there, down in many cases by double digits. nvidia getting hit as a result along with other chip names. trump media taking a sharp leg lower this afternoon after the former president's interview at the economic club of chicago. the stock was briefly halted for volatility which you could have characterized the interview as because it was pretty volatile. it has since reopened, but down about 5%. and here shares of sphere entertainment. the coming up's entertainment venue in las vegas has caught a lot of attention, boosted business in las vegas. today the company announces the next sphere, number two, will be built in abu dhabi in partnership with the department of culture and tourism. lot of news around the uae. it's spectacular. >> so cool. great to have you with us. thanks for watching "power lunch." hi, thank you so much. welcome to "closing bell." i'm scott wopner. we're live -- wapner.

we're live in beverly hills. we have big interviews coming up. case founder matt brown wants to bring alt mainstream, and he's going to be with us along with franklin templeton ceo jenny johnson whose firm is now one of the largest in the fast-growing space. we'll show you the markets here with 60 minutes to go in regulation. we've been given a little back after another record set sessio. nasdaq's -- record setting session. nasdaq's worse. following the earnings report. goldman sachs higher in its beat. we'll watch that over the final stretch. i mentioned nasdaq today. it's a big day for apple, a new all-time high. offsetting weakness in nvidia shares. the big drag in tech, down 5%. we'll talk to our panel, portfolio manager with the wealth enhancement group. sofi's head of investment strategy, and managing partner with requisite capital and cnbc

contributor. good to have everybody here. i'll turn to you since you are sitting here at case. i love your notes. you say what's not to like in this market? that's really how you feel? >> absolutely. we're at all-time highs here in the markets. the economy's doing really well. we had a great job report. inflation was a little warm last week, but you know, all in all you have the fed cutting rates, the fed focused on growth. and biggest issue is probably valuation. >> all right. so let's kick this around more, liz. now is that how you see it? what's not to like in this market? because we've heard a lot of concerns from people, the market's been thrown a lot, and it's dealt with everything. >> yeah. it has dealt with everything. i think there is a lot to like. obviously in the optimism that we're hearing from investors, and that we're seeing in the stock prices. i think the biggest thing to like about it right now is that tech isn't necessarily the one that has to lead the way in order to raise prices. i remember not too long ago

asking a lot can the market go up without the mag seven. now i think we're proving that it still can go up. the difference in this period right now is that investors just have to get used to a different clip of how quickly it will go up. so perhaps we're not going to see double-digit returns every few months like we've been seeing, maybe more normalizing in the size of returns. i think that's okay. and with earnings growth normalizing, as well, i think this sort of period where we're coming back down to earth both in inflation, in demand, in earnings growth, in stock price returns, is healthy for this economy. >> bryn, it has been a resilient market. feel like you'd have a big day, you'd set a record. take a breather, say, well, you know, what happens if this happens? and then the market deals with it and keeps chucki i-- chuggin higher. >> the market continues to punch above its weight, right? you would think that after all we've been through the past few

years we wouldn't be where we are now. i think that we've had earnings resiliency. i'm a big proponent of don't fight the fed. i think the direction of rates are lower, the speed and the velocity not so sure about. i think today's a good example, you have like a hiccup in energy for geopolitics, the hiccup because of asml. i don't think those two remotely derail anything. and i think that at the index level until the election is over and we can confirm gridlock, i think if the headline number were not going to do much. underneath the surface we're going to see the haves and have nots. asml is a have not today. i think we'll key a lot of volatility on both sides as companies announce earnings across sectors. >> how are you, aya, thinking about positioning within this market? we're sitting here, feel like we have this debate, conversation every day, where best position in the market. stay with the mega caps

overweight, or do you believe in the broadening? do you go small? what's your thought? >> i think you've got to have a little bit in everything so i don't think you can, you know, not have some of those leaders, tech has been a leader, and it's likely to continue to be. but having that broader participation across markets is always really helpful. and you know, the economy is strong. so you want to have those forces that reflect that strength in the economy. >> the when you say the forces that reflect that, i mean, i think we hear from people that means stay large in the cap space. how would you address that? >> so i think when you look at the economy, you know, over 40% of the economy is still sort of small businesses. so i think you want to be able to have that and reflect it in the small cap names that, you know, everybody knows the quality of some of those small caps aren't what they used to be. but i think having some exposure there is really helpful. then same with international and emerging markets. you want to have some of that

exposure just in case leadership does change at some point. >> liz, how would you address that? where best to be positioned now as some have tried to make the small caps call for a while. it hasn't really worked all that well except for this week. we're only two days in. >> yeah. small caps have done this sort of fits and starts and these attempts at making new highs. and they've failed every single time. today we're see something life out of them, and i think that's important to watch. but there is a really big correlation between small caps and the latest market. so as long as the labor market can stay strong or at least stay exactly where it is right now, small caps do have room to find more strength. what you want to see from small caps is you want to see them confirm the move we're seeing in large caps. you want to see large cap stocks rotate into more cyclical sectors if the economy is going to stay strong. if that holds, you want to see small caps also pick up and confirm that move.

if small caps fail to break out here, i think that's a signal to be cautious and make sure the portfolio is positioned with things in it that are defensive. and honestly, one of those things continues to be health care for me. i think it can be offensive and defensive in this environment. >> okay. so bryn, play offense and defense for me. give our viewers a way to play sort of both sides of the line of scrimmage. >> yeah. sometimes, let me tell you what i don't want to -- i don't want to own china, i don't want to own international, i don't want to own small caps, and i don't want to own intel. take those out. what i do want to own is i want to own the qs, i like the s&p, we only equal weight. and i think that what we like still is this free cash flow yield which you can screen across sectors. so to liz's point, there's a ton of great names in health care that have high, free cash flow yield. i still like energy. i think with the energy pullback, 3% to 5% selloffs just

today because energy broeke 70. nothing's changed remotely fundamentally with these companies. take out -- know what you don't want to own and build a portfolio -- and i agree you want to own quite a few different things, but i still think rsp and the free cash flow yield helps you own things outside of just the mag seven or the other big cap tech names that we always like to talk about. >> do you want to respond to that? bryn, no china, no international, no small caps? because you know, there are a coup of places in there where you -- you think our viewers should have more exposure. >> sure. i mean, i think there is -- you know, positioning is important. so having some exposure, again, you never really know -- china just went through and, you know, when they provided all that stimulus, you had those stocks up a lot. and -- i don't think you want to be completely naked there. it's -- may not be like a long-term holding there, but i think having some exposure allows you to just capture some

of that upside when it happens. >> i think the idea is, you know, i don't know what you think -- overall returns are going to be going forward, but -- you know, i think there's a level of optimism that you can get better -- maybe you have to take on a little more risk. but with that risk comes better returns in some of these international areas of the world. >> well, i mean, maybe as an individual name like novo nordisk, that's an international name. we're looking at the index level, the reason why international equities -- at like these companies are cheaper than the s&p. the cheaper than the s&p for the last 14 years because there is no silicon valley in europe. there's definitely not a silicon valley in china. i mean, if there is, they squash is down. you know, like in a country like france who can't fire anybody, you have structural issues where these companies are not able to grow and innovate as quickly as

the u.s. and i think -- you think the u.s. has a lot of regulation, there is so much regulation in europe. and i think that is the reason why the multiples are lower. and i think if you buy the s&p, know that, what is it, i mean, liz and -- 55% to 65% of revenues of the s&p comes overseas. i think also if you own large caps in the u.s. you get china exposure, you get international exposure. i don't want to deal with the currency, which always can whip everybody around. so i like to do probability investing. that's going to stick in the u.s. and look for my value and like a free cash flow yield which has someof the characteristics of an international. but i'm still here in the u.s. >> all right. we'll leave it there. thank you so much. aya, good to see you here in los angeles. liz, brirngs t-- bryn, look forward to seeing you. we'll look at the banks. the financials in the green.

tell us more. >> yeah, a mixed picture for those that reported this morning. citi shares taking a hit. so far the only one of the large banks in the red on earnings. at least those that have reported so far. most measures, citi had a strong quarter. revenue gains and positive operating leverage in each of its five divisions, and beats on the top and bottom lines relative to consensus. however, net income declining 9% due to hire cost of credit. the combination of net credit losses and an allowance build contributing to a 45% jump in that cost of credit year over year. the firm also saying net interest income, the profitability metric for loan making, would be flat in 4q. bank of america getting the opposite response with ceo brian moynihan reiterating his view that nii bottomed in the prior quarter, in 2022. and gold-- q2. and goldman seeing the most modest move despite the bottom line beat and profit jump. david solomon saying he believes they still have some, quote, tailwind dynamics around investment banking activity, and

solomon added that even though banking revenue has improved, they're still below ten-year averages. scott? >> you know, leslie, you left it in such a perfect place because i had a conversation, you know, a while ago with todd boley here who liked david solomon. pretty optimistic about what's about to happen in m&a and capital markets. listen to what todd told me in our exclusive interview and get your take on other side of that. >> i think we're in the process of having lots of m&a get started. i think we're seeing more and more activity. i think we're seeing people want to transact. people have to kind of get back to, you know, the transaction business. so you know, across our portfolio we're seeing lots of kind of merger and consolidation discussions going on. i think some of them are in their earlier days. but i think the animal spirits are coming back and people want to get back to it.

>> leslie, what do you think? it's been a while since we've heard that animal spirits -- >> yeah. but we have heard about green chutes for quite some time. i think most ceos of these big banks would have thought that that re-surgens in capital markets we've taken off by now. one of the things i hear when i talk to private equity is they needed to get inflation under control so those portfolio companies could do some forward planning before they sold stocks to the market, before they sold the company to, you know, a strategic or another private equity buyer. all of those things were important, not to mention the cost of financing needs to come down. which we are starting to see now that be the case. a lot of consensus around early 2025 as a true revival here. but in the meantime, you already see shares of some of the bigger investment banks. goldman, as well as the boutique firms, really taking off this year in anticipation of that.

>> a lot of private equity folks wandering around in the lobby of this hotel today hoping that mr. boehly is correct. good to see you. thank you for your perspective. that's leslie picker. though it's been a great couple of years for returns in the stock market, growth in alternative assets continues to soar as investors look to diversify their portfolios. joining me is the case founder, chairman, and ceo, matt brown, host of this event which is now in its third year. welcome. good to have you back. >> scott, great to be back. >> so i don't think i'm oversimplifying it by sighing you're looking -- saying you're looking to make alt more accessible. what growth are you seeing in the third year of this conference? >> the summit here is quite telling of the demand and the interest in alternative investments. so we have now in our third year doubled every year in attendance from the adviser community. and also the asset management community that's focusing on alternative investments. >> it's pretty incredible when you think about the growth, that

assets are expected to hit more than $18 trillion in alternatives by 2027. why does so much money continue to flo what you're seeing is at in our conference anyway, our summit, the financial adviser which is quite low allocation rates small investments are seeing the benefits of adding alternatives into a complete portfolio. you know, forever it's been the 60/40 model. now it's moving to the 50/30/20 for -- 20 is alternative investments, primarily private markets. >> expand on that a little bit. because you think that's going to be a lasting change, that as you try and help democratize, if you will, alternative investments, that more retail investors are going to be able to add exposure and invest alongside some of the largest names in the institutional investment world in ways they were never able to do.

>> that's exactly right. when you look at the allocations that in many cases financial advisors have been limited to what they've been able to do for their end clients, with this democratization alternative investments and some of the biggest alternative asset managers actually serving the wealth community and focusing on them, now of course we're making alternative investments more available to financial advisers and then to their end clients. the reason for that is that the performance and the impact of alternatives in a portfolio over long periods of time has been proving out. >> it speaks to something you announced today, called cais advisers. a model portfolio of sorts. how does that work? >> so our platform is a technology company, we're a technology platform that helps with the work flow, if you will. now we're taking the next step and email saying you know what, if we can actually add value on the advice side on how you put funds together in a portfolio,

how they work with your traditional 60/40 portfolio, that's really the next step to helping advisers unlock the power of alternative investments. >> they also have the opportunity, i guess, to be multimanager. to get exposure -- you have 60 some odd institutional investors here, private equity firms as i said, walking all over this hotel. so they can get the -- the diversity of asset managers, too. >> correct, correct. so many advisers are just getting more familiar with alternative investments, and maybe the difference between apollo or blackstone or reverence or blue-l may be hard to understand, but if they're generally in the same category, why not buy a basket of all four? if we can do that with an easy click of the button, that gives instant diversdiversification, u match that with the broader portfolio. back to the theme we're making it easier, leading with education, and leading with knowledge. >> i was going ask you that.

as you lead with education, do you think we're moving beyond the question that an investor would ask of why do i need alternatives and it's now morphed into how can i better utilize them in my own portfolio? >> when i started cais 15 years ago we were dealing with why alts. now it's moved completely to howalitys. that question i -- how alts. that question is answered, how do i do it easily, simply, and make sure traditional alternate investments work with my portfolio. >> lastly, i saw a study today by the prosec partners that sort of details how the institutional side is reaching out to retail. you talk about the process of educating people who may not be that familiar with assets, frankly, that are a lot less liquid than -- than they're used to. how are you thinking about the risk, as well, that comes along with these types of investments? >> all the investments on the platform, of course, need to be -- independently. and leading with education and

educating the advisers so they can understand that there is -- a liquidity premium, but these are ill liquid assets is very important. on the prosec report, something interesting, about branding and marketing. we did a survey of the top ten largest alternative asset managers. there's been an 850% increase in their budgets to serve the wealth community. and these aren't firms that spend money, you know, in the wrong places, so they see the opportunity. >> all right. i appreciate your time very much. you're going to come back with us in a bit with a special guest. we look forward to that. >> thanks. >> matt brown of cais. host of this conference. we are just getting started on "closing bell." coming up, i mentioned it at the top, apple hitting an all-time high despite chatter over demand conditions for the new iphone. we'll discuss what's at stake after the break. live from cais in beverly hills.

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plus, a free samsung galaxy s24 fe. we are back. nasdaq continuing its slide today. there it is, down by more than 1%. apple, though, going the opposite direction. hitting an all-time high. steve kovak has more. what's happening that's causing this? >> all about iphone demand, of course. we got a little more color today on what that looks like. but a bidifferent than what i've been -- a bit different than what i've been talking about recently. we're focusing on the september quarter, idc yesterday, that's an analyst firm. they put out estimates that 56 million iphone shipments happened last quarter, up 3.5% from a year ago. and our friend eric woodring at morgan stanley today highlighted that report and saying 3.5 million iphone shipments above his estimates and that would represent six million above consensus. shaping up to be a better

september quarter than previously thought. now what this really means is iphone 15 demand remains strong along with the first few days of iphone 16 sales that will be reflected at the end of the quarter. and the story, though, overall, with the iphone 16 line still the same here, waiting for the apple intelligence launch later this month, probably in about two weeks. and more details on what the rollout is going to look like after that over the next several months. still tons of analyst chatter about the muted demand for this iphone 16 cycle. scott, by the way, a new ipad mini was announced today. it's also going to get apple intelligence and will get earnings here in just over two weeks. that level, though, the all-time high level, 234.82, off a little from that. but it did hit it earlier today, scott. >> part of the point here, steve, is that it feels like we're going to have to wait a good while now to really see what the demand picture's going to look like specifically due to

apple intelligence and what that really is going to mean for the upgrade cycle. >> yeah. that's exactly it. also i'll note in the ipad announcement and for all the other devices that have been coming out recently, the marketing around this is apple intelligence. that's the thing you see when you walk in the store, but what they don't tell you is it's not there yet, and it's going to take time to get there. so it's unclear how many people even understand that, scott, that, you know, what they're being marketed and advertised, all these cool a.i. features we've been talking about since last june, we just don't know when that's all going to come to fruition and hit these devices. so you're right, it's going to take several more months before we see if this really is that a.i.-driven catalyst that the dan ives of the world think we're going to see soon. >> yeah. also means we're going to have to cycle through these analysts' notes as they try and get a better handle on what's happening so they can sort of advise where they think all this is going. thank you. >> on the 31st --

>> all right. looking forward to that. thank you so much. joining me at the cais investment summit, president and ceo. >> good to be here. >> let's take your temperature of what you think this market is going to do from here. >> well, i think we're going to continue to get a lot of volatility given what's happening around the world. i mean, we've got wars that are happening, we've got an election that's going to be very close either way. and so the markets have going to be going up and down. and you know, one thing we have to look at, you know, a lot of the markets are still in, you know, almost all-time highs. and you look at s&p, we've got potentially around 22% price earning -- forward price earning. i think it's almost fully baked. at least given where history's been. >> yeah. >> so a lot of allocators have to look at that when they make decisions going forward. >> are you surprised at the resiliency of the market given how you started your answer --

all of these things have been in the face of this market, and then new ones pop up and, yes, they may take a toll for a day or so, but for the most part we've been able to hit record highs that you reference. >> our markets have been very resilient, especially in the united states, very resilient. and we can't confuse the markets with the economy either. that's what a lot of people do. i mean, there's still issues that are underlying in the economy. we had a good, you know, better than expected jobs report, but then inflation came in hot, as well. so people have to look at all of that. but i'm not surprised the u.s. economy is -- the world economy's been pretty optimistic, and i think we're going to continue to see that. >> so was 50 basis points a mistake? i know you had urged the fed to do something because you thought rates were too high. was 50 too much? >> no, i don't think it was too much. i think we should have started earlier. i think the information, probably won't do another 50.

i think it may have sent some bad signals as to why they thought they had to do 50 rather than do it earlier and 25 each time. but at the end of the day, they're going to get where they want to go, and i think it's not going to be that substantial. >> okay. so we start out talking about the stock market, we are here at an alternatives conference. which you have made a bigger part of your business, too. >> sure. >> why? >> look, it's part of our dna. our founder, basically the founder of convertibles, wrote a couple of books. we've been in business 47 years. alternatives are in our dna. the convertibles, we're number two buyer in the world. and liquid alts were top three behind jpmorgan and blackrock. it's in our dna. and we're going from liquid to more privates. and so we're -- we've launched some integral funds in private credit, you know, and we're incubating a couple more with our partners at axia which has been successful.

>> yeah. so what do you say -- i know you've just mentioned private credit which has me thinking where are we in the cycle of this kind of stuff? where people here -- we've had conversations as i referenced earlier, is private credit a bubble? are we at peak alts? now everybody wants alternative products to offer to retail investors. how would you answer that? >> well, if you look at all the allocations, the continued increase for allocations, a lot of these portfolios and the alternatives. we're not seeing that go away. we're starting to see a blend between public and private markets. and that's something that's been very, very interesting, especially with the instruments and wrappers that you have giving more liquidity, giving you returns right away, and so i think the markets are -- the private markets especially private credit and private equity are clearly here to stay. >> and you don't have concern

that retail investors looking at this and hearing about the prospects of better risk adjusted returns going forward don't know enough about what they're being invested in as these products are made more available through the -- you know, the wealth adviser channel. >> well, especially here in the iia channels, that's increasingly growing versus some of the wire houses that have been a traditional way to put products into retail. look, it's continuing the education process. but the democratization of these products, mom and pop, and this is a lot of what we do, is a real big thing and a great thing. when you can invest with as little as $2,500 and be side by side with some of the greatest private investors like apollo, carlisle, blackstone, it's something that's unique, it has not been done in the past. and i think there's a lot of appetite for hat, especially as educations grows where --

education gross where they can get the returns traditionally that only professional investors, ultra high net worth investors have. >> you pick a number out of a hat, $5 million -- >> minimum -- >> investable asset minimum, don't bother knocking on our door. >> you couldn't get into these spots. >> changing now. >> big time. >> you think it's going to continue? >> i think the market's changing completely. i think that these interval funds especially, the liquidity that you have, some like 5% recorder which is better than no liquidity or five, ten-year lockup, is a big deal. no pay -- something a lot of people don't want to do with. that's a great thing, as well. and being able to get return on your assets from day one and not ready for a drawdown, two, three, four, five years. a lot will go to these products. we're seeing more issuance in these products. and the true privates are going to probably hold for the big institutions that want allocations to have an sna and a

public sector where they do $5 billion, $6 billion increments, where a manager will invest for that. >> we appreciate your time. so very much. thanks for being with us. >> thank you so much. appreciate it. >> joining us here at cais. next, franklin templeton president and ceo jenny johnston will join us and tell us where she is finding pockets of opportunity in these markets. we're live in beverly hills. backn e el aerhi oth"bl"ft ts. in life, i'm reminded that it's not about the destination. it is truly about the journey. (cheering) (♪♪) (♪♪) (♪♪) (♪♪) (♪♪)

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welcome back. live from the cais alternative investment summit in beverly hi hills. joining us, frankline templeton ceo -- franklin templeton ceo jenny johnston. welcome, great to have you on the program. >> great to be here. >> i have to admit i didn't know and i don't think many people out there watching would know that franklin templeton is a top-ten alts manager. >> it is. >> that sort of happened under our noses here. and you've done a number of what you've called bolt-on acquisitions. why? >> i mean, there's definitely a secular change into alternatives. companies are waiting much longer to be public. we've seen half the number of public companies. traditional asset manager, you have to address that secular change. so we bought lexington partners which is a sexdary manager. we have clarion partners which is a real estate manager. and private credit. banks aren't able to lend like

they used to lend because of capital requirements. it's created this corporation on private credit. we thought we had to offer that diversity. we have $260 billion in alternative funds. >> what does the runway look like to you? feel like as i discuss with almost everybody here, they don't think that we're near the end of the runway. that there's a long way ahead of us where assets are going to continue to flow here. >> i think again, i don't think people are rushing to be a public company ceo. i think they are happily staying in the private markets as long as there is the -- the ability to be funded. and so you know, you see it. the average company goes public after three years. now it's ten-plus years. so as long as that's happening and you -- you know, you have this increase in it, you're going to have more and more investments there. i think what's happened so far is it's only been the credited investors. now it's about -- this is what cais does, but democratizing so everybody has access. because think about those early growth years of a company. it used to be post ipo,

everybody had an opportunity to invest in it. now you have to be a credit investor, that's why matt created cais. >> as we hear more, i have heard people say peak alts, now everybody's talking about alts and talking about every part of alts. how would you counter that? >> i would say that many years ago no one was talking about alts, and that was a very -- lonely days. especially as an entrepreneur building a business around alts. but look, it is -- it's definitely the topic. you've seen really a transformational moment in how investors are thinking about getting the best returns, creating portfolios that have true opportunity. i think as jenny mentioned, from the private markets many companies are not going public. so how do you really participate in the growth of private companies and its private markets? and private market investing. and firms like franklin templeton that have been focused on marrying the traditional

business and expanding it with alternative investment capabilities really make them the ideal partner to be on our platform. they have the dna, they understand the adviser community. they've been doing that for decades with their traditional business. and now with this additional added alternative investment capability, we're excited to work with them. >> how do you bridge these two cultures of sort of investing in private markets versus public markets, educating your clients, educating your advisers? >> yeah, no, this is actually -- it's a -- a huge part of this. traditional private alternatives managers would go into a pension fund. they know exactly what their cash flow liabilities are for the next 20 years. but you go into a financial adviser, you know, sometimes you have zero allocated, and sometimes maybe you should have had 0% of the portfolio -- 40% of the proeortfolio allocated.

the tip of the spear adviser determines what is for the client. these are ill liquid assets. number one it's education, we built an alternative device, cais has a great educations platform for advisers. we built a team of specialists who can sit down with advisers and talk about what's appropriate. the challenge is they put the client in the wrong vehicle, they will get in trouble from a suitability standpoint. they have to be really careful. >> how are you thinking about the future of what the typical or modeastern use modern portfolio is going to look like in the future where we only ever talk about 60/40. now we're entertaining the idea of some 50/30/20. we talked earlier. how are you thinking about that? >> i think the technology now enables people to manage portfolios to a goal or to a solution. so if you were doing a retirement portfolio, target dates were the first solutions in there. i think that naturally will be

added to have privates in that. as you get closer to retirement, you have less ill liquid assets in there. you get the excess returns early on and the benefit of compounding. so portfolios are going to be much more managed appropriately to whatever the end goal is with the risk and the timeframe of that end goal. >> of all the alts that we've been talking about here and that are being discussed in the ballroom behind me, what's your sense of which is the fastest growing part of it? >> well, there's about $10 trillion that's anticipated to be allocated to alternative investments over the next decade. as we think about as a platform we get to see the flow of the capital. where it's going now is predominantly in private markets, largely private credit, private equity, private real estate. but of course some of the more semi liquid and liquid strategies are also picking up steam, as well. it really is about a diversified portfolio of alternative investments, taking a portfolio

approach. that's why epi and i are -- jenny and i are aligned in saying education must be first. making sure advisers and clients understand the benefits and risks of including alternatives in the portfolio. >> i know you're doing your part, both of you are. appreciate you spending time with us. thank you so much again, great to have you on our program. jenny johnston, franklin templeton. next, the biggest movers into the move. pippa? >> one struggling staples stock is having the best day in a decade. the name to watch coming up next. discovering innovation today, helps drive growth tomorrow.

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just about 15 minutes before the closing bell. back to pippa stevens for the stocks that she's watching. >> hey, walgreens is summering after earnings. the pharmacy giant reporting a beat on the top and bottom lines and announced major cost-cutting measures including plans to close around 1,200 stores over the next three years. shutting 5 in fiscal 2025. the stock is down more than 60% on the year. and n phase energy shedding 9% after it was caught to perform by rbc. the firm expecting a slower rate of growth than the current consensus estimates suggest. that stock has shed more than 30% year to date.

scott? >> all right. thank you. pippa stevens. ahead, asml is dragging down the chip sector today. we'll tell you exactly why after this break. how do i keep my protection against covid-19 up to date? with a covid shot this season. you can get your covid-19 shot when getting your flu shot, if you're due for both, as recommended by the cdc. ask your healthcare provider and book at vaxassist.com

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the chips space. and phil lebeau looking forward to united airlines. michael, what's on your mind? what's the standout for you? >> well, scott, a proper shakeout at least at the index level and especially from the interday highs. it seems a few things moving together. one is this kind of re-inflation trade, the china revitalization trade did have a little switch-back and seemed to upset short-term crowded positioning. we do also as we're going to discuss, you know, semis looked like they were on the come back, and they were heavyweight on the in index. you have the overlay-up, and i mentioned this yesterday, what's a sloppy initial earnings reaction even though numbers have been good, outside the banks it seems like there's a little more room for disappointment or a reflex sell the news than not. all that coming together, i think after five straight weeks higher, and the market looking just a little bit short-term stressed, it has us in recent -- by the way, more stocks up than down. this is not a washout.

it's much more a little churn. >> how do you think we'll assess the banks now that they've all reported? you know, citi is an eyesore today, mike. it's down -- i was looking now -- from 5% in an otherwise reasonably good market for those stocks. >> yeah. citi is the one that always is held on the shortest leash. obviously has the biggest discounter to book value. in general i think if i'm looking at the macro message from the bank results, it's a positive. almost across the board, you can check off the boxes and say, you know, consumer credit, corporate demand, sales and trading, capital markets seem like they're moving in the right direction. the stocks did have a little bit of a run cominginto today. so i can see them wanting to consolidate a little bit here. in terms of what it means more broadly to the economy, for the markets, i think it's a plus. it's everything else where everyone assumes we're going to beat the published estimates and maybe that's already priced in. that's when we might have a lot more back and forth.

>> yeah. seema, i know it seems like it, but nvidia's not going to go up every day. maybe the culprit today was not nvidia at all but another chip name. >> yeah, that seems to be the case. asml earnings leaking early. and the story wasn't great. as 2025 outlook came in below wall street consensus. their ceo says while a.i. demand remains strong other market sessionments are taking longer to recover. they're seeing weakness in china. asml is one of the only companies in the world that makes lithography machines used to manufacture chips. nvidia, tsmc, apple, intel. one stock moving the opposite direction is wolfspeed, after securing $750 million in chip saked money and an additional $50 million from -- $750 million from apollo and investors. the ceo, aggrgreg lowe, saying production of capital will speed

up production. we are watching them surge but short interest at 31% in this name, scott. >> thank you. soma modi. phil lebeau, tell us what we need to watch out for more than anything else with united. >> scott, three things we're going to be looking for. first of all, did the airline see positive revenue per seat mile growth? we know it's improving as the industry is ticking out capacity. what are they seeing for holiday bookings? and with regard to the industry capacity, how much has come out of the system and what does that mean for fourth quarter? just a reminder as you look at shares of united over the last three months, what a tear they've been on since early august. the expectation is to earn 317 in the third quarter. tomorrow morning on "squawk on the street" don't miss the exclusive with united's ceo scott kirby. in a few minutes we'll have the q4 members. back to you. >> -- numbers. back to you. >> we'll see once those numbers across. thank you so much. mike, you know, i was struck by my conversation today with todd

boehly, who was as optimistic as i've heard anybody about the idea of animal spirits coming back in corporate deal making, m&a. and it's about to happen, maybe not today and maybe not tomorrow, but it's going to be soon. >> yeah. you had everything lining up in that direction. arguably you have for a while. seems as if we've had this huge kind of corporate capex boom. that is one way of companies expressing confidence in the future. of course, a lot of that is very much focused on the data centers. even in general, i do think that, you know, the next steps in all this are probably take advantage of extremely generous credit markets. the fact that everyone has a pretty inflated equity currency. and the fact that, you know, you have to figure out where you're going to sit in this kind of economy and transition. so i get it, it all does make sense. i don't know if it happens sort of in a straight line, but the makings are there for it. sometimes that means that's how you get a little bit of an

overshoot to the upside in a market. we're up five months in a row in the s&p 500. five weeks on the tail end of that. so you know, i think we've priced in good scenarios and a little more corporate action makes more differentiation among stocks. b of a talking about that today. that basically it's become a little more of a stock picker's market, as much of a cliche as that is because you have companies active on the deal front and others not so much. we'll see if that follows here. [ cheers ] >> we will see the markets go out red after the dow hitting an all-time high earlier in the session. tough day at the tech obviously with the nvidia rollover. we'll follow it, and we will see you tomorrow. that does it for us in beverly hills. into "overtime." that does it. let's -- that's the end of regulation. blackberry ringing the closings bell at the new york stock exchange. the we inspire promote network doing the honors at the nasdaq. majoav