ahead of. >> you exactly. tonight with my son. >> i hope it goes very well. thank you, steve, for joining us. steve liesman and that does it for "power lunch." thank you so much for watching. have a great weekend. "closing bell" starts right now. welcome to "closing bell," i'm mike santoli in for scott wapner. live from post 9 at the new york stock exchange. this make or break hour begins with the bulls stampeding through landmark levels to polish off the index's best week of the year. here is a look score card. further follow through to wednesday's post election bounce has taken the dow industrials past the 44,000 mark, the s&p 500 above 6,000 for the first time, you see the s&p up about half a percent on the day. a decisive election result and expected growth-friendly policy mix under a second trump administration has investors discarding caution, reaching for risk, the volatility index has melted to 15 or so from about 22

a week ago, although it is a little bit steady today. tesla shares, elon musk's closeness to president-elect trump, the stock up 7% on the week, 8, 9% today. treasuries are steady after the fed delivered a quarter point rate cut with more possibly to come. it is tracking to be down a bit after it had a brief pop to a four-month high on wednesday, it's now 430 or so. takes us to our talk of the tape. with the fed loosening policy into a sturdy economy, what's not to like? let's ask cameron dawson, new edge wealth chief investment officer. >> good to see you. >> you line it all up like that it looks like green lights as far as you can see. is there anything to bring into the conversation to complicate the story? >> i do think we have to respect

the uptrend which has been just so very powerful this year. and clearly through the election we've removed the tail risk of potentially higher corporate taxes and maybe higher regulation, which is certainly something that the market is celebrating. we cannot ignore that valuations are very stretched, we are at 22.5 times earnings. we also cannot ignore that earnings estimates themselves have been getting trimmed over the last couple of months and so you're seeing this divergence brew where the upside in the market really driven by sentiment, driven by valuation, not necessarily because of a fundamental change in the earnings picture. so we think we have to watch that the most closely over the course of the next couple of months. >> yeah, i mean, valuation has been certainly a little bit of a shadow on the market for a while, more so now, 22.5 times, pretty much as high as it's been since the post-pandemic boom when earnings were probably a little more depressed. 275 is where s&p earnings for

next year have been cut back to a little bit. it's still 21 times next year's number. i guess you would counter that by saying in a bull market if the stories line up and right now you have this ability to believe that either the cycle can sustain itself for longer than we expected or it can accelerate to a degree in a private sector friendly way, i mean, i think that seems to be the chatter. >> and i do think that valuations at the end of the day need a catalyst in order to be able to be a true weight on the market. and what you typically see is that valuations start to fall when you're cutting growth estimates, cutting eps estimates, when people are getting more concerned about the outlook. even though we're pushing up against the 2020 highs, those were highs based on depressed earnings and the fed growing money supply at 30%, flooding markets with liquidity, very different story, but until you start getting a question about growth we do think that valuations keep potentially

drifting higher. it's why valuations are a poor timing tool. really helpful for the five year, not at all helpful for one year. >> in terms of timing or at least tactical considerations right now, you can't really stand in the way of that kind of momentum move we saw a couple of days ago, usually that tells you, again, as you say the trend is pretty sturdy, but what about expectations for whether we need to cool off a little bit. >> we are overbought if we look at the rsi. it was expected or would not be too much of a surprise to see a little bit of a digestion, but to your point you did see that breadth surge, the number of 22 day highs surgery to 25%, jeff degraaf said you have effectively gotten escape velocity. these are things that you do not typically see at market tops. it does not mean that you can't digest the power of the move, mostly if we have a cpi that comes in a little hot next week which could jostle markets, for example.

of course, we have to keep those things in mind but usually the track record of brett surges is positive. >> almost everything when you dial it ahead 12 months or so it usually resolves to the upside. let's bring in keith lerner of truist wealth and sandra cho. where the market has brought us at this point, the 6,000 level, above most strategists targets for the end of the year, well above the median. where do you think we should expect to go from here? >> mike, great to be with you and cameron and crew. it's been a strong market and we've been trying to keep things pretty simple in our work, right? we've talked about it. sticking with the prime trend, which is positive, we do have the fed on our side, even if they skip a meeting they're more likely to ease than raise at this point. we have global central banks

raising. the blended estimates are still moving higher albeit a slower pace before. valuations is high, as cameron has mentioned, it's tough to make a short-term trade on valuations. i think that tells us more about the long-term trends are likely to be somewhat lower. credit spreads today are at the lowest level in decades, that's showing some confidence as a whole. finally seasonality when we are up big through october more than 15% for the s&p 500 the final two months have been up 19 out of 20 times. that's all positive. mike, what you said, when everything seems like it's all working well what's going to hit us? probably something from left field, send mts may be stretched, maybe choppiness after this round number but we think you want to stick with the primary uptrend. >> sandra, as you talk to clients here after the election, you had this focal point of anxiety and expectation around t now we have resolution. the market has relaxed a lot.

we're up 25% of the s&p 500 year to date. what would you be telling them in terms of whether, you know, the world has changed in a favorable way or it's more the same or should we expect some give-back? >> yes. i mean, you know, this is post-election and we knew that half the population was not going to be happy with the outcome and so i am dealing with clients that, you know, are unhappy but what i focus on is that the elections are over and the markets like certainty. i agree with cameron as far as, you know, there is momentum -- and keith -- that there is momentum in the markets right now. a few weeks ago i called the s&p 500 at 6,000 by year-end and, you know, we hit it today. so now we're looking -- our base case is 6120 for year-end. we do think that the market is going to continue this trend and it's going to be strong. we look at consumer sentiment, it's up. you know, we do think that the year is going to end, you know, well. >> yeah. that would be another just

couple percent from here, 6120. cameron, i guess the question, too, is whether the character of this bull market has changed at all. you know, there is a sort of pretty clear message on wednesday's market action when it was like, okay, let's just execute the textbook trump trade, cyclicals and small caps. a lot of stocks were down, defensive stuff and yield sensitive. to what degree are we making any kind of a short pivot or is it, again, not necessarily that much of a shift? >> it seems like we played that 2016 playbook for one day versus what happened in 2016 is that lasted about two months and then it started to give it back up. one of the things we're watching really closely is growth versus value. we simple ratio. you continue to see growth still outperform even post election, which just suggests that maybe some of that leadership in the mag 7 that everybody is expecting to start to fade, at

least for now is hanging in there and that is maybe because of tesla's strength. clearly there is a difference today versus what we had in 2016. so it's a question of do we see a continuation of things like the small cap trade, even though you are seeing small cap earnings continue to get cut, valuations aren't that cheap. clearly there is a lot of questions as to how far we can extend the trump trades. >> yeah. keith, weigh in on that just in terms of whether it's time to step away from the sort of growth quality leadership we've seen in this market for a while, the market cap weighted s&p and decide to get either more cyclical or look for laggards. >> it's interesting. our overweights right now are from three different aspects, we have technology which we've been overweight most of this year, we think the ai story is intact and earnings are intact, overweight financials even before this. we think if the economy stays resilient, credit is tight, m&a picks up, good for the financials, technicals are good. also overweight utilities which

have been defensive, a little bit of a derivative play on ai. yesterday i didn't feel great about utilities, today i feel better. it's almost as if it's not just tech, i mean, this week, too, you have financials, industrials, energy all up over 5%. i don't think it's an all or none. i think there's opportunities within and, again, we're playing it from those three sectors specifically and tilted to the u.s. globally, mike, it is a big week of u.s. outperformance, we've been team usa for some time. that's something that happened during the trump trade of 2016 and we think continues into the end of the year. >> yeah. i mean, it does get tricky at some point if the argument is value is going to take over from growth and the u.s. is still going to outperform the rest of the world, but stranger things have happened, but seems like those things push against one another. no, keith? >> we're pretty much neutral or value and growth. it's good for us to be thinking about what can go wrong. cameron alluded to this, in 2016 that was going to be a bigger

surprise, yields were sub 2% as opposed to above 4%. the deficit is a lot bigger. so far the market is really focused on all the positive aspects, you know, lower taxes, deregulation, and really kind of putting off the, okay, what happens with tariffs? arguably the policy outcomes is wider so at some point i think there will be a counterbalance for that market and sentiment but maybe it will be delayed, maybe later this year or more likely in the first quarter that we have to deal with some of that policy uncertainty. >> yeah, i mean, what stands as basically reflationary policies into an economy that's been barreling ahead for a while and we've tried to get inflation under control is sort of a funny mix. san drarks i wonder what your thoughts are about the bond market here. it's been, i guess, commonly said that it seems like treasury yields could be the arbiter are whether this has runway. we got a scare that a the ten

year yield was going to be unanchored. it hasn't done that. after the fed cut by 25 basis points we've calmed down. how do you think about bonds as an investor? >> i think bonds for year-end i think they are going to be steady as far as that goes because, i mean, the only thing that, you know, with he see is that yields are pretty good right now and we think that that's going to, you know, finish the year, but for 2025 the concern is, as you mentioned, that if inflation starts to tick up the fed might pause and then that might, you know, kind of upend things just a little bit. so we're really keeping a close eye on that, especially if tariffs are implemented in the way that the trump administration has mentioned. if they are imposing like a 60% tariff on chinese goods, you know, that really could throw things around, but we really think that that's just posturing in order to come to the negotiating table and implement better trade agreements. so, you know, that shouldn't

manifest, because it would hurt u.s. companies and i do think that the administration knows that. >> yeah. well, we will see. that also mimics 2016-'17, actually, right, where the market quickly seized upon the positive aspects of policy and then 2017 was full of, you know, trade warhead lyons that would hit the market at least short term. >> and maybe we get the reverse this time because we don't get the negotiations around taxes until the end of 2025 so the prospect of actually lowering that corporate tax is something we would get into end of '25 into '26 but we could get tariffs right away and have to contemplate what that means for things like the dollar, what that means for cyclical companies. maybe instead of getting the good news first like we got in 2016 we get the bad news first. >> that could be although i've often thought that the best kind of tax cut is one that's on the way. if you think about it it was a year before the law was passed and the market was willing to just pay for the prospect of it

over and over again. i guess the other piece of it tactically, and, keith, i will ask you this, you mentioned seasonal effects, you mentioned this tendency to strong years to finish very strong and this compulsion of people to make sure they're participating toward the end of the year. is positioning among investors, exposure to the market, do you feel it's low? is it middle? is there still room for it to expand safely? >> i think by middle high. i think if we remember right before the election we saw the put call ratios spike, the vix was above average. very quickly we've seen, you know, that fear go out the window and we saw the vix plummet as you mentioned earlier, put to call ratios plummet as well. the one i always have to write down in november and december is seasonality and sentiment tends to be trumped by the trend, no pun intended. i do think that's something more weary for the first quarter but i do think we have a bit more to expand before year-end.

i don't think sentiment is extreme at this point because there was so much nervousness and anxiety heading into the election. >> i do guess that's the question, cameron, is kind of just how much has already been burned off and does it matter? you hear people say there is no reason to sell at the end of a year and so, therefore, the market can kind of just continue to ratchet higher. >> and the question is does that create a pull forward potentially of returns from '25 into the end of '24. we do know if you are sitting on big gains because you have had a strong year, why would you recognize those gains and trim positions today versus waiting a couple months and delaying tax payments for 16 months. we do think it's likely we do get a chase into year-end, but then that creates a scenario for 2025 where you have even higher valuations, even more stretch positioning, which is why our base case for 2025 is more high single digits to mid single digits types of returns, very different than the 20% plus we have gotten this year. >> sure. although maybe on top of i guess

it's like 37% over the last 12 months, many people would take that. we'll see. cameron, good to see you. keith and sandra, thank you very much. appreciate the discussion today. let's send it over to seema mody for a look at the biggest names moving into the close. >> 44 minutes left in trade. shares of sony on pace for their best day in more than two years. earnings grew 70%, revenue fell short, the results were boosted by strong growth in gaming and network services division with citi analysts crediting cost improvements for the latest play station 5. shares of pinterest are plunging about 15% after a reported weak revenue guidance for the fourth quarter. the company's cfo telling analysts on the earnings call yesterday that a slump in advertising revenue is likely to continue. pinterest still beat on the top and bottom line for the third quarter and approved a share repurchase plan of $2 billion but it hasn't been enough to

boost the stock today. >> seema, thank you. we are just getting started. up next, former fed governor frederick mishkin tells us what he's expecting from the print. >> we are live from the new york stock exchange. you're watching "closing bell" on cnbc. ah, these bills are crazy. she has no idea she's sitting on a

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stock rallying again today adding to huge post-election gains, the dow crossing 44,000 for the first time and the s&p 500 crossing above the 6,000 mark. investors bracing for a big week of economic data next week including the october cpi print on wednesday. joining me to discuss what it could mean for the fed's december meeting and beyond is frederick mishkin, a former federal reserve board governor and a cnbc contributor. rick, great to have you here. i mean, yesterday's fed decision

and chair powell's press conference really conveyed a sense of comfort by the central bank in terms of where they seem to be situated in the way of policy, not wanting to really stoke too much drama or suspense about the next move. does that fit for you? does that make sense given the conditions? >> yes, it does. the inflation numbers have been looking good and actually the economy has been very strong, but that's good news. as long as inflation numbers are good and coming down on this glide path down to 2% having strong economies is a terrific thing. the fed should never be seen as being hostile to an economy that's doing well, it only wants to limit the economy when it's growing so fast that inflation is heating up and that doesn't seem to be happening. so far so good. this is looking -- nobody would have expect it had to be as good as it is now, that the fed is -- really looks like it's getting the soft landing that it wants. the big issue will be coming down the road by the way.

>> which are those issues? do they include the coming inflation numbers? because there has been a a little bit of a sense, massive improvement, going in the right direction but perhaps a little bit of a pause in the disinflation process. >> i'm looking longer term than that. also remember that monetary policy takes a long time to have an effect. we've just had an extraordinary election and the election of donald trump as president. that's going to create some very interesting challenges for the federal reserve. so one of them is the issue of federal reserve independence, as many people know, trump was extremely critical of the federal reserve when it wasn't lowering interest rates to his liking. trump tends to be a low interest man, he says he's a tariff man, he's a low interest man. when jay powell comes up for renewal it's extremely unlikely that he will get renominated. who knows who trump will put in. interestingly, you know, so far the trump appointees worked out

not because they were all great but because jay powell was brilliant in dealing with congress so that in fact only the good appointees got through. i think that that's less likely to happen in the future, jay is not going to be there. so, in fact, that presents huge challenges for the feds, particularly coming up towards the next election. so that's going to be a huge challenge for the fed, a lot of pressure on the fed to keep rates low, to boost the republicans. that could lead to a lot of inflation, particularly if trump chooses somebody who is willing to be, quote, a low interest rate person. >> of course, powell yesterday pretty unequivocally says obviously he does not believe the president has the authority to fire or demote him so he's going to serve out his term. and that being said, too, even though there is the potential as you suggest for a lot of friction, the fed is already easing, the economy is already strong, it's almost as if there would be nothing really to blame the central bank for at this point. so, you know, why would that

come to a head? >> well, because it's two years from now. >> yeah. >> that's a very, very, very different environment. we just don't know. and it might be that the fed is faced with inflationary pressure and has to raise rates and trump would be very upset about that. that could mean that he will pick somebody -- they've talked about what he wants to choose somebody who will agree to talk to him and consult him about interest rate decisions. that's completely something that should not happen, it should not be something that is a good thing. the independence of the fed has served us extremely well in terms of actually keeping inflation under control and it's been a linchpin of both academic research saying that that's good and actually the congress and the president in the past have done that. trump has been an exception in recent years and it could get even more difficult given -- given that this time around i think he's not going to, quote, make the mistake of appointing somebody like jay powell,

instead he will want somebody who he can pressure much more easily. >> what would you look for in the way of market behavior to suggest that there was anxiety building about the implications of a fed that was less independent? >> you even see a little bit of it now. the bond rate is up. the bond vigilantes watch it very carefully. by the way, it's not just the issue of independence, it's also the tariffs. there's two things trump has said about macroeconomics, one he is a low interest man and second he is a tariff man. in those cases the tariffs actually will create, again, very, very difficult problems for the fed, if they would get implemented, we don't know, that would actually raise prices and it's like a supply shock, negative supply shock, something that raises prices, creates more inflation and then the question is what should the fed do about it. i don't see a problem for the next couple of years right now, but, boy, two years from now

it's going to be a very, very difficult environment for the fed and we just don't know how it's going to play out. i don't think we know how this presidency is going to play out, either, but particularly i think that there will be super big challenges for the federal reserve at that time and, you know, who the president is does matter on that, particularly when it comes to policies. >> yeah. i mean, i guess some research is suggesting that the fed ought to look through one time price adjustments due to tariffs. >> absolutely. >> who knows what that means and what else is going to be going on at the time. as you suggest, maybe some room for plenty of drama as we go along. >> it will be interesting times, which is great from my perspective as a scholar but not necessarily great for the country. >> some would say great for the news business, too. we will see if that plays out. rick, thank you very much. appreciate it. >> you're very welcome. up next, rbc's laurie

calvasina will tell us where she's forecasting opportunity in the market under a trump administration. she joins me at post 9 after this break. don't forget, you can catch us on the go by following the "closing bell" podcast on your favorite podcast app. we will be right back.

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let's ask lori calvasina here at post 9. >> good to see. >> you this is part of a general set of questions of what, if anything, has changed given what happened with the election and just general economic conditions and exactly how it should play out from here. >> so, look, i think with small caps in particular we got another reason why they could continue to do well fundamentally and that's inherently a buy the usa trade. and i would also add corporate taxes on to that. if you look back to the history of the first trump term we had three distinct trades into small cap. none of them lasted, it was a fixel market n 2016 we got a big surge up on economic optimism around trump, 2017 another one around the tax cuts. in 2018 when there was all that optimism on the china trade war that china is going to have a recession, rest of the world is going to catch a cold but the u.s. is going to be okay, people surged into small caps then. that all unraveled at the end of the year, but we did see

precedent for that. i think there's a combination of trade, there's a combination of tax cuts and general excitement. you have to remember half the country or more elects the president. we do usually see risk assets take off after because the winner does usually get that endorsement. >> you could also even add just in anticipation of more m&a activity and just the general maybe higher metabolism capital markets. but what about the other -- aside from small caps? it's sort of interesting how the template for 2016 was, well, you've got to buy cyclicals and banks. >> yeah. >> that's the stuff that had been working for months at least on a relative basis. >> what's interesting, the day after the election i went back and looked at elections and leadership shifts in the market. it started out as a small large project, then a growth project. in 2016 we had started to see a shift into growth and that lasted for quite some time. when biden got elected you saw a

shift into value. i came away from the study thinking when we get political leadership shifts even if some of these style shichts in markets have already gotten started there does seem to be something about changing the political dynamics that results in a leadership shift within the equity market as well. i think we have to take seriously the idea that some of these things even though they got started already may have a little bit more room to run. >> does the at least expectation of some of the policy movement give cover to where valuations are right now? does it really change the equation in terms of what you can expect the market can deliver given how far we've are un. >> let's look at corporate taxes in isolation, that's an easy one, we all lived through that one. what i remember about that 2017 period and even kind of 2016 was we didn't know exactly what the new rate was going to be. it was kind of all over the place. by the time we really got so what it was announceas and the legislation was passed a lot of the trading had already happened. this vague idea that earnings

can be higher because taxes are going to come down, maybe it's a paper e that's increasing, but that can boost animal spirits. i think some of that is feeding into the market right now. i will tell you i have cautioned people when i heard trump speak in new york at his speech at the economic club he did talk about a tax cut with conditions for domestic producers, i'm not sure the street fully understands that, i don't think we fully understand what a tax cut might look like, but i think the market is giving trump the benefit of the doubt. >> that has been the pattern, too. you front load the anticipated benefits and see if the details conform to that or not. also we can think back to 2017 where it was like company by company was pressured to come out and suggest how they were going to spend the tax cut. >> yeah. >> it's a crazy thing to recall. >> i was telling my team that's the first time i started reading earnings call transcripts because we wanted to get that color from companies on how it was going to benefit for them and two what they were going to do. >> we already also interestingly have a capex boom, mostly

seemingly happening because of ai and some of the fiscal measures out there. so is that going to be accelerated from here? i mean, it just seems as if, again, a lot of the policy stuff is an accelerant to what's already been happening. >> i would say if we are thinking about tech and ai specifically, i spent a lot of time on this during the campaign season. both candidates seemed to come out in the same place to me as friendly to ai, at trump's speech he was talk being how we needed all this have additional electricity, a generation i think it was maybe bitcoin not ai, but he generally has seemed to be supportive of that. that was something i was very focused on to see if we were getting any negative comments on ai or tech because that would be negative for the market and frankly i didn't see it. now, i do think there's sort of a separate issue when we look back over the last few months or few quarters, a lot of companies have been talking about how their orders are slowing down, customers are hesitant because of the uncertainty associated with the election. we've moved into a situation where the election is not uncertain, but policy is somewhat uncertain.

>> sure. >> i'm going to be curious as we're reading the off-cycle reporters, listening to conference presentations, is that uncertainty alleviated enough? i think that's another thing markets have been cheering. i'd like to see what companies are saying about that. >> you could always find an excuse to not do something or to worry and we will see if companies -- you talk about some companies talk being front loading orders to get ahead of tariffs so it could be noisy. >> what's interesting about the market action today, you mentioned tariffs, it's an up day in the market not, you know, as off to the races as we were the first day after, but i was looking at the performance, the gives are leading, materials is lagging. there's been this whole debate in my meetings at least, you pay attention to the 2016 trump playbook or 2018 playbook if you are worried about the tariffs. the market is not down today, manage to go take it in stride but i'm seeing the tariff playbook from 2018 show up. march to december at the height of the china trade war it was

the gives outperforming, materials and industrials were lagging. industrials isn't quite conforming to that today but the rest of them are. >> a lot of stocks are down, brent isn't great but it is selective. >> great to talk to you. up next, we are tracking the biggest movers as we head into the close, seema is back with those. >> mike, it's been a tough day for two restaurant stocks, those names coming up after this short break.

19 minutes before the closing bell, let's get back to seema for a look at the key stocks to watch. >> mike, shares of blooming brands are on track for their first day since june of 2022 after it reported a weak outlet and dee complaining same store sales, trargt at outback steakhouse fell 4%, the company also refranchised part of it's brazil operation, shares down 10%. sweet green missed on the top and bottom line. the company raised its sales outlook. despite today's drop the stock is up about 240% this year, mike. >> not too bad. thank you. tesla shares touching their

highest level since april of 2022 as optimism around the trump administration's impact on the company boosts the stock. market cap cross ago trillion dollars today. joining us is jed dorsheimer. jed, if you had to explain with some level of specificity why the stock is up so dramatically over the past couple of weeks around the election, could you bring it back to what it means for the company? >> yeah, i think so. i mean, mike, you kind of have two things going on, you have a little bit of a yin and yang, mostly on the yin on the positive side, i guess, which is, you know, less regulatory burden on tesla. if you look at the big opportunities for tesla, it's probably going to be, you know, and this takes away -- or if you take a step back and say, hey, tesla is not just an auto company, but it's -- you know, is it a bigger -- whether it's an energy, how we look at it or an ai and one of the big risks for robo taxi which they just

rolled out a month ago is the regulatory burden on that. so i think what you're seeing here is a reduction of the risk that elon's involvement in the trump presidency is going to be able to probably ease tesla in getting over that automated vehicle ev hurdle. on the negative side you have the ira and risk around that hitting all of the solar names, some of them solar names that we cover right now, but if you also dig under the covers a bit deeper of what trump has been saying, you know, it's unlikely that he's going to be targeting domestic content and tesla has more domestic content for batteries, for energy storage and for autos, including ev, of any other company. so i think that's what's justifying the move here. and it's clearly a momentum boost. >> well, exactly.

yeah. i mean, i guess, you know, we have been at these prices before and even higher, the stock was around 400 at the peak, but there has been a huge deceleration in terms of, you know, obviously growth rates and earnings estimates being cut for this year and next. do you think the market is going to continue to kind of look past that? >> i think it's probably the opposite of shoot first, ask questions later. you're getting all the benefit right now because, you know, you've got a couple months before any policies can be enacted. so i think you're getting -- you're getting the best case scenario and i think that's going to continue to play out here. you know, if you looked at the -- you know, if you cut that tax credits for evs that would have a pretty meaningful hit to gross margins for tesla. so obviously you're not getting that to play out. and i think this lasts for a while. >> yeah. there has been a lot of talk that, you know, other auto makers would be more

disadvantaged in those ev credits perhaps went away, but obviously that's kind of 100% profit margin revenue for tesla when they get bought. >> of course. we agree with that. >> yeah. >> from a long perspective, you take the duration of a long term, you know, that would be a real positive for tesla. >> all right. it we will see. jed, appreciate it. have a good weekend. >> thank you. you, too. thanks for having me on. still ahead, shares of expedia and airbnb moving in opposite directions, we will drill down on those moves coming up. (♪♪) (♪♪) (♪♪) everyone has goals and dreams. and everyone deserves a way to get there. wherever you're going, getting there starts here.

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check out shares of cloud flare, sinking in today's session. the stock down about 4% after issuing weaker than expected guidance. don't miss an exclusive interview with the ceo of cloud clear that's coming up in overtime at 4:00 p.m. eastern. all right. up next a big week for the banks, we will break down what's behind that sector's bounce and what it might me fanor the space in the new year. that and much more when we take you inside the market zone.

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we are now in the closing bell market zone. seema mody is watching two travel stocks moving in opposite direction after earnings. leslie picker is here to break down big moves in the banking sector and mckenzie seg lows on whether the sharp rise in fintech stocks may be overdone. seema. >> we have expedia hiefr, airbnb lower. expedia, shares are rebounding after the online travel operator raised its outlook and the ceo reiterated her focus on efficiency while finding new markets to grow in. rbc capital's brad ericson touting vrbo which returned to growth for the first time in over a year. it's a sign to wall street that their marketing initiatives are starting to pay off. shares up about 4%. airbnb missed on earnings and lowered its 2025 outlook due to

rising costs associated with expanding overseas where executives say it's underpenetrated. bank of america writes from a valuation perspective it's trading at a premium and there are other ways to get exposure to the leisure travel trade, especially now that more people are returning to work, you will still see airbnb up on the year. back to you, mike. >> all right. seema, thank you very much. leslie, the banks haven't really quit yet. >> no, they sure haven't, mike. spdr bank etf up more than 10% alone, most of those gains of course coming from the day after the election wherein investors bid up the secretary err on fervor over potential deregulation, when asked by sara eisen whether the election changes her outlook the citi ceo said we expect this to be beneficial.

phraser said it helps the prospects of deal making and financing. >> we see a good positive outlook, the pipeline is strong and i think now it's game on in areas that have been more restricted. so we're expecting to see the return of the sponsors in a much more meaningful way now. we've been waiting for that. that whole ecosystem has been rather gummed up and now with the valuations that we're seeing and with the markets very much open for business, i think we can declare the sponsors will be back. >> now, among the big six morgan stanley and goldman sachs, two firms perceived to have the most upside in a revival of capital markets, were the biggest weekly gainers this week. mike? >> all right. leslie, thanks. that goldman move is pretty stunning. all right. take a quick look at shares of spirit aero systems, seeing a pop in just the last few minutes after a reuters report saying boeing was close to a funding agreement with spirit which is one of boeing's key suppliers.

the report says the agreement could be announced in the next few days. that pop did dissipate a little bit, but you can see on that intraday chart where it did respond to the headlines. mckenzie, pretty aggressive couple of days in fintech. >> upstart uses ai to inform loan decisions up more than 46% today, by far the best day in over three years. that move represents how fintech is becoming part of this trump trade. toast is 14% higher and then there's the crypto proxy stocks that have been surging along with bitcoin. robinhood is up 28% and coin base is 50% higher on the back of the election. analysts are trying to figure out whether that move is warranted, though. coin tok is showing signs it's close to being overbought. the question is how sustainable this rally is with potentially less regulation and a pro-crypto president. dan dolan says names like sofi and marquetta are set to rise.

a more friendly business environment under the new administration could boost shares long term given both the payment firms focus on snbs. >> you mentioned the expectation of perhaps lighter regulation on crypto and bitcoin and other coins have obviously anticipated and then responded to the election results. what specifically do you think folks in that market are anticipating here? >> so the big regulatory shift that the industry is expecting is a change of leadership at the top of the sec. donald trump promised to fire chair gensler on the campaign trail who has brought enforcement actions against crypto companies. he can install the new head of the commission and analysts say that is a big part of what's driving coin base and robinhood higher. both are facing legal fights with the regulators. it helps more than 280 pro-crypto lawmakers won house and senate seats this week which

bodes well for finally getting a crypto bill passed into law which is what a lot of banks have been holding out for. >> aside from a lighter touch on enforcement or going after these companies for alleged fraud, what might be in that bill? i keep trying to get my head around why the value of the asset is going to go up if, in f fact, the government is now sort of endorsing it as an asset class. >> i mean, there are a couple of things here. one, donald trump has talked about establishing this national crypto stockpile so you take $15 billion worth of bitcoin that the government already holds and instead of auctioning it off he would permanently keep that out of circulation so that's just great for price dynamics. but in terms of the legislation that might be passed through f they repeal something called sab 121 an accounting bulletin from the s.e.c. that would open banks to custody currencies like bitcoin. that is a game changer and what i hear a lot of players on wall street are waiting for. >> it does make sense, especially because, you know, me and others thought that once the

bitcoin etfs came out it was already priced in and clearly it wasn't. they responded after the fact, too. anything broadening the base of owners seems to help it. thank you very much. appreciate that. as we head into the close the markets, the indexes have lost a little bit of altitude here. you see the s&p 500 has slipped just barely back below the 6,000 mark, up 0.6% for the day. market breadth has been mixed below the surface. 50% of all volume in the new york stock exchange is to the upside, the dow trying to hold on to that 44,000 level. we still are on pace for an extraordinarily strong week across the board. 4.6% upside in the s&p 500 on the week. the nasdaq has not been the center of things but the russell 2000 had that huge one day repricing on wednesday, up 6%, it is now tracking to be up 8.5% on the week and in fact 18% on the year to date basis.

so after half a year when nobody wanted any small caps, people have migrated back in that direction and the volatility index looks like it's going to go out just below 15, one week ago it was at 22. so a lot of tension released on wall street. that's going to do it for closing belle. we will send it into overtime with morgan brennan. well, that's the end of regulation, blackrock ringing the closing bell at the new york stock exchanges, vital farms at the nasdaq. record closes for the major averages again as we wrap up the best week of the year for the dow and the s&p 500. tesla finishing back above a trillion dollar market cap, that's the score card on wall street but the action is just getting started. welcome to "closing bell: overtime" i'm morgan brennan. ahead this hour solar stocks sitting out the post election rally in a big way but some names in the space los