going to vote out the senate banking share brown who hasn't been favorable to the industry >> he's ohio, am i correct >> in ohio we're seeing a lot of crypto spend in the presidential race kamala harris getting $12 billion from larson. >> a little her way. >> we have to leave it there and leave you right here thanks for watching "power lunch. "closing bell" starts right now. hi, thanks so much welcome to "closing bell." i'm scott wapner live from the new york stock exchange post 9 the winning streak for stocks, the potentially big obstacles that still lie ahead rising rates, the election, earnings, all looming large. we'll ask our experts how to navigate it over the final stretch. let's show you the final scorecard with 60 minutes to go in regulation. the yields capping some of the activity in the majors each is in the red as we begin this final stretch to see what yields are doing there's the ten year, 4.18

nvidia rising again. it's like a broken record, approaching 142, up near 3%. apple on more iphone optimism up as well. boeing is the biggest winner on the dow this hour. it hopes to end that machinist strike big decliners today include canada goose, which was cut to sell over at goldman sachs there's that stock down near 7%. it does take us to our talk of the tame, what could be the most volatile stretch for stocks and how to play these next couple of weeks. let's ask dan greenhouse, asset management's chief strategist, with us once again at post 9 it's good to see you again is that what we should prepare for, what could be the most volatile couple of weeks you have mega cap earnings and then, of course, two weeks from tomorrow you have the election >> listen, we should probably have a little more volatility, although it bears mentioning the vix is, call it 18, right now, which considering the stock market is making a new high is a

fairly high level. already you have some volatility that belies some of the historical analogies, if you will >> i have most commentary out there today is that we're still positive, right? we're still in the uptrend tony pasquariello at goldman, the inherently friendly interplay between growth and the fed. you cut out all the noise, is that what you distill it down to like he did? >> yes, it's really that simple. earnings are going up. obviously at a slower pace the economy is expanding at a somewhat slower pace although still robust when you put those two things together, that type of environment is positive for equities and the better question is not, should the stock market be going up? why is the stock market going up the question is, how best to play that, what sector, asset class, et cetera >> you say earnings are going up but then you couch it a little bit with at a slower pace, which is fair, estimates have definitely come down, but multiples are not really

expanding at a slower pace so you have the valuation of the market like 22 1/2 times, which is historically rich, but if you're telling me earnings are growth at a slower pace, the rubber meets the road somewhere between that, doesn't it >> the issue with the valuation argument, listen, clearly 20, 21, 22 times forward earnings is more highly valued than the equity market has traditionally been over time outside of a couple of episodes there's no doubt about that. and no one should dismiss that the problem i have -- >> except you right now. >> no, the problem i have with it, i'm not sure what i'm supposed to do with that and what i mean by that is, there was a point in time in the 2010s people were telling me 16, 17, 18 times is historically rich i wasn't sure what to do with it then either. valuation is one of those things -- one of those market observations totally worth being aware of, totally worth making, but outside of the extremes, call it single digits, eight, nine times, or extremely high levels, call it 29, 30, 31, 32

times. in the middle there, it's really difficult to ascertain which one of those metrics is worse than the other. is 20 rich is 22 rich is 24 rich you don't really know without the benefit of hindsight >> i think the point of discussing it and asking the question is to debate/discuss whether people who are still sitting in a fair amount of cash should get into this market now or wait because it's too expensive at a time where earnings expectations, though high, are coming in, and there are some calls that returns over the next few years are going to be kind of meager. >> so i saw the return thing -- the return argument -- but before that, do we know there are people sitting on large amounts of cash? we've been in the bull market not interrupted for 15 years or so, i'm ounding. we had covid in the middleage that scared some people out. i don't know there's a lot of people sitting on large amounts

of cash for fear of the market >> there was a lot of money over the last few years because of what the fed was doing with interest rates there obviously was a lot of money. >> $6 trillion, that's a lot of money. a, you need to scale that for something. and when you normalize that for, say, the size of the equity market it's not particularly egregious, put that way, $6 trillion not that much but part b of that conversation is, yes, there's a lot of cash, but does that mean there are a lot of investors sitting in large percentages of cash themselves i'm not sure that's the case >> i think people are asking the question, should i be more invested at record highs we're on a six-week winning streak the longest of the whole year. >> listen, i don't know if today, tomorrow is a momentary pause, but i'll borrow a phrase from joe terranova, you're supposed to buy high and sell higher that's an oversimplification and

a -- >> it's the title of his book. you get it >> you're welcome, joe >> thank you very much you're not deterred by where stocks are, the gains that we've had or the price at which you're willing to pay for them? >> deterred? no i would remind viewers this is a conversation that we, the royal we, have been having for two, three, five, ten years right now. the only way you make all-time highs is by surpassing a previous all-time high and often those come in bunches. the market is in a bull market right now. again, i don't mean to dismiss the concerns as if people advancing worries about geo politics or the price of oil or whatever it might be in any given day market concentration, i don't mean to dismiss these concerns they are worthwhile concerns with which we should be aware, but, at the end of the day, the most important thing driving stock prices are earnings and the economy, the single largest will be with growth and both are doing okay right now >> you think earnings will be good enough? because expectations have come

down by half for the current quarter as of where they were in july >> but it's not unusual for earnings to decline into earnings season, and then you surpass the lowered bar. we've seen this game for 100 years -- not 100 years but 50 years this game has been played. i think you needed some normalization, some beneath the headlines reasons viewers don't care about, you got it expectations call for 4, 5% eps growth you probably beat that by two or three percentage points. will have upper single growth. 5% or 7% is not the point. when you listen to the companies who have already reported, american express, not the best report the stock sold off -- >> the stock has had a massive r run. >> they had positive things to say, granted an upper income, citigroup, positive things to say about their exposure >> i'm not saying the

environment doesn't seem to be pretty positive, right, for the factors that tony pasquariello said, and i think a lot of people agree with, yourself included what about the backup in yields? when does that become a problem if it does and why is it happening? >> so let's answer the why first, because this is -- it's really hard to disaggregate why anything is happening. the first, you're having a backup in breakeven rates. people are not convinced that inflation is ffully beaten, whic is helping drive nominal yields higher there is something to the idea of all the trades, the treasury market might be one of the best, so to speak, in indicating what's going on. what i mean by that, without making anything resembling a political comment, the analysis that had been done indicate president trump -- >> we'll go over your tenses

later on i think people understand where you're going >> they get it the analyses that have been done are suggestive that president trump's policies are on its face equal, static scoring, worse for the treasury market. a couple trillion dollars more a couple trillion is a drop in the bucket no matter what. there's some element, i would argue, play that in conjunction with the growing likelihood or at least the growing belief that president trump has pulled ahead in the last week or two, that doesn't bode as well for the deficit and debt issuance and some of that is playing out in the treasury market. i caveat that by saying i'm making no comment about the validity of those comments just like they're playing out >> you don't want to make a political comment. i will send you a link on plurals. we welcome in our panel. good to have you here on the

east coast on our set. you heard everything dan had to say. what are your thoughts >> sure. so i agree valuation is a poor timing tool when it comes to the market when valuations are low, there's usually a reason, and those macroeconomic reasons tend to be something that happens investors just don't want to buy into. whether that was the pandemic or the financial crisis and we think a lot bit of a pullback in markets will be healthy, and i think those are going to be bought because a 5% correction here is kind of being expected with all of the volatility that's expected with the election i think people will buy that >> what would cause a 5% correction if i know the economy is good, it doesn't matter as much as i once thought it did being rate cuts, and we seem to be in a pretty good environment all the way around >> sure. i think sentiment could do that and we get a lot of the big tech

earnings next week if those disappoint similar to what we've had recently with some of the earnings being good but not good enough, you can just get a little bit of a pullback and then, again, with yields rising higher than everybody is expecting, that really plays into the long-term valuation argument again, the economy is strong, inflation is coming down, the labor market is strong there's nothing to sort of really push at this market, but sentiment could be the one area. >> are we nit-picking here looking for things to find wrong with a pretty good environment, or do we have some legitimate issues like a backup in yields for one? >> thanks, scott it's great to be here. i don't think we want to get too complacent when it seems like the risks are starting to dissolve away. there are oftentimes new ones looming. i do think consideration of if we get a pullback what would trigger that would probably be a

combination if that happens of some of the mega cap tech earnings or messaging about a.i. spending if that were to soften a bit, i think the markets would not take that well. a lot of the drivers have been predicated on a strong accelerated spending in that space. and the other thing is those long-term treasury yields. we think where we are now is fine, the mid-4% range is fen. if we get to post-election and greater fiscal spending looks like it's going to be on tap given election outcomes, more fiscal spending than already anticipated, we think that could push the ten-year yield up to 5%, a level of which in the past has given the market a bit of pause. but overall we think the backdrop is quite positive if we get a pullback it probably is a buying opportunity >> i tell you what, your firm has holdings in nvidia, apple, google, meta, amazon and microsoft, of the big mega cap stocks it's not like these stocks have

traded incredible into the prints except for nvidia microsoft is down 4% over the last month, not a lot of -- there's not a lot of action in meta or amazon either. it's not like they're running into these prints. maybe the bar is not as high as a result of that >> sure. and i think investors are really opening up to the fact we're going to get double digit earnings growth out of the 493 going forward, right i think the earnings estimates have started to come up a little bit as you longok out into 2025 and retuesday a little bit for the mag seven and have expose you're to the 493, again, with interest rates coming down it's a positive for them. >> what do you think >> i think we are getting a little ticky tack. the earnings are doing fine. the stocks of some mega caps have traded sideways

amazon stock is relatively flat. >> microsoft has been disappointing. >> obviously meta has been the best performer and now apple is breaking out into new highs. the rest of the market to the point of the 493, there is the -- these don't get attention on the network because they don't trade as much as the mag seven but the uranium stocks on the inflation reduction act and now nuclear is an acceptable energy source. the mortgage services are doing phenomenally well. we talk about the banks, but the banks are doing great. sl green reported occupancy back to 92%, all the worst fears at least in the short time are pushing higher >> they are but, i mean, at some point have they pushed too far i get it, financials have been hitting too high and some staple stocks are doing well, too

where is the value left in this market it's not like utilities are undiscovered at this point the best performing stock in the s&p year to date is not nvidia it's vistra. >> and constellation energy is great. not because it's a utility but the a.i. and the other ideas listen, i don't think -- when we go through names, one of the most important things you do, what is the market paying for similar companies in that industry, et cetera, et cetera when you say where is the value, nothing is particularly cheap per se obviously if you have a meaningful disagreement with forward estimates, that's a different story. nothing is screamingly cheap some things are screamingly cheap or some things are very attractive relative to other things >> i knew you were going to say that, relative not that it isn't a fair point >> it's the world in which we live >> isn't that bringing it back to where we started the conversation in the first place? you have a lot of stocks in a

lot of sectors up a lot. all-time heighs here, there, an everywhere it's good, of course you look at the price of some of these stocks and the valuation that they're trading and it's harder for some to make the argument you should buy them now. >> totally fair. the broad market and we can apply to individual stocks, when you're trading at 22 times, yeah, we can go to 24, 25. the likelihood is lower if you're at 14 to, say, 17 you can't count on multiple expansion at least now to the degree you could have previously, although i would caveat that by saying for ten years we've been told you can't count on multiple expansion. with that said, you have to go, where is the earnings growth to the point about the 493 again, where can i find earnings growth or an underappreciated story? that's what you're ultimately trying to do where are the names unloved or undiscovered, multiple expansion, maybe capital appreciation or capital return, i'm sorry, those are the stories

you're trying to uncover in the market when you take a step back, you're in a bull market. that's what you're supposed to be doing >> where do you find these opportunities? >> going back to the value comment, sometimes companies are cheap for a reason and you want to avoid those that are cheap for a long time and the companies that have done well and are at all-time highs are quality companies earning good free cash flows and you just want to stay with them you can pick up some value names here and there, but that's not where you're going to have long time -- >> you like industrials like honeywell, home tdepot and lowe's >> honeywell is a quality industrial company they're benefitting from aerospace growth home depot and lowe's benefiting from lower interest rates. there's reason to own them >> infrastructure, we were talking about it

powering data centers, the electricity grid, the a.i. buildout that's where you're focused. >> we've been recommending that to clients for almost two years now. it's performed well. but we think the drivers continue to be multiyear in terms of some of the spending from the fiscal stimulus that continues to be intact and continues to have a very long multiyear runway, and when we get the a.i. spending kicking in with data centers, with enhancements to the electricity grid, even with mega projects and construction projects happening, we think this is an area that, although it's run up a lot, continues to have a lot of runway ahead of it. >> we'll leave it there. yun yung-yu, thank you to pippa stevens now for the biggest names moving into the close. shares of significant inaum in the red after prior discussions ended last year, now talks are

reportedly in early stages according to people familiar and kenvue shares after starboard amassed a significant stake in the consumer health company according to people familiar with the matter starboard is looking for kenvue spun out of johnson and johnson to improve its share price for more catch starboard value ceo jeff smith tomorrow at 9:30 a.m. eastern scott? >> all right, good stuff, pippa. thank you. pippa stevens. we're just getting started up next, kristin olson on where she is looking to put stocks and bonds you're watchin"cg losing bell" on cnbc.

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we are back. the s&p 500 sitting on a 20% gain this year, but there's been more talk lately that the best returns might be outside of

stocks and bonds in the years ahead. joining me now post 9, kristin olson for wealth at gol goldmansachs >> to talk about alts has picked up because the money flow there has been unbelievable. what are you seeing? >> yeah, look, i would say our clients in wealth are incredibly excited about putting money to work in alternatives i would say they remain very much risk on and we're seeing a lot of flows into the space. >> i'm surprised that it doesn't look like it's slowing down even a bit. if you look at the folks that i've talked to and you say, well, what does the runway look like different interest rate environment, maybe there are more macro challenges around, we're in the third inning of this is that what you're saying, too? >> you have to put the blinders on, similar to equities, stay the course very much true of alternatives

our counsel to clients is you have to be committing to this asset class year in and year out irrespective of the macro environment. >> a good debate over what a portfolio should look like in the years ahead. 60/40 has been traditional 50/30/20 60/30/20 how are you thinking in this brave new world? >> our north star for our wealth investors is to get a moderate risk client to almost 25% of their portfolio in alternatives. that's a big number. we're on a journey because it takes a long time to get to that number that number will be lower for a high net worth client or a retail client, but we have big aspirations. >> how tough of a sell is it for some of your moderate risk clients on the asset class itself, trying to educate them we're just out at the cais conference in california and the word i heard more than

alternatives was education, how the institutions of asset managers are trying to educate clients on risk-adjusted returns you can get from alternatives. >> i would say for our clients, which are certainly ultra high net worth, it is not a difficult conversation and part that have is they've been investing for a long time and have seen the outperformance it has generated over long time horizons and so they recognize that alpha that exists in alternatives. as we think about opening the aperature, it is key as we try to explain the tradeoffs the outperformance and the return, but how do they think about the illiquidity risk in their portfolio. >> speaking of returns, obviously a huge participate of alternatives is private equity exits, realizations have been slow, to say the least i'm curious your outlook, and i want you to listen to what the great investor todd boehly sees

the market let's listen >> 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 the transaction business across our portfolio we're seeing lots of merger and consolidation discussions going on i think some of them are in their earlier days, but the animal spirits are coming back and people want to get back to it >> what do you think >> i it would agree with todd. >> really? >> there are factors for private equity in the next 12 to 18 months one, you have rates moderating that should open up capital mark activity you can see refinancing, dividend recaps to get capital back to investors. you have a lot of dry powder

these firms are sitting on that they need to put to work and we're at a moment right now where after two years of valuations moderating and multiples coming down hopefully we reach an equilibrium level where money will get deployed and transaction volumes will pick up. >> the area that gets talked about more than any other is private credit where, again, you hear golden age of private credit and things of the like p.m. and then the next question is, well, is it a bubble and i'm sure you've gotten that question or thought about it yourself what's your answer how would you address that >> we talked about deal activity needing to pick up, well, that's going to fuel more opportunities for private credit, to underwrite the debt that will be needed to fuel activity. and you're seeing this big transfer of bank-based lending to alternative credit providers. no, we don't think it's a bubble we think it's going to persist we see a lot of opportunity there. and even with rates moderating,

you're still seeing our clients able to get 10% yields today in private credit on the corporate side as we look forward, we see investors thinking what are the other areas i can get that type of yield and that type of risk return, asset based finance, real estate lending. >> i was going to ask you about the reduced expectation, if you wanted to put it that way of what the drop in yields means for returns, but you're still suggesting double digits >> look, we've had enough rate increases that the slight moderation we've had has not yet really affected the yields we see, although if rates continue to come down that will start to drop the total return to investors. >> what about hedge funds? >> look, i think hedge funds for our clients, one, we always think about after tax returns and for u.s. taxpayers that's been a more difficult place for our clients. but we like the role in a portfolio from the perspective of lack of correlation, and, frankly, as there's more volatility in the market and

that should provide opportunities for hedge funds to generate return. >> more liquidity, too, than the other assets which are highly illiquid >> hedge funds tend to have gatherly quarterly >> it's good to talk to you. thanks for being here. >> thanks for having me, scott kevin simpson is bk thacwi us to break down the key earnings investors need to be watching this week

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well, the market rally taking a breather. treasury yields are on the rise, investors turning their attention to the next string of earnings out this week and there are many joining me now to discuss is kevin simpson, capital wealth planning good to see you. that is the big story, of course, before we get to next week and the mega caps what's on your mind this week? >> earnings are going to be the key because we have a light economic calendar. over the next three weeks we have massive things to take a look at because tons of earnings, we have a jobs report, we get pmi we also get a presidential election and a fed meeting >> i heard about those things. what earnings are you focused on more than any other? >> specifically this week we have honeywell, verizon, two names in our portfolio that had been laggards the last few years. fair to say verizon has the world on fire for the past decade, but it's done well for the past 12 to 18 months it used to be the stock would go down, the dividend would go up

we're not expecting a killer quarter, a monster quarter i wouldn't buy it into the print. we're looking for guidance into next year. the same thing with honeywell. >> i just had someone make the case for honeywell >> the aerospace component is the most compelling. they're still a conglomerate so you have a little bit after spinoff which some are saying. i wouldn't be running into it but i think the long-term prospects are fantastic. >> industrials, how do you see industrials as a group that space has done quite well >> it's been nice to see that breadth in the market with industrials. we also own caterpillar, as you know that's been on fire as of late we removed deere about six months ago still happy with that decision we're bullish on industrials we like the caterpillar play >> fcx this week you go around and down the list of sectors, you're like, record high, record high, all-time high, and materials falls into that group

>> we saw a pop because of the china play that's mostly a copper play. incredible dividend growth they care about their shareholders, special dividends, share buybacks i don't expect the copper to be a tomorrow story but a long-term thesis >> how about the market in general? i asked greenhaus whether we should expect ramped up volatility i mean, the election feels like it's still out of view a little bit because we have to get through mega cap earnings first, and that's going to take the tunnel vision of this market then the election looms on the other side >> volatility should spike as we get closer we know that from '16 and '20. the volatility can continue into the end of the year because the uncertainty of what the fed will do next year, are they going to keep this heightening -- excuse me, this cutting cycle at such a hefty pace or take a pause with the volatility, we write a lot of covered calls when there's heightened volatility, we take advantage of

the volatility also as a modest hedge. i would encourage everyone to do the same thing if you own stocks and you're nervous, covered call writing is a great way to maintain your position, assuming it doesn't go to the roof, reduce your volatility >> what do you make of some of the calls out there? they look at the valuation of the market now and suggest that means you're going to have pretty muted returns over the next handful of veers whether it's a few years or a longer period of time there was an economist from apollo talking about that the other day. goldman sachs was talking about that sort of thing as well are you thinking about that? >> no, i'm not quite as pessimistic. he had a 3% annualized return for ten years. we've had two lost decades and it can happen. if you think about the covered call approach to investing, what better market than a range-bound market dividend growth, which is also our wheelhouse, we get 2% to 3% from dividends, 2% to 3% from

option writing, and now 4% to 6% before we get started, a 3% lift and we're at a 9% return, that's what the markets deliver >> dividend growers have not done well with interest rates as high as they've been so what happens now in an environment where we think -- think -- rates are going to continue to come down? >> we know rates are going to come down. it's a train you just don't know when it's going to hit you, but you can see the light in the tunnel. that's why our portfolio has done so well this year in anticipation of rate cuts. when you're talking about dividends whether it's high dividends, zombie stocks or dividend growers, rate cuts are a tail wind. it's not feeding crack to a crack addict but it helps. >> i did see one call that says the ten year is going to 5%. i don't know if it's going to happen or not. nobody does. but i'm not sure how many had rates backing up to the degree they have at a time when the fed did a jumbo rate cut >> it's pretty crazy, and you can't have rates going up and

stocks going up at the same time for too long i don't think 5% is in the cards. >> you can for the right reason perhaps. all right. we'll leave it there i appreciate your time, kevin simpson. up next, a.i. startup perplexity is kicking off a new round of fund-raising talks, the deails what it could mean for the a.i. arms race ♪♪ from this can't miss moment... ...to this hello new grandpa moment... ...to that whatever this is moment... your moments are worth protecting against rsv. if you're 75 or older, or 60 or older with certain chronic conditions, you're at higher risk of being hospitalized from rsv.

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all right. welcome back a.i. startup perplexity kicking off a new round of fund-raising talks seeking to double its valuation to $9 billion. i asked ceo just last week about the company's valuation and capital needs. >> there is a difference between companies like openai and us that is perplexity not in the business of really large foundation models. we're not taking our money and using it to build giant data centers like azure, like tens of thousands of gpu data centers or clusters so that is the biggest reason why the burn for those companies. we are much more capital efficient in terms of business >> all right kate rooney here with us now at post 9 to discuss.

all right. fair point but, still cost as lot of money to do what they're trying to do. >> they will take capital. $9 billion valuation is what i'm told is the new price tag for perplexity $500 million they've raised four times in just the last year an average company, it's typical you're going to raise money maybe a couple billion dollars even, go out, spend it and then come back to the well. the fact they've raised so many times, the people i talk to says indicates more investor demand and could be on the heels of openai raising billions of dollars. investors i'm told may be taking advantage of what is seen of this absolute sugar high when it comes to a.i. companies. it's partially that and then you have some of the copyright issues this is a big expense that you mentioned arvind said to you -- >> we asked him about that >> a.i., the bar is very high. that's a big comparison. yet they need to pay potentially

legal fees, the dow jones here is seeking damages today they had a lawsuit against perplexity for copyright infringement, free riding on valuable content and that's a big issue. >> we asked him directly about the issue that they've had with, i think it was "the new york times," where he told us, well, we hope to come to an agreement. it feels very fluid. the raise feels like it's a strike while the iron is hot to the point up just made they see what openai was able to raise and why not now? >> make hay when the sun shines. i'm told to expect more a.i. deals likely before the end of the year, but they're seeing the demand for openai and how exclusive that was as a funding round. a lot of people didn't get into that round and there's still money to deploy. talking to one person who said the lp, the investors in venture

capital funds, are saying where is your large language play, big a.i. play, and there's pressure, so perplexity is one of the blue chip companies a lot of potential issues but i'm told there is sort of a potential put because they have some big backers jeff bezos is on the cap table not necessarily in the new round but i'm told they're seen as an acquisition target the way they're underwriting it this company may get bought. >> good stuff. kate, thank you. that's kate rooney post 9. home builders getting hit hard we'll tell you what's driving that drop. back on "the bell" after this break.

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coming up next, disney revealing some ceo succession plans. the details what it means stju after the break. and don't miss a first on cnbc with qualcomm's ceo coming up at 4:00 eastern in "ot.

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all right, we're now in the "closing bell" market zone mike santolier here to break it down >> earnings have been reassuring, reactions to earnings have been relatively upbeat i do think it's orderly, this little pullback, from all-time highs. it is being born mostly by the leadership, cyclicals, banks, rate sensitive stuff, industrials and consumer cyclicals, we still have a market that is sensitive when it looks like treasury yields are starting to run. half a percent off

it's about figuring what this market has priced in growth, fed policy and yields. so far so good the market is not super overbought but people have started to grab for stuff that hadn't yet moved we're in a moment it feels like we're pricing in good stuff. >> see what happens if you get the ten year at 4.20 or over that level, does it make stocks more jittery than they appear to be >> the russell down a percent and a half today, a quick skim off the top. two steps forward, one and a half steps back type of move for that yield sensitive cyclical area i think it is all about whether we have escape velocity in yield or this upward adjustment that's coming along with. we have to keep in mind pretty good economic performance and tight credit spread. >> alex sherman, talk to us about disney, you're reporting

on the succession plan >> reporter: big news today, two-pronged news the news number one is that mark parker, the longtime disney board member and nike executive chairman, will be stepping off the board as disney's chairman and will be replaced by james gorman who just joined the disney board last year and has been more recently been running the succession committee mark parker will leave and likely focus more of his time on nike which has been struggling the second piece of news is it disney formalizing it will name bob iger in early 2026 that is later than what disney targeted based on my own reporting which was some time likely in the early to middle stages of 2025 it gives the board moore time to potentially name a successor to

bob iger we'll have to wait longer until we know who the heir apparent to bob iger is as disney's ceo. >> diana olick, tell us what's going on in the home builders today? inguess it has to do with rising yields >> it's not rocket science the average rate jumped 14 basis points this morning, and it's now 71 basis points higher than the day before the fed cut its rates. names like lennar drhorton were some of the worst. pulte taking a hit the day before it reports. this even though the big builders are able to buy down to get customers in the door and home remodelers went with them now these stocks are all getting hit despite the fact mortgage

rates are significantly lower than they were a year ago, scott. >> maybe the unexpected change, diana, thank you mike, how about that that's where you have to look, not maybe at the market overall but specialized stocks and sectors. >> yields, it depends where they've come from but where the home builder stocks have gotten to, which is -- >> far >> an amazing leadership group you have to be on alert for the idea it's not so long ago we were in a bad growth scare, and when yields go up and up think that it might thwart any kind of recovery in housing, that's something that can start to work against the data i think the market has been seizing on the idea economic numbers are coming in better than forecast, the index looks great. it's not as if, though, it looks like we're really ramping in terms of the absolute growth rate, still 3% it's very strong definitely not something that seems like it's going to get away from us >> nvidia up 23.5% in a month.

so it's been mixed performance in mega caps but this one is just, like, what in the world? >> it's taking its turn and has had a long rest. it peaked in june. it's really outperforming other semis. nothing special right now. amd was up marginally. semis are down on the day. it shows you it's a little bit of its own phenomenon. who knows how the animal sperdz will run through between now and then >> amd is up 1.25% broadcom is up five. in a normal month, 5%, that's just fine. in this market, applied materials is down four

taiwan semi, find the stocks you like in between. >> that's right. in that period of time you've had nothing but jensen huang going around saying demand is insane, he's showing up at every conference we have we're not going to be slowing down in terms of bidding for every nvidia gpu that's an interesting phenomenon it's almost like, hey, tesla -- i don't want to say tesla, gm and ford, but it's a singular story. >> how are you thinking about how the market is thinking about the election >> everything in recent leadership in yields and banks and cyclicals fits in with a higher odds of a trump or republican win the economy quickening its pace

and like the fed will cut into a decent growth case i do think it's trading along the lines of it seems more likely it's a different setup >> they're fired up down there, jon rahm is up on the podium i'll send it into "overtime. >> that's the end of regulation. ringing the closing bell at the new york stock exchange, aspen technology at the nasdaq the stocks finishing mixed, yields moving hiler ahead of a huge week of earnings. the only s&p 500 in the green. the action is just getting started. welcome to "closing bell overtime." i'm morgan brennan with jon fortt. >> a can't miss interview with cr