shares were up. >> tate life-support rule. >> have a great weekend. >> thank you for watching "power lunch." >> "closing bell" starts right now. thank you. welcome to "closing bell." i'm the at the new york stock exchange. this make or break hour begins with this game-changing week and whether it means this rally is more sustainable than some thought. we will ask our experts over this final stretch. take a look at the score card with 60 minutes to go in the week. in regulation, what we're still hanging on to 42,000 on the dow. been a little bit all ovhe place. we'll see what we do here if we can close positive to end this very busy and consequential week. we are watching apple shares today. the new iphone going on sale. that stock has been up

throughout the day. we continue to follow nike following its ceo change. shareses are main there at that moment up near 6%. it takes us to the talk of the tape. slow down or melt up, that's the question following the first rate cut in years. let's ask dan greenhouse, asset management chief strategist at post. good to see you. >> good to see you. >> game changer? the fact that it was 50? >> i don't think it was a game changer per se. i know there was a debate on the halftime show about a surprise or not. i think most people in my seat look at things from a macro stand point. we all expected 25 basis points and the fed has now decided to alter how we think about things, which is to say during the quiet period, you can change market expectations by leaking to newspapers something that up until this point, we haven't had to deal with much. >> 50 was the right number according to waller, who was

with liesman earlier today. was the right number we're at a point where the economy is strong, inflation is coming down, and we want to keep it that way. so we felt 50 was the right policy action to do. so if they are cutting while the economy is still strong, it's a bit of an insurance cut. what does that mean for stocks going forward. >> when we last spoke, when you were out west, one of the arguments is i could easily make the case for 25 basis points. i could easily make the case for 50 basis points. the case was the case that all of us who said if you had to cut 50, this is the case you'd make. that's the case jay powell made. the economy is doing well, but i implore everybody watching at home and the discussions on the network, this isn't abts the economy weakening in any meaningful way. there's some weakness in the labor market. it's about the fed getting back on sides with where real rates should be considering what the progress they made on the year over year inflation rate.

>> so then why is it anymore complicated than don't fight the fed? >> i'll repeat a long-held position of mine on the show going back to september 2023 when the federal reserve introduced their 2026 estimates. that was the first time they said inflation was not going to get back to target. so what the fed said then in 2025, we're not willing to do what everyone else tells us is necessary in order to bring the unemployment rate back to target and the inflation rate back to target more quickly. we're going to wait until 2026 for inflation to normalize. that, to me, was and remains an incredibly bullish development. the fed saying i'm not going to crack this. to answer your question what does it mean, for investors at home, this is simple. the economy continues to do well. it's decelerating, although from an elevated level, interest

rates are beginning to come down. the two year and ten year, the yield curve is steepening. the dollar sold off a bit. all of this is generally seeking risk asset positive. >> which is why the price targets was raised. assuming that earnings are going to hold up and sdlifr deliver the resultsjustifying the multiple that he thinks is deserved. >> if earnings don't hold up, then 6,100 is not going to happen. >> you think 24 times is realistic? >> i don't love the infatuation with the multiple. the multiple tell mess about market expectations, but at the end of the day, it's never been and never will be, never has been a market-timing tool. the same people who were saying that the market is expensive at 21 or 22 times or the people who were telling the people at home that the stock market was expensive at 17, 18, 19 times.

the market is rich to its history. a lot of that has to do not with some broad-based overevaluation, but the weight that's conveyed by nvidia, apple, et cetera. all of which trade with higher growth profiles. but i don't love the idea that stocks can't go up, which is the insinuation because there are 22 times forward they can certainly go up. they were expensive. the first time the stock market bubble started in the 1990s was 1995. the irrational speech is 1996. and equities continued to go on for years. so tell ing me equities are overvalued doesn't really do much for me over the next 6 or 12 months. >> what kind of stocks are going to go up the most? there's the idea seems to be conventional wisdom fed cuts rate, now cyclical assets or the 493, a lot of the 493 are going

to be the outperformers. is that true? history suggests that it maybe true initially, but not necessarily over a longer period of time. >> it's not a great index. everybody know it is. i don't think the average if you were guest on the show certainly mid-caps are an index of names who these companies are. >> let's say small mid-caps. the ones who are more susceptible by higher rates, now youthat you have rates coming d, is that where the obvious bonus is going to be? >> to answer the question shortly, yes. you'd think that companies more levered to floating rate debt, which is predominantly found in the small cap universe would do better. now part of the problem with this conversation is while that's true in the short-term,

in the immediate yam term, the stocks are just better companies. there's a reason why they are there. if you think about the small cap index, to the extent it benefits from survivorship bias, the exact opposite it your a good company and you grow, you're going to grow to mid-caps and large caps. if you're not a great company, you're going to stay there. not that small caps can't do well. they did for various periods of time, but it's not a quality index. but just to repeat, where is their strength it's clearly in the ai. >> i came to the year thinking you were going to see a broadening out. it touch much long ir. there are investable stories

going on in large and mid-cap. that are not purely derivatives. today i i can't see that utilities are the best performing sector. that's because of constellation on the back of the microsoft news. that's not a defensive play, but is a story that's derivative of artificial intelligence. but there are any number of other companys doing very well that are in access of the index returns this year that have nothing to do with ai. we spend so much time talking about them. this is the moment where the tail wind that's in place for some of these companies is going to become even more. >> let's bring in brian of invest co. nice to see you both. marci gets the first crack here. take us from this reallytive poll and consequential week. what does it mean for where the market gos from here? >> i think you have to look at the backdrop. the two things that matter now is we don't believe we're entering a recession.

the economy is stable. if anything, we're seeing the economy normalizing after having overheated and dealt with this inflationary issue. the fed made it clear they are recall late braiting. so no recession. and two, profits are accelerating. it's extremely unusual at the start of a fed cutting cycle. so that tells me a bullish story for equities. we have a little over six weeks to election day. i would expect some october chattiness, but i think this trend can continue. i look ahead to 2025, it's not about multiple expansion. it's going to be an earnings story. earnings accelerating, i think, is the most important point that investors should be watching now. >> i'm enthused by what i saw this week. the old saying they are all murdered by the federal reserve. so we had a lot hikes qua

quickly. two-year rate at 3.5. they are behind the curve. you have to get going. i am optimistic on market, but i acknowledge we're in a little bit of a race between what the fed is going to do and what the unemployment rate is doing. i would like to see given where inflation is, i'd like to see the fed move faster. i would like to see us work to normalize the yield curve and help growth. >> you think they are still behind the curve? >> it's hard. i don't think it's an argument that there's still too restrictive. >> core personal consumption, you have seen jobless claims tick up.

the unemployment rate move up a little bit. the economy looks good, but we need to make sure they don't stay too tight for too long. the two year is at 2.5. >> i guess the stjury is still out, according to brian, that they can actually pull off the miracle what was once thought to be a miracle, the soft landing, because they still have work to do. >> i think this is still a normalization. what i would caution is and we hear the fed talk about this frequently is the two-sided nature of risk right rooigt now. i do think a year from now, the fed wants to be really sure we're not battle thing a second wave of inflation.

when profits are accelerating, companies aren't laying off workers. that's what i keep coming back to. the macro is easy here. while watching the data, it needs to make sure we don't get a second wave of inflation, which is so common in inflationary periods. >> that's why i think waller, the i way he was with liesman today, wasn't willing to suggest that this was fwoik to be the norm. i want you to listen to what he told steve and we can react on the other side of it. >> if the data comes in fine, nothing bad one way or the o other, you can imagine going 25 at the next meeting or two. if they continue to come in softer than everybody was expecting, you can see possibly 50.

>> if things are okay, we're going to go slow. we're going to go more quickly. but to brian's point about the 2-year being where it is, the 2-year is telling you about market expectations, but market expectations are being set by the fed. i just don't think -- are they being set or market expectations leading the fed? >> i think commentary and tone is helping people get enthused in the idea that rate cuts are coming in an expaid yant pace. i would just say i think there's a little more uncertainty here. we have had a 50 basis point cut was not unanimous. that's the first since 20 years. but governors don't dissent. so sometimes it's the governor. and secondly, when you look at the dots, a couple fed members are projecting no additional cuts. it sounds to me like powell had to drag people into favor ing a

50-basis point cut for all the reasons that we discussed getting ahead of the curve. from an interest rate standpoint, the curve is steepening. we know that. i i would expect it to continue. but i don't think i should rely, and i don't know that brian was saying this, as affirmatively on what the two-year is telling me because to your point about waller and the data, if the jobs number comes in at 500,000 next month or minus 100,000, all bets are off. >> i was largely saying it. from the perspective if i think about the growth and inflation potential of this economy over the next few years, i'm somewhere between 3.5 and 4%. so a 5.25 where we were is too tight. so what i'm suggesting is they have room to go to get to neutral pfr we even consider accommodative. when i'm at a 2.5 inflation rate, but i have leading indicators of the global economy pointing lower, then for my

perspective, it's time to move. >> does 6100 on the s&p, which is brian's new target, the richest on the street, does that make sense to you? >> we rooked back at the past cycles. if you don't get a recession in the 12 months after the the first cut, on average the s&p is up 21%. that's versus an 11% return in all cutting cycles. so this is a powerful backdrop for equities. again, i keep coming back to profits and i by the way, i know a lot of us have a common view to get down to the fed for some time. that's the sweet spot for equity returns. once we get past the choppiness, october is one of those trick or treat months for markets, i do think the ingredients are here for the bull market to continue into 2025. call it 7 or 8% earnings growth next year, if you have yields

pretty range bound i think that's a recipe for higher ef equities. >> all industry groups infect. discretionary is next. does that surprise you? >> it doesn't surprise you. you have had different environments. you have seen the normalization of the curve at the beginning of a cycle where you have gone into recession. you have had others where you have not. so it really will depend on the macro environment. to your earlier point, you normalize the yield curve with a resilient economy. you want to be in more cyclical assets. you want to be in smaller capitalization. when i'm talking about the race between the federal reserve and the unemployment rate, it's not necessarily about the broad market.

it's more about leadership. if you're in an environment where the federal reserve does not get out ahead, the more defensive sectors would win. the one that we're all hoping for and discussing should favor cyclical sectors and small caps. >> last point to you. this notion that a year from now, we'll be having a conversation we have been having for the last year. >> there's even more gasoline on this infer no of ai and this market from to those those stocks. >> it's impossible to argue with the thesis at work here. it's working incredibly well. a lot of these companies are spending a ton of money. some are printing a ton of money. the investment is there. the investor appetite for the names are there. it's not disis similar to the late 1990 nz that sense. i would be hard pressed to desuede people to be able to

desuede people away from that. i would repeat there's lots of other things going on that aren't broadcom and nvidia in markets. if you spend even five minutes, you can find them. >> i appreciate it very much. dan, thank you. marci, we'll see you soon. speaking of other things going on, apt sl going on today. that stock is higher above $230. they officially released the new iphone today. steve is live from the fifth avenue store today. he spoke with ceo tim cook earlier this morning and he's been watching the line very close ly throughout this day. >> that's right. and this whole week started off with some kind of dour news about 16 demand. that preorder data oaf the weekend, analystsic picked it aa part and sales appear to be down compared to last year. then we heard from the t-mobile ceo on wednesday, and he said at least on his carrier and his network, preorder sales were up from a year ago. we saw the stock go up 4% on

that news yesterday. so here we are outside of the flagship store. tim cook was there. i have noticed the lines dwindle a bit, but let's hear what he had to say about what seeing. take a listen. >> today is great. very exciting. >> better or worse than last year? >> i don't know yet. it's only the first hour. we'll see. >> preorders good? >> everything is enthusiastic. >> so that is the the big question on everyone's mind. then there's artificial intelligence angle to it too. there's so many people in line on the first day. despite the fact that the apple store behind me is decked out in artificial intelligence marketing and so forth, these people are not going to get apple intelligence for another month or so. even then, it's going to take some time for all of those features, including that chatgpt integration to roll out. we'll have to see how

diementalic that plays out. but we'll have to wait and see what the sales look like throughout the weekend. i'm sure we'll get a lot more fresh data and analysts will pick that apart through the channel checks and get a better read on demand by this time monday. >> i'm going to bring a headline. winners and perceived losers, if you want to use that word. maybe a little bit strong. but it's approaching intel about a possible deal. that according to dow jones. we take a look at intel shares. we see intel up about 6%.

and that company is the one i'm speaking of. obviously, has been in the shadow of all of the ore chip makers at the forefront of the new revelation. nvidia comes to mind first and foremost, but it's broadcom, it's some of these other chip stocks that have gothen a boost. this one has not. we'll continue to follow this story. we'll take a break in a moment. i want to send it to pippa stevens for a look at the biggest names moving into the close. >> constellation energy surging to a new all-time high. the best performer in the s&p after announcing it will reopen the nuclear power plant selling awe of the power to microsoft as part of an agreement to power the tech giant's data centers. constellation shares have doubled this year as independent power producers benefit from rising power demand thanks to electrify indication, reshoring

and data centers. today's announcement the lifting shares to a record high. vistra is the top stock outperforming nvidia, up more than 100%. >> thank you. we'll see you in a bit. we're just getting started here. up next, we have goldman sachs breaking down how she's navigating the potential volatility in the market. where she sees the big opportunity post rate cut. she'll tell us next. you're watch ing "closing bell" on cnbc. raise this up for me just a little. [narrator] meet dr. applebaum. a dentist with three children. perfect teeth. in-progress. he gives the same level of service to his patients as he does his kids. and when he invests... nothing beats service with a smile. [narrator] this is tessa carter.

culinary connoisseur. knows her ingredients like the back of her hand. same goes for her investments. so, i expect total transparency. lose the cilantro. [staff] yes chef! [narrator] say hello to peter armstead. type a cpa. he always knows exactly where his clients' money is going. so, of course, i expect the same with my money. [narrator] and meet betty ambrose. leatherworker. bootmaker. custom bootmaker. her hands can craft the finest tuxedo boot you've ever seen. what can i say? i'm hands on with my money too. [narrator] and what do all these investors have in common? we all trust schwab with our wealth. [narrator] that you do. every day over a million multi-millionaires trust schwab with more than two trillion dollars of their wealth. (woman) look i got the new iphone 16 pro at verizon. apple intelligence is pret-ty awesome.b (man) nice. (woman) you can get it when you trade in any phone. (man) whoa, whoa, whoa! ♪

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volatility as an entry point. >> great to be here. >> how do you characterize what happened this week for the market that it was 50 and not 25? does that change the way you wrouf seen things today? >> i think it changes it a little bit. i think the fed has done a great job. they were very focused on inflation. they got inflation under control the into the 2% range. i i think it's helpful to have rates lower. i really think it was a bit of a hedge as well. we're not having another meeting until november. you'd expect markets to rise. >> you think this was more of a gift than a warning, a worry

point that something they had to do 50 because they are more worried about the labor market. >> i think a little bit of both. i think they are a little worried about the labor moarket but i see it more of a hedge than a trend that we're going to see these 50 basis point cuts going forward. i think they have given themselves a nice wehedge if th data comes in worse than expected, we have enough cushion to really be able to handle that. >> what about areas of the market? we spent the first 20 minutes debating where you want to be and whether that's become a game changer too as a result of the 50. how do you see that? >> a little bit. i'll just take a step back. when we think about advise aring high network clients, the goal is to protect their money and grow their money to outpace inflation. that's how you protect purchasing power. what does that better than

anything? u.s. equities. you look from 1926 at rolling 20-year periods outperformed inflation 100% of the time. now what u.s. effquities is the question that you're asking. i would say we have been talking about broadening for whawhile. it's hard to ignore the performance. we wouldn't bet against it. it makes sense to have those exposures in a portfolio because most of our clients have tremendous gains there. we talked about the tax consequences of taking those gains. but 11 of the sectors are up year to date. now it's like where do you look to add extra exposure? we're starting to talk about mid-cap. i think the thing that's interesting about mid-cap is from sort of a price perspective they trade at 15 times the next 12 months versus 22 plus. and then you add to that that they are profitable companies for the most part. 90% of them have positive net

income. and we have positive earning estimates. we see 11% over the next two years versus the s&p at 7. >> what about your clients are different. it's about preserving their wealth. but what about stepping out on the risk curve if you think that the feds going to be more aggressive than maybe we first expected, does that change the dynamic for you? >> it makes us more and more comfortable with equities. i don't want to ignore where we are today. we hit new highs on the s&p this week. we are going into the election in november. october is historically a typical volatile month. aim running into the equity market, i'm not. am i telling clients to continue to hold, yes. and to look, and you mentioned this at the beginning, look for dislocations to add exposure taking advantage of increased volatility.

selling puts on names you want to get long or i think we're trying to think about how to use volatility. we did that on august 5th as well. >> let's talk credit for a minute. one of hottest areas continues to be private credit. now you have a debate developing as to whether that's now a bubble. i asked that question about whether it's just too much. listen to what h said and i'll get your reaction. >> without any doubt, i know that when the first question at a large crowd presentation is over and over again talked about private credit, i say, you're asking me that because you own a ton of it, right? you have your clients all in these funds. and now i think somebody is trying to do a close fund for private question kret.

first someone is so bold to want a billion-dollar fund, now a $25 billion fund. this is what the top looks like. >> so here's how i would respond. i don't think our clients -- i see their portfolios. we had a survey that showed that our clients are not over weight private credit. there have been a lot of new entries into the private credit market. let's just take a step back and talk about private credit for a minute and i'll talk about the parts that give me some pause. i think obviously with interest rate cuts that overall yields are coming in. maybe you're not going to get the 12020 in direct lending strategies. i still think that's an interesting yield. what is important is to think about the yield in relation to what you can get in the public markets. it's still about a 300 basis point pickup. there's a premium for most

ultrawealthy clients and family offices they can afford. there's often higher in the stack, but there's been a lot of new entrants into the private credit market. and certainly, default rates are picking up a little bit. they are below historic ave averages. that's something we're paying attention to. my advice is do a lot of diligence on the managers that you're investing with. you want to invest with people in private credit who have experienced through cycles, through credit cycles, i can say goldman sachs private credit stralk has multiple decades of experience. we have been through a lot of credit cycles. you want to see what that rate looks like, what performance looks like through various cycles. so a little bit nervous, but i think with the right managers, i think it's still an asset class that makes a lot of sense. >>perspective. i appreciate your time.

i want to get back to that breaking news. that report from "the wall street journal" that there's a possible deal in recent days. you certainly know this company as well as anybody does. you know the precarious position that intel found itself in and how it's tried to deal with the ai revolution and wanting to be a critical part of it. what do you think of the report? >> it is a tough spot that intel is in. i have reached out to kwaul come. i haven't heard back. don't know whether or not this report pans out, but when i first saw the headline or heard about the headline, my reaction was this is one of the few deals that could actually be allowed to happen because qualcomm not only has a market cap right now that is about roughly twice

where intel's is, it's also a big u.s. chip industry player. qualcomm does not do chip manufacturing. intel's manufacturing business is the big spot where it's having the difficulty and where it's pouring billions of dollars in. then the u.s. government through the chips act has begun supporting that. they haven't delivered the money yet, but they have promised it. qualcomm and intel do compete in pc chips, but intel is a lot bigger in that space. intel has a lot of business in data center. it's losing share there, but it's there. qualcomm doesn't. there's minimal overlap, but a lot of this would depend on how regulators define the market. these are both domestic companies. they are champions in their own ways. and intel in pcs and data center

having trouble with that business and the manufacturing business. both are focused on ai being the future. but doing that from slightly different perspectives. qualcomm more on mobile and industrial and intel really trying with its chips to build up a competitor to nvidia. also doing some of that on the pc side. so i think that's why you see intel right now up 7.5 or so on just this possibility, but there are few companies who i think would both have the incentive and the means from a market cap or cash perspective to talk to intel about this. >> it was just this week, if i recall, at the beginning of the week where intel made the announcement of turning its foundry business into a subsidiary and taking outside funding. i guess that you could tell me better, underscores how the

management team at intel are trying to be terrransformative they move into the future. >> it also shows the kind of pressure they were under. they were right about the demand for chips and the need for manufacturing. what they didn't see coming is the enormous success of nvidia and the shift of business away from cpus where intel specializes towards gpus. so as they are spending tens of billions of dollars to stand up manufacturing capability to satisfy that demand for chips, their revenue is suffering on the other side at the same time. pat also here at the beginning of this week said they are trying to keep manufacturing together even though they are structuring from a governance

perspective. the foundry business as a subsidiary within intel. i can tell you a couple years ago when i held a gathering of some ceos who know pretty well, both flew in and they wanted to talk to each other on the side during that gathering. thaps part of the reason why they were there. and qualcomm is one of the big potential customers for foundry. so they have a need to diversify their sourcing in chips, whether that is part of what would be attractive on top of the other ip intel. >> maybe they have been speaking. i appreciate it. thank you. you can catch john in overtime in about 20 minutes. i'm sure he will have more insight into this breaking story. "the wall street journal" r

reporting that qualcomm has approached intel in recent days about a possible deal. you see shares up 6%. we'll follow it. up next, we are revealing why the odds of a melt up increasings, just after the break. tamra, izzy and emma... no one puts more love into logistics than these three. you need them. they need a retirement plan. work with principal so we can help you with a plan that's right for your team. let our expertise round out yours. (vo) a law partner rediscovers her grandmother's artistry and establishes a charitable trust to keep the craft alive for generations to come. from preserving a cultural tradition to leaving a legacy, a raymond james financial advisor gets to know you, your passions, and the way you enrich your community. that's life well planned.

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welcome back. it's good to see you. >> you talked about the melt up. did the fed just that? >> i don't think that 50 basis points was really necessary for the point of video of the economy. the economy is grow ing about 3 on the year over year basis. it could grow faster as a result. i think the result is going to be productivity gains that are more than as of late. if that's the case, it's early. i any we're okay. 2.8, which is near record highs. i would have preferred to see the market go sideways for awhile, but the market never listens to me and it keeps going up. >> how much do you think it can go up now?

>> the way i forecast is i have a base case then one or two alternative scenarios. and in my base case, which is that the market follows earnings and valuations, they get too much stretched from here. i would have the market go 5800. we could be there by next week sometime. but i think in that scenario, sort of the deva view, we could see over 6,000. maybe that will set us. up for a correction. i don't think it will be a bear market because i don't think we're going to have a recession. >> does it change what can go up? the kinds of stocks that maybe i need to think about 50 rather than if it were 25? >> it's kind of given us a strong indication of what this

inflection point policy means. but i think we have seen in the past few months that the market has broadened out to that small cap and mid-cap. so their valuation is starting to improve. i think that the trade here is to really broad tennessee out. focus on 493. i still is have a problem with the mid-cap earnings. they are still in a coma. they are flat. i haven't seen things pick up. maybe with lower interest rates it will provide some lift, but i see more opportunities in the 493. >> we'll leave it there. good weekend. we'll see you soon. thank you so much. still ahead, shares under pressure following some lackluster data on a new weight loss drug. the bell is coming right back.

(woman) look i got the new iphone 16 pro at verizon. apple intelligence is pret-ty awesome. (man) nice. (woman) you can get it when you trade in any phone. (man) whoa, whoa, whoa! ♪ (vo) now, every phone can be the new iphone 16 pro at verizon. just trade in any phone in any condition and get the iphone 16 pro, on us. only on verizon. ♪ ♪ ♪ ♪ ♪ ♪

♪ ♪ raise this up for me just a little. [narrator] meet dr. applebaum. a dentist with three children. perfect teeth. in-progress. he gives the same level of service to his patients as he does his kids. and when he invests... nothing beats service with a smile. [narrator] this is tessa carter. culinary connoisseur. knows her ingredients like the back of her hand. same goes for her investments. so, i expect total transparency. lose the cilantro. [staff] yes chef! [narrator] say hello to peter armstead. type a cpa. he always knows exactly where his clients' money is going. so, of course, i expect the same with my money. [narrator] and meet betty ambrose. leatherworker. bootmaker. custom bootmaker. her hands can craft the finest tuxedo boot you've ever seen. what can i say? i'm hands on with my money too.

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coming up next, making the case that the bulls are back in charge. that and more inside the market zone, next. it's all the things that keep this world turning. it's the go-tos that keep us going. the places we cheer. trust. hang out. and check in. they all choose the advanced network solutions

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we're now in the "closing bell" market zone. we're here to break down the crucial moments of the trading day. jonathan shares how he's approaching this week's breakout rate cut and more. first, your take away and how we should be thinking about things. >> easy digestion of a big move yesterday. interesting that we perked up towards the close. it seems as if the intel news is let's not get too negative if we're going to mop up some of the underperformers in the market. i do think i like to look back at where we came from. here we are less than 1% above the july peak in the market. so what's changed? what's the same? earnings estimates are higher than they were there. so the market is less expense i

have. i would argue positioning have definitely cooled. and we have chewed through half or two-thirds of the supposed seasonal period that we were supposed to be worried about going into august. all those things seem to set things up okay. semis, obviously, have slid back toward the sidelines. they are no longer not performing. you have nvidia making lower highs. still the rest of the market is able to hold together. it might be too much to ask to continue that indefinitely that the big stocksen don't help out, although you have meta and apple working in favor of the indexes today. >> that's going to close d downgoing into earnings season. >> i think in general, you have fewer reasons for people to be immediately worried. therefore, nobody is going to necessarily rush to sell.

i think that's the biggest issue in terms of whether the market comes in heavily or not. >> what's going on with novo? >> an experimental obesity pill. it's a different mechanism than the glp 1 drugs that we're familiar with. people losing weight, but also reporting psychiatric side effects like anxiety, irritability and problems sleeping. those are concerning because this is a known risk with this type of drug. the pill targets cb 1 and other companies have struggled here because of the psychiatric problems with this route. they were trying to make it work. the results are not helping that case. some also getting hit hard today. now novo is saying it will keep work ong the dosing and safety of this pill. it's planning a larger phase two trial, but again, seeing skepticism now with this mechanism. >> thank you.

jonathan joins us now. it's good to see you. respecting the action, the bulls regain the upper hand. that was the title of your note toid. tell us more. >> so we are bullish around 5400. we thought you'd see that run up in anticipation of the feds rate cut this week. and then we thought there was a good case once it was priced in that you might get to sell the news. the action on wednesday was but the fact that we came back thursdays, regame the loss in income. that tells you that the bulls digested the news and regained the upper hand. >> what looks ripe to break out from here now? >> there's a couple parts of the market. we got back to new highs without technology. that's the first note. within technology, software did

just make a new high after seven months of consolidation. so it's taken some relative strength from the semis, which are albeit they are not breaking down, but they are struggling more than they have. so softer looks good to us. you have new highs. the only sectors that didn't make new highs in this last move were technology and energy. so it's pretty broad based. so you can kind of make the case for a lot of different sectors. one area we would be in the strength is the consumer staples. they are historically stretched. and if we get a bout of more risk on, there's certainly going to struggle both in absolute and relevant terms. >> i appreciate your time as always. we'll turn it back to mike santoli. a few minutes left. need to watch yields. inflation data next week. although you make the argument now that yields are going up for

the right reasons. >> yes, and treasuries had rallied so much that you see the longer end leak higher in yield about 370. if anything, i don't think you want to see long-term yields compress that much more. so far, i think that the 50 basis point cut allows the investors to keep the economy and the inflation data on a slightly longer leash. you have to keep it in mind. pce next week, obviously, waller today set the tone in saying that they are looking at it with pretty favorable glasses at this point and feel ing as if the trend is their friend in that regard. so that's all good. after the big expiration date today, sometimes the market sloshes around a little bit. it doesn't mean you have immediate upside there. you're not cheap going into earnings season. third quarter numbers have come down. maybe that lowers the bar.

it's not as if all is great, but it shows you that we kind of worked through a lot of the known challenges over this period. the s&p 500 is kind of managed to have a couple sharp pullbacks, but come out of this period so far with slightly positive over two months. >> you talking about the idea of stocks able to get over this hill top. >> yeah. it becomes tough. just becomes tough. it's not that all of technology is sitting it out. i'm much more focused on the leaders in semis that really we're pacing the market for a lot of that period of time. and it's sort of like it has go well for that to sit on the sidelines and the overall indexes to work okay. but it has done fine. credit markets giving you no reason to be concerned at this point. people have built up.

a lot of the portfolio is doing what it it's supposed to do. it's not incremental fresh news. it gives you greater confidence in the is scenario that i think the market was positioned for. >> it was like 5600 on the s&p was that number that we were really sort of anchored at. we couldn't get above it. now it's 5700 right here at 5702. we need to watch that. we're still above 42,000 on the dow. >> i don't think there's any special powers in this small caps, but it was 21 forever. so you have made progress on that front. and it gives folks one less

thing to complain about. >> that's the end of regulation. and looks like we got another record close for the dow. they both closing slightly lower. that's the score card on wall street. the action is just getting started. welcome to closing bell. >> the dow and s&p now up for 5 of the last 6 weeks. qualcomm