the rocket released the starliner capsule and orbit as planned. the flight going as expected, according to mission control. >> carrying astronauts to the space station for the first time on a boeing craft, if i'm recalling directly. that will do it for "power lunch." thanks, everybody, for watching. we appreciate it. time for the launch of "closing bell". >> right now. ♪ thank you, guys. welcome to "closing bell." live from post nine here at the new york stock exchange. new high for the nasdaq, new dra day highs for the nasdaq and s&p. the so-called wall of money that goldman sachs says can keep this rally running. we'll explain coming up. ask our experts whether they agree with that. take a look at the score card with 60 minutes to go in regulation. we're higher across the board. new intraday records for the s&p. new intraday for the nasdaq. closing highs for both of those, too. we'll track it over the final

stretch. it is led by tech nvidia moving higher again. how about apple? approaching $200 a share. it's been on a tear lately, that ahead of that worldwide developers conference next week. we'll be there live. economic data, a bit weaker again today. once again, sending yields lower. 10 year cracking 4:30 a little earlier. and there it is under that level today. but unlike past days, yields down, stocks are up. remember, it wasn't exactly the case over the last couple days. it is helping the russell. that's up nicely. the road ahead for stocks and what kuld fuel the next leg of this record-setting run. let's welcome in greg branch, with me here at post nine. it's been a minute. good to see you again. welcome back. >> good to be back, scott. >> are you surprised by where the market is versus what your view has largely been the last year? >> i am surprised. i am surprised because fundamentally some of the things that we were expecting have played out. and so, you know, last we sat,

we were sitting with a consensus expecting six or seven rate cuts. now we have gotten into an expectation of one rate cut in some parts of the or two, and yet we would still be at these market levels, that many would have been surprised back then. >> okay. economies remain far better than people think or thought it would. if that's the principle story. don't need rate cuts. and earnings had been better than people thought. i think you included. >> agree. >> and that's why we continue to hit records. so what now? what now? >> so, the things that you cite are actually a part of the problem. are actually part of what keeps me up at night. yes, we saw a 6% earnings growth quarter, but that leads to the question, has the fed been restrictive enough. folks have largely disagreed with me on this -- >> they've been right to disagree with you. >> for sure.

for sure. >> let's be fair. >> the fed disagrees with me. >> so why are you fighting it? >> am i? am i? we saw in their may 1st notes that we saw two unnamed participants said that if the current conditions persist, that they would be open to a rate hike. that was the first time we have seen the fed actually put that back on the table since their pivot on december 13th. and so, the preponderance of data we have for 2024, scott, it's weakening more in the last few weeks, the preponderance of data says they haven't been restrictive enough to meet their target of 2%. >> many, many members think they're restrictive and the fed chair has eluded to that fact, if not exsplis italy. >> when we see wage growth move from 90 in the fourth quarter to

120 in the first quarter, when we see job growth go from the mid hundreds to 200 and 300,000 numbers. largest was 303,000 as recently as march. then we see in the s.a.p. move their gdp forecast up, move their forecast for inflation up and move their forecast for unemployment down, all of those in the wrong direction. it led me to believe what we saw on may 1st, that the opinion is changing. maybe not with with nun anymorety on december 13th. but certainly changing of opinion among that body. >> so, you don't think they're going to cut at all this year? >> i still don't think we're going to cut at all. i would like to wait and see if some of the recent data we have becomes a trend. we have fallen into this trap before where we extrapolated what is anomalous data as a new trend.

we have seen 170,000 of job growth twice before in the last 16 months. it didn't end up being the trend. and so, we'll see what the job data is this week. if we can get to a trend that's in the low hundreds, if we can get to a trend on core inflation that's only 20 bases points, i'll reconsider this view because the data will say it's wrong. >> yeah. but some suggest you're still hanging on old data. now admittedly, there were three-straight reads of cpi hotter than expected. and the market didn't like it. rates backed up. stocks sold off. but that's back ward looking data. and more recently pce in line would suggest that inflation is, in fact, moving down towards trend. the nay sayers, would suggest, well, it's still really sticky. this that and the other. the fed would say and some would suggest that rent is a lagging indicator, which is falling and the fed will cut rates before

inflation gets to 2% any way. >> right. so there's three things i'll separate. number one, sure we could focus on the latest data point and say that that's the trend. i would prefer not to do that. i prefer first to focus on the last five or six data points. and to see what's a trend. and when you talk about the numbers showing some deterioration, yes, that happened recently. but if we look at all of 2024, it shows there's no disinflation occurring right now. when we talk about other things like whether or not the fed is going to cut or whether the fed is not going to cut, i think they're largely going to be driven by the data. that's why we started to see a reversal in what at least some of them think. bostic has been the most clear saying he wouldn't consider rate cuts until the fourth quarter. until i see the data turn on a consistent trend basis, i have to stick with what it's told me so far. >> that's fair, but why -- it feels like it's a cherry pick of data that tries to support your view, rather than focus -- why

don't you focus on the trend, the fact that we're in a bull market. focus on that, that's what is speaking louder than anything else. >> right. >> is the fact that stocks have been in a bull market. >> right. >> from the april low, stocks are roared back. we'll have new closing highs again today. the s&p and the nasdaq. we came from the october low and stocks sold off in april and then we came roaring back from that, too. >> right. >> doesn't that trend count for something? the market is so -- megaphone like, hello, we don't really need rate cuts right now. >> look, and who knows what the market is actually saying with what it's doing. >> the market is going up. >> the market is going up. we could argue why that is. i don't know that any of us could pinpoint with this is the exact reason. undoubtedly the market is going up and undoubtedly the market is saying that is wrong. that's happened a number of time over the course of the last two years where the market turned out to be wrong about its appreciation and reversed course. i'm simply saying, yes, it's been great.

there are certain areas of leadership i think probably deserve it. like tech, like some of the tech that's levered to ai and levered to the cloud. certainly some pockets of supply/demand imbalance that probably warrant the appreciation we have seen. overall as a market, i'm not sure we can justify particularly if we need a more restrictive environment what the market levels are right now. >> why do you continue to think we're going to need -- use that word a more restrictive environment? the fed thinks that we're restrictive enough, right? >> the fed has thought lots of things. the fed told us they're going to do things they ended up not doing. 2021 they told us they weren't going to raise rates and inflation was transitory. they did the exactly the opposite. again, i listen less to what they say and more to what indicators they give us in terms of their projections and what they're doing. >> they haven't given you indicators that they're done? the next move is a cut. >> they did on december 13th and said that two of them are

considering hikes in this cycle. so they've changed what they're indicating f you read between the lines. >> they did at a time when the inflation reads were high. >> okay. we'll see. >> that's why the minutes were painfully back ward looking. >> okay. and that is the way that they have always approached it. if we want to argue for a different approach, i suppose your argument is with them and not with me. >> my only argument is that, you know, the market has been obviously reacting to better earnings and a more resilient economy than people expected it to be. >> right. >> it's been reacting to the fact that you know what, what we thought we needed, the drug we thought we needed of cuts, we don't actually need because we feel pretty good without any of that. we know they're restrictive enough because they said so. and we know they're not hiking because powell himself, the chair said so. just because they were wrong at the very beginning and late to react, you're writing them off for the whole thing? >> no, i'm not writing them off for the whole thing.

the problematic premise, i think, in the argument we're making or we're discussing is that, yeah, 6% earnings growth in a vacuum is growth. we all root for that. 6% earnings growth and gdp accelerating, if it continues to do that. we have seen evidence it might not, continuing acceleration of gdp growth and 6% earnings growth adds to the problem. there is no way to get down to 2% inflation with wage growth at 120, 6% earnings kbrout quarter. >> you're assuming that excess demand because of all the things you just said will continue to keep inflation higher than the fed want. >> right. >> when the fed chair has suggested that this is not your traditional inflation, it's not caused so much by excess demand. there are other forces at play, not to mention the fact of what's going on with ai. that's deflationary.

don't you think? productivity will be elevated. >> in the long-term that's completely deflationary. but the long-term might be 2025 and 2026. when we're talking about 2024 and first half of 2025, if the fed sees this moving in a different direction, no matter what they posit the inflation is from, they have limited triggers with which to contain it. and that limited trigger is either reducing the balance sheet or raising the interest rate. >> so you think that stocks 53.50, we'll call it there now, are going to be lower at the end of the year? >> i think so. >> by how much? >> look, i would say 10 to 15% pullback is warranted. the only reason i'm revising up a little bit, tech has become such a major component of these indexes at this point. i do believe that in many -- as i said, in many cases tech probably does deserves some of the tail wind it has. multiples aren't going to matter when we're looking at a few select sectors and a few select

companies that can put up 20% earnings growth while the rest of the market puts up those single digits. >> let's bring in rich weiss and stephanie link. steph is a cnbc contributor. good to have you both with us. rich, i haven't seen you in a minute. good to have you back. sounds like you're on team branch. market is at best fairly valued. not a buyer of equities. why? >> yeah. in part. i would say i agree with some of greg's comment. we're not looking for rate hikes. scott, to your point earlier, stock markets doing well because of an amazingly resilient economy we have seen better than expected growth, largely predicated on the strength of the consumer and the labor markets. but, i don't think there's any question now we're starting to see cracks in that, right? real personal spending negative. latest consumer spending and income now disappointing and the labor market, in fact, finally

is starting to show some weakness. so that economic growth is decelerating. that's what we're worried about. we're not so much worried about the fed rate hikes. we expect possibly a rate cut or two later this year in keeping with fed funds futures. but as the economy decelerates, going into an election year with the debt levels where they r it's just hard to see any fiscal policy supporting it. so we're worried about corporate earnings going forward with a decelerating economic environment. >> okay. let's talk about the market specifically. let's have a debate about what goldman sack's trading desk is talking about today. stephanie link, i'm quoting from their latest note, getting a lot of play on the street this afternoon. the bar for being short equities right now is very high given these upcoming flow and random market dynamics they say. quote, the best days of the year are coming up. what happens in the first half

of july that has historically been equis the, new quarter, new half year, this is when a wall of money comes into the equity market quickly. they talk about retail. now, they do say that u more tactically in the near term you have a massive drop in risk abhit and that you could have a big flow of money out of the market before the end of the quarter, so before the end of june. however, what they suggest about the best days of the year are coming up, pointing to the very heart, the belly of the summer. what do you say? >> well, there's about $6 trillion in money market funds right now. so there's definitely money on the sidelines that could come in. why would it come in is because the -- oechb though the economic data has been mixed as of late, it's very suppori supportive of landing. talking about earnings, that is

going to lead to continued earnings being strong, stronger than expected. better guidance, especially in technology and especially even in growth. you know i'm on both sides. i'm a core manager. i have growth and value but more value but growth is really delivering in terms of earnings. earnings excluding bristol myers were up 10% in the first quarter. poised to grow 8 to 10 this year and the reason is the economy is going to stay strong if you look at services. we got some really good data, scott, on services if you look at the adp services rose 149,000 in the month of may. ism services increased 310 bases points month over month. and the new orders also accelerated. business activity increased 11,000 -- excuse me, 1,100 rather basis points month over month. so the economy is still strong. even though there are some pockets that i'm watching. but that is really the driving

force of this economy. 70% of consumption and the consumer is 75% of our economy. adding it all up, i think earnings will stay strong. i don't have a crystal ball and know if the market is going to go down before it goes up. i'm just looking at the long-term themes and very powerful and i think that we will continue to see better earnings and that will drive the markets higher. >> remarkable story we're showing on the side of stephanie's shot. can we put that back up, please. nvidia hitting $3 trillion market cap and it's about larger than apple. that reflects the remarkable run this stock son. it's up another 5% today. up another 55 plus bucks. let's just keep that up. i want to keep an eye on that. what do you think about this goldman note? again, you're running up against this. the best days of the year are coming up. they're looking for a wall of money coming into the equity market quickly. that is the kind of thing that

fuels the next leg of this bull market? >> right, right. that could very well be true. keep in mind, i can't tell you that this is the catalyst and it's going to happen on this day. i can't say that. because ultimately i believe what the catalyst will be. we agreed on this on february 20th and i think we'll agree on this today is that if we do have a fed full pivot, do have a time where the data is conclusive that they haven't been restrictive enough, that's going to be meaningful and significant negative catalyst. >> i think that's obvious. >> but there's no reason to believe we'll have that moment. >> there's no reason to believe that there's a zero probability we'll have that moment either. >> there's not 0% probability ever. however you play on probabilities, right? >> i think it's more likely that we'll have that moment than we won't. >> that will be a big downdraft for the market. so guys, let's talk about rich, when you see nvidia, this

unabated for the most part rise in this stock and these other megacaps following suit, you think what? >> hey, we're all enjoying the pull that those mag seven or fab five or terrific three, i'm losing count on that but we're all enjoying that ride. but you really have to bifurcate the market at this point. the s&p is up somewhere around 12% year to date. but, the s&p equal weighted fairer measure, the broader market temperature, is up less than half of that. so, enjoying the pull from these stocks but that highly concentrated pull in terms of returns and valuations worries me. it's a handful of stocks that are doing it. the broader market is not fairing as well. granted, we're up 5, 6% equal weighted. but efa is doing better than we are even with the strength of dollars. >> well, that's because they're

probably anticipating rate cuts coming sooner than we're going to cut, right? >> right. >> yeah, exactly. again, but, our economy is slowing down. it's decelerating. we'll likely get some rate cuts. that's not good news for stocks. okay? that's bad news for earnings at the end of the day. d consumer is going to be showing less resiliency going forward. the labor markets are slowing down and, again, we have some debt burden problems coming around the corner. >> are you saying a soft landing isn't good forstocks? that's kind of the picture you're painting, right? a soft landing is not a continuing to roar economy. nor is it a continuing to roar labor market. there are slow downs but not cliff jumps, right? isn't that the definition of a soft landing in the first place? >> yeah. but that's not the ideal environment for stocks, right? rather see a growth environment

not a deceleration. yeah, a soft landing is better than a recession. but i don't think either is particularly great environment for equities. why is there a wall of money sitting on the sideline? because it's a smart place to be. if you could pick up 5, 5.5% in the safest fixed income securities in the world short-term, why wouldn't you do it? that's why the money is there. why jump into an equity market where the outlook is at best cloudy and the best outcome is a soft landing. again, it may be soft -- >> i get that's your point of view, but that's not necessarily the best outcome. why would you have done that five months ago? i don't know. the s&p is up 12%. 12% better than 5% return? is the possibility of greater gains moving forward with rate cuts now to think about better than sitting in cash? i mean, you guys manage the money.

i don't. but that seems to be a better draw to some. >> it's always uncomfortable, you know, fighting the tape, being contrarian. but you know, i think history shows that the biggest payoffs to those positions happen in these uncomfortable times. so, scott, we're going to have to wait and see, right? it may be -- the fed may be able to orchestrate a beautiful soft landing and stocks will continue to rise. but again, to your point, we don't see it that way. at best, a flat equity market through the rest of the year, which again argues for fixed income over equities, in our view. less bumpy ride, less volatility, higher safety. >> steph, give us your final thought as we see apple and nvidia tied $3.006 trillion. apple is, i think, your largest position now, one of them for certain and you've been adding to it recently. >> yeah, it is my largest about

7.5% position in my portfolio. i don't know if monday is going to meet expectations. might be kind of hard just given the rally that it's had. but i still think that a lot of bad news is in the stock. it's still down 5% from its highs. it's not egregiously expense i have. services piece is growing as a percent of total ref news and will continue to do so. add on a new iphone cycle and ai when ever that comes and i think that's a good recipe to have this as my biggest position. technology, though, is on fire today, scott. and that is mainly because you had hewlitt crushed it. i mean, there's some really powerful themes that are going on. it deserves to be up given all that we're seeing. the semis and hardware companies are monetizing ai right in our face. software companies not so much yet. but that's where you want to be and those are very powerful themes.

ai and cybersecurity you want to be absolutely involved. >> you got 300 points for the nasdaq. we just moments ago put a new intraday high in as well. 17,160 and change. as we look for another closing high for the s&p and the nasdaq. guys, it's been fun. rich, i appreciate your time along with steph. good to have you back. >> good to be back, scott. >> you haven't lost your debating skills. i appreciate the conversation greg branch joining us once again at stock nine. let's start with amx shares slightly lower after ebay said it was ditching the amx payment option come mid august. ebay said the unacceptable high fees. amx argues it will limit customer's payment options. that ebay still accepting google pay, paypal and other credit cards. record high for hpe after ai servers helped drive higher earnings. sales of ai oriented systems

doubled sequentially because of increased demand and better availability of nvidia gpus. the nvidia touch continues. shares up 11%, almost 12. >> just, just, just unbelievable. we'll see you in a little bit. we're just getting started. up next, class back in session. now the dean of valuation aswath is back to tell us how he thinks the ai trade could shift and what it might mean for your portfolio in the long run. we'll debate that next on the bell. bringing you an elevated experience, tailor-made for trader minds. go deeper with thinkorswim: our award-wining trading platforms. unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. and sharpen your skills with an immersive online education crafted just for traders. all so you can trade brilliantly.

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powering possibilities. we're back. another day, another record for nvidia. those shares powering the nasdaq to new highs again today. pushing tech's forward pe to highest level in more than 20 years. joining us now the dean evaluation himself, aswath. welcome back. >> glad to be back. >> let's talk about nvidia again. i mean, you own it.

so you should have that big smile on your face. is it defying logic to you? or does this make perfect sense? >> i don't want to sound like a broken record, but entrance evaluation is really tough to get to 3 trillion. that set, though, if you're designing the perfect momentum company from scratch, nvidia would be it. you have a great story. a ceo who sticks to the story, no distractions. is able to meet expectations. because they set the game up. and you got a market that contributes to the mix. i think that you're seeing one of the great momentum plays of all time playing out in front of you. >> are you re-evaluating is maybe the best word i can think of at least now of how you would view this stock in terms of its value? if you thought it was overvalued before, what do you think now? is it forcing you to look differently?

>> every earnings report you're required to go back and look at the basic story. my basic story is bigger than it was a year ago, partly because of what nvidia delivered and partly because of what ai is showing it can do in the overall economy and market. i was listening in on the story about hp enterprises reporting higher earnings because of ai. you saw that with the big tech companies. i think you're seeing ai percolate, go beyond the architecture part of the business into services, into products, into the rest, the software. you'll start to see the ripple effect. >> so if i raise my hand in your class and say simply, professor, is nvidia overvalued? what do you say to that? >> i would say based on my story 3 trillion is too high a number. this is a story you could find plausible paths to get to 3 trillion if you add on additional markets. somebody says i'm buying nvidia because i think it's cheap. it's not my job to argue and

tell them it's not cheap. that's one of the things about momentum companies. is there is a plausible path to get to these really high numbers. and when the momentum is in your favor, you find those paths. >> that's why it's so hard to be negative. you say there's a plausible path, people sort of can see that, that's why it's hard to be short names. when you were last with me, you said, quote, may will be a month determines how returns for the year will look. april was ugly. may we came roaring back. does that make you optimistic now for the rest of the year? >> i have a feeling the next few months we are going to see the political play come into markets as well. i'm surprised it hasn't shown up more strongly yet. i think we are heading into an election, there will be uncertainties that come with that. but i feel much better going into this summer now than i did a month ago. >> when you see tech coming back

the way it has in the month of may and here we are yet again with these unbelievable numbers with nvidia and look at the market cap comparisons between that and apple. the fact that the market is once again narrowed in some respects back to these stocks, does that give you pause at all? or is that just -- that's just where the action is and that's where the plausible stories are? >> i decided the only way to assess how much this market is carried by the big tech stocks, i look at what zoks have done, all u.s. equities january 1st of this year and end of may. this is a less top heavy market than the market in the first six months of last year. if you took out the big tech companies last year, there was no market rise. this year, if you look at the bottom 50% in terms of market capital companies, they actually delivered more in percentage terms than the top 50%. i think the stories about companies like nvidia lead us to

think this is an incredibly top heavy market. but it's much less top heavy than it used to be and the nature of big tech is you'll have moments like these where it carries the market. but i think the rest of the market has done much better this year than it did last year. >> overall, would you say that the s&p 500 is fairly valued where it is now? just given the fact that the economy is stronger than people thought. rates now are moving down again. how would you assess that? >>se are the conditions i would add, if the economy stays strong and earnings continue to beat expectations which they have so far, i think the market reflects that. i think the question is whether there are surprises lurking and there are always surprises lurking. you can say that about markets at any point in time. am i okay where markets are? i can live with markets where they are. this is in 1999. 2007 heading into a crisis where

you see those storm clouds, i think that it is a richly-priced market but it's reflecting the good news that the market sees around it. >> if it's good enough for the dean out of valuation, it will be good enough for a lot of people. be well. >> thank you. up next, lululemon reporting top of the hour. that stock had an ugly year, down 40%. so is a turn around in the cards. we discuss right after the break. (office chatter) is it me...or is work not working? at least, not the way it could work. your people are buried in busy work. and you might be thinking... can ai make it all work? can ai help your people work... without all the workarounds? feel better. make customer service work the way customers expect? that one. make your old tech work with your new tech? thank you. and todd here is wondering,

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lululemon reporting earnings after the bell. that stock heading into the report vastly underperforming the market down 40% this year. putting on pace for its worst annual performance since 2008. john kernen is with us now ahead of that. good to see you. >> thank you for having me. >> what do you have on the stock? what's gone wrong with this story? >> i have a buy on this stock for a long time. this valuation multiples are at the lowest point since 2017. that was when the business was at scale. margins were much lower. right now competition from some up starts is certainly changed sentiment. >> why aren't those issues that we mentioned more significant for the long-term that the market share that this company has had on the premium end of what they do is going to erode more than people think because of the increased competition? >> i think it's overpriced.

this is one of the better financial models in retail. 50% -- they print cash. i think risk is actually to the upside for numbers for here. >> at least $2 billion in stock. that could add 40 cents. competition is real, but lululemon has grown 2.5 billion in sales in the americas the last two years on top of that competition scaling fromvery little to maybe $2 billion in combined revenue. we think it's overpriced here. >> you feel like you can accurately gauge what was the pandemic boom that a company like this got? you feel like you have your arms around the pull forward which may have been much more significant than people think? >> there was definitely some pull forward. they also reached out to a new subset of consumers. they were much more diverse consumer, age, gender, income, ethnicity. and there was a lot of customer acquisition really from the pandemic, really through last year. top line results in the fourth

quarter holiday last year were quite year, but the north american top line profile and north american stores are comping negative. that's the first time that's happened plus seven years outside of the pandemic. investors are worried we reached peak growth, peak margins hence you get a crazy move in valuation. >> what if we're worried about what the consumer is doing in years ahead? >> management talked to the macro environment and hinted that some of the weakness was macro driven. certainly some merchandising issues that hit them as well and the competitive environment has gotten tougher. i think the macro was good. we were right down the street the last two days. the theme is high end consumer still in a good spot, right? the stock market sat all time highs. housing markets all time highs. >> this company feels like had this segment to itself. >> yes. >> like higher end at leisure. now the marketplace is

undeniably changed, right? go walk down the street, biori has its own location and several other brands. isn't that a more structural and secular change for this company? >> yes, it's a big change. >> soft line retail have never been lower. social commerce changed everything. brand are now scaling very rapidly. the up starts, other theme from the consume conference was the upstarts are gaining massive share, particularly at the high end in athletic apparel. footware, ons. so there's the competitive environment is tough as it's ever been. i don't think you have much gross margin risk with lululemon. they're not getting undercut in terms of price or promotion. >> sure. but if your margins are holding up, but your traffic is not, and your comps are not, then it doesn't matter. you know what i mean. it doesn't make a difference. >> they need to prove that the

americas is slow down is a function of tough compares, which it is. north american business in 2022 was up over 30%. it was up mid teens last year. so they got very difficult mid multi-year stat comparisons match that's playing a big role. that market they were in post pandemic was quite strong and having trouble. >> what about return to work lastly. as we move further and further away from the pandemic, do we get closer and closer to incremental increases to return to work and does that have an impact? >> it does. the casualization theme certainly pulled forward demand post the pandemic. that was obvious. i think we there's a lot of market share to be had. >> do you think it's still small, where, not in the u.s.? >> brand awareness is -- >> brand awareness in the u.s. is small? >> believe it or not it's still low. it will get harder because you have two very disruptive brands

in privately held. that are here. they're not going anywhere. going to open up a lot more stores. but lululemon can compete in these market and have a great financial market. >> that's john kerning. up next, the biggest movers into the close. kristina partsinevelos will tell us what she sees. >> major retailer chain up for sale and high sticker prices are hurting demand for premium liquor just ahead of the summer. i'll explain the impact on shares next. p

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let's get back to a look at the stocks. what do you see? >> well, we may not be buying more hard liquor, at least i'm not. but we certainly are paying more for it. the maker of jack daniels beat q4 profit expectations because of price hikes for whiskey and teq tequila. it was enough to offset the 8% drop in quarterly net sales. shares are down 6%. family dollar is up for sale. parent firm dollar tree said it is exploring a sale of family dollar brand not even a decade after it bought it for $9 billion. the family dollar tree has struggled to compete with dollar

general. dollar tree typically focuses on middle income consumers. divergence in their consumer. >> thank you for that. still ahead, nvidia hitting $3 trillion in market cap this hour. we monitor that major move right up to the finish. don't go anywhe.er trading at schwab is now powered by ameritrade, giving traders even more ways to sharpen their skills with tailored education. get an expanding library filled with new online videos, webcasts, articles, courses, and more - all crafted just for traders. and with guided learning paths stacked with content curated to fit your unique goals, you can spend less time searching and more time learning. trade brilliantly with schwab.

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a look at what to watch or scan the qr code. coming up next, semisurge. chip stocks seeing a big bounce. tell you what's behind the move and if there's a case for more upside ahead. we're on record watch. we'll check those moves inside the market zone next.

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trading day plus frank holland on on the rally and transports. and chris see the that pa partsinevelos is back. >> mike, nvidia added 1 3/4 trillion dollars in market cap year to date. >> it's about a third of what the s&p -- >> it's just may -- i mean, it's june. it's barely june. >> so this is one of those days where it's clearly the biggest upside driver and it's associated stocks are adding disproportionately to what the index is doing, which is tracking to close at a new high. but it's also just not nvidia alone. there have been many days recently where it was the rest of the index against that one stock. today at least, we got the benefit in other groups from this big pullback in treasury yields because the services ism came in at a reassuring level. seems like private sector payroll from adp was roughly in the zone of saying the economy is okay. and now you have things like banks being draled higher and

the rest of the market is able to find its footing. now, i wouldn't say it's an all inclusive rally. a third of all stocks are down today. banks are barely positive. but that's just a selective market. we have the effective date for the stocks for nvidia tomorrow. it feels like things are gathering toward a hey, we made it moment. but you know, until proven otherwise, it's a bull market with decent tone. >> frank holland, tell us about the transports. >> hey there, scott. old dominion is higher from upgrade citing near-term tail winds and consolidation after the bankruptcy. >> didn't i do this yesterday? >> today's old dominion are trading higher on rebound hopes. it's also somewhat of a surprise

after ism moved deeper into contraction appearing softness. another read after the bell when old common on, trucker for walmart and amazon provides update. on "worldwide exchange" i'll talk about the free market in q2. that's coming up at 5:30 a.m. scott? >> bright and early, we'll looking for it. frank, thank you very much. frank holland. >> you can tell us more about nvidia because it is up another 5% today and 3 trillion in market cap. >> yep. it's a very, very elite club and luckily i get to report about it. but nvidia pushing out apple as the second most valuable company according to market cap. mike mentioned the 10 for 1 stock split a big driver for that. bank of america new 1,500 price target. lastly, op monday, we can't

forget nvidia ceo overnight, over the weekend, announced a new ai software and platform ruben with gpus coming out in the next few years. so that was a big positive for the stock this week. switching to dutch equipment maker asml, tcmc would receive new asml equipment this year. this is a big deal because this is worth over $350 million. several 18 wheelers to just deliver and not only are they getting new equipment, but barclays analysts say the firm could actually hit $170 a share as more advanced chips drive growth. now on your screen, applied materials in qrla, barclays upgraded from increased spending from china and of course aggressive cap-x plans in the united states as everybody builds out their fabs. >> all right.

>> thank you. kristina partsinevelos. >> turn back to you as we approach the close again. looking at closing highs for the s&p and for the nasdaq. how about this goldman trading desk note. love your opinion on this. best days of the year are coming up. they talk about that wall of money. those are their words, coming in in the start of the third quarter. and start of the second half. >> everything you look at in terms of anticipated flows and how the market has already performed whether the first 100 days, basically lees you in a position of saying, don't fight the upside too hard. seems like the natural bias all else being equal would be for further gains. that being said, you have three $3 trillion companies right now. it's a real easy comparison. microsoft has twice the sales of nvidia. apple has three times the sales of nvidia. that's your call. how much longer is that going to last? so i do think it makes sense to lean toward giving the market the benefit of the doubt, but it

remains choppy underneath the jobs number. >> there you go. nvidia and apple $3 trillion in market cap a piece. and the s&p and the nasdaq with new record closes. [ bell ] >> that's it for "the bell" i'll see you tomorrow. ♪ record highs, record closes for the s&p 500 and the nasdaq as nvidia hits a record of its own. passes $3 trillion in market cap. that is the score card on wall street. but the action is just getting started. welcome to "closing bell overtime." coming up this hour, key reads on retailer and the consumer. when lululemon and five below report results. we'll break down the numbers with long-time retail