points what happened? >> we are down 200 we gave them a market. >> we tried. it all fell apart. maybe even on some of the drama. >> i think so. thanks for watching "power lunch. don't blame that on me no way i don't own that welcome to "closing bell." we begin with the fate of the rally and whether enough has changed over the past 24 hours to change the trajectory of the market we will ask our experts, including that man, rick rieder who joins me momentarily the scorecard with 60 minutes to go we are trying to worse off the worse fed sell-off day ever.

russell is red megacaps are higher with the exception of tesla it's down again today. then there's bitcoin it was below 99,000. it is now below 98 that's following its biggest one-day drop since august. we will follow all of that it does take us to our talk of the tape is this rally intact are the risks of a bigger pullback mounting? let's ask rick, head of the global allocation team it's good to see you >> you too thanks for having me >> how would you answer that question is this thing intact do we have new risks now based on what happened yesterday more importantly, the tone that the fed chair had. >> yeah, i think you're right. for the next -- we were trying to think about over the next few weeks, you have a cloud over the market that we didn't have before you had -- i think the markets

had anticipated it would a hawkish cut. when they moved the number of cuts from three to two -- i think when they moved up the inflation target -- or their forecast for next year, that was significant. the fact that a number of participants had built in policy as part of it. the next three or four weeks, you have a cloud that the data is going to become important cpi, payroll is important. you increased volatility round the data to see if this fed can get more cuts done i think you have gotten the funds rate to a level that you can sit back for a while i'm not sure you can mark down any real cuts from here given you got a solid economy and inflation that probably at the margin is going to tick up a bit from here. >> what i hear you saying is that this was more of a hawkish cut than maybe you had expected it would be.

>> it was. those two factors and then you -- when you do a little dissection -- i find the dots a bit of a -- things change. they move them around. i do think when you break it down, gosh, there clearly is a disagreement on the committee of whether you need to cut at all as you get into january, markets are priced almost impossible of getting a cut. you have almost three months now where you probably are not going to see any real positive tone or positive -- that's a cloud the other one we talk about, equity volatility has come up significantly. i use a lot of -- think about equity volatility was so cheap now all of a sudden it's doubled in terms of cost to hedge a portfolio. those things mean you gotta manage your risk a little more

aggressively it means the market doesn't have that explosive tailwind it has been experiencing. >> isn't this a bit of what would be the worst case scenario in which you figure -- i'm for risk assets. you figure that you have beaten down inflation so much that you continuously suggest you are confident it's heading back to target now the fed chair yesterday suggested, well, we still think it's heading back to target, but it's stubborn. he used "a little stubborn" when he talked about it you can't have the goalposts moving again where they have to worry about -- even they said there was a 40% chance they could hike we are talking about the h word again? >> i think when you -- i think inflation is done coming down, at least for the near term you will probably trend up

you build in, what is policy, what is tariff, what is deglobalization? if there is significant deportation, labor, what's created benefits to wage pressure coming down is you brought in a lot of people all those things which adjust higher inflation what the chair said is probably right. you are running against a bigger set of hurdles before. the problem i guess is put it in your hands before you do anything the hurdle to hiking rates is pretty high. you are still -- the chair did say this i think he used the term very restrictive. there's the natural inclination is to move down. the hurdles to do it are high today. i think they sit on their hands. i think equities can still have a pretty good go i just think -- the last couple

of weeks, it felt a little bubblish in terms of some of the sectors. look at all of it, including crypto it felt a little frothy. i think it's healthy that you get a recalibration and then you get back to looking -- some names have come under pressure, including today. we spent a lot of time looking at the names it's pretty healthy that you get recalibration and get to look at stuff at better valuations again. >> that's what i was going to say. what's getting recalibrated is the multiple, which maybe that's the way you need to think about it you were uncomfortable about where stocks were selling, the price that they were selling for. now in your own mind, you have to adjust your outlook, yourself, for where you think rates are going to be. higher rates pressure the multiple further >> they do a couple things around that. the multiple was a little

frothy even you see the numbers and look at your forward pe, that's building in a 13, a 15% growth we gotta see that. i think the economy -- if you say, what are we going to look like next year if you say, let's use the 2.5% inflation. we could run 2, 2 1/2 growth, that's back to 5 nominal gdp you still can get that 13 to 15% earnings growth. we still have to see it. listen, i like the multiples coming down a bit. i know we talked about it, we have run a longer position in equities it's because equity volatility was so low it allows you to have a long position but then have downside protection all of a sudden when that goes away or the volatility picks up, your hedging tool becomes less robust you gotta run a bit lower risk going into next year, that's the case >> that makes me think of credit in some respects, not that there aren't risky parts of credit

but is credit more attractive to you today than it was at 1:00 yesterday? >> yields. i would say a couple things. first of all, not entirely because the front end of yield curve has held in today, including today, rallying today. i still like being in the front end of the yield curve and clipping as much-year- as i cano the three or four-year part of the market if we can keep getting 6, 6 1/2 yield, that's great. i find the long end -- as i said the other day, i don't want to be involved with the thrill thrill-seekers we haven't backed up that much i'm still running the same equation keep a bunch of income i do like credit i like europe in terms of

getting yield. if next year i still think you are going to get 10% to 15% return in equities that's a pretty good portfolio if you can achieve your goal in that income-producing asset and get a decent return in equities, it could be a pretty good year. >> you spent many conversations saying that your favorite part of the yield curve was the belly. now you are suggesting you like the front end more am i reading you right >> that is right think about what happened. the front end of the yield curve pre the last two days, the back end backed up a tremendous amount the front end got you as much-year-much yield as you need. we pulled it in because we are in a rate -- not rate hiking cycle. i don't think rates are going to move lower you get plenty of yield in front end. we have brought it more to the front end of the curve

>> if the fed admittedly has no idea what the new administration's policies are going to mean for the inflation picture, do you feel like you do in terms of what they're going to mean for the investment picture? we have a shutdown coming up before the administration even takes office you have policy being made in such an unorthodox way given musk's role and others who are put into positions of unelected power. i think it's fair to characterize all of that and what it's going to mean for policy and what it's going to mean for markets there's a lot of unknown >> listen, i think the range of outcomes going forward -- i don't think anybody can put the algorithm together all of these become very difficult to figure out the algorithm what spits out on the other side there's things you can do. i believe in this concept.

build income, stay stable where you are in the yield curve then i still think -- think about what interest rates do i heard commentary what's the interest rate that would really affect the equity market is this this level, that level i don't think it's that scientific today most of the big -- talk about the mag 7. their net short debt, the net long cash, the interest rate doesn't impact it that much. i like compounding growth. i like these companies that keep compounding tech the free cash flow generation these companies are throwing off is incredible. i like the idea to compound growth where it makes sense, where your free cash flow generation is terrific keep your income then we will try and understand the calculus of how all these developments play out over the next few weeks and months. >> you do think as much about equities, i think, as you do

credit and bonds, because you have to in your role, right? you are head of the global allocation team. are you rethinking within the equity market question -- like, okay, i thought the broadening was going to happen. we were getting all bulled up about the new administration's policies spurring more growth and being so timulative that broadening had to happen are you rethinking that strategy >> no, not really. i think i said on your show -- what do you think of small caps? >> i know what you are going to say. >> i still think we live in a world where data is extraordinary. i think those companies that are building the mode and have created a large mode will perform. we go through mes on that. the spend on ai is tremendous.

utilities participate there. cooling in places that participate there. i think there's been some change around software. i think we can -- without going into individual names, some of the semis have changed and the upside down side across some is interesting. think about what's happened with broadcom i think that evolution change. i like technology, but you can shift a little bit within it i think the one thing that's also playing out is the consumer is in good shape i'm still willing to ride alongside a consumer and in some places that leisure, hospitality that i actually think is a good place coming into next year. >> lastly ask you before i let you go, you did reference bitcoin in your commentary around perceived froth in the market blackrock has etf business around bitcoin you have leaned in

what do you make generally speaking of this asset class which appears to have new fundamental backdrop perhaps i don't know whether it's historic value i don't know whether there's a -- i know there's embracing like we have never seen before from policymakers in washington and those who are going to be taking office on january 20th. >> there's a lot to unpack there. first thing i will say is, the administration dynamic is significant. second thing i would say -- i have -- we talked about it on the show the debt in the u.s. is too big. we have -- think about it. what do do you do with that? how much debt we continue to roll over. the disposition within your portfolio what you own in hard assets, real assets, are things that run counter to currency and debt should be part of the portfolio and deserve a seat at

the table going forward. we can talk about gold, crypto the reason why i do believe in froth is not necessarily -- we can debate the valuation of bitcoin or others. it's the speed of which they have appreciated so quickly that gives you a little pause it's a speed of which some of the tech, some of the automation names have moved that's the part that gave me pause recently i think they're in a different dynamic because of the debt in the country. i think hard assets, scarce assets deserve a seat at the table going forward. i think that's right when you build a broad portfolio, historically, 60/40, i own long bonds, long interest rate exposure because that was the ballast. particularly if inflation is higher, that doesn't work. how do i create more balance think about the beta we talk about volatility think about hard assets. then how much risk you run build a lot of income. if you compound income, it

becomes attractive different portfolio construction than historically, for sure. >> you always have a seat at our table. we are happy to have you any time thanks for spending time with us, trying to make sense of that see you soon let's bring in joe and christine na joe, what do you make of what he had to say >> as usual, very smart. very thoughtful. i agree with what he said. let's be clear, i think we're in a bull market. i think there's different types. i think where we were before the fed meeting was a bull market that had optimism stepping into euphoria i think where we are told after the fed meeting is we have optimism that will border on skepticism the reason that i say that is because i believe sentiment and positioning yesterday are like -- rick used recalibration, borrowing that from the federal reserve. the market recalibrated yesterday in terms of its

positioning. i had suggested in the last several days that fund flows indicated that positioning still believed the broadening out trade was alive and well i think after yesterday, we could feel pretty confident that in the coming days we will see fund flows that will tell us that we have kind of neutralized that broadening out. you step into 2025 with a clean sheet of paper i think the next eight to 12 weeks, i agree with rick on this, the next eight to 12 weeks are critically important in addition to the eco data now you have to elevate earnings you need to meet some really optimistic earnings targets in 2025 i look towards that. a clean sheet of paper you move into the new year, positioning is neutralized we see where we go from here. >> kristina, you made the case, you are a believer in the broaden gs broad

broadening position. have you changed your mind relative to yesterday? >> absolutely not. we put too much stock in -- let me take us back to december of '21. that suggested that the fed was going to hike less than 100 basis points in 2022 ultimately, they hiked more than 400 basis points we have to take that with a grain of salt. it doesn't change anything for me i still think we are likely to see three to four cuts next year i still believe we're going to see a reaction sell celeration. >> why don't you take the fed and not necessarily do i want to say at its word, because the summary of economic projections is not their word. it is their assumption their projection why do you think we will get three to four cuts if they admittedly are to some degree --

i don't want to say worried. but they are concerned that inflation is a little more stickier than they expected it to be a few months ago >> first of all, because the fed has a dual mandate the fed is also concerned about labor. we heard jay powell say yesterday multiple times that the labor market is looser today than it was in 2019. that was the rationale for the cut. we could see cuts based on that. also, the rationale for expectations of higher inflation next year than had been projected in september was that it has been sticky in recent months we have gone through periods where that's happened. disinflation is an imperfect process. there's some progress and then there isn't progress over a quarter. that could easily change on a dime that has changed the fed's mind in the past. also, we heard from him yesterday that some members have

started to take a step towards anticipating trump administration policy effects, even after the november press conference, he said the fed will not guess. it won't speculate it won't assume. i think that it is setting itself up for higher inflation than we are likely to see. >> it might be setting itself up for a fight with the white house, quite frankly after president-elect trump moves back into the white house and if he is watching a scenario in which the fed stays on pause for a long time, dare i say even mentions the hike word, we're going to have a problem. we will not have a problem the fed will have a problem. >> it's unnecessary. we're not there yet. the bank of mexico showed restraint. some were expecting them to cut more than 25 basis points today. they said, we're keeping on our path we might accelerate easing

if we see tariffs come, if we see that policy come -- that's the more appropriate course of action as opposed to preemptively deciding what policies are going to come, the scope and timing and the impact on the economy >> i think that before yesterday, we all felt really smart about having a handle on the economy and the direction of the economy. i feel like now there's just so much that's unknown about the economy. that's why i have this attitude where we're going into the year and it's wait and see. a lot of what you are suggesting for the broadening out, it's plausible. it could happen. i have to know what's going to happen when we turn the page into 2025 as it relates -- >> probabilities what's the likelihood it's going to happen? now i feel like what was a moment, to joe's point, ofd cla. we don't know where inflation is truly going. we know it's going towards

target it may make a couple of stops along the way and stay -- overstay its welcome a bit that's going to force the fed's hand potentially, even if it does nothing >> i disagree. i don't think much has changed this week. >> why did we go down 1,000 points yesterday >> because we put so much stock in it. it's just a guest by fomc members, a snapshot in time. the fed is data dependent. i'm optimistic the disinflationary process will continue i believe that the fed ultimately will be giving us three to four rate cuts next year >> i'm happy that we had this sell-off on this side of 2025. i think it was coming on the other side of 2025 >> because of tax purposes

>> you have to acknowledge there was speculative froth in the market we are sitting here right now, you have bitcoin below 97,000. i think that's actually a good thing. i think when you look at positioning in 2025, you have to kind of be open to everything. the one area i disagree with you on is the small caps i think when you look at small caps, you say to yourself, why do i need to go there when i could stay high up in the equity size class with mid caps and large caps they give me all the exposure i need to the common themes that are strong in the market right now like artificial intelligence and cybersecurity. then looking at small caps, the composition of them, you are reliant on health care it's literally as a sector, it's poison it's a sector that no one wants to step towards. biotech itself that's the one area when i think about positioning, i'm not so sure small caps. i feel like small caps had their

chance they swung and they missed that's it. they're not getting up to bat again. >> joe likes to use hockey analogies from time to time. it feels like today and certainly yesterday when the russell got annihilated, that these things are in the penalty box again. when you thought they were getting out and maybe going to score goals. here we are back in the box. you don't believe that >> i understand they're in the penalty box. i just don't believe that we will see this story play out they are pricing in expectations for next year that i don't think we're going to see joe makes great points the case for active management in the small cap space i argued mid caps are an area of opportunity. if you are uncomfortable with small caps, go with mid caps they have the same characteristics and are likely to benefit next year to me, this is more about a waiting game i think what we're ultimately going to see is a waiting game that plays out a lot more like

september than december. >> we will leave it there. thank you. see both of you soon a look at the names moving into the close. >> micron dropping 16% on pace for the worst day in more than four years, after q2 guidance came up shorter than expected. they are experiencing inventory adjustments and delays in the pc refresh cycle. and lennar sinking the company attributing it to high mortgage rates. demand remains strong and the supply shortage continues to drive the market, results were driven by affordability limitations from higher interest rates. shares down 5% >> thank you we are just getting started. up next, the big business of college sports

we will have the top 75 college sports programs and what they are worth ahead of a big weekend for college football he will join me after the break. we are live at the new york stock exchange you are watching "closing bell" on cnbc. to go further, you need to be ready for what's down the road. as energy demand continues to rise, we're harnessing breakthrough innovations to increase production in the u.s. gulf of mexico. our latest deepwater development, anchor, produces previously inaccessible oil and natural gas, allowing us to deliver the energy we all need today

so everyone can follow their own road. that's energy in progress. awkward question... is there going to be anything left... —left over? —yeah. oh, absolutely. (inner monologue) my kids don't know what they want. you know who knows what she wants? me! i want a massage, in amalfi, from someone named giancarlo. and i didn't live in that shoebox for years. not just— with empower, we get all of our financial questions answered. so you don't have to worry. i guess i'll get the caviar... just kidding. join 18 million americans

and take control of your financial future with a real time dashboard and real live conversations. empower. what's next.

we are back. it may become one of the hottest investments in 2025, college sports listen to comments from the ceo of avenue capital group and the former co-owner of the milwaukee bucks. >> it's a phenomenal

opportunity. you are going to see a number of schools selling their teams. the reason for that -- >> to whom >> folks like us we are bidding on a couple teams. i can't tell you in essence, what we do is buy 51% of the team. >> that's interesting. what could these programs actually be worth? with the college football playoffs kicking off tomorrow, there's a list of the 75 most valuable college athletic programs this is interesting. how do we even determine the value of a college athletic department >> sports bankers and people involved in looking at buying pieces of these athletic departments are saying they are looking at four times revenue. we have talked about pro sports teams, eight to ten times revenue. more risk here more uncertainty about how to

grow revenue low multiple >> the most valuable is who? >> ohio state. if you look at the top five, texas and texas a&m and michigan, these are the schools with the most revenue. we adjusted based on football fan base it's 75% of revenue. we saw that star high school quarterback choose michigan. why? they guarantee him $10 million in nil money. >> big 10, sec, other than notre dame, dominant on this list. >> yeah. the ratings in college football are really second only to the nfl. the two conferences that get the most money are the sec and big 10 the gap between the sec and big 10 over the next ten years over the acc and big 12 is going to widen. >> most interesting to me is when you think about -- i was

going to ask you, this is a great list what do they do with that value? it's not then capitalize on this valuation and sell mark says, they are selling their teams. you have investors lining up to buy access in these teams? >> probably what's going to happen -- there are three or four different proposals out there. there are individual teams looking to sell. there are hurdles to clear what's most likely to happen is you take the revenue producing assets, tv, merchandising, retail, put them in a separate entity that's apart from the school, apart from the athletic program and sell a piece of that the private equity investors will earn a return on the growth

of the revenue in that entity. >> are they doing this because they need to monetize the value they have to afford the nil payments that are now dominating college football you have said the quarterback who was go going to -- i think it was lsu and switched to michigan and will get a big fat check for doing so. >> that's a huge part of it. another part is we seen litigation settles d or on the verge. the schools will get payments for money the court is saying that the athletes should have got. going forward, it looks like there's going to be some revenue sharing system where each school is going to start out paying their students $20 million and then going over the next ten years increasing to over $30 million. it's monetizing these assets and coming up with money to pay past liabilities. >> interesting story go to our website. >> cnbc sport right there. >> you can see the list of who

the most valuable college sports teams and athletic departments are. it's fascinating up next, warren pies will tell us why he thinks embracers should brace for a deeper correction in the new year we are back after this everyone has goals and dreams. and everyone deserves a way to get there. wherever you're going, getting there starts here. state street. invest in your future with spy, the world's most traded etf. (♪♪)

want to show you an updated picture of the stock mark et as we edge towards the close.

we are good for about 100 points or so. nasdaq was just negative but it bounced back positive, albeit slightly s&p barely hanging on to gains you have tesla down again today. micron, the big loser, down 16%. broadcom is down 2%. we will watch that as we welcome in our next guest, warren pies of 314 research. it's good to see you welcome back >> thank you for having me >> not a great bounce, right after what happened yesterday. what does it portend for what lies ahead >> you end up with strong

forward returns. that's the very near term. towards the beginning of next year i think there's too much complacency on the -- >> i need to break away. i want to get to emily in washington with breaking news. we have been tracking government shutdown news we had two law makers saying there's an agreement we don't have any additional details. both said an agreement has been reached. they are expecting details soon. they are expecting a vote in the house tonight. this was the head of the appropriations committee when i asked, are you concerned that we might see donald trump and elon musk scuttle this again? she said no. they seemed confident what they will put forward has a chance to pass we don't know details, what it is most members have not had the chance to look at this bill.

a lot of hurdles no garren uarantee a shutdown is avoided. >> let me ask this do we have any idea whether musk or the president-elect have any idea what's in the new proposed legislation and whether they have, with quotes obviously, signed off on it >> reporter: trump has been made aware of the discussions that have been going on today he has been looped in. all the lawmakers have gotten the message if he doesn't have buy-in he can kill things quickly. i think the big question is exactly what does this bill look like, what does it contain i think it's one of those things we're not going to know what the response is until it's there there have been a number of lawmakers from all different corners of the republican conference going into johnson's office, having those discussions. jd vance was a part of it as well there's the other question, how much do democrats agree with what is going to be about to happen remember, even though it's the republican game in the house,

the senate has to pass this. that is all chuck schumer and the democrats. >> do we have any idea when it will make its way to the senate? >> reporter: at this point, we don't have -- at the start of the week, they can't do that because we would be in a shutdown we are not quite sure. this could be a couple more hours before we see something. it could be a shorter time period a lot of the lawmakers, it seems like they are willing to go late tonight. it might be something where the house votes late, the senate votes early tomorrow if they are all in agreement, they could get this done and avoid a shutdown but you need a lot of agreement. >> we have the president-elect stunning people, that's how it's being characterized in some press reports, their words, not

mine, of the idea of repealing the debt ceiling that's an overhang on this >> reporter: it's a huge question that's something i was asking lawmakers. is this addressing the debt limit? there is bipartisa addressing it and for eliminating it the difficulty is that for a lot of the hardline conservatives in the republican party, they wanted a debate on the debt limit. they wanted to use it to lower some spending and perhaps reduce the government debt and the government deficit they are worried by going ahead and raising it now, they might have to deal with it in a messy battle during the trump administration but they could get a win when it comes to reducing the debt and the deficit. a number of them are concerned chip roy has been outspoken on it of course, you have seen this back and forth where trump has come out on truth social, has criticized chip roy.

chip roy said he will continue to fight >> no doubt about that thank you. show you here -- let's do an s&p intra-day. a little more strength in stocks from where -- we see a pickup at the end there. lawmakers in the house reaching agreement on a stopgap funding bill to avert the shutdown friday morning we will follow it into the close. warren, i come back to you i know where we were going let me put this news into context with how we are thinking about the market into '25. you have this to figure out. you will have more fights obviously on the hill. you have policy unknowns does any of that factor into why you think we will have a correction early in the year

>> not really. i think that stuff is almost unpredictable. we exclude it. from a macro perspective, it's the economy and inflation and you see the fed yesterday. there's too much compla seinety around the economy there's uncertainty. you saw that crop up it does introduce some forecast risk, which could interfere with monetary policy. my concern is how higher rates, which we have seen over the last few trading sessions in particular, feed into the cyclical parts of the economy and could ultimately, if the fed doesn't react fast enough and change course, could start to raise recession fears. >> you still think next year is descend? >> yeah. my ultimate view is that we're going to have this growth scare.

we had the sep come out yesterday. fed told us that they're -- they took cuts out next year. 50 basis points of cuts. they raised their estimate of inflation. they marked down their estimate of unemployment. when i look at that, i think the money is made by trading against those projections. to me, i think that -- i think they are too optimistic on the economy. i think they are too optimistic on the labor market. i think we're going to see degradation there. my view is they will cut 100 versus the 50 estimated yesterday. >> warren, thank you talk to you soon up next, the biggest movers into the close pippa standing by with that. >> two food stocks are forking one is getting fried with another serving up its best day

in years the names to watch coming up next are you 50 or older? well, this news is for you. the cdc now recommends you get vaccinated against pneumococcal pneumonia. why? if you're 50 or older even if you're healthy... you're 6 times more likely to be hospitalized. so, schedule at vaxassist.com. it's odd how in an instant things can transform. slipping out of balance into freefall. i'm glad i found stability amidst it all.

gold. standing the test of time. ♪ who knows what tomorrow will bring ♪ (dog whines) ♪ but as for me ♪ (knock at door) ♪ i'll wait and see ♪ ♪ and maybe it'll bring my love to me ♪ ♪ who knows ♪ ♪ who knows ♪

we are ten out from the "closing close ing bell. lamb weston cut its to 25 profit expectations. the company announcing a new ceo

amid pressure from activist investor which has been pushing it to sell darden restaurants restaurants tracking with better than expected same-store sales growth the company saying the consumer is starting to feel better than they were in prior quarters. shares up 15%. >> thank you up next, we will run you through what to watch for when nikkei and fedex report at the top of the hour. need a last minute gift idea? get the weathertech gift card! for laser measured floorliners, cargo liner, pet feeding system or the new garage wall protector. get your gift card instantly at wt.com

mike tolli here. we are negative everywhere today but the dow. we watch d.c., we are thinking about the fed, we are watching the bond market. we got a lot on our plate. >> very inconclusive, indecisive there wasn't a huge wave of new selling pressure essentially, a hesitation to step in. a lot of the indicators are starting to line up as happens when you have had the average stock down for weeks in a row, to look like we should be almost flushed out. it's enough anyway to justify some kind of bounce. what's in the way? the dollar keeps rallying. a new two plus year high that shows you we are thinking about a tighter fed alongside easing in europe there's a little cross currents there. the big picture story hasn't

changed. the two-year bull market is based on inflation coming down faster than the economy weakened it's been the deal now i think you have to ask whether we are in a good spot in that relationship still. >> watching some of the mega cap names. microsoft is red alphabet is now red. tesla is red again after yesterday. micron is a big disaster >> broadcom is down quite a bit. tesla and broadcom have been massive overbought, overheated vertical winners you are cashing in that. microstrategy has taken it on the chin we are cooling off to froth. some is the average stock in the cyclical part of the market is not able to muster much. we might wait for pc inflation tomorrow morning and the bond market to calm down. bonds are oversold for maybe to have some kind of a funding deal in washington >> we are watching rates

we're going to do so continuously now now we have to pay more attention to the data. we have earnings frank holland has fedex. what do we need to look out for? >> fedex traded lower since its last earnings. missing on earnings and lowering eps guidance revenue expected to be flat. profit is forecast to fall by 2% the big question, will the company spin off fedex freight, the largest less than truckload carrier? trading as a discount. you can see fedex freight moves more freight by dollar investors will listen for commentary on demand fedex planning a rate increase in january commentary about the potential inpact impact of tear ariffs and poten strikes.

>> thank you we will see what ftx does. see what nike does down 29% year to date. all sorts of problems. tell us what to watch out for. >> you set it up there expectations low for the quarter for nike watch for the new ceo, anything about a strategy going forward revenue will fall more than 9% year over year pressure from competitors continues. the wholesale business is scaled back margins expected to be pressured from elevated promotions that analysts fear didn't do enough to entice shoppers to buy. nike pulled its guidance at the beginning of october and postponed its investor day ahead of the incoming ceo taking the top job. nike warned of a tough holiday season in the fall still time to go there nike wholesale seller, foot

locker, they lost. nike's brand heat is low a separate analysis says nike lost about a million instagram followers in the last 90 days. 4 million toll illion total sin. shares have fallen after each of the last four reports. it is down sharply year to date, well underperforming the broader retail indexes. >> thank you let's see what happens it's unbelievable watching this nike story play out. >> it built up so much, more than most anticipated through the pandemic, as if it had ever single box checked in terms of how the great american brands, that you couldn't -- it's been totally upended. now with not a lot of faith in the management as they are coming in there, it's a show-me

story. >> i'm looking today at apple. we should note, it's higher, 250 bucks. that's been a great sorry within this market. you have nvidia, 130 bucks it's been hanging around key support levels technical damage to itself i know people are watching key levels to see where this thing is going next. >> first got to the prices six months ago it has been churning for a while here interesting how broadcom sometimes trades against nvidia. apple is how this market sometimes takes shelter and plays defense. we do still have a market where the top three biggest stocks, apple, microsoft and nvidia are amazing companies that trade at collectively 35 times earnings if you are at all sensitive about valuation, you can't look to them necessarily to really be the locomotive for further upside we wait and see. we get pce tomorrow. i think the equity ures

were high coming into december we are looking at the 14th straight negative. at some point, you feel as if maybe looking toward january, you are going to want to stay involved unless you have big change in the macro story. >> we will watch tomorrow morning, obviously.that's the f favorite inflation measure and that is a lot. the dow looks like it will eke out a gain and not so much for the s&p, i'll see you tomorrow [ closing bell ringing ] end of regulation, asset management doing the honors at the nasdaq we basically failed to rally here as stocks did rally at the open through the session, popped on hopes of averting a shutdown and drifted lower in the final moments into the close and the major averages heading into weekly losses after the fed reset the narrative and that is the scorecard on