in the household. woodson. come on. let's talk. >> raiders black. it's the best. >> the husband's from los angeles so we're the raiders. that's how we get to the fandom. >> boris slosburg, thank you very much. go 49ers. that's all i'm saying. >> dom, thank you for being here. "closing bell" starts right now. welcome to "closing bell," i'm scott wapner live from post nine at the new york stock exchange. this make or break hour begins with high anxiety over tomorrow's jobs report and what it could mean to this market. we'll ask our experts over this final stretch. take a look at the scorecard with 60 minutes to go in regulation. pretty tough day throughout. i mean, mostly red, though. there's some buying on the nasdaq as we come on with you right now. that's following a weaker than expected adp employment report, not always a preview of the official jobs print but nonetheless, adding to concerns over the strength of the economy. most sectors today have been

lower throughout the week. you got a few that are positive now. health care under some pressure. tech's trying to get something going, as i've said. been a little difficult. we'll see what this final stretch holds, though. it does take us to our talk of the stape. still is a bull market. let's ask liz ann saunders. nice to see you. >> thanks for having me. >> still a bull market, but man, it doesn't feel like one these last few days. >> it's a bull market at the index level, although you did have a correction in the nasdaq, but using the nasdaq as an example, even at the all-time high, you had more than 40% of the stocks within the nasdaq or the average member maximum drawdown was 40%. right now, it's even 18% for the s&p 500, so there's been a lot of weakness and churn and rotation under the surface. it's just masked by the cap weighted index returns, so we

have had bear market level declines, and that, in turn, i think, was the set-up for some of the broadening out that we have seen and the fact that there was money that wanted to take advantage of some of that weakness under the surface. so, there's a lot more to this story than just what you see at the index level. >> when people ask you what's going on here, what your view of the market is in the here and now, how are you answering that question? >> well, it depends on what you mean by the market. i think there's broadening out has legs. the -- notwithstanding a day like today where the growth trio of sectors, consumer depreciation, communication services, and tech are doing well again. you do see a little bit of that exhaustion in that mega cap tech trade and the broadening out with equal weight trading at an all-time high. more action down the cap spectrum. what we are saying, though, to investors, is you want to make sure you don't have similar concentration to what exists in the index.

you don't need to, to perform well. i think that's one of the biggest misperceptions out there is that for the individual investor, the only way for them to perform well is to be in those mega cap names in size. that's more of an institutional problem that may be running a fund benchmark to these cap weighted indexes. it's not the case for individual investors. of the top ten best. >> performing stocks in the s&p, none are in the magnificent seven. there are a lot of opportunities. what we are saying, though, looking for those opportunities outside of that small handful of mega cap names, you want to stay up in quality. that may see like the ultimate duh statement, but there are times where you want to go down the quality spectrum, leveraging and upturn in the economy. we clearly don't think that's where we are in the cycle, so staying up in quality with profitability and return on equity and cash flow, that's how we've been telling investors to navigate this unique market. >> let's be clear here.

when you say this broadening has legs, then, clearly, you must think that this is a growth scare, not a growth problem. >> right now, it is a growth scare. i don't think a traditional mber declared recession seems to be in the cards. that said, you and i have talked about it on this program many times. we have had these rolling recessions going back to the early part of the pandemic where you had recessions, maybe haven't even clawed yourself out in areas like certain segments of manufacturing and housing and housing-related in some consumer-oriented products. you just had the later offsetting strength on the services side. we saw some hope that manufacturing was going to pull itself out of its using the ism index, you know, sub-50 readings. that was false lived. that ticked back down again. but we still have the offsetting strength on services. so, it looks like we may still have this roll-through scenario where you've got that offset on

services that keeps the mber from, you know, kind of waving the flag and saying, traditional recession. but the economy is slowing here, and the labor market really holds the key as to further slowing, especially through the confidence channels into the consumption side of the economy. i think that the hold-up in consumption is not about savings or the savings rate, excess savings is largely worn down. the savings rate is under 3% right now. it's that confidence in the labor market. if we see more than just the cracks we've started to see, i think that could feed itself into weakness on the consumption side of the economy, which has been hanging in there. >> but if your sector rankings have financials, energy, and materials at the very top, that would suggest to me that you think this, too, shall pass and that we'll get through whatever, you know, lumpy period we have in the labor market, and we'll come out on the other side, positively, in part because the fed is bringing rates down. >> yeah. that's exactly it.

it does not assume a recession in the near term, and it is also based on easier fed policy to come. that more cyclical interest rate sensitive bias and that's been to a large degree where leadership has been since the fed started telegraphing the shift to easier monetary policy. we're in the 25 basis point camp, not the 50 basis point camp, and quite frankly, be careful what you wish for. if you're hoping for a more aggressive fed. because it probably means they're combatting much more serious weakness in the economy, which would suggest more defensive leadership, not the kind of cyclical interest rate-sensitive leadership that's embedded in our current sector recommendations, but i would also say, we are still have more of an emphasis on factor leadership than we to on sector leadership. we think that's where there has been and will continue to be more consistency in terms of leadership. >> yeah. forgive me for jumping in there. you suggest that equity investors should hope the fed is eyeing the escalator, not the

elevator. 25, better than 50. 50 would signal something maybe is up, something's wrong? >> if you look at the history of shifts from pause mode to cutting mode, there's a lot of different scenarios in terms of how the market behaved, but one clear distinction is fast cutting cycles versus slow cutting cycles. fast-cutting, elevator down, they're dramatically or rapidly cutting interest rates, ostensibly because they're combatting a recession or a financial crisis or some combination thereof, versus slower cycles where it's more escalator down. the big differential is the average maximum drawdown within the first year after the initial cuts. it's about twice as much of a maximum drawdown in those fast-cutting cycles as it is relative to the slow-cutting cycles, hence the reason why we think if you want to cheer for a fed that does the opposite of what they did when they were

hiking, they clearly took the elevator up, not the escalator up, and i think for this -- at this point, they're eyeing the escalator on the way down, and i think that's a better backdrop for the equity market. >> you don't think the fed's too late? do you worry about that, that they're too late already? that they should have started in july? >> isn't that the -- >> i'm sorry, go ahead. >> counterfactual. you could argue that real rates are high and therefore the fed maybe waited a bit too long, but if they're true to their data dependency and their word around inflation getting to their target, starting to cut in july would have gone against both sides of their mandate, and the emphasis on inflation getting to their target and in a backdrop where you didn't see more than just some cracks in the labor market, and you still had inflation running above the target, and cutting in july would have been a bit of surprise relative to what they had been telegraphing and relative to market expectations. it's not the fed's m.o., at least in this cycle, to go

against embedded market expectations. so -- but, you know, could we armchair quarterback this and look back and say they should have, could have, would have? who knows? i don't tend to be a critic of fed policy. it is what it is. the data dependency approach, though, suggested that they didn't view july to be a period where they had a green light. >> well, football starts tonight, so we can armchair quarterback everything from here forward. i think we're going to do that anyway. liz ann, let's bring in joe and max. good to have you guys with me as well. what's going on in the market, joe? >> so, i think we're in a situation -- and i agree with liz, you can't quarterback what the federal reserve has or hasn't done. but i think we're experiencing elevated volatility because, in fact, the eye, meaning the market, is quicker than the hand, being the fed. it's a similar circumstance to april of 2022. if you remember, at that point,

you had treasury yields that rallied 70 basis points during the month of april, and the s&p fell from 4,600 to 3,900. why? because the hand was not moving as quick as the eye. the market at that point wanted the federal reserve to go faster, and we had an inflation reading during that month where cpi jumped from 7.9 to 8.5, and i think the direction of the ecodata today is the reasoning why the market is moving in the direction for treasury yields that it is. it's concerned not about the data itself, but it's concerned about the direction, and the uncomfortable place is the tony pasquarelo place. you have to wait until you get another 25 basis points if the ecodata is not good. i don't think it makes a difference, 25 or 50, but for the market sentiment, i think 50 is better, because it allows the clarity to be put in place for monetary policy, and it allows

for what we get the visibility of earnings in october to shine most importantly. >> yeah. max, you have been really bullish, and you have, you know, you haven't been shy about your views the last few times that we have been on. are you wavering on that? >> no, not at all. i think what we have at the moment is this kind of temporary growth scare. i wouldn't call it, really, sort of throwing in the towel. look at, for example, today's adp data. you have the feeling they're down 100,000, not up 100,000. so, yeah, we are getting these headlines. yeah, it's wavering and the labor market is showing those cracks but at the end of the day, it's still looking like slightly decelerating growth rates on the labor market side, whereas, you know, on the overall growth side, when we look at the higher frequency data in particular in the u.s., it's still looking broadly okay, so look at the dallas fed's weekly activity index. it's still looking broadly okay if, in fact, it's been picking up in the last couple of weeks.

so, still nothing really where i would be super, super concerned. i would say, you know, we're talking so much about the fed potentially being behind the curve. i think that's part of it, that really particularly the institutional investor community is so obsessed with, i don't want to be the one who's behind the curve in calling the recession. i don't really care about the fed. i don't care about what's happening on the macro side, but i'm so scared about this recession, i don't want to be the one who's going to be, you know, the last one dancing. i want to be the one who's, like, you know what? i'm going to cut maybe 5% too early, but at least i'm out on time. i think that's where this obsession with the recession is coming from, that there's still this much higher sensitivity with the weaker than expected data, whereas, let's face it, for example, the last three months, retail sales data in the u.s., pretty rock solid, and can you know, the market's not really reacted to that. the cyclical names haven't really reacted to that. think about the leadership that liz was talking about year to

date. you know, we're talking most of the time about tech, about the semis, about a.i., but in reality, semis are up less than 14% year to date. when you look at the s&p, what's up? what are the sectors that have gained the most? it's stuff like utilities. so, clearly, there's been so much pessimism now creeping into the market and into sentiment where i would say, you know what, we are due a bit of a cyclical bounce in terms of the leadership going from here. >> liz ann, i mean, how do you view what's been taking place in tech? i mean, chips have been really weak. they've traded very, very poorly. megacaps haven't done well lately either, even though you suggest that you're a believer in the broadening, is there enough broadening to pick up the slack if you have a prolonged upset in the biggest part of the market? >> i think there is, because there's opportunities even within the growthier sectors like tech or communication services or even consumer discretionary, which is not directly tech-related. that is outside those mega cap

a.i.-driven leadership. i think the fundamental shift that happened occurred somewhat subtly during second quarter earnings season when there was a lot of focus on the timing differential between the investments that have been made and will continue to need to be made in a.i., the capex spend and the revenue generation associated with it, and i think now we're at that time of the year where we're looking ahead to 2025 earnings numbers, and if you look at just the s&p overall, you're actually seeing a huge pickup in growth expectations from around 9% in 2024 to about 15% in 2025. if you look at, say, a group like the magnificent seven, you're going very much in the opposite direction where you're in the 50%-plus growth range in 2024, and you're down into the teens in 2025. so, i think when we're in that season of digesting what is being said during, in this case,

second quarter season but looking ahead into calendar year 2025 to provide that plug for forward earnings, i think there has been an important shift in terms of the underlying fundamentals associated with the denominator and the forward pe. >> joe, these earnings need to hold up. there's questions from adam parker and others that earnings expectations and estimates are too high going forward, and as they come down, the market multiple is going to come down. that 21 times is just too expensive based on earnings expectations that may, in fact, be unrealistic. how do you respond to that? >> i think that's correct. in fact, if you continue to see a ten-year treasury on the retreat, and it looks like it's going to push closer to 3.50 than 4% at this point, then earnings estimates are too high. and i think if there's one thing to the points that liz is making, if there's one thing that we know, it's that investors will chase performance, and i think we came into the third quarter with so

many people having an overwhelming concentration in the direction of mag seven. i would have conversations with people where i would say, what's your portfolio look like? and they would just recite the mag seven and wouldn't have anything else. they say, those stocks are boring, i don't need the other 493. i think we're at an inflection point here. we're sounding the alarm bell. we're saying, yes, you need to have the mag seven in your portfolio. carry them at market weight. i'm fine with that. but let's take a look around at the other 493, because so far, in this quarter, financials are up 9%. you've got technology down 7%. microsoft is struggling so far this quarter. microsoft's down 9%. alphabet's struggling, down about 14%. amazon's down about 9%. so, there are other places in the 493 that i think it's right for investors to look, and they have to lose that recency bias of just chasing the performance in the mag seven. >> i think there are other numbers that are relevant, not seven or 493, but liz ann,

60/40. how are you at schwab thinking about 60/40, the portfolio that most people said was dead now may, in fact, that may have been greatly exaggerated or maybe it was sleeping for a while, but it certainly seems to be awake. >> i think it is awake. i would also say that it's somewhat unrealistic to think about a classic portfolio allocation being limited to 60/40 right now, even for individual investors. the access to other asset classes at a pretty low cost and low minimums means there's very few people that are actually running a 60/40 portfolio. in terms of correlations, we think we're still in a somewhat long-term secular backdrop where bond yields and stock prices are inversely correlated, which means bond prices and stock prices are positively correlated. that's what we've seen a shift short-term, and i think that probably has legs, which is all the more reason why, number one, you might want to consider

active management in addition to passive on both the equity side and fixed income side of things, but the inclusion of other uncorrelated assets to provide that diversification that you might have a more difficult time finding in just a simple 60/40 backdrop, not to mention cash has been a pretty good asset class in terms of finally having come off the zero bound and there is, you know, income and fixed income again, so i wouldn't throw out cash as an important diversifier from an asset class perspective. >> max, do we feel like, at least, the near term direction of this market hinges on what happens tomorrow morning? that bad news is going to be viewed as bad news, that if you get a bad report and we start talking about 50 basis points, that's going to be viewed in a negative way? >> yeah, i agree with that. i think we're no longer in that regime where, you know, bad news is being looked at as good news. i would say, you know, 50 basis points, if we do get 50 basis

points sometime in the next couple meetings, that could be pretty constructive. that could be meaning, hey, look, inflation is going the right way. we're going to cut more aggressively, but we're taking disinflation as the reason. whereas i would believe, if we start with 50, i would cite more with liz on that. if we start with 50 basis points now, it is most likely really down to growth. it's most likely really because, hey, you know what, we're seeing something that you guys are not seeing or it's really, we are more concerned about the growth side of things. that's where i think the market sentiment would take that as pretty negative, so i would really, really prefer if they go 25 the first one or two meetings, and then, after that, maybe they go 50 one meeting because they say inflation is down so much, we can afford to go a bit more aggressively. we can afford to put a deeper floor on the rates. that, i think, would then be

more positive, but you don't want to have it start, and i think tomorrow, absolutely f, i we get a roughly in-line number or slightly higher than expected, i think we're off to the races. it's also energy that's been beaten up, so the materials that can really, really benefit from a bit of, like, you know, let's say, at least those imminent recession concerns being taken off the table for now. >> we'll leave it there. max, thank you. joe, thanks to you. liz ann, we'll see you soon. liz ann sonders of schwab. let's send it to pippa stevens for a look at the biggest names moving into the close. >> shares of g 3 apparel group are on track for the best week in a year. second quarter results beat estimates, though net sales were down compared to the same quarter last year. the company's ceo said despite the uncertain macroenvironment, he's optimistic about the remainder of the year, g-iii announced a new licensing agreement with converse. but hewlett packard enterprise

is slipping. fiscal third quarter results did beat estimates. the company cited accelerating demand for a.i. products, and the stock is on track for its third straight day of losses. >> pippa, thank you. that's pippa stevens. up next, cnbc unveiling its inaugural nfl valuations list. we're going to run through the big winners and losers. i mean, put losers in quotes. still own a franchise worth billions of dollars. plus, we'll hear from l.a. rams president kevin demoff, his team ranked number two. we're back at the new york stock exchange after this break.

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the l.a. rams. we're going to hear, by the way, from rams president kevin demoff in just a moment. that team valued at $8 billion. third place, the new england patriots, almost $8 billion. let's bring in the man behind the valuations list, cnbc senior rep sports reporter. you are known as the guru of all of this. what factored into your rankings? >> sports teams, nfl teams included, scott, are sold on multiples of revenue, so when you're trying to determine the value of an nfl team, look at the commanders. they sold for 11 times revenue. prior to that, the denver broncos sold for about nine times revenue, so you're always looking at revenue comps. >> any surprises? >> what i'm really surprised about, number one, is how far ahead of every other team the dallas cowboys are in sponsorship revenue and in local revenue, revenue generated at the stadium. for example, the cowboys this year are pushing $250 million in stadium sponsorship revenue. no other team has hit

$200 million yet. >> so, stadiums count for a lot. in fact, you say that non-nfl events like the taylor swift concert, for example, factors into all of this, but how do we think of that? a lot of those are one-off events. so, how do you think about that over the longer term when you're coming up with valuations? >> that's a great question. when you look at this, what sports bankers will say is, local revenue, stadium revenue, as opposed to the national tv money, which will be $350 million this year, the local money is really determined by how entrepreneurial your owner is. so, you apply a lower multiple of revenue to that than you would the national money that's split evenly every year, goes up 6, 7, 8%, doesn't matter whether you win, lose, you're in cincinnati or dallas, everybody gets the same amount. >> speaking of dallas, how the cowboys go from losing a million dollars a month to this? >> jerry jones is a marketing genius. he created the economic

blueprint for nfl teams. what he specifically did was he became the first team, scott, to secure big naming rights deals for a stadium. brought in pepsi, brought in american express, very cleverly, by jerry, they're rivals. the rivals of those brands were sponsors for the nfl already, so they really wanted in. >> jerry's world, as we call it down there, has been looking pretty good for him. the chicago bears, number ten. $6.4 billion. how much do great players like caleb williams, expected to be a great player, do you have to have great players to have a great valuation? >> it helps a lot, but again, a lot's determined by the ownership. so, in the case of the jets, they bring in aaron rodgers. he only played four plays last year. hopefully he stays healthy this year, but the jets were able to really market him, get a big boost. >> they sure did. >> ticket revenue, big boost to sponsorships. the bears haven't been that

great at marketing the great brand of the bears, which has a big tradition. >> let me ask you one more question before we bring in our guests. rams, chargers, why are the rams worth so much more than the chargers in the same market? >> kroenke owns the rams and the stadium. the rams get about 85% of the revenue. the chargers on the get about 15%. >> so, the chargers are paying kroenke some lease payments. that helps a lot. mike, great having you here. great to see the list too. mike ozanian joining us. for more on the valuations, go to cnbc.com/sport. now, let's bring in los angeles rams president kevin demoff. rams, number two on our list. it's nice to see you again. welcome. >> we saw you last year in l.a. talking about stan kroenke about sofi stadium and hollywood park and here we are a year later. >> absolutely. you guys have been doing it right. number two on our list. what's your reaction? >> it's great to be number two.

up on the podium. you get a silver medal. but we're closer to 32 than we are to 1, so i would say that's the work ahead of us. >> yeah, so, how have you guys maximized the business around the franchise to get to this level? as we said, there's a lot more than having a wealthy owner and having a stadium. you still got to put all the pieces together. >> look, i think we all will always quibble with mike quietly about the valuations, but he said something that i think is perfectly accurate, which is the entrepreneurial nature of your owner is going to be what drives your local revenue, and i think when stan kroenke envisioned building sofi stadium, hollywood park, reinventing a sports and entertainment district in the heart of los angeles, it was about bringing the world's best sports events to sofi stadium in los angeles. not just nfl football, but super bowl, world cup, fortunate to host the opening ceremonies and swimming in the 2028 olympics, and six nights of taylor swift doesn't hurt. >> well, help us understand that a little bit better. i think most people, when they

talk about nfl football valuations, they only think about the action that actually takes place on the football field. but it's the ability to book many lucrative non-football events that actually puts you towards the top of this list. >> well, i'll give you a great example on someone who's a frequent guest on cnbc, anthony, the sofi ceo. taylor swift shot her movie about the tour over three nights. the amount of visibility that created for so fi as a brand is why sofi pays us a significant amount for naming rights. when you look at our partners, they're not just paying for ten rams games and ten chargers games. they're looking for those extra 25, 30 events a year. our suite holders. we have 270 suites at sofi stadium, the second largest amount in the nfl. those people are looking for revenue and events outside of nfl football to entertain their clients. they know they're getting the nfl. they know they're going to get great games for the two teams. what they're looking for is that

little bit extra to put them over the top, and that's where we can really turn that into a revenue-generating machine to hopefully catch the cowboys. >> i think what's interesting, too, is that you and mr. kroenke are both thinking globally as well. the marketing rights deals that you have in many international markets, including australia, new zealand, china, japan, south korea, and mexico, can you talk to me about the presence you have there and why that matters so much? >> well, i think it matters, you know, first and foremost, for us to grow our brand, grow our game. you sit in leos angeles, one of the largest cities in the world, one of the most multicultural cities in the world. having the pacific rim and mexico is just about marketing locally to the many diverse fans we have here in los angeles, but as you think about kroenke sports and entertainment globally, our five teams, arsenal, english premier league, we think of ourselves as an international brand, an international company, and having rights in those markets allows us to bring the rams, to bring arsenal, to bring the denver nuggets, the colorado

avalanche, to those markets so we can really try to highlight the growth of american and north american sports in those markets, and if the rams can benefit from that, everyone better. >> there's big news in the last couple weeks, the nfl voting to allow private equity investing for the very first time. it's a bit of a toe dip, if you will, because it's fairly limited in size and scope. but is it just that? is it the initial stages of what you think is going to be a much bigger part of the investing landscape in nfl teams in the future? >> well, i think one of the things that mike highlights with the nfl currently in the valuations is, the nfl is a growth business, and you need capital to continue to grow that business in every sense or form, and whether you were just talking about the bears and their stadium push they're looking at. we talked about washington with mike and the stadium push they're looking at. you have 15 to 20 stadiums that are probably on the horizon to be built or have major renovations. when you look at the connectiviinvestments

in flag football, in international, i think that's where the additional investment and capital is going to go to continue to make nfl a growth property across all 32 teams and the league. >> kevin, i appreciate your time so very much today. you guys have a good season, and send stan our regards, would you? >> i'll make sure to do so. thank you very much, scott. >> we'll talk to you soon. that's kevin demoff, los angeles rams. do not miss nfl commissioner roger goodell. he's going to be on "squawk box" tomorrow morning at its 8:00 a.m. eastern time. big game tonight, nfl and peacock starting at 7:00. we can't wait. up next, lo toney is back, where he sees valuations heading from here.

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welcome back. nasdaq, well, it's modestly higher today. some of the mega cap tech stocks are attempting a rebound, tesla, nvidia, apple leading those gains. just clawing back, though, a fr fraction of the losses suffered last week. joining me now, lo toney, welcome back. >> thanks for having me. >> how are you thinking about this space? it's a little dicey, to say the least. >> yeah, you know, i think we're going to see a little more choppiness. there's so much concentration, particularly in the tech sector, some around the general excitement and exuberance around a.i., so there's a lot of concentration in the magnificent

seven, and so the more that we see those stocks have their gyrations, that's going to dramatically impact the overall market, given the concentration there. >> it's tough. we generally don't care so much about crazy growth, and we're willing to pay some big-time multiple for that crazy growth. it seems we're having a hard time deciding what we're willing to pay for still amazing growth, but not quite as crazy as it was. >> yeah, that's right, especially for the near term investor. those that have a shorter look. call it 12 months or so. i think, you know, longer term, again, i always say, we'll often look back on these periods and see that these were tremendous buying opportunities. we've got so much momentum, i think, to look ahead and look forward to, especially given that we're now starting to see the tangible results of those early investments into a.i.,

both on the magnificent seven side and shifting their models to serve their massive customer bases, as well as the actual enterprises that are incorporating a.i. moving from experimentation to actual deployment on the customer-facing side and the operations. >> do you look at these and say, valuations still seem reasonable? >> so, you know, i think, look, as a private market investor, when we look to the public markets, for a little bit of guidance, we do see that exuberance, i think, still holding steady with the magnificent seven, given that those are the most obvious plays for the public investors in the a.i. space and to follow that trend. however, when we start to look a little deeper, what we see in the private markets is that we have had this massive valuation adjustment, which was due, and most industries, with the exception of a.i., especially for the pure play a.i. models. so, you know, look, i think

we're still going to continue to see some exuberance on the public side, but i do think it's important for investors to look beyond the magnificent seven and recognize that trends like a.i. are present in other business models as well. >> well, what is the current state of the private markets, then, in tech? >> yeah, so, in the private markets, we continue to see an emphasis shifting towards profitability, you know, primarily on the defensive end of the spectrum, and on the offensive end of the spectrum, we're seeing a lot of excitement continued around a.i. i would say, in particular, vertical a.i. is going to be a trend to watch, both in the private and the public markets in '25, so this whole concept around taking more specific solutions that have access to data around specific use cases and industries, you know, one of the massive opportunities exists within health care as well as

other opportunities and financial services and legal. >> are we pushing off, though, the run of expected ipos and things like that? the more that we ask questions about the current state of the economy. we hear about pipelines at investment banks being full, and you know, ready to move, but just can't get that push yet. >> yeah, like, as i mentioned, i think we had a conversation at the end of or towards the end of last year. i was excited about an opening for a few companies in '24, but i continue to hold firm that it's going to take to '25, even '26, for us to get back to a nice, steady flow and what i would call a new normal. now, that said, if i look back to the comment on vertical a.i., i think that's one of the places where we're going to see a shorter timeline to either an ipo or massive acquisitions.

you know, when you look at a lot ofthese opportunities with vertical a.i., number one, the market is moving exceptionally fast. i think faster than we even thought it would move 12 months ago. a recent report by bessamer even talked about this phenomenon with vertical a.i., because these markets like health care not only are they massive, probably up to about a $10 trillion opportunity, but they also provide the ability to create a moat. what does that mean? warren buffett used that term, moat, first in business, going back to the medieval days when castles had moats around them. when we look at health care, the benefit it has over a horizontal solution is the proprietary data. because of the concerns around regulatory, privacy, et cetera, there's only going to be a few companies that will have access to that type of data to be able to truly produce a defensible

solution or a solution that has a large moat around it. so, those are the types of opportunities that if i were a public market investor, i would be looking out for, you know, what are companies like oracle doing there? what are some of these other saas players doing that have existing massive customer bases that could make an acquisition of a vertical solution and immediately deploy it and have accretive cash flow? >> lo, i appreciate it always, lo toney joining us once again on "closing bell." speaking of tech, speaking of investment banks, i'm going to have an exclusive interview next wednesday during "halftime" with goldman-sachs' chairman and kre, david solomon. it's from their tech conference. very excited about that. up next, we're tracking the biggest movers as we head into the close. "closing bell" is coming right back.

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got less than 13 minutes to go before the closing bell. let's get back to pippa stevens for th for the stocks that she is watching. >> old dominion is tumbling. the company's president and ceo said the results reflect continued softness in the domestic economy. csx and union pacific are also lower. but airlines are higher, led by

jetblue, which bumped up its capacity and revenue guidance for q3. the carrier is also expecting slightly lower fuel prices and increased bookings for the quarter. that's lifting other airlines, including american, united, and southwest. >> pippa, appreciate that. still ahead, tesla shares charging higher today. we'll tell you what's behind the big bounce when the bell comes back.

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anticipated jobs report. >> still apprehensive, although not really panicking in any stretch of the imagination. i think what's interesting to me is the vix, down a point as people just kind of retreat to neutral corners ahead of this number tomorrow morning. we're still suspect of the perfect seamless soft landing case, but definitely not eliminating that as a possibility. i think the ism services number today acted as a little bit of a comfort that things are still holding together in that regard. i do still think that we are in a world where good economic news is good for the market. it's what investors should be wishing for. once you know the fed's going to cut and they're not trying to undermine the economy, you want the economy to hang in there. it does seem as if we got pretty hedged up the last couple of days. we did a lot of selling. we did a defensive turn in terms of leadership, and maybe that's why the volatility index is just going to hover at 20 as we hang around these levels, which i keep saying take us back to mid-august, when we needed our last bout of reassurance that

the economy was going to be okay. >> phil lebeau, talk to us about tesla and nyo. >> let's start with tesla, scott. late yesterday, on x, elon musk posted that they are getting close to what they believe will be the rollout of full self-driving technology. in july, he said that they're close to full self-driving technology, i should say, in china and europe. we already have it here in north america. if they can get approval from the regulators in those two regions, then you will likely see full self-driving technology being offered to tesla owners sometime in the first quarter of next year. obviously, that would be a benefit to the bottom line of the company. to what extent remains unclear because still unclear how many tesla owners actually have a take rate in terms of saying, yeah, i'll subscribe on a monthly basis. the big event coming up next month, the robo taxi unveil on october 10th, that's really where i think we see some dramatic movement with shares of tesla. nyo is the stock of the day when it comes to the ev business.

the chinese electric vehicle company jumping 14% today. why? it reported a q2 loss that was smaller than expected with revenue jumping 98.9%. that lit a fire under all of the chinese ev stocks today. no surprise, scott, they tend to wid go up a lot or down a lot in unison. >> phil, appreciate that. all right, seema, broadcom is always important, okay? we know that. but even more so now, given what's happened with the chip stocks and especially nvidia. >> exactly. and we're expecting a big move in the stock. options market expecting a 7% move in either direction when the company reports. wall street looking for earnings of $1.20, revenue of $12.9 billion. the biggest focus already a.i. sales projections for this year and next. similar to nvidia, broadcom is anticipating capital spend. that will be big from big tech to remain strong for the foreseeable future. broadcom does specialize in networking equipment and has been working with google and meta on their in-house chips. the stock is trading at 28 times

earnings. shares have sold off, along with the broader semi sector so wait to see if earnings can change that story, scott. >> see you then. seema, thank you so much. mike, i mean, let's see how broadcom trades. pretty interesting tell on the psychology of the market right now. >> and the traders have run hot and cold on whether we're going to really generously capitalize the a.i. business because there's still a lot of legacy, and we went through that cycle with dell. there was a big burst of enthusiasm, it's an a.i. play. then you sold it off because maybe it's still old tech and now, dell participating back again. the reaction is going to be interesting. meantime, the treasury market is definitely pricing in a higher chance of something like a harder landing here. i think you have to observe a 3.72% ten-year treasury yield. i don't think it's decisive or predictive, but that might color how we react to the jobs number tomorrow, whatever it is. so, again, we want good news. we want confirmation that the

labor market's not falling apart, but i do wonder how we're going to read throw that next week or week after next with the fed. >> yeah. all ahead of us. can't wait for that. there's the bell. we'll take us out red. nasdaq is going to eke out a gain, in part because of tesla, some of the other large caps. into overtime. >> that bell marks the end of regulation. kite realty group ringing the closing bell. trader etfs doing the honors at the nasdaq, and we had big swings for the major averages today as investors jockey for position ahead of tomorrow's jobs report and ahead of key earnings hitting this very hour. that is the scorecard on wall street, but winners stay late. i'm jon fortt with morgan brennan. >> we're moments away from the big earnings report of the week. broadcom, which comes after pronounced weakness in the chip space, with the smh etf coming off its worst day in years on tuesday. >> and w