>> transports. >> transport. it's been a underperformers today with a lot of other companies moving lower at this hour. we will keep an eye on it for you. could've been 10 in a row. you never know. that last hour is a busy one. thank you for watching "power lunch" . "closing bell" starts right now. thank you and welcome to "closing bell". i'm scott wapner from the new york stock exchange. we begin with the biggest bull on wall street. tom lee is here to make his case and why stocks can keep climbing even after this record-setting run. in the meantime look at your scorecard with 60 minutes to go in regulation because it's a changing scorecard. a sudden selloff in the market looks like the dow nine-day win streak in jeopardy as we begin

the final stretch . look at the three major averages. the dow is down by about 250 points . the s&p down by nearly 1%, as is the nasdaq a lot of these mega cap tech tocks which were green have since rolled. alphabet holding onto positive territory via caterpillar and home depot among the better performers today. apple was clawing its way back toward $200 a share. it's turned negative by about a dollar. one half of 1%. yields too are lower. that has the russell extending it's amazing gains. still holding onto positive territory today. not that strong though. fix picking up a little bit near 2% as we speak. takes us to our talk of the tape. the continued bull case . tomley is with us. welcome back . >> thank you. >> we just got ahead of ourselves? i don't know. maybe we need a breather

because it's been remarkable. >> i would not be surprised at this profit-taking today. i don't think it changes the case that stocks will do well between today and the end of the year. we have an important report on friday which is the pc deflator. >> are you surprised this deflator -- this market has continued to ramp higher? almost unabated >> i think there was a sequence of events that justified the move. last week we got a fed that made a dovish move ending the inflation or or shifting it toward managing the business cycle. we know that 65% of fund managers underperforming their benchmark and we know 240 billion was pulled out of equity. between now in gear and, you do have fund managers trying to catch up and a lot of investors are reorienting their portfolio toward a nicer fed. a less hawkish fed. i think stocks are up. investigators need to allocate stocks.

>> and last investors need to take a breather themselves. i had a conversation with eric johnston with candor who has been as bearish as you been bullish and he said he can't show up now and all the sudden change. here's why. >> i would not be able to come here and say hi commission bullish based on the current multiples where we are in the cycle, where earnings are, where positioning our. it's not even close. what i would need is to see either a recession or close to a recession where people think it's coming we get a big growth scare and the unemployment rate starts to go above 4%. a little bit of a cleansing here and lower prices. >> in other words you will get all bold up even more so now were multiple explaining to where they have? >> as you know evaluation is and why anyone should sell stock know why they should buy stock. it really should be whether

earnings momentum is accelerating and next year looks like capital spending will pick up. there's a lot of survey showing this and a gap between the hard and soft data. there is a capex cycle. we know mortgage rates could drop to something like 4.75 or 5.2. >> that's a little ahead of ourselves? >> that would take a normal spread to the current 10 year period and that 200 basis point drop in mortgage rates would stimulate the consumer. balance sheets, which is an earnings story. i would say earnings momentum picks up next year. we have a fed is trying to maintain the business cycle. and investors are bearish. there's a lot of anchored views . we heard one clearly articulate they will only turn bullish if there's a recession. >> i feel like the bears are dropping like flies. but maybe not that many. i've seen some strategists who were bearish over the course of the last year suggest stocks can continue to go up this fed pivot. it's that powerful. the other side of that is what

eric johnston and others would suggest. it's too early to think earnings will live up to all of this hype. a lot of hype that you have. your earnings number last time you came here, the best case, amazing case, unbelievably incredible case was $280. do i remember that correctly? >> you are but that's not a prodigious feed. it's about a 10% cagr . it's like saying 5% from buybacks, nominal gdp and weaker dollar get you there. i don't think it's a lot to ask to get to 280 and earnings. but i think most importantly the market internals do not speak to what happens at the top. this is really early cycle behavior. a huge expansion of market brett . stocks really peak when you get good news and they go down. we haven't had good news. today selloff is not off great headlines. it's just a real and

-- year end rally. >> do think the markets ahead of itself and the idea that will be as many cuts as one woullike to think based on what happened at the fed meing? >> i think the fed is trying to figureut how to communicate future cuts. and the market will get anxious about it in the first half of next year. that makes a lot of sense to me becauswere going from a data dependent, fighting inflation to under what conditions does real rate get defined and when shoulde titrate that and cut rates? i think that's a debate in the first half. that's what our 2024 of you is. most of the gains happened in thsecond half. >> do you think we a pulling forward gains at this point? >> yea i think december will end up very strong. the st time i was here i thought it could be parabolic, which it does seem like it's going parabolic. but a move like that isn't consolidated sideways, right? maybe there will be some payback in march or april. >> folger thought for a moment i want to bring in the miller family office who is a portfolio

manager. what do you make what's happened in the last 30 minutes or so of what you think is a culprit of this sudden selloff, if there is one, anything more than just saying, we've reached some lofty levels. let's take chips off the table for a moment and catch our breath >> how you doing. hope all is well. this seems like there was some big prints in the zero data option. there's about a half 1 million, almost 1 million fall pushed a little while ago just for the selloff. that was also the level, the weighted average price that guys are pegging for some orders . once we pick up 475, it seems like elling knocked it down 50 handles.

you know, we had a stairstep rally with nothing really hitting all the way from probably the fifth or sixth of december. once we had the >> maybe an air pocket for a moment? >> it seems so. volume, obviously, is lighter as we get to christmas. people taking off. it was definitely an air pocket. it was handled pretty easy from 475 to 469. some people said there were a couple stories out there that may have done it. a couple of tweaks that may have been put out there. i think it was more the technicals. in the zero day options where you have huge

gavel levels. imagine what 1 million options expiring today, how much of the hedge is if you got that trade wrong. >> that's like the latest and greatest trend. more and more every day and options trading whether it's from the most experienced people who are out there to mark novice investors who are trying their hand at options trading. i'm going to let your run. i think you are with m tomorrow so we will catch up about the reality and where we think '24 will go. thank you for calling in. just wanted to get some insight on this tick by tick as we had over the final stretch. at this point the maet has come so far so fast. the bar is high. there's a lot to live up to pick you've got to have the cuts when we thinke have the cuts pick you got to have earnings live to what now expectations will rise to pick you've got to have the economy

hang in there to justify the multiple. you've got to have rates come down to help justify the multiple. is it too much at some point? >> youre describing my great wall of worry and the market is it great climb of a wall of worry. >> may be reality too. >> at the start of this year a lot of the bare arguments you played from me earlier were exactly what people said on january 2023. we will have a hard laing. you can't buy stocks until an earnings will be disappointing and the are played our earnings were good and we did not have a hard landing look at labor suly. it's growing now so i don't know if unemployment has to go up inflationary pressures are deflating. the back to october 2020 levels. inflation is disappearing from consumer expectations. the thing that the beamake it wrong as multiples will do more increasing than people expect. >> let's bring in christina

hooper. this sudden move aside, what is your view as we raced toward the end of the year with these extraordinary gains since the member started? >> i think the key is that monetary policy really since the great recession has had an outsized impact on markets. it's really been such a critical driver markets and a perfect example of this is what we've seen this year. and especially what the fed has communicated. if we look at the september pot that implied a 50 basis cutpoint after a 100 basis point cut in june and was the start of a big rise in yields. now we are getting the fed communicating finally that we have actually seen the end of the tightening cycle in july. and that has had an outsized impact on markets, as it should, because monetary policy has been so important. >> so it's justified. to your point, we have as an investor class become conditioned to the don't fight

the fed because we have learned how powerful it can be after '08. any time there was a crisis of magnitude, the feds had our back. and the time they did we had a terrible year last year because they were raising rates rather than cutting them. now the paradigm has once again change in our favor. that's the argument you're making so this is all justify the way the market is reacting pick >> absolutely. and the economy is cooperating. we have an economy that has been quite resilient and we also have disinflation very much underway. people were very skeptical early this year and i think finally in the last few months there is a realization that the disinflation every process is happening. it's very significant, and we will ultimately get close to that 2% inflation target within a reasonable period of time. >> what about the broader and? the russell, i said was hanging to positive and is now rolled over with everything

else and down one half of 1% but it's been a remarkable run. even with today's pullback the russell up more than 11% over one month period of time? >> absolutely and i anticipate a continued broadening of the market. and i think small caps will plaa critical role as our cyclicals. what they are doing anwhat the market typically does is it's discounting and economic acceleraon in the back half of '2 so it makes sense that the more cyclically sensed the parts of the market are performing better. >> this is your playbook. >> that's right. and when it comes to evaluations, the s&p 600 is 11 times next year's earnings. you could see a lot of multiple expansion there. that's what i think small caps can rally 50% next year. >> you continue to make that case. at the expense of what? >> well, -- >> some people would say by the expense of mega cap. >> i think that's probably correct. someone pointed out and i

checked it was correct, fang is cheaper than at the end of 2021 because earnings went up 20% in the price level is only up 22. next are the multiple can be harder to expand so with more eps growth, whereas things like financials and small caps can see 50% increase in multiples plus earnings growth. i think if you're talking about pe expansion, it's more of the small-cap names. >> i think it's at the expense of cash and at the expense of a lot of different asset classes. but where tom and i differ is that i don't know what is going to happen in the back half of this year. i suspect that we will likely see is a leadership shift and more of a focus on defensive end quality because markets will be discounting 25. >> at the mention of presidential election where, who knows what's going to

happen, how messy a bike it? you just don't know. >> and let's not forget they long and variable lack of monetary policy. if we use that will of thumb that it's 12 to 18 months between monastery policy implementation and went we see it show up in the economy, that could mean that it really hits in '24and we don't feel the cumulative effects until the end of '24. could we see that recession and '25, which markets could potentially discount in the middle of '24? i don't know yet. we don't have enough visibility. >> sl a headline for the fed saying the economy is slowing faster than the data is suggesting. what if that is the case? >> i think that sets up for a growth care -- growth scaring the first half and sits up in the market to be debating with the fed about what they should be doing. i would say that

makes sense. that's what i think the first half is not where you make your money next year. but does the fed of the tools in place? fed funds at 5.5%. they could do a lot of cutting and they have a lot of tools to stave this off. >> i would like to believe that part of the bull case is yes the fed will cut. it's going to cut because it can. it's not going to cut because it has to you are painting a scenario, which it doesn't matter -- they have the tools and of the economy slows worse than it looks like we may push a recession they will cuts with positive anyway. is it really at they cut for that reason? >> it is. it's one thing to be slowing at the consumer and corporate's are over levered. are not over levered today but paying a lot of money to borrow money? so it's a cost of money issue slowing the economy. if the fed cuts rates me actually alleviating the biggest pressure valve on growth. >> but how do we justify multiples if the fed cuts rates

because the economy has gotten that bad? >> that's one perspective but the reality is they are cutting rates because real rates are too high. that's really -- is not appropriate to be at 5.9% of the inflation is running at 2% because you're running a scheme that causes a recession. if we are slowing, it's proof the real rates are too high right now relative to inflation. inflation is tracking a 2%. i think there will be a bear argument but to me it's actually perfectly analyze the idea that inflation is falling in real rates are too high and the fed has to make cuts but that's a debate in the first half. >> the idea that there is no way this market is pricing in a recession. no way. we've ready placed our chips in the middle of the table that we wl have soft landing we are placing our bets the f will cut because they cannot beuse they have to. if they have to, does that change the paradigm out the

market? >> i think the question is moot becausthey don't have to this year >> and '24, you mean? >> exactly. they start to cut in the second quarter because they should because they admit they are in restrictive, very restrictive territory right now. and so the reason for cuttg is the right reason. again, i think what is undecided at this point, undetermined at this point is what happens in 2025 but anticipate somethi of the bumpy, brief landing in '24. the midcycle re-exfoliation, and then we could see more problems in '25. but it remains to be seen. >> what about fixed income? where are people supposed to be right now? >> if you anticipate a bumpy landing, as i do, i thin investment-grade credit looks really attractive. also, emerging market debt. it's a supportive environment in emerging markets. we see dollar that's weakening and i think that will

continue. those are two areas that are tracked pick in terms of duration? long. >> you hava view of that real quick? >> i think that makes sense. bonds will do well but bonds do well npe goes up. >> that's what you have a big smile on your face as u finish that statement thank you, guys. happy holidays to other side. see you on the christina and tom. let's send it to another christina for a look at the biggest names moving in the market right now. probablyore now than before just given the makeup of this selloff we find ourselves in. >> it s shocking when i was at my desk and sing the switch. the stocks i'm going to talk about don't pertain necessarily but let'talk about christie therapeutics because the chief is stepping down at the company received approval for its gene editing therapy for the disease but the regulatory filing assured investorshere was no disagreement with the company. p security said crispr has

efficient managent. you can see shares are down 7% . let's talk about shares of alumina. lowoodlightly pick they were higher. the company said on monday it would sell its cancer screeng company because of antitrust issues. an activist investor was not happy about the purchase and he said he now plans to oust the board of directors because of the deal specifically. you can see it's fairly negative at the moment. we will be back in a moment. we are just getting started here and all over the market as it shifts toward the downside. the dow heading for its first decline in 10 days. that's the market we have been in . warren pies joins us with his take life in the new york stock exchange. you are watching "closing bell" on cnbc.

trading at schwab is now powered by ameritrade, unlocking the power of thinkorswim, the award-winning trading platforms. bring your trades into focus on thinkorswim desktop with robust charting and analysis tools, including over 400 technical studies. tailor the platforms to your unique needs with nearly endless customization. and track market trends with up-to-the-minute news and insights. trade brilliantly with schwab. i think i'm ready for this. heck ya! with e*trade you're ready for anything. marriage. kids. college. kids moving back in after college. ♪ finally we can eat. ♪ you know you make me wanna...♪ and then we looked around and said, wait a minute, this isn't even our stroller! (laughing) you live with your parents, but you own a house in the metaverse? mhm. cool...i don't get it. here's to getting financially ready for anything! and here's to being single and ready to mingle. who's ready to cha-cha?!

♪ yeah, yeah ♪ (vo) while you may not be running an architectural firm, tending hives of honeybees, and mentoring a teenager — your life is just as unique. your raymond james financial advisor gets to know you, your passions, and the way you help others. so you can live your life. that's life well planned. all right, tandy, what's it gonna be, the drink made from whatever was laying around, or the one made with your drizzly haul? drizly! stock up today, sip well, tomorrow. drizly. you know what's interesting these days? bitcoin. look for bitwise, my friends.

welcome back. want to keep you up to date where things stand. that's not h it looked an hour ago. the dow is down 275 in counseling . negative across- the-board pick things that were up nicely earlier like the russell have rolled over. russell down by more than 1% and many mega caps in the red. let's bring in warren pies, the cofounder of 314 rearch. welcome to our program. >> thank you for having me? >> judging from your notes, you must be pretty bullish. >> at the moment, yes. i think

there's been an important change in the market. i don't believe everyone has fully appreciated going back to the late last month. that was when the soft landing went from being, i'd say, less base case but the reason for that and a review is need to have a resilient economy, rapid disinflation, and a hyperreactive fed to pull off the soft landing. we do not think that that would be hyperreactive but there were some important changes that took place starting with the christopher waller speech last month. the signals are ready to cut rates so my theme for next year is yesterday's tightening becomes tomorrow's stimulus. i do not think this is the consensus yet. there are a lot of people to get on the bandwagon still. >> it feels like it's the consensus, doesn't it? we have priced in all these cuts . we are all giddy about the prospects the fed has made the

great pivot of 2023 and that will save the date for '24 and beyond. >> i think there are a few things i would consider. number one, if you go through everyone is saying a soft landing is the consensus. i don't see that yet. you go to bloomberg survey and economist at the 50/50 odds of a recession next year. that's number one. look at strategists forecasts for next year. the average strategist forecast is 4833 for the s&p 500. we are 2% of that right now. 2.5% right now. we have quantitatively studied that and when the s&p 500 gets within 5% or the targets are less than 5% above the s&p 500, it's positive for the market going forward. i think that is career risk. everyone would have to raise the targets going into q1 and q2 of next year leading into

this fed cut. and everyone's talking about it and it's a real important dynamic and that is the money market funds on the sidelines. flows in the money market funds, $1.2 trillion over 2020 three. outflows from stock funds were $200 billion this year. there is a lot of cash that will try to get through a very small door in the first part of next year, in my opinion. >> you put a lot in that last comment. let me start with the cash idea because there are those that throw cold water on the ideal all this money and money markets will flood into the stock market. people like jeffrey gundlach say that's not going to happen. a lot of that money very very much go into fixed income or treasuries. if it looks like these lag effects may have an effect, that could be the case more so than people are expecting about cash coming into the stock market. what is your first cut modeled in? >> number one, i think you

don't need that money to come right back and it doesn't have to come right back into the stock market. if it just goes out in duration a little bit, that impacts term premiums, credit spreads all the way out and down the risk curve. when liquidity comes into the system it sends a ripple effect through the entire market structure. that's how i would handle that so it's a more complicated discussion. the first cut is for may. why that's important? when you go back historically was soft landings you get a 10% rally in the six months leading up to the first that cut in these soft landing cases. that puts the s&p 500 at 5200 by may of next year. i think targets are only worth the paper they are written on. but that's an important number to keep in mind going into the first cut. >> you don't think we put a lot of that forward already given the nature of this move? >> no. i would go back to the fact i think there is cash on the sidelines and go back to the

strategists. the strategists will have to up their targets going into next year. it feels bullish right now, but if you start really looking at the sentiment and positioning data and go through what economists are sang for next year, i don't think so. i think we are on the precipice of a really powerful move. look at the technical signals, we've had two or three really important over the last month. things you don't see often historically. they don't happen at the end of moves. they happen at the beginning of moves. the final thing i would say on all that is next year is a presidential election year. when the incumbent is up for election, we haven't had a down year in the stock market since 1950. i think there's a simple reason. people in power want to stay in power and it goes back to the first thing i said. yesterday's tightening becomes tomorrow's stimulus. all the tightening of 2022 and 2021 can be unwound in each step along that path and that's

a potential catalyst for the stock market. >> these are not normal political times. we can agree with that. let me look at the dow as a ask you a question. downbout 350 right now. do you have an opinion as you arwatching this like we are, as this market has had what felt like a sudden reversal an hour or so ago? >> i mean, i don't have a strong opinion. i think we are up nine days in a will and expect pullbacks. i think it's healthy to consolidate for a little bit. it doesn't go up in a straight line. i don't see it as -- there's no signal in this move yet in my mind. no. i think this is a healthy >> thank you for your time. see you soon. next, j.p. morgan, gabriela santos, is breaking out her 2020 for playback -- playbook.

how she is navigating today and where she sees strength in the year ahead. just after the break. longel wl "csi bl"ilbe right back.

we are selling often the finahour of trading in the dow heading for its first decline in 10 days. joining me now with her 2024 playbook is gabriela sans from j.p. morgan asset manement. it's been a while since we've seen right on the screen . sitting here searching for answers. humane stocks actually go down now? what do you think lies ahead given how far we've come in a reasonably short amount of time? >> in a short moment of time. i was reading this amazingtat that t equal weight index went from a 52-week gloat to a 52-week high and 33 days.

the fastest since 1982. one of many ways to see how quickly the narrative has changed. and i think we've gotten to the other extreme. one where it's become too focused on chasing whateve cyclical, whatever has lagged and that's the story in pricing and rate cuts as sn as march and i were talking about six. rk on to the other extreme. it would be perfectly natural to havcertain down days to consolidate a bit. maybe even have a pullback early next year before ultimately we move higher. we do have somewhat of a broadening of the rally, but still focused more on quality than pure cyclicality. >> has more than the narrative changed? the narrative changed and it obviously have. have the fundamentals change along with the narrative given this pivot the fed has done but some of the data around inflation and around the economy itself? >> i do think something did change last week and it's important. and that was the fed's reaction function. for year and a half it was about and fighting inflation, the economy, be darned whatever

happens there. it was all about the inflation side of the mandate. and very clearly we heard last week that's not the case anymore. there is more comfort about the disinflation process. there was more of a balance between the sides of the mandate . and the fed is now willing to tolerate economic pain because they feel more comfortable going in the disinflation and reroute. they can be more proactive versus reactive so you took the risk off the table that real rates can continue to rise next year and they are continuing to step on the brakes? >> the risk of leaving rates too high for too long at this point rather than suggesting they might not be high enough. that's where we were. not that long ago. it was like don't do too much and don't make the same mistakes we did 40 years ago. let's err on that side. now it's like don't do too much and wreck a good thing. >> exactly. there's been so much debate since the meeting last week about what led to the pivot. there are many explanations.

we take the view that it's more deconstructive explanation. inflation has continued to move down but we have unwound 60% of the core inflation pandemic surge, at the same time the unemployment rate has stayed below 4% for 22 months. you can have resilient growth and continue to make progress toward a 2% inflation mandate. and for us it took a while for them to acknowledge it but better late than never and actually increases the odds of the cycle extending next year. >> you are a believer in the broadeni? >> we are but too much of a go thing. if you look at the top performers since late october, it's very, very cyclical bits of the market. regional banks, homebuilders, small caps. and just saying the feis proactive and we are tending the cycle does not mean everything is rosy and perfect. it sll means the economy

slows down a bit. it still means we are late cycle. it still means real rates a very restrictive. >> you still think were very late cycle? >> that's what i'm excited for the conversation to go next year less hard landing/soft landing and more where a we in the cycle? we think if you look at the unemployment rate and th step below 4% for nearly two years, that is screening late cycle but late cycle can extend for years we saw that with the last cycle. it doesn't mean where expecting an imminent recessn. it just means you have to focus more about quality and that kind of environment and t purely cyclicality. >> what do i do with these large-cap tech stocks that have ruled the day? do i stay as exposed as i have been? what do i do? >> i think the number one thing we would say to investors is make a decision what you want to do with them. even if you are a passive investor you'vgot 33% of the s&p in these hyper mega cap tech stocks. not every single

one of them deserves the market cap weight they've reached at this point this year. maybsome deserve a little bit more. some a little bit less. ultimately we think there are plenty of other sect the's and companies that deserve more of a weight. >> like what? give me a good example of one or two. >> i think taking to the text theme. these arhyper large-cap stocks. what about large-cap tech stops and mid-cap? >> okay. i'm going to look at semi-. semi-have had the best year in what feels like 20 years. >> after they had a horrendous previous year. i do think semi's is an interesting theme. whether it's related to artificial intelligence in the mail from cpus to gpu's number for which there's not just one winner, but more broadly the turnaround in the demand for electronics cycles which seems

to be taking place around the world if we look at exports from taiwan and korea. that's just one example but there are other themes. we could include cybersecurity. we could include software to process all the a.i. data. >> i was talking about crowdstrike is up 150% this year. there was a positive call on the scaler today which is up 100%. so many of these stocks have gone up so much pick the biggest problem i see for investors right now is over the last month almost any sector you pick, stocks have surged a lot. double digits, if not more. now what do i do? do i take profits? what do i buy if i believe? >> and that's where late last week we started to see oney flow into equities and the bond market and emerging markets. leaving money market funds. but i think were likely to see a slowdown in the flood of money moving away from money market funds until we see a little bit of a pullback because we are hearing from investors, look, i believe in

the theme of lower yields and the theme of the broadening out of the rally and i believe in the soft landing narrative come up but i've gotten a little uncomfortable with how quickly we've come? >> do you think this cash, however much cash is being debated, however much cash in money markets comes into stocks ? >> we think it comes in assets more broadly. this is money noneeded for liquidity and it's meant to be long-term money. that needs to find a home in the bond market and the equity market of the private market. we do think so and we think it will come more broadly tha just those large-cap stocks. and that includes valley appeared we like industrials. it also includes more defenses like utilities. there's a lot there. >> have a great end of year and happy holidays. thank you. gabriela santos joining us. next we are tracking the biggest movers as we head into the close. christina is standing by with that.

consumers are fed up with higher prices and one retailers feeling pushback. more on that story and other stock movers after the break.

you know what's interesting these days? bitcoin. look for bitwise, my friends.

we are 15 from the closing bell. let's get to christina for the stocks she is watching. let's talk about consumers

who've had enough with higher prices and general mills is feeling the pull back management at their annual sales forecast and said recent price hikes have pushed consumers to buy smaller quantities are opted for cheaper private label alternatives. sales and overall volumes of north america fell in the most recent quarter. without the dark lighting and intense perfume smells from the stores of the early 2000's, abercrombie and fitch has proved its irrelevant brand and that's why sales have been soaring this year and the stock is having its best year ever and its longest winning streak in 25 years. it's down 1% right now with the greatest a lot but it's one of the best performing retailers this year, of 280%. >> thank you. next, alphabet shares are still higher despite this late day selloff. we break dowthe new report that sending the tech giant into the green this afternoon. "closing bell" is coming right back. benefit more growth. when you realize you can give your people everything,

and more. thank you very much. [applause] ask, "now what?" here's what. you go with prudential to protect, empower and grow. with everything you need to deliver, you guessed it... more. one more thing... who's your rock? learn more at prudential.com you got this. let's go. gobble gobble. i've seen bigger legs on a turkey! rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror. i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. you know what's interesting these days? bitcoin.

look for bitwise, my friends. ♪ upbeat music ♪ upbeat music

you can't buy great conversations or moments that matter, but you can invest in them. at t. rowe price our strategic investing approach can help you build the future you imagine. t. rowe price, invest with confidence.

about 10 minutes from the close and we are decidedly red across the board. the dow, s&p and nasdaq in the red. nasdaq down by a little more than 1% as is the russell. much more on this late day drop and your earnings run down. we will do that in the market zone next. the biggest ideas inspire new ones. 30 years ago, state street created an etf that inspired the world to invest differently. it still does. what can you do with spy? ♪

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 netrading opportunities, while an earnings tool helps you plan your trades and stay on top of the market. e*trade from morgan stanley.

right now the closing bell markets. micah santii here to break down the crucial moments. and the possible reorganizatio at off of that. christina is watching micron today in those earnis in the ot. what's your world on this rollover we've had late in the >> the market in many ways was wound tight. we were talking about the streaks. our technical strategist this morning pointed out that for nine straight days and 13 of the last 14 the s&p 500 closed ove its midpoint for the day. meing we have late day rallies on autopilot with that as a backdrop, normay once you get overbought and keep going higher, it makes things vulnerable in the short-term. but not in the longer-term. we crack those lels you were talking about earlier in the hour.

it seems like once the game changed and the pattern of late day bid and this autopilot execution programs did not show up, it was like, okay, came over for now. we need to reset i don't think there is a lot of mage done but maybe we change the rhythm of the market a bit. we crossed above 4700 on the s&p a week ago and now we have retraced it back to that and we will see if that's enough to take some of this off. >> we are following news regarding citigroup. the overhaul by frazier appes to continue. >> the latest from sourc with direct knowledge of the situation at citigroup has decided kill yet another wall street business with many decades, in terms of the markets. it is calling the distre that business. that is essentially the nds and other instruments. companies in bankruptcy or approaching bankruptcy. they have been experiencing a lot of

turmoil in the business since '08 pick lots of people leaving to sta their own hedge funds. in the midst of frazier's overhaul of the business, she has decided to cut bait and kill the business you are between 30 and 40 traders and sales people and other highly paid individuals in this business who will the next few days if there being at go. >> thank you for the update. we will continue to watch that stock toward the close. deirdre, i have read all over my screen except alphabet? >> that's right. one of the biggest s&p gainers today on the back of a report that said the company is monetizing i. and is tech business information puts a number on one a.i. generate an additional $15 will billion in search ad revenue per year and that could ease investororries about the impact of a.i.

on google's broader search business and pottially give it room for alphabet to cut costs further. the report says that alphabet is planning a reganization to rely more on such tools the less actual salespple would bring costs down and help as google faces challenges to another less profitable part of its ad business which is subject tooj lawsuit and that will play up next year. that green on the screen is off of that. >> thank you. i've gotead on my screen from micron. that's ahead of these earnings in ot. >>et's start with a positive. a long period of sustained declines over all but were starting to see an uptick in memory and that could be a driving factor for micron. degenerative a.i. models which require high- bandwidth memory pick abilization in pcs and smart phones and the cyclical nature of customer inventorlevels are coming down here it sounds like a set up for micron but to your point the company alrdy

preannounced november 28 and although they increase the q1 revenue guidance, is theigher- than-expected $990 million in operating expenses that remain a big concern. they are expeed to operate at a loss but the micron ceo once at a secret conference that higher expenses were due toiming of asset sales. investors will be looking for signs of a gross margin recovery. that means today all t focus will be on the february quarter guidance for gross marginsith the bulls looking for further signs of improved memory pricinto this recovery story intact but like you pointed out , shares are lower right now. >> thank you. a news alert on warner bros. discovery and paramount. what do know? >> according to a report from axios that are reporting that warner bros. discovery is in talks to merge the ceo of warner bros.

met with the paramount ceo on tuesday to discuss a possible merger. warner bros. market cap is about $29 billion while paramount is just over $10 billion. axios is reporting the mpanies are in talks to merge. >> more media deal needs to talk about in the days ahead. mike, we have a minute. we've had a lot of late day it was only a matter of time before we had to get on an elevator. >> when the horse breaks, stride. wait till the next lap to regain. everything we've bn talking about. all the superlatives pick the fact that everyone is referring to the rally is litless. that goes into mixture say demand pick we had a break in d demand. votility index has not made new lows as the eqty index is making new highs the last couplef weeks. basically bracing for it to nobe so easy as it was. the six week indiscriminate

visement and were getting some indigestion. >> it's not going crazy either. >> is not going out much but did go down to new lows as the s&p was making new highs. >> there is the bell. stocks will go downlmost 500. 477. i will see you morrow. late d selloff mad ings interesting sending major averages sharply lower at the close. welcome to closing bell: overtime. economists and investment firm joins us with her take on today's market pullback and the wild card that could derail fed plans next year. >> another bell warning earnings report coming your way following the fedex flop. we get numbers from micron and just a momen