lakers. so, he will pursue his third straight ncaa title on current contract of $32 million over six years, but the governor of connecticut said he would make him the highest paid coach if he stuck around. >> i'd much rather be a coach at the college level than the pro level. thanks for watching "power lunch," everybody. >> "closing bell" starts right now. thanks so much. welcome to "closing bell." i'm scott wapner from apple park in cupertino, california. the make or break hour begins with some have suggested is a make or break moment for apple and its place in the a.i. arms race. the developers conference, a chance for the company to unveil those ambitions today to try to keep up with competitors who have already revealed theirs to great fanfare as you know. we'll ask our experts and shareholders whether they achieved that goal today and what it means for the stock going forward. interesting to note, apple shares have moved lower during the presentation today. moving around a bit.

we'll track it. down a little more than 2%. we'll show you the scorecard with 60 minutes to go in regulation. there's not a ton of movement in the majors ahead of the cpi report and the fed decision coming this wednesday. we are on closing high watch on both the s&p 500 and the nasdaq. one of reasons why the nasdaq doing well, take a look at crowdstrike, up better than 9%. that's the standout on news it's going to enter the s&p 500. nvidia is up, too. its ten for one stock split taking effect today. shares getting a little bit of a bump. takes us to our talk of the tape. one of most significant moments in the history of apple, called exactly that by dan ives. he'll join us to assess what happened here today and whether it lived up to those great expectations surrounding this event. for now let's bring in cnbc tech correspondent steve kovach with me at apple park along with big technology's alex, malcolm etheridge, who owns apple shares

and a cnbc contributor, and iokaa with the wealth management group. steve, we talked to you going in. now we're coming out. >> going in we were talking, is apple behind in artificial intelligence? everyone said, of course it is. coming out, they've caught up. basically a lot of what we saw is what we've seen from their competitors. i'm reminded so much of microsoft's marquee a.i. product called co-pilot, which they sell within their own ecosystem on windows and office apps. this is the doing the same thing but in apple, across mail, image generation, writing emails for you. siri is more natural language. these are all things weave seen over the last 18 months or so from other companies. now apple is bringing it in. we can't for get the chatgpt/openai partnership. they did get the name check.

it will be ab optional feature within what they call apple intelligence ecosystem. one more thing, a lot of features they showed today were running on apple's first-party app. those are the apps that come when you open up your phone for the first time, the apps apple made. they're opening up developer tools so third-party apps can play into that as well. that is where the key feature is to unlock a lot of this, see what all the developers are here, thousands of developers registered to learn the latest and greatest from apple. what they do with this will be almost as important. >> one of the great mysteries, it was no mystery that sam altman of openai was on campus. we did see photos of him earlier and we showed it to you earlier. some suggestion is altman going to be on stage at some point? no, he was not at the end of the day. as you allude to, openai was all over today's announcement and it will be all over their ambitions. >> not just all over.

apple called it the best a.i. product out there, which is why they tapped into it first. but they are opening up to others. we heard these discussions, perhaps, happening with google, perhaps happening with baidu in china. >> the question, alex, becomes, is what happened today enough? steve said it's catch-up. they caught up. is it enough to get people to get a new iphone? at the end of the day, that's all that really matters. >> yeah, that's a big question. i agree it's catch-up. i thought this was cool. didn't blow me away. throughout this entire run up to wwdc, we've always known the chatgpt app is available on your iphone. you don't necessarily need siri to say, do you want to use chatgpt? so many people tried it and forget the use case that they want to use it for so they back off. they had a surge of users in the beginning, 100 million users. now 100 million users, maybe up to 200 million.

it will be incumbent to apple to give people using the latest iphones the prompts to say, hey, you want to use a.i. here and really make it something that they're going to want to put into place in their day-to-day lives. then it will be up to the early adopters, people on the 15 pro, people who are going to get the next series of iphones to really jump in 37 and the word of mouth is going to be so important on this. if you're sitting at a table in a restaurant or making plans with someone and they're using apple's intelligence and you can't use it and it works, then you want to upgrade. if they mess this product up or like many products we've seen, a lot more marketing than actual useful integration in the real life, that will make apple's attempt to turn this into sales a real struggle. >> that's the key here. you have to have the latest and greatest hardware in order to even use all those features they're talking about. i'll tell you a story. i bought a mac book in the fall of 2021. it will be able to get all those

features. a year later i bought a new iphone, the iphone 14 pro, it will not. if i'm excited, if i want to use all these a.i. features, i got to go -- right no go out and why a 15 pro or wait for the 16 and buy that. the question is, is it just going to be nerds like me going out and buying it or will normal people see what we saw and say, oh, my goodness, i need that. oh, my goodness, i'm on iphone 12 and i need to upgrade. >> you sounded modestly underwhelmed. is there something you wished had happened today that you were happening that didn't? >> it's difficult for apple. you have a billion plus people using these iphones. you can't put too much technology into them right away. you're going to risk alienating your core user base. this is cutting edge technology. you have to jump in slowly but show you're serious. i would have liked to have seen a little more risk from apple. some of the things i liked. they're going to allow you to

make images of people in your contacts. that could be wrong but they're going ahead and doing it. i would have liked to see more vision setting, maybe bringing altman on stage. he's there in the audience. why don't you have him talk about how you're going to co-develop -- >> does that really matter if he's his aura and company are actually in the devices themselves, so to speak? >> i would say so because this is a vision-setting event. this opens up apple's devices to be able to be able to pipe in the latest iterations of generative a.i. and also silicon valley is betting within the next 18 months that we're going to see a step change improvement over what we have now. so, you bring sam altman not because you're doing the partnership but because he got everybody on board with chatgpt in the first place. he's going to signal to everybody watching this event that apple is not going to be the one that's going to wait and watch.

this is the moment. with that being said, i don't think it killed the event. i would say modestly underwhelmed is probably how i feel. then again, we have a lot of runway to go. there's a lot of room room for this to develop. >> shares have been on the move as you and i know over the last month, last three months. they're modestly positive on the year, so they had already moved up in anticipation of what might happen here today. as a shareholder, what's your takeaway? >> so far this looks like the buy the rumor, sell the news kind of momentum. for the last month i think shares have gained 5%. that was basically all the bread crumbs apple had beenteasing out everywhere on the internet, telling people what's to come. folks buying into that and buying those rumors. today maybe we see folks selling the news. i think similar to what you started talking about, this is great for apple to say to the world, we are here now. we have answered the call. you guys have been asking us for

a year. what are you going to do, too? this just gets them into the discussion now. there is definitely a lot more to be done. i think they have shown they're hearing you and partnering with chachlt gpt and others who are their competitors in the other spaces, the other mega cap techs that apple competes against. they are partnering with those companies rather than waiting until they developed their own llm internally to enter great into ios 20 or 21, whatever iteration it is. i think that is enough to say, we take this seriously. tim cook probably saw what happened at google and said, i don't want any of that. i don't want folks doubting our ability to stay at the forefront. they answered that question. i do see a path to monetizing apple intelligence and making it so sticky and so prevalent in my life that i'm willing to pay for

a monthly subscription, which goes to the bottom line of services revenue going forward. >> what's your takeaway? >> similarly, i think investors aren't necessarily wowed by these announcements today from wwdc. i think a lot of it was expected. and i agree that a lot of the changes that are going to occur will be gradual. you know, requires a lot of consumer behavioral change in terms of how they're using their phone and what use cases are available to them. i think it's going to take a while. i think investors were wanting more of a reason to upgrade. it's been difficult to see those numbers increase in terms of how many iphones continue to be iphone 12 or older. i think it's over 40% now. so investors want to see people upgrading so the average sales growth of the iphone ticks up a little bit. i think people were hoping a.i. would provide that.

>> it's going to give, to some degree, ease of use for some who can utilize these new features and an enhancement of the user experience as well. that's really what they're betting on. the new features will enhance the features so much that you'll want to upgrade to a new phone, 15 pro or higher. >> exactly. that is exactly the thing they're doing here. we're talking about catch-up, talking about under whelming. the stock price is reflecting that as well. the other thing is they're trying to differentiate themselves with the privacy angle. they started off before they went through the features, the apple execs went over how it's more private. they say there are guarantees anything we do send to the cloud will remain private. we won't even know it's your data. maybe some people are waiting for that. maybe some people are worried about using other competing a.i. products because they don't want their data trained on stuff.

i don't know if that's true or a significant amount of people, but that does seem to be one of the key selling points saying, hey, this is how we're different. again, to use tim cook's new words, breaking new ground in artificial intelligence. we have not seen that from the competition. if you're worried about using that data or to train a.i., here you go, that's your option. >> that was one of the first things you said when we sat down, the privacy angle is the differentiator in and of itself in a world where we're hearing all sorts of issues around lack thereof. here they have a way to enhance that. >> or just what we've seen, legal action we've seen, the scarlett johansson situation with openai. we've seen "the new york times" sue openai and microsoft. it seems apple is taking a much different approach from those copyright issues, from those privacy issues and highlighting that as a key feature why you should be using this instead of a competitor. >> i thought it was interesting, the pricing model, which is no

price, it's free. if you have an open -- a chatgpt account already, you can integrate it here. if you don't, as long as you have an apple account, you're good. you can upgrade to the new operating system come the fall. you'll get all of these features at no additional cost. >> if you have the newest phone. >> of course, if you upgrade to the phone. >> it's the entire phone. by the way, that's what i liked about today. it's not just a side feature. it is the operating system. they want you to operate the iphone with your voice. there was a moment in the presentation, kind of one of the funnier moments but one i enjoyed where it's like, text my wife -- no, play the podcast my wife sent me last week. this is a real world interaction a lot of people have. you spend hours, where's that podcast? by making this free, they say this device will be an a.i. device at its core. if you're going to buy the new device, you'll get that. they baked it deeply into the

operating system and i view that as a positive. >> we're also sitting here on a day where we could get a new closing high on the nasdaq, poired by what nvidia has done lately. apple, too. i said at the outset in the first question to you, apple shares have gotten off the map. they have woken up after a long sideways move. how do you feel this going forward in terms of the tech trade overall and two stocks that have primarily powered it? >> yeah, i'm concerned we'll see giveback not only today but going forward with apple shares now that we've actually gotten the news. you heard basically all of us are not super thrilled and out beating the drum saying, this is the moment for apple. i'm concerned that they're going to continue to fall behind. i think there will be give back in what they've actually seen as the run up into this event. i think that beyond the next two quarters, we will see some upgrading in the next iphone cycle and we'll see some

upgrading throughout the rest of the year into the holiday season, but beyond that, i'm concerned about what apple can actually do to excite shareholders and make sure this name remains a must hold in all of our portfolios. today it's still a must hold. powering the mega caps along with nvidia, but once upon a time, disney was a must hold. at&t was a must hold. cisco was even the biggest, baddest must hold in any portfolio. and right now apple is in danger of becoming forgotten about tech leader in the same way. i just really want to see them pivot away from we're just focused on these pieces of hardware you already know and love. and giving us something we can hang our hats on as shareholders to say, that's what's going to power apple into dominance for the next five to ten years. you heard me make the case before about how pushing the envelope with apple financial, a place they spent a ton of money and manpower developing is the next frontier for apple, in my

opinion. they also have the opportunity in health care. they turned their back on automotive. there aren't a lot of places to go to make an impactful move to the refuse new mix but something has to happen before we say, another quarter of declining quarter of revenue from iphone sales, i'll move on to the other -- crowdstrike, for example, becomes the next -- >> alex, the forgotten about tech leader, as malcolm just said, that's what this company has been reduced to? they would certainly argue otherwise and suggest that what happened not too far from here within this complex today certainly flies in the face of that kind of commentary. >> absolutely. i hear what malcolm is saying. apple turned in five of the last six quarters negative revenue. that matters. they have slowdowns in china they're still trying to overcome. this is a potential computing shift they have to navigate. when you look at the amazons or

microsofts or even the googles, they have the a.i. they can sell to others through their platform. nvidia, they have the chips and software to train these models they can sell to others. apple is making the biggest bet that a.i. is going to be relevant to consumers. it's unproven at this point. if it nails it, that's going to solidify its lead in the smartphone market and we won't be talking five or six quarters of revenue decline. there was a lot of covid upgrades so it has tough comps. i think apple putting all the stakes on this moment makes a lot of sense. if they can nail it, the upside is, i wouldn't say unlimited but it's way up there. if they can't nail it, the concerns that malcolm is talking about, they materialize. >> and you know the history, steve, better than anybody, for a company that is never first, but they are usually better once they finally figure it out and they're hoping this is going to be another iteration of that.

>> right now we have what they say it's going to be able to do. it's going to take a few more months to get their hands on it, to evaluate and test it to make sure it lives up to that promise. if you're in malcolm's camp, what's on the calendar for the rest of the year for apple? this was the catalyst moment folks were looking for, hoping to be blown away by artificial intelligence announcement. it appears they're not. what's next? the new iphone. perhaps that has some extra artificial intelligence features that weren't shown off here. maybe they'll say, hey, we got some really exclusive, mazing stuff that's only going to be available in the new model, the 16. and beyond that there's not much more going on. the vision pro is opening up to other countries. that's not a big seller. there's not much left on the calendar this year if you're trying to hang your hat on, it's coming. this was it. this is today. >> i'll give you the last word.

>> thanks, scott. in terms of apple we still have the $110 billion share repurchase that is going on with apple. i think that could keep the stock at least neutral for the rest of the year. we do have that september iphone event that i think will be a catalyst for the name. it's tough to fight against apple, but growth has been slowing and the valuation is a little high. having a little retrenchment might not be a bad idea. >> we will leave it there. shiz just shy of $194. it's been fun. thank you. we'll you see you again soon. we have breaking news out of the fda on eli lilly's alzheimer's drugs. >> fda advisers just now voting unanimously that eli lilly's alzheimer's drug is effective for early alzheimer's disease. there was a lot of talk about who should benefit from this

drug. eli lilly used some specific brain imaging to determine how severe patients were in their disease. fda advisers saying they support broad use of this drug for early disease and that requiring that specific imaging could actually limit who could benefit from this drug. there's another vote coming up on the safety of this drug. we'll tune into that and we'll be back with more on that. scott? >> you let us know. let's send it now to seema mody for a look at the biggest names moving into the close. seema? >> less than 40 minutes, a ruling in a california appeals court is sending some gig stocks lower. uber, lyft and doordash all in the red after uber and postmates lost their challenge to the state's gig worker law. spokesperson telling cnbc the decision does not change the status of drivers due to california's prop '22 law.

you'll see lyft down. shares of southwest climbing as elliott management takes a $1.9 billion stake. elliott will push for leadership changes at the carrier, including the outster of ceo and chairman. the airline has lagged in the past year, down 2% but up 7.5% right now, scott. >> seema, thanks. we're just getting started from apple park. up next, more from the developers conference. star analyst dan ives told you what he hoped would happen going into today's big event. now he is back to tell us what he thinks about what actually did happen. we'll talk to him in just a moment. later, new york life investments lauren goodwin for what she's forecasting for stocks ahead of the fed decision. the cpi report is looming large as well. we are live in cupertino and you're watching "closing bell" on cnbc.

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we're back at apple park in cupertino. revealing its highly anticipated partnership with openai at the developers conference. the reaction to that and other key announcements today. let's bring in wedbush analyst dan ives. you said going in that this was one of the most important moments in the history of this company, perhaps one of the top three moments. did it live up to the hype? >> i think it was a home run. ultimately, they delivered on every item they needed to in terms of openai, in terms of the privacy, and really essentially what they're doing is they're laying out the stack for developers. the only way they are going to tap into that data is going through apple. to me, this is the start of what's going to be an a.i. driven, i think supercycle, from 16 to 17, most importantly, services. i think this is going to be a game changer from the services perspective. >> by the way, here's the note.

you published literally a new note before you sat down with us. maybe a lot of it was locked and loaded and ready to go. you call it a game-changer. you say that the company is not getting any credit for its a.i. monetization. isn't that rightfully so? isn't this a bit of a show-me story? >> apple's been there before from a show-me perspective. you have of 1.5 billion iphones have not upgraded in four years. pent-up demand is there. now they're laying the yellow brick road to monetization to a.i. we could talk jensen, nvidia, microsoft and everything we see in this 1995 a.i. moment. but from a consumer perspective, 25% of the world, in our opinion, when they access a.i., it's going to be to an apple device. >> let me ask you this.

why has the upgrade cycle been so slow? you highlight what you call pent-up demand. we could have said, perhaps, a year ago there's pent-up demand. the new phone did not lead to a tremendous supercycle, as you suggested. why? >> the products were too good. the battery technology has just gotten better. if you look at -- especially in china, you really haven't seen many upgrades there for the last two, three years. and from a hardware perspective, the innovations really hasn't been there. it's been that catalyst. now the catalyst are really going to be on the software, the chip, the lm. essentially what cook did, this is our castle, the apple castle. the data is not leaving. if you're a developer, you want access to it, you have to come to cupertino and apple park. if not, you're not going to be there. there's 2.2 billion reasons ios devices why i believe it's so important. >> why do you think the stock is doing what it's doing today and is it as simple as saying, well,

it ran up into the announcement, but i want to hear it in your own words as to why you think whatever the stock performance reflects, if anything, in one moment did not make a full story for sure but there's not a flying off the chart movement in the stock to suggest the optimism you articulate in your seat. >> i think the knee-jerk, there was no wow in itself in terms of an actual use case that they talked about that i think the average investor -- >> you painted a whole wow thing and now you're saying -- >> wow individually. when you look overall at the presentation, i thought it was ahead of expectations relative to what they laid out. and i think a lot of times at apple events -- i remember iphone 6, i could go through many events, you came out here being investors are not -- they're disappointed. all of a sudden you had 500 billion go to 3 trillion. i think in the apple story, investors are glass half empty

but i think we sit here 6, 12 months from now this will be an historical moment for apple. >> when do we get the first indications of what this means? do we have to wait deep into the fall, early winter? a lot of this won't be available for upgrade until the fall. >> i think it starts with traction that us and others do. do you see tick come from the asia supply chain, 3%, 5% gloet for iphone 16. then you start to layer on an upgrade cycle. that's really important. that's what apple sees from a demand perspective. i think it comes down to china. we believe june's last neglect ty growth quarter, this will be a catalyst, and the biggest issue with a.i., it's about privacy. this is the flex of muscles for cook and i think lay it out perfectly. i also think openai is a get up popcorn moment. there will be a lot more with altman being here. >> you think the worst is behind this company in terms of china? we just showed the pie chart

where i think it's at 18% of the revenue comes from the china region. >> i think worse is in the rearview mirror for china. i think -- you clearly have headwinds in china given the geopolitical. we believe the worst is in rearview mirror. bottom is in from china perspective. we get through one tough quarter, june, and i think this stock makes all-time highs. >> $275 is the price target. it looks like it's been on the march and wants to hit 200 bucks. that may be some level of resistance. who knows what the market itself is going to do from here. you're comfortable with your 12-month price target of $275? >> i think it could be conservative, relative to where we see the story heading. i view it relative to where i saw meta 18 months ago, where everyone was negative. this event, we look back t will be a top three or top four moment for apple. >> we shall see. dan ives, thank you for being with us today on both sides of

this big announcement from apple. up next, we're navigating the tech trade. talk about the nasdaq possibly hitting a new high. we'll flag the big buying opportunities and we'll talk many more stocks than just apple in that space. we'll see if we get that record close. at morgan stanley, old school hard work meets bold new thinking. to help you see untapped possibilities and relentlessly work with you to make them real.

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welcome back to apple park in cupertino. another record close of the nasdaq within reach. a handful of points away from setting another milestone. micron helping. for how he's trading the space, chief strategist king joins us. powered predominantly by a couple of names lately. how does the tech trade overall look to you? >> hi, scott. last earnings season, tech sector, 89% of companies reporting above estimates. valuationless remain fair. more the most part, we're seeing timeliness. we see no signs of the tech sector weak. ing. >> are we going to have to wait until we get earnings in july to really assess the durability of

this trade? is that the new sort of mode we're in because we're hanging on every earnings report, theoretically, from the likes of nvidia to justify what the stock price has done and the justification, so we have to wait for the catalyst of earnings to figure out whether these movements are justified or not. >> i do think we'll have some clues on how the tech sector is doing. i do think there's other plays here. there's other companies like qualcomm, for example, that haven't had a lot of media attention on a.i. but despite that, it's one of the few companies that have a partnership with microsoft right now in terms of powering their sort of co-pilot technologies. i do think we'll have some clues here and there about how the overall trade is doing. >> it's funny. i'm looking at a qualcomm chart. you can see the dramatic move

from lower left to upper right. it makes me wonder about some of the stocks that have gotten the so-called a.i. halo effect but the jury is still out as to how we should really view these names. we've seen some names in software, for example, that have pulled back dramatically because maybe they got ahead of themselves and we're giving a little too much benefit and credit because of a.i. what's the danger here, if any? >> i think the biggest danger is enterprise spending and whether cloud spending, for example, gets sort of pushed out because enterprises are focusing more on a.i. spending so getting that crowding out effect. that could potentially happen. that being said, the overall aggregate spending on technology continues to be extremely strong. for that reason, i think you know where to put your names. >>. >> would you buy a software

stock that has nothing to do with a.i.? >> i think you'd be hard pressed to find a company these days, i'm not talking about how a.i. is somehow influencing their business. would we buy one, sure. it's going to get very difficult for us to find any company that's not going to hang some of their future optimism on a.i. >> whether that optimism, though, turns into real profits is where i'm going. the premise of my question is that everybody is suggestive that a.i. is going to be some level of transformative for their own businesses. >> they're going to find out who the real winners are. the top tier winners. a lot of stocks have gotten a lift as though they are just that. some will not end up being that. >> i do think from that perspective, sticking with the majors, the mega caps is really

where the play is. once you're looking at smaller cap names and midcap names, it's going to be hard to find winners versus losers. i think that's the reason why, despite all this talk about how small caps rebounded from 2024, we haven't seen that yet. it's the smaller players that will be more uncertain in terms of their success. you've had a chance as a shareholder to digest what's happened behind me here. what do you think? >> what we are most impressed with coming to the end of the presentation, the one thing that caught me about what apple's a.i. strategy is what they said at the end. a.i. for the rest of us. a lot of us, what is apple strategy in terms of a.i.? it's to humanize a.i. it's something the company is extremely gifted at. it's a focus on usability and

privacy. i think that's where the company has an edge. >> we're going to leave it there. i appreciate you joining me on this big day out here in cupertino, california. up next, we track the biggest movers as we head into the close on this day. see if we can set some more records. seema mody is standing by. >> a big deal in the energy space and a warning from a key regional bank. we'll have those stories on the other side of the break. [thunder rumbles] ♪ ♪

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a little more than 15 minutes to go before the closing bell. let's get to seema for the key stocks she's seeing. >> shares of diamond offshore drilling and noble trading higher as noble announces a deal to buy its smaller rival for $1.6 billion in stock and cash. it's the latest merger in a sector that's been undergoing massive consolidation. there's huntington bank shares sliding after the regional bank lowered its full-year guidance. huntington now sees net interest income dropping as much as 24%. that stock down 26%. that's weighing on other regional banks including triumph, independent and valley national. scott? >> seema mody, thanks for that. still ahead, your big fed setup. new york life investments lauren

goodwin is back with us to tell us why she thinks the fed is, quote, on a tight rope and how she's predicting stocks could react to wednesday's big decision. that's coming right up.

a quick programming note for you. please don't miss brad gerstner tomorrow from "the halftime report." we'll get his big takeaway from the wwdc. up next, new york life investment's lauren goodwin joins me to break down the final moments of this trading day. that and more next.

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we're doing a remote market zone today on "closing bell" live here, apple park, cupertino, california. our cnbc senior markets commentator mike santoli and lauren goodwin here to break down crucial moments of the trade. it's great to see you both. a day in which we could actually get yet another, mike, closing high, another new closing high on the s&p 500. >> yes. it could be close but we are in grind mode. this is a kind of low momentum market that does just enough to keep an upward bias. i'm looking today, 1330 stocks up on the new york stock exchange. new highs and lows, almost even. just enough on the larger cap stocks and then a little laggards working. the market doesn't allow any

part of itself to stray too far from the path because we have this calm at the index level, this sense of macro stability, at the moment, and earnings are good enough but then it's about, where are we going to get the incremental catalyst and conviction to move further? we're lacking at the moment. >> unless, lauren, this is the week in which we do because it's the fed meeting and the cpi report on the same day of the decision. is that the long-awaited catalyst that, perhaps, mike is alluding to? >> look, i think that we're likely to see from the fed and inflation on wednesday is just more of the same. data has been reasonably strong. that's one of the reasons why the market has been able to look through challenges or even more hawkish messages from the fed over the last couple of weeks. even if the more hawkish scenario of the fed from pricing in one cut rather than three for the rest of the year, i fade that news. i expect the market can look

through that type of thread because both the risks of overheating and the risks of imminent slowdown are not so much on the radar. >> mike, i don't know, maybe more of the same means tech continues to lead. is that more of the same as well as we see the nasdaq maybe fall short of a new closing high? today we're in sight. it's close because nvidia has been doing quite well. apple has, too. this has been the space to be in yet again. >> it has been or at least enough within tech that's been working that has carried the weight. nvidia has been the key swing factor. when you're trading around the flat line all day, that's the one that jumps around and makes the difference between a red and green day. we're talking about measuring things in pretty small increments right now. i think that's fine. in terms of the fed and how it relates to tech, i think yields are in an acceptable zone for almost anything right now.

you don't want to see them go back to the highs too quick on the ten-year necessarily. we don't need a lot of help on that front because the economy's okay. i do wonder how long the leash is in terms of the market relative to the fed's patience. at some point if the fed keeps rolling forward this idea that they'll have the clearance to cut rates at some point, the market's going to get a little bit antsy about the fact that you have some slowdown fears, even if they're exaggerated, even if it's not a real growth scare. i do think that you can have these bouts that, oh, no, the fed has it wrong and then you may get an excuse for a selloff. for that matter, if we get a tame inflation number on wednesday, that's going to be seen as a green light. >> bear with me a moment. i have more blackie ing breakin regarding the fda and eli lilly. angelica back with an update. >> yeah, scott, the fda advisers are voting unanimously that eli lilly's alzheimer's drugs, the

benefits outweigh the risk. that drug slowed the progression by 29% in a phase 3 trial but did come with the risk of side effects that include brain swelling and bleeding. those side effects can be deadly. the advisers today saying they feel like the benefits outweigh those risks and that these risks can be managed with close monitoring. they're talking now about those decisions. we'll tune in and we'll be back with anything else we hear out of that. scott? >> i appreciate that very much. thank you for the update. angelica. back to the conversation we were having, where mike left off, the idea of the market, its patience or lack thereof, when it might become lack thereafoff before t first rate cut? >> i think mike is exactly right. the type rote they had been on is they're relatively resilient. we are seeing some signs that the last two years of the economic environment, including

the inverted yield curve are weighing on banks lending, on the economy. the question for investors becomes, at what point does the policy mistake of potential overheating keep rates tight to avoid that become the potential policy mistake of a prolonged slowdown? it is our expectation that this goldilocks period of stability, even a little bit of boredom of investors is likely to turn into a slowdown. challenge for investors, the labor market doesn't turn until the very end of that. i don't expect we'll see a definitive recession signal until unemployment claims pick up. >> for the two-minute warning as we approach the close here and what looks to be another record closing high, mike, for the s&p 500. 5360 is where we are now. 5354, the old level to watch. we're nicely above it as we approach the close here. we're talking about the patience of the market. absent a spike in yields, which is really what you were talking about earlier, is that where the

patience is going to be reflected, if we have another spike in yields? >> i think that would be most immediate, yes. that seems to be the pressure point. again, it doesn't have to be at some magic level. we don't have to have bonds rally. we were recently in the 460s. market had a little wobble. we have a lot more treasury supply again this week. it seems like we're absorbing it okay. i think we're alert to all those risks. i think the issue is much more about, okay, presuming the fed comes out and they cut from three projected cuts this year to two, that's pretty much what everybody expects. that's not a big deal unless, again, if lauren says the data starts to come in in a way that makes you feel they'll be a little later, slow to react to signs of a slowdown. they use the unemployment rate in their projection. the unemployment rate has been migrating higher. if they care about the unemployment rate, that might

kind of cover the market in terms of those risks. >> i will see both of you guys in san francisco tomorrow at 1 market. it's a big day in what is a big week. some call it an historic day in apple park. i'll send it to "overtime" with morgan and dom. as aid pivotal week for the market gets under way. that is the scorecard on wall street. welcome to "closing bell: overtime." i'm jon fortt with morgan brennan. apple unveiling long-awaited deeper push into a.i., calls apple intelligence along with a partnership with open a.i. we have a great lineup of experts and shareholders to weigh in on all of today's announcements. >> plus an fda advisory panel meeting this afternoon to discuss the safety and