so just enjoy the ride. >> no, we don't like this. we want all of the data, all of the fed speak. >> it is calm when the fed is not talking. >> have a nice weekend and have a great holiday. >> i think you turned the market around. >> i would not take credit for that. >> get rid of those bonds and start chasing. >> with those companies that buy bitcoin. >> thanks for watching "power lunch", everybody. "closing bell" starts right now. >> welcome to "closing bell" i'm in today for scott wapner. stocks selling off to close out the week, putting the santa claus rally on ice. let's get straight to the scorecard with 60 minutes to go in regulation. a decline across the major averages but we're off the lows of the session. some of the biggest winners among the worst performers. we're talking nvidia and alphabet and meta and tesla

shedding 4.5%. yields continue to climb, the 10-year hitting a seven-month high. oil on track for a weekly gain spurred by expectations of stimulus economic recovery in china. we have a special report on the move on energy later in this hour. that takes us to the talk of the tape. is this end of the year profit taking or a sign of a bigger rotation to come in the new year. here with me to discuss this robinhood stephanie meyer and ali phillips and travis mccourt. but first i want to get to steve covac. >> this is the worst santa claus rally ever. tech is taking it specially hard today in that tech sell-off. a big drag on the nasdaq. now down about 1.6%. let's talk about apple. the cap the been chasing all week, it is down 1.4%. but sts till up more than 7% so

far. now over to microsoft. just had the biggest open a.i. investment, it is down 1.7%. microsoft will start recording losses from the open a.i., expected to be $1.5 billion for in expects quarter. over to amazon, about 1.5% and alphabet down about 1%. meta down about 1% as well. nvidia a little worse, down more than 2%. but tesla, the worst of all of this whole group, now down about 5%. excel rating the losses going into the close here. it is been on a nice run since the election, up more than 70%, thanks to elon musk's closeness with president-elect trump, but that is not doing much today. >> it has been an incredible run. travis, do you read into today's moves, anything other than year end profit taking? >> well, i think it is long over

due. i would expect more as we get into january. we just had a tremendous amount of momentum in a narrow subset of names for the previous month or so, and historically for the short-term, this typically reverses. it is a reproudening the market. maybe not forever, but probably for the next few weeks, i suspect. >> so what do you mean by that.? you mean you expect the market to be carried by different leaders. >> small mid caps to outperform large indexes. maybe not forever. earnings season is important for that. but i think it is -- >> it is not what happened in december. so what changed? >> so, in -- from thanksgiving until basically a day ago, what we had was significant narrowing in the market and all of the performance by a handful of companies and i think we're

in the process of unwinding that for the next couple of weeks. >> ali, do you agree? >> well thanks for having me. i think one of the things that we need to take a step back and look at, what are the cases that are still in place in 2025. if we think about the market, there are four things that droech drove it. one, the economic landing and allowing the fed to ease. three has just been overall momentum with respect to a.i. and fourth has the strong earnings and all of four of those ingredients are going to carry over to 2025 and if do you have that, we also agree that you will see a broadening out but technology will still be a very important part of the returns in the next 12 months. >> so everyone is on board, with the broadening out trend? >> i am. i have general positive view of mid caps. i prefer mid caps over small caps actually, at this point. but i think we're in a stock pickers market and the reason

for that is because some of the ingredients that were just mentioned, i think they are in place. but i think what you're also seeing is that we have higher interest rates than we've had a long time and they're unlikely to drop. and as a result of that, and probably even in this new administration, you might not get the tax cuts that maybe you had the last time around trump was president. and i think some of those things force company management to make decisions that help or hurt and i think it is why you're actually getting this great disparity. i see more breadth than it feels like on the surface. if you look even in the last month, the top performers aren't just the top ten names. the top ten names make up 40% of the s&p, but the top ten drivers over the last month and even on a year-to-date basis make up 10% of the s&p. so i actually think we're just in this place where you could find interest rating opportunities even if you're not

buying the s&p 500. >> i mean, i guess, but it is still another year where the s&p is going to close up, what, 26% and the index funds win again with large tech leading the way so is there anything fundamentally that you think changes that will lead to the broadening or the stock pickers winning again? >> yeah. i think when you look year-to-date, it is driven by the larger cap tech names. but there are other names included in that. if you look at united airlines and deckers and walmart, they are all top performers and they're not the biggest tech names. that is what i mean. there are underlying trends that are making you be able to find opportunity no matter what the larger s&p is doing. >> ali, i wonder, we get this year end phenomenon, where it is not just the winners selling off but the losers are actually catching a bid today looking at

the names like a bio jen gen,fed ex, energy and is there a group or a theme that you think has been left behind this year that looks good for next? >> i think one thing we talked about, some of the small cap companies you look within that sector, banking environment and economic strength benefiting that sector, there was an up tick in terms of small business confidence and one of the best jumps on the nfib in the 50-year history and we think it will carry that sector. and health care is beaten up. staying away from the pharmacy benefit managers but looking at the glp-1 companies. that is a case where having more companies in a portfolio make a lot of sense.

pairing them together could be a good exposure to solve the health crisis we see out there. >> does it all depend on what the 10-year yield does. we're now 4-6-2. near the highs of the year. is that the ultimate tell on what stocks could do. >> it seems to have been in the last couple of years. 10 year yield goes up and the market getting narrower every time because investors lose faith in the economy and they want to scrounge into the big liquid perceived recession resistant names that have been driving the market for a couple of years. one thing i do think will happen, is we've seen the bond market get on one side of the boat here and are trading on ten-year yields and we are about to head into a three to six month period of debt ceiling debate in washington. and at least when that happened in 2023, yields went down very significantly.

and so i think that the pain trade for the bond market -- with the yields coming down. i think the broadening will happen short-term because i think the 10-year treasury yield is ripe for a significant decline, i decline. >> i was going to ask. >> and i think the answer is it doesn't. >> that is a challenge. stephanie, you've got such a good advantage point sitting at robinhood, to how retail investors did this year and what they're doing now. what could you tell us? >> yeah, so generally speaking we have the robinhood investor index that looks at the most owned names and it doesn't matter how much money you have in your account, it sort of looks at your positioning. and from that, you could tell that our -- customers have been definitely buying some of the largest cap names and they continue to hold them. but they trained around the

volatility. so we saw in the month of november, actually, post election, our in dex caught up with the broad indices and on a month to date basis, it is outperforming the broader indices now. and there was a good amount of tesla and a lot of apple. but when they traded around this volatility, what you've seen is that they've taken some profits in nvidia, they have taken profits from tesla, but i saw more recently that they had been adding to that name in the more recent, since the 18th tesla has fallen in price. and we see our customers take those opportunities to buy more or trim and take some profits. >> ali, i wonder how sentiment and positioning figures into your view, if it does at all? we have had a nice run, but it does feel like there is healthy skepticism in this market. what do you think? >> well, for us, there is always a reason not to invest. but history shows over time that

actually by staying, it is not timing the market, being time in the market. so holding high quality assets is really the best way to create wealth for clients over time. but to be fair, we would love a pullback. there are several companies that we've been looking at, high quality that we haven't gotten comfortable with the valuation and if we were given the gift of a pullback in january, it would be opportunistic for the companies you think would be doing well over the next three to five years, not the next three to five months. >> what are stocks doing, it feels like a long time since game stop. >> -- and palantir has been a top holding and then a lot of companies that i think are customer base considers to be more like utilities. microsoft, apple, and then in the entertainment space, things like disney. so they try to snuff out some value as well. >> i mean, not doing too shabby

with palantir up. we'll leave it there. thank you very much. we appreciate it. open a.i. saying it is moving toward a new for profit structure in 2025. our kate rooney is here with the details. >> this transition for open a.i. has been a bumpy one. the first time the company has laid out its plan which is for open a.i. profit arm to become a public benefit corporation. the same as any type of for profit business, in terms of what a pbc is, but with a dual mandate. so it has a fiduciary state and a publicly stated mission. ben and jerry's are well-known for this and ex-ai. and the cash crunch behind the decision. saying we once again need to raise more capital that we'd imagined and that in part investors need conventional equity and less structural be

spokeness. that has been a headache at times for open a.i., on displace when sam altman was austed about a year ago. and the structure could be confusing. it does involve this capped profit company controlled by the nonprofit which will still exist as part of this. was not a structure that investors loved. those that i'm talking to, they are relieved by this and it makes it easier for the company to go public. but elon musk is theef elephant in the room. he's tried to throw a wrench in this -- musk is a co-founder and he did rival firm xai. and open a.i. has been fighting back in court. >> so is it his a.i. company competing to be a nonprofit and what does it mean if you're doing a nonprofit and valued at a hundred million dollars and taking money -- >> when you have one of the big

stated missions, whether it is a.i. for good of the humanity, so there are more traditional corporate structure and not necessarily a nonprofit. but they're seen as a dark horse in a.i. they're relatively new but have been able to raise boat loads of money this year. have made a lot of progress. they have this chat bot that competes with chatgpt and musk is something that could not be ignored. and interesting to see him as an adversary of sam alt man in all of this. they used to be friends. they were co-founders and you've seen this very, very public battle play out over the last couple of years. >> yep. kate rooney, thank you very much. we are all over today's big market move. dow is still down almost 400 points even though we've come off the lows. up next, with deep waters, gene munster what he's forecasting for that space as we head into the final few trading days of

the year. we're live at the new york stock exchange, you're watching "closing bell" on cnbc. ♪ [music] i could unlock my front door ♪ ♪ while i dine in baltimore ♪ ♪ no lock box to explain ♪ ♪ ♪ at 9:00 the doors would lock up ♪ ♪ save me from forgetful slip-ups ♪ ♪ if my home just had a brain ♪ ♪ ♪ i could make a custom pin ♪ ♪ watch the dog walker get in ♪ ♪ so ziggy won't complain ♪

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by helping you create a comprehensive wealth plan, with the right balance of risk and reward. doors were meant to be opened. tech among today's hardest hit sectors with some of the largest stocks dragging on the market. our next guest said while the pain in this group isn't over, neither is the opportunity. joining us now is gene munster from deepwater asset management. it is been a good run. and tech stocks are still up for the week. for the month. certainly for the year. they're putting together two back-to-back strong years. how much do you read into what is happening now as it relates

to what could happen next year? >> sara, this is i think just evidence of just how nervous the market is. and ultimately the market is looking for these reasons to pullback. i think we saw that a couple of weeks ago with micron, we saw it with the fed numbers and the interest rates going from four to two cuts and how that has spooked investors and i want to frame in what this funky market, what it is up against here. ultimately you said it was the returns have been good. up 33%, the nasdaq over the past year, 90% over the past two two years and that is setting the bar, what is in investor minds. so any sort of hiccup or any change in the trading dynamic, a day like today, we have don't have any news in tech, there is no reason for us to be having this pullback. but here we are. and this is evidence that tech investors are looking at the calendar and seeing one event between now and when big tech earnings come out at the end of january and that is the cpi

number on january 15th. for those investors who have enjoyed this ride, you look at the next month, it is understandable we've had this anxiousness in the . >> so with the market anxious and uncertainty around what the fed does next year and policy, do you have to be more scrutinizing of these valuations? >> i think the simple answer is no. this is what i would describes is an uncomfortable trutha the market will trade over the next couple of years. we're still in the mid part, early to mid part ever a multi-year bull run. that will be powered by a.i. and when you think about those numbers, about what the nasdaq has done, that comment feels out of touch with reality. but i want to frame it in. that we are going to have pullbacks. we had 12 pullbacks from '95 it 2000 and the market is going sideways for certain periods.

but in total over the next couple of years, that the substance of a.i. ultimately will exceed the hype and we could drill into names. >> yeah, let's do it. because not all valuations are equal. nvidia is trading 46 times next year earnings and palantir, a lot higher. >> a lot higher. i said 46. if you look at nvidiaond calendar 26, it is trading at 23 times. so i think -- >> $208 for palantir. >> $208. so again, big picture, i think that this a.i. is going to pull the whole market and we knew tech investment in deepwater, so from the perspective of where are some of the better companies, you like at micron. that is a company that we own. it is trading at about 10 times, it sounds like i'm -- something wrong with my spreadsheet here. it is trading at ten times counter 26 earnings.

and obviously had that big pull back last week but it is investors not understanding how important high bandwidth memory is. you look at apple, the expectations for the iphones for the next year for fiscal '25 is for 3% growth. they're going to hit that falling down. just based on what happened in 2021 with this huge 37% growth. they're going to benefit 3 or 4 years later for that. so i think if you look at a company like apple, or micron, i think this is still a great opportunity for tech investors over the next couple of years. >> so, you are breaking it down by ones that you vieh with lower valuations and expectations to reality is. >> and google is another one i would mention. that is part of our investing philosophy. finding the transforming companies but have an eye for transformation. and i mentioned google there. >> is that a quantum story or an

a.i. story. >> google is going to have a great run because investors will understand they made significant progress in gemini, exceeding what happened with what open a.i. has shown. that is a remarkable turnaround after this cover-up job that google did a year ago around multi-modal models ahead of open a.i. but i want to mention one thing about google. i think the google conversation will continue to move higher. i think the search numbers will be good over the next couple of quarters but there is a seismic change in terms of how people are using -- chatgpt, they don't give a daily active user number. they give about a monthly. the daily users are only 150 million. that is a small number compared to google search is about 2.5 billion a day. so my point is, there are

companies like google to own, i think that there are some questions in terms as more people see the clean results that you get with gpt and just appearing in the gemini offering, i think that company is not out of the woods but i think it has a good strong trade here. >> there is also regulatory risk there? >> there are some regulatory risk. i'm positive on google. i'm just pointing out there is still this whole question about what is going on in search and how is it going to impact google. it still hasn't been answered because most people simply don't use as much as kids talked about degenerative a.i., most people don't use it. and on the regulatory front, i think that is to me a force of nature. i don't know how to put odds on how that plays out. i think i'm in consensus camp here that that is less of an issue. >> finally, where does that

leave a company like tesla? you didn't mention it on your list? >> yes, i didn't mention it because first of all, i own tesla personally, i'm a big believer in where the company could go. i'm looking at the stock over the past year -- over the past three months since the election. that is up 70%. that is 500 billion in market cap that has added and i look at the ride sharing market and i think that could add $800 billion for the u.s. piece of it. but a lot of that is priced in and we're sitting in front of the numbers, the delivery numbers coming up on january 2nd. and i actually think that they could exceed those numbers because i think there is going to be some pull forward as people anticipate the run off on the tax credits so now the whisper is up about 500,000 which is up 1% year-over-year. with regards to tesla, the stock is going to be wild. it is probably the most progressive a.i. company that is

in the market. all of the different opportunities that they have around that. so i think long-term it should be much bigger than a $1.3 trillion company. >> progressive a.i., not progressive politics. thank you, appreciate it. tesla down 5.3% right now. it is the biggest weight in the triple q's. up next, john is here with ow insts veorshould navigate today's downturn and what to expect from the stocks in the new year. that is after the break. "closing bell" will be right back. ♪ are you having any laughs? ♪ ♪ are you getting any loving? ♪ ♪ if other people do, why can't you? ♪ ♪ have a little fun ♪ ♪ and have ♪ ♪ have a little fun ♪ is a bitcoin etf the same as owning bitcoin directly? while bitcoin etfs might offer

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major averages are under pressure but also off the session lows. we're down 1.25% and nasdaq down 1.6%. it was down more than 2%. our next guest said investors should stay patient. the double-digit upside in the charts for next year. joining me, john. it is good to see you. >> thank you for having me. >> so s&p chart, what does today look like and what does it tell you. >> i think today what we're getting here is part of the pullback after j.p. pulled the eggnog on the 18th. we have a distribution on that day. 90% of stocks were down on that day as well. distribution, there is resistance forming within the market. this is follow through on that. >> but if j.p. set the tone and this is follow through, is there more of this ahead.

>> i think so. we were getting a degrossing in january. i think what happened on the 18th as we pull that forward. so we should continue to see the market pullback. i don't think we're getting as low as the 200 day moving average and starting at about 1500 and work back up. >> why are you more optimistic in the long-term. are you expecting double-digit, we're having two back-to-back years with more than 20% gain. >> i think we could do that. even though interest rates are going up, financial conditions haven't tightened yet and that is the main bullish case you could make from a technical perspective. i'm primarily an equity guy but i listen to the fixed income market so closely and until financial conditions tighten, either credit spreads or moody spreads or -- >> you don't see that yet. we are seeing higher yields which you think you expect to continue. >> i do think yields will go up over time. they're in a multi-year up trend. so they're going up for long

periods of time and i think that stock and interest rates could get along. like they did in the 50s and the 60s. they both went up concurrently. i think we're going to that period. >> why? because the economy is so good. >> it is more of an inflationary situation. we went through a decade of deflation and now we're reflating right now. and equities are going through a hissy fit, a tantrum. while i think interest rates will get to 5.25 to 5.5 next year. >> 5.5. >> that is what the charts imply. >> people are wondering if they should freak out about 4.6? >> they'll have to get used to? >> what about nasdaq. >> i think they have a n abilit to be a market performer. if '24 was about breath

expanding, and momentum, those outperformer, as a factor, the momentum as a factor whereas should we be buying laggards. the answer is no. the answer is what we're going to happen is we're going to rely less on financials and tech and industrials but start looking more at the cyclical laggards like in energy and materials and parts of discretionary. >> where does that put small caps because that is a big question lately. it looks like they'll close the year up more than 10% but still underperformer when so many people were optimistic this is time. >> there was a break out for small caps and then you got it and then very tough. we're close to the 200-day moving average. i'm going to give it breathing room. i'm going to give small caps the benefit of the doubt and the market should continue to broaden out next year. so what do i mean by that.

breadth should improve. so i think this is a pullback that the market is using as an opportunity to get stocks that are overbought after the election at a better price rate. >> so you don't see the run-up in the mega cap as tied to the higher interest rates. >> not necessarily. what -- how i would put it is this way. at some point the euphoria that was created after the election will be ringed out and we are in that process and then the average stock will work its way higher and things will get back into gear again with interest rates and the average stock. right now a year end profit taking or whatever you want to call it. that is how we work our way higher. those parts of the market should create an oversold condition and then the market will pull itself -- and how do you get to 5.5%? >> there is different measuring techniques as technicians. one would be you assume that

the resolution in rates, it is based purely off the chart. to be quite frank. >> but you think it is going to be cool for stock. >> i think the trick is the volatility of it. the vol has to be low. >> john, it is good to have you good here in town. up next, we're tracking the biggest movers as we head into the close. our steve kovak standing by with that. >> after some interest, we'll reveal a name after this. the all new godaddy airo helps you get your business online in minutes with the power of ai... ...with a perfect name, a great logo, and a beautiful website. just start with a domain, a few clicks,

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because doors were meant to be opened. 21 minutes left until the closing bell. still down pretty sharply. but higher for the week. let's get to steve kovak for a look at what to watch. >> shares ever meta sis, the doj sued to block the $3.3 billion deal and they would extend the merger deadline until the end of 2025 or whenever a court rules on the lawsuit.

also lamb weston shares are climbing after a filing showed activist investor is working with another executive to push for changes at the company. it could result in a majority of the french fry maker's board being replaced. shares have fallen more than 35% so far this year. >> and one of the losers winning today with a catalyst. thank you very much. still ahead, the energy sector outperforming the rest of the s&p on this ugly day on wall street. what is behind that move when we come back. and as re head out, another check on where we stand as we head into the close. watching the ndaasq down carefully. down 1.75%. and the low is down 2% but we're heading south again as we get closer to the close. we'll be right back. the boot maker. hee-ha. but many do have something in common. we all trust schwab with our wealth. thanks to our award-winning service, low costs and transparent advice, every day, over a million multi-millionaires, trust schwab with more than three trillion dollars

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the next level network for small business. ♪♪ i sold a pillow! welcome back. quick check on the nasdaq 100 as we go into the bell. on pace for the worst day since december 18th when it dropped more than 3.5%. that was post fed. nvidia and microsoft, tesla, those are the big drags right now. tesla losing about 5.4% into the close. texaco and monda lease and heinz in the green, down double-digits. food hasn't been the hottest place for investors but the big tech is what is getting hurt. up next, our own bob pisani standing by. that and much more when we take you inside of the market zone. don't go anywhere.

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stop waiting. start investing. e*trade ® from morgan stanley. we're now in the closing bell market zone. the energy sector is outperforming and steven is tracking that move. and plus bob pisani on the potential for a rotation for the markets in a new year and nick breaking down the crucial minutes of the final minutes of the trading day. let's start with the resilience in the energy stocks today. no surprise, they've been among the biggest losers of the year. >> and energy did just turn negative but it is the best sector and also the top sector on the week. so the gains are being driven by the upside, including wti

trading back above $70 on track for the best month since june after a larger than expected inventory draw in the u.s. as well as optimism around stimulus in china and if that could boost demand last year. a contract does expire today so there is very thin volume there. the february contract is in the green. although it is trading below that front month. now energy is still the second to worst sector this year and refiners have been in an especially weak spot this month. down double-digits as product prices roo- prices remain muted. sara. >> so peppa, i'm curious what you're read is on the few record from here? we were talking to rbc earlier on cnbc and she said if you have friendly energy policy under trump, drill baby drill, that is

lower oil prices and tougher sanctions on iran, on oil, that could be a big upside risk. she sees it going to 80. what are you hearing? >> i think those are the two main points that people in the market are waiting for and that is also why a lot of people are on the side lines because there is so much uncertainty on the geopolitical front. on the maximum pressure on iran and also on venezuela. and if we crack down on them in a way that we've been recently turning a blind eye, that could depress global supply and have an impact on the prices. on the drill baby drill front, they do want to open the taps. u.s. is producing more oil in history so they're not incentivized to produce more. what is driving this market is also just simply the fact that supply outside of opec is coming online. it is not just the u.s. but brazil and canada and for the

moment the market is well supplies so unless there is a supply disruption or further clarity, it really feels like oil will still be stuck in this pretty tight range. >> got it. pippa. thank you. let's turn to bob pisani on whether we could see a market rotation next year. bob, as we see the anti-rotation a little bit today? >> yeah. well, i'll comment on that in a minute. the hope here is big cap tech earnings are going to grow nicely next year. some of them in the 20% range or even higher. but the acceleration is slowing down. in other words, in years numbers -- or next years numbers are not as strong as last years. here is an example. this is nvidia. this is earnings growth, 50%. it was 120% this year. and almost all of these, with the exception of broadcom, are seeing their earnings growth lower. now they're not going down dramatically. it is just decelerating a bit.

and if you look elsewhere, so let's look at the magnificent 7 for the fourth quarter of this year. the numbers are expected to be up 24% collectively for the entire group, the magnificent 7. but it is expected to be up 18% for the fourth quarter of next year. that is still pretty strong. but it is decelerating. when you look at the ex mag 7, the other stocks in the s&p, it is the opposite. so for this quarter growth is 4% for the rest of the s&p 500, believe it or not. that is it. for this quarter. but look next year, fourth quarter, 14%. okay, that is the opposite. this is accelerating earnings growth. so the rotation people are saying the issue here is are they going to get that excited about this rotation, the numbers of growth, the percentage change is very small. when you're used to nvidia and broadcom with 20, 40, 60, 80%

growth, are you interested in the single-digit or 10% growth. that is the big question. just on today, look at the volumes today. look at nvidia and broadcom and apple. volumes are way below normal. this is lack of buying interest, not some intense selling pressure that is occurring in the market and that is a big technical indicator. that tells me there is nothing important today fundamental going on. with you just don't have a lot of buying interest right now. >> and what happens with the bond yields and the fed which injected a little bit uncertainty when it said it wouldn't cut the fed. what is going to happen with the inflation reports as the trump policies roll out. >> there are four big issues for 2025. the first one is that the trump administration makes some kind of mistake. for example, they put tariffs that are too high that cause economic problems. so that would be an issue. the second would be the federal reserve makes some kind of policy mistake. maybe they don't cut enough,

they're worried about fighting inflation and they stop worrying about job market deteriorating. that is a major worry. another concern is the tech story. if there was a sudden revolt against the a.i. story, that would drive down valuations rather dramatically. that is unlikely. but it is a risk. and finally the one you mentioned, the bond vigilantes gained control and drive up yields rather noticeably. that is another problem. so there you have four rather significant problems for the market. but overall i have to say, the handle is pretty good. corporate earnings high and the economy 3% gdp growth. it is a good handle but a lot could go wrong in 2025. >> and a lot of optimism building in the ceo's from small businesses. bob pisani, thank you very much. stocks are selling off into the close with only a few trading days left in 2024. but data tracks nick coleas is bullish for next year.

nick, it is good to see you. what are you watching? >> well, for the beginning of next year, we're just looking for continued strong economic growth, continued good corporate earnings. obviously a lot more policy uncertainty both from the white house and from the fed. but this is very typical of what i call mid cycle markets. markets where the economy is growing, where earnings are growing but there is still lots of things to worry about in retrospect these times look easy like the 1990s or the 2010s and the market tends to chug along higher every year. >> the worry is healthy skepticism and sentiment into the market. the question of the hour, i feel, has been whether the market could broaden out in the new year. you have just heard bob talk about earnings expectations. we have had three gets on the top of the show that said the market is due to broaden out. do you buy that. >> the fascinate thing about this year, we ended last year with big tech plus, the usual suspects like amazon, google,

tesla and meta as 40% of the s&p and we exit the year with that group of ompanies plus tech being 70% of the s&p. we're near half of the s&p in the tech names. will it broaden out more next year? perhaps. but i'm sty thinking that those names plus the tech will be 50% to the s&p sometime next year. so it might broaden out to financials. there have been a leadership group this year. >> just because it is so big. i was talking earlier, the entire market cap of the magnificent 7 is larger, in europe, they don't have any a.i. companies and the stocks haven't done as well as the u.s. there was a big gap this year. is this a healthy thing? >> it is a necessary thing. when you think about what drives investor sentiment over time it is the possibility of earnings surprises. bob was talking about the acceleration ever earnings outside of big tech but it is

hard to get excited because even if they do 14%, they're not going to do 20. so with tech, you have the possibility of much better earnings growth over time than the rest of the market and that is why the valuations are so high. valuations are driven by expectations of surprise. since that is what drives stock prices and those expectations are high and i don't see any reason they decline precipitously and cause a retraction? retraction. >> and what about the 60/40 portfolio. that was tough in 2022 with the bond sell-off. what do you expect here? because bond yields have been creeping up to end the year. >> yes. we've heard that question a lot from clients. the 60/40 was down, and got news going into 2025 is yields are already pretty high. so even if yields back up another percentage point, it is nothing like the 3 or 3.5%

increase we had in 2022 and so you might not get a lot of diversification, but not where near as bad as we have in 2022 and it is a great point and one we hear a ton from clients about. >> >> and i know you've been asked about bitcoin. you've analyzed it. does the nasdaq have to work for bitcoin have to work. >> what we've told people about bitcoin over the years is you put a small amount of money to work and do you it regularly. it is one of the assets where you into he had to dollar cost average over a long period of time because the volt tilt could be so profound and we stick to that advice and it is an interesting asset. we don't think it is more than 2% of our portfolio but it is an interesting and novel asset that has grown into something that people take seriously when it wasn't. >> i'm glad you reminded me of that. it is hard to know for bitcoin what is priced in. but to the overall market, as far as trump policies and

pro-growth policies like deregulation and lower taxes, what is the market already? >> that is the $64 question. but the answer is bitcoin leaves and breathes by the ext catalyst. if it is a reserve stash for the government, that is helpful. if it is the market continues to like the asset and sees it as a valuable tool and adoption continues to grow, that is another catalyst. so it is become creeping catalysts versus the seismic catalysts when futures first took off. >> i think it is hard to tell that about bitcoin. it is a conversation we'll continue to have. nick, thank you very much. it is great to talk to you again. after data track. have a great weekend. as we head into the close. let's take a look at the overall market. it has been a day of selling since the opening bell this morning. and a pretty deep day of selling for especially the nasdaq. worst day since december 18th after the fed meeting. we're going out with a close of 1.5% lower on the nasdaq.

s&p down a full percent. and it is big cap tech that bore the brunt of the selling. but it was broad across the board. if you look at the nasdaq 100, tesla and nvidia and airplane, worse up 1700% on the s&p. and firmly higher for the nasdaq. that's it for us. >> thank you. it is the end of regulation. at best friends animal ringing the bell. some declines for some of the biggest winners like tesla and nvidia . welcome to closing bell overtime. eric sheridan joins us with his top picks