiling. what do you make of the move, and where can we go from here? >> i like it november is one to have best months of the year it's proving to be, great news on inflation what i would say is that, you

know, jay powell has to be on the lookout. we are slowing i'm not saying we're going into ooh recession at all, but he has to be as sensitive to the real data going down, you know, as he claims he's so hypersensitive to that inflation data. i really think the next move is going to be a cut. even if there isn't a recession, just because of the slowdown, it could come as early actually as march of next year i wanted him to uninvert this curve. as we've been saying for months, it's never been a good sign through history. we want to get that short rate below the long rate, and powell can do that. >> are you saying it's all clear on the inflation front that the bear case is, in fact, now dead? >> i would say it's all -- i would say it's all clear on the inflation front. by the way, my biggest worry is powell is going to bring up that

argument about the 1970s again, old stop-go policy, where burns lowered the rate and all of a sudden inflation zoomed up again. we are in a totally different situation now. back in the 1970s, we were just pumping money in every single month out of the year. we have had no money growth, scott, for two years we've had no deposit growth. and this is as long as we've kept records on commercial b banks, for three years liquidity is being squeezed. we will not have any more information. core raftd rates will go down s, but that's not the battle he has to worry about in the future >> others say that's not so true and not so fast, right jamie dimon, professor, says, quote, people are overreacting to these short-term numbers, and they should stop doing that, the

fed is right to pause. he's not so convinced inflation will go away as quickly as you believe. >> as i said, there will still be elements of core inflation, but if he waits to those elements of core inflation go to 2%, i think we could have a recession. i'd rather take the percent here a little slower and keep the economy out of a recession i think that's what the american public would like to do. as we've talked about, we are in an election year, like, you know, the worst thing that can happen is unemployment suddenly comes up to 4.5%, 5%, and buys us maybe six months earlier, we'll get to 2.5% inflation. that's not the tradeoff the american public wants, not what the administration wants

my feeling is move easier on that, and he has to be really sensitive to any real slowdown that could still plummet into a recession. i'm not saying that, but i would say there's more risk on the downside now than on the upside. >> yeah. what about the lag effects it's the obvious follow-up to what you just said we really have no way of knowing what, you know, the fed's already done and the impact it still might have we already know the consumer is slowing, you know. >> yeah. >> because of the back-breaking price increases that they've seen over the past year. can only deal with that for so long, right? >> absolutely. look, the mortgage rate went to 8% in the last month, i hear from home builders, wow, that really slowed things down. unfortunately, our housing price statistics are two months old, so, you know, they're not yet

slow -- slowing that slowdown. we see it in rents we have up-to-date rent indexes going down remember, shelter is the biggest component of the cpi, it's over 40% of the core cpi. so, you know, that does not seem to me to be in any inflationary mode at all. i think jamie dimon and others are worried about the deficit. that's a long-term concern but i don't see that as a concern over the next 6 to 12 months >> we're at 4,500 on the s&p, professor. given what you just said, what's a reasonable expectation you have for where stocks can go if we judge it by the price action on the s&p 500 >> well, we just take november and december and we don't see a big slowdown, we see a slowdown but nothing that looks like it's turning into a recession you know, we could do another

5%, 6%, 7%, maybe even 10% of course that's six weeks away, scott. it's how you predict what's going to happen six months in the stock market but, listen, even today with this rally, we're at 18 times next year level's earnings, and that's what with the magnificent seven. take them out, we're at 15 times earnings or lower. small stocks which rallied so wonderfully yesterday, even today, continuing the rally, 12 times earnings, 13 times earnings they're almost priced for a recession. so, anything that hints that, hey, maybe, we'll have a soft landing, think how far they could go up. >> would you advocate to, you know, buy those stocks, the s&p 493, the russell 2000, small caps which, you know, came alive in a big way yesterday, but have been, you know, sleeping forever it feels like?

would you advocate now putting fresh and new money into all of the other areas beyond big tech? >> yeah, i would i really would i'm not saying -- listen, the big seven aren't great and, you know, that they're due for a fall, but when your long-term investor valuation actually means more than just earnings growth, your short-term earnings growth, long-term you look at valuation. if you're structuring a longer-term portfolio, you're going to be rewarded with those down the road. if not, you know, this month, it will come and probably sooner rather than later. >> i wish i had people on my panel who wholeheartedly agreed with you, professor, but life isn't that simple as we know i'm going to bring in lauren goodwin of new york life investments and jordan jackson of jpmorgan asset management they've been more cautious than you. we'll find out if they still are. lauren, i think you might be >> i sure am

i want to acknowledge, i think this is it this is the fed relief rally we've been looking for all year, and the data we're seeing come in on the inflation and spending front is slowing i think the fed can stay on pause. but there's a couple "buts." first, the bar for cuts is really high. inflation is still high. the fed has to be very vigilant. that's the second one. price levels are high. i'm hearing from clients and financial professionals much more about how prices are 30% higher than they were prepandemic than about the 0.1 or 0.2 month on month we talk about here and that third "but" is that, because we are seeing the slowdown and because there still is pain to the kuomconsumer, ths relief rally is probably a step on the train on the way to recession. i think investors should be using it to make tactical gains and rebounds

>> the professor doesn't think we'll have a recession, but worst case, if we do and it starts to look like we might, the fed will come to the rescue immediately. do you not buy that? >> i don't buy that, as long as inflation is still in that higher than 2% core level where we still are our fed checklist has been super consistent all year. you need to see inflation expectations and core inflation in line, inflation expectations are, core inflation isn't, and you need to see wage growth and unemployment consistent with that price stability over the medium term. those things aren't intact either as long as that is the case, i don't think the fed can cut. >> jordan, i'll get to you in two seconds. professor, i want you to respond. >> first of all, i think lauren is right on one thing. i mean, if powell waits as long to fight inflation as he dioes slowdown that turns into a recession, that is not good. you said i said powell come to the rescue he absolutely should, and i'm

going to lend my voice to saying, hey, do it, but, listen, the way he fought inflation so late, that doesn't say that's a sure thing by any stretch of the imagination. but i do think that, you know, given that inflation has come down, that's why it's such good news he has much better cover than he did say a couple months ago. don't forget, still has a dual mandate, employment and inflation. not just inflation given a political year, you know, he bends towards the other, he'll say, hey, that part of what congress told me to do, you know, federal reserve act of 1913 my feeling is that will happen but i do agree that that -- if you ask me what is my biggest worry, is powell will delay as much on the downside as on the upside i'll do everything i can to convince him he should . >> keep grabbing that megaphone.

all right, jordan. maybe another 10% we can put on top of this rally already, says the professor. what do you say? >> i'd say over the next couple of weeks i'm a little bit more cautious i'm a little bit more concerned just about the fed going to have to reaffirm the h higher-for-longer mantra look, the markets are pricing in almost a full percentage point of rate cuts next year i think that's premature given what we're seeing with the data. we are seeing signs that the economy is slowing, and that's been highlighted here on this call but inflation is being sticky and stubborn financial conditions have loosened as of late, so i think they had talked about that financial conditions, the tightening that we saw, had done the heavy lifting from a rate height perspective a couple weeks ago, and now it's going the opposite way i'm firmly in a camp that the fed is probably finished here, but they're going to still have

that higher-for-longer mantra and push back on the aggressive rates into the market. that threatens valuations on the short term the broader market is roughly at average valuations when you strip out the top ten names sn. but those top ten names, valuation have to catch down to the rest of the market, not rest of the market catching up from valuation standpoint >> so now is the time to go to the other areas of the market that have been so-called left behind >> you have to be selective. the rest of the market is roughly flat on the year i think we go down a little bit. but looking at even tech, maybe it's not no longer a garp, it's tarp tech not got a reasonable price. that's where investors should be looking. i think there are pockets of opportunity in the broader market i'm not buying beta. i'm approaching high quality

companies that can deliver on earnings growth and a higher interest rate environment, companies that probably the are still expressing a bit of pricing power in a downward inflationary environment so, that's how i'm thinking tact market short term. >> i'm hearing from both our other guests it's kind of too soon to look at these other areas of the market until we get more signs of things being a little more clear. and right now, they're opaque enough that it's too much of a risk to do that. >> again, i can understand that. but in all my years on the market, and i'm sure they'll agree, when the coast looks clear, it's too late the market has seen it the market is not always right to be thur sure, but it senses something coming that movement yesterday was impressive i agree with jordan that powell and the fed have to talk tougher

than it is remember, september, a majority said we were going to raise by december now that's virtually off the table, and that's, you know, just going to be another six weeks away so they talk tougher, we'll see what happens once all the data comes in the end of this year and beginning of next year >> professor, that must be music so your ears that they are apparently data dependent, as they suggest they are. >> which they should be. >> maybe they learned their lessons from the mistakes at the beginning when they started too late and thought it was transitory, which it wasn't, unless you have a wider definition of transitory than most maybe they learned the lessons the hard way >> let's hope they learned the lessons. that's what i'm saying way too late going up. i don't want them to be too late going down and cause unnecessary

rece recession. >> lauren, what about other asset classes? when do we get people moving out of cash? if rates continue to go down, the pressure -- if rates continue to go down and the people have been sitting in cash continue to see the stock market go up, the internal pressure is going to start getting a little heavy. what has to happen for that to happen >> the best time to move out of cash is about two months before the fed pauses so, we might already be a little late on that front so, we are seeing movement from both retail and institutional investors back into the market wholesale, equities and bonds. early days, but it's happening, and i think that's the right move the question, though, is if we're seeing a tactical upswing in risk asset, risk appetite, what does it look like for the next three, six months a lot of investors are working their way into the market slowly there i think we have to look at

quality from an earnings perspective. i like what jordan was saying on that front we also have to look at the structural themes that will sit tight for the next 6, 12, 24 months to make that rotation worthwhile in what i expect to be a more volatile environment ahead. >> jordan, what about you? on that same idea of, you know, other asset classes, which may still present great opportunity, you're playing, which some obviously are, for a rally in bonds at the short end >> i truly believe investors need to have a two-year outlook on rates, not a one-year outlook. it is very uncertain how the economy will play out here where interest rates will be over the short erp term it's fair to say over the next 24 months, you could argue interest rates will be lower, the fed will cut rates to some degree we don't know when or how aggressive, but they'll start to

cult inflation will have come back down, growth will have come back down, and you can paint that narrative pretty succinctly over the next 24 months over the tactical horizon, though, i think the sweet spot is the one- to three-year part of the curve the reality is the fed is professing higher for longer, so lock in those juicy rates at the front of the curve, north of 5%, maybe layer on short credit, a spread at the front end, one- to three-year paper, juice that yield up to about 6%, and lock that in for the next 12 to 24 months that looks attractive. i'm still worried about the technicals in terms of increased duration supply hitting the market at a time where demand for treasury debt is moving from price insensitive buyers to price sensitive ones i wouldn't rule out another potential leg higher in the back end of the curve that's why i think one or three years is the sweet spot.

once the fed says they're done, that's when i want to start to go back into intermediate and longer-duration fixed income >> for the record, lauren was shaking her head yes in agreement before we showed the boxes. professor, the last word leetch us with a thought as we have the dow up better than 200 points we'll make a little run here, it looks like, hitting the final stretch. >> yeah. i say very few excesses in the market it isn't like two years ago with the meme stock it isn't like the nfts or the craziness of the pandemic stocks you know, all that stuff i see very little. that's why i think that this is a very sound rally that has legs >> we will make that, in fact, the last word. professor, thank you so much everybody, have a good thanksgiving if i don't see you guys before. jordan and lauren, thanks for being with us again. we are watching disney shares

today, too, moving higher on reports of another activist investor in that name. julia boorstin has the details julia? disney shares gaining almost 3.5% on news that valancueact h taken a position they started up buying shares of disney in the summer key to their interest in disney is the thesis that the company's theme parks and consumer products businesses alone are worth low 80s in a share notably, valueact is reportedly friendly in contrast to the move this year with another move by peltz, now joined by marvell entertainment chairman ike pearl mutter in the works. looking back at the 12 months, shares are up about 3% we're pretty much flat before today's news

worth noting is valueact is currently an active investor in "the new york times" ko, spotify, as well as fox. >> good to know. julia boorstin that brings us to our "question of the day." does another activist in disney make you more optimistic about the stock now? we'll share the results later on in the hour. we're just getting started up next, microsoft is getting into the ai hardware arena after announcing two new ai chips. we have a shareholder standing by with his first reaction and his top tech plays with that sector record highs.

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great! solid! -greek salad? exactly! don't delay the game with verizon or t-mobile 5g home internet. catch it on the xfinity 10g network. it's good to see you welcome back the dell is bullish, obviously, on their chip they announced today. he thinks they've got the right stuff, that they don't have to be solely reliant on invade ya anymore. what do you make of that >> hi, scott i think the ignite conference solidified a couple things one is the company's fully committed to the ai -- to ai for the enterprise i think the announcement of the ai chip, that was rumored, and they officially announced it today. i think it's a good move for the

company, to be frank i think a lot of people started to think back during the pc arms race, where intel was the only chip in town pretty much all companies had to subscribe to what sbrel was commanding i think having alternatives like microsoft's chip to potentially be a competition against invade ya makes a lot of sense. now, would it be formidable competition against invade ya? only time would tell but certainly it makes sense from a competitive perspective >> it's not like invade ya shareholders are shaking in their collective boots today the stock was up ten days in a row, so you'll forgive it if it has a little bit of a down day, and "a little bit" is probably the most important thing because down 1%, okay, so you have a new chip we're still the leader and we have ear going to be >> that's right. the stock is down 1.5%, nothing

considering this is a pretty big announcement by microsoft. i think what the market may be suggesting is that nvidia is so far ahead of its competitors that any new competitors into the industry would probably be relatively smaller >> what about tech right here? had this incredible run. it's -- you know, it's bounced back from, you know, the sell-off that it had within the last couple two, three months. nvidia, since we're speaking of it, was down near 400, back near 500. apple was kind of written off for a moment saying the charts were terrible, stocks going back down lo and behold, they have earnings and it's back towards 190. what is your positioning for megacap? >> when we last charted, we were still optimistic on tech we did think there would be seasonal headwinds, which occurred but we thought the november time frame was going to be much more positive for the tech sector,

and that's what's happened we remain bullish for the tech sector for the remainder of this year, and even going into next year and the reason why is despite the sector selling at premium valuation, we think it's deserving. we're forecasting midteens to high teens earnings growth for the sector in q12024 we expect those big, large kaprielian meg tech names to be large contributors to earnings growth, nvidia, amazon, meta, google we think those will be the largest contributors to earnings growth in q1 >> what about other areas? beyond the megacaps, they suck all the oxygen out of the room but there are other areas to talk about, whether it's software or chips. on the note of the chips, these filings we're getting from some of the biggest investors around are revealing interesting positioning. scion with this, you know, play against the chip space right now. what do you make of that

>> there are other areas of interest certainly discussed earlier. i think small caps, to be honest, have been sort of the forgotten asset class this year. and we think that small-cap tech could find a place for investors going into 2024. the reason why we believe that is small-cap tech valuations are generally more reasonable than the large-cap tech we're seeing extreme wide spreads in terms of performance deviations that's not getting a lot of attention, but if interest rates have paused, and likely the fed cycle has stopped, we think that the small-cap asset class is going to see a lot of attention. >> i have a couple names on my list super micro smci and rambus. i can't remember the last time we talked about these names, not you and me, but collectively it's been everything megacap

>> that's exactly right. these are both companies that are small caps, but both companies very important part of the ai ecosystem they've done well. and we think they're going to get more investor attention once people look outside large-cap tech >> i appreciate it very much straight ahead, target surging after its big earnings beat is this a green light for more gains in the retail space overall? we'll ask hightower. in the u.s. we see millions of cyber threats each year. that rate is increasing as more and more businesses move to the cloud. - so, the question is... - cyber attack! as cyber criminals expand their toolkit, we must expand as well. we need to rethink... next level moments, need the next level network. [speaker continues in the background]

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stephanie, first and foremost, when you look up "relief rally" in the dictionary, it says "see target." that's what it appears to be today. obviously going through a tough stretch. i didn't talk to you about tjx hit that one first what do you make of that that's not acting like target. >> knopp it's the exact opposite, scott. target, such low expectations, a low bar to kind of jump over, tj a really high bar. it was up 15% into the print it trades at 24 times. out of all the off-pricer, it's the most expensive, and i think it should be because of the market share it has and is taking the quarter was just fine. it's a relative-to-expectations thing. a 6% comp versus 4.9, expected but in august, it was 3.4%

so they saw an acceleration. the same thing we saw with target on the margin side and the profitability side, gross margins were much better than expected, up 200 basis points for t.j. operating margins beat merchandise margins, lower freight costs, that will be a theme across the board we talked about that earlier today. they needed to crush the guide, and they didn't. they did raise it for fiscal 2024, but the fourth quarter is a little messy with expense timing i get why it's down. they're a wonderful company. it always trades crappy around the quarter. that's the time you want to buy pit. >> are you buying more >> i will. i'm going to let it settle for a couple days and get through earnings but i'll be buying more target at 13 times. >> you set me up iwalked right into it. cisco, you own that too.

>> yeah. i think the quarter is going to be in line i think expectations are fairly low. two things we're looking at, product orders, and that will be down 18% following down 14% last quarter. if it's anything worse, the stock -- investors won't like it, the stock will go down backlog drawdown, that's the second thing they drew down $3.7 billion last quarter, $2.7 billion this year. anything that deviates will affect the stock price at the end of the day, why i own it is because of splunk. i think that story the exciting as to the growth rate. it's accretive crynss their software in security revenue and recurring revenue. that's why i like cisco at 13 times. >> i thought you were going to say because of chock robinson, ceo. >> i do like chuck i'm looking forward to hearing him on jim's show. >> i was going to tease it

>> you don't have to we roll together >> you added to bank of america too. that's an interesting one given what's gone on in the market, and you know what, what hasn't gone on in the market. i'm referring to the fact the bank stocks haven't done much. >> i know. they haven't this thing is still down 10% it's been a laggard and has been because of interest rates and their bond book and the concerns there. i think if rates have peaked, which i think they have, the stock should set until it's not going to act as crazy as regional banks with leverage there, but i think it's cheap at nine times book value, doing a great job on cost cuts i like the diversified brand it's all about rates and evaluation >> is it time to get more heavy in these areas that's a natural segue for you in bank of america and other moves you've made. >> yeah. >> you haven't been afraid to approach the consumer with mcdonald's what about that question >> yeah, i think so, but i don't

think it's all or nothing, scott. as you know, i've been adding to some of the megacap techs because meta is still cheap and alphabet is cheap and they both have good earnings amazon isn't chep, but relative to their historical average, it is i think that there's way better value in industrial services parker-hannifin. i'm looking at some of the material names because i don't own any, but i'm looking at a freeport again it's up about 10% in the last couple days. i'll wait for that to settle there's a ton of cash on the sideline, and i think it goes into the market as a whole, not just one small group or sector >> you're that bullish >> yeah. yeah i am you know i i've been buying. i've been buying since middle of september when, you know, things were really getting hit. i think there's a year-end rally

to be had. seasonality is in our favor. a lot of negative sentiment. you know how i feel about inflation, making progress there. i feel good about the consumer it's not perfect, but i don't think the consumer is dying. i look at mcdonald's, starbucks, lu lu, american express. there are a lot of good numbers coming out, so i think you have to pick your spots and it's kind of a stock picker's environment. >> all right we'll leave it there i appreciate it very much. good to see you again. >> good to see you >> twice in one day. up next, we track the biggest movers heading into the close. kristina partsinevelos has that. >> the weight loss drug craze helping one medical device company.

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about 15 minutes from the closing bell let's get back to kristina >> catalent makes devices used for medicine delivery, including syringes used in popular weight-loss drugs. executives say their exposure

into that market is growing. shares are up 11 fers. jd.com is having its best day since march. the company cited its efforts to make prices even more competitive along the supply chain advantages, and that's helping the stock up 7.r5% >> appreciate it see you in just a minute in "the zone." last chance to weigh in on our "question of the day." does another activist in disney make you more optimistic about that stock no is winning. nearly two-thirds. the results after this break three more minutes to vote have you ever wondered what an icon,... ...a legend,... ...a legacy,... ...a pop star,... ...and a tight end all have in common?

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in the "closing bell market zone." there he is, bob pisani, here to break down the crucial moments of the trading day and we are watching two tech earnings in o.t. today pippa stevens on palo alto, kristina partsinevelos on cisco. bob, it's a pretty good follow-up to what you got yesterday. i don't think people thought we were just going to be off to the races again today. >> sideways most of the day. people say we're up six points on the s&p, not very exciting. but i think bulls should be excited. i see small caps again strong, midcaps strong, banks strong, transports these had terrible performances until recently i see tech lagging that's why the s&p isn't up so much meta, amazon, salesforce all down this is called rotation, and it's great for the markets russell 2000 up 6% this week when is the last time you saw that nasdaq up 2%, s&p up 3%. that's rotation.

i like what i see, and i know it's not exciting today as it was yesterday, but we're getting a broadening out of the rally. equal-weight sectors are up 3% to 5%. inflation is driving this whole story right now. it's hard to have higher interest rates in a declining inflation environment, and that's what we're seeing if the fed is done, we might have a soft landing. they could pull this thing off, which nobody ever believed could happen so this is going to have a positive effect on the consumer, on borrowing, on earnings in 2024 those numbers will start going up we have 2.40 right now >> if it happens >> what the market is telling you, the way it is rallying, the sectors most beaten up by higher trait are rallying the most.

the market believes a soft landing is not only possible, it's likely. >> it's hard to know i would say this at the end of the year, seasonality is in your favor can it last for the rest of the year certainly. let's see what happens in the new year, right? see how much it can really continue, if there is a belief the lag effects are not going to have some sort of, you know, negative impact more than they already have >> the missing element is the fomo investor out there. all those people -- $6 trillion in money market funds that are out there. i know a lot of them are savers in general, but will those people get back in or not? that's the real rotation to look out for, not the one from megacap to these other areas don't you think a lot of people are sticky at 5% they'll sit there? even if they have to roll it over at the next year at 4.8% or slightly lower, they'll say, hey, i don't care.

i just like the certainty of knowing i get a real yield and it's a real positive yield inflation adjustment >> they would if they believe you're only going to get a 5% gain in the s&p for next year, 6% with total return and the reinvestment of dividends and the like that will keep some people sitting in the 4% to 5% money market >> our friend at morgan stanley sunds u sounds kind of bullish >> how about jeremy siegle saying you could get 5%, 10% more out of this run before the end of the year? >> jeremy has been right jeremy's observations -- she had a huge influence on me 25 years ago when i became a stocks correspondent because his book looked at the history of this business he is a market historian >> you're also partial to philly

people >> he lives down the street from me he knows history better than all of us. when he speaks, i listen carefully. he won't go too far out past what he knows of history >> pippa stevens is watching palo alto networks not a double but not far away. >> a dig outperformer this year, but slightly lower ahead of earnings and wall street analysts are expecting q1 results to be at the midpoint of management guidance one key yaiarea is fire wall demand they're more insulated in that it's transitioned over recent quarters to a software and subscription model, roughly 30% of its product revenue is related to software according to bofa, which carries a higher growth rate. but analysts say its channel check showed signs of softness in europe and asia

last quarter, the company warned about increasingly challenging environments, so investors will also closely watch the company's guidance as you said, scott, with the stock up 83% this year, we could see some selling in the wake of this report. >> we'll see getting a little bit into the print, but who knows pippa, thank you so much kristina partsinevelos is back with us following cisco. >> the networking equipment maker is expected to post inline results for the first quarter. but getting through the backlog still remains an issue with the company indicates it would not reach normalized levels until halfway through fiscal 2024. that limits enterprise sales as customers work through inventory levels they won't buy new stuff when they have it companies are cutting back on i.t. spend or shifting it towards ai that's part of the reason analysts expect weaker q2 sales on the right-hand side of your screen ai momentum will be a theme, but

less of a tailwind for cisco since they make the silicone chips that go for large-language models and not training. lastly, they're close to closing its $28 billion acquisition of cybersecurity firm splunk. management is bullish it will land soon but it's still in the close. let's see if cisco can do it >> thank you, kristina partsinevelos. we just had the two-minute warning. bob, back to you it feels like the bulls are getting more bullish the bulls are looking for these underappreciated and underpamping areas of the market >> we need those bulls to come in because the short covering is kind of done

yesterday, cash and i had a discussion about this back and forth. he felt a large part of the rally yesterday was short covering that makes complete sense to me. once those people cover, we need other people coming in that's why i'm interested in in the fomo trade i think the retail investors will be sticky i think it take a big move higher in the s&p 500 for them to move in the institutional people had to be forced in they can't sit on the sidelines with 40% cash. they can't do that with the market up nearly 20% we're up almost 20% in the s&p 500 this year. those institutional people got largely forced in yesterday, so we need the jims of the world to come in and start saying here's why we like it we know about the seasonals now. i think the next leg up will come when the earnings numbers start moving up in the first and second quarter >> trying to get some round numbers on the close dow looking to close 35,000 today.

and the s&p sitting a couple points above 4,500 key level to watch, as well. the bell will start ringing any second [ bell ] there you go bob pisani, thank you, as always that does it for us. key earnings to look forward to. in "o.t." with morgan and john stocks finishing in the green but off session highs, the s&p at 4,502 the action is just getting started. welcome to "closing bell overtime." i'm morgan brennan >> i'm jon fortt joining you from seattle, where microsoft is holding its ignite conference, announce two in-house chips. we'll bring you the highlights from my exclusive conversation with microsoft ceo satya nadella. and a deep fivon