show. he he doesn't trust it. and i have. >> more questions than answers. so i. >> think this is a buying opportunity just. >> like august 5th. with the. >> japan yen carry trade. >> remember that we sold off. >> ridiculous amount. we got an opportunity. >> to buy. and if it does fail the 200 day, you. >> get to wrap it there. jay woods, thank you. >> very much. thanks for watching power lunch. >> he's so great. >> he's so good. >> closing bell starts right now. >> all right. thanks so much. welcome to closing bell. i'm scott wapner live from post nine here at the new york stock exchange. and this make or break hour begins with today's tech bounce following that brutal deep sea sell off. nasdaq is up sharply today and it is led by nvidia. the stock rebounding after suffering its largest market cap loss ever one day ago, and other market caps. mega caps are on the move as well. just as many will report earnings this week. we'll ask our experts over this final stretch what's now at stake for those companies and investors too? apple. meta, microsoft, amazon. alphabet. they're also higher today. as for well there's chipotle. it's negative.

as for the broader market, it's a fairly muted day ahead of tomorrow's fed decision. no move expected, but the commentary will be closely watched for clues on what lies ahead. it does take us to our talk of the tape. seeking answers what the future of investing in ai will look like, and whether the game has truly changed. let's first bring in our deirdre bosa with the very latest on the ground out in silicon valley. what are you hearing? today i can only imagine. >> d so scott, i think consensus is that yes, the game has changed. but does that change the investment thesis? maybe. maybe not. wall street and silicon valley alike are still trying to digest what this new phase in building ai foundational models, ai, software companies, applications, what this means going forward? consensus seems to be that more ai equals more ai. this is going to be a good thing. it's just like, you know, when we got electricity, we didn't use less light bulbs. so more is going to beget more. and that will be positive for the hyperscalers, for the foundational models, the public

ones, at least the big tech, they're diversified. they have ways of distributing these use cases, which now the focus is on. so they're likely going to be okay. are they going to be spending the same amount tens of billions of dollars in capex? that's an open question. and that's certainly going to be top in mind as we go through earnings season, certainly as it kicks off this week. now the political side, scott, that's a little bit more complicated, right. because although deep tech is an open source model and that is seen as generally good for developers and for the development of the industry of artificial intelligence, there's also the consumer side of this, and i just checked a moment ago. deep sea is still number one on the app store, you know, still unseating chatgpt. that has very different implications. that's not sort of an open source model that can be tweaked by users, that is users getting and giving information to a chinese ai lab. and that's sort of the rhetoric you hear from the white house from washington, which is a

little bit divided. you know, president trump willing to say that this is competitive and could lead to positive outcomes, with others saying that this is a real threat. so certainly being debated at a number of stages and by different groups. >> it's certainly shaken things up, you know, to say the least. has it put many obviously, the incumbents on the defensive a bit out there. >> it's a good question. i mean, you have a company like openai, right, who led the way with a proprietary closed model. there's so many questions about what its business looks like going forward, how it's able to make money. i mean, i was talking to ali godsey, he's the ceo of databricks yesterday, and he said that every company now, every model is going to be an open source model, whether they like it or not. there's obviously huge implications for an openai, whose business is getting people to pay for that model or for its apis. but like i said, with some of the bigger tech companies for an nvidia, which is not just a hardware

company, but really an ecosystem that's going to have a place in the inference stage, which is where we are now. they're going to be okay. but for some of these companies and the vcs as well, by the way, that have poured billions and billions of dollars into foundational model companies, much more of an open question. >> all right. appreciate the reporting d. thanks, deirdre bosa let's bring in now big technologies alex kantrowitz in algiers dan chung alex is a cnbc contributor. it's good to have you both with us. alex you first. i mean how do you think this changes the conversation about ai and investing in it? >> well. >> look, if you believed. >> in. >> the. >> ai story before. >> last week. >> you believe. >> in it even more today. the mere fact of the matter is that building ai has just become far cheaper than it was previously. and if you're, let's say you're a box of the. >> world or. >> you're a servicenow of the world, and your strategy was around implementing ai into. >> your product. >> this is the best thing that's ever happened to you. now, look. >> if your. >> business is entirely built. >> on infrastructure. >> that's that's an issue because we don't know what's

going to happen on the infrastructure front. but ultimately, i think this places the emphasis where it. >> needs to. >> be, which is on. >> the application. >> what are we building with. >> the ai itself? >> we've talked so much about. >> data centers, about. >> cloud services. have we really talked enough. >> about. >> the products that are being built. >> with this technology? because if it is as revolutionary as. everybody is saying, where's the revolution? and i think. >> that's going to. >> be the question, if. >> this. >> ai trade is going to continue, we're going to need. >> to see applications. >> we're going to need to see concrete uses of the technology, because the infrastructure side of it isn't going to be as. exciting as it was now that the. >> models are. starting to be. >> commoditized, starting with the deep c. >> one model. >> this, dan, a game changing moment for you as an investor. you look at the rundown of stocks that alger owns in its 35 fund portfolio amazon, meta, nvidia, broadcom, microsoft, marvell, vertiv and on and on and on and on. you're highly exposed to this space. be less optimistic today or questioning it in any way. >> we're always. >> assessing where the risks and rewards are. but overall we're actually more optimistic with

deep tech is showing is that costs can be brought down dramatically. and that dramatically supports, if not enhances, the opportunity in the real. world to implement ai driven solutions. right. if the cost is lower, it really tends to drive much. more usage and consumption. and so we're quite. excited about still infrastructure providers, key component providers. but also yes, it's. it's actually quite a bit earlier i think, than. perhaps we would. >> have thought. >> where we might see really interesting real world applications. and of. >> course. those real. >> world applications are enabled by the lower cost. >> i mean, when you saw the sell off yesterday, what was going through your mind. >> that this was another overblown sort of announcement and our hyper reaction, probably by quantitative trading models. >> but how can. >> we be so sure? i mean, are you are you skeptical that deep seek was able to do what it did

for the cost that they suggest they did it for? >> so i just convened the entire alger tech team and e-commerce team, which is. >> pretty. >> pretty significant. >> this is like an all hands on deck. >> yeah, for everybody in tech. i and a senior pms. and so. we are. one thing we'll note is that the deep set model uses a technique called distillation. that means it actually leaned on or learned. from llama and learned from some of the other chatgpt four. so the. big models. so it's riding. >> on. >> the on the backs. >> if you will. >> of the masters. >> so yeah. >> we'd still. >> like to see sort of more validation of exactly what the cost would. be to implement. and you know, i think, i think the people at. the deep sea have been very open. they do acknowledge that. and, you know, but they're still demonstrating that their architecture. and that's the key insight here, that their architecture could be one that rapidly brings. >> down cost. >> seems. >> alex, if anything, it has

changed the conversation as it relates to open source. it was no surprise yesterday, for example, in the mess that were many of these names, meta was green for obvious reasons, right? because of open source? >> that's right. look. >> we're about to move from a moment where the proprietary models were the. >> leaders. >> the openai gpt model, maybe the anthropic cloud model to a moment where open source leads and basically someone who works in the industry put it to me this way. you would have openai working on their model, claude, working on there. i mean, anthropic working on their model. now you have the entire open source community coming together and pushing forward, right. the deep sink model builds on llama. llama is going to build. on top of that, you're going to have meta building on top of what the deep sea team is doing and vice versa. and so you're going to have this collective. effort in the entire open source community to take these innovations and move it forward. and what that's going to do, like i said, it's going to commoditize the models. >> and so. >> they're all going to keep working together. proprietary is not going to be able to make as

much money. >> as they would. >> otherwise. >> because the open source is doing a good enough job, and that will definitely shuffle the deck of cards that we've been playing with up until now in ai. >> i mean, if you have any skepticism about deep sea, where does it lie? and do you feel like part of the story is not being told correctly? there's been some guests on the network today who have called, you know what, on a lot of this story. >> so, scott. >> i think this is the most important part here. you can't really have skepticism on the results. there being the model weights are being downloaded and deployed by people in silicon valley today. it's live in perplexity right now, you know, slightly adjusted from what it is. so the fact that you can run. >> this. >> model as cheaply as. you can is the core innovation here, and that's going to really change what it takes to build this technology. >> now, the. >> questions you might have is, did it really take. them as little money as they're saying to build and develop this model? just a couple of million

dollars? probably not. but ultimately you. can't argue. >> with the output. >> and the. output is actually what changes the game here, not. >> the process. do you feel like. >> this is a 99 ish moment for some of these names? only in the sense of the ones that got a big halo effect, and there were many that we had deemed the next great ai derivative plays you, you know, the, the nvidia's and the and the hyperscalers are sort of maxed out. all the money had gone to them from investors. so where is the money then? need to go. it needs to go to some of the software players as well. okay. we're tired of doing that. well, what about the power plays? right. that's the next great area. the utilities and other things that just were up, you know, 500% last year. is that where the big issue lies today? >> i don't think so. i think it's still too early for that. so for example microsoft is one of the hyperscalers, right. they're about to report this week. azure is growing roughly 35% year over year. microsoft has said that about 10% of that

growth is coming from ai applications. >> so they're. >> still going to benefit from essentially all of this. computing needs to run somewhere. it's running on the cloud, and the hyperscalers benefit from that. i think what will be interesting in this moment is important, for at least a beginning of a signpost is okay. who has proprietary data versus, you know, easily. available data, for example, is. all of the works of shakespeare, right. >> it's going to be hard to. >> build a business model on top of that. >> but very proprietary data, for example, amazon, netflix, microsoft, google. >> what do they have? >> they have user data, a meta, you know, what are real people doing real time? what are the personalized data that isn't out there in the open but is extremely important? for example, of course, for e-commerce and advertising and then of course, the software industry. what are they going to build on top of this? so we're we're looking now with a lot of excitement actually because of deep seeks. result. >> agentic ai. so personal agents. >> customer. >> service agents, those. >> are. >> probably going to be some of

the first. examples of. ai really proving the business case out. and we think we may see them earlier rather than later as a. >> result of this. >> do you do. >> you have as much confidence today in nvidia as you did last week in their ability to, to beat and then continue to, if not raise their guidance to the degree they had in the past, because most think that that's not possible anyway, but enough to justify the excitement and the move in those shares. >> well, yes. >> i do. i mean, we've been doing a lot of research on this, and one of the things to understand is that, like training. consumes a lot of. >> computing power. >> but inference, especially. >> at. >> the edge, i.e. when you. >> use something, you do something on your iphone. that requires any kind of agent ai, any kind of ai function, that inferencing function could be multiples of compute power needed. and you know the interesting result. >> deep seek. >> is run. >> on nvidia chips. it's just run. on last generation nvidia. >> chips versus say.

>> upcoming generations. or highest end. you know blackwell is coming from nvidia. we think there'll be plenty of people pursuing both ends of the ai spectrum. right. there will be some still pursuing the absolute high end cutting edge. >> think about. >> internet search. >> there was. >> yahoo then. then there was google. but in between there were askjeeves, altavista. bing has been around that. >> battle to. >> be the ultimate dominant ai. model is going. >> to continue. >> for a. >> while still. >> and at the same time with the lower. >> cost. >> a. >> lot of. >> more pragmatic. >> practical applications. >> can be possible, particularly through, you know, software and hardware. >> alex. >> who do you think the biggest losers are in all of this, at least for what we know today, which is not a lot. >> yeah, it's openai and it's anthropic. it's the companies that have been building the proprietary models. i think you see sam altman over the past 24 hours really scrambling, making

promises about pushed up releases. he just posted a selfie with him and satya nadella. like we're supposed to take something out of there. if you have an open source model that's effectively equaling the performance of some of your state of the art models, you have some questions to answer. in terms of what the value proposition that you're bringing is. i mean, they're going to have to continue. they're in the hits business now. they're going to have to continue bringing new innovation forward and advancing beyond what we just saw from deep sea. same with anthropic you had there's this thing called chat bot arena that ranks the llms top to bottom. and deep sea right now is tied for three. and you have anthropic's claude in the teens. right? they're a company that got 4 billion in investment from amazon last year and might be raising another 2 billion. so it's really a rough moment for the proprietary models. i think the nvidia sell off, by the way, was a little bit overblown yesterday. but i do see a reason to worry over time, which is basically that if this is all commoditized and they can, you know, they might have an issue, because if we don't have the applications to run on this stuff, then over

time, the demand for the infrastructure will be down. getting 7% back today. points well made. i appreciate the conversation guys. thanks to you both. dan, thanks for being here, alex. we'll see you soon. alex kantrowitz thank you. scott joining us. you did give us a good segue too, because one of the key questions is how all of this impacts the open eyes of the world. that company and its co-founder responding today, our kate rooney is following that side of the story for us. what are we learning here today, kat. >> scott well, alex teed us up. well, openai, as you mentioned, and other ai leaders think of anthropic, for example. they were able to avoid that public repricing we saw in markets this week. but this absolutely has an effect on those companies. i'm talking to investors on those cap tables out here. there's a little bit of anxiety, i would say, about what deep seek means for these companies. it could really change the economics here. the subscription models, they are closed source and then the price as well. it also begs the question, are these companies over capitalized? so if this tech as you guys have

been talking about is so much cheaper to build, think of the top private names. as i mentioned, the big ones there openai, anthropic xai. they've raised a combined $50 billion. raising cash in the long term or too much cash can often dampen return on equity, among other things. and then, regardless of how cheap, deep, deep seek was to build here, the efficiency gains, they're real. so investors in those us companies argue, well, enterprises aren't going to want to use that chinese built ai. but then you also have the domestic startups here. we're looking to basically recreate that and undercut on price as well. bottom line, it turns up the heat on these companies to justify those valuations and really wow the world with their next models. the pressure is on there. the bulls would argue price was coming down anyway, and openai and others can supercharge the usage of these to sort of offset that. sam altman, though, speaking out, calling deep six model impressive on social media. he said he promised to, quote, obviously deliver much better models and pull up some

releases. scott so a lot to watch. >> yeah, i expected that response. i suppose we'll see if there are more in the days ahead. kate, thank you for your reporting that that's kate rooney. some are calling the deep tech development a boon to startups looking for cash. ric heitzman is the founder and partner at firstmark capital. he joins us from down in miami today. it's good to have you on. on a day like this. how are you thinking about it from the vcs perspective? >> yeah. >> thanks, scott, for having me on. what we're seeing now is it's still really early in the ai race. we saw with valuations. >> and with some of what was happening was people were expecting. >> that the game was. already won. >> they've picked. >> the winners. they valued them like winners. but in reality of it is we're still. >> in the second. >> or third inning and we're still seeing. >> a. >> lot of both. >> the infrastructure and. >> the application layer playing out. >> i'm wondering what you do think about the issue of startups who are maybe feeling new life today in their own

ability to raise cash, and that field is now more wide open than it was perhaps a few days ago. literally. i want you to listen to what the billionaire investor, mark cuban, told me on halftime report today and get your response to that. >> i think you're going to see a lot more entries into the ai space. i think you'll see a lot more private investment into small up and coming companies. i can't tell you how many conversations with private companies i've had. and now, you know, it turns out i was wrong where it was like, well, shoot, you're going to have to raise billions and billions of dollars just to compete with these guys. and the question was how big a model and how much of an investment do we need to make? that all just changed. and so i think you'll see a lot more companies get funding that otherwise might not have gotten it, because it won't take as much money to compete. >> how about that, rick? what do you think about what mark cuban

told me? >> i, i. 100% agree. >> i think. >> you're going to see that in deep. >> sea. >> shows that with a very little amount of capital, if you have a superior product. >> you can compete with the end user. it shows you you can. build on top of the existing. >> models and. >> even the. >> open source, and. also shows that we're so. >> early in this game. that there's still a lot of venture opportunities, especially. >> at. >> the application. layer and 2025. scott, as we've talked about before, might be. >> the year of. >> ai agents, both on the consumer. >> as well as the. enterprise side. >> wondering to the implications for, you know, investors in our public markets. and i also thought a point that mark made that i wanted to run by you was there aren't enough public companies in this space to invest in quite yet, outside of the hyperscalers and the nvidias of the world. and that's one of the biggest issues that now, if these companies maybe are going to have a better chance of being

funded, if there ultimately is going to be a day where more of these companies are going public, listen to what he said about that and get your take on the other side of it as well. >> yeah. >> so i think one of the fundamental issues with the market right now is no companies are going public. you know, there isn't back then, you know, amazon was a new company, dell was relatively new. you know, there were incumbents that we all looked at as being, you know, the powerhouses and but but there were new companies coming public that we can look at and say, okay, maybe these guys have something unique. i mean, if it was today, google probably would not be public. amazon might not be public. you can go down the list, and there are companies right now that are up and coming in the ai space that are private. and because they're private, nobody gets to invest in them. or at least, you know, typical investors don't and you don't really get much conversation about them. and i

think that impacts the conversations and the market movements that we saw yesterday and today. >> what do you think about that? >> yeah, i agree with. >> some of. >> what mark said. i still again, being it's so early that. >> most of the companies. >> are not public. >> and investable. >> by most people. >> and that's fine. >> because we're still trying to figure out what the rules of the game are. >> you're going to. >> start to see people that are working on the ai. >> infrastructure. >> companies like core weave, that will probably. come out. >> in the near term. >> openai might go public this year. so there's going to be the beginnings of that coming out. but on the agent. >> side and the application. >> layer, you're going to start seeing. those companies get ready to go public in 25 and 26. and that's still being sorted out. who the leaders are, who are the who has the first mover advantage and who are going to be the fast. followers and create tremendous value and really be all that's promised. in ai. >> you have a take on nvidia and

how much it sold off yesterday, what the broader implications truly are for that company, if, in fact, deep tech was able to do what it did for such lower cost? >> yeah, i think. >> that everyone believed there was a conventional wisdom that the winners were the winners, and it. >> was a wildly capital. >> intensive game that you had to play, and therefore you either had to have the backing of a hyperscaler like microsoft, if you're openai or you had to have. >> such a huge. >> infrastructure like nvidia to be successful. and that's been proven wrong. in addition, the. >> closed models that cost a tremendous amount of capital. >> to build and maintain were the only way to go. >> and now you're. >> showing that open source work. >> so because. >> of those two reasons and the conventional wisdom that. companies like nvidia were a winner, they were priced to perfection. >> and so some of the air coming. >> out of that is probably healthy. and what it's showing is there's going to be more of an open field. and every level of the ai activity chain for

startups to compete, as well as existing. software companies and infrastructures to compete going forward. >> does that mean that perceived moats are going to evaporate, or, frankly, might have overnight? >> they have definitely evaporated, especially. >> the. >> capital moat. so openai. >> even things. >> like anthropic were saying, hey, if you can't raise five. >> ten, $20. >> billion, you're not going to be able to compete. >> in this arms. >> race because it's a game. >> of capital intensity. >> and therefore they were. >> kind. >> of. >> blowing out the. >> bottom end of the startup community and even public companies that couldn't. >> keep up with that capex race. >> yesterday proved that that's. not true. yesterday proved that. you could be a capital efficient startup and find an area to compete, and you. >> can compete on a. >> broad basis. >> or even compete. >> on a vertical application. >> where you have proprietary. >> data and are able. >> to tweak an open source model

to make it work better. >> and that really opened up the playing fields with with lesser funded companies and companies. >> that want to. focus on a particular. >> part of the whole ecosystem. >> and so i. >> think that's great. >> for the consumer. >> it's great. >> for. >> competition. >> great to get your insights as well, rick. thanks for that. enjoy, miami. we'll see you soon. that's rick heitzmann firstmark capital. thank you. with his take on what we are witnessing in these markets, we are getting some news out of washington at the moment. eamon javers has that for us right now eamon. scott. >> we've got a new. post on social media from the white house press secretary. >> caroline leavitt. in the new post. >> the press secretary is saying that the white house. >> is aware. >> of the medicaid website portal outage. she says, we have confirmed that no payments have been affected. >> they're still being. processed and sent and we. >> expect the. >> portal will. >> be back online shortly. now, the shutdown of this medicaid. portal affects, obviously millions of people, billions and. >> billions of dollars. in spending. >> to doctors and hospitals

inside the country that. benefit people who are on the medicaid program. scott, all. >> of this. >> resulting from confusion around today's executive order, last night's. >> executive order. >> from the president directing. >> federal agencies to. disrupt their. >> spending, put a pause on. federal spending. and the white house. >> has spent. >> much of today clarifying. exactly what they meant. >> by this. >> and, scott, it may. >> be that a lot of this confusion is. stemming from. >> one comma in. >> a sentence. >> in the original omb memo. >> which said. >> that federal agencies must temporarily pause all activities. related to obligation. or disbursement of all. >> federal financial assistance. >> comma, and. >> other relevant. >> agency activities that may be implicated by executive orders. so it may be that. >> what the white. >> house intended here was not to stop. >> down all. >> federal financial. >> assistance. >> but only. >> that federal financial assistance, which was. >> implicated by.

>> executive orders from. president trump relating to things that are important to. >> the maga. >> agenda, such. >> as die gender terminology and the like. >> and so what we're getting now is some. >> clarification from the white house. that this is not a. >> freeze of. all federal financial assistance. the details in. >> this matter, scott, that comma may be responsible. for $100. >> billion worth of confusion. >> today and a lot of anxiety. >> throughout the federal government. >> and the entire payroll. system of who gets. >> paid by the federal government, including states. >> nonprofit organizations. >> universities. >> and a. >> lot of public. >> publicly traded companies as well. >> scott, back. >> over. >> to you. >> the dreaded punctuation mark. that's right. gets you every time. eamon, thank you very much for that clarification. that's eamon javers. we're just getting started. up next. looks like deep sea concerns could actually benefit the cyber software stocks. we'll tell you why. we'll run through the names that could see some serious gains just after the break.

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i'm there. get started investing for as little as $1. talk about easier investing. glp one are right for you. start today at forhours. com. >> all right welcome back. we're tracking some big movers today in the energy space. pippa stevens has that for us. and this is related to this story as well pippa. >> that's right scott. and the nuclear power stocks that got hammered yesterday on the deep sea news fighting to make back some of their gains. with vistra and talen both up more than 4%. while constellation is hovering around break even now, a number of wall street analysts saying the declines were not entirely justified. morgan stanley calling yesterday's plummet an overreaction, saying u.s. ai infrastructure will continue to grow rapidly. while evercore isi said it was shooting first and asking questions later, and jefferies said the drop was a buying opportunity for talen. as the dust settled. now oklo, the small modular reactor maker backed by sam altman, up 6% and making up some of yesterday's losses, with uranium stocks also

in the green. traditional energy stocks though not seeing the same type of bounce. although gas focused driller eqt is an exception up here about 3%. of course, it is important to remember that while ai is one theme driving power stocks, it's not the only one. we also have reshoring and electrification, which are also scott raising power demand. >> pippa thank you. that's pippa stevens. software and cybersecurity names are also seeing some big moves today. seema mody documenting those for us seema. >> well scott, the market seems to have decided that the deep sea findings are a positive for software, given the fierce debate around whether big tech. will cut spending on chips. goldman sachs says if ai models can in fact run more efficiently at a lower cost, how that will spur more competition among software players, building ai applications and increased demand from enterprise customers. analysts. there, they see the benefits of lower compute, benefiting names like salesforce, adobe and servicenow, which does report earnings tomorrow. cloud providers as tracked by the

wisdomtree cloud etf. take a look at this on pace for ten straight days of gains outperforming semiconductor stocks. and then there's cybersecurity. that has also been seen as a good place to hide in the last two days. with crowdstrike trading at a new high, up about eight 9% on a report that deep seek had been hacked yesterday again. that stock building on its gains going into the close. scott. >> all right i appreciate that. thank you very much. seema mody. up next ai connection co caitlin mallon on the growth in alternatives. we are back on the bell right after this. meet venu. >> on the nyse american. >> symbol venu. disrupting a multibillion. >> dollar live music industry. >> venu owns. >> and operates. upscale music venues, outdoor amphitheaters with. >> seven revenue. >> sources. >> $166 million. >> in. >> assets, luxury. >> suite sales. >> of $77 million in 2024, $200

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information. we're about supplying digital workers. now we're making this transformation of digital labor. >> welcome back. a volatile week already in the markets as tech earnings and the fed meeting loom large in the days ahead. one of the biggest trends in the market over the past couple of years has been the growth in alternatives. they are the focus of the ai connections conference in miami. caitlin mallin is ceo and joins me now. it's nice to see you. looks nice down there. >> yeah, it's nice down here. a little bit of a breeze. good to see you, scott. >> can you give me an idea of who exactly has gathered there and what you hope to accomplish? >> yeah, this really is the ai connections global conference has become. the place to be if you're in alternative investments. we are an index for the alts industry. we've got about 60% on the hedge fund side. another 40% of that is illiquid strategies. and there's a thousand funds overall. we've

got 6000 people. and then another 1200 investors. and that's half institutional. and then half family offices fund to fund. so you're seeing every little bit of the industry here. >> where are we. do you think in the evolution of alts as as individual investors should be thinking about them? they certainly are all the rage on this program. we talk about it all the time. some would suggest, are we at peak alts? how would you answer that? >> yeah. i mean, if you're down here in miami, it certainly does not feel like we're at a peak. the room down here, 6000 people, is absolutely buzzing. you know, we have an industry who's excited. this this event in particular. if you're down here, it's not just the fund marketers who are looking to raise capital, it's the investment decision makers, the portfolio managers there. you know, we obviously have a bumpy week in terms of market commentary. and everyone's here talking about that. so i think that we're just at the beginning with all that's continuing to grow. and everyone's excited.

>> you know, if. >> there's one i guess risk factor that, you know, we've been thinking about and individual investors need to think about to alter not like regular equities right there. for the most part. illiquid not easy to trade in and out of private equity and hedge funds and the like. but you're seeing growth in another part that in fact is liquid liquid alts. can you tell me about that. >> yeah, definitely. you know, down here we have cross like i said, we've got 60% of the funds that are here are on that illiquid side of the strategy collectively across everyone who's here. it's representing 55 trillion in assets. in this week alone we'll host 20,000 meetings. and after this conference 10 trillion of that will likely exchange hands because of the event. so liquid alts is a huge part of that driver. i think that we're going to continue to see interest there because as the market opens up, as people start to see a more flexible regulatory environment, liquid alts are

just a big part of what they want in their portfolio. >> it's good to catch up with you. enjoy the conference. we'll see you soon. >> sounds good. thanks, scott. >> all right. that's caitlin mallon i connections. up next, we track the biggest movers as we head into the close. seema mody is standing by with that. hi, seema. >> scott. 21 minutes left in trade. a big day in travel. one stock hitting a new high while the others are falling. we're going. >> to get. >> you the full story after this break. >> the bond report is brought to you by pimco, a global leader in active fixed income. >> is this how you're hoping to

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street rate nvidia a strong buy today. yet why are so many legendary investors quietly ignoring that advice and instead selling the stock hand over fist? every billionaire on your screen has recently sold nvidia. some have offloaded millions of shares, in fact. hedge funds are quietly selling all of their tech stocks at the fastest rate we've seen since 2016. my name is mark chaikin. during my 50 years on wall street, i helped build three indexes for the nasdaq. that means i know how to recognize these signals from the tech market and exactly what they mean for you and your money. i explain everything in my new free market briefing, including the truth about what's going on with nvidia today and the specific stock i recommend you buy instead. simply visit the website below to get the details 100% free. >> starbucks earnings after the

bell will. the world's largest coffeehouse chain meet or beat expectations? plus, are the new ceo's turnaround efforts paying off? jon fortt. morgan brennan next on the red carpet we have gina costa... looking simply stunning... with this season's hottest accessory. -[ cellphone vibrates ] -oh, what's this? she's opening her fidelity app... to buy that stock... for exactly the amount she wants... no fees or commissions... what will gina do next? gina has roller derby at 6:00 pm.

i'm there. get started investing for as little as $1. talk about easier investing. today@hims.com. >> what you. >> are about 15. away from the bell. back to seema mody for a look at the stocks that she's watching. hi, seema. >> scott. >> let's. >> start with boeing. shares are climbing after ceo kelly ortberg said the company is making progress on its recovery and is stabilizing production. the aerospace giant posted a nearly $4 billion loss for the fourth quarter, and had its largest annual loss since 2020. but shares up about 1%. take a look at royal caribbean hitting a new high on a big fourth quarter beat and a growing number of younger customers getting on board, really fueling sales. the cruise operator also announcing it's entering into the premium

river cruise market, which is dominated by viking royal, up about 11% at this hour. jetblue shares different story, plunging the airline issued a disappointing outlook, saying its unit costs, excluding fuel, will rise as much as 7% this year. here's what ceo johanna grady told cnbc earlier. >> quarter one is a trough quarter for jetblue. we're a leisure airline. a lot of trough weeks in the quarter, and that's what we're seeing when you adjust for easter. our improvement from q4 to q1 is on pace, if not slightly better than what we've seen in years prior. >> jetblue shares currently down about 24% on pace for its worst day ever. scott. >> all right. thank you. seema mody. still ahead, we'll break down some big moves in the bitcoin miners today. what's at stake for those names as well. that's coming up. closing bell is coming right back.

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ot. i'll turn to you first. i mean does this qualifies at a pretty as a pretty decent bounce back? >> it is certainly. on the index level. it's an almost perfect inversion of yesterday. yesterday looked like a washout based on the nasdaq and the s&p 500. when in fact the majority of stocks were higher today. you have just about 1% bounce in the s&p 500, even though breadth has been negative and it's been a little bit less inclusive. tells me a couple of things. one, just before around noon, the nvidia fought its way back above its 200 day average, and i think it gave emboldened traders to say, maybe this can be a real rebound. and the entire s&p kind of released higher. and so as apple and nvidia. microsoft powering things today bigger picture. it tells you the rotational mechanics of this market remain intact. the market sort of repairs and rebalances itself when it can, when yields are tame and when there's not a lot of macro stress. so all to the good. although i would say more of a kind of low volume lift than it is a real stampede back into stocks. >> some interesting commentary

from down in miami at i. connections from point 70 two's steve cohen. i want to read you a couple of the headlines, get your reaction to them. says i would expect markets to top over the next couple of months if they haven't already, says president trump's immigration and tariff policies will slow growth if implemented, and says what happened yesterday with deep sync is bullish for i. >> yeah. it's interesting. the idea of a market top who knows if he means like a huge, profound ultimate market top or just look we're due for some kind of downside move. i do think that the focus on policy to be a growth restraint or just kind of dust in the eyes of the economy because of so many things being kicked up and tariffs not so much being a direct inflationary pressure, but being something that just gives businesses hesitation. yeah, i think that's one of those things you have to have on the on the screens at all times as a potential risk. so interesting. i mean, he didn't exactly make his living making huge market wide calls. he's the

trader of the tape. but it's interesting how he sees the risk reward here in the in the intermediate. >> term says of nvidia. great companies are going to be expensive. yeah. you got to pay up for the and by the way it's less expensive that. >> expensive a couple of days ago. it really is. it's like a mid or high 20s forward p right now. if you believe those earnings it doesn't look terrible relative to the alternatives. >> yeah. so fed meeting tomorrow. you know we start to get the mega caps coming as well. and the commentary is going to be dominated by this topic. now it is. >> and you know everything from potential macro influences of cheaper ai or whether there's sunk costs involved in all of this capex that we've been doing. i mean, none of this stuff is going to be settled soon. in my mind, the market really was in a hurry yesterday, i think, to say, okay, here are the new winners and relative losers. so i think it's more a matter of the next phase of the game gets just a little bit more complicated. it's a mature ai theme or maturing ai theme. and, you know, in terms of the fed itself going to be, you know, interesting scrutiny in the

press conference about the basis of their decision making and forward looking guidance and all the rest. although we don't have a dot plot to chew over at. >> this time. >> and we'll talk to gundlach right on the other side of it, as we always do. i'll come back to you in a minute. let's talk crypto. tania tell us about these bitcoin miners. >> yeah scott bitcoin. >> miners were some. of the. >> hardest hit names. >> in the deep tech driven. >> sell off yesterday. and they extended those losses for much of today while the broader market rebounded. take a look at core scientific and irene both down more. >> than. >> 30% yesterday and about 6% earlier, but have really fought their way back from those lows. >> now bitdeer jumped today. >> and benchmark's mark palmer puts this on revenue diversification. scott, most of these bitcoin mining firms have both a bitcoin mining operation and sell power to ai companies. bitdeer additionally has plans to sell their mining. rigs this year. >> and wall. >> street is very, very. >> excited about that. >> now, analysts from piper sandler and cantor. fitzgerald suggesting today that the sell off in hybrid miners was overdone. mike collins from h.c. wainwright, however, has a more contrarian. view on the ai. on

the ai opportunity. >> he. >> says pure play miners like merrill holdings and. >> clean spark. >> should outshine the hybrids. later this year. both those stocks were up most of the day and are ending here. slightly lower. scott. >> all right. thank you. tanya. mikhail. all right, mega cap start tomorrow. starbucks is tonight. courtney. reagan. >> hey, scott. >> yeah. so it's going to be the. >> first full quarter. >> for starbucks with ceo brian niccol. >> at the helm. >> he started september 9th, so he was there for the last call but. >> not overseeing. >> the quarter. so investors are really hoping for a jolt to spur the stock price up. >> it's only up about 7%. >> over the. >> last. >> 12 months. now. the coffee giant expected. >> to report. >> a drop. >> in same. >> store sales. >> it's going to be the first the fiscal first. >> quarter. >> that we're reporting. >> so that. >> would mark the fourth. straight quarter. >> of declines. >> for that particular metric. consensus is for a drop of 5.5%. that is smaller than previous quarters. >> 7% decline. >> we'll see what. >> we get there. >> international comparable. >> sales also expected to. >> see a sharper. decline than the broader number. >> investors are going to be.

>> listening, of course, for any discussion of. >> traffic trends both in the us and china. >> market specifically. and you know that. >> starbucks has fallen short of revenue. >> expectations for the last four quarters. it hasn't posted an. >> earnings beat since. >> november of 2023. so expectations are probably a little. >> low going into the print. >> and starbucks. >> suspended its previous guidance as nicole took over. >> so investors are going. >> to listen for any new guidance. if we're going to. >> get any. now that he is. >> there and has been. >> there for a. >> quarter and has a plan. >> in place. starbucks also hinted at job cuts. >> were wondering. >> if. >> in fact those are on plan or not. so still. >> a lot. >> of questions. >> here to go in. >> the. >> next, what. >> 15 minutes or. >> so when we get those results? scott. >> all right. we'll see you in a little bit when those numbers drop court. thank you. nicole has gotten all but a free pass at this point. and at some point that's going to run out. and we're going to have to see some tangible results of a turnaround in store. yeah. >> got a lot of credit up front for what might happen there. and i agree that the general sense on the street is that expectations are in check, and they're pretty low in terms of the near term results and maybe even the guidance. but the

stock's had a pretty aggressive move. so market based implied expectations might be a little bit higher than they are in terms of the official consensus. but very interesting. it's been a real laggard among, you know, the big kind of elite brands of consumer discretionary. so see if anything and also see if there's any color as there sometimes is on consumer macro. i think there's great comfort right now with the condition of consumers coming into the year for good reason. you know, the credit situation in households looks fine. the atlanta fed is at 3.2% annual real gdp closing 2024. a lot of that is the consumer strength. but we'll see if they have any color in terms of more near term, how they came in. there was a little bit of noise in today's consumer confidence report that was suggesting that there was a bit of a rethink of the post-election excitement about consumer prospects. >> thank you mike. >> i'll. >> see you tomorrow. >> big day. >> of course. >> the fed decision meta microsoft again, we have

starbucks coming up in ot. and we have a pretty decent rebound today for some of these mega cap names that sold off so dramatically one day ago. nvidia of course, among. >> them up at the highs of the day. >> into the close. near 9%. >> bounce back some of. >> the other big names too within the mega cap. also looking pretty nice in green today. >> i'll see you tomorrow. >> into overtime. >> that bell marks the end of regulation. sky harbor group winning the closing bell at the new york. >> stock exchange. >> trinity capital. >> doing the honors. >> at the nasdaq. >> and i said. >> to watch nvidia. >> for. >> the bounce. >> at the end of. >> yesterday's show. >> nvidia mounting. >> a. >> comeback after monday's plunge, helping drive the tech. >> and nasdaq. >> higher as the fed meeting gets underway and. >> a slew of. >> mega-cap companies. >> set to. >> report earnings in the coming days. that's the scorecard on wall street, but winners. >> stay late. >> welcome to the closing bell. overtime i'm jon fortt with morgan brennan. >> well, coming up this hour the latest read on starbucks and brian nichols efforts to turn the company around. we're going to get results