seven magnificent seven reporting earnings next week i'm expecting a very busy, volatile week in the markets >> absolutely. we have five of the magnificent seven companies reporting. >> where do you got to be? watching cnbc. have a great weekend, everybody. "closing bell" begins right now. thank you very much. welcome to "closing bell." i'm scott walker live from the new york stock exchange on this friday a new record high for the nasdaq and just in time for megacap earnings next week we'll ask our experts what is at stake, including jeremy siegel the professor will be with us. in the meantime, the scorecard with 60 minutes to go in regulation looks like that. there's the record high for the nasdaq tech and come services by far the best sectors today elsewhere, take a look at

deckers crushing earnings and that stock posting its best day since may, better than 10% capri holdings getting hammered after a judge blocks the merger with tapestry. that stock is higher on that news it takes us to the talk of the take tech earnings, the election, oh, yeah, fed meeting too. for what's at stake, let's welcome in professor jeremy siegel welcome back it is nice to see you and have you with us as always. >> thank you, scott. happy to be here >> how does this market look to you? >> it looks strong to me i mean, i don't see any really drop in the momentum i mean, i think it surprised everyone it certainly surprised me. it surprised the fed gdp is going to be reported next week and looks to be over 3% we're moving into the fourth quarter, i think, at 2.5 to 3%

rate and by the way, what that means, i think long-term interest rates are going to continue their up trend. i still think the fed is going to lower them but certainly not as much as they said or as many of us felt but, you know, it could be a quarter point or it might even be a pause if we get a strong labor market report a week from today. >> okay. so, let's -- there's a lot in there. and i want to take it, sort of, step by step the backup in yields has obviously made the market a bit uneasy how much more do you think they could back up? and as long as yields are going up for quote, unquote the right reason of the strong economy that you mentioned, is that okay for stocks >> yeah. that's okay for stocks it's actually better okay for the tech stocks and the big cap stocks than it is for the value stocks and the small stocks,

which rely more on the short-term borrowing so, the realization that the fed is not probably going to go certainly as low as we thought a month ago i think is one thing that has been keeping a lid on those stocks over the last month. >> okay. so, you expect two to three pauses and three to four rate cuts over the next six meetings. >> right >> are you -- are you suggesting in any way that we could get a pause before this calendar year is over because how strong the economy is >> yes yes. i definitely do think so and, you know, bowman, finally objected in the last meeting to the 50 basis points. powell had a record of no dissent. people might dissent if we get a strong labor market

report for the month of october, there's going to be a lot of people, a lot of those fomc members that are going to say, you know, maybe we should pause at this particular juncture. so, it's between a pause and 25. if i had to go, i would say 25 but i'm looking at next friday and of course probably even more important, looking at the following tuesday. we haven't yet talked about the biggest event in november, and that would be the election, of course >> what do you make of the positioning that's been around the election some would also suggest that the reason why yields are rising is because of a more inflationary agenda maybe from both parties but particularly if you're talking about a whole slew of tariffs and the attempt to re-up a bunch of tax cuts, if not institute new ones, obviously depending on what congress looks

like after november 5th. >> well, you know, loan rates can rise because of inflation, but they also will rise if there's strong economic growth they also will rise if there's fear of a big bump in the deficit. so, what really, you know, as important as the president selection is going to be a week from tuesday, what's going to happen in the house of representatives, we pretty well know the senate is going to turn republican the house looks very, very close. if there's a sweep by let's say the republicans, i think there could be a spike in long-term yields because then they'll say, hey, the christmas tree is open. whatever tax cuts the republicans want they could get. if the house flips to democratic -- and by the way, we may not know that for two, three, four days but if it does, that's a check and balance.

and i think the bond market would be -- take that more calmly than they would be a sweep by any party >> i mean, do we make too much of a outcome of a presidential race for what stock market performance is going to be because if you look historically, it's not like you can make a definitive case, oh, this party is better for the stock market than that in fact, in most cases, it's almost even if not breaking in one of what some would consider to be the unexpected way of the democrats. >> yeah. i mean, actually, you know, my historical data, they do better on it. but it's not cause and effect. it often is the economy is doing really well, stock market gets ahead of itself and then stock market goes down and people say, i'm going to shift to the dems dems take over in a low stock market and it goes up. you can't say that the correlation is causation when

you take a look back at the history. but i think it matters if there's going to be a sweep. you know, the betting markets are now between 40 and 50% of a republican sweep and certainly for taxes. don't forget all of trump's taxes expire on december 31st of next year. and the only way he could be assured of extending them is to keep the house -- to get the house of representatives, keep the republicans, keep the house as well as the senate. otherwise, they revert automatically on january 1, 2026 to the obama rates, which are something that certainly the republicans nor the capital markets want to happen so, yes, the presidency and the congress are very important. and what else is important is

that congress, in my likes at least, stupidly gave up their rights to set tariffs in 1962 by a trade tariff act, which actually gave the president unilateral rights to set tariffs. so, in a way, if trump wants to, he could set the 60%, 20%. i don't think he will. i think that's a threat. but a 20% across the board tariff is a huge economic event if it were to happen and, i mean, i think everyone in the market, in the stock market, will take note of it so, this election, perhaps more than many, if not all, is really going to be impacted by a week from tuesday's election. >> it's good to have your

insight on that. if you look at what's taking place within the market -- of course we set up our show today with not only looking ahead to the election but the megacap tech earnings, this trade has been revived, if you will. i think that's a fair word it didn't do that well in the third quarter, and now it's come to life. tech is up 3.5% month to date. how do you view the events of next week, these all-important earnings and that positioning itself in that area? >> well, certainly when you settle on the 30s times earnings, things got to go right. you have no margin for error in today's world, you've got to beat and sometimes you've got to beat by a significant amount to keep your stock moving if we review the year, we had this huge takeoff in january and february and remember everyone was talking about, oh, my god, this looks like the dot com boom. and that was a blowoff

remember we had nvidia go down 40, 50 points, and everyone settled down but it never broke the long run trend. growth versus value -- and it has been outperforming for 10, 15 years that long run trend is still intact we all talked about the rotation it happened really for about two months after that blow up from about february 15th to maybe the middle of april. but since then, you know, tech and large cap have righted themselves and we see the nasdaq again hitting new highs. so, that long run trend is not broken the only thing people should remember is when you're selling at 30 times earnings, everything has to go right. when you're selling at 12 times earnings, not much has to go right in order to make money >> because you -- >> look at tesla tesla came through at the first one. we'll see whether nvidia and the

others come through next week. >> because maybe we're rethinking about where interest rates are going to go, professor, including yourself, clearly from the answers to the questions that i've already asked you, does that mean that you think people are making a mistake to think that small caps are actually going to work now maybe they worked for a minute but now that rates are backing up, is it a mistake to position in that area of this market? >> i still think they're cheap enough that it's going to be a good, long run proposition the small and mid caps that are selling at 15. i mean, as we've often said -- i've often said, i mean, the big cap tech stocks have been -- you know, they've been bringing home the bacon. they've been making the earnings they have to make. but you can't make 20, 30% for a year forever there's a time when competition and rotation will catch up it's just not going to catch up

as fast as we thought when we thought that interest rates are going to go down, especially the fed moving interest rates down they were predicting that the markets were looking at maybe even 2% handle on fed funds at the end of next year and that would greatly help small caps and mid caps that borrow so much more at short-term than certainly the big cap tech stocks, which are really insensitive to the short-term borrowing >> let's expand the conversation if we could, professor, and bring in shannon -- of nb private wealth it's great to have you both with us shanna, i'll go to you first just expanding on what the professor said, i think people are a little conflicted with how to position in this market and we asked -- of j.p. morgan, their top strategist, today on where he thinks you really need to be. it plays right into the conversation we're having now.

i want you to listen on where you want to be and maybe where you don't and we can kick it on the other side of that >> to me, i'm not trying to be defensive. i'm not sure i want to be in the higher -- i would be with the quality growth trade that has been i don't want to say entirely dormant but sort of dormant for five, six, seven months >> it's an interesting thought shanna, i ask you because you like small caps. you like cyclicals >> well, it was a good quarter for small caps for cyclicals, scott. i think the revisiting of the quality growth trade is coincident with some continued concerns about uncertainty so, clearly the fed has remained incredibly data dependent. to the professor's comment, we get a strong jobs report that starts to put certainly that cut in december, perhaps creates vulnerability around that.

if you think about, you know, in september and october, scott, we were anticipating we would see some of this volatility and uncertainty. if you think about where investors have found safety or relative safety, it's been in the free cash flow, the balance sheets of these magnificent seven stocks you also talked about the potential for rates not being quite as accommodative think about how rate insensitive these names were in 2023 and think about also the fact that, you know, when you look at, you know, the potential for, you know, this republican impulse that we're seeing, think about regulation, think about the potential for buybacks to remain, you know, fairly economical for these companies to do. i think that's why you're seeing the rotation i think really it's about the rate story, but it's also about this volatility from the bond market and the election finally manifesting in the equity market you know, perhaps a little late in the game when compared with

historical precedent >> lothe backup in yields, a problem or not >> thanks, scott i think the backup in yields has weighed on the cyclical values there were two components. one was of course earnings growth had to expand and we're still seeing that. we still think q4 earnings will be driven both by value and tech parts and market cyclical and non-cyclical. the other part of the story had to be fed cutting rates so they could really realize that value expansion. the fed can cut rates, but to everyone's point, we do think that maybe not as much as initially anticipated. certainly what we've been seeing is not only strong jobs numbers but inflation that has not moderated yet to that 2% level if that gives them a problem in the future, we think there could be pauses in the fed funds rate

going forward as they get through their rate cutting cycle. that will create a problem not only for the rates moving higher but the value trait to work. >> professor, you look at the sectors that are down the most this week, and it really is squarely in the heart of good portion of the cyclical trade. materials are down almost 4% financials, which have done quite well, are down two industrials are down about 2.75%. i mean, is that where you would see -- obviously aside from the russell -- most acutely where the backup in yields would hurt most >> yeah. and i think that is the backup in yields. it even ripples through the big tech if you -- you know, we're at 423. if it goes up to 430, 440, if there's a republican sweep and all the goodies are there, i mean, i could see a spike maybe 450, 460 -- temporarily. i mean, listen, no one wants it to go so high. but think of the home builders

they always thought, oh, my goodness, fed is cutting mortgage rates are going to go down, going to have a big boom as we know, mortgage rates have gone up. they're not going -- they're up by almost 50 basis points from that september date when the fed did that whopping 50 basis point cut. so, you know, a lot of sectors have to be rethought in terms, especially those that are dependent on those long-term rates and the fed dropping the short-term rates about what the profits will actually be >> shanna, what's really at stake next week with five of the mag 7 reporting? we obviously got tesla out of the way. we're not going to get nvidia until november 20th. but next week is going to be real >> absolutely. and i think, scott, the challenge is that some of those names are obviously trading at more vulnerable multiples than others if you look at for instance alphabet, meta maybe not quite

as quote, unquote expensive as the other names there. you know, we've seen fits and starts in terms of that leadership coming back into the market on any given day one of those five or six names is, sort of, picking up the slack i guess, you know, the question really has become, when will investors start to question the amount of cap x that these companies are putting into the a.i. megatrend and being able to keep up, if you will, in this a.i. arms race i don't think we're there yet. i really think that these companies have, you know, justified their position that they still remain very active in terms of spending, becoming, you know, more asset heavy, if you will, in order to keep up with this trade so, i don't think we necessarily get a lot of pressure there. but to the professor's earlier point, as we look into 2025, i think that's where you see more vulnerability in terms of the ask from investors i don't think that necessarily comes home to roost in this environment, particularly given the fact there's some perceived safety in these names in this type of uncertainty.

>> you want to weigh in on that? >> yeah, you know, look, absolutely i think next week will be important for the markets. not only the mag 7 names that are reporting, we'll get that jobs report at the end of the week as well this friday is going to be -- next friday is going to be huge. last drops report before not only the election but the fed meeting that comes next thursday as well. and, look, the earnings growth is expected to be still somewhere close to 4%. so, that does weigh on services inflation as well. so, we're keeping an eye on that on the earnings front what we've seen thus far is we were expecting a modest 4% earnings growth this quarter. we're seeing a little bit softer than that. so, we're not getting the beats that we've seen in the first couple of quarters of the year so, certainly if the mag 7 names next week follow that trend, we could see a little bit of volatility in that sector. and without the value cyclicals to support maybe the free election volatility that we're all watching and waiting for does play out. so, we'll be looking for that as

well >> mona, what would happen if the professor is right, maybe that the fed doesn't pause between now and the end of the year but that they do and maybe they do more than once in the early part of 2025 is that a potential problem or not? >> yeah, you know, the good news is that the markets are starting to get wind of this. we've already seen, you know, there was a terminal rate of 3% at one point priced in we're now at 3.5%. and even that, there's a bumpy path to get there. so, i think markets are looking at hopefully that 3.5 to 4% as a terminal rate, which really means four to six rate cuts from here and we think that is still a feasible case even with a couple of pauses baked in really the concern would be, as the professor alluded to, is if we get perhaps an election sweep and a full-on, you know, fiscal stimulus policy that reignites or reaccelerates inflation and that we haven't seen yet although inflation has been bumpy, it hasn't been reaccelerated in a meaningful

way. if that occurs, that's a tail risk for now that would be a problem for the markets. for now, you know, the basic thesis seems to be intact, the fed cutting rates, inflation that's cooperating, and earnings that look to be growing double digits next year >> professor, you get the last point here top targets on the street are about 6,100. we're at 58 and change does that seem realistic that we could have a move to 6,000 if not beyond between now and the end of the year, just given the election and some of the uncertainty that's going to be around that and in the aftermath? >> i mean, there's a lot of uncertainty. if it's a clean election or looks like one side or the other is beat and there's no violence, i think that's a relief on the market the market doesn't like any uncertainty. even if a likely outcome is good, it lacks resolution. and we know -- let's certainly hope that it's a quiet and

uneventful -- it's going to be an eventful election but not any violence i think, however, again, a sweep by either party is going to -- i think it's a -- of what is the bond vigilantes. they're going to say, hey, guys, don't think you can do anything you want we're there to say that if you're fiscally totally irresponsible you're going to suffer and that's what they're for and we might see a reincarnation it's been kind of quiet for a long time. but that concern might come up a week from tuesday. in the meantime, even if the fed goes slower, a handle on fed funds means money market funds in the low threes, we've got a lot of good dividends paying stocks they couldn't compete with 5,

5.5. but they could compete with 3. and i think they're going to hold their own no matter what happens to yields. >> thanks, everybody good weekend we'll talk to everybody soon we'll see you again shortly. we're getting news on lyft what do we know here >> hey, scott. lyft is under pressure after the u.s. filed a lawsuit against the company accusing it of violations concerning unfair deceptive acts or practices in commerce the suit specifically says that lyft disseminated advertisements to prospective drivers that were deceptive about how much money they could earn. this case has been filed with the federal court in san francisco. we did reach out to lyft, have yet to hear back but shares are down now 2.5% scott? >> all right pip stevens, thank you very much for that to steve kovach now for a look at the biggest names moving into the friday close. >> shares of hca health care falling about 10% as hurricane damages drag on revenues for the quarter. the hospital operator warning it faces 2 to $3 million in

hurricane-related costs and expect results to be on the lower half of guidance for the rest of the year digital realty trust jumping over 9% as the trust reported record release bookings for the current quarter and raised the upper end of the forecast. shares up earlier highs but on pace for the best day since 2022, scott. we're just getting started here up next -- will tell us why he thinks stocks will rally into the end of the year. we're live at the new york stock exchange you're watching cl"closing bell" on cnbc. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley power e*trade's easy to-use tools make complex trading less complicated. custom scans can help you find new trading opportunities,

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i swear to god, kevin! -we told you to wait in the car. everyone in my old squad has xfinity. less lag, better gaming! i'm gonna need to charge you for three people. welcome back nasdaq hitting a record high today, as investors brace for a big week ofearnings in the election our next guest says concerns about the market being overvalued are misplaced and that a year-end chase should push stocks higher let's bring in warren pies of

314 research why shouldn't we be worried about where this market is trading? >> yeah, well, i mean, i think that everyone who's making a lot out of the valuations -- and we've been there ourselves -- are looking at this market compared to historical p/e ratios or historical valuation ratios and i just don't think this market looks like the quote, unquote historical market that you see when you study history if you start by looking at the composition, what stocks make up this market, over the last 20 years we really swapped in a lot of growth in tech for a lot of cyclical stocks like financials and energy so, you think about financials and energy, historic p/e ratio just by that swap, what we've done is hold the current composition of the market steady through history and then you could come up with a new p/e ratio.

that gives us a 21 times trailing p/e but we are at 26 times so, we're still slightly overvalued on that basis if we look out and think of other factors, there's some quality factors that i think make this market more attractive versus history consider return on invested capital. we're double where we were 20 years ago. margins are expected to expand margin expansions, you see out of the secular growers, those tend to push up multiples. so, when you add all that together, you know, our view is that it's kind of a fallacy to think that -- just take that straight up p/e ratio and conclude that the market is overvalued put all that together, i think we're fairly valued. if we get the analyst values -- of earnings growth, i think the market is set to go up above 7,000 by let's call it 2026. >> but i mean at some point, i mean, you say not you, but there's been this thought that you can tolerate higher

multiples much, much easier in a lower-rate environment and the thought was that rates were going to be coming in and that earnings were going to be able to sustain the multiple that the market was trading at but if we're thinking now that maybe rates are going to be higher for longer, doesn't that pressure the multiple at all and that doesn't even begin to address the earnings question, as estimates have come down. they're still good but they have come in. >> yeah, i mean, to me the two big risks when we look out for next year are valuations and rates. like you said, they're, kind of, mixed together a little bit. and i -- we've done a lot of work and i just went through our really high level thoughts on valuations but, you know, when i look at 2025, starting to think of themes for 2025, and one of them is can the u.s. economy deal with 7% mortgage rates because it's going to be difficult for, i think, the fed to move rates much lower so, it's a real risk you know, at the end of the day, though, growth cures all these

things so, one of the things we did is we looked at what are analysts baking in to the top line growth estimates for this market? it's like 12.5% out through 2026 you can basically run that against nominal gdp and it equates to 5% nominal gdp environment. so, you know, if we can hit those growth targets on the economy and on the top line, ultimately that's going to power this market. even if multiples compress a little bit, we should have very solid returns out through '26. >> what about next week? how are you looking at these reports? >> i mean, i think that the market's going to do whatever it does here in the short term. i'm sure that, you know, there's -- i think we're going to be just fine, to be honest. you know, i think that these mega cap tech stocks are going to be just fine on their earnings i think the real risk hanging out in front of us is the election i think you're starting to see the bond market position heading

into the election. you're seeing trump take over in the odds so, yields are back up and that's where you're seeing jitters in the stock market. so, my playbook is i think it's very likely to get chop and down side between here and into the election and probably in the days following the election as well but i think that the ultimate dynamic underneath this market is a chase we talked about this you and i had this conversation last december is that everyone was way too bearish on this market heading into the year and that when the market took off heading in the beginning of this year, it's created this chase dynamic. and everyone's behind. all those people have been behind this year have to chase the market into the year end, in my opinion >> what happens? i mean, the market seems to be drawing almost as a foregone conclusion if harris wins, what kind of unwind do we see in certain trades that have been put on because people are believing what betting markets are

suggesting, although, you know, those may not be the most accurate places to look either >> yeah, i mean, i try my best to stay as objective as possible and when i have conversations with institutional money managers, which is our clientele, i can tell you the big concern out there is a blue sweep. so, i think if harris wins but we have a republican-controlled senate, which i think is highly likely, then the market is going to -- i think cyclicals come off, small caps come off, rates probably come down a bit, and the playbook's going to be buy high quality tech. i think trump is the nominal gdp candidate. if we do get trump and a red sweep, you're going to have a cyclical pile on if you think about what can happen with rates, i think you could have indigestion at the first part of that realization that trump's going to win, and then all of a sudden everyone realizes, yeah, nominal gdp is going to be really strong, so

let's buy this market. that's how i see it, with harris and a republican congress or at least divided in some way, i think it's more or less status quo going forward. >> all right good perspective there appreciate it. we'll see you soon, warren pies. up next, nick is back with us why he is forecasting serious strength in the tech sector next year back after this break.

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nasdaq soaring to an all-time high today getting a boost from megacap the trade has been on a tear during the bull market nasdaq seeing a 66% rise my next guest says that's a positive sign for the sector joining me now, nick coe las. welcome back this is about momentum that's going to carry us to a positive year three >> yes, it is. if you look back to 71, you'll find ten instances where we could have had a third year of a bull market. we just had two, so the question is are we going to get a third and six of ten times, nasdaq continued to rally in four of ten times, it didn't. the overall churn is 4.4% so not awesome, but it's entirely due to the four losing years, which were '84, '87, 1990 and 2011 you'll recognize the '87 crash,

the '90 invasion of iraq -- garden variety tech recession. when you take those numbers out, the average return is 13.3%. so, as long as we don't have any of those big catalytic events, momentum is set to continue. we should have at least a 10% return if not better >> but doesn't this cut both ways though? i mean, if you -- i'm looking at these years and, you know, of course you have those bad average returns and we have crises during those periods of time but you could say i think now, well, have we pulled forward a lot of gains we haven't had a crisis. we've had the opposite we've had exuberance over a.i. so, given the strength of the last two years, that doesn't mean that the third year could be a disappointment? >> you know, i think if we had seen nasdaq really underperform say after june, we know we had a

big rip in the first half of this year. there's been a lot of healthy rotation since then. and nasdaq's only really begun to get ahead of steam again in the last month so, it's not like we've had just a uniform monochromatic nasdaq rally for two years. other groups have taken leadership occasionally. even small caps have taken leadership occasionally. i think that's a healthier market than we had in the 1990s where we all recall it was tech that worked on the run it's not this kind of trade. >> over 12 months the nasdaq is up 45% >> yes but if you go back and look at the three-year returns, including the '22 bear market, then they're much more modest. down in the 20% range and much more normal on a compounded growth basis we've got to take the good with the bad. and then based on that, the nasdaq still has room to run the valuations are huge. there's no doubt about that. but valuations are notoriously

bad indicator of one year forward returns. so, we've got to take that off the table and think about momentum and think about catalysts, more negative catalysts than positive catalysts. >> how are you thinking about volatility coming into the election and beyond? we're at 20 now on the vix how should we look at that >> we get a lot of questions from clients on this point we have a standard playbook with volatility you buy the s&p when the vix gets to 27 or 35 27 is a good buy signal. 35 is a great buy signal going back to 2022, if you bought the vix every time it got to 35, your one-month average return was 6.5%. so, for a trade, if you get volatility to really spike, which is entirely possible, we're looking for the vix at 27 and 35 and then at 35, especially it's very safe to buy the market for a trade it's going to feel awful at the time, obviously. but that's what the volatility and stock market returns always does >> nick, thank you

up next, we track the biggest movers into this friday close. steve kovach is back with us for that steve? >> scott, up next, one stock may have just hit the floor, and we'll reveal the name when "closing bell" comes back after this

all right.

15 from the closing bell let's get back to steve kovach for the stocks he's watching hi, steve. >> scott, shares are set to be rebounding after this week's lows after delivering better than expected -- previously warned medicaid challenges for the quarter. but medicaid members fell less than the firm expected also shares of mohawk industries leading to s&p lower as disappointing earnings the flooring company anticipating recent hurricanes to hurt sales. integral ad sciences looking into a potential sale. that's according to a bloomberg report citing sources familiar the media tech firm is reportedly working with jeffries as it explores options, shares jumping, let's see, 11% on the news, scott. >> that's a good bonus steve, thanks.

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and stay on top of the market. e*trade from morgan stanley we're now in the closing bell markets, senior markets commentator mark santelli here to break down the crucial moments, seema modi, phil lebeau mike, all right. let's look ahead to next week. that's when it gets fun, megacap. >> it does for as much as it looked like those stocks were going to take charge today and maybe carry the market, they're doing their part but everything else is having a hard time relaxing for as resilient as the tape has been, for as much as you expect megacap earnings to ratify the expectation that these are still great growth stories, we can talk about how the election is never the big swing factor

usually you get this tension release after it when we're this close to an apparent coin toss, market just doesn't want to fully give in to pure fundamentals. back to 2016, the s&p was down nine straight days into the election but in tiny increments. it was this weird, constricting thing. i'm not saying we're going to get something like that. but it's not that strange. even if you don't think the policy swing is the biggest factor, somebody else does that, to me, is why people are keeping the market a little bit shorter leash. >> vix not to say elevated but it's above 20. >> it's above 20 when the market is basically at a high 47 new highs credit spreads are really tight. and all the indicators suggest no real need for that much hedging. although bond market volatility has obviously kicked higher, and we do have yields pushing the multi-month highs again today. even if it's for good reasons, it still creates a little bit of

a stop and maybe take a half step back before you make a risky move >> seema, tell us about the chips today. >> coinciding with that alltime high for the nasdaq, semis are outperforming. nvidia hitting an all-time high. and even the semiconductor cap equipment stocks also pushing up after lamb research upped the guide earlier this week. taiwan semis regional said overnight that its arizona plant is making significant progress and in some cases performing better than some of the facilities in taiwan analysts say the sooner we get a u.s. foundry, the better from a u.s. security standpoint and for u.s. chip makers b of a says hyperseller cap x spend looks strong -- in excess of $50 billion annually. we know semiconductors are a prime beneficiary of the cap x

spend. i would point out the etf that tracks the stocks down just about 10% from its all-time high >> seema mody, thank you phil, tell us about auto notion and what it could mean for others in the space. >> we're going to hear from more auto dealers over the next week and a half or so the question is was this just an auto nation situation or was the third quarter as lumpy as they indicated. the street was expecting 438 they earned 402. they cited three or four factors behind the rough third quarter first of all, the lingering impact of the cdk software, hurricane helene, stop sale orders -- all of this sets up the question, scott. as we wet october sales late next week, what are we expecting to hear? i can tell you what the street's expecting right now, kind of lukewarm results at best this is an industry that did not

have a terribly strong third quarter. and i think that's what we'll find out when we get those results later next week. scott, back to you >> appreciate you, phil. thank you. that's phil lebeau we've got about two minutes to go since we're talking autos, tesla is the big winner on the week, obviously up 22% on this week. >> and it's holding it it's at a really interesting spot here in the 260 area for the stock even though it's well below its all-time highs, it's close to a one-year high it runs counter trend very ofte to the other ones. you know, the mag 6 as opposed to 7 but that one has had a big relief trade everything else i think is hanging in there in terms of nobody wants to get too negative on the big names they reset lower relative to the rest of the market the cyclicals, which have been core leadership coming into this week, we have the regional banks down 3% on the week, industrials down 2.5%, and of course home builders off by 7% all of them off a very healthy

levels but it shows you just a little bit of a rethink based on where yields are going and just taking chips off the table in the economically sensitive stuff >> materials pretty ugly this week in fact, it's the weakest of the s&p sectors, down 4% >> yeah. so, again, it's one of those things, whatever did welcoming into this week is getting hit just a little bit. 5800 it's been a bit of a magnet for the s&p in both directions this week some are going to look back on it and say all we did at the lows for the week is we touched the september 30th level in the s&p and held above it i think the sum is nothing's changed about the trend but, you know, in the short-term it's getting twitchy. we understand in addition to everything else, jobs number coming up and naturally the election, earnings season is all out there in the next ten days

>> you have a great weekend. mike, thank you. we did hit earlier in the session a new record high on the nasdaq and how appropriate ahead of what's coming next week. megacap earnings we'll give the reports next week we'll walk you up to all of them i cannot wait for that well, that bell marks the end of regulation for the week forbes ringing the closing bell at the new york stock exchange tech in the drivers seat today with nasdaq hitting a intraday record high, first time since july, led by a pop for the chips. the dow finished lower by 260 points that is the scorecard on wall street welcome back to "closing bell: overtime." morgan brennan is off today. we're going to zero in on the nasdaq's record and get you set up for a major week of mag 7 earnings coming up, including