>> almost flat here. >> the dow was a little bit green a moment ago but now it is just about flat. >> just about flat here. but we got some names certainly moving or the tape there. >> we're talking about a few of them.again. thank you for watching "power lunch." i will see you in an hour in "overtime." >> "closing bell" starts right now. welcome to "closing bell" i'm scott wapner live from post 9 at the new york stock exchange this. make or break hour begins with the race to $4 trillion. apple nearing that market cap milestone after making another major move higher. the stock flaking its eighth straight intraday high. 3. $3.75 trillion. alphabet on the move, too. up 5% today. that's a significant move. we will have a deeper look at mega cap names coming up. in the meantime take a look at the score card with 60

minutes to go in regulation, in part because of those two stocks the nasdaq is the outperformer. com services getting a big boost from meta. it was. not anymore. discretionary also one of the better sectors today, a third of 1%. mega cap mojo and how it's returned lately. we have deirdre bosa on alphabet, steve kovach on apple. steve, why the stock has been running of late. >> so many new time highs for apple. i wish i could tell you there was a single catalyst driving the action but there is a lot going on. let me give you a rundown what we've got. first, the election of president-elect trump and the idea that ceo tim cook's relationship with him can help apple dodge those chinese tariffs as it did during trump's first term. shares are up significantly since election day, about 11% as you can see there. and trump said before the election he actually spoke with tim cook and that cook brought up eu regulators going after apple's business as one of the

topics in that discussion. next you have the artificial intelligence device upgrade cycle, something we've been talking about since june, that's expected to be elongated with the slow rollout of apple intelligence, waiting for that final chatgpt update to hit. citi analysts named apple one of the top picks for 2025 and talked about apple intelligence launching in europe and possibly china as growth drivers for the iphone next year. here is eric woodring on your show yesterday. >> the other factor i think is still related to this ai upgrade cycle and investors gaining conviction or wanting to gain conviction in the upgrade cycle next year. i don't perceive that to be a fiscal year '25 catalyst from a numbers perspective, but historically when you look back apple typically starts to outperform six to nine months ahead of a product cycle. >> and finally, scott, another point that erik made yesterday that the whole market is

basically melting up and apple is going along for the ride with so many other mega caps. reminder how apple started the year, scott, it was the underperformer of all of its peers down for the year for months until it finally revealed that apple intelligence back in june at wwdc, scott. >> the chart tells the story from when we were sitting there together, steve into yeah. >> that was the moment, the catalyst, if you will. now it has to live up to the hype, though, right? the upgrade cycle has to take hold at some point to justify that market move. >> yeah, and that's why this -- i think the chatgpt launch which we've been talking about for so long that's going to happen, maybe as soon as tomorrow or the end of this week, that is going to be a big one because, again, it's the most popular and most recognizable ai tool out there. it's 300 million users potentially being exposed to a billion more users once it gets into the apple ecosystem. so many analysts are saying now because of the slow rollout not just feature by feature here in the united states, you have to go country by country, language

by language. china is going to be the real one that's going to be a big test. i was chatting with our yunis yeun and she was telling me how the apple customers are waiting for apple intelligence to launch. they are so feature driven and they really care about the specs and feeds more so than a united states customer so that could be a huge catalyst if apple can get the regulatory approval it needs to launch apple intelligence out there in china. >> steve, thanks. appreciate you. eighth straight intraday high approaching $4 trillion in market cap. not to be outdone is alphabet. you don't often see a 5% move in names like these. this is significant. >> it's a big move for such a gigantic market cap. it tells us investors are seeing google's quantum breakthrough as confirmation or reinforcement of the company's technology leadership. it also raised the prospect that quantum computing can be as

transformational as ai and answer the nature of consciousness or how to create new medicines that reach industries and human life itself. that's not hyperbole. this is the promise of quantum computing. that transformation is decades away, dependent on major breakthroughs on hardware, error correction, scaleability. the key to take away is that the foundational steps we're seeing are what make that future possible. google's vp of engineering likens the breakthrough announced yesterday to an entry ticket. he told me winning on an abstract problem clears the way to win on useful problems. he wouldn't say exactly what those useful problems were but said that the willow chips let them look at time crystals and properties and even spawn tiny wormholes. scott, the backdrop here an early lead doesn't guarantee that a company will win and we've seen that in generative

ai. maybe there's more urgency here when it comes to quantum computing. >> you still fee like this is a show me story if you look at the performance of the stock relative to mega cap names. yes, it's had a fine year by any measure. over the last month as the mega cap trade has woken up this one is just sort of coming out of a slumber. >> i mean, forget the stock price look at the valuation on a forward p multiple. it is by far the lowest or the least expensive of the mega caps because of course it's got the pressure of regulatory scrutiny and it's got this huge innovator's dilemma which speaks to its success and dominance in current technologies. you have to wonder what could quantum computing change that would change google or other mega caps' business models in the way that generative ai has

changed the search business. what google's strength is is looking ahead, spending money because it has the capital to do so on new technologies and on these breakthroughs which for today at least investors are appreciating. >> a good look from both -- dee, thank you, and steve kovach as well. we will follow the mega cap movers today. now let's bring in liz young thomas and angela muonza and brian belski. great to have everybody with us. angela, just a segue of what we were talk being with tech, i suggested that this space has woken up lately. you still like it into the new year? >> i still like it into the new year and i'd say, scott, the question we're getting from clients the most when they see numbers like this is are we looking at an overvaluation? is it time to take money off the table? is this a risky situation they're finding themselves in? i think the question there has to be it's a high evaluation but

does that mean it's actually overvalued? for us when we look at mega cap tech names we want to rebalance out of it, take away some concentration in the portfolio but we still think that that has legs. if you look at the last six months in the s&p 500, they've actually -- the magnificent seven has actually lagged the s&p 500. so you're seeing a broadening going on within the markets, which means for us it takes a little bit of risk out of the market and gives us more and more opportunity. i think there are great other places to be investing as you trim some of your large cap, mega cap tech names. >> liz, you've really had a tale of two tech groups, i mean, the meltdown as we've been calling it in momentum, which has encapsulated a lot of other high growth tech names, app loving, for example, these stocks that yesterday really rolled over hard. so you've got to be careful in the way you talk about tech as a sector. mega cap seems to be performing

better. these things now after a massive run, some of these stocks are up 900%. >> right. >> or the like year to date. had a really tough day yesterday and some are down again today. >> yeah, i mean, some of them you look at the chart even a one-year chart and try to convince yourself to buy after you see the line go from the bottom left to the upper right. strongly it gets difficult. i'm going to steel a talking point from mr. belski even before he gets to talk today. some of these mega cap names are what people consider the new consumer staples and that's something that i think people have looked to in periods like this. the month of december, month to date, we've seen this pretty big reversal in just factors, right? momentum is performing poorly compared to how it had done earlier in the year. >> it was doing great until yesterday. then all of a sudden you had a rollover. like i said, the palantirs of the world, app loving s down another 6% today, down huge yesterday. feels like something is going on

with those stocks. >> i think there is a rotation of those factors. so it's not just momentum that's seeing it. low volatility stocks. then you look at growth and liquidity doing really well and they didn't do so well for the first part of the year. i think there's a rotation happening, partly because we're at the end of the year, people are taking some profits, trying to reallocate their portfolios, getting ready for the new year and because we have this big burst of optimism and this big burst of buying post-election that probably needed to cool off a little bit. so the beneficiaries of that of perhaps taking it on the chin a little. the other thing i would say especially about tech is it's not all going to be equal going into the new year. i think we will have a similar story to what we had in 2024 where some of them are going to look great, some are going to look not so great and you have to be choosey about t i'm choosing to break up the universe into semiconductors versus software and i'm more bullish on software in '25.

>> that's a trade that's worked so well relative to where semis have gone. brian, what do you make of the meltdown in momentum? it was such a big story yesterday and in some respects it is continuing today. >> we think it's actually quite healthy, especially considering you've seen so many and heard about so many investors chasing stocks just because they're going up. you buy stocks because they're working fundamentally and clearly this has been a momentum market on a short-term basis but if you go back and look longer than a year or longer than a decade, the best performing factors in the united states stock market five of them are all fundamentals. i think that we're actually heading into more of a fundamental stock picking environment, enterprise value, ebitda, earnings growth and price to free cash flow matter the most. i think that favors the more equally weighted market and certainly favors small cap. on the magnificent seven we warned everybody heading into 2024 we were seeing dispersion even within the magnificent seven.

that's what's happened. you had volatility in tesla at the beginning of the year, massive nderperformance of google, hatred of apple at times, nvidia has been the darling and not been the darling. we continue to believe -- and i know mrs. thomas stole my phrase but we're talking about two of the stocks, google and apple have to be amongst those consumer staples tech names that we believe that you should own from a longer-term perspective in your portfolio. >> what are the risks do you see as we enter 2025, angela? i mean, we're building a lot of anticipation of a new agenda from the new administration, tax cuts, deregulation, an economy that remains strong, still betting on tax cuts. are we too optimistic? some have warned there's too much euphoria already in the market. >> i know, and i tend to be a glass half full kind of person. i tend to err on the side of the euphoria, although i'm very practical. so, yes, there's absolutely risk

coming into the new year, both the new administration, you mentioned, you know, some of the accommodative and things that will provide tailwinds for the markets, but when you look at tariffs, that could be very inflationary. that could bring us back a little bit. and actually some of the selloff i think we were seeing yesterday is in anticipation for the cpi data coming out tomorrow which is going to be very, very important for us all to be watching and i think some people were selling off a little bit in anticipation that should it be a hotter print than anticipated because that might mean something different for the fed and that might mean something very different for 2025 and for our outlook there. >> what role does the fed play in all of this for 2025? given that we're not resetting our expectations really anymore. we already did that. >> yeah. >> right? the market has come to grips with the fact we're not getting as many, we're not etting as large. >> right. >> so what difference does it make now? >> and we've managed pretty well with that. >> i'll say. we've been basically at highs. we've been on the doorstep of

6,100 on the s&p. >> i think that surprised people because coming into 2024 we were expecting six to seven cuts and we thought that that's what was driving the market. it turns out that that must not have been entirely what was driving the market. into 2025 i don't think people are expecting the fed to drive the market, either. a couple of the things that i think the market is standing on is pillars of strength. you've got this liquidity boost that could happen in the first half of the year, even if or when we hit the debt ceiling. we've got the draining of the tga that can occur so liquidity should still be available in the market and that's a good thing. we have low labor churn, the hiring rate and quits rate is relatively low. that drives higher productivity and pushes down wage growth. some of the concern about wage growth overheating and driving inflation are coming down as well. there are a few things out there that are positives driving the market. i think the fed's role in this is going to be still to message

to the market that inflation is at least where we're comfortable with it being for now, as long as they don't get uncomfortable. i think what makes them uncomfortable is inflation expectations starting to get out of control and that has not been the case. >> you don't need a disappointing print tomorrow, brian, we know that and the next couple days we're going to get a couple different reads. you're looking for 10% more or less in 2025. you sound more bullish on the market than your target would necessarily suggest. why so? >> well, you know, during election years we typically and historically try to come out with our year ahead piece early, especially given the consternation with respect to the election and things like that. some of my compatriots have the honor to be able to come out a little later and be higher than us. i always like to say if you ain't first you're last and we were amongst one of the first bulls and our bull case has always been 7,000 anyway, scott. i think there's going to be more

volatility than most people think the first six months of the year, we've reserved the opportunity to change and revise our forecast for the first time ever in my career in 2024 i upped my target twice. i think we're going to be in one of those types of environments again next year. lastly, why are we going to be more bullish? i think earnings are too low. i think earnings expectations between 275 and 280 are too low. i think financials are really going to rip in terms of earnings and i think the majority of the larger financial companies are way undervalued in terms of their earnings prognostications for 2025. >> angela, you agree, don't new when you talked about other areas beyond tech financials are a space that you like. >> financials are a space that we like. we like utilities a lot. we think that although they've been the second best performer in the s&p 500, about 15% returns, but if you think about what next year brings, whether it's the transition to clean

energy, whether it's just all of the proliferation of data centers because of ai, cloud computing, and just in general an aged infrastructure within this country that needs to be renewed, there are several areas within the utilities space that we like. but one data point that i think is really interesting and relevant to this conversation about what we anticipate for next year is the fact that 70% of the global index -- and this comes from ""the financial times"" 70% are u.s. companies. if you look at global investors because the question is where is all the money coming from and global investors are looking to say 70% of the index is comprised of u.s. companies, we have to be in on the game. so that's also something that i think people aren't necessarily taking into consideration. >> financials you like, or no? >> i do. >> they've already done quite a bit since the election on all of the things that i said. we've got deal making and deregulation, that's like 1 and 1-a benefitting these companies.

>> it's a friendly environment for financials going into '25. >> friendlier. >> if i were a technician which i absolutely am not i would say they probably need a little bit of a breather there's been so much momentum in those names. into 2025 if you are looking at this long term it should be a friendlier environment, we should see a pickup in activity in some of the sectors of financials that we haven't seen as much activity on the m&a cycle likely to have more activity. i think private equity and private investments in general do pretty well. is it the best entry point from a valuation perspective, probably not, but as we know valuations are a terrible timing mechanism. >> brian, why don't you like health care? i understand the underperformance, it's the worst relative to everything else, positive but only by 5.5% or so as a sector. why don't you like it? >> well, we own lilly all this year and we love the stock from a longer-term perspective, we

think that stock has runway too far and been too dominant with respect to the weight loss drugs. we worry about drug companies in particular that are so focused on singular things ie like pfizer and moderna were during covid. that's number one. we do think that regulation is going to be a major theme from the vaccination side of things, also from a valuation perspective some of these drug companies have run a lot. that's why we like more of the defensive side believe it or not of health care which would actually be biotechs because they have huge balance sheets, some device companies like medtronic and certainly unitedhealthcare which we believe remains one. strongest companies. we do believe there's going to continue to be money coming out of that sector and into higher growth areas and more consistent growing areas. >> let me just ask you since you brought it up and i'm just going to do this on the fly, i mean, the conversation and if not debate discourse and whatever you want to characterize it as that's happening today about

unitedhealthcare and the industry in general in the wake of what happened here in new york city, is there longer term stock risk to that? do you see any of that at all? >> not to the stock itself because, you know, unfortunately this is just a terrible event but he was not -- he was a ceo of a division within unitedhealthcare. >> i understand, but you understand -- i'm sorry. you understand what i'm alluding to. i mean -- >> 1,000%. i completely understand. >> a renewed discussion if not debate about the health care industry. whatever motivation -- whatever the motivation was from this person, it seems to have sparked a new and louder conversation about the practices of this industry. you have this stock, you like it. are you thinking about that in terms of the performance of it from here in any way, shape or

form? i just feel like it's a relevant question if you are going to talk about that company and its stock. >> it is a relevant question and thank you for asking. we're not going to change our view from it, we think from a fundamental perspective it's still one of the best companies in health care. i do think that there's still -- emotions are clearly high across the spectrum in health care, just like they were in covid. i think, too, we have to be really -- we have to be very thoughtful in terms of how we're looking at things. we are underweight the sector. unitedhealthcare is one of our favorite names. all positions are always under review if there's something fundamentally or operationally wrong with that company we will do something different with t but we see no fundamentally, operationally wrong things with that company at this point. >> i appreciate you entertaining that question. brian, thank you. we will leave it there. angela thanks for about there and liz, too. to seema mody for the biggest names moving in this market. >> two names catching our eye, first walgreens shares are soaring, david faber reporting that sycamore is exploring a

deal with the pharmacy retailer. they do have a history of doing retail deals but this would be the largest by far that it has ever contemplated. the "wall street journal" was the first to report on this. walgreens shares up about 18% at this hour. then there's toll brothers, sliding despite reporting a beat on fourth quarter earnings and revenue, the home construction company's gross margins were below estimates but analysts at wedbush security say demand as evidenced by orders is trending better than expected. the stock still down over 5% right now. >> seema, thanks. we're just getting started. up next, amazon taking a bit of a breather today after claiming to new highs in its own right. what's behind that big run after the break. we're live at the new york stock exchange. you're watching "closing bell" on cnbc.

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welcome back. amazon hitting a fresh record high earlier in today's session as the e-commerce giant takes another shot at air delivery. our kate rooney joins us now with more. kate? >> hi, scott. so, yeah, after talk about this for about a decade amazon is now using drones to deliver packages around the phoenix metro area, at least these aircrafts they're meant for smaller items so something, for example, that fits into a shoebox, it weighs less than five pounds -- or less than that. they drop from a drone to get delivered that's about 12 feet in the sky. you do pay roughly $10 extra for this drone delivery. it tends to et items there faster and right now that is within an hour. there have been some drastic changes in design over the years, they did cut the noise of these by roughly 40% and doubled the range. through some of the testing they figured out things like how to

avoid dogs before delivery, they used radar sensors to do all of that. amazon executive david carbon tells me managing the air space has been the biggest challenge. they got faa approval back in october for the latest mk-30 zone. the site we are at today is with a subcenter which is how they plans to scale this quickly and integrate this. i'm told they are be rolling out in other cities. according to amazon 500 million deliveries within 30 minutes or less. >> jassy has made it a focus, right, on the speed of delivery and better margins, correct? >> yeah, that's a key part of this story, scott. speed is a big part of this. i talked to executives here who say they have heard two things from andy jassy on this primary focus, it's speed and safety. the fulfillment center really being next to us here is part of that where they're able to get

packages immediately from their walk them out to the drone site and thet get them out there faster. the big part of this is speed. there are customers who will say do i need it in 30 minutes, probably not. it's the prime value opposition. they've improved margins it's part of the bull case for the stock. they've gotten things to you faster, been able to do that at a sustainable lower cost and been able to use robotics and things like that to bring some of the costs down. prime is a big part of that. this is a place where they're leaning in. interestingly they did say yesterday not everything is going to need a drone delivery. there are metro areas where trucks with a better option, not everybody needs a drown but they say eventually this may be on par with some of the truck deliveries out there. >> interesting to get a firsthand look like you are today. kate rooney out in arizona for us. up next, goldman's elizabeth burton is back. she will tell us how she thinks investors should diversify their portfolios in the new year.

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so you can connect with them fast. visit indeed.com/hire we have some breaking news regarding kroger and albertsons. julia boorstin has that for us. >> according to reports a federal judge has clocked kroger's $24.6 billion deal for albertsons. we've reached out to both companies for comment on this

judge's ruling on this deal that was first announced in october of 2022. on this news we see albertsons shares down nearly 6% and kroger shares up 4.5%. over to you. >> okay. julia, thank you for that update. we will follow that developing story. it is a big one, too, as these companies have been trying to do a deal for a good minute now and there was an expectation it was going to face a huge hurdle. thank you for that. the s&p 500 is sitting on a 25% gain this year but with investors chasing the record rally in stocks is now the time to broaden your portfolio exposure? let's ask elizabeth burton from goldman sachs asset management. good to see you. >> good to see. >> you on the broad market just because we just had this story about a deal that is not going to happen, one of the expectations about the new year is that a lot of deals are going to happen and that's part of the optimism along with tax cuts and deregulation and everything else. do you want to just give us a sort of broad thought on where you think '25 is going to look

like? >> sure. so optimism is always great and we've seen quite a bit of it over the last month. i think the last four weeks ending friday was one of the biggest monthly flows on record, $140 billion into equities that we've seen. there's clearly a lot of optimism going forward. we think as you know our outlook for 2025 at goldman sachs is positive equity concerns but there are tail risks, places where there been florida could be stumbles. the equity market so few names we think you should be broadening out, thinking about diversifying your portfolio now. >> it's interesting because that trade had obviously been working quite well until recently it feels like, then the money has been finding a home again in a lot of the mega cap names. >> yes. >> at the expense of broader parts of the market. is this just a blip preparing for the end of the year new york city the new year? >> i think there is something about going into the end of the year, the last two weeks of december, the first two weeks of

january, historically tend to be really good for stocks and a lot of these flows are passive. for every dollar you see going into s&p 36 cents is going into the mega cap names. we think there's a lot of room for growth in the mid cap names. we've said before we think small cap remains interesting and we think that story still rains true. i hear a lot of people saying it may not be as cheap as you think but if you look on a median pe ratio small caps, russell 2000 is what i'm talking about, median you take out the ones that aren't profitable it's actually trading at a 23% discount which on historical average is about a 2% discount. >> do you think there's skepticism in part because we've dialed back our expectations of rate cuts and you need a bunch of rate cuts to make small caps work even better? >> that could be part of the issue. i think it's hard just to miss out on fomo, right, because if

you don't stay invested there you might think you're getting it wrong. look, staying invested in growth is part of our outlook and we certainly like the magnificent seven in addition to the other names but the mag seven are only go to outperform the remaining 493 by 7 percentage points next year, that's a small margin to have so much confidence. >> you say next year is going to be about growth assets and diver fires what does that mean? when you think diver fires what is our viewer supposed to think? sure. i'm saying it's not equities versus bonds, it's growth, attributed to equity but a lot of other things, too, versus diversifying. in terms of diver fires that could be things like infrastructure which maybe with a .6 correlation to equities, also tail hedges, risk off strategies and in this environment gold and bonds. i think the bond story while we're constructive on bonds it's one of the biggest changes to our asset allocation we're overweight bonds, it's not necessarily a total return story

because we think it's going to be carry driven next year. >> are you thinking a lot about alternatives as part of, you know, and sort of rebuilding of portfolios in a new political/economic environment? >> i don't know if it's so much politically oriented but rebuilding the alternatives portfolios based on, one, the tail risks you think are coming and, two, what sort of happened in the private equity and venture markets over the last year. investors aren't getting their money back, venture has clearly had issues getting funding and returning capital to investors. we think growth equity for that reason should be pretty interesting next year. those check sizes are going to have to come from growth equities. when you think about that opportunity there's about 750 unicorns right now and that's about a ten-year backlog. so those companies are going to need private capital for longer. >> they're going to need private capital which means that at least the ipo pipeline which is fairly rich, a lot of companies

are staying private longer. and they're using the capital that they can get from private equity to stay private longer. >> sure. >> is that likely to change, or no? >> once there is' more certainty in the market we hope that that will change, but we've been saying that for a couple years now so we need to see additional certainty. one of the things about 2025 there are different ways things can go but we should see a pickup in the ipo market for sure. >> i think people are looking at it nationally and trying to figure out what possible tariffs will mean on different parts of the country. i have had a lot of people who have loved india over the last two years and now, you know, maybe they still do and maybe they like it even more because china is still hard to gauge on what's going to happen. how do you see india as an investment? >> we take india back to what we were just talking about, the ipo market. india has seen quite a bit of ipos. since 2015 it's had about 1,000 and we really like the small and mid cap space in general and including in india, small and

mid cap is where we tend to sees those sorts of transactions. we think there are a lot of tailwinds for india, it's a good investment, low diversification to the u.s., low diversification globally and we have seen a ton of investor interest there. we just took some investors there -- well, we joined some investors there for a trip. there's definitely renewed interest. >> thanks for being here. >> thanks for having me. >> elizabeth burton of goldman sachs. more breaking news this time on u.s. steel. megan casilla has those details for us. >> scott, bloomberg news is reporting that president biden is prepared to formally kill the sale of u.s. steel to the japanese company nippon. this is not entirely unexpected. president biden has signaled that he was against this deal and president-elect donald trump had signaled that as well. shares down almost 18% today on u.s. steel and had been paused for volatility, looks like they may still be paused right now. bloomberg was reporting this is going to be blocked on national security grounds. you will remember, scott, that

the committee on foreign investment in the u.s. has been reviewing this deal for the past few months around they were due to release a decision before the end of the mthor 23rd to releas decision on whether this should be blocked, whether they were recommending that it should be blocked, but bloomberg news now reporting that president biden does plan to formally block that deal. the united steelworkers had been against this deal and u.s. steel said that the deal represent add lifeline for them, forged nearly a year ago and has been in review ever since. there are concerns that the company may move its headquarters out of pennsylvania and shutter operations if the merger collapses which now of course it does look poised to do. >> appreciate that update. megan, thank you. up next, we track the biggest movers into the close. >> we've got two database names moving lower today, we will tell you what's going on when "closing bell" comes right back after this.

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back to steve kovach for the stocks that he's watching. >> scott, oracle shares are down more than 7% after posting a miss on the top and bottoms lines in the earnings report and issuing disappointing guidance. the q2 results had bright

spolgts, sales grew 9% year on year. shares are off 7%. and mongodb sinking more than 16%, now 17% after announcing that the chief financial officer and chief operating officer will step down at the end of january. the news sending the database platform lower despite reporting better than expected third quarter results and strong fourth quarter guidance. citi shares ticking higher today, what is behind that move and how the other banks are faring as well.

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we are now in the "closing bell" market zone. mike santoli here to break down these crucial moments of the trading day, plus leslie picker breaking down the action in two big bank names, angelica people's with us on what his shares of moderna slumping today. michael, i will begin with you. what's on your mind? >> it's a bit of a fatigued market broadly speaking and the momentum reversal we have all been talking about has persisted. there was an opening bid to actually try and pick those names up and they've actually continued over the course two of days. there's the momentum etf relative to the s&p. you see robinhood and coin base which are almost leverage upon leverage to the trading fever are down 10% this week. that's happening at the same time i think a lot of the cyclical parts of this market that ramped for weeks after the election have already been coming in and so you have a general case of the market treading water, churning around a little bit. the s&p is flat on a one-month

basis, i think that would perhaps surprise a few people, and i don't think it necessarily has caused any damage to the trend but i think we are suffering, continue to suffer from that elevated starting point for that excitement of the post-election rally. we were already there, in other words. >> did you have apple closing in and hitting $4 trillion in market cap on your bing co card? >> it just picked up out of nowhere. you were talking about it with kovach earlier. the "wall street journal" article about how tim cook has finessed the trump relationship was november 24. this stock is 230 at that point and no other news, it's up 18 bucks in a couple of weeks. i'm not saying only on that -- >> but i asked woodring about that yesterday, about that very idea and he said, yeah, it's at least part of it. >> we saw it with meta. it's fascinating. the market seems to think that the government is going to be picking winners from losers in the new administration even though they say that's not their

style. that's part of the theme going on. more generally i think people -- people overplayed the hands with some of the more thematic momentum names. beyond that not much to talk about except that bond he yields are tame, the macro looks fine nor now even though maybe you've seen down side and economic surprises and we get the cpi tomorrow. also by the way ppi on thursday, a cleaner read into pce inflation. >> all right. good stuff. leslie, what's going on with the banks today? goldman and citi specifically? >> we've got a conference going on, goldman sachs financial services conference, we're getting guidance and dmen tear. shares of citi stand out among the big banks thanks to guidance shared by cfo mark mason at that conference. he reaffirmed top line a pens and net interest income guidance and he expects investment banking revenue to be up 25% to 30% in q4 across all businesses. ecm, dcm and m&a and said markets revenue will be up by, quote, high teens percent year

over year. that's sounding somewhat similar from what we heard from jpmorgan saying investment banking revenue there would be 45% higher. then goldman sachs' cfo dennis coalman also spoke today. he didn't share overt guidance except to say that m&a activity into 2025 is accelerating and normalizing back to ten-year averages. he added there is no reason we can't go above those averages if we sustain the momentum. we will hear from the wells fargo and bank of america ceos in day two of those events. >> leslie, thank you. these stocks moved a lot and moved a lot since the election for all the reasons that everybody already knows. >> fascinating intraday chart of jpmorgan. when the comments came out from the cfo stock popped 3 bucks. it came right back down that $3 because of exactly that idea. exactly, they are up where

they're already trading because we expect deal activity and markets, you know, revenues to be strong. it doesn't mean the stories are obsolete, it just means we sort of got there already. >> angelica, what about moderna? >> those shares taking a big hit today after bank of america analysts saying that there are, quote, too many layers of uncertainty here. that's with the stock down more than 50% this year. their covid vaccine is driving their p&l and that's a tricky business to forecast and rfk jr. being in the mix poses a new risk. the analysts saying they don't think it will become a cash positive company until 2029. they don't see the sv vaccine becoming a major player. moderna was the third company to roll out an rsv shot for seniors and today the fda raising concerns about the work on rsv shots for infants. asking advisers to review the trial data at a meeting later

this week. >> thank you. >> we're talking about yields being tame, cpi and ppi. i mean, what level of yield risk do you think this market still has, if any? >> it would take a redumpings of the uptrend, i think, to get the market's attention right here. felt like 4.5 was going to be that psychological threshold. we never really got there on this move on the ten year treasury of course and it seems like, you know, we're in a comfortable range more or less. very similar with the u.s. dollar index, it's in the 106 area, a couple points above that was probably going to force a few more questions about financial condition tightening and what we're expecting outs of the fed. i don't really think there is a lot of risk on the headline cpi or core cpi tomorrow that says all of a sudden we have to totally rethink what the fed is going to do next week but i do think the path beyond that is wide open in terms of whether the fed feels like they need to either communicate they're going to be on hold for a little bit or just take it meeting by

meeting. >> other market risks that i read about are the same ones that you see or hear about perhaps. the rollover in momentum. we've been using applovin as the poster stock of what's been happening, up 900 plus percent year to date, down huge yesterday at the lows of the day again today, down mar than 6%. how are you thinking about what we're watching? >> it's mostly this kind of positioning shock type of a deal. by the way, december some folks have fore told momentum sometimes runs into trouble around the turn of the year. that's not necessarily in itself worrisome, as long as we can absorb it with other stories within the market. you have to even get to a point where, you know, nvidia stops, just like being dead money, which it has been for six months at this point. the semis trade pretty poorly. >> they do. >> it's tough to reach for the obvious things that are going to support it. i think goldilocks goes missing for a while either on the growth of the inflation side, that's the big thing to worry about.

absent that it's all just noise and maybe we get a proper pull back instead of a 2% one. >> br too. [ bell ringing ] >> there is the bell. mike, thank you. that's mike santoli. we will go red across the board as we wrap up this day. i will send it into o.t. with morgan and jon. northwest northwest. the bell marks the end of regulation, greek american issuer day ringing the closing bell at the new york stock exchange. phillips, edison and company doing the honors at the nasdaq. the head line average is closing out with small moves. a different story beneath the surface as alphabet soars while oracle, mongodb and chip names pull back. that's the score card. "closing bell" overtime i'm jon fortt with morgan brennan. >> coming up on today's show more m&a rumors and a busy week