was a little overdone. i don't know who could have seen the ev struggles happening. and i'm being sarcastic. matt maley, mark miller tabak, thank you very much. >> thank you. >> and folks, thank you for watching or listening to power lunch. >> and thank you for fixing my car. >> it's an idea. >> closing bell starts right now. >> cal, thanks. welcome to closing bell. scott wapner live from post nine here at the new york stock exchange. this make or break hour begins with this resilient market, which is mostly looking past today's hotter than expected inflation report, even as some suggest, the risks for the fed and for this rally are only increasing. we will discuss with our experts in just a bit, including the former dallas fed president richard fisher. in the meantime. take a look at the scorecard here with 60 to go in regulation. we're mostly rebounding from that early morning cpi sell off. in fact the nasdaq is now positive and the others are well off the lows too. it's tech that is helping as you see. meta wow on track for its 18th straight day of

gains, the longest run ever for any megacap for any member for that matter of the nasdaq 100. thank you apple as well. it is higher. and coming up we will talk to morgan stanley's eric woodring on just why he defended that stock this week. yet again, we're watching the automakers too on word they might be exempt from reciprocal tariffs. there's the reaction in the market. gm up two and a half. tesla's been a tough stock of late but it's getting a nice boost as well. it does take us to our talk of the tape, how best to navigate what could be a more volatile market ahead. and let's ask our panel adam parker. he is the founder and ceo of tri-valley research and to cnbc contributor bryn torkington of requisite capital, also a contributor to cnbc. and chris harvey, the head of equity strategy at wells fargo securities. no contributor for you, but you know what? there's always a chance down the road one day. it's good to have you nonetheless. good. i'll give it to you first, harvey. this market pretty resilient, don't you think? >> it is. >> right. >> and it's going to stay resilient until we see

something. some sort of crackup. or some. >> sort of. >> liquidity event in the credit markets. credit markets are supplying a ton. it's something that people don't look at. >> but underlying. >> everything. >> a ton of liquidity that's. >> keeping. >> volatility low. the system. >> is. >> working really well. >> and any. >> sort of volatility. >> spike. >> i think will. >> be short. >> lived in the first half of the year. so we're underestimating or not risks that could be out there. do you think we are. i mean larry summers, the former treasury secretary, posted on social media, where now i'm quoting from his thing, we're now in the riskiest period for inflation policy since the early biden administration that's following today's cpi. ken griffin yesterday at a conference down in florida, talks about the rhetoric from the white house about tariffs, which he calls. these are his words bombastic. he says the damage has already been done. it's a it's a huge mistake to resort to that form of rhetoric as it pertains to trading partners. what do we think? does that does any of that matter or is it just noise?

>> i think. >> it matters. >> you know, our call for the first half of this year. >> was the market would be. >> lower. >> you know, choppy and lower. it's the first time we've had sort of a negative view in a. >> long time. >> and two of the reasons you just highlighted there, one. is i think we're closer to the end of dreaming that the accommodation is bullish for equities. >> you know, just. >> like at the end of 22 people said you know what? we've been hiking a lot. we're close to the hiking cycle. we can get bullish again. it feels like we're getting close to the other side of that. or it's harder. >> to dream. >> that the fed is going. >> to be a huge. >> tailwind on the. >> front end. >> and the second thing is it's hard to know what policy to listen to and what. >> not. >> and what it does to the earnings of companies. if you're the ceo of a big company and you have employees and customers in certain other parts of the world, i think you're a little bit worried about how to price your product and the like. so i think we're in a bit of a volatile spot. >> i do. >> but but it was right to be bearish when we were at the beginning of a hiking cycle.

right. why is it right to be bearish if we're at the end of the cutting cycle? that means that we're good, that we're getting back to normal, that earnings are good and the economy is good enough. what's wrong with that? i harvey shaking. he agrees with me. look at him. sounds good to me. let me ask him. >> as usual, you. >> find somebody to beat up on me? no, i mean, and britain, you'll follow and you'll talk some sense into these guys. so i, you know, to me, i think, look, you don't fight the fed at the beginning of the cycle because you don't know when the accommodation is going to end. at some point when you're closer to the end of cutting, you can't dream. you can't say, oh, i also have this fed tailwind. so i think the challenge would be if you get a couple of hot cpis, they're going to cut less than you thought. it's not as bullish for the multiple as it was before. i think historically there's been a pretty strong relationship between the change in perception about rates and the change in multiples for growth stocks. so i don't i don't think it's like a disaster. but what you're saying is they stopped it because growth's going to be awesome or not. you're saying. but that's implied. so i think that's what

we need to believe. and a lot of our stock selection stuff is around where is revenue accelerating. because i need to believe i'm going to get accelerated accelerating. >> i hear you. i mean, i guess part of my point, brant, is like, all right, enough of the multiple expansion. great. we got it. we know why we got it. and now we actually can stand on the back of earnings, and that's all that matters. that's why the market's been resilient. that's why it hasn't fallen fully out of bed over tariff talk. and a cpi today that was hotter. and rates are up a bit. >> so we're looking. >> for let's. >> separate the seven companies from the 493. and this comes to fruition seven. the 493 are expected to grow earnings at 9% for 2025 versus. >> i think it. >> was around 1 to 3% last year. while the mac seven is decelerating from the mid 30s to the 16. and if you actually even peel that back, it's mostly meta and nvidia. of the seven that are. growing earnings. >> and so i think that. we're set up this year. >> for broader participation because to earnings. growth. you're getting a much bigger effect from 24 to 25. from the

rest of the market. >> while mac seven is decelerating. >> but also if you look at. history and look at rolling three. year returns. >> so unlike the kansas. >> city chiefs who couldn't do a three peat, the market actually on a rolling three year return goes up about 80% of the time. but it's very, very, very rare. it happened in the 60s and the 90s when that third year had a 20 handle on it. and so i think that you definitely have a tougher sledding. >> this year. >> because of all of these dynamics. and i think that look for earnings, look for broadening out. but i do think it's a really positive sign that we saw the market completely shrug. off the cpi number, especially in some of the higher beta names like that i follow and own, like the palantir. the hoods. look at uber today with an 80 handle, an eight handle. so i think this is a really positive sign, i'll say, for animal spirits that we could shrug off today's cpi, which i thought was somewhat jarring. >> and maybe harvey, it's time to be bullish because the fed is

finally out of the way. i think it is since like zero nine. >> i think it. >> is time to be bullish. we just got through earnings season. earnings season was very good. if we're if we're not worried about multiple expansion but we're. >> worried about. >> growth, we got it and. >> we'll continue. >> to get it. and what did we get today. we got the belief or the possibility. >> that maybe. >> we have. >> resolution in. >> the. >> ukraine resolution. >> in ukraine. >> what happens. >> oil likely. >> goes lower. inflation goes lower, rates go lower. that's pretty. that's pretty good. sitting on. top of strong fundamentals tight credit spreads m&a that's picking up deregulation and a fed that might be cutting. >> by. >> the end. >> of. >> the. >> year if inflation. >> comes down. >> so the big call you had i think it was last week was sell sell some mag seven what some have termed now to be the lag seven because they haven't done well. right to start. it's been the worst point. tech's been the worst performer. and you look at the breakdown of performers out of the sectors. now you know comp services number one thank you. meta. in large part health

care financial staples energy materials industrials, utilities all doing pretty well. yeah. does that is it a pairs kind of thing. do you lean into the other areas as you as you sell some mag seven. >> we've been on here three years saying you got to be at least market weight mag seven and you know, you got to, you know, but. >> sometimes you said you've been overweight. >> yeah, yeah. you're way overweight even if you're market weight because of the beta. exactly. and this is our first sort of underweight view which we published sunday. and now if i look at earnings season and you said all right put you know put all the earnings season into your computer, what came out of it. one of the main highlights to me was just the capex numbers from the big tech companies. and two things can't be true. like, you can't take a business that had six, seven 8% capex to sales and tell me it's now 14.5 and nothing changed. their gross margins are going lower. the usefulness of that capex is three, four years. so either like i guess what i'd ask you is which funds are out there raising money for a margin, contracting, decelerating revenue stock like that? none.

right. so you need to believe that there's just a short window. they do that and they're back to having lower capex forever or their margins are going lower. and the market's telling you i'm cool with meta's capex. i'm not cool with google. like the market's already worried about it. so you got super high capex. you've got really high beta. and what you saw in the deep sea day, and it doesn't feel like you have the certainty of revenue growth and stability. i mean, this deep sea thing 16 days ago made everything go down a ton. most of the names not meta, but most. so i think when you look underneath, it's just riskier than it has been for the mag seven. i'm not saying you know none, but if you own 30%, maybe you own 22 and you find some health care and some industrials and some other names, i think that's probably consistent with what, what what other folks are saying. >> what do you think, rv? >> we love. >> the. communication space. again. >> you have. >> meta in there. >> we don't like the hardware space. >> you're paying. >> a. >> premium price for not a premium product at this point in time. non premium fundamentals. the market should broaden out. it is. >> broadening out. you're talking about like apple premium

price for non premium. >> yeah that's one of the. >> names in there. right. and so but i. >> will say. >> one of the things that's ring about that. one thing i. >> will say about about this cycle versus. 99 is the commercialization of the technology is so much faster. the curve. >> is exponential. >> i was out last week in california. >> and all. >> we're. >> talking about. >> is how. >> are you. >> using. ai in your process? >> we're using it. >> for rfps. >> we're trying. >> to use it in back office. >> we're doing for trade settlement, we're doing for a quarterly letters. >> the productivity. >> and productivity enhancements we're about to see over the next 12. >> to 24. >> months are phenomenal. and that's not even. priced in. right. >> and so everyone talks to us about oh inflation is. >> going higher. inflation is going higher. no inflation. >> is pretty much flatlined. >> and maybe coming down. inflation expectations at 2.5%. that's fine. and again if we're. going to have at some point in the next 12 or 18 months resolution in ukraine, you. should expect. oil to come down. and that should push inflation down as well. and that's a pretty good. backdrop to equities. >> brian, what about this call that adam has made to lighten up

to sell some mag seven that maybe now is finally the time to actually do that for all the reasons that he said, i mean, it's important to you, you own apple, you own microsoft, you own nvidia, you own tesla, you own the qs. so you have a lot of exposure. >> yeah, i think there's going to i agree with adam. i sold half my apple at the end of last year. i think there's going to be a ton of dispersion within these names. i do think the market looks forward and say, is your growth decelerating? even though the growth is growing, it's decelerating. and that's what the market looks at. and so i think you're going to continue to see this disparity between the names. i think with the meta and google with their both their capex spends, what they didn't break out. and so this is why we don't know the answer. how much are they spending for capex within their certain businesses. so for meta to enhance their advertising through ai and google the same versus how much are they spending on speculative, potentially questionable return on capital? we don't know that yet. and so i think that the market will

penalize a microsoft and somewhat in apple. and they have rewarded a meta, i think as regards to tesla, i mean, i've been a huge fan. i own the name, obviously, of selling calls because there's just such massive premium on the name because of the volatility. and so when the stock was at 420, i sold april for 60 calls and got 40 bucks. i've already closed those out because the stock has pulled off, sold down. so i think there's different ways to buy the stocks instead of just directly buying them, taking advantage of the call premium that you get in names, especially like a tesla. >> yeah. >> i just want to be clear. like if you're long only trying to beat the s&p, 30% is in the seven names on a on a beta adjusted basis. it's 44. so i'm just saying oh more like 2,122%. so that that gives you the beta at 30. so 2,122% in seven eight, you're still going to own positions in them because they're way too much risk to own none. i'm just saying you don't have to be, you know, to the gills like you had to be the last couple of years. and i think it's because of the capex

that in the earnings season that i started to change my mind. >> chris, last to you, are you the one with the target of like 7005 or 7007. >> 7007? >> 7007? all right, so. >> james bond, the james bond market. that's right. yeah. >> assess how you feel about that. as we've you know here we are. what are we almost six weeks into the year. >> yeah we're feeling pretty good. market's up a lot of things that we expected to happen are happening today again everyone's focused. oh it's a hot cpi print. and then we kind of we don't quite laugh it off but we trade it off. now there was some news, geopolitical news that that. >> kind of rallied the market. but overall we're. >> sitting in a situation where you have less regulation. m&a is going. >> to kick. >> up. the ipo market is going to kick up more animal spirits. the underlying fundamentals are still good. the momentum trade is still there driving things along. and i think there's still too many dollars chasing too few assets. >> yeah i mean if you just said 7000 people just sort of yawn. >> they like i like it.

>> they don't even pay attention. >> i hope. >> they go 7000. i hope they. >> give you i hope they give you an aston martin over there. well, if you're right to sync it up. >> all right guys, thank you chris adam. and we'll talk to all of you soon. all right. let's talk tech now with glenn karcher. he is the founder and chief investment officer of light street capital. get his insights on part of the conversation that we just had. welcome back. it's nice to see you. >> great to see you as well. >> is now the time to take some chips off the table in the mag, what some are calling lag seven now. >> well. >> i think adam's. >> got a great point there that. definitely we're seeing increased. capex spend and the move. >> that we made. >> as far back as a couple of years ago. >> was to shift. >> a lot of our. funds into what i call the i five. so those. >> are the companies, the big semiconductor companies that ar. really in are really taking advantage. >> of. >> this capex. >> spend from the mag seven. so that includes. >> nvidia, tsmc, amd, marvell. >> and broadcom.

>> and that. those are. >> lagging as well. >> this year. they're about. >> in line with. the mag seven. but last. >> year they. >> outperformed by. >> quite a bit. >> i wonder then i mean if you're leaning into what has been part of the eye of the storm from deep seek, right? we had the huge sell off in a lot of the chips, nvidia included. i mean, how much clarity do you have in your own mind as to how that trade is going to do and the threat that this all could be? >> well, look. >> if you. >> go back to the. >> basics. there's nothing in the technology pipeline right. >> now that can match. >> the. innovation of generative ai. >> generative ai. >> creates a customized. >> answer for. >> the user. >> based on. >> under real. >> underlying data. >> and this is a brand new. method of computing. >> it's created a massive. >> investment cycle. >> over $200. >> billion. >> a year. >> of capex. >> and growing in. order to deliver on. what is just an

incredible technology unlike anything else we've seen in my lifetime. certainly. and. >> you know, this. >> is. >> you know, if you look. back to the deep sea scare, look, we a. month or two earlier, we were worried that things weren't scaling. >> and then. >> we saw big scaling event. >> and now everyone's scared that we're scaling too much. >> we expect. more software scaling. and after the deep sea fear. we saw. meta and. >> microsoft come. >> out and. >> say, look, this is how much we're going to spend. >> we're not slowing down. >> i mean, the meta run has been unbelievable. the microsoft not so much enough that you got out of it completely. right? you swapped it for another name. >> yeah. we've got we got. >> out. >> of microsoft last year. >> still on. >> the meta. >> i think. >> it's as brin was saying. >> it's very. >> clear how. >> they are benefiting from. >> their capex. >> spend with the matching of

content. >> to users. >> and then matching of ads to both content and users. >> so that's. >> been very clear. and. >> you know, for us, we continue to. >> you know, really want to have that exposure. to semiconductors. >> if you look. >> at. what's happened to the multiples over, you know, since the summer, the semiconductor stocks. >> index is basically flat. >> and over that time, the s&p 500 is up 15%. meanwhile, semiconductor fundamentals are continuing. >> to improve. >> so the multiples. >> now are much better. >> for semis. the multiple for the socs is down about 20%. since july at a 24.5. and the multiple on the. s&p is up 9% since. july to 22. >> so we've really. >> closed the. >> gap there. the relative. >> multiples have compressed by 30%. >> in six months. so in our view, semiconductor investors are. irrationally bearish at this point. >> and we're seeing. for instance, short.

>> exposure of hedge. >> funds very high up to a five year high in in the semiconductors. >> i mean, you've scaled your position up in taiwan semi right to be your largest position of anything. is that right. >> it's been one of our largest. >> yes for. for a lot of the year. >> so we yeah we do. >> trade around and we, we look at that. company and say. >> you know. >> if you. >> look at the. >> sma, which is a great way to play what i think are the best semiconductor. >> companies in. >> the industry, you've got nvidia and tsmc as the two largest components of that etf. >> you see nvidia is. >> gone, you know. dropped from 40 to 30 times earnings. this is 25%. >> below its. >> five year average. you look at tsmc. >> they grew. >> earnings 36% last year. and you're. >> you're buying it for 23. times next. >> year's earnings which is an expected growth of 30%. i think they'll do better than that. they're the number one maker of advanced logic semiconductors in the world, and you can buy it

for 23 times earnings. sign me up for that. >> what have you been doing with your apple position? i mean do you still have it? number one have you pared it down at all? if not, why. >> we own apple. >> i mean i. >> think it's. >> an expensive multiple. >> for what it is for the growth that it. has today. but longer term they. >> are a key distributor of. >> this technology. i to its massive user base. and we've. >> seen how. >> that worked out for them with search and how much of a tax they were able to extract from the leader google in that category. and i expect a similar a similar kind of arrangement to happen in ai in the future. >> and lastly, i'm just curious from your vantage point out there, 3000 miles or whatever it is from dc, the silicon valley's move into a more prominent position, i think, is fair to say, within the circles of the white house and also the musk

versus altman battle and how how you personally are viewing how all that is going on, whether you're an investor in either x, ai or openai. >> we're not an investor in either one of those. i'd say we are more focused. as as. >> we've been. >> talking. about on the semiconductor business. it troubles me a little bit when. >> i hear quotes about. taiwan has. >> stolen the us. chip business. >> it would be great. >> if we had a former ceo of a. semiconductor manufacturing company in the white house or in the commerce department. we need. >> someone in dc. >> that knows the difference between a blackwell chip and a potato chip. and, you know, tsmc has been an incredible company and they could be an incredible partner for instance, our, you know, intel. >> if intel chose to outsource. >> their manufacturing and. you know, essentially give up on trying to compete there, it could they could go back to making sure they don't miss the

next. >> two. >> big turns, like they did in the last 20 years in semiconductors, the move to mobile and now the move to gpus instead of cpus. so i'd really like to see, you know, washington dc focus a little bit more on the nitty gritty of technology and the enablers of ai. as far as, you know, what happens with, with sam and, and. >> and. >> and elon, you know, they this doesn't. it's not that different from. >> what happened with. >> bill gates and steve jobs back in the day. there's always going to be a big rivalry between the leaders and kind of expect to see that. >> yeah. how about lastly, i actually thought of another one as you were talking, just because we were talking about the convergence of the valley in dc, what the vice president had to say in france about ai regulation and warning against excessive regulation. almost. let's wait and see what actually

happens. approach. do you agree or disagree with that? >> take 100% agree. you know, i think laissez faire is the way to go. trying to control a new technology when it's developing is, you know, fraught with risk. and i think it opens the door for other countries that have less regulation to close the gap with us or, or even take the lead. we don't want to see that happen. so i think the more we can get government out of the way and allow the technology to develop and allow our leaders and innovators in silicon valley to apply that technology to new problems, the better we're going to do as a country and the better, you know, we're going to do as a as an economy. >> all right. we'll leave it there. we covered a lot, and i appreciate you and your time, glenn. thank you very much. we'll see you soon. >> sure thing. >> all right. glenn karcher two kristina partsinevelos. now for a look at the biggest names moving into this close. hi there. >> hi. well, let's. >> start. >> with cbs on pace.

>> for its best day. >> in over 25 years. the year. >> that fight. >> club movie came out, as well as american pie. >> cbs sees. >> meaningful recovery in. >> its aetna. >> business, which. >> provides health insurance plans. the new cbs ceo david joyner, also defending pharmacy benefit. managers at the start of the earnings call. and this came as president trump. >> recently called for. >> further scrutiny into those pbms. like the firms caremark. >> unit. >> you can see shares up almost 16% right now and promising growth in biogen's. breakthrough alzheimer's drug treatment. not enough to lift the stock, though the pharma giant warning of revenue declines as sales of its multiple sclerosis products continue to struggle in a competitive market. biogen down almost 5%. >> scott. >> all right, cristina, thank you. back to you in a little bit. kristina. partsinevelos. we're just getting started here on closing bell. coming up next, former dallas fed president richard fisher. he is back. we get his first take on today's hotter than expected cpi and what it really means for fed policy. from here we are live at the new york stock exchange. you're watching closing bell on you're watching closing bell on cnbc. -what've you got there, larry? -time machine.

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now only a dollar per tablet at wrexham.com slash 30. >> all right, we're back. today's hotter than expected cpi, potentially complicating the fed's road ahead. for more on what it all means, let's welcome in richard fisher. he's the former dallas fed president and a cnbc contributor. welcome back. it's nice to see you as always. >> thank you scott. >> when you saw the print today, what was your first reaction in terms of how you think it will be absorbed within the fed? >> well not surprised. we expected. >> a little bit of. >> pressure to. >> begin to show its face. >> and i think if. >> i watched as i did. >> powell. >> his senate testimony, his house. >> testimony today. they should. >> be sitting still. >> for some time. >> and you notice the. >> markets have now started to discount a little bit further out as to when they might make a single cut. this year. >> we'll see. >> but i think they're in a good position. scott, you and i have talked about this so many times.

it is interesting how rates backed up, including the ten year and the 30 year. the ten year over 460 now. but i do believe that's also shaped this number sort of shakes the confidence that inflation is going to be brought down quickly by this administration. and we watched the ten year bond auction today. it was a little bit off. not too much. but it wasn't the healthiest one i've seen. so in terms of rates that affect businesses and how they finance themselves and capital structure, the ten year, the 30 year, other longer issues beyond the belly of the curve. the fed has no influence there. and i think powell has been very clear about that. and i agree with him. >> so i'm wondering i'm wondering whether you agree with what larry summers had to say in a social media post in which he said, and i quoted this before, and i'll do it again for you. we are now in the riskiest period for inflation policy since the early biden administration. even without tariffs, immigration restrictions, deficit bloat and

attacks on the fed, there would be serious grounds for inflation worry. i mean, is that hyperbole or is there truth to that? how do you see it? >> hilarious. whipsmart. and by the way, a very close personal friend. so there may be a little hyperbole there, but i think he's serving. notice this is a risk that we face, and we have to be very careful here. the tariff announcements, for whatever reason, are being put forward. you and i have talked about this too, scott. if you're a business operator, woman or man running a business, particularly small businesses, you're gonna have to protect your margins and you're going to have to swallow that tax and pass it on to your consumers or whatever. you produce a service or a good in a way that allows that to protect your margins. so the steel issue is very tough. by the way, it's also very it's very tough on canada in particular. we have had this before. we did it when i served in the clinton administration. we did it on pipe and wire. and

i can tell you that the result of that cost the taxpayer more, or the economy more than what we the jobs that we saved. so we know from this example we'll have to see what else. there's a lot of uncertainty, scott, right now in the market. and uncertainty is the enemy of decision making. so you back off. and i think that's what's happening with rates right now. >> so you agree with with ken griffin then who made these comments yesterday that are similar to yours, where he said the uncertainty and chaos created by the tariff dynamics between us and our allies is an impediment to growth. he said, among other things, about the difficulty in multinationals being able to plan, whether it's, you know, five, ten, 15, 20 years out. and he sort of chastised and criticized the president's, quote, bombastic rhetoric. you agree with ken griffin? >> well. >> first, he's richer than i am, and he has very blue eyes, by the way. so he could be a teller of truth. i do agree with him

with much of what he said. now, let's be fair. we're going to have to see what comes out of the budget negotiations on capitol hill and whether or not they can credibly reduce the deficit, start bending the curve, or if it's going to expand what they've talked about so far adds another 2 to 3 trillion to the deficit. the issue now is the interest that's paid on those borrowings by the us treasury. and we pay $1 trillion a year in interest. we only take in 4.96 trillion. and in terms of revenue, 19.3% or so of everything, all the sails, fees, taxes, tariffs, whatever it may be that the government levies goes to paying interest. that's the achilles heel. and i think larry has raised a very good issue here. and i agree with ken as well. this is the risk to our economy. we'll hopefully have it mitigated by this new administration. we'll have to see.

>> the fed chair is really tried his best to stay out of the political fray. but i'm wondering whether you think, though, that it's inevitable that president trump and fed chair powell are on a collision course. you have the president again talking about interest rates. quote, interest rates should be lowered. he posted something which would go hand in hand with upcoming tariffs. let's rock and roll america. your thought here about the potential collision course between these two men. >> first of all, i love rock n roll. as you know, i grew up during that period of the 50s and 60s. so the birth of rock n roll. look, he just two weeks ago, or less than a week ago, the president said he agreed with the fed's decision to hold and very importantly, his secretary of the treasury, mister bennett, came out with the same thing. and i think he's talking about longer term rates here, because that's, again, what affects capital structure, what affects mortgages. the 1030. >> powell himself said he can't they can't do anything about

long term rates i agree. >> he's i've been saying this to you scott, for the longest time. they cannot influence those rates. those are based on expectations of long term future. right now they're rising. there is concern about deficit growth still even though they plan to have some offsets. and we'll have to see what happens to the cost to carry for the us government, which i believe is out of control. and if you talk to some really, really smart people about this, not me, and you talk to john paul tudor jones, one of the smartest people i've ever met. and he talks about the fiscal train wreck that's underway. so they're going to have to bend the curve. i do hope they do it. i hope they're successful. and i'm praying that they will be. >> i have one last thing for you. i'm sure you saw the news today of the new york stock exchange, texas exchange, the nyse, texas. they're calling it. they front ran you guys. you're planning the texas stock

exchange. you're a special advisor. i guess they thought it was a good enough idea. they wanted to do it before you did. >> no no no. look, first of all, it recognizes the incredible power of the economy of texas. we are the empire state. now, with no offense to my friends in new york, that period has passed new york. so that's the one thing i'm going to read you what td securities sent out just a minute or two ago. it says, quote, the fact the new york stock exchange is making the change of its nyse chicago medallion proves that it, too, believes the new texas exchange is a legitimate threat to the us listings duopoly. add to this point, i'm quoting the support of large investors like blackrock, citadel and board members for the tcsc that include former governor, and it's clear this new upstart means business. we think there is room. td said for third listings exchange for the us, and expect texas to pose a significant threat to the incumbent since demutualisation in the 2000. overall, the us is

winning the global battle for listings, further suggesting a third venue for the us listings may be viable. scott, these exchanges i have great respect for the new york stock exchange, but the fees that they impose are onerous. we've heard this from different companies over and over and over again, and the restrictions that they impose and the they were imposing in the nasdaq, who also is moving their office to dallas. so i think it's competition is good. i think we'll be very good competitors. the nasdaq has too many small companies that they keep trying to keep for fee purposes, if nothing else, and we expect to be competitive. now time will tell. we don't expect this overnight. i look 20 or 30 years out, and i do expect this exchange to be one of the most prominent in the us, and i expect to have a great deal of listings. i'll chair that listing advisory committee and we'll report back to you, scott, once we're underway.

>> all right. you're making a lot of friends up this way, richard. we may have to have a conversation with the dean of friedman and lynn martin, to say the least. >> remember who's backing us. blackrock, citadel, schwab, td. all these people are backing us. doesn't say we can't coexist. i'm just saying we're offering an alternative. and i'm grateful to the new york stock exchange for recognizing how powerful the texas economy is and how important we are to the future. >> all right. to be continued. to be continued for sure, richard. thank you. we'll see you soon. richard fisher. thank you for joining us once again. all right. up next apple on a win streak this week. but it is well off its december highs. now morgan stanley's eric woodring he says he is still betting big he says he is still betting big on that stock. he tells you why carl: believe me, when it comes to investing, you'll love carl's way. take a left here please. driver: but there's a... carl's way is the best way. client: is it? at schwab, how i choose to invest is up to me. driver: exactly! i can invest and trade on my own...

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>> earnings season special coverage all this month on cnbc. >> join the club. and we'll teach you how to manage your portfolio. >> for my mom. >> and jim cramer i've. learned how to. >> manage money, grow your portfolio. and save for retirement. >> get invested. join the club today. go to cnbc.com. slash join jim. >> apple heading for a third straight positive session. still down though nearly 10% from its december peak now morgan stanley's eric woodring arguing this week the stock is still a buy. he joins us now to tell you exactly why. welcome back. it's good to see you as always. >> thanks for. >> having me. >> scott. what compelled you yesterday to put the note out? you did essentially a doubling down on this, this name. >> sure. so i think the news that we got yesterday from the. information that apple is partnering or in the process of partnering with alibaba to bring ai features to china is very important. it should not be overlooked. >> right? >> last time we were speaking.

>> scott, we. >> talked about apple and the. >> china problem. >> that they have. they don't have. their advanced ai. >> technology in china. >> to put. some context. >> to that. >> when. we did our. smartphone survey in november, chinese consumers ranked access to ai technology as the. >> fourth most important feature that. >> they were. >> looking. >> for in a new in a. >> new phone. that was the highest it's ever. >> been. >> and more than. >> 50% of. >> chinese consumers that. >> did not purchase. >> a new model iphone. >> said that they did not purchase it. because they could not get. access to apple intelligence. third is when we. asked those consumers whether they would want to pay for apple intelligence if it was available to them. >> 90% of them said that they would. >> spend some. >> amount of money on average, about $10 per month. >> they've never even had access to. >> this technology. >> my point being, china. is a market that is very technology forward. they are looking and searching for ai features from apple. apple has not delivered them to date in a partnership.

>> with alibaba, the largest e-commerce. >> provider in. >> china. >> could be. >> monumental in at least shifting. >> that china narrative. >> that's what i think was. extremely important about the. >> announcement yesterday. >> sure. but but of course, i know you would agree with this. a report of a partnership and even a partnership itself is far from a turnaround in a place that's really been a drag. and you need it to pick up significantly because you're so used to getting what, i don't know, 17% of revenue, 15, 20 from from china, sure. >> but but china has been a headwind for the better part. >> of three years. we now. >> have really. >> two catalysts that have happened. >> in the last, let's call it month. >> and a half that. >> have started. >> or at least should. >> work in apple's favor. one is the fact that the chinese government has enacted the national subsidies for. >> devices up to about $820. every iphone outside of the. >> 16 pro. >> and pro max. are eligible. >> for that. >> and what we have heard. >> through our channel checks is that the trajectory.

>> of iphone sales. >> in china has improved. so, so. >> clearly that is. at least helping sell through year to date. we think those subsidies. >> could last. >> for the. >> entirety of the year as. >> of. >> right now. >> and then. >> you're right, scott. >> is a potential. >> partnership is really just the beginning. >> but you have. >> to start somewhere, right? >> we heard tim cook. >> on our last earnings call talk about that. there was no timeline. >> for getting. approval of. ai features. >> in china. >> now we. >> have reports of a partnership, reports that both companies have. submitted the features to the chinese regulatory. >> regulatory authorities. >> and that that. >> review process is underway. >> that's more positive. >> than it. >> has ever been. so again, i don't. want to get too far out over our skis. in our note, we wrote, you know, is. >> china turning. >> the corner? and my. >> answer is it's. >> too. early to say. >> but what we do. >> know is that apple loyalty rates in china are back. to back to historical highs.

>> that chinese. >> consumers want this technology. >> and that we are. >> at least somewhere on the. >> path to potentially. >> getting this into china. that's better than it was yesterday. >> sure, i got to go in a second, but what chris harvey of wells fargo securities said at the top of our program about apple and his problem, quote, you're paying a premium price for non premium fundamentals. that's hard to contest. >> no. >> and i. think that's been an argument for the better part of. >> 15 years. >> outside of a few years where you've had quote supercycles. right. we can probably. >> look back. >> over the. >> last. >> ten years and said apple has grown double. digits in less than five of those, yet we still pay a premium for apple. right? when i started doing this job, people argued that 15 times multiple was too expensive for apple. and look where we are here. so to me it is still about the fundamentals. if you get a growth, acceleration, if you ge. >> positive earnings revisions, this multiple will only expand from here quite frankly. >> gotcha. all right. we'll talk to you soon eric. thanks as always. that's eric woodring. up next, the biggest movers into the close. we're back right

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that power grid pressures continue to heighten demand. and that's why shares, you can see, are climbing. >> over 8%. >> a struggling housing market dragging on zillow's outlook as analysts point to rate volatility, as well as low housing turnover for softer than expected guidance. growth in the firm's rental segment and new redfin partnership not enough to boost this stock. shares falling over 10% right now scott. >> all right. thank you very much christina. still to come what to watch for when robinhood reports an ot. we are back right after this. >> most power players on wall 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

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equities options and then crypto, which has been contributing a bit more lately. and we will see which adds the most to the bottom line. crypto has become a larger part of the business. it's likely to be boosted in the quarter by bitcoin's all time highs. and then look for some guidance around net interest income and the rate environment, plus more clarity on robin hood's plans in sports gambling after its super bowl contracts were pulled. last minute. account growth and assets under management are also going to be key. robin hood has been offering incentives for investors to transfer out of other brokerage firm stocks, up about 350% in the past year, 40% just this year. so expectations pretty high going into the prince scott. >> all right. thank you kate rooney. how about reddit julia. >> well scott reddit. >> shares are up. >> 170% since. >> its last earnings, and they're up. 530% since its ipo last march. >> key numbers to watch to see if that momentum can continue. >> first revenue growth. >> we'll see if it can keep up with the 68% revenue growth.

>> it. reported last. >> quarter and. >> user growth. it's expected to report 103. >> million. >> daily active. >> users. >> up from 97 million. in the third quarter. >> reddit's ad business is. >> expected to benefit from its new ad options, and perhaps from some uncertainty around tiktok. it's also expected to report growth from. >> a recently launched ai. powered search tool called reddit. >> answers. and it's also going to be talking to us. >> about its new business of licensing data to ai companies. >> now, analysts. >> are largely bullish. >> 61% have a. >> buy. >> 35% have a hold. only 4% have a sell. despite the stock's massive run. scott. >> all right. all right julia thank you. julia. boorstin. mike. santoli. now 90s left. what's your big thought for the day. >> market finds a way to find offsets to the obvious negatives. and it's been doing this. the kind of accumulated exposures and the options market around this index level. we've been around 6000 for weeks. means that we're kind of bounded on on the indexes. do find it interesting that you push out the likelihood of a next fed

rate cut, but you already didn't have one priced until september. so it enabled the stock market to sort of look through the cpi a little bit. you hear a lot of people say, you know, it was only 0.45 on headline without rounding, not 0.5. all that stuff kind of built together i think. also you can't escape. we're going to hear from robinhood after the close. just how much of this wild high velocity action is happening in the nasdaq. 40% of nasdaq stocks are down today, but actually 60% of stocks are down. but only 40% of the volume is down because there's a bunch of penny stocks trading 100 million shares on the upside. and palantir is going nuts again. so i do think that's an interesting thing. we're leaning on defensive stocks and really risky concept stocks to stay afloat. >> yeah. and then meaning defensive things like apple which is still looked at as such. >> there's no doubt apple has that defensive property. jp morgan i mean walmart is absolutely part of it as well. not to mention tesla gets its

first decent little daily bounce in memory to help the index. >> good stuff. i'll see you tomorrow. mike santoli thank you very much. i'll send it into ot. well we do have earnings about. >> to come. >> up any moment now with. >> jon fortt. >> that bell. >> marks the end of regulation wex inc. ringing the closing bell at the new york stock exchange. the optimized. strategy index etf doing the honors at the nasdaq and a mostly. >> lower finish. >> for the major. >> averages. >> but closing. >> well off. >> the worst. >> levels after. >> the day after that. >> hot inflation print this morning initially. sent stocks tumbling, pushed yields higher. >> the yields. >> did stay higher. that's the scorecard. >> on. >> wall street. but winners stay late. >> welcome to closing bell overtime. >> i'm jon fortt morgan brennan is. >> off today. >> more key earnings rolling in. >> this. >> hour including. >> reddit. >> robinhood, applovin, cisco, mgm and more. we're going to bring. you all