♪ welcome to closing bell. i'm skate wapner live from post 9 at the new york stock exchange we begin with the appetite for risk, which one firm says is at the highest level in some three years. so does it mean another leg to this record setting rally is in the cards before year end? we will ask our experts over this final stretch, including liz ann sonders. meantime, the scorecard with 60 to go in regulation. we have a down day on the street it's red all the way around. dow is the big loser for the ninth tay in row that's the longest streak since

1974 important to note half the losses due to unitedhealthcare which continues the slide yet again today, down nearly 4%. tech taking a breather as well a record high in its own right, apple. microsoft and tesla higher today. interest rates a touch lower ahead of tomorrow's fed decision a cut widely expected. the question, what happens after that we will have a report on that coming up as well. talk tape how much gas is left in the tank of this bull run let's ask liz ann, schwab's chief market strategist. >> nice to see you. >> i cite the fact that people are pretty bullish it's bank of america and fund manager survey today which cited super bullish sentiment, record low allocation to cash, record high allocation to stocks, and a three-year high in global risk appetite what does that tell you, if anything, on where you think we might go over the last stretch

of '24 into 2025 >> it's among many indicators that show a decent amount of froth in the market both on the attitude side of things, a survey-based status. you can see it in fund flows particularly, inflows into large cap equity etfs. you are seeing a lot of speculation and froth in pockets of the market whether it's in the, you know, art world or crypto world or, you know, leverage single stock etfs i worry as a backdrop. even at extremes, it is a contrarian indicator, but not a good timing tool to so you can sort of put it in your back pocket as something to be mindful of to the extent there is a negative catalyst, money and attitudes one side of the boat, but of itself it doesn't suggest a downturn i think the rotations under the

surface are likely to continue to characterize the market >> what do you think is a more important signal now the fact that the nasdaq and megacap have distanced themselves from the rest of the market, or the fact that breath in the market, you have had more down stocks than up stocks for long stretches here. what's more important, on the direction from here? >> i think we could be setting up, if this persists, for something that looks like the first half of 2024, which at the index level you would have thought nothing to see her, nothing to worry about, successive new highs but a lot more churn and weakness under the surface even as we sit right now, the average maximum drawdown at the average member level for the nasdaq is almost 50% it's 21% of the s&p 500. it's been somewhat masked by the strength of these names. fast forward to call it the

mid-july to early november period of time, you saw that traditional im where you saw participation down cap spectrum. now that rotation back into the magnificent 7, that will, if it continues, support cap weighted indexes and make it look like the market is fine, but it could again like the first half of this year mask some of the churn under the surface and that wouldn't be a big surprise to us as we head into 2025 >> growth is crushing value. certainly lately it's not even close. and it does have some saying, essentially, what you might be suggesting as well, that you may be back to a time where tech is the most of the game in town and who knows how long that might last >> you know, i would say tech with a lower case t. i think we often sort of conflate the words tech and tech, lower case, upper case, with the technology sector, which doesn't house all of the magnificent 7, of course

in fact, the amazon and tesla are in consumer discretionary. so if you are talking megacap tech, tech-related kind of names, yeah, i think we are going to continue to see a decent amount of action there not on a consistent basis. as we talked about many times before, part of these sector rotations that kicked in in the mid-july period of time wasn't a period that went from mag 7 leadership to some other area and stuck. initially it went to the interest sensitive areas, financials, small caps, in industrials and some other cyclical areas and all along we were saying there will be times where those rotations take the money back into the megacap tech, tech-related names, mag niv sent seven to use the popular moniker. i think those rotations could continue you're right in a growth constrained macro

backdrop, i think there is a premium placed on the ability to grow earnings. the difference last year into next year is that level mattered a lot last year. the level of profitability the strength good versus balance on the balance sheet now it's rate of change that matters a bit more as we look ahead into 2025. so we also have that ability to catch kind of the improvement stories, not just good versus bad. i think it's a better or worse aspect to 2025 that maybe matters a little bit more than good versus bad. >> i do find it interesting. you described it a growth constrained macro backdrop i mean, it almost feels like it's the opposite, no, that the goal posts have moved to where whatever constraints were on growth, are now removed. tax cuts, deregulation, things that are going to spur the economy to even stronger growth. >> tariffs and immigration in there and still say it's a universally growth positive, there are lots of cross-currents in terms of policy

with regard to taxes, the 2017 tax act doesn't expire until the end of 2025. and tax policy requires congressional approval that's not something that we are necessarily going to see imminently whereas decisions with regard to tariffs and immigration policy could be done via executive order. that could be right out of the blocks if the administration goes to the extreme of what's been proposed, it's marred to argue against the notion that that puts downward pressure on growth and upward pressure on inflation. that, obviously, changes potentially changes the trajectory in terms of fed policy, the trajectory of long-term running mates which feeds into the equity market and economy. there is an assumption that the administration won't go to the extremes i think the equity mark gt is focusing on the positive with deregulation and tax policy. there is a timing mismatch that i think we need to be mindful of. >> sure. i mean, if we try to surmise, you know, trump part one versus trump part two, the thing that

stays the same perhaps more than anything else, because there are unknowns, is the now president-elect's love of watching the major averages go up, right? he is not going to want to kill the golden goose. >> we can assume that. and that is part of the playbook for 2018 you throw scott bessent no the mix, howard lutnick in the mix, there is market sensitivity. that's important because that's where the major volatility story has been on the bond market side of things, not the equity market side of things that's the assumption and it's a negotiating tool they won't take it to the degree laid out in the campaign season, but i don't know you don't know we don't know. >> fair. >> so, yeah. so i think the market could be that dampening influence on some of those potential extremes, but we're all at the mercy of the

unknown as we head to january 20th. >> that's all fair it is. let's broaden the conversation bring in adam parker and our senior economic supporter steve liesman. among the -- adam is a cnbc contributor, by the way. steve, among the unknowns is what the fed is going to do after tomorrow because i think we can all agree that the consensus is that you are going to get another cut but then kind of all bets are off. so hawkish cut is that baseline, you think, for tomorrow >> yeah, for sure. i think that's what is dialed in here i think the fed is going away for christmas in the new year's and come back in january and not do much of anything. i think they will pause in january and maybe the next meeting in march as well, scott, because i think they want to resolve all of the issues that trouble miss liz ann some feel for the direction of

policy, are you going to get some of the bad stuff first, maybe some of the better stuff later? what's the sum total of the impact and they will watch the data, scott. i think that one of the things that the market may not have figured out here, and i am thinking about these days, is it a hawkish pause to the extent the fed does stop after tomorrow's cut, is it stopping too early? all this talk about the fed shouldn't be cutting, well, the fed will be cutting above what is currently well above the average neutral rate of the average member of the committee. so by definition, that's a hawkish pause. of course, tweak the neutral rates tomorrow in the economic projections. but, look, we talk about what ails the markets and there is certainly a technical aspect to this the yac story. it's well to remember the market backed off its estimate for how much cut something going to happen in 2025 and stocks have kind of had trouble with that the last several weeks

>> adam, i mean, liz ann's point is like go easy with the bullishness here, right? we are up a lot. multiples extended and to her point, we don't know what's gonna happen with tariffs. we don't really know what's going to happen with immigration. because we have to wait to find out. do you think the market has gotten ahead of itself >> i think liesman's point is spot on. one of the major legs to the bullish stool was that the fed is still going to be accommodative. now thinking we are mostly done or more than halfway done is closer to being time to fight the fed. just like end of 2022, even though there was hiking, we said, well, they are kinda closer to being done hiking than not and everything ripped -- growth stocks ripped i think that's a major negative from where everyone was six months ago in terms of the fed front end part of their equation the second thing is you look at

the markets and liz ann is right, the index level may not move a lot but there is rotation underneath the biggest story in the last two months really before the election was low quality growth stocks, junk growth beaten quality growth by a huge amount. never more other than the financial crisis recovery and the recovery which had huge government intervention. so i think the part that asked liz ann about, i agree a little bit, i don't see anything other than explosive growth embedded in the numbers in the second half of 2025 that's the risk, you don't get the growth, you know, frothing -- >> i agree his take in some leaps. >> yeah. and you see it in -- >> faith >> restaurants a lot of stocks are up that i don't think show the fundamental support. part of the battle, what's up against sins the election deserves it? investment banking jpmorgan says q4 revenues up

45%. okay, fundamental support. but regional banks that don't do deals that are up, maybe pumping the brakes there are trades happening now where i see q1 results that will kind of give me some indication that the stocks are up okay i'll stay with us. it's a lot more -- i think she is right rotations underneath. >> steve, we had a super-sized cut and another cut. i think it's interesting that adam suggests that the biggest risk may that we are closer to the end than just getting going, even if we pause how would you assess that? >> yeah, i think that's right. i mean, look, it's not exactly right to say, scott, that all bets are off there are bets on next year. if you look at the cnbc fed survey, we are still looking at 50 basis points next year. look at the futures market, there is not a ton of conviction around it. it's in the 60 to 70% range. if you look, for example, at the

25 -- december '25 fed funds contract, you will see we are below 4% there is still some built in in terms of cuts. the other a as pekt, adam was talking about this, about bets not being off, there is a lot of bets on, scott, when you look at how the market is priced right now, and in our survey again 69% believe stocks are overpriced for the current soft landing so there is something about the market valuations right now relative to what the fed is expected to do that creates a lot of uncertainty and a lot of reason to be, i don't know, maybe more towards the edge of your chair than sitting back in it and leaning. >> well, part of the problem, you don't want to fall out of your chair, liz ann. and prospect the picture you paint is higher rates for longer, which then puts into question the multiple.

we are trying to justify stocks deserve to trade at 22 times, around that territory, and in part because we think rates will come down and earnings will grow maybe faster than expectations so you can justify where we are. would that be questionable, higher rates than -- >> yeah, particularly to adam's point, down the quality spectrum i think the move in that low kbaul u quality trade over the last month or two is for the most part predicated on a fed staying in easy policy mode. smaller companies, zombie companies have more variable rate that they have got bigger problems in terms of interest coverage so i think the assumption that the fed would continue to go here is a benefit down this sort of quality spectrum. if we don't get that from the fed or -- the other thing we haven't talked about, not just a fed that goes into pause mode. god forbid we develop another inflation problem courtesy of tariffs or some other reason and the fed doesn't just go to pause

mode, but they actually have to pivot book to rate hikes that's not our base case, but our job is to think about the tales of outcomes. i think that that is one that maybe deserves at least a modicum of attention >> i think the biggest - >> hold on. >> go ahead, steve. >> go ahead. >> i want to make sure we do giver time to the upside here. you know, it is possible this deregulation, these tax cuts, you know, i talked to a lot of cfos they are excited about the possibility of bringing forward depreciation that could spawn some capital spending so the story here is not one of just only potential downside the story for investors have really to balance the potential upside with the potential for downside here and look at, for example, the balancing act of the trade-off between perhaps less fed but maybe a little bit more growth. that's something that the market and investors have to think about. >> and i wouldn't suggest that

that's been a balanced conversation in any way. i feel like we've counted a lot of our chickens already that you are going to have growth. >> yeah, look, we are a couple set from all-time after two monster years. it's not a reasonable thing to bring up a couple quick points. what sometimes happens is whatever is worse for the fundamental guy. it's rotation out of stocks into bonds and then the high quality stocks go down the same amount as the junk ones because everyone says i am underperforming. they can get away with it with the lps for now. people end up-rotating out of equities, that could be a problem for folks. the case i see from the equity perspective is not capex i know i worked with economists, they love it for the economy i don't like it because i want margins to go up so i think the biggest bull

case, proof cases of a.i. productivity the first couple quarter next year, businesses report higher margins because they didn't have to hire people like in the past they talk about unemployment, other stuff. for the biggest 100 companies, walmart, tell you they would have had hire 5,000 people in the past, hired none, that's a bull case to get the second wave or third or tenth wave up of the a.i. trade. >> the other thing, liz ann, is that, you know, i find it hard to imagine a scenario in which lets just say you're part of your risk factor comes into play and you are right that inflation goes back up, that rates remain sticky as a result, that the fed in fact might be finished. i can't imagine a scenario in which a broadening of the market would happen in any way, shape or form under is that scenario. >> well, i think you would continue to see rotations. and i think if you throw into the mix the policy uncertainty and in an environment the fed

goes into pause mode, inflation is city council on sticky on th to the micro level saw this in 2018 as you get these tariff announcements and the implementation, you see moves in stocks driven by those tariff announcements and who are maybe perceived to be the beneficiaries who are hurt by that so i think we might get to more micro level connectivity between shorter term fundamentals and what's happening in terms of these rotations in 2025. >> yeah. i guess my view, you know, is i agree with liz ann there is a lot of bull and bear counter points i think the number one thing i am focused on is who do i think will report and guide in january, somebody that supports the recent price action and who isn't. a lot of the conversations i had are more about pair trades i worry a little bit that every investor i talk to thinks we

rally the rest of the year, kinda we have a pull back but end up higher year end and get a sharp -- >> that's right. >> no. i worry that's what everyone's saying we have low volume days next week and then you start off next year with a little bit of a rotation. >> i got to bounce i have breaking news to get to liz ann, thank you steve, thanks to you we will see you tomorrow adam, thank you. bertha coombs has breaking news. that's right, scott. luigi mangione has been indicted on murder charges here in new york murder in the first-degree, one count. two counts of murder in the second-degree. two counts of criminal possession of a weapon another four counts with regard to criminal possession of a weapon in the third-degree two other counts on criminal possession of a weapon what happens now we will be hearing from manhattan d.a.

alvin bragg at 3:30, scheduled to hold a press conference along with nypd commissioner jessica tish and with this indictment now handed up, governor kathy hochul's office says as soon as she receives that she will put forward the formal request for contradiction of luigi mangione from pennsylvania to new york. it is called a governor's warrant. that is the formal request that needs to be filed. and at this point the hearing for that is going to be held on thursday morning at 8:30 a.m. in pennsylvania again, luigi mangione now being charged with one count of first-degree murder and two counts of second-degree murder along with weapons charges in the fatal shooting of unitedhealthcare ceo brian thompson scott. >> thank you just a reminder, when that news conference takes place in about

ten minutes, we think, 3:30, presumably a few blocks from here with the manhattan d.a. bragg, we will take you there live, among other officials expected to speak as well. in the meantime, to seema mody now for a look at the biggest names moving into the close. >> 37 minutes left in trade. teva pharmaceuticals and sanofi trading higher positive test results for idb treatment. patients achieved a higher rate of clinical remission. teva shares up 26%, sanofi 7%. pfizer an outlook in line with wall street expectations but that was enough to send shares higher today 4%. pressure growing on the company following activist investors starboard revealing a $1 billion position pfizer still down 8.5% this year scott. >> thank you. >> seema mody. we are just getting started

here next, star technician chris verone breaking out his 2025 playbook he will tell us what he is seeing in the charts heading into the new year. we are also waiting for that news conference. we will take you there live. we are live right now at the new york stock exchange. you are watching "closing bell" on cnbc. discovering innovation today, helps drive growth tomorrow. as a leading global asset manager, pgim has established a track record of helping investors capitalize on growth opportunities. pgim investments. shaping tomorrow, today.

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with the comcast business 5-year price lock guarantee, they can think more about possibilities for their business and not the cost of their internet. it's five years of gig-speeds and advanced security. all from the company with 99.9% network reliability. get the 5-year price lock guarantee, now back for a limited time. powering five years of savings. powering possibilities™. welcome back we are waiting ton that news conference here in lower manhattan. regarding the indictment of luigi mangione for the december 4 nurd of unitedhealthcare ceo brian thompson learning one count of nurd in the first-degree, two counts of murder in the second-degree. we will take you there when we see the manhattan district attorney bragg along with new york city's police commissioner jessica tish that's expected any moment now. meantime, megacap tech regained the leadership over the past month

our next guest warning the broader market's momentum needs to catch up or a correction could be in the cards. chris verrone, good to have you here may have to break away any moment tell us about it. >> i think it's no shock that the momentum has not lived up to the expectations up what is now become very bullish sentiment across the street. the question that we have is, this is a time seasonally you expect markets to be strong, especially into january. what if the market doesn't live up to that hype? what does it mean for the outlook of 2025? i think it's a big stretch to go from a market that might be consolidating to bearish view for first half of next year. we are on guard given that the markets seems to be defying the normal seasonal strength here. >> how does a technician square the two things that i asked liz ann about? the breakout again in megacaps versus the breakdown in

essentially the rest of the market i mean, breath has been terrible for the better part. last ten days. what wins the day? >> yeah, one, i don't think we want to overstate the breath story. ten days of a sloppy - >> ten in a row? >> frankly, two tremendous years. and frankly, 2024 has been -- much of the year, you had 70% of the s&p above the 200 day average all year long. i would hardly say there has been deterioration that leads us to this moment you see megacap mag 7 names, which many took the last four or five months off constructively are resuming consolidations higher breakout in apple is skpelg here, breakout in amazon, microsoft looks like it wants to do it. nvidia is not really involved here when you look at the rest of the semis, maybe we shouldn't be surprised. none of nvidia's friends have been working broadband aside.

land research, qualcomm, amd very split tech sectors. semis among the weakest groups. >> especially relative to software this is a bit of a reckoning it's time to sort of or shut up. let's see what a.i. really means to your business and to your return on investment and whether you are a real player or somewhat of a pretender that got a halo. >> i think it's the one sector you have seen the market make this differentiation look at adobe the last week, mangodb. broadband. frankly, some of the asian semis might be reasserting themselves. taiwan semi as an example. tech speaks to a sector that's very, very split is that a foreshadowing of the broader market after two broad years? >> i am thinking this must be a difficult time to be a technician because no matter -- i'm talking the end of the year, because no matter what today says, tomorrow when you turn the

calendar into a new year, because of tax-related selling that could take place, it's hard to try to gauge where we could go in the next month. >> it's why why we spend time trying to evaluate the character of a market. what i would want to see or have to see to really change the longer term view, number one, credit does it deteriorate here? i don't think there is a ton of evidence of that yet most of our indicators are benign i think people have gotten wrapped around the axis is inflation about to make an imminent return. if so, the market i don't think seems to believe it. consumer discretionary is acting better than energy that was the pair that really signaled it in late '21. >> let's be fair amazon and tesla are the big game in town so if you take those out, discretionary look as good >> it's phenomenal when you look at the cap

weighted discretionary sector, it's been fantastic since the election globally, i would just pay attention to what is happening it in europe european discretionary stocks are getting better lvmp, is that a signal low expectations that maybe china is starting to turn here those are at least ideas we want to be open to in 2025. >> are you suggesting we could go back to -- i mean, josh brown talked about this today on halftime synchronized global growth >> pretty remarkable idea. haven't heard that in a while. >> i know. that's why he brought it up. you are almost alluding to something like that. >> i think if we are looking for areas where there are hints of improvements, you have the bar of expectations remarkably low the pmi in france where all the european discretionary stocks are a 41 what a good rule of thumb? pmis in the low 40s, buy the stocks the bar of expectations has been lowered to such a degree where

it's tough to surprise on the downside further so i think something might be starting to brew there you have the currency weaker, rates down is that the set up for the equities to show up on the other side >> well, because you also have, you know, central banks in europe cutting more swiftly and sharply potentially than we are here. >> and i think, scott, one of the reasons why i'm reluctant to get to bearish u.s. bonds here when you look at european yield, closer to the lows than the highs and you have seen the move in chinese bond yields, had freefall here. how high with u.s. go when the rest of the world rates seem to be pressured >> that's a good point how are you watching what's taking place in crypto >> yeah. >> what does to tell you, if anything i mentioned something earlier about risk sentiment according to bank of america and their fund flows, the highest in some three years. bullishness, risk on appetite. >> i think there is a couple of ways to think about that number one, bitcoin you could

put in the category of animal spirits and it's response or reaction post-election i think reflects that. this was a bull market before the election as well we have always looked to bitcoin as exclusively a risk on indicator. i can't think of any s&p correction since the birth of bitcoin where it went up as the s&p came in meaningfully if bitcoin is making new highs, by definition aren't we still in risk environment either the relationships are changing, which is possible in this business, or saying, hey, the liquidity conditions are not as punitive or not as restrictive as many might be foreseeing here in 2025 and i think the strength in bitcoin, 135 has been our target. we are sticking with that. >> you could have a breakdown in correlation. >> of course. >> a slowing of activity in he equity market, but the, you know, fundamentals and maybe new fundamentals around bitcoin remain strong enough where you could actually see an elevation in the asset class where as stocks underperform. >> i think - >> i get what you are saying

because they have been so tightly correlated risk on means that exactly. >> i think that's the difference between bitcoin and gold gold has plenty of examples of working in risk off environments bitcoin, the example of that are none so if we are going to think about bitcoin solely through the lens -- which i think is appropriate -- of a liquidity barometer, the strength implies that liquidity conditions are not as decaying or deteriorating as others might expect credit in that camp as well. credit conditions are benign here small caps have corrected and equal weight s&p came back in, you haven't seen a big shift in double b spreads other even triple c is benign, strength in discretionary. so i think it's early to say something is really changing about the 2025 outlook are there things that raise our guard? absolutely it's early to make the bearish call. >> we are waiting, in fact i will go to the podium now here let's listen in.

good afternoon i'm alvin bragg, manhattan district attorney. i'm honored and privileged to be joined by police commissioner jessica tish, first and foremost, i want to extend my deepest condolences to mr. thompson's loved ones and colleagues his family deserves our respect as they continue to grieve our work will never be able to undo the fact that a life was lost we are here right now to announce that luigi mangione,

the defendant, is charged with one count of murder in the first-degree and two counts of murder in the second-degree. including one count of murder in the second-degree as an act of terrorism. for the brazen, targeted, and premeditated shooting of brian thompson, who, as you know, was the ceo of unitedhealthcare. this case was made possible by the collaborative efforts of the phenomenal public servants you see before you today and so many others who are not here. i'm honored to lead the manhattan district attorney's office and privileged to serve alongside assistant district attorneys joel side man, kristin bailey and jack which kaplan, who were working from the outset hand in hand with the greatest police department in the world chief of our trial division and the deputy chief provided

oversight and direction and i want to acknowledge our high technology analysts -- analysis unit there was a lot to be processed here steve moran heads that, and marco popic. we are privileged here at the d.a.'s office to work every day with the phenomenal public servants at the nypd it's been a distinct pleasure to work besides commissioner tish and chief of detectives joseph kenny. almost every day we are in touch, and his leadership is second to none and in deputy commissioner rebecca winer, who, as i tell her, there are a lot of challenging things happening in the world and i sleep better at night knowing that she is the deputy commissioner in charge of terrorism. the dollar index o detectives doing the front line

work exemplary, the finest it wasn't just those of us here in new york. i want to acknowledge the great work of our partners in altoona, the altoona police department, the blair county district attorney's office, the governors of new york and pennsylvania, the fbi, and of course the brave members of the public who answered the call when our great commissioner put out the call for their assistance this was a frightening, well planned, targeted murder it was intended to cause shock and attention and intimidation it occurred in one of the most bustling parts of our city threatened residents and tourists, commuters and business people just starting out on their day. let me say a bit more about the charges. they include one count of murder in the first-degree as a killing in furtherance of terrorism, two

counts of murder in the second-degree, one charge of the killing was done as an act of terrorism and the second pertaining to the fact that the killing was intentional. the maximum penalty pos for murder in the degree and murder in the second-degree as an act of terrorism is life without patrol the maximum penalty for murder in the second-degree is 25 years to life. there are additional counts as well a number of criminal possession of weapon charges, two counts in the second-degree, four counts in the third-degree, one count in the fourth-degree and a count of criminal possession of forged instrument in the second-degree let me tell you about the facts. on november 24, we allege that the defendant arrived in new york city to nurd brian thompson after the defendant arrived in new york city, he checked into a hostel on the upper west side using the name mark rosario with

a fake new jersey i.d. on the morning much december 4, the defendant left the hostel just after 5:30 a.m. and traveled to midtown. for nearly an hour he waited in the area near the hilton hotel waiting for mr. thompson to appear from 6:38 a.m. to 6:44 a.m. the defendant stood across the entrance of the hotel. when he saw mr. thompson, he crossed the street and approached him from behind we allege he then took out a 9 millimeter 3d-printed ghost gun, equipped with a 3d-printed suppressor and shot him once in the back and once in the leg the defendant then fled northeast on 54th street and took an e-bike uptown before getting into a taxi that took him to west 178th street and amsterdam avenue on december 9, the defendant was

spotted at a mcdonald's in a altoona, pennsylvania. the local police were note fight. he was arrested and found with a 9 millimeter handgun, a suppressor, two ammunition magazines, and the same fake new jersey i.d. he used at the hostel i want to say a word about ghost guns these weapons are increasingly proliferating throughout new york city and the country involving technology will only make this problem worse. last year over 80 ghost guns and ghost gun parts were recovered in manhattan alone the nypd and the manhattan d.a.'s office have been leading in the interdiction of these ghost guns and one thing i want to make clear, they are unsoutheasterlized, can be printed out. as this case tragically makes clear, they are just as deadly as traditional firearms. this will remain a priority for us here in manhattan finally, i know there have been

questions about the extradition process. the latest that i can offer, the defendant is currently scheduled to appear in court in pennsylvania on thursday morning. first for a preliminary hearing on his pennsylvania charges. immediately to follow that will be extradition hearing we have indications that the defendant may waive that hearing in which case he will be brought to new york for the with and we have been preparing and before the hearing we will send to the governor of the state of new york the paperwork that would be necessary if he doesn't waive during that hearing. i now wouldn't to turn it over to our great commissioner. when i do so, i thank her for her partnership on this matter and all we do every day together thank you.

>> good afternoon, everyone. the unsealing of the indictment brings us a step closer to securing justice for brian thompson and his family, and affirming the primacy of the rule of law in the city of new york nypd detectives worked tirelessly to piece this case together and along the way the manhattan d.a.'s office made sure we had every legal tool available to us. whether quickly providing subpoenas to assist with our evidence collection or traveling with us to altoona, pennsylvania, last week after the apprehension, our partnership made this a successful investigation so i'd like to thank district attorney bragg and his team for their work in bringing this case forward. part of that work included the relentless collection and analysis of surveillance video by our detectives, which produced a clear image of our suspect.

that image was shared far and wide through the media and thanks to an observant mcdonald's customer and the employee who alerted the police mr. mangione was quickly brought into custody this outcome is why we always emphasize the critical role of the public in our public safety mission. so, again, i want to thank everyone who saw something, said something, and did something that is why we have a suspect in custody today. >> you have been watching officials in manhattan lay out the indictment against luigi mangione that was new york city police commissioner jessica tisch following the remarks from the manhattan district attorney. one count of murder in the first-degree for what the district attorney called the brazen, targeted and premeditated shooting of unitedhealthcare ceo brian thompson december 4. he faces, monk does, a maximum penalty of life in prison without parole

extradition, he spoke that as well, did the district attorney. bertha coombs, i will turn to you. you have more details as this is the next matter at hand in this case >> exactly scott, originally the extradition hearing was scheduled for december 30th. it is now going to be held on thursday morning following luigi mangione's charges that pennsylvania there has been discussion he may waive his right to extradition, which means he won't fight it anymore. he is now represented by a former manhattan prosecutor, former, actually, chief assistant district attorney to cyrus vance, karen friedmann so according to current d.a. alvin bragg, if he waives that extradition on thursday morning, he will be brought to new york he says brought forkhwith.

we could see him brought by the weekend, potential, but if he fights it, it will present this evidence governor hochul is working on what is known as a governor's warrant, which is the formal application for a warrant for extradition so if he continues to fight it, they will present this indictment and all of the evidence that they have in order to get him extradited. so this could well be wrapped up on thursday in terms of whether he is going to be coming to new york scott. >> better that, we'll follow that thank you, bertha coombs we will get back to the markets after this quick break coming up next, jpmorgan asset manager meera pandit on the other side "closing bell" will be right back car, where are we going? we're here. (♪♪) surprise!!! the future isn't scary. not investing in it is.

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stocks are lower across the board today, dow the first nine day slide since the '70s my next guest says don't bet against the u.s. markets back at post 9 is jpmorgan's meera. that's what your message is. don't bet against the u.s. not now. why? >> well, we see across the street double-digit expectations for returns next year. while that feels unreasonable after the last two years we have had, we are headed into an environment where the u.s. growth is still pretty strong. we are seeing the fed cut. even if it's just a little bit next year. so the macro environment is pretty supportive overall. and then if you think about the components of equity market returns from an earnings

perspective, analysts expect 15% earnings growth. even if you just get 10, there is your double-digit return right there. you add in overall reasonable sentiment, especially again with a benign macro backdrop, if valuations do nothing again, and admittedly they are a risk, you get to that impressive return. >> you make the argument valuations are not as extended >> it's possible think about the longer arc of history where a sector composition, we went for more value-oriented sectors to growth oriented sectors to where we are today, if you think about interest rates we had low interest rates but stocks have been able to manage this higher interest rate environment for a while and profit growth is still incredibly impressive. so perhaps you get what you pay for. >> what about unknown policy like we started our program 51 or two minutes ago saying there is a lot of uncertainty around tariffs and tax policies not going to happen overnight.

does that mean that we should expect nor volatility especially early in the year? >> it's possible if we use 2018 as we an example, we had very impressive tax reform that really helped the markets throughout 2018, what broke the back was not necessarily tariff uncertainty in 2018, but actually right towards the end of the year it was really around what the fed was going to do. as much as it feels like policy will cast this big cloud over the markets next year, i think will in fits and starts, but really the key factor, if the fed cuts a little bit and stays on pause, and it's relatively boring in terms of monetary policy, i think that should be supportive for market conditions. >> what do you make of megacap outperformance domination of late >> it's a big part of the index. a third of the index what it does is, i think we will see broadening next year we already have. last year 63% of returns came from the mag 7 this year it's about 52.

i think we could see that further diminish as we head into next year as you see mag 7 profit growth decelerate and the rest of the indexes profit accelerate a bit more. >> of the losers this year, health care, materials, energy, what's the outlier that could surprise us? >> i think potentially health care you will see a it's bit more of an earnings boost into 2025 again same thing with valuations so i think there is room to run there. it has been shrouded in policy uncertainty. especially if you see more animal spirits around things like m&a and ipos. the m&a market could help drive profits within the health care space. so that is potentially a potential upside there. >> good to see you sorry for our breaking news. we had to keep this short. up next, two key automakers might be gearing up for merger talks. rks d rense e th maet zone next

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to the moon! unbelievable. stop waiting. start investing. e*trade ® from morgan stanley. ♪ the closing bell market zone seema mody watching nvidia as it falls into correction territory. phil lebeau tracking merger chatter in the auto sector tell us about nvidia. >> we are watching it down 15% from the recent highs, scott worth noting nvidia has seen these mini pull backs before, shares fell into correction two times this year, in april and then in june, each time the stock rebounded a few weeks later fueled by bullish comments from nvidia's ceo, who is set to speak at the consumer

electronics show january 6 followed by earns in february. the gtc conference in march. they say the broader risks that challenged semiconductor stocks the past few weeks like china restrictions, uncertainties around blackwell, those will likely persist into the first half of 2025, scott. >> thank you seema mody phil, what do we know about the auto, this merger talks that may be happening >> right it's honda and nissan. this is according to a report out of japan the nikkei news agency reports this we reached out to honda and nissan they have been downplaying the report saying that, yes, they are working closely together but there is no news that they have to share in terms of potential talks. the issue here is nissan, scott. they have already just last month said we are going to cut 9,000 jobs, slash 20% of the global production, swung to a loss in the third quarter. >> this is a company that needs to do something quickly. and that's why you saw shares of nissan up more than 10% today. if they were to combine, scott,

annual production of more than 7 million vehicles worldwide scott, back to you. >> we will follow that news as well thank you very much. that is phil lebeau. we will touch the market here. obviously, going to be a down day across the board. nine down days in a row for the dow. the longest streak since the '70s so it's been a minute since we have done this you look internally, unitedhealthcare accounting for almost half of the dow's losses as we continue to follow that developing story as well many of the megacap tech names giving some back today tesla is up again. almost 4%. microsoft trying to mount its own breakout, up near 10% over the last month and then apple top of the list for good reason because it's at the top of the heap, it is the largest market cap company company in this markets. up another 1% today. that is another new record high for what is according to our

data team the most overbought stock in this market doesn't matter because people can't get enough of it that does it for us. i will see you tomorrow. "overtime" in one minute that is the end of regulation. the closing bell. love said company during the honors at the nasdaq. the dial finishing the were for the ninth straight session, the biggest losing streak since 1978 as attention turns to tomorrow's fed decision. the action is just getting started. welcome to closing bell overtime. i morgan barron. >> coming up on today's joe, nvidia falls deeper into correction territo.