>> i don't want to end on a boring note but i don't think things are that complicated. the earnings -- it's a great earnings season, we will see more in the next 72 hours, rates are coming down, economy is strong, the election will be behind us. >> are you sure rates are coming down? >> slowly maybe, but the election will be behind us in a couple weeks so that's a big deal. >> thanks very much, chris, great have been you here. >> "closing bell" starts right now. all right. kelly, thanks so much. welcome to "closing bell," i'm scott wapner live from post 9 at the new york stock exchange. this hour begins with the first mega cap to report earnings, alphabet in just about an hour. 60 minutes to go in regulation, for the most part a mixed day, stocks did get a little boost on a strong treasury auction that took the edge off yields a little bit which is helping just a bit as well. take a look at home builders, they're weaker after d.r. horton's results.

there's poulty and toll also down today. ford's guidance a big drag on the stock and autos in general, gm and tesla lower. broadcom jumping on a report that openai will build its first chip with that company and taiwan semi. all riding on big tech's big reports. let's bring in dan greenhouse with me here at post 9. good to see. >> you thank you, sir. >> is that tee guys says this is a make or break week. is that how you see it. >> >> i feel we have had several make or break weeks this year and they have all made it, i expect this will be much of the same. obviously this is an important week, the jobs report on friday, although i'm sure much of that will be and should be discounted, but more pressingly for markets you get obviously large cap earnings beginning with google. i think the interesting thing with google is a lot of the mag 7 have done okay, apple have

done well -- >> not this one. not lately. >> not this one, that's right. it plays into the broadening trade. for google i think obviously they are arguably the most interesting from a macro standpoint of all of them, owing to the number of issues that they're dealing with, particularly regulatory and the threats to search. >> how high is the bar do you think given the underperformance this have stock? >> i don't think the bar is particularly high but i also think they better not have meaningful weakness in the search business. as i've said a hundred times i'm not a particularly large tech inv investor, but if i dough they better not have weakness in the search business then the broader markets do. that's an area everyone will be watching. >> the other area of the market that everyone has been watching is the treasury market because of the backup in yields. it doesn't -- it doesn't seem to be a huge issue yet for stocks, is that fair? >> no. >> and if it isn't, what is that? >> why would it be a big issue? why would it have been a big issue. >> the backup in yields.

>> the ten year is up let's call it 70 basis points from the fed meeting and the s&p 500 both equal in market cap weighted index are sitting effectively at all time highs. so that tells me -- forget my opinion -- so far it obviously hasn't been a problem. what's interesting is if you had told people on the day of the fed meeting the ten year will go up 70 basis points where are broad equities going to be i don't think many would have said all time highs. >> i think you could make somewhat of an argument for the broadening trade, right? i mean, it's a problem for small caps. >> i would take the other side of that. >> you think it's good for small caps? >> hold on. as i've argued all year long i don't think the broad nij trade means small caps. >> i don't think it does, either, but that's an area that has been hit with the backup in yields. >> sure. and deservedly so because of floating rates, et cetera, et cetera, but mid caps are basically at an all time high. as i've said a thousand times the average viewer cannot name fivestocks in the russell 2,000, you can name 1,000 stocks in the big cap.

>> the way people invest these days they're buying broad indices. >> sure. >> maybe stock picking less than they were so it's all relevant, it all matters. i mean, if you keep hearing about this broadening trade coming, hey, it's time to lighten up a little bit on mega cap tech and go to the smallest areas of the market now that we think the fed is cutting, the economy is still strong it hasn't played out that way. >> you said two things there. we keep hearing about the broadening trade and the other you have to go to small caps. i think that's two different things. my point has been and remains the issue isn't you need to go into small caps it's that other areas, other sectors, other industries, other cap sizes, particularly mid caps, can do well in a broadening environment. again, you've seen that. the market is at an all time high, google is basically flat, microsoft has not traded particularly well, tesla is pretty volatile but has been flat. >> but meta and nvidia have picked up the slack for those companies. >> without a doubt. if i had told you three of the six or three of the seven or four of the seven, i forgot the

exact number, would be basically flat all year, at least let's say flat since the spring where would the market be i don't think most people would say at all time highs. yet a number of other sectors, utilities, industrials have picked up the slack. you unique voe clee have seen the broadening, it hasn't come in this one area that people keep pointing to as if that is the only deafening of market broadening if the small caps rally. >> these come at an interesting time if you're trying to game out the market going forward. you do have that event called the election a week from today. >> we do. >> normally you would say the next few weeks of trade could be driven by what happens with the mega cap results this week for obvious reasons, but this time it's potentially different, you get the jobs report as you said but then you have the election. >> yeah. >> and the potential messiness around the election, when are we going to know the win. >> reporter: are we going to know on election night? >> you will not know on election night. i'm comfortable with that statement. >> i guess my point is the

market's patience might be tested in the next ten days. >> so to wade into politics for a moment you will not know election night. you will probably know within 48 hours with some conclusion -- some definitiveness who the president will be. the house races are going to take some time because of california and new york's reliance on mail-in ballots and there is a bunch of districts, upstate new york and some parts of california where it's going to take longer to count the votes. pennsylvania cannot start counting mail-in ballots until 7:00 a.m. on election day. statewide rules will drag it out but i think within 48 hours you will have a pretty good idea who the president is not to be. that's not to say there won't be events thereafter but i think you will have a good idea who the president will be. the tcga is an enormous overhang for markets, the inflation reduction act is an enormous hang. what happens with these policies hangs in the balance. >> let's focus heavily on

alphabet for a minute because it is the first of the mag 7s, the rest of the mag 7 that reports this week, i want to say tesla is part of that, fine, obviously for mega cap tech this is where it all begins. deirdre bosa is watching that for us today. i mean, i have key questions, i'm sure they are the same as the ones you're pondering and the market needs answers to, right? what are they spending and when are they going to monetize what they're spending. >> there's a lot of questions. it's a bit of an uphill battle for alphabet. tonight it will have to show investors it can shed light on its many legal battles, new competition in a gen ai world, spending and a timeline for returns on all that spending. last quarter, remember, the ceo said the risk of underinvesting is dramatically greater than the risk of overinvesting. over the quarter we didn't see any signs of that slowing. in fact, the nuclear energy deal suggests that google is getting ready to build out more data

centers into the 2030s. it is also the first hyper scaler to report earnings and could give us hints about how investors are feeling about the tradeoff between capex and returns. it could be becoming a double-edged sword for all of them. google, amazon and microsoft they're spending big so investors will worry about returns but if they scale back investors might fear that demand is falling so they have to thread that needle. interesting executive moves, too, this quarter we might hear more sound or color from on the call tonight. ash ken naez -- the key question, scott, as i know you know will all of these moves be enough, does it mean that alphabet google can move faster to compete with the scrappy startups that are right on their tail like openai and perplexity. >> how are you thinking about that? issues that have been raised by

very astute investors, the degree to which alphabet could lose market share in search to some of the upstarts and some of the other hyper scalers themselves. >> alphabet has had the -- arguably one of the greatest business models of all time over the last few decades, it's had dominance in search, it's been making billions, tens of billions, hundreds of billions of dollars in advertising. that is now all up in the air. this is one of the greatest innovator dilemmas we have ever seen in technology. i think the question is can google get out of its own way. it wrote the seminole transformers paper, it was in position to create chatgpt before openai did. as this race continues to heat up, become more competitive, move into the agent space is google going to be able to lead the way? is it going to be able to sort of potentially even sacrifice that existing amazing business for what's next? we're getting an indication that it is, but it's not going to happen all at ones. what we want to hear tonight is

urgency on the part of sundar pichai and his team. >> that's deirdre bosa. let's bring in courtney garcia of payne kplal management and brian bellski. your firm has exposure via etfs to this name. how should we be thinking about its importance coming into tonight. >> it's hugely important. the mag 7 there's been so much concentration with all of this excitement over artificial intelligence but you've seen since july it's down about 11% when you look at alphabet because there's concerns whether it's the regulatory concerns, whether they are looked at as a monopoly but when it comes to ai this is a bigger competitor than they had as opposed to like a yahoo and it's going to cannibalize their market share. it's a huge expense for them at this point in time. i think a lot of that has been discounted, why it's been down so much over the last can you please months and you're seeing

it's priced lower than historical averages when you look at the pd ratios which is why, yes, i think there's headline risk but you might be able to scoop this up as an opportunity. you might start to see rerotation back into the mag 7. a lot of money is rotated out. i don't think the trade is going away in the near future and especially if you see growth pick up, post election, you may see money flow back in. >> brian, you think too much is being discounted, right? too much worry is baked into this stock at this point. courtney, you know, said it perfectly and she's right about the historical average of pe, it's at 19, the five-year average is around 23. so it is trading now at a discount to its historical pe at least over the last five years, but you say it's overdoing it. >> yeah, we agree with that, especially from the discount perspective. stock is underperforming the s&p 500 by 200 basis points, up 22%, the market is up 24%. deirdre nailed it, though, can google get out of its own way,

number one and number two, on the regulation side, remember, this really was the -- on the forefront during the second quarter and really hurt the stock. the stock has rallied forcefully as of late and when we talked to our institutional accounts the number one thing that comes up is regulation, regulation, regulation. so i think they can, will and should be very clear tonight in terms of what the stumbling blocks are. remember, google is foundational technology for generation -- for gen ai and we think it's been there, it was the first one there and we think it's going to continue to lead overall. >> what about the idea that courtney put forth that there's going to be a re-rotation into the mega caps. maybe we are at the stages of seeing that now especially as you've gotten the backup in yields, if there is a bit of a more defensive posture coming into the market that's where it would show up yet again? >> i agree with that, and you said something amazingly interesting today on the halftime show when you said over the last three weeks -- >> say that again.

i didn't hear you. >> good job, brian. >> say that again. >> hello, hello? i thought that was really telling, scott, you need to talk more about that because when i go in to talk to accounts they are all nervous, worried about the election and are mad they've miss this had recent upside. what do people do to help courtney out in terms of what her call s what do people do when worried, they go back to liquidity. one of the most liquid stocks in the marketplace, technology names, they are the new consumer staples, we've owned google for 12 years in one portfolio. we think people will be rotating back into that until as dan says we are worried about election night. i think that will be the theme over the next week or so. >> you know, on the regulatory front, and this is not at all a worry for investors in the short term but if we use microsoft as a barometer here, microsoft traded well in the late '90s while the antitrust litigation was being pursued but bill gates said famously it basically took

microsoft's eye off the ball and he attributes some of those dealings with missing what became the smartphone rev revolution. >> i feel like microsoft shares did nothing for at least a decade if not longer. >> i think one thing to consider here is whether or not -- in the near term there is no threat of a breakup, but perhaps it does preoccupy management and if something else were to come down the pike, we've talked about how google seems to be behind the eight ball every time someone else comes out with something and google has to respond. maybe there's something there to the idea that they are a little busy as opposed to being more proactive. >> these stocks obviously haven't traded like a monolith anymore, they have avenue differentiated themselves from each other. but what about the idea that courtney said about a re-rotation back into this group, which has been leading again? >> i think a lot of it hinges on google tonight. i don't know whether people will rotate back in or not. as a nonlarge cap tech investor imperfectly fine with -- >> maybe you need to rotate in. >> not what we do.

i think a lot hinges on tonight's report. part of the problem again is that google is under attack on these multiple fronts and if they suggest that there's weakness here -- i mean, listen, deirdre and josh had a good debate on the show the other day about the entryway to the internet, if you will, and i think deirdre was arguing that google is how everybody was searched forever and josh's point was ultimately it's whatever apple tells them to do. i think there'ssomething there and, listen, chatgpt, perplexity, et cetera, are di minimus sources of search compared to traditional search in the moment. if we have that wrong and those other alternative -- instead of doing the search machine you are looking at the answer machine as some people called it there's a big problem for google and i think a big problem for the trade. >> what about, courtney, the idea that people are talking about now -- forget small caps, you don't necessarily need just large caps, mid caps, getting a lot of love. tony was sitting here yesterday,

goldman sachs said you want to look at mid cap stocks, brian will talk about that in a minute. do you like those? >> we do. you want to be properly diversified, there is a risk of inflation kicking back in, you're seeing longer term yields rising, we will continue to see growth doing well which could benefit large caps. absolutely you need mid caps in there. i think it's always going to be in the large and small cap space but they've been doing very well. >> i don't know why -- i don't know why. no one knows who is in this russell 2,000. >> we are not talking about the russell 2,000 we're talking about mid caps now. >> courtney correctly pointed out it's either large or small is most of the conversation and for the hundredth time nobody knows what's in the small caps, mid caps, abercrombie, a whole bunch of retailers. it's just ridiculous we spend so much time on small caps when mid caps are there at all time highs and doing phenomenally well. >> brian? >> dan, how to make friends and influence people. i don't think any small or mid

cap people will call you soon. listen, if you are a stock picker and you want to beat the index, small mid cap is a fantastic index to be right now, it's up 15%. we run a fund that's up 26% small, mid cap looking at the s&p 1500. you want to be before everyone else is buying. >> i think if everybody else is right you do. >> well, hold on, scott. dividend growth, remember, scottie, in the third quarter, in the third quarter, it was the first time in two years that the top ten stocks in the s&p 500 underperformed. no one said that was going to happen, now we've seen this near term rotation as courtney keeps talking about but i think if you want to invest you want to be positioning for what's coming and what's coming is a broadening out, a normalization of returns in a more normalized market includes all the stocks in the stock market and i think that's where we're going for the next three to five years. >> normalization of returns, i have some people over the last

couple weeks talking about lower than normal returns over the next couple years at least because where valuations of the overall market are, then you have the prospect of higher for longer interest rates because of a hyper focus which might come on the deficit. >> yeah, i mean, i do think there are concerns when it comes to the deficit, what that's going to mean for growth in the long run. short term you are seeing nominal growth is expected to be increasing which is a positive for the markets. if that's the reason that yields are rising it is going to be a positive for the stock market. i am not of the belief we're going to see muted irns returns for the next decade. there have been calls out for that. i think there may be a change in which areas of the market that's going to happen in. as much as we're in the mag 7 i don't think i want to be chasing returns. i don't think they are going to be the same outperformance the next decade they have in the past but the overall markets might be a change in leadership but i think they will likely continue. >> do you want to weigh in on that issue, too? >> sure. that's why i'm here, to weigh in. >> do you feel like we are sit up for below average returns

over the next, i don't know, three to five years sfl. >> i got a chance to take a look at the goldman report and a key hinge on which they are making this argument is the level of concentration in the market. and the idea, as any number of people posited is if the mega cap tech names can continue to grow with the rate they had been growing which almost surely is what's going to happen that mathematically will depress the broader index and there's only so much lindy and oneok can do to compensate on the other end. if you do have a decline in those names it's going to be trouble. is it going to last ten years? is the annualized return going to be 3%? i don't know. those are obviously with the benefit of hindsight often in the accurate. i always refer to the new normal when we're supposed to have below normal equity in the 2010s and they were above. if something goes wrong with the ai trade and you have all of those stocks sell off in a meaningful way, 30 to 40 times

down to 15, 20, 25 times it's going to be hard for the broader market to pick up, but for investors over the long term which is not what i do, but i'm sure a lot of the people courtney talks to are going to be concerned about this, for investors over the long term that will be a phenomenal buying opportunity. that money and cash flow and dispersion will rise to a greater degree and you won't be solely reliant on seven names to generate returns, you will have 107 or 207 names. >> brian, you sound like you patently disagree with any calls we are going to have below average returns in the next few years because of the price the market is selling at. >> listen, scott, i actually agree with the premise -- you are talking about constance report at goldman sachs -- >> i didn't say -- i didn't say whose report it was. i mean, he suggested certainly that, but others have, too. it's not like he is by himself saying, hey, you could have, you know, below average returns moving forward because the market is very expensive and there are some other issues that need to be dealt with.

>> well, remember, valuation on the market side is one of the worst predictors of future performance. and this premise of this math makes sense and it's common sense. again, we have to normalize which has been our broader theme. what are the normal returns? let's talk 10 to 12% equity performance, 10 to 15% earnings growth, 3 to 4% ten-year treasury. i believe that more money will continue to come out of cash, private equity and fixed income into equity, scott, because we have the best market in the world, the most visible market in the world and the most discernible earnings in the world and i think rotations continue to come back to the united states and that's why we're going to continue to outperform. >> court, i will give you the last quick work. >> i think this is something that you want to make sure that you are properly invested and stay diversified. there's a lot that can change. we have the election next week. we're going into the year regardless of the election where profits are expected to acce accelerate, gdp is growing, the

labor market is strong. all of this is leading to a good end of the year and i think you want to make sure you're well-positioned. >> we will leave it there, everybody. dan, courtney and brian, thank you very much. we may have you back now. he was on the fence. we will have to see. let's send it to pippa stevens for a look at the biggest names moving into the close. >> shares of tenet health care on track for their best day in four years after they raised their guidance for the rest of the year off the back of strong inpatient volumes for the quarter. the company saying it expects demand to continue through the rest of the year. and shares of d.r. horton are falling after the home builder reported earnings below expectations, the company saying rate volatility are causing some buyers to stay on the sidelines especially in the near term, shares down 8%. scott? >> all right. pippa, thank you. pippa stevens. we are just getting started. shares of gene dx surging. take a look at those shares up more than 40% in today's session

alone. and later much more on what to expect from mega cap tech earnings this week. we're live at the new york stock exchange, you're watching "the bell" on cnbc. leo! he's there when we wake up, he's there when we leave, he's there whenever we come back home from school, he's just there always. mash it up doofus. ever since we introduced him to the farmer's dog, his quality of life has been forever changed.

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shares of gene dx soaring 40% to a 52-week high after reporting q3 earnings which beat expectations. the company seeing its first profitable quarter in its history, raising full year guidance as well. joining me at post 9 is the gene dx ceo. nice to to have you on our show. i'm looking at an analyst report which says you guys knocked it out of the park, reaches osh bits, achieves profitability ahead of schedule. they have a $95 price target, we saw what your stock is doing today. how did you do this? >> so i think what investors are

realizing is that you can drive really good patient care and drive is really good business and be able to achieve profitability all at the same time. i think for many years there's been this tension between can you put patient care at the same level as profitability and we're proving day in and day out that you can. >> for those who don't know anything about the business, what are your primary objectives? >> most people don't know gene dx has been around for about 24 years. we were spun out of the national institutes of health and the mission really was to diagnose any genetic disease as early as possible using information that resides within each one of us, a gi inappropriately sequencing product. we go deep into the genome to be able to identify whether or not there is an underlying cause of disease. we're able to clearly and definitively put a diagnosis on that and in the majority of the work that we do this is for kids

with rare diseases. think about epilepsy, think about children who are having seizures, think about autism, kids who are missing milestones. so we're able to really go in and provide a definitive diagnosis within just a few weeks and we're able to do it affordably. >> are you exclusive in pediatrics? >> so today our main focus is in pediatrics and the reason for that is one in ten americans has a rare disease, half of them are children, and today they go through a diagnostic odyssey that is about six to eight years before they get the right diagnosis. which is really unconscionable. we can provide that information within weeks, if not days. so we are trying to solve this really devastating health crisis for the children and for the families that are supporting them. there's a higher rate of depression and anxiety for the kids, there's a higher rate of depression and anxiety for the parents. so it's a devastating family health problem and we have the

technology today to be able to put an end to those diagnostic odysseys for so many. >> the word on the street is that you free focused the business, that you went from thousand us and thousands of tests essentially down to less than a handful. is that correct? and why did you make that transition? >> so interestingly gene dx was acquired by a couple which had gone public. i became ceo of the combined entity in the spring of 2022. at that point in time market sentiment changed dramatically from growth at all costs to profitability really is what mattered to investors. so the board gave me a clear mandate which is how do you make this company profitable as soon as possible. we actually looked across the entire portfolio of tests from the parent company as well as from gene dx, shut down all of the business lines of the parent

company because they were not showing the strength, they were highly commoditized markets and what we had in gene dx was a very differentiated product with a market leadership position 80% of whole sequencing comes through gene dx. we have a competitive advantage that's unparalleled and this open runway to be able to help an ever growing number of families. >> when you talk about the ever growing runway, how big is the market? >> we think about the pediatric segment as a $3 billion market twunt. $2 billion in the outparent pediatric setting, so think about a child who has unexplained symptoms as a parent you're taking that child to a pediatrician, you're being referred out to a specialist and that's where we're able to intervene and provide a diagnosis. the other billion dollar opportunity is in the nicu. genetic testing is woefully

underutilized in the nicu setting. only 5% of babies have a test so we're going in and are able to diagnose within five days and be able to move that baby out of the nick u. and hopefully a healthier path. >> let me ask you lastly, it's been the topic of the year in the markets, it's artificial intelligence. i'm curious how you use it if at all to analyze the data from the testing you do or interpret it as well? >> absolutely. ai is helping us today really streamline and automate a lot of the processes that we have from the moment that a sample enters the lab to when we get a test report out to a patient. so we're just in the early stages. we think that's going to continue to drive massive efficiency for us as we continue to grow. >> yeah. i mean, it's the area that people are talking about big for ai, health care. thanks for being here. interesting story. we will continue to follow the stock. katherine, thank you. >> thank you. up next we're getting you set for alphabet the earnings in

overtime. shareholder doug clinton standing by, what he's watching for when the results hit the tape. back with "overtime" right after this break. (♪♪) in life, i'm reminded that it's not about the destination. it is truly about the journey. (cheering) (♪♪) (♪♪) (♪♪) (♪♪) (♪♪)

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this is how business goes further with t-mobile for business. the moment of truth for big tech this week. alphabet kicks things off top of the hour in "overtime" but there is a busy calendar. tomorrow, thursday as well with amazon and apple. concerns around capex and ai monetization weigh on alphabet's shares. let's bring in a shareholder,

doug clinton, founder and ceo of intel gent alpha. good to see you. >> likewise. >> what's on your mind most? what do we have to do to get the stock moving again? >> they have to get the revenue picture right. the street is looking for 12, 13% annual growth for revenue. that has to happen first. then the second piece of it, scott, i think is more commentary just about what they're seeing in ai. i think you look at the last couple quarters for google the thing lacking in my view is more information about how customers are really using this search generative experience they've built into search so far and how that competes with new platforms like perplexity. >> okay. so you think there has not been enough information for shareholders like you "on the money" zags of the spend and the products which they have. that's what you're saying. >> that's right, both engagement and monetization. how often are customers engaging with these products? we've seen reports where it's been 7 to 10% of queries, hearing from google how that's

trending, how they expect it to trend and ultimately how they monetize it would be helpful. >> i mean, i think they're going to be the only of the mag five who are reporting this week who are actually going to have a decline, albeit slight, in their capex. it's still going to be up 50 something percent year on year, which is kind of the conundrum. it's like you have no choice. the hyper scalers have no choice but to spend, especially when you're talking about the prospects of maybe losing market share in their bread and butter, you know, whether it's microsoft or some of the upstarts like perplexity and whomever else. >> for us we've described this as a pescalian wager for the mega caps. you have to believe in ai if you are one of these mag five companies you have to invest because the down side if you miss it, if you miss ai, you don't invest, you get it wrong, it's catastrophic. google is no longer google if they don't invest as much as they can here. >> the bar is highest this week in your estimation for whom? >> probably meta.

if you think about how the stocks have reacted for this group of companies, meta has had such a great year, we're looking for kind of 18 to 20% year over year revenue growth. it's a big company. i think they will be fine but i think that's the one where the bar is really high. microsoft i think the bar is a little lower. i think apple is derisked. >> really? apple shares have had a nice move, though. >> they have, but i think that what we've seen from some of the reports on apple intelligence it's been disappointing. >> it's a little early in fairness, isn't it? >> we knew this. if you follow the apple story we know that really the big components of apple intelligence are coming next year. they are not in this first rollout at 18.1 for ios. i think that the combination of some of these disappointing early results, iphone numbers have been coming down, i think that they are in a better position to have an okay quarter and be all right. >> we do need clarity on the iphone numbers which seem to be the focal point of the debate. what about the broader idea put forth at the top of our program today that the mega cap trade is

back and it's going to be back for a variety of reasons. do you believe that? >> we are still believers in ai broadly so i'd start there and i think the best way to play ai is through still maechb of these mega cap companies in the public markets. we look at our portfolio, for example, in our egf, ai is one of our key thems we look at, tsm, nvidia, google and meta are top ten holdings in that portfolio. holding these companies makes sense. >> no one would dispute that is correct it's the degree to which they're going to lead the market in the handful of months that lie ahead. right? after taking a bit of a back seat in q3 feels like that trade is reemerging. >> i think it is and the reason i think it will keep up is i think ai in general took a back seat in q3. people were sort of digesting and questioning where is the value? we keep getting the question when are we going to start seeing the value. i think companies like meta are

starting to tell a story about the value they're seeing applying ai to their company, to their business, with better engagement and better monetization. we're getting that value story, i think that's why it can start to work. >> you have taiwan semi and broadcom in various holdings, etf or deepwater holdings. today's news i'd love your reaction to it, it seems like an nvidia take all world. today's news with openai, you know, doing its first chip with broadcom and taiwan semi suggests that there is at least the entertainment of competitors to nvidia, maybe not in a grand degree and maybe not today, but there are other players who want a piece of an available pie. is that fair? >> i think it is fair and the way we've characterized this, scott, is if you are an ai company worth over $100 billion you have to build your own custom silicon. openai falls in that category,

google has done it with tp uchlts, meta and amazon is working on it. if you think about that reality that these companies do want to create their own processors, who benefits, it is broadcom to design the chips and ultimately tsm to fab them. >> will you be watching -- will you be watching things like tonight especially as it relates to capex since we are talking about nvidia which doesn't report until november 20th so you have to wait three and a half weeks, any capex numbers out of alphabet are going to immediately be thought of for nvidia. you can't have necessarily a big decrease in capex for any of these companies if you are nvidia major bull, right? there is a read through, isn't there? >> there is and i think even more important than what the capex reported numbers will turn out to be this week is their guidance, how they talk about capex going forward and going into 2025. i mean, with he expect these companies to continue to boost their capex spending probably to the tune of high teens, maybe 20s, even 30% in some cases.

hearing that commentary is important for nvidia. >> thanks for being here. doug clinton with us. up next, tracking the biggest movers into the close, pippa stevens is standing by with that. >> one retailer is falling out of fashion with consumers and investors, the name that's down double digits coming up next. ppstenr inhe.eg re pia evs.

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we're 15 from the bell. we have a new all time high for the nasdaq going on right now, 18,746 and change. that's the new all time intraday high. we're about 100 points ahead of the closing high, too. we will watch that for the remaining 15 minutes this have program. in the meantime we get back to pippa stevens for the stock that she is watching. >> scott, ford shares are falling after guidance at the low end of its earnings forecast for the year. that's overshadowing a slight beat on profit and revenue for the quarter. ford cfo telling cnbc higher warranty and inflationary costs weighed on results. shares of crocs are plummeting after the footwear company lowered guidance due to weakness in its hey dude brand. crocs is expecting revenue to grow 3% for the full year compared to a prior guide of 3 and 5%, the stock is on pace for its worst day in more than four years down 19%. >> all right. appreciate that, pippa, thank

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merciless chaos. quick programming note, cnbc will be live all night long on election night. we will have the results as they come in. reaction from the biggest names in business as well. all starts 7:00 eastern from right here at the new york stock exchange. coming up next, alphabet, amd, chipotle among the big

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with powerful, easy-to-use tools, power e*trade makes complex trading easier. react to fast-moving markets with dynamic charting and a futures ladder that lets you place, flatten, or reverse orders so you won't miss an opportunity. e*trade from morgan stanley >> announcer: the market zone is sponsored by e-trade by morgan stanley. trade commission free today with no account minimums. all right. we are now at the "closing bell" market zone. mike santoli here to break down the crucial moments this have trading day plus two earnings reports we are watching closely. kate rodgers on chipotle, seema mody on amd. mike santoli, let's pick up where we left off, this new record high for the nasdaq heading into these big reports. >> you know, it's been a long wait which i think is a net positive, it hasn't been click to go new highs as the broader market has been. the nasdaq 100 which is really

the kind of mega cap concentrated version is half a percent below the july peak. again, it basically means it has reset lower, cooled off smard to the overall market. it's coming back into some kind of an equilibrium. you probably have mostly reasonable expectations for companies going in. alphabet you were talking about it, on a relative valuation basis it's never been cheaper versus the s&p. if we're going to anchor to something like that. but it's all probably a constructive thing. i think the broader market is in this kind of churning and waiting around phase, you know, you had two two to one negative to positive stocks today in the new york stock exchange, we're pretty much flat on a month to date basis on the average stock so we're resting -- again, i keep talking about pockets of speculation, trying to either maneuver toward higher yield story and a reflation trade and

or red wave next week. >> kate rodgers, to you on chipotle. aside from the numbers, analyst community is going to have to get used to a new voice on the call as well. >> yeah, first call for scott boatwright. analysts are looking for eps of 25 cents on revenues of $2.82 billion for the same quarter, same store sales expected to increase by 6.3%. the company reports since brian niccol reports from starbucks and they will hear from scott boatwright, overseeing the tech pipeline that has helped propel chipotle to recent success. more about how the brand is faring with consumers, remember, it had been gaining in recent quarters with all income cohorts, a rarity in this environment. it's also been able to grow traffic as other brands see it fall. chipotle brought back smoked brisket this quarter, any commentary around that is key. the stock is up 30%. scott boatwright will joining us next hour to break down the

quarter and much more. looking forward to talking with him. we will bring you highlights as we get them. >> kate rodgers, thank you very much. so seema mody on amd. what should we watch out for? >> scott from brisket to chips, this is amd's moment to prove to wall street that while it may be way behind nvidia in terms of market share and artificial intelligence chips it's making inroads with the latest ai processor it revealed earlier this month despite market skepticism following that announcement. the key question is whether or not the semiconductor raises it's 2024 ai chip sales from 4.5 to $5 billion that would have a vote of domestic violence dense. the ceo has been defiant in her efforts to share market share from nvidia and win bigger customers am silicon valley including meta which revealed exclusively using amd's for its 3.1 language model. the stock down 28% from the recent high.

don't miss lisa su. >> mike, back to you. heading towards the two-minute warning. the other event of this day was the treasury auction that was strong and it took a little bit of the boil off yields for a moment. stocks got a bit of a move after that. >> for sure. we've been waiting for that bid to come into treasuries because we've obviously gotten pretty rich on the long end of the curve. got some technical resistance which should be coming in right about now. a combination of a very mixed employment picture through the report and then the decent auction a takes that a little bit away from the edge. if you didn't know there was an election next week you would be saying cyclical stocks continue to lead the market, you obviously have the trends are all very positive, yields maybe are a challenge but still consistent with the soft landing. what you want is actually the fed to be going slow in an easing process and not necessarily rushing. so all of that's fitting together but you do now i think get a little bit of tightly

wound ahead of the election and as i say some areas of this market, you look at the mini blowups in payments with sofi and paypal today and expectations were a little bit off size and then home builders and you have a little bit more of a treacherous tape below the surface even as the indexes are doing nothing wrong as we go into the heart of earnings season. >> a lot can be soothed and solved with a good alphabet print that gets that stock moving again. that will be one of the key things to watch because it has been the underperformer of the group. >> it couldn't hurt. i think everybody expected a pretty blowout beat rate from companies this quarter because you did have expectations lowered by the consensus. you haven't really gotten that. it's been fine and i think in aggregate by the time we get through next week it will look like the numbers are coming through okay, but, yes, you want the big ones to start pulling their weight if you have the makings of upper divisions from the likes of an alphabet, $2 trillion companies actually do a lot toward contributing to that

s&p 500 earnings expectation. >> all right. we will get all of that obviously in "overtime." that report, nasdaq going to go out with a new closing high today leading into that pivotal report which happens in moments. into "overtime" with morgan. >> that's the end of regulation, peralta at the new york stock exchange, state street global investors at the nasdaq. a new record closing high for the nasdaq, first time we've seen that since july with tech outperforming as we get set for a wave of mag seven earnings. but the majority of s&p sectors those finished lower, that's the score card on wall street but the action is just getting started. welcome to "closing bell: overtime." i'm morgan brennan. jon fort is on assignment today. one of the most consequential hours of earnings season with alphabet, amd, visa,