out and do the -- by the way, when is new jersey getting rid of this full service thing? it's got to get over it. it's over. >> now every other state should bring it on. >> it was oregon and i think they killed it. >> they did. >> oregonians, let me know. thanks for watching "power lunch." >> "closing bell" starts right now. welcome to closing bell. i'm scott walker live from post 9 at the new york stock exchange. this make or break hour begins with the road ahead for stocks amid rising rates and pickup in volatility ahead. we ask our experts how to navigate the changing environment. we will show you the score card with 60 to go in regulation. we have the dow now green but s & p 500 and nasdaq is red, cooler than expected ppi sending all three major averages higher today. yields did not budge that much. that's why we look inway we do. there is the ten year below 10.80 and we have to watch the 2

year too. we have a highlight for you, lilly shares are lower after guidance weaker than expected, down 7%. kb home are higher today. and sig jewelers is down 20%. it takes us to the talk of the tape. can stocks turn in a strong year if interest rates stay elevated and the fed stands pat for several months? that is a key question. let's bring in dan greenhouse of sola alternative asset management. what dooupg? >> clearly you have a little indigestion with the markets with the yields going up to the levels they have risen and the speed to which we have gotten here. i think we have seen this and on the assumption that yields will top out in the 4.75 to 5 range, then presumably whatever equity rally we have experienced will continue doing so.

that is my expectation. >> is that what you think about yields, that they will run out of steam, they will not cross 5%? is that the danger zone, the line in the stand for the market? >> well, we always knew as rates were running up that the danger zone was in the upper 4s. you are seeing stocks wobble. and the equal index is down twice as much, indicating weakness beneath the headline. but with yields moving up, you have to ask yourself why that is. a lot of it has to do with repricing the fed. some of it has to do more recently with worries of inflation moving higher. we can debate whether that is good or bad for stocks but i think there is a limit to how far that is going to run. i think you are not quite at max pessimism but coming up on it. >> there was a note that kind of speaks to this and i want to hear your reaction. the character of the trading environment has changed and distribution of potential

outcomes has widened. market participants are actively debating the sequence and impulses of trump 2.0 policies as well as the intended path of monetary policy and with all that comes some friction that manifests in portfolio risk reduction. he said volatility will likely stay for a bit. do you agree with the landscape now that the trading environment has changed, the character of it? >> i think that is probably true for the immediate future. but to repeat my position for viewers who don't know, i'm deliberately, qualitatively taking a little more optimistic view on things. >> and you have been largely for a while. >> but with respect to the incoming administration, the view universally is that tariffs are bad, going to be inflationary, immigration crackdown will be bad and inflationary. i'm tabing a little more optimistic view of that partly rooted in data and analysis and also like i'm going to take a

qualitative view of it. ini said what tony is getting at but the first quarter and into the second quarter as this becomes clear, investors will ascertain what this means, what is going to happen and what rebutles may be from other countries and you may incorporate that into analysis. >> you are largely positive on the run of the market. >> i'm still positive on the market and investors should be as well. >> rick reader with black rock was on the program yesterday and i want you to listen to where he thinks the outlook for the market is and especially the nasdaq 2 which he has liked for along time. the stocks have been upset as rates have risen. let's listen. >> we are still moderately long. i think if you look at tech, stock buy back and the amount of cash out there, pretty hard to see the equity market not finding its footing and having a

decent year, not like last year. >> so you would be a buyer on the diple? >> 100%, 100%. >> 100%, he said he thinks stocks, more volatile, and rates can still go up on the long end, you could still do 15% return this year which i think a lot of people would be really happy with. >> sure. my price target is $7,000 which is still on the not super optimistic side of things but i rarely disagree with rick and i don't there. the underline economy is holding up well. we saw that with jobless claims. real wages are positive. rick made the point that the balance sheets are clean. the investment story is still there. we are still waiting. everyone seems to be waiting for the headlines that the a.i. story is overblown or we are overbuilding. there is no indication that is the case. we have nvidia's earnings to perhaps tell us otherwise.

i think a lot of stocks, the stories are still fundamentally strong now. we have seen qual com, adobe, and intell dealing with some huge drops. amd, micron down 30%, 40% from the highs. if you believe that a lot of the stories remain in tact, this is a tremendous buying opportunity. you are doing a disservice by looking merely at the headline and saying stocks are down 3% from the highs. i think that misses the larger story. >> earnings will be a big story starting with the banks. on that note, let's bring in leslie picker. she obviously follows the space. you are debating if not looking at the $185 billion question. explain. >> yes. so as you know, scott , we have talked about it a lot on the program. bank stocks have come full circle when the prospect of deregulation sent the sector soaring and as gravity has taken

hold in recent weeks, booster capital requirements and what they mean for buybacks remain an open question. about $185 billion figure, goldman sachs estimates that's the amount some of which could be returned to share holders, the amount of excess capital if banks were required to hold less of a buffer against a stock. banks have been hoarding capital despite the stronger economy due to the expected height of the rules under the new administration and turnover in the fed superadvisory role, it is highly likely that those rules will be far less ownerous. goldman says the industry could repurchase 4.5% of their market cap in 2025 and could have $90 billion in excess capital if basell 3 were to be just as

tough as proposed. >> leslie, appreciate that. courtney garcia and brian leavitt joining us now. let's discuss this, good to have you with us. the rubber meets the road tomorrow. we start getting earnings and it will begin with the banks. i looked at bank of america's security equity flows and clients are still buying stocks for ten weeks in a row. now they are focused on healthcare and financials. should we be as well? >> i think financials look really good here. i think the folks has been on rates being higher for longer. i think there are a lot of things that will benefit the banks. you have a steepening yielding curve and also if we get passed the higher for longer rate, what is more beneficial is the mna activity that will increase when we get to a new administration. goldman sachs with investment banking record is one of the better banks to position for that. you want to take advantage of

the banks here. they are trading at good value and will increase dividends. leslie brought up a great point, i would stay in the banks. >> financials are one of the better performing sectors day in a pretty mixed day. what do you think? >> it has been a mixed day. we got a reasonable producer price index report. hopefully the consumer price index comes in line with expectation tomorrow . the reality of all of this scott is that we had a market that was expecting lower rates, that had priced in a lot of rate cuts over the past years and had to back it out. we basically backed out the rate cuts, all but one. we had a pretty significant steepening. at some point, rates get too high and you start to slow things down. we have done all of that. and yet, the markets, the broad market peaked, down 5%, a bit

worse. but we have dup that. so the question is how much more policy uncertainty are we going to get? i think the producer price report helps and the consumer price index tomorrow should help as well. >> you have been positive on the market for a while. can you be as bullish today as you were in september as rates are up more than 100 basis points since the cut and projections have changed dramatically for the fed's road ahead. how does that match up? >> the markets will trade on whether things get better or worse. we have seen the big move iprates which has not been good, similar to what we saw in 2022. what you need to see going forward is inflation staying in the comfort zone, break evens coming back lower, yields coming down. as long as that is getting incrementally better, that should be a good backdrop for

markets. >> let's just say if there were questions on the valuation of the market then, the dynamic on rates has changed which theoretically would put more pressure on the multiple. >> right. >> do you need to change your own view of the market as a result? i'm trying to get from where we were to where we are and how sentiment i don't feel has changed to reflect what's happened? >> we are working our way through it. we have not had policy uncertainty for a long time and markets adjust. you get volatility almost every time there is policy uncertainty. with regards to valuations, if you look at an equal weight index or the median stock, it is not overvalued. it is generally trading in line with averages, broader market, sure. when you are at 4.8, that's a different backdrop but the markets are moving to respond to that. going forward if things get incrementally better similar to

the end of 2022 into 2023, you will be back into a better market backdrop. >> the big change obviously and you know it better than anyone because we sat here on election night. you had september cut, election night where the outcome was potentially different thap many had been figuring it could be in the waning weeks of the campaign. so maybe the optimism around the administration, different ftc, tax cuts, and a friendlier environment around business, not to mention the fact of what dan said, you are already inheriting what is a strong economy. now you are going to gas it further. so maybe all that offsets whatever the concerns are around tariffs, and rate changes that have happened and the fed's slower pace forward. >> i think that is the reality, right? markets really ramped up after the election and then they come back down because inflation rates come into focus.

but the story of deregulation and taxes has not gone away. i think at this point, we have to pass the election and we know who is going to be in office but we haven't gotten to inauguration day so markets are trying to price in what was spoken of in the campaign trail, and not what actually happened. i think that's what markets are waiting for. i think there are still inflationary forces and you want to be prepared for that as an investor but there are pro business forces and the question is can they weigh each other out. is the deregulation and lower taxes offset the inflation? that's the question and the markets are hopeful. >> you put it on a scale and figure out which will outweigh the other. back to the conversation in a moment but i have news developing around microsoft. pippa stevens has that for us. >> hey, microsoft plans to pause hiring in part of its u.s. consulting unit as a broader cost cutting strategy according to an internal memo reviewed by

cnbc.com. this follows some job cuts that microsoft announced last week. according to the memo, it also instructs employees to not expense travel for any internal meetings saying they should use remote sessions instead. this follows meta saying earlier today in a memo that they will cut back on 5% of their work force. shares of microsoft down more than 1%. scott? >> okay, pippa, thank you. we will follow that. you take this as just companies getting a little leaner or something to keep in the back of your mind about cutting travel related expenses and things like that and say maybe these are the earliest signs of maybe the economy is slowing a little bit? no? >> 2025 was the year of efficiency and that's what is clearly --. >> 2.5? >> that's right. all of the companies still have massively larger head counts today compared to precovid levels. so some culling of the work force if you will, one of the

headlines is we were lowering the lowest 5% of producers, i forget who that was. >> i think it was meta. >> year of efficiency 1.0. i don't read anything into this from a macro economic sense. the companies should be getting leaner and getting rid of the bottom performers every year. when you employ tens of thousands of people, it is something that you are supposed to be doing when you are trying to be as rational as you can. i want to get back to the market real quick and say to the point we have been talking about, in the short-term here with respect to yields and inflation and the stock market, if the ten year is going to get up closer to 5% and momentum suggests it. >> it is like 4.8. >> another 20 basis points. but if you were to get up to 4.95% or so, i would like to see the stock market trade down to the average which is about 4% lower than it is now. that is a top to bottom decline of 9%which is pretty

substantial, not inconsiderate. and i think it would do a lot for setting up the rest of the year for the types of gains to expect. >> would you be buyers of that, brian, if you have a continued rate increase, stock market gets more upset about it, you get some tariff headlines on january 20th at 12:30 in the afternoon once the address is taken and president trump is in the white house again, would you be a buyer? >> i would be a buyer of that and i would be a buyer of the 5% yield. so the only way that this gets derailed is if the inflationistas are right and inflation really reaccelerates and the federal reserve has to clamp down on it. this adjustment around policy uncertainty because the growth trajectory is too strong, that's okay so long as inflation doesn't break out. >> and there is no evidence and you are not saying that. >> there's not. you see a little in the break

evens. i have been saying the irany is the last time we went through a trade conflict, the federal reserve lowered rates on the other side of that because business investment went down and growth deteriorated. i would argue that the bigger risk here is that if there is an extended period of policy uncertainty, it may hurt growth which would be okay because the federal reserve can reingaej, rather than leading to the inflation environment that people seem to be concerned about right now. >> court, want to weigh in on that? >> i think the bond markets have been telling you that the fed does not need to add stimulus into the good economy? and that's the question, did they need to cut in the first place ? the economy has done well with higher rates. i think staying at this level is not a bad thing for markets. i think the conversation you are hearing more is then increasing interest rates. i don't think we are there yet. but that would be a bigger conversation. >> that would be a game changer. >> i was on air with you and

brian will know this, no offense, i don't think you are reading the fed minutes as closely as brian, that's what i'm insin uating how do you know that? >> i don't, i apologize. maybe you are both aware that in september of 2022, the federal reserve put out that that fed meeting had the first projections for 2026. in those projections, they were telling us that inflation was not going to get back to target until 2026. that's the first time they officially said it. what they also said in the report that was released with the press conference was that they were not willing to raise rates enough tobring inflation back to target sooner than 2026. and that was in 2022. so they told us already that they are not willing to damage the economy enough to bring inflation back to target. so to the point both they are making that rate hikes are hur paps on the table and i take the other side of that. they are not willing to do it

yesterday, today or tomorrow. while higher rates for lopger than the market originally anticipated should be your base case and it is the market's base case right now, at this point i don't see why they would hike rates. >> i agree with you. i think we are making the same point here. markets can do well in the higher rate environment where they are now, right? i think at this point, markets are saying there is maybe one cut, maybe none at all. i think rate hikes are premature but you are hearing the conversation more. that is becoming more realistic than cutting more often than we realize. >> anything else on how closely people are reading? dig your hole deeper. >> everyone is wonderful and equally smart and talented and capable, and i apologize to everyone everywhere. >> okay, good. that was needed. dan greenhouse, courtney, thank you as well . let's go to the

biggest names moving in the close. >> do you think instacart is just another delivery app? think again. maple bear, the parent of instacart is underappreciated in the grocery delivery space. they point to deep technology integration with groceries across the nation. and btig likes this. it is trading within the $46 range. switching gears, boeing falling but recovering from lows earlier in the session as airplane deliveries fell in 2024 to 348. that is down over 30% from a year ago. it also widens the delivery gap with boeing's biggest rival air bus which delivered 766 jet liners last year. but supply and production both weighing on both names. boeing is down 2% today. scott? >> thank you. we are just getting started on closing bell. coming up next, aswath damo is

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yeah, look at that. -honestly. someone get a helmet on this guy. xfinity internet customers, ask how to get an unlimited line free for a year, plus a free 5g phone. we are back. quantum computer stocks pulling back following an a monster run to say the least. is it time to bet against those names even further? kate rooney is here with more. some of the stocks last week, mid week were down like 40%, 50% in a single day. >> yeah, scott, double digits still at this point. as far as shorting the stocks, it has been a much better year for the shortso far at least. you saw a 500% rally on average. last year the biggest names think of i ety and oncue down. that is after comments from

jenson wong and then mark zuckerberg both pouring cold water on the hype. according to data from s3 partners, short sellers are up $760 melian recooping more than a third of last year's losses. last year bearish interest in the names soared more than 300% to $2.7 billion. as s3 puts it, the shorts showed unwavering levels of kwigzs even though the statements were dripping in red ink. it is crowded, almost 18% of float for the quantum stocks sold short. the average stock is about 5%. it is pricy, borrow foes can be as high as 200% and this really adds to the volatility. >> thank you, kate. joining me now is school of business professor, dean of

valuation, ing a as wath ammo. i know you don't own the stocks but is there an on a market that has anointed certain stocks as kings and there may not be a lot of there there at least in the near term. what do we take from this? >> i think we have known that these are not going to be here next year, two or three years from now. there will be a timing lag. i keep trying to wrap my head around why it is such a big story but jenson wong and mark zuckerberg have made it the story it is. it is almost like the traders were not willing to listen. i wouldn't be surprised if this wasn't the first of a wave of

things you see this year where someone with credibility says we are getting way ahead of the game here and this is not going to happen in the near future. you are going to value the companies based on the credits. >> you can have bubbles in certain pockets of the market without having a bubble in the entire market. we have discussed that a lot of times. is that what you would look like that it can be a self correcting mechanism that doesn't need to upset the whole story? >> and these are not really companies in the traditional sense. we look at the market gap before the correction and it's small. it is petty cash for many of the big tech companies. my guess is the best end game for the companies is they get a quiet by the big tech companies. i can you are trading for who will get acquired by whom rather than what the companies will become as a steady company. there is no business you can point to at any of these

companies. >> they are a speculator's delight and that's what it comes down to. let's get to the here and now companies, the ones that are delivering and will continue t do so. when you look at what is going on in mega cap teg, you can talk about nvidia directly if you would like to. what do you see after a group of stocks sort of ran out of gas, got reignited, had a top heavy market and then seemed to be in question on the nearterm because of the move on interest rates. >> you can see what happened when the mag 7 pulled back. without the stocks pulling the market ahead, you will come back to it. that is not a bad thing. back to back 20% plus years for the since the 1990s, doesn't mean this has to be a bad year but getting 9% is not a bad

return. but people's expectations have been set so high the past few years that it may be time for a correction. >> don't you think the environment is still pretty positive for stocks? if i toldia baseline the economy is at a good place and we will reup some tax cuts and have deregulation and enable more deals and that in inself will be a stimulant for stocks? >> you can argue that much of that is already priced in. it is like the market started expecting a trump win middle of last year. it got there well ahead of the pollsters and experts. i think it started building it in. the tax cut itself i would not put too much weight on it. i don't see it like a collective tax cut like last time. this will be more selective, 21% down to 15 or whatever it turns out to be. i think if there is a gain here,

in sectors, particularly heavily taxed or sectors where regulation is a challenge. so rather than market wide, it may be smaller sectors. but those sectors do not have the market cap to carry the entire market. so you have to keep hoping that big tech doesn't give up too much of its gains because it does, it will be too difficult to make it back up. >> when you look at the move in rates, as the dean of valuation as we refer to you as, do you say where i thought where the market was sort of pushing the limits on the multiple is now going to be pressured further? because how can you not have a pressured multiple in a different interest rate environment? >> no, i think it really depends first on whether rates continue to go up and why they go up. if they go up because the economy is stronger, i think the market can sustain it. if they go up because inflation is increasing, the market will have a tough time dealing with that. not only should we keep our eye on what rates do but also on

what inflation does. it's that dual effect that will play out. >> do you think it will be more of the former than tha latter? >> i think it is going to be on the former but there is a very real risk of the latter. i think you can't rule out the risk that inflation pops up again especially if the economy starts to overheat. i wouldn't put those worries away. that worry is real and the market seems to be concerned about it as well. >> we talked about different sectors underperformers, and the like, and how things have reversed a little bit to start the year. there seems to be more optimism in healthcare which you haven't liked. you said when we visited not that long ago in the middle of december, was quote, in trouble. what do we think about here in terms of where the space could go? we are talking about the jp morgan healthcare conference, and some deal making has been done. i had people buy some stocks on

the other program i do here. there seems to be a change in sentiment. is that how you see it? >> my concern is more longterm than short-term on healthcare. we can't afford the amount we are spending on healthcare. i think it has been along time that we have been waiting for this to happen but i have a feeling it is coming no matter who is in the administration. what form those controls will take, i don't know. but that is my concern longterm. short-term, healthcare companies are great on how well their products and block buster drugs will do. that will carry the profitable companies forward. but i think the longterm, my concerns remain. >> all right, professor, i appreciate it, as always, we will see you again soon. up next, edyard eni is raising the flag ahead of y xtl uw and we will telyo whne. (♪♪)

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stocks getting back gains after today's cooler than expected inflation data. our next guest cautions there could be more downicide if tomorrow's report comes in hot. ed yardeni, good to see you. >> thank you. >> why do you have that view? >> the big issue for the stock market is the bond market. we argued in august last year, i was discounting too many rate

cuts by the fed. we thought the economy would prove to be resilient and strong and that turned out to be the case and here we are up from 3.65% on september 16 of last year to 4.75% there abouts now. and so that, a lot of that had to do with better than expected growth of the economy with the fed probably going on pause and we also have some stickyness in the inflation numbers. i think the markets will be focusing on the areas of where inflation seems to be stuck above 2%. a lot of that is in the so-called super core which of course is services excluding rent inflation. in addition to that, we have energy prices going up here. it was deflation over the past several months that helped to bring inflation down. it wasn't services. now we have to be concerned that the next couple of months, we may have an inflation scare.

>> doesn't the ppi tend to be a better read to the cpe, a better gauge on inflation according to what the fed watches? >> you are absolutely right and it's a very good point. i would say that the month over month number was better than expected but whennia look at it year over year, you are still seeing an upward trend in the services area. so the best of the inflation news is behind us for the next few months. again, that's not the only issue for the bond market or stock market. both he to discount the fact that the fed may be a none and done outlook for the federal funds rate for the rest of the year and i'm not sure everyone has understood that. meanwhile, as you said, a while ago, with one of your other guests, we are close to 5%. i think there is something magical about that number. i think we will see some rebalancing out of stocks. i think 5% is an attractive

rate. >> are you changing your view on the equity market? you have been positive, bullish. are you moving that ball in a different direction as a result of the back up in rates? >> no, good question. i'm stig looking for 7,000 on the s & p 500 by year end. i think the economy will be resilient. i still expect that we are in a growth boon and i think that the s & p 500 earnings will be $285 a share this year which is one of the highest on the streets. so i remain positive on the earnings situation. maybe it is wishful thinking but i'm hoping for a buying opportunity. i'm not recommending that anyone sell into this but if you have got some cash, i would look for an opportunity to buy. but at the same time, i would recommend buying bonds at 5%. >> i mean cash is looking good at 5% too. >> absolutely. >> there is competition again. that's the point that you are

making for certain. >> yeah. >> what happens if the fed, if the fed doesn't cut anymore this year, however outlandish that may be, maybe once, maybe none, is that a problem? or does it not matter as long as the economy remains strong? >> i think it will happen because the economy remains strong. for the past three years, there has been talk of a recession. that is largely behind us. it could come back of course. but i think interest rates have normalized. i think 4.5% on the 10 year bond yield is maybe plus minus 25 or 50 basis points. it is kind of the range we will see for the next few years. that's what we had for the great financial crisis. the economy is resilient and it is growing at a decent base. i think it will grow at a faster pace. i'm bullish on productivity. you put it together and you get an economy that is strong with low, moderate inflation and the

stock market moves higher on earnings, not valuation. >> what part of the market do you like the best right now? if we are talking about earnings, getting into tomorrow with the banks for example, what doia like, what don't you like? >> i think you start with the banks. the banks will report a solid earnings. the loan demand has been picking snup the financial markets have had low volatility and the traders are good at making money in that environment. i think mna is picking up. the financials look good. we have more deregulation coming and a lot of that will benefit the banks. fed regulator has left and will be replaced by someone who is likely to be less stringent on the kind of regulations they want on banks. financials for sure. stick with technology. i wouldn't be selling technology. i would be looking for opportunities to buy some more. industrials still look fine

tome. all of the sectors look fine and maybe we will overstay our welcome but we will stay with them. and we would overrate the u.s. relative to foreign portfolios and overweight the s & p relative to smith gaps. and the s & p 493 outside of the mag 7 will be viewed at tech stocks. they either make tech or use tech to increase proficiency and productivity and relationship with customers and the companies will show good earnings. i'm expecting profit margins to go to a record high this year. >> how are you thinking about the stronger dollar? is that one of the reasons you say u.s. is best and you should stay here? >> it is one of the reasons. we have been recommending the stay at home investor portfolio as opposed to go global. in words, overweight the united

states. we are not telling people not to invest over sew seas but the u.s. is where we want to invest. i think the strong dollar is a reflection of the fact that foreign money is coming into the united states. i think you will see a lot of foreign money coming in with the 5% bond yield. we are not far away from that. we may already see foreign money coming in. they have been coming in and buying stocks for sure. the u.s. looks pretty good. it does look exceptional. >> all right, that's what a lot of people are buying, american exceptionalism. thank you, ed. we will talk soon. up next, lilly shares sipging after its outlook, next.

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all right. we have less than 15 to go before the closing bell. watching eli lilly shares today

which are trumbling. angelica peters is watching that for us and will tell us why.. >> lilly preannounced fourth quarter results and they were short of expectations. investors are worried after q3 missed and now it is renewing questions. ceo david ricks told jim cramer that this is not about a slowdown in demand. >> we are doing something others have never done. we have growing a pharmaceutical product at a rate and scale that really is new for us and new for the industry. we will get some things wrong and we have. we saw destocking in the channel in the second half. we put that into the forward outlook. we don't expect it to come back. we have seen ups and downs in various parts of the market. people switching between the diabetes and obesity form. prediction has been tougher but

the underlying fundamentals are incredible. >> we are seeing all of the obesity names down like novo and viking. they are all getting hit on this. a lot of outstanding questions hoar. >> appreciate you bringing that report for us. ahead, meta shares are slipping in today's session, what is behind the drop and what it may mean for the rest of the social stocks as well. we are back on the bell after this break. sector sort is sponsored by sector spider etfs. visit us on the web at sector spiders.com. ah, this one lets me adjust the bass. add more guitar. maybe some drums. wow, so many choices. yeah. like schwab. i can get full-service wealth management, advice, invest on my own, and trade on thinkorswim.

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simma modi is tracking zin ova. and we have details around the latest round of met lay raufs and also meta's worst day. a couple of moves, vernova among them hitting a record high, why? >> president-elect trump is expected to fast track the spending seen as power play for ge ver nova which just got a price raise, a p5% boost. andrew open conducted an analysis and found there is an opportunity to increase pricing. the ceo scott savac said the most pronounced opportunity is in gas given the hyperscalers that are building out data centers. that is pushing up sales up about 111% over the past 6

months. >> thank you. julia boorstin, we have details in the last hour about microsoft making some job related news and you have details for us on meta as well, right? >> that's right. earlier today meta announcing it is looking to get 5% of its employees, lowest performers, with the goal of back filling those roles this year. mark zuckerberg saying in a memo, i decided to raise the bar on performance management and move out low performers faster. the company expects to reach 10% of nonregrettable attrition by the end of the current performance cycle and will quote, provide generous severance. meta shares ending the day down nearly 3%. shares were down before that news. snap shares are also off today nearly 7%. these three stocks seem to be responding to rumors that elon musk could buy tiktok's u.s.

operations despite tiktok telling cnbc they can't be expected to comment on pure fiction. td cowen reporting that even reports of that is seen as negative for its rivals. a thank you, julia. all right. cory, tell us about signet, worst day in nearly five years. >> far from the sparkling holiday for signet jewelers. parent of jared's, kay, and others, results falling short of forecast and analyst projections. shoppers ended up buying more lower priced gifts and it led signet to buy lower sales and comp prbl sales down 2% in the 10 weeks ending january 11th with disappointing sales on peak holiday spending days. signet has a new ceo. and he spoke to investors at the icr conference in florida about the missteps in the quarter particularly missing in fashion

and bold jewelry. scott? >> all right, nasty day. down more than 20% according to reagan. thank you very much. we have a little bit of a pickup into the close here. the dow is going to finish with a nice gain, better than 225 points. russell is green. s & p will fight it out to thealist moment. nasdaqhowever, will be on the losing side. that does it for us. i'll see you tomorrow. that's the end of the regulation. choppy session coming to a close, boosted the major averages this morning, throughout the session for the s&p 500 and for the nasdaq, that's the scorecard on wall street, but the action is just getting started. welcome to "closing bell: overtime." i'm morgan brennan. along with jon fortt. >> eli lil yi