marvel and kla corp. down 3% or more. and nvidia has been since its earnings report is 30% off recent highs. >> a huge reset. >> can we talk about the fact you're wearing packers colors. >> i don't even know when they play. >> tonight. >> that's right. on nbc. >> thank you very much for watching "power lunch." closing bell starts now. thank you so much. welcome to "closing bell." it's make or break, tech wreck. that sector is down 7% this week under pressure yet again today. we'll show you the nasdaq in this final stretch. worst week in about 18 months. chips the foal faux the call point. broadcom is the latest post earnings pummelling almost 10%. and the index that tracks the semispace is down 11%. the weakness not limited there. microsoft is below $3 trillion in market cap. apple is down ahead of its big

event next week. elsewhere a big jump in volatility. the vix is surging. north of 22. yields are going the other way. they are falling. there's the ten-year. and all of that after a weaker than expected jobs report raising more questions about the economy and the fed. it takes us to our talk of the tape. the road ahead for stocks. definitely gotten bumpier. . are there too many potholes to get around. let's ask the managing partner. a cnbc contributor and also here live. welcome back. >> what's going on? >> it's been a rough week. september 1st, we're down 4%. it's actually one of the 5th worst septembers since 1928. so it's pretty bad. i don't think there's actually a lot of fundamental arguments for why stocks are down this much, but think we have pulled for

seasonality. this period last year was really tough. and i wonder if markets are going risk off early. >> you believe in the soft landing story. you said there's no fundamental reason for this. this is a debate over a soft landing versus something verse. markets seem to be tilting towards something worse. you say no. >> the reason i don't think it's something worse, and we don't know, is that the jobs added was better than july. july was the hard landing. it was such a weak number. the unemployment rate fell. we're at a point where the fed could engineer a soft landing and that's why two weeks it's going to be important. >> does it matter to you? >> i think it's going to be how the market interprets either number. there can be such thing as a dovish 50 or a hawkish 50 or a panicked 50. so i think the reality is the

fed is on a cutting cycle. that's really a good catalyst for rotation. interest rates are going to the fall. it's going to help industries like housing, auto, credit cards come out of this recession. i think it's good news when they start. >> what's happening in tech? we said that the nasdaq is down more than 5% this week. we're having the worst week in about 18 months. the tech sector is off more than 7 on the week. what's going on with that trade? >> it's reveal ed its hand. nvidia had a good number, but it fell. when stocks fall on good news, it's a crowded trade or something bad could be coming. then they led the downside this week. i think it is part of this pull for the seasonality. it's a political aspect.

investors will be tough on china, which would be bad. part of this could be fears that a trump gaining is bad for semis. >> maybe too much priced into the stocks at this point. valuations have gotten a little too rich. even if they are the greatest stocks in the world, which you've made the argument that they are, this is the place you want to be. maybe more than any other. i think it's possible. nvidia's last ten years of history, there have been 30% drawdowns. it was higher at the bottom of those drawdowns. nvidia scored in the mid-20s. so to me, this looks like a normal profit taking. maybe it takes it down to the 90s. but two years from now, that's going to be a gift. >> are you a buy er on the dip?

are you urging people to do that? >> we're close to that point because let's say we thought there would be a 7 to 10% drawdown between now and november. we're almost down 5% now. i think next week we could be within that point of where we pulled forward that entire correction into the month of september. i think we're close to the point. i wouldn't be a seller. we're almost there now. >> the move from august 5th to september 5th is justified. was it built on reality? what do you think? >> it's hard to know. i know there was panic that caused that three-day drawdown and the vic spiked a 66. we know there was panic. but we also know there was a ton of cash on the saidlines already

into august that was put to work. i think part of this was a liquidity move because we know the yen was high liquor lated with that move. it's happening again. the yen turned strong and putting pressure on stocks. >> make the case for our viewers that 21 times earnings makes sense for the market. that's the current valuation. everything could be great and that could still be inflated. maybe it's not. make the case. >> there's a couple things for viewers. number one, the s&p is at 21 times, but that's because of the mag 7. the median stock is at 16 times, which is not demanding considering the tenure at 3.7. the tenure is trading at almost a 30 multiple. so when you buy a bond and think that's safe, you're paying 30 pe and you can buy equities for 16 times earnings. i think stocks are a bargain here. especially in a rate-cutting cycle. >> when you say stocks are a bargain, you're talking about the 493? that they are the ones that you

should be buying, even as we're asking ourselves, hey, is the economy a little slower than we think? is the labor market weakening faster than we're willing to believe? >> yes. i would say number one the 493 are attracted because the fed is on an easing cycle. and if you look at something like small caps, the median is ten times earnings. you have a huge margin of safety in small caps. i don't think tech is a sell here, but it probably is a source of funds if people are worried about seasonty. do i think the mag 7 is going to be lower by the end of this year, no, i think it's going to be higher. it's tough to know when the bottom is. >> the problem is tech is to use the word of rick reader, recalibrating, but you don't feel comfortable going into the other areas over the last week because we have questions about the economy. >> yes. >> that's the conundrum for investors. do i buy the dip in tech or is

the rerating going to happen because the growth rates albeit fabulous, are still slower than they were, and then can you really bank on the others if you're asking all these questions about the economy? >> these are fair questions. i know rick is a very studious follower of markets. he's point ed out cred spreads have been really stable and tight. that tell us the growth fears is more of a narrative risk. people who are hard landing folks have some ammunition. but i think the economy is tracking for a soft landing. that means stocks are overreacting to what is seasonality. so ultimately, it's a buying opportunity. >> unless it's priced in. all of the good news is priced in. maybe the market is even ahead of itself on the number of cuts and the totality that we're going to get. how do you respond to that? >> i would say that what you're

describing is a major market top. and i know people are fearful this looks like 2007. but there's two things to keep in mind. the advanced decline line made an all-time high, which means there's very basically sea row probability the index made an all-time high. i'm almost positive the major market top has never happened with small caps trading. >> before i open it up, you went small caps. i want to go small caps. your big call that happened on this show, where small caps go 50% higher. you didn't back down. the back parof this year, which is now we're winding down, could still be robust. >> earnings have been supportive. they grew 19%.

there's such a 40% in q3. that's fundamental acceleration. the pe is forward. once the market is convinced the fed following through on the cuts and they believe we're in a soft landing and next week might give confirmation, i think small caps get the green light. >> let's broaden the conversation out. let's bring in dan greenhouse and courtney garcia. it's great to have you both. you heard the conversation. you get the first crack here. what do you think of what tom said? it doesn't sound too concerned. >> tough look at the data. we have gotten a lot of positive data. unemployment did tick up, but more people are coming into the labor market as oppose d to layoffs happening. that would be a much more negative indication that thicks

are going south. that's not happening. you're seeing inflation going down. the fed is lowering interest rates. the big question is 25 versus 50. but that's pretty certain at this point in time. and all of those things are positive to the markets. it's hard to see a recession with all that backdrop. i agree wefrg tom is saying here. >> you have. positive on the markets. does that make sense? >> i like to make a habit of disagreeing with everything everybody says. tom knows that well. i agree with almost everything he said. >> what is this then in the market? a growth scare? >> my old friend used to say sometimes stocks go up and sometimes stocks go down. we're in one of those periods after a terrific rattle i l certainly after what happened with japan, stocks are correcting somewhat. not unjustifiably so, but i will make a point that tom talked about trump's odds in the polls. on september 15th, the date was

the day that the odds of trump winning the overall election hit its peak. the stock market today on july 16th. we have not made a new high since then. so i'm not making the whole stock market on the whim, but given the tax implications, of unrealize d gains, there's probably something going on in the markets now that does have a political tilt to it. >> we think there's going to be much more volatility if nothing else between now and election day, which is 60 days away. >> we have had a pretty unvolatile year. and especially as you lead up to an election. you can see volatility. we're at that stage in the elections cycle where both candidates are going to have these grand ideas of what they want to do and the changes they want to make, but realistically, that's going to get watered down whoever does get in office, which is why you get volatility with nervousness leading up to the election. regardless of who wins the election, it does tend to be a

good thing for stock markets. if there's volatility, that's a buying opportunity. it's not something you want to get out of. i'm hearing that from clients. you want to use these opportunities as they arise. >> what happens if everything that the three of you say is correct. this is just a growth scare. things are going to be just fine. but the price is still wrong. earnings are not going to be as robust as the market would like to believe. even if we have a soft landing. therefore, the price is wrong. and that's what is being recall blrated as we speak. >> i'm not going to break any news by saying if the price is wrong, stocks go down. what we have been arguing is that the price is right. i was asked the other day about the market incorrectly pricing in a soft landing or something like that. but when you look at the data in front of you, we're getting it. it's happening. unemployment is going up a little bit. some of it is the immigration story. some are losing jobs. wages are coming off the boil.

companies are telling you consumers particularly in the packaged good space have had enough of increased prices. some of the consumer confidence, there's a lot of stuff going on. it's commensurate with a slowdown, often extremely accelerated economy in the back half of last year. i would note for the viewer at home who hears all the time the economy is slowing, the economy slowed in the middle of 2006. stocks went on to make a new high into '07. something happened afterwards, but in the interim stocks went higher. for any of us there, it was a fetphenomenal year. just because the economy slows down doesn't mean the stock market has to necessarily slow down. they don't automatically go together. >> nobody passed out the handbook that says this is step one, two, three of what the soft landing looks and feels like. we're not exactly sure what to make of the softerer report here

and there. we're jumping to conclusions figuring that maybe the soft landing story is in tout. >> that's right. there's soft landing fears. it was below the last cycle peaks. there's a lot of room for credit to expand. and capital spending has been muted. to me, i think the soft landing still has a lot more arguments invesversus the hard landing, w is we have overspent. >> what about the dip idea? you're seeing robust growth. i don't know if it's going to keep up with the underperformers. you brought up small caps. when you look at q3 and 4

earnings. those are going to accelerate a faster pace in some of the other areas of the market. i would say 90% who come to us within the last year are much more over exposed to tech than they realized. and this tech fund, it's all on the same thing. you just want to make sure with new money, make sure you're better diversified. if the reallily broaden, you want to take advantage. >> let me also the say about nvidia and those stocks, what are you supposed to pay for a stock that's growing revenue at 400%, growing net income at multiple. what are you supposed to pay for that? google has some regulatory issues now and apple is an island on to itself, but the rest of those names, microsoft, et cetera, what are you supposed to pay for those stocks? they are supposed to trade at a premium. again, we're not a particularly large tech investor, but when those stocks sell off, you're

going to get 8, 10, 30% drops. it doesn't mean the fundamental story has changed. more importantly, we have all made this point a zillion times. the rest of the market not screamingly unattractive. certainly in an environment where the economy still continues to grow and most importantly we haven't mentioned it once, the fed is about to reduce interest rates for the right reasons hopefully opposed to the wrong reasons. >> what happens if these other tech stocks, though, okay, nvidia, let's say nvidia should be trading where it is. isn't the problem that a lot of the other stocks were given nvidia-like multiples? even greater than that, they were given a narrative the same as nvidia's. and everything got the benefit of the doubt, and now some of them are realizing, oh, you know

what, maybe the growth rates are going to be slower. maybe the ai benefit that a lot of these stocks were getting, department deserve to get as much of a bump as it got. >> flows have a funny way of hitting everybody. they did on the way up. to the point we're discussing, a lot of these names are 30, 40, 50% off their highs. the overall market is 2 or 3% off the high. maybe the overall market is 4 or 5%, the equal weight is off its highs. financials, industrials, real estate, i can go into the details. four or five sectors have been outperforming. there's nothing wrong with that. there's nothing wrong with periods of time we'll call it risk off when the leadership shifts away fromtechnology or cyclicals, at least today, to something a little more defensive. i don't think there's something

wrong with the markets telling you something. we heard the story in the 2010s. there were periods of time in 2015 when defenses start eed to lead and everybody was worried about the market. i don't think there's anything wrong. right now there's a moment in time, sometimes stocks go up, sometimes they go down you're getting a rotation to the other names. and hopefully getting the broadening out that so many talked about. >> that's a good point. we had people come on and we're the broadening. it's too narrow. it's carrying the whole market. the index level, that's the case. then you get the broadening and they are like, i don't like the broadening. it feels too defensive. staples, health care, utilities, those aren't classic risk on in the market feeling. now we have a problem with the broadening. >> i think when you look at the best performers, real estate has been one of those best performers. that's because this is all the

idea that inflation is coming down. the fed is likely going to be lowering interest rates. it's all the sensitive sectors that will be doing better. in that environment, it helps the story of the broadening because those sectors are likely going to outperform if rates come down. so yes, i hear what you're saying. you want to be in a position with that broadening because it's going to be happening. >> it is certainly interest rates. that affects flows. the fundamental story in some parts of the real estate market, take a look at something going on here in the office market that's not interest rates and utilities we talked about consolation energy and some of the fundamental stories. you're 100% right that the money shows have shifted. the it's not just that. there are some stories working. >> leave us with a thought that we can take into the weekend as we head towards next week. >> i would say the thought is next week you are getting a setup for positive catalysts. we have a presidential debate on tuesday night. c ppi wednesday, which i think should confirm inflation is falling like a rock.

and people have to look forward to the following week. i think there are positive catalysts on the right. i wouldn't end too bearish. >> we'll make that the last word. thank you very much. let's get to pippa for a look at the biggest names. >> shares of stock for doc sign are higher after the company's fiscal q2 results beat expectations. the company also highlighted positive customer feedback on its new intelligent agreement management platform. the stock is on track to snap a three-day losing streak. and mobileye following a report that intel is weighing options for its stake in the struggling driving tech company. intel did decline to comment. those shares are now down 60% this year. >> partnippa, thank you.

we're getting news out of washington, d.c. amen has that for us now. >> hey, scott. federal judge just wrapped up a hearing here in the ongoing google antitrust case. he laid out a timeline for when he's going to ultimately decide the fate of google in this ongoing case. now remember, the judge has already decided that google is, in fact, a monopolist. that question is decided in this case. the question here now is what to do about that with the remedy for that. the department of justice has not said yet whether it wants to break up google or some step short of that as part of the remedy in this ongoing case. what the judge just laid out here in the timeline is that he wants the department of justice to indicate at a high level by the end of the year what they want. he said by late fall or early winter, he wants a proposal at a high level from the department of justice about what to do with google. then he wants by the end of the year a detailed proposal from

the department of justice laying out exactly what they think the fate of google should be. there will be a trial period in this. they will bill through the spring. and by august of 2025, the judge said he will be prepared by then to issue his final decision on what happens to google here. we have a long bit of running room here, but now our first indication of when we might know what it is that the government is proposing to do here in this rem day phase of the case. that first indication will be late fall, early winter when the government gives that high-level indication. >> thank you for that. we're just getting started here. up next, morgan stanley's chris toomey is back. how he's advising his clients. we're live at the new york stock exchange. "close ing bell" is coming righ back.

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year and a half. nasdaq taking it on the chip. joining me now is morgan st stanley's chris toomey. what's your take? >> last time we were here, economic number was in goldilocks view, which was giving the fed what it wanted to do. what we saw was a situation where prices had gotten way ahead of themselves. we thought we were probably experiencing a situation where something was going to have to pull this back. we got a bad employment number at beginning of august. we got some decent numbers in between, but the big thing that changed is bad news is bad news. like it used to be bad news is good news. bad news is bad news. and the other thing is good news is not great news.

so good news is now bad news. so you had -- >> is good news bad news? i would take issue in some respects is what we have gotten bad news. we're acting as if the economy is in some tail spin. the data would suggest otherwise. >> i think the data is in you look at earnings, earnings are okay. the mag 7 numbers, the most recent one was not bad. everything is views price ed to perfection. if it's not great, it's got to be bad. employment number today, you have steve steve on all the time. the market is acting like it's horrible. i would say the economic data is not bad. it's fine. the pricing is off. >> i don't even know if the market is taking it like the data was so bad. we're starting to get into a conversation as to whether the fed is going to blow it. or whether they already did. >> no doubt. because the thing is we're in a

situation where they have kind of thread the needle here with regards to kind of moderating growth, bringing down inflation, raise ing up unemployment, and e market has been doing well, but the problem is that we're at an elevated place for rates. we had 15 years of zero interest rate environment. there's a six-month drag before they start cutting rates. you're in a situation where markets are priced for perfection. they are expecting the fed to continue to defy gravity. maybe that's not going to happen. that has to be priced into the market. >> we need to recalibrate. but that doesn't mean we need to completely fall out of bed either. >> you know what it is. it's stairs up, elevator down. so the market gradually goes up. it keeps kind of getting into the positive feedback loop of everything is going to continue as it is, and then all of a sudden, it's like, wait a minute this isn't happening. we get the elevator down.

so that's the reason why you have to be cautious when the market moves as aggressively as it has. >> part of your point, again, it's like parts of the market took the stairs up. big tech didn't take stairs up. they took a rocket ship. now they need to come back down to earth a little bit. the problem is we don't know how much. >> i think we do. if you look at it from a pricing standpoint, you have rates coming down. the equity risk proceed yum is becoming a little more attractive. you're in a situation where they are continuing to provide great earnings. in our view, it's a situation where you still want to own these names. you want to own them at the right price. so in our view, the market had to come back a little bit. you were going to expect to see them get hurt and drag the market down and all the other names that have been benefitting from it over the last 18 months. now is the opportunity where you can start looking selectively at opportunities, whether it's in the 493 or looking at some of these mag 7 names and saying i didn't own these names at this

level, but now they are at a more reasonable level. we can start owning these. >> is that what you're thinking about? >> absolutely. we have been waiting for this pullback. we have been collecting the types of income that we like to collect. but we thought the markets weren't really justified with the right type of risk that were in there. now the prices are coming back. we're get ting more interested n putting some money to work. >> so you thought the price was wrong. now the price looks a little better. you're also implying you don't think the pullback goes much deeper than here. >> new york co, i think it coul. we're going to look and see where the valuations are, how this fits into portfolios and start buying the names that i think we can get at good prices. >> how are you looking at volatility? then election risks, 60 days away. >> people have talked about -- september is not a good month for investing. elections also can be a problem for investing.

so in our view, that increased volatility is what we love. we like to take advantage of it, whether it's buying names we think are undually getting penalized or writing call options on extra income. we like this volatility. we think it's going to stay. one of the most important things that has been going on in the market is the buyback situation. so buybacks tracking almost two to three times than it h historically has. that's going to end once we go into earnings. that's another wave of problems that we see going into the next couple weeks. so in our mind, we're not rushing into the market. we recollection news this is going to continue for a little while. this is giving us an opportunity to add some money. >> it's good to see you again. up next, five star stock advice. capital wealth plannings is revealing how he's navigating the semispace. why he's hitting the pause button right now. he'll join us after the break.

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we're back. semis today, they are getting hit pretty hard. a lot of that pressure today isment coming from broadcom. joining me is kevin simpson. he's the founder and ceo of capital wealth planning. it's good to see you. you tried to hedge a little bit. talk to me about the trades that you made going in. >> yeah, i think we had a good thesis last week that nvidia was

going to be volatile. option markets were indicating between 9% move. you just never know if it's going to be up or down. it would be a lot easier if you did. same thing with broadcom yesterday. pretty heavy indication of a move, so what we did yesterday is we wrote a covered call, only a one-week expiration. it will expire next friday. but the annualized premium was 60%. i realize that sounds crazy and only because of the hyper volatility, but we brought in $1. 3 yesterday. we wrote a cover call when we did the nvidia call last week. we brought in $1.25. so we closed that out yesterday. wrote another broadcom call. it brings in about $3 in premium for the past two weeks. granted the stock is down more, but we were able to hedge 20% of the decline that those who option trades within the past two weeks. so it worked out well for

nvidia. it's worked out well for broadcom. the stocks are trending down. we want to be patient before we add to them. i think you'll get a buying opportunity. we're seeing prices similar to where we did at the jobs report last month when we saw the massive selloff. i feel like that would be a good entry point for people to buy for sure. >> you're more of in the buy this market rather than beware it. >>wet didn't buy anything today. it was a short week. it's the first week people are back after the holidays. you get more volume. we wanted things to settle out. we were concerned about what the jobs report would look like, remembering what happened last month. i thought the numbers were good on the jobs report. the market selling off is more of a growth issue than a recession issue. whether the fed is going to cut 25 basis points or 50, a lot of uncertainty in the market there. but i think the opportunity broadcom is back to where it was on that august 5, august 7th low. nvidia isn't, but it's getting

closer. i would be a buyer of the dip. we will be. >> but as long as we continue to have this debate about where the economy is going, you maybe have to be more selective about what you're going to buy. in other words, the broadening story could get a little more difficult, no? >> i think active managers want to be careful about what they are buying. but this type of volatility presents opportunities. you could own these seven names and they would just double every day and you didn't have to think too hard. that stopped in october of last year when the fed called no more on rate hikes. now granted we have been in a pause for awhile. but then all of a sudden, you had to be a stock picker again. so what do you do when you see interest rates coming down because we're entering a declining cycle of rates? you're seeing rates and utility as probably the leaders right now. i'm a little surprised on financials. i'd expect them to perform a

little better in light of the fact you have interest rates coming down. maybe it has something to do with warren buffett selling bank of america. i'm not sure. but your point is spot on. you can't sit back on seven names and go to sleep. you have to pay attention and be nimble in this market or you'll miss it. >> how are the next 60 days going to color the kind of decisions that you make in this market? now it kind of has to think about it. we have a debate next week. the polling is going to be much more talked about than it has been. >> the election is going to be huge for volatility. we're seeing that in the vix for sure. monday we have apple. tuesday we have a presidential debate, to your point. wednesday we get cpi. every day that gets closer to the election, there's more angst. i don't know if hit has that muh pressure on the overall market, the stock markets can perform well regardless of a blue or red or white house. but i think it's going to

increase volatility absolutely for the next 60 days and maybe even into january. for us specifically, we'll continue to harvest that volume tulty by writing covered calls. i would encourage viewers and investors to try to follow suit there. when you have higher volatility, you have higher premium. what you saw with broadcom yesterday is 60% annualized premium. granted, that's pretty insane. but if you can generate another 3 or 4% on top of whatever dividend you're generating, all that does is smooth out the ride for what we expect to be heightened volatility for the next 60 days and beyond. >> have a good weekend. we'll see you on the other side. up next, we're track ing the biggest movers into this close. pippa is back for that. >> one crypto stock is down 20% on the week. we have the name and what's behind that drop, coming up next.

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investors claimed they down played it would be sued by the exchange commission. and bloom energy tumbling after getting cuts to hold, which pointed to a look of details around the backlog. the firm site krooiting tax credit changes and minimal transparency around the partnership. stock down 10%. >> pippa, appreciate that. still ahead, a bright spot in a down take. we need that. there it is. housing stocks are popping today. what's behind the bounce. (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.

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we're in the recordclose cl market. we're breaking down the crucial moments. plus home builders, a rare bright spot today. and seema mody on broadcom. we begin with mike.

we started the show with tom lee and a couple others. not too concerned. i think the overriding commentary on this program, on this day was not too concerned. >> i do think it reflects that we're in a limbo state. it's kind of the eye of the beholder. the numbers today, the jobs report was probably not strong enough to really comfort people and say, you know what, growth is fine. labor market, it was a false alarm, but also not weak enough to say we really have to lose our grip on the soft landing scenario or that the fed has to immediately take on a stance of more you are gent is sit. the market has been navigating in this defensive direction. if you look at how treasuries have repriced, they are braced for something, at least the potential of a tougher economic environment and a more aggressive fed. i do think that the stock market has managed to keep it under control. the average stock is not doing

terribly. i would point out, too, on a very, very short-term basis, s&p looks as oversold as it was in the august low. a lot of people are mapping the first week of september on the first week of august and say we overreacted. we're a few percent higher. i don't know if all thathope has to be extinguished before we really rally, but i understand why somebody wouldn't decide it's the moment to panic. >> we're going to keep asking ourselves the question and maybe more acutely is whether the fed is going to blow it. >> are they being too cute in saying they want to have everybody lined up on the same page. we really have to make sure inflation is going to give us more confirmation. i think the market is impatient. the fed squandered the soft landing opportunity. >> the data today wouldn't suggest that. >> it's compatible with either scenario 37 you have a smaller cushion because you have decelerated. >> i think it was to tom lee, no

one has passed out the handbook that says this is how the soft landing is going to go. >> you don't know. it always looks similar to the beginning stages of a recession. >> bright spot on your beat. housing, what's happening? >> theers arbuilders are in the green because mortgage rates are down. the average fell 8 more basis points after already falling 8 in three days before. now we're at 6.27%. that's the lowest rate since april of 2023 according to mortgage news daily. so all high er on the day. which incorporates a broader swath of housing stocks. the home improvement stocks like lowest, home depot and sherwin williams are moving around flat. these stocks have struggled a little bit more because sales of existing more are so weak, people generally tend to renovate when they buy an existing home. not so much with a new home because it's already done. mortgage rates don't follow the

fed funds rate, the expectation is that they will move even lower if the fed cuts. that expectation has some buyers wrating on the sidelines. >> you have a thought about the stocks? >> this is one of those examples where you had the cycle within a cycle. and people have been waiting for the rate effect to kind of jolt it back to life. i know that people who look at things like residential construction employment have said that's still hanging in there okay. that hasn't really waived that recession flag yet. s buyers as dianna would allude to, once you get the rate cutting mentality. people feel it's okay to wait. >> we know rates are going to continue to come down. seema mody, chips? that's the worst spot today. >> yeah, and this week it's been really tough. today is broadcom.

they were left wanting more from the ceo, who did paint an optimistic picture. the company's non-ai business has likely hit a bottom. he's expecting a recovery there. jpmorgan and morgan stanley among the analysts raising their price targets on the stock. chips have played a decisive role. the nasdaq's outperformance, but now caught up in a widespread selloff. every component in the smh is down with nvidia, intel, about 20% or more off their respective highs. nvidia on pace for its worst week since september of 2022. so significant weakness there. next week we will get a read on semiconductor demand when the world's biggest manufacturer of chips reports monthly sales. be sure to look out for that one. >> we will. thank you. it's going to be hard for this market to settle down as long as the chips keep sell ing

off. the likes of broadcom, what it's doing today. >> without a doubt. they have lost their leadership position. so it's a matter of whether we have enough to work with for the rest of the market to hold together pretty well. we are in a little bit of a vacuum. you have no fed speak next week. no major economic growth proxy data releases. and no earnings to speak of. we're a little on our own. we're probably trading off the dynamics. the s&p 500 is the level. we're back to where we first got to in june. we're back to some pretty significant levels around the end of the second quarter. that's not a disaster. but it's a matter of whether people are going to feel any sense of urgency to add back risk when we just sort of know we feel like there's seasonal effects and preelection stuff going on. so i feel like some hope has been drained out of this market. that's probably a positive thing at this point. i don't think investors necessarily have a lot of greed in their eyes at the moment looking at the tape these days.

so for you take around the economy. >> we'll see what the tone is. conference season too. everybody, have a good weekend. an ugly end to an ugly week. stocks pull back sharply. the worst week of the year. the nasdaq is worst since 2022. that's the score card. butt action is just getting started. >> we're going to be all over this market selloff without the hour. it was led by a nearly